Challenger stock exchange Aquis Exchange PLC (AIM:AQX) has clocked up a raft of wins this year, from outpacing AIM in terms of new IPOs (numerically speaking, if not by sheer volume) to securing new technology clients at home and abroad, including the Central Bank of Colombia.
The exchange’s share price similarly escalated to highs not seen since early 2022, peaking at 500p in July.
Unfortunately, a profit warning crashed the party this week, as Aquis disclosed that full-year results will suffer £1 million worth of damage from the non-renewal of a historical contract in its technology segment.
Chief executive Alasdair Haynes took it on the chin, stating: "Whilst it is disappointing that our near-term trading has been impacted by a single contract, I am pleased with the progress that we continue to make in establishing the foundations to deliver our strategic objectives."
Aquis is as much of a technology provider to other market makers than it is an equities exchange in its own right.
Despite the setback, the AIM-listed group said it intends to ramp up investment in this technology division, which Panmure Liberum reckons underscores the “longer-term opportunities for the business”.
But that was not enough to fend off an 18% fall in its share price.
AIM underwhelms
The broader AIM All-Share Index was ticking along nicely until Wednesday, when stocks across the board took a whacking.
Labour leader Keir Starmer made not-so-subtle hints of impending tax hikes in the October budget, giving us a spoiler alert that the budget will be ”painful”.
For some more than others though- those “with the broadest shoulders should bear the heaviest burden”, he remarked. Cue financial services stocks taking a tumble.
AIM entered Friday 0.5% lower from the previous Friday’s close, an underwhelming result compared to the 0.8% gain on the FTSE 100.
The blue-chip index was supported by strong performances from a diverse set including Bunzl, easyJet and BAE.
More risers and fallers
Nanoco Group PLC (LSE:NANO), the London-listed supplier of materials used in infrared sensing applications, plummeted by a third after announcing the loss of a key European customer.
Broker Peel Hunt took no prisoners in its assessment of the news: “With this strategic shift, Nanoco’s chances of commercialisation fall to zero in 2025, resulting in the company expecting revenues to be 25% below consensus, and shifting down from a low starting point for the outer years.”
The broker said there is “potential for Nanoco to be used in a reverse takeover”.
Audio interface maker Focusrite PLC (AIM:TUNE) was the latest to warn on Red Sea disruptions as associated shipping costs.
“Product introductions were planned for the final quarter but the benefit of these has been offset in August by a significant reduction in stocking policy by a major reseller,” it said in a trading statement. Shares bombed 18%.
Quiz PLC (AIM:QUIZ) shares also tumbled 18% on Thursday after the online fashion retailer revealed ongoing struggles, which has seen it turn to its founder and largest shareholder for financial help.
The company reported a £5.2 million loss for the year ending March, compared to a £2.3 million profit the previous year. Liquidity shrank significantly, with cash reserves falling to just £300,000.
To stabilise the business, Quiz is in discussions with Tarak Ramzan for a £1 million loan.
Among the biggest fallers in the mining sector were nickel minnow Uru Metals Ltd, off 29%; Critical Metals PLC (LSE:CRTM), off 35% following an operational update; and Tertiary Minerals PLC (AIM:TYM), off 21% after announcing that a Swedish mining concession had been refused.
On the contrary, small-cap coal miner Bisichi Mining PLC (AIM:BISI) had a ripper, flying 46% higher on Friday in response to a glittering half-year report.
This also benefited 42% share owner London & Associated Properties plc (LSE:LAS), which rallied around 29% on the prospect of tasty dividends from Bisichi’s mounting cash position.
Earnings per share escalated to 18.33p, from a 3.18p loss in the first half of 2023.
Bisichi attributed this to “a significant improvement in mining production and lower mining costs at Black Wattle Colliery, the Group’s South African mining operation”.
Greenroc Mining plc added 29% as investors applauded the acquisition of land for a sustainable industrial park in southern Norway.
In the biotech sector, Faron Pharmaceuticals Limited (AIM:FARN) led the charge with a 19% gain after receiving fast-track approval from the US Food and Drug Administration (FDA) for its lead candidate, bexmarilimab, which is designed to treat relapsed or refractory myelodysplastic syndrome (r/r MDS) in combination with azacitidine.
Peel Hunt called bexmarilimab “a very exciting asset on the oncology landscape”.