SMALL-CAP WINNERS & LOSERS: Applied Nutrition reports profit fall

The following stocks are the leading risers and fallers among London Main Market small-caps on Monday.

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SMALL-CAP - WINNERS

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De La Rue PLC, down 0.5% at 107.5 pence, 12-month range 77.4p-123p. The Basingstoke-based printer of money for central banks says it remains in discussions regarding a possible takeover bid. Also announces that Connecticut, US-based industrial technology company Crane NXT Co will pay £300 million for its Authentication business. Of this, £15 million is to be held in escrow for up to 18 months post-completion, and £30 million is to be paid to the trustee of De La Rue’s defined benefit pension scheme. A portion of the cash consideration will repay the group’s revolving credit facility in full. De La Rue said in January that Disruptive Capital GP Ltd and Pension SuperFund Capital had offered to buy it for 125 pence per share. Then, in February, it said it had also received preliminary approaches from separate third parties and that it had started a formal sale process.

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SMALL-CAP - LOSERS

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Applied Nutrition PLC, down 5.7% at 104.7p, 12-month range 104.7p-154.8p. The Liverpool-based sports nutrition brands company says pretax profit fell 27% to £11.8 million in the six months to January 31, from £16.1 million the previous year. Says revenue climbed 4.8% to £47.6 million from £45.4 million, while the cost of sales increased 11% to £25.3 million and administrative costs jumped 61% to £10.8 million. Applied Nutrition attributes its ‘exceptionally strong year-on-year growth [in the UK]’ to ‘further penetration of existing customers and winning new customers’, and says trading since the period’s end remains ‘strong’, as it expects annual revenue of £100 million for the year ending in late July. Looking ahead, it does not expect to be materially impacted by changing US tariffs, having ‘ a number of options...such as moving production of liquid products currently produced in the UK to being manufactured in the US’.

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