(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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CMC Markets PLC, up 12% at 210 pence, 12-month range 86.90p-234.50p. The London-based online trading platform operator for retail investors and financial institutions expects net operating income in the financial year ending Sunday to exceed the top end of the previously guided range of between GBP290 million and GBP310 million. It also expects operating costs to be in line with guidance at around GBP240 million, while noting it continues to identify opportunities for further cost savings across the global business as it focuses on improving profit margins. "Following the strong trading performance seen in the third quarter, the positive momentum continued in the fourth quarter. We continue to see strength in the institutional and [business-to-business] business as the group benefits from the long-term investments in this area. The group also has a strong pipeline of B2B partnerships some of which are in the advanced stages," the company says.
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Vanquis Banking Group PLC, up 7.6% at 55.3p, 12-month range 43.15p-243.20p. The Bradford, England-based lender swings to a pretax loss in 2023 of GBP4.4 million from a profit of GBP110.1 million in 2022. This is despite net interest income rising 2.3% to GBP442.6 million from GBP432.7 million, and total income rising 1.7% to GBP488.8 million from GBP480.7 million. Impairment charges more than doubles to GBP166.1 million from GBP66.1 million, while operating costs rises 7.4% to GBP327.1 million from GBP304.5 million. Chief Executive Officer Ian McLaughlin comments: "Today's results and strategy seminar highlight the considerable challenges we are managing as we reset our business. We also describe our opportunity to grow, to deliver benefit to our customers and increase adjusted return on tangible equity from 3.2% in 2023 to the mid-teens by 2026... We have a better understanding than ever before of how to serve our large and growing customer base. We will build our position as their chosen banking partner, deploying unique assets like Snoop, improving operational effectiveness and managing our capital to support our growth ambitions. We do have a period of hard work and change ahead of us. It is still early days, but we are making progress."
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SMALL-CAP - LOSERS
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Asos PLC, down 1.9% at 370.8p, 12-month range 320.33p-838.00p. Alongside boohoo Group PLC, both online fashion retailers promise to make "accurate and clear" environmental claims for their fashion items, following a probe by the UK Competition & Markets Authority. The duo's pledge, also made by Asda's George offering, will mean consumers "can now expect to see accurate and clear green claims when shopping for fashion items", the UK watchdog explains. "The undertakings secured by the Competition & Markets Authority commit Asos, Boohoo and George at Asda - which together make over GBP4.4 billion annually from UK fashion sales alone - to change the way they display, describe, and promote their green credentials," the CMA adds. Asos, boohoo and Asda have made these undertakings "without any admission of wrongdoing or liability", according to the CMA. boohoo is up 1.5% on AIM in London.
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By Greg Rosenvinge, Alliance News senior reporter
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CMC Markets (CMCX)
Vanquis Banking (VANQ)
ASOS (ASC)
Boohoo (BOO)