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Quoted Micro 17 February 2025
AQUIS STOCK EXCHANGE
Music management and event promotion company All Things Considered (ATC) more than doubled 2024 revenues to £50m and EBITDA was £1.5m. Growth is coming from adding managers and new clients, plus acquisitions. Further acquisitions are planned. An agreement has been reached to take the stake in livestreaming platform Driift from 32.5% to 100%. All Things Considered is assessing a move to an unspecified London Stock Exchange market.
Broker and investment manager Oberon Investments Group (OBE) has raised £2.5m in an oversubscribed placing at 4.5p/share. The cash will be used to accelerate growth, particularly in the broking business, which is expected to increase revenues by more than 50% in the current year. Mergers among larger broker provide potential to add to clients. There are also opportunities to add teams of investment and wealth managers. The Oberon AIM VCT (OVCT) is trying to raise a further £5m, plus over-allotment facility of £3.4m. Oberon Investments gets a fee based on the amount subscribed.
Cardiogeni (CGNI) has signed a memorandum of understanding with the private office of Sheikh Al Qassimi for funding of clinical trials. A joint venture will be formed, and it will receive £20m over a period up to 2027 to complete research and clinical trials in the UAE. There will be an initial cash injection of £5m. The cash will fund phase 2b/3 clinical trials and commercialisation of Cardiogeni’s heart failure treatments. The deal could be signed by the end of March 2025.
In the year to January 2025, EPE Special Opportunities (EO.P) NAV edged up to 328p/share. That includes cash of £11m. Trading was tough for all of the businesses in the portfolio. Investee company Whittard of Chelsea increased like-for-like sales by 6%. Pharmacy2U also grew organically and acquired a business in the pet care market.
ChallengerX (CXS) has entered into conditional agreements to acquire NYCE International for £1.6m, Virya VC for £280,000 and an instance of Reelsof AB’s remote gaming software and game aggregation platform for £160,000. These payments will be satisfied by the issue of 510 million shares at 0.4p each. There will also be a £600,000 fundraising. Virya founder Farzad Peyman will be appointed chief executive and NYCE founder Harmen Brenninkmeijer will become executive chairman.
Marula Mining (MARU) has signed the first copper sales agreement for the Kinusi copper mine with a European commodity trader. The initial delivery is 250 tonnes of copper concentrate based on 20% copper grade. The income is linked to the LME copper price with additional payments for gold and silver content. The first revenues should be received in this quarter. After successfully delivery, there will be more each month that will total up to 1,000 tonnes. There are three other potential offtake agreements. Kinui has reached a milestone, so $200,000 of shares have been issued to Takela Mining Tanzania at 6p each. Marula Mining has also paid the final consideration of £625,000 for Northern Cape Lithium and Tungsten in the form of 20.83 million shares at 6p each. Modifications to the plant at the Kilifi processing plant in Kenya should be completed in the second quarter. As part of the drawdown agreement, AUO Commercial Brokerage has subscribed for £500,000 worth of shares at 3.75p/share.
Valereum (VLRM) is not proceeding with the £2m option agreement with Blue Sky Ventures. Blue Sky was going to subscribe for shares at 10p each. It was previously announced that the option had been exercised. The proposed subscription may be taken on by another investor.
Inteliqo Ltd (IQO) wants to cancel the admission to the Aquis Stock Exchange. Inteliqo has been developing and marketing the Langaroo app for a client. It wants to save the costs of the quotation. Trading could end on 14 March if shareholders agree at the general meeting on 27 February.
Early-stage businesses investor MaxRets Ventures (MAX) is also seeking shareholder approval at a general meeting on 4 March to leave the Aquis Stock Exchange. There has been limited liquidity in the shares, and it can be difficult to trade. It has not been possible to raise additional cash.
Ormonde Mining (ORM) has secured three-year renewals for two gold exploration licences in Zamora Province in western Spain. Ormonde Mining plans to acquire the other 51.3% interest in the licences from AIM-quoted cyber security company Shearwater Group (SWG) for five million shares. That is a discount to the implied book value.
EDX Medical (EDX) has appointed Martin Walton as deputy chair. He has worked for other life sciences companies, including former AIM company ReNeuron.
One Heritage Property Development has reduced its stake in Zentra Group (ZNT) from 65.2% to 53.8% and Jason Upton, a director of the company, has raised his shareholding from 3.5% to 14.85%.
DXS International (DXSP) chairman Bob Sutcliffe bought 60,000 shares at 2.89p each, taking his stake to 2.08%. Gowin New Energy Group (GWIN) director Chen Chih-Lung has been transferred 9.73 million shares by Choice Only International Ent Co at a price of 0.00012894p each.
Investment Evolution Credit (IEC) has appointed Oberon as broker.
ASSET MATCH
The i-nexus Global (INX) auction has closed, and 49,220 shares were traded at 1.5p each.
AIM
Agricultural products supplier Wynnstay (WYN) reported a small dip in gross profit for the year to October 2024, but higher energy and labour costs meant that pre-tax profit reduced from £10.3m to £7.6m. Higher prices for milk and other agricultural products provide a more favourable background for this year. Even after a £600,000 National Insurance cost increase, pre-tax profit is expected to recover to £8.5m this year. A three-year programme called project Genesis will help to improve efficiency and there will be investment in additional feed capacity.
Cavendish has upgraded Filtronic (FTC) due to another contract from SpaceX. The 2024-25 pre-tax profit estimate has been raised from £11.5m to £11.9m, while the 2025-26 figure has been edged up from £8m to £8.3m. This £16.8m order is part of the framework agreement to supply technology for the Starlink Low Earth Orbit satellite network.
Specialist staffing provider Gattaca (GATC) has offset a small decline in net fee income in the first half through cost control. This is a better performance than the sector. Interim net fee income is 3% lower at £18m following a 10% decline in permanent net fee income. There are signs of recovery in permanent net fee income. Interim pre-tax profit is likely to be flat at £800,000. The full year pre-tax profit forecast is £3m. The forecast dividend of 3.1p/share should be twice covered by earnings.
Distribution Finance Capital Holdings (DFCH) has received authorisation from the FCA to conduct consumer lending. The core business is providing finance to distributors and manufacturers. The new retail products should be launched by the end of the first half of 2025. They can be offered through dealers that already work with the company.
Lord Ashcroft is trying to remove another of his companies from AIM. A general meeting has been requisitioned at wine maker Gusbourne (GUS), where he owns 66.8%. Talks with potential acquirers have ended and the strategic review has been terminated. This follows Lord Ashcroft’s success in getting Merit Group and Jaywing to leave AIM.
Genetics company GENinCode (GENI) is raising £4m at 3.7p/share and a retail offer could raise up to £500,000 more. The retail offer closes on 17 February at 5pm. There will be £1.5m set aside for commercialising its diagnostic products in the US. The US regulatory and reimbursement programmes will be completed. There will also be cash spent on expansion in the UK and the EU. There could be other funding options, such as partnerships and distribution agreements. Lipid inCode and Cardio inCode are the two main products. Lipid inCode diagnoses family hypercholesterolemia, which has a low rate of diagnosis with four-fifths of sufferers estimated to be undiagnosed. Cardio inCode focuses on genetic risk.
Optimisation software provider Checkit (CKT) has agreed a merger with Crimson Tide (TIDE). Shareholders will receive six Checkit shares for each Crimson Tide share. This ratio is based on the relative annual recurring revenues of each company. Checkit has been interested in a merger for four years and an indicative offer was made and rejected. Following the decision of Ideagen last July not to make a cash bid for Crimson Tide the two companies commenced discussions. The deal will increase the scale of the workflow management business. The Checkit chief executive and finance directors will remain in their roles. Crimson Tide was valued at £6.5m (99p/share) at the Checkit closing price last Monday.
Healthcare services provider Totally (TLY) has lost the NHS 111 Resilience support contract. The 12-month contract was worth around £13m and it ends on 15 February. This is due to the ending of national services for excess demand. Totally is still expected to make a pre-tax profit of £700,000 for the year to March 2025, but Canaccord Genuity has cut its 2025-26 forecast from £1.6m to £700,000. The 10-year government plan for the NHS should be published in the spring.
Medical imaging technology developer IXICO (IXI) announced the completion of the analysis of more than 6,000 images within its Huntington’s disease patient MRI datasets. This puts IXIXO in a strong position to be selected as a contract research organisation on Huntingdon’s disease clinical trials. This is part of the Huntington’s Disease Imaging Harmonisation consortium. This data should identify imaging biomarkers. This will help with improving clinical trial design, patient selection and drug development. IXICO has 25 clinical trials in its order book and ten of them are for Huntington’s disease. They account for 50% of the order book that was worth £15.4m at the end of September 2024. Globally, there are a total of 58 active Huntington’ disease clinical trials.
Avingtrans (AVG) subsidiary Booth Industries has won a £4.5m contract to supply pressure rated fire doors to HS2. These doors provide access to railway tunnels in emergencies. Booth Industries already had a £36m contract with HS2 for cross-tunnel sliding doors that seal off passageways between tunnels. Production for the latest contract is not expected to start until the year to May 2027. Interim results are due to be published on 26 February.
Serinus Energy (SENX) has won a legal case against the Romanian tax authorities over VAT refunds. The company has been awarded a VAT refund of $1.73m for 2018 and 2019, as well as interest of $750,000. This has to be paid within 45 days. The Romanian operation is loss-making, but there are gas projects that could be developed. The 2024 results are due to be published in March and there should be news concerning how the money will be invested in the business.
Empire Metals (EEE) has achieved a 91% extraction rate of titanium dioxide at the Pitfield project in Western Australia. The test work results suggest that the processing method is straightforward. Development of the processing flowsheet is continuing, and further refining could increase recovery. The main titanium-bearing minerals are anatase and rutile.
Surveillance technology developer Thruvision (THRU) says potential contracts have been delayed. This means expected 2024-25 revenues will be between £5m and £6m. The previous expectation was £9m. Cash should last until May and talks have commenced with potential acquirers or providers of additional cash.
Surgical instruments manufacturer Surgical Innovations (SUN) has returned to profit in the second half of 2024, although the full year loss could still be £300,000. Trading was broadly in line with expectations. Net debt was £300,000 at the end of 2024. Brent Greetham has been appointed as finance director. The business restructuring of the business will benefit the 2025 figures.
Wound healing technology developer AOTI Inc (AOTI) says 2024 revenues will be in excess of $58.1m, up from $43.9m. The Veterans Association accounted for less than three-fifths of revenues as new markets are developed, and they will become increasingly important. However, payments are slower. The full figures will be published on 26 April. Growth is expected to be more than 30% in 2025.
Strategic Minerals (SML) has identified additional mineralisation at the Redmoor tungsten and copper project in Cornwall. This will add to a future update of the mineral resource estimate, which is six years old. The total inferred resource was 11.7 million tonnes at 0.82% tungsten equivalent. Further drill core from 2017 will be relogged to support the remodelling of the deposit.
MAIN MARKET
Fintech Asia has completed the reverse takeover of Mongolia-based ICFG and changed its name to ICFG Ltd (ICFG). The payment was 177.84 million shares at a valuation of 64p each, which was higher than the market price. The main subsidiary InvestCore NBFI is listed on the Mongolian Stock Exchange, but ICFG owns more than 80%. This subsidiary has operations in Mongolia and Kyrgystan and is opening additional operations in Kazakhstan and Uzbekistan. There are plans to open up in other countries in Asia. Investment in software and AI helps ICFG to be competitive. Other operations include investment banking and property investment. Trading in the shares resumed and the share price ended the week at 50.5p.
ACG Metals (ACG) is planning a cash tender offer for 30% of warrants in issue. The offer is 50 cents for each warrant. It already announced an offer for the other 70% of warrants of 0.1 of a share for each warrant. Both tenders close on 28 February. The Gediktepe mine increased gold equivalent production by 49% to 57,000 ounces. Costs fell 2% to less than $1,150/ounce.
Shares in royalty company Cloudbreak Discovery (CDL) returned from suspension following publication of the accounts for the year to June 2024.
Andrew Hore
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 20 January 2025
AQUIS STOCK EXCHANGE
SulNOx Group (SNOX) has signed an agreement with Eastern Pacific Shipping, which will use the SulNOxEco additive on a minimum of 30 vessels for at least 18 months. The data from this evaluation could be used for marketing. Easten Pacific Shipping will introduce other potential shipping company clients, and it is subscribing for up to 11.7 million shares in tranches at 2p each. This will happen over the 18-month period. There will be a subscription of up to 4.72 million additional shares at 2p each, which will be over a three-year period. This could total up to 11.8% of the enlarged share capital.
Marula Mining (MARU) says that the Kinusi coper mine is selling a total of 1,000t to four commodity trading groups. The sales have been delayed but should be completed by the end of January. Metallurgical test work results are expected later in January. Management is seeking to secure offtake agreements and non-dilutive funding.
Kasei Digital Assets (KASH) is conducting a strategic review, which could include a departure from Aquis or return of cash to shareholders. Management believes that the outlook for the market for digital assets is positive. However, costs are negatively affecting performance. There is cash of £782,000 and digital assets of £4.26m.
Visum Technologies (VIS) has raised £100,000 from a convertible loan note issue. The conversion price is 0.5p/share. This will fund due diligence for potential acquisitions.
IntelliAM AI (INT) says David Richards is stepping down as chairman at the beginning of July.
Max Capital reduced its shareholding in WeCap (WCAP) from 8.09% to 7.94%. Brompton Asset Management has increased its stake in Global Connectivity (GCON) to 13.96%. RAJ Bailey bought 7,376 shares in Daniel Thwaites (THW) at 89p each.
AIM
Fortress Investment has raised its recommended bid for pubs and bars operators Loungers (LGRS) from 310p/share to 325p/share. Broker Singer did not believe that the original bid fully reflected the value of the business and argued that 375p/share would be a fairer value. Loungers at £338.3m was forecast to make a 2024-25 pre-tax profit of £18m, up from £13.9m last year, rising to £23.8m in 2025-26.
Fintech Fiinu (BANK) has signed heads of agreement for the first white-label deal for its Plugin Overdraft with a UK bank. It will provide a Banking-as-a-Service platform including Plugin Overdraft and requires regulatory approval and testing. The bank will have exclusivity in the UK for 12-months from launch, which could be in the fourth quarter of 2025. There will be royalty fees based on profit generated by the bank from the Plugin Overdraft.
Thor Explorations (THX) says that the Segilola mine in Nigeria produced 24,6000 ounces of gold, taking the total for 2024 to 85,000 ounces. Guidance for 2025 is 85,000 ounces-95,000 ounces. The all in sustaining costs are expected to be $808/ounce. Thor Explorations has moved into a net cash position. Exploration is focused on extending the life of the mine beyond 2028. Thee were positive results announced earlier in January. There should be news concerning the Nigerian federal authorities into the Osun state authorities allegations of underpayment of tax. The PFS for the Douta project in Senegal should be released in the first quarter of 2025.
Michael Ashcroft wants data and information publisher Merit Group (MRIT) to leave AIM. This follows his success in persuading Jaywing (JWNG) to back his AIM cancellation plan for the marketing services business. He owns 42% of Merit Group, so he has a high chance of success. A general meeting will be set within 21 days.
Deltex Medical Group (DEMG) also announced plans to leave AIM. This will save £200,000/year. Last year’s revenues from sales of heart monitoring systems improved from £1.8m to £2.1m and cash was £240,000 at the end of 2024. Andy Mears will be replaced as chief executive by Natalie Wettler.
Quantum Blockchain Technologies (QBT) has made a breakthrough for its Bitcoin Artificial Intelligence model mining tool. The Method C AI Oracle can skip calculations if it assesses that they will not be successful. This provides a 30% improved performance compared with other methods. The company is ready to demonstrate the technology and is seeking a chip manufacturing partner to produce a commercial product.
Gift wrap supplier IG Design (IGR) customers did not sell as much as expected over the Christmas period and this has hit orders. On top of the weak demand, there are US customers in financial difficulties. The fourth largest customer has re-entered Chapter 11 bankruptcy protection and total provisions will be around $15m.The American business is predominantly behind the 10% slump in revenues, although the international business revenues were 1% lower. IG Design is only expected to breakeven in the year to March 2025, compared with forecast pre-tax profit of $32m, and forecasts have been withdrawn by Canaccord Genuity.
Security technology supplier Thruvision (THRU) announced a strategic review. Management believes that additional funding will be required to scale up the business. There is currently cash of £1.5m, which will last until May unless potential orders are secured. The cost base will be assessed. Alternatives include bringing in a partner or selling the business.
Digital healthcare platform developer Trellus Health (TRLS) has entered an agreement with Johnson & Johnson Health Care Systems Inc for a US pilot programme for Trellus Elevate to support severe inflammatory bowel disease. Trellus Health will receive an upfront licence fee and a monthly fee. Net cash was $8m at the end of June 2024 and the additional income could help to extend the cash runway nearer to the end of 2025.
Pawnbroker Ramsdens (RFX) says improved performances from all divisions helped group revenues improve from £83.8m to £95.6m, while pre-tax profit rose from £10.1m to £11.4m. The dividend was raised from 10.4p/share to 11.2p/share. This year has started well. and management has decided to slow the new store opening programme. There will be more focus on the website.
Packaging equipment and automation provider Mpac Group (MPAC) confirms 2024 trading is in line with expectations. Pre-tax profit should recover from £7.1m to £10.5m. Net debt was £37m at the end of 2024. The order book is worth £111m and covers 53% of forecast 2025 revenues.
Telecoms infrastructure products developer Filtronic (FTC) has appointed David Marshall as director of programmes to ensure their efficient delivery. Sarah Shaw becomes General Counsel to manage commercial contracts and other legal affairs. This follows a positive trading statement that led to Cavendish upgrading its 2024-25 pre-tax profit forecast from £9.6m to £11.5m.
Construction recruitment services provider Hercules Site Services (HERC) has decided to sell its suction excavators business to focus on recruitment. The suction excavators were losing money and holding back performance. The disposal will also reduce borrowings. Labour supply revenues increased from £63.8m to £84.1m. Continuing pre-tax profit improved from £1.6m to £2.6m and further improvement to £3.4m is expected for this year.
Bars and leisure operator XP Factory (XPF) grew like-for-like revenues by 8.5% in the third quarter, which is well above the rate for the rest of the year. The figure for the year so far is 5.5%. Immersive escape rooms operator Escape Hunt was 14% ahead and Boom Battle Bars 17% higher over the Christmas period.
Cross-border payment services provider Finseta (FIN) says 2024 EBITDA will be £2m compared to a forecast of £1.9m. There was £2.2m of cash generated from operating activities. The benefits from investment in the business and new products will show through in 2025.
Premier African Minerals (PREM) has raised £1.2m from a placing at 0.0275p/share. A retail offer could raise up to £2.3m more. The cash will be invested in the Zulu project in Zimbabwe and to pay suppliers. The retail offer closes on 20 January. Some creditors may take shares for the money owed. If the cash raised in the placing and offer plus the capitalisation of debts does not get near to £3.5m the placing and offer will not proceed.
Cambridge Nutritional Sciences (CNSL) has settled its dispute with the UK DHSC with no admission of liability. The DHSC will not seek reimbursement of pre-production payments for Covid tests and Cambridge Nutritional Sciences will not claim for losses for failure to replace orders. The company will have legal costs of £200,000, but it will also release £2.5m from deferred income as exceptional income.
Cannabis-based medicines developer Celadon Pharmaceuticals (CEL) says that the strategic collaboration with Valeos Pharma is contributing to its business. This will enable the acceleration of supply of pharmaceutical grade EU-GMP cannabis active pharmaceutical ingredient products. Valeos Pharma will provide up to three tonnes of annual cultivation capacity, which is equivalent to £8.7m of income/year.
Gaming machines hardware and displays supplier Nexteq (NXQ) had net cash of $29.1m at the end of 2024, which is more than 50% of market capitalisation. Trading problems had already been flagged and there was no additional surprise. There was destocking and delayed product launches by customers. Revenues were 24% lower at $86.7m, which was slightly better than forecast. The results will be published on 19 March.
Supercapacitors developer Cap-XX (LON: CPX) has made its first shipment of co-branded products to electronic components distributor SCHURTER’S warehouse in Switzerland. On delivery, an invoice will be raised.
Construction and property asset management software supplier Eleco (ELCO) has acquired maintenance and management software provider PEMAC for €6m in cash with up to €2.4m payable based on achieving performance targets. Clients include Coca Cola and Heineken. This fits well with the existing ShireSysem product.
Argo Group Ltd (ARGO) is making a tender offer at 5p/share as part of its plan to leave AIM. Shareholders owning 71.2% of the company will not tender shares, so everyone else can have their shares acquired in the tender. The tender closes on 14 February.
MAIN MARKET
Packaging manufacturer and distributor Macfarlane Group (MACF) has acquired protective packaging manufacturer Pitreavie for £18m, with a net initial payable after debt movements of £10.6m. Pitreavie made a 2024 pre-tax profit of £1.3m. There should be cost savings from integrating the business.
Online travel hostel agency Hostelworld (HSW) says strong demand for Asian hostels helped 2024 net bookings rise 6% to 6.9 million, although there was a dip in average booking value. That meant that revenues were 1% lower at €92m. Lower marketing spend meant that margins improved. More bookings were made through the company’s app. Pre-tax profit is expected to jump to €17m. Net cash is €2m. There will be an update on strategy in the second quarter.
Bitcoin miner Vinanz (BTC) switched from Aquis to the Main Market on 13 January. The share price opened at 16.5p and rose to 22.5p before falling back to 16.5p at the end of the week.
Argo Blockchain (ARB) has been told it has until 15 July to regain compliance on Nasdaq with the minimum price requirement of $1 for its ADSs.
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 18 November 2024
AQUIS STOCK EXCHANGE
Aquis Exchange (AQX), which operates the Aquis Stock Exchange, is recommending a bid from rival exchange trading business SIX Exchange. SIX is mainly interested in the technology that Aquis has developed, but it suggests that there is potential to develop the Aquis Stock Exchange as a pan-European market. The offer for Aquis Exchange is 727p/share in cash, which values the company at £225m. There had been several previous proposals from SIX.
Aquaculture technology developer OTAQ (OTAQ) says delays in orders mean that 2024 revenues will be lower than expected. Dowgate forecasts a drop from £4.4m to £3.1m (previously £4.2m) this year and a £1.8m loss, up from £1.2m in 2023. There should still be net cash of £100,000 by the end of the year. The orders should fall into 2025. Costs continue to be reduced and annualised savings of £500,000 have been made. The board is seeking shareholder approval to leave Aquis.
Pubs operator Daniel Thwaites (THW) increased interim revenues by 5% to £63.5m and although pre-tax profit declined, excluding gains on interest rate swaps and property disposals or income on pension assets, it improved from £6m to £6.7m. Net debt was £71.2m at the end of September 2024 and it continues to invest in its pubs and hotels. The dividend was raised from 0.85p/share to 0.9p/share. There has been weaker consumer confidence since the summer. The National Living Wage and National Insurance hikes, along with the reduction in business rate relief, will hit the business and there is limited scope to increase prices. That is a problem for the next financial year.
Crypto app developer Tap Global Group (TAP) has appointed Peter Wall as strategic adviser, and it is intended that he will become chairman. He used to be chief executive of Argo Blockchain. In the year to June 2024, unaudited revenues were £2.67m and they continue to rise. Chief executive Arsen Torosian will take on the same role at the Gibraltar-based subsidiary once regulatory approval is received.
Asia Wealth Group (AWLP) moved back into profit in the first half. A loss of $94,000 was turned into a pre-tax profit of $13,000. The company is seeking investment opportunities in the UK and Asia.
Mendell Helium (MDH) has completed the sale of health business. M3 Helium, which Mendell Helium has an option to acquire, says the potential flow rates from the Rost 1-26 well in Kansas could exceed previous expectations.
Ananda Developments (ANA) chief executive Melissa Sturgess bought 2.02 million shares at an average price of 0.32p each. She has a 9.92% shareholding.
Transport electrification technology developer Equipmake (EQIP) says Tony Ratcliffe will leave his role of finance director at the end of the month.
EPE Special Opportunities Ltd (EO.P) had net assets of 294.9p/share at the end of October 2024.
AIM
Film vehicles and services provider Facilities by ADF (ADF) has been hit by filming delays and the cancelation of projects. It had appeared that there would a strong recovery in the second half following the Hollywood writers’ strike. Revenues have been reduced from £48.6m to £35.1m and margins have been hit by competition for limited contracts. This means that Facilities by ADF will not do much better than breakeven in 2024. There should be a recovery in 2025, but revenues have been cut from £67.3m to £56.8m – including a 12-month contribution from Autotrak. Rockwood Strategic has a 3.7% stake and related investment entities have a further 7.6%, while Octopus has taken a 6.49% stake. Downing and Otus have reduced their holdings. Chairman John Richards bought 200,000 shares at 30.5p each.
Duke Capital (DUKE) is asking for more money from shareholders. A placing has raised £17.2m at 27.5p/share, which is more than the initial amount sought. A retail offer could raise up to £3m more. The cash will be used for new and follow-on investments. There could also be some stakebuilding in existing investee companies. There will also be additional debt funds that can be used. The retail offer closes on 22 November.
Investment manager Tatton Asset Management (TAM) increased assets under management and influence by 13% to £19.9bn. It will be difficult to continue this momentum. Pre-tax profit was 29% ahead at £11.4m. This was held back by additional investment in mortgage business Paradigm. The interim dividend was raised by 19% to 9.5p/share.
Programmatic advertising services provider Nexxen International (NEXN) plans ask shareholder permission at its AGM for a departure from AIM and change its Nasdaq listing from ADRs to ordinary shares. Third quarter figures show 12% growth in revenues, while EBITDA is 49% ahead at $31.6m. The 2024 EBITDA forecast has been raised by 7% to $107m, which is still well below the 2022 level.
Phoenix Copper (PXC) says NIU Invest is reviewing the Empire mine project ahead of setting out a new drawdown schedule for the $80m corporate copper bond. So far, $5m has been drawn down. The company is talking to other potential bond investors. There is enough cash to reach the second quarter of 2025.
SRT Marine Systems (SRT) is raising £8.5m at 35p/share, including £5.36m from Ocean Infinity, which has also underwritten a retail offer to raise £2m of the cash. Ocean Infinity is providing a $21.4m guarantee for the performance bond relating to a $213m marine systems contract. There are other potential contracts in the pipeline and management says that SRT Marine Systems should be significantly profitable in 2025-26.
Great Western Mining Corporation (GWMO) says the anomalous copper zone at the West Huntoon porphyry copper prospect has been expanded from 2 square km to over 3 square km. There have been some high grades of copper, gold and silver in samples. The anomalous zone appears to trend towards the company’s M2 copper resource.
Deltic Energy (DELT) says Shell has provided an updated total well cost estimate of $48m for the Selene well site in the North Sea. Deltic Energy is carried for costs of up to $49m. There are plans for a second licence term as the partners move towards a final investment decision. This news and the full inclusion of tax losses has led Canaccord Genuity to increase its NPV10 share price target from 30p to 38p.
Gold explorer and producer Ariana Resources (AAU) has secured a $5m financing agreement with RiverFort Global Partners and $2m has been received. No new shares will be issued. This will fund feasibility studies for the Dokwe gold project in Zimbabwe. RiverFort Global Partners will be the cornerstone investor for the ASX listing.
There has been plenty of news from cancer diagnostics developer Angle (AGL) this week. The DNA analysis of circulating tumour cells using Parsortix has been shown to identify EGFR-mutated non-small cell lung cancer patients that are developing resistance to treatment with AstraZeneca drug Osimertinib. Uses of the Parsortix technology are being showcased at an American Association for Cancer Research special conference. Angle is presenting a talk on PD-L1 status in circulating tumour cells isolated by its Parsortix diagnostics technology from blood samples of lung cancer patients. Data produced has high analytical sensitivity and specificity and suggests that this technology can be used for personalised treatment of lung cancer patients. Additionally, there is a report on progress of developing a system to classify HER2 protein expression for breast cancer. This is being developed with BioView. Parsortix-based assays were showcased at the European Association for Cancer Research (EACR) Liquid Biopsies Conference in France.
Delays to defence orders have hit Solid State (SOLI) and profit will be much lower than expected this year. Cavendish has downgraded 2024-25 earnings by 58% to 5.5p/share and next year’s by 48% to 7.9p/share because it is uncertain when the order will come through. The UK government has paused spending on a major defence order ahead of a strategic defence review next summer. The dividend could be maintained at 4.3p/share.
Touch sensors manufacturer Zytronic (ZYT) has completed a strategic review and decided to sell assets and return any cash to shareholders. This might involve the sale of the trading subsidiary Zytronic Displays or its assets. Net cash was £3.3m at13 November. The share price
Power generator OPG Power Ventures (OPG) is being investigated by the Indian authorities for alleged non-compliance relating to the Foreign Exchange Management Act. This regulates foreign exchange transactions. Management believes that everything they have done have been in compliance with laws. The power plants continue to operate.
MAIN MARKET
Ground engineering and piling business Keller (KLR) is trading in line with expectations, but it is cautious about European operations. Competitive pricing means that profitability has been hit. There is still one loss making problem contract. North America and Asia Pacific remain strong regions in most sectors.
Critical Metals (CRTM) says copper ore off-taker OM Metals has sent the first truck load of ore to its processing plant. Critical Metals has further extended the repayment of its loan facility. A $646,000 payment has ben deferred to 20 December and could be further extended until the end of January. Cost savings, including a voluntary salary deferrals of 25% for executives, are being undertaken.
Like-for-like foundry sales volumes were one-fifth lower at Castings (CGS) as European heavy truck sales declined. Interim revenues also fell by one-fifth to £89.2m and cost savings are not fully showing through so pre-tax profit was three-fifths down at £4.1m. The interim dividend is 2% ahead at 4.21p/share. There are opportunities in off-highway, wind energy and infrastructure and that would reduce reliance on heavy truck demand. The assets acquired from Chamberlin are profitable.
Andrew Hore
Quoted Micro 28 October 2024
AQUIS STOCK EXCHANGE
Electrification technology developer Equipmake (EQIP) has raised £3m at 3p/share. Chief executive Ian Foley has subscribed for 6.67 million shares, although his stake will be diluted to 34.1%. The cash should last for six months and move the business towards cash breakeven. There was £2.48m in the bank at the end of May 2024. In the year to May 2024, the cash outflow from operations was £6.3m. The company estimates a requirement of £5.5m for working capital over the next 12 months. A potential licensing agreement could bring in £4.6m over a two-year period. Equipmake could reach cash breakeven in 2025-26. The focus is on higher margin work and bus repowering range will be rationalised. Costs are also being reduced, but it is investing in its commercial team.
Igraine (KING) has secured right of first refusal on current and future battery storage projects developed by GEM Energia. AIM-quoted Vela Technologies (VELA) is providing a loan facility with a minimum commitment of £200,000. Igraine will issue 35.5 million shares, which is 29.1% of the company, to GEM in return for the rights. David Levis, the chief executive of GEM, is joining the Igraine board as an executive director. He founded GEM to develop battery energy storage projects in the UK. It develops the projects up to the point where it either sells them or proceeds with the development itself. Igraine will have the right to receive 8% of the sales proceeds of a disposal or be involved in their further development. Initial sites will be sold to generate cash for Igraine and strengthen the balance sheet. Each site requires £150,000-£250,000 to secure grid connections and get to the ready to build stage. Every MW of capacity is valued at £120,000. After costs, a 100MW site could generate cash of more than £7m. There are four sites which are already in progress.
Oscillate (MUSH) has started hydrogen operations in Minnesota. A hydrogen soil-gas sensor has been bought and pre-field work started, which will provide data to enable further progress. Igraine has been diluted from 10.2% to 5.05% following the recent share issue.
Lift Global Ventures (LFT) says investee company Trans-Africa Energy has not received the £12m it was waiting for from an African investor. It is talking to alternative sources of finance for the energy infrastructure project in Ghana. The redemption date on the loan notes held by Lift Global Ventures has been extended to the end of 2024 and in return the value will be increased from £1m to £1.25m.
Ananda Developments (ANA) says two of its potential medicines, MRX2 and MRX2T, will be used in National Institute for Health and Care Research and NHS co-funded phase IIIa epilepsy clinical trials involving up to 500 patients. This could support marketing authorisation applications if the trials are successful.
EDX Medical Group (EDX) has raised £300,000 from a Saudi Arabian investor at 11p/share, which was a 22% premium to the market price.
Corporate businesses developer Macaulay Capital (MCAP) managing director David Horner has doubled his shareholding to 500,000 shares by buying 250,000 shares at 20p each. His family has a 24.9% stake. Marula Mining (MARU) director Jason Brewer has increased his shareholding by 340,000 shares at 5.38p each. That takes his stake, held through Gathoni Muchai Investments to 9.13%. Mike Cass has increased his stake in BWA Group (BWAP) to 15.1%. James and Alexandra Pace have a 5% stake in Shepherd Neame (SHEP).
AIM
Footwear retailer Shoe Zone (SHOE) says that poor weather hit second half sales, but it has traded in line with expectations. Full year revenues were 3% lower at £161.3m with a second half decline wiping out the interim growth. Trading did improve in August and September. Zeus forecasts a fall in pre-tax profit from £16.5m to £9.5m. The full year dividend will slip from 17.4p/share to 6.2p/share.
Disinfection products supplier Tristel (TSTL) beat expectations in the year to June 2024. There were initial revenues from the US, but they will take time to build up. Sales grew in nearly every market, with small dips in Australasia and China. A price increase in the UK, combined with higher volumes, helped hospital medical device decontamination jump 38%. The main growth in sales is in the UK and Europe. In the year to June 2024, revenues improved from £36m to £41.9m, while pre-tax profit rose from £6.2m to £8.2m. There was a reallocation of costs from overheads to cost of sales, so this affected comparatives. The total dividend was raised 29% to 13.52p/share.
Telecoms enterprise software provider Cerillion (CER) continues to grow faster than its underlying market. Revenues were 14% higher in the second half, enabling profit to be better than expected. There are record new orders and this underpins further growth in the next couple of years. The €12.4m order from the previously unnamed Virgin Media Ireland is contributing to the growth. It probably generated £6m last year. This is the first contract with a tier-1 telecoms company and could help to win other contracts with this level of business. In the year to September 2024, revenues were 12% ahead at £43.8m.
Online marketing services provider XL Media (XLM) is selling its North American business for up to $30m in cash, with $20m payable on completion and up to $10m in April – based on revenues and gross profit in 2024. Some cash should be redistributed to shareholders by the end of the year. The company will effectively become a cash shell.
EnergyPathways (EPP) has been asked by the UK government to participate in the Hydrogen Storage Business Model. This will help to define the new investment support scheme. The first Hydrogen Storage Allocation Round should be in 2025.
Seascape Energy Asia (SEA) has been awarded a 28% participating interest in a production sharing contract over the DEWA complex cluster, offshore Sarawak, Malaysia. Enquest owns 42% and Petroleum Sarawak holds 30%. The area has 12 gas discoveries in shallow water near to the coast. Six will be focused on and these have 500bcf of gas in place. Seascape Energy Asia will commit $600,000 for a detailed resource assessment and field development plan.
Specialist recruitment firm Gattaca (GATC) reported an underlying 2023-24 pre-tax profit decline from £3.7m to £2.9m on 5% lower net fee income of £40.1m. There was a 3% increase in net fee income for contract work, but permanent income dropped by one-third. Despite the decline, Gattaca is gaining market share. Costs have been reduced and the US business has been sold. There could be a modest improvement in profit this year.
Prospex Energy (PXEN) recently acquired a 7.2365% working interest in the onshore Spain Viura gas field, which recommenced production last week. The Viura 1B development well has encountered significant gas shows in the Utrillas-A reservoir and a new gas bearing reservoir interval below that. The well, which cost Prospex Energy €375,000, could contribute to production in November Flow testing results for the deeper reservoir will be available next year. There should be a significant upgrade to recoverable reserves. The European gas price is rising.
Musical instruments retailer Gear4Music (G4M) continues to recover with growth in the second quarter nearly offsetting the decline in the first quarter and further improvement in October. In the six months to September 2024, UK sales grew 4%, but European sales declined. Total sales were 1% lower at £61.7m. Gross margin has fallen back, but the interim loss will be reduced. Full year revenues are expected to be higher and pre-tax profit could jump from £1.1m to £2.8m.
Information and data publisher Merit Group (MRIT) has been hit by the ending of project work and the lack of replacement work. Sales resource is being added, but that will take time to boost revenues. Canaccord Genuity has changed its 2024-25 forecast from a £900,000 profit to a loss of £800,000 after a 11% reduction in expected revenues to £18.5m, which is lower than the 2022-23 figure. A return to profit is forecast for next year. There are management changes that are flagged for next year.
Ariana Resources (AAU) has reviewed the data for the Dokwe gold project in Zimbabwe. There are several zones of potential extensions to mineralisation. There are also gold-in-soil anomalies to follow up and drilling is planned. The in-pit resource is 1.2moz in two open pits at Dokwe Central and Dokwe North. Measured and indicated resources are 30Mt at 1.3g/t gold. Ariana Resources believes there could be annual production of up to 100,000 ounces of gold for up to 15 years. A revision of the pre-feasibility study is underway.
At the end of the week, property developer and investor Caledonian Trust (CNN), which has been on AIM for more than 29 years, announced its proposed departure. The direct annual cost of the quotation is £100,000 and liquidity is poor. A general meeting to gain shareholder approval will be held on 18 November. There is already support from holders of 85.3% of the shares. The quotation could end on 26 November. NAV is 195.1p/share.
Adams (ADA) is proposing the cancellation of the AIM quotation and sell off the company’s investments, many of which are also quoted on AIM, to return the cash to shareholders. Prior to this Adams will be buying back shares at 4p each. The estimated NAV is 3.72p/share. Liquidity is limited because Richard Griffiths owns 94% of Adams. A general meeting will be held on 27 November and, if passed, the cancellation will be on 5 December.
MAIN MARKET
Advanced materials developer HeiQ (LON: HEIQ) has found growing its business difficult, particularly in textiles, flooring and antimicrobials and not recovery is expected until well into 2025. Another restructuring plan will cut costs and focus on certain facilities. Non-core operations will be scaled back. Some parts of the business may be sold, and outside finance is being sought for AeoniQ. Part of the cost cutting is giving up the listing. This should take effect on 19 November. Because the shares are on the transition category of the market since the restructuring of the Main Market, no shareholder vote is required. The shares will be traded by JP Jenkins. Daren Morecombe has increased his stake from 14.5% to 22%.
Bloomsbury Publishing (BMY) grew interim revenues by 32% to £179.8m, while pre-tax profit jumped from £17.7m to £26.6m. This is due to strong consumer division revenues due to strong sales of fantasy fiction and cookery books.
LED lighting and wiring accessories supplier Luceco (LUCE) increased third quarter revenues by 3% with residential EV charging the main growth area. However, excluding acquisitions, like-for-like revenues were 3.6% lower, partly due to phasing of orders so that there is a strong fourth quarter order book. Margins are improving. Net debt was £67m at the end of September 2024.
Andrew Hore
Quoted Micro 21 October 2024
AQUIS STOCK EXCHANGE
ProBiotix Health (PBX) has sent out a circular for the requisitioned general meeting on 1 November. The meeting has been requisitioned by Seneca Partners and related investors that hold 5.46% in total. Seneca Partners is also an investor in AIM-quoted OptiBiotix Health (LON: OPTI), which is also unhappy with the current management, but a relationship agreement means that it could not requisition a general meeting. OptiBiotix Health and related individuals own 37.95% and will vote in favour of the resolutions. ProBiotix Health wants to block these shares from being voted. The first resolution is to remove the chief executive Steen Andersen and the second is to remove non-exec Frederik Bruhn-Petersen, whose firm recently subscribed for shares, a funding that OptiBiotix Health was unhappy about. Seneca Partners and OptiBiotix Health are also unhappy that the chief executive wanted to leave the Aquis Stock Exchange.
Marula Mining (MARU) is finalising negotiations to establish a new joint venture with a Chinese battery manufacturer and lithium offtake partner at the Blesburg lithium and tantalum mine. This would be for a lithium acid leaching processing plant, which could be commissioned by next summer. This will use spodumene from the mine and could produce 2,000 tonnes of high-grade lithium product each year. A subscription of £750,000, which comes through the issue of 15 million shares at 5p each via the AUO Commercial Brokerage LLC subscription agreement, will be used to fund the installation of an ore sorter at Blesburg and the costs of other projects. Gathoni Muchai Investments, where Marula Mining board member Jason Brewer is a director, bought 430,000 shares at 5.96p each.
At the end of the three months to September 2024, Arbuthnot Banking (ARBB) customer deposit balances were £3.8bn and customer loans £2.5bn. Funds under management and administration have grown 18% to more than £2bn in the nine months to September 2024. Arbuthnot Banking has completed its move to new offices in the City of London. Management is assessing the proposed new capital rules and deciding if strategy changes will be required. The Budget could also affect strategy.
Substrate Artificial Intelligence (SAI) intends to leave the Aquis Stock Exchange, although it will remain on the BME growth market in Spain. The cancellation of trading on Aquis will happen on 15 November.
Invinity Energy Systems (IES) is extending the expiry date of the 8.67 million options, exercisable at 175p/share, held by Gamesa Electric to 10 May 2025. Employee share options will be extended until 21 November 2029.
Mendell Helium (MDH) has agreed to sell its plant-based health and wellness business to Orsus Therapeutics, which will leave the seller with a 28% stake plus six million warrants in the buyer. This is conditional on shareholder approval. The Orsus Therapeutics shares may be distributed to Mendell Helium shareholders. Mendell Helium has an option to acquire Kansas-focused M3 Helium.
Inqo Investments (INQO) has made an investment in Empower Clean Cooking. Uganda-based Empower produces biomass pellets for cooking fuel.
Vehicle electrification technology developer Equipmake (EQIP) is supplying its zero emission drivetrain for use in Textron Safeaero 220 airside de-icing vehicles. There were successful trials earlier in the year.
Former Made Tech (MTEC) finance director Deborah Lovegrove has taken on the same role at All Things Considered (ATC).
AIM
Pulsar Helium Inc (PLSR) shares were already trading on TSX-V and the OTCQB Venture Market and the additional cash raised by coming to AIM on 18 October and raising £3.875m at 25p/share. This will fund further exploration in of the Topaz helium project in northern Minnesota, close to the Canadian border. So far, an appraisal well has been drilled and this confirmed the presence of helium. This will be drilled deeper. There were 1.47 million shares traded on the first day. Having opened on 29p the shares closed the day at 27.5p.
Mothercare (MTC) shares returned from suspension following the 2023-24 results publication and refinancing. There is a new £8m two-year loan facility from Gordon Brothers, which receives 43.4 million warrants exercisable at 8.5p/share. There is also a joint venture with Reliance Brands, which will acquire 51% for £16m, covering the Indian sub-continent. In the year to March 2024, underlying pre-tax profit dipped from £3.4m to £3.1m. Overall revenues continue to decline, and Cavendish expects a small loss this year.
Joshua Alliance is offering 40p/share in cash for each share in N Brown Group (BWNG). The share price has not been this high since February 2023. The Alliance family and related parties already own 53.4% of N Brown. The bid values the fashion brands company at £191m. The chief executive and finance director of N Brown will elect for a share alternative.
Motor dealer Vertu Motors (VTU) had a strong September sales period, and it continues to outperform the sector, particularly in electric vehicle sales. Strong aftersales business and a stabilised second hand car market means that the outlook is positive. In the six months to August 2024, revenues were 3% ahead at £2.49bn. Full year revenues are expected to be flat and pre-tax profit slightly higher at £38m. NAV of 112.8p/share is forecast. A further £3m share buy back is planned.
Weak interior design markets, particularly in the UK, hit interim the figures of Sanderson Design Group (SDG). The timing of licensing revenues exacerbated the downturn in underlying pre-tax profit from £6.8m to £2.2m. The dividend has been reduced by one-third to 0.5p/share. Net cash fell to £9.6m at the end of July 2024.Trading continues to weaken with a 10% downturn in revenues so far in this financial year. The aftermath of the UK Budget and the US election could determine the full year outcome. Investec has reduced its pre-tax profit forecast by 8% to £7.5m, down from £12.2m last year.
Digital mental health services provider Kooth (KOO) says the State of Pennsylvania has terminated its contract with the AIM company. The contract started on 11 October 2022 and the end date was extended from June 2024 to June 2025. However, there is a right to terminate with a 30-day notice period. Kooth says that it was negotiating a new contract, and it is unsure what the status of ongoing work will be. When it was announced, the contract was said to be worth $3m in its pilot year.
Approval for further development of the Wressle field in Lincolnshire has been revoked, because of a legal challenge that greenhouse gas emissions were not taken into account in the original decision. Union Jack Oil (UJO) has a 40% interest in the Wressle development and Europa Oil & Gas (EOG) owns 30%. A revised application for Wressle can be made with additional data on emissions. The existing production continues.
Executive search company Norman Broadbent (NBB) says third quarter revenues are 16% lower than last year at £2.7m. Even so, it was the strongest quarter of the year. September was particularly strong.
CloudCoCo (CLCO) is selling its managed IT services business for £9.2m. This will discharge liabilities, including the MXC loan notes, and leave cash of £950,000. If the sale does not go ahead management will need to consider if there is a future for the group. There are also discussions concerning the sale of the Connect business. The focus will be on the product reseller business.
Decision making software provider ActiveOps (AOM) grew first half revenues by 9% to £14.3m. Annualised recurring revenues are £26.2m. Net revenue retention is 1085. There is cash of £13.4m. Demand is being driven by organisations needing to reduce the cost base. Investment in sales will pay off next year.
Iodine supplier Iofina (IOF) is on course to meet iodine production guidance for this year. There was 163.9 metric tonnes produced in the third quarter. Iodine prices have been higher than in the first half when they were $66.84/kg.
Armadale Capital (ACP) proposes a cancellation of the AIM quotation because it believes that being public does not benefit the company because of the costs. Armadale Capital needs to reduce the cash burn and sell non-core assets. The resources company can be more flexible as a private company. A general meeting will be held on 1 November.
Emmerson (EML) says that the regional authority in Morocco have made an unfavourable environmental recommendation relating to the Khemisset potash project. The full decision is not yet available. Emmerson had previously appealed against the regional authority’s decision not to approve the project under environmental grounds.
MAIN MARKET
Online travel hostel agency Hostelworld (HSW) has moved into a net cash position and trading is in line with expectations even though there has been a small fall in revenues in the nine months to September 2024 due to lower average booking values. Direct marketing costs are down from 51% of revenues to 46%, while operating costs are also lower. Four-fifths of bookings are from social media. Capital allocation policy is being assessed.
Kitchenware retailer ProCook Group (PROC) says second quarter trading shows it is outperforming the market. Interim revenues are 8% ahead at £28.3m with like-for-like revenues 4% higher. The fastest growth is in ecommerce, helped by the relaunch on Amazon, but retail is also recovering. Higher inventory levels meant that net debt has moved up to £4.2m.
Property investor Town Centre Securities (TOWN) is no longer a REIT. That means that there is more flexibility for the business. EPRA net tangible assets slipped 2.5% to 277p/share at the end of June 2024. The loan to value ratio is 50.8%. The final dividend is 2.5p/share.
The space sector is attracting more investment and Seraphim Space Investment Trust (SSIT) will benefit. In the year to June 2024, the NAV improved from 92.9p/share to 96.2p/share, helped by share buy backs. Many of the investment portfolio are reaching maturity and Astroscale has floated on the Tokyo Stock Exchange.
Shell company Dukemount Capital (DKE) has raised £98,500 from a share issue at 0.025p/share and £51,500 from convertible loan notes with the same conversion price. Loans were previously converted into shares and £300,000 was raised earlier in the year at 0.04p/share. Th outstanding warrants are being repriced to 0.0375p. Richard Edwards has joined the board, and he owns one-quarter of the company.
Andrew Hore
Quoted Micro 20 November 2023
AQUIS STOCK EXCHANGE
Marula Mining (MARU) has completed the phase 1 drilling programme at the Blesberg lithium and tantalum mine. The 21 holes were finished ahead of schedule and assay results are awaited. Phase 2 drilling has started and 15 out of 21 holes have been completed. Financial forecasts for the planned open pit hard rock mining plan.
Valereum (VLRM) says that the Gibraltar Stock Exchange is surrendering its licence and closing its markets. Valereum still wants to acquire the Gibraltar Stock Exchange and holds a fixed charge over a 50% stake. The plan would be to apply for a new licence. Alan Gravitz has left the board.
Ananda Developments (ANA) subsidiary MRX Medical has signed a drug supply agreement with the University of Edinburgh and the Lothian Health Board. The MRX1 cannabidiol oil formulation will be used in a trial for the treatment of chemotherapy induced neuropathic pain.
Gunsynd (GUN) has paid the first tranche of £250,000 for a farm-in agreement with Metals One. Gunsynd will hold Finnaust Mining Northern. Gunsynd has sold 1.24 million shares in Charger Metals for £257,000. It retains 1.3 million shares.
Vinanz Ltd (BTC) has already spent some of the money raised at the beginning of November to acquire 171 bitcoin miners in North America. The plan is to buy a total of 250 bitcoin miners. Vinanz currently holds 9.1 bitcoin.
Cadence Minerals (KDNC) says its subsidiary has issued a request for consultations and negotiations to the Mexican government concerning the possible revocation of the mining concessions for the Sonora lithium project. These concessions are held by joint venture companies, where Cadence Minerals has 30% stakes.
Quantum Exponential (QBIT) has converted its £450,000 investment in Universal Quantum in exchange for 84 million shares at 5319.47p each. A one-for-1,000 share split will happen after the share issue. This means that the subsequent 84,000 shares will be 0.51% of buildable quantum computers developer Universal Quantum.
Wishbone Gold (WSBN) says initial mineralised results from the first half of the Cottesloe project in Western Australia. The company expects full results during next January.
Oberon Investments (OBE) has switched from the Access to Apex segment of the Aquis Stock Exchange.
SuperSeed Capital (WWW) has adjusted its NAV figure for the end of June 2023. It has been reduced from 1.184p/share to 1.121p/share.
Wheelsure Holdings has received potential financing and acquisition approaches, but nothing has been finalised and it is running short of cash. The shares have been suspended and the quotation cancelled on 15 November. Talks continue.
Tunch Kashif reduced his stake in ChallengerX (CXS) from 21.6% to 17.9%. Mark Horrocks has increased his shareholding in Lift Global Ventures (LFT) from 13.3% to 14.99%.
AIM
Hotel Chocolat (HOTC) is recommending a 375p/share bid from Mars, which values the chocolate company at £534m. Mars is keen to help Hotel Chocolat expand into new regions. The track record of the current management when it comes to international expansion has been mixed and it will help to have a larger company with greater resources backing the expansion. Shareholders can accept an alternative offer of one rollover share in the bid vehicle for each share. The value of these shares will be dependent on the performance of the business, and this would be taking a risk.
Verici Dx (VRCI) has entered into an exclusive licence agreement with Thermo Fisher for its pre-transplant prognostics. This will generate staged payments of $5m over the next 12 months, plus future royalties of per test. That means that Verici Dx will have enough cash until the end of 2024. Thermo Fisher has the commercial expertise to roll out the technology and it will further develop the product.
City Pub Group (CPC) is also the subject of an agreed bid. Young & Co’s Brewery (LON: YNGA) is offering 108.75p in cash and 0.032658 of an A share for each City Pub Group share, valuing it at 145p/share or £162m. The share price jumped 52.5% to 136.5p. Young’s has been seeking to grow its managed pubs business and believes it is rare to have the opportunity to acquire such an attractive portfolio of pubs. The deal will increase the number of pubs owned by 50 to 279. A significant amount of City Pub Group’s central overheads of £5.6m could be saved by the combined group and there could be other savings. Young’s shares rose 1.86% to 1095p.
AMTE Power (AMTE) has secured a short-term financing. The battery technology developer will receive £2.5m from a subscription by Pinnacle International Venture Capital at 1.7p/share and it is also providing a £200,000 convertible loan facility. A placing will raise a further £400,000 at 0.5p/share. A general meeting is required to approve the subscription.
Jarvis Securities (JIM) has confirmed it is not paying a fourth quarter dividend. The FCA is planning a further review into the company’s operations, including the approach to uninvested cash and interest retention. This report has to be delivered by the end of February 2024.The voluntary restrictions on the business are continuing and another review is required before they can be lifted. The reviews have cost more than £1.3m this year.
AFC Energy (AFC) is purchasing Octopus Hydrogen’s UK mobile hydrogen storage and distribution assets. These assets can be used to provide a hydrogen fuelling service for H-Power generator units rented by new partner Speedy Hydrogen Solutions and other future users of hydrogen powered equipment.
Celadon Pharmaceuticals (CEL) has secured a new sales contract with a European medicinal cannabis company that could generate up to £26m over a three-year period. The first delivery will be in the second half of 2024. The cannabis grower and drug developer will supply pharmaceutical-grade cannabis. There are other interested buyers.
Autonomous vehicles developer Aurrigo International (AURR) has launched a placing to raise at least £3.5m at 100p/share and there will also be a retail offer at the same price. Coventry-based Aurrigo International won the best newcomer title at the 2023 AIM awards, having floated AIM on 15 September 2022 at 48p/share. Aurrigo International had cash of £2.8m at the end of June 2023 after a £1.9m outflow from operations in the first half. There will be £1.5m spent on customer roll out and £400,000 for additional staff.
Chain and transmission equipment Renold (RNO) reported strong interims with revenues 8% ahead at £125.3m and pre-tax profit 55% higher at £11.3m. The revenues and margins of the transmission business have jumped as the new MoD contract builds up. The chain division also grew revenues and margins. Order intake has slowed, but that is at least partly down to there being more confidence in the supply chain.
Freight and parcel delivery company DX (DX.) is recommending a 47.5p/share bid from HIG European Capital Partners, which values the company at £315m. The shares have gone ex-dividend, and the final dividend of 1p/share will be paid on 7 December. That reduced the level of the bid.
DP Poland (DPP) says third quarter like-for-like sales in Poland were 14.1% higher and they were 34.8% ahead in October. The Croatian business is growing even faster. Singer believes the pizza retailer could move into profit in 2024.
Initial results from drilling at the Wedding Bell and Radium Mountain owned by Thor Energy (THR) confirm the potential of the US uranium projects. More than 50% of the 25-hole drill programme has been completed. The initial results come from downhole gamma logs and handheld pXRF devices to determine anomalous levels of uranium and these will be sent to laboratories for final analysis.
Blue Star Capital (BLU) investee company SatoshiPay has appointed Benchmark International to value the business and seek potential acquirers. Blue Star Capital owns 27.9% of SatoshiPay.
Saietta Group (SED) says that its 49.5% owned Indian joint venture has secured an order for complete eDrives from its main client for a second of its light commercial vehicles. The initial order is worth £106,000 over three months and the first full year of production could generate £12.7m. This is the first significant order for the new radial flux technology.
MAIN MARKET
Data integrity and banking integration software provider Gresham Technologies (GHT) is losing business with ANZ its biggest customer. The company will no longer provide sub-contracting services, but ANZ will still use its Clareti software. This was lower margin work, and the focus is on software.
J Smart (Contractors) (SMJ) reported a higher loss on contracting and did not have any disposal gains in its investment activities. That meant that pre-tax profit fell £8/19m to £105,000. There was an operating loss offset by interest income. A 2.27p/share dividend is payable on 29 January.
Andrew Hore
Quoted Micro 13 November 2023
AQUIS STOCK EXCHANGE
Shares in wine maker Chapel Down Group (LON: CDGP) revealed firm plans to move to Aim, probably on 7 December. This could lead to an additional 10.8 million shares being issued, which would represent 6.5% dilution, to simplify the share structure. There will be no cash raised at the time of the move. The latest harvest was of 3,811 tonnes of grapes, which is 86% more than in 2022. This should be enough for 3.4 million bottles of wine, including a greater amount of sparkling wine.
Vinanz Ltd (BTC) raised £350,000 at 3p/share at a premium to the then market price. During the week the share price jumped 135% to 6.75p. The cash will be used to buy 250 bitcoin miners, which will triple the bitcoin mining capacity in North America. Vinanz hopes to have the new machines up and running by the end of the year. Vinanz should be able to generate bitcoin worth $1.2m each year.
Field Systems Design (FSD) increased turnover from £8.09m to £13.75m in the year to May 2023, while the mechanical and electrical contractor swung from a loss of £1.9m to a pre-tax profit of £287,000. This was despite the slow build up of water sector work, but this is set to change. Volumes should continue to grow. There was £2.26m in cash at the end of May 2023.
Daniel Thwaites (THW) interim revenues improved from £57.9m to £60.3m. The decline in pre-tax profit from £15.7m was down to a much lower gain on interest rate swaps, reduced gains on property disposals and a higher interest charge. The interim dividend has been raised from 0.75p/share to 0.85p/share. Pubs were hit by wetter weather in the summer, but there was a recovery in September, so volumes were only 1% lower. There was an improved performance from hotels and spas, with weddings demand returning to past levels.
Ananda Developments (ANA) says a subsidiary has lodged a patent application in the UK, which covers cannabinoid formulation based on MRX2 with additional THC. This would be the fifth patent.
Black Sea Property (BSP) has completed the acquisition of Grand Hotel Varna, which includes three hotels and a beach marina resort. There was €10.3m raised through a placing at €0.016/share, plus a further €10.8m from a loan note issue. Elea Capital will own 26.2%. Black Sea Property has also taken its stake in Littoral Invest, which owns other properties in Varna, to 99.4%.
IamFire (FIRE) investee company WeShop has secured a partnership with digital investment management company Spring IM, which means that 200,000 customers will be onboarded to Spring’s digital service. WeShop customers will be able to set up ISAs for no cost and put any shares they have earned in WeShop while shopping into the ISA.
Substrate Artificial (SAI.B) increased interim revenues from €1.25m to €1.8m, while the loss fell from €14.5m to €2.46m, mainly due to a €11.5m impairment charge in the previous period.
S-Ventures (SVEN) has arranged a bridging facility of £1m, which is repayable in six months. The interest rate is 2%/month. There are still plans to raise at least £2.5m.
Castlefield Investment Partners reduced its stake in Capital for Colleagues (CFCP) from 41.9% to just under 39%. Seven of the company’s directors acquired a total of 593,963 shares at 57.5p each.
Psych Capital (PSY) has completed the acquisition of Shortwave Pharma Inc, which is developing therapies to address eating disorders. Rivki Stern is joining as chief executive and Roy Kait is also joining the board as a non-exec. Chairman Joseph Colliver has left the board.
EPE Special Opportunities (EO.P) had net assets of 291.98p/share at the end of October 2023.
AIM
Naked Wines (WINE) chief executive Nick Devlin has stepped down from the board, although he will continue to head up the US business until the end of peak trading, and chairman Rowan Gormley will take an executive role until a successor is identified. Nick Devlin being in charge of the US as well as the group as a whole is identified as the major problem of the group. Trading in the US is weaker than expected and group revenues could fall by up to 16%, while operating profit will be between £2m and £6m, compared with previous guidance of £8m-£12m. Sales have fallen in all the main regional markets with the 11% decline in the UK the best performance. The share price slumped by 37% to 28.65p, which is just above the all-time low from earlier in the week.
Fully listed Luceco (LUCE) is investing £1.75m in energy as a service provider eEnergy Group (EAAS) at 5p/share, which was a premium to the market price. Luceco will have a 9.1% stake. Luceco has been supplying LED lighting to eEnergy Group and some of the cash will go to settling trading balances. The company will continue to spend the same amount on Luceco lighting products, subject to price and availability. eEnergy Group has received approaches for the energy management division and there are exclusive talks with a potential buyer, which could generate more than £30m. This would be reinvested in the energy services business.
Yet another upgrade following a trading statement by cosmetics supplier Warpaint London (W7L). Current trading is better than expected and the company is selling through more retailers. The growth is across all regions. Full year sales should be at least £85m, up from £64m last year. Shore Capital raised its earnings forecast by 11% to 16p/share.
In the first quarter, Bangladesh-based Beximco Pharma (BXP) reported an 11% increase in pre-tax profit to BDT1.57bn with growth in domestic sales and exports. Inflationary pressure meant that gross margins were slightly lower. New production capacity is online and there is plenty of scope for growing sales without significant additional capital investment. This will make the business highly cash generative and it could be in a net cash position by 2026.
Time Finance (TIME) says trading is better than expected and Cavendish has upgraded its 2023-24 pre-tax profit forecast from £5m to £5.4m. That is equivalent to 4.4p/share. The smaller company finance provider increased its gross loan book to £180m. Arrears have remained flat.
Argentex (AGFX) admits that 2023 results will be 15% lower than expectations. This follows the departure of the chief executive and finance director. Revenues and EBITDA will be similar to 2022.
Myanmar Investments (MIL) is asking for shareholder approval to cancel trading on AIM. In 2019, the company took the decision to wind down its investment portfolio and political conditions in Myanmar are unfavourable, which is hampering realisations. There was $476,000 in the bank at the beginning of this week and management wants to conserve as much cash as possible. Leaving AIM will save $115,000/year.
Microsaic Systems (MSYS) has been unable to secure additional working capital and it plans to leave AIM as part of a cost cutting move, which is likely to mean that all staff will be made redundant. External contractors will be used to maintain production of mass spectrometer machines.
The CEPS (CEPS) share price has fallen because Chelverton Growth Trust plans to distribute its 26% shareholding to its own shareholders.
Specialist maintenance and compliance services provider Kinovo (KINO) increased revenues by 2% to £30.3m in the first half and gross margins improved. New regulations for electricals helped to boost higher margin demand. Canaccord Genuity maintains its full year pre-tax profit forecast at £5.8m.
MAIN MARKET
Stranger Holdings has completed the reverse takeover of a 70% interest in the Henkries uranium deposit and prospecting right in South Africa to form the renamed Neo Energy Markets (NEO). Dealings commenced on 9 November 2023 and a further £500,000 was raised at 1.25p each after the admission. Neo Energy Markets has a JORC compliant mineral resource at Henkries Central and Henkries North is 4.7m lbs U3O8 with a JORC compliant exploration target of 1.1-2m lbs at Henkries North. Less than 10% of the area has been fully explored. A 7,000-metre drilling programme is planned. The uranium mineralisation is hosted in shallow sediments, and it is generally within eight metres of the surface. That will keep the costs of mining down. If things go well the mine could be up and running in three years.
Shares in Critical Metals (CRTM) resumed trading after its annual report was published. The share price fell from 17p to 15p. Critical Metals has the funding to develop the Molulu project and a JORC compliant resource is expected to be published in the near future.
XP Power (XPP) raised £45.4m through a placing and offer at 1150p/share. Management has been trying to reduce costs to offset the lower revenues and capital spending cut back. Surplus stocks will be unwound, and the cost reductions could save up to £10m in 2024. There will be no dividends until the end of 2024.
Pineapple Power Corporation (PNPL) has agreed heads of terms for the acquisition of Ilios Hydrogen, which is a Canadian developer of hydrogen production plants.
Milton Capital (MII) continues to seek an acquisition with the focus on the energy sector. The standard list cash shell is assessing light to medium hydrocarbon exploration and natural hydrogen opportunities.
Standard list cash shell More Acquisitions (TMOR) says that it has the backing of 51.45% of the shareholders ahead of the requisitioned general meeting, which will still be held on 1 December.
Andrew Hore
Quoted Micro 9 October 2023
AQUIS STOCK EXCHANGE
Trading in Silverwood Brands (SLWD) shares have been suspended. The company has mutually agreed with Lush that there can be another extension to 9 October for the timetable to serve its defence in the litigation concerning the acquisition of a stake in Lush. Tanith Dodge has resigned as a non-exec director.
Dermatological treatments developer Incanthera (INC) had £3,000 in the bank at the end of March 2023. There has been £32,000 raised since then. Commercial deal discussions continue. The technology continues to be enhanced.
Electric drivetrain technology developer Equipmake (EQIP) increased revenues from £3.7m to £5.1m in the year to May 2023. The cash outflow from operations was £9m and £1.2m was spent on capital investment. There is £7m in the bank.
Guanajuato Silver (GSVR) provided updated production guidance for its four silver mines. The focus will be on mining higher grade areas. The silver equivalent production will range from 3.4 million to 3.6 million in 2023.
Clean Invest Africa (CIA) is the best performer on the week following its interim results. Management says that there are potentially exciting prospects, but more funds will be required. Securing a partner for a CoalTech coal fines processing plant would involve a project worth more than $10m.
Invinity Energy Systems (IES) has sold a 1.1MWh vanadium flow battery to NARLabs in Taiwan. The flow battery will be installed in the company’s building.
Yooma Wellness Inc (YOOM) has sold Vitality CBD for $2m to Psilobrain Therapeutics, a Canadian biotech company. The cash is payable in three instalments over 210 days. The shares remain suspended. The company is still short of cash and it has no operating business.
Gunsynd (GUN) has a 0.66% stake in Pacific Nickel Mines, which has commenced the mining of saprolite nickel ore at the Kolosori nickel project in the Solomon Islands. The first shipment should be in November.
EDX Medical (EDX) has signed an agreement with Guardant Health to distribute its cancer genomic liquid biopsy tests in the UK and Nordic countries. EDX Medical made a £3.7m loss in the period to March 2023. The share price declined 12.5% to 2.625p.
Marulu Mining (MARU) says that assay results confirm high-grade copper at the Sasimo prospect at the Kinusi copper mine in Tanzania. The average copper grade was 2.68%. The target is estimated to be 10-15 million tonnes of copper. Drilling at the Blesberg lithium and tantalum mine in South Africa is nearing completion.
Tap Global Group (TAP) has reached an agreement to launch its cryptocurrency app in conjunction with Chicago-based Zero Hash, which has regulatory approvals. This service should launch in the fourth quarter.
Looking Glass Labs (NFTX) has consolidated 75 shares into one new shares.
Tunch Kashif has increased his stake in ChallengerX (CXS) to 21.6%.
AIM
Educational services provider Tribal Group (TRB) is recommending a 74p/share cash bid from Ellucian Company. The share price has not been at the bid level since September 2022, following disappointing interim figures. The bid values Tribal at £172m and it will create an international supplier of technology to education and public sectors.
A firm bid for online home moving services provider Smoove (SMV) was announced at the end of trading on Wednesday. The original approach was revealed in April. PEXA Group is offering 54p/share in cash, valuing Smoove at £30.8m. The share price has not been high for just over one year. The company joined AIM as ULS Technology on 28 July 2014, when it was valued at £25.9m at the placing price of 40p.
Inspiration Healthcare (IHC) interim figures should mark the bottom for the company and there should be a profit improvement in the second half. In the six months to July 2023, revenues were flat at £20.4m, but there was underlying growth excluding the medical device that is still awaiting UK approval. Pre-tax profit nearly halved to £700,000. The interim dividend is unchanged at 0.205p/share. A full year pre-tax profit of £2.4m, up from £2m the previous year, is forecast.
Telematics company Quartix Technologies (QTX) admitted that revenues and gross margins would be lower than expected. Progress in the UK and US has been disappointing, and these markets will be focused on. Quartix has acquired Konetik, which provides the technology for its Evolve product, for €2.5m, with up to €1.4m more payable depending on the sale of Evolve licences. Around 50,000 tracking systems will have to be replaced in France when 2G networks are switched off and this could cost Quartix £4.1m over three years. EBITDA could be £1.1mm lower than forecast this year and £2.4m lower next year. The dividend may be reduced.
Neometals (NMT) says that the new lithium recovery process has led to more than 93% lithium recovery from batteries in the form of lithium fluoride. This should reduce operating costs and capital investment. The proposed offtake agreement with Jiuxing Titanium Minerals for the Barrambie titanium project in Australia was not agreed and other partners are being considered. Cavendish values Neometals at 140p/share.
Horizonte Minerals (HZM) is changing the design of the Araguia nickel project in Brazil, which will increase capital investment and delay production until the third quarter of 2024. Management is in talks about additional financing. A review of operating costs should be completed by the end of the year.
Resources projects developer Oracle Power (ORCP) is raising £350,000 at 0.035p/share with one warrant exercisable at 0.07p attached to every two shares. A capital reorganisation to reduce the nominal value of the shares to 0.001p is required, or the new shares could not be issued. The cash will be spent on the company’s green hydrogen project in Pakistan, which will have a 400MW capacity.
Autonomous vehicle developer Aurrigo International (AURR) has signed a deal with International Airlines Group to deploy its vehicles at a major UK airport. A small number of vehicles should be deployed in early 2025.
The latest budget from the Trinidad and Tobago government should ensure than Trinity Exploration and Production (TRIN) will not pay any supplemental petroleum tax in 2024. The threshold price for offshore assets has been raised by 50% to $75/barrel, while the sustainability incentive has been raised from 20% to 25% to encourage investment. There will be a review of the capital expenditure write-off regime.
Secure payments technology developer PCI-Pal (PCIP) is seeking maximum recovery of costs from the company that filed the UK patent dispute that was resolved in PCI-Pal’s favour last week. In the first quarter of the new financial year, 57 new contracts have been signed. However, Cavendish has reduced its expectations for growth in 2023-24 revenues from 34% to 28% following the latest guidance from the company. PCI-Pal is still expected to move into profit this year, but it is a more modest £100,000.
MAIN MARKET
S and U (SUS) reported a small improvement in pre-tax profit from £20.9m to £21.4m. The profit from the Advantage Finance car finance business with the main improvement coming from Aspen Bridging, which provides property finance. The interim dividend is maintained at 35p/share.
XP Power (LON: XPP) says weaker demand has hit customer orders for power products have hit third quarter revenues. Dividends are being temporarily halted and the previously announced second quarter dividend will not be paid. Analysts had been expecting a flat 2023 pre-tax profit of around £38m, but expectations have been cut to £32m. Net debt had been expected to fall this year, but it had risen to £163m by the end of September and it will be even higher at the end of the year.
Rival bids for Pendragon (LON: PDG) have pushed Lithia Motors to increase its offer for the motor dealer business from £250m to £367m. That is equivalent to 24.5p/share and in this deal shareholders will retain majority ownership of the Pinewood dealer management software. The total value of the deal and retained interest is estimated at 35.4p/share. Hedin Mobility is no longer considering a bid.
Packaging manufacturer and distributor Macfarlane Group (MACF) has acquired B&D 2010 Group for up to £3.85m in cash, depending on performance. The bid target produces protective packaging, and the customer base is in defence, space and aerospace.
Andrew Hore