NEX EXCHANGE
Stratmin Global Resources which was quoted AIM until August 2017, is expected to join NEX on 6 June. Stratmin lost the AIM quotation because it failed to complete a reverse takeover, partly due to the fact that it was waiting for a promised investment. Stratmin is still in the process of completing the acquisition of Australian gold explorer Signature Gold, which would be paid for by the issue of 450 million shares at 2p each. After the deal, the company will change its name to Tectonic Gold.
Ananda Investments is the latest cannabis-focused investment vehicle to be joining NEX. The pre-money valuation is £500,000 and the minimum fundraising is £750,000. Ananda is willing to raise up to £4m. There are already potential investments being assessed. A reverse takeover valued at up to £10m appears most likely.
AfriAg Global (AFRI) says that 40%-owned AfriAg (Pty) Ltd increased its net profit from £104,000 to £179,000. This was equity accounted by AfriAg Global and the £72,000, up from £42,000, contribution helped offset the operating loss from the agricultural logistics group’s operations. The overall loss increased from £9,000 to £38,000. AfriAg (Pty) Ltd had the right to take a 60% stake in House of Hemp but this deal was terminated when the South African government delayed setting up the legal framework for medicinal cannabis. Focus has turned to other countries.
KR1 (KR1) generated gains of £4.3m on its trading in digital coins and tokens during 2017. There was also a total unrealised gain of £10.8m on these investments and a £1.18m foreign exchange gain. The total pre-tax profit was £14.5m, with a tax charge of £2.87m. That tax charge is included in trade creditors due within one year of £4.21m. There is cash in the bank, but total current assets were £3.5m. A creditor has subsequently been paid with £79,000 of shares, issued at 10p each. The KR1 share price has more than quadrupled over the past year and there is regular daily trading in the shares.
Workspace provider and art collector V22 (V22) reported a 2017 pre-tax profit of £175,000, down from £1.01m the previous year. The profit included a gain on the sale of an option to acquire one of the company’s buildings. The NAV is £1.34m, equivalent to 4.26p a share. That increases to 8.68p a share if the company’s art collection is revalued. The shares are trading at 2.95p (2.7p/3.2p).
Housebuilder St Mark Homes (SMAP) reported a reduction in pre-tax profit from £652,000 to £384,000 in 2017. There was a reduction in revenues from £1.34m to £120,000 and the share of operating profit from a joint venture was more than halved. There was cash in the bank of £514,000 at the end of 2017. St Mark has raised £3.47m from a 6% bond. This cash will be invested in new projects. The NAV is 134p a share, compared with a share price of 95p (90p/100p).
Peru-based gold and silver producer VI Mining (VIM) reported a tripled loss of $6.33m for 2017. No revenues were generated and the NAV was $2.56m. That was before VIM acquired two projects for $51.3m and raised £5.35m at 500p a share.
Georgia-focused oil and gas company Block Energy withdrew from NEX on 23 March and it is set to join AIM on 11 June. It will be valued at £10.3m at 4p a share.
MetalNRG (MNRG) has identified an acquisition that could provide the opportunity to move to the standard list.
Iran-focused investment company Indigo Holdings (INGO) is reviewing its strategic options. Hamish Harris and Nicholas Harwood are stepping down from the board.
First Sentinel (FSBN) generated initial revenues of £156,000 but, even excluding admission expenses of £65,000, it lost £117,000 in the 15 months to December 2017. The NAV of the small company adviser and investor was £1.26m at the end of the year. Since then, a further £1.5m has been raised via a convertible bond.
Formation Group (FRM) fell back into loss in the six months to February 2018. Revenues fell by 15% to £17.2m and there was s wing from a pre-tax profit of £15,000 to a loss of £277,000. The loss was greater than the second half loss last year. The NAV is £9.95m, including £3.2m in cash.
Secured Property Developments (SPD) has received repayment of the loan it made to a developer of a retail scheme in York. This cash will be used to finance any property deals that management feel are good value, thanks to more realistic pricing.
Trading in the shares of DagangHalal (DGHL) and Equatorial Mining and Exploration (EM.P) have been suspended. DagangHal has failed to publish its 2017 accounts. Equatorial is in negotiations with South African mining company ARQ Minerals, which intends to invest £50,000 for 500 million shares. This has led to a delay in the publication of accounts.
Walls and Futures REIT (WAFR) has appointed Allenby to replace City and Merchant as its corporate adviser.
AIM
Nexus Infrastructure (NEXS) had already warned that its TriConnex utility connections business was suffering from delays and even so interim figures showed a 4% rise in revenues to £62.9m and a 15% increase in pre-tax profit to £3.4m. The interim dividend was raised by 5% to 2.2p a share. Delays to the commencement of projects continue but the group order book has increased to more than £234m.
RedstoneConnect (REDS) is selling its systems integration and managed services businesses for £21.6m, so that it can concentrate on its software for smart buildings. The cash raised will pay off existing debt. Last year, the software division had revenues of £5.3m and made an operating profit of £1.4m.
Maritime monitoring equipment supplier SRT Marine Systems (SRT) has raised £3m at 25p a share and it is swapping £1.15m of short term loan notes for new three year loan notes. The cash will finance systems projects and product development. SRT is working on projects worth £30.5m.
A positive AGM statement from Parity (PTY) confirms that the trading of the consultancy and staffing divisions is going well. Parity should be cash positive by the end of the year and there is a strong pipeline of potential business.
Fishing tackle retailer Fishing Republic (FISH) increased revenues by 58% to £9.15m, but it slumped into loss. Trading was weaker than expected, particularly in the fourth quarter, and gross margin fell sharply even before stock write-offs. Fishing Republic has relaunched its website and the review of operations is ongoing. Five stores have been closed, reducing the total number to 14.
Share (SHRE) increased its revenues by one-fifth in the first quarter as the services provided for Computershare make a contribution in the full quarter. Broker commissions increased by 27% on the back of a 5% increase in trading volumes. First quarter market share dipped from 3.66% to 3.54%. An upgrade to the website has been completed.
Itaconix (ITX) is restructuring its UK operations in order to focus on core products. The main focus will be the US polymer operations. The annual fixed cost base will fall to less than £3.5m in 2019.
IDOX (IDOX) has appointed David Meaden as chief executive. He has experience of the public sector and software development. The information management software and services provider has closed its loss-making digital division. Underlying EBITDA is likely to be in the range of £13m-£15m for the full year, compared with previous expectations of £22.8m. Excluding digital, the EBITDA will be between £18m and £20m.
Immupharma (IMM) has further analysed the results of the phase III lupus treatment trial for Lupuzor. There were different results in the European and US parts of the trial with antibody positive patients in Europe showed a statistically significant improvement.
MAIN MARKET
Haynes Publishing (HYNS) expects to report a better than expected full year profit. Underlying pre-tax profit will be 10% ahead at around £2.9m. Earnings per share will be hit by US tax changes.
Falcon Media House (FAL) has decided to leave the standard list. The digital media group says that the share price fall has hampered its ability to raise more cash to develop its Q-Flow technology. Revenues have not come through as quickly as expected. If cash were raised, it could reduce the free float so the shares would be suspended.
Andrew Hore