Alliance News: AIM Stock Winners and Losers
AIM – WINNERS
Distribution Finance Capital Holdings PLC, up 14% at 37 pence, 12-month range 21.5p-37p. The Manchester-based firm, which provides financing solutions for UK dealers and manufacturers, expects underlying pretax profit totalling at least GBP14 million, “significantly ahead of its expectations”. This would be more than triple the GBP4.6 million delivered in 2023. Also says its loan book will post between GBP650 million and GBP700 million at December 31, as loan origination continues to meet expectations. Adds that it has secured a GBP3 million settlement, originally expected to be recognised in 2025, against property subject to a new counterparty loan. Consequently it expects total pretax profit “significantly ahead of market expectations” and representing a “more than fourfold [on-year] increase” to at least GBP18.7 million. Also says it continues to make good progress towards launching asset finance and hire purchase lending service, with the launch still on track for the first half.
EnSilica PLC, up 11% at 48.5p, 12-month range 30.5p-71.5p. Oxford, England-based chip maker of mixed signal application-specific integrated circuits says it has won a contract worth USD30 million over ten years, starting with immediate effect. It will supply a timing controller ASIC to an unnamed industrial test equipment provider. EnSilica will book non-recurring revenue from the contract in the current and upcoming financial years, “underpinning current consensus market expectations” and will book supply revenue from mid-2026. The company also says that two of three design and supply contracts, that were in the negotiation stage as of early November, have now been secured and “come with significant upfront payments”.
AIM – LOSERS
SDX Energy PLC, down 55% at 0.85p, 12-month range 0.85p-4.25p. The Middle East and North Africa-focused exploration & production company has called a general meeting on December 31 to vote on its proposed delisting from AIM. Proposes cancellation of admission to trading on AIM and re-registering as a private limited company, with a circular scheduled for publication next week. Cites the “considerable cost and management time and the legal and regulatory burden” associated with the public listing, and “limited liquidity” in its ordinary shares, as well as market volatility. Adds that being unlisted would allow it more flexibility to enter deals with investors and suppliers; allow it to implement decisions more quickly; and give it more opportunities to raise equity and debt financing. Explains: “The majority of the potential investors the company has recently engaged with have expressed a preference to invest in the company if the ordinary shares were not traded on AIM.”
How will this affect individuals?
The rise and fall of these stocks on AIM can have a direct impact on individual investors who have holdings in these companies. Depending on whether one has invested in the winning or losing stocks, there could be financial gains or losses to be experienced.
How will this affect the world?
The performance of these stocks on the AIM market may also have broader implications for the financial market as a whole. It could influence investor sentiment, market trends, and economic stability, which in turn can impact global financial markets and the overall economy.
Conclusion
In conclusion, the fluctuation of stocks on AIM highlights the dynamic nature of the financial market and the potential effects it can have on both individuals and the world at large. It is important for investors to stay informed and make wise decisions based on market trends and company performance.
