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SMALL-CAP WINNERS & LOSERS: Secure Trust surges on business sale

ALN

The following stocks are the leading risers and fallers among London Main Market small-caps on Monday.

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SMALL-CAP - WINNERS

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Secure Trust Bank PLC, up 15% at 1,263.00 pence, 12-month range 339.55p-1,270.00p. On Wednesday, it agreed to sell its Consumer Vehicle Finance business to private equity funds for just under £460 million, some of which the lender said it will return to shareholders. Secure Trust is a Solihull, England-based business and consumer lender. The sale of its vehicle finance arm comes amid requirements to provide customer redress for undisclosed commission payments.

Secure Trust back in October raised its provision for redress to £21 million, saying a consultation paper published by the UK Financial Conduct Authority meant the impact was likely to be ‘towards the extreme end’ of previously expected outcomes. In July, Secure Trust had said it would stop new lending in its Vehicle Finance business and run-off the remaining portfolio of loans. On Wednesday, it said it agreed to sell that portfolio and associated assets to funds managed by LCM Partners, a London-based alternative investment fund manager. The sale price of £458.6 million represents a slight premium to the portfolio’s book value of £442.5 million on September 30.

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Ferrexpo PLC, up 3.7% at 76.33p, 12-month range 41.30p-115.00p. Shares in the iron ore pellet producer have been lifted by Ukraine peace hope. US President Donald Trump on Sunday said a deal was closer than ever to end Russia’s invasion of Ukraine but reported no apparent breakthrough on the flashpoint issue of territory after new talks with the warring countries’ leaders.

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SMALL-CAP - LOSERS

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Videndum PLC, down 4.0% at 13.39p, 12-month range 13.02p-154.80p. Shares had crept up 3.3% during Wednesday’s abbreviated trading day, before the Christmas holiday, but are back on the decline on Monday. Last week Tuesday, Videndum shares slumped 57% as the provider of broadcasting hardware and software said a planned refinancing will, if successful, see current shareholdings ‘very significantly diluted’.

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