SMALL CHAPTER MOVES: AIM investors breathe a sigh of relief after budget

The junior market breathed a sigh of relief this week after Labor chancellor Rachel Reeves confirmed that an inheritance tax (IHT) exemption on AIM shares is here to stay.

Well, partially anyway. Reeves reduced the IHT exemption, currently worth 40 per cent, to 20 per cent.

Before its Budget debut, there were fears that the exemption would be scrapped entirely, so the softer touch given by the Chancellor was a sweet enough pill for the market to swallow.

The AIM All-Share Index rose from 718 to 744 immediately after Wednesday’s budget announcement and closed the week up 2 percent.

According to analysts at the Panmure Liberum brokerage, Galliford Try Holdings plc is a likely beneficiary of Reeves’ Big State Budget, which included a substantial £24.6 billion increase in capital investment.

Analysts highlighted that the government’s commitment to social housing development aligns with Galliford Try’s portfolio of public and regulated sector projects.

The government has also earmarked £6.6bn for investment in education by 2026, with £1.4bn set aside for the rebuilding of more than 500 schools, from which Panmure Liberum also hopes Galliford Try will benefit.

Gaillford Try shares closed the week up 6 per cent at 390 pence per share.

For the green fertilizer producer atom plcIt was far from the worst budget for the junior market.

Olivier Mussat, CEO of Atome, said: “Even with the reduction of the inheritance tax exemption, AIM will continue to offer a unique way for investors to support local early-stage British companies such as Atome, the sole fertilizer producer. listed in the United Kingdom”. .

“Recent speculation about tax changes has impacted stock prices, but now that the market has certainty, I expect we will see a recovery soon.”

Tax increases on North Sea windfall profits announced in the Budget did little to deter investors in the North Sea oil exploration company. Jersey Oil and Gas plcwhose shares rose 38 percent this week.

Many other energy companies also made significant profits, including United Oil & Gas plcwhich added up to 33 percent, and Orcadian Energy plcwhich added up to 30 percent.

In the alternatives space, the hydrogen storage investor EnergyPathways plc rose more than 20 per cent, reflecting Reeves’ announcement that the UK’s clean energy sector will benefit from £3.9 billion in funding in 2025-26.

This briefly boosted the shares of the green hydrogen electrochemistry specialist. Ceres Power Holdings plc in action too. Ceres immediately rebounded 8 percent after the announcement, although a sharp pullback followed.

However, not all energy companies had a decent week.

Tlou Energía Ltda Shares fell 45 percent following a quarterly activity report. Its A$944,000 (£480,000) cash position probably spooked investors.

Tlou’s mentioned that its largest shareholder is willing to offer the company a loan of up to A$5 million to support its gas production operations.

Mosman Oil and Gaswhich published its annual results this week, fell 23 percent. Chief executive Andy Carroll hailed a “significant year” for Mosman as it aims to begin drilling on its helium projects before the end of 2024.

Other energy reducers included. Empyrean Energy plcwhich fell 17 percent and Europa Oil & Gas, which fell 12 percent.

AIM-Listed Translation and Localization Service Provider RWS Holdings fell 15 percent on Tuesday as it warned sales would remain flat in the current twelve months, marking two years of static revenue.

RWS managed to recover late in the week, but the stock failed to escape the red zone on Friday.

In the technological field, actions of the semiconductor wafer specialist IQE plc. fell 20 percent after announcing that CEO Américo Lemos had left the company effective immediately.

IQE has been trading lower in recent weeks following a warning that trading performance will be worse than expected this year.

Touchstar plc He also warned about profits. Shares of the mobile data solutions provider fell 12 percent after the company announced that its 2024 revenue is likely to fall below previous forecasts due to order delays and slower conversion times.

Finally, the AIM Elimination of the Week was brought to you by Eckoh plc. The board agreed to a takeover by private equity suitor Bridgepoint for a total value of £169.3m.

The AIM-listed payment solutions provider, which has been seeking a deal since last year, has been considering the offer since August.

Shares rose 24 percent following the announcement.