|
The following stocks are the leading risers and fallers among London Main Market small-caps on Tuesday. ---------- SMALL-CAP - WINNERS ---------- Zotefoams PLC, up 15% at 321.04 pence, 12-month range 222.00p-525.60p. The provider of foams, insulation, seals and interior trims for the automotive sector reports a record-high pretax profit of £11.4 million for the six months to June 30, rising 37% from £8.3 million a year earlier. Revenue grows 8.9% to £77.4 million from £71.1 million. Zotefoams declares an interim dividend of 2.50 pence per share, up 5.0% on-year from 2.38p. ‘We enter the second half with positive momentum,’ says Chief Executive Officer Ronan Cox. ‘Structural trends across our three key verticals remain supportive, albeit we remain mindful of near-term volatility created by the current macroeconomic backdrop. We anticipate some moderation in Consumer & Lifestyle demand as expected seasonal patterns emerge and the exceptional growth rates experienced in H1 normalise. Given the strong H1 2025 performance and momentum carried into the second half, the board now expects to deliver full year underlying profit before taxation ahead of current market expectations.’ Zotefoams cites a company-compiled consensus for £149.7 million in net revenue for 2025 and £19.4 million in adjusted pretax profit. This would be up 1.3% and 27% respectively from £147.8 million and £15.3 million in 2024. The company also announces it has entered a joint venture arrangement with Seoheung Co, a footwear supply chain and manufacturer in Korea, Vietnam, Indonesia and China. The deal will support the construction and commissioning of a new manufacturing facility in Vietnam. Seoheung will invest $10 million for an initial 17.5% stake in a newly established holding company for the Vietnamese facility, with Zotefoams retaining the other 82.5%. Under the terms of the deal, Seoheung can potentially increase its stake to 35%, with an additional $14 million investment. Commissioning of the facility is expected in the fourth quarter of 2026, with the project expected to cost around $32 million in total. Zotefoams will fund the remaining $22 million cost from its existing debt facilities. ---------- Capita PLC, up 5.8% at 295.71p, 12-month range 168.00p-358.50p. The London-based outsourcing company for business services swings to pretax loss of £9.5 million in the six months that ended June 30, from a £60.0 million the profit the year before. This is driven largely by revenue falling 6.5% to £1.16 billion from £1.24 billion, and the firm recording no gain on disposal of business against a £38.1 million gain the year before. Capita receives a tax credit of £2.1 million, compared to a £7.1 million charge the year prior. ‘The total value of contracts won by the Group increased by 17% compared with the first half of last year, with increased interest from customers in our AI-driven solutions that bodes well for future growth and we have more than £4.4 billion of higher technology opportunities in the group pipeline’, says Chief Executive Officer Adolfo Hernandez. ‘Meanwhile, our focus on cost discipline continues to help Capita adapt to some of the challenges we have seen in the Contact Centre business and we are on track to deliver £250 million of cost savings by December 2025 and to deliver positive free cash flow from the end of 2025. The operational performance and momentum we have seen in the first half of the year gives confidence in our delivery of the second half of the year and our full year outlook remains unchanged.’ The company expects to report ‘broadly flat’ full-year adjusted revenue, and upgrades guidance for its Public Service segment to mid single digit revenue growth. Its Contact Centre unit is now expected to deliver a mid teen revenue reduction, and Capita expects a ‘modest improvement’ in group margin. ---------- SMALL-CAP - LOSERS ---------- Synthomer PLC, down 21% at 62.47p, 12-month range 63.57p-266.00p. The London-based developer of highly specialised polymers says its pretax loss widens to £36.9 million in the six months that ended June 30, from £33.2 million the year before. Revenue sinks 9.8% to £925.2 million from £1.03 billion, driven by a 25% decline in revenue for its Coatings & Construction Solutions segment to £34.5 million from £53.0 million. Adhesive Solutions posted 62% revenue growth, Health & Protection and Performance Materials reported a 23% gain, while the Corporate division narrowed its loss to £8.7 million from £13.7 million. Earnings before interest, tax, depreciation and amortisation rise 4.1% to £77.8 million from £74.7 million. ‘We have delivered gross margin improvement and Ebitda growth in the period despite the challenging environment in our markets,’ says Chief Executive Officer Michael Willome. ‘Our ’in region for region’ manufacturing strategy positions us well to weather a more protectionist trade environment while continuing to serve our customers. Given demand in our end markets has become more uncertain, we have stepped up our focus on what we can control - launching an additional cost reduction programme, taking further steps in the transformation of the portfolio and allocating resources even more rigorously to prioritise derisking the balance sheet.’ Looking ahead, Synthomer expects to gain around £9 million in its second half from its newly-implemented £20 million to £25 million cost reduction programme, which it anticipates will ‘mitigate more subdued end-market demand for the remainder of year from trade tensions’. ---------- Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
