SMALL-CAP WINNERS & LOSERS: AG Barr shares get boost from drinks buy

Mon, 05th Dec 2022 10:42

(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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AG Barr PLC, up 4.1% at 525.52 pence, 12-month range 426.5p-595.82p. The soft drink manufacturer acquires Boost Drinks, a branded drinks business, for GBP20 million, funded from cash reserves. AG Barr expects the acquisition to be accretive to earnings per share in the first full year of ownership, but notes it will dilute group operating margin in the short term. AG Barr says the acquisition is in line with its strategy to build its portfolio in "high growth and functional areas". In 2021, Boost reported pretax profit of GBP1.9 million on revenue of GBP42.1 million.

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Baillie Gifford China Growth Trust PLC, up 4.7% at 266.15p, 12-month range 204.53p-404.5p. The China-focused investor rises as China continues to ease its strict zero-Covid measures. Authorities have scrapped testing requirements in multiple cities including Shanghai, Beijing, Tianjin, Shenzhen and Chengdu. The positive developments also lift other Asia-focused investors, as JPMorgan China Growth & Income PLC rises 3.9%, Scottish Oriental Smaller Cos Trust PLC adds 3.3%, and Schroder Asian Total Return Investment Co PLC is up 3.3%.

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SMALL-CAP - LOSERS

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Lindsell Train Investment Trust PLC, down 2.1% at 1,030p, 12-month range 944p-1,422.91p. Between April 1 and September 30, the investor reports a net asset value total return per share of minus 3.0%. NAV per share falls 7.6% to GBP1,029.42 at September 30 from GBP1,113.81 six months before. Notes steeper decline in share price return of minus 6.5% during the period, due to shares trading at a 3.7% discount to NAV during the period. More positively, the firm outperforms the MSCI World Index, which had a total return of minus 7.5%.

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By Elizabeth Winter; elizabethwinter@alliancenews.com