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Quoted Micro 22 January 2024
AQUIS STOCK EXCHANGE
Standard listed Mustang Energy (MUST) has entered into non-binding heads of terms for the acquisition of Cykel AI (CYK). The offer is 1.844 Mustang Energy shares for each Cykel AI share. The Mustang Energy share price is 30.6p, having risen from 25.5p prior to the announcement of the deal. Cykel AI is developing artificial intelligence software, which will be marketed via a Software as a Service (SaaS) model, and it joined Aquis on 25 October 2023 at 3p/share. Trading in Cykel AI shares has been suspended at 9.25p, valuing the company at £19m. Mustang Energy previously tried to do a deal with Bushveld Minerals (BMN), involving one of its subsidiaries but that fell through. A prospectus for the acquisitions is expected in the second quarter of 2024.
Fuel additives developer SulNOx Group (SNOX) generated third quarter revenues of £98,400, up from £53,500 in the second quarter. Nine months revenues were doubled. There is £2.68m in the bank. Fourth quarter invoiced sales are already £64,500.
Global Connectivity (GCON) says 15%-owned investee company Rural Broadband Holdings has increased its stake in UK broadband provider Voneus from 32% to 36% as part of a £25m financing.
Cooks Coffee Company (COOK) has increased the number of coffee shops and revenues in the 12 months to December 2023 were 16% higher at £26.9m. Like-for-like UK sales were 6% ahead and in Ireland it was 6.8%. December was a record month and there was positive operating cash flow. The year-end is being changed to March.
Electric motors and drivetrains developer Equipmake Holdings (EQIP) has gained a contract for the next stage of its electric motor development with aerospace company H55 for electric aircraft. There will be £315,000 of work deliverable by the end of May 2024 with a further £400,000 after that. Aircraft production could commence in 2025. Dr Nicholas Moelders has been appointed as chief operating officer. Interim revenues rose from £1.05m to £2.07m, while the loss increased from £2.79m to £2.96m because of higher admin expenses.
Hydrogen production systems developer Hydrogen Future Industries (HFI) has commenced its first mining sector feasibility study in the US. The idea is to use wastewater from tailings as a way of generating hydrogen. Management is discussing a potential deal with a partner in Australia for the deployment of renewable energy microgrids.
Marula Mining (MARU) subsidiaries have been issued seven new graphite mining licences for Takela and NyoriGreen projects in Tanzania. The licences last seven years. Marula Mining owns 75% of the licence owners and it is paying $25,000/licence, as well as issuing 1.05 million shares at 13.5p each as additional consideration for the investments. Marula Mining has approved a $6.38m exploration budget for its projects in Tanzania.
Igraine (KING) investee company Fixit Medical, which has developed the Cingo drainage catheter fixation device, expects to produce the first production prototypes in the first quarter of 2024. Fixit Medical is preparing a technical dossier for the ISO 13485 application.
Looking Glass Laboratories (NFTX) has decided to withdraw from the Aquis Stock Exchange, having joined in November 2022.
WeCap (WCAP) has invested a further £900,000 in WeShop convertibles, taking the total investment to £3.75m. The conversion price is 200p/share. WeCap has also invested in £4m of convertibles with a conversion price of 300p/share. Including an investment in a company owning shares, WeCap owns 15.3% of the diluted share capital of WeShop. This is valued at £24.6m at the latest fundraising price.
A purchase of 4,250 shares in Investment Evolution Credit (IEC) at 50p each led to a 125% jump in the share price to 45p. There were four other trades during the week, and they were at 24p/share and 25p/share. The online consumer loans company joined Aquis on 14 December 2023 when it raised £508,000 at 4.5p/share. There is no reason for the share price to have risen so far other than the limited liquidity of the shares.
Valereum (VLRM) has restarted talks with Vinay Gupta of Mattereum and they are exploring potential opportunities.
Chief executive Dr Michael Hudson has acquired 50,000 EDX Medical Group (EDX) shares at an average price of 8.89p each, taking his stake to 6.77%.
Michael Edwards has bought one million shares in Aqru (AQRU) at 0.12p each.
AIM
Tissue converter Accrol (ACRL) has acquired wet wipes and tumble dryer sheet manufacturer Severn Delta for around three times EBITDA. There is a factory in Somerset with four production lines. Revenues are £5m and this will take Accrol into new markets.
Scientific instruments manufacturer Judges Scientific (JDG) generated organic sales growth of 15% in 2023. Profit should be in line with expectations. Liberum expects pre-tax profit to rise from £28.3m to £31.4m. Increased stocks have held back cash generation. Net debt is forecast to be £44.9m.
Paper and technical fibres maker James Cropper (CRPR) has been hit by weak trading in the paper business and slower growth in sales to hydrogen companies in advanced materials. As a highly operationally geared business this has led to a slashing of current year pre-tax profit forecast from £5.9m to £500,000. Employee numbers have been reduced in the paper division, completing the restructuring. Higher capacity utilisation will improve the profit contribution.
Trading in scientific instruments developer Microsaic Systems (MSYS) has recommenced after a 625-for-one share consolidation and a placing raising £2.1m at 1.25p. The consolidated share price was 4.0625p and it fell to 1.4p in initial dealings and stayed at that level, which is a 65.5% decline. Cash will be used to acquire assets from DeepVerge. Full year results for 2022 and interims for 2023 were published to enable the shares to recommence trading after suspension.
Growth at payments technology company Bango (BGO) was held back by contract delays. Moving into profit for the full year was always going to be a tough and Bango has fallen well short. Revenues grew 62%, which is 6% below forecasts. Bango did move into profit in the second half, but it was not enough to make the full year profitable, and the loss is likely to be around $3.7m. That is due to the high margin, lower sales, increased costs and negative foreign exchange movements. Bango should still move into profit in 2024 and start to generate cash.
Hercules Site Services (HERC) did well in the year to September 2023 with underlying pre-tax profit better than expected at £900,000. HS2 work is building up. The construction workers provider is opening its own training centre. That will help the business in the longer-term, but initial costs will hold back profit this year.
XP Factory (XPF) says Boom Bars generated like-for-like growth of 29% and Escape Hunt grew 17% in the past 12 months. This is much faster growth than the market. Group revenues were 95% ahead at £44.5m and this underpins the current forecast for the 15 months to March 2024. XP Factory is on course to move into profit in 2024-25.
Third quarter trading was in line with expectations at Naked Wines (WINE) with the decline in constant currency sales of 10% lower than in the previous quarter. This was the peak trading time. Quarterly operating profit is likely to be £3m-£5m. Annual costs have been reduced by £7m. Net cash is £3m and the business should become cash generative by 2025.
Zeus has cut its 2024 and 2025 forecasts for Big Technologies (LON: BIG) after the monitoring technology company’s trading statement. The 2023 figures were in line with expectations, but Big Technologies expects its Colombia prison service contract to end in the first half of this year. This year’s revenues are expected to fall to £51m and the operating profit estimate is reduced from £31,7m to £23.9m, down from £28.9m in 2023. The 2025 operating profit is expected to be £27m.
A trading statement from utility infrastructure platform IQGeo (IQG) shows 2023 revenues 6% ahead of forecast and a much higher cash figure of £11m. Annualised recurring revenues are 50% higher at £21.1m. This has sparked an upgrade of 2024 estimates by Cavendish with revenues of £49.8m and pre-tax profit of £5.5m, up from £3.4m in 2023.
Strategic Minerals (SML) says that the Cobre magnetite operation has regained a major client that has ordered 30,000 tons. There could be a second contract of a similar size. This follows a halving of sales volumes in 2023.
There were positive drilling results from Thor Energy (THR). The drilling at the Wedding Bell and Radium Mountain uranium prospects in Colorado intersected high-grade uranium. Grades were up to 0.69%. This follows positive results from the Groundhog prospect. The assay results should be received in February. There are plans to drill other prospects in the region. The uranium price has moved above $100/lb.
Prospex Energy (PXEN) says that the Podere Malar-1 well in the Selva field is producing gas at the expected levels. Prospex Energy owns a 37% working interest in the Selva Malvezzi production concessions. Operator Po Valley Energy is determining the optimal flow rate for the longer-term. There are plans for further drilling on the concession.
MAIN MARKET
Foams manufacturer Zotefoams (ZTF) had a strong end to 2023 with revenues in line and pre-tax profit slightly better than forecast at £13.1m – a small increase on 2022. The foam business did particularly well and should continue to as new Nike shoe designs are launched. The ReZorce recyclable carton business remains loss-making and trials with customers will happen in the next few months. Net debt is £31.9m and capital investment will lead this to increase in 2024.
Gulf Marine Services (GMS) has updated guidance for 2023. The offshore energy vessels provider says underlying EBITDA will be around $86m, which is one-fifth higher than in 2022. The 2024 EBITDA range is $87m to $95m.
Andrew Hore
Quoted Micro 15 January 2024
AQUIS STOCK EXCHANGE
Electric motors and drivetrains developer Equipmake Holdings (EQIP) has won an extension of its contract from sightseeing tours operator Big Bus Tours, and it has doubled in size to cover 20 buses. The contract is worth £3.5m. The buses will be delivered by the end of the third quarter of 2024. Full year revenues are expected to be £13.4m, although Equipmake will still be loss making. The share price slipped 8.57% to 8p, but it has risen by one-fifth over the past year.
Silverwood Brands (SLWD), whose shares are suspended at 30p. has come to a conditional settlement with the vendors of the 19.8% Lush stake, which was never transferred to the company by Lush. The deal was cancelled. The vendors are paying £300,000 to Silverwood Brands to cover deal costs.
Capital for Colleagues (CFCP) had 14 investments in the quarter to November 2023 and the NAV was £15.1m or 81.67p/share, down from 81.99p/share at the end of August.
Tyndall Investment Management increased its stake in skin treatments developer Incanthera (INC) from 6.85% to 11.8%.
Tony Wilson has increased his stake in Oscillate (MUSH) from 3% to 3.66%, while Rikki Devlin has taken a 3.04% shareholding.
Bitcoin mining company Vinanz Ltd (BTC) says that the SEC in the US has approved Bitcoin ETFs, which will provide investors with a way to access cryptocurrency. This should be positive for Vinanz. David Lenigas has bought 80,000 shares at an average share price of 9.2p.
NFT Investments (NFT) is changing its name to Phoenix Digital Assets. The share price rose 18.5% to 3.2p. NAV is 4.67p/share.
EDX Medical Group (EDX) sent shareholders a letter that stated it is pursuing nine different projects for point of care and laboratory testing services. The reverse takeover of TECC Capital means that there has been selling by legacy shareholders holding back the share price, but it has started to rally rising 17.2% % to 8.5p.
AQRU (AQRU) is changing its name to Supernova Digital Assets and it is focusing on becoming a value provider for the Solara ecosystem. Net assets are 0.297p/share, including crypto assets of 0.166p/share.
Kasei Holdings (KASH) non-exec director Bryan Coyne has acquired 125,000 shares at an average price of 8.14p each.
Valereum (VLRM) says that the general meeting to approve the acquisition of GSX Group will be held on 30 January and there will be a shareholder update meeting the next day. Nick Cowan has joined the board as chief executive, as has former AIM and Plus Markets boss Simon Brickles. Gary Cottle has also joined as a non-exec.
EPE Special Opportunities (EO.P) had net assets of 301.9p/share at the end of 2023.
PanGenomic Health (NARA) has entered into a non-binding letter of intent with Crescita Capital for a $5m drawdown facility. This will last three years and can be used for working capital and acquisitions. The facility involves the issue of shares at a discount to the market price at the time of issue. There will be a $300,000 commitment fee payable in cash or shares.
Tony Wilson has increased his stake in Oscillate (MUSH) from 3% to 3.66%, while Rikki Devlin has taken a 3.04% shareholding.
AIM
The Property Franchise Group (TPFG) has made an agreed bid for rival franchised lettings company Belvoir (BLV). The agreed offer of 0.806377 TPFG shares for each Belvoir share values Belvoir at 277.4p/share based on a TPFG share price of 344p, but it has subsequently fallen to 307.5p valuing Belvoir at 248p/share. TPFG shareholders will own 51.75% of the enlarged group.
Capital equipment supplier Mpac (MPAC) had a strong second half in 2023 and there was a record order intake during the year. Margins improved in the second half and full year pre-tax profit was £6.9m, up from £3.5m in 2022. The higher second half margins should continue in 2024, enabling a further improvement in profit.
NWF (NWF) has signed a 15-year lease on a third food distribution warehouse in Newcastle-under-Lyme. This will add 52,000 pallets to capacity. The site should be open in the autumn after capital expenditure of £8.5m. This site could add £1.2m to pre-tax profit in 2025-26.
Another positive trading statement from payments services provider Cornerstone FS (CSFS) has led to an upgrade of December’s previous upgrade. A maiden pre-tax profit of £800,000 on doubled revenues of £9.6m is forecast for 2023. Revenues per customer increased by around two-thirds to more than £10,000. The company moved from net debt to net cash.
AdvancedAdvT (ADVT) switched from the standard list to AIM on 10 January. Last year, five businesses were acquired from Capita and one of these is being sold. The remaining companies operate in business solutions and human capital management.
Online builders’ merchant CMO Group (CMO) had a tough fourth quarter. Online traffic rates declined, but conversion rates improved. Overall orders were flat. Home improvement and DIY spending is declining. The overall repair, maintenance and improvement sector is still relatively strong, but it weakened in the second half of 2023. Market share has grown, and costs have been cut. Liberum has increased its 2023 pre-tax loss forecast from £800,000 to £1.2m and forecasts a 2024 loss.
Consultancy Elixirr International (ELIX) confirmed 2023 results are in line with expectations and it will pay two dividends each year. Pre-tax profit is expected to improve from £19.3m to £23.9m. The shares will go ex-dividend for the 5.3p/share interim on 19 January.
Plant monitoring technology developer Light Science Technologies (LST) published a positive 2023 trading statement. Cost savings have helped to halve the pre-tax loss of £1.3m on revenues rising from £8.2m to £9.3m. Contract electronic manufacturing remains the largest sales contributor, although controlled environment agriculture products are growing in importance.
Touch sensors manufacturer Zytronic (ZYT) reports a 30% decline in full year revenues to £8.6m and it fell back into loss. Gross margins were hit by higher raw material costs and product mix. Sales continue to decline this year. There are signs that there could be improvement in the second half. Net cash is £4.7m.
Palm oil producer Dekel Agri-Vision (DKL) says 2023 revenues were at record levels, but there are problems with ramping up the cashew operation. Investment is required to replace parts of the machinery used in cashew production. Production should improve in the second quarter. The 2024 pre-tax profit forecast has been cut from €1.5m to €600,000.
Mercantile Ports and Logistics (MPL) says some trading activity was deferred last December. Cavendish reduced its 2023 revenues forecast from £6.9m to £5.4m. Coal import to the Karanja port were lower because of destocking. The loss will be higher. Management hopes to replace the current debt facilities with a new facility with lower interest charges. Buying by directors did not help the share price. Non-exec John Fitzgerald acquired 624,419 shares at 1.5725p each and Dmitri Tsvetkov bought 617,360 shares at 1.62p each.
Oriole Resources (ORR) has confirmed receipt of the payment of $450,000 related to the earn-in agreement with BCM International for the Bibemi gold exploration project in Cameroon. BCM will spend $4m on exploration to earn 50% of the project. Drilling should resume in the first quarter.
Semiconductors designer EnSilica (ENSI) has released a range of Post-Quantum Cryptography accelerators. These are cryptographic algorithms that can withstand cyber-attacks from quantum computers.
MAIN MARKET
Tertre Rouge Assets (TRA) has entered into a purchase agreement for a 1972 Lamborghini Miura P400 SV for £2.8m, which means that there are purchase agreements for six cars valued at £32m. Formal marketing of a fundraising has commenced, and the issue price should be 105p. Approval of the prospectus by the FCA is still awaited.
Kelso Group Holdings (KLSO) plans to raise up to £1.88m at 3p/share. The cash will be used for further investments in UK listed companies. Previous fundraisings were at 2p/share and 2.5p/share.
Standard list shell Sivota (SIV) has identified a potential acquisition that operates a technology platform in the travel sector, subject to due diligence and other conditions. The plan is to acquire up to 51% of the company for $15m. Sivota will raise £2.5m to provide the target with a convertible loan for working capital.
Quantum dots developer Nanoco (NANO) has signed a joint development agreement with STMicroelectronics. This two-year programme will optimise a second generation sensing material. This will boost non-licence fee income in 2024 and sales of test materials in 2024 and 2025.
Andrew Hore
Quoted Micro 23 October 2023
AQUIS STOCK EXCHANGE
Healthy snack foods supplier S-Ventures (SVEN) plans to raise at least £2.5m to pay deferred consideration and provide working capital. The fundraising has been announced ahead of time so that more investors can become involved. In the year to September 2023, gross revenues improved from £8.6m to £16.9m, while net debt is £6.8m. The main growth came from an initial contribution by gluten-free products company Juvela and technology platform Market Rocket. S-Ventures was loss making and the level is likely to depend on impairment charges.
Arbuthnot Banking Group (ARBB) continues to benefit from higher interest rates. Customer deposits grew 7% to £3.5bn, while wealth management assets under management increased from £1.38bn to £1.43bn. The new London office at 20 Finsbury Circus has increased space by 45% to 75,000 square feet. This will increase annual costs by £5m and there will be dual costs until October 2024 when the existing office lease expires.
Technology marketing business Inteliqo Ltd (IQO) generated initial revenues of $558,000 in the year to September 2023 and it moved from a loss of $428,000 to a pre-tax profit of $185,000. There is $384,000 in the bank, after a cash inflow of $195,000. Inteliqo should continue to be profitable this year as it builds up sales of smart translation Ipedia earbuds and the Langaroo language app.
Aquis Exchange (AQX) chief executive Alasdair Haynes bought 10,000 shares at 325p each, while non-exec chairman Glenn Collinson acquired 7,500 shares at 326.5p.
Shepherd Neame (SHEP) director George Barnes bought 1,000 shares at 800p each. Premier Miton has taken a 5.05% stake in Global Connectivity (GCON). Oberon Investments (OBE) chief executive Simon McGivern has sold 11.6 million shares and Joanna McGivern sold 650,000 shares at 3.6p each. Chairman Mike Cuthbert bought 140,000 shares at 3.6p each and finance director Galin Ganchev acquired an initial 138,888 shares at 3.6p/share. Simon McGivern still has a 6.78% stake. Shepherd Neame (SHEP) director George Barnes bought 1,000 shares at 800p each. Premier Miton has taken a 5.05% stake in Global Connectivity (GCON). Andrew Offit has increased his stake in AQRU (AQRU) from 4.77% to 11.9%.
Tap Global Group (TAP) has appointed Tennyson Securities as its broker.
AIM
Shoe Zone (SHOE) has sparked another upgrade with its latest trading statement. The shoe retailer’s sales were slightly ahead of expectations and pre-tax profit will be at least £16m, which is 19% higher than forecast. Lower freight rates improved margins. The dividend estimate has been raised from 9p/share to 10.5p/share on the back of the profit growth. Zeus has increased its 2023-24 pre-tax profit forecast from £12.5m to £15.2m. To put this in perspective, one year ago Zeus forecast a 2022-23 pre-tax profit of £8.5m, not much more than 50% of the outcome. It would be wrong to expect similar upgrades this year, but it indicates that forecasts are generally conservative.
Gama Aviation (GMAA) is selling its Jet East business for $131m. Adjusting for debt and transaction costs the net amount is $100m, which is equivalent to 125p/share. That could allow a 55p/share dividend. The rest of the cash can be reinvested in the remaining aviation services businesses. Gama Aviation recently won air ambulance and offshore helicopter contracts.
CoStar Group Inc is bidding 110p/share for On The Market (OTMP), which values the property listings company at £99m. The February 2018 placing price was 165p. CoStar Group Inc says that On The Market provides a good entry point to the UK residential property market. The purchaser owns US-based Homes.com.
Litigation finance provider Manolete Partners (MANO) is benefiting from the UK government removing Covid-era protections against insolvency. In the six months to September 2023, the number of case investments jumped from 83 to 146. Bounce back loan cases separately increased from 83 to 179.
Craven House Capital (CRV) investee companies Garimon and Honeydog – it has 29.9% of each company – are planning to reverse into the Amigo Holdings shell on the Main Market. These are music streaming and digital publishing businesses.
eDrive systems developer Saietta (SED) shares returned from suspension on Thursday afternoon after it published results to the year to March 2023. There were problems with the accounting for the new agreements with Consolidated Metco Inc, which included an upfront payment of €3.3m and an inventory write-down of £2.1m. Revenues from continuing operations more than doubled to £4.8m, but the group loss was higher. Orders are in place to build up revenues. There was cash of £7.2m left at the end of March 2023, but by September this was down to £400,000. More cash will be required to finance the delivery of orders.
Fashion retailer Sosandar (SOS) has decided to reduce promotional and discounting activity on its website and open retail stores. There will be four shops by next spring. This will hold back short-term revenues but could accelerate progress in 2026-27. Singer has cut its full year revenues forecast by 19% to £46.8m. This means that having made a profit last year, this year Sosandar will be back to breakeven, and it will take two years to beat the £1.6m profit made last year.
Revolution Bars Group (RBG) reported full year figures broadly in line with expectations. The Peach Pubs business is trading well with like-for-like sales 14% ahead, but the Revolution bars have been hit be train strikes. Cavendish retained its flat 2023-24 pre-tax loss forecast of £2m, even though trading has been tough.
WH Ireland has produced its updated research for metallurgical coal producer Bens Creek Group (BEN) suggesting a move into profit this year. This year’s pre-tax profit forecast is slashed from £108m to £7.2m, with the following year’s estimate reduced from £96.2m to £33.4m. This is a scenario rather than a proper forecast. A 3.6 cents/share (3p) dividend is possible in 2024-25.
Cirata (CRTA), formerly known as WANdisco, is trading in line with expectations with bookings of $1.7m in the latest quarter. They are expected to be higher in the fourth quarter and the software company’s management is confident that the prospects are genuine. Cash should be at least $16m at the year end and Cirata could be cash breakeven in 2024.
R&Q Insurance Holdings (RQIH) is selling its program management business, and this should generate $300m of net proceeds. This will be used to pay down debt. The group chief executive and finance director will leave with the disposal.
ECR Minerals (ECR) has terminated its option to acquire the Hurricane project, following the changes in the board. Management does not believe the potential of the project warrants the acquisition cost.
Karelian Diamond Resources (KDR) is raising £250,000 at 2.5p/share and the cash will be used for exploration for nickel, copper, platinum group metals in Northern Ireland and diamonds in Finland. Peterhouse has been appointed as broker.
MAIN MARKET
Cadmium-free quantum dots developer Nanoco (NANO) has concluded its litigation with Samsung, and it has funds to move towards commercial production. The net litigation proceeds are $90m. The second tranche will be received next February. There are plans to return £33m-£40m (10p-12p/share) to shareholders after this. Contract terms are under discussion for the first commercial order, and they should conclude by the end of 2023. In the year to July 2023, revenues jumped from £2.5m to £5.6m with the main growth coming from recognising licence fees related to the Samsung litigation.
Apax Partners is bidding 110p/share for Kin & Carta (KCT), which is a 41% increase on the pre-bid share price. The share price has not been this high since March, but the bid is less than 50% of the 2023 high ahead of the February profit warning. The bid values Kin & Carta at £203m.
Online travel agency Hostelworld (HSW) increased full year guidance in its third quarter trading statement. Nine months revenues are 38% ahead at Euro75.2m. The EBITDA guidance range has been raised from Euro16.5m-Euro17m to Euro17.5m-Euro18m, up from Euro1.3m last year.
Property investor Town Centre Securities (TOWN) announced net tangible assets falling by 15% to 284p in the year to June 2023. It outperformed the benchmark property index. The greatest value declines in the portfolio related to car parks and offices. The loan-to-value has declined to 45.8% following disposals. The total dividend for the year is 5p/share.
Kitchenware retailer ProCook Group (PROC) says revenues fell 4% to £26.3m in the first half. This was helped by a good summer performance, but trading has been tougher in September and October.
Andrew Hore
Quoted Micro 4 September 2023
AQUIS STOCK EXCHANGE
Valereum (VLRM) says the takeover of the Gibraltar Stock Exchange will go ahead in September. In the middle of September, a US fund is due to provide funding of £5m-£8m in two tranches. Trading in the shares has been suspended ahead of the publication of an admission document, which is likely to be in early October.
Fibre optic cables materials supplier Unigel Group (UNX) reported a dip in interim revenues from £18.8m to £18m, even so pre-tax profit jumped from £442,000 to £852,000 due to lower overheads. There was a £244,000 cash inflow from operating activities. The market declined by 3% during the period because of a slowdown in 5G investment.
Marula Mining (MARU) has acquired ore sorters to expand processing capacity at the Blesberg lithium and tantalum mine. Two ore sorters will cost £1.74m in total. The target production is up to 50 tonnes/day of lithium spodumene product from existing stockpiles. An agreement has been signed for an initial sale of 27.5 tonnes of high-grade material from Blesberg. The sale price is $3/000/tonne, based on a minimum grade of 6%. The company is negotiating to cancel a previous offtake agreement with Southern Jade Resources.
Cadence Minerals (KDNC) has warned that the Sonora lithium project licences, where it owns 30% of the entity that owns them, could be cancelled by the Mexican government because of minimum investment obligations between 2017 and 2021. Evidence of the spending may not have been submitted when required. This is subject to appeal. WH Ireland has already put a cautious value on the asset because of this uncertainty.
Psychedelic substances investment company Clarify Pharma (PSYC) had net assets of £1.1m at the end of May 2023. Cash had fallen to £183,000 at the end of August.
AQRU (AQRU) continues to reduce the number of employees and streamlined its investment pipeline. The main digital asset businesses have been injected into Langland Software Solutions in return for a 30% stake. Three directors are leaving the board, including Phil Blows who controls Langland. AQRU retains individual stakes, plus cash and crypto tokens.
KR1 (KR1) had net assets of 48.13p/share at the end of July 2023. There was income of £572,000 generated during the month.
Shareholders of Oscillate (MUSH) voted against voluntary liquidation. Net assets were £2.95m at the end of May 2023, including £1.17m in cash.
PanGenomic Health Inc (NARA) had net liabilities of $1.45m at the end of June 2023.
Clean Invest Africa (CIA) has received £200,000 from the convertible loan note issue. This will provide additional working capital. Pascal Portmann has become a non-exec director.
Black Sea Property (BSP) has raised €7.56m through a loan note issue.
Andrew Offit has taken a 4.8% stake in NFT Investments (NFT).
AIM
Pharma IT systems supplier Instem (INS) is recommending an 833p/share cash bid by Ichor Management, which is controlled by funds managed by Archimed SAS. The bid is still below the share price peak of 905p in September 2021. Instem is valued at £203m. The board believes that private ownership will provide greater access to capital to fund acquisitions and growth.
SailPoint Technologies UK is bidding 2.35p/share for Osirium Technologies (OSI), which may be nearly double the previous market price, which was an all-time low, but it is well below the share price peak of 201p during the 4 May 2016, less than one month after it joined AIM. The bid values the cyber security company at £3.11m. SailPoint Technologies believes that the business will fit well with the SailPoint Identity Security Platform. A unified platform will be developed for securing privileged and non-privileged identities for customers and there will be enhanced regional opportunities.
Frasers Group (FRAS) continues to build up its stake in online fashion retailer boohoo (BOO) from 9.1 to 10.4%. Frasers has also edged up its interest in ASOS (ASC) from 19.3% to 19.8%, although 9.2% is held through financial instruments.
Sustainable wood products supplier Accsys Technologies (AXS) made a strong start to the financial year, but it warns that demand from the construction market is declining. Sales volumes for the year to March 2024 will be worse than expected and profit will be much lower than anticipated. Operating costs are being reduced.
Revolution Beauty (REVB) has appointed Lauren Brinley as chief executive. The beauty and cosmetics products supplier also published its 2022-23 accounts. Lauren Brindley was until recently head of American retailer Walgreen’s beauty and personal care operations across its stores and online. Prior to that she worked at Boots and Tesco. Revolution Beauty has new distribution agreements with Walgreens and Boots. In the year to February 2023, revenues edged up 2% to £187.8m, while the loss reduced from £45.9m to £33.9m. That masks improved trading in the second half. First quarter sales were 60% higher, but there was destocking in the corresponding period last year. EBITDA was £3.5m in the period. Net debt increased to £21.5m.
Rosslyn Data Technologies (RDT) raised £2.7m from a placing and subscription at 0.5p/share and a retail offer to existing shareholders could raise up to £500,000 more. On top of the share issue, there is a proposed issue of 10% convertible loan notes to raise £600,000 from Hargrave Hale AIM VCT, Octopus AIM VCT and Octopus AIM VCT2. The conversion price is the lower of 0.5p or the issue price of another fundraise. There are also plans for a 50-for-one share consolidation. There will be a resolution at the general meeting on 18 September to gain shareholder approval.
Summary results for the phase II dose ranging study assessing Orenetide for hypoactive sexual desire disorder were disappointing and that has hit the Ovoca Bio (OVB) share price, which slumped 78.7% to an all-time low of 2.4p. The results of the study in Australia and New Zealand show that the treatment was not statistically significantly better than placebo. The ckinompany will have to decide how to move forward with the product and whether it should continue development. Ovoca Bio had €2.6m in the bank at the end of July.
Kinovo (KINO) says that it would not recommend a 56p/share bid from Rx3.
Linear Generator technology developer Libertine Holdings (LIB) says fees expected from Hyliion may not be recognised this year. This means that the loss would be higher than the £2.6m forecast. The first phase of development is complete and Hyliion has a six-month option period to negotiate IP rights. Work on the MAHLE powertrain was completed later than scheduled. There is £1.2m in the bank, which should last until May.
Application specific integrated circuits designer Sondrel Holdings (SND) has been hit by contract delays. Three major customers have delayed development for 6-12 months because of economic uncertainty and concerns about consumer confidence. Interim revenues will be 17% higher at £9.3m, but the full year forecast has been cut from £28.4m to £13m. Sondrel is likely to move into a net debt position by the end of 2023, but this should be temporary.
EnSilica (ENSI) has secured a $2.4m contract with an existing European customer for the development of an advanced networking ASIC. Most of this revenue will be recognised in the year to May 2024, which underpins forecasts. It has also won a €2.5m contract for its satellite broadband chip.
Pelatro (PTRO) will ask shareholders to vote to cancel the AIM quotation because of the cost and the inability to raise cash. The general meeting will be held on 21 September. Finance director Nic Hellyer is leaving the board. A matched bargain facility will be put in place.
Star Energy (STAR) is moving into geothermal project development in Croatia. This is part of the company’s move to refocus from gas to geothermal energy. A 51% interest in A14 Energy is being acquired for €1.3m in cash plus €300,000 back costs. A14 owns the Ernestinovo licence in the Pannonian Basin in Croatia. Bids have been placed for further licences. Up to €1.5m more is payable if the licences are granted.
MAIN MARKET
Networking and biomedical technology company BATM (BVC) grew interim revenues by 5% to $60.2m and gross margin improved. Pre-tax profit improved from $1m to $2.3m. Cash declined to $41.9m at the end of June 2023.
RegTech Open Project (RTOP) was the biggest riser in the Main Market last week. The share price rose 55.4% to 172.5p, having joined the market on 25 August at 100p. This values the business and operational resilience software company at £103.5m. The underlying business generated revenues of £1.1m in 2022, down from £1.31m in 2021, due to a fall in operational resilience fees. The operating loss increased from £930,000 to £2m. RegTech Italy, which is part of a group that owns 65% of RegTech Open Project, is providing a shareholder facility of up to £8m with an initial cash drawdown of £2m that will help to pay the expenses of the listing. The company estimates total directors’ remuneration of £505,000 over the next 12 months.
Andrew Hore
Quoted Micro 28 August 2023
AQUIS STOCK EXCHANGE
Pharma C Investments (PCIL) has received a general meeting requisition from one of its shareholders. The directors are reviewing the request.
Technology marketing start-up Inteliqo (IQO) generated income of more than $400,000 and pre-tax profit of $250,000 from the distribution rights of the Langaroo app, which has still to be launched on Google Play and the Apple app store.
Macaulay Capital (MCAP) has realised one of the five investments it took on from Chelverton Asset Management. Qualification Check B shares were bought by a trade buyer, and this will generate fees that will be shared by Macaulay Capital and Chelverton Asset Management. The net amount receivable by Macaulay Capital is £212,000.
Guanajuato Silver Company (GSVR) generated record production of 941,338 silver equivalent ounces in the second quarter and all-in sustaining cost was $22.47/ounce. Realised prices improved on the previous quarter. There was a small dip in net loss of $8.5m. Drill results from the Topia mine in Durango, Mexico have been promising.
Capital for Colleagues (LON: CFCP) investee company Bright Ascension provides software for the space sector, and it has been selected to lead onboard and ground software development for the three-year OS2-VOLT mission. This OS2-VOLT mission is being led by another investee company, Craft Prospect.
Marula Mining (MARU) has moved to the Apex section of the market. The construction of the initial modular processing plant for the Kinusi copper mine has been completed and is ready for transportation and commissioning.
Rogue Baron (SHNJ) raised £50,000 at 0.75p/share.
Coinsilium Group Ltd (COIN) chief executive Eddy Travia bought 1.5 million shares at 1.25p each.
Andrew Offit has taken a 4.77% stake in AQRU (AQRU).
AIM
Education software and services provider Tribal (TRB) reported a 2% increase in interim revenues even though the NTU project has been cancelled. Annualised recurring revenues are 3% ahead at £51.9m. The NTU project is still the subject of dispute, but there will be no more non-legal costs. The second half is expected to be better and pre-tax profit is forecast to recover from £3.7m to £9.1m.
Loyalty technology provider Eagle Eye (EYE) has revealed that a previously announced three-year contract is with department stores operator Hudson Bay Company, which was formed in the seventeenth century and who’s backers included Prince Rupert. Hudson Bay Company will relaunch its digital loyalty programme using Eagle Eye technology.
Fulcrum Utility Services (FCRM) intends to seek shareholder approval to leave AIM. This announcement followed the release of full year figures showing an increased loss. The utility infrastructure business reported a £25.7m loss on a 18% decrease in revenues to £50.6m. Even excluding write-downs and restructuring charges there was a loss.
Compliance and maintenance services provider Kinovo (KINO) revealed a non-binding bid approach from Rx3 Holdings, which the bid target said was at 56p/share. Management says that the offer is at the lower end of board expectations. Rx3 has confirmed that the offer price will be at least 40p/share, because 29.9% shareholder Tipacs2 Ltd recently bought shares at that price from Western Selection (WESP).
Wellhead equipment supplier Plexus Holdings (POS) says a £5m rental contract for POS-GROP HG wellhead equipment and sealing technology announced in March has been increased in value to £8m. These revenues will be recognised in the year to June 2024, which should enable Plexus to move into profit. The 2021-22 revenues were £2.31m and they are expected to decline in 2022-23.
Bivictrix Therapeutics (BVX) has been granted a US patent for lead asset BVX001 and it expects to gain a Japanese patent in a few weeks. BVX001 is an antibody drug conjugate than targets leukaemia.
Cake Box (CBOX) reported like-for-like sales growth of 6.8% in the first 17 weeks of the financial year. That represents an acceleration of growth in recent weeks as marketing is stepped up. There are 212 outlets with scope for more. After paying the final dividend there is £6m in the bank.
Redx Pharma (REDX) says zelasudil (RXC007), an oral, selective Rho Associated Coiled-Coil Containing Protein Kinase 2 (ROCK2) inhibitor, has received Orphan Drug Designation from the FDA for the potential treatment of Idiopathic Pulmonary Fibrosis (IPF). The treatment is being used in a phase 2a clinical study for IPF and data is expected in the first quarter of next year. IPF is a disease of the lungs which progressively causes scarring and a reduction in lung function.
Neometals (NMT) says battery recycling joint venture Primobius has received an order for 10 tonne/day of lithium-ion battery recycling spoke with Mercedes. The facility will recover lithium, cobalt, nickel, manganese and other materials and feed them back into production of 50,000 batteries for new Mercedes vehicles. This is important because it will help the joint venture to gain credibility and win more business.
Cybersecurity firm Shearwater Group (SWG) has delayed publication of its full year results due to audit delays. They are set to be published on 5 September. On a brighter note, delayed contracts have been received in the first quarter of the new financial year. Market conditions are becoming more favourable.
Coro Energy (CORO) has sold its 18.76% stake in ion Ventures for £1.25m in cash, of which £250,000 is deferred until March 2024. The book value was $259,000.
MAIN MARKET
Graft Polymer (UK) (GPL) signed a manufacturing services agreement for production of haemostatic wound care products. The partner is in the Israel pharma market and the Graft Bio facility will provide manufacturing services for the partner’s patented haemostatic powder. This changes from a self-emulsifying powder to a gel when coming into contact with blood, thereby helping to clot the blood effectively.
Ferro-Alloy Resources (FAR) warns that problems with the delivery of concentrate material to its secondary processing facility will hit third quarter results. This follows record second quarter vanadium, molybdenum and nickel production.
Zamaz (ZAMZ) is changing its name to Dispensa, although the strategy remains the same. It will acquire growing, speciality food brands.
Ashington Innovation (ASHI) has signed heads of terms for the acquisition of Calon Cardio-Technology. Calon is developing a left ventricular asset device, an implantable heart pump for patients with severe heart failure.
Mode Group Holdings (MODE) is changing its name to R8 Capital.
Andrew Hore
Quoted Micro 31 July 2023
AQUIS STOCK EXCHANGE
Oberon Investments (OBE) reported a decline from £6.7m to £5m because of lower share dealing and capital markets income. The loss increased from £581,000 to £3.9m, which was predominantly down to one-off reorganisation and transaction costs. Management is confident that acquisitions and new teams will enable revenues to grow to more than £8m this year.
VSA Capital (VSA) says it had a better than expected first quarter to June 2023, but it still expects an interim loss. VSA Capital owns 0.85% of Silverwood Brands (SLWD), which is being sued by cosmetics company Lush concerning the acquisition of shares by Silverwood Brands and whether the transfer of ownership is valid.
TruSpine Technologies (TSP) has made th4e FDA 510k submission for the Cervi-Lok spinal stabilisation device. The FDA will take up to 90 days to make a decision. If clearance is received, then marketing can commence. The medical devices company has limited working capital.
Gunsynd (GUN) is providing funding of £1m in Metals One in return for a 25% stake in Finnaust Mining Northern. This investment is dependent on Metals One joining AIM and the simultaneous acquisition of Finnaust and will be provided in four tranches over 18 months. Gunsynd has sold 440,000 shares in Charger Metals, raising £100,000. It retains 2.54 million shares. Gunsynd will also receive 1.5 million warrants in Metals One.
Healthcare IT provider DXS International (DXSP) increased full year revenues by 3% to £3.4m. There was a pre-tax loss, but that was more than covered by R&D tax credits. There was £372,000 in the bank at the end of April 2023 and £500,000, before expenses, has been raised since then. Full year revenues expectations have been reduced to £3.8m and another loss is forecast.
Wheelsure Holdings (WHLP) has finally reported it figures for the year to August 2022. Revenues improved from £144,000 to £197,000, while the loss reduced from £224,000 to £202,000. Trading in the hares remains suspended until the latest interims are published. Wheelsure needs to raise additional working capital. The Tracksure digital fastener and Tracksure dual thread technology products have been developed.
Marula Mining (MARU) has appointed Angeline Greenwood and Richard Lloyd ahead of the proposed move to AIM. The latter will be an executive director. Quinton van der Burgh will be joining as chairman. Hannah Wang’Ombe and Munyaradzi Murape will be appointed as directors after regulatory clearance. Assay results from the Kinusi copper mine have been delayed until early August.
Invinity Energy Systems (IES) is selling a 0.2MWh Invinity VS3 flow battery system to VSUN Energy, a subsidiary of Australian Vanadium Ltd. The system will be used by power provider Horizon Power in Western Australia. There will be a trial to assess how the system works within the regional energy system.
Ananda Developments (ANA) has launched its first two cannabinoid medicines to the unlicensed market. Three private pain and medical cannabis clinics will offer the products. MRX1 will be used in two double blind randomised control trials run by the University of Edinburgh.
Apollon Formularies (APOL) has signed an exclusive licence agreement with South Africa-based medical cannabis company PureCann, which will produce and distribute the Apollon product range. There is a one-off licence fee of £100,000 and an ongoing royalty of 6% of profit on sales during the licence term. The roll out should be in the fourth quarter. There could be sub-licensing revenues.
KR1 (KR1) revealed an investment of $300,000 in Side Protocol as part of a pre-seed funding round. According to KR1, “Side Protocol is a distributed mesh liquidity system that utilises innovative inter-blockchain asset exchange application protocols. Unlike liquidity hubs, Side Protocol aims to decentralise liquidity between diverse blockchain networks in a bridgeless manner while maintaining interconnectivity”.
Decentralised finance technology investor AQRU (AQRU) generated interim revenues of £106,000 and lost £1.26m. Net cash was £7.4m at the end of April 2023, including £5.8m of customer deposits. The business has been streamlined and customers have to deposit at least $250,000. NAV is £5.43m. Digital asset prices are recovering. There are investments worth £3.59m, including a stake in fully listed Streaks Gaming worth £2.21m.
Eight Capital Partners (ECP) intends to give holders of the Euro 10m of outstanding 4.8% loan notes into shares at the weighted volume average price in the ten trading days prior to the implementation day. This could represent 10.4% of the nelarg4ed share capital. A general meeting will be held on 10 August.
Black Sea Property (BSP) had a NAV of 1.59 cents/share, while net debt was Euro19.7m. This is before the agreement to acquire 98.3% of Grand Hotel Varna.
ChallengerX (CXS) continues to lose money and had £48,000 in cash at the end of June 2023. Additional funds will be required to develop its marketing platform. NAV is £170,000.
ProBiotix Health (PBX) is appointing Niels Peter Bak as technical project manager. He has nearly three decades experience in the probiotics sector.
AIM
Safestyle UK (SFE) says interim trading is in line with forecasts, but the loss is much higher. Demand has been hit by increasing interest rates and that means that the second half will be poor. The windows supplier has been hit by a lower number of installations and a decline in the average number of frames for each installation. Costs savings have helped to offset the decline, but Zeus has downgraded its 2023 forecast from a pre-tax profit of £2m to a loss of £5.5m.
Wandisco (WAND) shares slumped 93.1% to 90p after the data software company returned from suspension. Wandisco recently raised £23.8m at 50p/share. The share suspension came about because of fraudulent irregularities in its accounts. There were $115.5m of false orders in 2022 and $14.9m of this was recognised as revenues. The additional cash raised will help to boost sales and marketing. The interim chief executive is in place and two non-execs have been appointed.
Battery technology developer AMTE Power (AMTE) announced it has secured a £1m loan facility from Arena Investors, which has relinquished conversion rights on the £3.75m convertible bond in return for warrants over 2% of the enlarged share capital. This latest loan will provide time to complete a £2.5m subscription by an unnamed investor at an indicative price of 1.7p/share, subject to due diligence. The new investor would own 80% of AMTE Power and there will be enough cash until September.
David Craven and Jean-Paul Rohan are joining the board of Itsarm (ITS) and the winding-up petition has been withdrawn. James Sharp and Richard Monaghan are stepping down without compensation and are not being paid fees for July. A new proposal reduces liabilities to around £140,000 and current cash is £223,000. The company is a shell and trading in the shares will be suspended if it does not find a takeover candidate by 27 September.
WH Ireland (WHI) has raised £5m at 3p/share because of a lack of regulatory capital. The broker is loss making and it does not believe that trading is going to improve this year. Cash outflows meant that WH Ireland did not have the required regulatory capital and the FCA may have required a solvent wind down of the business if cash were not raised. This is why the placing discount to the market price was high. There are plans to reduce annual overheads by up to £4m.
SRT Marine Systems (SRT) reported lower than expected 2022-23 loss of £200,000 and it is set to return to profit this year. Large contracts for systems and steady growth of tranceiver shares mean that revenues should jump from £30.5m to £70.9m and a pre-tax profit of £7.4m is forecast with further growth to come next year.
Franchise Brands (FRAN) combined organic growth and a ten-week contribution from Pirtek, which was acquired during the first half, to grow interim revenues 57% to £69.8m. In the six months to June 2023, underlying pre-tax profit rose 45% to £8.6m, although a higher tax charge and the additional shares in issue to fund the Pirtek acquisition meant that earnings were 4% ahead at 4.24p/share. The interim dividend is 11% ahead at 1p/share. Net debt was £79.1m at the end of June 2023. The consumer franchise business is no longer being marketed for sale.
Piling contractor Van Elle (VANL) reported full year figures in line with expectations with revenues increasing from £124.9m to £148.7m, while pre-tax profit jumped from £3.6m to £5.4m. Margins improved in general piling and ground engineering services. The total dividend is 1.2p /share. However, as previously flagged this year’s profit could be slightly lower and the tax charge higher. Some markets remain strong and there is a new Canadian rail business, but residential is weak.
Software training company Northcoders Group (CODE) has reassured investors about trading in the first half. Revenues grew by more than 50%. A further £4.5m of DfE funding has been secured, which helps to boost the order book. Northcoders is on course to achieve 2023 revenues of £9.5m and doubled pre-tax profit of £1.2m. The revenues are 70% covered by the order book.
BlueRock Diamonds (BRD) is being wound up administrators and any cash in the business will be distributed for preferential creditors. A party connected to the company is set to buy the assets.
RBG Holdings (RBGP) is writing off the value of £13.3m of its remaining litigation cases, including an unsuccessful case valued at £9.3m. Any return from the cases will be treated as revenues. The core business is taking longer to complete transactions. This has led to a reduction in the underlying 2023 pre-tax profit forecast to £5.9m and RBG has decided to reduce debt rather than paying dividends.
Sports consultancy and data services 4Global (4GBL) more than doubled its underlying pre-tax profit from £573,000 to £1.23m. There was strong trading at the end of the year and that meant that there was a sharp increase in work done that has not been invoiced. That led to a cash outflow in the period. Strategic partnerships with gym software company Jonas Fitness Inc and digital health provider Technogym will help to diversify revenues. First quarter trading has been strong.
MAIN MARKET
Data integrity and banking integration software provider Gresham Technologies (GHT) generated organic growth of 5% in the first half thanks to Clareti software wins. Clareti annualised recurring revenues are 10% higher at £28.6m and the rate of growth could accelerate in the second half. This will more than offset the loss of legacy product revenues.
Polymer and biopolymer solutions provider Graft Polymer (GPL) has secured a distribution agreement with US veterinary products supplier Inter-Technologies Inc, relating to the GraftBio self-nano emulsifying drug delivery system products. This is the first move into the US.
Vanquis Banking (VANQ) reported an underlying loss of £5.5m in the first half, compared with a profit of £54.3m, according to Shore Capital. The net interest margin fell from 21% to 18%, while the impairment charge increased from £38.5m to £85.6m. The interim dividend has been maintained at 5p/share.
Andrew Hore
Quoted Micro 11 April 2023
AQUIS STOCK EXCHANGE
Aquis Exchange (AQX) has launched Aquis Equinox, which is a regulated market-grade 24/7 matching engine. Rival exchange models need to be shut down to perform resets and maintenance. Aquis Equinox will be offered via the cloud or on-premise. Chairman Glenn Collinson bought 7,500 shares at 400p each and 5,000 shares at 412p each. Chief executive Alasdair Haynes acquired 10,000 shares at 390p each.
Marula Mining (MARU) has observed high grade graphite mineralisation at Nyorinyori project in Tanzania. Results from sampling are expected in the second quarter of 2023. There have also been two major graphite prospects observed at the Bagamoyo project. Further mining licences could be added to the project. Site works at the 75%-owned Kinusi copper project are just starting and there are plans to install a copper processing plant. Brahma Finance has converted £265,000 of loan notes at 2p a share.
Invinity Energy Systems (IES) says it has delivered more than 11.4 MWh of batteries so far in 2023. There are more batteries due to be delivered to projects in Australia and California.
Gunsynd (GUN) reported a realised and unrealised loss of £305,000 in the six months to January 2023. Net assets were £3.28m, including cash of £304,000.
RentGuarantor Holdings (RGG) increased revenues by 92% in the three months to March 2023.
NFT Investments (NFT) says that its crypto assets are worth 2.77p a share at 2 April. The majority is in Bitcoin and Ethereum.
Walls and Futures REIT (WAFR) has sold Pax Homes to chief executive Joe McTaggart for £1. Pax Homes has acquired IP by issuing Walls and Futures REIT 100,000 5% preference shares redeemable on 1 April 2029. This IP was valued at £118,000.
Decentralised finance business incubator AQRU (AQRU) lost £5.94m last year and net assets fell from £12.2m to £6.56m by the end of October 2022. That includes cash of £4.84m. That was before the £2.3m invested in Streaks Gaming. The annualised cost base has been reduced by two-thirds.
TruSpine Technologies (TSP) has terminated a consultancy agreement with a company that provided the services of Frank Boehm, who was the inventor of some of the company’s spinal stabilisation systems technology. He is challenging the company’s ownership of the IP.
Several SunNOx Group (SNOX) shareholders have entered into option agreements with RemNOx over 24 million shares at 30p each. The option lasts until 29 September. That could take the RemNOx stake to 29.8%.
KR1 (KR1) says NAV was 68.22p a share at the end of February 2023, up from 30.6p a share at the end of June 2022.
Wishbone Gold (WSBN) says that it appears that the Red Setter project is a potential analogue of the 26 million plus ounce Telfer deposit 15kn north east of the project.
Oberon Investments (OBE) is raising £450,000 at 3.5p a share.
Six Capital for Colleagues (CFCP) directors and people closely associated with them have bought a total of 709,064 shares.
Trading in the shares of S-Ventures (SVEN) has been suspended because its accounts have not been published.
AIM
Reading-based Ocean Harvest Technology Group (OHT) joined AIM last week. The company produces ingredients for animal feed using seaweed. Although the business started in Ireland, the main trading business is in Vietnam. The brand name of the products is OceanFeed and there are different products for different animals. Management believes it has spent €20m on developing and commercialising these ingredient products. A placing raised £6m, or £4.5m after expenses, at 16p. That valued the company at £20.1m. In 2022, revenues grew from €2m to €3m and the loss increased from €1.46m to €2.9m.
Fadel Partners Inc (FADL) joined AIM last week and raised £7.55m at 144p a share. It provides rights and royalty management and brand compliance services. There is £4.6m set aside for boosting sales and marketing and services supporting them. There will also be funding for research and development.
Franchise Brands (FRAN) is making its largest ever acquisition and raised £92m from a share placing at 180p. This will help to finance the £200m purchase price for Pirtek Europe, plus working capital adjustment of £12.2m. Pirtek Europe provides on-site hydraulic hose replacement and other services through 213 service centres and 838 mobile service vans. There are 70 franchisees in eight countries and the company has the right to enter eight other European countries. Franchise Brands will have operations in ten countries. Forecast 2023 group revenues are £155m or £168m on a pro forma basis. Forecast 2023 group EBITDA is £29m.
Restaurants operator Fulham Shore (FUL) is recommending a 14.15p a share cash bid by Tokyo-based TORIDOLL Holdings. TThe bidder has revenues of around £1bn and already has European interests. It works with specialist private equity firm Capdesia in Europe. The takeover will enable greater expansion of the Franco Manca and The Real Greek brands.
Logistics firm Xpediator (XPD) has recommended the 42p a share bid that was initially proposed last year. The shareholders will also receive a special dividend of 2p a share.
Floorcoverings distributor Likewise Group (LIKE) continues to gain share in a tough market. First quarter revenues were 19.7% higher. Last April’s acquisition Delta Carpets was not included in the comparative period, but it is not a big business. Higher prices helped but there was significant underlying growth.
Linear generator technology developer Libertine Holdings (LIB) shares declined after management revealed delays in development work that mean that 2022-23 revenues could be up to £400,000 lower than the expected £1.32m.
Saietta Group (SED) won the largest ever order for its eDrive systems. The £5m order is for 3,000 bespoke systems based on the AFT140 motor from Nasdaq-listed urban delivery vehicles manufacturer AYRO. Saietta is exclusive supplier for the Vanish vehicle launched in February. First deliveries will be in the autumn and the full number delivered by the end of 2024.
Tungsten West (TUN) is restructuring the operations of its Hemerdon tungsten and tin project in Devon. Costs will be cut, and surplus assets sold. Concentrate already on the site will be sold. Project funding is being discussed. A convertible note issue raised £7m and an open offer could raise up to £2m.
Block Energy (BLOE) has improved its financial position, and the salary sacrifice scheme started in April 2020 has come to an end. Cash generation in building from the WR-B01Za, which is producing 274 barrels of oil/day. There is optimism about further wells.
MAIN MARKET
World Chess (CHSS) has been seeking to join the stockmarket since the end of 2019, when the business was starting to build up. It has arrived on the standard list having raised £3.04m at 6.25p a share. The share price ended the first day of trading at 6.5p (5p/8p). There were no trades reported. World Chess has the commercial rights to chess governing body FIDE’s online chess gaming platform, the Grand Prix series, the Candidates Tournament and the FIDE World Chess Championship. The Russia-based business was sold last year.
Aura Renewable Acquisitions (ARA) got had £809,000 in cash following a £236,000 loss in 2022 – mainly down to the expenses of the flotation. That means there is around 8p a share in cash, which is a premium to the market price. The flotation price was 10p. Cash shell Aura Renewable Acquisitions is still considering its first acquisition. The directors are not taking any fees and the ongoing expenses are minimal.
Andrew Hore
Quoted Micro 20 February 2023
AQUIS STOCK EXCHANGE
EDX Medical Group (EDX) acquired Torax Biosciences for the issue of 1.67 million shares at a notional 6p each. Torax provides development and pilot scale fabrication of immunochemistry-based assays and diagnostic testing services. The experienced team at Torax was an attraction.
Marula Mining (MARU) signed a co-development and relationship agreement with a subsidiary of South African mining and investment company Q Global Commodities, which had already agreed to subscribe £3.75m for shares. Q Global chief executive will become Marula Mining chairman, subject to regulatory approval and admission to AIM. Marula Mining is expanding its graphite interests through the proposed purchase of a 75% stake in ten licences comprising the Nyorinyori graphite project in Tanzania.
Electric vehicle drivetrains developer Equipmake (EQIP) reported more than halved interim revenues from £2.32m to £1.05m and the loss increased to £2.76m. There was cash of £7.44m at the end of November 2022. The contracted order book is worth £9.1m. That includes 100% of second half expected revenues as well. There have been delays in delivering vehicles to First Group, so these will be in the 2023-24 figures.
Energy supplier Good Energy (GOOD) has launched a new smart export product for Feed-in Tariff for FiT customers, which could help them to earn more from electricity they generate. There are plans for a new domestic export tariff for households in the next few months.
AQRU (AQRU) has incorporated the London Carbon Exchange and it has a wating list of investors interested in using the platform when it is launched later this year. The platform allows trading in the voluntary carbon market.
RentGuarantor Holdings (RGG) has entered a three-year agreement with X1 Property Management, a residential and student letting company, which hopes to generate secure tenants.
Digital asset investor Kasei Holdings (KASH) raised £500,000 at 12p a share from Aalto Capital. This is a 12.5% stake. ChallengerX (LON: CXS) raised £250,000 through a share issue to Aalto Capital at 0.45p a share. An equal number of warrants exercisable at 0.45p each were also issued.
Spirits company Rogue Baron (SHNJ) non-exec Charlie Wood acquired an initial 600,000 shares at 0.846p each. He also has an interest in the 1.1 million shares owned by Orana Corporate, where he owns 25%.
Hikmat El Rousstom has resigned as non-exec director of Ace Liberty & Stone (ALSP), while at British Honey Company (BHC) Sophie Guifang Luo stepped down from the board to pursue other interests.
Love Hemp (LIFE) has withdrawn from trading on the Aquis Stock Exchange as of 14 February. Trading in Pioneer Media Holdings Inc (PNER) will end on the Aquis Stock Exchange on 9 March.
AIM
Purplebricks (PURP) is launching a strategic review because the board believes the company is undervalued. The share price slumped to 7.86p, which is a new low. Changes to the estate agency business have disrupted the third quarter performance. Instruction numbers were lower than expected. Management has identified an additional £4m of annualised cost savings. There will be £1.2m of one-off costs in the second half. The full year adjusted EBITDA loss will be between £15m and £20m. It was previously expected to be around £10m.
Semiconductors designer EnSilica (ENSI) moved into operating profit in the first half and momentum has continued in the second half. A €5m contract has been won to develop a chip for the satellite communications market, which will start generating revenues in 2023-24. Interim revenues are nearly one-quarter higher at £8.59m. The growth came from design and supply. There was a pre-tax loss of £202,000, but R&D tax credits meant that there was a £322,000 profit after tax. A small full year pre-tax loss is forecast for the full year with a £844,000 post-tax profit.
Semiconductors designer Sondrel Holdings (SND) says the project design for a customer in the automotive sector has been delayed because project design will not be completed until the first quarter of this year. The payment for the first milestone was in January and the second will not be until May. The 2022 loss is higher than forecast and there will still be a small loss in 2023.
Esports company Gfinity (GFIN) raised £2m at 0.15p a share, having originally sought £1.5m. The cash should last for 12 months. Technology platform Athlos still requires a strategic partner and there is enough funding for this for around four months. If not, then it could affect the restructuring and other plans for the rest of the business. At 0.1575p, down 33%, the current share capital is valued at Gfinity at £2.1m. Each placing share comes with a warrant to subscribe for one share at 0.15p and these warrants are exercisable between six and 18 months after the placing shares are admitted to AIM.
Fertiliser producer Harvest Minerals (HMI) had cash of A$2.72m at the end of 2022. Sales of KPFertil are growing and that has enabled the repayment of A$1.2m of debt. A court ruling requires Agrocerrado to pay $463,000, because it failed to acquire the minimum tonnes of KPFertil required by the agreement between the companies.
Medical devices developer Creo Medical (CREO) raised £28.5m from the placing at 20p a share, which was more than the £25m initially targeted. The cash will be used for further development and commercialisation of Creo Medical’s minimally invasive electrosurgical devices. With up to £5.2m more to come from the open offer, Cenkos believe that this is enough cash to fully commercialise the current product portfolio. Revenues of £100m are forecast by 2027.
Clontarf Energy (CLON) is forming a joint venture with US-based NEXT-ChemX Corporation, which covers the deployment and marketing of the latter’s direct lithium ion extraction technology in Bolivia. There is limited water and energy consumption with this technology. The share price soared by 129% to 0.172p. Pilot testing and extraction starts in March. Clontarf Energy will contribute $500,000 towards the pilot plant for exclusive use of the technology. There will also be share issues to NEXT-ChemX.
Promotional goods supplier software platform provider Altitude (ALT) says results for the year to March 2023 will be much better than expected. Zeus has upgraded its pre-tax profit forecast from £500,000 to £800,000 and that is the second upgrade in three months.
Deferral of contracts by clients has led to forecast downgrades for Jaywing (JWNG) and 2022-23 pre-tax profit expectations have been more than halved to £1m, while next year’s forecast has been slashed from £3.7m to £2m. The digital marketing services provider won an Australian online education services contract which will help to offset some of the decline in forecast revenues in 2023-24.
Mkango Resources (MKA) raised £3.5m at 12.5p and this will fund further development of the Songwe Hill rare earths project. Talks with potential funders for the project continue. Mkango Resources will also provide a €2.5m loan facility in HyProMag, which is developing a rare earth recycling production facility in Baden-Wurttemberg. The company’s stake in HyProMag could increase to 66.8%. Chief executive William Dawes acquired 400,000 shares at 12.95p each and 400,000 shares at 12.75p each. He owns 4.42%
WH Ireland has reduced its forecasts for SaaS-based retail software provider itim Group (ITIM) because of contract delays. Revenues for 2022 will be slightly below previous forecasts and that increases the loss by £200,000 to £1.1m. The 2023 loss is expected to be the same. Annualised recurring revenues are £13m, which is lower than expected. Net cash is £3.9m.
Mark Horrocks has increased his stake in cloud-based international payments services provider Cornerstone FS (CSFS) from 8.66% to 13.4%.
Dekel Agri-Vision (DKL) achieved record local process for its crude palm oil in January and there were strong extraction rates from the fruit bunches. However, there were disappointing volumes because of aggressive rival bidding for fruit bunches, although this has eased this month. There no changes to 2023 expectations of a sharp rise in profit.
MAIN MARKET
The ignominious life of Hawkwing (HNG) as a quoted company appears to be coming to an end. Kroll Advisory has been appointed administrator to the company. Hanover Investment Management demanded repayment of £2.2m relating to a convertible loan note. Hawkwing is owed £13.7m plus interest and add-ons by IFG (SPP), where liquidators have been appointed. This is secured on two subsidiaries and their assets, but it is uncertain how much can be clawed back. The cash shell was formerly sports representation and marketing company TLA Worldwide, a past AIM embarrassment which released a profit warning after the market had closed for Christmas.
Zamaz (ZAMZ) has acquired Dallatte Italia, a manufacturer of dairy products. This fits with the Bella Dispensa subsidiary and its Made in Italy ecommerce service. Management wants to change the terms of its bonds by extending their life and increasing the interest rate.
Trading in Net Zero Infrastructure (NZI) shares recommenced last week following publication of accounts and interim figures. The share price fell from 2.2p to 1.55p.
RC365 Holding (RCGH) intends to issue 18 million shares to Hatcher Group Ltd and in return it will receive 38.64 million shares in Hatcher Group. The two firms will collaborate in research and development of smart algorithm technology and other fintech services.
Andrew Hore
Quoted Micro 30 January 2023
AQUIS STOCK EXCHANGE
Aquis Stock Exchange owner Aquis Exchange (AQX) says 2022 trading was in line with expectations. The 2022 results will be published on 30 March.
Electric vehicle drivetrain technology developer Equipmake Holdings (EQIP) has raised £6.235m at 5p a share. That was slightly more than initially indicated. A lease is being secured on additional premises. The contracted order book is worth £8.6m. Interim revenues were £1.05m and the full results will be announced on 15 February.
Invinity Energy Systems (IES) says existing contracts underpin growth in in 2023. There are £22m of vanadium flow battery systems due for delivery in 2023 and a further £7.4m order book for 2024. There was £5.1m of cash in the bank at the end of 2022. Pilot projects with Siemens Gamesa should begin in the summer and a next generation product should be available in the first half of 2024.
Cadence Minerals (KDNC) has completed the sale of its joint venture interest in Yangibana rare earths project for A$9m of shares in ASX-listed Hastings, which is equivalent to 1.9%. Evergreen Lithium is expected to list on the ASX on 10 March – Cadence Minerals owns 15.8 million shares, which are expected to be valued at A$3.96m.
A full year update from Chapel Down Group (CDGP) shows string growth in sparkling wine sales. Group revenues were 10% ahead at £15.6m with momentum increasing in the second half. Margins should have improved.
Ace Liberty & Stone (ALSP) reported a small dip in interim pre-tax profit to £731,000, partly due to additional charges relating to a property in Sunderland. There is available cash of £9.5m for further property investments and contracts have been exchanged on a Dorchester property.
Helium Ventures (HEV) had £157,000 in cash at the end of October 2022. The proposed acquisition of Vestigo Technologies, which supplies tracking software, continues to be progressed.
Goodbody Health (GDBY) is partnering with Datar Cancer Genetics to offer the Trucheck circulating tumour cell screening service.
Tap Global (TAP) has signed up its first client for its crypto app. Global cryptocurrency exchange Bitfinex will use the service to offer clients a prepaid Mastercard and convert cryptocurrency to Euros.
SuperSeed Capital (WWW) says the SuperSeed II LP has invested in eight SaaS companies and a further investment should be made in the first quarter of 2023.
RentGuarantor Holdings (LON: RGG) is licencing its software to Clever Student Lets to use on its student letting platform.
Guanajuato Silver Company Ltd (GSVR) has published fourth quarter production figures. Silver output was 401,000 ounces in the period, while gold output was 4,000 ounces. Full year production was one million ounces of silver and 11,000 ounces of gold.
AQRU (AQRU) has launched its lending pool via subsidiary Accru Finance. This allows investors to generate yield from tax credit receivables originating from the IRS in the US. Annual returns of up to 10% are indicated.
Good Energy (GOOD) was one of three energy suppliers criticised for not providing enough help to their prepayment customers to claim the £400 of support vouchers from the government.
Marula Mining (MARU) says that initial deliveries of 1,000 tonnes of high-grade lithium ore from the Blesberg mine will commence shortly and take four weeks. Processing of existing stockpiles is ongoing, while site infrastructure is upgraded.
Chris Akers continues to build up his stake in Asimilar Group (ASLR) and it has reached 8.01%.
AIM
Spectacles supplier Inspecs (SPEC) is expected to report slightly better than expected full year figures. The figures are still much worse than expected prior to the previous warning, where destocking and poorly performing businesses led to a significant downgrade. Sales were flat at $246m, although there was growth before currency movements. Pre-tax profit is set to more than halve from $17.9m to $7.7m.
Battery technology developer Ilika (IKA) has been awarded a UK government grant of £2.8m for taking a leading role on a 24-month Faraday Battery Challenge in collaboration with BMW and Williams. This will further the development of Ilika’s Goliath battery, which is designed to be cost-effective and recyclable. There were no surprises in the interims earlier in the week. In the six months to October 2022, revenues improved from £179,000 to £204,000, which all came from UK grants. Net cash outflow from operating activities increased from £2.19m to £3.84m. Net cash is £17.8m. The Stereax M300 miniature battery should be launched by the summer.
Results from aerospace composites kits supplier Velocity Composites (LON: VEL) were as expected following the trading statement at the end of 2022. In the year to October 2022, revenues were 22% higher at £12m, while the loss was flat at £1.5m. A further loss is forecast for this year, while the US deal with GKN Aerospace builds up later in the year. A full year contribution from the US GKN business should push the company into profit.
Fire Angel Technology (FA.) reduced its loss last year, even after higher procurement costs, and it expects significantly enhanced margins this year. The home safety products supplier increased 2022 revenues by nearly one-third to £57.5m. A further reduction in loss is expected this year with helpful currency movements providing potential for further upside.
Healthcare data analysis provider Diaceutics (DXRX) beat expectations with revenues 44% higher at £20m, helped by currency movements, and margins are being maintained despite inflationary pressures. Diaceutics has secured two agreements with top ten global pharma companies. The order book is worth £15.6m. Investment in data and technology is being increased.
Following the departure of the recently appointed chief executive Inland Homes (INL) has sold its greenfield strategic land portfolio. There was a £3.5m profit on the sale that raised £9.5m in cash. There will also be fees generated for assisting the purchaser. Despite the disposal, net debt has risen to £100m and trading conditions have deteriorated. The 2021-22 loss is expected to be £91m and NAV has fallen to 40p a share.
Fiinu (BANK), which offers the Plugin overdraft to individuals with accounts with other banks, has completed the core banking platform configuration and its testing. General testing of the service is continuing. There is £35m-£40m required to fund the bank and a staged fundraising will commence before Easter.
Piling contractor Van Elle (VANL) had already flagged the interims, but the pre-tax profit was still slightly higher than expected at £3.3m. The interim dividend is 0.4p a share. Full year pre-tax profit forecasts have been maintained at £5.2m, although next year’s figures has been trimmed to £6m.
Gaming Realms (GMR) has signed a brand licensing deal with Tetris Inc, the holder of the rights to the eponymous falling blocks game. Tetris Slngo mobile will be launched globally before the end of 2023.
MAIN MARKET
Oxford Cannabinoid Technologies (OCTP) is due to commence a phase 1 clinical trial for its lead programme OCT461201 for the treatment of chemotherapy induced peripheral neuropathy with the interim results due in the second quarter. Management says it has enough cash to get it into the first quarter of 2024. GHS Capital has reduced its stake to below 3%.
Motor dealer Pendragon (PDG) says fourth quarter trading is slightly ahead of expectations and this has offset inflationary pressures. Underlying full year pre-tax profit should be more than £57m, down from £83m for the previous year. Net debt is around £23m. There continue to be constraints in the supply of new vehicles.
One Heritage Group (OHG) expects a further impairment charge of between £750,000 and £1.25m. Martin Crews is being replaced as development director by Paul Westhead on an interim basis. The major shareholder loan facility has been raised from £9.5m to £11m.
Mode Global Holdings (MODE) is winding down its operations because it was unable to raise the cash it required to grow the business.
Andrew Hore
Quoted Micro 23 January 2023
AQUIS STOCK EXCHANGE
Oberon Investments Group (OBE) is acquiring 63% of Logic Investments Ltd, which provides back office services to investment managers. Logic has funds under management and administration of more than £275m and Oberon Investments will merge its own back office operations with Logic. A placing raised £1.75m at 3.5p a share. Chairman Alex Hambro subscribed for 1.14 million of the shares, taking his stake to 1.64 million shares. The cash will be used to accelerate growth.
GP IT systems supplier DXS International (LON: DXSP) reported a 2% improvement in interim revenues to £1.65m, while the loss was £131,000 due to higher depreciation and operating costs. There was £399,000 in the bank at the end of October 2022. Management options can be exercised if annual turnover reaches £5m in the next three years. Hybridan forecasts revenues 2022-23 revenues of £3.61m with a pre-tax profit of £86,000.
Cooks Coffee Company (COOK) says UK sales were 41% higher in 2022, while sales in Ireland were 91% ahead. The focus is generating better returns from existing café sites, although there will be some new openings.
Healthy snacks supplier S-Ventures (SVEN) says full year revenues were £8.7m, but the inability to obtain ingredients hampered sales income. The operating loss is £2.6m. The revenues were one-fifth down on initial expectations for the year to September 2022. Supply problems have eased, and price rises have helped to offset higher costs.
Marula Mining (MARU) has appointed Geofields Tanzania to commence copper exploration at the Kinusi copper project, where Marula Mining owns a 49% interest, and £80,000 has been raised from a warrant exercise. Initial exploration results should be published in the second quarter of 2023.
Hydrogen Future Industries (HFI) is investing in hydrogen production facilities developer Tower Green. It has spent £100,000 in cash and shares on a 20% stake and has the right to invest a further £50,000 for another 10% stake. Tower has an agreement with Element 2 to supply hydrogen fuel to fleet operators. Hydrogen Future Industries has developed wind-based hydrogen production systems.
Tap Global (TAP) continues to rise following the previous week’s completion of its reversal into Quetzal Capital last week. There was £3.1m raised at 4.5p at the same time, even though the market price had not been that high since May last year. Chief executive David Carr acquired 190,000 shares at 4.1p each and finance director Anthony Quirke bought 135,135 shares at 4.4p each.
Newbury Racecourse (NYR) lost money on the Great Christmas Carnival and the company is likely to make a small profit in 2022. The other parts of the business traded in line with expectations.
Quantum Exponential (QBIT) had £2.48m in cash out of net assets of £4.85m at the end of October 2022. There was a cash outflow of £313,000 in the previous six months.
Guanajuato Silver Company Ltd (GSVR) has restarted processing at the Cata mill at the Valenciana mine. The initial processing rate is around 8,000 tonnes/month.
Invinity Energy Systems (IES) says that its VFB technology has passed phase 1 requirements for UK government’s LODES competition, and it is submitting the application for phase 2. The competition offers £11m of funding to the winner.
AQRU (AQRU) says that Accru Finance is raising the threshold for minimum account deposits on its app to $250,000. This will reduce assets on the app, but hardly affect revenues. There will also be further cost cutting.
Rogue Baron (SHNJ) sold 930 cases of Shinju whisky in the fourth quarter of 2022. Revenues were $120,000.
Gunsynd (GUN) has raised £194,000 from partial disposals of stakes in three companies. Gunsynd has invested £150,000 in Strategic Minerals Europe, the holding company of Aberdeen Minerals, which is exploring for nickel-copper-cobalt deposits in north east Scotland. Shares were acquired at 2.5p each and Gunsynd has a 2.7% stake.
Hydro Hotel Eastbourne (HYDP) is paying a dividend of 23p a share, up from 21p a share last year.
AIM
Pawnbroker Ramsdens Holdings (RFX) did much better than expected in the year to September 2022. Group revenues increased by 62% to £66.1m, while pre-tax profit jumped from £564,000 to £8.27m. Net cash is £8.84m. The total dividend is 9p a share. Earnings forecasts for 2022-23 were upgraded by 5% following a 6% upgrade in October.
Regional legal firm consolidator Knights Group Holdings (KGH) reported a 19% increase in interim revenues to £71.2m and underlying pre-tax profit was also 19% ahead at £9m. This was achieved in a flat market. Net debt was £35.6m at the end of October 2022. The interim dividend is 153p a share.
China-based Hainan Mining is funding the Bougouni lithium project that is wholly owned by Kodal Minerals (KOD). A $100m investment will be made into a joint venture providing Hainan Mining with a 51% stake. The work on the construction of the mine will be overseen by Kodal Minerals. Hainan Mining is also subscribing $17.75m for a 14.8% stake in Kodal Minerals and that money will be spent on other projects.
Mirriad Advertising (MIRI) is launching a strategic review and potentially putting itself up for sale. The board of the programmatic advertising business believes that Mirriad Advertising is undervalued even though it continues to make heavy losses. Revenues were £1.51m in 2022 and there was £11.3m in cash, which should last until the third quarter of 2023. The strategic review will consider how the business should be funded from then on. In-content advertising is set to grow significantly, but Mirriad Advertising has to have the funding to take advantage.
Legal services provider Gateley (GTLY) generated organic growth of 10% and improved profit by 12% in the first half. In the six months to October 2022, group revenues were 22% ahead at £76.1m, helped by contributions from the new patent activities, while pre-tax profit improved from £8.5m to £9.6m. The dividend has been raised by 10% to 3.3p a share.
Musical instruments retailer Gear4Music (G4M) grew revenues by 5% in the third quarter despite strikes and weak consumer spending. UK sales were flat, and the growth was in Europe. Gross margins declined. A full year pre-tax profit of £1.1m, down from £5m, is forecast.
Inland Homes (INL) chief executive Donagh O’Sullivan has resigned after little more than one month in the job.
Panther Securities (PNS) is paying a special interim dividend of 10p a share. The property investor says that it expects net assets to increase by £19m in 2022, mainly due to the removal of two derivatives liabilities relating to interest rates on debt. Loan-to-value is less than 40%. Debt refinancing discussions will begin later this year.
Online women’s fashion retailer In The Style (ITS) was hit in December by price cutting by rivals and difficulties in delivering orders. Revenues in the quarter to December 2022 fell by 22%. Full year revenues are expected to be £46m, which is not much more than the £44.7m generated in the year before flotation. The EBITDA outcome is likely to be a loss of between £4.25m and £4.75m. There was £3.2m in cash at the end of 2022. On 8 December, In The Style launched a strategic review and that continues.
Rockfire Resources (ROCK) has entered into a joint venture with Sunshine Gold for the Plateau gold deposit in Queensland. Sunshine Gold will fund all exploration for three years. Rockfire Resources will focus on the Molaoi zinc deposit in Greece.
Circle Property (CRC) intends to return at least £30m to shareholders by March 2023. Three-fifths of the portfolio has been sold in 14 months. At 220p, the shares are trading on a discount to NAV of around 18%.
Upgrades for Equals Group (EQLS) continue to push the share price higher. The forecasts had already been upgraded in December and earnings per share have been increased by a further 4% to 4.8p, up from 2.8p in 2021. There was £15m in the bank at the end of 2022.
Crimson Tide (TIDE) revenues were better than expected and that reduced the forecast loss. The mobile as a service technology developer is still on course to breakeven next year. Annualised recurring revenues are £5.8m, which is more than generated in 2022. The US provides additional potential.
Shanta Gold (SHG) produced 65,209 ounces of gold at an all-in sustaining cost of $1,270 at the New Luika gold mine in Tasmania, which is just below guidance. Capital investment means that it could produce 66,000-72,000 ounces of gold at an all-in costs of $1,200-$1,300/ounce.
MAIN MARKET
LED lighting and wiring accessories supplier Luceco (LUCE) as 2022 revenues and profit are at the upper end of guidance. Strong cash flow reduced borrowings with net debt one-third lower than expected at £24m. The finance director is leaving and being replaced with non-exec Will Hoy.
Medica Group (MGP) revenues and profit for 2022 should be in line with expectations. Improved radiologist capacity helped revenues improve from £61.9m to £77m, while pre-tax profit is set to improve from £7.4m to £13m. Acquisition opportunities are being evaluated.
Andrew Hore