AQUIS STOCK EXCHANGE
Apollon Formularies (APOL) reported 2022 results after the market closed on 30 June. Revenues rose 45% to £286,000, but the medical cannabis company continues to lose money. The company warns that it does not have enough cash for its current requirements, and it will have to raise money through a share issue or by selling assets.
Voyager Life (VOY) has ended the deal to acquire the CBD extraction and manufacturing facility in Poland from Goodbody Health. It took longer than expected to gain the approval for the change in ownership. Voyager Life has obtained a manufacturing order from a client and has already supplied another order worth £25,000, which was made in Scotland where the facility is being upgraded. There is £787,000 in cash and that should last 12 months. The £1m of convertible loan notes will not be issued as the acquisition is not going ahead.
S-Ventures (SVEN) returned from suspension following the publication of full year results and the latest interim figures. They were delayed because of the liquidation of Lizza. Group revenues for the healthy snacks supplier were £7.8m in the year to September 2022. The latest interim revenues were £7.7m, including £800,000 from discontinued activities, but it remains loss-making. However, S-Ventures is currently achieving a positive EBITDA. There was £400,000 in the bank at the end of March 2023. Sales momentum is improving.
KR1 (KR1) reported an NAV of 55.01p/share at the end of May 2023. The digital assets generated income of £385,000 during May. KR1 is extending its services agreement with Reflexivity and adding a 12 months notice period. Two KR1 directors own Reflexivity.
Quantum Exponential (QBIT) has made its seventh investment. Delta g is a gravity sensing hardware and technology developer spun out of the UK Quantum Technology Hub Sensors and Timing at the University of Birmingham. Delta g has developed an underground imaging system that leverages quantum technology to measure gravity gradients. This can be used to monitor national infrastructure and ground movement. It could also be used to discover natural resources. Quantum Exponential invested £300,000 as part of the £1.5m pre-seed funding round.
Capital for Colleagues (CFCP) has agreed to convert £250,000 out of £412,000 of loans to investee company South Cerney Outdoor Ltd into 250,000 A shares, which have preferential rights. These will be bought back by the outdoor experiences company in five annual tranches of £50,000. Capital for Colleagues is also transferring 4% of the share capital to the employee ownership trust, leaving it with 31%. The trust has a call option over a further 4% of the company.
VVV Resources (VVV) continues to seek mineral projects. There was £208,000 in the bank at the end of 2022 following a £170,000 cash outflow during the year.
A subsidiary of PanGenomic Health (NARA) has started a vitamin D health assessment service.
John Byfield and Jonathan Wearing have joined the board of BWA (BWAP) and James Hogg has stepped down to concentrate on the heavy mineral sands interests in Cameroon.
PS Allen has a 3.08% stake in Hydro Hotel, Eastbourne (HYDP).
Trading in the shares of Eight Capital Partners (ECP) and Marula Mining (MARU) was suspended at the beginning of the week because they have not published 2022 accounts.
AIM
Grocery and catering distributor Kitwave (KITW) is negotiating the inflationary environment successfully and going from strength to strength. Even stripping out the latest acquisition, organic growth is 17%. In the six months to April 2023, group revenues were 23% higher at £275m, while underlying operating profit jumped from £7.3m to £11.7m – reflecting an improved operating margin of 4.3%. Pre-tax profit improved from £5.6m to £8.3m. The interim results have sparked a pre-tax profit forecast upgrade from £23.6m to £27.5m.
Agricultural products supplier Wynnstay Group (WYN) increased interim revenues but could not repeat the previous level of profit which was boosted by high commodity prices. The figures were hit by a £1.5m fertiliser stock write-down because of a rapid fall in the fertiliser price. In six months to April 2023, group revenues grew by 22% to £409.1m but underlying pre-tax nearly halved from £10.2m to £5.25m. The dividend was increased by 2% to 5.5p/share – continuing the record of annual increases. Net debt was £10.7m at the end of April 2023. Fertiliser demand has recovered due to the lower prices and poultry numbers are rising following avian flu related reductions. Shore Capital forecasts a fall in full year pre-tax profit from £22.6m to £10.7m.
Yourgene Health (YGEN) is recommending a 0.522p/share cash bid from fellow diagnostics company Novacyt (NCYT). This values Yourgene Health at £16.7m. Last December, Yourgene Health raised £6m at 0.3p/share. Novacyt is spending some of the cash it generated during Covid as it seeks to replace those testing revenues.
Restore (RST) chief executive Charles Bligh has stepped down and first half trading has been mixed. Records management remains a steady growth business with the relocation business also trading well. It has been tougher for the technology and shredding operations. Pre-tax profit guidance has been cut from £41m-£43m to £31m. Jamie Hopkins has taken over as interim chief executive.
Emmerson (EML) has referred the Environmental & Social Impact Assessment (ESIA) for its Khemisset potash project to a ministerial committee in Morocco. The regional authority decided it was unable to approve the ESIA. The use of water is a key factor in the decision. A bankable feasibility study will take six months to complete after environmental approval. Emmerson is expected to move into net debt in 2024.
Duke Royalty (DUKE) reported cash revenues of £21.9m in the year to March 2023. Pre-tax profit including gains was £20.4m. The NAV of 39.3p/share includes the value of investee company Instor at the recent sale price. The dividend is 2.8p/share.
Bens Creek (BEN) has raised £5.1m through an issue of loan notes to Avani Resources. The loan notes last 18 months and interest will be added to the principal. Bens Creek will pay $2/tonne of coal sold and this will reduce the principal owed.
MAIN MARKET
Standard list shell Electric Guitar (ELEG) has secured a potential reverse takeover candidate in the form of 3radical, which is run by one of the founders of marketing software company Alterian, which was quoted on the Main Market for more than one decade before being acquired by SDL International for £68.4m. David Eldridge was boss of Alterian when it floated in 2000 but left one year before it was taken over in 2011. He formed audience capture and consented data capture company 3radical at the end of 2011. 3radical collates data and gets permission to use it through gamification software called Voco. The deal places an initial valuation of £3m on 3radical. Trading in the shares has been suspended at 2.1p, which values Electric Guitar at £1.2m. At the end of September 2022, there was £659,000 in cash. If the acquisition goes ahead, Electric Guitar plans to move to AIM once the transaction is completed.
Medcaw Investments (MCI) is considering acquiring a company with a lithium project in Southern Ethiopia. This is a change to the original plan for the standard list shell, which was going to acquire a life sciences business. Abyssinian Metals Ltd (AML) has a 51% stake in the Kenticha lithium caesium tantalum project with the other 49% owned by the Oromia state. The project has a JORC, open-pit, inferred resource of 87.7mt at 0.78% Li2O with upside of up to 51mt. Production could commence at the end of 2023. Due diligence will commence, and the two companies will work together to agree a potential offer for 100% of AML.
Andrew Hore
