Capital equipment manufacturer Mpac Group (LON: MPAC) is the worst performer on AIM today with a 31.6% slump to 260p after it warned that full year profit would be significantly below expectations. Interim revenues are ahead of last year and the order book is also higher. However, difficulties sourcing components and delays to the timing of orders have hampered progress. The longer lead times and inflationary pressures will continue for the rest of the year. The core food and healthcare markets remain resilient, so the long-term outlook is positive. There was cash of £14.5m at the end of 2021, which has enabled investment in inventories. The interims will be published on 8 September.
A positive first half trading statement from international payments services provider Cornerstone FS (LON: CSFS) has triggered a bounce back in the share price. It has jumped 56.7% to 11.75p. First half revenues were 129% higher at £1.9m and three-quarters is direct business. That has helped interim gross margin improve from 38.1% to 61%. A lack of cash remains a problem, though. Management believes that it has enough cash to get to the end of the year. Even so, Cornerstone FS needs to make acquisitions to reach a scale where it can be profitable and that will be difficult at this share price.
Fears concerning the financial position of fashion retailer Joules (LON: JOUL) have hit the share price, which has slumped 19.7% to 26.625p. The shares have fallen by 81.6% so far this year. This was due to the appointment of KPMG as debt adviser. Net debt was £21.4m at the end of May 2022 and there was headroom of £11.3m. The company is trying to manage its cash so that it gets through the seasonal borrowing peak. Chief executive Nick Jones is leaving the board and a successor is being sought.
Sample results from the Loflin project have sparked a 16% rise in the Lexington Gold (LON: LEX) share price to 2.9p. They confirm shallow, high-grade intercepts of up to 10g/t gold. A JORC resource estimate for the combined Jones-Keystone-Loflin project is expected by the end of July.
Retail and promotions business SpaceandPeople (LON: SAL) says interim revenues jumped from £1.1m to £2.5m. Trading has been improving each month and full year revenues of £5.5m are anticipated. The share price recovered 15% to 115p. Last month there was a share consolidation and the post-consolidation share price was 140p. Oil and gas company San Leon Energy (LON: SLE) has returned from suspension following the deals announced on Friday. The share price fell 9.7% to 36.8p. The series of deals will consolidate the stake in the OML18 project in Nigeria to 44.1%. San Leon will also increase its stake in Energy Link Infrastructure (Malta) Ltd, which is building an oil export pipeline, to 50.6%.
