Small caps news round-up
Somero Enterprises said on Tuesday that its full-year results are likely to be slightly ahead of market views thanks in part to a strong performance in June. The company, which manufactures technologically-advanced concrete placing equipment, said trading in June was much stronger than in May and the same month last year thanks to solid activity in North America.
A subsidiary of Benchmark Holdings’ breeding and genetics division, SalmoBreed, has signed a ten-year agreement with one of the world’s top three salmon producers for the supply of the SalmoBreed genetic stem into its production sites. The agreement with Leroy Aakvik Roe and Stamfisk will see the company begin to breed with SalmoBreed’s genetic lines, producing SalmoBreed strain ova for sale to companies within the Leroy Group.
Quantum Pharma chief executive Andrew Scaife has stepped down after seven years but is leaving the company with current trading running in line with management expectations. Scaife has decided to leave the Newcastle-upon-Tyne company due to family reasons but has agreed to stay until he can make a smooth handover to a replacement.
Online advertising agency RhythmOne, which changed its name from Blinxx in June, expressed confidence about returning to full year profitability and played down the effects of Brexit as trading in the first quarter "materially" beat expectations. A trading update for the first quarter to 30 June impressed investors, lifting shares in the company to their highest level in over a year, as programmatic platform revenues increased.
Shares in business services consultancy Begbies Traynor slumped even as the company swung to a full year pre-tax profit of £0.6m from a loss of £0.7m as revenues rose to £50.1m from £45.4m, although lower insolvency rates impacted on both figures. Adjusted pre-tax profits were up to £4.5m from £3.6m. The total dividend is held at 2.2p a share.
Online fashion retailer ASOS reported a 30% rise in total sales for the four months to 30 June and said it expects full-year sales growth to be at the upper end of the 20-25% range. Total retail sales grew to £500.5m from £386m in 2015, beating analysts’ expectations of around 23% growth.
Hotel Chocolat, which listed on AIM in May, posted a 12% increase in full-year revenue, which was slightly ahead of market expectations. In a trading update for the 52 weeks ended 26 June, the company reported revenue of £92.6m, with revenue in the digital retail channel up 20%.
Metal Tiger founder Cameron Parry is taking over the reins at Kolar Gold as the miner also announced it would spend £0.2m on a 9.4% stake in the India-based outfit. Metal Tiger said it was buying 18.2m shares in Kolar at a price of 1.1p each. It will also get the same number of warrants to buy new ordinary shares in the firm at an exercise price of 2.2p per new share exercisable at any time within 30 months of the placing shares being admitted to trading.