(Alliance News) - The following stocks are the leading risers and fallers among London Main Market small-caps on Tuesday.
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SMALL-CAP - WINNERS
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Halfords Group PLC, up 14% at 146.80 pence, 12-month range 125.00p-235.80p. The cycling and motoring products retailer says pretax profit from continuing operations in the first half to September 27 fell 23% to GBP17.8 million from GBP23.2 million a year prior. Revenue from continuing operations slips 0.1% to GBP864.8 million from GBP865.3 million. However, Halfords says it remains "comfortable with consensus estimates for FY25". "The second half of the year will be impacted by incremental freight at the lower end of the previously indicated GBP4-7 million range, and acceleration of our Fusion rollout will have a [roughly] GBP1 million impact due to temporary garage closures," it adds. The firm said measures announced in the UK budget will add GBP23 million of direct labour costs, of which GBP9 million was already included in its "planning assumptions" for the next financial year.
"The effect of the UK budget on consumer behaviour and hence the trajectory of our end-markets is unclear. We have a greater ability to mitigate headwinds in the more needs-based Autocentres servicing business, where pricing power is greater. Additional tactical and structural options to support mitigation are under review," Halfords continues.
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STV Group PLC, up 5.7% at 205.00p, 12-month range 180.50p-297.00p. The television broadcaster and content producer says it has performed in line with market expectations despite "continued challenging advertising and commissioning" conditions. Total advertising revenue in the third-quarter rises 5% on-year, ahead of guidance. TAR is expected to decline around 10% during the fourth-quarter, however, as the prior year included a boost from the Rugby World Cup. For the full-year, TAR growth of 2% to 3% is expected. "I joined STV on 1 November and have been very impressed by its strong foundations and prospects for future growth. I've been struck by the creativity, dynamism and commitment of the team and I look forward to working closely with them to build on recent successes," Chief Executive Rufus Radcliffe says. "The winter schedule brings the return of entertainment juggernaut, I'm A Celebrity Get Me Out Of Here, and The 1% Club. And looking further ahead, we have a strong drama offering at the start of 2025 on STV and STV Player." STV runs two 'channel 3', broadcast television licences in the UK. The other licences are run by ITV PLC.
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Evoke PLC, up 5.6% at 56.40p, 12-month range 49.18p-297.60p. Deutsche Bank raises the 888 and William Hill owner to 'buy' from 'hold' after the gambling sector was spared from rumoured UK tax hikes. Shares in the company are up 6.5% since the day before the October 30 budget was delivered by UK Chancellor Rachel Reeves. Shares are down some 39% over the past six months, however.
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Topps Tiles PLC, up 1.9% at 40.25p, 12-month range 38.00p-56.65p. The tile seller says it is continuing to eat up some market share "in a difficult trading environment". The size of the market is down some 20% from pre-Covid levels, it says in its annual results for the 52 weeks to September 28. Revenue falls 4.1% to GBP251.8 million from GBP262.7 million. Topps Tiles swings to a pretax loss of GBP16.2 million from profit of GBP6.8 million. It halves its final dividend to 1.2p from 2.4p. Its total dividend has been cut by a third to 2.4p from 3.6p. "In the tile market, volumes remain well below pre-pandemic levels. Whilst Topps Group is not immune to these pressures, our growth strategy has served us well and we have continued to outperform the wider tile market," Chief Executive Rob Parker says.
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SMALL-CAP - LOSERS
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Severfield PLC, down 36% at 56.00p, 12-month range 47.50p-89.80p. The structural steel maker expects annual profit to be below previous expectations as a "recovery in some sectors has been slower than expected". It also notes "tighter prices are continuing to impact our profitability in the short-term". In addition, some potential "large project" work for the current year and the next have been delayed or cancelled. In the half-year to September 28, revenue increases 17% to GBP252.3 million from GBP215.3 million. However, Severfield swings to a pretax loss of GBP5.8 million from profit of GBP11.0 million. Operating costs spike 26% to GBP256.9 million from GBP203.3 million. Nonetheless, it maintains its interim dividend at 1.4p per share. Severfield warns underlying profit will be "below our previous expectations".
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By Eric Cunha, Alliance News news editor
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