NEX EXCHANGE
Brewer Shepherd Neame (SHEP) edged up its interim profit helped by a strong performance from tenanted pubs and lower interest charges. In the six months to end December 2019, revenues were 3% higher at £79m, while underlying pre-tax profit improved 5% to £6.2m. Cost pressures held back the performance of the managed pubs. There was a fall in profit contribution from brewing. Net debt was £84m at the end of 2019. The interim dividend was increased by 2% to 6p a share. Brewing volumes have increased since the period end and like-for-like pub revenues continue to grow, although the rate is slower for managed pubs. Coronavirus has not had an impact yet but it is likely to.
Altona Energy (ANR) is raising up to £400,000 through an open offer to existing shareholders at 6.5p a share. That is a one-third discount to the previous mid-price. The cash is required to acquire a new petroleum exploration licence application in South Australia and the maximum will provide 12 months working capital. This will enable assessment of an in-situ gasification project. There is also potential for wind and solar projects in the area. There was an overdraft of £96,000 at the end of June 2019. The latest time for acceptance is 31 March.
European Lithium (EUR) reported a dip in interim income in 2019 from $23,817 to $3,365, while the loss was flat at $2.3m. There was $32,000 in cash at the end of 2019. There are convertible notes valued at $1.1m, some of which have been subsequently converted, but more have been issued.
KR1 (KR1) has been hit by weak Bitcoin and other cryptocurrency prices, but it had already banked some of its profit. The value of the remaining portfolio has dropped sharply. There will be an update shortly.
Rutherford Health (RUTH) has requested a subscription of £9.64m at 176p a share under the Woodford Commitment at the time of the company’s flotation. LF Equity Income Fund, formerly LF Woodford Equity Income Fund, will own 28.8% of the proton beam therapy company. This is the final subscription under the agreement.
Former investment banker Dr Keith Harris has been appointed as executive chairman of SAPO (SAPO) and Selwyn Lewis is joining the board as an executive director.
Fuel emulsification company SulNOx Group (SNOX) has filed an international patent application for its technology. It has already filed for the patent in the UK. The technology can be used for many fuels but the focus is diesel and heavy fuel oil.
Cannabis investment company World High Life (LIFE) has raised £2.36m from two issued of convertible loan notes with a 10% coupon. The conversion price is 100p a share.
Trading in First Sentinel 7% bonds, February 2023, First Sentinel preference shares and EPE Special Opportunities 7.5% unsecured loan stock, 2022 has been suspended because of the market maker temporarily withdrawing from market making activities.
AIM
OnTheMarket (OTMP) has ended its litigation with Connells and its subsidiary Gascoigne Halman. The property portal had already won a judgement in a Competition Appeal Tribunal and it was seeking the recovery of further damages. Earlier in the week, Ian Springett was dismissed as chief executive of OnTheMarket. He has a 12 month contract and earns £250,000 a year.
Geospatial software provider IQGeo (IQG) reported an increased loss last year, but that masks the progress made. Third party revenues declined. In 2019, total revenues fell from £9.98m to £7.81m, however, own product revenues increased from £4.74m to £5.55m, while recurring revenues contributed £1.63m, up from £918,000. More people were employed in sales and product development and operating expenses jumped from £6m to £9.5m. That is why the loss increased from £1.6m to £6.17m. There was still £13m left in the bank at the end of 2019, following £11m spent on buying back shares.
Mass spectrometry instruments developer Microsaic Systems (MSYS) continues to add to its partners. Last year, revenues rose 51% to £870,000 with the benefit of the newer agreements still to come. Higher development spending meant that the loss edged up to £3.1m. There was £2.62m in the bank at the end of 2019 and management admits it is assessing its options in terms of raising more cash.
Concrete levelling equipment supplier Somero Enterprises Inc (SOM) had a stronger second half, following the profit warning in the first half due to bad weather. The outcome in 2019 was slightly better than the previously downgraded expectations. Even so, revenues fell 5% to $89.3m and pre-tax profit was down by a similar percentage. The dividend was reduced by 1% to 18.75 cents a share. The additional dividend relating to excess cash (net cash was $23.8m) is 7.7 cents a share. Increased costs mean that there could be a further decline in profit this year.
Mark Greenwood has further increased his stake in Richland Resources (RLD) by buying the market and acquiring shares in a placing at 0.12p a share, which raised £100,000 for the company. Greenwood’s stake is 18.5%. The share price is one of the few AIM risers this month.
The Panoply Holdings (TPX) has acquired consultancy Ameo Professional Services, which generates 9-% of its revenues from the public sector. Ameo made a pre-tax profit of £1m last year and is being acquired for £7m in cash and shares, plus the distribution of £1.3m in excess cash.
Molecular diagnostics developer Yourgene Health (YGEN) is acquiring its French distributor and this will be immediately earnings enhancing. Yourgene will still make a loss in 2020, but the following year earnings per share will improve from 0.18p to 0.23p.
Open Orphan (ORPH) has reported positive results for the phase IIb field study of FLU-v vaccine, which has been developed by a 49%-owned joint venture. The results have been published in a journal. IP Group has cut its stake to below 3%.
Redx Pharma (REDX) says it has received a bid approach from Yesod Bio-Sciences, which is considering offering 15p a share. Redmile Group is making a mandatory offer of 15.5p a share, following its purchase of the 39.5% stake owned by Moulton Goodies, which obtained most of its shares at 5.25p each when it capitalised its £2.5m loan. Redmile owns 45.5% of Redx, which is valued at £29.5m. The board recommends the bid.
Brickability (BRCK) has made its second acquisition in one month. It is paying £6m for plastic fascia and guttering merchant U Plastics, which made a pre-tax profit of £1.3m in 2019.
MAIN MARKET
Moss Bros (MOSB) has agreed a 22p a share bid that values the suit hire and retail company at £22.6m. The bid vehicle is owned by people involved in the apparel sector, including Michael Shina of Crew Clothing. The main executives will be retained.
Motor dealer Lookers (LOOK) has discovered accounting irregularities. The fraudulent transactions in one of the operating divisions mean that the 2019 figures will be delayed until late April. These transactions should not be significant for the group. Chief operating officer Cameron Wade has resigned.
Standard list shell Hertsford Capital (HERT) has agreed the acquisition of oil services provider OTAQ Group for £12.4m through an issue of shares at 57.5p each (post-consolidation). A placing will raise £1.5m at the same price. OTAQ designs and supports products for the aquaculture and offshore oil and gas sectors. The focus is on growing the aquaculture operations. The company will change its name to OTAQ and be readmitted on 31 March.
Sure Ventures (SURE) is raising £250,000 at 100p a share, which is a premium to NA of 95.74p a share. This followed news of an investment by 25.9%-owned Sure Valley Ventures in AI security company Getvisibility. The fund has invested €750,000. The cash will be used to expand the business internationally.
Spinnaker Opportunities (SOP) has spent more than one year trying to finalise the acquisition of cannabis processor Kanabo Research and a commitment to invest £1.4m has been secured. At the end of 2019, there was £597,000 left in the bank.
Dev Clever (DEV) is acquiring Phenix Digital, a digital agency focused on the educational sector. It is paying £100,000 in cash and 3.57 million shares. There is an existing relationship between the two companies.
Andrew Hore