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Quoted Micro 4 December 2023
AQUIS STOCK EXCHANGE
Valereum (VLRM) shares resumed trading on 27 November. The Gibraltar Stock Exchange acquisition is not going ahead. The convertible loan note funding facility has been terminated. Warrants will be cancelled, and the company will seek to ensure that the shareholder register is accurate. Accounting records will be audited. Karl Moss has been appointed finance director.
Guanajuato Silver (GSVR) is withdrawing from the Aquis Stock Exchange at the end of 2023. It does not believe it can justify the cost of this quotation, which was gained on 25 October 2022, and the TSX Venture Exchange listing. The share price fell 13.5% to 16p. A deal has been signed to terminate the obligation to make contingency payments of $2m to Great Panther in return for offsetting a working capital adjustment owed to the company.
MBH Corporation (M8H) has decided to drop its Aquis quotation on 4 January when it will have been on the market for less than 10 months and concentrate on its Frankfurt quotation. The majority of days there has been no trading on Aquis.
Semper Fortis Esports (SEMP) plans to acquire GL Membership, which trades as Good Life+ and offers prize draws. There are more than 21,000 subscribing members, plus 500,000 email subscribers. A ten-for-one share consolidation will be undertaken and then 500 million shares issued for the acquisition at a price of 2p each. Additional assets are being bought from Chadd Media. A subscription will raise £1.4m at 2p/share. Investors include the family office of Sportingbet founder Mark Blandford.
Marula Mining (MARU) has commenced phase one exploration at the Nyorinyori and NyoriGreen graphite projects in Tanzania. The focus is the high-grade and jumbo flake graphite mineralisation, which is thought into extend in the NyoriGreen licence. The initial findings should be reported in January. Ore commissioning at the new ore sorter at the Blesberg lithium and tantalum project in South Africa should be completed at the end of January. The expanded processing plant should be commissioned in the first quarter of 2024.
Coffee shop owner Cooks Coffee Company (COOK) reported flat continuing revenues of NZ$2.04m and it has gone from a pre-tax profit of NZ$125,000 to NZ$319,000. There was a NZ$5.27m loss on discontinued operations. In October, there were record sales per store. A regional developer has been appointed to increase the number of stores in southwest England. By March, Cooks Coffee expects to have up to 80 Esquires outlets in the UK and Ireland by March. Oberon Capital has been appointed corporate adviser.
Helium Ventures (HEV) plans to change its investment strategy to focus on technology businesses. The name will be changed to Eastwood Capital.
VSA Capital (VSA) says that the owners of a 19.8% stake in Lush Cosmetics and Lush Cosmetic Warriors who agreed to sell the stake to Aquis-quoted Silverwood Brands are asking the broker to help unwind the transaction. Lush blocked the transfer of the shares. The original owners of the stake are threatening legal action if VSA Capital does not comply with the request and return the commission it earned on the transaction. VSA Capital says the claim has no merit.
Quantum Exponential Group (QBIT) investee company Oxford Quantum Circuits is raising $100m and launching OQC Toshiko, the first enterprise ready quantum computing platform. A Japanese venture capital fund. Quantum Exponential currently holds a 0.34% stake, and it will not participate in the fundraising.
Coinsilium Group Ltd (COIN) has signed heads of agreement with Indorse for a strategic share acquisition transaction for an additional 14.76% stake, taking the total stake in Indorse to 24.9%. Coinsilium will issue 65 million new shares for the additional stake.
Vulcan Industries (VULC) has finally published its accounts for the year to March 2023. The loss was £1.02m, although there was also an extraordinary profit of £1.59m on discontinued activities. The loss-making businesses have been sold. The company is moving into renewables.
Pharma C Investments (PCIL) is asking shareholders to agree to a new investing policy covering technology, fintech and AI.
IamFire (FIRE) is changing its name to WeCap and the discounted capital bonds held by Hawk Investment are being extended to 24 November 2024.
Voyager Life (VOY) says some of its CBD-based pet care products are being stocked by Pets at Home.
Aquis Exchange (AQX) says that the Aquis Stock Exchange has become the first recognised investment exchange to run on a cloud-based engine, which determines trades.
DXS International (DXSP) has secured grant funding of £409,000 jointly with Health Innovation East for research and development for AI prescribing system ExpertCare.
KR1 (KR1) had an NAV of 56.14p/share at the end of the November 2023. The digital assets generated income of £395,437.
TruSpine Technologies (TSP) says its working capital position remains weak.
Clean Invest Africa (CIA) has raised £210,000 from a placing at 0.35p/share.
Oscillate (MUSH) says all directors will receive their salaries in shares from the beginning of 2024. They will be issued at the mid-price on the day before the payment. Executive director Steven Xerri bought 6.29 million shares at 0.42p each, taking his stake to 7.8%.
AIM
Safety and regulatory compliance services provider Marlowe (MRL) achieved organic growth of 6% in the first half, but this did not show through in underlying earnings, which fell 15% to 18.9p/share. A strategic review is underway and non-core businesses could be sold. Full year earnings have been downgraded by 7% to 44.3p/share.
Wynnstay Group (WYN) says second half trading conditions are tough. Farm gate prices are weaker and wet weather has also hampered progress. That hit arable and feed business, while the merchanting division also suffered lower volumes. Shore has reduced its full year pre-tax profit forecast from £10.7m to £9.4m.
Siemens has sold its entire 11.2% stake in Sondrel (SND) for £589,000. The placing price was 6p. The semiconductors designer raised £17.5m at 55p/share when it joined AIM in October 2022. Project delays have hit revenues and knocked the share price. Siemens has been a long-term partner and was granted the status of preferred supplier of electronic design automation software for a 36-month period at the time of the flotation.
Film and video services provider Zoo Digital (ZOO) had already warned that interims would be poor with the EBITDA loss of $7.1m, but the ending of the actors’ strike in the US means that the outlook is more positive. Film and TV programme production can get going again providing a flow of work. EBITDA breakeven should be achieved in the fourth quarter and new clients have been won. A pre-tax profit of $1.4m is forecast for 2024-25 as work returns to normal levels and new business comes on stream.
Forward Partners (FWD) has agreed an all-share bid from fellow technology investment company Molten Ventures (GROW), valuing it at £42.1m. Molten Ventures is offering one share for every nine Forward Partners shares, which is equivalent to 31p/share when the bid was announced. At the end of September 2023, Molten Ventures had a NAV of 735p/share, while at the end of June 2023 Forward Partners had a NAV of 67p/share.
Mind Gym (MIND) says clients are delaying hires and related spending. The interim revenues fell from £26.8m to £20.9m and the human resources training and education company fell into loss. Annualised costs have been cut by £8m, with £3m showing through in the second half. A full year pre-tax loss of £2.5m is forecast and Mind Gym may have a small net debt position at the year end in March 2024. The company should return to profit next year as revenues recover and the cost savings kick-in.
Interims from Supreme (SUP) reported record interim revenues of £105.1m and the growth came from all divisions. Branded distribution and vaping were the strongest divisions. Interim underlying pre-tax profit doubled to £12.6m. Investment in stocks meant that net cash became net debt of £4.8m. Full year pre-tax profit of £28.4m is forecast by Zeus.
The second and third diamond drill holes at the Pitfield project owned by Empire Metals (EEE) provided more positive news with the highest grades of titanium so far. The results suggest that the resource is much greater than previously thought. The focus becomes identifying high grades at shallower depth. The additional drilling will lead to mineral resource studies.
Healthcare services provider Totally (TLY) is restructuring its business after a tough first half. Revenues were one-fifth lower at £55.8m due to lower urgent care business levels. Annualised cost savings of £3m have been made and there could be more to come. Share buying by directors has not stopped the share price decline. New chair Simon Stilwell bought one million shares at 6.1p each, while non-exec Michael Rogers acquired 40,000 shares at 5.333p each.
Tintra (TNT) intends to cancel its AIM quotation. A general meeting will be held on 4 January to gain shareholder approval. Management bemoans that the share price is too low and believes that direct costs can be reduced by £505,000 – which is ridiculously high for a company of this size – by leaving AIM. It is strange that the management has let them get out of control. That is before any indirect costs. A Middle East investor may become a partner and one of the conditions of the deal is the AIM cancellation. There is talk of a potential Middle East listing. JP Jenkins will provide a matched bargain facility, although the minimum bid price is apparently going to be set at 150p/share for the first nine months.
Antibody discovery and supply company Fusion Antibodies (FAB) is collaborating with the US-based National Cancer Institute in the use of its OptiMAL technology for the discovery of antibodies for specific cancer targets. Fusion Antibodies will not have to commit significant resources to the collaboration.
RUA Life Sciences (RUA) took advantage of last week’s share price surge to raise £4m at 11p/share. There is also a retail offer that closes on 7 December. That could raise up to £750,000.
Vela Technologies (VELA) has exercised the put option to sell the interest in AZD1656, which relates to a Covid application, to Conduit Pharmaceuticals for £3.75m in shares. In September, Conduit Pharmaceuticals completed its IPO on Nasdaq.
MAIN MARKET
Ondo InsureTech (ONDO) has raised £1.08m at 20.5p/share. This will finance working capital for recent contract wins by the claims prevention technology company.
Kelso Group Holdings (KLSO) has taken a 3% stake in AIM-quoted Angling Direct (ANG) at an average price of 35.1p/share. THG (THG) boss Matthew Moulding has bought a 3.2% stake in Kelso, which owns 0.6% of THG.
Cardiff Property (CDFF) improved its net assets to £28.44/share. That includes cash and deposits of £10.8m, which is more than one-third of the total.
Creightons (CRL) says that managing director Bernard Johnson’s employment has been terminated and he has left the board.
Andrew Hore
Quoted Micro 30 October 2023
AQUIS STOCK EXCHANGE
Natural language processing company Cykel AI (CYK) joined the Aquis Stock Exchange on Wednesday. It raised £1m at 3p/share and the shares ended the week at 10.25p. There was initially significant buying of the shares, but trading levels dwindled over the week so there was only one sale of 100,000 shares at 10p each on Friday.
Healthcare provider One Health Group (OHGR) generated 12% higher revenues of more than £11m in the first half. There was £3.6m in the bank at the end of September 2023. There is additional surgical capacity, and two new contracts were awarded in the first half. A new surgical hub could open in 2025. The second half is normally stronger.
Valereum (VLRM) says that US funding it secured in August is no longer available. The talks with the Gibraltar Financial Services Commission concerning the purchase of the Gibraltar Stock Exchange are dragging on. Richard Poulden, Jack Sun, Patrick Young and Alan Gravett have resigned from the board. James Formolli, who has links with Gibraltar, has been appointed chairman. Patrick Lyle Young has rejoined the board as chief executive. These changes may make it easier to gain regulatory clearance for the acquisition.
Gunsynd (GUN) investee company Omega Oil and Gas estimates maiden gross 2C contingent resources of 1.73 trillion cubic feet of gas in its area in Queensland’s Taroom Trough. The next phase of exploration includes a horizontal well. The $21m raised in August will finance this next stage of exploration.
Vulcan Industries (VULC) has sold 49.9% of Lithium battery storage project developer Forepower Lincoln (250) Ltd for £1.5m, which is payable on the sale of the project or on the fifth anniversary of the agreement. The buyer will loan £500,000 and this will be offset against the consideration when it is due. This will be drawn down as the project progresses.
Ananda Developments (ANA) made an interim loss of £990,000. There was cash of nearly £12,000 at the end of July 2023. Since the end of the period, operations at the cannabis cultivation facility were paused to reduce cash burn.
Cadence Minerals (KDNC) reported a reduction in loss from £5.05m to £1.95m. Net cash was £580,000 at the end of June 2023, while NAV was £19.5m.
Cooks Coffee (COOK) has appointed RSM as administrator to its Triple Two coffee shop franchise business. There are currently eleven stores, which are trading poorly. The Esquires chain is trading well and will not be affected.
SulNOx Group (SNOX) says that fuel savings of more than 5% have been verified for seagoing vessels with a two-stroke engine when fuel conditioner SulNOxEco. This will help to increase interest from shipping companies.
Arbuthnot Banking Group (ARBB) non-exec Jayne Almond has acquired 3,000 shares at 895p each and her husband bought 5,617 shares at 890p each.
AIM
After the market closed on Friday evening, SafeStyle (SFE) said that it intends to appoint administrators to three subsidiaries. Potential buyers of the replacement windows operations have withdrawn their interest and management already revealed it would not be able to raise additional finance. This means there is unlikely to be anything left for shareholders.
Fire Angel Safety Technology (FA.) has agreed a 7.4p/share bid from fire safety products manufacturer Siterwell Electronics, which already owns 17.5%. The share price has not been at that level for six months. The offer values FireAngel Safety Technology at £27.7m.
Mining investment company Starvest (SVE) plans to cancel the AIM quotation and commence a voluntary liquidation. This would involve the distribution of stakes in Greatland Gold (GGP) and Ariana Resources (AAU) to shareholders, while the other stakes will be sold. The share price improved by 77.8% to 8p, valuing Starvest at £4.7m. This is still a discount to the March 2023 NAV of £6.75m, although for one the Ariana Resources share price has fallen since then. Shareholder approval will be sought on 21 November and the AIM cancelation could happen on 29 November.
Northern Bear (NTBR) intends to launch a tender offer to buy up to five million shares (26.7% of share capital) at 62p each. The building services provider will ask for authorisation at a general meeting on 15 November and the tender will be funded by the company’s cash and an additional £1m of debt. This will be earnings enhancing. Some shareholders say they will not tender shares, which means that other shareholders can tender at least 35.6% of their holding. Shares have to be tendered by 22 November. Jeff Baryshnik will retire as chairman after the general meeting. Trading is ahead of the previous year and a trading update will be published in the next few days.
Angling Direct (ANG) improved UK sales and European online sales recovered. The fishing tackle retailer has plans to open its first store in Europe. Interim revenues rose 11% to £43.3m, while pre-tax profit recovered from £1.1m to £1.7m. Like-for-like store sales were 4.9% ahead. Net cash reached £17.6m at the end of July 2023, helped by a reduction in working capital. August and September sales were 14% higher than the same time last year, although the comparative was a weak period. Market share is still growing.
Argentex (AGFX) has appointed Jim Ormonde as interim chief executive. He replaces previous chief executive Harry Adams, who is the second largest shareholder with 12.3%. A strategic review has identified areas of the payments sector to focus on. Jim Ormonde was boss of Cardsave, which was bought by WorldPay, and he has been a consultant to Argentex. Current trading is in line with expectations even though activity levels have been lower.
Security products supplier Thruvision (THRU) has raised £3.2m at 23.5p/share. The money has been invested by Pentland Capital, which has taken a 10% stake, and existing shareholders. The cash will be invested in sales and marketing. Earlier this month, Thruvision revealed that it had not received the expected order from US Customs and Border Protection due to budgetary problems. Forecast revenues for 2023-24 were slashed by two-fifths to £8.1m – £3.5m has been generated in the first half. A full year loss of £3.2m is expected.
Bradda Head Lithium (BHL) interims show a $6.24m cash outflow leaving $1.5m in the bank at the end of August 2023. Since the year end, an updated mineral resource showing contained metal of more than one million tonnes triggered a Lithium Royalty Company payment of $2.5m to Bradda Head Lithium, which was received in October.
Fourth quarter trading at The Mission Group (TMG) has got tougher with clients spending less. This follows a relatively upbeat trading statement at the time of the interims. The cost base was raised in anticipation of additional demand and cost cutting will not be done until next year. Canaccord Genuity slashed its pre-tax profit forecast from £7.9m to £3.1m and net debt is set to rise to £24m, which contravenes debt limits. The interim dividend is cancelled. Interest will be covered just over two times.
Sustainable fuels technology developer Velocys (VLS) has launched its new technology facility in Ohio. Velocys contributed $2m of the $10m capital investment with the rest invested by a subsidiary of The Pagura Company. The equipment will be fully up and running by mid-2024. There should be enough capacity for projected orders stretching out to 2028.
Piling contractor Van Elle (VANL) has Rock and Alluvium for an initial £1.8m and agreed a new five-year trading deal with Galliford Try, which could add more than £10m/year to revenues. This increases the group’s presence in the residential market in Greater London.
MAIN MARKET
BATM Advanced Communications (BVC) investee company ADOR Diagnostics has secured funding of $7.5m and BATM is providing $3.5m of this cash. This is payable in two tranches, one immediately and the other after the achievement of milestones over the next six months.
First Tin (1SN) has published a definitive feasibility study (DFS) update for the Taronga project in Australia. The DFS should be completed in the first quarter of next year. It is already clear that the resource is significantly larger than previously estimated due to additional mineralisation and lower cut-off grade and that means processing capacity will need to be larger. The additional capital investment should improve recovery rates.
Cash shell Mining, Minerals and Metals (MMM) has entered into heads of terms with Georgina Energy, which is exploring for helium, hydrogen and hydrocarbon the Amadeus and Officer Basins in Australia. The transaction to acquire Narnia Mauritius Gas will not go ahead until the renewal of the company’s licences.
Intuitive Investments Group (IIG), which recently moved from AIM to the Specialist Fund Segment, is issuing 1.91 billion shares to acquire Hui10, a Chinese company that owns 33% of Beijing Huishi Dehua IT, which has a digital payment platform for the Chinese lottery and 60% of Lucky World, which has developed a platform that enables China’s lottery shops to access a wider range of consumer goods. The businesses are losing money. Hui10 will not be consolidated in the company’s figures. Investments Group currently has 86.9 million shares currently in issue and, at 11p/share, it is valued at £9.6m. A ten-for-one share consolidation is planned. There is already permission to issue more shares. Chief executive Rob Naylor bought 100,000 shares at 9.5p each.
BSF Enterprise (BSFA) has formed a separate subsidiary called Kerato to develop lab-grown corneas. This company can focus on advancing clinical trials.
Andrew Hore
Quoted Micro 22 August 2022
AQUIS STOCK EXCHANGE
Invinity Energy Systems (IES) has signed a memorandum of understanding with US Vanadium to create a US-based 50/50 joint venture to build and sell vanadium flow batteries. Arkansas-based US Vanadium produces high-purity vanadium pentoxide and electrolyte for vanadium flow batteries. Invinity Energy Systems has also delivered and installed a 1.8MWh VS3 flow battery system at the European Marine Energy Centre hydrogen R&D facility in the Orkney Islands.
Valereum (VLRM) is swapping its 20 bitcoin miners in the US for a 24% stake in new company Vinanz, which is conditional on the company listing on a recognised stock exchange. The final stake will depend on the money raised at the time of the listing. This will enable Valereum to concentrate on the Gibraltar Stock Exchange when the deal gets regulatory approval.
CBD and hemp products supplier Voyager Life (VOY) generated revenues of £178,000 in the period to March 2022. There is £1.43m in the bank.
DXS International (DXSP) has entered a licence and services agreement with Deontics, which is a clinical AI company. The technology will be integrated into the DXS clinical software.
Shares in TECC Capital (TEC) remain suspended ahead of a readmission document for the proposed EDX Medical acquisition. There was £1.03m in the bank at the end of March 2022.
Goodbody Healthcare (GDBY) increased revenues by £2.55m to £7.4m in the first half of 2022. This was driven by revenues from the testing clinics. The loss grew from £1.27m to £1.41m. There is cash in the bank of £3.74m.
Psych Capital (PSY) investee company Awakn Life Sciences, where Psych Capital owns 426,000 shares, has entered the US addiction treatment and relapse prevention market through a licensing partnership with Revitalist Lifestyle and Wellness Ltd, a ketamine wellness clinic chain. Awakn has a treatment that was validated in a phase II a/b trial, which delivered 86% abstinence for six months after treatment versus 2% before the trial. Revitalist will pay an annual fee and a revenue share per treatment.
Ingraine (KING) says AZD1656, which is being developed as a treatment for people with diabetes suffering from Covid-19, has shown evidence that it activates T-regs that might suppress the inflammation that is the prime cause of tissue damage in autoimmune disease. LANCET eClinicalMedicine is publishing the results of the phase II clinical trial. Ingraine owns 2% of Excalibur Medicines Ltd, which has exclusive rights to AZD1656.
Wishbone Gold (WSBN) has a second drill rig is on site at the Red Setter gold copper project in the Patersons Range area in Western Australia. The drilling has shown the intersection of multiple zones of quartz veining, carbonate and chalcopyrite and pyrrhotite.
Premium Nickel Resources Ltd, where Evrima (EVA) owns 1.11 million shares, has been readmitted to TSX-V after the reverse takeover of North American Nickel Inc. The first assay results from the Selebi nickel copper cobalt sulphide mine in Botswana have been published. There was a positive update for the Molopo Farms complex project in Botswana, where Evrima has an 8.93% project-level interest.
Hydrogen Utopia International (HUI) is starting a US roadshow from 22 August, following the start of trading of the shares on OTCQB Venture Market. Recent US legislation could increase investor interest in the clean energy market.
Altona Rare Earths (ANR) is raising £1.1m at 8p a share ahead of the planned move to the Main Market at the end of September.
Chris Akers has increased his stake in Oscillate (MUSH) from 13.1% to 14.25%. The share price fell 11%.
AIM
Fashion brand Joules (LON: JOUL) was the worst performer of the week, falling by more than one-third. Trading has deteriorated in recent weeks, although wholesale sales are higher. This means that it will not make a profit this year, even if second half trading improves. Peel Hunt has downgraded its forecast for 20222-23 from a profit of £4m to a loss of £4.2m. Jonathan Brown becomes Joules chief executive at the end of September. Talks with NEXT about a cash injection continue.
Agricultural products supplier and retailer Wynnstay Group (WYN) raised £10.5m in a placing at 560p a share, which was above the minimum price indicated of 550p a share. The plan is to redevelop the Calne feeds site that came with an acquisition earlier this year. This can be developed into a feed mill with a 185,000 metric tonne capacity that produces poultry and ruminant feed. There are also opportunities for further acquisitions.
Online fashion retailer boohoo (BOO) has made a strategic investment in cosmetics supplier Revolution Beauty (REVB), which recently announced a profit warning. boohoo has bought a 7.13% shareholding. Revolution Beauty products are sold through several of boohoo’s websites.
Frasers Group (FRAS) has bid 2p a share for MySale Group (MYSL), which values the retailer at £13.6m. The bid is not recommended.
Newcrest Mining is not taking up the option to acquire a further 5% stake in the Havieron asset, so Greatland Gold (GGP) will retain a 30% stake. The price for the 5% stake had been set at $60m and much of that cash was earmarked to pay off loans from Newcrest. Greatland Gold management says that it is happy to retain the larger stake. The latest mineral resource for the Havieron deposit announced by Newcrest is 5.5 million ounces of gold and 223,000 tonnes of copper.
AI product revenues at Intelligent Ultrasound (IUG) reached £300,000 in the first half. There were royalties from the GE deal and direct product sales. Full year revenues are expected to be £600,000. In the six months to June 2022, group revenues grew 62% to £5.9m, although that includes £1.4m of one-off ultrasound simulation orders from an NHS training initiative. There was a 13% decline in US revenues to £1.1m, but they should recover in the second half. The group remains loss-making and there is cash of £3.5m, which is expected to decline to £1.8m by the end of 2022.
MTI Wireless Edge (MWE) has been winning contracts that should benefit the second half. In the six months to June 2022, revenues improved from $21.3m to $22.7m, while pre-tax profit barely changed from $2.05m to $2.04m, due to a higher interest charge and amortisation related to the recent acquisition of communication and monitoring systems developer PSK WIND Technologies. Russia accounted for 6% of revenues and 5% of profit in 2021.
Full year revenues of digital services provider Made Tech Group (MTEC) were 120% higher at £29.3m and it moved into profit. There was cash of £12.3m at the end of May 2022. The contracted order book is worth £38.2m.
Flexible electrical connectors manufacturer Strip Tinning (STG) shocked the market when it revealed that a Croatian customer wants to terminate a contract from 1 October. This contract for cell management systems for electric vehicles was supposed to be worth €2m a year once peak volumes were hit in a couple of years.
Fishing equipment retailer Angling Direct (ANG) increased interim revenues by 1% to £38.9m, but they weakened in the second quarter and management says that full year revenues will be lower than previous guidance of £82m. That will lead to a sharp reduction in expected EBITDA to between £3m and £3.4m.
In-game advertising services provider Bidstack Group (BIDS) has extended its contract with Sports Interactive, which created the Football Manager game. This is a multi-year renewal of a contract that initially began in 2017.
Specialist recruitment firm Gattaca (GATC) says net fee income grew by 4% to £44m in the year to July 2022. There was an increase in permanent recruitment income offsetting a decline in contract income. There is good demand but a shortage of candidates for the roles.
Frontier IP Group (FIPP) has sold 391,200 ADSs in Exscientia at an average price of $11.97 each. This raised £3.88m. That is £1.85m below book value. Frontier IP still holds 782,400 shares in Exscientia. So far, sales have raised £9.96m compared with a cash cost of less than £2,000.
Property services provider Kinovo (KINO) nearly doubled its operating profit in the year to March 2022. Net debt was reduced to £340,000. First quarter revenues have risen by 28% to £14m and Kinovo has moved into a net cash position. The latest estimate for the liability for DCB, which has gone into administration, is that it will cost £4m plus expenses to complete work, which is lower than previous estimates.
Sustainable energy projects developer SIMEC Atlantis Energy (SAE) finance boss Andrew Dagley was voted off the board at the AGM on Thursday. There were 53.5% of the votes against his re-election. There were also 45% of votes against the audited financial statements for 2021 and 27% against the directors’ remuneration report.
MAIN MARKET
Private equity firm Thoma Bravo LP has made a preliminary approach to artificial intelligence (AI)-based cybersecurity services provider Darktrace (DARK) concerning a possible cash bid. Discussions are at an early stage.
Plant hire company Vp (VP.) has ended its formal sales process after the board unanimously decided to conclude the process.
Flavouring ingredients supplier Treatt (TET) says that profit will be below expectations in the year to September 2022. Restrictions in China have hampered progress, while costs have increased, and sales of iced and leaf tea in the US have been lower than expected. Currency movements have made things worse. The order book is ahead of this time last year.
Mears (MER) has acquired IRT Surveys, which provides data-led services focused on addressing fuel poverty and energy efficiency, for up to £4.1m. The initial payment is £3m, with the rest payable depending on performance over a two-year period. There should be a £200,000 profit contribution this year.
Andrew Hore
Quoted Micro 23 May 2022
AQUIS STOCK EXCHANGE
Nigeria-focused oil company Lekoil Ltd (LEK) made the switch from AIM to Aquis on 18 May. Trading in the shares will remain suspended until audited accounts are published. Lekoil is in dispute with Lekoil Nigeria, where it has a major interest, and former chief executive Mr Olaekan Akinyanmi, who is being funded by Lekoil Nigeria. The board wanted shareholders to have a trading facility, while the litigation is being pursued. The main source of assets will be the recovery of intercompany debts and there is likely to be little value in the oil and gas operations.
Valereum (VLRM) is still going through the regulatory process to acquire 90% of the Gibraltar Stock Exchange. There is a government review of the Gibraltar financial services community.
Quantum Exponential (QBIT) is investing £450,000 in Brighton-based Universal Quantum Ltd, which is trying to build the first million quantum bit quantum computers. The cash will help to develop the processing unit. The investment is via an advanced subscription agreement, and this will be converted into shares after one year or if there is a fundraising of at least £10m.
Hemp and CBD wellness products company Yooma Wellness Inc (YOOM) generated revenues of $10.2m in 2021, while the loss was $35.7m, including $22.5m of asset write-downs and £1m of listing costs. The company’s products are being rolled out in additional high street and online stores. The US operations are being rationalised and the focus moved to other markets.
SuperSeed Capital Ltd (WWW) made two investments in the first quarter of 2022. Investors in the company’s fund during January have already made a 43% gain. There was seed capital provided to the two investments. Ai Build is a software developer for 3D printing additive manufacturing, which will enable the 3D printing of larger objects. ThingTrax is developing technology that will help manufacturers to monitor and automate production.
RentGuarantor Holdings (RGG) has obtained a non-exclusive to use the Propertymark trademark in the UK. Propertymark has 18,000 of property letting and sales businesses. Propertymark will promote RentGuarantor rent guarantees for tenants.
Major shareholder Neo London Capital is providing a lending facility to Black Sea Property (BSP) to finance the exploration of property development opportunities.
Wishbone Gold (WSBN) has completed the survey of additional targets at the Red Setter project in Australia. The first phase of drilling at Red Setter is 3,000 meters.
Ace Liberty and Stone (ALSP) has sold a flat in Chelsea for £2.185m, which is above the book value of £2.1m.
Oscillate (MUSH) has a stake in Psych Capital, which is joining Aquis on 25 May.
The incoming finance director Robert Smith has bought 500,000 Chapel Down (CDGP) at 42.5p each.
AIM
Fishing tackle retailer Angling Direct (ANG) managed to beat previously upgraded forecasts for the year to January 2022. Revenues increased from £67.6m to £72.5m even though online sales fell. UK online sales increased but European online sales because of difficulties with prompt delivery. The new Netherlands distribution centre will help. There was £16.6m in cash at the end of January 2022. Pre-tax profit jumped from £2.7m to £4m, but this is not expected to be maintained. Singer forecasts a pre-tax profit of £2.8m on revenues of £82m in 2022-23.
Compliance and energy saving services provider Sureserve (SUR) continues to grow and it is set to supplement this growth with acquisitions in the energy efficiency and renewables sectors. Interim revenues from continuing operations increased by 24% to £126.2m, while pre-tax profit was one-third higher at £4.3m. The non-core fire and lift businesses are profitable, and they made a slightly higher pre-tax profit of £1.24m on revenues of £17.3m, which is not included under continuing operations. Those non-core businesses have net assets of £13.1m. Assuming Sureserve receives a similar amount when they are sold this would boost the cash position. There was £8.86m in the bank at the end of March 2022.
Designer and supplier of automotive interior components CT Automotive (CTA) reported its maiden full year results as an AIM company. There was a strong recovery in the first half, but component shortages have reduced the demand from car manufacturers in the second half. Even so, full year revenues recovered from $109.9m to $132.9m, although the company remained loss making. There is a strong order book, but revenues are still likely to be hit by lack of demand due to component shortages. These problems could last for most of this year with automotive volumes set to recover in 2023. A new factory in Mexico should be open in July.
Vela Technologies (VELA) invested £750,000 in convertible loan notes in EnSilica, which is about to join AIM. This investment should convert into 1.75 million shares, which is a 2.3% stake in the integrated circuits designer and supplier.
Chariot Ltd (CHAR) has raised £20.4m ($25.5m) at 18p a share and more could come via an open offer. This will help Chariot to make progress with the Anchois gas development in Morocco. Some of the cash will go on renewables projects.
Begbies Traynor (BEG) says 2021-22 results will be comfortably ahead of expectations and insolvencies are increasing.
Digital coupons and loyalty technology provider Eagle Eye (EYE) says that the roll out of services to a US retailer has helped 2021-22 EBITDA to potentially be 10% higher than expected.
MAIN MARKET
Standard list shell BSF Enterprise (BSFA) completed the reverse takeover of Newcastle-upon-Tyne-based tissue engineering 3D Bio-Tissues Ltd for £2.5m in shares. There was £1.75m raised in a placing at 7.37p a share, which is the same price at which the 33.9m consideration shares were issued. That valued the company at £6.32m on readmission. The share price ended the week at 9p. There are three main types of technology that are being developed. City-mix is a serum-free media for culturing muscle and fat cells in an animal-free process that can be used to grow meat and leather in a laboratory. There is less variation between batches than for some rivals and it could cost less. Another technology is based on Lipopeptide Etsyl, which helps to increase collagen production in human skin cells, and it can be used dermatological products. This will be sold as an ingredient to skincare product manufacturers. The third technology is tissue templating. This includes the original substitute cornea technology, as well as other uses.
In the year to February 2021, Braemar Shipping Services (BMS) expects an underlying operating profit of £9.8m, up from £7.7m. The annual dividend will be two fifths higher at 7p a share. The operating profit expectations for 2022-23 have been upgraded from £10m to £12m.
Macfarlane Group (MACF) is buying German protective packaging distributor PackMann. This is a profitable business, and it will help Macfarlane to expand in northern Europe.
Nanoco (NANO) has received an official decision that its 47 disputed patent claims are valid. This is an important step in the legal proceedings against Samsung, which used its quantum dot technology without agreement. There is still some way to go, but a settlement could generate more than £100m for Nanoco, even after the litigation funder gets its payment.
Net Zero Infrastructure (NZI) is in talks to acquire specialist equipment hire company Taylor Construction Plant and Solar Highways. Trading in the shares has been suspended.
Andrew Hore
Quoted Micro 18 October 2021
AQUIS STOCK EXCHANGE
Good Energy (GOOD) has followed the lapsed Ecotricity bid with a nine-month trading statement saying that the renewable energy supplier is on course to meet full year expectations. Good Energy is more than 90% hedged for the next 12 months, so there is limited exposure to the current price volatility. Price rises have been implemented. The 0.75p a share interim dividend is payable on 29 November and the ex-dividend date is 21 October. Finance director Rupert Sanderson has sold 14,800 shares at 335p each, while chief executive Nigel Pocklington bought 7,500 shares at 351.666p each.
Walls and Future REIT (WAFR) is engaging with new investors so that there are buyers for the 10% of the share capital where investors are not long-term holders. This is holding back the share price and causing the high discount to NAV, according to management. The company has completed the design of its autism friendly housing.
CBD products supplier Voyager Life (VOY) generated revenues of £65,000 from incorporation to the end of September 2021. Monthly overheads are less than £50,000. There is £1.8m in the bank. New stores are opening in Edinburgh and Dundee.
Yooma Wellness Inc (YOOM) has acquired CBD products manufacturer N8 Essentials for 1.17 million shares issued at 67.3 cents a share. N8 has a 14,000 square foot manufacturing facility in Kansas. This will enable more group production to be brought in house.
Sativa Wellness (SWEL) has launched an online telemedicine service. This enables patients to follow up tests with a virtual medical consultation.
KR1 (KR1) is participating in the Kintsugi crowdloan and Kusama (KSM) parachain auction. KR1 contributed 5,000 KSM to the crowdloan.
Altona Natural Resources (ANR) has started drilling at the Monte Muambe project in Mozambique. This will improve the understanding of the geological model and test four newly identified targets.
The requisition for a general meeting at British Honey (BHC) has been withdrawn. Richard Day has been reappointed chairman and Mark Gamble as an executive director. Alex Maurice has stepped down from the board but continues to be employed by the company.
Hydro Hotel Eastbourne (HYDP) non-exec director CP Freeman has bought 800 shares at 884p each. David Evans has a 7.61% stake in Oberon Investments (OBE).
The SFO has ended its investigation into people associated with Watchstone Group (WTG) when it was known as Quindell.
AIM
Light Science Technologies (LST) is a contract electronics manufacturer and a developer of controlled environment agriculture technology, which joined AIM on 15 October. The agricultural technology being developed helps farmers to maximise crop productivity and monitor the growing environment. The company’s LED lighting range is called nurturGrow Luminaire and the nurturGROW sensor is being developed. There was £5m raised at 10p a share and the price ended the first day at 11.5p. The cash raised in the flotation will be used to expand facilities and increase marketing.
Floorcoverings manufacturer Victoria (VCP) has achieved record interim earnings. The UK has been a strong market, but Australia has been tougher. The full year outcome is likely to be ahead of expectations. Peel Hunt has upgraded its full year pre-tax profit forecast from £58.3m to £65m.
Branded furnishings and wallcoverings supplier Sanderson Design Group (SDG) improved interim pre-tax profit by 22% to £6m on a 48% increase in revenues. North American and UK sales were strong, and the manufacturing business bounced back. Management plans to generate more income from the archive of past patterns and designs. Net cash is £15.4m. Sanderson is on course to achieve an increase in full year pre-tax profit from £7.1m to £10.9m.
Eqtec (EQT) plans to acquire a 5MW project in Drama, Greece, which will generate energy from forestry waste. Financial close should be achieved for the project in the third quarter of 2022. There is also an additional £2.1m of investment in the North Fork project in California, which increases the stake from 10% to 49%. The 2MW biomass to energy project has been delayed due to fires and Covid. A $4.5m convertible loan facility has been provided to the development.
CyanConnode (CYAN) says interim revenues were £4.1m and it is well on the way to £9.4m of revenues for the full year. The narrowband radio frequency networks company continues to lose money, but cash levels should improve.
Motor dealer Vertu Motors (VTU) recorded record first half results despite supply problems for new vehicles. Used car prices have been rising because of the shortage of new vehicles. In the six months to August 2021, revenues increased from £1.2bn to £1.92bn. Underlying pre-tax profit soared from £4.7m to £51.8m, which is more than treble the first half of 2019-20. Net cash is £57.3m. The interim dividend has been re-established at 0.65p a share. The net tangible asset value is 61.5p a share.
High street sales recovered at fishing tackle retailer Angling Direct (ANG) despite being closed in the first ten weeks of the first half and online sales continued to grow. In the six months to July 2021, revenues improved from £32.1m to £38.4m with high street sales increasing by two-fifths. Online sales were 2% ahead. Pre-tax profit jumped from £1.36m to £3.72m, which includes government lockdown support. Full year pre-tax profit is expected to increase from £2.6m to £3.5m.
Driving safety technology developer Seeing Machines (SEE) has signed a framework agreement with Shell Global Solutions for its Guardian driver distraction and fatigue technology. Deployments should start later this year. Shell has 20,000 vehicles, compared with the total number of 31,771 vehicles using Guardian technology. Seeing Machines has also set up an EU sales team with a headquarters in Amsterdam.
Gresham House Strategic (GHS) has decided to change its investment manager from Gresham House Asset Management to Harwood Capital, where its previous investment manager Richard Staveley moved earlier this year, and Gresham House (GHE) has requisitioned a general meeting in order to have the company’s cash distributed to shareholders and the portfolio of investments liquidated over a 24-month period. Gresham House has a 23.3% stake in Gresham House Strategic and claims the backing of 40% of the share capital. The opposition to the move owns 30% of the company. Harwood intends to invest in the company, and it will generate lower fees, which will save the company £270,000.
Iodine company Iofina (IOF) produced 142.7 MT of crystalline iodine in the third quarter of 2021 and that underpins full year forecasts. Iodine prices continue to rise and recently hit $40/kg.
MAIN MARKET
LED lighting and wiring accessories supplier Luceco (LUCE) has acquired DW Windsor, an exterior lighting business, for £16.9m in cash. In the year to September 2021, operating profit was £1.9m.
Highway Capital (HWC) has finally found a suitable reverse takeover target, although there is no firm agreement. There will be a fundraising alongside the purchase of esports adviser and investor Guinevere Capital Esports & Entertainment. No purchase price has been announced
Oxford Cannabinoid Technologies (OCTP) has acquired medical assets from Canopy Growth Corporation, which provides access to cannabinoid derivatives and will help the company to develop additional drug projects. The lead compound OCT461201, which is a potential neuropathic pain treatment, is progressing towards clinical trials in the third quarter of 2022.
Andrew Hore
Andrew Hore – Quoted Micro 19 October 2020
AQUIS STOCK EXCHANGE
Arbuthnot Banking (ARBB) remains profitable and loan balances have increased by 3% to £1.6bn. Deposit balances are 14% higher at £2.23bn. Assets under management are 4% ahead.
Wine maker Chapel Down (CDGP) has produced a better quality harvest than 2018 and yields are better than expected. More wine can be released for sale next year.
A general meeting has been requisitioned at SulNOx Group (SNOX) by three shareholders. They want to remove the entire board and appoint four new directors.
KR1 (KR1) has generated just over $1m from the sale of tokens in the Polkadot project at $5.12 each. That is a small proportion of the stake and KR1 still owns more than 3.5 million tokens.
NQ Minerals (NQMI) continues to increase production at the Hellyer mine. In the third quarter lead concentrate production was 11,865 tonnes and zinc concentrate production was 4,585 tonnes. Production rates are still increasing.
Wishbone Gold (WSBN) reported a reduction in interim revenues from $6.56m to $3.64m. There was a $224,000 outflow from operations.
Altona Energy (ANR) has extended its fundraising until 11 November. The plan is to raise up to £500,000 at 6.5p a share.
Trading has been suspended in the shares of medicinal cannabis company Freyherr International (FRYR) because trading has been difficult, and the auditing of last year’s accounts has not been completed.
VI Mining (VIM) is asking shareholders to approve of the withdrawal from the Aquis Stock Exchange.
Eastinco Mining (EM.P) has published full year and interim figures. The company remains loss-making. There was £173,000 in the bank at the end of June 2020.
TechFinancials (TECH) is stopping the development of its Footies ticketing technology because of the uncertainty surrounding events. It has also ended its investment in Cedex due to lack of cash. All B2B brokerage technology activities will end at the beginning of November. New opportunities are being assessed.
AIM
Synairgen (SNG) is raising up to £87m via a placing and open offer at 175p a share. This will finance a phase III trial for SNG001 for the treatment of Covid-19. That will start before the end of the year. Results are expected in the middle of next year. Synairgen will also invest in scaling up its manufacturing.
More good news from Touchstone Exploration (TXP) which has made another significant gas discovery in Trinidad. The Chinook-1 discovery is the third in a row. This means that Touchstone should be highly cash generative next year enabling it to fund more exploration.
LiDCO (LID) had already outlined its interim figures in a trading statement so the move into profit thanks to high monitor sales to the NHS was not a surprise. There is likely to be a second half loss, but the heart monitoring equipment supplier will still be profitable for the full year. There have been delays in winning hup recurring revenue contracts, but these revenues have reached an annual rate of £3m. There was £3.1m in the bank at the end of July 2020.
BlueRock Diamonds (BRD) increased production in the third quarter from 3,973 carats one year ago to 5,577 carats. Sales were much lower at 3,803 carats because there was one sale during the quarter. The average price realised has fallen from $432/carat to $330/carat. That was expected due to the change in mix of stones with only one high value stone sold during the period. An updated resource estimate is expected in the near future. BlueRock is hosting a shareholder conference call at 7pm on 22 October. Anyone wanting to participate should go to www.facebook.com/valuethemarkets or www.twitter.com/valuethemarkets.
SkinBioTherapeutics (SBTX) is raising money to accelerate the progress of AxisBiotix, which is involved in the development of food supplements for psoriasis treatment. This could be generating revenues in the year to June 2022. A placing at 16p a share raised £4m with up to £500,000 to come from an open offer at the same price. Some cash will be available to fund development of other microbiome-related products. This cash should last until the end of 2022.
Billing and customer relationship management software provider Cerillion (LSE:CER) says that its year-end order book is at a record level and the full year figures will be slightly better than expected.
ThinkSmart (TSL) is returning A$6.5m of cash to shareholders. There will be a 4.575 cents a share capital reduction and a 1.525 cents a share unfranked dividend. ThinkSmart has around £10m in the bank. The current exchange rate is 55p for each A$1. The distribution is worth £3.6m, so around one-third of the available cash.
Seeing Machines (SEE) is increasing its potential market by developing its driver monitoring system into vehicle occupant monitoring system. This is an additional revenue opportunity of A$350m.
Angling Direct (ANG) managed to stay profitable in the first half as online sales helped to offset the closure of retail sites in the period. The fishing products retailer has a strong balance sheet and shop sales bounced back after reopening. A pre-tax profit of £400,000 is forecast for the full year, rising to £1.5m next year.
Netcall (NET) is acquiring robotic process automation technology company Automagica in order to enhance its contact centre products. Automagica has its own technology. Netcall’s full year revenues increased from £22.9m to £25.1m, while pre-tax profit increased from £1.3m to £1.8m. Margins are improving.
MAIN MARKET
Motor dealer Lookers (LOOK) says third quarter trading was better than expected. New and used car volumes increased by 13.6% compared with the same period the previous year. Lookers has outperformed the market. Aftersales revenues were also higher. Net debt was £22.5m at the end of September 2020.
Electronic products supplier DiscoverIE (DSCV) says that first half sales fell by 6%, but orders were ahead of sales in September. A dividend will be announced with the interims in November.
Construction and infrastructure firm nmcn (NMCN) has reviewed major contracts and this will lead to a loss this year. The main problem has been water contracts and some of the charges may relate to other periods. This follows the departure of the chief executive and finance director.
Nanoco (NANO) has a cash outflow to £300,000 a month. There is net cash of £5.2m and that should last until July 2022. The non-cadmium quantum dots technology developer lost £4.9m in the year to July 2020.
Andrew Hore
Andrew Hore – Quoted Micro 20 May 2019
NEX EXCHANGE
Fuel emulsification technology developer SulNOx Group (www.sulnoxgroup.com) plans to join NEX. SulNOx has developed an emulsification and condition process for hydrocarbon fuels. This process makes the fuel more efficient and thereby reduces fuel usage and emissions. Nouryon AB will manufacture and distribute the company’s products under the Berol brand. SulNOx will do the sales and marketing. The directors are applying for approval of eligibility of the company for EIS relief.
Arbuthnot Banking (ARBB) has obtained a NEX Growth Market quotation. The shares continue to be traded on AIM.
AfriAg Global (AFRI) has agreed to subscribe for four million shares in Apollon at 25p each, although part of the investment requires shareholder approval. This is equivalent to a 2.34% stake. However, AfriAg needs to raise this £1m in order to make the investment. It had £101,000 in the bank at the end of 2018 and NAV was £1.9m. The plan is to obtain an option to acquire the rest of the company. Apollon is a medicinal cannabis company and it has an affiliate in Jamaica that has a licence to cultivate, process and sell hemp and medicinal cannabis. Specific strains of medicinal cannabis have been developed.
KR1 (KR1) is generating staking yield revenues on the Cosmos Network, which launched on 14 March. The yields will be a minimum 5.6% yield and it could be much higher. This type of revenues could be generated by other networks where KR1 has an investment.
Sativa Investments (SATI) had £3.74m of cash at the end of 2018. This will be used to develop operations in the UK and Germany. Last year’s revenues were £260,000.
Tectonic Gold (TTAU) has taken operational control of the Vast Mineral Sands diamond mining contract. Cash generated will finance gold exploration.
High Growth Capital (HASH) has consolidated 20 shares into one new share. Dealings commenced on 16 May.
Primorus Investors (PRIM) increased its NAV from £4.95m to £5.16m at the end of 2018. This has been achieved even though pre-IPO investments have had their flotations delayed by poor market conditions. There was £408,000 in cash in the balance sheet.
Proton Partners International Ltd (PPI) has raised £10m at 176p a share by issuing shares to Woodford as part of the agreement in the flotation prospectus. NQ Minerals (NQMI) has issued 1.37 million shares at 6.5p each to satisfy a payment for the three month extension of maturing debt.
Gowin New Energy (GWIN) has extended the loan agreements with four shareholders so that the repayment dates are all around the beginning of November. The loans total £500,000.
AIM
Software provider Sanderson (SND) prospered in the first half. Revenues improved by 18% to £17.2m and operating profit was one-third higher at £2.8m. Recurring revenues grew by 18% and they are 55% of total revenues. Sanderson has already secured most of the revenues it requires to make the full year revenues forecast of £35.3m, which is expected to generate pre-tax profit of £5.4m.
Block Energy (BLOE) has raised £12m at 11p a share. This comes less than one year after Block joined AIM when the oil and gas company was valued at £10.3m at the placing price of 4p. The cash will be invested in the West Rustavi PSA in the Republic of Georgia. Up to four horizontal sidetracks will be drilled in order to scale up existing production, as ell as drilling one new well. There will also be funds for 3D seismic, appraisal of two existing gas discoveries and increase the capacity of production facilities to up to 5,000 barrels per day. This will all be done over the next 12 months.
Investment and new store opening costs have pushed fishing equipment retailer Angling Direct (ANG) into loss. In the year to January 2019, revenues grew from £30.2m to £42m. International sales more than doubled to £4.7m. IT investment is improving efficiency. Angling Direct will continue to lose money this year as the number of stores is set to be increased from 24 to 34. It takes more than a couple of years for a store to start to mature so the benefits of the current investment will take time to show through in profit terms.
Live events agency Aeorema Communications (AEO) says its revenues reached a new high in the second half and full year revenues will be better than expected. New business has been won but it is lower margin than previous contracts so profit will be in line with expectations. There should be a full year dividend. Last year’s dividend was 0.75p a share, which was an increase of 50%.
TruFin (TRU) is launching a tender offer for up to £5m of shares at 92p each. The tender offer closes on 4 June. TruFin recently £44.5m raised from the sale of its stake in Zopa and demerged Distribution Finance Capital (DFCH). There are plans to return a further £5m by the end of 2019.
Churchill China (CHH) is continuing to trade strongly so far this year. The opening of the Rotterdam distribution facility is supporting European growth. Sales of added value products are growing. The integration of the Dudson brand and products is progressing well.
Online retailer MySale (MYSL) has sold the cocosa.co.uk website. This is part of the plan to exit the UK and concentrate on Australia and New Zealand.
Film completion contracts provider FFI Holdings (FFI) says operating profit will be at the lower end of the range of $7.5m to $11.5m previously reported.
Maistro (MAIS) has decided to leave AIM. The company has gone from a hyped-up online business called blur to cash strapped operation that needs to save as much money as possible. Maistro has raised plenty of cash in its time as a quoted company.
Veltyco Group (VLTY) has generated flat revenues from sportsbook and casino marketing business in the year to April 2019. The revenue mix has changed, and lower margin activities have grown in importance. The company is loss-making and more investment will be required.
The recovery at Safestay UK (SFE) appears to be stalling, even though it is growing revenues faster than the market is growing. The problem is that margins are not improving as quickly as expected.
Ten Lifestyle (TENG) increased revenues by 24% to £21.5m but the loss has risen due to greater investment in the business. The lifestyle and travel platform still has £13.2m in the bank. New contracts are being won and existing ones increased in size.
MAIN MARKET
Blencowe Resources (BRES) has wasted little time in securing a takeover target. It plans to acquire a company which is the owner of the Oram graphite project in Uganda for £2m in shares at 6p each.
nmcn (NMCN), which formerly North Midlands Construction, says first quarter revenues increased by 27% to £94.4m and improved margin meant that profitability increased by 170% to £1.75m. The built environment division moved back into profit and the water division doubled its profit. There is £22m in the bank. The secured workload for the year is £342m.
Packaging manufacturer and distributor Macfarlane Group (MACF) says profit is ahead of last year and in line with expectations. Sales have grown by 7% so far this year and organic growth is 3%. The manufacturing operations have grown fastest.
Highway Capital (HWC) is catching up with its figures having published more than one set this week. The interims to August 2018 show a cash outflow from operations of £9,000. Net liabilities were £614,000.
There was a £949,000 cash outflow from operations at Toople (TOOP) in the six months to March 2019. There is net cash of £546,000.
Flavours supplier Creightons (CRL) says second half sales will be similar to those in the first half. There will be a £350,000 benefit from research and development tax credits.
Argo Blockchain (ARB) has adjourned its general meeting following the resignation of Jonathan Bixby. Mike Edwards become chairman. Another director will be appointed in consultation with First Investments, which requisitioned the general meeting. First Investments is backing the existing business by investing up to $1m as a cryptomining-as-a-service customer.
Andrew Hore
Andrew Hore Quoted Micro 29 April 2019
NEX EXCHANGE
Adnams (ADB) says that beer volumes grew year-on-year in the first quarter, helped by low alcohol Ghost Ship and pubs are also doing well. Margins are coming under pressure and gin sales have been hit by increasing competition. A new IT system has gone live.
KR1 (KR1) has cashed inn some of its tokens. It has sold the remaining OmiseGo tokens for $206,000. They were bought for 27.38 cents each and sold for 205.4 cents each. KR1 has sold 50% of its tokens in the Nash Exchange product for nearly $51,000, at a more than doubled price per token, which means that the cost of the remaining 25,000 tokens have been covered.
High Growth Capital (HASH) has appointed Mark De Smedt as chief executive. He is a Belgian who previously worked for recruitment firm Adecco and already owns a 0.6% stake in High Growth Capital. He has been awarded options over 125 million shares at 1.75p each and further options over 150 million shares, which are exercisable at 3p a share, but only if the share price reaches at least 7.5p and stays there for a consecutive period of six months. Girod Equities has taken a 3.81% stake in the company, which is proposing a name change to MESH Holdings.
SG Recruitment (SGRL) has been appointed to recruit international nurses for more than 20 hospitals in England. This is under the Health Education England Global Learners Programme, which offers three year packages. Also, the Royal Berkshire NHS Foundation Trust has appointed SG to recruit 140 nurses. A contract has been gained with Thumbay Hospital in UAE to recruit at least 150 healthcare professionals each year.
Metal Tiger (MNRG) is holding a general meeting on 15 May in order to gain shareholder approval for the directors to issue new ordinary shares without the requirement to offer them to existing shareholders.
AIM
Franchise Brands (FRAN) says that Micro Rod had a record quarter in the first three months of 2019. System sales were 12.9% higher. The business to consumer franchises have also had a good start to the year.
International payments services provider FAIRFX (FFX) increased revenues by 69% to £26.1m, while pre-tax profit jumped from £900,000 to £6.79m. City Forex was acquired in February 2018 but there was like-for-like growth. In the first quarter of 2019, revenues are 43% ahead at £7m.
Tekcapital (TEK) says that investee company Salarius has secured the first commercial order for its low sodium MicroSalt from a snack food manufacturer. Investee company Belluscura has raised just over £500,000 from a crowdfunding offer, including further investment from Tekcapital. The cash will be used to market and further develop a portable oxygen concentrator called X-PLOR.
More good news from Eden Research (EDEN) as partner Eastman has received a 120 day emergency use authorisation for Cedroz, which is used to combat plant-parasitic nematodes, in Italy. This will enable sales while the Italian authorities process the application for authorisation.
Aviation services provider Gama Aviation (GMAA) has reported 2018 figures with the comparatives for 2017 restated. Pre-tax profit slumped from $16.6m to $11m. That is before more than $40m of exceptional charges, including a $27.7m impairment charge. A final dividend of 2p a share is being paid. Hutchison Capital Holdings has bought more shares to take its stake to 25.45% after a shareholding limitation was ended.
Software company WANdisco (WAND) reported a fall in revenues from $19.6m to $17m in 2018, but this was down to a change in the revenue model to subscription-based business. The loss increased from $14m to $19.4m, but this will fall sharply over the next two years as revenues grow rapidly.
ReNeuron (RENE) has positive news from the first three retinitis pigmentosa patients given its human retinal progenitor cell product. Vision has improved after 60 days and 120 days. Longer-term evidence is required, but this is a good start and three more patients are being provided with the treatment.
Kestrel has increased its stake in Pebble Beach Systems (PEB) from 23.1% to 24.2%.
Satellite communications equipment provider Global Invacom (GINV) has terminated the proposed acquisition of Tactilis and related fund raisings. The two companies will provide equal funding of the costs of the terminated deal. Group revenues were $122.3m in 2018. Electronic component shortages have eased, and pricing is normalising. Trading in Global Invacom shares resumed and the share price jumped from 4.5p to 7p.
Angling Direct (ANG) has opened its 27th store on a former Majestic Wine site in Nottingham. The fishing equipment retailer has started the new financial year strongly. Overall sales were 50.7% higher in February and March. Full year figures for the year to January 2019 will be reported on 13 May.
Piling company Van Elle (VANL) reported that its full year profit will be slightly worse than expected but the share price still bounced back from recent lows. Volumes have recovered in the fourth quarter, but full year sales are 3% below expectations. A new director of the piling division will join in June.
The microCHP boilers developer Inspirit Energy (INSP) is still developing its product and it still has to commercialise its boilers.
MAIN MARKET
Standard list shell Fandango Holdings (FHP) has ended discussions with Konnect Mobile Communications Inc because it could not raise the finance for the acquisition. Fandango has been making loans to another standard list shell, Stranger Holdings, where Charles Tatnall is also a director. There was £141,000 outstanding at the end of August 2018, plus accrued interest of £38,721, and this has been reduced to £108,000, excluding interest. There was cash of £53,000 in the balance sheet at the end of August 2018.
Zenith Energy (ZEN) chief executive Andrea Cattaneo has acquired 593,289 shares at 3.3p each, taking his stake in the Azerbaijan-focused oil and gas company to 8.46%.
Former finance director Michael Mousley has been appointed as a non-executive director of Quarto (QRT). A new finance director will join the company in July.
Andrew Hore
Andrew Hore Quoted Micro 25 February 2019
NEX EXCHANGE
Western Selection (WESP) has reported a 22% decrease in NAV to 75p a share, due to the decline in smaller quoted company share prices. The NAV has recovered to 79p a share. The investment in Swallowfield (SWL) declined by nearly one-third and the value of the Bilby (BILB) stake fell by two-fifths in the six months to December 2018. Net debt was £1.25m at the end of 2018. The interim dividend is maintained at 1.1p a share.
Early Equity (EEQP) has acquired a 60% stake in MEI Home, a ecommerce platform for household, health and food products, for £282,000. The Malaysia-based business was profitable in the first financial year. The founder will retain a 40% stake and he also owns 6.12% of Early Equity. He also promises that annual pre-tax profit will be at least £95,000 in each of the next two financial years.
Tectonic Gold (TTAU) has taken a 50% stake in a joint venture with Vast Mineral Sands covering diamond mining concessions at the government-owned Alexkor diamond mine in South Africa. This should generate cash, through planned production of 900 carat per month, to invest in other projects. Tectonic is paying $650,000 in shares at 2.2p each. A year long research study has confirmed that there is an interaction of two styles of mineralisation at Mount Cassidy prospect in Queensland, Australia. There is stratabound copper and zinc, gold and silver mineralisation and epizonal to epithermal gold and silver mineralisation.
MiLOC Group Ltd (ML.P) has extended the life of its convertible bond by one year to 19 January 2020. The annual coupon increases from 6% to 7.2%. The conversion into shares can take place if an alternative quotation on a recognised stock exchange is secured.
First Sentinel (FSEN) has completed a £4m bond issue. These 7% bonds 2023 are due to start trading on NEX.
AIM
Michelmersh Brick (MBH) has made its first acquisition outside of the UK. Michelmersh is paying up to €9.9m (£8.7m) for Antwerp-based Floren and Co in a deal that should be immediately earnings enhancing. A placing raised £5m at 90p a share. In 2018, Floren generated EBITDA of €1.75m on revenues of €5.7m. Michelmersh is planning to increase production levels from 19.5 million bricks a year. The acquisition includes 120 acres of land, of which 60 acres is used in production.
IP legal services provider Murgitroyd Group (MUR) is acquiring Southampton-based Chapman IP for £6.6m and Helga Chapman has been appointed a non-executive director. Net cash was £2.03m at the end of November 2018. Interim pre-tax profit edged up from £1.67m to £1.7m. The interim dividend was increased by 8% to 7p a share. Edward Murgitroyd is retaining his role as chief executive and handing over the role of finance director Keith Young.
Carpets and hard flooring manufacturer Victoria (VCP) continued to sacrifice margins in order to add market share in a declining flooring market in the UK in the second half of the financial year to March 2019. Full year EBITDA should be between £95m-£97m, with underlying pre-tax profit of at least £55m. This is not as much as previously forecast. There are additional inventories ahead of Brexit. Restructuring measures and capital investment should add more than £14m to pre-tax profit for the year to March 2020.
JD Sports Fashion (JD.) has acquired 21.3% of Footasylum (FOOT) and it says it may acquire up to 29.9%. FIL Ltd’s stake has fallen below 5%. Artemis has sold its 5.74% stake.
Angling Direct (ANG) expects to report full year revenues of £42m, up from £30.2m. Three new stores have been added to the group, taking the total to 24. International sales doubled. The full year results will be published on 13 May. Angling Direct is considering the acquisition of Glasgow-based Chapmans Angling Ltd, which is a subsidiary of The Glasgow Angling Centre Ltd.
Egdon Resources (EDR) has competed drilling at Biscathorpe-2 in Lincolnshire. There are signs of an effective petroleum system even though the sands were poorly developed. The reservoir may be better developed to the north of the well. Egdon owns 35.8% of the exploration licence and Union Jack Oil (UJO) owns 22%.
Trinidad-focused oil and gas producer and explorer Touchstone Exploration Inc (TXP) has raised £3.8m at 12p a share in order to finance the 9,000 feet of exploration drilling at Ortoire.
Pelatro (PTRO) has gained a contract to supply its mViva contextual marketing service to Vietnam-based Vinaphone. The deal with the telecoms company should be worth $1.5m over three years. Pelatro gets a fixed monthly fee plus a share of incremental revenues generated. This provides additional confidence that the 2019 revenue forecast of $10.5m can be met. That is expected to generate pre-tax profit of $6m because of the high operational gearing of the business.
SkinBioTherapeutics (SBTX) has raised £1.5m at 16p a share from Seneca Partners. There was £2.52m in the bank at the end of 2018. The cash will be invested in further development of products and commercialise them.
Duke Royalty (DUKE) has provided £10m of royalty finance to recreational vehicle parts wholesaler Miriad Products. The monthly payments are expected to provide a yield the equivalent of 13% a year.
Biopesticide products developer Eden Research (EDEN) has a second approved product thanks to its commercial partner Eastman Chemical Company. Nematicide formulation Cedroz has received authorisation in Malta and Eastman will apply to gain approvals in individual EU member states. The full benefit of these approvals is likely to show through next year.
EKF Diagnostics (EKF) has received US FDA clearance for the use of the Quo-Test glycated haemoglobin analyser in clinical laboratories.
It has been a mixed start to the financial year for Gooch and Housego (GHH) with softer demand in microelectronics, due to trade tariffs, but the second half improvement in subsea cable business has continue. The AGM statement has led to a reduction in the underlying profit forecast for this year from £21.5m to £19m, which is slightly higher than last year’s outcome.
Social housing software provider Castleton Technology (CTP) has acquired its software development partner in India for £350,000 in cash and shares.
eServGlobal (ESG) says that its 35.7%-owned mobile transfer payments joint venture HomeSend increased its average transaction value by 35% in the second half following a change in strategy to focus on account-to-account transactions rather than remittances.
Beximco Pharmaceuticals (BXP) is acquiring eight abbreviated new drug applications in the US from Sandoz Inc. This takes the number of US approved drugs to 14, with four currently being exported to the US.
Haydale Graphene Industries (HAYD) has raised £4m at 2p a share and wants to raise up to £4m more through a seven-for-one open offer closing on 11 March. If these shares are all issued they will account for 93% of the total shares in issue. Haydale needs cash to invest in its inks business as well as to cover continuing losses. Keith Broadbent will become chief executive.
Reach4Entertainment (R4E) has acquired the arts and entertainment advertising agency trading as Sold Out for an initial £3.94m in cash and £250,000 in shares. The total purchase price is dependent on performance in the period from 1 June 2017 to the end of 2021 and is capped at £10m. In the year to May 2018, Sold Out made a pre-tax profit of £1.3m.
Paragon Entertainment (PEL) has sold its current administration offices in York for £550,000. The relocation to other group premises should save £100,000 a year. The cash will pay off the mortgage of £134,000 and reduce the overdraft from £1.04m. The overdraft limit will be cut from £1.2m to £882,000. A creditor owing £168,000 has filed for protection from creditors. Management want to raise additional capital.
Medical devices supplier Inspiration Health (IHC) says revenues for the year to January 2019, will be £15.5m, which is £1m below forecast, and pre-tax profit will be slightly lower than forecast at £1.2m.
Holders Technology (HDT) has more than trebled its full year pre-tax profit of £177,000 thanks to a reduced LED loss and improved profitability at the printed circuit board materials business. There was still a cash outflow from operations. The dividend has been increased by 50% to 0.75p a share.
Arc Minerals Ltd (ARCM) has raised £2.2m at 3p a unit. The unit includes a share and one warrant exercisable at 4.5p each and lasting for 36 months. The cash will finance exploration and development at the Zamsort copper project in Zambia. Arc has also sold its 18.5% stake in Andiamo Exploration for $250,000.
Malvern International (MLVN) has raised £606,000 at 4p a share. This is more than the education services provider originally asked for in order to cover working capital requirements and investment in a new college in Brighton and online course material.
AIM-quoted blockchain and technology investment company Vela Technologies (VELA) is taking advantage of the discount to cash by buying 500,000 shares in cryptocurrency mining services provider Argo Blockchain (ARB) at 3.072p a share. This compares with cash of 5p a share. Vela has 3 million shares in Argo, equivalent to 1.02%. The rest of the shares were bought prior to Argo’s standard listing and cost 8p each, compared with the flotation price of 16p a share. The average cost is 7.17p a share, so the average cost exceeds the value of cash in the business. Argo is refocusing on its own currency mining. Ongoing costs will be cut by one-third, although there will be some one-off cash costs. Net cash is £15m and that is much more than the market capitalisation of Argo.
ReNeuron (RENE) has released early data on three patients in phase I/IIa clinical trial the human retinal progenitor cell product. There have been significant improvements in vision for the patients, but this is a small sample size over a short time. Cash should last until the end of 2019.
Pires Investments (PIRI) has received a requisition notice for a general meeting in order to make changes to the company’s board.
Best of the Best (BOTB) has received tenders for just over 4 million shares, which is 5.6 times the number that it was tendering for. Best of the Best will pay £3.5m for 721,327 shares (485p a share).
FAIRFX Group (FFX) has become a direct participant in the UK faster payments scheme. It is the fourth non-bank to be a direct settling member.
Crossword Cybersecurity (CCS) says Kinnerton Confectionery will be using its Rizikon Assurance secure third party assurance platform.
Former AIM company Lionsgold Ltd (LION) is changing its name to Tally Ltd. Mobile banking app Tally is in beta testing and could be released by the end of February. Once this has been released the company will seek to gain a new quotation. The exercise of warrants, mostly by directors, at 1.2p a share has generated £288,000.
MAIN MARKET
Packaging group Macfarlane Group (MACF) increased its pre-exceptional profit by one-fifth to £11.2m in 2018. Both distribution, helped by acquisitions, and manufacturing divisions increased their profit contributions. Manufacturing sales grew fastest but margins fell. The dividend was increased by nearly 10% to 2.3p a share. Net debt was £13.2m and there are plenty of unused bank facilities to fund any further acquisitions. The pension deficit was reduced by £2m to £9.8m.
In the six months to December 2018, Avation (AVAP) reported doubled earnings per share thanks to the gain on the sale of a A321-200 aircraft. The NAV is 288p. The aircraft fleet continues to increase, particularly turboprop aircraft. Although full year pre-tax profit is set to rise even more than originally forecast, earnings per share are likely to be flat at 31.7 cents. Next year’s profit will be lower, assuming no aircraft disposals.
InnovaDerma (IDP) reported interims in line with expectations and there are plans for a mid-March launch for Skinny Tan in Boots. This will help the second half performance, which is normally stronger. Full year pre-tax profit is expected to more than double to £1.5m, a downgrade of 10%. Net cash was £700,000 at the end of 2018. A cash inflow is expected in the second half, but fluctuations in cash in terms of working capital requirements, such as Boots order levels, during the period could lead to InnovaDerma deciding to raise more money.
Anglo African Agriculture (AAAP) reported a reduction in turnover from £2.13m to £1.74m in the year to October 2018. Even so, gross margins improved and the pre-tax loss edged up from £550,000 to £573,000. Net cash was £856,000. The company is assessing acquisitions outside of the agriculture sector.
Trading in the shares of daVictus (DVT) has been suspended ahead of finalisation of a deal where the standard list shell will buy the rights to a restaurant concept from Typical Dutch NV for £100,000. This is deemed to require a prospectus before the company can be readmitted to the standard list. The Havana Rolled Cigar Music Café concept has been developed at a site in Aruba. daVictus had £431,000 in the bank at the end of June 2018.
Offshore support vessels operator Gulf Marine Services (GMS) has sent out the document for its requisitioned general meeting on 18 March. Rival Seafox International wants to remove the chairman and appoint three new directors. Ithmar Capital Partners wants to appoint another director.
Andrew Hore
Ian Pollard Victoria Plc (VCP) Politely Invites Shareholders To Take A Walk
Victoria plc VCP decided to take advantage of difficult market conditions to pursue market share. The Board now recognises this impacted earnings this year and has unsettled some shareholders. It believes however that the strategy is in the best long-term interests of the Group and its shareholders and appears in effect to have told the shareholders to take a walk and has continued with the strategy. The Board believes markets are down 6-8% in the UK and Australia and flat in Europe but the Group has continued to grow overall like-for-like revenues and gained meaningful market share. The Group expects that the current-year to March 2019 EBITDA is likely to be £95m-£97 million a rise of nearly 50% over the year to March 2018 and the Group’s 2019 underlying pre-tax profits are expected to be around around 35-39% higher than 2018.
Reckitt Benckiser Gp plc RB claims that 2018 was a year of good financial progress, achieved in an environment of challenging market conditions. Pro-forma and LFL growth came in at 3%. plus 2% from volume and +1% from price / mix.The final dividend is being being increased to 100.2p, a rise of 3% and like for like net growth is targeted at 3.4% for 2019. The CEO says that the company is well positioned for long term, sustainable growth.
Angling Direct plc ANG expects to report revenue of £42.0 million,an increase of 38.9% for the 12 months to the 31st January compared to the same period in the previous year.In store sales showed an increase of 50% overall or 6.2% on a like for like basis. whilst online sales grew by 30.3%. International sales surged by 98% to £4.66m and now account for 20.9% of the Group’s online sales. with shipments going to 49 different countries, this success has delighted the board. The business has also now been structured in readiness for Brexit
Xpediator plc XPD confirms that it has achieved its growth objectives and recorded significant increases in sales and profits for the twelve months to 31 December 2018. Total revenues increased by 54% Import Services Logistics and Anglia Forwarding, both of which were acquired during 2018, contributed an additional 18% in revenue and added over 400 new customers. The Company’s Brexit team has been working closely with leading transport associations and port authorities to plan ahead. and will be able to support both exporters and importers post Brexit.
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