AQUIS STOCK EXCHANGE
Music and livestreaming services All Things Considered (ATC) is acquiring a 60% stake in merchandise company Sandbag for an initial £2.42m. This grows the direct to consumer operations and provides cross-selling opportunities. Sandbag generated revenues of £39.6m in 2022-23 and underlying profit was £1.27m. All Things Considered will be able to use the services for its own artists. The company raised £4.18m at 92.5p/share.
In the year to March 2023, VSA Capital (VSA) turnover improved from £3.61m to £4.36m and the pre-tax profit increased from £281,000 to £612,000. That profit is after an increased loss on investments from £443,000 to £860,000. The intangible assets will be fully amortised by March 2026. There was a £540,000 cash outflow from operating activities, compared with a cash inflow of £229,000 in the previous year. The reason for the cash outflow is that £2.28m of revenues were settled in shares. This is due to the payment in shares for advice relating to the Aquis-quoted Silverwood Brands acquisition of a 19.8% stake in skincare products supplier Lush. This transaction has run into problems with the registration of the shares and that hit the Silverwood brands share price. Net cash was £740,000 at the end of March 2023, while the value of investments rose from £692,000 to £2.14m. NAV was £4.37m at the year end. VSA Capital chief executive Andrew Monk bought 514,200 shares at 5p each.
Cooks Coffee Company (COOK) revenues fell 10% to £3.4m last year. Gross margins did improve, though. Five more stores have been opened this year. Oberon has been appointed broker.
Western Selection (WSP) has reduced its stake in Kinovo (KINO) by selling 3.76 million shares at 40p each. It retains 3.7 million Kinovo shares. Western Selection has an estimated NAV of 80p/share, including 72p/share in cash and gilts.
NFT Investments (NFT) had net assets of £25m at the end of 2022, including £5.85m in cash. By June, the crypto, cash and equity investments of 3.34p/share before creditors.
Japanese whisky supplier Rogue Baron (SHNJ) reported an improvement in full year revenues from $66,000 to $164,000, while the loss reduced from $361,000 to $264,000. Low inventory levels have held back growth. Second half sales are set to grow.
Precious metals recycler Majestic Corporation (MCJ) reported a decline in full year revenues from $29.7m to $23.4m, while pre-tax profit excluding float costs fell from $854,000 to $769,000.
Ananda Developments (ANA) says that MRX1 cannabidiol based medical oil is on track for a commercial launch in July. The latest season of medical cannabis flowers trials are exceeding expectations.
Invinity Energy Systems (IES) reduced its full year loss from £21.3m to £19m and expects a jump in revenues this year. There was £15.3m in the bank at the end of May 2023 and the Riverfort loan facility has been repaid. The revenues backlog is £23.7m.
Dan Bower purchased 25,000 shares in SuperSeed Capital (WWW) at 94p each. SuperSeed Capital has issued 100,000 investor warrants to VSA Capital exercisable over six months at 112p each in order to help liquidity.
There was £787,000 of cash used in operations at Wishbone Gold (WSBN) in 2022. There was still £1.23m in the bank at the end of the year.
Probiotix Health (PBX), which was spun out of AIM-quoted OptiBiotix Health (OPTI), grew full year revenues by 19% to £1.3m. Confirmed orders for 2023 have already reached £1.1m. Plans for line extensions should help to grow sales. There was £1.74m in the bank at the end of 2022.
Global Connectivity (GCON) reported a 2022 profit of £360,000 because of a £616,000 write back of an intercompany loan. There was £75,000 in cash on 16 June and £550,000 will be received in repayments of intercompany loans over 18 months. Management is seeking opportunities to invest in.
Cadence Minerals (KDNC) reported a dip in net assets from £22.2m to £21.3m. There was an unrealised loss on investments of £4.59m in 2022, but that was partly offset by the money raised in a share issue.
Valereum (VLRM) is still waiting for regulatory permission for the acquisition of the Gibraltar Stock Exchange. The plan is to focus on growth companies in the Middle East, Africa and India.
TruSpine Technologies (TSP) has repaid a £100,000 loan from Annabel Schild out of a £200,000 R&D tax credit payment.
Adnams (ADB) says trading improved in June, but the outlook for the rest of the year is uncertain.
Guanajuato Silver Company (GSVR) reported an upgraded mineral resource for the El Cubo mines complex and there are 5.8 million ounces equivalent of silver indicated and nearly 20 million ounces inferred. A resource estimate for the San Ignacio mine will be completed later in the year.
Capital for Colleagues (CFCP) is selling part of its largest stake. The stake in case management software provider Computer Application Services is valued at £2.5m and a shareholding worth £754,000 is being sold. Capital for Colleagues still owns 33.33% of the company.
KR1 (KR1) reported a 62% fall in net assets to £70m at the end of 2022, which is 39.47p/share.
Boru Ltd has made a £500,000 investment in EDX Medical (EDX) at 8p/share.
Constantine Logothetis is investing £266,000 in SulNOx Group (SNOX) at 9.5p/share and his company has become a consultant and been granted 3.765 million options at 10p each.
Marula Mining (MARU) is planning to apply for a listing on the Johannesburg Stock Exchange.
Black Sea Property (BSP) has not published 2022 accounts and share trading will be suspended on 3 July.
AIM
Automotive acoustics products supplier Autins Group (AUTG) has cut costs, but revenues still have to be more significant for breakeven to be achieved. Interim revenues increased by 15% to £10.8m and the loss was reduced. There is cash headroom of £3.5m on current bank facilities and this is enough for the current requirements. Autins does have to start to pay back the CBILS loan.
Cleaning services provider React (REAT) confirmed the expected improvement in interim figures following last year’s acquisition of LaddersFree. Pre-tax profit jumped from £90,000 to £770,000. Tax losses are running out, but prospective earnings put the shares on a single figure multiple.
Video games producer tinyBuild (TBLD) expects 2023 to be a financial low point with the first half performance below expectations. New games have underperformed and the values of some of the back catalogue titles may be impaired. Higher amortisation of development costs and increased royalties mean that EBITDA will fall more sharply than revenues. The cash position is much weaker than expected and it could fall below $10m by the end of the year. Finance director Tony Assenza has left the board.
On Thursday, Revolution Beauty (REVB) shares recommenced trading following the AGM. It was suspended on 1 September 2022 because of the inability to publish accounts and concerns about the previous financial reporting. The AGM was eventful with an attempt to adjourn the meeting until the general meeting requisitioned by 27% shareholder boohoo failing. The three directors that boohoo (BOO) wanted to remove, including chief executive Bob Holt, were not re-elected with most of the votes against re-election coming from boohoo. That left the company with one director, and he reappointed the three directors plus two new non-executive directors. The share suspension would not have ended if there were only one director. This upset boohoo, but trading would not have recommenced without directors being appointed.
The FDA has granted De Novo marketing authorisation for KidneyIntelX.dkd, the AI-enabled test for patients with Type 2 diabetes and kidney disease that has been developed by Renalytix (RENX). This will help to accelerate revenues. The test stratifies patients based on the risk of progressive kidney function decline over five years. Renalytix estimates that 14 million people could be eligible for testing.
AMTE Power (AMTE) was awarded a £389,000 grant by the UK Battery Industrialisation Centre yesterday. The company anticipates UN certification of its Ultra High Power Cells in the third quarter of 2023, but the financial future of the company remains uncertain.
IOG (IOG) has successfully improved gas production rates at the Blythe H2 well in the North Sea. There had been a blockage that hampered flow rates and a downhole valve has been adjusted. Drilling of appraisal wells is being deferred. This is to maximise cash generation ahead of bond repayments. Two wells have to be drilled by March 2024, though, due to licence requirements.
MAIN MARKET
CAB Payments has announced the offer price of 335p. This offer is one of the few that has happened this summer. The shares should be eligible for inclusion in the FTSE 250 index. The flotation was expected to value the payments company at up to £1bn and the valuation at the offer price is £851.4m. That is after raising up to £333m in the offer and it assumes no exercising of the over-allotment option, which could be up to an additional 15% of the offer shares. Existing investors are selling all the shares on offer. CAB Payments has developed technology and global networks for foreign exchange and cross-border payments. This means that there are high barriers to entry. The underlying business is Crown Agents Bank, which has a UK banking licence.
Shipbroker Braemar (BMS) has identified a transaction worth $3m that originated in 2013 and finally paid in 2017. There are concerns about reporting and the remaining liability in the balance sheet. An investigation will delay the accounts. The share price slumped after the announcement. Trading in the shares will be suspended, at 233p, on 3 July.
Andrew Hore
