(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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SIG PLC, down 2.6% at 33p, 12-month range 25.35p-45.38p. The insulation, roofing, commercial interiors and specialist construction product supplier says it expects underlying operating profit in 2023 to be in the upper half of its guidance range of GBP50 to GBP55 million. This would be down sharply from GBP80.2 million in 2022. Expects revenue of GBP2.76b billion, edging up from GBP2.74 billion a year prior. "Despite challenging market conditions across the European building and construction sector, the group has delivered a robust trading performance, through a strong focus on our customers and the great efforts of all our people," says CEO Gavin Slark.
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SMALL-CAP - LOSERS
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MJ Gleeson PLC, down 9.9% at 484.80p, 12-month range 344.5p-538p. The housebuilder and land investor says its Homes division completed 769 home sales in the half-year ended December 31, which is a 14% decrease year-on-year. It blames weaker conditions across the housing market. Gross margins are expected to fall below expectations by around 1.5% to 2.0% in its full financial year. It expects to report net debt of GBP18.7 million at December 31, compared to net cash of GBP5.2 million at the end of June, which reflects the "significant investment in bringing forward a higher proportion of home starts before June 2023". The cash impact of this is expected to unwind over the next two years, it added. More positively, it points to a stronger forward order book of 586 plots at the end of 2023, compared to 319 plots the prior year. The firm comments: "Against the backdrop of stabilising interest rates the board anticipates a recovery in demand for low-cost housing in the seasonally busier selling period over the coming weeks and months."
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Robert Walters PLC, down 7.8% at 407.5p, 12-month range 344p-580p. The recruit firm falls following a profit warning from FTSE 250-listed peer Hays PLC. Hays says second-quarter group fees fell 10% annually on a like-for-like basis, with a slowdown seen in December. "It is too early to say if December's weakness reflects a more sustained market slowdown, or shorter-term deferrals of client and candidate decision-making. However, we expect near-term market conditions to remain challenging," Hays warns. Hays now expects underlying operating profit for its half-year ended December to be around GBP60 million, which is below the GBP73 million pencilled in by analysts, according to company-compiled market consensus. Shares in Hays tumbled 12%.
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By Elizabeth Winter, Alliance News deputy news editor
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MJGleeson (GLE)
Hays (HAS)
Robert Walters (RWA)
SIG (SHI)