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Quoted Micro 27 June 2022
good,
AQUIS STOCK EXCHANGE
Resolutions 8-12 were not passed at the Good Energy (GOOD) AGM, which were mainly enabling the company to issue new shares or buy back existing shares. Resolution 12 would have amended the articles of association to permit hybrid meetings.
Cadence Minerals (KDNC) has agreed to sell its 30% working interest in the Yangibana project tenements for £5.1m in shares of the ASX-listed operator Hastings Technology Metals. Cadence reported an outflow of cash from operating activities of £751,000 in 2021, down from £1.36m the previous year.
Blockchain and cryptocurrency investor Coinsilium Group Ltd (COIN) increased 2021 revenues by 130% to £530,000. Net fair value loss on financial assets was £407,000, compared with a gain of £566,000, but realised gains increased from £199,000 to £1.52m. Overall pre-tax profit fell from £310,000 to £14,000. There is £1.51m in the bank at the end of 2021, while NAV is £5.84m. Coinsilium has entered a simple agreement for future tokens (SAFT) with potential Latin America- focused blockchain gaming hub GGs.io for $100,000 of its future tokens and is a strategic adviser.
Pluto Digital has repaid the loan, plus interest, of £5.18m owed to NFT Investments (NFT).
All Star Minerals (ASMO) is raising £200,000 at 0.02p a share and every two shares come with a warrant to subscribe for a share at 0.04p. The cash will be used to finance investment in the company’s exploration projects. A further share issue at 0.02p pays £102,000 owed to GMI, where the All Star Minerals chief executive is a substantial shareholder. Management says that it is planning a much bigger cash raise.
Gunsynd (GUN) has agreed binding heads of terms with Metals One to farm into the Black Schist nickel zinc copper cobalt projects in Finland. In return for £1m, Gunsynd will earn 25% of the company owning the projects.
In 2021, Startup Giants (SUG) moved from a loss of £188,000 to a profit of £44,000. Current trading is in line with expectations.
Gowin New Energy (GWIN) had cash of RMB2.33m at the end of 2021, but it also had net liabilities. There are plans to trade agarwood products.
Wishbone Gold (WSBN) says that drilling at the Halo project in north Queensland has discovered copper mineralisation in the majority of holes drilled. The 21 hole is apparently the most promising.
Western Selection (WESP) has taken advantage of the Northbridge Industrial Services share price rise to sell 35,500 shares at 200.87p a share. It retains a 3.86% stake in the loadbanks manufacturer and renter, which changed its name to Crestchic (LOAD) later in the week.
Bondholders have approved the plan by Eight Capital Partners (ECP) to modify the terms and conditions of its 7% bonds.
Vulcan Industries (VULC) has raised £74,000 at 1p a share and issued additional shares for the acquisition of Aftech Ltd.
The wife of DXS International (DXSP) chief executive David Immelman has acquired 845,000 shares at 10p each, taking their interests to 11.85%.
Mark Horrocks has increased his stake in Quetzal Capital (QTZ) from below 3% to 5.3%. Chris Akers has raised his shareholding in Oscillate (MUSH) from 11.4% to 12.45%. Dowgate Wealth has a 4.9% stake in Silverwood Brands (SLWD).
AIM
Springfield Properties (SPR) has acquired the housebuilding business of Mactaggart and Mickel Group for a total cost of £46.3m. The initial payment is £10.5m and the rest will be paid over the next five years as homes are built on the sites acquired and sold. This way the deal should be self-financing. Six existing sites are being acquired as part of the deal and eleven will transfer as more payments are made. These sites have a gross development value of £230m.
Springfield is also acquiring a timber frame factory as part of the deal. It already owns a timber frame factory and 90% of the homes it builds have timber frames. Springfield’s capacity will double to 2,000 timber frames a year, which is more than enough for existing building plans, so outside suppliers will not be required any more.
In the six months to March 2022, Team (TEAM) revenues improved from £610,000 to £999,000, although there was an increased loss. The wealth management and financial services company acquired financial adviser Omega Financial Services in the first half and bought investment consulting business Concentric after the period end. There are other acquisition opportunities. There are opportunities to win new clients, but weak markets are holding back growth. Executive chairman Mark Clubb bought 5,004 shares at 63.9p each.
Property investor and fund manager First Property (FPO) returned to profit last year. In the year to March 2022, revenues reduced from £12.1m to £8.65m. That was mainly down to the loss of rental income from the Gdynia property. Asset management fees edged up from £3.35m to £3.46m and performance related fees jumped from £40,000 to £578,000.
There was a reduction of £7.81m in the amount owed to ING Bank, relating to the Gdynia property, and this was taken as a gain. Last year, there was a £7m write down on the property. That is why a loss of £5.09m was turned into a £7.98m profit. First Property is set to sell its properties in Romania and its supermarket properties in Poland. That will reduce net debt, which was £17.2m at the end of March 2022.
Insolvency litigation funder Manolete Partners (MANO) expects that the rising level of insolvencies will provide additional potential cases. In the year to March 2022, revenues declined from £27.8m to £20.4m. The realised revenues fell more sharply from £24.4m to £15.2m, with the main reason behind this being the large case with realised revenues of £9.3m in the previous year. Unrealised revenues increased from £3.41m to £5.2m. Pre-tax profit fell from £6.99m to £4.51m. Cash generated from operations before tax and investment in cases increased from £2.79m to £4.42m, due to a small reduction working capital. Investment in cases moved up from £5.89m to £6.47m. Peel Hunt has reduced its pre-tax profit forecast for this year from £7m to £5m.
Restaurants operator Tasty (TAST) has repaid its £1.1m bank loan, leaving it with net cash of £8.6m. Annualised interest rate savings will be £57,000 and there was no early repayment penalty. There are plans to open five or six more restaurants this year.
Premier African Minerals (PREM) has signed a deal that can get the Zulu lithium project pilot plant up and running. The pilot plant has target annual production of 50,000-ton SC6 and there are binding heads of terms with Suzhou TA&A Ultra Clean Technology to take all of this production starting from the first quarter of 2023.
Shares in 4D Pharma (DDDD) declined 28.5% to 16.66p before trading was suspended ahead of administrators being appointed. 4d Pharma says Oxford Finance has demanded immediate repayment of the $13.86m it is owed. The company cannot afford this.
Paper and specialist fibres maker James Cropper (CRPR) reported a full year, underlying pre-tax profit of £4m. The paper making business is cyclical and it made an increased loss. The TFP Hydrogen division, which makes products for fuel cells, accounts for around 30% of revenues and its operating profit before group overheads increased from £6.48m to £8.68m. James Cropper has reinstated the dividend this year with a 7.5p a share final dividend taking the total to 10p a share.
Cancer diagnostics developer ANGLE (AGL) has signed another contract with its first large pharma services customer. The Parsortix system will be used to monitor patients with unresectable solid tumours in a new phase Ib dose escalation study using the pharma company’s drug in combination with immuno-oncology agents.
Provexis (PXS) has signed two agreements with DSM relating to Fruitflow, an ingredient that helps normal blood flow and circulation. DSM customers for Fruitflow will become direct customers of Provexis at the beginning of 2023. DSM will still receive a royalty on the gross profit of Fruitflow sales to customers it transfers to Provexis for four years. The deal means that, assuming like-for-like sales and margins, Provexis would make a higher net profit in 2023 and it would increase in subsequent years. There should also be new direct customers. Provexis is also partnering with DSM on a gut microbiome patent.
Investment management company Forward Partners (FWD) says that weak stockmarkets have hit the valuations of technology companies and thereby the valuations of its investments. This means that there is likely to be a mid-to-high teens percentage decline from the interim NAV of £108m.
Argentina-focused oil and gas company Phoenix Global Resources (PGR) says that it is in discussions with 84% shareholder Mercuria Energy Group concerning a cancellation of its AIM quotation and a cash offer to purchase shares from independent shareholders at 7.5p each.
Asia-focused investment company Jade Road Investments (JADE) is selling part of its stake in China-based wind turbine blade manufacturer Meize Energy Industries. It has a 7.2% stake and will receive $1.2m in cash in three tranches, leaving it with a 6.3% stake valued at $10m. The company has already received $400,000 with the rest due for payment in July and August.
Solid State (SOLI) has been awarded a contract by Transport for London for a new one person operation CCTV system for the Piccadilly line upgrade.
MAIN MARKET
Oil services provider Lamprell (LAM) has received a non-binding indicative cash offer from 25.1% shareholder Blofeld Investment Management. Lamprell requires funding of $75m over the next two months and that is making the board seriously consider the offer even though it is at a large discount to the previous closing price. Financing opportunities are being explored. An attempt to raise $150m via a share issue did not meet with approval by all the institutional shareholders.
Roquefort Therapeutics (ROQ) has announced its second acquisition in seven months. Cancer medicines company Oncogeni Ltd is being acquired for the issue of 50 million shares and there is a placing to raise £1.01m at 14p a share. Two pre-clinical families of innovative cell and RNA oncology medicines come with Oncogeni, as well as a laboratory facility in Stratford-upon-Avon
CYBA (CYBA) is changing its name to NARF Industries. Steve Bassi will become chief executive.
Fackelmann Gmbh has increased its stake in cookware retailer Procook (PROC) from 3.83% to 4.63%.
Slovenia-based Graft Polymer (GPL) has reached cash flow positive in its core business. New equipment has been ordered in order to double capacity.
OTHER MARKETS
Pacific Road Resources Fund II is making a 0.01p a share cash bid for former AIM company Firestone Diamonds (FDI), which values the company at £79,000. Pacific Road also owns all the Firestone bonds and hopes to restart production at the Liqhobong open cast diamond mine. Firestone originally joined AIM in August 1998 at 114p a share. Since 2020, the shares have been traded by JP Jenkins and the latest price is 0.2p. The bidder owns 30.4% with a further 4.25% owned by affiliated funds. Resource Capital, which owns 34.7%, intends to accept.
Andrew Hore
Quoted Micro 20 June 2022
AQUIS STOCK EXCHANGE
A fall in market capitalisation to below £10m means that Coinsilium Group Ltd (COIN) will move from the Apex segment to the Access segment on 20 June.
Visum Technologies, which operates an on-ride photo camera system used by theme parks and other leisure operators, plans to join Aquis on 30 June.
Revenues recovered from £32.2m to £96m at brewer Daniel Thwaites (THW) and it also returned to profit. A loss of £12.4m was turned into a pre-tax profit of £12.7m. The pension deficit has become a pension asset worth £10.1m. A final dividend of 2.2p a share is recommended. Staffing pubs remains a problem. Prices have been increased and are set to be raised again because of rising costs. There has been a disjointed recovery this year. but sales are growing year-on-year.
Valereum (VLRM) intends to launch a global open marketplace platform for Non-Fungible tokens (NFTs). It has also appointed Z/Yen Group Ltd as strategic adviser to review the business plans for the Gibraltar Stock Exchange and help prepare a prospectus for a listing for Valereum on a major stock exchange.
All Star Minerals (ASMO) is proceeding with investments in advanced battery metals projects. Due diligence has been completed on the Blesberg lithium and tantalum project in South Africa and the Nkombwa Hill tantalum, rare earths and phosphate project in Zambia. An initial 30% stake in Blesberg can be acquired by the issue of £337,500 of shares and £237,500 in cash. An initial 25% stake in Nkombwa Hill can be purchase for a staged cash investment of $150,000. A general meeting will be held to approve a name change to Marula Mining and a proposed 100-for-one share consolidation.
Silverwood Brands (SLWD) has been readmitted to Aquis following the acquisition of Balmonds Skincare.
Gunsynd (GUN) says ASX-listed investee company Pacific Nickel Mines Ltd has secured an offtake agreement for all the production of Kolosori, as well as a $22m pre-export finance facility, with Glencore.
Triad Endeavour Sports and Entertainment has signed up with the platform run by ChallengerX (CXS). Triad is an event promoter and talent manager involved in the Ultimate Fight League.
Lekoil Ltd (LEK) has successfully challenged the jurisdiction of the New Jersey court in litigation undertaken by its former chief executive. The Otakikpo field oil production was 4,230 bopd during May.
MiLOC Group (ML.P) is restructuring its business and focusing on the distribution of designer products with partner, CRUSHMETRIC Ltd.
Wishbone Gold (WSBN) says initial tests confirm copper is present in the drilling at the Halo copper gold project in northern Queensland. Drilling is underway at the Red Setter project in Western Australia.
The Care Quality Commission has granted registration to the diagnostic and screening services offered by Goodbody Health Inc (GDBY).
ProBiotix Health (PBX) has appointed Steen Andersen as chief executive. He has more than three decades of experience in the probiotics sector.
S-Ventures (SVEN) has capped future consideration for plant-based products supplier Pulsin at £400,000 and effectively lowered the total cost from £6.7m to £5.5m.
Chris Akers took a 4.96% stake in Recent Aquis admission Psych Capital (PSY). He has also increased his stake in Quetzal Capital (QTZ) from 20.1% to 21%.
Ananda Developments (ANA) has raised £38,000 from the exercise of warrants at 0.45p each.
AIM
IDOX (IDOX) increased revenues by 7% to £33.2m in the six months to April 2022 and recurring revenues account for three-fifths of the total. Public sector software sales were 10% ahead, while engineering information management revenues declined although they should recover in the second half. Net debt was reduced by 54% to £3.8m, which leaves plenty of funds to make acquisitions.
Tatton Asset Management (TAM) is growing assets under management at more than £100m a month and they reached £11.3bn at the end of March 2022. In the year to March 2022, group revenues improved from £23.4m to £29.4m, while pre-tax profit grew from £11.2m to £14.5m. The dividend is 13% higher at 12.5p a share. Higher mortgage activity meant that there was growth in the Paradigm division and, although new mortgage activity is lower, management believes that revenues can be maintained this year. Weaker financial markets could affect this year’s group performance, but the inflow of funds should offset that.
Xeros Technology Group (XSG) was the best AIM performer last week with a 46.2% gain to 47.5p. Germany-based washing machine pumps and drives manufacturer Hanning has signed a ten-year global licence to manufacture and sell the XFilter washing machine filter technology developed by Xeros. XFilter enables microfibres and microplastics released during washing to be captured and safely disposed of. Hanning is estimated to supply components for 8.5 million washing machines each year – around one-third of those made in Europe. The royalty is undisclosed, but it could be around £1 per filter.
Subsea cable protection services provider Tekmar Group (TGP) lost more than three-quarters of its value last week after it announced that it was seeking a strategic partner or bidder. Interim revenues fell from £13.9m to £13m and Tekmar remains loss making. The order book has improved from £9.7m to £20.1m over the six months to March 2022.
Shares in US-based video game publisher Devolver Digital Inc (LON: DEVO) more than halved after it lowered its revenues and profit guidance for this year. Revenues are expected to between $130m and $140m. Zeus has cut its earnings forecast from 7.2 cents a share to 6 cents a share.
The M&C Saatchi (SAA) board has withdrawn its recommendation of the bid by the marketing services company Next Fifteen Communications (NFC), the value of which has fallen due to the slump in the share price of the bidder.
Revolution Bars Group (RBG) trading is strong and a trading statement sparked a forecast upgrade by finnCap for the vodka bars operator. Refurbished bars have done particularly well, and two new bars should open by the end of June. Forecast pre-tax profit for 2021-22 has been raised from £500,000 to £2.7m.
Oil and gas explorer Rockhopper Exploration (RKH) announced a £5.75m placing and subscription at 7p a unit (one share and of a warrant exercisable at 9p a share). The Sea Lion project in the Falkland Islands is the main focus of Rockhopper.
Wynnstay Properties (WSP) is planning to obtain shareholder approval for buying back shares. NAV increased by 19% to 1090p a share in 2021-22. The total dividend was raised from 21p a share to 22.5p a share.
Actual Experience (ACT) says that due to a change in requirements a channel partner has terminated a contract that generated £200,000 out of group revenues of £1.74m in 2020-21.
Competitions organiser Best of the Best (BOTB) reported better than forecast figures and a 66.7p a share return of capital via a tender offer. Net cash was £10.8m at the end of April 2022 and there is a 6p a share final dividend on top of the tender offer. The total cash cost of these payments is £6.84m.
In the year to April 2022, the pre-tax profit fell from £14.1m, for what was an unusually strong year due to Covid restrictions, to £5.1m.
Hong Kong-based CCTV technology company UniVision Engineering Ltd (UVEL) has received notice of the termination of a contract with MTR Corporation for the replacement of CCTV systems on Hong Kong railway lines.
MAIN MARKET
Castings (CGS) generated a 29.5% increase in full year revenues to £148.6m. Profit and margins are still improving and there is more to go for as business levels get back to the pre-Covid position. Zeus forecasts a further improvement in underlying pre-tax profit from £12.1m to £15.5m in 2022-23.
Structural steel supplier Severfield (SFR) continues to win new business and higher steel prices are being passed onto clients. In the year to March 2022, revenues increased from £363.3m to £403.6m, while pre-tax profit improved £24.3m to £27.1m. The final dividend is increased from 1.8p a share to 1.9p a share, taking the total to the year to 3.1p a share. Severfield has a record order book worth £486m.
Palace Capital (PCA) has increased its NAV to 390p a share and the loan-to-value declined from 42% to 28% following property sales at a premium to book value. The total dividend is 13.3p a share.
Graft Polymer (UK) (GPL) says that MGC Pharmaceuticals (MXC) is using its IP for the nano delivery system in the pre-clinical research study for the use of cannabinoids to treat Glioblastoma multiforme cells (a form of brain cancer).
Contango Holdings (CGO) has agreed to acquire 10,000 tonnes of washed coking coal from Lubu each month. The current market price is $120/tonne. Up to $10m of earnings could be generated from this deal each year.
Funeral directors Dignity (DTY) says FCA has confirmed it is intending to authorise Dignity Funerals LTD as a regulated entity under the new regulations for pre-paid funeral plans.
Andrew Hore
Quoted Micro 25 April 2022
AQUIS STOCK EXCHANGE
Gunsynd (GUN) had net assets of £5.99m at the end of January 2022. That includes £1.08m in cash. Investee company Low6 is still seeking a listing in Toronto via 1319735 BC Ltd. Mining investee company Charger Metals plans to start its maiden drilling programme at the Coates project in Western Australia. First Tin joined the Main Market after the period end.
Tectonic Gold (TTAU) has appointed Ian Bruce as exploration manager, and he will restart the drilling at Specimen Hill. A permit has been secured in the same area for Taree Fields, which was historically a high-grade copper mine. Deep Blue Minerals, where Tectonic owns 10%, raised $236,000 from diamond sales.
Lombard Capital (LCAP) has agreed in principle the sale of LCP Financial to SBS Group for £4.2m in shares and the repayment of a £370,000 intercompany loan. Lombard Capital will acquire Waste and Recycling Services before the sale is completed. Management will be seeking shareholder approval to leave Aquis.
ChallengerX (CXS) has signed a five-year agreement with The American Arena League for the use of the SaaS-based platform CXSports. This will help to promote the league and generate revenues.
Blockchain and open finance investor Coinsilium (COIN) has agreed to purchase $200,000 of YELLOW tokens for the Yellow Network, which is a cross chain overlay, financial information exchange and distributed infrastructure network.
Adam Pollock, who was previously head of corporate and institutional at WH Ireland, has become a director of Oberon Capital, the broking business of Oberon Investments Group (OBE).
Vulcan Industries (VULC) has raised £48,000 at 1.37p each.
All Star Minerals (ASMO) is changing its name to Marula Mining.
AIM
TV programmes producer Zinc Media (ZIN) lost on £2.61m on revenues of £17.5m in 2021. There is already £13m of booked revenues for 2022 and there is potential further business worth £35m that could be delivered this year. A greater proportion of the work being won is for series, rather than one-off programmes. Zinc Communicate, which produces non-broadcast content and podcasts, is becoming increasingly important. The timing of the orders is uncertain and not all the work will materialise, although £8m is at an advanced stage. This suggests that 2022 revenues should be much higher, and Zinc Media should become profitable and cash generative. Last year, the cash outflow from operations was £245,000. Net cash was £2.18m at the end of 2021.
Churchill China (CHH) is beating its rivals thanks to its capital expenditure and investment in marketing, and it has a better order book than normal for this time of year. In 2021, pre-tax profit bounced back from £800,000 to £6m as revenues recovered from £36.4m to £60.8m. The total dividend is £24p a share, while there is £19m in the bank. Churchill China has taken on more than 200 additional staff in the past year and they still require training. Last autumn, selling prices were raised by 12% and a 5% increase is planned for May. That will help to offset the cost rises. Pre-tax profit is expected to be between £8m and £8.8m this year.
Tungsten West (TUN) is reviewing development options for the Hemerden mine because of rising costs. This will lead to a two-month delay. This could lead to a focus on sodium tungstate production because it is higher value than ammonium paratungstate.
Solid State (SOLI) continues to best expectations. Revenues for the year to March 2022 will be around 6% ahead of previous expectations at £85m, while there is a 11% upgrade in pre-tax profit to £7.4m.
Seeing Machines (LSE: SEE) has secured a collaboration with Magna to develop and demonstration model driver monitoring system (DMS) combining, camera, electronics and interior mirror technology. This should help Seeing Machines win more market share.
Plant-based polymers developer Itaconix (ITX) says volumes continue to increase, particularly in the dishwashing detergent ingredients market.
Coral Products (CRU) is trading ahead of expectations in the year to April 2022 and there is a second interim dividend of 0.4p a share. There could also be a final dividend to add to this year’s total of 0.9p a share.
MAIN MARKET
Nuclear-related business has helped structural steel supplier Severfield (SFR) to enjoy record orders. Logistics, infrastructure and data centres are other areas of high demand. Longer-term, battery manufacturing plants could be another booming area. The current order book is worth £479m. The 2021-22 figures will be in line with expectations with pre-tax profit forecast to improve from £24.3m to £28.1m. This year’s revenues should be better than previously expected, but profit expectations have been maintained because of higher steel costs. The higher steel prices mean that higher working capital is required.
Full year profit of kitchenware retailer ProCook Group (PROC) will be slightly lower than expected at £9.5m. ProCook has grown revenues in a market that is slightly down
J Smart Contractors (SMJ) reported a decline in interim revenues from £5.75m to £5.16m, while pre-tax profit jumped from £890,000 to £6.35m, although that was due to a gain on the sale of investment properties of £6.06m. It is unlikely that full year profit will be higher this year. Net assets are £117.2m, including £76.2m of investment properties and net cash of £27.6m. The interim dividend is 0.96p a share and the ex-dividend date is 5 May.
Andrew Hore
Quoted Micro 28 March 2022
AQUIS STOCK EXCHANGE
Arbuthnot Banking (ARBB) returned to profit in 2021 and it is paying a final dividend of 22p a share, having already paid 37p a share for the financial year. Net assets are 1315p a share. Slater Investments has a 7.05% stake.
S-Ventures (SVEN) is acquiring Market Rocket Ltd, which is a digital agency that helps brand owners to sell their products, for an initial £2.25m. There could be further shares issued if performance targets are met. In the year to March 2021, revenues were £500,000 and this year they will be much higher. This is a profitable business.
British Honey Company (BHC) has raised £540,000 after expenses at 80p each. This cash will finance product development, costs related to reducing expenses and fund growth. Mark Jones has been permanently appointed as chief executive. The company is changing its name to Union Distillers.
Vulcan Industries (VULC) is acquiring Aftech, a sheet metal fabrication company, for £1.55m in shares issued at 1.257p a share, plus 24.7 million warrants exercisable at 3p a share. Services provided include laser cutting, bending and forming and the acquired business fits well with existing subsidiaries. In the year to November 2021, Aftech generated revenues of £1.18m and EBITDA of £266,000 and it has debt of £155,000.
AIM-quoted Asimilar (ASLR) plans to join the access segment of Aquis on 4 April. The technology investment company focuses on areas including big data, machine learning and Internet of Things. The corporate adviser is Oberon Capital. Chris Akers has a 6.88% stake and Nigel Wray a 9.43% shareholding. Net assets were £41.5m at the end of September 2021.
VVV Resources (VVV) has signed a conditional agreement to acquire a company that owns the Mitterberg copper project in Austria and a 49% stake in the Shangri La polymetallic project in Western Australia, which takes VVV’s share to 100%.
EPE Special Opportunities (ESO) increased its NAV from 437.6p a share to 455.7p a share in the 12 months to January 2022. However, the Luceco share price has fallen back since then. The Luceco stake was reduced to 22.1% last year. Cash was £27.6m at the end of January.
Capital for Companies (CFCP) had cash balances of £4.19m at the end of February 2022. Net assets were 68.4p a share, following the payment of 1.5p a share dividend on 3 March.
Jason Brewer has joined the board of All Star Minerals (ASMO) and been appointed as chief executive. The acquisition focus has switched to near-term production and revenue generating mining assets.
AQRU (AQRU) has entered a partnership with institutional lending platform owner Maple Finance, which will offer AQRU customers enhanced yields in decentralised finance. Yields could be up to 15%. The offering will be integrated into the AQRU mobile and web-based platform.
Clean Invest Africa (CIA) has obtained a new strategic investor and there could be more to come. Ramin Salsali has invested £302,276 at 0.5p a share to take a 4.67% stake. He believes that the CoalTech technology can help to solve the problem of 33 billion tonnes of toxic coal fines. The technology can also pelletise other materials. Several testing phase projects are at an advanced stage.
AIM
Cyber security software supplier Kape Technologies (KAPE) reported 2021 figures in line with its trading statement with pre-tax profit of $75.2m. This was without any significant contribution from the ExpressVPN acquisition, which was made at the end of the year. Pre-tax profit could more than double to in excess of $150m this year.
Geospatial software provider IQGeo (IQG) beat expectations for 2021 with a much lower loss of £2.7m. Annualised recurring revenues were £8.2m. This year the company should move towards breakeven.
Restaurant operator Tasty (TAST) bounced back into profit last year. In the 52 weeks to 26 December 2021, revenues improved from £24.2m to £34.9m. There was £11m in the bank at the end of 2021 and there are £1.25m of borrowings to offset against this. Even if deferred payments are taken into account, then underlying net cash is still £6.8m. Net assets are £1.9m.
Peel Hunt has upgraded its 2022 forecast for promotional goods platform operator The Pebble Group (PEBB) following the recent 2021 figures. Even so, pre-tax profit is forecast to dip from £10.2m to £9.9m.
Leather processor Pittards (PTD) returned to profit in 2021, but cost increases mean that WH Ireland has reduced its 2022 pre-tax profit forecast. Pre-tax profit is expected to be flat at £500,000. Net assets are 101.9p a share.
AI-enabled wound imaging technology developer Spectral MD (SMD) has made excellent progress since floating last year. Studies of the DeepView system have been positive. The technology enables earlier intervention to help wounds heal quicker than they would have done. A validation study for patients with diabetic foot ulcers is planned and could lead to an application for FDA clearance by the end of the year.
Judges Scientific (JDG) increased pre-tax profit from £13.7m to £18.1m in 2021. Revenues recovered in all geographical regions. The order intake in the first eleven weeks of this year is slightly ahead of the 2021 figure. Net cash is £1.4m and cash generated from operations will mean that the cash pile will build up ahead of any acquisitions.
MAIN MARKET
LED lighting and wiring accessories supplier Luceco (LSE: LUCE) reported an increase in 2021 underlying pre-tax profit from £28.7m to £37.4m on revenues increasing from £176.2m to £228.2m. The total dividend was raised from 6.2p a share to 8.1p a share and it is more than twice covered by earnings. Luceco has moved into the electric vehicle charging market with the purchase of residential EV charge point supplier Sync EV for £10m – it already had a 20% stake, so the latest outflow is £8m. Annual revenues are £4m.
LeakBot reversed into Spinnaker Acquisitions to form Ondo Insurtech (ONDO). The total cost is £9.8m made up of cash of £1.6m, loan notes of £6.4m and 15 million shares issued at 12p each, including 1.36 million shares issued to Ondo Insurtech chief executive Craig Foster. The LeakBot device uses internet of things technology to identify leaks and stop them before they become more substantial. The core client base is home insurers, which can save money on claims. The share price started at 10.5p and fell to 9p by the end of the week.
RC365 Holding (RCGH) was set up to acquire Hong Kong-focused Regal Crown UK, which has developed payment gateway technology and provides other IT services. The holding company raised £2.02m at 6.2p a share, although £800,000 went on float expenses. The shares ended the week at 7p.
Beacon Rise Holdings (BRS) is the latest standard list shell, and it is highly illiquid with most of the shares owned by nine shareholders. On Sharepad.co.uk there are no trades reported, and the bid/offer spread is 100p/400p. That suggest a mid-price of 250p or a notional 150% gain – although the bid price is equal to the subscription price. Pro forma net assets equal the cash of £744,000.
Andrew Hore
Quoted Micro 8 November 2021
AQUIS STOCK EXCHANGE
There are three companies on the shortlist of the AQSE company of the year award at the Small Cap Awards 2021. They are medical IT provider DXS International (DXSP), oncology and dermatology treatments developer Incanthera (INC) and Kent-based wine maker Chapel Down Group (CDGP).
Brewer Daniel Thwaites (THW) was hampered by lockdowns in the six months to September 2021, but they were not as bad as in the first half of the previous year. Revenues increased from £221.8m to £47.8m, while the business returned to profit with £7.5m before tax. Net debt was £61.4m at the end of September 2021. Government support has come to an end and there are inflationary pressures, only partly offset by beer duty changes.
Quantum Exponential (QBIT) is a shell focused on quantum technology and predominantly companies in NATO countries. There are no other quoted companies offering a potential investment in this sector. The plan is to put together a portfolio of quantum technology company investments, which are most likely to be at the seed or early stage. Quantum computing uses the laws of quantum physics to increase the speed of computation. Nearly £2.5m was raised after expenses at 5p and the share price ended the week at 6.625p (6.25p/7p). The NAV is 1.65p a share, so the current share price is more than four times that level. Helium Special Situations has taken a 4.57% stake.
Kashei Holdings (KASH) intends to build up a portfolio of investments in cryptocurrencies and blockchain. The portfolio will include digital assets, listed investments, venture capital opportunities and staking digital assets into liquidity smart contracts and perform staking services. There should be around £3.7m available for investment, although 10% of that will be required for working capital, following the placing at 16p a share. The current mid-price is 20.25p (19.5p/21p). Pro forma NAV is 13.1p a share.
Samarkand Group (SMK) is acquiring Napiers the Herbalists, which it has been trading with for three years. The initial consideration is £1.7m in cash with deferred consideration of £100,000. There is also contingent consideration of up to $700,000. In the year to March 2021, revenues were £1m and EBITDA was £240,000.
All Star Minerals (ASMO) signed exclusive heads of terms with a company with gemstone assets and another company with diamond assets. It has terminated the gemstone deal and extended the potential diamond deal. The potential acquisition has white and coloured diamonds and an off-take and financing agreement. Ian Harebottle, the interim chief executive of All Star Minerals, owns 25% of the diamond company.
Vulcan Industries (VULC) has signed heads of terms to acquire Aftech, which is a sheet metal fabrication company that fits in with existing subsidiaries. Aftech has net assets of £780,000 and net debt of £90,000. Full year revenues are estimated to be £1m with EBITDA of £175,000. Vulcan will pay £1.55m in shares and this may represent 21.5% of the enlarged share capital.
TruSpine Technologies (TSP) has submitted a request to the FDA to consider the Cervi-LOK system as a breakthrough device technology. That would enable the device to generate higher margins.
Coinsilium Group Ltd (COIN) had crypto assets of $4.22m at the beginning of November 2021. That is more than double the value at the end of June.
Rutherford Health (RUTH) increased interim revenues by 36% to £4.85m in the six months to August 2021. September revenues were more than £1m. More oncologists have been trained to use the company’s technology. Rutherford Health will continue to lose money.
Pioneer Media Inc (PNER) has acquired CryptoPunk 8869 for $433,700.
Asia Wealth Group Holdings (AWLP) increased interim revenues from $894,000 to $940,000, while pre-tax profit improved from $117,000 to $123,000. There was $1.36m in the bank at the end of August 2021.
AIM
Online electrical retailer Marks Electrical (MRK) specialises in kitchen appliance, audio visual products and small electrical appliances and has been growing its share of the market. Since 2014, Marks Electrical has increased its market share from 0.41% to 1.22%. A placing raised £2.63m after expenses at 110p each and shareholders sold shares worth £25m. The company’s warehouse has enough capacity to cope with revenues of £180m, more than treble last year’s level. The shares ended the first day at 110.5p.
Devolver Digital Inc (DEVO) is the latest video games publisher to join AIM. The Delaware-based company’s original focus has been indie games produced by third parties, but more recently it has been acquiring companies with their own IP. The cash raised by the company in the placing will be used to acquire strategic partners and finance the development of third party and in-house games. Nearly £30m was raised after expenses and the price has risen from the placing price of 157p to 187.5p. The overall video games market is forecast to grow from $177.8bn to $218.7bn in 2024.
Escape rooms operator Escape Hunt (ESC) is acquiring Boom Battle Bars, which offers competitive socialising activities along with drinks and food. The total cost is £17.38m, with £9.88m in cash and deferred consideration of up to 25 million shares. The shares are subject to an earn-out based on revenues number of sites open. Escape Hunt raised £15m at 30p a share and could raise up to £2.2m from a one-for-12 open offer at the same share price. The acceptance date is 19 November. The enlarged group will be renamed XP Factory.
Self-storage sites operator Lok’nStore (LOK) had a much more significant than forecast uplift in its NAV at the end of July 2021. It increased from 555.5p a share to 731.1p a share. This year the dividend has been raised by 2p a share to 15p a share. The additional sites in progress will add 38% to space over the next few years.
Bleepa communications technology developer Feedback (FDBK) is raising £10m in a placing at 0.7p a share to take advantage of opportunities and finally build up revenues. There is also a one-for-15 open offer to existing shareholders that can raise up to £500,000 more. The CareLocker technology that is being piloted in Sussex could be a game changer. Combined with Bleepa it can store patient records individually in the cloud instead of in one place where it is easier to hack.
Gensource Potash (GSP) was already quoted on the Toronto Venture Exchange before joining AIM, and its focus is the Tugaske potash project in Canada. Gensource owns 67% of the vehicle that owns the project and has arranged finance to cover the C$352m cost of building the mine. The Tugaske project’s proven and probable mineral reserve is 14.1 million tonnes and there is a likely minimum expected mine life of more than 56 years, based on annual production of 250,000 tonnes of saleable muriate of potash. The share price ended the first day at 27.5p.
Remote tracking and monitoring technology provider Starcom (STAR) is changing its name to t42 IoT Tracking Solutions and rebranding its products. There will also be an eight-for-one share consolidation.
MAIN MARKET
In the six months to August 2021, Braemar Shipping Services (BMS) revenues grew by 11% to £47.4m, while pre-tax profit improved from £4.47m to £4.92m. The order book is 28% ahead at $55.5m. Net debt has fallen to £14.7m. There is a 2p a share interim dividend.
IT services provider Triad Group (TRD) reported a decline in interim revenues, but pre-tax profit jumped from £1,000 to £670,000. There is a 2p a share interim dividend. There is cash of £5.34m. high utilisation levels are continuing.
Andrew Hore
Andrew Hore – Quoted Micro 19 July 2021
AQUIS STOCK EXCHANGE
Good Energy (LON: GOOD) has rejected the bid from rival renewable energy supplier Ecotricity. It believes that the indicative offer of 340p a share in cash is too low even though it is a premium to the previous market price. Management believes that it has a clear strategy for the company. The focus is energy as a service and mobility as a service, particularly through Zap Map. A new tariff, called Green Driver, has been launched offering a choice of off-peak electric vehicle charging periods. The potential bid values Good Energy at nearly £57m. However, Ecotricity already owns 25.06% of Good Energy.
Voyager Life (VOY) has secured a preferred supply deal for its CBD and hemp oil products with independent pharmacy group Inphaserve, which supplies more than 30 independent pharmacies in England and Scotland.
Rogue Baron (SHNJ) reports another record month for its Bin 1301 bar. Sales were $95,000 in June, which is one-third higher than any pre-Covid month.
SulNOx Group (SNOX) has raised £2.59m at 30p a share. The cash will be used to build up the sales capability and finance the hiring of additional management and staff. There will also be further investment in R&D. There are 58 ongoing trials for its emission reduction product.
Hydro Hotel Eastbourne (HYDP) generated interim revenues of £186,000, but it lost £383,000. The hotel has been trading for a limited time in the six months to April 2021. Refurbishment of bathrooms was undertaken during the period. The hotel will fully re-open on 19 July.
Tectonic Gold (TTAU) has reached an agreement with White Prospecting to set up a joint venture to mine gold at the Mount Cassidy project. Tectonic will get a 7.5% gross production royalty. This deal will enable Tectonic to concentrate on Specimen Hill.
BWA Group (BWAP) reports positive sampling results at the 90%-owned Dehane rutile sands project. It is still early days, but the elevated levels of rare earths is a good sign.
Evrima (EVA) had £164,000 in the bank at the end of 2020, while the NAV was £461,000.
Chapel Down Group (CDGP) raised £6.88m at 59.5p a share, which includes £5.45m raised via crowdfunding. NQ Minerals (NQMI) has raised £35,000 at 7p a share. All Star Minerals (ASMO) has raised £257,000 at 0.02p a share and converted £54,000 of liabilities into shares. Ananda Developments (ANA) has raised £350,000 from an issue of convertible loan notes, with a conversion price of 1p a share, and a further £200,000 is committed by investors.
AIM
Building materials sector consolidator SigmaRoc (LSRC) acquiring Finland-based limestone supplier Nordkalk acquired for £402m, including debt. SigmaRoc has raised £260m in a placing at 85p a share, while a retail offer raised £1.6m. A new bank facility will help to fund the deal and £43m of shares will be issued to Rettig Group.
Energy efficiency as a service provider eEnergy Group (EAAS) has trebled full year estimated revenues to £13.5m. Organic growth was 75% and there was a small pre-tax profit. The smart metering service has been rebranded as MyZeRO and the first combined LightAsAService and smart metering contract has been won. Short-term profit growth is being sacrificed for longer-term growth.
Solid State (SOLI) marginally beat previously upgraded expectations for its figures for the year to March 2021. Revenues dipped slightly to £66.3m, but underlying pre-tax profit was 15% ahead at £5.4m following a reduction in overheads. The total dividend was 16p a share. Computing and communications products did well, but there was a decline in power products revenues. Acquisitions made a small contribution.
Glantus (GLAN) has made its first acquisition since joining AIM, but the software company still remains at a discount to its placing price. The $9.3m acquisition of Technology Insight Corporation led to an earnings up grade for 2022 from 6.4 cents a share to 7.1 cents a share.
Iodine producer Iofina (IOF) says iodine prices are back to pre-pandemic levels at $35-$37/kg. First half production is in line with guidance at 249.4Mt.
Kromek (KMK) had a better second half of the year to April 2021. Manufacturing had been closed in the first half and revenues improved. Full year revenues still fell from £13.1m to £10.4m. There is already 75% visibility over this year’s forecast revenues of £15m. Biodetection equipment for Covid-19 and other airborne viruses will provide a new market for the company. The medical imaging market is recovering.
ULS Technology (ULS) continues to invest in its DigitalMove platform, and it has net cash of £24m to complete its development. More services will be offered on the platform. Conveyancing completions fell last year and revenues declined 18% to £16.9m.
Zoo Digital (ZOO) moved into profit in the year to March 2021. A pre-tax profit of $900,000 was made on revenues of $39.5m with further improvements in profit expected in the next two years. Demand is increasing from subtitling and dubbing services for TV and film back catalogues and Zoo is also adding additional services. Zoo is extending its geographic reach in line with demand from customers.
Chains and transmissions manufacturer Renold (RNO) reported a 13% dip in revenues last year, but underlying pre-tax profit improved by one-fifth to £5.9m – that was due to £2.4m of restructuring costs the year before. Net debt was reduced to £18.4m. The cost base has been cut and efficiency improved through capital investment in facilities. In July, a £11m military contract was won by the torque transmission business.
Personal protection and insurance products provider CPP Group (CPP) says that trading in India has recovered in the past few weeks, but there had been a sharp reduction activity in April and May. The back books continue to generate revenues, although they are declining. Overall trading is in line with expectations.
MAIN MARKET
Standard list shell Hawkwing (HNG) has agreed to acquire ecommerce aggregator Internet Fusion Group, which owns nine speciality retail businesses. It has developed the Reactor platform which brings together retail businesses and brands. Trading in the shares has been suspended.
LED lighting and wiring accessories supplier Luceco (LUCE) has continued to improve its performance in the first half. Interim revenues are expected to be £108m and underlying operating profit of £19m. The second half will be even stronger. Luceco expects full year revenues to be at least one-quarter higher at £220m and underlying operating profit 30% ahead at £39m.
Maternity wear retailer Seraphine Group (BUMP) raised £61m at 295p when it joined the premium list last Friday. The cash will be used to pay off loans and finance growth. The share price started conditional dealings earlier in the week at 305p and subsequently fell back, opening at 280.05p when dealings were unconditional. The share price ended the day at 279.4p
HeiQ (HEIQ) has signed a collaboration agreement with LYCRA and the first product should be launched by the autumn. This will combine freshness and antiviral benefits with LYCRA stretch fabrics.
Nuformix (NFX) expects to develop a phase 1-ready formulation of its NXP002 inhaled treatment for idiopathic pulmonary fibrosis in the next 18 months. This could be a time to seek a partner.
Andrew Hore
Andrew Hore – Quoted Micro 24 May 2021
AQUIS STOCK EXCHANGE
British Virgin Islands-based Boanerges (BNRG) is a SPAC seeking to acquire technology companies involved in big data, machine learning, telematics and internet of things. Boanerges floated on 17 May 2021 when it raised £500,000 at 20p a share. In April, an initial £51,500 was raised at 0.1p a share and a further £75,000 was raised at 10p a share. That means that pro forma cash is equivalent to 1p a share. The shares are trading at 24.5p (23p/26p).
Bid expenses could cost Walls & Futures REIT (WAFR) up to £210,000. The 50p a share bid is rejected by the company’s board, which says that it represents a 51% discount to NAV and a 62% discount to the market value of its properties, after cash is deducted. Management is offering shareholders the opportunity to vote on a winding up of the company if the bid does not become unconditional. This would require 75% of the votes to be carried.
Brewer Adnams (ADB) continued to be hit by lockdowns in the six months to March 2021. Online demand for the beer brands remained strong and management says that bookings for pubs are building up since the lockdown was eased. There is even hope that people holidaying in the UK will boost its hotels.
Early Equity (EEQP) is acquiring Farina Investments, which provides services to the insolvency sector, for £1.9m in shares at 0.5p each. This is effectively a business that is involved in the acquisition and disposal of distressed assets. The deal will increase Early Equity’s stake in Lotto Studios, which is launching a social casino game with ITV Studios, to 20%. The deal also brings a 10% stake in life sciences company Pure Sea Nutrients. A further £90,000 has been raised in a placing at 0.5p a share.
The AGM has been postponed and there were some irregularities in the voting process.
Incanthera (INC) is continuing with discussions with two global cosmetic companies for its Sol skin cancer technology. The idea is to use Sol as a skin cream to protect sun damaged skin. Net cash was £960,000 at the end of March 2021. Incanthera recently raised £1.14m at 12p a share. There is enough cash to get into the second half of 2022. There could be an upfront payment from a deal, but the big money will take longer to be generated. More cash will be required to push ahead with other products.
Apollon Formularies (APOL) says that joint testing with Aion Therapeutic reveals that their combined formulations are effective in killing HER2+ breast cancer cells grown in 3D cell culture. HER2+ accounts for one-fifth of breast cancer. Apollon’s Jamaican medicinal cannabis formulations were particularly good at killing living HER2+ cancer cells directly.
Ananda Developments (ANA) says that its 50%-owned subsidiary DJT Plants has been granted a licence to grow >0.2% THC cannabis for research activities by the UK government. Building of the research facility will commence immediately. There will be 65 strains grown at the facility and plans to extract distil and isolate cannabis products. The business had previously grown cannabis for GW Pharma. The focus will be neuropathic pain, Parkinson’s Disease and epilepsy. Directors Charles Morgan and Melissa Sturgess have each been issued with 100 million shares as contingent consideration following the grant of the licence.
Gledhow Investments (GDH) had net assets of £2.35m at the end of March 2021, up from £907,000 12 months earlier. That includes £374,000 in cash.
Vulcan Industries (VULC) subsidiary M+G Olympic has won more than £500,000 of orders for swimming pools.
All Star Minerals (ASMO) is negotiating the acquisitions of a company with gemstone assets and another company with diamond assets. This is an area where the management team has experience. Further cash will need to be raised to complete due diligence.
NQ Minerals (NQMI) has raised a further £224,000 at 7p a share. Chief executive Walter Doyle has left the company. Wishbone Gold (WSBN) has raised £1.4m at 10p a share and each share has one-half of a warrant exercisable at 20p a share. Wishbone will refine the locations of drill targets at the Red Setter projects and then use the cash to finance the drilling. Sativa Wellness Inc (SWEL) has completed a placing raising $4.61m at 7.875 cents per unit. A unit comprises one share and one-half of a warrant exercisable at 10.5 cents a share. Love Hemp (LIFE) has raised £348,000 via the exercise of warrants at 1p each.
AIM
Compliance and energy saving services provider Sureserve (SUR) reported an underlying interim pre-tax profit was 31% higher at £4.4m. Energy saving’s profit contribution fell by three-fifths, but higher margins for the much larger compliance division meant a much higher profit. A full year pre-tax profit of £12.9m is forecast.
Tracsis (LSE: TRCS) should get additional opportunities from the Williams report on the rail industry. The report was in line with expectations. Great British Railways will take up the overall responsibility for the integrated rail network. The reforms are due in 2023, although there could be delays. Things like digital tickets, simplified fares and season ticket flexibility provide opportunities for Tracsis.
Accrol (ACRL) says that adjusted earnings for 2020-21 will be in line with expectations even though sales will be lower than expected due to a decline in the market. Accrol has 16% of the toilet tissue market and it should return to growth when the comparatives do not include the Covid-19 related panic buying. There are plans to increase capacity at the main Leyland plant.
Surgical devices developer Creo Medical (CREO) says trading was ahead of expectations in the first quarter of 201. This has led to a 10% increase in forecast revenues to £22.1m. There will still be a loss of £30m. The recovery in elective surgery is increasing demand for surgical devices.
Nexus Infrastructure (NEXS) is building up its electric vehicle infrastructure business and it could move into profit in the next year. The TriConnex utility connections business is also growing revenues, although profit was flat. However, group revenues were one-quarter lower at £64m, because civil engineering business Tamdown continues to report lower revenues and profit. Nexus did make an overall operating profit. The 2020-21 pre-tax profit has been upgraded to £3.6m and it could reach £6m next year.
PerkinElmer has made a 382p a share bid for Immunodiagnostic Systems Holdings (IDH).The bid is at one-third of the share price high around one decade ago. The share price has not been at this level for nearly seven years.
MAIN MARKET
Dukemount Capital (DKE) has secured a joint venture with flexible power company HSKB, which will be renamed DKE Energy. The 50%-owned business will develop two gas peaking facilities which will produce 10MW of power. These will cost £6.25m and the intention is to secure a 15-year, inflation linked contract. Dukemount director Paul Gazzard founded HSKB.
One Heritage Group (OHG) has signed a construction finance facility with Lyell Trading. The facility is for £3.5m and lasts 18 months at a nominal interest rate of 9.6%. The facility will be used to finance Oscar House, a development of 27 apartments in central Manchester. The development should be completed in the first quarter of 2022.
Mast Energy Developments (MAST) says that the Brodesley reserve power project has reached construction ready status.
Lee Marks has been appointed chief executive of NMCN (NMCN) and interim chief executive Robert Moyle is retiring from the board after a transition period.
Kanabo Group (KNB) has signed an agreement with Pure Origin, which will manufacture and package Kanabo’s CBD wellness products from its facility in Wales. There will be a dedicated production line for VapePod products. This deal will lead to a full international product launch.
BATM Advanced Communications (BVC) has started to deliver two Covid-19 diagnostic tests. The saliva-based test will be used by the Italian team at the Olympic Games in Japan.
S&U (SUS) says monthly motor finance collections are above budget and the number of customers on payment holidays has fallen to 1,200. The Aspen bridging loan division is lending more for each deal and profit is reaching record levels.
Andrew Hore
Andrew Hore – Quoted Micro 15 March 2021
AQUIS STOCK EXCHANGE
Rogue Baron (SHNJ) joined the Aquis Stock Exchange on Friday. The company is a spirits brand developer, and its focus is the Shinju Japanese whisky brand and specialist tequila Copa Imperial Tequila. The idea is to build these and other niche brands to the point where larger drinks companies will want to acquire the brand. There was £755,000 raised at 7p a share. The share price ended the first day of trading at 8p (7p/9p).
Gunsynd (GUN) has already more than trebled the value of its investment In Rogue Baron, which was worth more than £1.8m, including accrued convertible interest, at the time of flotation. Gunsynd holds a 28.5% stake. Chris Akers has increased his stake in Gunsynd from 5.36% to 6.19%.
Sativa Wellness (SWEL) has taken more than £1.1m of bookings for its Covid-19 testing clinic business. This has been achieved by the Bath clinic and a further clinic has opened, plus 13 in-pharmacy and two mobile clinics. There could be 30 clinics by the end of April, ready for the easing of lockdown.
KR1 (KR1) has invested $200,000 into Automata Network’s seed funding round.
IamFire (FIRE) made a loss of £162,000 in the six months to October 2020. During the period, investments were made in WeShop and Bio2pure.
Upper Thames Holdings (UPPT) has net liabilities of £83,000 at the end of 2020 and since then £516,000 has been raised. The board will seek approval to change the company’s name to Valereum Blockchain.
Quetzal Capital (WENP) is raising £3m at 4p a share and issuing enough warrants exercisable at 8p to raise a further £3m. This will help to fund a reverse takeover or investment. NQ Minerals (NQMI) has raised a further £255,000 at 7p a share. Bluebell Investment and Consulting has invested £25,000 in Wheelsure Holdings (WHLP) at 13.5p a share, which represents a 4.9% stake. Altona Rare Earths (ANR) has raised a total of £800,000 at 6.5p a share from placings.
Western Selection (WESP) has increased its stake in Bilby (BILB) by 698,737 shares at an average share price of 35.11p each. This takes the stake to 12.2%.
All Star Minerals (ASMO) has appointed SP Angel as broker.
AIM
AMTE Power (AMTE) raised more than initially expected in the flotation and this should provide the cash required for investment in the battery cells development business. AMTE raised £11.3m at 175p a share. The share price jumped to 233.5p on the first day of dealings. The battery cells nearing commercialisation are aimed at the high-performance vehicles, oil and gas equipment and energy storage markets. There are currently 16 potential clients that products are being developed for.
Engineer Avingtrans (LON: AVG) is raising £35m from the sale of the Peter Brotherhood business that came with the £52.7m acquisition of Hayward Tyler in September 2017. Peter Brotherhood was estimated to be worth £9.3m of that cost. Borrowings will be paid off. Net cash is expected to be £22m at the end of May 2021.
Kape Technologies (KAPE) is acquiring Webselenese for $149.1m. This provides the group with a consumer platform for privacy and security content, which will generate information and data on consumer trends. In 2020, the acquired business generated revenues of $64.5m and EBITDA of $30.7m. In 2021, Kape is expected to increase earnings from 15.8p a share to 25.4p a share.
Billing and customer relationship management software provider Cerillion (CER) has won a Middle East contract worth £5m over five years. The implementation will take up to 18 months.
Getech (GTC) is raising up to £6.25m via a placing and open offer at 22p a share. The cash will be invested in developing hydrogen products and services.
Online merchandising technology provider Attraqt (ATQT) improved its full year revenues by 8% to £21m, helped by an initial contribution from AI firm Aleph. The loss was reduced from £4.4m to £2.6m. Annualised recurring revenues were £21.1m at the end of 2020. A £500,000 loss is forecast for 2021 before a move into profit in 2022.
Cloud-based PCI payment services provider PCI Pal (PCIP) is gaining momentum in the US. In the six months to December 2020, revenues rose by 56% to £3.2m. More of these revenues are coming via channel partners. Total annual contract revenues were 59% ahead at £8.3m. There should be enough cash in the bank to get the company to the point where it is generating cash.
Shoe Zone (SHOE) says that it does not expect to pay a dividend until at least 2025. The footwear retailer expects to continue to lose money this year. The stores are closed at the moment.ch
Online women’s fashion retailer Sosandar (SOS) has agreed to sell a specialist collection of its products through Marks and Spencer (MKS). This follows deals with Next and John Lewis.
Coral Products (CRU) is repaying its £1.6m property mortgage out of the proceeds of its recent disposal. The £2.5m valuation of the Haydock site is expected to be increased in the next accounts. Coral has also repaid £500,000 of its CBIL loan with the other £433,333 likely to be paid before the year-end.
Business restructuring company Begbies Traynor (BEG) is acquiring of David Rubin & Partners for up to £25m. This takes the group’s market share to 12%. There is an initial £12m payable and the rest depends on performance over five years. Begbies raised £22m at 105.5p a share to help finance the deal, which should be immediately earnings enhancing.
Arden has upgraded its Dekel Agri-Vision (DKL) forecasts due to higher crude palm oil and palm kernel oil prices. This means that Arden expects Dekel to be profitable in 2021.
MAIN MARKET
Avation (AVAP) is raising £7.5m at 110p a share and this provides additional cash at a difficult time for the airline industry. NAV was previously 174p a share. Avation could continue to lose money for the next two years Net debt will still be more than $1bn.
Challenger Acquisitions (CHAL) is entering into a deal to acquire Cindrigo Energy, which owns Cindrigo Ltd, the company where a previous offer lapsed. The business is a developer of renewable energy projects using Swedish expertise in waste-to-energy and biomass. The shareholders of the target company will own 96.5% of the enlarged business.
Kanabo (KNB) has signed a production and supply agreement with PharmaCann Polska for cartridges containing Kanabo’s medicinal cannabis formulations. The initial production capacity is up to 36,000 cartridges. FastForward Innovations (FFWD) has sold its stake in Kanabo for a profit of £140,000. FastForward has also sold its Cellular Goods (CBX) for a £54,000 gain.
Argo Blockchain (ARB) has raised £26.8m at 200p a share and this cash will fund the purchase of a further stake in Pluto Digital Assets. The £7.3m investment in Pluto will maintain the Argo stake at 25%. AIM-quoted Pires Investments (PIRI) owns 6.4% of Pluto.
The Financial Reporting Council has started an investigation into the audit of motor dealer Lookers (LOOK) by Deloitte for 2017 and 2018.
Wheaton Precious Metals (WPM) is increasing its first quarterly dividend by 30% to 13 cents a share. The strategy is to pay 30% of average cash generated by operating activities in the previous four quarters.
Pharmaceuticals developer Nuformix (NFX) is raising £1.565m at 2p a share. This cash will finance preclinical studies for the NXP002 inhaled formulation for lung disease and further research and development of formulations. Nuformix is waiting to see whether Oxilio will option the NXP001 cancer treatment. This option expires on 24 March.
Andrew Hore
Andrew Hore – Quoted Micro 11 January 2021
AQUIS STOCK EXCHANGE
Standard list shell Baskerville Capital (BASK) plans to switch its quotation to the Access segment of the Aquis Stock Exchange. This move will happen at the time of the reverse takeover of Oberon Investments, the owner of fund manager MD Barnard. The transfer to the Access segment is expected to happen on 5 February, although this depends on completion of the deal.
Walls and Futures REIT (WAFR) increased its NAV to £3.96m at the end of September 2020. The Southfields property has been sold for £660,000, which was a small discount to the previous book value. The remaining residential property will be sold in the next few months. The company will then concentrate on specialist supported housing.
KR1 (KR1) has sold its remaining holding of FunFair tokens for an average price of 2.0207 cents each. That raised $1.28m, which is more than treble the cost.
Wishbone Gold (WSBN) expects the analysis of the aerial magnetic survey of the Red Setter project in Western Australia will be available before the end of the first quarter of 2021.
All Star Minerals (ASMO) continues to review opportunities in the mining sector in Africa. The deal is likely to be funded by a share issue, but more cash will be required.
Arbuthnot Banking (ARBB) non-executive director Nigel boardman has increased his shareholding from 5,020 shares to 11,348 shares. Shepherd Neame (SHEP) director JB Neame has sold 4,000 shares at 690p each and bought back 2,000 shares at 691.5p for an ISA.
Vulcan Industries (VULC) has raised £150,000 in share issues at 5p a share and 5.5p a share. TruSpine Technologies (TSP) is still waiting to receive £250,000 from Evrensel Capital Partners.
Peel Hunt has been approved as an AQSE corporate adviser.
AIM
Capital equipment manufacturer Mpac (MPAC) did better than expected last year although pre-tax profit is still likely to decline from £7.5m to £6.2m. net cash is £5m following the payment of £10m for Switchback last autumn. The order book is worth more than £55m, compared to 2020 revenues of £83m. The focus on healthcare and pharma has helped Mpac.
Judges Scientific (JDG) had a strong second half in 2020 and this has led WH Ireland to increase its 2020 pre-tax profit forecast from £12.1m to £13.5m. The 2021 figure has been maintained at £15.1m. Full year results will be announced on 23 March.
Fashion retailer Joules (JOUL) offset weak high street sales prior to Christmas with strong growth in online sales. Even so, continued uncertainty means that Peel Hunt has reduced its 2020-21 pre-tax profit forecast from £5.4m to £3.5m. Net cash is £13m.
Motor dealer Cambria Automobiles (CAMB) says trading the three months to November 2020 was ahead of the same period last year even though the market remains uncertain.
Wealth management firm Mattioli Woods (MTW) had more than £10bn of client assets by the end of November 2020. Gross discretionary assets under management are £2.9bn. Management is still seeking acquisition opportunities and there is £18m of cash in the bank.
Creo Medical (CREO) has received 510(k) clearance from the FDA for its MicroBlate soft tissue ablation devices. This broadens the range of products with approvals.
AssetCo (ASTO) has acquired a 2.9% stake in investment manager River and Mercantile at 186p a share. This cost £4.7m. There is still around £26m in cash available since the payment from Grant Thornton and after the tender offer to shareholders.
Avingtrans (AVG) is merging its two medical equipment businesses with Australia-based MRI technology developer Magnetica and it will own 59% of the enlarged business after also injecting A$600,000. A further £3.2m investment could increase the stake to 61.2%. The combined business is loss-making but the increased scale will help it to move towards profitability.
Telit Communications (TCM) has ended bid discussions with u-blox, although the potential bidder is still interested in making an offer. An all-share bid of 250p a share was indicated.
Tekmar (TGP) has secured a contract to design and manufacture subsea scour protection for a quay development project, which is worth more than £4m. That will be recognised in this financial year.
IntegraFin has decided not to bid for Nucleus Financial Group (NUC), which increased assets under administration by 8% to £17.4bn in the three months to December 2020. Inflows of funds increased, and outflows fell.
Eqtec (EQT) has signed a memorandum of understanding with Greece-based Nobilis Pro Energy, which will enable Eqtec to be involved in its partner’s pipeline of gasification projects opportunities in Thessalia and central Greece. A joint venture will be formalised.
MAIN MARKET
One Heritage Group (OHG) has acquired a site on Bank Street, Sheffield for £880,000. The final development cost is expected to be £2.9m and gross development value should be £3.6m. The residential developer says that its Burnley development will not be completed until later in the first quarter. Construction of the Waterloo Place development in Salford should commence in the second quarter.
Argo Blockchain (ARB) mined 96 Bitcoin during December. The increase in the bitcoin price means that these are valued at £1.63m. Argo holds 209 Bitcoin. The sharp rise in the share price has led to the exercising of warrants and options. This has raised £1.63m.
Tirupati Graphite (TGR) is on track to commission the Vatomina graphite project in the second quarter and build production to 6,000tpa. Tirupati raised £6m at 45p a share when it floated at the end of last year and the share price has risen to 83p.
Rainbow Rare Earths (RBW) has completed its drilling programme at the Phalaborwa rare earths project under budget and the results are expected before the end of the first quarter.
Pembridge Resources (PERE) has raised £570,000 at 4p each and this should be enough cash to take the company into next year.
Andrew Hore
Andrew Hore – Quoted Micro 14 September 2020
AQUIS STOCK EXCHANGE
Investment company S-Ventures is set to join the market on 16 September. The strategy is to make investments in consumer health and organic food businesses in the UK and Europe. The S-Ventures management will use their expertise to help smaller brands grow faster and achieve greater scale. Up to three acquisitions are planned each year and they are likely to have values of between £150,000 and £2m.
Evrima (EVA) has secured an option to acquire a 17.2% stake in Kalahari Key Mineral Exploration (KKME), which would increase its investment in the Botswana-focused nickel, copper and platinum explorer to 19.6%. The former Sport Capital Group has 60 days to acquire the stake for $183,000 in the form of 2.3 million shares at 6p each. The same number of warrants will be issued, and they are exercisable at 12p each. AIM-quoted Power Metals has a
Block Commodities (BLCC) has been fined £7,000 by the Aquis Stock Exchange. Block failed to make sure that it provided accurate and fully up to date information to investors about fundraisings. It also failed to consult with its corporate adviser. Trading in the shares remains suspended.
All Star Minerals (ASMO) is assessing potential gemstones opportunities in Africa.
Lombard Capital (LCAP) has sold a 29.5% stake in LCP Financial for £275,000 in order to provide funds to develop the waste and recycling operations.
Early Equity (EEQP) has appointed Novum Securities as its corporate adviser and trading has recommenced in the shares.
Gold explorer Tectonic Gold (TTAU) has raised £403,000 at 0.275p a share. Each new share has a warrant attached that is exercisable at 0.7p each after the results of the exploration drilling are released. The cash will finance drilling.
AIM
Michelmersh Brick (MBH) has restarted production following lockdown despatches have recovered more quickly than the sector. Interim revenues fell by 17% and underlying pre-tax profit was halved, but full year expectations have been upgraded. The bricks manufacturer is operating at normal levels and June 2020 revenues were better than those in June 2019. Canaccord Genuity has upgraded its full year profit forecast from £5.3m to £6.5m, down from £9.7m in 2019. Limited UK brick production capacity means that Michelmersh is in a strong position and it has demonstrated its resilience this year.
Internet domain name registry and services provider CentralNic (CNIC) is paying $36m for the Codewise businesses, which provide monetisation services and online marketing tools. This fits with Team Internet and will be significantly earnings enhancing from day one. A placing raised £30m at 75p a share.
Synairgen (SNG) has published interim data for its SNG001 treatment that suggests that it could be effective for COVID-19 patients, particularly those suffering with more severe symptoms.
Belvoir Group (BLV) weathered the COVID-19 lockdown well. Financial services increased their contribution in the first half and lettings income held up. Underlying pre-tax profit improved by 7% to £3.16m, helped by the Lovelle acquisition. Earnings per share were 16% higher at 7.3p. The interim dividend is 3.4p and a further 2p is payable in lieu of the final dividend that was not paid. The former boss sold shares at 150p each.
The Property Franchise Group (TPFG) reported an unchanged interim pre-tax profit of £2m and an interim dividend of 2.1p a share is being paid. Cash has risen to £6.1m. Lettings income held up and trading was strong in June. The core business and online operation EweMove both performed strongly in July.
Arden has initiated research on Dekel Agri-Vision (DKL) and it believes that the palm oil and cashew nut processer is worth 7.6p a share. The broker believes that Dekel could make an operating profit next year. Profit should build up over the next few years as cashew nuts processing activities grow.
Concrete levelling equipment supplier Somero Enterprises (SOM) is resuming dividends and paying a deferred final dividend of 20.7 cents a share as well as an interim of 4 cents a share. That will cost $14m. North American interim sales held up best with European sales falling by one-quarter. Pre-tax profit is still expected to fall from $28m to $17.6m, but net cash should be $20m at the end of 2020.
Digital invoicing services provider Tungsten Corporation (TUNG) is on course to move into profit in the current financial year. The loss per share was reduced from 3.5p to 1.4p in the year to April 2020 and there was cash generated from operations.
Irrigation products supplier Amiad Water Systems (AFS) reported a decline in revenues but profit increased as margins improved. Amiad was already reducing its cost base when COVID-19 started to hamper the business. This led Stifel to increase its full year pre-tax profit forecast to $4.5m. Further growth could come from new products and potential acquisitions.
Building and construction products supplier Alumasc (ALU) has realigned its cost base but pre-tax profit was still one-third down at £3.7m as full year revenues declined by 16% to £76m. A 2p a share dividend was declared. Trading has been recovering since the June year end. Further cost saving benefits will help profit to recover this year. finnCap forecasts £6.4m pre-tax profit for 2020-21.
New SIPP business has been slow for STM (STM) but the recurring revenue base means that interim revenues were maintained at £11.8m. Additional personnel costs reduced pre-tax profit by nearly one-third to £1.1m. There is £17.6m in the bank and that enables STM to pay an interim dividend of 0.55p a share, which should be one-third of the total for the year. A full year pre-tax profit of £2.5m is forecast, with a rebound to £4.5m in 2021.
Recruitment firm Hydrogen (HYDG) plans to cancel the AIM quotation. A tender offer of 40p a share provides investors with a way to sell their shares prior to the cancelation.
MAIN MARKET
LED lighting and wiring accessories supplier Luceco (LUCE) has realigned costs so that they are more in line with revenues. In the first half of 2020, revenues fell by 13% to £71.6m, but operating profit was one-quarter higher at £9m. Gross margins continue to increase, and overheads have been kept down. Operating profit margin of 12.3% was higher than ever before.
Andrew Hore