Given all the talk surrounding Arm Holdings’ successful debut on the Nasdaq, you might be surprised to learn that London’s junior market is home to another, albeit significantly smaller, fabless chipmaker in Sondrel (Farms) Anonymous society.
Sondrel is in the business of application-specific integrated circuit (ASIC) designs, which is geek speak for computers that are designed with a single job in mind.
Bitcoin miners, for example, use an ASIC created to mine bitcoins and nothing else.
You understand.
The London junior market is home to another, albeit significantly smaller, fabless chipmaker, Sondrel (Holdings) plc.
Still, as Arm Holdings takes flight in New York, adding 20 percent on the first day of trading, Sondrel has been in for a bit of a surprise.
Shares fell another 15% this week as they continued to suffer project delays and reduced customer orders. So far this year, Sondrel is down a crushing 76 percent.
In its latest earnings call, the group admitted that full-year revenue will be “substantially below current market expectations”, with a corresponding impact on full-year losses.
This Wednesday, Joe Lopez agreed to resign as CFO effective immediately, and interim CFO Nick Stone, who is not on the board, will take over the temporary role.
Maybe a coincidence of timing?
As for the broader small-cap market, the AIM All-Share Index is off to a worrying start after losing nearly 1 percent on Monday.
This was despite the blue-chip index starting the week on a strong note in anticipation of a week packed with macroeconomic news.
Fortunately, junior stocks swung in the right direction as UK unemployment met expectations, as did the European Central Bank’s 25 basis point interest rate decision.
The US inflation numbers were a little high, but not enough to spook the markets.
The AIM All-Share ended up recovering those losses from Monday to close the week unchanged at 746.42, although this was a marked underperformance of the FTSE 100, which gained more than 3 per cent.
A large portion of the disposable vaporizer distributor’s stock value. Supreme were thrown in the bin following a damning investigation into the environmental effects of cheap, single-use vaping kits. Shares fell 16.6 percent for the week.
Ocean Harvest Technology Group plc, one of AIM’s few debutants in 2023, took a slight beating in the wake of its first interim results report as a listed company.
The group, which specializes in the research, development and sale of seaweed products for use in the animal feed industry, reported a delay in adding new customers in Europe due to rising seaweed prices. food ingredients, causing shares to fall 18 percent.
Shareholders made their opinion of the medical technology company clear Belluscura interim results, with shares falling more than 18 percent this week.
Revenue and profit figures objectively justified this response, with top-line sales falling for a third year-on-year to $400,000 (£321,000) and adjusted EBITDA falling 30 per cent to $2.9 million.
It’s never a weekly recap without discussing the latest delisting news. This week Sportech brings it to you.
You may be aware of Sportech Through its collective betting site 123Bet, or perhaps Connecticut, American readers have visited one of its nine licensed gaming entertainment venues in the state.
Monday’s strong set of results, which showed a three-fold rise in underlying profits, were not enough to deter the group from pressing ahead with its plan to delist from London’s AIM junior exchange.
“Despite the improved operating results announced today, the significant financial cost associated with maintaining a public listing, given our current scale, and increasing volatility in market valuation are negatively impacting net returns and prospects. future,” said CEO Richard McGuire.
Not an uncommon sentiment in 2023 capital markets.
Heavy Industries proved to be AIM’s savior this week, thanks to a resurgence in sentiment towards China-exposed industries and rising commodity prices.
Exploration and development minnow. Critical mineral resources (formerly Caerus Mineral Resources) had an excellent week, rising nearly 50 percent after confirming the completion of the sale of its assets in Cyprus.
Other major industrial drivers recorded Synergy Energy, Pantheon Resources and Cadence Minerals plc rose more than 20 percent, with Atome Energy and Coro Energy rising more than 10 percent.
LoopUp Group led the charge in the communications sector after beating revenue and margin targets in its interim earnings. Shares are up about 40 percent week over week.
Finally, Keystone Law plc turned heads on Thursday after confirming that full-year results will be “comfortably above market expectations.” As a result, shares closed the week a little more than 10 percent higher.
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