AIM WINNERS & LOSERS: Deltic warns on Pensacola; IG Design profit beat

Tue, 30th Apr 2024 11:15

(Alliance News) - The following stocks are the leading risers and fallers on AIM in London on Tuesday.

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AIM - WINNERS

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IG Design Group PLC, up 33% at 162.00 pence, 12-month range 105.00p-173.20p. The designer and of celebrations products, including greetings cards and gift wrap, expects annual profit to top market expectations. For the year ended March 31, adjusted pretax profit of USD25.9 million is expected, beating the prior year's USD9.2 million and "ahead of market expectations". It expects revenue to fall 10% on-year to USD800 million, in line with expectations.

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James Cropper PLC, up 30% at 344.00 pence, 12-month range 212.00p-960.00p. The paper, packaging and advanced materials manufacturer expects revenue for the year ended March 30 to be in line with expectations, but profit "slightly ahead". "The outlook for FY2025 is encouraging, with a return to growth expected across both the Advanced Materials and Paper & Packaging businesses for the full year," it adds.

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AIM - LOSERS

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essensys PLC, down 29% at 13.00p, 12-month range 13.00p-56.00p. The provider of software and cloud services for the flexible workspace industry posts a half-year revenue decline. Revenue in the six months to January 31 declines 9.1% year-on-year to GBP11.7 million from GBP12.9 million. Its pretax loss, however, slims to GBP2.8 million from GBP7.7 million. Administrative expenses fall 34% to GBP9.9 million from GBP15.0 million. essensys cautions on its full-year outcome. It says: "Whilst recurring revenue continues to track in line with management expectations full year revenue will be below market expectations due to lower than expected non-recurring revenue as customer capex budget pressures persist."

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Deltic Energy PLC, down 47% at 20.50p, 12-month range 20.00p-44.00p. The firm is yet to secure a farm-out partner for the Pensacola asset, as it grapples with a "hostile political environment". Deltic explains the UK energy profits levy, "resultant fiscal uncertainty created by the current government" and unfavourable "rhetoric" from the opposition Labour Party has hurt North Sea investment. "This has resulted in many operators diverting capital away from the [UK Continental Shelf] or delaying investment decisions, especially with respect to new large-scale opportunities like Pensacola". Deltic adds: "Although there are a number of live discussions with respect to a way forward on Pensacola, there is a risk that a farm-out may not be secured before the end of May 2024." It also warns that tough market conditions mean "accessing traditional equity capital" is not a viable option for the company to fund its share of the Pensacola well costs. It warns of a possible withdrawal from Pensacola if a funding solution is not in place by the end of next month.

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By Eric Cunha, Alliance News news editor

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