ISDX
Transport safety technology developer Wheelsure Holdings (WHLP) increased its revenues by 47% to £133,000 in the six months to February 2016. However, the operating loss edged up to £120,000. Orders are still being received from London Underground but at a slower rate than expected. There are more tube lines that can order the Tracksure range of fasteners. Orders are also coming in from other European countries. Royalty income from the US remains modest. Tax losses almost total £4.5m. Daniel Stewart is hopeful that Wheelsure could break even this year.
Crossword Security (CCS) has won a contract with the Ministry of Defence that will lead to the development of blockchain enabled smart documents. The contract was won with the University of Warwick. Hybridan has been appointed as broker.
V22 (V22O) has made £225,000 from selling half of its option interest in a company that owns the freehold to a building in South Bermondsey. V2 has already received £150,000 with £75,000 payable by the end of June. V22 retains an option over 15% of the holding company that owns the building. At 0.9p a share, V22 is valued at £300,000.
The acquisition of the Akoko prospecting licence by Goldcrest Resources (GCRP) has been terminated because Goldcrest had not been able to join AIM by the end of May. A revised sale and purchase agreement may be possible.
Social impact investor Inqo Investments (INQO) has taken a stake in a Zambia-based organic honey producer. Bee Sweet Honey uses a network of small farmers in northern Zambia with each farmer having an average of ten beehives. The honey is exported to the US and EU.
AIM
TSX-listed WSP Group Inc has launched an agreed bid for rival professional services provider Sweett Group (CSG). The offer is 35p a share in cash, which values Sweett at £24m. The combined business will be a stronger competitor in global markets and Sweett will enhance WSP’s project and cost management services. There will also be cross-selling opportunities
Graphene supplier Directa Plus (DCTA) got off to a strong start on its first day of trading. A placing had raised £12.8m at 75p a share for the Italy-based company and they ended the first day at 105.5p. Unusually for a graphene producer, Directa Plus already has significant sales of product although it still loses money. The company has been trading for more than one decade and there are a wide range of potential uses for its graphene products, which it manufactures itself. In recent times, the graphene (in various forms) has been used for bicycle tyres, ski-wear and environmental remediation.
TechFinancials Inc (TECH) grew its revenues from trading platform software licensing in 2015 but problems with regulation hit the revenues of the company’s own trading platforms. This meant that TechFinancials slumped from profit into loss. New joint ventures will help to boost revenues but they will take time to make a significant contribution. There is $3.4m in the bank and first quarter trading is in line with expectations.
Regenerative medical devices developer Tissue Regenix (TRX) says that the sales of wound care product DermaPure have exceeded expectations. Sales are building up in the US but the cost of the sales infrastructure and EU clinical trials mean that the group loss increased from £7.6m to £9.5m in the year to January 2016. Tissue Regenix has a strong balance sheet with £19.9m in the bank at the end of January 2016, thanks to the £19m placing at 19p a share, which was completed at the beginning of last year. Sales may begin in the EU could commence in this financial year.
Redx Pharma (REDX) continues to build a commercially-focused pipeline in oncology, anti-infectives and immunology. A development candidate has been selected for the potential treatment of pancreatic, head and neck and triple negative breast cancer. Human studies of RDX004 are set to start in early 2017. The pipeline continues to expand with plans to identify another development content by the end of 2016. There is pro forma cash of £14.4m.
Telecoms billing and CRM software supplier Cerillion (CER) increased its recurring revenues by 22% to £2.2m in the six months to March 2016. That is nearly one-third of total revenues of £6.85m, while underlying pre-tax profit improved by one-fifth to £703,000. The move into cloud-based services should enhance recurring revenues. There is also potential for acquisitions. Even though Cerillion has only been quoted for a few weeks it is paying a dividend of 1.3p a share.
MAIN MARKET
Standard listed CML Microsystems (CML) is acquiring China-based fabless semiconductor company Wuxi Sicomm Technologies for $11m in cash and shares. The wireless semiconductors supplier has around £11m in the bank so it can afford the acquisition. The deal will enable CML to address higher volume markets. Joint broker SP Angel has not updated its forecast yet. The 2015-16 figures should will be published on 14 June.
Illustrated book publisher Quarto (QTR) says that first quarter revenues have increased from $28.4m to $33.3m. This is a quieter period for the group and this year will be even more second half weighted. Net debt has fallen to $67.6m, compared with $77.6m 12 months earlier.
Standard list cash shell Senterra Energy (SEN) has secured a deal to acquire a sim-card technology business rather than an oil and gas business as originally envisaged. Singapore-based Oasis Smart Sim PTE had 2015 revenues of $13m with most of the revenues generated from 2G, 3G and 4G SIM cards. Senterra is providing a £500,000 loan to the acquisition target. The deal requires shareholder approval because it is outside of the company’s investing strategy. Trading in the shares has been suspended. Existing Senterra shareholders will end up with 15% of the group before any fundraising.
ANDREW HORE