Share Talk Weekly Small Cap Movers & Shakers, Saturday 22nd February 2025

In London, the FTSE 100 dipped 0.1% to 8,651.18, as economic data revealed a mix of rising retail sales but weakening public finances. Meanwhile, the midcap FTSE 250 climbed 0.4% to 20,684.60.

The AIM All-Share index, often seen as a gauge of the small-cap market’s overall health, fell by 0.9% to 720 points, offering little reassurance to investors. Its decline aligned with the broader trend of the FTSE 100, which pulled back from record highs to register a 0.8% weekly loss.

On Friday, Europa Metals Ltd (EUZ) voiced frustration over its declining share price, using the LSE’s news service to express its concerns. The company stated it was perplexed by the sharp drop following the resumption of trading, particularly after its decision not to acquire Viridian Metals Ireland, which owns the Tynagh brownfield Pb/Zn/Cu/Ag project in the Republic of Ireland. Europa Metals holds seven million shares in Denarius Metals Corp, valued at £175,000 at 2.5p each. After selling its main asset to Denarius on 13 November, the company has six months to secure a new acquisition, or its shares will face suspension. Although the share price rebounded by 37.5% to 1.65p, it remains 17.5% lower since returning from suspension.

Inspiration Healthcare Group PLC (IHC) emerged as one of the week’s top performer, surging 41% following a robust trading update. The company reported a strong second half and anticipates sustained momentum, driven by cost-cutting initiatives that have successfully returned it to profitability.

SEEEN PLC (SEEN) also delivered a standout performance, surging 23% after CEO Adrian Hargrave discussed the company’s rapid growth with Proactive’s Stephen Gunnion. The video tech firm reported revenue growth from $2.1 million in 2023 to $3.2 million in 2024, with an annualized run rate of $5 million. Its AI-powered platform, which enables content creators to monetize video content, is gaining momentum across sports, e-commerce, and education sectors.

Tavistock Investments PLC (TAVI) had a strong week, rising 18% after finalizing its acquisition of Alpha Beta Partners, an asset management firm overseeing nearly £3 billion. The deal, initially agreed upon in November, is now complete, with an initial £6 million payment made.

Meanwhile, Gemfields Group Ltd (GEM) shone with a 14% gain after Zambia scrapped its controversial 15% export duty on precious gemstones. The tax had previously halted exports from Gemfields’ 75%-owned Kagem emerald mine. With shipments and auctions now resuming, revenue prospects have improved significantly. In response, Panmure Liberum raised its price target for the stock from 16p to 20p—well above its current 6p level.

Greatland Gold (GGP) announced maiden drilling results for the West Dome Underground target at the Telfer prospect, located 800 metres beneath the West Dome open pit. Of the 19 drill holes, 16 intercepted significant mineralisation, with a weighted average intercept of 23 metres at 2.95g/t gold and 1.07% copper. These results suggest potential for extending the mine’s lifespan. A second phase of drilling is planned. Following the announcement, the share price rose 8.54% to 8.9p, compared to last autumn’s fundraising price of 4.8p.

Oil and gas company Pantheon Resources PLC (PANR) climbed 6% as it bolstered its financial position and welcomed a new CEO. Max Easley, a 30-year industry veteran with experience at BP Alaska, Apache Corporation, and Petronas Canada, takes the reins as the company transitions from exploration to production and considers a potential US listing. Outgoing CEO Jay Cheatham will remain as a non-executive director during the transition.

FALLERS

Biome Technologies PLC (BIOM) saw its shares plummet 60% on Friday after announcing plans to delist from AIM, joining the wave of companies exiting the exchange. The company has scheduled a general meeting for 13 March to seek shareholder approval for the move. Citing trading setbacks and a depressed share price, management stated that securing additional funding has become increasingly challenging. They believe transitioning to a private company will make fundraising more accessible, simplify transactions by eliminating public disclosure requirements, and reduce costs. Post-delisting, JP Jenkins will offer a matched bargain facility for trading shares.

Biome is among nearly a dozen companies in the past month alone that have chosen to exit the public market, seeking a quieter and more flexible existence as privately owned entities. So far in 2025, the trend shows no signs of slowing, keeping pace with last year’s exodus, which saw 90 businesses delist.

ZOO Digital Group PLC (ZOO), faced a turbulent week, with shares tumbling 41% after warning that full-year revenue and profit would fall short of expectations. Despite implementing a 20% reduction in fixed costs and focusing on higher-margin opportunities, the company has been severely impacted by customer delays and cancellations, putting significant pressure on its order book.

Meanwhile, it was a punishing week for investors in green tech firm Ceres Power Holdings PLC (CWR), as shares plunged over 40% following a major setback. Key partner Robert Bosch announced its decision to end its collaboration with Ceres as part of a strategic overhaul and plans to offload its 17.44% stake in the company.

Jet2 PLC (JET), one of AIM’s more prominent names, encountered turbulence this week, with shares dropping 10% after cautioning that rising costs would dent profits. The company is facing mounting financial pressures, including a 3% staff pay increase, higher hotel and airport fees, and an additional £25 million in wage and national insurance costs. Adding to the burden, its investment in sustainable aviation fuel is expected to tack on another £20 million to expenses.