As the dust settled on Donald Trump’s comprehensive clobbering of opponent Kamala Harris in the US presidential elections, much of the attention shifted to the potential implications for the US markets and the global economy as a whole.
Given Trump’s climate scepticism and passionate love of fossil fuels, it is safe to say that the renewables industry has a lot to be worried about, at least in the US.
But here in the UK, one alternative-energy small cap on the AIM market ignored the fuss and posted a snazzy 25 per cent gain on its market capitalisation.
UK-based green hydrogen technology and manufacturing company Clean Power Hydrogen plc saw the lift to its valuation after signing a licence agreement with Hidrigin, allowing the Irish company to use Clean Power’s IP-protected Membrane-Free Electrolyser.
Hidrigin has secured €100million in funding to build out numerous renewable energy developments and Clean Power shareholders evidently expect it to reap some of the benefits.
Concerns: Given Trump’s climate scepticism and passionate love of fossil fuels, it is safe to say that the renewables industry has a lot to be worried about, at least in the US
Global markets saw an immediate spurt of bullishness following Trump’s victory, although this was both short-lived and hardly reflected in the AIM market’s performance.
The junior market did see a small post-election bump followed by a sharp Thursday retraction. Not even a 25-basis-point rate cut from the Bank of England could bring the AIM All-Share Index back into the green – it approached Friday afternoon 0.45 per cent lower at 735.4.
The FTSE 100 encountered an even sharper retraction. After an initial post-election rally, the blue-chip index fell back to close the week 1.3 per cent lower at 8,073.
Speaking of Hydrogen, AFC Energy plc was another top riser, adding more than 20 per cent after unveiling an agreement to deploy the first 45kVA H-Power System into Saudi Arabia with exclusive distributor The Machinery Group (trading as TAMGO).
On the right-hand side of the periodic table, Helium One Global Ltd confirmed the completion of its farm-in agreement with Blue Star Helium for a 50 per cent stake in the Galactica-Pegasus helium project located in Las Animas, Colorado. Shares rallied 18 per cent.
Bigblu Broadband plc was the week’s biggest riser after confirming takeover interest of its subsidiary Salter Brother from Australian carrier SkyMesh.
‘The transaction remains subject to final terms and financing arrangements, and there can be no certainty that any transaction will be completed,’ said management. Shares rallied 61 per cent.
B2B video streaming solutions company Aferian plc added 50 per cent after reporting that revenue is expected to increase by 20 per cent this year.
On the topic of disposals, Christie Group plc announced the sale of its subsidiary Orridge Holdings to RGIS Inventory Specialists for £5million.
Founded in 1846, Orridge is Europe’s oldest stocktaking company that provides inventory-management services across the retail, warehousing, and pharmaceutical sectors in the UK, Germany, and Belgium. Christie’s share price added 20 per cent.
Everyone’s favourite model train maker Hornby plc added 19 per cent after the Frasers-backed AIM constituent confirmed the disposal of its wholly-owned subsidiary LCD Enterprises, which includes the Oxford Diecast hobby brand, to EKD Enterprises for £1.38million.
Africa-focused gold producer Hummingbird plc took the crown of this week’s biggest AIM faller in light of a debt restructuring that will likely lead to a delisting.
Continued challenges at its mining operations ‘have placed significant strain on Hummingbird’s balance sheet and ability to meet near-term debt repayment obligations’, said management.
The solution? A debt-to-equity swap that will see lender CIG effectively seize control of the company at a substantial per-share discount, after which CIG intends to delist Hummingbird from AIM. Shares subsequently collapsed 66 per cent to 2.13p.
Clinical infrastructure specialist Feedback plc’s valuation was slashed following annual results and a dilute equity round.
Feedback’s cash position nearly halved in the reporting period, while a £5.2million share placing at 20p each represented a 55 per cent discount to market prices. Shares proceeded to fall by 50 per cent to match the 20p offer price.
Oil and gas explorer Empyrean Energy also engaged in a £1.12million fundraise to support a potential acquisition of an option to participate in the Wilson prospect in Australia. Shares saw a 40 per cent technical downward adjustment.
Also in the energy sector, gas explorer Synergia Energy Ltd fell off more than 23 per cent on the back of an operational update.
Synergia said ‘solid progress is being achieved’ on its 50:50 joint venture with Harbour Energy, although a discounted equity round (quite a running theme this week) heaped pressure on shares.
In the technology space, chipmaker EnSilica plc shares fell by 24 per cent in response to a full-year trading update. While revenues increased by 23 per cent, gross margins tightened from 40 per cent to 36 per cent due to a ‘large tape-out contract’.
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