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UKIM Podcast – CEO Alan Green discusses #SHEL Shell, #AMZN Amazon, #AVCT Avacta and #AQX Aquis
Alan Green joins the Podcast as we delve into global equities and the key themes driving markets this week.
We discuss:
- Shell (LON:SHEL)
- Amazon (NASDAQ:AMZN)
- Avacta (LON:AVCT)
- AQUIS (LON:AQX)
We look at Shell’s record profits and what the company needs to do in future to support the share price. The company says it will invest their bumper profits in renewables, we question how realistic these claims are.
Amazon is feeling the pressure of a slowing global economy reflected in stuttering growth in their international sales. We look at whether Amazon will be seen as a momentum stock or value stock going forward.
Alan finishes by running through the latest news from Avacta and AQUIS.
Alan Green discusses news from Aquis, Castillo Copper & Airtel Africa
Alan Green discusses news from Aquis, Castillo Copper & Airtel Africa
Alan Green talks Open Orphan #ORPH, Aquis #AQX & Ananda Developments #ANA
Alan Green talks Open Orphan #
ORPH, Aquis #AQX & Ananda Developments #ANA
Andrew Hore – Quoted Micro 16 August 2021
AQUIS STOCK EXCHANGE
Yooma Wellness Inc (YOOM) has a dual quotation on the Canadian Securities Exchange and obtaining the Aquis quotation is part of the stated strategy to become the largest CBD business in the world. Acquisitions have been made this year and at least three more are lined up. Prior to joining Aquis, Yooma raised £7.46m at 52.32p a share. As well as the cash raised in the placing, there is an option granted to a strategic investor to subscribe £5m for 9.56 million shares. Administrative delays relating to the investor mean that the share issue has not been completed yet. Yooma Wellness says that annualised 2021 sales could be $32m if it makes the expected acquisitions.
Ecotricity has posted its offer document for Good Energy (GOOD), which continues to reject the approach.
Clean Invest Africa (CIA) is in discussions with a potential investor. A fundraising could be secured within weeks. There are also discussions concerning a joint venture. CIA has been hit by Covid-19 measures in South Africa.
Pioneer Media Holdings Inc (PNER) has made an additional investment in connected gaming platform developer Paidia eSports Inc and a new £200,000 investment in Streaks Gaming. Pioneer will own 40% of Paidia. London-based Streaks operates a conversational gaming platform. Users are matched with a personalised digital conversational partner generated by AI. Pioneer will own 16.1% of Streaks.
Sativa Wellness Group Inc (SWEL) increased revenues by 828% in the second quarter of 2021. Revenues in the six months to June 2021, revenues jumped from £733,000 to £4.86m, while the loss reduced from £2.37m to £1.27m. The business is being restructured into three divisions: Goodbody Botanicals, Phytovista and Goodbody Wellness.
Construction of the DJT Plants medical cannabis growing facility started on 4 July. Ananda Investments (ANA) continues to make progress with the purchase of the 50% of DJT it does not own.
Rutherford Health (RUTH) is partnering with genomic and theranostic company OncoDNA, which will enable its patients to obtain genomic testing that can help to secure the most appropriate cancer treatment.
Administrators have been appointed to NQ Minerals (NQMI).
Chris Akers has increased his stake in Oscillate (MUSH) from 3.1% to 9%. Thomas Grant Nominees owns 9.95%. Robert Johnson has a 3% stake in TECC Capital (TEC).
AIM
Drug developer BiVictriX Therapeutics (BVX) has a low capital cost model which outsources the main operations. It has a lead asset called BVX001, which is targeting adult leukaemia. BVX001 has already indicated an anti-tumour effect in animal models. No adverse effects were observed. The £7.5m raised at 20p a share will accelerate the optimisation of BVX001, so it reaches pre-clinical milestones. The share price ended the week at 23.5p.
Marlowe (MRL) has decided not to bid for Restore (RST), which has acquired PRM Green Technologies, which is an IT recycling business. This acquisition will be immediately earnings enhancing.
Crestchic revenues increased by 44% in the first half of 2021 and Northbridge Industrial Services (NBI) group revenues are 22% ahead at £19.6m. The 2021 pre-tax profit forecast was increased from £2.1m to £2.5m.
Self-storage sites operator Lok’nStore (LOK) is increasing occupancy rates and adding new sites. Self-storage revenues increased by 21% over the year to July 2021, which is well ahead of forecasts. The first half growth rate was 11%. Over the 12-month period, occupancy rates have increased from 69.6% to 85.8%.
Oil and gas producer Southern Energy Corp (SOUC) concentrates on areas with proven low-cost producing assets, with the current focus in Mississippi. The strategy is to grow production through acquisitions. Alberta-based Southern Energy plans to increase production to 25,000 barrels of oil per day over the next two year. This will require larger acquisitions than in the past. No cash was raised, and the shares will continue to be traded on the TSX Venture Exchange. The share price opened at 6.5p on the first day and stayed at that level until the end of the second day when it fell to 5p (4p/6p) and that price was maintained.
Science Group (SAG) has made a bid approach for TP Group (TPG). Science group has acquired a 10.2% stake in TPG, with the shares being acquired for 5p each.
Best of the Best (BOTB) says that there has been a 15% decline average weekly sales of competition entries. finnCap has cut its earnings forecast from 142.4p a share to 53.3p a share. There should still be £12m in cash at the end of April 2022.
Venture Life Group (VLG) says interim revenues were lower this year because of the lack of hand sanitiser sales and lower sales of Dentyl in China. Sales of other products grew. Forecasts have been updated for recent acquisitions. Share issues mean that earnings are expected to be flat at 2.5p a share. The full benefits of the acquisitions will come through in 2022 when earnings are expected to be 4.6p a share.
Verditek (VDTK) has raised £353,000 from its Crowd for Angels bond offering.
MAIN MARKET
Foams manufacturer Zotefoams (ZTF) improved its interim pre-tax profit by 49% to £4m even though it was reduced by currency movements. Footwear generates one-third of revenues. The new manufacturing site in Poland has opened.
Argo Blockchain (ARB) generated revenues of £31.1m from mining 883 bitcoin in the first half of 2021. Although revenues are improving, there will be higher than expected tax and finance charges this year. finnCap has reduced its 2021 earnings estimate from 7.6p a share to 5.6p a share.
Plaza Centers NV (PLAZ) has received a revised proposal from GC Hevron Capital. The company’s assets would be transferred to a trustee of managed for the benefit of bondholders. Hevron would be issued shares equivalent to 74.99% of the enlarged share capital. There will be a NIS 2 million payment to cover creditors. Hevron will then inject a new business, which is part of its investment portfolio, into the shell. The target is a nutritional food technology company.
Danakali (DNK) is cancelling its standard listing on 24 September and retaining its ASX listing.
Mast Energy Developments (MAST) has acquired Pyebridge Power, which owns a 9MW gas-powered standby generation facility, for £2.5m in cash. The site could generate EBITDA of £488,000 a year.
Hawkwing (HNG) is raising £16.5m through the issue of 8% convertible loan notes. They are convertible at 6p a share. The cash will be loaned to ecommerce aggregator Internet Fusion Group to finance two acquisitions – an outdoor lifestyle brand and an online fashion accessories retailer. Hawkwing plans to acquire Internet Fusion for an enterprise value of £115m through an issue of shares at 6p each. Trading in Hawkwing shares remains suspended.
Path Investments (PATH) has agreed to acquire DG Innovate for £32m in shares at 0.6p each. DG is developing electric motor technologies and energy storage systems. There is enhanced drive technology, which is being used to develop lightweight and cost-effective electric motors, and enhanced battery technology, which is developing fully-recyclable, sodium-ion batteries offering greater energy density than current technologies.
Andrew Hore
Andrew Hore – Quoted Micro 28 June 2021
AQUIS STOCK EXCHANGE
Good Energy (GOOD) says it is perming better this year than in the same period last year which included the start of the lockdown. Forward buying has improved margins. The smart meter rollout is accelerating.
Dispersion Holdings (DEFI) has invested C$200,000 at 18 cents a share in Defi Yield Technologies Inc. This gives it a 3.5% shareholding in the company that is developing a platform for decentralised financial services.
Altona Rare Earths (ANR) has raised £178,000 at 12p a share, which was a premium to the market price. Altona subsequently acquired up to 70% of the Monte Muambe rare earths project. It will take a 1% stake on signing the deal and increase it to 20% in phase 1 when £40,000 in cash is paid and one million shares are issued. In order to take a 70% stake a total of £240,000 in cash will be paid and three million Altona shares have to be issued. On top of this there are minimum expenditure commitments over three phases of the project.
Rogue Baron (SHNJ) says its bar in Washington DC increased sales by 38% to $225,000 in the three months to May 2021 even though capacity has halved. Trading in the shares has started on OTCQB.
Tectonic Gold (TTAU) is preparing to drill the Specimen Hill project in Queensland. There have been positive results from sampling and the structural modelling of the site has been completed.
Capital for Colleagues (CFCP) had net assets of 64.06p a share at the end of May 2021. It sold his investment in Anthesis Consulting for £1.15m during the period. There was cash of £2.65m at the end of May 2021.
DiscovOre (ORE) is changing its name to Oscillate. and it will focus on the medical psychedelic industry. This includes treatments for drug-resistant depression, anxiety, addiction and post-traumatic stress disorder.
Ananda Developments (ANA) expects to begin construction of a research facility in July. Strains of medicinal cannabis have been selected for research. Liberty Herbal Technologies has received a US patent for its vaping device.
CBD products supplier Sativa Wellness Group Inc (SWEL) has opened its 40th testing clinic for travellers and has introduced blood testing for Covid-19 immune response through some clinics. The clinics will be listed on the NHS Patient Access service.
Valereum Blockchain (VLRM) has raised £1m at 70p a share.
Virgata Services has extended its offer for Walls & Futures REIT (WAFR).
Tim and Charlotte Syder have increased their stake in Newbury Racecourse (NYR) from 4.5% to 8.7% and they appear to have been bought from Andy and Judith Stewart.
AIM
Printed circuit technology developer and supplier Trackwise Designs (TWD) has disappointed the market due to electric vehicle contract delays. Interim revenues more than doubled from £2.91m to £6.07m thanks to the initial contribution from Stevenage Circuits. A pre-tax profit of £200,000 in 2019 was turned into a loss of £400,000. There is currently net cash of £2.87m. The new factory should open later in the year.
Demand for Accoya wood continues to be strong, but Accsys Technologies (AXS) will not be able to increase production capacity until a new reactor is installed in the Netherlands later in the year to March 2022. In 2020-21, Accsys moved into profit and cash generation improved. A decision is awaited about how Accsys will make progress with the Hull Tricoya plant, where the contractor has resigned. Cash was raised in May to finance the US joint venture, but more cash may be required.
First Property (FPO) had to reduce the valuations of its owned Polish properties last year and that hit net assets. Management says that some of that valuation reduction should be reversed following a restructuring of the finance lease on one of the properties. NAV fell 22% to 42.8p a share at the end of March 2021 and it could improve to 48.8p next March. Loan to value is 45.3%. There is no final dividend.
In 2020, Dekel Agri-Vision (DKL) reported revenues of €22.5m and a reduced loss. The palm oil supplier will benefit from the higher palm oil price this year, enabling it to move into profit. The cashew plant will also make a contribution.
Musical instruments retailer Gear4Music (G4M) performed strongly last year, and revenues improved from £120.3m to £157.5m, while pre-tax profit jumped from £3.1m to £14.6m. This year will be tough, though. Pre-tax profit is forecast to fall back to £7.5m even though current trading is better than expected. The company has started buying existing brands. Premier is a drums brand and Eden is a bass amp supplier. Further acquisitions are likely.
Packaging manufacturer Robinson (RBN) says that revenues in the first five months of 2021 are 17% ahead of the same time last year. This is mainly due to an initial contribution from the Schela acquisition and passing on raw material costs – volumes are 1% ahead.
Jade Road Investments (JADE) had a net asset value of 67p a share at the end of 2020. There was an improved valuation of quarry company Future Metal Holdings. The three-year mining licence has been renewed and an independent assessment of the business will be published later this year.
Tristel (TSTL) has gained approval for foam-based surface disinfectant Jet from the EPA in the US. This will enable approvals to be sought with individual states. Tristel Duo, the disinfectant for ultrasound devices, has been approved in Canada and South Korea.
Vector Capital (VCAP) has raised £1.5m at 47p a share and this will be used for marketing and increasing the loan book. The cash raised at the end of 2020 has been deployed.
Location Sciences (LSAI) has given 12 months notice to its chief executive and finance director. They are continuing to work in the business.
MAIN MARKET
Nottinghamshire-based construction and infrastructure services provider NMCN (NMCN) has secured a highly dilutive rescue fundraising after falling into financial difficulties The company continues to lose money and the terms reflect the dire financial position. A £14m subscription is proposed, with a up to £5m more to come from an open offer. There is also a £10m convertible bridging loan – convertible at 20p a share and with fees and interest it equates to 62.4 million shares. Svella, which is run by former Stobart boss Andrew Tinkler, will subscribe for up to £7.4m of the subscription shares and provide the loan.
Fasteners supplier Trifast (TRI) reported slightly better than expected 2020-21 figures. Industrial activity is recovering. This year pre-tax profit is expected to improve from £11m to £12.9m.
Tirupati Graphite (TGR) has increased sales of its graphite products CarboflameX and GrafEN 45545 with trial and sample orders received. Land has been secured for a dedicated product development facility.
Cizzle Biotechnology (CIZ) has signed a deal to develop a companion diagnostic with St George Street Capital for certain of its potential autoimmune treatment assets that it has licensed. This deal takes Cizzle into a new area, but lung cancer remains the focus.
Zegona Communications (ZEG) is paying an interim divided of 2.6p a share. That is based on the dividend from Euskaltel and does not reflect the proceeds from the telecoms company’s takeover.
Andrew Hore
Andrew Hore – Quoted Micro 21 June 2021
AQUIS STOCK EXCHANGE
CBD and hemp seed oil products supplier Voyager Life (VOY) has confirmed its flotation on Aquis on 30 June and the 295 Seedrs crowdfunding investors from earlier in 2021 will have the chance to participate in the associated fundraising. Seedrs Nominees Ltd currently owns 14.6%. A shop will be opened in St Andrews in Scotland during July. Greencare Capital (GRE) has a stake in Voyager Life.
Eastinco Mining and Exploration (EM.P) has agreed a joint venture with a Rwandan partner to explore mineral opportunities in southern Rwanda. Eastinco will own 70% of Kinunga Mining, while the partner will have 30% as a free-carried interest. Along with Incanthera (INC) and TruSpine Technologies (TSP), Eastinco is being moved from the Apex segment to the Access segment.
Block Commodities (BLOC) has extended its option to acquire a 70% stake in medicinal cannabis licence granted to Magnus Cannabis Group. The exclusivity period lasts until the end of August. Block has issued shares to pay creditors £77,395.
Gunsynd (GUN) has invested £218,000 in two million shares in base metals and lithium exploration company Charger Metals Ltd, which is planning to list on the ASX. It will raise at least A$6m before the listing in the third quarter of 2021. Gunsynd has increased its stake to 3.6 million shares. Gunsynd has raised £93,000 by selling part of its stake in Empress Royalty Corp.
BWA Group (BWAP) lost £3.64m in 2020, mainly due to a £3.59m loss on revalued assets. NAV is £1.75m.
Altona Rare Earths (ANR) has three acquisition contracts under negotiation. Management believes it can secure additional projects in Mozambique, Angola, Tanzania and Uganda. Altona would acquire a stake of at least 51%. A Main Market listing is expected by September.
Cadence Minerals (KDNC) says that Macarthur Minerals, in which it has a 1% stake, is spinning-out its non-iron ore assets in Pilbara into Infinity Mining, which will float on the ASX. Singapore-based Jin Sung may invest in Infinity and/or Macarthur.
The first six resolutions were not passed at the Early Equity (EEQP) AGM. There will be no changes to the board.
Trading has been restored in the shares of Black Sea Property (BSP).
AIM
Open Orphan (ORPH) has completed the demerger of non-core infectious disease assets in the form of Poolbeg Pharma, which will join AIM next month. Shareholders on the Open Orphan register on 17 June will be given one Poolberg share for every 2.98 Open Orphan shares they own. The influenza treatment and vaccines developer will be making an offer to private investors via PrimaryBid. The shares distributed by Open Orphan will initially be held centrally by Croft Nominees and investors will not be allowed to deal in them until nine months after the AIM admission of Poolbeg.
Future Biogas has also confirmed its plan to float on AIM. It currently operates ten anaerobic digestion plants supplying clean biogas. Future Biogas wants to move from developing projects and selling them on to retaining ownership of some of the plants it develops. There are plans to construct up to 25 over the next six years. These plants can cost up to £20m each. The company hopes to raise £35m and it already has £5m in the bank.
Tatton Asset Management (TAM) is generating investment inflows of £100m each month and total assets under management have reached £9.5bn. This has been achieved even though face to face meetings remain relatively rare with online meetings still dominating. Tatton is benefiting from the trend for IFAs to move funds to discretionary fund managers. Full year revenues increased by 9% to £23.4m. Underlying earnings jumped 23% to 14.7p a share. Organic growth can be enhanced by acquisitions. The target is £15bn assets under management in three years time.
Access Intelligence (ACC) is acquiring ASX-listed media intelligence services provider Isentia and raising £52m in a placing and offer at 120p a share. This deal will more than double group revenues. In the year to November 2022, group revenues could reach £75m and the enlarged group could make a small profit.
There was a full year contribution from CSS in the latest IG Design (IGR) figures and this helped to increase the proportion of revenues from craft products. Revenues increased from $624m to $873m, while pre-tax profit was flat at $38.6m. The order book covers more than 60% of this year’s forecast revenues. The dividend is maintained at 8.75p a share.
Vianet (VIA) coped well with the decline in revenues in the year to March 2021 and it has limited its underlying loss to £2.8m. Vianet’s smart zones division had reduced charges to pubs while they were closed and since the relaxation of lockdown conditions these charges have been raised. New contracts are being won by the smart machines vending technology division. This means that revenues could bounce back from £8.4m to £14.8m this year, which could be enough to move Vianet back into profit.
Another earnings upgrade for K3 Capital (K3C) following its pre-close trading. The 2020-21 pre-tax profit forecast was increased from £12.9m to £13.9m and next year’s forecast has been raised from £13.5m to £14.6m. There is £14m in the bank.
ReNeuron (RENE) had to halt its trial for the lead human retinal progenitor cell (hRPC) project because one patient got an eye infection. It means that trail data could be delayed by three months. The cash should still last until after March 2022.
Kidney diagnostics firm Renalytix AI (RENX) generated revenues of $600,000 in the three months to March 2021. N+1 Singer forecasts revenues of $3.4m for the year to June 2021.
Local government and engineering documentation software provider IDOX (IDOX) reported interims in line with expectations and it remains on course to improve full year pre-tax profit from £10.5m to £12m. IDOX has sold its non-core operations and it is in a good position to acquire businesses in its core markets.
Dekel Agri-Vision (DKL) has purchased 1,500 tonnes of raw cashew nuts ahead of the completion of the cashew plant in Tiebissou. There will be further news about the plant in the next few weeks. Higher crude palm oil prices combined with good crops mean that Dekel remains on course for profitability this year.
MAIN MARKET
CML Microsystems (CML) reported a 17% decline in continuing revenues to £12.5m. The sale of the storage division enables CML to concentrate on its wireless communications technology. The addressable market is being expanded through the launch of SuRF products for microwave /mmWave applications. These products are currently being designed-in to the equipment made by customers. That means it will take time for revenues to build up. Net cash is £32.2m. The total dividend is 52p a share, reflecting the return to shareholders of part of the proceeds from the sale of the storage division.
Telecoms services provider Toople (TOOP) improved its interim gross profit by two-fifths to £470,000, even though revenues declined. Cash continues to flow out of the business and there is still some way to go towards breaking even. Additional sales staff are being taken on. There was nearly £1m in the bank at the end of March 2021. The £1.62m of loan notes and interest are not repayable until the end of 2022. Management is confident that it will have the backing of its investors if it secures a suitable acquisition.
Challenger Acquisitions (CHAL) has secured a new agreement for the acquisition of renewable energy company Cindrigo Energy. Cindrigo is undertaking an open offer to shareholders to raise up to £2.1m and these shares would not have been covered by the original agreement.
NMCN (NMCN) is in talks concerning a refinancing. There is a strain on working capital with two loss making water contracts and other problems. There will be a full year loss.
Triad Group (TRD) moved back into profit last year, thanks to the focus on higher margin consultancy work, and cash in the bank increased to £4.9m. The IT services provider is paying a 2p a share dividend.
HeiQ (HEIQ) has acquired Hong Kong-based Life Material Technologies for an initial $6.45m. This will enhance the antimicrobial technology part of the business. The acquired company’s additives are used in plastics, coatings, ceramics and textiles.
Andrew Hore
Andrew Hore – Quoted Micro 7 June 2021
AQUIS STOCK EXCHANGE
Chapel Down Group (CDGP) is raising up to £6.88m at 59.5p a share via a placing and crowdfunding offer. The directors and Michael Spencer have invested £1.43m in the placing. The rest of the cash will come via the crowdfunding with Seedrs. The financing will only go ahead if a minimum of £3m is raised. The wine maker wants to increase the scale of its winery so it can process more fruit and complete the planting of new acreage. Management also wants to improve the e-commerce capabilities. A new asset-based financing facility of up to £15m has been secured and it will refinance the HSBC debt. Chapel Down increased its revenues from continuing operations from £10.1m to £13.3m in 2020. The underlying pre-tax profit was trebled from £308,000 to £955,000.
TECC Capital (TEC) is a new shell that is seeking to buy technology or cannabis businesses. There is a wide list of potential sub-sectors that will be considered, including artificial intelligence and machine learning, telematics, life sciences, including cannabis products, cyber security and e-commerce, which includes the Internet of Things. TECC raised £1.1m, after expenses at 5p a share. There is pro forma cash of £1.15m, which is equivalent to just over 3.8p a share. Even so, the share price ended the week at 10p. Chris Akers owns 9.9%.
Pioneer Media Holdings Inc (PNER) is a Canada-based investment company with investments in eSports and mobile gaming businesses. It already has a portfolio of ten companies and a Canadian Stock Exchange listing. The shares floated at 45p each and they closed the week at 48p each.
Gledhow Investments (GDH) is raising £850,000 at 1.75p a share. That is at a 12.5% discount to the market price. Gledhow had net assets of £2.35m at the end of March 2021, including £374,000 in cash. That means it is a significant discount to net assets of nearly 4.8p a share. That figure will be significantly diluted by the new share issue. Gledhow does need to become bigger to warrant the quotation, though. Although it has a portfolio of investments, Gledhow would make a good shell for a business. Burns Singh Tennent-Bhohi has taken a 3.26% stake in Gledhow.
Non-executive director Dominic Burke has bought 10,000 shares in Newbury Racecourse (NYR) at 582.5p each. The racecourse will be able to have spectators at its 10 June meeting and if there is further easing of lockdown then the hotel and events businesses can reopen. Newbury Racecourse will continue to be loss making in the first half of this year. A joint venture has been set up with a subsidiary of Compass to provide catering for the racecourse and other businesses.
KR1 (KR1) has invested a further $200,000 in Automata, as part of a $2.4m financing. KR1 will receive five million ATA tokens and it already owned ten million tokens.
Startup Giants (SUG) increased revenues from £45,000 to £87,000 in 2020. Higher costs meant that the loss increased. However, there was a £9,000 cash inflow from operating activities. There was net cash of £651,000 at the end of 2020.
Wishbone Gold (WSBN) says that initial drilling of the Cottesloe silver project, which is close to the Red Setter project.
MiLOC Group Ltd (ML.P) has raised nearly £80,000 at 28.5p a share.
Capital for Colleagues (CFCP) directors Alistair Currie and Ed Jenkins have each bought 18,400 shares at 43.25p each. Currie owns 3.67% and Jenkins holds 0.75%. Chairman Jonathan Bixby has bought 1,000 shares in NFT Investments (NFT) at 2.9p each. Iain Livingston, the father of S-Ventures (SVEN) chief executive Scott Livingston, has sold 150,000 shares at an average price of 23p a share. Scott Livingston owns 49.1% and his family a further 3.5%.
AIM
Arecor Therapeutics (AREC) takes existing pharma products and reformulates them for new uses or to make them more effective. A placing raised £18.3m, after expenses, at 226p a share. The main focus is diabetes. Arecor’s insulin program AT247 is an ultra-rapid acting meal-time insulin product, while AT278 is an ultra-concentrated rapid acting insulin development, which could be used with miniaturised insulin pump delivery devices. AT299 is a co-formulation of pramlintide and insulin. These fast-acting insulins have an addressable market worth $6.4bn. There have been positive clinical studies for AT247. A phase II study should provide results in 24 months and that would be the point when a partner would be secured.
Artisanal Spirits Company (ART) owns the Scotch Malt Whisky Society (SWMS) and it raised £13.2m after expenses at 112p a share, which was at the bottom of the 112p a share to 121p a share price range. First quarter sales in 2021 improved from £2.9m to £3.4m, even though venues and events revenues continued to be well down during the period. There was cask whisky and bottled stock of £21.7m at the end of 2020. That is the main asset in the balance sheet and an independent valuation believes that this stock is worth £9m more than book value – based on an orderly liquidation.
Franchised lettings agency Belvoir (BLV) has acquired The Nottingham Building Society’s mortgage and protection services business for £600,000. This year’s operating profit is expected to be £175,000. The deal could add 1% to earnings in a full year.
Coral Products (CRU) had £3.8m in the bank at the end of April 2021. That should be boosted by the Haydock freehold sale, which should be completed in the second half. In the year to April 2021, revenues from continuing operations increased from £8.7m to £10.7m. Even excluding the profit on disposals of £2.3m, the pre-tax profit was £700,000. There will be a final dividend of 0.5p a share.
CyanConnode (CYAN) has raised £3.15m at 9.5p, taking advantage of the strength of its share price. This was a small premium to the market price. CyanConnode could have made progress in the smart meter market without the additional cash, but this will help to accelerate its growth.
Cleantech company Verditek (VDTK) is raising up to £500,000 through a bond offering 7% interest, secured against the assets of the company. The offer is via Crowd for Angels, which is underwriting the first £225,000 of the two-year bond. Verditek wants to expand its Italian facility so that it can satisfy international contracts for its lightweight, flexible solar panels. The focus is the solar operations, but there are also minority stakes in BBR Filtration and Industrial Climate Solutions Inc.
Housebuilder Springfield Properties (SPR) says that its 2020-21 revenues and profit will be better than pre-Covid-19 levels. This was helped by two land sales. N+1 Singer forecasts an improvement in pre-tax profit from £10.2m to £18m.
Internet domain name registry and services provider CentralNic (CNIC) generated organic growth of 16% in the first quarter of 2021. Total revenues jumped from $56.9m to $84.4m, helped by acquisitions. Net debt is $79m.
MAIN MARKET
Sportech (SPO) and CML Microsystems (CML) both intend to switch to AIM. Sportech believes that the junior market is more suitable for its size and it will make it easier to complete transactions. CML also believes that AIM is more suitable following the sale of one of its divisions and it also expects its shareholders to benefit from the tax breaks.
Tarek Taksch has reduced its stake in Oxford Cannabinoid Technologies (OCTP) from 7.75% to 5.43%. The company has entered a consultancy agreement with Voisin Consulting, which will help with regulation and development plans for OCT461201, a treatment for ailments associated with IBS.
Shefa Gems (SEFA) is demerging its gems business, because it will take longer than expected to exploit the assets, and turning itself into a shell. Existing shareholders will receive shares in the gems business. There will be a 100-for-one share consolidation and then the company will raise $1.05m (£756,000) at 3.53p a share. The name will be changed to Alef Bet Advanced Technologies and seek an acquisition in web technology and software.
Imperial X (CDL) has raised £2m at 3p a share as part of its move from Aquis to the standard list. The resources company is changing its name to Cloudbreak Discoveries.
Motor dealer Caffyns (CFYN) manged to improve its underlying profit from £251,000 to £1.88m last year, even though revenues fell from £195.8m to £165.1m. Net debt was £10.3m at the end of March 2021. There has been a property valuation that shows the portfolio is worth £12.3m more than book value. Excluding that surplus, NAV is £27.6m.
National Word (NWOR) has already secured annualised savings of £4m from the JPI Media acquisition and is on course to secure savings of at least £5m. The online audience is increasing, and monthly content revenues are being generated from Google and Facebook. Overall revenues increased by 18% in April and May. The fastest growth is from digital.
Andrew Hore
Andrew Hore – Quoted Micro 19 April 2021
AQUIS STOCK EXCHANGE
NFT Investments (NFT) is a shell that intends to invest a portfolio of non-fungible tokens (NFTs). An NFT is a digital file with a unique and verified identity held on a digital ledger or blockchain. The tokens can be bought with cryptocurrency and resold. Ownership of NFTs can be tracked and they can be set up so that the original owner gets a cut of any subsequent sale. NFT Investments will apply to be a small registered UK AIFM. NFT Investments raised £35m at 5p a share and it has net assets of 3.7p a share. The shares ended the first day of trading at 4.95p (4.8p/5.1p) after a significant number of trades.
Apollon Formularies (APOL) has completed its reversal into AfriAg Global via an all share offer. The business holds medicinal cannabis licences in Jamaica. Interim regulations allow the export of medicinal cannabis. Medicinal cannabis oils are being sold and medically supervised treatments provided. Management intends to use £1.1m of the funds raised to finance research and development. The rest of the cash raised will go on developing product sales, operating costs and market research.
Good Energy (GOOD) increased revenues by 5% to £130.6m in 2020. Gross margins declined and higher bad debts and increased depreciation meant that underlying pre-tax profit was £400,000, down from £2.1m. Net debt was £34.6m at the end of 2020. Dividend payments will resume this year.
Gunsynd (GUN) had net assets of £4.94m at the end of January 2021. That was before the flotation of spirits company Rogue Baron (SHNJ), which has increased the value of the shareholding. There was £1m in the bank prior to the recent sale of part of the Rogue Baron stake.
KR1 (KR1) has invested $250,000 into Equilibrium in return for 595,238 EQ tokens.
Eastinco Mining (EM.P) is conducting test work on orebody samples. Discussions continue with Noble Group about an offtake agreement for tantalum and tine from the Musasa project. There is $325,000 in the bank.
Clean Invest Africa (CIA) subsidiary CoalTech has signed development agreements to identify opportunities in China and Indonesia. It will own 20% CoalTech Far East and Daniel Lee the rest.
Love Hemp (LIFE) has increased the amount raised in the recent placing from £5m to £7m.
Chris Akers has increased his stake in Quetzal Capital (QTZ) from 12.3% to 14.1%. Sebastian Marr has taken a 3% stake in Rogue Baron (SHNJ).
AIM
AdEPT Technology (LON: ADT) has acquired Datrix for an initial £9m, with potential deferred consideration of up to £7m based on the growth of the business. The business provides cloud-based networking and cyber security services, and the two firms already work together. In the year to March 2021, Datrix is estimated to have generated revenues of £10.7m and pre-tax profit of £600,000. There should be £400,000 of annualised cost savings.
A £10m placing at 10p a share by Helium One Global (HE1) was oversubscribed. There was enough cash in the bank to drill three exploration wells at the 100%-owned Rukwa helium project in Tanzania in the next few months. The additional funds will enable the drilling rig to be retained for additional appraisal and more 3D seismic can be acquired.
Open Orphan (ORPH) is planning to demerge HVO-001, which is a small molecule, immunomodulator drug that could become a treatment for severe flu, and other non-core assets inherited from the merger with hVIVO. Shareholders will receive shares in the new vehicle which could be quoted on AIM.
Franchised lettings agency Belvoir (LSE: BLV) improved 2020 revenues from £19.3m to £21.7m, while pre-tax profit rose from £6.2m to £7.5m. Net debt was £3.7m at the end of 2020, although £4m has since been spent on the Nicholas Humphreys business. The property market remains buoyant.
Steel structures supplier Billington (LSE: BILN) still has a strong balance sheet with net cash of £13.9m. Last year, revenues slumped from £104.9m to £66m, while pre-tax profit dipped from £5.9m to £1.7m. The final dividend is 4.25p a share. There is a significant order book, but costs are increasing.
Gaming machine monitors and consoles supplier Quixant (QXT) returned to profit in the second half of 2020. Full year revenues fell from $92.3m to $63.8m, while pre-tax profit dipped from $10.7m to $1.3m. The Densitron displays business did well due to demand from medical and broadcast customers.
Iodine producer Iofina (IOF) says that quarterly production fell 17% to 108.2MT and the first half production is likely to be around 250MT. This is due to the cold weather and the lower than expected production is offset by higher iodine prices.
GYG (GYG) says that a German shipyard has gone into administration with more than £2m of invoices outstanding. This was announced after Harwood Capital said it is considering a bid for the superyacht painting and maintenance services provider of 92.5p a share.
For the first time since April 2017, Immunodiagnostic Systems Holdings (IDH) has published a trading statement at 7pm on a Friday rather than after 4.30pm.
MAIN MARKET
Mast Energy Developments (MAST) intends to develop a portfolio of reserve power assets. The first projects should be up and running this year. AIM-quoted, Africa-focused power projects developer Kibo Energy (KIBO) set up Mast Energy to buy and develop flexible power plants that will supply the reserve power market in the UK. A placing raised £5.54m at 12.5p a share when Mast joined the standard list on 14 April. Kibo still owns 55.4% of Mast.
NMCN (NMCN) has agreed a new £8.9m facility with Reflex Bridging Ltd. This is secured on property developments. The overdraft has been extended by Lloyds Bank.
BATM Advanced Communications (BVC) has secured a strategic partnership with albis-elcon, which will jointly offer the company’s network function virtualisation technology NFVTime.
Andrew Hore