Mike Ashley’s Frasers Group’s appetite for struggling retailers continues to grow by the day.
On the menu this week was Hornby plcthe model train manufacturer whose roots date back to the early 20th century.
phraseswhich along with Sports Direct has stakes in boohoo, Currys and Asos, increased its stake in Hornby, whose products are already stocked in Frasers-owned GAME stores, to 8.9 per cent according to an announcement on Friday.
‘Hornby’s portfolio of unique heritage brands is already part of GAME’s product offering and we look forward to exploring opportunities to further leverage our scale in retail logistics and distribution. “This is consistent with our strategy of pursuing strategic interests to enhance value for all stakeholders,” said Chris Wootton, Frasers CFO.
“We look forward to exploring business opportunities by working together to unlock the full potential of Hornby’s best-loved brands,” said Hornby boss Olly Raeburn.
Going further: Frasers Group increased its stake in Hornby, whose products are already stocked in Frasers-owned GAME stores, to 8.9 per cent according to an announcement on Friday.
“Profit warnings have been more regular than the number 8 bus to London Victoria,” said Russ Mould, investment director at AJ Bell on Hornby.
But Horby’s long-suffering shares surged to the top of the small-cap scene following Friday’s announcement, adding 40 per cent to 29.2p.
Things were less encouraging for the small-cap stock market as a whole, with the AIM All-Share Index falling around 10 points, or 1.3 per cent, to 748 over the week.
The leading index also underperformed, with the FTSE 100 closing down 24 points, thanks largely to a mid-week drop after several weak results from blue-chip companies (hello HSBC) pushed the index up. down.
Center for Economic and Business Research (CEBR) head Nina Skero’s weak economic growth projections didn’t help either.
However, there have been some notable risers in the AIM market, including Marlowe plc.
marlowe plc shares jumped 48 per cent, the strongest among AIM as a whole, when the software company announced the £430 million sale of some of its assets to Inflexion Private Equity.
Profits represented 121 percent of Marlowe’s market capitalization and the money went to paying down debt and returning cash to shareholders.
“The valuation achieved demonstrates the substantial potential of our business and will reset our capital structure, giving Marlowe strategic agility,” said President Kevin Quinn.
Advertising and promotional minnow. SpaceandPeople plc hailed a better-than-expected second half of 2023, particularly thanks to its Brand Experience division, the launch of its ‘Rock Up and Pop Up’ retail kiosk service and the further recovery of its German retail business.
Sales amounted to around £5.8 million, up from £4.7 million in 2022, and shares rose 23 percent over the week.
Cosecha Minerales Ltda continued to pile on gains after the AIM-listed fertilizer producer reported an order target of 70,000 tonnes by 2024 late last week. Shares continued to rise another 28 percent this week.
Empyrean Energy plc led the charge in the energy sector, with investors welcoming an update on the Mako field development project in Indonesia, where the government has already approved key commercial terms.
It is considered an important milestone that now allows the project operator to finalize gas sales agreements in full and advance the project closer to production. As a result, Empyrean shares rose 27 percent.
Powerhouse Energy Group plc Shares rose a quarter following the announcement of a ground-breaking five-year framework agreement with Australia’s National Hydrogen.
This deal marks a significant expansion for Powerhouse as it could deploy its cutting-edge waste-to-energy technology in Australia, Italy, Switzerland and Hong Kong.
TomCo Energy plc witnessed an underwriting downgrade after raising £300,000 of new funding through a capital raising process, with the proceeds providing working capital to advance its Utah project.
Shares fell 40 percent.
Actions in Horizon Minerals PLC were cut in half following the announcement that the bill to complete its Brazilian nickel mine had almost doubled to $1 billion.
Despite the setback, Horizonte expects to produce its first metal in early 2026, which seems optimistic given that the necessary additional cash has not yet been found.
Lastly, it would be remiss not to mention the major companies listed on the market. CAB Payments Holdings plcwhich parted ways with its chief executive after a disastrous period since going public in July last year.
CAB has lost 70 percent of its value since its IPO, most of which came after a profit warning just three months after its IPO.
Some links in this article may be affiliate links. If you click on them, we may earn a small commission. That helps us fund This Is Money and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.