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Quoted Micro 20 June 2022
AQUIS STOCK EXCHANGE
A fall in market capitalisation to below £10m means that Coinsilium Group Ltd (COIN) will move from the Apex segment to the Access segment on 20 June.
Visum Technologies, which operates an on-ride photo camera system used by theme parks and other leisure operators, plans to join Aquis on 30 June.
Revenues recovered from £32.2m to £96m at brewer Daniel Thwaites (THW) and it also returned to profit. A loss of £12.4m was turned into a pre-tax profit of £12.7m. The pension deficit has become a pension asset worth £10.1m. A final dividend of 2.2p a share is recommended. Staffing pubs remains a problem. Prices have been increased and are set to be raised again because of rising costs. There has been a disjointed recovery this year. but sales are growing year-on-year.
Valereum (VLRM) intends to launch a global open marketplace platform for Non-Fungible tokens (NFTs). It has also appointed Z/Yen Group Ltd as strategic adviser to review the business plans for the Gibraltar Stock Exchange and help prepare a prospectus for a listing for Valereum on a major stock exchange.
All Star Minerals (ASMO) is proceeding with investments in advanced battery metals projects. Due diligence has been completed on the Blesberg lithium and tantalum project in South Africa and the Nkombwa Hill tantalum, rare earths and phosphate project in Zambia. An initial 30% stake in Blesberg can be acquired by the issue of £337,500 of shares and £237,500 in cash. An initial 25% stake in Nkombwa Hill can be purchase for a staged cash investment of $150,000. A general meeting will be held to approve a name change to Marula Mining and a proposed 100-for-one share consolidation.
Silverwood Brands (SLWD) has been readmitted to Aquis following the acquisition of Balmonds Skincare.
Gunsynd (GUN) says ASX-listed investee company Pacific Nickel Mines Ltd has secured an offtake agreement for all the production of Kolosori, as well as a $22m pre-export finance facility, with Glencore.
Triad Endeavour Sports and Entertainment has signed up with the platform run by ChallengerX (CXS). Triad is an event promoter and talent manager involved in the Ultimate Fight League.
Lekoil Ltd (LEK) has successfully challenged the jurisdiction of the New Jersey court in litigation undertaken by its former chief executive. The Otakikpo field oil production was 4,230 bopd during May.
MiLOC Group (ML.P) is restructuring its business and focusing on the distribution of designer products with partner, CRUSHMETRIC Ltd.
Wishbone Gold (WSBN) says initial tests confirm copper is present in the drilling at the Halo copper gold project in northern Queensland. Drilling is underway at the Red Setter project in Western Australia.
The Care Quality Commission has granted registration to the diagnostic and screening services offered by Goodbody Health Inc (GDBY).
ProBiotix Health (PBX) has appointed Steen Andersen as chief executive. He has more than three decades of experience in the probiotics sector.
S-Ventures (SVEN) has capped future consideration for plant-based products supplier Pulsin at £400,000 and effectively lowered the total cost from £6.7m to £5.5m.
Chris Akers took a 4.96% stake in Recent Aquis admission Psych Capital (PSY). He has also increased his stake in Quetzal Capital (QTZ) from 20.1% to 21%.
Ananda Developments (ANA) has raised £38,000 from the exercise of warrants at 0.45p each.
AIM
IDOX (IDOX) increased revenues by 7% to £33.2m in the six months to April 2022 and recurring revenues account for three-fifths of the total. Public sector software sales were 10% ahead, while engineering information management revenues declined although they should recover in the second half. Net debt was reduced by 54% to £3.8m, which leaves plenty of funds to make acquisitions.
Tatton Asset Management (TAM) is growing assets under management at more than £100m a month and they reached £11.3bn at the end of March 2022. In the year to March 2022, group revenues improved from £23.4m to £29.4m, while pre-tax profit grew from £11.2m to £14.5m. The dividend is 13% higher at 12.5p a share. Higher mortgage activity meant that there was growth in the Paradigm division and, although new mortgage activity is lower, management believes that revenues can be maintained this year. Weaker financial markets could affect this year’s group performance, but the inflow of funds should offset that.
Xeros Technology Group (XSG) was the best AIM performer last week with a 46.2% gain to 47.5p. Germany-based washing machine pumps and drives manufacturer Hanning has signed a ten-year global licence to manufacture and sell the XFilter washing machine filter technology developed by Xeros. XFilter enables microfibres and microplastics released during washing to be captured and safely disposed of. Hanning is estimated to supply components for 8.5 million washing machines each year – around one-third of those made in Europe. The royalty is undisclosed, but it could be around £1 per filter.
Subsea cable protection services provider Tekmar Group (TGP) lost more than three-quarters of its value last week after it announced that it was seeking a strategic partner or bidder. Interim revenues fell from £13.9m to £13m and Tekmar remains loss making. The order book has improved from £9.7m to £20.1m over the six months to March 2022.
Shares in US-based video game publisher Devolver Digital Inc (LON: DEVO) more than halved after it lowered its revenues and profit guidance for this year. Revenues are expected to between $130m and $140m. Zeus has cut its earnings forecast from 7.2 cents a share to 6 cents a share.
The M&C Saatchi (SAA) board has withdrawn its recommendation of the bid by the marketing services company Next Fifteen Communications (NFC), the value of which has fallen due to the slump in the share price of the bidder.
Revolution Bars Group (RBG) trading is strong and a trading statement sparked a forecast upgrade by finnCap for the vodka bars operator. Refurbished bars have done particularly well, and two new bars should open by the end of June. Forecast pre-tax profit for 2021-22 has been raised from £500,000 to £2.7m.
Oil and gas explorer Rockhopper Exploration (RKH) announced a £5.75m placing and subscription at 7p a unit (one share and of a warrant exercisable at 9p a share). The Sea Lion project in the Falkland Islands is the main focus of Rockhopper.
Wynnstay Properties (WSP) is planning to obtain shareholder approval for buying back shares. NAV increased by 19% to 1090p a share in 2021-22. The total dividend was raised from 21p a share to 22.5p a share.
Actual Experience (ACT) says that due to a change in requirements a channel partner has terminated a contract that generated £200,000 out of group revenues of £1.74m in 2020-21.
Competitions organiser Best of the Best (BOTB) reported better than forecast figures and a 66.7p a share return of capital via a tender offer. Net cash was £10.8m at the end of April 2022 and there is a 6p a share final dividend on top of the tender offer. The total cash cost of these payments is £6.84m.
In the year to April 2022, the pre-tax profit fell from £14.1m, for what was an unusually strong year due to Covid restrictions, to £5.1m.
Hong Kong-based CCTV technology company UniVision Engineering Ltd (UVEL) has received notice of the termination of a contract with MTR Corporation for the replacement of CCTV systems on Hong Kong railway lines.
MAIN MARKET
Castings (CGS) generated a 29.5% increase in full year revenues to £148.6m. Profit and margins are still improving and there is more to go for as business levels get back to the pre-Covid position. Zeus forecasts a further improvement in underlying pre-tax profit from £12.1m to £15.5m in 2022-23.
Structural steel supplier Severfield (SFR) continues to win new business and higher steel prices are being passed onto clients. In the year to March 2022, revenues increased from £363.3m to £403.6m, while pre-tax profit improved £24.3m to £27.1m. The final dividend is increased from 1.8p a share to 1.9p a share, taking the total to the year to 3.1p a share. Severfield has a record order book worth £486m.
Palace Capital (PCA) has increased its NAV to 390p a share and the loan-to-value declined from 42% to 28% following property sales at a premium to book value. The total dividend is 13.3p a share.
Graft Polymer (UK) (GPL) says that MGC Pharmaceuticals (MXC) is using its IP for the nano delivery system in the pre-clinical research study for the use of cannabinoids to treat Glioblastoma multiforme cells (a form of brain cancer).
Contango Holdings (CGO) has agreed to acquire 10,000 tonnes of washed coking coal from Lubu each month. The current market price is $120/tonne. Up to $10m of earnings could be generated from this deal each year.
Funeral directors Dignity (DTY) says FCA has confirmed it is intending to authorise Dignity Funerals LTD as a regulated entity under the new regulations for pre-paid funeral plans.
Andrew Hore
Quoted Micro 8 November 2021
AQUIS STOCK EXCHANGE
There are three companies on the shortlist of the AQSE company of the year award at the Small Cap Awards 2021. They are medical IT provider DXS International (DXSP), oncology and dermatology treatments developer Incanthera (INC) and Kent-based wine maker Chapel Down Group (CDGP).
Brewer Daniel Thwaites (THW) was hampered by lockdowns in the six months to September 2021, but they were not as bad as in the first half of the previous year. Revenues increased from £221.8m to £47.8m, while the business returned to profit with £7.5m before tax. Net debt was £61.4m at the end of September 2021. Government support has come to an end and there are inflationary pressures, only partly offset by beer duty changes.
Quantum Exponential (QBIT) is a shell focused on quantum technology and predominantly companies in NATO countries. There are no other quoted companies offering a potential investment in this sector. The plan is to put together a portfolio of quantum technology company investments, which are most likely to be at the seed or early stage. Quantum computing uses the laws of quantum physics to increase the speed of computation. Nearly £2.5m was raised after expenses at 5p and the share price ended the week at 6.625p (6.25p/7p). The NAV is 1.65p a share, so the current share price is more than four times that level. Helium Special Situations has taken a 4.57% stake.
Kashei Holdings (KASH) intends to build up a portfolio of investments in cryptocurrencies and blockchain. The portfolio will include digital assets, listed investments, venture capital opportunities and staking digital assets into liquidity smart contracts and perform staking services. There should be around £3.7m available for investment, although 10% of that will be required for working capital, following the placing at 16p a share. The current mid-price is 20.25p (19.5p/21p). Pro forma NAV is 13.1p a share.
Samarkand Group (SMK) is acquiring Napiers the Herbalists, which it has been trading with for three years. The initial consideration is £1.7m in cash with deferred consideration of £100,000. There is also contingent consideration of up to $700,000. In the year to March 2021, revenues were £1m and EBITDA was £240,000.
All Star Minerals (ASMO) signed exclusive heads of terms with a company with gemstone assets and another company with diamond assets. It has terminated the gemstone deal and extended the potential diamond deal. The potential acquisition has white and coloured diamonds and an off-take and financing agreement. Ian Harebottle, the interim chief executive of All Star Minerals, owns 25% of the diamond company.
Vulcan Industries (VULC) has signed heads of terms to acquire Aftech, which is a sheet metal fabrication company that fits in with existing subsidiaries. Aftech has net assets of £780,000 and net debt of £90,000. Full year revenues are estimated to be £1m with EBITDA of £175,000. Vulcan will pay £1.55m in shares and this may represent 21.5% of the enlarged share capital.
TruSpine Technologies (TSP) has submitted a request to the FDA to consider the Cervi-LOK system as a breakthrough device technology. That would enable the device to generate higher margins.
Coinsilium Group Ltd (COIN) had crypto assets of $4.22m at the beginning of November 2021. That is more than double the value at the end of June.
Rutherford Health (RUTH) increased interim revenues by 36% to £4.85m in the six months to August 2021. September revenues were more than £1m. More oncologists have been trained to use the company’s technology. Rutherford Health will continue to lose money.
Pioneer Media Inc (PNER) has acquired CryptoPunk 8869 for $433,700.
Asia Wealth Group Holdings (AWLP) increased interim revenues from $894,000 to $940,000, while pre-tax profit improved from $117,000 to $123,000. There was $1.36m in the bank at the end of August 2021.
AIM
Online electrical retailer Marks Electrical (MRK) specialises in kitchen appliance, audio visual products and small electrical appliances and has been growing its share of the market. Since 2014, Marks Electrical has increased its market share from 0.41% to 1.22%. A placing raised £2.63m after expenses at 110p each and shareholders sold shares worth £25m. The company’s warehouse has enough capacity to cope with revenues of £180m, more than treble last year’s level. The shares ended the first day at 110.5p.
Devolver Digital Inc (DEVO) is the latest video games publisher to join AIM. The Delaware-based company’s original focus has been indie games produced by third parties, but more recently it has been acquiring companies with their own IP. The cash raised by the company in the placing will be used to acquire strategic partners and finance the development of third party and in-house games. Nearly £30m was raised after expenses and the price has risen from the placing price of 157p to 187.5p. The overall video games market is forecast to grow from $177.8bn to $218.7bn in 2024.
Escape rooms operator Escape Hunt (ESC) is acquiring Boom Battle Bars, which offers competitive socialising activities along with drinks and food. The total cost is £17.38m, with £9.88m in cash and deferred consideration of up to 25 million shares. The shares are subject to an earn-out based on revenues number of sites open. Escape Hunt raised £15m at 30p a share and could raise up to £2.2m from a one-for-12 open offer at the same share price. The acceptance date is 19 November. The enlarged group will be renamed XP Factory.
Self-storage sites operator Lok’nStore (LOK) had a much more significant than forecast uplift in its NAV at the end of July 2021. It increased from 555.5p a share to 731.1p a share. This year the dividend has been raised by 2p a share to 15p a share. The additional sites in progress will add 38% to space over the next few years.
Bleepa communications technology developer Feedback (FDBK) is raising £10m in a placing at 0.7p a share to take advantage of opportunities and finally build up revenues. There is also a one-for-15 open offer to existing shareholders that can raise up to £500,000 more. The CareLocker technology that is being piloted in Sussex could be a game changer. Combined with Bleepa it can store patient records individually in the cloud instead of in one place where it is easier to hack.
Gensource Potash (GSP) was already quoted on the Toronto Venture Exchange before joining AIM, and its focus is the Tugaske potash project in Canada. Gensource owns 67% of the vehicle that owns the project and has arranged finance to cover the C$352m cost of building the mine. The Tugaske project’s proven and probable mineral reserve is 14.1 million tonnes and there is a likely minimum expected mine life of more than 56 years, based on annual production of 250,000 tonnes of saleable muriate of potash. The share price ended the first day at 27.5p.
Remote tracking and monitoring technology provider Starcom (STAR) is changing its name to t42 IoT Tracking Solutions and rebranding its products. There will also be an eight-for-one share consolidation.
MAIN MARKET
In the six months to August 2021, Braemar Shipping Services (BMS) revenues grew by 11% to £47.4m, while pre-tax profit improved from £4.47m to £4.92m. The order book is 28% ahead at $55.5m. Net debt has fallen to £14.7m. There is a 2p a share interim dividend.
IT services provider Triad Group (TRD) reported a decline in interim revenues, but pre-tax profit jumped from £1,000 to £670,000. There is a 2p a share interim dividend. There is cash of £5.34m. high utilisation levels are continuing.
Andrew Hore