NEX EXCHANGE
Smart home products supplier Sandal (SAND) reported a decline in overall revenues from £3.75m to £3.62m for the year to May 2018, but this masks the 71% growth of the Energenie MiHome revenues to £1.01m. Sandal reduced its operating loss and there was nearly £51,000 in the bank, although net debt was £1.09m.. A small profit is forecast for 2018-19 with a small increase in net debt expected. Sandal may need additional cash to increase the marketing for the Energenie MiHome brand.
High Growth Capital (HASH) has raised £500,000 at 0.8p a share, which was a 77% premium to the market price. Malcolm Burne and Professor Michael Cain have left the board and been replaced by Jens Zimmerman, who becomes non-executive chairman. The investment strategy will be widened from medicinal cannabis, because of a lack of opportunities, to technology. The company intends to acquire a 9.8% stake in Belgium-based artificial intelligence software developer Sentiance. The software enables companies to understand user behaviour. The data comes from smart devices. The technology is used in areas, such as insurance, health and car driving.
Asia Wealth Group Holdings Ltd (AWLP) improved its interim revenues from $1.15m to $1.24m. The pre-tax profit fell from $162,000 to $66,000. There was $1.4m in the bank at the end of August 2018.
Equatorial Mining and Exploration (EM.P) has published its 2017 figures and interims to June 2018. The full year loss was £294,000 and the interim loss increased from £117,000 to £162,000. There was £53,000 in the bank at the end of June 2018. The company is beginning to ship coal from its mine in Nigeria.
Positive Healthcare (DOC) has appointed KSA Group Ltd to liquidate the company.
Shen Chaohuli has sold his 18.3% stake in TechFinancials Inc (TECH) to Ou Qiao.
AIM
Patisserie Holdings (CAKE) has received a cash injection to keep it going, after unknown overdraft facilities were discovered. The cash balance in the recent accounts does not appear to exist. A placing has raised £15.7m at 50p a share. Chairman Luke Johnson is also providing loan facilities of up to £20m.
EKF Diagnostics (EKF) has revealed details of the spinning off of Renalytix AI on AIM. Renalytix AI is raising cash at 121p a share as part of the flotation, which should happen on 31 October. EKF will distribute its near-21 million shares in the company to its own shareholders, although it will subscribe for new shares. EKF shareholders will also get the chance to invest up to £3.5m in new shares.
Diversified Gas and Oil (DGOC) is making another major acquisition. The oil and gas producer is paying $183m for Core Appalachia, which is funded by cash and shares issued at 115p each. The deal is immediately earnings enhancing.
Vertu Motors (VTU) has been hit by a lack of cars due to the newly installed testing procedures but it still has a strong balance sheet and it will make a significant full year profit. September registrations were the worst since 2011 and Vertu was not immune. That will hit the second half. There was an improved performance in the used car market to help offset the weaker new car sales in the first half. Pre-tax profit is expected to decline from £28.6m to £22.1m in the year to February 2019.
Marshall Motor Holdings (MMH) has reaffirmed that it is on course to make a full year pre-tax profit of £24.2m, down from £29.1m in 2017.
OnTheMarket (OTMP) has increased its spending on marketing and IT since floating on AIM and this has pushed it into loss. A full year loss of £14.7m is expected and there is not likely to be much of a reduction the following year. The online property platform has succeeded in doubling the estate agency offices using the service to more than 11,000 many of the additional offices are in a trial period and not paying to put their properties on the platform. The investment being made will only be justified if these offices start to pay fees. The IT investment will enable the company to offer more products and services and increase revenues that way as well.
Access Intelligence (ACC) is acquiring ResponseSource, which provides SaaS-based services to the PR and media sectors, for £5.5m. This company fits well with the group’s existing business. A ten-for-one share consolidation is planned.
Health monitoring equipment developer LiDCO Group (LID) is still going through the transition from a sales model to one based on regular income from hospitals. Interim recurring revenues increased by 11% but total revenues were 8% lower at £3.6m. Importantly, there should be enough cash in the bank to move the business towards profitability. That could happen in 2019-2020 but is more likely to be the following year.
Melissa Blau is stepping down as chief executive of Veltyco (VLTY) fewer than seven months after she was appointed. The shares price has fallen by three-fifths in the subsequent period.
Online women’s fashion retailer Sosander (SOS) has raised £3m at 32p a share, which is more than double the flotation price of 15.1p a share. First half revenues were £1.84m.
MAIN MARKET
Titon (TON) has firmed up its plan to move to AIM. The window components manufacturer expects to join AIM on 10 December.
Toople (TOOP) says trading in the first week of its new financial year is ahead of expectations. The statement remains, as ever, light on proper financials and indications of losses. Toople raised £2.2m at 0.3p a share, so it has enough cash for the time being.
Andrew Hore