Share Talk Weekly Small Cap Movers & Shakers, Saturday 1st February 2025

The AIM all-share index increased by 0.5% to reach 718 on Friday morning, although it continued to lag behind mid-cap and blue-chip indices that posted substantial gains.

Meanwhile, the FTSE 100 broke its records several times late in the week, rising by 2.2% on Friday to 8,687.

The FTSE 100’s limited exposure to technology helped it avoid a global sell-off following the release of DeepSeek’s more affordable, less data-intensive artificial intelligence bot. In contrast, the FTSE 250 initially experienced pressure before rebounding with a 1.7% increase to 20,875.

Marechale Capital (MAC) shares soared by 127% over the week amid growing speculation about the imminent approval of a project being developed by its investee, Weardale Lithium Limited. On Wednesday, Marechale revealed that Durham County Council had recommended giving the green light to the lithium project—poised to be the UK’s largest extraction site—pending a hearing in early February.

Tribal Group (TRB) reported that its 2024 revenues and cash flow have surpassed expectations. The company increased its revenue forecast by 5% to £90 million, with pre-tax profits now expected to reach £12 million. However, due to a decline in £5 million of legacy contract revenues, 2025 revenues are anticipated to remain flat, resulting in a projected pre-tax profit of £10.4 million. Meanwhile, the share price bounced back by 21% to 47.2p.

Mosman Oil and Gas Ltd (MSMN) was another significant mover, with its shares surging nearly 56% following Thursday’s updates. The boost came partly from progress reported on its American helium venture. In addition, Mosman’s 20% stake in Vecta Oil and Gas contributed to its momentum after Vecta signed a deal with contractor Desert Eagle Operating to begin drilling at up to five wells “as soon as possible.” Separately, Mosman announced an extension for an exploration permit in the Amadeus Basin in Australia’s Northern Territory, even as the sale of that asset to Echelon Resources continued.

Europa Oil & Gas (EOG) is aiming to secure a full carry on an exploration well in Equatorial Guinea, targeting the Barracuda gas prospect. With the Irish government showing increased support for oil and gas exploration, finding a partner in the region should be more straightforward. The company also has sufficient cash to cover its 2025 requirements. Meanwhile, the share price has risen by 6.25% to 0.85p.

Among other AIM risers, Fevertree Drinks (FEVR) climbed 24% after securing an exclusive sales, distribution, and production agreement with Molson Coors for its carbonated mixers in the US. As part of the deal, Molson Coors also agreed to purchase an 8.5% stake in Fevertree for £71 million—a move the company said would facilitate a share buyback.

Fusion Antibodies (FAB) reports that its OptiMAL validation project is progressing as planned, with the National Cancer Institute identifying several antibody-expressing cells that effectively bind to the targeted markers. DNA analysis by Fusion Antibodies is expected to take several months. Meanwhile, the share price increased by 8% to 8.75p.

Transport management software firm Microlise Group PLC (SAAS) also enjoyed a robust performance, with its shares rising 41% for the week after the company posted better-than-expected full-year results. It reported a 12.9% increase in revenue to £81 million and a 20.2% rise in adjusted earnings to £11.3 million, comfortably surpassing market expectations.

Artemis Resources (ARV) has pinpointed drilling targets at the Karratha gold project for early February, with three sites set for initial testing. The share price increased by 6.25% to 0.425p.

Quadrise PLC (QED) received a late boost on Friday as it continued the fundraising trend among AIM-listed companies. The clean energy technology provider announced that it had raised approximately £6.53 million after a retail offer, part of a broader fundraising effort, was doubled in size due to strong investor demand.

FALLERS

In contrast, Metals One PLC (MET1) ended up as the biggest loser in the junior market this week. Its shares fell by almost 44% following revelations of its attempts to secure £5 million, which included a £4.4 million equity raise. The company acknowledged that these fundraising efforts would lead to “significant dilution for shareholders” but maintained that the capital would support its operations over the next 18 months. The share price tumbled 47.1% to 0.225p.

Oncimmune (ONC) is on track to double its revenues to £3m in 2024, with interim revenues expected to rise by 20% to £1.4m. Although the company is adding new contracts, the pace has slowed, and while there are potential deals that could significantly boost performance in the second half, their timing remains uncertain. Additionally, one contract has been deferred to next year. The annual cost base has been reduced to £5m, though additional financing will be required. Meanwhile, the share price fell by 21.7% to 9.75p.

Maintel (MAI) reported 2024 revenues that fell short of expectations, accompanied by higher-than-anticipated net debt of £16.7m. Revenues reached £97.9m, and the loss of several contracts has led to a downward revision of the 2025 forecasts. The company is now concentrating on higher-margin business, and although pre-tax profit is estimated to have increased from £3.9m to £4.8m in 2024, overall earnings remain lower. Additionally, a permanent chief executive is currently being recruited. The share price dropped by 15.2% to 235p.

Celadon Pharmaceuticals (CEL) expects to receive the remaining £103,000 from its committed credit facility in February. The company has sufficient cash to last until March if the drawdown is further delayed. Although discussions with one previously mentioned potential finance provider have ended, other options remain under consideration. The share price fell by 19.4% to 14.5p.