AQUIS STOCK EXCHANGE
Good Energy (GOOD) rejects an increased bid from rival renewable energy supplier Ecotricity. The increased offer is 400p, up from 340p, a share in cash. This values Good Energy at £69.9m and it will cost Ecotricity £53.3m to buy the shares it does not own. Good Energy moved back into profit in the first half of 2021. Pre-tax profit was £3.9m, excluding one-off gain from generation debt restructuring. Business customers have increased, and the smart meter roll out is accelerating. Net debt is £36.4m. Ecotricity is loss making and it will be taking on this debt as well as having to fund the cash for the takeover. An interim dividend of 0.75p a share is payable if the bid does not succeed.
Union Distillers founder Mark Gamble has requisitioned a general meeting at British Honey (BHC) to remove 78 years old chief executive Michael Williams. Mark Gamble owns 16.6% of British Honey and wants to be re-appointed to the board along with Richard Day and Brian Jones, who would be a new appointment. Richard Day was announced as chairman in August, but he resigned one month later. The backing of Octopus and Unicorn will be important to either side. Interim revenues trebled to £3m, helped by the Union Distillers acquisition. However, there was an increased loss of £1.3m. There was £1.8m in the bank at the end of June 2021. Full year revenues could reach £8m.
Newbury Racecourse (NYR) increased interim revenues by 72% and reduced its loss by more than three-quarters to £380,000. There were more race meetings but only two had paying attendance compared with three in the first half of 2020. Attendances more than halved to 4,400. Betting and media rights did generate income from the racedays. Paying attendance with unlimited crowds is allowed in the second half. The oncourse hotel remains closed, but the nursery has returned to profit. There should be enough cash to last the company until it receives the next payment from land sold to David Wilson Homes. Non-exec director Dominic Burke has bought 71,225 shares at 800.5p a share.
KR1 (KR1) has invested $350,000 in Minterest and it will receive an undisclosed number of MNT tokens.
Dispersion Holdings (DEFI) says that investee company DeFi Yield Technologies Inc is no longer reversing into DeFi Technologies Inc.
Apollon Formularies (APOL) has expanded its production facility in Jamaica, and this will help to generate revenues from processing cannabis produced by third parties. Medical cannabis company Ananda Developments (ANA) is making progress with its research facility.
The Polygon Global Partners bid for Watchstone Group (WTG) has lapsed.
Clean Invest Africa (CIA) has secured a £60,000 convertible loan from three directors. This is convertible into shares at 0.25p each. Director Guy Heald has bought 3,000 B shares in Adnams (ADB) at £92.86 each, taking his stake to 18.2%. Non-exec director Lord Nicholas Fairfax acquired 124,800 shares in SulNOx Group (SNOX) at 0.13p each. Chris Akers has increased his stake in Oberon Investments (OBE) from 3.58% to 4.12%.
Vulcan Industries (VULC) raised £195,000 at 1.6p a share.
AIM
Housebuilder Springfield Properties (SPR) increased pre-tax profit by 81% to £18.5m in the year to May 2021. The dividend is 5.75p a share, which was higher than expected. Sales of land helped to reduce net debt from £70.9m to £20.8m. The outlook is positive because of the undersupply of homes in Scotland. The Scottish government is keen for more affordable housing to be built and the deal with Sigma to build private rented homes has good prospects. Costs are increasing but so are house prices.
Scotch whisky supplier Artisanal Spirits Company (ART) released a strong maiden set of results following its flotation. Revenues grew by one-fifth to £7.9m, although the loss was increased. The easing of lockdown has helped sales in the company’s bars and UK members have started to increase in the second half. The JG Thomson blended malt whisky brand has been launched. Executive directors David Ridley and Andrew Dane bought shares at 84p each, which is below the flotation price.
Cyber security software supplier Kape Technologies (KAPE) is paying $936m for ExpressVPN, which has more than three million customers and generates revenues of $279.4m. Pro forma EBITDA is $74.8m. A placing and retail offer raised £258.3m at 337.5p a share. The rest of the purchase price will be financed by debt.
Credit hire and legal services firm Anexo (ANX) increased interim revenues by nearly one-third to £48.3m and underlying pre-tax profit improved from £6.3m to £8.9m. This is despite additional costs in the legal services business. Demand for credit hire vehicles is increasing.
Printed circuit technology developer and supplier Trackwise Designs (TWD) increased interim revenues by 71% to £4.1m, thanks to a full contribution from Stevenage Circuits. It remains loss making but should move into profit next year when the new factory is open and demand from the electric vehicle battery client builds up.
Freight forwarder and logistics company Xpediator (LSE: XPD) reported overall interim revenues 27% ahead at £126.6m, while underlying pre-tax profit was 74% higher at £3.6m, although the comparatives were weak. Net debt was £1.6m at the end of the period, but Xpediator should have net cash by the end of the year. The interim dividend is 0.5p a share.
Demand for Accoya and Tricoya wood continues to be strong and in the five months to August Accsys Technologies (AXS) increased its revenues by 31% to €40m. Accoya sales prices have increased, while inventories remain low as additional capacity is installed.
Mobile gaming content licensor Gaming Realms (GMR) grew licensing interim revenues by 73% to £5.8m and total revenues from £5.2m to £7.7m. There is further growth to come as online betting is opened u across the US and in Canada. Gaming Realms moved into profit in the first half of 2021 and that should grow rapidly over the coming years.
All Active Asset Management has ended bid talks with Audioboom (BOOM), which had a record August. The 2021 pre-tax profit forecast has been upgraded from £255,000 to £931,000.
Interim revenues increased by 83% at VR Education (VRE) to €1.25m and gross margins improved as a greater proportion of revenues came from virtual reality platform ENGAGE. HP is set to roll out ENGAGE, under the name of VUVE Sessions, in the software bundle for its laptops in China.
Diaceutics (DXRX) is rolling out its DXRX platform more quickly than expected. It was launched in October 2020 and the platform is already generating revenues. Diaceutics should move into profit in the second half.
Drug delivery technology developer Midatech (MTPH) has exited non-core operations and focused on the Q-Sphera platform and MTX110, based on the MidaSolve technology that liquifies insoluble oral therapies, a potential treatment for brain cancers. This potential treatment is phase II trial ready. There are also treatments being developed with partners and that is what generates revenues. There should be enough cash to last until 2023. There could be licensing potential for Q-Sphera based treatments.
Filta Group Holdings (FLTA) improved interim revenues by 17% to £9.7m and revenues are heading back to previous levels prior to Covid-19. The kitchen services provider returned to profit in the first half and may pay a full year dividend.
Eqtec (EQT) has secured a partnership with Kibo Energy (KIBO) for the 25MW Billingham gasification project. Kibo will pay £3m to acquire 54.54% of vehicle that owns the project. Eqtec will retain the maintenance contract when the plant is commissioned.
MAIN MARKET
Ross Group (RGP) has been one of the best performers in the FTSE Fledgling index. yet it is still not generating revenues, although the loss was reduced in the first half of 2021. Ross has invested in a business planning to produce Chitin and is seeking supply chain management opportunities.
Telecoms services provider Toople (TOOP) is experiencing strong order levels. New customers include two credit unions and solicitors.