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Quoted Micro 23 September 2024
AQUIS STOCK EXCHANGE
Digital assets investor KR1 (KR1) reported interim revenues from those digital assets improving from £3.91m to £8.72m, although lower gains on disposals of assets meant that the pre-tax profit edged up from £10m to £10.3m. There was £1.5m in cash in the balance sheet at the end of June 2024. NAV was 82.01p/share at the end of June 2024 and this has fallen back to 71.92p/share at the end of July 2024.
Oscillate (MUSH) has signed an agreement to acquire Quantum Hydrogen for £1.4m in shares. The Minnesota exploration acreage has potential for hydrogen gas. There was £500,000 raised at 1p/share. Investee company Shortwave Life Sciences (PSY) announced positive safety results for its proprietary psilocybin-based drug combination.
Equipmake (EQIP) has received an order from Genco Energy, which is a supplier to Kiwi Bus Builders in New Zealand. This covers four zero emission drivetrains for trail electric buses. There are discussions for the supply of more drivetrains.
Food and beverages company Essentially (ESSN) has renegotiated supplier terms and its beverages are being sold in more stores. The Best of Latin was acquired in May. Interim revenues rose from £593,000 to £920,000. The loss was reduced from £400,000 to £236,000.
Macaulay Capital (MCAP) net assets declined from £1.36m to £1.17m in the six months to June 2024. The company has seven portfolio companies.
Mollyroe (MOY) had net assets of £267,000 at the end of June 2024 and that includes cash of £312,000. Management is seeking opportunities.
Telecom fibre optic cable components supplier Unigel (UNX) interim revenues declined from £18m to £14.8m, but higher gross margins mean that pre-tax profit improved from £630,000 to £930,000. Productivity improved and there were greater sales of higher margin products.
IntelliAM AI (INT) has won contracts with Hovis manufacturing sites, and they are worth £100,000 over 12 months.
Wishbone Gold (WSBN) has raised £360,000 at 0.375p. This will provide working capital. New 3D modelling at the Red Setter prospect owned by Wishbone Gold shows a high quality target, plus the structure of a dome target. The assessment of the Western Australia shows gold, some near the surface, and copper resource.
Probiotix Health (PBX) has secured an agreement with Greek consumer business Eifron, which will introduce YourBiotix tablets in early 2025 under its own brand. There will also be other products using Probiotix Health’s core ingredient launched.
Valereum (VLRM) says that its El Salvador subsidiary has obtained a Digital Asset Service Provider licence. This enables it to operate a real world asset ecosystem.
Marula Mining (MARU) reported a higher loss in 2023. There was a £913,000 cash outflow from operating activities. There was also a £1.67m outflow from investing activities. The first manganese export sales have been completed from the Larisoro manganese mine.
Watchstone Group (WTG) had net assets of £5.8m at the end of June 2024. That includes cash of £6.2m, but a return of capital has reduced the cash balance to £1.7m.
Adsure Services (ADS) has declared a final dividend of 0.99p/share. The ex-dividend date is 17 October.
Ananda Developments (ANA) raised £80,000 from a retail offer at 0.3p/share. This is on top of the £2.1m already raised.
Daniel Thwaites (THW) director RAJ Bailey bought 45,000 shares ate 85.05p each and 13,000 shares at 85.25p each. He owns 1.3%. Constantine Logothetis has acquired more shares in SulNOx Group (SNOX) taking his total to 25.1%. William Black and Armstrong Investments has increased its stake in EPE Special Opportunities (EO.P) from 5.1% to 6.02%.
AIM
Steel structures supplier Billington (BILN) was always going to have a tough time maintaining the 2023 figures and interim revenues fell 4% to £57.9m. Pre-tax profit was flat at £4.6m, although building safety products made a higher contribution offsetting a decline in structural steel. Net cash is still £21.9m even after the 33p/share dividend. The second half will not hold up as well. Cavendish has upgraded its 2024 forecast for the second time in six months. Pre-tax profit has been raised from £8.5m to £9.25m, still well down on the 2023 figure of £13.4m.
Digital coupons and loyalty technology provider Eagle Eye (EYE) continues to grow at an impressive rate as more retailers take up its technology with AI providing additional revenue opportunities. In the year to June 2024, revenues were 11% ahead at £47.7m, while pre-tax profit improved from £4.5m to £6.1m. Net cash is £9.1m and it will continue to build up. The five-year target is revenues of £100m.
Judges Scientific (JDG) had a tough first half. Organic revenues were 3% lower with China the weakest market. The international nature of the business helps to offset some of the downturns in specific markets. Pre-tax profit fell 16% to £10.8m. The order book covers 17 weeks of revenues. Panmure Liberum expects a dip in full year pre-tax profit from £31.7m to £30.7m. The recently announced Geotek contract will benefit the 2025 results.
Good Energy (GOOD) continues its transformation into an energy services business, but the real change will not be seen until next year when they start to make a positive contribution. The reduction in energy prices hit revenues of the supply business and profitability. The first half of the previous year was a beneficiary of high gas prices, so it is no surprise that revenues declined sharply from £156.1m to £97.4m. Pre-tax profit slumped from £13.1m to £4.4m.
There is a better outlook for kettle controls and water filtration products supplier Strix (KETL) following significant restructuring and cost cutting in the first half. This led to large exceptional charges. Interim revenues improved 2% to £66.1m and pre-tax profit rose from £6.9m to £7.8m. This excludes the Halopure business, which is up for sale. There were improved profit contributions from all three divisions. There is no interim dividend. Net debt has fallen to £68.8m.
Packaging equipment and automation provider Mpac Group (MPAC) is acquiring BCA Automation for £12.9m in cash and shares. The acquired business focuses on robotics and conveyor systems for food and other sectors, so it fits well with the existing business. The Boston-based business focuses on the packaging area, whereas Mpac is focused on earlier stages of production.
Ceramic and fragrance products supplier Portmeirion (PMP) had flagged the interim figures. Revenues fell 17% and there was a loss of £2m. Costs are being lowered and this has enabled full year estimates to be maintained with pre-tax profit expected to recover from £3m to £4.2m. This will come via cost savings and additional revenues. The dividend is being rebalanced from 3.5p/share to 1.5p/share, but the total dividend for 2024 should be higher than last year’s 5.5p/share.
There was yet another upgrade for Warpaint London (W7L) from Shore Capital following the interim figures today. There was strong growth in Europe and the UK. North America grew slightly but the focus is higher margin business. Gross margins continue to improve. Overall group sales were one-quarter ahead at £45.8m and pre-tax profit jumped from £6.3m to £11m. The full year pre-tax profit forecast has been raised 5% to £24.5m.
Kinovo (KINO) has won an 18-month contract with Hackney council. It is worth up to £12m and covers a range of decarbonisation works on 300 properties. The work should start in the fourth quarter of 2024. There is also another contract with Hackney worth £400,000. This work replaces another contract that is being retendered.
Intermediaries services provider Fintel (FNTL) grew interim revenues from £31.7m to £35.7m, helped by acquisitions. Zeus has updated its forecasts for the most recent acquisition ThreeSixty Services. The 2024 revenues have been raised from £74.3m to £77.5m, while pre-tax profit has been reduced from £18.4m to £17.2m.
DP Poland (DPP) generated like-for-like growth of 22% in the first half and the growth remains above 20% in the second half. Money raised this year is being invested in new Domino’s sites in Poland. There is also growth in franchising with four corporate stores sold to an overseas operator. The loss is reducing, and DP Poland could move into profit in 2025.
Phoenix Copper (PXC) has published the pre-feasibility study for the Empire open pit mine in Idaho. Discounted NPV at 7.5% discount is $87.9m and total cash costs are estimated at $2.44/copper equivalent pound. Over eight years the mine could generate net free cashflow of $153m. Further exploration planning is happening, and equipment is being purchased for the processing site.
Global Petroleum (GBP) has risen on the back of yesterday’s application two additional licences near to an existing Juno licence in Western Australia, where it increased its stake from 70% to 80%. This is near the Havieron project. Precious and base metals targets have been identified that have similar characteristics to the existing licence. The company has appointed Omar Alumad, who it says has a record of identifying early opportunities, as chief executive and Hamza Choudhry as finance director.
Software training services provider Northcoders (CODE) reported a 26% increase in interim revenues to £4.4m. Registrations for courses were at record levels. There was a small interim pre-tax profit. Net cash is £700,000. The corporate business has been rebranded Counter. Investment in the cloud and data analytics means that there will be continued demand for Northcoders’ training and services.
Digital media company Catenai (CTAI) reduced its loss from £196,000 to £13,000 in the six months to June 2024. That is down to the fees earned for the £450,000 convertible loan note investment in oil and gas-focused data analytics company Klarian and reduced costs. Catenai has also moved from net liabilities to net assets. The cash position has improved to £31,500.
Africa-focused energy company Chariot Ltd (CHAR) has completed the drilling of the Anchois-3 main hole. It encountered gas, but gas pays are thinner than pre-drill estimates. The well will be abandoned. The next step for the project is being discussed with joint venture partners.
Rockfire Resources (ROCK) raised £450,000 at 0.1p/share to continue the development of Molaoi zinc silver lead project in Greece. Earlier in the month, the JORC resource was raised by 500% to 1.09 million tonnes of zinc, 260,000 tonnes of lead and 19.1 million ounces of silver. A retail offer to existing shareholders of up to £250,000 managed to raise £82,000.
MAIN MARKET
Motor and property finance lender S and U (SUS) says that motor business remains challenging, although this could improve in the second half if FCA restrictions are removed. Property lending is still growing. The interims will be published on 8 October.
Trading in Hostmore (MORE) shares has been suspended and then cancelled because the company is being placed in administration.
Shipbroker Braemar (BMS) reassured investors about 2024-25 trading. Interim operating profit should be slightly higher than the £7.6m reported in the same period last year. There is £3.3m in cash. Management is confident about the rest of this year and next year despite continued volatility in shipping markets.
DG Innovate (DGI) raised £620,000 at 0.075p/share with management promising to subscribe £200,000 when the energy storage technology developer is not in a closed period. This will fund development of e-drives and energy storage products. It will also help to fund setting up a joint venture with EVage Automotive.
Becket Invest (TAB) has agreed to buy SMT Holdings, which will invest in strategic metals and rare earths used in technology and aerospace.
Andrew Hore
Quoted Micro 31 July 2023
AQUIS STOCK EXCHANGE
Oberon Investments (OBE) reported a decline from £6.7m to £5m because of lower share dealing and capital markets income. The loss increased from £581,000 to £3.9m, which was predominantly down to one-off reorganisation and transaction costs. Management is confident that acquisitions and new teams will enable revenues to grow to more than £8m this year.
VSA Capital (VSA) says it had a better than expected first quarter to June 2023, but it still expects an interim loss. VSA Capital owns 0.85% of Silverwood Brands (SLWD), which is being sued by cosmetics company Lush concerning the acquisition of shares by Silverwood Brands and whether the transfer of ownership is valid.
TruSpine Technologies (TSP) has made th4e FDA 510k submission for the Cervi-Lok spinal stabilisation device. The FDA will take up to 90 days to make a decision. If clearance is received, then marketing can commence. The medical devices company has limited working capital.
Gunsynd (GUN) is providing funding of £1m in Metals One in return for a 25% stake in Finnaust Mining Northern. This investment is dependent on Metals One joining AIM and the simultaneous acquisition of Finnaust and will be provided in four tranches over 18 months. Gunsynd has sold 440,000 shares in Charger Metals, raising £100,000. It retains 2.54 million shares. Gunsynd will also receive 1.5 million warrants in Metals One.
Healthcare IT provider DXS International (DXSP) increased full year revenues by 3% to £3.4m. There was a pre-tax loss, but that was more than covered by R&D tax credits. There was £372,000 in the bank at the end of April 2023 and £500,000, before expenses, has been raised since then. Full year revenues expectations have been reduced to £3.8m and another loss is forecast.
Wheelsure Holdings (WHLP) has finally reported it figures for the year to August 2022. Revenues improved from £144,000 to £197,000, while the loss reduced from £224,000 to £202,000. Trading in the hares remains suspended until the latest interims are published. Wheelsure needs to raise additional working capital. The Tracksure digital fastener and Tracksure dual thread technology products have been developed.
Marula Mining (MARU) has appointed Angeline Greenwood and Richard Lloyd ahead of the proposed move to AIM. The latter will be an executive director. Quinton van der Burgh will be joining as chairman. Hannah Wang’Ombe and Munyaradzi Murape will be appointed as directors after regulatory clearance. Assay results from the Kinusi copper mine have been delayed until early August.
Invinity Energy Systems (IES) is selling a 0.2MWh Invinity VS3 flow battery system to VSUN Energy, a subsidiary of Australian Vanadium Ltd. The system will be used by power provider Horizon Power in Western Australia. There will be a trial to assess how the system works within the regional energy system.
Ananda Developments (ANA) has launched its first two cannabinoid medicines to the unlicensed market. Three private pain and medical cannabis clinics will offer the products. MRX1 will be used in two double blind randomised control trials run by the University of Edinburgh.
Apollon Formularies (APOL) has signed an exclusive licence agreement with South Africa-based medical cannabis company PureCann, which will produce and distribute the Apollon product range. There is a one-off licence fee of £100,000 and an ongoing royalty of 6% of profit on sales during the licence term. The roll out should be in the fourth quarter. There could be sub-licensing revenues.
KR1 (KR1) revealed an investment of $300,000 in Side Protocol as part of a pre-seed funding round. According to KR1, “Side Protocol is a distributed mesh liquidity system that utilises innovative inter-blockchain asset exchange application protocols. Unlike liquidity hubs, Side Protocol aims to decentralise liquidity between diverse blockchain networks in a bridgeless manner while maintaining interconnectivity”.
Decentralised finance technology investor AQRU (AQRU) generated interim revenues of £106,000 and lost £1.26m. Net cash was £7.4m at the end of April 2023, including £5.8m of customer deposits. The business has been streamlined and customers have to deposit at least $250,000. NAV is £5.43m. Digital asset prices are recovering. There are investments worth £3.59m, including a stake in fully listed Streaks Gaming worth £2.21m.
Eight Capital Partners (ECP) intends to give holders of the Euro 10m of outstanding 4.8% loan notes into shares at the weighted volume average price in the ten trading days prior to the implementation day. This could represent 10.4% of the nelarg4ed share capital. A general meeting will be held on 10 August.
Black Sea Property (BSP) had a NAV of 1.59 cents/share, while net debt was Euro19.7m. This is before the agreement to acquire 98.3% of Grand Hotel Varna.
ChallengerX (CXS) continues to lose money and had £48,000 in cash at the end of June 2023. Additional funds will be required to develop its marketing platform. NAV is £170,000.
ProBiotix Health (PBX) is appointing Niels Peter Bak as technical project manager. He has nearly three decades experience in the probiotics sector.
AIM
Safestyle UK (SFE) says interim trading is in line with forecasts, but the loss is much higher. Demand has been hit by increasing interest rates and that means that the second half will be poor. The windows supplier has been hit by a lower number of installations and a decline in the average number of frames for each installation. Costs savings have helped to offset the decline, but Zeus has downgraded its 2023 forecast from a pre-tax profit of £2m to a loss of £5.5m.
Wandisco (WAND) shares slumped 93.1% to 90p after the data software company returned from suspension. Wandisco recently raised £23.8m at 50p/share. The share suspension came about because of fraudulent irregularities in its accounts. There were $115.5m of false orders in 2022 and $14.9m of this was recognised as revenues. The additional cash raised will help to boost sales and marketing. The interim chief executive is in place and two non-execs have been appointed.
Battery technology developer AMTE Power (AMTE) announced it has secured a £1m loan facility from Arena Investors, which has relinquished conversion rights on the £3.75m convertible bond in return for warrants over 2% of the enlarged share capital. This latest loan will provide time to complete a £2.5m subscription by an unnamed investor at an indicative price of 1.7p/share, subject to due diligence. The new investor would own 80% of AMTE Power and there will be enough cash until September.
David Craven and Jean-Paul Rohan are joining the board of Itsarm (ITS) and the winding-up petition has been withdrawn. James Sharp and Richard Monaghan are stepping down without compensation and are not being paid fees for July. A new proposal reduces liabilities to around £140,000 and current cash is £223,000. The company is a shell and trading in the shares will be suspended if it does not find a takeover candidate by 27 September.
WH Ireland (WHI) has raised £5m at 3p/share because of a lack of regulatory capital. The broker is loss making and it does not believe that trading is going to improve this year. Cash outflows meant that WH Ireland did not have the required regulatory capital and the FCA may have required a solvent wind down of the business if cash were not raised. This is why the placing discount to the market price was high. There are plans to reduce annual overheads by up to £4m.
SRT Marine Systems (SRT) reported lower than expected 2022-23 loss of £200,000 and it is set to return to profit this year. Large contracts for systems and steady growth of tranceiver shares mean that revenues should jump from £30.5m to £70.9m and a pre-tax profit of £7.4m is forecast with further growth to come next year.
Franchise Brands (FRAN) combined organic growth and a ten-week contribution from Pirtek, which was acquired during the first half, to grow interim revenues 57% to £69.8m. In the six months to June 2023, underlying pre-tax profit rose 45% to £8.6m, although a higher tax charge and the additional shares in issue to fund the Pirtek acquisition meant that earnings were 4% ahead at 4.24p/share. The interim dividend is 11% ahead at 1p/share. Net debt was £79.1m at the end of June 2023. The consumer franchise business is no longer being marketed for sale.
Piling contractor Van Elle (VANL) reported full year figures in line with expectations with revenues increasing from £124.9m to £148.7m, while pre-tax profit jumped from £3.6m to £5.4m. Margins improved in general piling and ground engineering services. The total dividend is 1.2p /share. However, as previously flagged this year’s profit could be slightly lower and the tax charge higher. Some markets remain strong and there is a new Canadian rail business, but residential is weak.
Software training company Northcoders Group (CODE) has reassured investors about trading in the first half. Revenues grew by more than 50%. A further £4.5m of DfE funding has been secured, which helps to boost the order book. Northcoders is on course to achieve 2023 revenues of £9.5m and doubled pre-tax profit of £1.2m. The revenues are 70% covered by the order book.
BlueRock Diamonds (BRD) is being wound up administrators and any cash in the business will be distributed for preferential creditors. A party connected to the company is set to buy the assets.
RBG Holdings (RBGP) is writing off the value of £13.3m of its remaining litigation cases, including an unsuccessful case valued at £9.3m. Any return from the cases will be treated as revenues. The core business is taking longer to complete transactions. This has led to a reduction in the underlying 2023 pre-tax profit forecast to £5.9m and RBG has decided to reduce debt rather than paying dividends.
Sports consultancy and data services 4Global (4GBL) more than doubled its underlying pre-tax profit from £573,000 to £1.23m. There was strong trading at the end of the year and that meant that there was a sharp increase in work done that has not been invoiced. That led to a cash outflow in the period. Strategic partnerships with gym software company Jonas Fitness Inc and digital health provider Technogym will help to diversify revenues. First quarter trading has been strong.
MAIN MARKET
Data integrity and banking integration software provider Gresham Technologies (GHT) generated organic growth of 5% in the first half thanks to Clareti software wins. Clareti annualised recurring revenues are 10% higher at £28.6m and the rate of growth could accelerate in the second half. This will more than offset the loss of legacy product revenues.
Polymer and biopolymer solutions provider Graft Polymer (GPL) has secured a distribution agreement with US veterinary products supplier Inter-Technologies Inc, relating to the GraftBio self-nano emulsifying drug delivery system products. This is the first move into the US.
Vanquis Banking (VANQ) reported an underlying loss of £5.5m in the first half, compared with a profit of £54.3m, according to Shore Capital. The net interest margin fell from 21% to 18%, while the impairment charge increased from £38.5m to £85.6m. The interim dividend has been maintained at 5p/share.
Andrew Hore
Quoted Micro 1 May 2023
AQUIS STOCK EXCHANGE
Technology investment company Asimilar (ASLR) is leaving AIM, but it will retain its Aquis quotation. Trading in the shares recommenced following the publication of the latest accounts. Chris Akers raised his shareholding from 9.13% to 10.3% and that helped the share price to recover from its low during the week. At the end of September 2022, net assets were 5.53p a share. A general meeting will be held on 18 May and the AIM cancelation should happen on 26 May.
Fuel additives supplier SulNOx Group (SNOX) has received a general meeting requisition from RemNOx Ltd, which wants to remove chairman Radu Florescu and appoint three new directors. It also wants to remove chief executive Ben Richardson. RemNOx is controlled by Angela Bravo.
Four shareholders are requisitioning a general meeting at TruSpine Technologies (TSP) and they want four directors to be removed. They also want three nominees to be voted onto the board, which includes two of the requisitioners: Peter Houghton and Todd Michael Cramer.
OTAQ (OTAQ) published a nine-month update showing revenues of £2.6m up until the new year end of December 2022. There was a £300,000 EBITDA loss. There are a range of aquaculture products that are becoming ready for commercialisation. First quarter 2023 trading was in line with expectations and the outlook for the second quarter is better.
MBH Corporation (M8H) increased 2022 revenues by 31% to £142.8m, while operating profit was £3.4m, down from £5.16m. There was organic growth from all the main operating sectors.
Hydrogen Future Industries (HFI) had an interim cash outflow from operating activities of £548,000. There is £736,000 in the bank at the end of January 2023. The company has commenced prototype testing of the wind element of its hydrogen production system.
BWA Group (BWA) has appointed John Byfield and Jonathan Wearing to the board, while Alex Borelli has stepped down. High levels of rutile have been identified in samples from the Dehane 2 rutile sands project in Cameroon.
Investment company MaxRets Ventures (MAX) had net assets of £497,000 at the end of October 2022, including £411,000 in cash. Annualised running costs are £280,00. There are two cannabis-related investments and no new investments have been made in the past year.
SuperSeed Capital (WWW) has made a new investment in Kluster, an AI platform that helps clients to generate revenues.
EDX Medical (EDX) has raised £1,725m at 6p a share. Bridgemere has become the second largest shareholder with 11.6%.
PanGenomic Health (NARA) says a subsidiary has signed a definitive master service agreement with Psy Integrated Health. Patient biomarker data will be collected to assist in optimising treatments. Psy will be paid $45,000 for the initial work.
Equipmake Holdings (EQIP) has been awarded a £1.6m grant, on a matched funding basis, to help it further develop its electrification technology for electric vehicles.
Wishbone Gold (WSBN) has published exploration data for the Cottesloe project in Western Australia. This shows high grades of silver, cobalt, lead and zinc.
Marula Mining (MARU) published its quarterly activities update. This was an active quarter. There is an increasing focus on battery metals. The company is debt free.
At the end of January 2023, Kasei Holdings (KASH) had net assets of £2.05m, including cash of £473,000. Since then, £164,000 has been raised from Aalto Capital at 12p a share. However, this is less than the £500,000 expected.
Semper Fortis Esports (SEMP) raised £100,000 at 0.1p a share. This will take the cash pile up to £500,000. Costs have been brought down to a minimum.
Convertible loan notes worth £161,000 were converted into Valereum (VLRM) shares at 4.7112p a share.
AIM
Deutsche Bank is bidding 339p a share for Numis Corporation (NUM), which values the AIM nominated adviser at £410m. On top of the cash bid there will be an interim dividend of 6p a share for the six months to March 2023, plus an additional dividend of 5p a share. The first dividend will be paid in June and the second dividend will be paid after the effective date of the takeover.
Zoo Digital (ZOO) has raised £12.5m at 160p a share and a retail offer could raise up to £500,000 at the same price – it closes on 5 May. The cash will help to finance the acquisition of one of its Japanese media localisation partners from a leading technology company. This should be earnings enhancing. Management says that full year revenues will be $90m, which is lower than expected. This disappointment is due to lower margin dubbing revenues.
Fiinu Group (BANK) says a lack of money has slowed progress in gaining a full banking licence. A decision has been taken to withdraw the fintech’s licence application and reapply in a few months. Management will then focus on securing between £34m and £42m of cash. Once this is obtained the application process will be resumed. Fiinu has developed the Plugin Overdraft, which provides customers with an overdraft facility without the requirement to switch banks.
Trading conditions were tougher for Focusrite (TUNE) in the content creation market and that was only partly offset by a bounce back in the audio reproduction sector as live events returned to past levels. Group interim revenues fell from £92.9m to £86.2m, even after the inclusion of recent acquisitions. A fall in freight charges helped gross margin edge up to 47.1%. Even so, pre-tax profit fell from £16.3m to £10.9m. Net debt was £13.2m after the cost of acquisitions. The dividend was still raised from 1.85p a share to 2.1p a share.
IT training provider Northcoders (CODE) reported an 86% increase in revenues to £5.6m in 2022 and pre-tax profit jumped from £100,000 to £600,000. There was net cash of £1.7m at the end of 2022. Revenues of £6.1m are already in the order book for 2023 and the full year forecast is £9.5m. The pre-tax profit should double to £1.2m.
Management process automation software provider ActiveOps (AOM) made better gross margins on forecast revenues of £25m and a positive EBITDA in the year to March 2023. A £500,000 loss was forecast. There was £15.4m in cash at the year-end. The newly launched CaseWorkIQ software is starting to gain momentum. The full year figures will be published in July.
Smoove (SMV) says it is in bid discussions with PEXA Group. These are at an early stage but could lead to a cash bid for the online residential property services provider. Australia-based PEXA Group offers online property services through the Property Now content hub that are similar to those offered by Smoove. There is no indication of bid price.
WoolOvers Group announced on Tuesday afternoon that it will not be making a 10.5p a share bid for footwear retailer Unbound Group (UBG).
Parkmead Group (PMG) produced more condensate than expected from the LDS-01 well in the Netherlands, so the well has been temporarily shut-in to enable work to handle the greater volume. This will mean that 2022-23 pre-tax profit will be lower than expected, but still doubled at £15.1m. Longer term, the prospects appear brighter. Gas reserves appear to be greater than anticipated and the high gas price is prompting greater exploration activity.
Fire Angel Safety Technology (FA.) has been hit by supply problems and that particularly hampered sales of higher margin products. A delayed contract also held back progress. Costs have fallen but EBITDA will be below expectations in 2023. Price increases will help revenues from the second quarter onwards. Shore Capital has withdrawn its forecasts.
Iodine producer Iofina (IOF) has an increasingly attractive outlook for 2023. The iodine price remains relatively high at near to $70/kg and the new IO#9 facility should be up and running before the end of June. There are more potential sites for plants. Iodine derivatives sales are also increasing. Net income was $7.2m in 2022 and it is expected to improve to $8.1m this year.
MAIN MARKET
Mears (MER) reported 2022 pre-tax profit of £35.2m and higher than expected average net cash of £42.9m. The dividend has been increased by 31% and a £20m share buy back has been launched. The order book covers 98% of 2023 forecast revenues – pre-tax profit is likely to be flat.
Castings (CGS) has beaten forecasts for the year to March 2023. Pre-tax profit will be 8% ahead of the estimate at £16.8m. Demand from HGV manufacturers is still improving, and production inefficiencies resolved, helping the second half to be much better than expected.
Andrew Hore
Quoted Micro 15 August 2022
AQUIS STOCK EXCHANGE
Good Energy (GOOD) has invested a further £3.7m in EV charging app developer Zap-Map as part of a £9m fundraising. This values Zap-Map at £26.3m. Good Energy has also converted a £1m loan note into shares and it owns 49.9% of Zap-Map. Global fuel card and payment provider Fleetcor invested £5.3m and it can help Zap-Map expand internationally.
Media shell Lift Global Ventures (LFT) is buying financial PR and IR consultancy Miriad Ltd from the shell’s director Zak Mir. In the year to June 2022, Miriad Ltd generated revenues of £341,000 and an operating profit of £265,000. A general meeting will be held on 5 September. Lift Global Ventures will pay £200,000 in cash and 4.17 million shares at 4p each. The current share price is 1.125p. Zak Mir has transferred a holding of 8.33 million shares in Lift Global Ventures from Miriad Ltd to himself for nil consideration.
In the three months to June 2022, National Milk Records (NMRP) increased revenues from £5.72m to £6.09m. All parts of the business grew their revenues with genomics testing more than doubling revenues to £111,000. This is the final quarter of the financial year. Milk prices are increasing.
Altona Rare Earths (ANR) has estimated an exploration target of up to 56.6 million tonnes at up to 1.65% total rare earth oxide at the Monte Muambe rare earths deposit. The JORC mineral resource estimate should be published in the first quarter of 2023.
In the year to February 2022, Inqo Investments Ltd (INQO) reported a loss of R14.2 million after a R2.4 million impairment charge. There is a new reforestation project over 5,000 hectares of degraded land on the Kazuko private game reserve. Since the year-end, R2 million of director loans have been made available and a total of R1.44 million will be generated by the sale of the stake in Bee Sweet Honey Investment.
Asia Wealth Group Holdings Ltd (AWLP) reported a reduced 2021-22 profit of $11,266, down from $193,507, due to unrealised currency losses from Japanese Yen holdings and the write down of an investment. Net assets were $1.59m at the end of February 2022.
Invinity Energy (IES) shares commenced trading on the US OTCQX market and new US climate legislation should boost energy storage demand. The energy storage technology developer says the bill contains $369bn of clean energy investment, including tax incentives and grants.
Oscillate (MUSH) has £1.2m in cash as well as investments in three companies.
Close Asset Management has taken a 6.5% stake in Macaulay Capital (MCAP), which joined the Access segment on 29 July when £1.9m was raised at 20p a share. This week the share price rose to 25p. The strategy of the company is to originate potential investments and generate fees from these businesses by advising them and helping to raise money, as well as investing alongside other investors.
Chapel Down Group (CDGP) has replaced finnCap with Singer as its corporate adviser and broker.
Hydrogen Utopia International (HUI) has appointed Duncan Snelling as an engineering consultant and granted him options over up to 600,000 shares at 9.275p each. Each month, 50,000 options will vest, and they are exercisable between the first and fifth anniversaries of the appointment.
Vulcan Industries (VULC) has appointed Darren Taylor as a non-executive director. He was one of the shareholders in Aftech, which was acquired in March, and he has a 12.6% stake in Vulcan Industries.
Gathoni Muchai Investments, where Marula Mining (MARU) chief executive Jason Brewer is a substantial shareholder, acquired 1.5 million shares and 1.1875 million warrants exercisable at 4p each for a total of £16,000. Chairman Richard Lloyd bought one million shares at 1.07p each.
David Bull has stepped down as chief executive of Eight Capital Partners (ECP).
Goodbody Health Inc (GDBY) has shareholder approval to change its jurisdiction from Canada to Guernsey and delist from the CSE.
Rogue Baron (SHNJ) is changing its year end to 30 September. Discussions continue with the auditor about the year end stocktake at the Bin 1301 bar and the stocktake of tequila inventory.
AIM
Staffing provider Empresaria (EMR) benefited from a strong performance from its outsourcing division, which more than offset declines in profit in the regional divisions in the first half of 2022. Group net fee income was 15% higher at £32.6m. operating profit was 94% ahead at £3.5m. The Americas division had tough comparatives because of Covid-related healthcare business. Net debt is £10.8m.
Manchester-based Northcoders (CODE) has won a £4m contract from the UK government to provide scholarships for software training for individuals. This will be used to fund software development and data engineering skills training by Northcoders and it stretches into 2023. More than 85% of forecast 2022 revenues of £6.5m, up from £3m, are covered by contracted work, while 30% of the 2023 forecast of £10.5m is covered.
Self-storage sites operator Lok’nStore (LOK) published its full year trading statement showing self-storage revenues 17.3% higher. Stripping out new stores and the four stores sold in the period, the increase was 24.9%. There were increased occupancy levels and prices were raised by 13% over the year. Three new sites were opened during the year and Basildon, Bedford, Peterborough and Staines are all set to open in 2023.
Shares in Africa-focused oil and gas company Afentra (AET) returned from suspension following the publication of the admission document covering the proposed acquisition of interests in the producing Block 3/05 and the exploration Block 23 in Angola from Sonangol. The initial cost is $80.5m, with up to $50m of contingent consideration for the Block 23 interest. The acquisition cost is equivalent to $3.60/barrel – based on proved and probable reserves. In the first half of 2022, the net production from Block 3/05 was 4,700 barrels per day and it could generate $36m of cash a year at an oil price of $75/barrel. Trading in the shares had been suspended since 8 October.
MJ Hudson (MJH) raised £9.22m in a placing and PrimaryBid offer at 30p a share. The cash raised will be invested in the ESG division, help to pay deferred consideration and provide additional regulatory capital for the growing operations, particularly in Ireland.
Electrical retailer Marks Electrical (MRK) increased revenues in the first four months of the financial year by 14% to £27.7m. Marks Electrical is growing market share for major domestic appliances and consumer electronics. Televisions, vacuum cleaners, washers and air conditioning were strong categories. Rivals have been discounting prices and marketing costs are increasing, but management believes it can achieve profitable growth.
Geospatial software provider IQGeo (IQG) is acquiring automated planning and design software provider Comsof, which is profitable and cash generative. IQGeo currently includes similar software in its services, but it is supplied by a third-party. Swapping this for Comsof software will enhance margins.
Crestchic (LOAD) forecasts have been upgraded for the third time this year. The largest ever loadbank hire contract has recently been secured, which is helping trading momentum to continue to accelerate. The new factory has been completed. Demand from datacentres is strong and there is a recovery in demand from the oil and gas sector. Utilisation at record levels. The 2022 pre-tax profit forecast has been raised from £5.2m to £7.2m
Digital media company Digitalbox (DBOX) increased interim revenues by 40% to £1.9m and there was an increase in net cash to £2.4m. This is before the completion of the acquisition of the assets of TVGuide.co.uk, which will make a contribution in the second half. However, management is concerned about advertising levels in the second half.
MAIN MARKET
Used car finance and property bridging loans provider S&U (SUS) says group receivables increased from £340m to £370m and first half profit is greater than last year. Motor finance provider Advantage Finance receivables are £280m and Aspen property bridging loans have reached £90m with an average size of around £875,000 for loans this year.
Radiators company Stelrad Group (SRAD) grew interim revenues by 17% to £150m, even though volumes declined. Underlying pre-tax profit was 83% ahead at £13.9m. Net debt is £47.5m. Recently acquired DL Radiators will be earnings enhancing this year.
Hamak Gold Ltd (HAMA) executive director Karl Smithson bought 119,094 shares at 8.4p each, while non-exec Martin Lampshire purchased 122,000 at 8.18p each.
Andrew Hore
Andrew Hore – Quoted Micro 6 September 2021
AQUIS STOCK EXCHANGE
Rutherford Healthcare (RUTH) says a UK investor has agreed to acquire 19 million shares at 65p each. That will raise £12.35m. Rutherford is also issuing 64 million shares to acquire UAE-based Proton Partners International Health Care Investments, which owns the Gulf International Cancer Center in Abu Dhabi.
Capital for Colleagues (CFCP) has made a new investment in Craft Prospect, a Glasgow-based satellite engineering business. There will be £800,000 invested in ordinary shares for a 11.3% stake. The cash will be used for recruitment and product development.
VSA Capital Group plans to join the Aquis Stock Exchange on 9 September. It was previously quoted on AIM, although it cancelled the quotation in April 2013. London-based VSA provides corporate finance and broking services and has an office in Shanghai. In the year to March 2021, the main subsidiary VSA Capital increased revenues from £2.14m to £2.98m and pre-tax profit jumped from £278,000 to £746,000. Group net assets were £4m at the end of March 2021.
Polygon Global Partners has increased its bid for Watchstone Group (WTG) to 38p a share, up from 34p a share, which values the company at £17.5m. Watchstone still believes the bid is too low. In the middle of August 2021, there was £14.1m in the bank and £1.8m in escrow. There are potential litigation claims on top of that.
KR1 (KR1) has participated in the Moonriver (MOVR) crowdloan and Kusama (KSM) parachain auction. KR1 contributed 5,000 KSM to the crowdloan auction. In return KR1 has received 19,666,35 MOVR and will receive a further 45,888.15 over 48 weeks. KR1 has already sold 15,643.19 MOVR in return for 5,162.25 KSM. KR1 also invested $500,000 in return for Exponent (XPN) tokens. Exponent is an open source platform.
In the year to December 2020, MiLOC Group Ltd (ML.P) increased revenues from HK$15.4m to $20.5m and it moved from loss to a profit of HK$6.22m. The healthcare company sharply reduced its distribution costs and other admin expenses. This reflected the termination of an endorsement agreement and a write-back of a previous over provision for fees.
First half revenues of Yooma Wellness Inc (YOOM) were $2.78m, with $2.18m generated in the second quarter. The interim loss was $5.5m.
Wishbone Gold (WSBN) has identified seven targets at the Cottesloe project in Western Australia.
Eight Capital Partners (ECP) has launched an issue of €25m 4.8% five-year bonds that will be listed on the Vienna Stock Exchange. They will help to refinance existing bonds.
Evrima (EVA) is raising £720,000 at 5p a share plus warrants to subscribe for shares at 10p each. This will finance investments in existing investee companies and new investments.
Vulcan Industries (VULC) has raised a further £163,000 at 1.7003p a share.
AIM
Capital equipment manufacturer Mpac (MPAC) had a strong first half with a combination of acquisitive and organic growth in the Americas. Revenues were one-fifth higher at £44.2m, with organic growth of 2%. Pre-tax profit was 88% higher at £4.7m. Net cash was £10.3m at the end of June 2021. Healthcare and food have been the main markets for the company’s packaging and automation equipment, but a new contract has been signed to supply battery cell assembly equipment. The full year pre-tax profit forecast has been upgraded to £8.2m.
Bigblu Broadband (BBB) is returning £26m to shareholders following the recent disposal of Quickline. That will be 45p a share in cash via the issue of B shares by October. There should still be net cash of £1.7m at the ned of November 2021 with deferred consideration due next year. Interim revenues from continuing operations improved from £10.6m to £13.1m. Growth is coming from Australasia, but the Nordic region is expected to return to growth next year.
Mercia Asset Management (MERC) has made a £1.6m direct investment in Locate Bio, which had previously been backed by the manager’s funds. Locate Bio’s products help to accelerate the repair of bone and cartilage. The total of £10m raised by the company will be used to support trials of its technology.
Pennant International (PEN) says interim revenues improved by 17% thanks to a strong performance by the software division. The three-year contracted order book has fallen to £25m, but there are potential contracts in the pipeline. Pennant should return to profit this year.
Interim revenues have trebled to £820,000 at in-game digital advertising firm Bidstack (BIDS), but there is still a long way to go before it reaches profitability. Losses will continue in 2021 and 2022, although there is enough cash in the bank to cover these, following a £10.8m fundraising.
Trading at Manchester-based Northcoders (CODE) has been strong since the software training company joined AIM during the summer. Applications are 162% of 2019 levels and there is 90% revenue visibility for 2021. There are plans to open a new office in Birmingham.
Real-time financial data software provider Arcontech (ARC) reported flat full year revenues and pre-tax profit of £3m and £1.1m respectively. Even so, the dividend was raised by 10% to 2.75p a share.
Bangladesh Bank has approved the acquisition of a majority stake in Sanofi Bangladesh by Beximco Pharmaceuticals (BXP).
MAIN MARKET
Innovaderma (IDP) has completed its product portfolio review and medical device products have been classed as non-core. Packaging of core personal care products has been refreshed and they are available via Amazon. There are plans to use influencers to build sales.
Dealings have commenced in Caracal Gold (GCAT) following its acquisition of Kilmapesa gold mine. There are plans to increase production to 50,000 ounces of gold each year.
One Heritage Group (OHG) has become aware of financial issues with owned associate company One Heritage Maintenance, where it owns the equivalent of a 34% stake. The stake was valued at £285,000.
Andrew Hore