Keir Starmer’s landslide victory at the polls was greeted by a collective ‘meh’ by investors in the small-cap market.
The AIM All-Share barely flickered first thing Friday and over the week and was up around half a percentage point to 773.89. Contrast this with the FTSE 100, which managed a near triple-digit points return over the same period to stand 1.2% higher.
Of course, the big caps have something tangible to cheer with the expected investment in new homes, green energy and infrastructure.
For the market's smaller fry, the picture is a little more nuanced. A decline in base rates will inevitably attract some risk capital off the sidelines.
However, experts believe structural reform is required (particularly across AIM) to allow growth companies quicker and easier access to investment than is currently the case.
Oof!
A slow week for news still yielded some big fallers. The microcap specialist engineer, PipeHawk PLC (AIM:PIP) tumbled 78% after it said it was taking steps to place its subsidiary QM Systems into administration potentially "or a similar corporate insolvency process".
In a brief stock market statement, it said the precipitant was the failure of the QM to secure two 'material orders' it was expected to land.
It was a far from golden week forChaarat Gold Holdings Ltd (AIM:CGH), which tanked 63% amid a debt crunch - specifically, $38.9 million of convertible loan notes falling due at the end of the month and a further $1.2 million by September 30.
Chaarat said it had made limited headway with Xiwang International Company over a previously announced funding package.
In the meantime, it has been in negotiations with representatives of the convertible loan note holders over recent weeks to hash out a potential restructuring of the outstanding debt.
Active Energy shares fell 51% after the board of the green fuels group effectively read it the last rites by voting to place the business in members' voluntary liquidation.
Tough market
Physiomics PLC (AIM:PYC) crashed 46% as it underlined how tough it is to raise money for small caps by offering new shares at a 50% discount.
The drug modeller raised just £381,000 at 0.6p while a separate retail offer through Winterflood’s WRAP platform might bring in up to a further £25,000.
Lighter-than-air gases had the effect of sending skywards the share price of BlueJay Mining PLC (AIM:JAY, OTCQB:BLLYF), which jumped 75%.
Specifically, it has discovered helium and hydrogen within Finland’s Outokumpu Belt. Along with this, there were other naturally-forming industrial gasses such as argon and xenon.
The interest around BlueJay and others in this arena such as HeLIX Exploration PLC (AIM:HEX) (up 3%) and Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) (down 15%) is founded on the scarcity of helium which is used in medical scanning equipment and the production of semiconductors.
Green demand
Demand for Hydrogen, meanwhile, is likely to increase along with the expansion of green fuel and energy requirements.
Image Scan Holdings PLC (AIM:IGE) jumped 61% after it revealed it had secured a contract with a "prominent UK defence contractor" for the supply of its ThreatScan portable X-ray system. The deal is worth around £3 million spread over three years.
UK Oil & Gas PLC (AIM:UKOG) enjoyed a rare ‘up week’ as it jogged 35% higher amid reports it is spearheading a project to create large hydrogen storage units under Britain's former naval base in Portland Harbour, Dorset.
According to the Sunday Telegraph, the plan includes excavating 19 caverns, each the size of St Paul’s Cathedral, to store hydrogen for emergency use during energy shortages from wind and solar sources.
The news emerged two weeks after UKOG suffered a huge setback after the Supreme Court effectively put a permanent block on Horse Hill, the company's onshore oil well in the Surrey commuter belt.
Indeed, the ruling has ramifications for the future development of new onshore operations.
For the watch list
One for the watch list is an Aquis-quoted tiddler that seems to be flying under the radar. The company’s name is Coinsilium Group Limited (AQSE:COIN, OTCQB:CINGF), run by seasoned entrepreneurs Malcolm Palle and Eddy Travia.
It invests in and advises Web3 companies; in other words, those involved in blockchain technology, decentralisation, and token-based activities. It has had a flurry of news out this week that has gone largely unnoticed by the investing public.