AIM weekly movers: CMO Group shares fall by nearly three-quarters from float price

CMO Group (LON: CMO) fell 54.8% to 35p, making it the worst performer of the week. Last year’s placing price was 132p. The online retailer of building products says revenues in the 27 weeks to June 2022 are 10% ahead, or 2% higher like-for-like. Full year guidance is that 2022 revenues will increase from £76.3m to at least £86m, but previously £95.5m was expected. The EBITDA estimate has been reduced from £5.55m to around last year’s level of £3.7m. Supply problems have increased costs and trading is getting tougher. CMO still appears to be winning market share. The shares are trading on less than 17 times prospective 2022 earnings.  

Fashion retailer Joules (LON: JOUL) shares declined every day last week and ended at 20.8p, down 37.3% to a new all-time low. Fears concerning the company’s financial position hit the share price, following reports about the appointment of KPMG as debt adviser. Joules is trying to manage its cash so that it gets through the seasonal borrowing peak. Net debt was £21.4m at the end of May 2022 and there was headroom of £11.3m. Chief executive Nick Jones is leaving the board and a successor is being sought.

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Capital equipment manufacturer Mpac Group (LON: MPAC) warned that full year profit will be significantly below expectations. There was a small share price recovery at the end of the week, but it was still 36.2% lower at 242.5p. Interim revenues are better than last year, and the order book is higher. However, difficulties sourcing components and delays to the timing of orders have hampered progress. The longer lead times for components and inflationary pressures will continue for the rest of the year. 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 £3.75m fundraising at 0.5p a share by EQTEC (LON: EQT) was not well received by the market and the share price fell 35.7% to 0.45p. EQTEC raised more than the minimum of £3m that it was seeking. The cash will fund wase to energy projects. These include a 9.9Mwe advanced gasification technology facility and 2MW anaerobic plant at Deeside. Black and Veatch has been appointed as engineering and construction consultant for part of the facility. EQTEC has to invest £2.3m to gain a 32% stake in the company owning the project. The completion data has been extended.

Fevertree Drinks (LON: FEVR) has lost more than two-thirds of its value this year and it declined 33.1% to 866.5p last week. The mixer drinks supplier says first half sales were 14% higher at £160.9m and full year revenues are still expected to be £355m-£365m. However, margins are under pressure from higher freight and glass costs, which have doubled. This means EBITDA guidance has been slashed from £63m-£66m to £37.5m-£45m.


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Ncondezi Energy Ltd (LON: NCCL) has launched a feasibility study for its solar photovoltaic and battery energy storage system project in Tete, Mozambique. Initially, the share price more than doubled in early trading on the day of the announcement and it ended the week 50% higher at 1.275p. Pre-money NPV is estimated at between $60m and $65m.

Shares in Nanosynth Group (LON: NNN) continue to rise and were 41.5% higher on the week at 0.695p. Directors were buying shares at 0.6p a share each early in the week.

Shares in 88 Energy Ltd (LON: 88E) rose ahead of the quarterly figures and then lost some of the gains after they were published, ending 38.1% higher at 0.725p. The Australia-based oil and gas company had A$10.5m in the bank at the end of June 2022, although there was a cash outflow from operating activities.  

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