SMALL-CAP WINNERS & LOSERS: abrdn China rises on Fidelity China tie-up

(Alliance News) - The following stocks are the leading risers and fallers among London Main ...

Alliance News 28 November, 2023 | 10:04AM
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(Alliance News) - The following stocks are the leading risers and fallers among London Main Market small-caps on Tuesday.

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SMALL-CAP - WINNERS

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abrdn China Investment Co Ltd, up 12% at 451 pence, 12-month range 390p-638p. The Main Market constituent agrees to merge will FTSE 250-listed Fidelity China Special Situations PLC, a fellow China-focused investment trust. The merger will create a closed-end investment vehicle in London with GBP1.2 billion in assets. The merger will see the smaller trust, abrdn China, placed into voluntary liquidation, with assets and cash transferred to Fidelity China in exchange for new Fidelity China shares. Shareholders of abrdn China also will be given a cash exit opportunity up to 33% of its total shares. The cash option will be at a 2% discount to formula asset value per share. The merger is expected to complete by the end of the first quarter of next year. Fidelity China shares fall 0.5%.

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Augmentum Fintech PLC, up 2.0% at 87.24p, 12-month range 77.28p-115p. The investor, focused on European private fintech companies, says its net asset value per share after performance fee was 160.20p at September 30, up 0.8% from 158.9p at March 31. "The operational performance of the vast majority of our portfolio companies has continued to be strong, with average revenue growth of 74% across the top 10 in the last 12 months. There have been some standout results, in some cases ahead of expectations, and the majority have over 2 years of cash runway," the firm explains.

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SMALL-CAP - LOSERS

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Greencore Group PLC, down 5.4% at 96.05p, 12-month range 60.15p-103.5p. The Dublin-based convenience food manufacturer reports strong annual results for the year ended September 29. Revenue rises 10% annually to GBP1.91 billion from GBP1.74 billion, an outcome which is on the lower end of company-compiled consensus, however. The top end of consensus was GBP2.02 billion. Pretax profit rises 14% to GBP45.2 million from GBP39.8 million, while adjusted operating profit of GBP76.3 million was above the consensus range of GBP76.0 to GBP74.8 million. "In a challenging market environment, we have stabilised the business, and made good strategic progress. The group delivered above-market volume growth, despite exiting a number of low margin contracts," says CEO Dalton Philips. It expects annual growth in the current year to be within the range of current market expectations, which it cites as sales between GBP2.04 to GBP1.88 billion, and adjusted operating profit between GBP84.5 to GBP80.0 million.

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By Elizabeth Winter, Alliance News deputy news editor

Comments and questions to newsroom@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Augmentum Fintech Ord 102.00 GBX 1.49
Fidelity China Special Ord 197.60 GBX 0.92
abrdn China Investment Ord 409.00 GBX 0.00
Greencore Group PLC 102.40 GBX 0.20 -

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