SMALL-CAP WINNERS & LOSERS: Halfords falls as outlook is bump on road

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

Alliance News 29 November, 2023 | 10:26AM
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(Alliance News) - The following stocks are the leading risers and fallers among London Main Market small-caps on Wednesday.

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SMALL-CAP - WINNERS

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RM PLC, up 5.3% at 50.42 pence, 12-month range 41.00p-94.00p. The supplier of technology and resources to the education sector has struck a deal with its lender to extend an unconditional covenant waiver to cover a test that was due to take place on Thursday. The covenant is earnings before interest, tax, depreciation and amortisation-linked. "The renegotiation of an amendment and extension of its lending facility, which matures in July 2025 is ongoing and the company still expects the renegotiation to have concluded by the end of Q1 2024," RM adds.

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SMALL-CAP - LOSERS

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Xaar PLC, down 27% at 128.00p, 12-month range 124.00p-215.00p. The inkjet printing technology firm believes 2023 adjusted pretax profit will be between GBP2.5 and GBP3 million, which is ahead of board expectations. However, due to "challenging" trading conditions in the second half, annual revenue for the year is expected between GBP70 and GBP72 million, behind 2022's GBP72.8 million. It expects weaker demand to persist in the final quarter of this year and into 2024, so both revenue and profit will fall short of expectations next year. "Together with delays in some customer product launches, [this] will result in lower revenue and adjusted profit in 2024 than previously anticipated," the firm cautions.

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Halfords Group PLC, down 21% at 180.00p, 12-month range 164.10p-244.80p. The cycling and motor products retailer set out a downbeat outlook alongside half-year results. Halfords says trading patterns were "volatile" in its first half to September 29. It has also seen a "softening in our discretionary big-ticket categories" in the early part of the second half. It is "challenging" to predict whether these trends will persist, the firm added. It went on to say that that annual profit is likely to be second-half weighted. The first-half results showed revenue rose 14% on-year to GBP873.5 million from GBP767.1 million, while pretax profit rose 3.3% to GBP19.3 million from GBP18.7 million. It left its interim dividend unchanged at 3 pence.

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By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

Copyright 2023 Alliance News Ltd. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Halfords Group PLC 156.00 GBX 2.63 -
Xaar PLC 103.50 GBX -1.43 -
RM PLC 57.00 GBX 0.00 -

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