Profits warnings from Fevertree Drinks (AIM:FEVR) and a several others meant the fallers held sway over the risers on the junior market in the past week, leading to the AIM index dropping 1.69% to 869.87, compared to a 1.31% decline for the FTSE 100 to 7,102.5.
Fevertree spluttered 33% lower to 878.5p following a profit warning on the back of soaring costs that have been eating into its margins.
The mixer maker said the past eight weeks have seen “rapid shift in operational and cost backdrop” but that it was “working on a large number of initiatives” to mitigate the headwinds and “ensure we can satisfy the strong demand we are seeing in our growth regions”.
There was also a warning from CMO, the online-only building materials retailer, which cut its sales and profits outlook as costs rise and customers buy more lower-margin products. Its shares tumbled 39% to 35.2p.
Similarly, packaging and automation solutions specialist MPAC nosedived 16% to 240.46p after its warning focused on increasing macro-economic uncertainty and unprecedented volatility, which it said was causing “extended lead times”.
Inflationary pressures also squeezed margins, with supply chain and operational challenges expected to continue for the remainder of the year.
‘Country fashion’ chain Joules, known for its posh welly boots, fell 12% to 21.95p as it confirmed reports that it has called in debt advisors to help with its efforts to improve profitability, cash generation and liquidity.
On the other side of the small cap coin, 88 Energy shareholders enjoyed a good week as it was helped by a neighbour and also confirmed its cash position and recent production growth.
The oil explorer saw its share price surge 52% to 0.76p over the week after telling investors it had A$10.5mln of cash at the end of the quarter to 30 June, as management and shareholders eye nearby third-party well drilling.
The AIM-quoted explorer rose after its Alaskan neighbour, Pantheon Resources, began drilling the Alkaid-2 well, which aims to confirm and production test an existing discovery with a horizontal well.
For 88 Energy, the neighbouring well is of interest because it believes – based on work by the company and its consultants – that the geologies discovered by Pantheon extend into a section of 88’s Icewine project area.
In terms of its own work, it told investors it is anticipating the completion of a new independent estimate of resources for Icewine “early” in its third quarter, with planning underway for new exploration at Icewine and a 2023 spud.
Meanwhile, elsewhere in the energy world, Ncondezi Energy surged 44% to 140p after saying it launched a feasibility study for a large solar power plant plus a battery energy storage system next door to its planned coal-power plant in Mozambique.
Focused on South Africa, Kibo Energy jumped 35% to 0.11p as it doubled the length of a power purchase agreement for its plastic-to-syngas power plant in Gauteng province to 20 years.
Another of the biggest AIM risers was Nanosynth Group, which last year decided to concentrate its focus onto the synthesis and application of nanoparticles. It rose 19% to 0.66p during the week after three directors purchased 1.33mln shares in the company after an upbeat trading update the week before.
Cornerstone FS surged 90% on Monday, and was up 14% over the week to 10.19p on the news that it is on track for “substantial full-year growth.”
The provider of cloud-based payment and currency services said the trading momentum seen earlier in the year has continued, helped by a higher proportion of direct clients
One retailer that escaped the warning trend was Sosandar (AIM:SOS), which was in fashion after the women's clothing brand reported on strong year and gave a positive outlook.
News that revenues rose 142% to £29.5mln, with every month in the second half of the year profitable, sent the shares sashaying 10% higher to 20.5p.