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Quoted Micro 9 December 2024
AQUIS STOCK EXCHANGE
Invinity Energy Systems (IES) has launched its next generation flow battery ENDURIUM. This has higher efficiency and is designed to be manufactured in Scotland in high volumes. This new product is likely to be the main source of orders from now on. There are already orders for ENDURIUM. Invinity Energy Systems is expected to move into profit in 2026.
Equipmake (EQIP) has launched a strategic review that could lead to the sale of the company. The company is still waiting for the final agreement for a $6m licence with a commercial vehicles manufacturer. It is running short of cash with £1.9m currently in the bank. That should last until March. A further share issue or a strategic partner will be required if Equipmake is to remain independent. VSA has been appointed as corporate adviser.
Vinanz Ltd (BTC) intends to move to the Main Market. This depends on the FCA approving the prospectus. Shares will be issued to all option and warrant holders.
Cooks Coffee (COOK) has entered an agreement with Dairygold Agri Business in Ireland to operate four Esquires cafes within Co-Op Superstores owned by Dairygold. The initial period is for 10 years and there are 24 other stores owned by Dairygold.
Ormonde Mining (ORM) investee company TRU Precious Metals has announced positive results of exploration in the Golden Rose project. Some of the samples showed high grades.
CRUSHMETRIC Group (CUSH) has raised £100,000 at 12.5p/share. China-based subsidiary Star Collaboration has reached a settlement with a distributor and it will pay £166,000.
Marula Mining (MARU) says contract mining should begin at the Blesberg lithium and tantalum mine in South Africa during February 2025. There is a planned leasing agreement for support vehicles.
Coinsilium (COIN) has appointed Oberon Capital as its joint broker. The company has entered a strategic advisory services agreement with TAND3M.io.
Cannabis-based medicines developer Ananda Developments (ANA) says its MRX1 drug candidate has passed through drug stability timepoints ahead of a phase 1 and two phase 2 studies.
Kondor AI (KNDR) had a cash outflow of just over £1m during the 12 months to September 2024. There is £611,000 in cash left in the balance sheet.
Fuel additives developer SulNOx Group (SNOX) has raised £1.875m via subscription at 46.6p/share and an exercise of warrants at 29p/share. A subsidiary of McQuilling has invested in the subscription and it is the preferred partner in the US market. Ora Technology (ORA) raised £255,000 at 8p each. Marallo Holdings has acquired a 27.6% stake.
EPE Special Opportunities (EO.P) is commencing a share buy back programme.
Silverwood Brands (SLWD) executive director Andrew Gerrie bought 26,572 shares at 22.556p each.
AIM
Warpaint London (W7L) is bidding 48p/share in cash for Brand Architekts (BAR), valuing the company at £13.9m. There is a share alternative. Warpaint London believes that its relationships with retailers will help to boost sales of the health and beauty brands, such as Skinny Tan and Super Facialist, owned by Brand Architekts, which has high overheads compared with its revenues. The acquisition should be earnings enhancing in 2025. Warpaint London is raising £14m at 510p/share with up to £1m more to come from a retail offer.
K3 Business Technology (KBT) is selling its UK SYSPRO business NexSys to SYSPRO owner Advent for £36m. This business generated 109% of group EBITDA and 28% of group revenues. K3 Business Technology intends to return cash to shareholders. The company’s remaining operations are K3 Fashion and Pebblestone, the IKEA software business and other retail software.
SDX Energy (SDX) plans to leave AIM because of the costs of the quotation and the greater flexibility as a private company. Potential investors would prefer to invest in an unquoted company. It is the intention to put in place a matched bargains facility. The strategy continues to be to become a vertically integrated gas and renewable energy producer in Morocco. If shareholders agree, then the quotation will be cancelled on 9 January. SDX Energy joined AIM in May 2016 at 18p/share.
Photonics company Gooch & Housego (GHH) had a better second half, but full year profit was still lower. In the year to September 2024, revenues were 1% ahead at £136m. A decline in industrial revenues, due to weak product sales for semiconductor manufacturing and other industrial uses, was offset by higher aerospace and defence and life sciences revenues. Underlying pre-tax profit slipped 22% to £8.1m. The total dividend was raised 1.5% to 13.2p, which is 1.9 times covered by earnings.
Technology company adviser and investor EMV Capital (EMVC) raised £1.5m at 50p/share, which was a 15% premium to the previous day’s closing price. The cash will fund investment in reporting infrastructure and hiring of additional staff. It will also provide money for additional investments. Management is targeting recurring annual fund management fees of more than £1m so that it can reach breakeven. In the ten months to October 2024, core income was £2m, up from £1.2m, including £500,000 of recurring fund management fees. This excludes subsidiary portfolio companies.
Condor Gold (CNR), which is developing the La India gold project in Nicaragua, says that Metals Exploration (MTL) and Calibre Mining Corp have made bid approaches and negotiations are at an advanced stage with Metals Exploration. Calibre Mining Corp says it will not make an offer. Metals Exploration has entered into a £5.5m bridging loan facility with Drachs Investments No. 3, which has a 18.4% shareholding. This is repayable at the end of January or when talks end. Galloway is lending £475,000 to Condor Gold. Metals Exploration owns the Runruno gold project in the northern Philippines.
Bigblu Broadband (BBB) is selling Australian broadband business to SKM Telecommunications for up to £25.7m, which values the business at more than double the total cost of investment. The initial cash payment is £15.4m and £6.8m in shares in SKM, with a further £3.5m in cash due in one year. This requires shareholder approval at a general meeting on 20 December. The company will still have operations in New Zealand and a subsidiary involved in the distribution of Starlink, plus a 2.8% stake in Quickline. Revenues are forecast to be £1m in 2024-25.
Bars and leisure operator XP Factory (XPF) continues to grow both of its brands. Escape Hunt interim revenues were 7% ahead at £6.5m and management believes that this part of the business could be bigger than originally anticipated. Boom Battle Bars revenues were 56% higher and more of the franchise outlets are being acquired. Group like-for-like revenues were 4% higher. There was a small underlying pre-tax profit before contract termination and other exceptional costs. Net debt was £1.3m at the end of September 2024. Medium-term targets have been set. The plan is to increase sales by 50% and double underlying EBITDA by March 2028. That means a revenue target of £90m with a March 2028 run-rate of £100m and EBITDA margins of 15%.
Construction disputes and property services provider Diales (DIAL), formerly Driver Group, has completed its rebranding and the benefits of cost cutting will show through in the current year. Interim revenues edged up from £42.6m to £43m. A decline in European and North American revenues was offset by growth in the other markets. The Middle East returned to profit and the Asia Pacific loss was lower. Overall pre-tax profit improved from £1.1m to £1.2m. The total dividend is maintained at 1.5p/share, although it is still not covered by earnings. The net cash of £4.3m (7.9p/share) enables Diales to add more fee earners, which might come from small acquisitions that may add to the range of services and sectors that can be addressed.
SRT Marine (SRT) reported revenues of £14.8m in the 15 months to June 2024. The loss was £13.8m. Transceivers generated most of the revenues with the major systems contracts with international coastguards potentially starting in the next few months, hopefully at last one of them by the end of 2024. New finance has been obtained since the end of the period.
Floorcoverings distributor Likewise (LIKE) in contrast with some companies had a strong October and November when sales were 11% ahead. Year-to-date growth is 7.5%, which represents an increase in market share. Margins are also improving. Zeus has maintained its 2024 pre-tax profit forecast at £2m, although sales are ahead of expectations.
Investment company Seed Innovations (SEED) says MAV was £10.6m at the end of September 2024, including £3.52m in cash. That is 5.5p/share. This NAV is after the £2m cash distribution to shareholders. The main quoted investment was Alaska-focused oil and gas company Pantheon Resources (PANR) and the share price subsequently rose from 16p to 22.91p. The company sold the shares, adding £101,000 to NAV.
Semiconductor designer EnSilica (ENSI) has won another long-term design and supply contract. The total contract value for the deal with an industrial test equipment provider will be more than $30m over ten years. This comes with an upfront payment to help the cash position.
Interim figures from telematics supplier Trakm8 (TRAK) show reduced revenues from £8.54m to £8.31m, following a reduction in recurring revenues from £5.23m to £4.51m. The pre-tax profit slumped from £119,000 to £15,000. Net debt was £6.66m at the end of September 2024. Full year expectations have been reduced. The insurance market remains tough. There could be some improvement next year, but the outlook is uncertain.
Fashion retailer Quiz (QUIZ) has been hit by falls in online and stores revenues, although there was an improvement in international revenues, in the four months to the end of November. There was a sharp decline in November. Overall revenues fell 6% to £24.9m. Annual costs will be increased by £1.7m as a consequence of the Budget. Net debt is £2.8m and the £4m of bank facilities could be fully utilised by early 2025 and additional funds will be required. The company’s founder has offered a £1m loan.
Rockwood Strategic has increased its stake in film vehicles and services provider Facilities by ADF (ADF) to 4.4% stake and related investment entities still have a further 7.6%, Chief executive Marsden Proctor has bought 79,947 shares at 31.6p each.
Cannabis-based medicines developer Celadon Pharmaceuticals (CEL) has finally received the balance of £150,000 from the May 2024 subscription at 105p/share.
MAIN MARKET
Compliance technology developer RegTech Open Project (RTOP) plans to leave the transition category of the Main Market. Trading should end on 31 December. A new chief executive is being sought and there are plans to raise cash. The company has also promised to find an exit opportunity for existing shareholders.
Tissue engineering company BSF Enterprise (BSFA) has raised £500,000 via an oversubscribed placing at 2.5p/share and each new share comes with a warrant exercisable at 5p. There should be enough cash for more than 12 months.
Publisher National World (NWOR) says it would be minded to recommend the enhanced 23p/share bid from Media Concierge. The offer is subject to due diligence.
R8 Capital Investments (MODE) is not going ahead with the acquisition of Redwood Partners. A fundraising is planned.
Andrew Hore
Quoted Micro 7 October 2024
AQUIS STOCK EXCHANGE
Prize draw operator Good Life Plus (GDLF) has increased the number of paying subscribers by 90% to more than 40,000 in less than a year. Management says that it might exceed expectations for the current financial year. Good Life Plus is raising £2m at 2.5p/share. Earlier this year, £2m was raised at 2.25p/share. The cash will finance customer acquisition and signing up new partners.
Brewer Shepherd Neame (SHEP) grew full year revenues by 4% to £172.3m and underlying pre-tax profit improved from £7.6m to £7.9m. NAV is 1217p/share, while net debt is £80m. Like-for-like retail sales were 4.9% ahead with the growth dominated by drinks offsetting a fall in accommodation income. Beer volumes declined 12% with own-brewed volume 17% lower. Brand refreshes are planned. Beer volumes continue to decline, while like-for-like retail sales for the initial 13 weeks of the new year are 3.8% higher.
Consumer brands company Silverwood Brands (SLWD) increased interim revenues from £5.85m to £7.08m and it moved into profit, but that was mainly due to exceptional gains.
CRUSHMETRIC Group (CUSH) increased interim revenues from HK$1.04m to HK$2.94m, although the loss was similar at HK$3.7m.
Talks with potential investors in Quantum Exponential Group (QBIT) have been terminated. The documentation has not been signed and the potential investor did not pay the £200,000 towards costs that it promised. Trading in the shares will end on 30 October.
Voyager Life (VOY), which has an option to acquire M3 Helium, has changed its name to Mendell Helium. The admission document is being prepared and the option should be exercised by the end of January. The company had £163,000 in the bank at the end of March.
Aquaculture technology developer OTAQ (OTAQ) reported a 16% decline in interim revenues to £1.5m because of a delay to a £350,000 order. The company continues to lose money. A forecast full year loss of £1.3m is similar to 2023, including a £150,000 benefit from cost reductions, and it could be halved in 2025 as the full benefit of cost savings show through.
KR1 (KR1) had net assets of 57.27p/share at the end of August 2024. The income in the month was £590,000.
Investment Evolution Credit (IEC), which provides loans under the Mr Amazing Loans brand, is holding a general meeting to gain approval to raise up to £2.5m from share issues. Paul Mathieson is being replaced as chief executive by Marc Howells. Former director Sam Prasad is loaning £200,000 to the company, which replaces a previous £100,000 loan.
Recycling services provider Majestic Corporation (MCJ) narly doubled interim revenues from $13m to $25m and pre-tax profit was one-third higher at $900,000. The company has received Enterprise Investment Scheme status.
RentGuarantor (RGG) has increased third quarter revenues by 62% and average revenues per tenant by 8% to £606.
Gains on investments enabled Hot Rock Investments (HRIP) to move into profit in the year to March 2024. Net assets increased to £512,000.
An undertaking of EPE Special Opportunities (EO.P) has provided additional funding of £2m to the Rayware Group. There is also a £1m contingent guarantee provided to third party lenders. EPE Special Opportunities still has £16m in cash.
ProBiotix Health (PBX) has a commercial partnership with Deutsch-Pharm. It will use two of the company’s products (for cholesterol lowering and vascular health) under its own brand in the Ukraine. Commercialisation is anticipated in the first quarter of 2025.
One Health Group (OHGR) has appointed Panmure Liberum as corporate adviser and broker.
Hydro Hotel Eastbourne (HYDP) has declared an interim dividend of 13p/share.
AIM
AO World (AO.) is acquiring musicMagpie (MMAG) for 9.07p/share, which values the pre-owned products supplier at just under £10m. There are irrevocable undertakings and letters of intent totalling 54% to accept the offer. AO World believes that the two companies have complementary online models, and a technology trade-in service will enhance its product offering. AO World says that the musicMagpie disc media and books business should not require significant investment.
EMV Capital (EMVC) director Jonathan Robinson bought 25,000 shares at 52p each following the interim results announcement of the company that was previously known as NetScientific. Total assets under management reached £106.7m following the addition of the Martlet Capital portfolio. Net assets edged up from £17.1m to £18.5m. Nasdaq-listed investee company PDS Biotech announced a 36-month survival rate of 84.4% in locally advanced cervical cancer patients treated with the company’s lead target drug Versamune HPV and Chemoradiation.
Tavistock Investments (TAVI) is raising up to £37.75m from disposals, which is more than treble the market capitalisation before the sale, with nearly £11m payable on completion and a further £11m from discharge of intragroup debt. The rest is payable based on performance. The two businesses made a pre-tax profit of £1.5m in the year to March 2023. The cash will be used for working capital and acquisitions. There could also be share buy backs. Chief executive Brian Raven bought 830,000 shares at 3.55p each.
Good Energy (GOOD) has acquired Lincolnshire-based solar installer Amelio Solar for an initial £5.5m. The focus of the business is the education and public sector. In 2023, revenues were £7m and pre-tax profit is £1.4m. However, there have been lower levels of activity in Good Energy’s existing installation business.
Packaging equipment and automation provider Mpac Group (MPAC) is making its second acquisition in recent weeks and this is by far the larger. Mpac is acquiring CSi Palletising for £47m, including £4.16m in shares, and the deal should be completed by the end of the year. CSi Palletising designs, manufactures and installs end-of-line packaging automation and robotics equipment and will enhance the geographic coverage. In 2023, CSi Palletising generated revenues of €71.5m and EBITDA of €7.3m. The latest interims show revenues of €44.4m and EBITDA of €6.8m. There is an order book worth €64.3m. A placing raised £29m at 400p/share and a retail offer to existing shareholders could add up to £1m to the figure.
Digital media publisher Digitalbox (DBOX) has commenced a strategic review, which could involve a sale of the company. This follows representations from a major shareholder disappointed about the level of the share price. Progress should be reported in November. Interim revenues were better than expected, but July and August were weak. Net cash is £2.2m, which is more than 50% of market capitalisation. A capital restructuring is underway to create positive distributable reserves.
Agricultural products supplier Wynnstay Group (WYN) says the second half has been hit by wet weather and weaker farmgate prices in part due to government policy uncertainty. Shore has reduced its 2023-24 pre-tax profit forecast by 35% to £7.5m and this will have a knock-on effect in the year to October 2025 where the profit forecast has been cut by 29% to £8.5m. Wynnstay should still have net cash, and the NAV is estimated at around 600p/share.
Payments technology company Bango (BGO) is making some progress towards regaining investor confidence and it is on course to make a full year profit. Interim revenues grew 19% to $24.1m. Annualised recurring revenues are 130% ahead at $12.9m. Net revenue retention is 159%.
Ceramic disc brake technology developer Surface Transforms (SCE) increased interim revenues by 58%, but growth is still not meeting expectations even though there is further growth in third quarter revenues. There are delays to installing additional capacity. Full year revenues are expected to be £11m, compared with previous expectations of £17.5m. There was £5m in cash at the end of June 2024. Odd Asset Management reduced its stake from 5.13% to 2.58%.
Graphene technology developer Versarien (VRS) has signed an agreement with Balfour Beatty to develop 3D-printable mortars for civil construction. It will formulate three types of mortar. This follows the disposal of AAC Cryoma for £550,000 payable in 15 instalments.
Oil and gas company Prospex Energy (PXEN) is applying for exploration licences in Poland. The licence awards should happen in the first quarter of 2025. Initial results from the Vlura-1B development well in Northern Spain are positive. Drilling intercepted significant gas shows and that confirmed the high quality reservoir. This well will be connected up and first production should be by November.
Battery and electronic components supplier Solid State (SOLI) is acquiring Gateway Electronic Components, which manufactures ferrite and magnetic components for £1.4m. These are used by electromechanical and Industrial Internet of Things businesses. The run rate pre-tax profit is £200,000, so the multiple is less than ten.
Surplus consumer products retailer Huddled (HUD) generated interim revenues of £5.3m and they continue to grow organically and via acquisition. Third quarter revenues will be around £3.5m. Management is investing in inventory and marketing. Warehouse functions are being centralised.
MAIN MARKET
Motor dealer software provider Pinewood Technologies (PINE) published its first results following the sale of the motor dealer business. In the six months to July 2024, revenues were 11% ahead at £16.1m. Major shareholder Lithia is taking up new licences in the UK. The US roll out is being planned.
The two board representatives of Kelso Group (KLSO) on AIM-quoted The Works.co.uk (WRKS) have stepped down. This will make it easier to sell its 6.3% stake if it wishes to. The average cost was 32p/share and the current price is 25.2p.
Andrew Hore
Quoted Micro 15 April 2024
AQUIS STOCK EXCHANGE
Voyager Life (VOY) has terminated its merger with Northern Leaf following a decline in its share price making it difficult to fund the transaction. The cannabis products supplier says that there are other potential partners. Additional finance is required to automate production.
Supernova Digital (SOL) says NAV was 0.36p/share on 3 April 2024. A tender offer is planned when there are additional liquid funds. Director Nicholas Lyth bought two million shares at 0.19p each.
Capital for Colleagues (CFCP) has sold shares in Computer Application Services for £257,000 and it retains a 28.9% stake.
Marula Mining (MARU) issued 2.8 million shares to pay for its stakes in the Nyoriinyori and NyoriGreen graphite projects The total consideration is £350,000. This follows assay results that confirm high-grade and broad graphite mineralisation on each of the projects. Marula Mining is also about to start supplying columbite-tantalite and feldspar from the Blesberg mine in South Africa to Fujax UK.
Substrate AI (SAI) is forecasting 2024 revenues of $20.6m and pre-tax profit of $1m. This is due to organic growth.
Business assurance provider Adsure Services (ADS) has announced a maiden dividend of 0.49p/share and the shares go ex-dividend on 18 April. Trading has been strong in the second half.
KR1 (KR1) has announced a general meeting on 29 April to seek authority to acquire up to 14.9% of its share capital.
Hydrogen Future Industries (HFI) has raised £60,000 at 5p/share. This is on top of the £552,000 raised earlier in the year. Inqo Investments (INQO) raised £1.3m at 70p/share. Dermatological technology developer Incanthera (INC) raised £174,000 from the exercise of warrants at 10p. Crushmetric (CUSH) placed shares raising £54,000 at 12.5p each.
Valereum (VLRM) has appointed Stanford Capital Partners as broker. Spirits company Rogue Baron (SHNJ) has appointed New York-based MD Global Partners as joint broker.
Rikki Devlin has increased his stake in Oscillate (MUSH) from 3.04% to 4.21%. Michael Prior sold 645 shares in brewer Shepherd Neame (SHEP) at 695p each.
AIM
Self-storage operator Lok’nStore (LOK) has agreed a 1,100p/share cash bid from Belgium-based Shurgard Self Storage. That values the company at £370m. The share price has risen above the level of the bid.
Churchill China (CHH) still managed to increase its profit in 2023 even though the third quarter trading was weak, and revenues fell. Europe was the bright spot, with growth in ceramics sales to hospitality customers in the main markets. The UK was flat, and the rest of the world sales were lower. The dividend has been raised from 31.5p/share to 36p/share. Capital investment will improve efficiency and margins. Investec forecasts flat 2024 pre-tax profit of £10.8m and that assumes an upturn in the UK.
There were no additional negatives in the Bango (BGO) 2023 figures following its disappointing trading statement earlier in the year. In fact, the previously announced foreign exchange loss was not taken through the income statement. Revenues grew from $28.5m to $46.1m with a full contribution from DOCOMO. The reported loss jumped from $4.8m to $10.2m. The NewDeep joint venture is being wound down so that stop the losses from it, while the technology can be used in the core business. Net debt is $3.9m. Capex continues at a high level and there is an unused overdraft facility of £3m that can be used. First quarter revenues are up by one-fifth and cost savings will help Bango achieve the anticipated move into profit this year. Annualised recurring revenues are $11m.
CleanTech Lithium (CTL) chief executive Aldo Boitano has resigned, although he will be a consultant, and Steve Kesler has taken over on an interim basis. This follows the revelation he entered into a loan agreement with his shareholding in the company as security in August 2023, but this was not revealed at the time. He transferred his 9.4 million shares to a custodian account nominated by the lender. It is unclear if any of the shares have been sold.
Cosmetics supplier Warpaint London (W7L) says trading continues to outperform expectations. First quarter sales are 28% higher at £23.5m. This has been achieved by adding stores and broadening the range and there has been no price rise since early 2022. Margins have also improved. Shore believes that its current pre-tax profit forecast of £19.1m for 2024 is likely to be 10% too low. The broker will not upgrade its forecast until the 2023 results are published on 24 April.
Coal miner Bens Creek (BEN) is laying off workers at its mine in West Verginia, which will be operated on a care and maintenance basis. There are 44 employees being laid off and that is described as “a substantial number” of the employees at the mine. Management is in discussions with largest shareholder and offtake partner Avani Resources to provide further finance. Earlier in the week, the company said it had secured a one-off sale of 20,000 tons of coal to Avani Resources for $1.2m, of which $1m has been received in advance of delivery. This is lower quality coal, and the deal is separate to the offtake agreement. This did not prove enough to alleviate the poor financial position of the US-based metallurgical coal miner.
European Green Transition (EGT) is seeking to build up a portfolio of mining and processing projects that can help to progress the move to cleaner energy in Europe. There is potential for grant income from the EU for European critical minerals assets, as well as looking at non-dilutive ways of raising money for individual projects. A placing and offer raised £6.46m at 10p/share. Trading commenced on 8 April. The share price ended the week at 12p. Pro forma net assets are £7.29m, which includes cash of £5.95m. The Olserum rare earth element project in Sweden is the core asset.
Fulcrum Metals (FMET) has acquired the Sylvanite gold tailings project in Ontario. This is a former producing mine, and it is near to the previous tailings investment the Teck-Hughes gold tailings project. There are plans to create a tailings hub. The historic tailings resource estimate at Sylvanite is 67,051 ounces.
First quarter revenues at carbon brake technology developer Surface Transforms (SCE) were £3m, which was lower than target. However, production yields improved in March when revenues were £1.5m. Revised delivery schedules have been agreed. Cavendish has raised its 2024 forecast loss to £3m because of higher scrappage costs and there are likely to be higher working capital requirements. There should still be net cash at the end of 2024.
Drug developer e-therapeutics (ETX) is raising £28.9m at 15p/share from M and G and Richard Griffiths. It is also the latest company to decide to leave AIM. In the future, a Nasdaq listing may be possible.
Active Energy Group (AEG) has been reviewing its operations and how to secure funding. It believes it cannot raise the cash it requires to construct a CoalSwitch biomass fuel plant and commence production. A buyer is being sought for the CoalSwitch assets. If that happens, then the company would become a shell.
Oracle Power (ORCP) has secured an option to acquire 100% of the Blue Rock Valley copper and silver project in Western Australia. The option cost £30,000 in shares. If the option is exercised there will be 913.2 million shares issued – valued at £200,000.
Weak third quarter demand at castings company Chamberlin (CMH) hit profitability. Some new programmes were delayed, and other demand was lower than forecast. The renewable offshore energy sector remained strong. There has been some recovery in the fourth quarter and costs are being reduced. Prices increases have been made.
Harvest Minerals (HMI) has made a rare earth elements discovery at its Arapua fertiliser project in Brazil. Rock samples analysis shows rare earth elements and further work will be done to firm up the opportunity by assessing previous drilling. There has been a better start to the year for sales of fertiliser.
Contract research and infectious disease study services provider hVIVO (HVO) reported 2023 results broadly in line with the trading statement. The order book covers 90% of the forecast revenues of £62m, with a strong first half expected.
MAIN MARKET
Kitchenware retailer ProCook Group (PROC) reported fourth quarter trading showing 4.8% year-on-year growth in revenues to £13.2m with the decline in ecommerce revenues slowing. Like-for-like growth was 1.5% ahead. Full year revenues were flat at £62.6m, although retail revenues were 9% higher. Net debt is £700,000.
Critical Metals (CRTM) has issued £1.6m of convertible loan notes. This will help to finance the road to the Molulu copper cobalt project in the Democratic Republic of Congo and fund initial drilling to establish a JORC resource. Management is also near to securing an $11m loan guaranteed by the US government. This will fund construction of the mine and leave additional cash for investment in other projects. Production at Molulu could start before the end of this year. The plan is to produce 10,000 tonnes of copper each month.
Standard list shell Aura Renewable Acquisitions (ARA) had £661,000 in the bank at the end of 2023. It raised £1m in April 2022. The company is still seeking an acquisition in the renewable energy sector.
Narf Industries (NARF) has won a $500,000 cybersecurity contract with the US Department of Energy. This is part of a project to strengthen the resilience of energy infrastructure.
Andrew Hore
Quoted Micro 3 April 2023
AQUIS STOCK EXCHANGE
Aquis Stock Exchange owner Aquis Exchange (AQX) reported an increase in revenues from £17.2m to £19.9m in 2022. The pre-tax profit improved from £3.6m to £4.5m. that reflects the operational gearing. All three parts of the business were profitable. In the cash of the Aquis Stock Exchange this was probably the first time it has made a profit in any of its incarnations. This was on the back of a 48% increase in issuer fees because of the 22 new companies joining the market.
Wine maker Chapel Down Group (CDGP) increased underlying pre-tax profit by 22% to £1.7m in 2022. Singer expects this profit level to be maintained in 2023 before more than doubling to £4m by 2026. Net cash is £3.3m. NAV is 38p a share.
Arbuthnot Banking Group (ARBB) reported better than expected 2022 results. Pre-tax profit jumped from £4.6m to £20m and the dividend was raised by 11% to 42p a share. The loan book increased by 11% to £2.2bn. NAV is 1411p a share.
Good Energy (GOOD) 2022 revenues jumped from £146m to £248.7m as energy prices increased, while the energy supplier returned to profit. There was net cash of £19m at the end of 2022. The book value of Zap-Map is £13m. Management is seeking to expand its energy efficiency services operations.
Ananda Developments (ANA) published a medicinal cannabis research round-up. The sublingual spray shows promising results in diabetes type 2 patients. There has also been progress in explaining the mechanisms of action of CBD alleviating bladder pain syndrome. Shareholders voted for the acquisition of MRX Global.
A £289,000 interim cash outflow at Tectonic Gold (TTAU) was partly offset by the £101,000 of proceeds of the sale of shares in Kazera. There was net cash of £46,000 at the end of 2022.
Visum Technologies (VIS) made an interim loss of £457,000 on revenues of £120,000. The first US location for its theme park video technology was opened in November. Debt financing has been secured for rides and attractions. Existing sites in Europa Park and Linnanmaki will reopen in April. The financial position is expected to improve.
Valereum (VLRM) has sold shares in subsidiary Valereum Collections raising £70,500 at 625p a share. Valereum retains a 99.8% stake in the company, which will operate the group’s NFT programme. The Valereum share price dived 23.6% to 5.25p, which is a new low for the year.
KR1 (KR1) has invested $500,000 in Hydra Ventures, which supports and incubates decentralised autonomous organisations, in return for 5,000 HYDRA tokens. This is part of a $10m fundraising.
Capital for Colleagues (CFCP) had net assets of 77.78p a share at the end of February 2023. There are 13 companies in the investment portfolio. Castlefield Investment Partners has reduced its stake from 45.9% to 42.1%.
Invinity Energy Systems (IES) has made a sale of a 1.5MWh energy storage system to STS Group for a solar storage project in Hungary.
ChallengerX (CXS) had £92,000 in cash at the end of 2022, and a £250,000 subscription announced in February has yet to be received. The development of the company’s marketing platform requires more money.
RentGuarantor Holdings (RGG) has entered into an agreement with Vorensys for the use of the RentGuarantor services. Vorensys provides tenant referencing services.
CRUSHMETRIC Group Ltd (CUSH) has issued an unsecured convertible bond with a principal of S$250,000 (£151,000), which has a coupon of 10% and matures in February 2026.
SuperSeed Capital (WWW) boss Mads Jensen bought 3,000 shares at an average price of 83p each.
Shares in Asimilar (ASLR) fell ahead of the trading suspension on 3 April due to the accounts not being published in time.
AIM
Scottish gold producer Scotgold Resources (SGZ) has been hit by falling ore grades at the Cononish gold mine. The average gold grade in January was 5.65g/t. compared with an estimated grade of 7.35g/t. A different part of the mine is being developed and the production process is being changed. Shore has its forecasts under review because of concerns about the financial position of the company.
Daisy Group is making an agreed bid for ECSC (ECSC), which values the cyber security services provider at £5.4m. The bid is 54.02p for each share in cash. ECSC joined AIM at the end of 2016, when it raised £5m at 167p a share.
Cameroon-focused oil and gas company Bowleven (BLVN) had $2.45m in cash and investments at the end of 2022 and it is considering its options for raising more money. Bowleven will need cash to invest in the Etinde project, although there will not be progress there until Perenco completes the purchase of New Age’s operating interest. Bowleven’s interest in Etinde is estimated to be worth more than $150m.
Footwear retailer Unbound Group (UBG) has received a 10.5p a share potential offer from WoolOvers Group. There would also be a contingent value right that would give shareholders the proceeds of any insurance claim related to business interruptions due to Covid lockdowns. Unbound management says it would be likely to accept this offer. The recent fundraising was at 15p.
Building and architecture software supplier Eleco (ELCO) reported 2022 results that were the first 12 months of an 18-month period where the switch to a focus on SaaS is holding back revenues, which dipped 3% to £26.6m. Pre-tax profit was better than expected at £3.6m and net cash was £12.5m. The final dividend is 0.5p a share with a special dividend of 0.58p a share on top. This year’s pre-tax profit is expected to be £3.8m.
Sustainable fuels developer Velocys (VLS) has risen on the back of the latest UK government consultation paper on sustainable aviation fuel, which identifies the Fischer Tropsch process as part of the main technology. This can be supplied by Velocys, which has active projects in the UK and US.
Video games developer tinyBuild (TBLD) is investing in new games, so there has been a reduction in net cash. However, the strong back catalogue means that the business is resilient and not dependent on one game becoming a hit.
MAIN MARKET
Used car finance and property bridging loans provider S&U (SUS) reported full year results in line with expectations. In the year to January 2023, underlying pre-tax profit dipped from £47m to £41.4m, after higher bad debt provisions of £13.9m. Even so, the provision is still relatively low. Used car prices continue to rise, but at a lower rate than early last year. Net debt was £192.4m at the end of January 2023, compared with committed facilities of £210m. The dividend was raised to 133p a share.
Standard list shell Marwyn Acquisition Company II (MAC2) has appointed former Curtis Banks Group chief executive Will Self as the chief executive – pensions division. This year, AIM-quoted Curtis Banks was acquired for 350p a share in cash by Nucleus Financial Platforms, which valued the SIPP administrator at £242m. Will Self will lead the search for suitable financial services acquisitions. The strategy has been further refined to include themes including changing population demographics, intergenerational wealth transfer, social and family support and concentration of wealth.
Andrew Hore