AQUIS STOCK EXCHANGE
Shares in wine maker Chapel Down Group (LON: CDGP) revealed firm plans to move to Aim, probably on 7 December. This could lead to an additional 10.8 million shares being issued, which would represent 6.5% dilution, to simplify the share structure. There will be no cash raised at the time of the move. The latest harvest was of 3,811 tonnes of grapes, which is 86% more than in 2022. This should be enough for 3.4 million bottles of wine, including a greater amount of sparkling wine.
Vinanz Ltd (BTC) raised £350,000 at 3p/share at a premium to the then market price. During the week the share price jumped 135% to 6.75p. The cash will be used to buy 250 bitcoin miners, which will triple the bitcoin mining capacity in North America. Vinanz hopes to have the new machines up and running by the end of the year. Vinanz should be able to generate bitcoin worth $1.2m each year.
Field Systems Design (FSD) increased turnover from £8.09m to £13.75m in the year to May 2023, while the mechanical and electrical contractor swung from a loss of £1.9m to a pre-tax profit of £287,000. This was despite the slow build up of water sector work, but this is set to change. Volumes should continue to grow. There was £2.26m in cash at the end of May 2023.
Daniel Thwaites (THW) interim revenues improved from £57.9m to £60.3m. The decline in pre-tax profit from £15.7m was down to a much lower gain on interest rate swaps, reduced gains on property disposals and a higher interest charge. The interim dividend has been raised from 0.75p/share to 0.85p/share. Pubs were hit by wetter weather in the summer, but there was a recovery in September, so volumes were only 1% lower. There was an improved performance from hotels and spas, with weddings demand returning to past levels.
Ananda Developments (ANA) says a subsidiary has lodged a patent application in the UK, which covers cannabinoid formulation based on MRX2 with additional THC. This would be the fifth patent.
Black Sea Property (BSP) has completed the acquisition of Grand Hotel Varna, which includes three hotels and a beach marina resort. There was €10.3m raised through a placing at €0.016/share, plus a further €10.8m from a loan note issue. Elea Capital will own 26.2%. Black Sea Property has also taken its stake in Littoral Invest, which owns other properties in Varna, to 99.4%.
IamFire (FIRE) investee company WeShop has secured a partnership with digital investment management company Spring IM, which means that 200,000 customers will be onboarded to Spring’s digital service. WeShop customers will be able to set up ISAs for no cost and put any shares they have earned in WeShop while shopping into the ISA.
Substrate Artificial (SAI.B) increased interim revenues from €1.25m to €1.8m, while the loss fell from €14.5m to €2.46m, mainly due to a €11.5m impairment charge in the previous period.
S-Ventures (SVEN) has arranged a bridging facility of £1m, which is repayable in six months. The interest rate is 2%/month. There are still plans to raise at least £2.5m.
Castlefield Investment Partners reduced its stake in Capital for Colleagues (CFCP) from 41.9% to just under 39%. Seven of the company’s directors acquired a total of 593,963 shares at 57.5p each.
Psych Capital (PSY) has completed the acquisition of Shortwave Pharma Inc, which is developing therapies to address eating disorders. Rivki Stern is joining as chief executive and Roy Kait is also joining the board as a non-exec. Chairman Joseph Colliver has left the board.
EPE Special Opportunities (EO.P) had net assets of 291.98p/share at the end of October 2023.
AIM
Naked Wines (WINE) chief executive Nick Devlin has stepped down from the board, although he will continue to head up the US business until the end of peak trading, and chairman Rowan Gormley will take an executive role until a successor is identified. Nick Devlin being in charge of the US as well as the group as a whole is identified as the major problem of the group. Trading in the US is weaker than expected and group revenues could fall by up to 16%, while operating profit will be between £2m and £6m, compared with previous guidance of £8m-£12m. Sales have fallen in all the main regional markets with the 11% decline in the UK the best performance. The share price slumped by 37% to 28.65p, which is just above the all-time low from earlier in the week.
Fully listed Luceco (LUCE) is investing £1.75m in energy as a service provider eEnergy Group (EAAS) at 5p/share, which was a premium to the market price. Luceco will have a 9.1% stake. Luceco has been supplying LED lighting to eEnergy Group and some of the cash will go to settling trading balances. The company will continue to spend the same amount on Luceco lighting products, subject to price and availability. eEnergy Group has received approaches for the energy management division and there are exclusive talks with a potential buyer, which could generate more than £30m. This would be reinvested in the energy services business.
Yet another upgrade following a trading statement by cosmetics supplier Warpaint London (W7L). Current trading is better than expected and the company is selling through more retailers. The growth is across all regions. Full year sales should be at least £85m, up from £64m last year. Shore Capital raised its earnings forecast by 11% to 16p/share.
In the first quarter, Bangladesh-based Beximco Pharma (BXP) reported an 11% increase in pre-tax profit to BDT1.57bn with growth in domestic sales and exports. Inflationary pressure meant that gross margins were slightly lower. New production capacity is online and there is plenty of scope for growing sales without significant additional capital investment. This will make the business highly cash generative and it could be in a net cash position by 2026.
Time Finance (TIME) says trading is better than expected and Cavendish has upgraded its 2023-24 pre-tax profit forecast from £5m to £5.4m. That is equivalent to 4.4p/share. The smaller company finance provider increased its gross loan book to £180m. Arrears have remained flat.
Argentex (AGFX) admits that 2023 results will be 15% lower than expectations. This follows the departure of the chief executive and finance director. Revenues and EBITDA will be similar to 2022.
Myanmar Investments (MIL) is asking for shareholder approval to cancel trading on AIM. In 2019, the company took the decision to wind down its investment portfolio and political conditions in Myanmar are unfavourable, which is hampering realisations. There was $476,000 in the bank at the beginning of this week and management wants to conserve as much cash as possible. Leaving AIM will save $115,000/year.
Microsaic Systems (MSYS) has been unable to secure additional working capital and it plans to leave AIM as part of a cost cutting move, which is likely to mean that all staff will be made redundant. External contractors will be used to maintain production of mass spectrometer machines.
The CEPS (CEPS) share price has fallen because Chelverton Growth Trust plans to distribute its 26% shareholding to its own shareholders.
Specialist maintenance and compliance services provider Kinovo (KINO) increased revenues by 2% to £30.3m in the first half and gross margins improved. New regulations for electricals helped to boost higher margin demand. Canaccord Genuity maintains its full year pre-tax profit forecast at £5.8m.
MAIN MARKET
Stranger Holdings has completed the reverse takeover of a 70% interest in the Henkries uranium deposit and prospecting right in South Africa to form the renamed Neo Energy Markets (NEO). Dealings commenced on 9 November 2023 and a further £500,000 was raised at 1.25p each after the admission. Neo Energy Markets has a JORC compliant mineral resource at Henkries Central and Henkries North is 4.7m lbs U3O8 with a JORC compliant exploration target of 1.1-2m lbs at Henkries North. Less than 10% of the area has been fully explored. A 7,000-metre drilling programme is planned. The uranium mineralisation is hosted in shallow sediments, and it is generally within eight metres of the surface. That will keep the costs of mining down. If things go well the mine could be up and running in three years.
Shares in Critical Metals (CRTM) resumed trading after its annual report was published. The share price fell from 17p to 15p. Critical Metals has the funding to develop the Molulu project and a JORC compliant resource is expected to be published in the near future.
XP Power (XPP) raised £45.4m through a placing and offer at 1150p/share. Management has been trying to reduce costs to offset the lower revenues and capital spending cut back. Surplus stocks will be unwound, and the cost reductions could save up to £10m in 2024. There will be no dividends until the end of 2024.
Pineapple Power Corporation (PNPL) has agreed heads of terms for the acquisition of Ilios Hydrogen, which is a Canadian developer of hydrogen production plants.
Milton Capital (MII) continues to seek an acquisition with the focus on the energy sector. The standard list cash shell is assessing light to medium hydrocarbon exploration and natural hydrogen opportunities.
Standard list cash shell More Acquisitions (TMOR) says that it has the backing of 51.45% of the shareholders ahead of the requisitioned general meeting, which will still be held on 1 December.
Andrew Hore
