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Quoted Micro 29 November 2021
AQUIS STOCK EXCHANGE
Good Energy (GOOD) is selling its 47.5MW of renewable generation capacity and then reinvest the cash. The portfolio is valued at £56.8m, with £39.1m of related debt, and could be sold in the first quarter of 2022. Good Energy is investing in the latest funding round for Zap Map and the disposal cash may be received at around the same time. The company is investing in its decentralised energy services platform, and this will be rolled out next year. There will be further investments in these areas. Competition has fallen away in the domestic energy supply market and management believes that more normal conditions could return next spring. There will be £2.5m of additional costs to cope with the knock-on effect of higher prices and the exit of rivals. There is still a possibility of achieving full year expectations.
Oberon Investments (OBE) nearly trebled revenues in the first half with the growth coming from the broking business. In the six months to September 2021, revenues improved from £1.2m to £3.4m, while funds under management were £765m at the end of the period. Investment management fees doubled, but corporate finance income jumped from £89,000 to £1.56m. Oberon moved from a loss of £514,000 to a pre-tax profit of £128,000. New product launches should enhance growth in funds under management, while the broking side remains busy.
Non-fungible tokens (NFTs) investor NFT Investments (NFT) is investing $250,000 in Afterparty Inc, a platform where creators generate revenues from music events. This was set up by former Disney executive David Fields.
Eastinco Mining and Exploration (EM.P) plans to acquire battery metals explorer Aterian Resources and move to the standard list. There will be a ten-for-one share consolidation and the company’s name will change to Aterian. AIM-quoted Altus Strategies (ALS) will become a major shareholder. A fundraising has raised £850,000 from convertible loans and £100,000 from shares at 1.5p each, which is the conversion price of the convertible loans. Aterian Resources has a portfolio of 15 exploration projects.
Investment company Gunsynd (GUN) had net assets of £6.3m, including £1.07m of cash, at the end of July 2021. Investee company Low6 still intends to float.
KR1 (KR1) has contributed 350,000 Polkadot tokens to the Acala Network auction. It already has more than 10.2 million Acala tokens and more will be received after 96 weeks, when the Polkadot tokens will be returned. A further 350,000 Polkadot tokens were contributed in the auction of smart contract platform Moonbeam Network. Again, these will be locked up for 96 weeks and a undecided number of Moonbeam tokens will also be received.
Newly crowned Aquis company of the year DXS International (DXSP) reported a small dip in interim revenues from £1.72m to £1.62m, while pre-tax profit fell from £151,000 to £21,000. The second half is expected to be stronger, although additional costs will hold back profit. The healthcare IT provider continues to develop its cloud-based product and it is accelerating the development of products aimed at long-term conditions, such as diabetes.
Rogue Baron (SHNJ) is closing its Bin 1301 bar in Washington DC and concentrate on the bigger De Rhum Spot site.
Pioneer Media Holdings (PNER) is planning to acquire NGMI Labs Inc in return for four million shares. Pioneer has 45 days to undertake due diligence. NGMI was founded by three people with significant experience in the decentralised autonomous organisation (DAO) tokens sector.
Tectonic Gold (TTAU) expects to receive a tax rebate of $275,000 by the year end.
Yooma Wellness Inc (YOOM) has persuaded ASDA to stock 17 of its Vitality CBD products.
Scott Livingston has taken a 5.54%, not 5.16%, stake in Silverwood Brands (SLWD).
AIM
Marshall Motor Holdings (MMH) says that 64.4% shareholder Marshalls of Cambridge is thinking about selling its stake. Constellation Automotive has made it clear that it is interested.
Alien Metals (UFO) has acquired 30% of the Munni Munni project in Western Australia from ASX-listed Platina Resources for A$2.23m in shares and cash. This is one of the largest platinum group resources in Australia and it is near to the Elizabeth Hill project, which has platinum, silver, copper and nickel potential. Munni Munni has a historic non-compliant JORC resource estimate that suggests that there is 1.14 million ounces of palladium, 830,000 ounces of platinum, 152,000 ounces of gold and 76,000 ounces of rhodium. Artemis Resources owns the other 70%.
Telecoms billing and customer relationship management software provider Cerillion (CER) more than doubled its full year pre-tax profit from £3.7m to £8.5m, helped by much higher software revenues. New orders are building up and the order book is at record levels. The dividend was raised from 5.5p a share to 7.1p a share.
Driving safety technology developer Seeing Machines (SEE) has won its largest ever driver monitoring systems (DMS) order and raised £30.4m at 11p a share on the back of this announcement. The cash will be used for technology development and boost sales resources. The DMS deal, which has come through Magna International, is worth A$120m. In the year to June 2021, revenues improved from A$39.9m to $46.6m, while the loss was substantially reduced to A$16.7m.
Credit hire and legal services firm Anexo (ANX) has won a new contract with MCE Insurance to provide claims services for non-fault motorcycle accidents, which tends to be higher margin business. This will boost market share.
Appreciate (APPS) made the expected, although lower, loss in the first half, but the 50% increase in the interim dividend to 0.6p a share suggests confidence in the future. Revenues were 50% ahead at £41m with the faster growth coming in the consumer business even though the Christmas savings order book is lower. Appreciate has withdrawn from lower margin corporate business and there is volatility in bookings in recent months.
Asset management services provider MJ Hudson (MJH) achieved organic revenue growth of 14% and it is on course to grow full year revenues from £25.5m to £31m, helped by acquisitions, which would produce a pre-tax profit of £4m. Demand for ESG services is growing rapidly. On top of that, there is increasing outsourcing of the services provided by MJ Hudson.
Ashtead Technology (AT.) provides services and rents equipment to the offshore oil and gas and offshore wind markets. Services can be provided for installation, ongoing maintenance and decommissioning. It raised £15.5m at 162p a share to help it to grow internationally. The offshore wind services market is set to grow at 19% a year up until 2025. The shares ended the week at 162p.
Eneraqua Technologies (ETP) is well positioned to take advantage of the increasing focus on energy and water efficiency. It raised £12m at 277p a share and the shares ended the week at 285p. Eneraqua Technologies supplies and installs technology that improves energy and water efficiency in multiple occupancy social housing and commercial projects. The systems installed include the company’s Control Flow HL2024 technology, which will be manufactured in Spain. The order book for between August 2021 and January 2022 includes £22m of contracted revenues and there a further £21.3m of contracted revenues for the following two years.
Brickability (BRCK) is paying an initial £3.3m for HBS NE, which takes it into the renewable energy products market. It supplies and maintains solar, battery storage and electric vehicle charging. Brickability has relationships with housebuilders, which are being required to install EV charging points in new homes. Even before cross-selling, the deal is earnings enhancing.
Cyber security services provider Shearwater (SWG) reported a small decline in interim revenues due to lower services sales. Software revenues were flat, but margins improved. There is 50% visibility for second quarter revenues.
Treated sustainable wood producer Accsys Technologies (AXS) increased interim revenues by 31% in the first half. Accoya production remains limited because the new reactor will not go into service until next year. The Hull Tricoya plant will should commence production next July. The plans for the potential US Accoya plant are also progressing with a final investment decision expected in the next few months.
Omega Diagnostics (ODX) grew its health and nutrition revenues to pre-pandemic levels. Sales of the global health division also grew but Covid-19 test sales were disappointing. DAM Health has ordered £750,000 of tests since the end of the half year. Net cash was £3.9m at the end of September 2021. Omega remains loss making, and it is difficult to predict how quickly revenues will grow. There are some orders coming in for the VISITECT CD4 test.
Workflow technology provider ActiveOps (AOM) has improved gross margin and interim revenues grew by one-fifth. Annual recurring revenues are running at £19.8m.
MAIN MARKET
Packaging manufacturer and distributor Macfarlane (MACF) is trading ahead of expectations. Revenues are 25% higher than last year and the pre-tax profit is ahead of 2020. There are cost pressures and some customers have had supply problems elsewhere so their demand for packaging has reduced. Net debt was £2m at the end of October 2021.
BATM Advanced Communications (BVC) has announced a dividend of 0.74p a share.
JLEN Environmental (JLEN) is targeting a dividend of 6.8p a share in the year to March 2022. The interim dividend is more than covered by earnings. The portfolio of renewable energy and environmental assets has been diversified in recent years and that means that the company is not as dependent on revenues from wind power, which were hampered by low wind speeds in the period. Other assets performed well and there are plenty of investment opportunities in Europe. NAV is 98.4p a share.
Marine technology developer OTAQ (OTAQ) has secured a multi-year contract with Minnowtech. It will supply sonar technology for the jointly developed shrimp farming technology. Commercial launch is planned in Asia and the initial order will be more than $200,000. OTAQ owns 15.2% of Minnowtech. A major customer has given notice and OTAQ is seeking additional sources of funding.
Oxford Cannabinoid Technologies (OCTP) has signed an agreement with Dalriada Drug Discovery Inc of Canada, which will provide research and development services on compounds that Oxford Cannabinoid has access to via the Canopy Growth Corporation agreement.
Andrew Hore
Andrew Hore – Quoted Micro 10 August 2020
AQUIS STOCK EXCHANGE
National Milk Records (NMRP) generated revenues of £5.35m in the quarter to June 2020, down from £5.6m in the previous year. Milk recording revenues declined because of COVID-19 restrictions. There was limited disruption to other parts of the business. The second half of the year to June 2020 was still better than the first half.
British Honey Company (BHC) has signed a four-year global licensing and distribution agreement with English Heritage. Spirits will be sold under the English Heritage brand.
The Hellyer gold mine operated by NQ Minerals (NQMI) achieved record production levels in July. The new processing plant had a monthly throughput of 106,365 tonnes. There was 4,075 tonnes of lead concentrate, 1,509 tonnes of zinc concentrate, 461 ounces of gold and 89,854 ounces of silver produced.
Sport Capital Group (SCG) intends to refocus its investment strategy on the natural resources sector and change its name to Evrima. An investment has been made in Kalahari Key Metals Exploration. A share consolidation of ten shares into one new share is planned.
Clean Invest Africa (CIA) says that its subsidiary CoalTech has signed heads of agreement for a feasibility study and commercialisation of a 5,000 tonnes per month pelletising plant in New South Wales. The study will take three months and it would take a further nine months. The plant would be near to a power station.
MiLOC Group Ltd (ML.P) increased its revenues from HK$10.7m to HK$15.4m in the year to December 2019, but the loss still increased to HK$40.6m, partly due to stock write-downs. Both traditional Chinese medicine products and the company’s clinics made higher contributions to revenues.
Asia Wealth Group Holdings (AWLP) reported a decline in revenues from $2.4m to $1.43m in the year to February 2020. There was a swing from profit to loss.
AIM
NWF (NWF) benefitted from strong demand for heating oil and the slump in the oil price. There were bumper profits from the fuel distribution business in the year to May 2020. Operating profit nearly doubled to £11m and this won’t be repeated. Opening cost of the new Crewe facility led to a dip in profit contribution from food distribution. The feeds business increased market share but profit fell. Group pre-tax profit improved from £9.7m to £11.5m. A pre-tax profit of £10.7m is forecast for next year.
Telecoms hardware manufacturer Filtronic (FTC) reported full year figures in line with the recent trading statement and there was a small pre-tax profit. Revenues are building up as demand for 5G products increases. There is spare manufacturing capacity and efficiency will improve as capacity is used up. The US-based subsidiary is in a good position to win 5G orders.
Applied Graphene Materials (AGM) has signed two new distribution agreements. A deal with Arpadis Benelux will enable Genablle graphene dispersion technology to be sold in the main speciality chemicals markets in Europe. An agreement with Maroon Group provides access to the coatings and polymers sectors in North America.
Construction materials distributor Brickability (BRCK) generated revenues of £23.8m in the three months to June 2020. There was a loss in April but Brickability returned to profit in May and June.
Telecoms customer engagement software provider Pelatro (PTRO) is raising £21m at 47p a share. This will fund investment in sales and marketing and working capital. Pelatro is profitable but cash generation has been relatively poor, although it was better last year.
Lawyer Ince Group (INCE) has reported 2019-20 figures that show an underlying pre-tax profit of £7m, although earnings per share declined following share issues. The consolidation of international acquisitions has been completed and IT is being improved. First quarter trading is 10% below plan but the business is still profitable.
Intelligent Ultrasound (MED) was quick to develop a COVID-19 module for its machines and this helped to partly offset a drop in first half revenues. Losses continue but the potential launch of AI-based products in 2021 and 2022 will put the company in a good position to move into profit.
K3 Business Technology (KBT) is a much smaller business following the sale of its UK Dynamics subsidiary, but it has a more solid and profitable base. Interim revenues slipped from £27.9m to £27.2m. K3’s own IP contributed 48% of revenues.
Fulcrum Utility Services (FCRM) has a better base going into the year to March 2021, even though the multi-utility infrastructure services provider was hit by the construction lockdown in the first quarter. Housebuilding activity is improving. Operational inefficiencies are being addressed.
Entertainment events marketing services provider Reach4Entertainment (R4E) intends to leave AIM in order to save money and enable greater flexibility. The share price slumped after the announcement, but it has moved back above the price at the beginning of the week. Chief executive Marc Boyan has bought 70 million shares at 0.2155p a share. That takes his stake to 16.1%. Herald has sold its 14.4% stake and Matthew Freud has bought a 14.95% stake.
Pensions administrator STM (STM) says that interim trading was in line with expectations thanks to its recurring revenues and control of costs.
Mergers adviser K3 Capital (K3C) has acquired Quantuma Advisory, which is focused on insolvency and restructuring, for an initial £20.2m. A further £6.7m could be payable depending on performance over three years.
Yourgene Health (YGEN) is acquiring Coastal Genomics for an initial $5.5m and up to $8m dependent on performance. Vancouver-based Coastal is a sample preparation technology company. The technology complements Yourgene’s technology and gives it a North American base. Yourgene raised £15m at 17p a share.
MAIN MARKET
Castillo Copper (LON: CCZ) joined the standard list on 4 August. Castillo raised £1.3m at 1.7p a share and the share price ended the week at 2.45p (2.2p/2.7p). There are three core projects, but the one that management is focusing on is Mt Oxide. The plan is to develop a copper mine. The Ayra prospect is the main exploration target and £450,000 will be spent on the Mt oxide area. The other core projects are the Cangai copper project in Australia and the Zed projects in Zambia.
BATM (BVC) says Vodafone has completed proof-of-concept on the ARM-based uCPE, which includes BATM’s network functions vizualisation (NFV) operating system. Field trials are likely to follow. This shows that both the networking and biomedical have good growth prospects. Stifel forecasts a rise in BATM pre-tax profit from $4.8m to $7.7m in 2020.
Construction and infrastructure services provider NMCN (NMCN) had a strong first quarter but a tougher second quarter meant that interim pre-tax profit fell by three-quarters. Even so, an interim dividend of 10p a share has been announced, which partly compensates for the lack of 2019 final dividend. There was an improved performance in telecoms and water is at the lower point in the cycle. Construction sites are becoming more active. Progress Equity Research forecasts a full year pre-tax profit of £1.9m, before recovering to £7.6m next year. A forecast total dividend of 15p a share for 2020, would not quite be covered by earnings.
Seafox International was successful in persuading Gulf Marine Services (GMS) shareholders to appoint Hassan Heikal and Hesham Halbouny to the board of the offshore oil services provider. They each received 57.7% of the votes.
Standard list shell Boston International Holdings (BIH) had £310,000 in cash at the end of June 2020, although there is also an unsecured loan of £200,000.
Argo Blockchain (ARB) mined 165 bitcoin in July, down from 180 in June. There were problems in the middle of the month. Mining revenue was £1.25m in July.
Andrew Hore
Andrew Hore – Quoted Micro 16 March 2020
NEX EXCHANGE
Brewer Shepherd Neame (SHEP) edged up its interim profit helped by a strong performance from tenanted pubs and lower interest charges. In the six months to end December 2019, revenues were 3% higher at £79m, while underlying pre-tax profit improved 5% to £6.2m. Cost pressures held back the performance of the managed pubs. There was a fall in profit contribution from brewing. Net debt was £84m at the end of 2019. The interim dividend was increased by 2% to 6p a share. Brewing volumes have increased since the period end and like-for-like pub revenues continue to grow, although the rate is slower for managed pubs. Coronavirus has not had an impact yet but it is likely to.
Altona Energy (ANR) is raising up to £400,000 through an open offer to existing shareholders at 6.5p a share. That is a one-third discount to the previous mid-price. The cash is required to acquire a new petroleum exploration licence application in South Australia and the maximum will provide 12 months working capital. This will enable assessment of an in-situ gasification project. There is also potential for wind and solar projects in the area. There was an overdraft of £96,000 at the end of June 2019. The latest time for acceptance is 31 March.
European Lithium (EUR) reported a dip in interim income in 2019 from $23,817 to $3,365, while the loss was flat at $2.3m. There was $32,000 in cash at the end of 2019. There are convertible notes valued at $1.1m, some of which have been subsequently converted, but more have been issued.
KR1 (KR1) has been hit by weak Bitcoin and other cryptocurrency prices, but it had already banked some of its profit. The value of the remaining portfolio has dropped sharply. There will be an update shortly.
Rutherford Health (RUTH) has requested a subscription of £9.64m at 176p a share under the Woodford Commitment at the time of the company’s flotation. LF Equity Income Fund, formerly LF Woodford Equity Income Fund, will own 28.8% of the proton beam therapy company. This is the final subscription under the agreement.
Former investment banker Dr Keith Harris has been appointed as executive chairman of SAPO (SAPO) and Selwyn Lewis is joining the board as an executive director.
Fuel emulsification company SulNOx Group (SNOX) has filed an international patent application for its technology. It has already filed for the patent in the UK. The technology can be used for many fuels but the focus is diesel and heavy fuel oil.
Cannabis investment company World High Life (LIFE) has raised £2.36m from two issued of convertible loan notes with a 10% coupon. The conversion price is 100p a share.
Trading in First Sentinel 7% bonds, February 2023, First Sentinel preference shares and EPE Special Opportunities 7.5% unsecured loan stock, 2022 has been suspended because of the market maker temporarily withdrawing from market making activities.
AIM
OnTheMarket (OTMP) has ended its litigation with Connells and its subsidiary Gascoigne Halman. The property portal had already won a judgement in a Competition Appeal Tribunal and it was seeking the recovery of further damages. Earlier in the week, Ian Springett was dismissed as chief executive of OnTheMarket. He has a 12 month contract and earns £250,000 a year.
Geospatial software provider IQGeo (IQG) reported an increased loss last year, but that masks the progress made. Third party revenues declined. In 2019, total revenues fell from £9.98m to £7.81m, however, own product revenues increased from £4.74m to £5.55m, while recurring revenues contributed £1.63m, up from £918,000. More people were employed in sales and product development and operating expenses jumped from £6m to £9.5m. That is why the loss increased from £1.6m to £6.17m. There was still £13m left in the bank at the end of 2019, following £11m spent on buying back shares.
Mass spectrometry instruments developer Microsaic Systems (MSYS) continues to add to its partners. Last year, revenues rose 51% to £870,000 with the benefit of the newer agreements still to come. Higher development spending meant that the loss edged up to £3.1m. There was £2.62m in the bank at the end of 2019 and management admits it is assessing its options in terms of raising more cash.
Concrete levelling equipment supplier Somero Enterprises Inc (SOM) had a stronger second half, following the profit warning in the first half due to bad weather. The outcome in 2019 was slightly better than the previously downgraded expectations. Even so, revenues fell 5% to $89.3m and pre-tax profit was down by a similar percentage. The dividend was reduced by 1% to 18.75 cents a share. The additional dividend relating to excess cash (net cash was $23.8m) is 7.7 cents a share. Increased costs mean that there could be a further decline in profit this year.
Mark Greenwood has further increased his stake in Richland Resources (RLD) by buying the market and acquiring shares in a placing at 0.12p a share, which raised £100,000 for the company. Greenwood’s stake is 18.5%. The share price is one of the few AIM risers this month.
The Panoply Holdings (TPX) has acquired consultancy Ameo Professional Services, which generates 9-% of its revenues from the public sector. Ameo made a pre-tax profit of £1m last year and is being acquired for £7m in cash and shares, plus the distribution of £1.3m in excess cash.
Molecular diagnostics developer Yourgene Health (YGEN) is acquiring its French distributor and this will be immediately earnings enhancing. Yourgene will still make a loss in 2020, but the following year earnings per share will improve from 0.18p to 0.23p.
Open Orphan (ORPH) has reported positive results for the phase IIb field study of FLU-v vaccine, which has been developed by a 49%-owned joint venture. The results have been published in a journal. IP Group has cut its stake to below 3%.
Redx Pharma (REDX) says it has received a bid approach from Yesod Bio-Sciences, which is considering offering 15p a share. Redmile Group is making a mandatory offer of 15.5p a share, following its purchase of the 39.5% stake owned by Moulton Goodies, which obtained most of its shares at 5.25p each when it capitalised its £2.5m loan. Redmile owns 45.5% of Redx, which is valued at £29.5m. The board recommends the bid.
Brickability (BRCK) has made its second acquisition in one month. It is paying £6m for plastic fascia and guttering merchant U Plastics, which made a pre-tax profit of £1.3m in 2019.
MAIN MARKET
Moss Bros (MOSB) has agreed a 22p a share bid that values the suit hire and retail company at £22.6m. The bid vehicle is owned by people involved in the apparel sector, including Michael Shina of Crew Clothing. The main executives will be retained.
Motor dealer Lookers (LOOK) has discovered accounting irregularities. The fraudulent transactions in one of the operating divisions mean that the 2019 figures will be delayed until late April. These transactions should not be significant for the group. Chief operating officer Cameron Wade has resigned.
Standard list shell Hertsford Capital (HERT) has agreed the acquisition of oil services provider OTAQ Group for £12.4m through an issue of shares at 57.5p each (post-consolidation). A placing will raise £1.5m at the same price. OTAQ designs and supports products for the aquaculture and offshore oil and gas sectors. The focus is on growing the aquaculture operations. The company will change its name to OTAQ and be readmitted on 31 March.
Sure Ventures (SURE) is raising £250,000 at 100p a share, which is a premium to NA of 95.74p a share. This followed news of an investment by 25.9%-owned Sure Valley Ventures in AI security company Getvisibility. The fund has invested €750,000. The cash will be used to expand the business internationally.
Spinnaker Opportunities (SOP) has spent more than one year trying to finalise the acquisition of cannabis processor Kanabo Research and a commitment to invest £1.4m has been secured. At the end of 2019, there was £597,000 left in the bank.
Dev Clever (DEV) is acquiring Phenix Digital, a digital agency focused on the educational sector. It is paying £100,000 in cash and 3.57 million shares. There is an existing relationship between the two companies.
Andrew Hore
Andrew Hore – Quoted Micro 17 February 2020
NEX EXCHANGE
NEX and AIM-quoted Arbuthnot Banking Group (ARBB) says that there has been an increase in the level of confidence in its markets since the General Election. That was too late to have much effect on the 2019 results, but full year pre-tax profit will be at the upper end of expectations. Last year, customer loan balances rose by 31% and deposits by 22%.
Sativa Group (SATI) says that it welcomes the guidance from the Food Standards Agency on the safe use of CBD products and the timetable for novel food authorisation. Management points out that Sativa’s products do not include THC. Sativa expects to report 2019 gross profit slightly higher than expectations on lower than marginally lower than expected. Goodbody Wellness has piloted three retail stores, but they did not perform as well as expected. PhytoVista Laboratories has completed more than 3,000 tests on cannabis-based products. That includes Sativa’s own products and a new sports range is near launch. Medicinal cannabis-based development is focused on veterinary treatments.
EPE Special Opportunities (ESO) has increased its NAV by 55% to 317.2p a share following a strong performance by Whittard of Chelsea and a recovery in the share price of fully listed Luceco. Pharmacy2U continues to grow strongly. Last year, 2.3% of the shares in issue were bought back by the company. New investments are being sought for available funds.
Ethical housing investor Walls and Futures REIT (WAFR) increased its NAV by 15% to 106p a share in the year to January 2020. Chief executive Joseph McTaggart bought 1,991 shares at 61.75p each.
Hellyer gold mine operator NQ Minerals (NQMI) has raised a further £210,000 at 7p a share.
Investment company Primorus Investments (PRIM) has benefitted from the sharp share price rise in Greatland Gold (GGP) and the stake is worth two-fifths of the company’s market value. The current profit is £1.25m. Investee company TruSpine is on course to float in London this year. The spine stabilisation devices developer has gained a new cornerstone investor. Primorus is debt free.
Trading in the shares of Altona Energy (ANR) has been suspended because it has not published its annual report for the year to June 2019. Cash needs to be raised to keep the company going and management says that shareholders will be invited to participate in a fundraising. The company says it expects to publish the report in the next two weeks and blames the delay on a change of auditor and a new accounting treatment for its exploration licences. Final terms for the acquisition of the previously announced new petroleum exploration licence application are being negotiated.
SG Recruitment Ltd (SGRL) majority shareholder and chief executive David Sumner has also taken on the role as chairman after the resignation of Alan Kitchin and Katie Hiess from the board.
AIM
Brickability (BRCK) has acquired McCann Roofing Products for £2.75m. Essex-based McCann imports roofing and building products from Europe and generated a 2019 pre-tax profit of £700,000 on revenues of £8.2m. This deal adds additional suppliers to the group and should be immediately earnings enhancing.
Nostra Terra Oil and Gas (NTOG) has convened the requisitioned general meeting on 3 March. Eridge Capital wants to remove Matt Lofgran and Ewen Ainsworth from the board and replace them with Andrew Morrison. Eridge was previously known as former AIM company New World Oil and Gas. Nostra Terra’s subsidiary has loans that have a key man clause which stipulate that Lofgran has to be president of the subsidiary unless it give consent or there will be a default.
Drug discovery platform developer e-Therapeutics (ETX) has overhauled its board and raised £1.6m at 3p a share. Former Silence Therapeutics boss Ali Mortazavi becomes executive chairman. Ian Ross is stepping down to concentrate his role at Silence Therapeutics. Chief executive Ray Barlow and finance director Steve Medlicott are also leaving. An additional independent non-executive director will be appointed.
Gemfields Group Ltd (GEM) joined AIM last Friday. The share price ended the day at 11.7p.
Bidstack (BIDS) expects to have generated £150,000 from programmatic advertising for video games. That is much lower than previously hoped because it is taking much longer to get advertising agencies to take in-game advertising seriously. There was cash of £3.14m at the end of 2019 following a loss of £5.3m. There was £6m in the bank at the end of June 2019. First half revenues will still be small.
Knights Group Holdings (KGH) has acquired Nottingham law firm Fraser Brown Solicitors for up to £8.28m in cash and shares. This follows the purchase of Croftons Solicitors, which is based in Manchester, for up to £2.8m. A new revolving credit facility of £40m has been agreed and it lasts until June 2023.
Octopus Investments has cut its stake in Staffware (STAF) from 13.2% to 0.53%. Gresham House Asset Management increased its stake from 6.7% to 10.6%.
Filta Holdings (FLTA) says it should make an EBITDA of £3.2m in 2019. Cost savings and investment software will help the fryer management services provider to produce a much better performance in 2020.
Keystone Law (KEYS) has traded in line with expectations. Pre-tax profit is forecast to increase from £5.1m to £5.7m.
Hormonal disease treatments developer Diurnal (DNL) says that the FDA has accepted the new drug application for Akindi Sprinkle as a treatment for infants and children. Approval could be gained by the autumn and it will be the only licenced treatment specifically for children. There was cash of £4.6m at the end of 2019.
MAIN MARKET
Automotive information publisher Haynes Publishing (HYNS) is recommending a 700p a share bid from Infopro Digital, valuing the company at £114.5m. The two companies fit well together and will have greater scale.
Finance provider S and U (SUS) says that its figures for the year to January 2020 will be in line with expectations and trading has been getting better in the past few weeks. The used car market has held up well even though the new car market is week. This is why second hand car finance provider Advance should produce another record performance in 2020-21. Property bridging finance provider Aspen has made the progress hoped because of delays in repayments and the loan book is lower than expected, but it is still a young business. A 2019-20 pre-tax profit of £35.5m is expected to increase to £39m this year. The latest total dividend will be raised by around 5% to 124p a share.
JLEN Environmental Assets (JLEN) is raising cash from the placing of up to 49.7 million shares. This will fund a pipeline of investments. The bookbuild will close on 26 February.
Ultimate Products (UPGS) says that sales growth is easing this year with first half revenues 3% ahead at £67.7m. There is also uncertainty about the supply of products from China. Even so, Shore is maintaining its full year pre-tax forecast of £8.77m, a small increase on last year. That could change.
Zenith Energy (ZEN) is widening the geographic scope of its activities by negotiating to acquire an oil production licence in West Africa. Zenith has raised £135,000 through a share issue at 1.5p a share. It has also entered into an equity sharing agreement with a consortium of institutional investors. The nominal amount raised is £810,000, but the ultimate amount will depend on the share price when each tranche is paid over the next 12 months. The benchmark price is NOK0.2231/share, equivalent to around 1.85p. The share price is 1.43p, so the first instalment is likely to be below the notional level if there is no share price recovery.
BATM Communications (BVC) has gained a $1.3m order from a Middle East-based poultry firm for its agri-waste treatment system.
Fasteners supplier Trifast (TRI) says market conditions are more challenging and there has been a slow start to the fourth quarter, which is normally the strongest. Margins have fallen and profit will be at the lower end of the range of forecasts. The Coronavirus has led to the extended closure of Chinese sites, but this is a small percentage of production.
Cathay International Holdings (CTI) says that production at its plants is on hold or preparing to gradual resume production because of the effects of the Coronavirus. The hotel business has been hit by a sharp reduction in occupancy rates.
Avation (AVAP) has made firm orders for two ATR 72-600 aircraft that will be leased to US-Bangla, the largest private airline in Bangladesh.
Predator Oil and Gas (PRD) is raising £3.56m at 4p a share. This will finance the drilling of the Moulouya well in Morocco and provide cash for further investment in Trinidad.
Andrew Hore