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Quoted Micro 25 November 2024
AQUIS STOCK EXCHANGE
Cooks Coffee (COOK) moved back into profit in the six months to September 2024. Revenues were 27% higher at NZ$2.74m with growth coming from new openings and existing sites. This income comes from fees from franchisees. Like-for-like growth in the UK was 6% and 3% in Ireland. Sales growth has accelerated in the second half with record sales per store in October. There were 83 coffee shops at the end of September 2024, and this could rise to 90 by next March. The company is moving domicile to the UK.
In the year to September 2024, Time to ACT (TTA) increased revenues from £958,000 to £1.67m. There was an underlying operating profit. There was a cash outflow from operating activities of £784,000 because of working capital movements. There was £1.17m in cash.
Global Connectivity (GCON) has had its stake in Rural Broadband Solutions diluted to £9.5m. The valuation of the stake has been reduced from £13.6m to £11.7m, which is equivalent to 3.2p/share. There is an agreement in principle for an investment in a new business.
Aquaculture technology developer OTAQ (OTAQ) has sent out the circular seeking shareholder approval to leave Aquis. The general meeting will be held on 10 December. Delays in orders mean that 2024 Dowgate forecasts a drop in revenues from £4.4m to £3.1m (previously £4.2m) this year and a £1.8m loss, up from £1.2m in 2023. There should be net cash of £100,000 by the end of the year. Convertible loan note interest can be capitalised with up to 75% of proceeds from the sale of certain inventory will be used to pay back the holders.
Lift Global Ventures (LFT) core financial information business Miriad made a positive contribution despite the tough financial markets. It generated £127,000 in cash. There was £163,000 in cash at the end of June 2024.
Invinity Energy Systems (IES) has sent a circular to shareholders to gain approval to move the domicile from Jersey to the UK.
Tap Global Group (TAP) has cancelled its long-term incentive plan and granted options to directors with most of the options vesting when there are increases in the share price. Peter Wall has been formally appointed as chairman.
Marula Mining (MARU) has appointed Morre Kingston Smith as auditor. Results from metallurgical testing work on ore from the Kinusi copper mine should be available in the first quarter of 2025. Further test shipments will happen before the end of the year. Sampling work of high-grade tungsten deposits at the Northern Cape lithium and tungsten project in South Africa is continuing. Tungsten concentrate could be produced next year.
Oscilate (MUSH) has identified areas to start hydrogen operations in Minnesota. Work is under budget.
Valereum (VLRM) has been admitted to the Apex segment of the Aquis Stock Exchange.
Vinanz Ltd (BTC) has added another 21 bitcoin miners to its site in Nebraska, taking the total to 56.
RentGuarantor Holdings (RGG) has launched an offer of £500,000 10% convertible loan notes lasting two years. This will fund an expansion of the workforce. The Renters’ Rights bill will increase demand for rent guarantor services.
SuperSeed Capital (WWW) reported a NAV of 111p/share at the end of September 2024.
Capital for Colleagues (CFCP) has disposed of more shares in investee company Computer Application Services and raised £299,000. It still owns 24.4%. Pipes and valves distributor TPS shares were sold raising £901,000. The remaining TPS stake is 16%. The cash raised will be invested in other businesses.
WeCap (WCAP) investment WeShop has appointed a US investment bank ahead of a flotation. Audited accounts for 2022 and 2023 have been signed off.
AIM
Rail optimisation software and services provider Tracsis (TRCS) had a tough year, but strong recurring revenues helped. One-off revenues the previous year meant that revenues were 1% lower at £81m. Underlying pre-tax profit fell from £14.1m to £10.4m. Total dividend is 2.4p/share. There should eventually be further investment in the rail industry, which will be good news for Tracsis. The timing of the spending is uncertain. There are already potential deals in the pipeline, though. The business has been rationalised so that management can focus on core operations and further acquisitions. There is £19.8m in cash that can be spent on acquisitions that will enhance earnings.
Telecoms enterprise software supplier Cerillion (CER) continues to beat expectations. Full year pre-tax profit was 18% ahead at £19.8m. There were record new orders of £38.1m. The technology helps telecoms companies to operate more efficiently. Growth is set to continue.
It was no surprise that telecoms testing equipment supplier Calnex Solutions (CLX) had a tough first half. Revenues dipped from £7.8m to £7.4m and the loss more than doubled to £1.3m. Even so, the interim dividend has been maintained at 0.31p/share. Cash was reduced to £8.6m. New partners are starting to sell group products, and they are replacing Spirent. Second half revenues should be better than the particularly weak comparatives. This should enable a return to profit for the full year.
Semiconductors developer CML Microsystems (CML) improved interim revenues, but that was down to the Microwave Technologies business not being included in the comparatives. Like-for-like revenues were similar to the second half of last year. Pre-tax profit slumped from £1.9m to £800,000. The interim dividend is maintained at 5p/share. Net cash is £15m. There are potential property sales that will boost the balance sheet. The proposed move of Microwave Technologies to a new site will reduce the cost base. Existing and new products have good long-term prospects.
Frontier IP (FIPP) is raising £3m via a placing and subscription at 28p/share. A retail offer via Primary Bid could raise up to £1m. Minimum subscription is £250. The offer closes at 5pm on 25 November. Frontier IP made unrealised gains of £1.3m in the year to June 2024, but there was an overall loss of £1.3m. NAV is 79.7p/share. Despite that, there is a shortage of cash in the balance sheet and the additional cash should last 12 months as the company tries to generate some additional cash from investment realisations.
Helix Exploration (HEX) drilling at Clink#1 in Montana has been successful. There was 2.5% helium encountered in the Flathead formation, which was higher than expected, and 55% hydrogen in drilling mud. Testing is ongoing and there should be further news in the near future. The well could go into production next year.
Tavistock Investments (TAVI) is acquiring Alpha Beta Partners, which is an asset manager with £3bn under management. The business is focused on retail investors, and this will scale up the existing business of offering asset management services to third party advisers. Operating profit was more than £500,000 on revenues of £4m in the year to September 2024. The initial payment is £6m, with the maximum consideration of up to £18m. Two disposals have been completed and the initial payment of £22m will be received in early December. They could eventually generate £37.75m.
Iron treatment provider Shield Therapeutics (STX) says it will hit the 2024 target revenues of $31.5m, up from $13.1m, as revenue peer prescription has increased. Recruitment has been completed for an Accrufer phase III study in China. The proposed $10m investment by AOP Health still requires shareholder approval. Costs are being lowered by 10%. Cash flow breakeven should be hit by the end of 2025, if the sales growth momentum continues.
Chain and transmission equipment Renold (RNO) reported flat interim revenues of £123.4m and pre-tax profit of £11.3m. Spending on acquisitions increased net debt to £42.2m. There was a dip in chain revenues and transmission revenues were slightly higher with improved margins. North America should recover in the second half and destocking is ending in Europe. The Valencia factory being hit by flooding has hurt sentiment. There will be additional short-term costs of £4.8m because of this with insurance payments potentially coming through in 2025-26.
Webis (WEB) has decided to leave AIM. The US-focused gaming company will seek shareholder approval on 18 December. This will help to reduce costs. The operations remain loss making.
Churchill China (CHH) had a tougher second half than expected with a lack of seasonal uplift in the fourth quarter. This means that 2024 pre-tax profit will be well below expectations. Next year is expected to continue to be weak with hospitality businesses hit by higher National Insurance costs. There will also be a hit for Churchill China and costs are being reduced, but 2025 expectations are also downgraded. The balance sheet remains strong.
Scientific instruments supplier Judges Scientific (JDG) says order intake has reduced if the large Geotek contract is excluded. China is particularly weak, but other markets are also tough, and orders have been deferred. Zeus has cut its 2024 pre-tax profit forecast by 19% to £25m. Next year’s forecast has also been trimmed.
Ilika (IKA) has reached the D6 milestone through the testing of 10Ah cells in its Goliath solid state batteries for electric vehicles. These larger cells have been shown to be safe and the D7 version should be available to potential customers in the second quarter of 2025. This moves the company nearer to finding a partner for the Goliath battery.
Property fund adviser and investor First Property (FPO) had a good first half with one-off profits from the trading of properties by a fund, where the company has an investment. There was also the early receipt of fees from disposal of properties in another fund. There was a swing from a loss of £650,000 to a pre-tax profit of £1.16m. Net debt was £18.7m.
Cannabis-based medicines developer Celadon Pharmaceuticals (CEL) has received a further £200,000 drawdown from the committed credit facility and the lender is committed to providing the remaining £500,000. However, it has to sell an investment to provide the cash. There is still £400,000 outstanding from a share subscription. Celadon Pharmaceuticals has enough cash to get it to January. Talks with another lender continue.
MAIN MARKET
Construction equipment hire company Speedy Hire (SDY) made a small profit in the first half with a recovery expected in the second half. Interim revenues fell 2% to £204m with flat hire revenues and lower fuel sales. Volumes are not being chased so that profit can be maximised. Pre-tax profit was £300,000 because of operational gearing, higher interest charges and a lower joint venture contribution. The Amey contract starts in the second half. Net debt is £112m.
J Smart and Co (Contractors) (SMJ) improved its full year pre-tax profit from £105,000 to £2.37m despite a higher loss on construction activities. The investment property business made a larger contribution. Investment properties are worth £70m and there is £7.5m of net cash. NAV is £126.3m. The total dividend is 3.23p/share.
Media Concierge has approached publisher National World (NWOR) about a possible offer of 21p/share. Media Concierge claims to have the backing of 72.2% of the share capital. Media Concierge wants the offer to be recommended by the board and to be able to complete due diligence. National World claims that entities affiliated with Media Concierge owe it £4.4m.
Technology consolidator Sealand Capital Galaxy (SCGL) is making its maiden AI investment. After evaluating suitable opportunities, the company has decided on EVOO AI (www.evoo.ai), which is a data platform with AI learning models incorporated. It provides insights to the luxury goods sector, such as market trends and consumer behaviour. The main product is Olive, a luxury e-commerce marketplace that offers personalised shopping. The company was incorporated on 15 December 2023. On 14 March 2024, EVOO AI had net assets of £848,000, including fixed asset investments of £800,000 and £1 in cash. The plan is for Sealand Capital Galaxy to invest in a convertible loan note. The first tranche is £200,000 and the second trance will be £100,000. The annual interest rate is 12% and the term is 18 months. Interest is payable on maturity. There will be a fee of one million warrants exercisable at €0.06/share. If the company floats at a lower share price the exercise price will match that price.
Andrew Hore
Quoted Micro 8 July 2024
AQUIS STOCK EXCHANGE
Sheffield-based AI software company IntelliAM AI (INT) joined Aquis on 3 July. It raised £5.08m at 94p/share. The acquisition of 53 Degrees North was completed after admission. This adds a range of asset care consulting and management strategies for manufacturers to the group. Customers include food manufacturers, consumer and industrial businesses.
Voyager Life (VOY) says M3 Helium’ is drilling a vertical well at the Hugoton North Play project in Kansas. Voyager Life has an option to take a stake in M3 Helium.
Coinsilium (COIN) has been signed a collaboration agreement with Web3b developer Lifeflow Inc, which will have access to $1m of dedicated seed funding. Investee company Greengage is collaborating with global crypto currency exchange Coinbase. Coinsilium is purchasing $75,000 of future tokens in the early backers round of the Otomato Web3 automation protocol. There is an option for $150,150 future tokens.
Inqo Investments (INQO) has invested in Pabidi Lodge Budongo Ltd in Uganda. This lodge and ten luxury tents are expected to be open by the end of 2024.
Tap Global Group (TAP) has secured a commercial agreement with Tap N Go for the launch of the XTP cashback programme. XTP is a token for trading via Tap Global exchange services.
Eight Capital Partners (ECP) was hit by a £14.6m unrealised loss on its investments in 2023. That is predominantly down to a reduction in the value of a bond issue by 1AF2, which is due for repayment on 22 July. NAV has declined from £25.3m to £12.8m. Net debt is £862,000. Even so, the share price improved.
Valereum (VLRM) has completed the £2m raising from chairman James Formolli, while a warrant exercise has generated £9,458. Shares were issued at 0.36p each and on top of that he received 15 million GATE tokens. The cash will finance the growth of the business and development of the GATE token.
Shares in Watchstone Group (WTG) went ex-dividend on 4 July. It is returning 8p/share in cash.
Chris Potts reduced his stake in Shortwave Life Sciences (LON: PSY) from 15.2% to 11.65%. Jonathan Bellis has a 3.4% stake in Hot Rock Investments (HRIP).
Trading in Marula Mining (MARU) shares was suspended because the 2023 accounts have not been published.
AIM
Workflow efficiency software supplier ActiveOps (AOM) increased annualised recurring revenues by 14% to £25.1m by the end of March 2024 as existing clients continued to spend more on top of the new contract gains. There was cash of £17.6m at the year end. There was a jump in pre-tax profit to £1.9m, but further investment in the business means it could fall to £1.4m this year. The growth in recurring revenues is the most important thing, though.
Semiconductors designer CML Microsystems (CML) had a tough year to March 2024 and this year will also be difficult, but design wins mean that the longer-term outlook is more positive. Revenues grew from £20.6m to £22.9m, although that was due to a near-six month contribution from last year’s acquisition MwT. Underlying pre-tax profit dipped from £3.6m to £3.1m. Destocking by customers and a change in product mix hit profit. A further dip in profit is expected this year, but new contracts and a broader product range, including new digital radio technology DRM, will improve revenues in two to three years. The balance sheet remains strong with net cash of £18.2m.
Professional services network operator DSW Capital (DSW) reported full year revenues fell by one-fifth to £2.4m and pre-tax profit declined from £1.4m to £500,000. The total dividend was cut from 3.8p/share to 2p/share. That is not covered by earnings, but management eventually intends to return to paying up to 70% of distributable earnings in dividends. Net cash is £2.3m.
Bluejay Mining (JAY) says there are indications of potential helium and hydrogen accumulations at the Outokumpu licences in Finland. There is up to 5.6% helium and 46% hydrogen, plus other gases. Seismic data has been acquired to identify high potential areas. Helium and hydrogen is the new focus of the company. Non-exec Roderick McIllree bought six million shares at 0.35p each.
Helium One Global (HE1) is making progress at the Rukwa project. An extended well test will start later this month. The required equipment is being delivered. A feasibility study is underway.
Pipehawk (PIP) shares slumped 75.3% to 2.1p because of financial difficulties at QM Systems, which had moved to larger premises. Two large orders have not been obtained. QM Systems is likely to be put into administration. QM Systems accounted for 65% of group revenues last year and lost £970,000. The rest of the group should be able to continue as a going concern, although continuing activities made a loss in the year to June 2023.
Martin Andersson has stepped down as executive chairman Chaarat Gold Holdings (CGH) as the company is in restructuring discussions with Labro Investors, which he is associated with. He remains a non-exec. David Mackenzie is acting chief executive. The company has enough cash for the next few weeks but cannot fund the $1.2m repayment due on the Labro convertible loan in September. The restructuring discussions relate to this.
Linear generator technology developer Libertine Holdings (LIB) has entered into a conditional subscription agreement with equity investors based in India and Dubai. This could raise £2m at 1.5p/share. This would involve the issue of shares equivalent to 49% of the enlarged share capital. This would provide funds for working capital until June 2025, but Libertine is not likely to breakeven in that time frame.
Mercia Asset Management (MERC) assets under management have reached £1.8bn, helped by a new mandate from the British Business Bank. EBITDA was £5.6m in 2023-24 and the strategy is to double that figure in three years. NAV improved to 43p/share, including £47m in cash, despite the 2p/share write down of the investment in engineering firm Impression Technologies.
Retailer Shoe Zone (SHOE) has been hit by higher freight costs and weaker spring trading, which has led to a reduction in pre-tax profit estimates for the year to October 2024 from £13.8m to £10m. Last year’s pre-tax profit was £16.5m and revenues are likely to be 1% lower. A total dividend of 6.5p/share is forecast.
Fulcrum Metals (FMET) has exercised its option to acquire the Chariot-Neely Lake, South Pendleton and Snowbird uranium projects in Canada. Fulcrum Metals intends to sell these and the Fontaine Lake project to Vancouver-based Terra Balcanica for C$300,000 in cash and C$3.1m of shares when it has completed agreed exploration spending over the next four years. Fulcrum Metals will also retain a 1% net smelter return royalty.
MAIN MARKET
BATM Advanced Communications (BVC) has signed a strategic partnership with a global technology group to market its cyber encryption technology to the civil commercial markets around the world. The partner will pay at least $2.1m over two years to develop a combined hardware and software product off.
Filtration technology supplier Porvair (PRV) had a tough first half with destocking holding back progress. In the six months to May 2024, revenues grew from £90.6m to £94.6m, but higher interest charges meant that underlying pre-tax profit fell from £11.8m to £11.5m. This includes an initial contribution from mist elimination filters producer European Filter Corporation (EFC) of £1m to operating profit and it accounted for the growth in revenues of the aerospace and industrial division. The interim dividend was raised by 5% to 2.1p/share and the full year forecast is 6.3p/share. Net cash was £4.1m after the payment for EFC.
Andrew Hore
Quoted Micro 1 April 2024
AQUIS STOCK EXCHANGE
Incanthera (INC) has published an update on its distribution deal with Marionnaud. The first order for Skin + CELL products will generate revenues of £2m with 50,000 bottles of skin cream to be supplied for sale in Austria and Switzerland. A second order will be even bigger. The management projects revenues of £10m for the year to March 2025 and this would make it profitable. The range is being increased to five products and they are all part of the initial launch. Revenues could grow to £33m the following year. There is potential for licence deals in other countries.
Watchstone Group (WTG) says a subsidiary’s VAT appeal was dismissed even though it satisfied four out of five elements. A decision will be made on whether to appeal the judgement.
TruSpine Technologies (TSP) intends to issue a conversion notice to loan note holders. The conversion price is a 130% premium to the share price prior to the convertible loan note approval by the directors. A £200,000 debenture has been used to subscribe for convertible loan notes. Geoffrey Miller has increased his stake from 6.88% to 7.24%.
Quantum Exponential Group (QBIT) has announced a further adjournment of its a general meeting to gain shareholder approval for leaving Aquis. Investors have approached the quantum technology investment company and offered to make a substantial investment. Stuart Woods has stepped down from the board.
Cadence Minerals (KDNC) investee company European Metals Holdings (EMH) says that the Cinovec project in the Czech Republic is in the process of completing a definitive feasibility study, but it will not be completed in the first quarter. There is potential to improve the lithium processing. Cadence Minerals has increased its stake in the Amapa iron ore project in Brazil to 34%. A study should reduce costs and improve productivity of the proposed mine.
S-Ventures (SVEN) increased interim revenues from £8.4m to £9.6m but reported a higher loss from continuing operations. The bakery business was profitable, but this did not offset losses and impairment costs for other businesses. There is no further news on the proposed sale of operations to AIM-quoted Riverfort Global Opportunities.
KR1 (KR1) had net assets of 134.6p/share at the end of February 2024. There was income generated of £1.63m.
Arbuthnot Banking Group (ARBB) increased its pre-tax profit from £20m to £47.1m and the total dividend was raised from 42p/share to 46p/share. Bad debts were lower than forecast. NAV is 1547p/share. The profit is likely to fall this year.
Global Connectivity (GCON) is amending the terms of warrants issued when it floated and extending them by two years to 20 April 2026. The exercise price is being reduced to 1.5p. Management is exploring potential investments.
Marula Mining (MARU) has commenced exploration at the Larisoro manganese mine in Kenya.
Valereum (LON: VLRM) has raised £300,000 at 6p/share from its chairman and is planning a larger fundraising in the third quarter of 2024.
Jenny Hanlon has been appointed as chief executive of brewer Adnams (ADB). She is currently finance director.
Tap Global Group (TAP) generated trading payment volumes of £181.6m in 2023. That generated revenues of £2.02m, but the loss was still £1.07m.
EPE Special Opportunities (EO.P) had net assets of 324p/share at the end of January 2024. There was £15.3m in cash offset by £4m in loan notes repayable on 23 July.
Gunsynd (GUN) investee company Aberdeen Minerals is raising £3m at 8.5p/share from Central Asia Metals with a further £2m that could be raised from the exercise of warrants at 11p/share. This deal requires regulatory approval.
Lift Global Ventures (LFT) investee company Trans-Africa Energy has received funding of £12m from an African investor. The first energy infrastructure investment is in Ghana. Lift Global Ventures’ core investor relations business generated cash in the first half, although there was a cash outflow for the group as a whole.
Aiden Keegan has been appointed chief executive of Cooks Coffee Company (COOK).
Philip Blows reduced his stake in Supernova Digital Assets (SOL) from 10.6% to 7.98%. There was £68,000 in the bank and £1.95m in investments at the end of October 2023. NAV was £2.93m.
Daniel Thwaites (THW) director RAJ Bailey bought 15,000 shares at 71p each.
AIM
Marine technology developer Windward (WNWD) has cut its loss and is heading towards profitability. The 2023 revenues were $28.3m, up from $21.6m. Windward started 2023 with an annual contract value of $25.5m and that has risen to $34.5m, while the 2024 forecast revenues have been edged up from $34.5m to $35.1m. Requirements for tracking cargo and ensuring that sanctions are complied with are helping to increase demand, particularly from commercial clients. Commercial revenues increased to 30% of the total for 2023, but government revenues are also growing.
Grocery distributor Kitwave Group (KITW) has made its latest acquisition, and this will be earnings enhancing. Total Foodservice Solutions is a food wholesaler with two depots based in the north of England. The customer base includes pubs, restaurants, universities and care homes. The gross cost is £21m and that is reduced to £17m when cash in the business is taken into account.
Strong growth at the Billi filtration systems helped Strix (KETL) have a better second half, but the limited recovery in kettle controls and lower consumer goods sales meant that pre-tax profit was slightly lower at £21.9m. There is no dividend. There should be an improvement in profit this year, but it will still be well down on the 2021 figure. Net debt was £83.7m and could fall below £79m by the end of 2024.
Good Energy (GOOD) had a strong performance in 2023 due to high energy prices, but 2024 will not get that benefit and energy supply profit will fall sharply. In 2023, pre-tax profit doubled to £5.7m, but the 2024 forecast has been downgraded from £8.4m to £6.7m. The energy services business, including solar and heat pump installation, is being built up and it will become a more significant profit contributor over the next couple of years making the group performance less volatile.
Floorcoverings manufacturer Airea (AEIA) increased sales of its Burmatex-branded product by 14% to £21.1m. Pre-tax profit was flat at £1.4m, although it included a small valuation gain in the latest year. Higher finance costs relate to the pension scheme and operating profit increased. The net asset value is £14.9m, including net cash of £3.4m. Strong cash generation can cover the £5m investment in new capacity and a 10% increase in the dividend to 0.55p/share. The new capacity should be ready in early 2025 and will enable Airea to take advantage of own brand opportunities for clients.
Revolution Bars Group (RBG) is assessing its options that include restructuring the business or selling all or part of the operations. There are currently no bidders. Luke Johnson is involved in talks concerning a fundraising.
Semiconductor designer CML Microsystems (CML) is being hampered by lower than expected shipments as clients reduce stocks and this is continuing into the new financial year. In the year to March 2024, revenues will be slightly lower than expectations at £23m and underlying EBITDA will be £6.4m, compared with a forecast £6.8m, due to more sales of lower margin products. Full year pre-tax profit will be just under £3m. The balance sheet remains strong with net cash of nearly £18m. The full benefits of the Microwave Technology acquisition, which has performed well, will show through over the next couple of years.
Horizonte Minerals (HZM) published the latest financing estimate for the Araguaia nickel project. The cost to complete is $454m, but the full funding required is $567m-$592m, including pre-production and transaction costs. Existing liabilities are $418, and they require restructuring. More cash will be required by mid-April. Interest payments are being deferred. Existing shareholders are not in a strong position.
A more positive trading statement from film and video translation services provider ZOO Digital (ZOO) as management believes that demand should recover following the disruption of recent strikes in Hollywood. Revenues of $40m are now expected for the year to March 2024. A new film and TV distribution client has been won and there is greater visibility of work. The company still might not move back into profit in 2024-25, though. There is potential disruption from a craft workers strike in Hollywood.
Boilers developer Inspirit Energy (INSP) is near to completing the four electronic updates for its waste heat recovery system. The team is relocating back to the UK. The cash outflow was stemmed in the six months to December 2023.
Infrastructure India (IIP) shares returned from suspension when the interims to September 2023 were published. The board is proposing a winding-up of the company as it disposes of its assets and the share quotation will be cancelled if the proposals are passed at the AGM. Net liabilities are £217.4m.
Drug discovery company C4X Discovery (C4XD) also plans to cancel its AIM quotation and re-register as a private limited company if it gains shareholder approval at a general meeting on 15 April. Shareholders owning 57% of the shares are in favour. Management believes that it will be easier to raise funds as a private company and it will save money. C4X Discovery has raised £63m on AIM. In August 2022, £5.7m was raised at 25p/share. There is still £20.8m in the bank. In the six months to January 2024, revenues were £24.6m, due to milestone payments, compared with £1.7m in the first half of the previous year. The company is generally loss-making without substantial milestone payments.
Oil and gas producer Molecular Energies (MEN) is cancelling its AIM quotation because it does not believe it is worth the cost. The company should save £500,000/year. Chairman Peter Levine, who owns 29.2%, suggests that he may offer to buy shares of some other investors in the future, but there are no immediate plans to offer an exit prior to the cancellation. Green House Capital will no longer be spun off on AIM.
Infection protection technology developer Byotrol (BYOT) has been quoted for nearly 19 years and it has decided to leave AIM. Revenues from continuing products could improve from £3.7m to £3.9m this year. No further IP revenues are expected this year. Some IP was sold to Tristel (TSTL) and along with an early termination of another licence generated cash of £800,000, but minimum guaranteed royalties will be written down by £550,000 in the balance sheet. Even before that, there will be a higher loss in 2023-24. The business needs to be restructured and reduce costs and believes there will be more flexibility as a private company.
MAIN MARKET
Quantum dots developer Nanoco (NANO) generated interim revenues of £4m, including the recognition of £3m of Samsung licence income, up from £1.6m. Net cash was £54.5m at the end of January 2024. Second half non-Samsung revenues should be higher.
First Tin (1SN) had a cash outflow from operations of more than £2m in 2023. There was also £6.4m spent on exploration activities. There is £4.66m left in the bank.
Cizzle Biotechnology (CIZ) has raised £620,000 via a placing at 2p/share. This will fund the first proposed commercial test for its lung cancer test. The £500,000 loan facility with E3 Fund will be terminated.
Andrew Hore
Quoted Micro 11 July 2022
AQUIS STOCK EXCHANGE
Hargreaves Lansdown has added stocks in the Access segment of the Aquis Stock Exchange to its electronic trading platform.
Wine maker Chapel Down Group (CDGP) says interim revenues are in line with the same time last year due to the disappointing 2021 harvest. This year’s harvest should be better and full year revenues are expected to be higher. Price increases should help to improve margins. Net cash was £3.76m at the end of June 2022. Net assets are 19.5p a share. Five directors bought shares at between 19.6p and 19.9p a share.
Samarkand (SMK) says trading is in line with expectations in the year to March 2022. Revenues are estimated at £16.5m and the loss at £8.3m. There was £4m in the bank at the end of March 2022. Samarkand provides e-commerce technology and services to clients that wish to access the Chinese market. Trading has been hampered by Covid lockdowns. Management says that trading conditions are improving, although 2022-23 revenues are likely to be flat. Margins should improve.
Clean Invest Africa (CIA) says that clan coal business CoalTech has commenced commercial coal production in South Africa, and it will initially build up production to 3,500 tonnes/month. Production is expected to double in 2023. That could be enough to eventually generate annual net profit of $1.2m.
Ecotricity has increased its stake in Good Energy (GOOD) from 26.1% to 27.2%.
CBD products supplier Love Hemp Group (LIFE) is in discussions with a replacement corporate adviser so that the trading suspension of the shares can be ended. Executive chairman Andrew Male has moved to a non-exec role. Garry Cook has stepped down from the board and replaced by Anthony Dyer.
Invinity Energy Systems (IES) says that the world’s largest hybrid energy storage system, incorporating a 5 MWh Invinity Vanadium Flow battery, was launched at the Energy Superhub Oxford. Jonathan Marren has been appointed as chief development officer, having previously been a non-exec director.
Valereum (VLRM) reported an increased loss of £1.84m for 2021. There is still £1.43m in cash anies, v,ld net assets were £2.51m at the end of 2021.
Forbes Ventures (FOR) has decided that the litigation funding securitisation will not go ahead. Peter Moss, the director handling the deal, has resigned and Forbes Ventures is seeking to recover costs. A potential acquisition is being negotiated.
IamFire (FIRE) has an option to subscribe for up to £3.75m in convertible loan notes in WeShop Holdings Ltd. It paid £250,000 for this option. The conversion price is 100p a share. WeShop has launched its social network shopping platform, which offers shares with every purchase – initially 20% of the purchase price.
AQRU (AQRU) has appointed First Sentinel as corporate adviser and Tennyson Securities as broker. They replace Novum Securities. The decentralised finance-focused incubator has launched AQRU Trend, a high-return strategy optimised for cryptocurrencies designed for small investors to access competitive returns in the crypto market. It is available through the AQRU.io platform.
All Star Minerals has changed its name to Marula Mining (LON: MARU) and consolidated 100 shares into one new share.
Macaulay Capital expects to join Aquis on 22 July. It intends to originate and manage corporate transactions and invest its own funds, in shares and loan stock, along with other investors. Macaulay will earn an arrangement fee, an annual director fee for supplying a director to the investee company and an annual management fee of 2% a year for five years once third-party investors have been repaid their initial investment – payable by the investors. There is also a potential performance fee if returns are better than the threshold set.
Shore Capital has been appointed broker to Arbuthnot Banking (ARBB).
BWA Group (BWAP) has issued 3.35 million shares at 0.5p each in order to satisfy directors fees.
AIM
Immediate Acquisition acquired new bank Fiinu (BANK) for £37.5m in shares at 20p each, which is the same price as in the placing price that raised £8.01m. Pro forma net assets are £11.7m, including £11.2m in cash. Fiinu intends to invest £2.3m of the cash raised in further technology development and £6.6m will provide regulatory capital. Fiinu has developed the Plugin Overdraft, which provides customers with an overdraft facility without the requirement to switch banks. When someone applies for the overdraft via the Fiinu app they give permission for Fiinu to access their account details at their bank. Fiinu can then assess whether they meet the requirements for access to the Plugin Overdraft. Fiinu will take deposits on fixed-terms, and these will fund shorter term lending via the Plugin Overdraft.
In the year to March 2022, Mercia Asset Management (MERC) increased its NAV from 40p a share to 45.6p a share, thanks to valuation increases in some of its direct investments. The investment manager had Assets under management of £959.2m at the end of March 2022 and this has subsequently risen above £1bn following VCT fundraisings. The dividend has been raised from 0.3p a share to 0.5p a share. There is cash and short-term investments of £61.3m.
CML Microsystems (CML) improved full year revenues from £12.5m to £17m, underlying pre-tax profit doubled from £1.1m to £2.2m. The investment in technology development is starting to pay off with design wins for internet of things, 5G and satellite products. These design wins will be making significant contributions in two years. Net cash is £24.6m and the dividend was raised from 9p a share to 10.8p a share. A 2022-23 pre-tax profit of £2.5m is forecast with cost rises offset by increasing volumes.
Fashion retailer Quiz (QUIZ) reported a strong recovery in revenues from £39.7m to £78.4m and it moved back into profit last year. Revenues are still much lower than pre-pandemic levels, but the £800,000 pre-tax profit is similar to the level prior to Covid-19. There were £1m of government grants included in income in the year to March 2022. There was an operating cash inflow of £5.3m and net cash was £4.4m. There was a strong recovery in UK stores revenues, but online also grew. Price rises will help to maintain gross margin. First quarter sales are 62% ahead at £27.3m and there could be further improvement in profit this year as long as overheads are controlled.
Iodine producer Iofina (IOF) has secured debt funding for expanding capacity. There were 234 metric tonnes of iodine produced in the first half of 2022. Second half production should be between 255-275 MT. Iodine prices are higher than $70/kg.
Shares in parcel and freight delivery company DX (DX.) remain suspended, but it believes that its 2020-21 accounts and the corporate governance investigation could be finalised before the end of September. Trading remained strong in 2021-22 and net cash is £27m. That could provide scope for dividends or some other way of returning cash to shareholders.
D4T4 Solutions (D4T4) is paying a 12.5p a share special dividend following better than expected figures for the year to March 2022. The underlying pre-tax profit declined from £4.4m to £3.3m as a move towards a subscription model delayed revenue recognition. Annual recurring revenues were £14m by the end of the period.
Stripping out flotation related costs, 4Global (4GBL) made an operating profit before government grants. The sports data and analysis company increased revenues from £2.68m to £3.64m, which is around pre-Covid levels.
Cambium Global Timber (TREE) is holding a general meeting on 3 August to gain shareholder approval to cancel the AIM quotation and wind up the company. There is £5.47m in the bank and a further £1.5m of deferred consideration is due. Cost reductions will be made and there will be an initial distribution of 6.5p a share. There could be a second distribution of 1.5p a share.
MAIN MARKET
Kitchenware retailer ProCook Group (PROC) made a pre-tax profit of £9.5m on revenues of £69.1m last year. That was in line with downgraded expectations. The dividend is 0.9p a share. Like-for-like revenues have fallen by 16% so far this year, but there are short-term indications that the market could be improving. ProCook continues to win market share, but pre-tax profit is likely to be lower this year.
Spiritus Mundi (SPMU) is a cash shell seeking acquisitions in the clinical diagnostics sector and it has directors with experience in this area. A subscription raised £280,000 at 5p a share and along with previous share issues, this means that there is around £1m of cash available. Pro forma assetd are just over 2p a share.
Data integrity and control software provider Gresham Technologies (GHT) says interim revenues were 56% higher at £23.1m, including a full six-month contribution from Electra Information Systems, which was acquired in June 2021. Organic revenue growth was 19%. Clareti software annual recurring revenues are £25.9m. Net cash is £6.4m. The interims will be announced on 26 July.
Andrew Hore
Andrew Hore – Quoted Micro 21 June 2021
AQUIS STOCK EXCHANGE
CBD and hemp seed oil products supplier Voyager Life (VOY) has confirmed its flotation on Aquis on 30 June and the 295 Seedrs crowdfunding investors from earlier in 2021 will have the chance to participate in the associated fundraising. Seedrs Nominees Ltd currently owns 14.6%. A shop will be opened in St Andrews in Scotland during July. Greencare Capital (GRE) has a stake in Voyager Life.
Eastinco Mining and Exploration (EM.P) has agreed a joint venture with a Rwandan partner to explore mineral opportunities in southern Rwanda. Eastinco will own 70% of Kinunga Mining, while the partner will have 30% as a free-carried interest. Along with Incanthera (INC) and TruSpine Technologies (TSP), Eastinco is being moved from the Apex segment to the Access segment.
Block Commodities (BLOC) has extended its option to acquire a 70% stake in medicinal cannabis licence granted to Magnus Cannabis Group. The exclusivity period lasts until the end of August. Block has issued shares to pay creditors £77,395.
Gunsynd (GUN) has invested £218,000 in two million shares in base metals and lithium exploration company Charger Metals Ltd, which is planning to list on the ASX. It will raise at least A$6m before the listing in the third quarter of 2021. Gunsynd has increased its stake to 3.6 million shares. Gunsynd has raised £93,000 by selling part of its stake in Empress Royalty Corp.
BWA Group (BWAP) lost £3.64m in 2020, mainly due to a £3.59m loss on revalued assets. NAV is £1.75m.
Altona Rare Earths (ANR) has three acquisition contracts under negotiation. Management believes it can secure additional projects in Mozambique, Angola, Tanzania and Uganda. Altona would acquire a stake of at least 51%. A Main Market listing is expected by September.
Cadence Minerals (KDNC) says that Macarthur Minerals, in which it has a 1% stake, is spinning-out its non-iron ore assets in Pilbara into Infinity Mining, which will float on the ASX. Singapore-based Jin Sung may invest in Infinity and/or Macarthur.
The first six resolutions were not passed at the Early Equity (EEQP) AGM. There will be no changes to the board.
Trading has been restored in the shares of Black Sea Property (BSP).
AIM
Open Orphan (ORPH) has completed the demerger of non-core infectious disease assets in the form of Poolbeg Pharma, which will join AIM next month. Shareholders on the Open Orphan register on 17 June will be given one Poolberg share for every 2.98 Open Orphan shares they own. The influenza treatment and vaccines developer will be making an offer to private investors via PrimaryBid. The shares distributed by Open Orphan will initially be held centrally by Croft Nominees and investors will not be allowed to deal in them until nine months after the AIM admission of Poolbeg.
Future Biogas has also confirmed its plan to float on AIM. It currently operates ten anaerobic digestion plants supplying clean biogas. Future Biogas wants to move from developing projects and selling them on to retaining ownership of some of the plants it develops. There are plans to construct up to 25 over the next six years. These plants can cost up to £20m each. The company hopes to raise £35m and it already has £5m in the bank.
Tatton Asset Management (TAM) is generating investment inflows of £100m each month and total assets under management have reached £9.5bn. This has been achieved even though face to face meetings remain relatively rare with online meetings still dominating. Tatton is benefiting from the trend for IFAs to move funds to discretionary fund managers. Full year revenues increased by 9% to £23.4m. Underlying earnings jumped 23% to 14.7p a share. Organic growth can be enhanced by acquisitions. The target is £15bn assets under management in three years time.
Access Intelligence (ACC) is acquiring ASX-listed media intelligence services provider Isentia and raising £52m in a placing and offer at 120p a share. This deal will more than double group revenues. In the year to November 2022, group revenues could reach £75m and the enlarged group could make a small profit.
There was a full year contribution from CSS in the latest IG Design (IGR) figures and this helped to increase the proportion of revenues from craft products. Revenues increased from $624m to $873m, while pre-tax profit was flat at $38.6m. The order book covers more than 60% of this year’s forecast revenues. The dividend is maintained at 8.75p a share.
Vianet (VIA) coped well with the decline in revenues in the year to March 2021 and it has limited its underlying loss to £2.8m. Vianet’s smart zones division had reduced charges to pubs while they were closed and since the relaxation of lockdown conditions these charges have been raised. New contracts are being won by the smart machines vending technology division. This means that revenues could bounce back from £8.4m to £14.8m this year, which could be enough to move Vianet back into profit.
Another earnings upgrade for K3 Capital (K3C) following its pre-close trading. The 2020-21 pre-tax profit forecast was increased from £12.9m to £13.9m and next year’s forecast has been raised from £13.5m to £14.6m. There is £14m in the bank.
ReNeuron (RENE) had to halt its trial for the lead human retinal progenitor cell (hRPC) project because one patient got an eye infection. It means that trail data could be delayed by three months. The cash should still last until after March 2022.
Kidney diagnostics firm Renalytix AI (RENX) generated revenues of $600,000 in the three months to March 2021. N+1 Singer forecasts revenues of $3.4m for the year to June 2021.
Local government and engineering documentation software provider IDOX (IDOX) reported interims in line with expectations and it remains on course to improve full year pre-tax profit from £10.5m to £12m. IDOX has sold its non-core operations and it is in a good position to acquire businesses in its core markets.
Dekel Agri-Vision (DKL) has purchased 1,500 tonnes of raw cashew nuts ahead of the completion of the cashew plant in Tiebissou. There will be further news about the plant in the next few weeks. Higher crude palm oil prices combined with good crops mean that Dekel remains on course for profitability this year.
MAIN MARKET
CML Microsystems (CML) reported a 17% decline in continuing revenues to £12.5m. The sale of the storage division enables CML to concentrate on its wireless communications technology. The addressable market is being expanded through the launch of SuRF products for microwave /mmWave applications. These products are currently being designed-in to the equipment made by customers. That means it will take time for revenues to build up. Net cash is £32.2m. The total dividend is 52p a share, reflecting the return to shareholders of part of the proceeds from the sale of the storage division.
Telecoms services provider Toople (TOOP) improved its interim gross profit by two-fifths to £470,000, even though revenues declined. Cash continues to flow out of the business and there is still some way to go towards breaking even. Additional sales staff are being taken on. There was nearly £1m in the bank at the end of March 2021. The £1.62m of loan notes and interest are not repayable until the end of 2022. Management is confident that it will have the backing of its investors if it secures a suitable acquisition.
Challenger Acquisitions (CHAL) has secured a new agreement for the acquisition of renewable energy company Cindrigo Energy. Cindrigo is undertaking an open offer to shareholders to raise up to £2.1m and these shares would not have been covered by the original agreement.
NMCN (NMCN) is in talks concerning a refinancing. There is a strain on working capital with two loss making water contracts and other problems. There will be a full year loss.
Triad Group (TRD) moved back into profit last year, thanks to the focus on higher margin consultancy work, and cash in the bank increased to £4.9m. The IT services provider is paying a 2p a share dividend.
HeiQ (HEIQ) has acquired Hong Kong-based Life Material Technologies for an initial $6.45m. This will enhance the antimicrobial technology part of the business. The acquired company’s additives are used in plastics, coatings, ceramics and textiles.
Andrew Hore
Andrew Hore – Quoted Micro 7 June 2021
AQUIS STOCK EXCHANGE
Chapel Down Group (CDGP) is raising up to £6.88m at 59.5p a share via a placing and crowdfunding offer. The directors and Michael Spencer have invested £1.43m in the placing. The rest of the cash will come via the crowdfunding with Seedrs. The financing will only go ahead if a minimum of £3m is raised. The wine maker wants to increase the scale of its winery so it can process more fruit and complete the planting of new acreage. Management also wants to improve the e-commerce capabilities. A new asset-based financing facility of up to £15m has been secured and it will refinance the HSBC debt. Chapel Down increased its revenues from continuing operations from £10.1m to £13.3m in 2020. The underlying pre-tax profit was trebled from £308,000 to £955,000.
TECC Capital (TEC) is a new shell that is seeking to buy technology or cannabis businesses. There is a wide list of potential sub-sectors that will be considered, including artificial intelligence and machine learning, telematics, life sciences, including cannabis products, cyber security and e-commerce, which includes the Internet of Things. TECC raised £1.1m, after expenses at 5p a share. There is pro forma cash of £1.15m, which is equivalent to just over 3.8p a share. Even so, the share price ended the week at 10p. Chris Akers owns 9.9%.
Pioneer Media Holdings Inc (PNER) is a Canada-based investment company with investments in eSports and mobile gaming businesses. It already has a portfolio of ten companies and a Canadian Stock Exchange listing. The shares floated at 45p each and they closed the week at 48p each.
Gledhow Investments (GDH) is raising £850,000 at 1.75p a share. That is at a 12.5% discount to the market price. Gledhow had net assets of £2.35m at the end of March 2021, including £374,000 in cash. That means it is a significant discount to net assets of nearly 4.8p a share. That figure will be significantly diluted by the new share issue. Gledhow does need to become bigger to warrant the quotation, though. Although it has a portfolio of investments, Gledhow would make a good shell for a business. Burns Singh Tennent-Bhohi has taken a 3.26% stake in Gledhow.
Non-executive director Dominic Burke has bought 10,000 shares in Newbury Racecourse (NYR) at 582.5p each. The racecourse will be able to have spectators at its 10 June meeting and if there is further easing of lockdown then the hotel and events businesses can reopen. Newbury Racecourse will continue to be loss making in the first half of this year. A joint venture has been set up with a subsidiary of Compass to provide catering for the racecourse and other businesses.
KR1 (KR1) has invested a further $200,000 in Automata, as part of a $2.4m financing. KR1 will receive five million ATA tokens and it already owned ten million tokens.
Startup Giants (SUG) increased revenues from £45,000 to £87,000 in 2020. Higher costs meant that the loss increased. However, there was a £9,000 cash inflow from operating activities. There was net cash of £651,000 at the end of 2020.
Wishbone Gold (WSBN) says that initial drilling of the Cottesloe silver project, which is close to the Red Setter project.
MiLOC Group Ltd (ML.P) has raised nearly £80,000 at 28.5p a share.
Capital for Colleagues (CFCP) directors Alistair Currie and Ed Jenkins have each bought 18,400 shares at 43.25p each. Currie owns 3.67% and Jenkins holds 0.75%. Chairman Jonathan Bixby has bought 1,000 shares in NFT Investments (NFT) at 2.9p each. Iain Livingston, the father of S-Ventures (SVEN) chief executive Scott Livingston, has sold 150,000 shares at an average price of 23p a share. Scott Livingston owns 49.1% and his family a further 3.5%.
AIM
Arecor Therapeutics (AREC) takes existing pharma products and reformulates them for new uses or to make them more effective. A placing raised £18.3m, after expenses, at 226p a share. The main focus is diabetes. Arecor’s insulin program AT247 is an ultra-rapid acting meal-time insulin product, while AT278 is an ultra-concentrated rapid acting insulin development, which could be used with miniaturised insulin pump delivery devices. AT299 is a co-formulation of pramlintide and insulin. These fast-acting insulins have an addressable market worth $6.4bn. There have been positive clinical studies for AT247. A phase II study should provide results in 24 months and that would be the point when a partner would be secured.
Artisanal Spirits Company (ART) owns the Scotch Malt Whisky Society (SWMS) and it raised £13.2m after expenses at 112p a share, which was at the bottom of the 112p a share to 121p a share price range. First quarter sales in 2021 improved from £2.9m to £3.4m, even though venues and events revenues continued to be well down during the period. There was cask whisky and bottled stock of £21.7m at the end of 2020. That is the main asset in the balance sheet and an independent valuation believes that this stock is worth £9m more than book value – based on an orderly liquidation.
Franchised lettings agency Belvoir (BLV) has acquired The Nottingham Building Society’s mortgage and protection services business for £600,000. This year’s operating profit is expected to be £175,000. The deal could add 1% to earnings in a full year.
Coral Products (CRU) had £3.8m in the bank at the end of April 2021. That should be boosted by the Haydock freehold sale, which should be completed in the second half. In the year to April 2021, revenues from continuing operations increased from £8.7m to £10.7m. Even excluding the profit on disposals of £2.3m, the pre-tax profit was £700,000. There will be a final dividend of 0.5p a share.
CyanConnode (CYAN) has raised £3.15m at 9.5p, taking advantage of the strength of its share price. This was a small premium to the market price. CyanConnode could have made progress in the smart meter market without the additional cash, but this will help to accelerate its growth.
Cleantech company Verditek (VDTK) is raising up to £500,000 through a bond offering 7% interest, secured against the assets of the company. The offer is via Crowd for Angels, which is underwriting the first £225,000 of the two-year bond. Verditek wants to expand its Italian facility so that it can satisfy international contracts for its lightweight, flexible solar panels. The focus is the solar operations, but there are also minority stakes in BBR Filtration and Industrial Climate Solutions Inc.
Housebuilder Springfield Properties (SPR) says that its 2020-21 revenues and profit will be better than pre-Covid-19 levels. This was helped by two land sales. N+1 Singer forecasts an improvement in pre-tax profit from £10.2m to £18m.
Internet domain name registry and services provider CentralNic (CNIC) generated organic growth of 16% in the first quarter of 2021. Total revenues jumped from $56.9m to $84.4m, helped by acquisitions. Net debt is $79m.
MAIN MARKET
Sportech (SPO) and CML Microsystems (CML) both intend to switch to AIM. Sportech believes that the junior market is more suitable for its size and it will make it easier to complete transactions. CML also believes that AIM is more suitable following the sale of one of its divisions and it also expects its shareholders to benefit from the tax breaks.
Tarek Taksch has reduced its stake in Oxford Cannabinoid Technologies (OCTP) from 7.75% to 5.43%. The company has entered a consultancy agreement with Voisin Consulting, which will help with regulation and development plans for OCT461201, a treatment for ailments associated with IBS.
Shefa Gems (SEFA) is demerging its gems business, because it will take longer than expected to exploit the assets, and turning itself into a shell. Existing shareholders will receive shares in the gems business. There will be a 100-for-one share consolidation and then the company will raise $1.05m (£756,000) at 3.53p a share. The name will be changed to Alef Bet Advanced Technologies and seek an acquisition in web technology and software.
Imperial X (CDL) has raised £2m at 3p a share as part of its move from Aquis to the standard list. The resources company is changing its name to Cloudbreak Discoveries.
Motor dealer Caffyns (CFYN) manged to improve its underlying profit from £251,000 to £1.88m last year, even though revenues fell from £195.8m to £165.1m. Net debt was £10.3m at the end of March 2021. There has been a property valuation that shows the portfolio is worth £12.3m more than book value. Excluding that surplus, NAV is £27.6m.
National Word (NWOR) has already secured annualised savings of £4m from the JPI Media acquisition and is on course to secure savings of at least £5m. The online audience is increasing, and monthly content revenues are being generated from Google and Facebook. Overall revenues increased by 18% in April and May. The fastest growth is from digital.
Andrew Hore
Andrew Hore – Quoted Micro 22 March 2021
AQUIS STOCK EXCHANGE
Rogue Baron (SHNJ) has sold a shipment of 857 cases of Shinju Japanese whisky in the US. Each case of six bottles sells for up to $150. There was a total of 9,000 bottles of Shinju sold in 2020. US sales are growing so quickly that the company has decided to focus on the market and delay moves into other markets.
KR1 (KR1) has invested a further $150,000 in Vega Protocol in exchange for 194,999.17 VEGA tokens and made an initial $200,000 investment in the Starks Network. KR1 has also generated a further 77,542.92 Polkadot tokens and they were sold for $1.85m. KR1 still has nearly 3.5 million Polkadot tokens. Mona Elisa has been appointed as a non-executive director.
Block Commodities (BLCC) and Century Cobalt Corporation have entered an option agreement to acquire a 70% interest in a medicinal cannabis licence granted to Magnus Cannabis Group in Zimbabwe. Each of the buyers will hold a 35% interest. The option fee is £50,000. The payment for the interest will be £1.5m in Block shares at 0.07p each and £1.5m of Century Cobalt shares. Block no longer intends to acquire Sierra Leone-based Greenbelt Company.
Chris Akers has increased his stake in Quetzal Capital (WENP) from 9.4% to 15.2%.
Love Hemp (LIFE) has signed a five-year sponsorship agreement with UFC.
David Rigoli is joining the board of Veni Vidi Vici (VVV) and he has an interest in electric vehicle commodities.
AfriAg Global (AFRI) is holding a general meeting on 12 April to gain shareholder approval for the reverse takeover of Apollon Formularies Ltd. AfriAg will change its name to Apollon Formularies.
Wheelsure Holdings (WHLP) has raised £25,000 at 13.5p a share.
AIM
Online fashion retailer In The Style (ITS) joined AIM last week. The share price increased from the 200p placing price to 235p. Existing shareholders raised £46.8m from share sales, while there was £9.1m net raised by the company. There will be more investment in the technology platform and there are plans for an international version of the company’s app.
Underlying 2020 revenues at digital payments business Boku (BOKU) were one-fifth higher at $56.4m helped by a six-month contribution from Fortumo. Profit grew even though there was a higher loss from the identity division. There was net cash of more than $50m at the end of 2020, although that includes cash held on behalf of others. In 2021, there should be further growth in digital payments and an improved performance by the identity division.
Trading at document management and technology recycling business Restore (REST) has continued to improve since the second quarter of last year. In 2020, revenues fell from £216m to 3183m, while pre-tax profit dipped from £36m to £23m. This year pre-tax profit should be getting back towards the 2019 level. There are opportunities for further add-on acquisitions.
Futura Medical (FUM) says that erectile dysfunction topical gel formulation MED3000 should be certified as a class 2B medical device which can be obtained without a prescription. This could happen by May. US approval is also progressing.
Diagnostic data provider and analyser Diaceutics (DXRX) was able to launch its DXRX platform at the end of 2020 and it is already winning projects and building up recurring revenues. In 2020, revenues declined from £13.4m to £12.7m and Diaceutics fell into loss. It should return to profit this year.
Renewable energy company Bion (BION) has opened an office in the UK in order to expand in Europe. Two biogas plants in Malaysia are selling electricity generated from biogas produced from palm oil mill effluent. Another two plants will be generating electricity in the next few months.
Trans-Siberian Gold (TSG) has recommended a 118p a share mandatory cash offer from Horvik, which has already agreed to acquire a 51.2% stake.
Telit Communications (TCM) is releasing DBAY Advisers from its restriction on making a bid within six months of previously ending bid talks.
Waterford Finance and Investment is making a mandatory offer for former AIM company Gulfsands Petroleum having bought the stake previously owned by ME Investments for £3.43m. Waterford is also taking ownership of the convertible loan notes owned by ME. Waterford had a 37.3% stake in Gulfsands and it is deemed to be acting in concert with Blake Holdings, owned by Richard Griffiths and James Ede-Golightly. The Waterford stake in the Syria-focused oil and gas company has increased to 52.45% and the combined stake is 83.93%. The bid is 4.035p a share.
CEPS (CEPS) subsidiary Hickton Group has acquired gas and electrical safety consultancy Millington Lord for up to £1.1m.
Dye and Durham no longer intends to bid for IDOX (IDOX), which has sold its Netherlands grants consultancy.
Tremor International (TRMR) has made a filing with the SEC ahead of a potential US listing. Tremor believes it would get a rating more in line with US Ad Tech companies.
Kodal Minerals (KOD) has raised £3.5m at 0.125p a share. This will be used to develop the Bougouni lithium project in Mali and to fund exploration of three gold projects.
MAIN MARKET
Caerus Mineral Resources (CMRS) joined the standard list last Friday after raising £1.92m net at 10p a share. The share price rose to 13p. Caerus is exploring for copper, gold and silver in Cyprus, having acquired New Cyprus Copper, which owns 70% of a company with 12 exploration licences in four project areas in Cyprus. Completion of a work programme will earn a further 20% stake in the subsidiary with the opportunity to acquire the other 10% within 12 months of the work programme for A$2m.
Supply@ME (SYME) has signed heads of agreement to acquire Singapore-based commodities trade enabler TradeFlow Capital Management.
Standard list shell Marwyn Acquisitions Company 1 (MAC1) is raising £130m at 100p a share. Vin Murria has joined the board and she will be investing £17.5m for a 13.1% stake. Murria is likely to seek a large international software acquisition for this vehicle.
Sanofi is terminating its licence agreement with Oxford Biomedica (OXB) but there should not be any significant impact on medium-term revenues.
Toople (TOOP) continues to reduce monthly cash burn. The proceeds of a sale of 1.05 million shares at 0.06p each by the wife of the boss of a subsidiary will be used to repay a £462,000 loan.
OTAQ (OTAQ) has invested $150,000 and converted its loan notes in Minnowtech, which has developed an imaging product using OTAQ sonar technology. This gives OTAQ a 15.2% stake.
CML Microsystems (CML) says shareholders should receive 50p a share in cash by 26 March. Net cash will be more than £30m after this payment, which comes out of the proceeds of the disposal of the storage division. The continuing communications business generated slightly higher revenues in the second half than in the first half. Orders are improving.
Antimicrobial materials technology developer HeiQ (HEIQ) has signed a five-year contract with ICP, which develops thin film coatings for packaging. ICP will use HeiQ Viroblock in its coatings. This could be worth $8m in the first two years. Over five years the royalty revenues should be $30m. This follows a deal with Berger Paints, which could generate $600,000 over one year.
BATM Advanced Communications (BVC) has received around $29m for the completed disposal of NGSoft. The cash will be reinvested in network function virtualisation and molecular diagnostics.
Andrew Hore
Andrew Hore – Quoted Micro 1 March 2021
AQUIS STOCK EXCHANGE
Incanthera (INC) says that it is prioritising discussions with two global cosmetic companies as potential partners for Sol, a sun cream that prevents skin cancer. Incanthera is also assessing the potential for using the technology to develop other products.
Sativa Wellness (SWEL) plans to raise C$4m through a placing of units at C$0.07875 each. Each unit consists of one share one-half of a warrant exercisable at C$0.105 each. The cash will provide working capital and investment for a new health screening service. Sativa has opened ten Covid-19 testing facilities. A dispute with Dragonfly Biosciences has been settled.
World High Life (LIFE) is submitting a novel food dossier to the Food Standards Agency. This is part of the move to regulation of the CBD market in the UK. The dossier includes pre-clinical results.
AfriAg Global (AFRI) intends to acquire the shares in medicinal cannabis pharma company Apollon Formularies that it does not own, and this will be classed as a reverse takeover. Shares will be issued to the Apollon shareholders. AfriAg is also raising £2.5m at 5p a share.
Arbuthnot Banking (ARBB) is selling its Tay mortgage portfolio to a subsidiary of OneSavings Bank for £53.8m, which is equivalent to 97.9% of the outstanding loans. Arbuthnot has already announced that it intends to pay a 21p a share special dividend, which replaces the 2019 dividend declared in March 2020. Arbuthnot will make a loss in 2020 so there will be no dividend.
Gunsynd (GUN) has invested £65,000 in a convertible loan issue by B2B pool betting platform Low6. Gunsynd had already invested £200,000 last December. AIM-quoted Pires Investments (PIRI) has also increased its investment in Low6. It invested a further £35,000, having also invested £200,000 at the same time as Gunsynd. Low6 is expected to float during the second quarter of 2021 and Canaccord Genuity is its broker.
Tectonic Gold (TTAU) says that the latest exploration at Specimen Hill reaffirms the drill targets and informs plans for higher density drilling, so that a resource can be calculated. Tectonic says that the Deep Blue Minerals diamonds joint venture with AIM-quoted Kazera Global Investments produced 220 carats in January. Higher grade materials will be mined during the rest of the year.
SulNOx Group (SNOX) says that Bureau Veritas has certified that SulnoxEco Fuel Conditioner complies with European standards. This means that SulNox’s products can be used for 70% of the hydrocarbon market. Management is confident that production can be scaled up.
NQ Minerals (NQMI) has signed an agreement with ASX-listed Evolution Mining for the evaluation and potential processing of lead and silver rich stockpiles at the Sunbeam project in North Queensland. Evolution has a processing plant 80km away from Sunbeam, which has stockpiles from past mining. The processing would be done on a cost and revenue share basis with NQ. This could finance further exploration. NQ says that it should qualify for the Green Economy Mark when it moves to the standard list.
Lombard Capital (LCAP) has received shareholder approval for refocusing its strategy on property investment and development.
Almon I Holding has cut its stake in Coinsilium (COIN) to below 3%. It increased its stake to 3.68% in January 2020.
Altona Energy has changed its name to Altona Rare Earths (ANR).
AIM
Trading platform operator Aquis Exchange (AQX) moved into profit last year thanks to high levels of trading on its platform. Aquis had been expected to lose money in 2020 but it is now expected to make a £200,000 profit on revenues of £11m. EU trades have been moved to the Paris operation and London has restarted trading in Swiss shares.
VR Education (VRE) continues to grow the revenues of its ENGAGE VR platform. Group revenues increased by 38%, while ENGAGE revenues rose by 550% thanks to strong demand for virtual events. The US provides significant potential. VR is still hiring additional people, although the focus is more on marketing. VR is still losing money, but the cash burn has been reduced this year. Management is targeting 100,000 monthly users by 2025.
Hormonal disease treatments developer Diurnal (DNL) says Alkindi sales in the UK and Germany grew by 29% in the first half but the timing of purchases in other markets meant that overall revenues barely increased. Chronocourt could gain European approval in March and the US regulatory pathway for DITEST, an oral testosterone formulation, has been set out. Net cash was £20.3m at the end of December 2020.
K3 Business Technology (KBT) has sold its managed services business for £14.7m. The business made a pre-tax profit of £1.2m last year, but the disposal proceeds will wipe out net debt and enable the repayment of the £3m shareholder loan due in June. There should still be more than £35m of recurring revenues.
Interim trading at transport software and services provider Tracsis (TRCS) was active and it was not far below the levels in the six months to January 2020 prior to Covid-19 becoming a factor. Revenues declined from £26.4m to £22m and management believes Covid-19 reduced the figure by £6m. New rail contracts are being won, but the lack of events hit the data and events division. Cash has improved from £17.9m to £21m.
Revenues fell by one-third at President Energy (PPC) in 2020 due to lower oil prices. President did generate $10m of free cash flow and that helped to reduce net debt. President plans to drill seven wells this year and that could increase production by one-third. Anew subsidiary, Atome, will develop hydrogen and ammonia production.
Shield Therapeutics (STX) has raised £25m at 30p a share and could raise a further £4.2m via an open offer. The cash will finance the new strategy of directly launching iron deficiency treatment Accrufer in the US.
Yew Grove REIT (YEW) has agreed a new lease for Gateway Three building, East Wall Road, Dublin with the Electricity Supply Board. The new lease lasts five years. Along with three rent reviews, this takes the increase in annual rents to €470,000 this year.
Best of the Best (BOTB) has concluded its strategic review and it has reemphasised its online strategy. finnCap has upgraded its pre-tax profit forecast to £14m.
Benchmark Holdings (BMK) increased first quarter revenues by 18% to £29m and it is on course to reduce its loss this year, prior to moving into profit in 2021-22. The advanced nutrition business contributed significant growth in the first quarter.
MAIN MARKET
Online auctions provider Auction Technology Group (ATG) raised £247.4m at 600p a share, while existing shareholders pocketed £51.5m after the over-allotment option was exercised. The company was valued at £600m. There was a 30% gain to 780p a share at the end of the first week of trading. The company is involved with three main auction markets: arts and antiques, industrial and commercial and consumer surplus and returns. It has six main auction marketplace brands and trade magazine Antiques Trade Gazette. Low double-digit organic revenue growth is anticipated for the next few years.
Town Centre Securities (TOWN) announced a 1.75p a share interim dividend, even though this is not covered by earnings. Lower car park income meant that there was a sharp decline in interim profit. The NAV was 286p a share at the end of December 2020 and it is not expected to decline by more than 2% by the year-end in June. This is more than double the current share price.
CML Microsystems (CML) is paying 50p a share to investors following the sale of its storage division. This will cost £8.28m. the cash should be received before the end of March.
Strong demand for diagnostic products more than offset weakness in the networking division of BATM Advanced Communication (BVC) and enabled 2020 revenues to grow by 49% to $184m. Pre-tax profit jumped from $5.2m to $13.6m. Revenues are expected to decline this year, but pre-tax profit is forecast to improve from $13.6m to $17.3m. This may depend on the timing of the sale of the NGSoft business and it also assumes no additional sales of ventilators this year. Longer-term, revenues will build up from virtual networking technology NFVTime. There is also potential for dividends.
Construction services provider NMCN (NMCN) says that two contracts in the water division could lead to an additional loss of £5m in 2020. These costs relate to delays. The total loss for 2020 could be up to £22m. The additional cash costs will be spread over 28 months. Shareholders are being asked to agree to an extension of the company’s borrowing limit.
Aircraft lessor Avation (AVAP) took a $46.7m impairment charge on its aircraft and a $12.9m credit loss in the six months to December 2020. The NAV was 174p a share at the end of 2020. A full year loss of $30m is expected before the exceptional write-offs.
Cannabis-based products developer Cellular Goods (CBX) raised £13m in its offer at 5p a share. The share price jumped to 19p on the first day of dealings.
Potash project developer Emmerson (EML) raised £5.5m at 5.75p a share. Emmerson has a mining licence for the Khemisset potash project in Morocco. The cash will be used for the detailed design of the mine and the phased development of the project.
Shell company Stranger Holdings (STHP) is pushing ahead with the proposed reverse takeover of the Recyclus Group. A prospectus is being drafted.
Packaging supplier Macfarlane Group (MACF) increased its 2020 profit by 10% to £13m on a 2% increase in revenues to £230m. The full year dividend has been increased from 0.69p a share to 2.55p a share.
Andrew Hore
Andrew Hore – Quoted Micro 14 December 2020
AQUIS STOCK EXCHANGE
Incanthera (INC) says that study results for Sol, a sun cream that prevents skin cancer, have been better than expected. There is significantly greater dermal delivery by Sol compared with four rival products and it was found to be a non-irritant. The cream exceeds bioequivalence compared with oral treatments. A new patent is being filed which will extend the protection until 2041. Incanthera had £433,000 in the bank at the end of September 2020 and outgoings are low. The cash will last well into 2021 Incanthera is seeking a partner to license Sol and launch the product, which could lead to an upfront payment. Incanthera has already licensed potential cancer treatment EP0015 to Ellipses Pharma. There are other earlier stage treatments being developed, including Duo-C, which is a potential treatment for bladder cancer.
Arbuthnot Banking (ARBB) is acquiring vehicle finance provider Asset Alliance, which specialises in coaches and trucks, for £4.1m. Arbuthnot can use its own deposit base to provide finance for the acquisition, which should be earnings enhancing in 2021.
In the year to May 2020, mechanical and engineering services provider Fuel Systems Designs Holdings (FSD) reported a decline in pre-tax profit from £553,000 to £354,000 and a fall in revenues from £21.8m to £19.8m. The decline in revenues came from the power generation division, while water and sewerage revenues were slightly higher. Cash in the bank has improved from £4.8m to £5.96m.
SulNOX (SNOX) has signed a collaboration agreement with Ghana-based Rigworld, which will market the company’s fuel conditioner and heavy fuel emulsifier products in Africa. Rigworld has identified the mining sector as an initial opportunity.
Chris Akers has taken a 4.08% stake in Gunsynd (GUN). Investee company Rincon Resources has had its ASX listing delayed. Pacific Nickel, formerly Malachite, has raised $3.8m for the exploration of nickel projects in the Solomon Islands.
World High Life (LIFE) generated revenues of £1.69m in the year to June 2020. Impairment goodwill of £7.4m increased the full year loss to £12.7m. Management continues to seek further CBD investment opportunities.
Rutherford Health (RUTH) has launched new membership scheme Rutherford Direct. The healthcare plan focuses on cancer cover and provides the cost of treatment and care for people diagnosed with cancer.
Wishbone Gold (WSBN) has raised £1.75m at 10p a share in order to finance exploration at the Red Setter project in Western Australia. There will also be additional exploration in Queensland.
Coinsilium Group Ltd (COIN) has signed an agreement with Vietnam-based RedFOX Labs, which will lead to the development of a range of virtual asset and digital collectible marketplaces. It will also cover the trading of non-fungible tokens.
Cairn has been replaced Turner Pope as broker to Primorus Investments (PRIM) as well as nominated adviser. Primorus is leaving Aquis Stock Exchange on 24 December as part of cost saving measures.
AIM
IMImobile (IMO) has agreed a 595p a share bid from Cisco Systems, which values the communications services company at £543m. This is a good add-on service for Cisco.
ULS Technology (ULS) has sold its CAL subsidiary for £27m, so that it can concentrate on its core eConceyancer platform and its digital investment. In the six months to September 2020, the group market share of purchases and sales was slightly lower but remortgage market share rose from 4.8% to 6.8%. The sale of CAL will reduce the numbers, but the mix of business should not change. ULS managed to make a small interim profit on reduced revenues.
Eqtec (EQT) has signed an agreement to acquire full ownership of the Deeside refuse derived fuel project. Eqtec is talking to the local authority and is pursuing additional planning permissions for the site so the company’s gasification technology can be used. Financing is being secured.
Access Intelligence (ACC) has raised £10m in a heavily oversubscribed placing at 80p a share. This cash will fund international expansion for its SaaS products.
Bion (BION) has entered the solar power market and it has agreed to acquire existing solar assets. The company is purchasing a 77% stake in rooftop solar panels that supply 0.95MW of electricity. The total cost will be RM6m. The assets should generate a profit of RM400,000 a year from 2021.
Housebuilder Abbey (ABBY) has recommended a 1575p a share cash offer from Gallagher Holdings for the minority stake it does not own. The Irish housebuilder is valued at £328.8m and the remaining 4.4% shareholding will cost £14.4m.
Roadside convenience retailer Applegreen (APGN) has been approached by its founders and management team with a €5.75 a share cash offer. The independent directors are considering the offer.
Iron deficiency products developer Shield Therapeutics (STX) says that discussions with potential licensees for the US rights to Accrufer will not be completed by the end of the year as had been hoped. Shield would need up to $40m to launch the treatment in the US if it did it on its own. A loan facility will help Shield to have working capital well into next year.
MAIN MARKET
S and U (SUS) says trading in its car finance and property bridging loans businesses has rebounded since the end of July. A background of higher demand and strong used car price growth means that current net receivables are £253m even though there was poor demand earlier in 2020. Third quarter collection rates were 87.5% of due payments. Aspen Bridging has higher net receivables than one year ago.
Tirupati Graphite (TGR) is set to join the standard list on Monday. It is an integrated graphite mining and processing business. Mining has commenced in Madagascar and the Indian processing facility was opened last year. There are plans to move into the graphene market. Management has decades of experience in the graphite industry.
Textile materials and chemicals company HeiQ (HEIQ) has started trading on the standard list following the reversal into Auctus Growth. A placing and subscription raised £60m at 112p a share. The share price ended the week at 118.5p.
CML Microsystems (CML) is selling its storage division so that it can concentrate on its communications division. The disposal to Swissbit will raise $49m in cash and it should be completed early in 2021. Net cash was £7.35m at the end of September 2020.
BATM (BVC) has delivered the first Celitron instrument for the recovery of protein and oils from insects.
Cyprus-focused explorer Chesterfield Resources (CHF) has raised £2.5m from a share issue at 9p, with £2.1m of the cash coming from Polymetal International.
Andrew Hore
Andrew Hore – Quoted Micro 30 November 2020
AQUIS STOCK EXCHANGE
Healthcare IT supplier DXS International (DXSP) had £1.2m in cash at the end of October 2020. Net cash was £584,000, following the capitalisation of £568,000 of development spending. Interim revenues improved by 3% to £1.72m but progress was held back by Covid-19. Pre-tax profit jumped from £90,000 to £151,000 due to lower admin costs.
Imperial X (IMPP) is continuing its due diligence on previously announced acquisitions of mining and royalty interests and the plan is to apply for a standard listing when the acquisitions are completed.
TechFinancials Inc (TECH) has invested $148,000 in RenewSenses, which has developed a wearable device for the visually impaired. The cash will help to complete the development of the A.I. Cane product, which is a camera attached to a handheld device and this enables obstacles to be identified.
S-Ventures (SVEN) has invested a further £75,000 in a convertible loan note issued by vitamin-fortified juices and smoothies Coldpress Foods. The annual interest rate is 15%. S-Ventures has a 3.3% stake in Coldpress.
Primorus Investments (PRIM) has terminated options over 17.8 million shares held by three individuals and has paid a total of £140,000 in compensation. These options could have been exercised at 6p a share or 8p a share and were equivalent to 11.3% of the potentially enlarged share capital. Primorus has decided to drop the Aquis quotation on 24 December and keep the AIM quote. This and a reduction in director pay will reduce costs by more than £200,000 a year.
Formation Group (FRM) is withdrawing from the Aquis Stock Exchange on 31 December.
Good Energy (GOOD) has appointed Canaccord Genuity as joint broker.
Vulcan Industries (VULC) has raised a further £335,000 at 5p a share and 5.5p a share.
Aquis Stock Exchange has launched a market maker incentive scheme. The market makers will offer two-way prices for 505 of stocks on the Apex segment with a maximum spread of 5%. There should be 25 companies on the Apex segment. Market makers will receive warrants for shares in the Aquis Stock Exchange with the best performers gaining the largest percentage. They could earn up to 19.9% of the market over a three year period. Early adopters include Canaccord Genuity, Liberum, Peel Hunt, Shore Capital, Stifel and Winterflood.
Liberum Capital and Zeus Capital have been approved as corporate advisers for the Aquis Stock Exchange.
AIM
Kistos (KIST) began trading on AIM on 25 November. The investment company raised £30.2m after expenses and the market capitalisation was £40.3m. The plan is to seek acquisitions in the oil and gas sector. The team behind Kist is the same as for RockRose Energy. The share price has risen from 100p to 118.2p.
Cyber security software and services provider Shearwater (SWG) reported a slump in revenues, but the decline was in lower margin products. There were also overhead reductions. That meant that there was a profit before amortisation of acquired intangibles. Orders were delayed but there was still a £1.7m cash inflow from operations. Net cash was £3m at the end of September 2020. Two-fifths of revenues are recurring, and the long-term outlook is good.
Circle Property (CRC) reported a 2p a share decline in NAV to 283p a share at the end of September 2020. Loan to value is 42% and there is £37.7m of a loan facility still undrawn. New lettings have been secured since March and rent collections have been strong. The interim dividend is 2.5p a share.
Telecoms testing instrumentation supplier Calnex Solutions (CLX) has made an impressive start to its time on AIM with interim figures that show near-doubled underlying pre-tax profit of £2.3m. This has led to an upgrade of the full year profit expectations to £2.9m. The cash being generated is enabling additional development spending.
IG Design (IGR) benefitted from a full contribution from the CSS acquisition, which has also reduced the seasonality of the group. Even so, continuing operations sales held up well. There is still scope for additional demand for Christmas wrapping and gift products, but time is running out for any significant improvement. Full year pre-tax profit is expected to be flat at $35m, although shares issued to fund the CSS acquisition mean that there would be a one-fifth decline in earnings per share to 25.5 cents. There should be a significant improvement next year.
First Property (FPO) has significantly reduced its debt following the sale of a property in Poland. This puts it in a good position to take advantage of any opportunities over the next year or so. Short-term income has declined and there were no performance fees. NAV is 54.3p a share. The interim dividend is maintained at 0.45p a share.
Appreciate (APP) has reinstated its dividend and it proposes an interim of 0.4p a share. Interim revenues were 18% lower at £27.4m. There is always a first half loss and it increased from £1.2m to £4.6m, although that does not include the restructuring costs. The Christmas savings business held up and the corporate incentives operations were boosted by additional business due to free school meals vouchers. More business is being done digitally and there continues to be a monthly improvement in trading.
D4T4 (D4T4) is continuing its development into a business focused on recurring revenues. The data collection and analysis software provider lost money in the first half, but management remains confident that D4T4 will achieve the full year pre-tax profit forecast of £3.2m, down from £5m. Net cash is expected to be £14m. The interim dividend was raised by 5% to 0.81p a share.
LoopUp (LOOP) has not achieved the annual run rate than it expected, and it will fall short of 2020 expectations. The remote meetings technology provider has been generating less revenue from international calls, which has hit overall revenues. Trimming the 2020 revenues forecast from £54.8m to £50.1m leads to a one-fifth reduction in pre-tax profit to £8.4m. The lower run rate means that 2021 forecast revenues have been slashed from £56m to £35.2m, which leads to a small loss for the year.
Outsourcing Inc has sent out the document for the takeover of CPL Resources (CPS). It is offering Euro11.25 a share, which values the Ireland-based recruitment company at Euro317.8m.
Digital advertising technology developer Miriad Advertising (MIRI) has raised £23m via a placing at 40p a share. A further £3m could be raised via an open offer. In July 2019, £16m was raised at 15p a share. The first half cash outflow was more than £4.6m. The cash will be spent on growing US revenues and further technology development.
Ilika (IKA) has decided to manufacture its Stearex batteries itself rather than outsourcing the process. This is the quickest route to production and operating margins will improve. Full scale manufacturing will start by early 2022.
ReNeuron (RENE) is raising up to £17.5m at a heavily discounted share price of 70p. This cash will enable the company to complete the current clinical trial for the retinitis pigmentosa treatment and design a phase III trial.
The share price rise of Wynnstay Group (WYN) has led to DBAY Advisors reducing its stake from 6.12% to 5.33%.
Urban Exposure (UEX) plans a tender offer of up to £65m at 75p a share. There is cash in the bank of £81m.
Second half trading was always going to be weak for Tracsis (TRCS) because of its exposure to events in the traffic and data division. Recurring revenues from the rail technology division have helped limit the pre-tax profit decline from £9.5m to £8.3m. This year is also likely to be tough, although it will depend on trading next summer. The main recovery is likely in 2021-22.
Serinus Energy (SENX) has raised $21m and this will pay off the debt of $16.5m. The lender will also receive a 9.9% stake. The rest of the cash will be invested in increasing oil and gas production.
Digital financial services and products provider Tungsten (TUNG) says profit will be lower than expected this year. Transaction volumes have declined, and revenues will be flat. Winning new business has become more difficult. Annualised savings of £4m are being made.
Michelmersh Brick (MBH) says that 2020 revenues and profit will exceed expectations. Government support of £500,000 will be repaid. There will still be net cash at the end of 2020. A final dividend of 2.25p a share will be paid.
Benchmark (BMK) has completed its restructuring and is on course to benefit from the investment it has made in products and capacity. The BMK08+CleanTreat treatment should be launched by next summer and this could help the aquaculture company to move into profit. In 2019-20, revenues fell from £124m to £105.6m, but lower costs meant that the loss was reduced. Genetics was the best performing division due to initial sales of salmon eggs from Salten. Net debt was £37.6m at the end of September 2020.
MAIN MARKET
Jlen Environmental (JLEN) is paying a second quarterly dividend of 1.69p a share, the same as the first quarter. There has been a small reduction in NAV from 97.5p a share to 96.1p a share because long-term expectations for electricity and gas prices have fallen. The portfolio is 34% wind power, 27% anaerobic digestion, 22% solar power, 15% waste and wastewater and 2% hydro and battery. A decline in waste volumes hampered the Bio Collectors business and other feedstocks are being sourced. There is £127.6m available to finance further acquisitions.
CML Microsystems (CML) had a mixed interim period with total revenues holding up at £12.9m. Storage technology revenues were one-quarter higher, but communications revenues fell by one-fifth and are no longer the largest contributor. However, the development activities have been broadened through acquisitions and there is a bigger addressable market. Pre-tax profit fell from £907,000 to £771,000 and the interim dividend is unchanged at 2p a share. The second half should be better than the first half and a rebalancing of resources should make the business more efficient.
Ingredients supplier Treatt (TET) improved pre-tax profit from £14m to £15.8m, although there was a small dip in revenues to £109m. The total dividend is 6.2p a share. Demand is likely to remain weaker than normal. The move to the new UK premises should happen in the middle of 2021.
J Smart Contractors (SMJ) reported halved underlying full year pre-tax profit of £1.28m. There was a surplus on investment property revaluations of £3.18m. There is net cash of £12m. A final dividend of 2.27p a share has been declared and the total for the year has edged up from 3.19p a share to 3.22p a share. The completion of building contracts has been delayed due to Covid-19 restrictions. Contracting work remains below the level of the previous year and private housing sales will be limited in the year to July 2021. NAV is £99.3m, which is double the market capitalisation.
Triad (LSE: TRD) revenues declined from £9m to £8.7m, but the IT consultancy did move from loss to profit due to lower costs. Utilisation rates for IT consultants is relatively high and cash covers around three-fifths of the market capitalisation.
Gulf Marine Services (GMS) has suspended chief executive Tim Summers, who was no longer a member of the board, due to an investigation into a severance payment of £429,000 on 10 November. Hassan Heikal was appointed a director at the general meeting on 25 November.
Cardiff Property (CDFF) increased its NAV from 2285p a share to 2436p a share at the end of September 2020, against a share price of 1725p. This reflects an uplift in the valuation of JV Campmoss due to an increase in value of Clivemount House in Maidenhead which has been sold since the year end. The dividend increased by 3% to 17.6p a share. There is cash of £5.5m and no debt.
Affordable housing services provider Aquila Services Group (AQSG) reported a decline in revenues from £3.89m to £3.51m, although there was a small improvement in operating profit prior to restructuring costs of £175,000. The dividend has been halved to 0.15p a share. Cash has increased to £1.4m.
OTAQ (OTAQ) increased interim revenues by 16% to £2.03m and it is on course for full year revenues of £4m. The growth has come from the aquaculture operations. Furlough claims reduced the loss.