(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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Pendragon PLC, up 10% at 32.91 pence, 12-month range 14.85-33.10p. The automotive retailer reports double-digit percentage rises in interim profit and revenue, despite a challenging market backdrop. It also receives a number of unsolicited takeover proposals. Pretax profit totals GBP36.4 million in the first half of 2023, up 11% from GBP32.9 million the previous year. Revenue in the half climbs 13% to GBP2.09 billion from GBP1.85 billion. Earlier this month, the company agreed to sell its entire UK motor business and leasing business to its North American rival, Lithia Motors. Following completion of the disposal, Pendragon will operate as a stand-alone Pinewood business, making it a pure-play software as a service business. On Wednesday, Pendragon said it was carefully considering takeover proposals from Hedin Mobility Group and PAG International and from AutoNation and will provide an update in due course. Pendragon received a proposal from AutoNation to acquire the company for 32 pence per share on Tuesday. Last week, it received a revised takeover offer by Hedin Mobility Group and PAG International worth 32 pence per share, up 14% from the 28p per share offered previously.
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NCC Group PLC, up 1.6% at 102.00 pence, 12-month range 75.80-227.00p. The cyber security provider swings to a pretax loss in the year ended May 31 due to an increase in borrowing following the acquisition of Intellectual Property Management in June 2021, as well as higher interest rates. Pretax loss totals GBP4.3 million, swinging from GBP31.0 million profit the year prior. Records a loss of GBP14.7 million for 'individually significant items' of which GBP9.8 million related to the impairment of North American goodwill within its Assurance business. Revenue climbs to GBP335.1 million from GBP314.8 million. Says current trading is in line with expectations and is targeting a "modest" improvement in adjusted operating profit in both the Assurance and Software Resilience businesses in financial 2024.
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SMALL-CAP - LOSERS
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Phoenix Spree Deutschland Ltd, down 1.5% at 167.50 pence, 12-month range 150.50-306.00p. The Berlin-focused residential real estate investor swings to a pretax loss of EUR58.0 million in the first half of 2023 from a profit of EUR17.0 million the year prior. Loss comes as the company records a EUR57.3 million loss on its investment property fair value compared to a EUR11.4 million gain the year prior. Portfolio valuation as at June 30 drops to EUR714.3 million from EUR820.1 million. Revenue climbs to EUR13.8 million from EUR13.0 million. Does not declare an interim dividend, having declared a dividend of 2.35 euro cents the year prior. Looking forward, says that a "significant" part of its rental portfolio has been identified for disposal and says it is actively being marketed. Notes that disposals at discounts to current carrying value are "likely" but adds it would likely be at a premium to the value implied by the share price as at 30 June 2023.
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LSL Property Services PLC, down 1.1% at 257.12 pence, 12-month range 211.00-324.00p. The provider of services to mortgage intermediaries and franchised estate agencies reports a drop in interim profit and revenue. Pretax profit from continuing operations drops 20% to GBP7.1 million in the first half of 2023 from GBP8.9 million the previous year. Revenue falls 34% to GBP72.5 million from GBP110.2 million the year prior. Explains that market conditions in the first half were "challenging" with expected improvements in consumer confidence hindered by high inflation and interest rate rises. Notes the mortgage lending market was "suppressed" during the first half, with LSL's total lending 4% lower than in the first half of 2022.
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By Heather Rydings, Alliance News senior economics reporter
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