September 27, 2022

The London junior market has more than three dozen companies that are big enough to join the FTSE 250 index if they made the move to the main market.

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This week, several of the top AIM leaders from this group, as well as some of the fallen nobility with still-famous names, have gone their separate ways.

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ITM PowerThe hydrogen electrolysis specialist, which was one of AIM’s largest companies earlier this year, saw its stock drop sharply after it reported lower revenue and larger losses than the market expected.

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ITM Power, a hydrogen electrolysis specialist, retired after 13 years in this position.

Revenue guidance was about 41% below the city’s consensus, and estimated EBITDA loss was 20% worse, Berenberg analysts said, warning that “a substantial downturn remains” due to what they see as potentially bullish figures from the point of view of the performance of the contract.

Boss Graham Cooley has agreed to “retire” after 13 years in the role, the company said, although he will retain his advisory role.

But the biggest drop in a week was Jouleswhich falls into the latter category, whose market capitalization has shrunk to less than £10m, is falling after Next pulled out of negotiations.

The blue-chip retail giant has been discussing the possibility of acquiring up to a 25% stake in a troubled clothing and home goods brand.

Joules shares have fallen more than 90% over the past year, although the company said it is still talking about a possible sale of its shares through the Next online platform and will also continue to work on its own recovery plan.

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Another fallen market retailer, mother carehad a better week, with shares up more than 61 percent to offset some of its losses this year amid more encouraging results.

The company reported an improvement in international sales – excluding the Russian business, which was forced to close earlier this year – as well as successful negotiations to ease debt and reduce the pension system deficit.

fever tree drinksanother member of the AIM elite, also impressed by its results, which saw shares up more than 14% on the day as he maintained his full-year guidance.

However, the mixer maker’s shares tumbled 1.4% for the week as investors focused on external pressures facing the beverage industry, including the company’s flagged increase in shipping costs, as well as other inflationary headwinds.

Other beverage sectors were hit harder. Naked wines collapsed after it announced plans for a financial and operational review.

This was followed by the departure of non-executive director Pratam Ravi, representative of 10% shareholder Punch Card Capital, less than three weeks later.

However, the next day, the online wine merchant said it had appointed Rowan Gormley, its former chief executive officer and owner of a 2.9% stake, as an unpaid board advisor for two to three months while he worked on his strategy.

The revised plans will be announced next month along with more detailed trading news.

Other scavengers included track structureswhich fell 52% after saying it would need more cash as its UK-based EV customer expects production to decline this year.

The printed circuit specialist said it is currently considering a “range of options” to raise funding and explore long-term strategic investment partnerships to capitalize on its “very important” portfolio.

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Overall, the AIM fell more than 2% to 862.54, well above the FTSE 100’s 0.9% drop.

But there was a lot of good news for voters large and small.

Big Technologies, which is engaged in remote monitoring of people, reported an increase in profits

Big Technologies, which is engaged in remote monitoring of people, reported an increase in profits

big techwhich, like Fevertree, is big enough to be included in the FTSE 250, rose 27% in the week following the release of half-year results.

You may not have heard too much about this newcomer, but he has become one of the unsung stars among the often disappointing “Class of 2021” IPOs.

The maker of remote monitoring technology for children and criminals, which launched in July last year and did not hire an external public relations consultant, reported a 14% increase in pre-tax profit to £8.8m as sales rose 38%. higher, facilitated by the establishment of an offender surveillance contract with the New Zealand Department of Corrections.

Founder and CEO Sarah Murray, best known as the founder of Confused.com, said there are strong market drivers and the board is “confident that we can deliver continued growth in the second half of 2022 and beyond.”

The leader in terms of share price growth was Tertiary minerals after it delighted the market with the news that it had signed a partnership agreement with Canadian-listed First Quantum Minerals on two of its copper exploration projects in Zambia.

The agreement “will expedite exploration of the tertiary reservoir in Zambia in these two key license areas,” said Executive Chairman Patrick Cheetham.

Somewhere else in the mining area Oriole Resources also rose after the company reported “extremely exciting” results from its latest drilling at its 90 percent Bibemi gold project in Cameroon.

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In technical development, Transence Technologies rose 26% following an aerospace deal with Meggitt, a former defense contractor called Footsie, which was taken over this month by even larger US giant Parker-Hannifin.

As part of the deal, the pair will work on potential market opportunities for Surface Acoustic Wave technology in the aerospace sector, with AIM’s intention to license Meggitt by the end of next year.