AIM weekly movers: Ethernity Networks share price recovery

Telecoms technology supplier Ethernity Networks (LON: ENET) was the best performer of the week ending up 35.7% to 14.25p after it was awarded a new contract and the share price is above the level before the recent fall due to the loss of another contract. An existing Chinese customer has awarded a follow-on contract worth $4.6m. These revenues will be recognised in 2023 and 2024. Interim revenues were 26% lower at $705,000, although the loss was reduced.  

Shares in broker and administrator Jarvis Securities (LON: JIM) recovered by 28.7% to 121p, following the previous week’s announcement that it has appointed Ocreus to review systems and controls at its main subsidiary. This will take between three and six months. Jarvis has voluntarily agreed not to take on new clients from certain existing Model B corporate clients until the systems have been reviewed. The share price is still one-third lower than before the announcement.

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Egdon Resources (LON: EDR) had the most positive reaction among the UK-focused oil and gas companies to the ending of the government ban on fracking. Management says that it will work with the government to develop the regulatory environment. The shares rose 27.9% to 7.8p.

Digital payments company BOKU (LON: BOKU) has signed up Amazon for local payment methods in a multi-year deal. It will be launched with Prime Video in Asia and Africa and then expand into other parts of the Amazon business. Amazon has been issued warrants equivalent to up to 3.75% of Boku, exercisable at 81.2p each, which are related to revenue targets over seven years. This is likely to lead to an upgrade for 2023 and further out, but analysts are waiting for interim figures published on 27 September. The share price is 24.7% ahead at 96p, but it is still less than 50% of its high.

Data management technology developer WANdisco (LON: WAND) has gained its largest ever contract and the share price jumped 17.1% to 470p. The $25m deal with a global telecom company is the fourth with the same company – the four deals total $39.3m. Full year revenues of $12m are forecast, more than doubling to $25m in 2023. WANdisco will remain loss making.

Director buying after positive interim figures from City Pub Group (LON: CPC) pushed up the share price by 15.9% to 62p. Finance director Holly Elliott bought 28,652 shares at 59p each, non-exec Neil Griffiths acquired 54,632 shares at 57.9p each and non-exec Emma Fox 16,035 shares at 62.36p each. Interim revenues rebounded to £26.1m and the pubs operator moved back into profit. The company intends to spend £3m buying back shares over the next 12 months. Management anticipates that trading will remain resilient.

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Fallers

Biome Technologies (LON: BIOM) is the worst performer of the past week with interim revenues slightly lower than last year, but the bioplastics business is being hit by delays to customer launches. The share price has slumped 60.3% to 67.5p. Bioplastics revenues forecasts have been slashed. The RF technologies business is trading well, and its forecasts increased. The 2022 overall forecast loss rises by one-fifth to £1.1m with the figure helped by foreign exchange gains. The 2023 loss forecast has increased from £241,000 to £933,000.  

Enteq Technologies (LON: NTQ) shares dived after an AGM statement admitting that 2022-23 revenues and profit will be worse than expected. The share price dived by 41.4% to 8.65p. finnCap had been estimating earnings of 1.7p a share, following a loss last year. No new forecast has been published. There is greater competition in the downhole oil and gas equipment market.

Shares in cyber security firm Osirium Technologies (LON: OSI) fell sharply after interim figures showing an increased loss. The share price has slumped 30.4% to 4p – although there is a larger fall since Wednesday when the share price was 6p. Revenues continue to grow, and management is trying to rationalise its cost base.

Restaurants operator Tasty (LON: TAST) reported nearly doubled interim revenues, but the loss was similar to last year due to a £1.6m impairment charge. Staff shortages and cost pressures are making trading difficult. There is £8m in the bank. The shares fell 26.8% to 3.75p, which capitalises Tasty at £5.5m.

Technology analytics services provider Actual Experience (LON: ACT) shares fell by 25.5% to 2.05p following a £3m placing and subscription at 2p a share. A broker option raised a further £121,000, taking the total to £3.12m. Dave Page has stepped down as chief executive and there are plans to appoint a replacement. Turner Pope is the new joint broker. Costs are being reduced and the cash will help to fund the growth in revenues from new products.

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