Footasylum slipped up big time this week as the trendy athleisure retailer triggered a wave of analyst downgrades with its full-year results on Tuesday.
The numbers themselves were largely as expected, with revenue climbing by a third to £194.8million, while adjusted pre-tax profits edged up to £8.4million.
It was the outlook which disappointed, though. Footasylum – which was set up by JD Sports co-founder David Makin – unveiled plans to pour more money into its consumer offering ahead of its peak Christmas trading season, while it will also invest heavily in store upsizes and the opening of new sites.
Slipping up: Footasylum slipped up big time this week as the trendy athleisure retailer triggered a wave of analyst downgrades with its full-year results on Tuesday
The investment forced a host of City analysts, including house broker Liberum, to chop their profit forecasts for the current year by 25 per cent, while revenue estimates were also lowered.
That is not what investors signed up for at the float back in November. They will have wanted to see the top and bottom lines grow substantially over the coming years in order for Footasylum to justify its punchy valuations. Perhaps unsurprisingly, shares dived 43 per cent across the week to 78.5p.
Footasylum chief executive Clare Nesbitt was also dealt another blow, losing her title as the youngest boss of a London-listed company.
That was because Tekmar joined the junior market on Wednesday, led by James Ritchie who, at 28-years-old, is two years younger than Nesbitt.
The County Durham-based company, whose technology protects subsea cables such as those used by offshore wind farm operators and oil companies, enjoyed a decent start, too.
Shares were issued at 130p as part of its float but were being sold at 150p come Friday afternoon.
Another firm which strutted its stuff this week was online fashion retailer Koovs.
What a week: Footasylum chief executive Clare Nesbitt was also dealt another blow, losing her title as the youngest boss of a London-listed company
The company, sometimes referred to as ‘India’s answer to ASOS’, more than doubled in value after it welcomed one of the country’s largest media group’s as a new cornerstone investor.
In return, HT Media, which owns the Hindustan Times newspaper among other things, will provide Koovs with almost £17million of advertising and marketing credits which can be used in its publications.
The deal isn’t over the line just yet as it is conditional on a separate £6mln fundraise going ahead, but analysts seem fairly sure that this won’t prove to be a problem.
Giving another little boost to the share price was Koovs’ collaboration with Bollywood film star Taapsee Pannu, who has 17million followers across her various social media accounts. Koovs shares soared by 106 per cent to 23.4p.
That wasn’t quite reflective of the broader junior market, though. Having hit all-time highs last week, the AIM All Share slipped back by 11.0 points, or 1 per cent, to 1,091.8.
The blue-chips also struggled this week, with the FTSE 100 falling 21.7 points, or 0.3 per cent, to 7,613.8 despite a mini rally on Friday.
MySQUAR was one of those dragging the junior market lower. It announced the acquisition of MyPay Myanmar on Wednesday as it looks to accelerate the development of its mobile payment system in the country.
To pay for MPM, which will give it a direct link to the Central Bank of Myanmar, MySQUAR issued £2.2million of convertible loan notes.
The threat of further dilution no doubt hindered the share price, but perhaps the biggest driver was a line at the bottom of the press release in which the firm said it had terminated discussions over a possible takeover.
Shares had jumped earlier in the year on interest from a third party, so the news was somewhat disappointing, leading to the stock dropping 34 per cent to 1.05p.
LED light maker LPA Group was another struggler despite upping the dividend in its half-year results.
The manufacturer increased its payout to 1.1p per share after reporting an increase in profits and sales in the opening six months.
But, as is often the case, guidance is king and LPA disappointed. Chairman Michael Rush said the outlook was ‘maybe more challenging’ as competition from Asia and a slide in demand from train companies for its lights and power sockets have hit its order book. Shares fell 36 per cent to 103p.
MBL Group endured a difficult week as investors reacted to last Friday night’s news that administrators have been brought in to wind up its only remaining subsidiary.
The company has been looking to sell off its Windsong home entertainment division for some time, but the process has taken longer than expected, while trading has worsened so much in recent weeks that more money would have to be injected to keep the business afloat.
By getting rid of its only line of business, MBL will become a cash shell. The company has always said that, rather than look to complete a reverse takeover, it will cancel its AIM listing and wind up altogether.
Investors rushed to extract any value out of their remaining shares before they are cancelled, likely to be towards the end of July. The stock, which has endured a horrific year, fell another 24 per cent to 4.6p.
There was some better news for Greatland Gold, which shone bright this week after it found gold nuggets at its Black Hills project in Western Australia.
Shares rocketed up 60 per cent to 1.15p after the company recovered multiple pieces of the precious metal from the surface in the first few days of fieldwork at the project.
The fieldwork only kicked off this week but Greatland said it is already obvious that there is the potential for a lot of gold to be underfoot.