Small-Cap Movers: Aquis Exchange Hits a Roadblock

Challenger stock exchange Aquis Exchange PLC (LSE:AQX) has achieved significant milestones this year, including surpassing AIM in the number of new IPOs and securing new technology clients both domestically and internationally, such as the Central Bank of Colombia. The company’s share price reached its highest level since early 2022, peaking at 500p in July.

However, recent developments introduced some setbacks. A profit warning was issued as Aquis disclosed that full-year results would be negatively impacted by the non-renewal of a longstanding contract within its technology segment. Chief Executive Alasdair Haynes addressed the situation, stating, "Whilst it is disappointing that our near-term trading has been impacted by a single contract, progress continues in establishing the foundations to deliver our strategic objectives."

Aquis functions not only as an equities exchange but also as a technology provider to other market makers. Despite the setback, the AIM-listed group announced plans to increase investment in its technology division. Panmure Liberum interpreted this move as an indication of the “longer-term opportunities for the business.” Nonetheless, the announcement led to an 18% decline in the company’s share price.

Meanwhile, the broader AIM All-Share Index experienced a downturn, falling by 0.5% on Friday after a rally earlier in the week. The decline was influenced by remarks from Labour leader Keir Starmer, who hinted at impending tax increases in the October budget, describing it as “painful” and suggesting that those “with the broadest shoulders should bear the heaviest burden.” This sentiment particularly affected financial services stocks. In contrast, the FTSE 100 saw a modest gain of 0.8%, supported by strong performances from companies such as Bunzl, easyJet, and BAE Systems.

Other notable movements in the market included Nanoco Group PLC (LSE:NANO), which saw its shares drop by a third following the loss of a key European customer. Broker Peel Hunt criticized the company’s strategic direction, indicating that Nanoco’s prospects for commercialization in 2025 have diminished significantly, and suggested the possibility of a reverse takeover.

Audio interface manufacturer Focusrite PLC (LSE:TUNE) experienced an 18% decline due to disruptions in the Red Sea, which affected shipping costs and led to a reduction in stocking policies by a major reseller. Similarly, Quiz PLC (LSE:QUIZ) saw its shares fall by 18% after reporting ongoing financial struggles, including a shift from profit to loss and a significant reduction in cash reserves. The company is currently in discussions for a loan to stabilize its operations.

In the mining sector, companies such as Uru Metals Ltd, Critical Metals PLC (LSE:CRTM), and Tertiary Minerals PLC (LSE:TYM) faced substantial share price declines due to various operational challenges. Conversely, Bisichi Mining PLC (LSE:BISI) experienced a 46% increase in share value following a strong half-year report, which also positively impacted London & Associated Properties plc (LSE:LAS), raising its shares by 29%. Greenroc Mining plc saw a 29% rise after acquiring land for a sustainable industrial park in southern Norway.

In the biotech arena, Faron Pharmaceuticals Limited (LSE:FARN) led gains with a 19% increase after receiving fast-track approval from the US Food and Drug Administration (FDA) for its lead candidate, bexmarilimab, aimed at treating relapsed or refractory myelodysplastic syndrome (r/r MDS) in combination with azacitidine. Peel Hunt lauded bexmarilimab as “a very exciting asset on the oncology landscape.”