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Quoted Micro 17 June 2024
AQUIS STOCK EXCHANGE
Samarkand (SMK) has sold its probiotic brand of Probio7 for £1.3m with an initial cash payment of £1.1m. This will provide working capital for the company’s other healthcare brands. Unsecured loans made by the directors to finance the acquisition of Optimised Energetics will be repaid.
Skin treatments developer Incanthera (INC) has moved up to the Apex segment following its recent rise in valuation. The appointment of John Howes as an additional independent non-executive director has also enabled the switch.
OTAQ (OTAQ) has won a contract with Ireland’s Seafood Development Agency for two Live Plankton Analysis System (LPAS) units to be installed and generate rental income until the end of 2024. One will be deployed with a seafood producer that has encountered Harmful Algae Bloom events. The system can identify the algae.
Oberon Investment (OBE) improved revenues by more than 50% in the year to March 2024 with strong financial planning income. The capital markets division had a tougher time, but activity levels are improving. Additional teams were added to the business, and they will generate additional revenues in 2024-25. Like-for-like growth could be more than 30% this year. There could be potential to spin-off fintech software business Logic.
Metals recycling company Majestic Corporation (MCJ) increased 2023 revenues by one-quarter to $29.4m. Pre-tax profit is 149% higher at $1m. There was cash of $653,000 at the end of 2023. The company is expanding into solar and battery materials.
Global Connectivity (GCON) 15%-owned associate Rural Broadband Solutions increased its stake in Voneus from 38% to 41% following the latest capital injection of £18m. The book value of the original 25% stake had been valued at 1.8p/share, so it is much higher now.
Kasei Digital Assets (KASH) has invested $100,000 into Rule 110 Inc for its seed and strategic funding round for the launch of the RealityNet protocol. This protocol enables users to rent out unused computing resources on their devices to the rest of the network.
Phoenix Digital Assets (PNIX) says 662.5 million shares were tendered by the close of the offer, but 625 million shares were accepted at a cost of £33.7m (5.39p each).
Tunch Kashif has reduced his stake in ChallengerX (CXS) from 17.9% to 6.9%. Flash Corp Technologies sold nearly all its 6.82% shareholding. Kenneth Jolly has taken a 4.73% stake. Geoffrey Miller has reduced his stake in TruSpine Technologies (TSP) from 9.03% to 8.24%. AIM-quoted Vela Technologies (VELA) has reduced its stake from 4.3% to 3.92%. Kevin Hastings has a 3.08% stake in Marula Mining (MARU). James and Alexandra Pace have a 3.01% stake in brewer Shepherd Neame (SHEP).
AIM
Linear generator technology developer Libertine Holdings (LIB) has terminated the formal sales process because it does not believe that there will be an offer by mid-June. There is still the prospect of a £2m cash injection at 2.1p/share from two Middle East investors. One of the investments would last the company until September and the full amount of money should last until June next year. There are still conditions that need to be satisfied and if it does not happen in the next couple of weeks then the quotation may be cancelled, and the business wound down.
R&Q Insurance Holdings (RQIH) is still trying to complete the sale of its Accredited business. Costs are mounting up as talks continue with regulator and other parties and it is hampering the overall business. This has hit the financial stability of the business. There could be an alternative to the original Accredited deal, but that involves the liquidation of the holding company. Slater Investments has reduced its stake from 11.7% to 10.3%.
NWF (NWF) says that 2023-24 trading is in line with expectations. Fuels volumes improved even though there was a mild winter. Margins did fall back. Food distribution was the strongest performer even though opening costs for the new facility held back the profit contribution. Feed volumes fell. Net cash was £10m at the end of May 2024.
Insurance businesses investor BP Marsh (BPM) has launched a new share buyback programme of up to £1m following annual results. In the year to January 2024, pre-tax profit improved from £27.6m to £43.6m. This was predominantly due to disposals of stakes in Kentro Capital and Paladin Holdings. There was £40.4m in cash, plus £49.5m of assets that were sold after the year-end, at the end of January 2024. NAV increased by 102.8p/share to 629p/share.
Landore Resources (LND) has raised £3.68m at 2.4p/share with strategic investor Luso Global Mining, a subsidiary of Mota-Engil, subscribing £1m. Alexander Shaw, who is the boss of the new investor will become chief executive of Landore Resources. The cash will fund drilling at the BAM gold project at Junior Lake in northwestern Ontario.
Helium One Global (HE1) has raised £8m at 0.5p/share. This will finance the deepening of Itumbula West-1well and the extended well test, as well as the development of the helium project in Tanzania. The extended well test should start in the third quarter.
Deltic Energy (DELT) has been unable to find a partner for the Pensacola project in the North Sea. This means that Deltic Energy cannot finance its share of the development costs and it is withdrawing from the licence and transferring its 30% share to Shell and ONE-Dyas. Canaccord Genuity has reduced its NPV10 target price to 100p.
The latest drilling results for the Basin lithium project means that Bradda Head Lithium (BHL) is nearer to receiving a significant royalty payment from the LRC. The latest mineral resource estimate is being calculated and it should be much higher than the current figure of 1.08MT of LCE. The figure could be tripled in the next few weeks.
Kibo Energy (KIBO) is not going ahead with last week’s planned restructuring and new strategy after consultation with shareholders. Not all the board changes will be made, and Kibo Energy is likely to focus more on oil and gas.
MAIN MARKET
The current board of Tirupati Graphite (TGR) managed to see off the requisitioners at the general meeting. It won all the resolutions by gaining around 48 million votes compared with around 38 million for its opponents. Michael Lynch-Bell has been appointed as chairman. This does not change the company’s financial predicament, which will have to be addressed before the company focuses on its “long-term ambition of providing 8% of the world’s global flake graphite demand by 2030”.
Castings (CGS) will not be able to maintain the strong performance of last year. In the year to March 2024, underlying pre-tax profit improved from £16.7m to £21.3m. Demand for heavy trucks has passed its peak and that will hit volumes. There can be a cyclicality to the demand and Castings will continue to be a strong cash generator. There will be a 7p/share special dividend and the shares go ex-dividend on 20 June. The normal final dividend of 14.19p/share will be paid one month later.
Palace Capital (PCA) is launching a tender offer for shares at 250p each. It will spend up to £21.7m.
Andrew Hore
==========
SMALL CAP AWARDS 2024
Company of the year
IQGeo (IQG)
Aquis company of the year
Equipmake
IPO of the year
Onward Opportunities (ONWD)
ESG of the year
Eden Research (EDEN)
Transaction of the year
Journeo (JNEO) – MultiQ acquisition
Technology company of the year
Kooth (KOO)
Dividend hero/ Investor relations success
Cohort (CHRT)
Diversity, inclusivity and engagement
TPXimpact (TPX)
Executive director of the year
Chris Smith – McBride
Analyst of the year
Charles Hall – Peel Hunt
Broker of the year
Cavendish Capital Markets
Lifetime achievement
David Stirling
Quoted Micro 27 May 2024
AQUIS STOCK EXCHANGE
Samarkand (SMK) says revenues will be slightly lower than expected – with a decrease of up to 4% – but the ecommerce services provider’s EBITDA will be halved in line with expectations. Owned brands generated 46% of revenues with the decline coming in third party brands. Samarkand has acquired Optimised Energies, which has brands Natures Greatest Secret and BeNatural, for £600,000 in cash and deferred consideration of £700,000. The acquired company made EBITDA of £300,000 last year. Executive directors have lent £400,000 to the company for fund the acquisition.
Aquis-quoted Phoenix Digital Assets (PNIX) is proposing a tender offer of up to £33.7m at a share price of 5.39p/share. That covers up to 57.9% of the current share capital. The tender price is equivalent to the current NAV since the recovery in Bitcoin and adjusted for potential tax. The tender offer is open until 13 June. The company has available cash of £40.6m. Phoenix Digital Assets also has 17.4 million shares in Flex Labs Inc (FLEX) after it acquired AI software company IO+ PTE, for 110 million shares in total. Supernova Digital Assets received 771,930 shares in Flex Labs.
Brewer Adnams (ADB) improved 2023 sales 3% to £66.3m, but the pre-tax loss increased from £2.3m to £4m. Net debt was £15.9m at the end of 2023 and there is still some headroom in the loan facility despite the review of how to finance the long-term future of the company. Off trade volumes were 14% higher. First quarter group sales were 11% ahead. Cost pressures are easing.
Flow battery technology developer Invinity Energy Systems (IES) raised £56m at 23p/share via a placing with £25m committed by the UK Infrastructure Bank and £3m from Korean Investment Partners. The open offer raised an additional £1.38m out of the £6.6m of shares that were on offer.
Arbuthnot Banking (ARBB) says trading is in line with expectations, although loan growth has been minimal. Specialist lending has been growing faster.
Metals One (MET1) has terminated the farm-in agreement with Gunsynd (GUN).
SuperSeed Capital (WWW) reduced the outflow from operating activities from £306,000 to £144,000. The NAV of the fund of funds company improved from 97.31p/share to 113.33p/share. That was helped by an unrealised gain of £297,000.
Paul Ryan has sold his 3.9% stake in Mortgage Chat (MCAI). Non-exec CP Freeman bought 500 shares in Hydro Hotel, Eastbourne (HYDP) at 948p each.
AIM
Telecoms testing equipment supplier Calnex Solutions (CLX) reported 2023-24 revenues two-fifths lower at £16.3m and it fell into loss. The final dividend was maintained at 0.62p/share. The telecoms market remains subdued, and Calnex Solutions is moving into new markets, such as defence. The distribution agreement with Spirent ends in July, but management is advanced with its plans to replace this source of income. Net cash declined to £11.9m because of higher inventory levels and capitalised R&D. A return to profit is expected this year and the cash level should be maintained.
Automotive interior components supplier CT Automotive (CTA) returned to profit in 2023, while net debt was reduced to $3.8m. Liberum expects underlying pre-tax profit to improve from $8.3m to $10.2m in 2024, even though revenues are forecast to decline. Improved efficiency is helping to boost margins. The Mexico factory is operating at 50% of capacity so there should be further improvement as this figure increases.
Bigblu Broadband (BBB) has sold its Nordic operations to management – including Bigblu Broadband chief executive Andrew Walwyn who is stepping down – at an enterprise value of £1.3m. There could be contingent consideration. Finance director Frank Waters becomes chief executive. The disposal leaves operations in Australia, which could be sold or floated on the ASX, and a stake in Quickline. Cavendish forecasts a 2023-24 pre-tax profit of £3m.
Coatings company Hardide (HDD) has appointed Matt Hamblin as the new chief executive, who has been a non-exec and previously ran a similar coatings business. The interim figures had been flagged. The pre-tax loss increased to £960,000. Lower depreciation means that the full year loss will not be as high as originally thought and it could be similar to the interim loss. Hardide has been EBITDA positive for the past two months. There is cash of £700,000 in the bank.
Another strong trading statement from Kinovo (KINO) with profit and cash ahead of expectations. The property services provider says 2023-24 revenues were £64.1m and net cash is £400,000The pre-tax profit estimate has been raised from £5.8m to £6.1m. Next year’s profit forecast has been raised from £6.3m to £6.6m. Most of the costs relating to the guarantee for DCB have been paid.
Energy and water efficiency services provider Eneraqua Technologies (ETP) reported 2023-24 results in line with the trading statement earlier in the year. The business moved from a pre-tax profit of £10.1m to a £6m loss because local government contracts were delayed. Cost savings have been put in place and additional work has been won so Eneraqua Technologies could move back into profit this year. A change of government could lead to additional incentives for energy saving projects.
Education software and services provider Tribal Group (TRB) has finally reached a settlement with Nanyang Technological University. This dispute has been hanging over the business for years. Tribal Group will pay £3.1m over 18 months. A further exceptional charge for the dispute will be taken in the first half of 2024.
MRI device developer Polarean Imaging (POLX) launched a heavily discounted placing, subscription and open offer. The placing and subscription raised £8m at 1p/share with £2m of that invested by NUKEM Isotopes and £1.6m by Bracco – both existing investors. Up to £2m could be raised from an open offer. The cash is being used to accelerate commercialisation of the XENOVIEW technology and further development.
Pennant International (PEN) has raised £1.51m at 25p/share. The training and software products supplier is trading in line with expectations, but order conversion has been slower than anticipated. The cash will fund the development and integrations of software products.
Watkin Jones (WJG) returned to profit in the first half to March 2024. The student accommodation and rental property developer generated an improvement in revenues from £153.9m to £175.1m. There is no dividend as cash is conserved. Borrowings have been reduced and net cash is £44m.
B90 Holdings (B90), which provides online marketing services to the gaming sector, says Oddsen.nu, an affiliate that is part of the group, has secured fixed listing fee marketing agreements that will generate income of €200,000 during 2024. There could be additional income on top of this based on marketing performance.
Scientific instruments manufacturer Judges Scientific (JDG) says that there is unlikely to be a material revenues contribution from coring contracts at the Geotek subsidiary. The potential contract is unlikely to commence until near to the end of 2024 and then make a significant contribution in 2025. Trading is subdued against tough comparators. WH Ireland still expects a full year pre-tax profit of £33.8m, although that assumes a stronger second half.
Secure payments company PCI-Pal (PCIP) has been successful in the Court of Appeal for the unfounded case brought by Sycurio against its patents. This means that £1.1m of cash should be released from escrow. The finding upheld the original court judgment. PCI-Pal will seeking further costs. The full ruling will become available in a few days.
Piling contractor Van Elle (VANL) expects 2023-24 revenues to be £140m, which is a like-for-like reduction of 12%. Last November, Rock & Alluvium was acquired, and its volumes are 30% higher than pre-acquisition. Housing and infrastructure sectors are expected to recover and a move into energy transmission will help the overall improvement for the business. The order book was worth £36.8m at the end of March 2024. Net cash is £5.5m.
Healthcare communications technology developer Feedback (FDBK) says delays in the NHS procurement process means that 2023-24 revenues will be lower than expected at £1.2m. Management hopes that the contracts will be secured in 2024-25. There was still £4.3m in the bank at the end of April 2024.
Chamberlin (CMH) has been placed in administration. Coal miner Bens Creek (BEN) has also gone into administration.
Victorian Plumbing (VIC) has acquired rival Victoria Plum for £22.5m. The business had been in administration and costs are already being reduced, so it should break even in the second half.
MAIN MARKET
James Gundy, chief executive of shipbroker Braemar (BMS), bought 6,600 shares at 290.5p/share following the full year results. Pre-tax profit fell from £18m to £14.6m on maintained revenues. The total dividend was raised from 12p/share to 13p/share. The new financial year started with an order book of $82.6m.
Power products supplier XP Power (XPP) received an indicative bid approach at £19.50/share. XP Power has rejected the proposal by Nasdaq-listed Advanced Energy Industries.
Admiral Acquisition (ADMR) has agreed to buy critical asset integrity and testing services provider Acuren for $1.85bn from American Securities. The business generates EBITDA of $190m.
Associated British Engineering (ASBE) had net assets of £391,000 at the end of March 2024, including cash of £419,000.
Andrew Hore
Quoted Micro 20 May 2024
AQUIS STOCK EXCHANGE
Digital assets investor KR1 (KR1) reported a decline in 2023 revenues from £20.2m to £8.65m, but larger gains on digital assets mean that the reported profit was not down as much at £14.7m, from £19.5m. The introduction of the bitcoin ETF has helped the valuation of digital assets in the diversified portfolio. NAV was 132.05p/share at the end of March 2024, which is higher than the figure at the end of 2023. The company has been buying back shares at a discount to the NAV.
Aquaculture technology developer OTAQ (OTAQ) plans to raise up to £2m from a convertible loan note issue. The conversion price will be 3p/share. A reduced loss is expected for 2023, even after exceptional costs. The 2023 results should be announced by the end of June. First quarter revenues are 19% ahead. The live plankton analysis system has been launched.
Brewer Adnams (ADB) increased annual sales by 11% with growth in on-trade and off-trade business. Management is still exploring ways of funding growth.
All Things Considered (ATC) has acquired 55% of music management company Raw Power, whose artists include The Damned, for £1.41m in cash. This takes the artists managed by the combined group to 80. The existing shareholders will retain the rest of the shares. Some of these were involved with Sanctuary Group, which was quoted two decades ago. In the year to February 2023, Raw Power made a pre-tax profit of £326,000 on revenues of £2.27m. Phantom Music Management holds loan notes in the acquired business and is subscribing £200,000 for shares in All Things Considered, which had net cash of £10m at the endo of 2023. Last year. All Things Considered increased revenues by 156% to £24.1m, but there was a swing from profit to loss, although there was a one-off profit in the previous year. There was also a larger loss from the minority interest in livestreaming company Driift.
Clarify Pharma (PSYC) reported a reduced loss in the year to November 2023. NAV fell from £1.41m to £597,000, including cash of £167,000. Investments were valued at £706,000.
EPE Special Opportunities (EO.P) had net assets of 347.96p/share at the end of April 2024.
Res Privata has increased its stake in WeCap (WCAP) from 7.28% to 9.69%. Silverwood Brands (SLWD) director Andrew Gerrie invested £20,000 in shares at just over 26p each. Newbury Racecourse (NYR) director Dominic Burke has bought 1,125 shares at 5.449p each. Tap Global Group chief executive Arsen Torosian acquired 33.75 million shares at 0.681481p each.
Secured Property Developments has changed its name to Mollyroe (MOY).
AIM
Nexus Infrastructure (NEXS) reported a decline in revenues in the six months to March 2024, but the order book is improving. Revenues generated by the infrastructure services provider fell from £51m to £25.8m and the company slipped into loss. The interim dividend is maintained at 1p/share. There was a cash outflow, but cash is still £9.3m, which is not much less than the market capitalisation. The order book is worth £72m, but the recovery in revenues may not happen until next year.
B90 Holdings (B90) has refocused on business to business gaming operations. This will enable a reduction in costs and could move the company into profit in 2024. Net cash was Euro800,000 at the end of 2023 and the cash outflow should end in the second half. There is an experienced management team. In the medium-term the company should become a consolidator in the sector.
Cerillion (CER) continues to win significant orders and there was a major win following the end of the first half. Revenues grew 10% to £22.5m in the first half. The software company is on course to improve pre-tax profit from £16.8m to £17.3m in the year to September 2024. Net cash could rise to £30.4m.
Semiconductors designer Sondrel (SND) is raising £5.63m at 10p/share and plans to cancel the AIM quotation. ROX Equity Partners is subscribing for the shares and its loans will be converted into a further 28.7 million shares, taking its stake to 49.3%. This requires government and shareholder approval. Miles Woodhouse will be ROX Equity Partners’ representative on the board. A new chief executive is being sought. Sondrel recognises it needs to manage projects better.
Orchard Funding Group (ORCH) believes that it is not worth being quoted on AIM and the insurance premium finance provider intends to cease paying dividends. The cash can then be used to make a tender offer to shareholders when appropriate.
Active Energy Group (AEG) says that its audit may not be completed by June, which would lead to a suspension of trading in the shares. Cash is running out and management may have to consider liquidating the company. This depends on whether the CoalSwitch assets are sold. There is currently $500,000 in the bank. There is also a 4.1% stake in green technology investor Alpha Prospects, but whether this is really worth the £680,000 book value is questionable.
A trading update from professional services provider FRP Advisory (FRP) shows revenues 23% ahead at £128m and much higher than forecast EBITDA of £37m. Work on corporate administrations is rising, but all five of the divisions grew. Net cash was around £30m at the end of March 2024. Cavendish has raised its 2023-24 pre-tax forecast to £33m with a further improvement to £34.2m in 2024-25.
Phoenix Copper (PXC) says that it has conditionally raised $80m from a bond issue to fund the construction of the Empire copper-gold mine in Idaho. The cash will be drawn down in tranches. The arrangement fee is paid for by the issue of 33.9 million shares. NIU invest is acquiring the bond and it will have the right to subscribe for a 25% stake in Phoenix Copper over a five-year period.
Lower gold production meant that Anglo Asian Mining (AAZ) revenues fell from $84.7m to $45.9m, which meant that it swung from pre-tax profit of $7.5m to a loss of $32m. There were $18m of non-cash impairment charges of capitalised exploration costs and the value of the Libero Copper and Gold investment. All-in sustaining cost of gold production jumped from $1,064/ounce to $1,510/ounce. Total production was 31,821 ounces.
Retail software provider itim Group (ITIM) has secured a five-year contract renewal with Majestic Wine. This is a multi-million pounds contract. This follows the publication earlier in the week of 2023 figures showing revenues 15% higher at £16.1m. Annual recurring revenues were £13.2m. Revenues are expected to increase to £17m this year, but itim will still lose money before a potential move into profit in 2025.
Kohlberg Kravis Roberts has made a recommended bid of 480p/share for IQGeo (IQG), which values the geospatial software company at £333m. KKR believe it can accelerate the growth of IQGeo.
Revolution Bars (RBG) says that it has not received any takeover bid or offer for assets as a whole as part of the formal sale process. There are offers for certain assets, but none would result in any return to shareholders. A restructuring and fundraising plan is still possible, and the board is still open to other plans, possibly by Nightcap (NGHT).
E-commerce firm Huddled (HUD) reported a 2023 pre-tax profit of £13m, but that was due to gains on the disposals of Immotion and Uvisan. The underlying pre-tax loss was £2.29m. Cash of £12.7m was returned to shareholders out of the disposal proceeds, but there was still £4.27m in the bank at the end of 2023. The new core business Discount Dragon was acquired in October, so the figures do not provide a good indication of ongoing operations. Discount Dragon generated revenues of £2.1m in the first quarter of 2024.
Horizonte Minerals (HZM) has appointed FRP Advisory as administrator. The nominated adviser has resigned.
MAIN MARKET
Flavourings supplier Treatt (TET) reported a dip in interim revenues to £72.1m because of destocking, but underlying pre-tax profit improved from £7.3m to £7.6m. There is good momentum in the second half.
Standard list shell Sivota (SIV) has ended acquisition talks with an online technology platform in the travel sector.
Andrew Hore
Quoted Micro 6 May 2024
AQUIS STOCK EXCHANGE
Good Life Plus (GDLF) has traded strongly since joining Aquis and raising cash for marketing. The luxury prize draw company increased the number of subscribers from 21,000 at the end of 2023 to 30,000. Churn has been reduced.
Invinity Energy Systems (IES) raised £56m at 23p/share with £25m committed by the UK Infrastructure Bank and £3m from Korean Investment Partners. There is also an open offer to raise up to £6.6m. The share price slipped 6.12% to 23p. IES will use £30m to increase capacity ahead of the launch of the latest version of the Mistral flow battery.
KR1 (KR1) gained shareholder approval for the market acquisition of up to 14.99% of its shares. NAV was 132.05p/share at the end of March 2024, down from 134.6p/share one month earlier. There was £1.96m in income from digital assets during the month.
Apollon Formularies (APOL) has sent a general meeting notice for 28 May to gain approval of the cancelation of the Aquis quotation. The company is selling its IP to a Canadian company.
Rogue Baron (SHNJ) has acquired Eight Vodka for £70,000 in shares at 0.5p each. Eight Vodka is distilled eight times in Ecuador.
Trading in Silverwood Brands (SLWD) was restored following the completion of a capital reduction. Phoenix Asset Management increased its stake from 0.94% to 29.9%. In the first quarter a rebranding of Balmonds has disrupted sales. The costs of acquiring Cosme Science hit profitability of Sonotas.
One Health Group (OHGR) says it did better than expected last year with annual revenues improving from £20.5m to £23m. Net cash was £4.7m at the end of March 2024. There was a 13% increase in NHS patient referrals for treatments. New five-year contracts have been secured with the two largest customers.
RentGuarantor Holdings (RGG) says first quarter revenues were 62% ahead and the number of tenant contracts was 38% higher.
Investment company MaxRets Ventures (MAX) reported net assets of £19,000 at the end of October 2023, down from £497,000. There was no new investment during the year. A transformative acquisition is being sought.
Hydrogen Future Industries (HFI) more than halved the interim cash outflow from operating activities to £234,000. Ther was £263,000 in the bank at the end of January 2024, but £612,000 has been raised since then. Testing of the prototype wind turbine and the electrolyser has gone well.
Substrate AI (SAI) generated revenues of $8.6m in 2023. There was $4.42m in the bank.
Hacienda Management has taken a 7.48% stake in Supernova Digital Assets (SOL). Pete Mills increased his stake in Oscillate (MUSH) from 3.02% to 4.03%. DXS International (DXSP) chairman Robert Sutcliffe bought 100,000 shares at 1.46p/share.
AIM
Trinity Exploration & Production (TRIN) has agreed a bid from fellow AIM-quoted Trinidad oil and gas company Touchstone Exploration (TXP), which is offering 1.5 shares for every Trinity share. The Trinity shareholders will own one-fifth of the enlarged company. The combined group will be in a stronger position to make investments in new production. The Touchstone Exploration share price is 4.85% lower at 39.25p, valuing each Trinity share at 58.875p – the share price is 50% higher at 54p.
Alpha Financial Markets Consulting (AFM) has confirmed that BridgePoint Advisers has made a bid approach and Cinven is considering making a bid. Revolution Bars Group (RBG) has received interest from Nightcap (NGHT), which is assessing the situation and options include a bid or acquisition of some sites or subsidiaries.
Electric Guitar (ELEG) moved from the standard list to AIM following the reverse takeover of 3radical on 3 May. It is the first in a planned series of acquisitions in the digital marketing sector, where regulatory and market changes, such as the blocking of third-party cookies, provide significant growth opportunities. 3radical was acquired for 61.2 million shares valued at £1.28m. A fundraising generated £1.32m at 2.1p/share and that valued the company at £4.7m. 3radical was set up by the founders of campaign management software provider Alterian at the end of 2011 The shares had been suspended at 2.1p and they fell to 1.8p when trading recommenced on AIM.
Multi-channel retailer TheWorks.co.uk (WRKS) moved from a premium listing to AIM. The board felt the company was too small for the cost and regulatory burden of the Main Market. One of the attractions of AIM is that the company will no longer be classified as a Public Interest Entity and it will be able to choose an auditor from a wider range of firms. Singer forecasts a slump in pre-tax profit from £10.1m to £1m in the year to April 2024.
Cornish Metals (CUSN) has published a preliminary economic assessment of the South Crofty tin project in Cornwall. There is an after-tax NPV8 of $201m at a tin price of $31,000 /tonne. Pre-production capital requirement is $177m, which is higher than previous estimates, and there should be 14-year mine life. Life of mine all in sustaining cost is estimated at $13,661/tonne. Planned first production is in 2027.
Horizonte Minerals (HZM) has enough cash until 17 May and senior lenders have agreed to extend waivers on loans, including deferring interest payments, until 15 May. These lenders have security over the company’s assets. Horizonte Minerals has guaranteed the debt of the subsidiary that owns the Araguaia project. Discussions with creditors and investors continue in an attempt to achieve some recovery value for creditors. That may include the disposal of the Araguaia project. None of the proposals are likely to recover value for shareholders.
Arrow Exploration (AXL) grew average production from 1.3mboe/day in 2022 to 2.2mboe/day in 2023 and revenues increased from $28.1m to $50.6m, which was slightly lower than forecast. There was cash of $13m at the end of 2023 and this fell to $12m at the end of March 2024. Production has reached 2.9mboe/day in March, while drilling activity will lead to further increases in the medium-term. Canaccord Genuity has cut its 2024 revenues forecast from $103.9m to $98.6m and net cash is expected to be $17m at the end of 2024.
Trading at property services provider Kinovo (KINO) is ahead of expectations with organic growth of 23% in the year to March 2024. Underlying pre-tax profit should be more than £6m, excluding costs related to the DCB contracts, which were guaranteed by Kinovo when it was sold, still to be completed.
Mark Halpin has stepped down as chief executive of managed IT services provider CloudCoCo (CLCO) and MXC Guernsey, which holds a 10.6% stake, has extended its loan notes to 31 August 2026 in return for a £550,000 fee. The amount outstanding on the loan notes is £5.85m. MXC can also appoint an executive director and Ian Smith becomes interim chief executive. The shares returned from suspension following the release of figures for the year to September 2023 showing revenues 7% ahead at £26m. The loss was flat at £2.6m. There was a cash inflow from operating activities. Net debt was £6.3m at the end of September 2023.
Brake discs developer Surface Transforms (SCE) raised £6.5m fundraising at 1p/share. There will be a one-for 1.76036319 open offer at the same price. That could raise £2m. The cash will finance the scale up of manufacturing. Factory capacity will be increased to £75m. This year’s revenues are forecast to be £17.5m.
Gift wrap and stationery supplier IG Design (IGR) did better than expected in the year to March 2024 with margins recovering and pre-tax profit improving from $9.2m to $25.9m, compared with a forecast of $20.5m, even though revenues fell. Net cash nearly doubled to $95m. It appears the recovery is gathering pace. Management believes that margins could return to previous levels this year and an operating margin of more than 6% in 2026-27, suggesting a pre-tax profit of around $50m.
IT distributor Northamber (NAR) is acquiring Tempura Technology and Tempura Communications, which distribute unified communications products, for £6.02m in cash and 181,818 shares. There is £2.64m of the cash consideration contingent on EBITDA in the years ending June 2025, 2026 and 2027. This is a profitable business that has been growing organically.
Heavy mineral sands project developer Kazera Global (KZG) says recent changes at the National Nuclear Regulator in South Africa mean that it will have to provide additional information on how it will meet financial obligations. This should be funded by cash flow. A response is expected shortly and that will allow heavy mineral sands production to start in Alexander Bay, South Africa.
Oil and gas producer Jadestone Energy (JSE) reported a $91.3m loss for 2023 due to asset impairments, lower oil prices and higher interest costs. Capital investment has increased net debt to $110.5m by the end of March 2024. Average production in the first quarter of 2024 was 17,200 boe/day, which was hit by the Australian cyclone season. Production guidance for 2024 is 20,000-22,000 boe/day.
MAIN MARKET
Castings (CGS) did better than expected in the year to March 2024 and Canaccord Genuity upgraded its pre-tax profit forecast from £27.1m to £28.2m. Margins improved in the second half. Net cash is £32m.
Cybersecurity firm Narf Industries (NARF) is accelerating work on capabilities uniquely effective in battling a new generation threat. Developed was funded through a $2.3m contract from DARPA.
Andrew Hore
Quoted Micro 22 April 2024
AQUIS STOCK EXCHANGE
Coffee shop chain Cooks Coffee (COOK) increased UK store sales by more than one-fifth and overall group sales were 18% higher at £27.9m. There is positive operating cash flow. Results for the year to March 2024 will be published on 31 May.
Vanadium flow battery developer Invinity Energy Systems (IES) has interest from several potential strategic investors. This has delayed the process. Linking with the right strategic partner is important to the growth of the business.
Marula Mining (MARU) has been awarded a mineral dealer’s trading licence in Kenya. This enables the buying, selling and export of manganese ores. A $1.8m exploration programme is planned at the Larisoro manganese mine. There have been £2m worth of shares issued at 3.75p each to pay for equipment and expenses.
Investment company Gunsynd (GUN) reported a slump in NAV from £3.28m to £1.74m in the year to January 2024. The focus is resource companies and the share prices have performed poorly. There was cash of £113,000 at the end of January but there have been share sales since then. Director Donald Strang bought 2 million shares at 0.1196p each.
KR1 (KR1) has invested $550,000 in Mode Labs, a modular layer 2 blockchain network operator.
Phoenix Digital Assets (PNIX) directors and other investors have exercised 71.25 million warrants at 1p each, raising £712,500. This dilutes the NAV and the share price declined 8.75% to 3.65p.
Supernova Digital Assets (SOL) director Nicholas Lyth bought 3.5 million shares at 0.2p each.
Diesel fuel additives supplier SulNOX Group (SNOX) trebled quarterly revenues to £315,000 in the fourth quarter and it is 282% ahead of the same time last year. Full year revenues were £555,000. There are already committed sales of £105,000 in the current quarter.
Capital for Colleagues (CFCP) had NAV of 87.32p/share at the end of February 2024. There is cash of £686,000.
Clarify Pharma (PSYC) has sold its listed stakes with the shareholding in Beckley Psytech remaining. This marks a change in focus to Filecoin staking nodes. The company’s name will change to File Forge Technology.
The NHS has renewed two contracts with One Health Group (LON: OHGR). This covers 2,000 surgical procedures each year.
Black Sea Property (BSP) has signed licence agreements with Nobu Hospitality to build two Nobu properties in Bulgaria. The properties will be on the company’s existing sites.
Visum Technologies (VIS) is no longer acquiring Socrates Imaging.
EPE Special Opportunities (EO.P) has net assets of 324.07p/share.
Quantum Exponential Group (QBIT) has announced a further adjournment of its a general meeting to gain shareholder approval for leaving Aquis to 17 May.
AIM
Market conditions were poor in February and March for online retailer Sosandar (SOS) and that meant that fourth quarter sales were flat. Sosandar has been reducing promotional activity and focusing on full price sales. This is helping margins to increase with a retail margin of around 62%. There was a loss of around £200,000 in the year to March 2024. Trading has improved in April and a move back into profit is anticipated for this year.
Horizonte Minerals (HZM) has been unable to restructure debt or obtain other finance to complete the Araguaia nickel project. Low spot prices for nickel put off investors. Management has to consider its options, which include selling the project or liquidation of the assets. Discussions with creditors continue.
Billington (BILN) surprised the market with a special dividend of 13p/share on top of the normal dividend of 20p/share for 2023. The structural steel supplier’s revenues grew 53% to £132.5m, while pre-tax profit jumped 130% to £13.4m. Lower steel prices boosted profit. Net cash is £22.1m, so the dividend will not make much of a dent in that cash pile. All parts of the group were profitable, but improved profit came from the structural steels division.
Investment company Seed Innovations (SEED) is using part of the proceeds of the £2.4m final payment for Leaf Gaming to pay a 1p/share special dividend. The shares will go ex-dividend on 25 April. That will leave Seed Innovations with more than £4m in cash. There is also an ongoing £850,000 share buy back programme which lasts until the end of May and less than 50% of that cash has been spent.
Carbon fibre brake technology developer Surface Transforms (SCE) has set out worst case scenarios for this year. Sales are expected to grow by at least 111% and possibly up to 165%. This will depend on the company’s ability to produce and deliver to customers. Scrap is being reduced. Zeus has withdrawn its forecasts until it talks to the company. It had forecast a 177% increase in revenues to £23m.
Legal finance provider Manolete Partners (MANO) says total revenues improved from £20.8m to £26.3m. Realised revenues were lower because there was a large one-off case completion in the previous year. There was a positive contribution from unrealised revenues. This led to a return to profit in the year to March 2024. Net debt is £12.25m. The higher level of insolvencies is leading to greater demand for financing of cases.
Surgical Innovations (SUN) reported record revenues in 2023 and it has set out the measures that should return it to profitability. The surgical instruments supplier increased revenues from £11.3m to £12m, but it fell back into loss. There has been an 11% reduction in employees and investment in robotic equipment to improve efficiency. The second quarter order book is strong. Two distribution agreements have been extended. Singer forecasts a £300,000 loss for 2024, but it will reassess the figure at the time of the first half trading statement.
Chain supplier Renold (RNO) traded much better than expected in the year to March 2024. The 2023-24 pre-tax profit forecast has been raised from £19.2m to £21.7m, while next year’s figure has jumped from an admittedly cautious £17.4m to £22.7m. Improved efficiency means that margins are rising. Net debt is also coming down faster than anticipated with £24.7m at the end of March 2024 and there could be a dividend next year. Investors are becoming less concerned about debt and the pension deficit and concentrating on the business.
Metallurgical coal miner Bens Creek (BEN) is applying for its US subsidiaries to enter Chapter 11 bankruptcy protection. Bens Creek major shareholder Avani Resources will commit to provide a debtor-in-procession financing facility so the operations can be restructured. If BC Carbon does not pay the cash due, then Bens Creek will have enough cash until mid-May.
A first quarter update set out the progress made by Oracle Power (ORCP) and there are plans to commence drilling on the Northern Zone project in Australia in two months’ time and this will help towards a maiden resource estimate. The share price has strengthened since the option to acquire the Black Rock Valley copper and silver project in Australia was announced.
Chief executive Lisa Anson continues to buy shares in Redx Pharma (REDX). She acquired a further 189,500 shares at an average price of 10.01p each. She currently holds 751,683 shares. Unsurprisingly, the departure from AIM has been approved by shareholders and this will happen on 30 April. Shareholders have approved the cancelation of the AIM quotation of Molecular Energies (MEN) and trading will stop on 29 April. JP Jenkins will provide a matched bargain facility.
Peter Gyllenhammar has taken a 3.33% stake in packaging company Robinson (RBN).
MAIN MARKET
Severfield (SFR), which reported an upbeat trading statement for the year to March 2024. Liberum increased its pre-tax profit estimate for the year from £34.3m to £35.8m due to better margins in the commercial and industrial division. Steel and energy prices have fallen back in the past year and 80% of energy costs are fixed for 2024-25.
TFI Friday UK franchisee Hostmore (LON: MORE) is planning to merge with the core TFI Friday Inc business. This will be an all-share deal and Hostmore shareholders will own 36% of the enlarged group. The enterprise value is expected to be £177m and the US management will take over the main roles. Combined revenues would be £490m and the group should generate annual free cash flow of £30m.
Pineapple Power Corporation (PNPL) is proposing the appointment of Dr Graham Cooley as chairman, conditional on the completion of the acquisition of Ilios Hydrogen Canada. Another former ITM Power director Barry Cunliffe will also join the board.
Residential property developer and construction company J Smart and Co (SMJ) reported a decline in pre-tax profit from £260,000 to £205,000. The interim dividend is maintained at 0.96p/share.
Andrew Hore
Quoted Micro 15 April 2024
AQUIS STOCK EXCHANGE
Voyager Life (VOY) has terminated its merger with Northern Leaf following a decline in its share price making it difficult to fund the transaction. The cannabis products supplier says that there are other potential partners. Additional finance is required to automate production.
Supernova Digital (SOL) says NAV was 0.36p/share on 3 April 2024. A tender offer is planned when there are additional liquid funds. Director Nicholas Lyth bought two million shares at 0.19p each.
Capital for Colleagues (CFCP) has sold shares in Computer Application Services for £257,000 and it retains a 28.9% stake.
Marula Mining (MARU) issued 2.8 million shares to pay for its stakes in the Nyoriinyori and NyoriGreen graphite projects The total consideration is £350,000. This follows assay results that confirm high-grade and broad graphite mineralisation on each of the projects. Marula Mining is also about to start supplying columbite-tantalite and feldspar from the Blesberg mine in South Africa to Fujax UK.
Substrate AI (SAI) is forecasting 2024 revenues of $20.6m and pre-tax profit of $1m. This is due to organic growth.
Business assurance provider Adsure Services (ADS) has announced a maiden dividend of 0.49p/share and the shares go ex-dividend on 18 April. Trading has been strong in the second half.
KR1 (KR1) has announced a general meeting on 29 April to seek authority to acquire up to 14.9% of its share capital.
Hydrogen Future Industries (HFI) has raised £60,000 at 5p/share. This is on top of the £552,000 raised earlier in the year. Inqo Investments (INQO) raised £1.3m at 70p/share. Dermatological technology developer Incanthera (INC) raised £174,000 from the exercise of warrants at 10p. Crushmetric (CUSH) placed shares raising £54,000 at 12.5p each.
Valereum (VLRM) has appointed Stanford Capital Partners as broker. Spirits company Rogue Baron (SHNJ) has appointed New York-based MD Global Partners as joint broker.
Rikki Devlin has increased his stake in Oscillate (MUSH) from 3.04% to 4.21%. Michael Prior sold 645 shares in brewer Shepherd Neame (SHEP) at 695p each.
AIM
Self-storage operator Lok’nStore (LOK) has agreed a 1,100p/share cash bid from Belgium-based Shurgard Self Storage. That values the company at £370m. The share price has risen above the level of the bid.
Churchill China (CHH) still managed to increase its profit in 2023 even though the third quarter trading was weak, and revenues fell. Europe was the bright spot, with growth in ceramics sales to hospitality customers in the main markets. The UK was flat, and the rest of the world sales were lower. The dividend has been raised from 31.5p/share to 36p/share. Capital investment will improve efficiency and margins. Investec forecasts flat 2024 pre-tax profit of £10.8m and that assumes an upturn in the UK.
There were no additional negatives in the Bango (BGO) 2023 figures following its disappointing trading statement earlier in the year. In fact, the previously announced foreign exchange loss was not taken through the income statement. Revenues grew from $28.5m to $46.1m with a full contribution from DOCOMO. The reported loss jumped from $4.8m to $10.2m. The NewDeep joint venture is being wound down so that stop the losses from it, while the technology can be used in the core business. Net debt is $3.9m. Capex continues at a high level and there is an unused overdraft facility of £3m that can be used. First quarter revenues are up by one-fifth and cost savings will help Bango achieve the anticipated move into profit this year. Annualised recurring revenues are $11m.
CleanTech Lithium (CTL) chief executive Aldo Boitano has resigned, although he will be a consultant, and Steve Kesler has taken over on an interim basis. This follows the revelation he entered into a loan agreement with his shareholding in the company as security in August 2023, but this was not revealed at the time. He transferred his 9.4 million shares to a custodian account nominated by the lender. It is unclear if any of the shares have been sold.
Cosmetics supplier Warpaint London (W7L) says trading continues to outperform expectations. First quarter sales are 28% higher at £23.5m. This has been achieved by adding stores and broadening the range and there has been no price rise since early 2022. Margins have also improved. Shore believes that its current pre-tax profit forecast of £19.1m for 2024 is likely to be 10% too low. The broker will not upgrade its forecast until the 2023 results are published on 24 April.
Coal miner Bens Creek (BEN) is laying off workers at its mine in West Verginia, which will be operated on a care and maintenance basis. There are 44 employees being laid off and that is described as “a substantial number” of the employees at the mine. Management is in discussions with largest shareholder and offtake partner Avani Resources to provide further finance. Earlier in the week, the company said it had secured a one-off sale of 20,000 tons of coal to Avani Resources for $1.2m, of which $1m has been received in advance of delivery. This is lower quality coal, and the deal is separate to the offtake agreement. This did not prove enough to alleviate the poor financial position of the US-based metallurgical coal miner.
European Green Transition (EGT) is seeking to build up a portfolio of mining and processing projects that can help to progress the move to cleaner energy in Europe. There is potential for grant income from the EU for European critical minerals assets, as well as looking at non-dilutive ways of raising money for individual projects. A placing and offer raised £6.46m at 10p/share. Trading commenced on 8 April. The share price ended the week at 12p. Pro forma net assets are £7.29m, which includes cash of £5.95m. The Olserum rare earth element project in Sweden is the core asset.
Fulcrum Metals (FMET) has acquired the Sylvanite gold tailings project in Ontario. This is a former producing mine, and it is near to the previous tailings investment the Teck-Hughes gold tailings project. There are plans to create a tailings hub. The historic tailings resource estimate at Sylvanite is 67,051 ounces.
First quarter revenues at carbon brake technology developer Surface Transforms (SCE) were £3m, which was lower than target. However, production yields improved in March when revenues were £1.5m. Revised delivery schedules have been agreed. Cavendish has raised its 2024 forecast loss to £3m because of higher scrappage costs and there are likely to be higher working capital requirements. There should still be net cash at the end of 2024.
Drug developer e-therapeutics (ETX) is raising £28.9m at 15p/share from M and G and Richard Griffiths. It is also the latest company to decide to leave AIM. In the future, a Nasdaq listing may be possible.
Active Energy Group (AEG) has been reviewing its operations and how to secure funding. It believes it cannot raise the cash it requires to construct a CoalSwitch biomass fuel plant and commence production. A buyer is being sought for the CoalSwitch assets. If that happens, then the company would become a shell.
Oracle Power (ORCP) has secured an option to acquire 100% of the Blue Rock Valley copper and silver project in Western Australia. The option cost £30,000 in shares. If the option is exercised there will be 913.2 million shares issued – valued at £200,000.
Weak third quarter demand at castings company Chamberlin (CMH) hit profitability. Some new programmes were delayed, and other demand was lower than forecast. The renewable offshore energy sector remained strong. There has been some recovery in the fourth quarter and costs are being reduced. Prices increases have been made.
Harvest Minerals (HMI) has made a rare earth elements discovery at its Arapua fertiliser project in Brazil. Rock samples analysis shows rare earth elements and further work will be done to firm up the opportunity by assessing previous drilling. There has been a better start to the year for sales of fertiliser.
Contract research and infectious disease study services provider hVIVO (HVO) reported 2023 results broadly in line with the trading statement. The order book covers 90% of the forecast revenues of £62m, with a strong first half expected.
MAIN MARKET
Kitchenware retailer ProCook Group (PROC) reported fourth quarter trading showing 4.8% year-on-year growth in revenues to £13.2m with the decline in ecommerce revenues slowing. Like-for-like growth was 1.5% ahead. Full year revenues were flat at £62.6m, although retail revenues were 9% higher. Net debt is £700,000.
Critical Metals (CRTM) has issued £1.6m of convertible loan notes. This will help to finance the road to the Molulu copper cobalt project in the Democratic Republic of Congo and fund initial drilling to establish a JORC resource. Management is also near to securing an $11m loan guaranteed by the US government. This will fund construction of the mine and leave additional cash for investment in other projects. Production at Molulu could start before the end of this year. The plan is to produce 10,000 tonnes of copper each month.
Standard list shell Aura Renewable Acquisitions (ARA) had £661,000 in the bank at the end of 2023. It raised £1m in April 2022. The company is still seeking an acquisition in the renewable energy sector.
Narf Industries (NARF) has won a $500,000 cybersecurity contract with the US Department of Energy. This is part of a project to strengthen the resilience of energy infrastructure.
Andrew Hore
Quoted Micro 8 April 2024
AQUIS STOCK EXCHANGE
Phoenix Digital (PNIX) is benefiting from the rise in cryptocurrency values. At the end of March 2024, NAV was £74.5m, equivalent to 7.38p/share. The NAV was 4.67p/share at the end of 2023. The NAV could be reduced by up to 1.1p/share due to a tax charge.
Gunsynd (GUN) has raised A$453,000 from selling shares in Charger Metals, Pacific Nickel Mines and Rincon Resources. It retains small stakes in each of the companies.
Capital for Colleagues (CFCP) investee company Bright Ascension has received £2.25m in the latest funding round. The company’s original £750,000 loan investment in the space software developer will generate interest of 10%/year.
In the six months to December 2023, video technology company Visum Technologies (VIS) lost £342,000 on revenues of £85,000. There are plans to secure further funding. Several new installations are planned, including in the US.
Cadence Minerals (KDNC) has raised £500,000 at 3p/share. The new shares come with a warrant exercisable at 5p. The cash will be invested in the Amapa iron ore project in Brazil.
Tectonic Gold (TTAU) generated an initial £84,000 in revenues in the six months to December 2023. The cash outflow from operations was reduced from £95,000 to £75,000. Net debt was £43,000. An acquisition target has been identified in Ghana.
Coinsilium Group (COIN) has launched a new series of Web3 industry reports. These will provide a greater understanding of the Web3 space and the blockchain technology underpinning it.
Brewer Adnams (ADB) says it continues to explore ways of raising funds, including a share issue or sale of freehold assets.
First York has put 12 new buses into services that feature the Equipmake (EQIP) electric powertrain. This follows a trial with a convertible prototype vehicle.
William Potts has resigned as chief investment officer of drug-based mental health treatments developer Psych Capital (PSY) but will remain as an adviser.
Tap Global Group (TAP) chairman David Hunter bought an initial 148,347 shares at 1.35p each.
AIM
Video games publisher Frontier Developments (FDEV) is trading in line with expectations before the benefit of the profit from the sale of RollerCoaster Tycoon 3 publishing rights. Those rights returned to Frontier Developments in 2018 under the original publishing agreement. The game has been generating $1.5m profit/year. Atari has acquired the rights for $7m with an initial payment of $3m. There was no value in the books for the game. This has boosted the cash position to £23.4m.
Xeros Technology (XSG) announced a fundraising late on Thursday. There has been £4.5m raised at 1.5p/share and up to £1m more could be raised via a retail offer that closes on 19 April. This will strengthen the balance sheet and provide cash to finance current contracts and commercialise the laundry technologies developer. The first royalty income could be received in the second half of 2024. EBITDA breakeven could be achieved before the end of the year.
Online gaming firm Gaming Realms (LSE: GMR) is growing revenues in Europe and North America. In 2023, revenues were 26% ahead at £23.4m with content licencing growth of 30%. Brand licencing revenues more than doubled to £1.3m, while social gaming revenues were lower despite additional spending on this part of the business. Pre-tax profit improved from £3.5m to £5.2m. There was £9.28m generated from operating activities and that more than covered the £4.63m of capitalised spending on new games and the technology platform. Net cash is £7.46m.
Strong second half trading at Cavendish Financial (CAV) meant that full year pro forma revenues grew from £50.5m to £54m. Private and public M&A activity was buoyant. There was cash of £20.8m at the end of March 2024. Annualised savings of £7m have been made with more to come.
Diagnostic tests developer genedrive (GDR) benefited from NICE’s recommendation of the CYP2C19-ID test for genotype-guided clopidogrel treatment in the NHS. It is the preferred platform for UK point-of-care testing for the management of ischemic stroke and transient ischaemic attack patients. It is advised that these patients should have a genetic test before antiplatelet treatment.
Gelion (GELN) syas the energy density testing of its lithium-sulphur battery technology shows that it far exceeds lithium-ion batteries. The 9.5 Ah pouch cell achieved an energy density of 395 Wh/kg, which 60% higher than lithium-ion batteries. This means that the batteries could be lighter and cheaper than rival technologies, as well as being made from more abundant materials, but there is some way to go to get to commercialisation. Gelion has cash of £7.5m. The share price is back above last November’s £4.4m fundraising price of 24p/share.
Redx Pharma (REDX) is the latest AIM company that has decided to leave the junior market. A plan to reverse into a Nasdaq shell fell through last year and there is limited liquidity because two shareholders own more than 84% of the company. There are already enough votes to guarantee that the proposal is passed at the general meeting on 19 April. Last October, £14.1m was raised at 26p/share. Management believes that it will be easier to raise money as a private company.
Portable oxygen technology developer Belluscura (BELL) has suffered from the distraction and delays in the acquisition of standard list shell TMT Acquisition. This delayed the launch of the DISCOV-R product until June and the acquisition of components. Manufacturing is being moved to InnoMax in China. Cash flow breakeven has been delayed until the first quarter of 2025. A line of credit is being sought to cover non-recurring expenses. There is $3m in cash at the end of March 2024. The 2024 revenues will be lower than the previous range of $16m-$19m. There will be impairment charges in the 2023 accounts.
Steppe Cement (STCM) plans to return 1.5p/share after a capital reduction is agreed by shareholders. That did not offset the disappointing trading statement from the Kazakhstan cement supplier. First quarter revenues fell from $10.8m to $8.4m due to a combination of lower sales and reduced selling price. The market decreased by 12%, but Steppe Cements market share fell from 12.7% to 11.5%.
MAIN MARKET
Pinewood Technologies (PINE) has confirmed details of the £358m cash return to shareholders. A general meeting will be held on 22 April to gain shareholder agreement to the 24.5p/share dividend and a 20-for-one share consolidation. The company retains a motor dealer software business.
Picton Property Income (PCTN) is selling Angel Gate, London for £29.6m. That is 5% higher than the valuation. This is the second largest asset in the portfolio. The cash will be used pay off a credit facility that has a higher interest rate than others. The occupancy of the remaining portfolio is 91%.
Andrew Hore
Quoted Micro 1 April 2024
AQUIS STOCK EXCHANGE
Incanthera (INC) has published an update on its distribution deal with Marionnaud. The first order for Skin + CELL products will generate revenues of £2m with 50,000 bottles of skin cream to be supplied for sale in Austria and Switzerland. A second order will be even bigger. The management projects revenues of £10m for the year to March 2025 and this would make it profitable. The range is being increased to five products and they are all part of the initial launch. Revenues could grow to £33m the following year. There is potential for licence deals in other countries.
Watchstone Group (WTG) says a subsidiary’s VAT appeal was dismissed even though it satisfied four out of five elements. A decision will be made on whether to appeal the judgement.
TruSpine Technologies (TSP) intends to issue a conversion notice to loan note holders. The conversion price is a 130% premium to the share price prior to the convertible loan note approval by the directors. A £200,000 debenture has been used to subscribe for convertible loan notes. Geoffrey Miller has increased his stake from 6.88% to 7.24%.
Quantum Exponential Group (QBIT) has announced a further adjournment of its a general meeting to gain shareholder approval for leaving Aquis. Investors have approached the quantum technology investment company and offered to make a substantial investment. Stuart Woods has stepped down from the board.
Cadence Minerals (KDNC) investee company European Metals Holdings (EMH) says that the Cinovec project in the Czech Republic is in the process of completing a definitive feasibility study, but it will not be completed in the first quarter. There is potential to improve the lithium processing. Cadence Minerals has increased its stake in the Amapa iron ore project in Brazil to 34%. A study should reduce costs and improve productivity of the proposed mine.
S-Ventures (SVEN) increased interim revenues from £8.4m to £9.6m but reported a higher loss from continuing operations. The bakery business was profitable, but this did not offset losses and impairment costs for other businesses. There is no further news on the proposed sale of operations to AIM-quoted Riverfort Global Opportunities.
KR1 (KR1) had net assets of 134.6p/share at the end of February 2024. There was income generated of £1.63m.
Arbuthnot Banking Group (ARBB) increased its pre-tax profit from £20m to £47.1m and the total dividend was raised from 42p/share to 46p/share. Bad debts were lower than forecast. NAV is 1547p/share. The profit is likely to fall this year.
Global Connectivity (GCON) is amending the terms of warrants issued when it floated and extending them by two years to 20 April 2026. The exercise price is being reduced to 1.5p. Management is exploring potential investments.
Marula Mining (MARU) has commenced exploration at the Larisoro manganese mine in Kenya.
Valereum (LON: VLRM) has raised £300,000 at 6p/share from its chairman and is planning a larger fundraising in the third quarter of 2024.
Jenny Hanlon has been appointed as chief executive of brewer Adnams (ADB). She is currently finance director.
Tap Global Group (TAP) generated trading payment volumes of £181.6m in 2023. That generated revenues of £2.02m, but the loss was still £1.07m.
EPE Special Opportunities (EO.P) had net assets of 324p/share at the end of January 2024. There was £15.3m in cash offset by £4m in loan notes repayable on 23 July.
Gunsynd (GUN) investee company Aberdeen Minerals is raising £3m at 8.5p/share from Central Asia Metals with a further £2m that could be raised from the exercise of warrants at 11p/share. This deal requires regulatory approval.
Lift Global Ventures (LFT) investee company Trans-Africa Energy has received funding of £12m from an African investor. The first energy infrastructure investment is in Ghana. Lift Global Ventures’ core investor relations business generated cash in the first half, although there was a cash outflow for the group as a whole.
Aiden Keegan has been appointed chief executive of Cooks Coffee Company (COOK).
Philip Blows reduced his stake in Supernova Digital Assets (SOL) from 10.6% to 7.98%. There was £68,000 in the bank and £1.95m in investments at the end of October 2023. NAV was £2.93m.
Daniel Thwaites (THW) director RAJ Bailey bought 15,000 shares at 71p each.
AIM
Marine technology developer Windward (WNWD) has cut its loss and is heading towards profitability. The 2023 revenues were $28.3m, up from $21.6m. Windward started 2023 with an annual contract value of $25.5m and that has risen to $34.5m, while the 2024 forecast revenues have been edged up from $34.5m to $35.1m. Requirements for tracking cargo and ensuring that sanctions are complied with are helping to increase demand, particularly from commercial clients. Commercial revenues increased to 30% of the total for 2023, but government revenues are also growing.
Grocery distributor Kitwave Group (KITW) has made its latest acquisition, and this will be earnings enhancing. Total Foodservice Solutions is a food wholesaler with two depots based in the north of England. The customer base includes pubs, restaurants, universities and care homes. The gross cost is £21m and that is reduced to £17m when cash in the business is taken into account.
Strong growth at the Billi filtration systems helped Strix (KETL) have a better second half, but the limited recovery in kettle controls and lower consumer goods sales meant that pre-tax profit was slightly lower at £21.9m. There is no dividend. There should be an improvement in profit this year, but it will still be well down on the 2021 figure. Net debt was £83.7m and could fall below £79m by the end of 2024.
Good Energy (GOOD) had a strong performance in 2023 due to high energy prices, but 2024 will not get that benefit and energy supply profit will fall sharply. In 2023, pre-tax profit doubled to £5.7m, but the 2024 forecast has been downgraded from £8.4m to £6.7m. The energy services business, including solar and heat pump installation, is being built up and it will become a more significant profit contributor over the next couple of years making the group performance less volatile.
Floorcoverings manufacturer Airea (AEIA) increased sales of its Burmatex-branded product by 14% to £21.1m. Pre-tax profit was flat at £1.4m, although it included a small valuation gain in the latest year. Higher finance costs relate to the pension scheme and operating profit increased. The net asset value is £14.9m, including net cash of £3.4m. Strong cash generation can cover the £5m investment in new capacity and a 10% increase in the dividend to 0.55p/share. The new capacity should be ready in early 2025 and will enable Airea to take advantage of own brand opportunities for clients.
Revolution Bars Group (RBG) is assessing its options that include restructuring the business or selling all or part of the operations. There are currently no bidders. Luke Johnson is involved in talks concerning a fundraising.
Semiconductor designer CML Microsystems (CML) is being hampered by lower than expected shipments as clients reduce stocks and this is continuing into the new financial year. In the year to March 2024, revenues will be slightly lower than expectations at £23m and underlying EBITDA will be £6.4m, compared with a forecast £6.8m, due to more sales of lower margin products. Full year pre-tax profit will be just under £3m. The balance sheet remains strong with net cash of nearly £18m. The full benefits of the Microwave Technology acquisition, which has performed well, will show through over the next couple of years.
Horizonte Minerals (HZM) published the latest financing estimate for the Araguaia nickel project. The cost to complete is $454m, but the full funding required is $567m-$592m, including pre-production and transaction costs. Existing liabilities are $418, and they require restructuring. More cash will be required by mid-April. Interest payments are being deferred. Existing shareholders are not in a strong position.
A more positive trading statement from film and video translation services provider ZOO Digital (ZOO) as management believes that demand should recover following the disruption of recent strikes in Hollywood. Revenues of $40m are now expected for the year to March 2024. A new film and TV distribution client has been won and there is greater visibility of work. The company still might not move back into profit in 2024-25, though. There is potential disruption from a craft workers strike in Hollywood.
Boilers developer Inspirit Energy (INSP) is near to completing the four electronic updates for its waste heat recovery system. The team is relocating back to the UK. The cash outflow was stemmed in the six months to December 2023.
Infrastructure India (IIP) shares returned from suspension when the interims to September 2023 were published. The board is proposing a winding-up of the company as it disposes of its assets and the share quotation will be cancelled if the proposals are passed at the AGM. Net liabilities are £217.4m.
Drug discovery company C4X Discovery (C4XD) also plans to cancel its AIM quotation and re-register as a private limited company if it gains shareholder approval at a general meeting on 15 April. Shareholders owning 57% of the shares are in favour. Management believes that it will be easier to raise funds as a private company and it will save money. C4X Discovery has raised £63m on AIM. In August 2022, £5.7m was raised at 25p/share. There is still £20.8m in the bank. In the six months to January 2024, revenues were £24.6m, due to milestone payments, compared with £1.7m in the first half of the previous year. The company is generally loss-making without substantial milestone payments.
Oil and gas producer Molecular Energies (MEN) is cancelling its AIM quotation because it does not believe it is worth the cost. The company should save £500,000/year. Chairman Peter Levine, who owns 29.2%, suggests that he may offer to buy shares of some other investors in the future, but there are no immediate plans to offer an exit prior to the cancellation. Green House Capital will no longer be spun off on AIM.
Infection protection technology developer Byotrol (BYOT) has been quoted for nearly 19 years and it has decided to leave AIM. Revenues from continuing products could improve from £3.7m to £3.9m this year. No further IP revenues are expected this year. Some IP was sold to Tristel (TSTL) and along with an early termination of another licence generated cash of £800,000, but minimum guaranteed royalties will be written down by £550,000 in the balance sheet. Even before that, there will be a higher loss in 2023-24. The business needs to be restructured and reduce costs and believes there will be more flexibility as a private company.
MAIN MARKET
Quantum dots developer Nanoco (NANO) generated interim revenues of £4m, including the recognition of £3m of Samsung licence income, up from £1.6m. Net cash was £54.5m at the end of January 2024. Second half non-Samsung revenues should be higher.
First Tin (1SN) had a cash outflow from operations of more than £2m in 2023. There was also £6.4m spent on exploration activities. There is £4.66m left in the bank.
Cizzle Biotechnology (CIZ) has raised £620,000 via a placing at 2p/share. This will fund the first proposed commercial test for its lung cancer test. The £500,000 loan facility with E3 Fund will be terminated.
Andrew Hore
Quoted Micro 25 March 2024
AQUIS STOCK EXCHANGE
S-Ventures (SVEN) has agreed to sell its food and snacks business in return for shares in AIM-quoted RiverFort Global Opportunities worth £3.5m. That would leave S-Ventures as an investment company with shares in the acquirer. Sales for the 12 months to September 2023 were £17.4m, rising to the £21.6m in the 15 months to the end of 2023. Net debt was £7.1m at the end of September 2023. An additional £3m of loans have been agreed, including £1m from RiverFort Global Opportunities.
Marula Mining (MARU) has signed a long-term offtake agreement with Fujax UK for the Blesberg lithium and tantalum mine in South Africa. This an agreement for 100% of production until the end of 2026, with a minimum of 50,000 tonnes at a grade of 6% lithium. There is an option for a further three years. A mining right has been received from the authorities for the plans to expand the stockpile reprocessing operations.
Brewer Shepherd Neame (SHEP) improved like-for-like retail sales by 6.2%, although beer volumes fell 10.5% with own beer volumes down 16.7%. Overall, interim revenues grew 4% to £89m and underlying pre-tax profit was 10% ahead at £3.8m. The brewing division returned to profit. The interim dividend was 5% ahead at 4.2p/share. Beer volumes continue to decline, while the retail sales growth rate has slowed.
Gunsynd (GUN) shares rose 17.9% to 0.165p on the back of an institutional investor investing $1m ($750,000 in cash and $250,000 in support services) in the US spirits subsidiary of Rogue Baron (SHNJ), where it currently has a 17.45% stake. Rogue Baron has also raised £20,000 at 0.5p/share.
Aquis Stock Exchange owner Aquis Exchange (AQX) increased revenues from £19.9m to £23.7m, while pre-tax profit rose from £4.5m to £5.2m. The Aquis Stock Exchange revenues improved from £1.6m to £1.8m. The main growth came from technologies and data. Panmure Gordon forecasts 2024 pre-tax profit of £6.2m.
Macaulay Capital (MCAP) reported a fall in net assets from £1.44m to £1.36m at the end of 2023. There was an exit from the investment in Qualification Check which reduced the reported loss. There are seven portfolio companies. There is a pipeline of potential transactions.
Cadence Minerals (KDNC) says that the capital spending optimisation programme has been completed at the Amapa iron ore project. Savings of $63.2m have been identified and production could be 5% higher at 5.5 Mtpa of iron ore concentrate.
Supernova Digital Assets (SOL) has completed the acquisition of Hyperslot PTE for £225,000 in shares at 0.15p each. Andrew Offit increased his shareholding from 14.1% to 15.2%.
Arsen Torosian has replaced David Carr as chief executive of Tap Global Group (TAP). He is the largest shareholder and was previously chief strategy director. Steven Borg will become finance director.
KR1 (KR1) has invested $600,000 in Moondance Labs, which is building Tanssi, which helps appchain deployment.
Substrate Artificial Intelligence (SAI) has signed up FINRA-registered California-based bank GT Securities to identify potential partners for its Subgen AI subsidiary, which has launched Serenity Star, an ecosystem for scaling generative AI. The company has raised Euro500,000 from a convertible bond issue.
Secured Property Developments (SPD) is changing its name to Mollyroe and it is adopting s new investment strategy focused on the technology sector. There will also be a 20-for-one share consolidation.
Steve Hutchinson has taken his Oscillate (MUSH) stake above 3%. TruSpine Technologies (TSP) chairman Geoffrey Miller has increased his shareholding to 7.24%, while Oberon Investments raised its stake to 12.6%.
Good Life Plus (GDLF) has appointed Tennyson Securities as corporate broker.
AIM
Capital equipment manufacturer Mpac (MPAC) had a stronger second half and revenues improved from £98m to £114m, while pre-tax profit recovered from £3.5m to £7.1m. There was growth in parts and services revenues. The order book was worth £72.5m at the end of the year. The customer base is being broadened. There should be further recovery this year.
Educational software and services provider Tribal Group (TRB) is still hampered by its dispute with NTU, which is currently in mediation. The failed bid for the company also held back sales to potential clients. Even so, annualised recurring revenues grew 13% to £15.1m. Full year revenues moved from £83.6m to £85.8m, while pre-tax profit recovered from £3.7m to £10.7m.
Roadside Real Estate (ROAD) shares soared 129% to 8p after it sold part of its stake in Cambridge Sleep Sciences to CGV Ventures 1 for £6m. The total stake cost £2.7m and Roadside Real Estate still owns 65%, having sold a 10% stake, so it still has to be consolidated. Management is considering selling the rest or demerging the company so that it can concentrate on its core property interests.
Digital media company XLMedia (XLM) is selling European and Canadian gaming assets to Gambling.com for an initial $37.5m with potential deferred consideration of $5m. Some of this cash may be paid out to shareholders. These assets generated 2023 revenues $21.4m and underlying EBITDA of $6.6m out of estimated group 2023 revenues of $50m and EBITDA of $12m. Pro forma net cash is likely to be around $35m, after taking account of deferred consideration of $4m payable for past acquisitions. Cavendish estimates that XL Media is worth £48m, including the cash.
Biodegradable and antimicrobial plastic additives developer Symphony Environmental Technologies (SYM) has raised £1.4m at 3.5p/share and will raise up to £500,000 more through a PrimaryBid retail offer. The issue price was well above the market price. Chief executive Michael Laurier is subscribing £105,000. Net debt was £740,000 at the end of February. The additional cash will fund the scale-up of the business and provide working capital during trials by potential customers.
Blue Star Capital (BLU) reported a slump in NAV from £11.4m to £5.33m at the end of 2023. That includes cash of £63,000. Writing down the valuations of Dynasty Media & Gaming and Sthaler were a large part of the decline in NAV. Another investee company, SatoshiPay, is undertaking a formal sales process. This stake is valued at £4.65m.
Live Company Group (LVCG) returned from suspension following the announcement of a planned refinancing and sale of majority interest in StartArt. Creditors are being settled in shares and a £1.77m convertible loan provided by the chairman, as well as converting some of his loan notes. A placing raised £352,000 at 1p/share. There could be more cash to come from strategic investors.
Digital payments business Boku (BOKU) increased 2023 revenues by 30% to $82.7m and they are expected to increase to $95m this year. The wallets business grew 153%, albeit from a lower base. The local payments network is being built up and will be a major factor in growth, especially as margins are better. The direct carrier billings business continues to grow and remains the main generator revenues for the time being. The company has more than $70m in cash.
Employee benefits and insurance provider Personal Group Holdings (PGH) reported slightly better 2023 figures than expected with revenues of £49.7m and pre-tax profit recovering to £5.9m. The dividend was raised from 10.6p/share to 11.7p/share. That is well covered by cash generation. Cash was £20.1m at the end of 2023. The insurance business did particularly well.
Three rail clients delaying orders has hit prospects for LPA Group (LPA) and it is unlikely to do any better than breakeven this year – a pre-tax profit of £800,000 was previously forecast on a 6% reduction in forecast revenues.
Light Science Technologies (LST) has received a grant worth £188,000 for a project involving the company’s SensorGROW technology.
Saturn Resources has increased its bid for Shanta Gold (SHG) to 14.85p/share, up from 13.5p/share, valuing the miner at £156.1m. Eligible shareholders will receive a dividend of 0.15p/share on 26 April.
Stem cell-based treatments developer ReNeuron (RENE) has failed to come to an agreement with creditors and the financial uncertain means that it has appointed administrators from Cork Gully. Negotiations continue with creditors and potential providers of finance.
MAIN MARKET
Higher losses from the ReZorce recyclable packaging business masked progress at foams manufacturer Zotefoams (ZTF), where pre-tax profit moved up from £12.5m to £13.1m on flat revenues. That included an operating loss of £4.36m, up from £1.89m, from the MuCell Extrusion division that includes ReZorce. The total dividend is 7.18p/share.
Property investor Town Centre Securities (LSE: TOWN) managed to edge up its net tangible asset value to 286p/share at the end of 2023, due to the 150p/share tender offer last year. There was a 4% decline in property values. Loan to value has risen to 50.3%. The interim dividend is maintained at 2.5p/share.
TheWorks.co.uk (WRKS) is moving from the Main Market to AIM. The plan is to gain shareholder approval to move on 3 May. This should help to reduce costs.
Esken Ltd (ESKN) has appointed administrators from AlixPartners because its restructuring plan was no longer commercially viable. The restructuring of London Southend Airport will continue.
First Tin (1SN) says regional exploration confirmed upside potential at Pound Flat and Battery Hill prospects in the Taronga tin project.
Andrew Hore
Quoted Micro 18 March 2024
AQUIS STOCK EXCHANGE
Aquis-quoted cannabidiol products supplier Voyager Life (VOY) has revealed plans to merge with Northern Leaf, which wanted to float on AIM but is running out of money. The deal should value the combined group at £5m – the Voyager Life share price is unchanged at 11p – if deferred consideration is paid in full. That requires Northern Leaf to generate revenues of more than £5m by March 2025. Jersey-based medical cannabis supplier Northern Leaf was the second company to be awarded a UK commercial high THC licence – the other was former AIM company GW Pharmaceuticals. Prior to 2023, the company had raised £16m over three years. Northern Leaf raised £3m in pre-IPO cash via a preference share issue in April 2023, followed by at least £1m raised via a convertible loan note.
Aquis Exchange (AQX) is working with Richard Croft of Martley Capital to establish a new segment of the Aquis Growth Market that focused on real asset backed investments. This could launch in the second half. The Aram segment will be open to commercial property, infrastructure and forestry asset owners. Richard Croft ran a company that was quoted on the International Property Securities Exchange (IPSX), which closed last year. Aquis Exchange has also secured a contract with the Central Bank of Colombia with technology for the operation of the government bond market. This should go live in 2026.
Wishbone Gold (WSBN) says drilling at the 100%-owned Cottesloe project in Western Australia indicates a large sediment hosted base metal mineralised system. These base metals can be used in lithium-ion batteries. There are highly anomalous lead-zinc and silver levels. The drilling has been in the south of the prospect area and drilling will switch to the northern area.
Quantum Exponential Group (QBIT) has adjourned a general meeting to gain shareholder approval for leaving Aquis. Investors have approached the company and offered to make a substantial investment.
Cadence Minerals (KDNC) investee company Evergreen Lithium has identified large lithium targets from soil sampling at the Bynoe project in the Northern Territory, Australia. Cadence Minerals has a 8.7% stake in Evergreen Lithium.
Greece-based dry bulk shipping company Seaenergy is piloting the SulNOxEco fuel conditioner made by SulNOx Group (SNOX).
Marula Mining (MARU) says its partner NyoriGreen has applied for eight graphite mining licences and one prospecting licence in Tanzania. This could be granted in the second quarter.
Substrate AI (SAI) has completed the acquisition of 21% of software developers BINIT and DELTANOVA for a total outlay of €2.1m.
Vinanz (BTC) has acquired ten Bitmain Antminer S21 200TH/s miners for North America. They should be operational within four weeks.
SuperSeed Capital (WWW) says the NAV was maintained at 113p/share at the end of 2023. Management expects to make two new investments in the first quarter. Cash was more than £99,000 at the end of 2023.
TruSpine Technologies (TSP) has raised £427,000 through a share placing at 1.5p each and convertible loan note issue. More cash can be raised through further convertible issues. The board is reviewing the business plan.
Cooks Coffee Company (COOK) intends to raise cash to invest in its Esquire chain, digital technology, acquire independent cafes and repay debt. It wants to raise up to NZ$1.76m at the equivalent of 9.55p/share.
Chris Akers continues to build his stake in Asimilar (ASLR) ahead of the exit from the Aquis Stock Exchange. The shareholding rose from 13.4% to 14.1%. Gunsynd (GUN) has sold its 4.75% stake in Oscillate (MUSH). Inteliqo finance director Raymond Smart has acquired 104,126 shares at 15p each.
Martin Walton has stepped down from the board of MaxRets Ventures (MAX) and Luciano Maranzana has been appointed as a director.
AIM
Cloud telephony provider LoopUp Group (LOOP) did reasonably well during Covid lockdowns, but it has found trading difficult since then. Management says it wants to leave AIM because it is difficult to raise cash. LoopUp needs to rise £9m, which management feels it cannot raise on AIM, but it four investors are willing to subscribe £6.2m if LoopUp goes private. In August 2016, the original placing price was 100p when £8.5m. Including that cash, LoopUp has raised more than £70m since joining AIM.
A 90p/share bid for SmartSpace Software (SMRT) has been announced. The bid approach for smart building technology company from Sign In Solutions Inc was revealed earlier this year and the rival bidder pulled out. This recommended offer values SmartSpace Software at £28.4m.
Gaming machines hardware and displays supplier Nexteq (NXQ) reported a 5% drop in 2023 revenues to $114.3m, but improving margins enabled pre-tax profit to rise 45% to $14.7m. The final dividend is 3p/share. The cash pile has increased to $27.9m. Mid-range gaming platform sales grew the most last year, while Densitron has benefited from sales of its newer broadcast equipment. The underlying gaming computer market is growing.
Pawnbroker H&T (HAT) reported strong growth in profit and the trading statement was reassuring for the current year. The pawnbroking book grew 28% to £128.9m. Group 2023 revenues were 27% ahead at £220.8m. Retail and other services were the only parts of the business making a lower profit contribution. Pre-tax profit was up from £19m to £26.4m. This enabled a rise in the dividend from 15p/share to 17p/share.
MTI Wireless Edge (LSE: MWE) was hit by a decline in the Israeli shekel against the US dollar and that meant that 2023 revenues were slightly lower at $45.6m. Pre-tax profit increased from $4.59m to $4.65m. There was a reduction in potential contingent consideration for the remaining shares in PSK, partly offset by a goodwill write down. There is a positive outlook for government demand for PSK services. The balance sheet remains strong with cash of $8.1m. The final dividend has been raised by 3% to 3.1 cents/share.
Ondine Biomedical (OBI) is making faster progress than expected. The Steriwave sterilisation technology is deploying in a further eight healthcare facilities. Ottawa hospital is expanding the use of Steriwave to combat hospital acquired infections in spine surgery patients. A study estimated a net saving of C$2,600 per surgery and infection rate dropped by two-thirds. Discussions continue with potential distributors.
Horizonte Minerals (HZM) revealed that the subsidiary that holds the Araguaia project has been granted an injunction which provides 60 days to work on restructuring and negotiate indebtedness. This provides additional time to deal with creditors. Horizonte Minerals continues to try to negotiate a financing.
Symphony Environmental Technologies (SYM) has been boosted by a positive report from the US Environmental Protection Agency that pro-oxidant masterbatches “could significantly reduce the persistence of plastic pollution without creating undesired by-products”. This is based on a scientific evaluation and is a positive thing for the company’s d2w technology.
Renalytix (RENX) has raised £7.8m at 20p/share and this should be enough to fund the company until the fourth quarter of 2024. This will give time for the formal sale process to make progress. A large diagnostics company has made a bid approach to kidney disease diagnostics developer Renalytix. This sparked the formal sale process, so that the company can assess whether there are other potential bidders. It is also possible that there could be a decision to stay independent.
MAIN MARKET
Packaging manufacturer and distributor Macfarlane Group (MACF) has acquired Allpack Packaging Supplies for up to £3.25m. It manufactures protective packaging, and it will extend the range of the group.
Cybersecurity company Narf Industries (NARF) has won a contract the Intelligence Advanced Research Projects Agency. The $1.3m contract is for the ReSCIND programme to better understand cyber attackers’ decisions. This should eventually lead to additional revenues from related SaaS business with government departments.
R8 Capital Investments (MODE) says that the proposed acquisition of Redwood Financial Partners could take until the end of August.
Andrew Hore