AQUIS STOCK EXCHANGE
Virgata has published its offer document for the 50p a share bid for Walls & Futures REIT (WAFR) and the first acceptance date is 27 May. Walls & Future REIT management are still arguing that the bid is too low because it is at less than 50% of NAV. Virgata points out that shareholders would not be able to sell their shares in the market for anywhere near NAV and that costs, including director pay, exceed income. Liquidity is certainly and that means that it has been difficult to raise cash to scale up the business.
Samarkand (SMK) is making its first acquisition following its admission to the Aquis Apex segment. The cross-border trading group is paying £2.41m in cash and shares (at 139.67p each) for Zita West Products and 51% of Babawest, where a further £400,000 will be loaned. Zita West Products supplies nutritional supplements for fertility and pregnancy, and it has worked with Samarkand for more than three years. Babawest supplies nutritional products for mothers and babies. In the year to September 2020, Zita West Products made an adjusted pre-tax profit of £241,000 on revenues of £854,000. Interim revenues were 60% ahead at £636,000. Samarkand can use its ecommerce technology and contacts in China to grow sales.
Third quarter revenues dipped at National Milk Records (NMRP), but like-for-like revenues were 1% greater at £5.42m. That excludes the former heat detection operations. The growth has come from newer areas, such as Johne’s and surveillance testing. There was a small decline in milk recording revenues, but they are recovering and the next quarter comparisons will not be as strong.
British Virgin Islands-based technology-focused shell Boanerges Ltd plans to float on 17 May. It appears that the share issue will be relatively small because Richard Griffiths will have his stake diluted from 75% to 71.7%. Internet of Things, big data and telematics are some of the areas where the directors are seeking acquisitions.
Rutherford Health (RUTH) is drawing down £15m from its infrastructure investment facility, which means that all £40m will have been drawn down. This will be invested in the company’s cancer treatment facilities.
Sativa Wellness (SWEL) increased 2020 revenues by 38% to £1.99m. Transaction costs increased the loss from £3.8m to £4.8m. There are 30 wellness clinics in operation, and they are adding to the range of tests on top of the Covid-19 tests. The benefits of CBD products launched last year should show through in 2021.
URA Holdings has distributed its shares in Ananda Developments (ANA) to its own shareholders. This has increased the stakes of directors Charles Morgan (to 8.65%), Melissa Sturgess (to 13.2%) and Peter Redmond (to 1.47%).
Western Selection (WESP) has increased its stake in electrical and gas services provider Bilby (BILB) from 11.93% to 12.18%. This was before the trading statement that revealed that Bilby generated 2020-21 revenues of £60m and EBITDA of £3m. Net debt was £2.7m at the end of March 2021, prior to commencing paying £1m of VAT liabilities. The full yar results will be published in early July.
Christopher Potts has taken a 5.94% stake in DiscovOre (ORE).
Newbury Racecourse (NYR) non-executive director Bryan Burrough has acquired 8,600 shares at 737.5p each.
S-Ventures (SVEN) has raised £3m at 15p a share and every two shares will be issued a warrant exercisable at 25p. Chief executive Scott Livingston invested £500,000 in the placing and his stake is 49.1%. Vulcan Industries (VULC) has raised nearly £75,000 at 3.2p a share.
AIM
Virgin Wines (VINO) says that sales and profit are ahead of expectations in the year to June 2021. Liberum had forecast revenues of £70.3m, up from £56.5m last year, and the outcome is expected to be at least £73m. The easing of lockdowns could hamper growth, but the expanded customer base will help Virgin to continue to grow.
Bars operator Nightcap (NGHT) is making its first acquisition since joining AIM. Nightcap is paying £2.5m for Adventure Bars Group with £1m in shares being paid initially and up to £1.5m (at the same share price) dependent on performance in the two years from 1 July 2021. The cost is much higher than that because the acquisition comes with around £4.3m of borrowings, of which between £1.28m and £1.78m will be repaid and a £110,000 convertible (at 21p a share) issued to the lender. Nightcap is trying to raise a further £4m.
IPTV technology developer Mirada (MIRA) says trading was in line with expectations in the year to March 2020. That means that revenues were around £12m and the loss was around £3m. Trading improved during the second half and revenues were higher than in the first half. New opportunities mean that Mirada should improve its performance this year. Demand is building up in Asia.
A positive trading statement by concrete levelling equipment supplier Somero Enterprises (SOM) has led to a 15% upgrade in forecasts earnings to 39.9 cents a share. That has led to an increase in the expected dividend to 27.9 cents a share. Trading has been strong in the US, while Europe and Australia are recovering.
Coral Products (CRU) is paying an interim dividend 0.5p a share and the ex-dividend date is 13 May. Coral is selling the Haydock facility for £3.5m, but has to spend £650,000 on the roof before the sale is completed. Book value is £2.5m. Coral will lose the £300,000 a year of rental income.
Appreciate Group (APP) says 2020-21 figures are in line with expectations. Even so, the underlying pre-tax profit of the financial services and savings business has been slightly upgraded by Edison. The pre-tax profit is still likely to slump from £11.4m to £4.5m, before recovering to £7.2m in 2021-22. Digital sales are becoming increasingly important.
Trinity Exploration and Production (TRIN) has acquired a 100% interest in the PS-4 lease block, onshore Trinidad, for $3.5m. Average daily production was 83 barrels during 2020.
Software company WANdisco (WAND) increased its loss in 2020-21, but it is expected to fall sharply this year. That is because revenues are forecast to jump from $10.5m to $37m. WANdisco could even move into profit next year. The LIVEdata software is thought to be the only credible petabyte data analysis product capable of migrating data to the cloud on the market.
One Media IP Group (OMIP) has acquired the writer’s share of producer royalties, which covers more than 250 tracks by Kid Creole and the Coconuts. This deal has been done through Harmony IP, which gives artists the chance to access future income by selling a portion of their rights. This high profile deal could attract other artists to the Harmony IP proposition.
Initial drilling results from the Hamersley iron project owned by Alien Metals (UFO) shows new iron ore zone targets in the Hancock area of the project. The interpretation work outlines much larger target areas. Results from 36 more drill holes are due later this month.
Bacanora Lithium (BCN) says that there has been a 67.5p a share cash bid approach from Ganfeng International Trading. The bid is near to the share price high at the beginning of the year, which was the highest it has been for nearly three years. Ganfeng owns 50% of the Sonora lithium project and already holds 28.9% of Bacanora.
Anglo African Oil & Gas (AAOG) has lost its AIM quotation because it has failed to acquire a new business. It has entered into an option to acquire a 25% interest in the Saltfleetby gas field in east Lincolnshire for £8m in shares. The deal is dependent on at least £1m being raised and the shares becoming quoted on a recognised market.
Nu-Oil and Gas (NUOG) has left AIM, but it continues to make progress with the acquisition of Guardian Maritime. The cash generative business sells a retro-fitted system for ships that stops pirates boarding vessels. This deal should enable the shares to be admitted to the standard list by the end of June.
MAIN MARKET
Standard list shell East Star Resources (EST) commenced trading on 4 May, and it is seeking resources opportunities. The shell raised £1.73m net of expenses at 5p a share. The existing shares were previously issued at 1p each. The share price ended the week at 6.25p.
Tirupati Graphite (TGR) has developed a graphene-aluminium composite. This has conductivity properties comparable to copper. Tirupati is talking with potential customers who would want to replace copper because of the composite’s lower weight. Power and propulsion systems are one area where there is interest.
Cardiff Property (CDFF) has increased the interim dividend from 4.8p a share to 5p a share. There was a dip in pre-tax profit from £387.000 to £365,000, but there was a lower tax charge. The Thames Valley property markets has shown signs of slowing down and rental income will be lower this year. The current share price is 1850p, compared with a NAV of 2445p a share – although there is a potential tax liability on any disposal of the investment in Campmoss of 265p a share.
MGC Pharmaceuticals (MXC) says pre-clinical and clinical results for ArtemiC Rescue, which targets viral infections with inflammatory complications, has demonstrated an ability to decrease the markers of inflammation. Phase II clinical trials showed that the treatment could hasten recovery in Covid-19 patients with mild to moderate illness, which should offset the problem of long Covid.
CBD products supplier Zoetic International (ZOE) is raising £6m at 60p each and this will be used to terminate the financing agreement with LDA Capital. That will cost £1.2m and the rest will go on the US rollout of Chill products and launching new products.
Andrew Hore