SMALL-CAP WINNERS & LOSERS: Petrofac jumps despite free cash flow miss

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

Alliance News 4 December, 2023 | 10:11AM
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(Alliance News) - The following stocks are the leading risers and fallers among London Main Market small-caps on Monday.

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SMALL-CAP - WINNERS

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Petrofac Ltd, up 37% at 23.32 pence, 12-month range 14.58p-91.00p. The stock recovers from a slow start to trade markedly higher in mid-morning dealings. Petrofac, a provider of services to the energy industry, slumped 8.3%. The company said it is mulling a "range of strategic and financial options" to bolster its coffers. "Management has been making progress in organic actions to unwind working capital, collect receipts on ongoing and new contracts and to unlock long-outstanding commercial settlements. In addition, Management is considering the sale of non-core assets, and is actively engaged in discussions with financial investors to take a non-controlling position in certain other components of the business portfolio," it adds. Petrofac warns it will miss free cash flow guidance, meanwhile. "While the group has made progress in reaching contractual settlements and unwinding working capital, given delays in securing advance payment guarantees, it no longer expects to receive these advances before the year-end," it adds. The stock suffered a 10-day losing streak prior to Monday's update, losing some 60% of its value.

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Capita PLC, up 3.2% at 20.64 pence, 12-month range 15.26p-44.92p. The outsourcer has sold its 75% stake in a joint-venture with the UK Department for Environment, Food & Rural Affairs to FTSE 250-listed Bridgepoint Group. The stake in Fera Science has been sold for an enterprise value of GBP60 million. The UK government department owns 25% of Fera, which was established in 2015 and is focused on the agriculture, farming and food production market. Capita says it will receive cash proceeds of GBP62 million on completion.

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SMALL-CAP - LOSERS

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EnQuest PLC, down 2.7% at 13.00p, 12-month range 12.78p-24.60p. The oil and gas producer with assets in the UK and Malaysia tracks Brent prices lower. A barrel of the North Sea benchmark bought USD78.26 a barrel early Monday, down from USD80.73 late Friday.

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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
Capita PLC 20.08 GBX -1.08 -
Petrofac Ltd 23.60 GBX -7.16 -
EnQuest PLC 12.80 GBX -5.54 -

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