SMALL-CAP WINNERS & LOSERS: Secure Trust Bank issues profit warning

(Alliance News) - The following stocks are the leading risers and fallers among London Main ...

Alliance News 1 November, 2024 | 10:35AM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - The following stocks are the leading risers and fallers among London Main Market small-caps on Friday.

----------

SMALL-CAP - WINNERS

----------

DG Innovate PLC, up 21% at 0.073 pence, 12-month range 0.027p-0.26p. The sustainable mobility and energy storage solutions announces the delivery of a prototype motor to project partner Meritor Electric Powertrain Systems (UK) Ltd. The 450 kilowatt prototype is "cutting-edge", DG says. "The new DGI manufactured motor weighs only 180kg, with industry-leading torque density and delivers continuous power with an impressive 97.3% measured efficiency when paired with DGI's inverter, and a 98.5% efficiency from the motor alone. These figures are a testament to a remarkable leap in performance and demonstrates industry leading efficiency."

----------

SMALL-CAP - LOSERS

----------

Secure Trust Bank PLC, down 13% at 490.82p, 12-month range 440.00p-950.00p. Shares hit this one-year low on Friday as it warns on profit amid motor finance sector difficulties. The retail bank provides motor finance through the V12 Vehicle Finance and Moneyway brands. Secure Trust now expects continuing pretax profit to "fall materially below market expectations by between GBP10 million and GBP15 million" in 2024. Chief Executive Officer David McCreadie said: "We are disappointed that it will take longer than expected to recover value from the excess level of defaulted Vehicle Finance balances, and the recent Court of Appeal decisions have added additional uncertainty on the benefits to be realised in 2024. Notwithstanding the near-term impacts of the excess defaults in Vehicle Finance, we have seen arrears in Vehicle Finance fall to the lowest level since 2021, have continued to grow total net lending, continued to optimise our cost base, made good progress on early repayments of TFSME funding, and see continued growth opportunities ahead of us." TFSME is a Bank of England term funding scheme with additional incentives for small and medium enterprises.

----------

Foxtons PLC, down 1.4% at 58.00p, 12-month range 37.00p-71.40p. Shares in the estate agent extend their decline after a 3.0% fall on Thursday. A post-UK budget spike in government bond yields hit firms in sectors sensitive to robust interest rates. The UK 10-year gilt yield hit a one-year on Thursday and topped 4.51%.

----------

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

Copyright 2024 Alliance News Ltd. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
DG Innovate PLC 0.07 GBX 11.57 -
Foxtons Group PLC 58.40 GBX -0.68 -
Secure Trust Bank PLC 474.00 GBX -16.25 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures