Companies: ASC    CASH    CBY    CYBS    FIF    ITF    OCH    TED    WTL   

In an action-packed week for AIM – the market kicked off trading on Monday at 1010 and closed on Friday at 1,029.1 – consolidation between ATM companies, as well as a slew of new issues and rugged results, punctuated play. The FTSE remained largely unchanged by the end of the week, down just 0.3 at 5,232.4, having come back 51 points from Thursday’s three-year high.

One of the week’s major talking points involved Mark Mills’ Cardpoint (CASH), which is buying rival cash machines counter Moneybox in a £87.3 million reverse deal that will bring synergies and help Cardpoint expand in Europe. Cardpoint has made a recommended cash offer at 43p, which it will fund with a £55 million share issue and an £80 million bank facility. The sector is consolidating due to the high costs of expansion and technology investment.

Results round-up

Online fashion retailer ASOS (ASC) unveiled record results for the year to March, despite a prior profits alert caused by warehousing issues. Profits surged 77 per cent north to £1.1 million on sales lifted 79 per cent to £13.5 million. Chief executive Nick Robertson lauded the group’s broader product line, and promised ASOS’s new warehouse would fuel further growth.

Acquisitive bakery business Inter Link Foods (ITF) cooked up a sixth successive year of record turnover and profits. For the period to 7 May, pre-tax profits baked up 18 per cent to £5.9 million on a 41 per cent jump in sales to £98.1 million. Inter Link, which produced enough mini-rolls and swiss rolls last year to stretch from London to Singapore, closed up 12.5p at 700p on results day.

Risers and fallers

Fellow deal-hungry baker  Finsbury Foods (FIF) reassured with a pre-close statement, saying it delivered a strong performance in the second half to June. Finsbury has a number of targets on its radar which it will pursue in coming months.  

Heading south was Canterbury Foods (CBY), off 6.5p at 19.5p after warning results for the year would disappoint due to flagging sales at its meat division.

Bid excitement sent shares in Tepnel Life Sciences (TED) 73 per cent north to 10.38p after the company confessed to early-stage discussions with ‘one or more parties’. Chief executive Ben Matzilevich said that ‘our progress has also not gone unnoticed within our industry’. Bio-Rad Laboratories, a $1.5 billion Californian biotech giant, recent bagged a 3.87 per cent stake.

New issues highlights

Amid the week’s new issues highlights, Cyberscan Technology (CYBS) firmed up by 16 per cent to 707.5p on its debut, for a market value of £105.8 million. The company, which provides IT hardware and software to the gaming industry, raised an impressive £20 million through a Collins Stewart-led placing at 611p.

Orchid Developments (OCH), the Bulgarian property group, sparked up 20.5 per cent to 114.5p on its debut. Shore Capital’s original share placing at 95p was increased by 50 per cent to £20 million to sate demand from institutions.

And fitted kitchen supplier Waterline Group (WTL) enjoyed a decent debut, dancing up from the 84p Daniel Stewart-steered placing price to 87.5p in first day’s dealings on Wednesday.  

Looking forward

Next Wednesday, watch out for the AIM debut of one of Europe’s top nano-materials plays. Oxonica has pulled in £7.1 million of new money through a placing of new shares at 95.8p and will start trading with a £35 million price tag. Panmure Gordon & Co is adviser and broker to the issue.