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Quoted Micro 24 June 2024
AQUIS STOCK EXCHANGE
Brewer Daniel Thwaites (THW) increased full year revenues by 6% to £115.5m. The main growth was in the pubs and inns division. Operating profit before property disposals improved 4% to £11.3m. The interim dividend was raised from 0.75p/share to 0.85p/share. Net debt increased from £66.7m to £70.8m at the end of March 2024. The pension surplus rose to £34.9m.
Adnams (ADB) is outperforming the market in terms of beer sales and volumes. Funding plans are still being assessed.
Marula Mining (MARU) is seeking admission to the Growth Enterprise Market Segment of the Nairobi Securities Exchange in July. This will provide access to institutional investors in Kenya. Initial spodumene sales of 500 tonnes have been made from the Blesberg site. The export sales process will complete in the next four weeks. Minimum sales target of 10,000 tonnes should be achieved for 2024. Other buy-products could be sold later in the year.
Cooks Coffee (COOK) says the Esquires store sales increased by 24% in the first ten weeks of the financial year. The rate of growth is faster in the UK than in Ireland, although like-for like growth was faster in Ireland.
At the end of 2023, Evrima (EVA) had net assets of £1.02m, down from £1.77m at the end of 2022. Evrima is ready to capitalise on natural resources opportunities.
Tap Global Group (TAP) has launched its US service via its joint venture with Zero Hash. This operates a B2B2C crypto and stablecoin infrastructure platform and the US users will get access to a core suite of services to trade bitcoin and other digital assets.
EDX Medical (EDX) is launching comprehensive hereditary germline cancer testing products and services. These will predict if family members are more at risk of contracting cancer. The first test identifies mutations in 70 genes associated with cancers.
Invinity Energy Systems (IES) has secured the sale of a 4.4MWh vanadium flow battery to PowerFlex in the US and it will help to underpin the 2024 forecast revenues of £37.3m. The deal is for California where there is significant demand for storage batteries.
The Mustang Energy acquisition of Cykel AI (LON: CYK) should complete on 26 June.
Health food company Essentially Group (ESSN) has received approval for the listing of $25m of 12% fixed rate notes 2027 on the Vienna MTF. This cash will fund capital investment.
EPE Special Opportunities (EO.P) had net assets of 354.89p/share.
Skin treatments developer Incanthera (INC) has completed the recent fundraising at 15p/share. Unicorn Asset Management has taken a 11.4% stake.
TruSpine Technologies (TSP) chairman Geoffrey Miller has increased his stake from 8.24% to 9.22%. Another shareholder transferred 1.5 million shares at 1.5p each.
All Things Considered (ATC) has appointed Allenby as corporate adviser and broker.
AIM
Medical technology company AOTI Inc (LON: AOTI) has developed products that help to heal wounds by focusing oxygen on chronic wounds. These can include diabetic foot ulcers and pressure ulcers. It joined AIM last Tuesday and raised £19.5m at 132p/share, but £6m of that went on expenses. There were also shares sold by existing investors. The share price ended at 136p. Revenues are growing at an annual rate of 38% and reached $43.9m in 2023.
Market research company YouGov (YOU) says sales bookings have been lower than expected since the interims were reported. Full year revenues will be approximately £324m-£327m and underlying operating profit will be £41m-£44m. There is reduced demand for fast-turnaround research. There will also be a change in revenue recognition for consumer panel services that delays some revenue into next year.
Longboat Energy (LBE) is selling its assets in Norway for $2.5m and the assumption of $8,5m of debt by the acquirer. This should save $1.25m in costs in 2025. The cash will be invested in the main asset, which is the 52.5% owned Kertang gas prospect, offshore Sarawak. A farm out process will be conducted in the second half of 2024. An updated competent person report is due at the end of the month. Chair elect James Menzies has bought one million shares at 9.75p each.
Full year results from Pennant International (PEN) achieved the expected recovery in 2023 pre-tax profit to £1.3m. Higher software income has helped margins to improve. The Gen 3.0 software launch this year has already led to a major contract gain. There is strong activity in the defence sector, but the timing of business is uncertain so a dip in pre-tax profit to £1.2m is forecast for this year.
There is a rival to the Checkit (CKT) indicative offer for Crimson Tide (TIDE), which has been rejected despite an increase in the bid from seven shares to nine shares for each Crimson Tide share. Former AIM company Ideagen has offered 312p/share for Crimson Tide, which is being considered.
Training services provider Mind Gym (MIND) reported an 18% decline in revenues and a slump into loss in the year to March 2024 and revenues are expected to continue to decline this year. Clients are putting off spending on developing the skills of employees. There was a loss of £12.1m after exceptional costs of £8.9m. There was a £6.6m write down on digital assets, restructuring costs of £1.8m and a £500,000 impairment of a US office lease. At the end of March 2024, cash was £1.4m. Liberum expects the underlying loss will be reduced from £3.3m to £1.7m in 2024-25. The new chief executive is updating strategy through further productisation of services.
Kibo Energy (KIBO) has simplified its restructuring plan. It is raising £340,000 at 0.01p each and creditors will convert £274,000 at the same share price. This replaces the £500,000 placing at 0.015p/share. Cobus van der Merwe will become an executive director and Clive Roberts a non-exec. Louis Coetzee is leaving the board.
Concurrent Technologies (CNC) has won its largest single contract worth $4.5m. The company will supply multiple standard plug-in cards to a major US defence and aerospace contractor. The lifetime value of the contract could be $40m. The income should begin this year, but the full benefit will come through in the future.
Crossword Cybersecurity (CCS) has signed a partnership to jointly market its Rizikon supply chain cyber platform. The deal is with a UK subsidiary of a global aerospace and security company. The focus is sub-sectors within the UK critical national infrastructure market. There is potential to generate several million pounds over the next few years.
Active Energy Group (AEG) dived because it intends to leave AIM and go into liquidation. There is no suitable offer for the CoalSwitch assets, but some discussions continue. Even so, shareholders are unlikely to get anything from the liquidation. Trading in the shares will be suspended on 1 July because the 2023 accounts will not be ready. Assuming the general meeting agrees to the proposals the AIM quotation will end on 23 July.
R&Q Insurance Holdings (RQIH) says that it intends to accept the alternative proposal from the buyer of Accredited. This means that the company will go into liquidation.
Geological information publisher Getech (GTC) reported a rise in loss from £3.1m to £3.6m in 2024. Getech has refocused on its core business because it does not have the financial strength to develop hydrogen products. The first four months trading in 2024 has improved by 17%, but the cash outflow needs to be stemmed. There was £400,000 in cash at the end of 2023, supplemented by a property sale in January raising £650,000. There is another property valued at £850,000. Cavendish believes Getech could break even this year.
Seed Innovations (SEED) has £3.9m in cash following the special dividend payment. The main investments are in Juvenescence, Avextra and Clean Food Group, all of which are biotech or cannabis related businesses. There are seven investments with valuations with two written down to nil.
MAIN MARKET
Chamberlin’s financial failure has provided an acquisition opportunity for Castings (CGS) which has paid £400,000 for the assets and inventory of Russell Ductile Castings. That is well below the previous book value. The foundry is based in Scunthorpe, where there is a 25-year lease, and it makes castings from 10kg to 7,000kg in iron and 10kg to 1,000kg in steel. Management believes they can maintain the customers, which diversify the business into new sectors making it less dependent on heavy trucks.
Advanced Energy Industries Inc has decided not to bid for power controllers supplier XP Power (XPP).
Andrew Hore
Quoted Micro 10 May 2024
AQUIS STOCK EXCHANGE
Time to ACT is planning to join the Aquis Stock Exchange later this month and it has launched a fundraising ahead of the flotation. The flotation will take place even if there is no money raised. Time to ACT plans to develop a group of engineering-based energy transition businesses. Middlesborough-based Time to ACT has two subsidiaries. Diffusion Alloys is a long-established diffusion coating business. The technology provides an intermetallic layer that protects metal components at high temperatures. GreenSpur is a much newer business that is developing direct drive generator technology for use in wind power that does not require rare earths for magnets. The Winterflood Retail Access Platform is being used to raise up to £1m. The issue price and closing date have yet to be announced. Investors have to apply for shares via a broker. The minimum subscription is £100.
Cykel AI (CYK) has agreed a bid from standard listed Mustang Energy (MUST). The offer is 1.911 Mustang Energy shares for each Cykel AI share. Both companies’ shares have been suspended since 17 January. The Mustang Energy suspension price was 30.6p, but the bid is based on a much lower share price valuing the company, which has net liabilities, at £1m. That values the bid at 9.37p/share and Cykel AI is valued at £19.2m. Cykel AI is developing artificial intelligence products.
Newbury Racecourse (NYR) increased 2023 revenues by 9% to £19m and reported pre-tax profit improved from £130,000 to £720,000. However, there was a £700,000 exceptional gain relating to the release of a provision included. Cost increases reduced underlying profit. Raceday attendances fell from 141,000 to 130,000. The nursery has increased capacity by 18%. Shaun Hinds will become chief executive on 3 June.
Silverwood Brands (SLWD) executive director acquired 100,000 shares at 20p following the restoration of trading at the beginning of May. The share price recovered by 48.5% to 24.5p, but it is still not back to its suspension price.
Marula Mining (MARU) has appointed a new mine manager at the Larisoro manganese mine in Kenya. Bernard Kiprotich has five years of mining experience in Kenya. Marula Mining is investing in the established Larisoro manganese mining operation by securing a 60% commercial interest with an option to increase it to 70%. There are three shallow open pits. The purchase price is £300,000 satisfied by the issue of 2.4 million shares. Marula Mining will provide investment of $1.5m for equipment to enable production to be increased.
Essentially Group (ESSN) has completed the acquisition of Best Latin Foodstuff Trading for £1.945m in shares at 52.5p each. Catalina Onate, who founded the food importer, has been appointed as an executive director.
Shareholders passed resolutions at the AGM of Supernova Digital Assets (SOL), including a cancelation of the share premium account and authority to buy back shares.
TruSpine Technologies (LON: TSP) chief executive Laurence Strauss has resigned. He was appointed in April 2023.
RentGuarantor Holdings (RGG) raised £35,000 at 274p/share.
AIM
Metallurgical coal company Bens Creek (BEN) says a further court hearing related to the three US operations that are in Chapter 11 bankruptcy protection will be held on 6 June. The court has accepted the proposed Avanti debtor in possession financing and $2m has been drawn down. This provides enough cash until the end of May. The final terms of the facility are being negotiated.
Genedrive (GDR) has raised £2.1m in a placing at 1.5p. This follow’s yesterday evening’s announcement of a fundraising, where the point of care pharmacogenetic testing company wanted to raise £2.5m via a placing. There is also a REX retail offer for up to £3.5m, which closes on 17 May, and a one-for-one open offer that could raise up to £2.1m. If the total amount raised is not at least £6m the fundraising will not go ahead, so a further £3.9m is required. The company’s tests are being commercialised and a direct to consumer strategy pursued in the UK, while there will be distributors in other countries. There will also be investment to improve manufacturing efficiency and to fund regulatory approvals.
Plant Health Care (PHC) generated a 72% increase in revenues to $4.3m in the first four months of 2024. There is cash of $2.3m. The loss could be reduced from $3m to less than $1m this year. A profit is possible in 2025.
Third quarter driver management systems units produced by Seeing Machines (SEE) have gone into 313,662 vehicles, which is 51% higher than the previous quarter. This is more than treble the number in the same period two years and 80% higher than one year previously with more contracts set to contribute. Monitored connections of the Guardian fleet units were 5% higher on the quarter at 59,706.
Push-to-talk and workplace management technology developer Mobile Tornado (MBT) has won a contract through its regional partner to supply technology for a mobile network in the Middle East and Africa, which has more than 50 million customers. Management believes that there should be increasing sales momentum following the deal.
Healthcare services provider Totally (TLY) reassured the market with its latest trading statement. Full year EBITDA was £2.3m, down from £6.9m, and net debt was £800,000 at the end of March 2024. Revenues fell 22% to £106m because of the loss of a contract. Cost reductions and efficiency improvements have offset the tough market. Annualised cost savings of £3.5m are expected.
Bushveld Minerals (BMN) has agreed the conditional disposal of Vanchem to Southern Point Resources Fund 1 for up to $40.6m. The initial consideration is $20.6m. This requires shareholder approval. Southern Point Resources is increasing the interim working capital facility it is providing that is secured on production at Vanchem. This, and a $9m working capital facility, will be offset against the initial consideration and be used to pay creditors. This will leave a cash payment to Bushveld Minerals of $3.5m when the disposal happens. The deferred consideration is based on 25% of distributable free cash flow with a minimum of $1.25m paid for each quarter of the three-year period.
Mothercare (MTC) reported a 13% decline in global system sales last year due to poor trading in the Middle East. Destocking is a problem. There was better trading in the UK and Indonesia. The retailer will improve EBITDA, but Cavendish reduced its forecast EBIDA by 9% to £7m, compared to £6.7m in 2022-23. Refinancing talks continue and a conclusion should reduce the interest bill.
Battery technology developer Ilika (IKA) is raising up to £3.4m at 28p/share to spend on the Goliath solid-state battery. This cash should last at least 12 months. A placing and subscription raised £1.7m and a one-for-26 open offer could raise up to £1.7m more. The open offer closes on 28 May. There will be £750,000 earmarked for the development of the Goliath battery and this supplements the grant assistance obtained. A further £750,000 will be used to increase testing capacity to 0.75MWh/a and for upgrading dry room facilities. Additional cash raised will support further capital expenditure and working capital for Goliath and the Stereax miniature battery.
MAIN MARKET
Packaging manufacturer and distributor Macfarlane Group (MACF) disappointed with its AGM trading statement and lost the majority of the share price gain this year. Prices are falling, but this reflects lower costs, so margins are being maintained. First quarter sales were 9.5% lower, which does reflect a reduction in volumes. There should be improvement in the second half.
Oxford Cannabinoid Technologies (LON: OCTP) plans to cancel the standard listing. Management believes that stockmarket uncertainty is making it difficult to raise cash at an acceptable share price. The development of the drug pipeline will continue. The cancelation date is 6 June.
Andrew Hore
Quoted Micro 22 January 2024
AQUIS STOCK EXCHANGE
Standard listed Mustang Energy (MUST) has entered into non-binding heads of terms for the acquisition of Cykel AI (CYK). The offer is 1.844 Mustang Energy shares for each Cykel AI share. The Mustang Energy share price is 30.6p, having risen from 25.5p prior to the announcement of the deal. Cykel AI is developing artificial intelligence software, which will be marketed via a Software as a Service (SaaS) model, and it joined Aquis on 25 October 2023 at 3p/share. Trading in Cykel AI shares has been suspended at 9.25p, valuing the company at £19m. Mustang Energy previously tried to do a deal with Bushveld Minerals (BMN), involving one of its subsidiaries but that fell through. A prospectus for the acquisitions is expected in the second quarter of 2024.
Fuel additives developer SulNOx Group (SNOX) generated third quarter revenues of £98,400, up from £53,500 in the second quarter. Nine months revenues were doubled. There is £2.68m in the bank. Fourth quarter invoiced sales are already £64,500.
Global Connectivity (GCON) says 15%-owned investee company Rural Broadband Holdings has increased its stake in UK broadband provider Voneus from 32% to 36% as part of a £25m financing.
Cooks Coffee Company (COOK) has increased the number of coffee shops and revenues in the 12 months to December 2023 were 16% higher at £26.9m. Like-for-like UK sales were 6% ahead and in Ireland it was 6.8%. December was a record month and there was positive operating cash flow. The year-end is being changed to March.
Electric motors and drivetrains developer Equipmake Holdings (EQIP) has gained a contract for the next stage of its electric motor development with aerospace company H55 for electric aircraft. There will be £315,000 of work deliverable by the end of May 2024 with a further £400,000 after that. Aircraft production could commence in 2025. Dr Nicholas Moelders has been appointed as chief operating officer. Interim revenues rose from £1.05m to £2.07m, while the loss increased from £2.79m to £2.96m because of higher admin expenses.
Hydrogen production systems developer Hydrogen Future Industries (HFI) has commenced its first mining sector feasibility study in the US. The idea is to use wastewater from tailings as a way of generating hydrogen. Management is discussing a potential deal with a partner in Australia for the deployment of renewable energy microgrids.
Marula Mining (MARU) subsidiaries have been issued seven new graphite mining licences for Takela and NyoriGreen projects in Tanzania. The licences last seven years. Marula Mining owns 75% of the licence owners and it is paying $25,000/licence, as well as issuing 1.05 million shares at 13.5p each as additional consideration for the investments. Marula Mining has approved a $6.38m exploration budget for its projects in Tanzania.
Igraine (KING) investee company Fixit Medical, which has developed the Cingo drainage catheter fixation device, expects to produce the first production prototypes in the first quarter of 2024. Fixit Medical is preparing a technical dossier for the ISO 13485 application.
Looking Glass Laboratories (NFTX) has decided to withdraw from the Aquis Stock Exchange, having joined in November 2022.
WeCap (WCAP) has invested a further £900,000 in WeShop convertibles, taking the total investment to £3.75m. The conversion price is 200p/share. WeCap has also invested in £4m of convertibles with a conversion price of 300p/share. Including an investment in a company owning shares, WeCap owns 15.3% of the diluted share capital of WeShop. This is valued at £24.6m at the latest fundraising price.
A purchase of 4,250 shares in Investment Evolution Credit (IEC) at 50p each led to a 125% jump in the share price to 45p. There were four other trades during the week, and they were at 24p/share and 25p/share. The online consumer loans company joined Aquis on 14 December 2023 when it raised £508,000 at 4.5p/share. There is no reason for the share price to have risen so far other than the limited liquidity of the shares.
Valereum (VLRM) has restarted talks with Vinay Gupta of Mattereum and they are exploring potential opportunities.
Chief executive Dr Michael Hudson has acquired 50,000 EDX Medical Group (EDX) shares at an average price of 8.89p each, taking his stake to 6.77%.
Michael Edwards has bought one million shares in Aqru (AQRU) at 0.12p each.
AIM
Tissue converter Accrol (ACRL) has acquired wet wipes and tumble dryer sheet manufacturer Severn Delta for around three times EBITDA. There is a factory in Somerset with four production lines. Revenues are £5m and this will take Accrol into new markets.
Scientific instruments manufacturer Judges Scientific (JDG) generated organic sales growth of 15% in 2023. Profit should be in line with expectations. Liberum expects pre-tax profit to rise from £28.3m to £31.4m. Increased stocks have held back cash generation. Net debt is forecast to be £44.9m.
Paper and technical fibres maker James Cropper (CRPR) has been hit by weak trading in the paper business and slower growth in sales to hydrogen companies in advanced materials. As a highly operationally geared business this has led to a slashing of current year pre-tax profit forecast from £5.9m to £500,000. Employee numbers have been reduced in the paper division, completing the restructuring. Higher capacity utilisation will improve the profit contribution.
Trading in scientific instruments developer Microsaic Systems (MSYS) has recommenced after a 625-for-one share consolidation and a placing raising £2.1m at 1.25p. The consolidated share price was 4.0625p and it fell to 1.4p in initial dealings and stayed at that level, which is a 65.5% decline. Cash will be used to acquire assets from DeepVerge. Full year results for 2022 and interims for 2023 were published to enable the shares to recommence trading after suspension.
Growth at payments technology company Bango (BGO) was held back by contract delays. Moving into profit for the full year was always going to be a tough and Bango has fallen well short. Revenues grew 62%, which is 6% below forecasts. Bango did move into profit in the second half, but it was not enough to make the full year profitable, and the loss is likely to be around $3.7m. That is due to the high margin, lower sales, increased costs and negative foreign exchange movements. Bango should still move into profit in 2024 and start to generate cash.
Hercules Site Services (HERC) did well in the year to September 2023 with underlying pre-tax profit better than expected at £900,000. HS2 work is building up. The construction workers provider is opening its own training centre. That will help the business in the longer-term, but initial costs will hold back profit this year.
XP Factory (XPF) says Boom Bars generated like-for-like growth of 29% and Escape Hunt grew 17% in the past 12 months. This is much faster growth than the market. Group revenues were 95% ahead at £44.5m and this underpins the current forecast for the 15 months to March 2024. XP Factory is on course to move into profit in 2024-25.
Third quarter trading was in line with expectations at Naked Wines (WINE) with the decline in constant currency sales of 10% lower than in the previous quarter. This was the peak trading time. Quarterly operating profit is likely to be £3m-£5m. Annual costs have been reduced by £7m. Net cash is £3m and the business should become cash generative by 2025.
Zeus has cut its 2024 and 2025 forecasts for Big Technologies (LON: BIG) after the monitoring technology company’s trading statement. The 2023 figures were in line with expectations, but Big Technologies expects its Colombia prison service contract to end in the first half of this year. This year’s revenues are expected to fall to £51m and the operating profit estimate is reduced from £31,7m to £23.9m, down from £28.9m in 2023. The 2025 operating profit is expected to be £27m.
A trading statement from utility infrastructure platform IQGeo (IQG) shows 2023 revenues 6% ahead of forecast and a much higher cash figure of £11m. Annualised recurring revenues are 50% higher at £21.1m. This has sparked an upgrade of 2024 estimates by Cavendish with revenues of £49.8m and pre-tax profit of £5.5m, up from £3.4m in 2023.
Strategic Minerals (SML) says that the Cobre magnetite operation has regained a major client that has ordered 30,000 tons. There could be a second contract of a similar size. This follows a halving of sales volumes in 2023.
There were positive drilling results from Thor Energy (THR). The drilling at the Wedding Bell and Radium Mountain uranium prospects in Colorado intersected high-grade uranium. Grades were up to 0.69%. This follows positive results from the Groundhog prospect. The assay results should be received in February. There are plans to drill other prospects in the region. The uranium price has moved above $100/lb.
Prospex Energy (PXEN) says that the Podere Malar-1 well in the Selva field is producing gas at the expected levels. Prospex Energy owns a 37% working interest in the Selva Malvezzi production concessions. Operator Po Valley Energy is determining the optimal flow rate for the longer-term. There are plans for further drilling on the concession.
MAIN MARKET
Foams manufacturer Zotefoams (ZTF) had a strong end to 2023 with revenues in line and pre-tax profit slightly better than forecast at £13.1m – a small increase on 2022. The foam business did particularly well and should continue to as new Nike shoe designs are launched. The ReZorce recyclable carton business remains loss-making and trials with customers will happen in the next few months. Net debt is £31.9m and capital investment will lead this to increase in 2024.
Gulf Marine Services (GMS) has updated guidance for 2023. The offshore energy vessels provider says underlying EBITDA will be around $86m, which is one-fifth higher than in 2022. The 2024 EBITDA range is $87m to $95m.
Andrew Hore
Alan Green covers Cykel AI #CYK & Cadence Minerals #KDNC on this week’s Stockbox Research Talks
Alan Green covers Cykel AI #CYK & Cadence Minerals #KDNC on this week’s Stockbox Research Talks
Quoted Micro 30 October 2023
AQUIS STOCK EXCHANGE
Natural language processing company Cykel AI (CYK) joined the Aquis Stock Exchange on Wednesday. It raised £1m at 3p/share and the shares ended the week at 10.25p. There was initially significant buying of the shares, but trading levels dwindled over the week so there was only one sale of 100,000 shares at 10p each on Friday.
Healthcare provider One Health Group (OHGR) generated 12% higher revenues of more than £11m in the first half. There was £3.6m in the bank at the end of September 2023. There is additional surgical capacity, and two new contracts were awarded in the first half. A new surgical hub could open in 2025. The second half is normally stronger.
Valereum (VLRM) says that US funding it secured in August is no longer available. The talks with the Gibraltar Financial Services Commission concerning the purchase of the Gibraltar Stock Exchange are dragging on. Richard Poulden, Jack Sun, Patrick Young and Alan Gravett have resigned from the board. James Formolli, who has links with Gibraltar, has been appointed chairman. Patrick Lyle Young has rejoined the board as chief executive. These changes may make it easier to gain regulatory clearance for the acquisition.
Gunsynd (GUN) investee company Omega Oil and Gas estimates maiden gross 2C contingent resources of 1.73 trillion cubic feet of gas in its area in Queensland’s Taroom Trough. The next phase of exploration includes a horizontal well. The $21m raised in August will finance this next stage of exploration.
Vulcan Industries (VULC) has sold 49.9% of Lithium battery storage project developer Forepower Lincoln (250) Ltd for £1.5m, which is payable on the sale of the project or on the fifth anniversary of the agreement. The buyer will loan £500,000 and this will be offset against the consideration when it is due. This will be drawn down as the project progresses.
Ananda Developments (ANA) made an interim loss of £990,000. There was cash of nearly £12,000 at the end of July 2023. Since the end of the period, operations at the cannabis cultivation facility were paused to reduce cash burn.
Cadence Minerals (KDNC) reported a reduction in loss from £5.05m to £1.95m. Net cash was £580,000 at the end of June 2023, while NAV was £19.5m.
Cooks Coffee (COOK) has appointed RSM as administrator to its Triple Two coffee shop franchise business. There are currently eleven stores, which are trading poorly. The Esquires chain is trading well and will not be affected.
SulNOx Group (SNOX) says that fuel savings of more than 5% have been verified for seagoing vessels with a two-stroke engine when fuel conditioner SulNOxEco. This will help to increase interest from shipping companies.
Arbuthnot Banking Group (ARBB) non-exec Jayne Almond has acquired 3,000 shares at 895p each and her husband bought 5,617 shares at 890p each.
AIM
After the market closed on Friday evening, SafeStyle (SFE) said that it intends to appoint administrators to three subsidiaries. Potential buyers of the replacement windows operations have withdrawn their interest and management already revealed it would not be able to raise additional finance. This means there is unlikely to be anything left for shareholders.
Fire Angel Safety Technology (FA.) has agreed a 7.4p/share bid from fire safety products manufacturer Siterwell Electronics, which already owns 17.5%. The share price has not been at that level for six months. The offer values FireAngel Safety Technology at £27.7m.
Mining investment company Starvest (SVE) plans to cancel the AIM quotation and commence a voluntary liquidation. This would involve the distribution of stakes in Greatland Gold (GGP) and Ariana Resources (AAU) to shareholders, while the other stakes will be sold. The share price improved by 77.8% to 8p, valuing Starvest at £4.7m. This is still a discount to the March 2023 NAV of £6.75m, although for one the Ariana Resources share price has fallen since then. Shareholder approval will be sought on 21 November and the AIM cancelation could happen on 29 November.
Northern Bear (NTBR) intends to launch a tender offer to buy up to five million shares (26.7% of share capital) at 62p each. The building services provider will ask for authorisation at a general meeting on 15 November and the tender will be funded by the company’s cash and an additional £1m of debt. This will be earnings enhancing. Some shareholders say they will not tender shares, which means that other shareholders can tender at least 35.6% of their holding. Shares have to be tendered by 22 November. Jeff Baryshnik will retire as chairman after the general meeting. Trading is ahead of the previous year and a trading update will be published in the next few days.
Angling Direct (ANG) improved UK sales and European online sales recovered. The fishing tackle retailer has plans to open its first store in Europe. Interim revenues rose 11% to £43.3m, while pre-tax profit recovered from £1.1m to £1.7m. Like-for-like store sales were 4.9% ahead. Net cash reached £17.6m at the end of July 2023, helped by a reduction in working capital. August and September sales were 14% higher than the same time last year, although the comparative was a weak period. Market share is still growing.
Argentex (AGFX) has appointed Jim Ormonde as interim chief executive. He replaces previous chief executive Harry Adams, who is the second largest shareholder with 12.3%. A strategic review has identified areas of the payments sector to focus on. Jim Ormonde was boss of Cardsave, which was bought by WorldPay, and he has been a consultant to Argentex. Current trading is in line with expectations even though activity levels have been lower.
Security products supplier Thruvision (THRU) has raised £3.2m at 23.5p/share. The money has been invested by Pentland Capital, which has taken a 10% stake, and existing shareholders. The cash will be invested in sales and marketing. Earlier this month, Thruvision revealed that it had not received the expected order from US Customs and Border Protection due to budgetary problems. Forecast revenues for 2023-24 were slashed by two-fifths to £8.1m – £3.5m has been generated in the first half. A full year loss of £3.2m is expected.
Bradda Head Lithium (BHL) interims show a $6.24m cash outflow leaving $1.5m in the bank at the end of August 2023. Since the year end, an updated mineral resource showing contained metal of more than one million tonnes triggered a Lithium Royalty Company payment of $2.5m to Bradda Head Lithium, which was received in October.
Fourth quarter trading at The Mission Group (TMG) has got tougher with clients spending less. This follows a relatively upbeat trading statement at the time of the interims. The cost base was raised in anticipation of additional demand and cost cutting will not be done until next year. Canaccord Genuity slashed its pre-tax profit forecast from £7.9m to £3.1m and net debt is set to rise to £24m, which contravenes debt limits. The interim dividend is cancelled. Interest will be covered just over two times.
Sustainable fuels technology developer Velocys (VLS) has launched its new technology facility in Ohio. Velocys contributed $2m of the $10m capital investment with the rest invested by a subsidiary of The Pagura Company. The equipment will be fully up and running by mid-2024. There should be enough capacity for projected orders stretching out to 2028.
Piling contractor Van Elle (VANL) has Rock and Alluvium for an initial £1.8m and agreed a new five-year trading deal with Galliford Try, which could add more than £10m/year to revenues. This increases the group’s presence in the residential market in Greater London.
MAIN MARKET
BATM Advanced Communications (BVC) investee company ADOR Diagnostics has secured funding of $7.5m and BATM is providing $3.5m of this cash. This is payable in two tranches, one immediately and the other after the achievement of milestones over the next six months.
First Tin (1SN) has published a definitive feasibility study (DFS) update for the Taronga project in Australia. The DFS should be completed in the first quarter of next year. It is already clear that the resource is significantly larger than previously estimated due to additional mineralisation and lower cut-off grade and that means processing capacity will need to be larger. The additional capital investment should improve recovery rates.
Cash shell Mining, Minerals and Metals (MMM) has entered into heads of terms with Georgina Energy, which is exploring for helium, hydrogen and hydrocarbon the Amadeus and Officer Basins in Australia. The transaction to acquire Narnia Mauritius Gas will not go ahead until the renewal of the company’s licences.
Intuitive Investments Group (IIG), which recently moved from AIM to the Specialist Fund Segment, is issuing 1.91 billion shares to acquire Hui10, a Chinese company that owns 33% of Beijing Huishi Dehua IT, which has a digital payment platform for the Chinese lottery and 60% of Lucky World, which has developed a platform that enables China’s lottery shops to access a wider range of consumer goods. The businesses are losing money. Hui10 will not be consolidated in the company’s figures. Investments Group currently has 86.9 million shares currently in issue and, at 11p/share, it is valued at £9.6m. A ten-for-one share consolidation is planned. There is already permission to issue more shares. Chief executive Rob Naylor bought 100,000 shares at 9.5p each.
BSF Enterprise (BSFA) has formed a separate subsidiary called Kerato to develop lab-grown corneas. This company can focus on advancing clinical trials.
Andrew Hore