Small & Mid Cap Roundup: QinetiQ, Centamin, Bion, Mosman Oil and Gas

FTSE 250 was trading down 0.13% to 20,935 as the AIM all share index traded flat at 0.05% to 1,005 as the UK’s small and mid cap markets traded sideways.

QinetiQ shares rose 3% to 347p as the defence technology firm reported its Q4 2021 results and said that it expects annual results to beat previous guidance as well as current market consensus.

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QinetiQ expects a 5% rise in revenues from £1.3bn in 2021 and predicts underlying operating profit will reach at least £135m.

The company experienced a strong order intake which amounted to £1.2bn in 2022.

QintetiQ enjoyed significant growth due to help from its EMEA Services segment where the company provides services such as training and research for maritime and air & space clients.

JTC shares lifted 4.3% to 744p as the rally continued from yesterday’s positive update.

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Petershill Partners announced its full-year results today which helped shares gain 2% to 217p. The company reported an IFRS profit after tax of $248m and raised $720m in IPO which was net of share issue costs.

Petershill’s board proposed a final dividend of $0.02 which was in line with the guidance. The company also intended to launch a share buyback programme of up to $50m.

Since the IPO, Petershill has completed 5 acquisitions worth $458m in total and expects that investments will be 9% accretive to the consensus earnings forecast by 2023.

Centamin shares sunk 7% to 90p despite the company reporting quarterly results in line with guidance and stating the outlook for 2022 remains unchanged.

The company predicted lower production in Q1 2022 than in any other quarters due to underground transitions, which amounted to 93,109 oz of gold.

Centamin generated a revenue of $174.6m from the sale of 92,559 oz of Au at an average of $1,883/oz. The company recorded cash costs of $1,006/oz produced.

Centamin recorded CAPEX of $71.4m due to the quarterly investment which peaked in 2022, with major investments in the paste fill facility, solar power plant, and underground transition.

Oxford Biomedica shares fell 6.6% to 596p after the company warned it will swing to a loss in 2022 and revenue will fall as Covid-19 vaccine manufacturing for AstraZeneca will slow.

In Oxford’s preliminary results, the group noted a 63% revenue increase to £142.8m in 2021, up from £87.7m. The company recorded a pretax profit of £19.9m.

Oxford BioMedica forecasted an operating loss before interest, tax, depreciation, and amortisation of £35.9m in 2022, down from £35.9m in 2021.

Quilter shares fell 3% to 140p as the company reported said as a result of market uncertainty related to Russia’s invasion of Ukraine, the market value of its investments fell in the first quarter.

Quilter’s assets under management and administration decreased by 4% to £107.2bn at the end of March 31 from £111.8bn in December 2021.

Wood Group shares dropped nearly 1% to 190p following the company reporting a 14% fall in revenues on an LFL basis summing to $6.4bn, as the growth gained from Consulting and Operations was offset by declines in projects.

Wood Group’s pretax loss decreased from $148.6m to $80.6m in 2021. The company noted $160m in exceptional items which included a $99m write-down of its Aegis Polan contract and $78m of restructuring costs.

Bion lost more than three-quarters of its share value on recommencement of trade on the AIM following a period of suspension. Bion’s shares fell 75.8% to 0.4p.

Kefi Gold and Copper shares plummeted 30% to 0.84p after the company announced oversubscribed fundraising to raise £8m. The amount will be raised through a firm placing of 550,000,000 new ordinary shares of 0.1p each in the capital of the company for 0.8p per Ordinary Share to raise £4.4m and a conditional placing of 450,000,000 new Ordinary Shares at the placing price to raise £3.6m arranged by Tavira Securities.

Cornerstone gained 20% to 21p after the company reported its highest-ever unaudited quarterly revenue on Wednesday with total unaudited revenue for Q1 2022 reaching £946k. Cornerstone’s board remains confident in the group’s outlook for 2022.

Naked Wines shares increased 16.5% to 384p following the company’s announcement of its latest trading update where the company said its performance was in line with expectations driven by repeat customer sales, strong retention and demand from existing members.

Naked Wines’ group sales increased 5% YoY on a constant currency basis and 3% reported. The group saw sales retention of 80% whilst the guidance predicted the mid-70s. Naked Wines’ repeat customer sales increased by 13% YoY on a constant currency basis.

Mosman Oil and Gas reported a 65% increase in production in its Q3 update which led its shares to soar 12% to 0.14p.

Companies such as Volex and Coral also released trading updates on Wednesday where the companies said that results are ahead of expectations sending its shares to gain 13.7% to 281p and 12.5% to 15.7p respectively.

Broker Price Target Changes

Quite a few companies faced alterations in its broker price target on Wednesday including companies such as Lancashire Holdings and Wizz Air.

Barclays cut Lancashire Holdings’ price target to 731p from 781p, however, the company’s shares still gained 0.86% to 409.9p.

Hiscox and Beazley shares lifted 0.16% to 924p and 0.84% to 396p after Barclays raised both companies’ price targets to 1,067p and 541p respectively.

Wizz Air shares fell 0.2% to 2,943p after UBS and Berenberg both cut its price target to 3,660p and 3,500p from 4,050p and 4,400p respectively.

Marshalls’ shares dropped 0.35% to 647p after Berenberg cut its price target to 770p from 790p.

Bodycote’s shares lifted 0.48% lifting 633p despite Jefferies cutting Bodycote’s price target from 1,115p to 920p.

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