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AIM WINNERS & LOSERS: Fiske expects to post 40% annual profit growth

ALN

The following stocks are the leading risers and fallers on AIM on Wednesday.

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AIM - WINNERS

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First Property Group PLC, up 5.3% at 16.05 pence, 12-month range 11.50p-16.20p. The property fund manager and investor in the UK and Central Europe said it expects to post pretax profit of £3.0 million for the year that ended March 31, which was ‘a significant out performance of the market’s expectations’. The firm anticipates the recovery in profit to be sustained during its current financial year, with two recent property sales in the UK and Romania totalling £4.1 million. The pretax profit from these sales should amount to £1.2 million, First Property says. Total funds under management at August 31 amount to £220 million, unchanged from funds at March 31. Third party funds under management at August 31 total £172 million, up 4.9% from £164 million at March 31. The group is due to release its interim results on November 27.

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AIM - LOSERS

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Genedrive PLC, down 53% at 0.25p, 12-month range 0.19p-3.00p. The Manchester-based point-of-care pharmacogenetic testing company completes its placing of 1.60 billion shares at 0.20 pence, raising around £3.2 million in total. Proceeds will be used to support the group’s near-term commercialisation and market expansion activities throughout the UK, Europe and the Middle East.

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Fiske PLC, down 23% at 60.00p, 12-month range 45.00p-85.00p. The London-based stockbroker and investor expects to post revenue of around £7.9 million for the year that ended June 30, which is up roughly 6% from the year before. Pretax profit is expected 43% higher on-year at £1.4 million, with earnings per share of 11p. Fiske had expected to incur additional costs during its second-half related to ongoing compliance advisory work, which it says impacted its operating profit performance. Trading in the current financial year to date is in line with management expectations, though the company ‘remains mindful of potentially more volatile market conditions in the coming months due to the generally uncertain geopolitical environment’. The board is ‘confident’ in maintaining revenue growth nonetheless, even while budgeting for further operational costs related to updating its systems and controls. Fiske notes there may be additional compliance costs going forwards, ‘however management believe any such further costs can be met by the company given the strength of its balance sheet and the level of underlying operating profits’. The company also announces it has agreed a voluntary requirement with the UK Financial Conduct Authority, which introduces restrictions related to the onboarding of new clients and the transfer of the company’s assets while the requirement is in place. The firm expects the requirement to have a ‘minimal effect’ on its existing activities, and says it will co-operate with the FCA to ensure the restrictions are lifted ‘as soon as possible’, with ‘an agreed programme of actions already underway to strengthen the company’s systems and controls which will be completed over the coming months’. Fiske is due to provide an update on its full-year results before the end of October.

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