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Small cap movers: Has Location Sciences lost its way?

Location Sciences Group PLC (LON:LSAI) tumbled 24% to 0.5p this week after embarking on a business review after admitting Covid and the ensuing lockdowns were seriously hampering trading.

The data intelligence firm has based its business on location-based advertising within sectors that rely on people’s movement, such as retail and fast food restaurants.

Its Verify platform helps clients assess the accuracy and quality of location data so they can better target their ads.

In a world where lockdowns are forcing consumers to stay home, media agencies are cutting budgets and certainly not investing in new technologies. As a result, Verify revenues dropped 36% to GBP320,000 in 2020.

Total revenues dipped 12% to GBP1mln with an uptick in income from the data and insights side of the business partially mitigating Verify’s decline.

Turning to the oilers, the crude price surge, which is back to pre-pandemic levels at US$58 per barrel, looks to have buoyed confidence in the sector.

Europa Oil & Gas (LON:EOG) is planning to raise GBP2mln for its projects in the UK and Morocco, while 88 Energy Ltd (LON:88E) raised A$12mln (GBP6.7mln) to support exploration in Alaska.

In the world of COVID-19 tests, Omega Diagnostics Group PLC (LON:ODX) jumped 21% to 84p after winning a government contract to manufacture flow antigen tests.

Competitor Yourgene Health PLC (LON:YGEN) was up only 5% to 13p despite making GBP4mln from coronavirus testing, including through the UK’s Fit to Fly and Test to Release schemes.

Turning to the wider market, the AIM All-Share added 0.3% to 1,216, hitting a 14-year high, though it underperformed the FTSE 100, which rose 0.6% to 6,530.

Sticking to the risers, MediaZest (LON:MDZ) rocketed 211% to 0.1p after securing new business wins to generate over GBP350,000 in revenue with potential to grow further. It’s a big deal for the audio-visual solutions provider, which creates installations for shops and offices, since it’s valued at just GBP1.7mln.

Elsewhere, Directa Plus PLC (LON:DCTA) soared 49% to 142p after new research validated the fire retardant properties of its G+ graphene additive. It was tested on polymeric foams, which are found in many applications from roof insulation to furniture.

In the hospitality sector, Tasty PLC (LON:TAST) and Nightcap PLC (LON:NGHT) climbed 49% and 28% to 5p and 28p respectively. But both issued statements saying they didn’t know why their shares had moved.

Franco Manca owner Fulham Shore PLC (LON:FUL) surged 31% to 13p after unveiling plans for new openings in the summer, although revenues are currently running at around 46% of normal trading levels due to restrictions.

Among the fallers, Bahamas Petroleum plunged 73% to 0.5p after its exploration well offshore the Caribbean country found hydrocarbons but not in commercial volumes.

Miner AEX Gold lost 46% of its shine to 29p after delaying the key Nalunaq project in Greenland because the local government has implemented a travel ban.

Travel group Jet2 PLC (LON:JET2) slipped 19% to 1,202p after raising GBP422mln by placing 35mln shares, or 20% of its issued share capital, at a 9% discount. The cash will replenish the coffers as it waits for the international travel sector to return to business as usual.

Meanwhile, housing regeneration specialist Inland Homes PLC (LON:INL) shed 16% to 53p after annual sales and profits fell more sharply than expected as coronavirus affected costs and its contract income business.

Finally, lithium-ion battery cells manufacturer AMTE Power has announced plans to raise GBP7mln in an IPO scheduled for March. As well as its purpose-built cell manufacturing facility in Scotland, AMTE is eyeing a second UK manufacturing facility with a capacity of around 2GWh per year.

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