AQUIS STOCK EXCHANGE
Ecommerce technology company Samarkand (SMK) increased full year revenues from £16.6m to £17.5m, while cutting the loss from £7.9m to £4.7m. Samarkand could move near to breakeven this year. Growth has been held back by Covid restrictions in China, although these have been eased. Own brands have been generating growth.
Marula Mining (MARU) shares were restored to trading on 7 August after it published 2022 full year results. A movement in deferred income meant that there was an operating cash inflow of £888,000, although there was an outflow after investing activities. Assay results at the Blesberg lithium and tantalum mine show high grade spodumene at a grade of 6.5% lithium oxide. There are plans to spend £1.1m on exploration. Assay results from the Bagamoyo graphite project in Tanzania have shown an average grade of 10% graphite. The mineralisation extends for two kilometres and is 200 metres wide.
Technology developer Inteliqo Ltd (IQO) lost $684,000 in the period to March 2023. There was $189,000 in the bank following an outflow of $622,000 from operating activities. This reflects the setting up of the company. Since April, the business has been operating profitably. Inteliqo has the rights to distribute Ipedia earbuds and rights to sell the Langaroo messaging App around the world. The rights last 20 years.
Newbury Racecourse (NYR) chief executive Julian Thick has resigned but he will stay on until March 2024. He has been chief executive for a decade.
Asia Wealth Group Holdings Ltd (AWLP) made a full year loss mainly down to currency losses from Japanese yen holdings. Management is seeking ways of expanding the business in South East Asia. The auditor says that it was unable to ascertain whether a $42,000 private investment was included in the balance sheet at its true value. NAV was $1.39m at the end of February 2023, including cash of $1.14m.
RentGuarantor Holdings (RGG) has entered into an agreement enabling refinancing provider The Lettings Hub to use its service. Zeus and Oberon have been appointed joint brokers.
Aquis Exchange (AQX) has acquired a minority stake in new venture OptimX Markets for $750,000. OptimX Markets is developing technology to help find additional matches for deal flow and this can be combined with the existing dealing technology developed by Aquis Exchange.
Pharma C Investments (PCIL) has been censured and fined £30,000, with £15,000 suspended. The medicinal cannabis company did not advise investors that the £200,000 it said that it was raising was not received until more than four months after it was due. The company failed to act with integrity.
Clean Invest Africa (CIA) is working with ISS International in Italy. The plan is to recover coal dust and turn it into pellets. The CoalTech subsidiary will generate Euro1m in revenues during the project, which lasts 24 months.
Coinsilium Group Ltd (COIN) has issued 3.25 million shares at 3p each to complete the acquisition of the Tokenomi Wb3 advisory business.
Non-executive director CP Freeman bought 1,000 shares in Hydro Hotel Eastbourne (HYDP) at 1024.5p each, taking his stake to 1.5%.
National Milk Records has withdrawn from the market following its takeover.
AIM
Electrical appliances retailer Marks Electrical (MRK) continues to grow rapidly. Revenues were 31% ahead in the first four months of the financial year. The overall market has declined. The highest growth was in televisions and washer/dryers. Installation orders trebled. Online market share has grown to 5.7%, helped by the installation offer.
Digital marketing company Silver Bullet Data Services (SBDS) has disappointed since it joined AIM, but the latest interim trading statement shows a 76% increase in revenues to £4.1m. That growth and reduced costs have helped to reduce the interim loss. The company is benefiting from the move to customer privacy-based marketing services. The share price recovered 33.9% to 37.5p, compared with a June 2021 placing price of 257p.
Health and safety services provider PHSC (PHSC) returned to profit in the year to March 2023, although the previous year’s loss was due to write-downs of goodwill. Even excluding those write-downs there was an improvement from £216,000 to £305,000. Revenues fell from £3.57m to £3.44m and gross margins improved. NAV is just over 30p/share, although nearly two-thirds of that is goodwill.
It appears Silvercorp Metals Inc is unlikely to go ahead with its bid for Celsius Resources (CLA) due to shareholders being unhappy with the proposed 0.16p/share bid. The recent award of the environmental licence for the MCB copper gold project has raised the value of the project. Silvercorp Metals Inc recently sold 60 million shares at a gain on the original subscription price, reducing its stake to 12.1%. New approaches will be considered.
Hargreaves Services (HSP) continues to make progress with its underlying business although it is slightly masked by the contribution from German associate HRMS, where the profit contribution is falling. In the year to May 2023, revenues increased from £177.9m to £211.5m, while underlying pre-tax profit dipped from £30.4m to £27.3m. That is due to the reduction in HMRS contribution from £25m to £15.5m. The mineral trader’s contribution will continue to fall, but it will not fall back to the previous levels because of greater trading activity than in the past due to the addition of the carbon pulverisation and metals recycling operations.
Allergy Therapeutics (AGY) expects a 16% reduction in revenues for the year to June 2023. This was due to the pause in production during the year. The underlying loss before R&D and exceptionals is £13.3m, while it is £33.4m including R&D costs. There is £14.8m in cash after drawing down £26m of the loan facility. Sales are expected to be slightly lower this year as capacity is used for product for clinical trials.
Sylvania Platinum (SLP) has entered into a joint venture agreement with a subsidiary of ChromeTech Mining Company. The Thaba joint venture will process platinum group metals and chrome ore from existing tailings from the Limberg chrome mine. This should increase Sylvania Platinum’s platinum group metals production by 9% – it does not currently produce chrome. The AIM company will fund the capital costs of $32m and provide a $5m working capital facility. Cash payback should be within three years of commissioning – based on long-term price estimates. First production will be in the second half of 2025.
MAIN MARKET
Educational supplies company RM (RM.) says that its Consortium school supplies operations are likely to hold back profitability and the full year outcome will be below expectations. Sales are not recovering as quickly as hoped due to restricted school budgets. Consortium is part of the RM Resources division, which swung from a profit of £1.24m to a loss of £4.5m. In the six months to June 2023, revenues fell from £97.9m to £87.6m, while and underlying pre-tax profit of £3.72m was turned into a loss of £6.74m. Net debt is £52m. There is a £70m bank facility that lasts until July 2025.
Minerals sands supplier PYX Resources Ltd (PYX) will benefit from the announcement by the Indonesian Ministry of Trade that it is easing export restrictions on ilmenite and rutile with minimum grades of titanium dioxide. Management expects to be awarded an export licence for titanium dioxide, imminently. In the first quarter, 2,500t was produced (1,900t zircon and 600t titanium dioxide), although less was sold in the period. The titanium dioxide concentrate inventory was increased to 7,400t so that PYX is ready to export when it gets its licence.
Online travel agency Hostelworld (HSW) increased net interim revenues by 64% to €45.8m with net bookings up a similar percentage to 3.4 million. There was a reduction in direct marketing costs to 51% of revenues. There was a first half loss as management continues to invest in growth. Net debt is €16.2m and the interest charges has been reduced.
Foams manufacturer Zotefoams (ZTF) did well in the first half of 2023, but destocking may hit the second half. Interim profit was higher, but the second half will be tougher and that will hit profit in the period. Full year pre-tax profit is expected to edge up to £12.6m before rising rapidly over the next two years. Next year £14.8m is forecast rising to £19.4m in 2025.
Andrew Hore
