Home » Posts tagged 'BVXP'
Tag Archives: BVXP
Andrew Hore Quoted Micro 28 October 2019
NEX EXCHANGE
Ashley House (ASH) is selling its stake in the Morgan Ashley joint venture to its partner for £2m, with £500,000 deferred for 12-months. Delays in the financial closure of projects has led to a shortage of funds at Ashley House and this deal means it does not have to put any more cash into the joint venture. The renewed focus will be modular buildings and the health and wellness buildings sector. Ashley House cannot work in the elderly care housing sector for three years.
Medicinal cannabis company Ananda Developments (ANA) says that 50%-owned DJT Plants has lodged an application to grow >0.2% THC cannabis. Ananda had net assets of £725,000 at the end of July 2019. That included cash of £162,000. In the six months to July 2019, more than two-thirds of expenses related to the licence application to the Home Office.
Clinical support systems supplier DXS International (DXSP) has been awarded a place on the NHS GPIT Futures framework from the beginning of 2020. This replaces the GPSoC2 framework and means that systems and services will be able to be bought centrally rather than with GP funds. DXS is on course to meet approvals for its specific systems and services. Three newly developed products will be placed on the NHS Digital Online buying catalogue.
Equatorial Mining and Exploration (EM.P) is changing its name to Eastinco Mining and consolidating 100 existing shares into one new share. It is also seeking shareholder approval for the ability to issue more shares. The share purchase agreement conditions for the acquisition of Eastinco have been satisfied. Six billion shares (this will be 60 million after consolidation) and £300,000 of nil coupon loan notes June 2025 have been issued. Heavy mining equipment is being transported to the Kuaka project.
Trading in the bonds of Via Developments (VIA1) has been suspended because a new independent non-executive director has yet to be appointed.
Woodford Investment Management has reported that it has cut its stake in proton beam therapy services provider Rutherford Health (RUTH) from 49.28% to 29.78%, but it is not clear who has acquired the shares.
Ace Liberty and Stone (ALSP) has declared an interim dividend of 0.83p a share and that will cost £359,000. The shares go ex-dividend on 7 November.
Panther Minerals (PALM) plans to consolidate 20 existing shares into one new share and shareholders are being asked to vote for the resolution at a general meeting on 14 November. Panther has been granted its first exploration licence in the Northern Territory. The Marrakai project licence is in the Pine Creek Orogen and covers just over 10 km2. There are a series of gold prospects and there has been previous drilling in the area.
AIM
Footwear retailer Shoe Zone (SHOE) has reassured investors that it will be able to achieve the downgraded pre-tax profit of £9.5m. Net cash of £11.3m at the end of September 2019 is better than expected.
Monoclonal antibodies developer Bioventix (BVXP) reported a 6% increase in full year revenues, although the underlying growth was 16% due to the inclusion of back dated royalties in the previous year. Underlying pre-tax profit was 14% ahead at £7.1m. A 47p a share special dividend is proposed on top of the final dividend of 43p a share. Vitamin D antibody sales increased by one-quarter and they account for 46% of group revenues.
D4T4 Solutions (D4T4) says that its first half trading was in line with expectations. Interim revenues of the data analytics and collection company were £8.8m and this should be one-third of the full year total.
Oil and gas producer President Energy (PPC) is acquiring additional acreage in Rio Negro province from the Argentine oil company CGC in return for assuming the liabilities related to the acreage. CGC is also subscribing for $1.825m worth of shares in instalments. The first instalment of $500,000 will be subscribed when the acquisition is completed. The total subscription could be the equivalent of 3% of President, depending on the share prices when the money is invested.
Thor Mining (THR) is raising £510,000 at 0.2p a share. The cash will be invested in the Molyhil and Bonya tungsten and molybdenum projects in the Northern Territory and a copper project in South Australia.
Vianet (VNET) says that its smart machines division is adding to its customer base and the contracts won in August mean that the growth will continue. Overall trading in the first half was in line with expectations.
MAIN MARKET
TNG (TNG) is seeking to join the standard list. The titanium dioxide project owner already has an ASX listing. TNG owns the TIVAN process that enables production of ultra-white titanium dioxide pigment. The Munt Peake project in Australia will be the first to use the technology. The project will also produce vanadium. A final investment decision will be made as early as next summer.
Fasteners supplier Trifast (TRI) has been hit by weakness in its main markets. There have been reduced volumes in the automotive market. The forecast pre-tax profit for the year to March 2019 has been cut from £22m to £20.3m.
Zenith Energy (ZEN) has raised £824,000 at around 3p a share from the placing in Norway.
Standard list shell Rockpool Acquisitions (ROC) has signed heads of terms with a company in Nevada, which will subscribe for £1.6m of shares and convertibles at an issue/conversion price of 12p a share. Rockpool will make a further loan of £750,000 to Greenview Gas, taking the total to £910,000, which will be convertible into 40% of Greenview.
J Smart and Co (Contractors) (SMJ) increased full year revenues from £8.56m to £16m. The pre-tax profit improved from £5.82m to £7.27m, although that was mainly due to the net surplus on property valuations rising from £2.86m to £4.05m. A lull in contracting work means that this year’s profit is unlikely to improve.
Cash shell Baskerville Capital (BASK) still had £1.5m in the bank at the end of June 2019.
Andrew Hore
Spectra Systems – To Significantly Exceed Expectations
Spectra Systems SPSY has been notified by its authentication technology licensee that royalties in 2017 will reach a record level to the extent that profits for the year to 31st December will significantly exceed market expectations. For 2018 it is expected that royalties will continue to be higher than average.
Bioventix BVXP is increasing its second interim dividend from 26p to 31p as well as paying a special dividend of 40p per share. after announcing what it describes as yet another set of excellent results for the year to the 30th June. Revenue for the year rose by 31% and profit after tax by 40%
System 1 Group plc SYS1 Trading for the six months to the 30th September has been slower than expected and in constant currency terms, gross profit is expected to show a 12% decline over the previous year. The company remains cautious about prospects because of what it describes as”our usual lack of revenue visibility”.
ConvaTec Group CTEC Organic revenue growth for the full year will be lower than expected after quarter 3 was severely impacted by a number of issues, including supply problems and lower than anticipated revenue from new products. The implications of growth on margins for 2018 are being reviewed. Third quarter like for like group revenue rose by 3.3% but it is now expected that full year organic revenue growth will be down to between 1% and 2%.
Polymetal Int. plc POLY enjoyed a robust third quarter with gold sales rising by 50% and gold output up by 38%. Total sales for the 3 months to the 30th September rose by 17% and gold equivalent production rose to record levels with a 26% increase over the previous year.
Physiomics PYC suffered from a 9% decline in total income for the year to the 30th June and losses for the year rose by 6%, resulting in the company’s cash position becoming constrained until a deal with a major client can be finalised. Active cost control measures have been put in place.
Beachfront villas & houses for sale in Greece http://www.hiddengreece.net
BT Caught Out in Major Fraud.
BT Group BT.A has reluctantly apologised for cheating on its Openreach customers over a number of years. After a whopping £42m fine which has now been imposed by Ofcom, it did not have much choice but it still has the audacity to try and get away with calling them “mistakes”. Ofcom takes a slighty different view and calls them “serious failings” and they were serious failings which BT doggedly refused to do anything about for three years.
Even after it had been caught out, BT refused for those three years from 2013, to pay any compensation to those of its customers who had suffered loss. In the end Ofcom has forced it to come to the table to agree a compensation figure which it is expected, will reach something in the region of £300m. BT laughingly blathers on about failing to adhere to its extremely high standards of customer service but makes no mention of action against any of its management who were responsible for what was in effect a major fraud.
Elecosoft plc ELCO saw a significant improvement in trading and financial performances in 2016 and the current year has started well. Like for like revenue on a constant currency basis for the year to the end of December rose by 8%. Profit before tax was up by 42%, EBITDA by 35% and basic earnings per share by 55%. The proposed final dividend is 0.25p, making a total of 0.4p for the year. Eleco also claims that it is well placed for trading post Brexit.
.png){kind=small}
YouGov plc YOU enjoyed a strong period of organic revenue and profit growth in the half year to 31st January. Revenue grew by 24% or 8% on a constant currency basis. Earnings per share were up by 21% and profit before tax by 27% on an adjusted basis. trading in the second half has started positively.
Gama Aviaton GMAA claims an exceptionally busy year for 2016 and a robust financial performance, with aircraft under management up by 12.2% and total revenue at record levels with a rise of 12.6%. US air revenue for the year to the end of December rose by 30% and ground revenue by 15%, as Gamma became a powerful market leader in the US. Europe however told a different story with air revenue down by 5% and ground revenue by 15% as it extricated itself from contracts it may have been better without and entered a restructuring programme. On a reported basis, profit before tax nearly tripled to $19.3m and earnings per share nearly doubled to $42.9m. the dividend is increased by 4%.
Villas & Houses For Sale in Greece; http://www.hiddengreece
Small cap awards 2016
Company of the year
Bioventix (BVXP)
Bioventix develops and supplies sheep monoclonal antibodies for clinical diagnostic applications. Bioventix originally joined ISDX (Plus-quoted) in 2010 at a share price of 198p and then moved to AIM in April 2014. The share price is more than five times the original flotation price in 2010.
The antibodies can be used in tests for specific ailments and illnesses and it can take one year to develop an antibody for a specific diagnostic test. Customers include Roche, Abbott and Siemens. The majority of revenues come in the form of royalties based on the number of tests using the company’s antibodies. Two antibodies, used in tests for heart failure and vitamin D levels, accounted for nearly three-fifths of revenues in 2014-15. Newer antibodies should help to reduce the dependence on a limited number of products, while one licensing deal with a major customer for one of the two main revenue generators ends in 2017. The vitamin D-related product is expected to continue to grow in importance.
The business is highly cash generative and Bioventix has a progressive dividend policy – this year the dividend is expected to increase from 32.6p a share to 40.2p a share. Pre-tax profit is expected to improve from £3.1m to £3.6m in the year to June 2016.
IPO of the year
Bilby (BILB)
Bilby joined AIM during March 2015 with plans to build a business focused on gas installation, maintenance, electrical, water and building services. The customer base is local authorities and social housing organisations in London and the south east. The initial acquisition at the time of the flotation was gas installation specialist P&R Installation and Bilby subsequently bought Purdy Contracts, which provides electrical services, for £8.07m.
Safety concerns mean that local authorities and housing associations need to spend money on repairing and maintaining gas boilers and pipes. Bilby has a strong position in the gas installation and services market and it can use this to build up revenues from its customer base in other specialisations.
Earlier this year, Bilby made two further add-on acquisitions providing gas and building services for social housing and local authorities. DCB, which will cost up to £4m, provides refurbishment, maintenance and disabled adaptation services in south east England. Spokemead Maintenance provides electrical and repair services and will cost up to £8.7m. A placing raised £5m at 118p a share. Via this placing, ISDX-quoted Western Selection (WESP) invested a further £545,000 and owns 5.9% of Bilby.
P&R has won preferred bidder status for gas support work for the South East Consortium, which is a group of housing associations that manage more than 140,000 residential properties. This framework agreement starts in 2016 and lasts for four years. It could contribute £7m to revenues in 2016-17 and the margin may be better than other work. A full year profit of £3.09m is forecast, rising to £4.88m in 2016-17.
Impact company of the year
Ashley House (ASH)
Care housing and health properties developer Ashley House joined the Social Impact segment of ISDX in February but it retained its AIM quotation. Ashley House moved from ISDX (Plus-quoted) to AIM in January 2007.
Ashley House developed its first GP surgery in 1991 and it provides services to help to resource, fund, community healthcare and supported living properties. The properties are energy efficient. There is a pipeline of 32 schemes with a value of £186.7m, with the vast majority of this pipeline relating to supported living properties. This is despite the fact that there has been uncertainty about housing benefit. Ashley House blames a lack of government funding for the rentals on healthcare properties for the slowdown in activity in this part of the business since 2010.
In the six months to October 2015, revenues jumped from £5.6m to £10.6m and went from a loss to a small profit. Net debt was £2.6m at the end of October 2015. The company has £10.7m of tax losses. A full year profit of £1.1m is forecast, rising to £1.5m in 2016-17.
Executive director of the year
John McArthur – Tracsis (TRCS)
Transport optimisation services and software provider Tracsis has a strong growth record and has got into good habits, such as beating its broker’s forecasts, and that is reflected by the premium rating. John McArthur has guided the company as its chief executive since it floated at a market capitalisation of £7m at 40p a share back in 2007. The share price has risen by more than 1,000% and the company is currently valued at around £127m.
Tracsis made solid progress at the interim stage but it is expected to do much better in the second half thanks to higher contributions from last year’s acquisitions Ontrac and SEP Events, which provides events management and parking services and is second-half weighted. In the six months to January 2016, revenues increased by 19% to £14.3m, organic growth was 7%, with adjusted pre-tax profit flat at £3.2m, excluding the Australian business sold in the period. The growth came in the software and consulting operations. Sales of remote condition monitoring equipment remain flat because of a lack of demand from framework agreements. There is potential for significant sales in the US but this will not contribute in the short term.
The interim dividend was raised by one-quarter to 0.5p a share but that will not put much of a dent in the cash pile of £8m. That cash figure was reduced due to acquisition spending but it should grow until there are additional acquisitions. Full-year profit is expected to improve from £5.6m to £6.8m.
Transaction of the year
1PM (OPM) acquisition of Academy Leasing
Small business finance provider 1PM is growing rapidly on the back of the lack of lending by banks to the smaller end of the market and it has still managed to keep bad debts low. Academy Leasing was acquired for up to £12m at the end of last August. This is the company’s first major acquisition. 1PM has been growing its profit for six years having recovered from the downturn in 2008 and the strategy is to treble the market capitalisation of the business to £100m.
Warrington-based Academy provides finance for the acquisition of equipment with the leads coming from the equipment suppliers. The strategy is to provide finance for every opportunity but riskier opportunities tend to be broked-on in return for commission.
The businesses have been integrated and the management team rationalised, with the former chief executive of 1PM leaving. The chairman Ian Smith has become chief executive with three main executive directors reporting to him. These three cover sales and marketing, strategy and risk and finance. The first two came from Academy.
More recently, 1PM acquired Bradgate, which provides finance for businesses buying construction, recycling and haulage equipment, for up to £2.75m and a book of receivables for £1.6m. Full year profit is expected to nearly double to £3.1m but more importantly earnings per share are forecast to improve from 3.7p to 5.1p.
Alternative financing deal of the year
Capital for Colleagues (CFCP)
ISDX-quoted Capital for Colleagues provides finance that helps employees to invest in the businesses they work for. Last year, Capital for Colleagues raised £302,000 at 59p a share from a crowdfunding campaign via CrowdBnk. The minimum target was £250,000.
Capital for Colleagues raised £2.19m at 50p a share when it joined ISDX on 17 March 2014 and last August it became a member of the Social Stock Exchange. The company has investments in 14 employee-owned businesses, as well as a portfolio of quoted shares in companies’ that have significant employee involvement. Subsidiary C4C Ownership Partners provides advice and support to employee-owned businesses or companies looking to turn themselves into an employee-owned business.
Capital for Colleagues invested £770,000 in employee owned businesses in the six months to February 2016. Interim revenues grew from £257,000 to £364,000 but admin costs increased significantly so, excluding unrealised gains, the pre-tax profit dipped from £41,000 to £34,000. Unrealised gains slumped from £47,000 to £6,000. The net asset value was £4.2m at the end of February 2016 and £1.15m has been raised at 59p a share since then. There are still plenty of opportunities for new investments as well as additional investment in existing investee companies.
Analyst of the year
Charles Hall – Peel Hunt
Journalist of the year
Simon Thompson – Investors Chronicle
Adviser of the year
Zeus Capital
Fund manager of the year
Conor McCarthy and Darren Freemantle, MFM Techinvest Special Situations