London’s small and mid cap markets finished the week deep in the red as global growth fears put sellers in full control.
The market dropped on inflation fears, alongside worries that the higher interest rates of 1% introduced by the Bank of England earlier this week would stifle growth and tip the economy into a recession.
“Concern about inflation is the culprit, as ever, and the wild swings we’ve seen this week are a reminder that sentiment is about as fragile as a porcelain doll,” said AJ Bell investment director Russ Mould.
“The other fear is that the cure for inflation, higher rates, could be as bad as the disease if they choke off growth and even lead to recession.”
4imprint Group shares gained 18.6% to 28,950p as the company raised its outlook for 2022 beyond market expectations to revenues of $1 billion.
“New customer acquisition has remained encouraging, and the retention statistics reliably reflect the growing customer file,” the group said in a statement.
Beazley shares rose 5.2% to 427.8p after the insurance firm announced a 27% increase in gross premiums to $1.2 billion and a 17% rise in premium rates on renewal business in its Q1 2022 update.
“The year has started well with gross premiums written increasing by 27% and growth slightly ahead of our expectations across all divisions,” said Beazley CEO Adrian Cox.
SDI Group shares increased 12.5% to 170p following projections that the company would beat market consensus in its annual profits, with an anticipated revenue rise of 40% to £49 million from $35.1 million the previous year.
The firm reported an estimated pre-tax profit increase of 42% to £10.5 million compared to £7.4 million in 2021 and commented that it expected 2023 to be its best year on record.
“We have executed again on all facets of our buy and build strategy, delivering record performance in FY2022 and setting up what looks like another record year in FY2023,” said SDI chair Ken Ford.
Kinovo shares tumbled 46.3% to 18.2p following the company’s loss incurred from the sale of its DCB business.
The firm announced a pre-tax loss of £5 million as a result of the disposal, with the group forced to provide unanticipated working capital support of £3.7 million, and confirmed it expects the amount to increase in the short term.
“Whilst we have incurred a loss on the disposal of DCB, it streamlines our operations and allows us to focus on our core activities of compliance and regulatory work,” said Kinovo CEO David Bullen.
