logo-loader

Small cap movers: Audioboom shares flop as botched takeover makes for painful listening

Published: 19:00 06 Oct 2018 AEST

Man covering his ears

Starting off with one of the weeks top losers, podcast platform Audioboom Group PLC (LON:BOOM) saw its shares dive 34% as a botched acquisition blew a hole in its finances.

The firm said the “abortive” takeover attempt of technology company Triton Digital had incurred various costs including a £700,000 break fee which had dropped down into the bottom line.

As a result, Audioboom said its losses for the year would be higher than previously thought.

Following behind was oiler Argos Resources Limited (LON:ARG), which slumped 22% after its two partners in the North Falkland basin pulled out.

Argos holds a 5% stake in licence PL001, but Noble Energy and Edison International, which own the remaining 95% interest, have said they plan on exiting.

At the other end of the scale, top weekly riser Newmark Security PLC (LON:NWT) rocketed 62% after cutting its pre-tax losses for the year by more than half.

The narrowed loss, despite flat revenues, followed the completion of development work on one of its new platforms, Sateon Advance, which reduced costs for the year.

Meanwhile, measurement and testing equipment maker AB Dynamics plc (LON:ABDP) climbed 15% over the five days after saying its profits for the full year would “significantly exceed” market expectations.

The uptick in earnings was down to increased sales of AB’s track testing products, which are used in the development of self-driving cars.

Speaking of driving, the AIM All-Share index rolled downhill over the week, falling 28 points to 1,073.

The FTSE 100 was also on the descent, albeit on a steeper slope, and was down 124 points at 7,371.

Back in the fallers, Mayan Energy Limited (LON:MYN) was on the slide after the resignation of its chief executive sent shares tumbling 12% over the week.

The oil and gas firm said Eddie Gonzalez’s resignation would take place with immediate effect, with executive chairman Charlie Wood stepping into the role as interim CEO.

There was better news for e-sports group Gfinity Plc (LON:GFIN) as it clinched a deal to become the official operator of the ePremier League video game tournament, causing shares to rise 7.8%.

The ePL starts in January 2019 with every Premier League clubs represented, giving UK-based players the chance to compete for and represent their favourite team for the first time ever in competitive gaming.

Elsewhere, software firm Intercede Group PLC (LON:IGP) jumped 27.5% after forecasting 10% growth in revenues for the first half.

The cybersecurity company added that it expected its operating losses to be “substantially reduced” to less than £1mln compared to a £3.1mln loss a year ago.

At the very top of the losers was digital content firm Big Sofa Technologies PLC (LON:BST) after a rights issue with a very (very) discounted price tag sent its shares plummeting over 50% in the week.

The shares, issued on Monday at 3p a pop, were priced at less than half of what they were trading at on Friday the previous week.

Seeing more success was turnaround specialist Volvere PLC (LON:VLE) after it sold its automotive consultancy, Impetus Automotive Ltd, to MSX International Ltd for £31mln, with shares jumping 21% in response.

Following the disposal, Volvere will focus on developing its remaining investments, including food manufacturing business Shire Foods and CCTV software firm Sira Defence & Security.

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

9 hours, 36 minutes ago