What next for Unbound Group PLC (AIM:UBG), the online fashion retailer for the over-55s?
Some may recall its AIM market listing last February when it was still trading under the name Electra Private Equity.
After Electra spun out its TGI Fridays restaurant chain a few months prior, it relisted on the junior market under new name Unbound, with a view to focusing on its Hotter Shoes range.
Electra’s break-up was a whole story in of itself, but Unbound’s performance on AIM has certainly had its ups and downs in recent times too.
Shares doubled in March after the group said it was considering a bid approach from WoolOvers Group valuing the business at £6.8mln at a 162% premium.
Investors weren’t so bullish this week though, with shares tanking near 60% following a rough trading update.
Lower-than-expected revenues would have been bearish enough on their own, but the real kicker was news that Marwyn Investment Management was backing out of its £10mln equity investment proposed in April.
Marwyn cited concerns over current trading numbers, which Unbound said had "remained challenging" since the start of the year, indeed with "conditions worsening" compared to its January update.
In a separate statement, Marwyn said it had received "revised historical and forecast financial information from Unbound's management (and) as a result of that revised information, it terminated discussions with Unbound in relation to a potential investment".
Unbound said it is also "well advanced" in conducting a wider review of the group but is primarily focused on managing cash flows and "will continue with its constructive dialogue with its banking partners".
Its shares were changing hands at 2.7p at the time of writing.
Not all bad news in retail
Turning to the wider market, the AIM All-Share Index closed the week around 1.5% lower, primarily due to Wednesday’s 25bps interest rate hike from the Bank of England (not that it was wholly unexpected!).
On the up was Cellular Goods PLC (LSE:CBX), which rocketed to a six-month high after winning a product placement deal with multinational beauty retailer Sephora.
The shares more than tripled to 2p in early trading on the news that its Look Better skincare range will be added to the retailer's UK website later this month.
Customers on Sephora.co.uk will be able to buy Cellular Goods' complete facial skincare line, including their top-selling Rejuvenating Face Serum, Nourishing Cannabinoid Face Oil and Calming Cannabinoid After Shaving Moisturiser.
This follows the skincare company's products being added to the Debenhams website last year, the signing of international supermodel Helena Christensen to be the face of its rejuvenating skincare campaign and adding US shipping for its products.
Though Cellular’s share price fell back a bit to 1.42p, that’s still a 136% add for the week.
Eden Research had a strong end to the week, with shares in the natural pesticides group adding 11% after receiving state approval in major US horticultural hotspots California and Florida.
These latest approvals bring Eden’s scope up to nine US states, with chief executive Sean Smith noting that biopesticides such as Eden’s Mevalone and Cedroz products are increasingly becoming the standard for farmers looking to adopt more environmentally friendly practices.
Gaming sector levels up
There was some noteworthy action in AIM’s small but exciting video gaming segment this week too.
Keywords Studios PLC (AIM:KWS, OTC:KYYWF), the video game services specialist, jumped 6% as broker Shore Capital upgraded to “buy” following its acquisition of Seattle-based studio Hardsuit Labs, which previously worked on the AAA gaming series Call of Duty.
Specialising in post-production and localisation services, Keywords has been highly acquisitive in recent months, particularly in the US where it is working on making market inroads.
Keywords closed the week a more modest 2.5% higher, but analysts remain bullish following the Hardsuit Labs acquisition, with Shore Cap stating: “The deal appears to be in a classic sweet spot, in terms of size and potential, where Keywords has typically been able to add value, and further, it is consistent with management’s previously set-out growth strategy.”
Speaking of growth, Guild Esports PLC (LSE:GILD, OTCQB:GULDF), the David Beckham-backed team organisation and lifestyle brand, tripled its revenues in the first six months with a forecast of further growth over the remainder of its fiscal year, per Wednesday’s trading statement.
Sales jumped 241% to £3.7mln in the half year to March 2023, with losses halved to £2.3mln and gross profits jumping 256% to £2.5mln.
No wonder shares shot up 11% on Friday (apparently investors were a bit slow to the news).
Checking in on the industrial sectors, coal miner Bens Creek Group PLC (AIM:BEN, OTC:BENCF) ended the week 19% higher in a vindication of new shareholder, Singapore-based commodity trader Avani, coming to the table with a 29.9% stake acquisition.
Adam Wilson, the miner’s chief executive, said it was a boost for Bens Creek as Avani specialises in selling coking coal to Chinese and Indian steel mills sourced globally.
Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF), the Central Asia-focused gold, copper and silver producer, also added double digits after receiving a punchy 214p per share target from research house Hardman based on three developments currently underway in Azerbaijan.
Shares were changing hands 16% higher at 117.10p by the time Friday rolled around.
Other notable risers in the industrial sectors included Longboat Energy (up 54%), Clean Power Hydrogen (up 34%) and Panthera Resources (up 26%).