Resource and defence names dominated Friday's small-cap news flow, with Arrow Exploration's debut move into Canada headlining a session that also saw Cohort land a nine-figure submarine sonar contract and Winking Studios post double-digit revenue growth despite margin pressure. Elsewhere, Afarak Group's ferrochrome business felt the pinch of weaker demand, while junior explorers London BTC and Beowulf Mining advanced their respective Nevada and Swedish projects.
Arrow Exploration adds first Canadian asset with Alberta deal
Arrow Exploration (AIM:AXL) has deployed C$12.15 million (roughly $8.9 million) of its cash reserves to acquire a producing oil property in Thorsby, Central Alberta, marking the company's first move outside its established Colombian hydrocarbon basins. The AIM and TSXV-listed operator, whose shares ticked up 0.36% to 27.7p on the news, has built its reputation on a portfolio of Colombian assets, and this deal extends that model into a new jurisdiction rather than a new strategy.
The Thorsby asset currently produces 550 barrels of oil equivalent per day with a 15% decline rate, having generated approximately C$2.0 million of operating income over the past 12 months. It spans 9,501 net acres with existing infrastructure already in place, and management has identified 22 drilling locations in the lower Cretaceous Sparky reservoir, each carrying an estimated cost of roughly C$2.2 million per well. A third-party reserve report dated 31 December 2025 values proved reserves at 4.973 million barrels of oil equivalent and proved-plus-probable reserves at 7.537 million boe, with pre-tax net present values of C$38 million and C$71 million respectively. Arrow is also assuming C$8.7 million of decommissioning liabilities as part of the transaction, while confirming it remains debt-free.
"The Thorsby acquisition represents a low-risk, exceptional return inventory suite of development drilling opportunities. The development focus is on the Cretaceous Sparky Formation as a proven reservoir where management has years of geologic fluency," said Marshall Abbott, chief executive of Arrow.
The acquisition trims Arrow's cash position from the $27.5 million reported as of 1 August to roughly $18.6 million, a meaningful commitment for a company that has built its investment case on Colombian drilling economics. Abbott's framing of the Sparky reservoir's three-way structural traps as geologically similar to Arrow's Colombian fields, with well-level returns potentially exceeding 500%, suggests management sees Thorsby as a repeatable, self-funding drilling programme rather than a one-off bet, but committing material capital to an unfamiliar basin, even one with 22 ready-made locations, adds execution risk that Arrow's Colombian-only track record can't yet vouch for.
Winking Studios revenue jumps as it invests in AI and North America
Winking Studios (AIM:WKS) reported revenue of $23.5 million for the six months to 30 June, up 21.1% from $19.4 million a year earlier, with the AAA game art outsourcing specialist's shares easing 3.04% to 13.575p despite the growth. Art outsourcing revenue climbed 25.4% to $19.9 million and now accounts for roughly 85% of group revenue, while organic growth ran at 8.9%.
Adjusted EBITDA fell to $1.2 million from $2.4 million as gross margin narrowed by 6.2 percentage points, a deliberate trade-off tied to stepped-up investment in North American subsidiary Ampera and AI-enabled game development, compounded by a seasonally softer first-quarter contribution from Mineloader. The group invested approximately $0.4 million in Ampera, acquired in April, and $0.9 million in AI-enabled development capability. "The first half demonstrates the strength of our core business and the scale of the opportunity we are building towards," said Johnny Jan, chief executive, adding that repeat business and bookings "provide good visibility over underlying activity".
The margin compression will test investor patience, but it reflects a company choosing to fund capability expansion out of current earnings rather than external capital, a stance reinforced by finance director Yen's ambition to build Winking into "a broader, end-to-end game development partner that combines high-quality creative production, game development capability and global delivery." Whether that bet pays off hinges on Ampera and AI tooling converting into higher-margin, higher-value contracts rather than simply adding cost.
Cohort's ELAC wins €140.7 million Saab sonar contract for Polish submarines
Cohort (AIM:CHRT), the defence technology group, has secured a €140.7 million contract through its German subsidiary ELAC, sending shares up 5.62% to 1428.0p. The Sensors and Effectors division will work alongside Saab to deliver integrated sonar systems for Poland's Orka Submarine Programme, with work starting immediately and deliveries running out to the mid-2030s.
The contract centres on Saab's A26 submarine, selected by the Polish Navy for the programme, and Cohort said the win, together with other recent contract successes across the group, is expected to enhance adjusted earnings per share in the following financial year and beyond. Chief executive Andy Thomis said the order cements ELAC SONAR's position as a world-leading provider of advanced digital sonar systems for submarines, adding that the two companies "will work together closely to ensure that these advanced vessels are provided with cutting-edge active and passive sonar systems, creating a world-class underwater capability that will make a major contribution to security".
The timing carries symbolic weight: ELAC marks its 100th anniversary in 2026, and Thomis noted the order "demonstrates its continued status as a leading provider of naval hydroacoustic systems for use in the Baltic Sea and worldwide." For Cohort, a near decade-long delivery horizon running to the mid-2030s locks in revenue visibility well beyond the current order book, reinforcing the group's positioning at the centre of European rearmament spending.
Afarak Group revenue falls as ferrochrome demand weakens
Afarak Group reported first-half revenue of €57.1 million, down 25.9% from €77.1 million a year earlier, as the ferrochrome and chrome ore producer swung to a loss of €0.7 million against a €2.4 million profit in the same period last year. EBITDA fell to €1.6 million from €6.9 million, with margin narrowing to 2.8% from 9%.
Processed material sold dropped 25.9% to 11,372 tonnes and tonnage mined fell 12.8% to 130,256 tonnes, though the group noted performance had improved against the second half of 2025. Net financial items absorbed a €0.5 million hit from a fair value adjustment on foreign exchange forward contracts, while cash and cash equivalents fell to €4.9 million at 30 June from €7.3 million at the end of 2025, even as cash flow from operations improved to €1.5 million from €0.1 million.
Chief executive Guy Konsbruck described market conditions as "very complicated" through 2026, a characterisation that fits a period of falling volumes and thinning margins across the ferrochrome complex. The sequential improvement against the second half of last year offers some reassurance that the worst of the demand slump may be stabilising, but the swing to a net loss underscores how exposed the group remains to commodity price and volume swings outside its control.
London BTC finds antimony potential at Nevada gold project
London BTC Company (BTC), chaired by David Lenigas, said historical data point to a critical-mineral trend running into its Black Star claims in Nevada, alongside gold grades of up to 16.23 g/t. Shares in the company stood at 1.6p.
The identification of antimony potential alongside high-grade gold intercepts adds a second commodity angle to the Black Star project, potentially broadening its appeal at a time when critical minerals supply chains are drawing heightened investor and government attention. The company's next steps will determine whether the historical data translate into a modern exploration programme targeting both metals.
Beowulf completes infill drilling at Kallak iron project
Beowulf Mining (AIM:BEM) has completed its top-priority infill drilling programme at the Kallak iron ore project, with shares little changed at 10.48p, down 0.19%. The work targeted an upgrade of near-surface Inferred resource into the higher-confidence Measured and Indicated categories.
"The top priority infill drilling has now been completed with the objective of upgrading near-surface Inferred resource to the higher confidence Measured and Indicated categories," said Ed Bowie. Converting resource confidence at Kallak is a necessary step toward any future development decision, giving the project a firmer technical foundation as Beowulf works to advance it through subsequent permitting and economic studies.
