Small-cap Week, November 1

Chipmaker Imagination Technologies was among the week's worst small-cap performers amid worries it has been failing to win back market share in China.

A downgrade to "reduce" from Numis Securities led Imagination to slide 7.1 per cent. Numis saw as optimistic expectations that Imagination will regain favour with MediaTek, the Taiwanese chipmaker, which has been adopting Arm's rival Mali technology.

"The relatively short window in which the core [graphics processor] business held on to strong market share sets a bad precedent for Imagination's future intellectual property products, for which elevated operating expense massively dilutes earnings," said Numis.

It forecast Imagination to earn just 3.9p a share next year, against a consensus of 6.4p.

Salamander Energy surged 32.1 per cent after the Thailand-focused oil and gas producer confirmed it had received approaches from Ophir Energy and a consortium backed by Cespa, the oil group controlled by Abu Dhabi investment fund IPIC.

An upbeat trading statement lifted Falanx 53.1 per cent, with the risk-management consultancy saying its cyber defence software had secured its first UK government client.

Asos, Aim's biggest company, jumped 26 per cent after it was belatedly declared that Hong Kong hedge fund Tybourne Capital Management had built a 5.1 per cent stake in the fashion website operator over the previous four months. Tybourne also invests in Amazon.

Utilitywise earnings soar 76% as revenues double

Utilitywise, which helps businesses find the best rates from utility suppliers, is benefiting from companies' increased focus on managing energy costs and consumption, writes Chris Tighe.

This week National Grid unveiled emergency measures designed to avoid the risk of UK blackouts this winter, including paying businesses to use less power in cold spells when demand peaks.

The Aim-listed consultancy reported a 76 per cent rise in pre-tax profit to £13.1m in the year to July 31. Revenues almost doubled.

In continental Europe, Utilitywise is developing the operations gained with its April purchase of Prague-based ICON. In the UK, its immediate acquisition goal is to add a remote physical controls business.

Its secured future revenue pipeline of £28.2m is 70 per cent up on 2013 and its Tyneside head office base is undergoing major expansion.

Home improvement group Entu lays solid foundations

The choppy market conditions failed to deter energy efficiency and home improvement group Entu from making its market debut this week, writes Tanya Powley

The Manchester-based company, which supplies energy efficient products to homeowners, this week listed on Aim at 100p, valuing it at over £65m. On Thursday, its shares rose 4.5p to 104.5p.

"With good cash conversion and low capital intensity, we expect Entu to be a significant cash generator with a healthy pay out to shareholders," said analysts at Edison. The company supplies - but does not manufacture - windows, doors and insulation direct to consumers. It also offers repair and renewal services.

Entu, which started in 2008, made a pre-tax profit of £6m in 2013 on revenues of £95m. Analysts at Edison are forecasting profits to rise to £10m on sales of £119m in 2014.

Its IPO did not raise fresh capital for the company, instead allowing existing shareholders to sell part of their investment.

Entu, whose products also include smart boilers and solar panels, plans to increase volumes across its current portfolio and add additional products, such as mobile-controlled heating and lighting, to fuel further growth.

Its listing follows a slew of IPOs from home improvement companies this year. In August alone both Jiasen, a Chinese doormaker that supplies B&Q, and Epwin, which makes windows, doors and conservatories, made their London market debuts.

Gulf Marine Services shares reclaim flotation level

Gulf Marine Services ticked a little higher on Friday, leaving shares in the provider of specialist vessels to offshore oil and gas operators at 135.8p, after plummeting to a post-flotation low of 128.25p a fortnight ago, writes Michael Kavanagh.

The recent gains have resulted in GMS shares trading around their debut price of 135p in March, when majority owner Gulf Capital raised £67m in an IPO that valued the company's total equity at £472m. A contract win for a client operating in the Dutch section of the North Sea this week helped steady nerves for investors in the company that has offices in Abu Dhabi, Saudi Arabia and the UK.

However, the shares have given up virtually all gains since hitting a high of 167p immediately after flotation in March amid the cancellations of another IPO by a fellow Gulf-based rig and vessel supplier Shelf Drilling and more general concerns over softening demand by major oil operators for leased equipment. Investors in GMS remain in the money, but only just.

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