SMALL-CAP WINNERS & LOSERS: Metro Bank says profit in line for 2025

Tue, 12th Nov 2024 10:29

(Alliance News) - The following stocks are the leading risers and fallers among London Main Market small-caps on Tuesday.

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SMALL-CAP - WINNERS

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Pharos Energy PLC, up 3.7% at 22.2 pence, 12-month range 18.7p-26.8p. Reports buyback on Monday of 54,234 shares at average 21.80p each, for a total of GBP11,823, in London. Says that since initiation of its share buyback programme announced on July 20, it has repurchased 29.0 million shares for cancellation at a total cost of GBP6.9 million.

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Metro Bank Holdings PLC, up 1.5% at 85.75p, 12-month range 28.8p-85.75p. London-based retail bank says the Financial Conduct Authority has fined it approximately GBP16.7 million based on "historic deficiencies" in its transaction monitoring systems and controls, in other words for inadequate anti-money laundering controls. Metro Bank says this is based on unmonitored transactions between 2016 and 2020, and that since then it has resolved the relevant system failings and made enhancements. Chief Executive Officer Daniel Frumkin says the conclusion "draws a line under this legacy issue, allowing the bank to move forward". More positively, in a separate trading update Metro says it was profitable on an underlying basis in October and profits are in line with its 2025 guidance. This forecasts mid-to-upper single digit return on tangible equity for the year. Net interest margin improved to 2.48%. Total net loans were GBP9.06 billion at September 30, down 22% from GBP11.54 billion at June 30. However Metro says this reflects "reflecting the successful completion of the GBP2.5 billion mortgage portfolio disposal" as it "continues to strategically reposition its balance sheet towards higher yielding commercial, corporate, SME and specialist mortgages".

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SMALL-CAP- LOSERS

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Liontrust Asset Management PLC, down 2.3% at 419.5p, 12-month range 419.5p-855p. London-based long-term investment manager, reports that a group of abrdn PLC funds have cut their stake in Liontrust to below the 5% reporting threshold as of Friday, from 5.01%. Liontrust also announces that it has reduced its stake in TI Fluid Systems as of Friday to 10.91%, down from 11.15% previously.

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By Emma Curzon, Alliance News reporter

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