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AIM movers: Gama Aviation sells subsidiary for more than share price and Sosandar delays profit by investing in stores

Gama Aviation (LON: GMAA) is selling its Jet East business for $131m. Adjusting for debt and transaction costs the net amount is $100m, which is equivalent to 125p/share. That could allow a 55p/share dividend. The share price is two-thirds higher at 87.5p. The rest of the cash can be reinvested in the remaining aviation services businesses. It recently won air ambulance and offshore helicopter contracts.

Further positive news from Ondine Biomedical Inc (LON: OBI) about its Steriwave treatment. A study says that treatment with Steriwave photodisinfection reduced the amount of viable bacteria by more than 99.9% compared to the control group. Further clinical studies are warranted. The share price jumped 51.4% to 14p, which is nearly double the share price on 6 October.

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BUPA is offering its UK insurance customers the EpiSwitch CiRT blood test developed by Oxford BioDynamics (LON: OBD). This test predicts the cancer patient’s response to treatment. The share price is 14.2% higher at 37.7p.

Litigation finance provider Manolete Partners (LON: MANO) is benefiting from the UK government removing Covid-era protections against insolvency. In the six months to September 2023, the number of case investments jumped from 83 to 146. Bounce back loan cases separately increased from 83 to 179. The share price is 10.1% ahead at 147.5p. This is a recovery from its low.

FALLERS

Fashion retailer Sosandar (LON: SOS) has decided to reduce promotional and discounting activity on its website and open retail stores. There will be four shops by next spring. This will hold back short-term revenues but could accelerate progress in 2026-27. Singer has cut its full year revenues forecast by 19% to £46.8m. This means that having made a profit last year, this year Sosandar will be back to breakeven, and it will take two years to beat the £1.6m profit made last year. The initial reaction was negative with a 28.9% decline in the share price to 12.625p. That is the lowest share price for more than three years. In February, cash was raised at 22p.

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Hardide (LON: HDD) made a loss of around £1m in the year to September 2023, even though revenues were lower than forecast. The specialist coatings company has reduced its cost base. Sales to the aerospace sector are building up and there should be initial income from steam turbines, which was delayed from last year. Allenby has reduced forecast revenue for this year but maintains a £700,000 loss. The share price fell 16.7% to 12.5p.

Diagnostics company Abingdon Health (LON: ABDX) says that finance director Melanie Ross is leaving at the end of November. An interim replacement will be appointed. The share price is 8.7% lower at 10.5p.

Cirata (LON: CRTA), formerly known as WANdisco, is trading in line with expectations with bookings of $1.7m in the latest quarter. They are expected to be higher in the fourth quarter and the software company’s management is confident that the prospects are genuine. Cash should be at least $16m at the year end and Cirata could be cash breakeven in 2024. The share price dipped 8.7% to 10.5p.

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