AQUIS STOCK EXCHANGE
Trading in Silverwood Brands (SLWD) shares have been suspended. The company has mutually agreed with Lush that there can be another extension to 9 October for the timetable to serve its defence in the litigation concerning the acquisition of a stake in Lush. Tanith Dodge has resigned as a non-exec director.
Dermatological treatments developer Incanthera (INC) had £3,000 in the bank at the end of March 2023. There has been £32,000 raised since then. Commercial deal discussions continue. The technology continues to be enhanced.
Electric drivetrain technology developer Equipmake (EQIP) increased revenues from £3.7m to £5.1m in the year to May 2023. The cash outflow from operations was £9m and £1.2m was spent on capital investment. There is £7m in the bank.
Guanajuato Silver (GSVR) provided updated production guidance for its four silver mines. The focus will be on mining higher grade areas. The silver equivalent production will range from 3.4 million to 3.6 million in 2023.
Clean Invest Africa (CIA) is the best performer on the week following its interim results. Management says that there are potentially exciting prospects, but more funds will be required. Securing a partner for a CoalTech coal fines processing plant would involve a project worth more than $10m.
Invinity Energy Systems (IES) has sold a 1.1MWh vanadium flow battery to NARLabs in Taiwan. The flow battery will be installed in the company’s building.
Yooma Wellness Inc (YOOM) has sold Vitality CBD for $2m to Psilobrain Therapeutics, a Canadian biotech company. The cash is payable in three instalments over 210 days. The shares remain suspended. The company is still short of cash and it has no operating business.
Gunsynd (GUN) has a 0.66% stake in Pacific Nickel Mines, which has commenced the mining of saprolite nickel ore at the Kolosori nickel project in the Solomon Islands. The first shipment should be in November.
EDX Medical (EDX) has signed an agreement with Guardant Health to distribute its cancer genomic liquid biopsy tests in the UK and Nordic countries. EDX Medical made a £3.7m loss in the period to March 2023. The share price declined 12.5% to 2.625p.
Marulu Mining (MARU) says that assay results confirm high-grade copper at the Sasimo prospect at the Kinusi copper mine in Tanzania. The average copper grade was 2.68%. The target is estimated to be 10-15 million tonnes of copper. Drilling at the Blesberg lithium and tantalum mine in South Africa is nearing completion.
Tap Global Group (TAP) has reached an agreement to launch its cryptocurrency app in conjunction with Chicago-based Zero Hash, which has regulatory approvals. This service should launch in the fourth quarter.
Looking Glass Labs (NFTX) has consolidated 75 shares into one new shares.
Tunch Kashif has increased his stake in ChallengerX (CXS) to 21.6%.
AIM
Educational services provider Tribal Group (TRB) is recommending a 74p/share cash bid from Ellucian Company. The share price has not been at the bid level since September 2022, following disappointing interim figures. The bid values Tribal at £172m and it will create an international supplier of technology to education and public sectors.
A firm bid for online home moving services provider Smoove (SMV) was announced at the end of trading on Wednesday. The original approach was revealed in April. PEXA Group is offering 54p/share in cash, valuing Smoove at £30.8m. The share price has not been high for just over one year. The company joined AIM as ULS Technology on 28 July 2014, when it was valued at £25.9m at the placing price of 40p.
Inspiration Healthcare (IHC) interim figures should mark the bottom for the company and there should be a profit improvement in the second half. In the six months to July 2023, revenues were flat at £20.4m, but there was underlying growth excluding the medical device that is still awaiting UK approval. Pre-tax profit nearly halved to £700,000. The interim dividend is unchanged at 0.205p/share. A full year pre-tax profit of £2.4m, up from £2m the previous year, is forecast.
Telematics company Quartix Technologies (QTX) admitted that revenues and gross margins would be lower than expected. Progress in the UK and US has been disappointing, and these markets will be focused on. Quartix has acquired Konetik, which provides the technology for its Evolve product, for €2.5m, with up to €1.4m more payable depending on the sale of Evolve licences. Around 50,000 tracking systems will have to be replaced in France when 2G networks are switched off and this could cost Quartix £4.1m over three years. EBITDA could be £1.1mm lower than forecast this year and £2.4m lower next year. The dividend may be reduced.
Neometals (NMT) says that the new lithium recovery process has led to more than 93% lithium recovery from batteries in the form of lithium fluoride. This should reduce operating costs and capital investment. The proposed offtake agreement with Jiuxing Titanium Minerals for the Barrambie titanium project in Australia was not agreed and other partners are being considered. Cavendish values Neometals at 140p/share.
Horizonte Minerals (HZM) is changing the design of the Araguia nickel project in Brazil, which will increase capital investment and delay production until the third quarter of 2024. Management is in talks about additional financing. A review of operating costs should be completed by the end of the year.
Resources projects developer Oracle Power (ORCP) is raising £350,000 at 0.035p/share with one warrant exercisable at 0.07p attached to every two shares. A capital reorganisation to reduce the nominal value of the shares to 0.001p is required, or the new shares could not be issued. The cash will be spent on the company’s green hydrogen project in Pakistan, which will have a 400MW capacity.
Autonomous vehicle developer Aurrigo International (AURR) has signed a deal with International Airlines Group to deploy its vehicles at a major UK airport. A small number of vehicles should be deployed in early 2025.
The latest budget from the Trinidad and Tobago government should ensure than Trinity Exploration and Production (TRIN) will not pay any supplemental petroleum tax in 2024. The threshold price for offshore assets has been raised by 50% to $75/barrel, while the sustainability incentive has been raised from 20% to 25% to encourage investment. There will be a review of the capital expenditure write-off regime.
Secure payments technology developer PCI-Pal (PCIP) is seeking maximum recovery of costs from the company that filed the UK patent dispute that was resolved in PCI-Pal’s favour last week. In the first quarter of the new financial year, 57 new contracts have been signed. However, Cavendish has reduced its expectations for growth in 2023-24 revenues from 34% to 28% following the latest guidance from the company. PCI-Pal is still expected to move into profit this year, but it is a more modest £100,000.
MAIN MARKET
S and U (SUS) reported a small improvement in pre-tax profit from £20.9m to £21.4m. The profit from the Advantage Finance car finance business with the main improvement coming from Aspen Bridging, which provides property finance. The interim dividend is maintained at 35p/share.
XP Power (LON: XPP) says weaker demand has hit customer orders for power products have hit third quarter revenues. Dividends are being temporarily halted and the previously announced second quarter dividend will not be paid. Analysts had been expecting a flat 2023 pre-tax profit of around £38m, but expectations have been cut to £32m. Net debt had been expected to fall this year, but it had risen to £163m by the end of September and it will be even higher at the end of the year.
Rival bids for Pendragon (LON: PDG) have pushed Lithia Motors to increase its offer for the motor dealer business from £250m to £367m. That is equivalent to 24.5p/share and in this deal shareholders will retain majority ownership of the Pinewood dealer management software. The total value of the deal and retained interest is estimated at 35.4p/share. Hedin Mobility is no longer considering a bid.
Packaging manufacturer and distributor Macfarlane Group (MACF) has acquired B&D 2010 Group for up to £3.85m in cash, depending on performance. The bid target produces protective packaging, and the customer base is in defence, space and aerospace.
Andrew Hore
