If you ask this reporter, whisky and the festive season go hand in hand, though not everyone appears in high spirits.
Speaking of which, The Artisanal Spirits Company tumbled nearly 30% this week as the Scotch malt whisky supplier warned that sluggish sales in China and of a 50th-anniversary cask would mean revenues undershooting targets.
Revenue growth in 2023 will still be in the high single digits at around £23 million, the AIM-listed company said, but earlier guidance was upwards of £25 million.
The Artisanal Spirits Company also now only expects to break even for the year on an adjusted earnings basis.
Striking a jolly tone nonetheless, chief executive Andrew Dane said while sales in China sales and of the new cask were disappointing, “the remainder of the business has performed well and grown in line with expectations”.
tinyBuild cops a fright
Readers may or may not have heard of the stealth horror video game series ‘Hello Neighbour’, where the player is tasked with sneaking into their neighbour’s house to figure out what he's hiding in the basement.
Spooky stuff, and unfortunately developer tinyBuild Inc had its own jump scare this week, with shares tumbling upwards of 60%.
In an update, the company reported that its current trading is below expectations for the fourth quarter, primarily due to weak performance in October.
As a result, full-year revenues are now projected to be between $40-50 million, which is lower than initially anticipated.
Quiz on questionable ground
Quiz PLC (AIM:QUIZ) shares fell by a fifth this week in response to the fashion brand’s interim results.
Group revenues decreased 14% year on year to £42.3 million, with losses before tax ramping up and net cash reducing significantly.
“The widely reported cost of living and inflationary pressures have impacted customer demand during the financial year. As a result, the near-term outlook is difficult to predict for many UK retailers including Quiz,” said the group.
In conjunction with the interim report, Quiz announced a “thorough review” of the strategic options available “to maximise shareholder value”, to be led by independent chairman Peter Cowgill.
AIM All-Share closes higher
Despite a bearish vibe in the heavy industries from the likes of Future Metals, Eurasia Mining, Hummingbird Resources, Kodal Minerals and Greatland Gold to name a few, the AIM All-Share Index penned a positive week by adding a little over one percentage point to close at 723.
The index outperformed the FTSE 100 lead index, which added just 0.3%.
AIM was bolstered by mid-cap Smart Metering Systems PLC (AIM:SMS), one of the index’s largest companies, which soared 41% after agreeing on a bid approach from US private equity outfit Kohlberg Kravis Roberts (KKR).
Stocks in general were lifted on Friday on the back of some promising macroeconomic events.
Expectations for price inflation in the year ahead have fallen to the lowest level in two years, according to a Bank of England survey, supporting the view that the BoE will not need to raise interest rates at its meeting next Thursday.
The disinflation thesis was bolstered by Friday’s ‘Report on Jobs’ survey from KPMG and the Recruitment and Employment Confederation.
It showed a sharper fall in permanent staff appointments combined with a fresh decline in temp billings, to signal a broad-based reduction in hiring activity.
More market risers
Foreign exchange group Cornerstone FS PLC (AIM:CSFS) has been something of an AIM darling of late, and this week was no different. Shares rallied a walloping 45% after “another smashing update” (in Shore Capital Markets’ words) in which the group revised full-year earnings higher for the second time in four months.
Quadrise PLC (AIM:QED) shot up 43% after unveiling positive final results from the sustainable biofuel testing programme that it finished last month. Though in its infancy, sustainable fuel is expected to be a major player in the global shift towards net-zero emissions, with Quadrise’s bioMSAR Zero emerging as a commercial competitor.
Polarean Imaging PLC (AIM:POLX, OTC:PLLWF) surged over 50% after hailing the receipt of its first de novo order for its XENOVIEW polariser from a top-tier academic medical centre in the US northeast.
The company, which added that its current cash runway is expected to last into the third quarter of 2024, said it is also optimistic about the “positive” meetings and active negotiations it is having with other top-tier academic medical centres.
Banknote printer Spectra Systems Corp put in a good showing, adding 22% after agreeing to buy Cartor Holdings, a move described as a strategic acquisition to bolster Spectra's position in the polymer banknote substrate market.
The enlarged company is expected to have new sales opportunities across product ranges – including postage stamps, tax and revenue stamps, brand protection, security labelling, and other security documentation.
Other top movers this week included diagnostics group Genedrive plc, which added 65%, Sancus Lending Group Ltd at 48%, Wentworth Resources Ltd at 31% and The Brighton Pier Group plc at 26%.