SMALL CAP MOVERS: East Imperial toasts US bottler deal

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SMALL CAP MOVERS: East Imperial toasts US bottler deal

2022-11-29 09:08| 来源: 网络整理| 查看: 265

New Zealand-based East Imperial had had a tough year but popped higher this week after appointing a US bottling partner to meet its rising stateside demand.

The maker of 'ultra-premium beverages' said US-based Lion Brewery will bottle its entire range including its grapefruit tonic, Mombasa ginger beer and Yuzu lemonade, from early 2023.

This will result in 'significant' logistical savings and reduce the capital costs of expansion, it added, which 'will form a key part' of its plans to improve profit margins as well as providing flexibility to react to the demand. Shares rose 14 per cent to 2.79p.

Drinks group East Imperial saw shares rise 14% this week after securing a bottling deal

Drinks group East Imperial saw shares rise 14% this week after securing a bottling deal

Real Good Food was another of London's AIM risers rocketing 51 per cent to 1.75p after receiving additional funding for its turnaround.

The food manufacturing company said the new money was provided by Hilco Private Capital for a term of 12 months and supplements its existing £6.3million facility with Leumi.

'We are delighted that new funding has been secured to support the radical reform of RGF which is intended to reduce costs, protect revenues and preserve the inherent value of the group,' said executive chairman Mike Holt.

And funding is increasingly the main topic for small listed companies.

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Deepmatter led the fallers, slumping 60 per cent, after announcing its plans to delist from AIM following talks with shareholders and potential investors over long-term financing.

The digital chemistry data and software company said being a private limited company would provide greater opportunities to raise additional capital, adding its major shareholders agreed.

Cash raising struggles were also the theme at Applied Graphene Materials, which said it was launching a strategic review after it could not raise equity finance due to the difficult stock market environment. Shares dropped by a fifth on the news.

Even when companies can raise finance, the discounts can be punitive.

Take Osirium Technologies, which fell 32 per cent to 2.7p following a placing in which it raised £1.53million for working capital purposes.

A cloud-based cybersecurity software specialist, it issued shares at 2p with directors chipping in £255,000.

Health diagnostics device maker Genedrive was another faller, down 23 per cent to 9.7p as annual losses deepened and revenues fell.

Sales crumbled to £50,000 from £690,000 a year prior, while the group reported a loss of £4.7million from £700,000.

David Budd, chief executive, said that despite the financials, the group had made good progress in pharmacogenetics, and had the opportunity to be a leader in the establishment of genetic testing in acute point of care.

De La Rue's run of disappointments also continued with the banknote printer nosediving 21 per cent to 78p on the back of another warning.

Underlying interim profits tumbled 46 per cent to £9.3million, in line with previous guidance given in July, but it was lower than expected guidance for the full year that really spooked investors.

London's small cap indices had a reasonable week notwithstanding the fallers, with the AIM All-Share up by 0.8 per cent to 844 and the AIM 100 also higher, though once again they were comfortably outperformed by Footsie.

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