SMALL CAP MOVERS: The AIM market exodus continues as Biome quits

Shares in Biome Technologies slumped 60 per cent on Friday after saying it would be joining the exodus of companies from AIM.

The bioplastics and radio frequency systems specialist told a familiar story, citing limited access to capital, high costs of maintaining the listing, low liquidity, and a share price that doesn't reflect the company's true value as reasons to head for the escape hatch.

Biome is one of around a dozen companies in the last month alone that have pulled the ripcord, opting for a quieter, more flexible existence as a privately owned and run company.

So far in 2025, the outflow shows no signs of abating, keeping pace with last year, when around 90 businesses left the public market.

Elsewhere, it was a brutal week for investors in green tech group Ceres Power, with shares tumbling more than 40 per cent after its key partner, Robert Bosch, decided to walk away.

The German industrial giant is pulling out of its collaboration with Ceres as part of a strategic shake-up and will sell off its 17.44 per cent stake.

Adding to the gloom, its non-executive board representative is stepping down with immediate effect.

Bosch said the market for solid-oxide fuel cells had not developed as expected, citing a shift towards higher-output systems with carbon capture, which, in its words, 'makes the conditions for economical operation significantly tougher'.

Around 90 businesses left the public market last year and the outflows have shown no signs of abating

Analysts at Panmure Liberum did not sugarcoat the situation, calling it 'bad news' and warning that Bosch's decision to offload its stake would leave a 'significant negative overhang' on the stock.

Investors certainly agreed -- the shares, which once peaked at nearly 1,600p in 2021, were trading just above 80p by Friday.

It was a rough ride too for ZOO Digital, another small-cap casualty, as the stock plunged 42 per cent after the company warned that full-year revenue and profit would miss forecasts.

Despite cutting fixed costs by 20 per cent and targeting higher margins, ZOO has struggled with delays and cancellations from customers, hitting its order book hard.

The performance of the AIM All-Share, a proxy for the general health of the small-cap market, did little to lift spirits as it slid 0.9 per cent to 720 points.

Its trajectory mirrored that of the benchmark FTSE 100 index, which retreated from record territory to post a weekly 0.8 per cent loss.

One of AIM's bigger names, Jet2, hit some turbulence, sliding 10 per cent after warning that rising costs would take a bite out of profits.

A 3 per cent pay rise for staff, higher hotel and airport fees, and an extra £25million in wage and national insurance costs are all piling on the pressure. On top of that, its push towards sustainable aviation fuel will add another £20million to the bill.

Barclays and UBS noted that Jet2's new bases in Bournemouth and Luton will be 'modestly loss-making' in their first year -- another expense as the airline expands.

The jitters around Jet2 spilled over into the wider sector, making it a bumpy week for airline stocks.

On the flipside, Inspiration Healthcare was the standout performer, soaring 41 per cent after a strong trading update. The company delivered a solid second half and expects the momentum to continue, helped by cost-cutting measures that have pushed it back into profitability.

Earlier on Friday, Europa Metals expressed a degree of frustration over the slide in its share price, using the LSE's news service to voice its dissatisfaction.

Since resuming trading on AIM last week, the stock has fallen close to 18 per cent. The company insists there's no reason for the drop and argues that its shares, worth 1.3p each, are trading well below their implied value.

Europa holds seven million shares in Denarius Metals, which, based on recent pricing, suggests an underlying value of between 2.5p and 3p per Europa share -- far above its current market price.

Well, the wake-up call had the desired effect as the shares jumped 30 per cent in early trading -- though, at 1.56p, there still seems to be plenty of upside based on the company's assessment of value.

Tavistock Investments had a good run this week, climbing 18 per cent after completing its acquisition of Alpha Beta Partners, an asset management firm overseeing close to £3billion. The deal, first agreed in November, is now done and dusted, with an initial £6million payment made.

Oil and gas play Pantheon Resources surged 7 per cent as it strengthened its finances and appointed a new CEO.

Max Easley, a 30-year industry veteran with stints at BP Alaska, Apache Corporation, and Petronas Canada, takes the helm as the company shifts from exploration to production and eyes a potential US listing.

Outgoing boss Jay Cheatham will stick around as a non-executive director during the transition.

Gemfields put on a sparkling performance with a 14 per cent rise.

The catalyst? Zambia scrapped its controversial 15 per cent export duty on precious gemstones, which had halted exports from Gemfields' 75 per cent-owned Kagem emerald mine.

With shipments and auctions now back on, revenue prospects are looking brighter. Panmure Liberum promptly lifted its price target for the stock from 16p to 20p -- well above the current 6p level.

Rounding things off, investors in SEEEN (up 23 per cent) had reason to smile after CEO Adrian Hargrave spoke to Proactive's Stephen Gunnion about the company's rapid growth.

The video tech firm reported a revenue jump from $2.1million in 2023 to $3.2million in 2024, with an annualised run rate of $5million.

Its AI-powered platform, which helps creators monetise video content, is gaining traction in sports, e-commerce, and education.

For all your small- and mid-cap news go www.proactiveinvestors.com

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