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Quoted Micro 27 January 2025
AQUIS STOCK EXCHANGE
Cooks Coffee Company (COOK), which owns the Esquires coffee shops, increased group store sales by 26% to £25.5m in the nine months to December 2024. The growth was 32% in the latest quarter. The number of sies has risen from 71 to 87 over the past 12 months with all but three franchised. So far in this financial year, UK like-for-like sales are 2.8% higher and sales in Ireland are ahead by 5.1%. A further six stores are planned in the current quarter and there should be more than 100 stores by the end of 2025. The business is generating cash from operations.
Healthcare IT software provider DXS International (DXSP) grew interim revenues by 2% to £1.73m and the pre-tax loss was slashed from £258,000 to £59,000, helped by grant income of £170,000. There was a small post-tax profit after R&D tax credits. There was no capitalised development pending in the period and the cash position improved over six months to £96,000. Chairman Bob Sutcliffe bought 50,000 shares at 2p each and 37,037 shares at 2.7p each. He owns 1.93% of the company.
Cardiometabolic health products developer ProBiotix Health (PBX) reported 13% growth in net sales to £1.88m, while the order book for the first quarter is worth £620,000. The EBIDA loss fell from £709,000 to £568,000. There was cash of £1.65m at the end of 2024. The relationship with SEED Health in the enabled the launch of products in 2,000 Target stores, which drove growth in US sales. There are negotiations that could lead to ingredient sales in China. Management believes that the company can reach breakeven by early 2026.
Wishbone Gold (WSBN) has signed non-binding heads of terms for the acquisition of Evrensel Global Natural Resources, which has mining and trading activities in Africa. This would be a reverse takeover. Existing Wishbone Gold shareholders are likely to own 30% of the enlarged group. Wishbone Gold chairman Anthony Moore owns the Gibraltar-based target company. Some or all of the existing Australian mining assets are likely to be sold.
Brewer Shepherd Neame (SHEP) has launched a share buyback programme worth up to £500,000. The shares will be cancelled. This should enhance earnings. Like-for-like retail sales were 7.4% ahead over the Christmas and New Year period with particularly strong sales within the M25. First half like-for-like retail sales were 4.4% higher, while tenanted pub sales were slightly higher. Beer volumes slipped 12.6%. A change in logistics arrangements will add £1.5m to costs. Wage and National Insurance costs will rise by an annualised £2.6m. Management will try to offset these rises through price increases and improved efficiency.
ChallengerX (CXS) is in negotiations for the potential acquisitions of Nyce International and Virya VC. Hng Kong-based NYCE International helps to accelerate the sales and product distribution process for gaming companies. UK-based Virya provides executive and directorship services for the betting and gaming sector. As part of this proposed transaction ChallengerX will secure a perpetual licence for Reelsoft AB’s Vision RGS (Remote Gaming Server) and Game Aggregation Platform. ChallengerX had net liabilities of £187,000 at the end of June 2024.
Property investor Ace Liberty and Stone (ALSP) edged up rental by 1% to £2.75m in the first half. Higher interest costs and a £37,515 disposal loss meant that the loss increased from £5,000 to £243,000. NAV is £31.4m, while the market capitalisation is £33.7m. Net debt is £46.3m.
RentGuarrantor Holdings (RGG) increased fourth quarter revenues by 88% through a 73% rise in tenant contracts.
BWA Group (BWAP) says that initial mineral resources for the Dehane project in Cameroon are 4.2 million tonnes at a 3.5% cut0ff. That comprises 0.99% ilmenite, 0.13% rutile and 0.11% zircon. Results of the kyanite test work are expected in the second quarter. That could lead to an update to the mineral resources estimate.
Fintech and blockchain technology company Tap Global Group (TAP) has increased monthly revenues to £451,000 in December. Revenues for the six-month period rose from £1.29m to £1.8m and there should be a positive EBITDA for the period.
Eight Capital Partners (ECP) is planning a capital reorganisation and conversion of its 4.8% bond into shares. There will be a consolidation of 4,000 shares into one new share. The bond will be converted into 810,325 new shares, thereby reducing debt by £910,000. The record date is 29 January.
Capital for Colleagues (CFCP) had NAV of 82p/share at the end of August 2024, down from 87.9p/share at the end of May 2024. There was £1.24m in the bank. The tough economic conditions led to downgraded valuations of some earlier stage investments.
SulNOx Group (SNOX) has generated £126,000 from the exercise of options at 36p each by a former director. It has also settled £36,330 of costs via issuing shares. SulNOx has secured a patent in Nigeria for its improved oil/water separation methodology.
At the end of 2024, EPE Special Opportunities (EO.P) had an NAV of 292.78p/share.
Mark Horrocks has reduced his stake in WeCap (WCAP) from 5.03% to 4.8%. Premier Miton’s stake in Global Connectivity (GCON) has reduced from 5.21% to 3.69%. First Car International increased its Samarkand Group (SMK) shareholding from 17.6% to 21.6%. Jason Upton has increased his stake in Zentra Group (ZNT) to 3.53%.
Gowin New Energy Group (GWIN) director Chien Chih-Peng has bought 33.16 million shares a 1p each. This is a shareholding of 11.4%. Jia-Hong Guo’s stake has been reduced from 8.74% to under 3%. Chien Chih-Peng has also made a £37,000 loan available to Gowin New Energy.
AIM
Nexus Infrastructure (NEXS) offers civil engineering services, such as earthworks, drainage and foundations, to housebuilders. In the year to September 2024, revenues fell by 36% to £56.7m and it made a £700,000 underlying loss. However, it is already winning new business with housebuilders, such as Vistry and Taylor Wimpey. That has helped the order book grow to £51.6m at the end of September 2024. A further £15.9m of orders have been won since then. Water infrastructure services provider Coleman Construction and Utilities was acquired in October. Following this acquisition, the pro forma cash figure is just below £10m.
Payments technology company Bango (BGO) increased 2024 revenues by 16% to $53.4m. Annualised recurring revenues were 59% higher at $14m. A pre-tax profit of $3m is estimated for 2024, but that includes $2.2m of non-cash income. Net debt is $1.7m. Matt Wilson has replaced Matt Garner as finance director.
Yu Group (YU.) increased energy supplied by 78% in 2024 and margins are better than expected. Revenues did not grow as rapidly because of lower prices, but they are two-fifths higher at approaching £650m. That is lower than the Panmure Liberum estimate of £680m. Managing bad debts and the hedging policy means that the pre-tax profit has edged up from £46m to £48.3m.
Revolution Beauty (REVB) is having a poor fourth quarter to February 2025 with some retail launched delayed until the first quarter of 2025-26. This includes a launch in Walmart in the US. Online trading was also weaker than expected. Full year revenues are forecast to fall by one-quarter to £143.6m and a profit is no longer expected. A £1.6m loss is likely. The 2025-26 pre-tax profit forecast has been more than halved from £5m to £2.4m. Net debt is set to stay around £25m.
GENinCode (GENI) says that its heart disease risk assessment product CARDIO inCode is included in the US 2025 Clinical Lab Fee Schedule enabling reimbursement from Medicare and Medicaid. The price varies from $450-$570. It is also being used to prevent heart disease in Catalonia.
There was a short-term trading improvement in December for Sanderson Design Group (SDG), but this has not continued, and profit expectations have been reduced. Band sales are 9% lower. Revenues are expected to decline from £108.6m to £101m, while pre-tax profit could slump from £12.2m to £4.2m – previously £7.2m was forecast. There has been less high margin work for the manufacturing division, which hit overall profitability.
Fuel additives developer Quadrise (QED) generated £4.5m via a placing at 3p/share, which was well above the minimum sought, and a retail offer could raise up to £1m more – although that figure could be increased. The money already raised will last well into 2026.
Shoe retailer Shoe Zone (SHOE) had already warned about the results for the year to September 2024. Pre-tax profit fell from £16.5m to £10m, which was slightly higher than forecast. There is no final dividend – the interim was 2.5p/share. Net cash is £3.6m. Several loss-making stores are being closed. The 2024-25 pre-tax profit is expected to halve to £5m.
Floorcoverings supplier Airea (AIEA) had a much better second half growing by 6% and full year revenues were 0.6% ahead at £21.2m. International sales were still lower in 2024 despite a 11.8% increase in the second half. Inventory levels have been reduced. There will be non-recurring costs. The equipment is expected to be installed in the new manufacturing facility during the second quarter. An investment property worth £4.1m is still up for sale. David and Monique Newlands increased their shareholding from 11.1% to 12.4%.
Bars operator The Revel Collective (TRC) had a good Christmas, but it faces higher costs because of the National Living Wage and National Insurance increases. Annualised costs will rise by £4m. This has led to forecasts of larger than expected losses. Like-for-like Christmas revenues were 1.6% higher. Net debt is expected to be £24m at the end of June 2025.
Managed services provider Tialis Essential IT (TIA) has made a good start to 2025 with preferred partner and contract extensions totalling £17.8m. Some of these are five-year contracts and are higher margin lifecycle management contracts. The 2024 pre-tax profit is expected to be flat at £1.1m, but earnings are forecast to treble to 3.6p/share.
Ariana Resources (AAU) produced 20,900 ounces of gold from its 23.5% owned Zenit mining operations in Turkey. Revenues were $54.7m. Mining is building up at the new Tavsan mine. A resource estimate is expected from Dokwe in Zimbabwe after further drilling analysis.
Quantum Blockchain Technologies (QBT) has raised £2m at 1.15p/share so that it can invest in its Bitcoin mining technology. Last week, it announced a breakthrough for its Bitcoin Artificial Intelligence model mining tool. The Method C AI Oracle provides a 30% improved performance compared with other methods. The company is seeking a chip manufacturing partner to produce a commercial product.
Premier African Minerals (PREM) has raised £540,000 at 0.02p/share. This is interim funding following the decision not to proceed with the fundraising at 0.0275p/share because the retail offer did not raise enough to reach a total raising of £3.5m. The company will require more cash and I talking to its offtake partner.
MAIN MARKET
LED lighting and wiring accessories supplier Luceco (LUCE) had a strong fourth quarter despite the tough market conditions for some parts of the business. Trading was better than forecast with a modest improvement in pre-tax profit to £21.9m expected. Net debt is expected to be £69m.
Dukemount Capital (DKE) had £28,000 in cash at the end of September 2024, while net assets were £59,000.
Neuchatel Investment is subscribing for 29.9% of Aseana Properties Ltd (ASPL). This is expected to raise $5.45m at $0.08 cents/share.
Andrew Hore
Quoted Micro 13 January 2025
AQUIS STOCK EXCHANGE
Good Life Plus (GDLF) has launched more partnerships in the past three months, including with Reach and News UK. The family interests of Mark Blandford are subscribing £1m for an issue of convertible loan notes with up to £1m more on offer to other investors until the end of January. The cash will be invested in expanding customer acquisition and partnership, plus to enhance the premium prize draw operations. There are also plans for international expansion.
Healthy snacks supplier S-Ventures (SVEN) has published its results for the 15 months to December 2023. This is part of the work that is required to be in a position to reverse the operating subsidiaries into AIM shell Riverfort Global Opportunities (RGO). Annualised revenues grew 170% to £20m. The cash outflow from operating activities was £1.4m in the 15 month period.
Oscillate (MUSH) has appointed Robin Birchall, a former director of Helium One Global, as chief executive and Steve Xerri becomes an executive director. Robin Birchall will receive options over 2% of the current issued share capital at a price equivalent to the share price at the time of a move to AIM or other Recognised Investment Exchange, plus he will receive a payment to buy 4.25 million shares. Igraine (KING) has reduced its shareholding in Oscillate from 5.05% to 3.64%.
Automotive electrification technology developer Equipmake (EQIP) has received approaches from strategic investors and potential acquirers. Discussions continue. In the six months to November 2024, revenues improved 19% to £2.47m with EV components revenues increasing 80% to £254,000. There was a cash outflow from operating activities of £2.37m and capital spending of £686,000. Bus repowering services are being scaled down because of low volumes and this will save £2m/year. There was £2m in the bank at the end of November 2024. The contracted order book is worth £11m.
Zentra Group (ZNT), which was previously One Heritage, has signed a new relationship agreement with 65.2% shareholder One Heritage Property Development. This ensures at least two independent directors and the majority shareholder’s nominated director will not vote on outlined matters.
RentGuarantor (RGG) has raised £455,000 from a convertible loan notes issue to RentGuarantor chief executive Paul Foy. They are redeemable on 18 November 2026.
Chris Akers has a 5.1% stake in Global Connectivity (GCON), while Chris New increased his shareholding from 8.88% to 9.75%. Keith Harris raised his stake from 9.98% to nearly 11%. Premier Miton has increased its shareholding from 4.74% to 5.21%, while Placifor Investments raised its stake from 9.76% to 10.7%. Livia Meyer’s stake has reduced from 16.97% to 8.78%. Barry Hersh has still not paid the £375,000 subscription amount for 37.5 million shares.
ChallengerX (CXS) has raised £120,000 via a convertible loan note, which is convertible into 120 million shares when the company is readmitted to Aquis. The cash will fund due diligence on potential acquisitions.
Ace Liberty and Stone (ALSP) chairman Dr Antonios Ghorayeb bought 23,940 shares for a total of £11,475 in September and October. The announcement is late.
AIM
Data and marketing services provider Jaywing (JWNG) has sent out the circular to gain shareholder approval for the cancellation of the AIM admission. This follows a requisition notice by 29.5% shareholder Michael Ashcroft and the company has decided that the departure from AIM is in the best interests of the shareholders. The general meeting is on the 5 February.
It has been a topsy turvy week for legal services provider RBG Holdings (RBGP). It initially terminated the consultancy agreement of Ian Rosenblatt due to breaches of contract and offensive behaviour. He has restrictive covenants lasting until July 2028, but was identified as owner of AWH Acquisition Corp, which is regulated as a firm of solicitors that changed its name to Rosenblatt Law. He is a director of this company along with former RBG Holdings director Tania MacLeod. Ian Rosenblatt had requisitioned a general meeting to remove Jon Divers as chief executive of RBG Holdings. At the end of the week after the market closed, RBG Holdings said it had entered into an exclusivity period with Ian Rosenblatt for the sale of the Rosenblatt brand business to Rosenblatt Law. Ian Rosenblatt will withdraw his winding up petition and the general meeting notice. This exclusivity lasts until 24 January.
Downhole oil and gas technology developer Enteq Technologies (NTQ) says testing of the SABER rotary tool results in the requirement for further engineering modifications. Delays to the start of active test drilling with an Australian customer mean that the timing of revenues is uncertain. The drilling could begin in April. There are also additional costs. This means that cash will not last as long as previously expected and Cavendish has pulled its forecasts. Enteq was expected to move into profit in 2026-27.
There was a strong end to the year for floorcoverings distributor Likewise (LIKE). The market fell but Likewise continues to grow. Fourth quarter revenues were 10% higher than the corresponding period. Full year revenues of £150.8m was 3% ahead of forecast. A new logistics centre has been acquired in Plymouth.
Team Internet Group (TIG) announced that it had received two bid approaches from TowerBook Capital Partners and Verdane Fund Manager AB. Each of the potential bidders was proposing an offer of 125p/share. Previous approaches were rejected for being too low. Both approaches are being considered. TowerBook Capital Partners has since decided not to bid.
Pawnbroker H and T (HAT) says 2024 trading was in line with expectations. The pledge book increased 26% to £127m, with more loans of over £5,000. There was strong demand for lower price jewellery, which boosted retail sales. National Insurance changes will increase costs by £2m/year. Octopus Investments has cut its stake from 10.9% to 9.98%. The 2024 results will be published on 18 March.
ImmuPharma (IMM) says the preclinical research programme for autoimmune therapy P140 should pave the way for earlier, more accurate diagnostics, as well as better identification and improved monitoring of patients. Detailed data is not being published.
Plastic products supplier Coral Products (CRU) has sold and leased back two freehold properties for £1.7m. The initial annual payment of the 15-year lease is £155,000. The £1.1m of related mortgages will be repaid. A final agreement for the insurance claim for the May 2020 fire at one of the company’s premises has resulted in a payment of £900,000.
Arecor Therapeutics (AREC) is ceasing the operations of Tetris Pharma and it is returning the rights to Ogluo, a glucagon auto-injector pen for severe hypoglycaemia, to Xeris BioPhaarma. A partner of Tetris Pharma lost a key NHS Tender, which means revenues will be lower than expected in 2025. There will be a £3m write down. This enables Arecor Therapeutics to concentrate on core products, including ultra-rapid acting insulin candidate AT278, where partner discussions continue.
Automated transport analytics provider Cordel (CRDL) has won a new contract with Angel Trains. It will pinpoint track geometry data from high-speed passenger trains, rather than dedicated monitoring trains. This should help to reduce costs. The technology is Network Rail certified.
A trading statement from animal feed additives supplier Anpario (ANP) has sparked the fifth upgrade to 2024 forecasts. There was strong growth in Middle East and Africa. Shore has raised its pre-tax profit forecast to £5.5m, compared with £3.5m in 2023. Net cash is estimated to be £10.5m.
MAIN MARKET
Kitchenware retailer ProCook Group (PROC) had a strong third quarter, which is the third quarter in a row where the growth rate has accelerated. Third quarter revenues were 11% higher at £25.6m, which means that the year-to-date figure is 9.2% ahead at £54m. Third quarter growth in retail was 12.4%, helped by store openings. Three more stores will be opened in the fourth quarter. Ecommerce growth was 9.2%. Like-for-like growth to December 2024 was 3.8% with ecommerce growing fastest. Net cash was £1m at the end of 2024.
Andrew Hore
Quoted Micro 16 September 2024
AQUIS STOCK EXCHANGE
Exchange services provider Aquis Exchange (AQX), which is also quoted on the Aquis Stock Exchange, has already warned that the loss of a software contract will hit revenues this year. Net interim revenues were still 4% ahead at £10m. Pre-tax profit was 8% lower at £1.1m. There was a small dip in revenues of the core exchange division. Net cash was £14.5m at the end of June 2024. There are plans to increase investment in technology to increase the addressable market, so year-end cash will be slightly lower than expected at £15.1m.
SulNOx Group (SNOX) increased revenues from £203,000 to £544,000, but the loss was still around £1.9m. Cash was £2.15m at the end of June 2024. A generator-based study for the SulNOxEco fuel additive shows fuel savings of 15%.
Ananda Developments (ANA) has raised up to £2.1m via a placing and offer at 0.3p/share and more than £2m has come from Charles Morgan, the company chairman. Charles Morgan and Melissa Sturgess have agreed to capitalised debt owed to them. The cash will fund the manufacture of MRX1 for CIPN and Endometriosis phase II studies, as well as a pharmacokinetic study for MRX1 in Australia.
Newbury Racecourse (NYR) improved interim revenues 16% to £9.28m, while the cost base rose 11%. The loss was reduced from £649,000 to £352,000. The remainder of the year is expected to be difficult.
The increase in the value of the 15% stake held by Global Connectivity (GCON) lead to the July 2024 rising from £7.8m to £17.2m in a six-month period. That is 4.25p/share.
Walls and Futures REIT (WAFR) reported a 4.5% decrease in NAV to 85p/share, although investment property value rose 2.4%. The was reduced to £44,000. The company is finding it difficult to raise additional funds.
Ace Liberty and Stone (ALSP) maintained revenues at £5.6m. There is 96% occupancy of the group properties. NAV fell from £34.4m to £31.7m at the end of April 2024.
Voyager Life (VOY) says that M3 Helium’s preparations for bringing the Rost1-26 well into production are advanced. Voyager Life has an option to acquire M3 Helium.
Cooks Coffee Company (COOK) increased sales by 23% to £13.8m in the 22 weeks to 1 September. The main growth was in the UK stores. Ten further outlets ae expected to open by the end of the financial year.
Investment company EPE Special Opportunities Ltd (EO.P) reported a reduced loss because there was a gain on fair value movements on investments compared with a loss last time. There was cash of £18.4m at the end of July 2024. NAV was 319p/share at the end of July, and it fell back to 314p/share by the end of August.
Warrants held by lupus treatment developer ImmuPharma (IMM) to subscribe for shares in Incanthera (INC) at 9.5p each have been extended to the end of March 2025 in return for a £75,0000 payment by ImmuPharma.
BWA Group (BWAP) chairman Jonathan Wearing has subscribed for 50 million shares at 0.5p each.
Jonathan Adnams has stepped down as chairman of Adnams (ADB) because of ill health. Simon Townsend will be interim chairman.
AIM
Greatland Gold (GGP) shares returned from suspension after announcing the purchase of Newmont Corporation’s 70% stake in the Havieron gold-copper project, as well as 100% ownership of the Telfer gold-copper mine and other assets in the Paterson region. The total cost is $475m in cash and shares. A placing raised £248.6m ($325m) at 4.8p each, which is a 30% discount to the market price. Wyloo is subscribing up to $100m and Newmont Corporation will own more than 20% of the gold explorer. A retail offer raised £6.7m.
Marlowe (MRL) is demerging the occupational health division as an independent AIM company called Optima Health by the end of September. Shareholders will receive one share for each Marlowe share held. Marlowe will focus on testing, inspection and certification operations. So far, £41m of the £75m share buy back has been spent. Marlowe continuing revenues are forecast to be £306m and pre-tax profit £13m.
Energy optimisation services provider Inspired (INSE) interim revenues edged up from £44.6m to £45m and pre-tax profit dipped from £6.2m to £5.7m. That was lower than forecast. Optimisation revenues declined, but product mix meant that margins were better. Cross-selling is helping to grow the ESG division and other parts of the business. Net debt is £57.6m. There is only £2.2m of contingent consideration due to be paid. Debt should start to decline over the next few years.
Chain and transmission equipment Renold (RNO) has made another earnings enhancing acquisition. Canada-based MAC Chain Company is being bought for $31.4m. This fits well with the CVC business and enables expansion into the forestry market. Last year’s pre-tax profit was $3.5m.
Optimisation software provider Checkit (CKT) reported a flat loss of £2.3m on the back of a 16% increase in interim revenues to £6.7m. However, the full year figure is set to fall from £4.2m to £3.9m. Annualised recurring revenues are £13.8m and that underpins the full year revenues forecast of £14.2m. Net cash was £7m at the end of July 2024 and higher R&D spending means that year-end cash is likely to be slightly lower than previously expected at around £5m. Chairman Keith Daley bought 135,000 shares at 21p each.
Cross-border currency payments services provider Finseta (FIN) reported a sharp increase in first half profit, although investment in growing the business will hold back profit in the short-term. There was a £100,000 contribution from the final payment relating to the licencing agreement with Avila House. The loss of that income, a higher depreciation charge and additional overheads for new operations such as a corporate Mastercard and a Canadian office means that full year pre-tax profit could dip from £1.4m to £1.3m. The benefits of the investment will be seen next year with an expected jump in pre-tax profit to £2.5m.
Contract research and infectious disease study services provider hVIVO (HVO) reported 2024 revenues 31% ahead at £35.6m, while pre-tax profit improved from £4.18m to £7.15m. The new Canary Wharf site has opened and provides additional capacity. Cash was slightly lower than anticipated at £37.1m.
Gaming machines hardware and displays supplier Nexteq (NXQ) was hit by destocking in both of its divisions. Interim revenues and profit were expected to fall. Interim revenues were 14% lower at $48.2m. Net cash reached $36.9m. The full year revenues forecast is being maintained at $93.9m to £114.3m.
Packaging equipment and automation provider Mpac Group (MPAC) reports a strong improvement in first half figures, although the comparatives were weak. Revenues improved from £52.8m to £60m, while pre-tax profit rebounded from £1.9m to £4m. The closing order book is £71.4m. Net debt is £4.9m and should be lower at the year end.
Trading in Eurasia Mining (EUA) shares has resumed following the publication of 2023 accounts late on Friday. Net cash was £1.1m at the end of 2023. The company has also agreed a one year working capital facility for up to £2.5m. The loan lasts until next August and is convertible at 2.7p/share. There are five tranches with around £1m of the loan dependent on a term sheet to sell the Russian asset. The lender will receive a payment of 12.5% of the facility, plus 5% of any draw downs, in shares at 2.3p each.
Shore Capital upgraded animal feed additives supplier Anpario (ANP) after it reported an 11% increase in interim revenues of £17m on the back of a much greater rise in volumes and slightly lower pricing. Raw material costs have stabilised. Full year revenues expectations have been raised from £33m to £34m, while the pre-tax profit estimate is increased from £3.9m to £4.4m, up from £3.5m in 2023.
Fulcrum Metals (FMET) is raising £643,500 at 8p/share and directors will subscribe for an additional £114,500 once the interims are published. The cash will be invested in the Teck-Hughes and Sylvanite gold tailings projects in Canada. This should enable nearer-term revenues Management will also review opportunities for exploration drilling on the Tully and Big Bear prospects and a potential technology testing facility in Ontario.
MAIN MARKET
LED lighting and wiring accessories supplier Luceco (LUCE) interim revenues improved 8% to £109.6m and underlying pre-tax profit rebounded from £9.4m to £11.2m. Like-for-like growth was 3.6%. The interim dividend was improved from 1.6p/share to 1.7p/share. LED lighting revenues declined, while portable power and wiring accessories revenues improved. Panmure Liberum forecasts a full year pre-tax profit improvement from £21.2m to £23m.
Hostmore (MORE) has terminated the proposed acquisition of the TGI Friday’s master franchise owner. The sale of corporate stores has reached an advanced stage. However, the proceeds may be lower than the value of related borrowings so there will be no return for the company. Once the sale is complete the holding company will be wound up.
Critical Metals (CRTM) has raised £50,000 from NIU Invest and has entered into a term sheet for a cash injection of up to £2.5m. NIU has already invested £1.1m in convertible loan notes as is the latest investment. The conversion price is 2p/share. NIU is also receiving warrants exercisable at 0.5p/share.
Shell company Ikigai Ventures (IKIV) has been moved to the new, temporary shell category. This provides one year to comply with additional requirements and a further two years to make an acquisition.
Andrew Hore
Quoted Micro 25 September 2023
AQUIS STOCK EXCHANGE
Aquis Stock Exchange owner Aquis Exchange (AQX) reported interims showing growth in all four divisions of the group and the Aquis Stock Exchange remains profitable. Group revenues improved from £7.85m to £9.34m, while pre-tax profit rose from £699,000 to £1.15m. Net cash is £13.9m.
Brewer Adnams (ADB) says trading improved in the second quarter and cost savings started to kick in. This partly offset the decline in revenues in the first quarter, but the interim revenues were still slightly lower at £30m. Operating costs and interest charges increased, and the loss trebled to £3.13m. Adnams is taking on new customers, but the average order size has reduced. Trading conditions are uncertain, but the new customer sand listings will help to boost the second half.
Africa-focused battery metals company Marula Mining (MARU) is considering moving to the standard list as an alternative to AIM. Management believes that this would not add any additional time to the process, and it believes that the proposed investment by Q Global Commodities will make Marula Mining large enough to be eligible for the standard list. It is also planning listings on the Nairobi Securities Exchange and the Johannesburg Stock Exchange. Warrants exercised at 4p/share raised £50,000. A shipment of 27.5 tonne high-grade material processed from stockpiles at the Blesberg lithium and tantalum mine in South Africa has been delayed. The offtake agreement with Southern Jade Resources has been terminated and an alternative agreement is being finalised. Additional drilling at Blesberg is progressing and initial assay results should be published in late October.
Apollon Formularies (APOL) has executed a binding letter of intent with Sproutly Canada Inc, who will acquire the assets of the cannabis-based drug discovery company. After completion of due diligence, the assets will be acquired in return for shares equivalent to 49% of Sproutly. The effective valuation is C$7m (£4.2m). Sproutly has to go through audits and other regulatory requirements to become active and trading on the Canadian Stock Exchange.
Fuel additives SulNOx Group (SNOX) says it requires new equity investment from existing and new investors in order to achieve faster and sustainable revenue growth. There would additional industry hires for the board and sales personnel. There will also be increases in stock levels and new products will be developed. The board is seeking shareholder authority to issue new shares. Mohanned Nawaz Haq does not agree with the new strategy and the board recommends voting against his appointment at the AGM on 26 September.
Newbury Racecourse (NYR) improved interim turnover by 3% to £8.03m, but the company fell into loss because gross margins slumped. The nursery increased its contribution, but there were lower attendances at races. An event in July had the highest attendance for four years. Next year will get the full benefits of the media rights deal.
Broker and wealth management company Oberon Investments (OBE) has raised £2.5m via a placing at 3.6p/share and a retail offer could raise a further £500,000. The share price dipped 2.78% to 3.5p. The cash will fund expansion, including the recruitment of revenue generating teams. The Winterflood Retail Access Platform offer has a minimum subscription of £50. Investors can apply for shares via their broker or intermediary and the closing date is 4.30pm on 25 September.
Silverwood Brands (SLWD) has been given an extension of the time to deliver its defence to the legal action by Lush and VSA resigning as corporate adviser and being replaced by Peterhouse. Lush is refusing to recognise the transfer of a 20% stake to Silverwood Brands. VSA Capital (VSA) owns 0.88% of Silverwood Brands and says that the share price slump will hit its interim results to September 2023. It will make the loss larger than expected.
Property investor Ace Liberty and Stone (ALSP) increased net assets by 1% to £34.4m at the end of April 2023. Disposals meant that full year revenues fell 2.5% to £5.56m. There is £6.23m in cash available for investment. No final dividend is declared, partly due to the lack of distributable reserves.
Cadence Minerals (KDNC) investee company Evergreen Lithium has completed the final analysis of its EXOSPHERE BY FLEET Ambient Noise Tomography geophysics survey at Bynoe. Nine pegmatite targets have been identified. Approvals are required for drilling.
Watchstone Group (WTG) had net assets of £7.6m at the end of June 2023, including cash of £8.3m. By 19 September, cash had fallen to £7.6m. The claim against PwC was dismissed by the High Court and Watchstone had to settle legal costs. Canadian legal action continues.
Helium Ventures (HEV) has raised £250,000 at 4p/share. There are plans to move to AIM rather than the standard list, while maintaining the Aquis quotation. It hopes to do this by the end of this year. The potential acquisition of tracking technology company Trackimo is progressing, and Mark Notton has been appointed as its chief executive.
MBH Corporation (M8H) has acquired caravan and motorhome retailers Lincoln Leisure Vehicles and Golden Castle Caravans for an initial £400,000 in cash and £2.58m in loan notes. There will also be share issues totalling £2.24m over the next two years. The companies made an operating profit of £660,000 last year. These businesses will be integrated with the existing caravan and motorhomes operations.
Pharma C investments (PCIL) says that the general meeting scheduled for 27 September will not go ahead because the requisition has been withdrawn. The proposals were to remove Gavin Hilary Sathianathan and appoint Paul Ryan and Noel Lyons to the board.
Medical device developer TruSpine Technologies (TSP) has appointed Victoria Sena and Samuel Ogunsalu to the board. The company is not appealing the disciplinary notice from the Aquis Stock Exchange and the new appointments will improve corporate governance.
SuperSeed Capital (WWW) says that the SuperSeed II LP has sold Garvis, a SaaS company offering language model technology and AI-native demand forecasting. The original investment was in September last year. There was a triple digit IRR on the investment.
Lift Global Ventures (LFT) subsidiary Miriad has been appointed as corporate communications agency to Imperial Diagnostix Laboratories, which plans to float next year. Imperial Diagnostix Laboratories provides point of care testing products and has been granted access to the NHS supply chain.
Wishbone Gold (WSBN) says drilling has started at the Red Setter project in Western Australia. Initial targets are at a shallow depth and the company is seeking broad spreads of mineralisation. Drilling at the Cottesloe prospect reinforces previous findings. Additional drilling will be 50% funded by the Western Australian government’s EIS scheme up to a total of A$220,000.
Invinity Energy Systems (IES) says that Canadian company Elemental Energy has commenced operation of the company’s 8.4MWh Invinity VS3 vanadium flow battery. This is the largest operation so far.
Majestic Corporation (MCJ) reported flat revenues of $13m, while pre-tax profit dipped from $980,000 to $862,000. There was $680,000 generated from operating activities. The metals recycler has $1m in the bank. Rising interest rates have had a negative impact on commodity prices.
EPE Special Opportunities (EO.P) directors and the managing partner of EPIC Investment Partners bought a total of 16,837 shares at 160p each.
Kasei Holdings (KASH) has switched its corporate adviser to VSA.
AIM
International retailer Mothercare (LON: MTC) reported a decline in full year revenues from £82.5m to £73.1m. A fall in admin expenses and interest costs, partly offset this decline, but underlying pre-tax profit still slumped from £8m to £3.4m before restructuring costs. The lack of contribution from Russia was a factor in the lower revenues – this is part of the Alshaya franchise area. Middle East demand remains subdued since Covid. Net debt rose from £9.9m to £12.4m. The loan facility is being renegotiated. The current interest rate is 19.2%. Since the year end, a reduction in pension contributions has been agreed. In the ten years to March 2033 the total contributions will be £34.9m, down from £73.7m in the previous ten years. The revaluation of the pension fund shows a deficit of £35m.
Finsbury Food (FIF) is recommending a 110p/share bid by a company backed by DBAY Advisors valuing the cake maker at £143.4m. There is a non-voting share alternative to the cash bid for eligible investors. The bid is less than ten times prospective earnings. The share price has not been at this level since early 2019.
Renewable electricity supplier Good Energy (GOOD) had a strong first half due to higher tariffs and lower supply costs, but the second half will be tougher. Interim revenues were 46% ahead at £156.1m and the company swung from a loss to a pre-tax profit of £13.1m. The energy services business is losing money as it is being built up. The interim dividend has been raised by one-third to 1p/share. Tariff reductions are happening ahead of falls in supply costs for the company and that will lead to a second half loss, but Good Energy will still be profitable for the full year.
Orcadian Energy (ORCA) announced that it has entered non-binding heads of agreement with a North Sea operator to farm out the Pilot project for a full carry until first oil. Orcadian Energy would retain a 18.75% working interest. The agreement includes the drilling of five subsea wells. Orcadian Energy will receive $100,000 when the agreement is completed, plus $100,000 if it is awarded an additional licence. Field development plan approval would trigger a payment of $3m.
Trading has deteriorated since August at replacement windows supplier Safestyle (SFE) and it is expected to lose £10m in 2023. Order levels are falling short of budget. Net debt could reach £6m at the end of 2023 – the credit facility is £7.5m. Management wants to strengthen the balance sheet.
Harvest Minerals (HMI) reported interims showing a near-doubled loss as demand for fertiliser fell and pricing was lower in the period. The second half sales are normally much greater than in the first half, but they continue to be disappointing. Low crop prices mean that farmers are not investing to boost production. Cash has declined and the company has moved into net debt of £1.4m, partly due to a jump in inventories.
Eqtec (EQT) announced that the Billingham waste-to-energy project is not going ahead. Potential customers have closed facilities and the project is behind schedule. So far, £4m has been invested. There is a possibility of getting some of this cash back. Eqtec is also taking legal action against its partner in the Deeside project, seeking repayment of £4m of loans. The focus is other European markets. Forecast 2023 revenues have been slashed by more than three-quarters.
Scancell (SCLP) reports that early data from the phase II SCOPE study of SCIB1 in combination with checkpoint inhibitors as a treatment for advanced melanoma are positive. Tumour reduction at 13 weeks is 31-94%. This is for a relatively small number of patients, but it does indicate that there is strong potential for the treatment. The second stage of the study has a strong probability of success. This data will be available in the first half of 2024. Potential partners are likely to be interested.
Firering Strategic Minerals (FRG) raised £756,000 at 6.5p/share. This cash will be used to define identified pegmatite targets through a drilling campaign at the Atex lithium-tantalum project in Cote d’Ivoire. Firering Strategic Minerals holds 90% of the company that owns the Atex project. Firering Strategic Minerals also owns 75% of Bri Coltan, which owns the coltan rights for the Atex area. Coltan is composed of tantalum, niobium, iron and manganese. Nine target areas have been identified, including the six newer ones. The latest drilling is planned for the fourth quarter of 2023.
Alien Metals (UFO) says the latest drilling results from the 90% owned Hancock Iron Ore project in Western Australia indicate the potential for the project. There is high-grade mineralisation. The resource estimate will be upgraded.
Digital coupons and loyalty technology provider Eagle Eye (EYE) reported organic growth of 29% last year. International revenues grew strongly as new retailers were added to the service and when they sign up retailers tend to stay with the company. This year, pre-tax profit could improve from £4.3m to £6.2m. The cash pile reached £9.3m at the end of June 2023.
Cosmetics supplier Warpaint London (W7L) is bucking the trend of the consumer sector, where many other companies selling to the public are performing poorly. That is down to the fact that Warpaint London is in the value end of the cosmetics market. It is also adding retailers and benefiting from the international spread of the business. UK interim revenues were 28% ahead, while group revenues were 46% higher.
Structural steel supplier Billington (BILN) significantly improved margins in the first half and it still has a strong order book despite the contraction of the construction sector. This reflects the broad spread of projects being supplied. Revenues were 30% higher at £60.1m and pre-tax profit jumped from £1.3m to £4.59m.
There is not going to be a bid for Kinovo (KINO), which was not going to recommend the 56p/share offer and there was no increase tabled.
MAIN MARKET
Motor dealer Pendragon (PDG) plans to sell its entire core business to North American automotive retailer Lithia Motors for £250m. This would turn Pendragon into a software business and there could be a £240m payout to shareholders, equivalent to 16.5p/share. Lithia Motors would also subscribe £30m for 279.4 million shares and will roll out Pendragon’s Pinewood dealer management software to its existing 50 UK sites. However, there has been a bid approach for the whole company from Sweden-based Hedin Mobile and US transportation company PAG International. The initial 28p/share offer was turned down, but a higher bid of 32p/share is being considered.
First Tin (1SN) still has cash of £7.9m and that is enough to fund the DFS for the Taronga tin project in Australia. The cost of the project could be reduced by using solar power and more efficient processing. The mineral resource estimate has been increased by more than 240% to 133 million tonnes. The Tellerhauser project in Germany hopes to gain a mine permit in the third quarter of 2024.
Shipbroker Braemar (BMS) has reaffirmed that it will make an underlying pre-tax profit of at least £20m for the delayed results for the year to February 2023. The investigation into transactions between 2006 and 2013 is nearing completion. There may be adjustments to previous accounts.
Andrew Hore
Quoted Micro 20 February 2023
AQUIS STOCK EXCHANGE
EDX Medical Group (EDX) acquired Torax Biosciences for the issue of 1.67 million shares at a notional 6p each. Torax provides development and pilot scale fabrication of immunochemistry-based assays and diagnostic testing services. The experienced team at Torax was an attraction.
Marula Mining (MARU) signed a co-development and relationship agreement with a subsidiary of South African mining and investment company Q Global Commodities, which had already agreed to subscribe £3.75m for shares. Q Global chief executive will become Marula Mining chairman, subject to regulatory approval and admission to AIM. Marula Mining is expanding its graphite interests through the proposed purchase of a 75% stake in ten licences comprising the Nyorinyori graphite project in Tanzania.
Electric vehicle drivetrains developer Equipmake (EQIP) reported more than halved interim revenues from £2.32m to £1.05m and the loss increased to £2.76m. There was cash of £7.44m at the end of November 2022. The contracted order book is worth £9.1m. That includes 100% of second half expected revenues as well. There have been delays in delivering vehicles to First Group, so these will be in the 2023-24 figures.
Energy supplier Good Energy (GOOD) has launched a new smart export product for Feed-in Tariff for FiT customers, which could help them to earn more from electricity they generate. There are plans for a new domestic export tariff for households in the next few months.
AQRU (AQRU) has incorporated the London Carbon Exchange and it has a wating list of investors interested in using the platform when it is launched later this year. The platform allows trading in the voluntary carbon market.
RentGuarantor Holdings (RGG) has entered a three-year agreement with X1 Property Management, a residential and student letting company, which hopes to generate secure tenants.
Digital asset investor Kasei Holdings (KASH) raised £500,000 at 12p a share from Aalto Capital. This is a 12.5% stake. ChallengerX (LON: CXS) raised £250,000 through a share issue to Aalto Capital at 0.45p a share. An equal number of warrants exercisable at 0.45p each were also issued.
Spirits company Rogue Baron (SHNJ) non-exec Charlie Wood acquired an initial 600,000 shares at 0.846p each. He also has an interest in the 1.1 million shares owned by Orana Corporate, where he owns 25%.
Hikmat El Rousstom has resigned as non-exec director of Ace Liberty & Stone (ALSP), while at British Honey Company (BHC) Sophie Guifang Luo stepped down from the board to pursue other interests.
Love Hemp (LIFE) has withdrawn from trading on the Aquis Stock Exchange as of 14 February. Trading in Pioneer Media Holdings Inc (PNER) will end on the Aquis Stock Exchange on 9 March.
AIM
Purplebricks (PURP) is launching a strategic review because the board believes the company is undervalued. The share price slumped to 7.86p, which is a new low. Changes to the estate agency business have disrupted the third quarter performance. Instruction numbers were lower than expected. Management has identified an additional £4m of annualised cost savings. There will be £1.2m of one-off costs in the second half. The full year adjusted EBITDA loss will be between £15m and £20m. It was previously expected to be around £10m.
Semiconductors designer EnSilica (ENSI) moved into operating profit in the first half and momentum has continued in the second half. A €5m contract has been won to develop a chip for the satellite communications market, which will start generating revenues in 2023-24. Interim revenues are nearly one-quarter higher at £8.59m. The growth came from design and supply. There was a pre-tax loss of £202,000, but R&D tax credits meant that there was a £322,000 profit after tax. A small full year pre-tax loss is forecast for the full year with a £844,000 post-tax profit.
Semiconductors designer Sondrel Holdings (SND) says the project design for a customer in the automotive sector has been delayed because project design will not be completed until the first quarter of this year. The payment for the first milestone was in January and the second will not be until May. The 2022 loss is higher than forecast and there will still be a small loss in 2023.
Esports company Gfinity (GFIN) raised £2m at 0.15p a share, having originally sought £1.5m. The cash should last for 12 months. Technology platform Athlos still requires a strategic partner and there is enough funding for this for around four months. If not, then it could affect the restructuring and other plans for the rest of the business. At 0.1575p, down 33%, the current share capital is valued at Gfinity at £2.1m. Each placing share comes with a warrant to subscribe for one share at 0.15p and these warrants are exercisable between six and 18 months after the placing shares are admitted to AIM.
Fertiliser producer Harvest Minerals (HMI) had cash of A$2.72m at the end of 2022. Sales of KPFertil are growing and that has enabled the repayment of A$1.2m of debt. A court ruling requires Agrocerrado to pay $463,000, because it failed to acquire the minimum tonnes of KPFertil required by the agreement between the companies.
Medical devices developer Creo Medical (CREO) raised £28.5m from the placing at 20p a share, which was more than the £25m initially targeted. The cash will be used for further development and commercialisation of Creo Medical’s minimally invasive electrosurgical devices. With up to £5.2m more to come from the open offer, Cenkos believe that this is enough cash to fully commercialise the current product portfolio. Revenues of £100m are forecast by 2027.
Clontarf Energy (CLON) is forming a joint venture with US-based NEXT-ChemX Corporation, which covers the deployment and marketing of the latter’s direct lithium ion extraction technology in Bolivia. There is limited water and energy consumption with this technology. The share price soared by 129% to 0.172p. Pilot testing and extraction starts in March. Clontarf Energy will contribute $500,000 towards the pilot plant for exclusive use of the technology. There will also be share issues to NEXT-ChemX.
Promotional goods supplier software platform provider Altitude (ALT) says results for the year to March 2023 will be much better than expected. Zeus has upgraded its pre-tax profit forecast from £500,000 to £800,000 and that is the second upgrade in three months.
Deferral of contracts by clients has led to forecast downgrades for Jaywing (JWNG) and 2022-23 pre-tax profit expectations have been more than halved to £1m, while next year’s forecast has been slashed from £3.7m to £2m. The digital marketing services provider won an Australian online education services contract which will help to offset some of the decline in forecast revenues in 2023-24.
Mkango Resources (MKA) raised £3.5m at 12.5p and this will fund further development of the Songwe Hill rare earths project. Talks with potential funders for the project continue. Mkango Resources will also provide a €2.5m loan facility in HyProMag, which is developing a rare earth recycling production facility in Baden-Wurttemberg. The company’s stake in HyProMag could increase to 66.8%. Chief executive William Dawes acquired 400,000 shares at 12.95p each and 400,000 shares at 12.75p each. He owns 4.42%
WH Ireland has reduced its forecasts for SaaS-based retail software provider itim Group (ITIM) because of contract delays. Revenues for 2022 will be slightly below previous forecasts and that increases the loss by £200,000 to £1.1m. The 2023 loss is expected to be the same. Annualised recurring revenues are £13m, which is lower than expected. Net cash is £3.9m.
Mark Horrocks has increased his stake in cloud-based international payments services provider Cornerstone FS (CSFS) from 8.66% to 13.4%.
Dekel Agri-Vision (DKL) achieved record local process for its crude palm oil in January and there were strong extraction rates from the fruit bunches. However, there were disappointing volumes because of aggressive rival bidding for fruit bunches, although this has eased this month. There no changes to 2023 expectations of a sharp rise in profit.
MAIN MARKET
The ignominious life of Hawkwing (HNG) as a quoted company appears to be coming to an end. Kroll Advisory has been appointed administrator to the company. Hanover Investment Management demanded repayment of £2.2m relating to a convertible loan note. Hawkwing is owed £13.7m plus interest and add-ons by IFG (SPP), where liquidators have been appointed. This is secured on two subsidiaries and their assets, but it is uncertain how much can be clawed back. The cash shell was formerly sports representation and marketing company TLA Worldwide, a past AIM embarrassment which released a profit warning after the market had closed for Christmas.
Zamaz (ZAMZ) has acquired Dallatte Italia, a manufacturer of dairy products. This fits with the Bella Dispensa subsidiary and its Made in Italy ecommerce service. Management wants to change the terms of its bonds by extending their life and increasing the interest rate.
Trading in Net Zero Infrastructure (NZI) shares recommenced last week following publication of accounts and interim figures. The share price fell from 2.2p to 1.55p.
RC365 Holding (RCGH) intends to issue 18 million shares to Hatcher Group Ltd and in return it will receive 38.64 million shares in Hatcher Group. The two firms will collaborate in research and development of smart algorithm technology and other fintech services.
Andrew Hore
Quoted Micro 30 January 2023
AQUIS STOCK EXCHANGE
Aquis Stock Exchange owner Aquis Exchange (AQX) says 2022 trading was in line with expectations. The 2022 results will be published on 30 March.
Electric vehicle drivetrain technology developer Equipmake Holdings (EQIP) has raised £6.235m at 5p a share. That was slightly more than initially indicated. A lease is being secured on additional premises. The contracted order book is worth £8.6m. Interim revenues were £1.05m and the full results will be announced on 15 February.
Invinity Energy Systems (IES) says existing contracts underpin growth in in 2023. There are £22m of vanadium flow battery systems due for delivery in 2023 and a further £7.4m order book for 2024. There was £5.1m of cash in the bank at the end of 2022. Pilot projects with Siemens Gamesa should begin in the summer and a next generation product should be available in the first half of 2024.
Cadence Minerals (KDNC) has completed the sale of its joint venture interest in Yangibana rare earths project for A$9m of shares in ASX-listed Hastings, which is equivalent to 1.9%. Evergreen Lithium is expected to list on the ASX on 10 March – Cadence Minerals owns 15.8 million shares, which are expected to be valued at A$3.96m.
A full year update from Chapel Down Group (CDGP) shows string growth in sparkling wine sales. Group revenues were 10% ahead at £15.6m with momentum increasing in the second half. Margins should have improved.
Ace Liberty & Stone (ALSP) reported a small dip in interim pre-tax profit to £731,000, partly due to additional charges relating to a property in Sunderland. There is available cash of £9.5m for further property investments and contracts have been exchanged on a Dorchester property.
Helium Ventures (HEV) had £157,000 in cash at the end of October 2022. The proposed acquisition of Vestigo Technologies, which supplies tracking software, continues to be progressed.
Goodbody Health (GDBY) is partnering with Datar Cancer Genetics to offer the Trucheck circulating tumour cell screening service.
Tap Global (TAP) has signed up its first client for its crypto app. Global cryptocurrency exchange Bitfinex will use the service to offer clients a prepaid Mastercard and convert cryptocurrency to Euros.
SuperSeed Capital (WWW) says the SuperSeed II LP has invested in eight SaaS companies and a further investment should be made in the first quarter of 2023.
RentGuarantor Holdings (LON: RGG) is licencing its software to Clever Student Lets to use on its student letting platform.
Guanajuato Silver Company Ltd (GSVR) has published fourth quarter production figures. Silver output was 401,000 ounces in the period, while gold output was 4,000 ounces. Full year production was one million ounces of silver and 11,000 ounces of gold.
AQRU (AQRU) has launched its lending pool via subsidiary Accru Finance. This allows investors to generate yield from tax credit receivables originating from the IRS in the US. Annual returns of up to 10% are indicated.
Good Energy (GOOD) was one of three energy suppliers criticised for not providing enough help to their prepayment customers to claim the £400 of support vouchers from the government.
Marula Mining (MARU) says that initial deliveries of 1,000 tonnes of high-grade lithium ore from the Blesberg mine will commence shortly and take four weeks. Processing of existing stockpiles is ongoing, while site infrastructure is upgraded.
Chris Akers continues to build up his stake in Asimilar Group (ASLR) and it has reached 8.01%.
AIM
Spectacles supplier Inspecs (SPEC) is expected to report slightly better than expected full year figures. The figures are still much worse than expected prior to the previous warning, where destocking and poorly performing businesses led to a significant downgrade. Sales were flat at $246m, although there was growth before currency movements. Pre-tax profit is set to more than halve from $17.9m to $7.7m.
Battery technology developer Ilika (IKA) has been awarded a UK government grant of £2.8m for taking a leading role on a 24-month Faraday Battery Challenge in collaboration with BMW and Williams. This will further the development of Ilika’s Goliath battery, which is designed to be cost-effective and recyclable. There were no surprises in the interims earlier in the week. In the six months to October 2022, revenues improved from £179,000 to £204,000, which all came from UK grants. Net cash outflow from operating activities increased from £2.19m to £3.84m. Net cash is £17.8m. The Stereax M300 miniature battery should be launched by the summer.
Results from aerospace composites kits supplier Velocity Composites (LON: VEL) were as expected following the trading statement at the end of 2022. In the year to October 2022, revenues were 22% higher at £12m, while the loss was flat at £1.5m. A further loss is forecast for this year, while the US deal with GKN Aerospace builds up later in the year. A full year contribution from the US GKN business should push the company into profit.
Fire Angel Technology (FA.) reduced its loss last year, even after higher procurement costs, and it expects significantly enhanced margins this year. The home safety products supplier increased 2022 revenues by nearly one-third to £57.5m. A further reduction in loss is expected this year with helpful currency movements providing potential for further upside.
Healthcare data analysis provider Diaceutics (DXRX) beat expectations with revenues 44% higher at £20m, helped by currency movements, and margins are being maintained despite inflationary pressures. Diaceutics has secured two agreements with top ten global pharma companies. The order book is worth £15.6m. Investment in data and technology is being increased.
Following the departure of the recently appointed chief executive Inland Homes (INL) has sold its greenfield strategic land portfolio. There was a £3.5m profit on the sale that raised £9.5m in cash. There will also be fees generated for assisting the purchaser. Despite the disposal, net debt has risen to £100m and trading conditions have deteriorated. The 2021-22 loss is expected to be £91m and NAV has fallen to 40p a share.
Fiinu (BANK), which offers the Plugin overdraft to individuals with accounts with other banks, has completed the core banking platform configuration and its testing. General testing of the service is continuing. There is £35m-£40m required to fund the bank and a staged fundraising will commence before Easter.
Piling contractor Van Elle (VANL) had already flagged the interims, but the pre-tax profit was still slightly higher than expected at £3.3m. The interim dividend is 0.4p a share. Full year pre-tax profit forecasts have been maintained at £5.2m, although next year’s figures has been trimmed to £6m.
Gaming Realms (GMR) has signed a brand licensing deal with Tetris Inc, the holder of the rights to the eponymous falling blocks game. Tetris Slngo mobile will be launched globally before the end of 2023.
MAIN MARKET
Oxford Cannabinoid Technologies (OCTP) is due to commence a phase 1 clinical trial for its lead programme OCT461201 for the treatment of chemotherapy induced peripheral neuropathy with the interim results due in the second quarter. Management says it has enough cash to get it into the first quarter of 2024. GHS Capital has reduced its stake to below 3%.
Motor dealer Pendragon (PDG) says fourth quarter trading is slightly ahead of expectations and this has offset inflationary pressures. Underlying full year pre-tax profit should be more than £57m, down from £83m for the previous year. Net debt is around £23m. There continue to be constraints in the supply of new vehicles.
One Heritage Group (OHG) expects a further impairment charge of between £750,000 and £1.25m. Martin Crews is being replaced as development director by Paul Westhead on an interim basis. The major shareholder loan facility has been raised from £9.5m to £11m.
Mode Global Holdings (MODE) is winding down its operations because it was unable to raise the cash it required to grow the business.
Andrew Hore
Quoted Micro 5 December 2022
AQUIS STOCK EXCHANGE
Good Energy (GOOD) says trading to the end of October was in line with expectations, but the subsequent mild winter has reduced gas consumption. Risk management actions should enable the energy supplier to meet 2022 expectations. There was £21.2m in cash at the end of October 2022. Heat pump installer Igloo Works has been acquired for £1.75m. Last year’s revenues were £1m. This will form an energy services division.
Invinity Energy Systems (IES) has sold 15MWh of vanadium flow batteries to Everdura Technology in Taiwan. A deposit will be paid soon, and the first deliveries will be late in 2023. This is the largest ever single order and there is follow-on potential of 255MWh over three years and it will help to underpin 2023 forecast revenues of £23.7m.
Capital for Colleagues (CFCP) has acquired Staffordshire-based MI Accountancy Solutions, which already provides accountancy services to the employee owned businesses investor’s clients. The cost is £90,000 with a further £20,000 deferred depending on performance.
Hydrogen Utopia International (HUI) has entered an agreement with Fishertown Property for a proposed lease of a 2.5 acre site in County Longford. This will become its first full scale waste plastic to hydrogen in Europe. A €50,000 payment has been made and an option for the site is being negotiated.
Tectonic Gold (TTAU) has completed drilling at the Specimen Hill project in Queensland. This has intersected a geophysical target below high-grade historic mine. An adjacent target has also been intersected. Joint venture discussions will be pursued.
Guanajuato Silver Company Ltd (GSVR) produced 700,264 of silver equivalent ounces in the third quarter, which is more than double the previous quarter. Cash costs fell by 19% to $19.53/ounce. However, lower silver and gold prices meant that the loss increased.
Field Systems Designs Holdings (FSD) was still affected by Covid in the year to May 2022. The mechanical and engineering contractor’s revenues fell from £9.98m to £8.09m. That meant that the loss increased from £534,000 to £1.9m. Revenues from the water sector have not grown as expected, but work is coming through. More than £9m of work has been secured for this year.
IamFire (FIRE) has subscribed for £2m of convertible loan notes in WeShop Holdings, which could be converted into one million shares, while an existing £4m investment would convert into 1.33 million shares. IamFire has the right to subscribe for a further £1.75m of convertibles. IamFire also holds convertibles in a shell that owns 25% of WeShop.
Pioneer Media Holdings (PNER) generated initial revenues of $482,000 in the year to May 2022. There was a reported loss of $28.6m, after $25.7m of impairment charges and fair value changes on investments. There was a credit of $3.26m relating to changes on accrued consideration. The cash outflow from operations was $2.14m. There is cash of $1.65m.
Recently floated Cooks Coffee Company (COOK) increased interim operational revenues by 37% to NZ$1.93m. Overall revenues fell because of the timing of recognising capital revenues on store openings. Pre-tax profit improved from NZ$128,000 to NZ$146,000 as costs were reduced.
Africa-focused sustainable investment company Inqo Investments (INQO) increased interim revenues from R608,000 to R3.39m. The loss was slightly reduced at R5.18m after a sharp increase in employee costs.
Nine months revenues from Yooma Wellness Inc (YOOM) improved from $4.91m to $8.91m and the reported loss was reduced.
Marula Mining (MARU) secured a 73% commercial interest in the Bagamoyo graphite project in Tanzania, which includes 22 graphite mining licences.
In the six months to August 2022, Asia Wealth Group Holdings Ltd (AWLP) reported a decline in revenues from $940,000 to $844,000 and it moved from profit to loss. There was $1.19m in the bank at the end of August 2022.
Ace Liberty and Stone (ALSP) says that it received £3.07m from its open offer at 25p a share, compared with the £4.56m it was seeking.
Evrima (EVA) chief executive Burns Singh Tennent-Bhohi has made a £250,000 secured convertible loan facility available to the company. So far, £100,000 has been drawn down. This matures at the end of November 2023 and the coupon is 10%.
Goodbody Health (GDBY) chief executive Marc Howells has resigned, and George Thomas has replaced him.
AIM
Online retailer boohoo (BOO) has increased its stake in Revolution Beauty (REVB) from 13% to 26%. Bob Holt has taken over as chief executive. The shares remain suspended and there are still concerns about the 2021-22 figures.
Digital media company Digitalbox (DBOX) has acquired The Poke (www.thepoke.co.uk) for an undisclosed sum. It picks humorous content from the internet, unlike the Daily Mash which writes its own content. The Poke generated revenues of £170,000 in the year to November 2021.
Duke Royalty (DUKE) reported a 67% increase in recurring interim cash revenues from its royalty investments and free cash flow was 1.71p a share. There was a further improvement in cash revenues in the third quarter.
First Property (FPO) reported a fall in reported profit due to one-offs, but the interim dividend was maintained at 0.25p a share. NAV is 48.3p a share, not including any valuation for the investment management business, which is more than twice the share price.
A trading update from Light Source Technologies (LST) says that farmers are reluctant to commit to capital investment and that has slowed progress leading to a higher loss in the year to November 2023. The growers are finding it difficult to pass on cost increases to customers, so they are not making the commitment to install the controlled environment technology. Also, contract manufacturing margins have declined.
Venture Life Group (LON: VLG) is buying HL Healthcare, which owns Earol, EarolSwim and Sterinase, for £13m. The products generated EBITDA of £1.7m in 2021-22 and they should do better this year – £3m of the consideration is dependent on 2022-23 revenues. Venture Life is expected to make a 2022 pre-tax profit of £946,000 and that could improve to more than £4m in 2023.
Telecoms customer engagement software provider Pelatro (LON: PTRO) says the currency movements between the US dollar and Indian Rupee will lead to a shortfall in reported revenues this year. Along with other factors, this will reduce revenues by up to $800,000, although the currency movements will have a positive effect on costs that partly offsets the shortfall. EBITDA will be slightly below expectations. Some new clients are moving to a licence model, which means revenue will be recognised earlier.
Luxury brand Mulberry Group (MUL) reported flat interim revenues with higher international sales offsetting a decline in the UK. Mulberry moved from profit to loss as marketing and other spending was increased. There was an £11.2m cash outflow from operations.
Compliance and maintenance services provider Kinovo (KINO) continues to improve its profit in the six months to September 2022 and it has a strong order book. Revenues improved by one-quarter to £29.8m in the first half. Margins continue to rise with underlying pre-tax profit recovering from £1.61m to £2.1m. Three-year visible revenues total £146m, which includes contracts and predictable spend. That underpins around 90% of the 2022-23 forecast revenues of £62.1m. Net debt has fallen to below £100,000. However, in the short-term debt will increase again because of the requirements to finish contracts that are part of DCB, which was sold and then went into administration. Part of the deal was that Kinovo would guarantee the completion of projects. This could cost a total of £4.3m.
Inspiration Healthcare (IHC) says that it expects 2022-23 revenues to be similar to the previous year because of market uncertainty, particularly in China. Cenkos has reduced its forecast revenues from £45m to £41.1m. Because the reduction relates to higher margin products it means that pre-tax profit will dive from £3.96m last year to £540,000 this year.
Floorcoverings distributor Likewise (LIKE) says third quarter like-for-like sales were 21.8% higher and in October and November this accelerated to 27.7%. Total sales have more than doubled this year.
Fox Marble (FOX) has won damages and costs in its arbitration proceedings with a customer in India. Damages were Euro383,177 and costs were £454,584. The customer has 28 days to challenge the award.
MAIN MARKET
Antimicrobial and textile odour control materials developer HeiQ (HEIQ) has acquired the land and property of Chem-Tex Laboratories Inc in the US for $2.5m in cash and shares at 74.4p each. Securing the site will enable further expansion. The focus of manufacturing investment will be the US because of the availability of chemicals and the reduced exposure to rising energy prices.
Edward Spencer is requisitioning a general meeting at MetalNRG (MNRG). He owns 7.3% of the company and wants to remove the chairman and chief executive. He wants four people to be voted onto the board, including himself.
Highway Capital (HWC) has still not completed the acquisition of Guinevere Esports and Entertainment, which was announced in October 2021. Highway made an interim loss of £243,000.
Andrew Hore
Quoted Micro 14 November 2022
AQUIS STOCK EXCHANGE
First quarter trading at National Milk Records (NMRP) strengthened in all areas. Revenues increased by 4% to £5.98m. There was an 82% rise in genomic testing revenues to £151,000. Milk prices are expected to remain strong. The GenoCells services, which provide farmers with genomically driven individual animal cell count analysis, will be launched in the UK and US.
OTAQ (OTAQ) has switched from the standard list to the Access segment of Aquis. The share price has held steady at 5p. OTAQ raised £3.6m at 4p a share.
Shareholders have approved the reverse takeover of TECC Capital (TEC) by EDX Medical. The shares will recommence trading on 14 November.
Guanajuato Silver Company Ltd (GSVR) has discovered a new transverse vein at the El Cubo mine in Guanajuato, Mexico. This has been named the San Luis vein. The company has been reinterpreting previous data. This vein is likely to have a higher gold component than the primary structures. Vein widths are close to one metre or above.
Property investor Ace Liberty & Stone (ALSP) has exchanged contracts to acquire Loders Service Station in Dorset for £2.08m. There is a SPAR convenience store and BP filling station. The annual rental income is £168,000 and it increases to £185,000 in 2023.
Igraine (KING) says Conduit Pharmaceuticals is reversing into Nasdaq-listed Murphy Cannon Acquisition Corp. This will provide nearly $150m of funding for Conduit. Via a 2% stake in Excalibur Medicines, Igraine has an economic interest in AZD1656, which is a potential diabetes treatment, one of the assets of Conduit. Excalibur Medicines has exclusive rights to the patents on AZD1656. Fellow Aquis-quoted company Oscillate (MUSH) has a 25.7% stake in Igraine.
Goodbody Health Ltd (GDBY) says the full year outcome will be worse than expected. Third quarter figures showed a 6% decline in revenues to £9.29m due to reductions in Covid testing revenues, while margins declined. The loss nearly doubled to £1.67m. The cost base is being reduced.
Technology investor SuperSeed Capital Ltd (WWW) has made six investments since joining Aquis. The latest is Techsembly, a SaaS e-commerce platform offering payments technology to hotel operators. NAV is 95p a share.
Electric vehicle drivetrains developer Equipmake (EQIP) says 2021-22 revenues were better than expected at £3.7m. More of the revenues are coming from commercial projects. The loss has fallen to £4.3m.
Altona Rare Earths (ANR) is drawing down £150,000 in two tranches from Align Research Investments. The interest rate is 15% and there are also warrants equal to 150% of the loan value exercisable at 12p a share.
Gunsynd (GUN) investee company Rincon Resources says a preliminary report highlights similarities between its Pokali prospect and a nearby niobium rare earth discovery.
EPE Special Opportunities (EO.P) announced net assets of 239.2p a share at the end of October 2022, down from 242.3p a share the month before.
AQRU (AQRU) has linked up with accountancy firm Sampson Fielding to offer technology-led accountancy services for institutions holding digital assets and their auditors. The brand will be Daxiom.
AIM
PayPoint (PAY) is bidding for Appreciate (LAPP) in a deal that values the prepaid vouchers and Christmas savings group at £83m – based on a PayPoint share price of 580p. The offer is 33p in cash and 0.019 of a PayPoint share for each Appreciate share. A 0.8p a share dividend will also be paid to Appreciate shareholders. The PayPoint share price has fallen to 547p, so the bid is not worth quite as much now.
Motor dealer Vertu Motors (VTU) is in talks to acquire Helston Garages Group Ltd. This would be funded by debt. The controlling party of the company is the executors of the estates of former directors David Stanley Carr and Betty Vera Carr. Helston Garages is based in south west England and has 37 dealerships, plus two used car sites. Helston Garages had net cash was £10.8m at the end of 2021 and NAV was £136.2m.
Insolvency litigation financer Manolete Partners (MANO) is generating more cash, but a write down in the values of ongoing cases meant that reported revenues were lower. That is partly due to large case being lost and the general economic conditions. More importantly, realised revenues are increasing. The interim figures reflect cases that were taken on during a period of Covid restrictions and government assistance, when insolvencies were relatively low. Insolvency numbers are increasing so opportunities will increase.
Online home moving services provider Smoove (SMV) revealed a higher loss and cash outflow in the six months to September 2022. The benefits from investments in new products, such as Smoove Start, aimed at estate agents, and Smooth Complete, which is for conveyancing lawyers, won’t show through until next year. Costs are being reduced. Smoove has announced a tender offer of up to £5m, but that will still leave plenty of cash in the bank to fund the business as it moves towards breakeven.
Biome Technologies (BIOM) increased third quarter revenues by 77% to £1.9m. Both bioplastics and radio frequency divisions grew their contributions. Even so, Biome is being more cautious about pre-commercial customer projects and full year revenue expectations have been trimmed from £6.8m to £6.29m, which is still higher than the £5.73m generated in 2021. A full year loss of £1.1m is forecast.
PCF Group (PCF) has been unable to raise money or secure a strategic transaction, so PCF Bank is withdrawing from the UK banking market. The PCF board wants shareholder approval for the cancellation of the AIM quotation.
Mobile data computing services provider Touchstar (TST) has won a £1.5m contract with a petrochemical distribution client. There will be additional recurring revenues in future years. This underpins 2022 and 2023 pre-tax profit expectations of £400,000 and £700,000 respectively.
Poolbeg Pharma (POLB) has identified multiple novel drug targets for the treatment of respiratory syncytial virus. This has been achieved within eight months with its partner OneThree Biotech. This includes known drugs with phase 1 safety and efficacy data. The best candidates should be identified by the end of the year.
Beximco Pharmaceuticals Ltd (BXP) increased 2021-22 net sales from £251.4m to £309.7m with growth coming from domestic sales and exports. However, profit after tax fell from £26.6m to £24m. No revenues are anticipated from Covid vaccines in the near-term.
Construction claims and disputes consultancy Driver Group (DRV) made an underlying loss in the year to September 2022, but management believes that the Middle East and Asian operations should return to profitability this year. Europe and the Americas remain profitable.
MAIN MARKET
Made.com (MADE) has gone into administration and PwC is handling the administration. Next (NEXT) has acquired the brand and IP.
National World (NWOR) has invested $1.25m in social-first media company The News Movement. National World hopes that this will help to attract a younger audience to its publications.
Andrew Hore
Quoted Micro 7 November 2022
AQUIS STOCK EXCHANGE
Cooks Coffee Company Ltd (COOK), which was already quoted on the New Zealand Stock Exchange, joined Access segment of Aquis on 2 November at 20p a share. The share price rose to 21.5p (20p/23p) by the end of the week. There were no trades during the week. The company owns the Esquires Coffee and Triple Two Coffee brands. It has 111 outlets around the world, including 70 in the UK, making it the largest franchise café chain in the UK. Elena Garside has been appointed as a non-executive director.
Brewer Daniel Thwaites (THW) more than doubled interim pre-tax profit from £7.5m to £15.7m, although most of the improvement came from a gain on interest rate swaps of £7.6m, up from £500,000, due to higher interest rates. Turnover was 21% ahead at £57.9m, although trading was disrupted in the corresponding period. Net debt was £61.1m at the end of September 2022. The performance of pubs is mixed, and beer volumes are not back to past levels. Higher hotels revenues were more than offset by increased costs.
Quantum Exponential Group (QBIT) investee company Universal Quantum says its German subsidiary has been commissioned by the German Aerospace Centre to build a fully scalable trapped-ion quantum computer. This follows projects supported by the UK government. Non-exec director Nigel McNair Scott has acquired 500,000 shares at 2p each, 1.5 million shares at 1.966p each and 500,000 shares at 1.95p each.
Valereum (VLRM) has gained regulatory approval for the acquisition of the Gibraltar Stock Exchange and the deal should be completed in the first quarter of 2023. Smaller companies in the Middle East, India and Africa. The plan is to attract An NFT strategy will be launched next year. Simon Brickles is chairman of the Gibraltar Stock Exchange, and he will join the Valereum board. There has been the conversion of £130,000 of the funding facility into shares. There is an outstanding balance of $2.35m.
Eight Capital Partners (ECP) wants to raise up to £10m from a placing at 0.02p a share. The shares will come with warrants exercisable at 0.05p. The cash will be used for fintech acquisitions. Supplying financial services to smaller companies is an area that management believes is underserved. Wealth management technology is another potential area. Acquiring a digital bank could provide a base to grow into these areas. A broker option will enable existing shareholders to buy shares, and this is open until 21 November. Bondholders will be given the chance to convert into shares.
Quetzal Capital (QTZ) has a conditional agreement to acquire the shares it does not own in TAP Global for 450 million shares. The deal requires a fundraising to finance the enlarged group. This has led to the suspension of trading in Quetzal Capital shares.
Wind and water-based green hydrogen production systems developer Hydrogen Future Industries (HFI) has commenced prototype testing of the wind element of the system. The wind turbines are designed to be more efficient, and the tests will show whether they achieve expected power output.
VVV Resources Ltd (VVV) has raised £241,000 at 20p a share and every four shares come with a warrant exercisable at 50p a share. The share price slumped 55% to 22.5p because of the placing’s large discount to the market price. VVV Resources has a conditional agreement to acquire 100% of the Mitterberg copper project in Austria and 49% of the Shangri La polymetallic project in Western Australia.
Cadence Minerals (KDNC) says the Amapa ore reserve estimate supports a 15-year mine life and Cadence has increased its stake in Amapa to 30% by converting loans and capitalising management and admin contributions. Investee company Evergreen Lithium is moving towards an ASX listing.
Rogue Baron (SHNJ) sold 660 cases of whisky generating $87,000. Sales have slowed in the US ahead of a move to a larger distributor. Rogue Baron is selling its De Rhum Spot bar.
Semper Fortis Esports (SEMP) generated revenues of £55,000 in the six months to July 2022. There was a £694,000 cash outflow during the period, leaving cash of £635,000. Overheads have been reduced.
Dynasty Gaming & Media, which is an investee company of AIM-quoted Blue Star Capital (BLU) will deliver new games developed by Pioneer Media Inc (PNER), to Asian telecoms company Indosat Ooredoo Hutchison, which has 100 million subscribers in Indonesia.
TruSpine Technologies (TSP) has been approached with an equity financing package. More cash is required for working capital.
There has been more buying of property investor Ace Liberty & Stone (ALSP) shares by chief executive Ismail Ghandour. He acquired 20,000 shares at an average price of 0.595p each. Brewer Shepherd Neame (SHEP) director Richard Oldfield is continuing to buy shares. He acquired at total of 9,500 shares at 680p each. Coinsilium (COIN) chief executive Eddy Travia bought 250,000 shares at 1.9p each.
MiLOC (ML.P) is changing its name to Crushmetric Group.
AIM
Accsys Technologies (AXS) will report a significant impairment charge relating to the restructuring of the Tricoya consortium. Accsys Technologies intends to take 100% ownership of the Hull Tricoya plant, and construcgtion is going to be put on hold for six months. That will reduce the cash outflow. The restructure means that the consortium partners will receive 11.9 million Accsys Technologies shares. The debt facility will be restructured with the principal reduced from €15m to €6m. The plant may cost €35m to complete. A decision on construction will depend on the assessment of the longer-term outlook for costs. The fourth reactor at the Netherland Accoya plant will increase cash generation.
Shield Therapeutics (STX) says the Korean Food and Drug Administration has agreed to a single pharmacokinetic study for a new drug application for iron deficiency product Accrufer. This should start before the end of the year. Korea Pharma will conduct the survey and regulatory approval could be gained before the end of 2023.
Science Group (SAG) is buying the shares it does not own in TP Group (TPG) for 2.25p a share in cash. That values TP Group at £17.5m. Science Group already owns 28% of the company.
Oil and gas producer Hurricane Energy (HUR) has received an indicative bid of 7.7p a share but does not recommend this offer. Instead, a formal sale process has started because 28.9% shareholder Crystal Amber Fund Ltd (CRS) is keen to sell its stake. Hurricane Energy is generating cash and has more than $370m of tax losses. If there is no bid a 3.1p a share distribution is planned.
Rising costs have meant that paper manufacturer James Cropper (CRPR) with energy costs having a significant effect on paper making. The technical fibres business is not growing as fast as anticipated. Price rises are offsetting some of the cost increases. The full year pre-tax profit estimate has been cut from £5.4m to £2m, after breaking even in the first half to 24 September 2022.
Empire Metals (EEE) says the mapping of the Pitfield copper project show extensive copper, silver and other base metals anomalies over a 40km strike length. Exploration field work will start by the first quarter of 2023.
MAIN MARKET
Bowen Fintech (BWN) is a standard list shell that is seeking fintech acquisitions, such as digital payments and trading platforms, anywhere in the world. The initial focus is Europe, Asia and the US. A business that is already generating revenues with potential for growth would be ideal for Bowen Fintech. A placing raised £2m at 4p a share. There were no trades on the first day and then two on the following day. There were two more deals on Friday. The share price ended the week at 6.25p (5p/7.5p). That is nearly double the pro forma NAV of 3.2p a share.
Vox Capital has reversed into standard list shell Vertu Capital Ltd to form Vox Valor Capital Ltd (VOX) and trading recommenced on 31 October. Vertu Capital issued 2.2 million shares at 1.2p each to acquire London-based digital marketing and technology business Vox Capital, which equates to 93.9% of the enlarged share capital. However, the share price opened well below the issue price and has fallen to 0.6p (0.5p/0.7p).
National World (NWOR) is considering a bid for Daily Mirror owner Reach (LON: RCH), although it has not made an approach.
Andrew Hore
Quoted Micro 31 October 2022
AQUIS STOCK EXCHANGE
TECC Capital (TEC) has agreed terms for the acquisition of diagnostics business EDX Medical Ltd for £12m in shares, while a placing will raise £1.2m at 6p a share. The shares remain suspended. Trading in the enlargement group should commence on 14 November under the name EDX Medical Group. EDX Medical develops digital diagnostic products and services for cancer, heart disease, neurology and infectious diseases.
Guanajuato Silver Company Ltd (GSVR) joined the Apex segment of the Aquis Stock Exchange on 25 October. The Mexico-focused silver miner was already quoted on the TSX Venture Exchange. The share price started at 27.5p and it has stayed at that level. There were 884 shares traded on the first day and there were four trades during the week. Guanajuato Silver is targeting annualised production of 3.4 million ounces of silver-equivalent ounces by the end of 2022 and up to six million ounces by the end of 2023.
Coinsilium Group Ltd (COIN) says that the terms of the agreement for the IOV Labs Asia joint venture are being renegotiated. This could mean a different business model, but the outcome is uncertain. So far this year, Coinsilium has invested $575,000 of crypto currency in Web3 ventures. Chief executive Eddy Travia bought 250,000 Coinsilium shares at 1.95p each and chairman Malcolm Palle bought 250,000 at 1.9p each.
Gunsynd (GUN) has invested £50,000 in Omega Oil & Gas, which listed on ASX on 25 October. This is part of a $15.07m fundraising at €0.20 a share. Omega has two exploration permits in Queensland. A two well drilling programme is planned.
SulNOx Group (SNOX) increased interim revenues from £24,000 to £75,000, but the loss moved up from £724,000 to £965,000. There was £311,000 in the bank at the end of September 2022. There were delays to sales and at least £31,500 should be included in the third quarter.
Altona Rare Earths (ANR) is still on track to publish a maiden mineral resource estimate for the Monte Muambe rare earths project in the first quarter of 2023.
In the year to April 2021, IamFire (FIRE) reported a cash outflow from operating activities of £349,000. Management expects investee companies WeShop and 10%-owned Bio2Pure to make progress this year.
AQRU (AQRU) has launched a cryptocurrency-collateralised lending service called BlockLender.
Marula Mining (MARU) has raised £450,000 at 2p a share and plans to issue £265,000 secured convertible loan notes. There are talks with two Africa-focused mining investment funds that could invest up to £1m. A $5m lithium prepayment facility was secured for the Blesberg project in South Africa. Marula Mining will use $1.7m to take 100% ownership of Blesberg. Shareholders are being asked to approve the change in the investing strategy to allow the acquisition of majority interests in projects.
Sidney Sussex College reduced its stake in brewer Adnams (ADB) from 4.22% to 3.17%. Director Michael Heald increased his stake from 19.32% to 20.37% by buying 3,00 B shares at £89 each.
Ace Liberty & Stone (ALSP) chief executive Ismail Ghandour bought 15,000 shares at 55p each and finance director Ivan Minter acquired 20,000 shares at the same price. Last week, Ace Liberty & Stone launched a heavily discounted open offer to raise £4.56m at 25p a share. The open offer closes on 14 November
David Evans has increased his stake in Oberon Investments (OBE) from 8.74% to 9.36%. Mark Horrocks has raised his stake in Lift Global Ventures (LFT) to 7.1%. Chris Akers has increased his stake in Quetzal Capital (QTZ) from 23.4% to 24.1%. Phoenix Asset Management has a 16.5% stake in Silverwood Brands (SLWD).
AIM
Billing and charging software provider Cerillion (CER) says higher utilisation rates and beneficial exchange rate movements mean that pre-tax profit for the year to September 2022 will be much higher than the forecast £10.1m. Net cash is anticipated to be £20m. The pipeline of opportunities remains strong.
Vianet (VNET) says both divisions are increasing revenues. The smart machines division has increased vending connections by 24% to 52,490. Even though the pub sector is having a tough time, the smart zones division is growing revenues as the clients try to improve efficiency. Overall interim revenues are 13% ahead at £7.18m. However, there are cost pressures and Cenkos has reduced its 2022-23 forecast operating profit by £450,000 to £3.05m, with a bigger reduction of £950,000 to £4.04m next year.
Merit Group (MRIT) is selling its media, events and training operations to a business owned by Merit shareholder Lord Ashcroft for £4.5m. The cash will be used to pay off debt of £3.2m. Merit will focus on the Dods Political Intelligence and data businesses.
Building products supplier Alumasc (ALU) says volumes and margins improved in the first quarter. Transport and materials costs are stabilising, and exports are growing. Forecast full year pre-tax profit is £11.3m, down from £12.7m.
Franchise Brands (FRAN) says that Filta and Metro Rod are trading strongly, and full year group pre-tax profit will be better than expected. The consumer franchise businesses are finding it difficult to recruit franchisees. The 2022 pre-tax profit forecast has been raised by 5% to £12.4m.
Allergy Therapeutics (AGY) is able to restart production at its Worthing facility in the middle of November. The facility was shut down during peak production for does for the pollen season because of quality control problems.
ECR Minerals (ECR) has an option to purchase Placer Gold, which owns three mining tenements in Queensland. They are known as the Hurricane project, and it is prospective for gold and antimony. The option cost £144,000, while the total cost could be £3.8m, including a net smelter royalty capped at £3m.
Active investor Chris Akers has taken a 3.32% stake in Fiinu Group (BANK), which was formed in July when the Fiinu banking business reversed into the AIM shell Immediate Acquisition. Fiinu has developed the Plugin Overdraft, which provides customers with an overdraft facility without the requirement to switch banks.
Managed IT services provider CloudCoCo (CLCO) trebled revenues to £24m in the year to September 2022, while EBITDA improved from £745,000 to around £1m. There were four acquisitions in late 2021 so they contributed to the growth. Investment is sales is starting to pay off and there should be further growth in revenues and profit this year.
Secure payments technology provider PCI-Pal (PCIP) increased first quarter revenues by 29%, compared with a 20% forecast for the full year. An Open Banking payment service has been launched.
MAIN MARKET
MADE.com (MADE) says that the parties it invited to work towards making an offer for the company as part of the formal sale process will not be able to meet the necessary timetable. The company is running out of cash. There are no current funding proposals or possible offers. The main subsidiary is no longer taking orders. It appears there is little hope for shareholders unless something happens soon.
Eastinco Mining and Exploration (ATN) has acquired Aterian, and this sparked a move from the Aquis Stock Exchange to the standard list. The deal takes the business into Morocco, and it has existing projects in Rwanda. There was £854,000 raised in a placing at 1p a share. The share price ended the week at 0.95p. There are 15 different potential Moroccan prospects. They include the Agdz project, where there is a ten-year mining licence over a prospect with copper and gold deposits already identified.
Unicorn Mineral Resources (UMR) has exploration licences in two project areas in the Republic of Ireland. It is still early days in terms of exploration, but the licences in the Kilmallock area are reaching the point when drilling for zinc can commence, and the £930,000 raised at 10p a share in the flotation will finance that. The share price ended the week at 17.5p (15p/20p).
AIM-quoted Jangada Mines (JAN) has increased its holding in Blencowe Resources (BRES) from 2% to 9.5% by investing £610,000. The investment was part of a £750,000 placing at 4p a share where RAB Capital and JUB Capital also bought shares. Every two shares come with a warrant exercisable at 8p each. The cash will be invested in the Orom-Cross graphite project in Uganda, which has a net present value of $482m.
BSF Enterprise (BSFA) has received a £100,000 grant for further development of its serum-free media, City-mix. The grant is provided by EIT Food, which aims to commercialise cultivated meat. City-mix can be used to cultivate meat and leather. The company plans to unveil the first 100% lab-grown fillet in the next few months.
Andrew Hore