AQUIS STOCK EXCHANGE
Suffolk-based brewer Adnams (ADB) returned to profit in 2019. Revenues fell from £78.9m to £74.7m, while a loss of £877,000 was turned into a pre-tax profit of £39,000. Stripping out one-off costs, there was an underlying decline in profit. Investment in the brewery and a new IT system have led to some disruption of the business. There will be no final dividend due to COVID-19 and the subsequent pub closures. There are tangible assets valued at £43.8m, much of which is freehold property and Adnams is in discussions about new lending facilities.
Directors’ pay has been halved and other costs reduced to a minimum.
Ananda Developments (ANA) is formulating responses to the latest questions from the Home Office. The MHRA has also requested a meeting to discuss the application to grow >0.2% THC cannabis. Ananda has a 50% interest in DJT Plants which plans to grow the cannabis in Lincolnshire.
World High Life (LIFE) has gained a quotation on the US OTC market. They started trading on 8 April.
NQ Minerals (NQMI) produced 8,127 tonnes of lead concentrate and 4,609 tonnes of zinc concentrate at the Hellyer mine in the first quarter of 2020. Further production increases are planned. Mining continues in Tasmania and the concentrate can still be shipped.
AIM
Replacement windows supplier Safestyle (SFE) has raised £8.5m at 17p a share and this will provide a strong cash buffer during the COVID-19 outbreak. Banking covenants will be waived for up to six months.
ReNeuron (RENE) has secured a collaboration with a major pharma company for the potential use of the company’s exosomes, derived from the CTX neural stem cell line.
D4T4 Solutions (D4T4) won additional SaaS-based business in the fourth quarter. That has delayed the recognition of revenues and led to a 14% fall in reported revenues to £21.7m. The forecast was for revenues of £26.7m. Pre-tax profit fell from £6m to £5m. There is £12.7m of cash in the bank.
Churchill China (CHH) has decided not to pay a final dividend even though net cash was £15.6m at the end of 2019. Underlying pre-tax profit improved from £9.4m to £11.2m in 2019. Manufacturing operations have been suspended and costs are being reduced. Capital investment in manufacturing and kiln capacity should be completed in the first half of 2020.
Real Estate Investors (REI) says that trading remains strong and it still intends to pay its dividend. Rental collection was good in the first quarter of 2020. Forecasts have been trimmed with nav expected to fall from 67.4p a share to 66.1p a share. That is still well above the share price.
Circassia Pharma (CIR) is transferring the US commercial rights to Tudorza and Duaklir to AstraZeneca. The $149.9m loan from AstraZeneca (and accrued interest) will be offset against the consideration for the transfer. AstraZeneca still owns 18.9% of Circassia. The focus of Circassia will be the Niox respiratory diagnostic platform.
Advanced Oncotherapy (AVO) has raised a further £14.9m at 25p a share. This will be spent on development and gaining approval for its LIGHT proton therapy system.
Cinema operator Everyman Media (EMAN) has raised £17.5m at 100p a share. This will help finance the business while the cinemas are closed.
Upheavals continue at Nostra Terra Oil and Gas (NTOG) with a further general meeting requisitioned and the resignation of chairman Andrew Morrison. A share issue raised £318,000 at 0.25p a share. Chief executive Matt Lofgran has agreed to a 60% reduction in salary until the next significant fundraising.
Trading in the shares of Bould Opportunities (BOU) has been cancelled but it continues to push ahead with a potential biotechnology acquisition.
MAIN MARKET
Aquila Services Group (AQSG) is aiming to at least break even in 2020-21 and maintain a positive cash balance. The figures for the year to March 2020 will not be as good as forecast, although it was profitable. Cost savings by the consultancy services provider include the chief executive standing down and there will be no final dividend.
Avation (AVAP) says that it has received bid interest, but progress has been hampered by COVID-19. The commercial aircraft lessor has $129m in cash and it is offering short-term financial relief to airlines. Management believes that ongoing income should be enough to cover costs for another 12 months.
Car and property bridging finance provider S and U (SUS) is paying a final dividend of 50p a share. That is lower than the previous year’s final of 51p a share, but it means the total dividend for 2019-20 is 2% higher. There are signs of reduction in lending in the early weeks of the new financial year.
Flavourings and fragrances supplier Treatt (TET) says interim revenues were 5% lower due to a fall in the price of citrus raw materials. There was growth in other areas with tea revenues 48% higher. There has been strong growth in recent orders because of the use of ingredients in soaps and sanitisers. The factory relocation in the UK will not happen until 2021. Net cash was £6.5m at the end of March 2020. The interims will be published on 12 May.
Argo Blockchain (ARB) generated revenues of £6m in the first quarter of 2020. There was £1.8m generated in March, down from £2.5m in February. The decline was due to lower bitcoin prices and more difficult cryptocurrency mining conditions.
Spinnaker Opportunities (SOP) has raised £40,000 from a loan note issue to two investors. The conversion price is 5p a share. There will be a warrant for every two shares that is exercisable at 5p a share.
Andrew Hore