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Quoted Micro 11 November 2024
AQUIS STOCK EXCHANGE
Cross border e-commerce technology company Samarkand Group (SMK) reported a dip in revenues of 22% to £6.3m, with owned brands increasing their contribution by 14% to £4.1m. The loss has been reduced even before the £1.08m gain on the disposal of a brand. Net debt is £2m. The switch to focusing on owned brands will continue.
Wind-based hydrogen production technology developer Hydrogen Future Industries (HFI) says turbine testing has been delayed because of a fault in the control unit. Replacement parts should arrive by the end of the month. Schneider Electric is providing software to help analyse data for the feasibility study at Whitehall in Montana. Concept testing of the electrolyser continues, and efficiency is more than 97%. Neil Ritson has become executive chairman.
Unicorn Asset Management has taken a 5.42% stake in Equipmake (EQIP).
Pitch Pit has changed its name to Meme Vault (MEME) and will become an investment company focused on cryptocurrency and Web3 technologies. A new subsidiary will be set up in UAE. Chandila Fernando and Judith Hough will no longer be joining the board. The planned £500,000 placing is not taking place, but there will be an alternative fundraising.
DXS International (DXSP) chairman Bob Sutcliffe bought 35,000 shares at 1.3p each and he owns 1.8% of the healthcare IT developer. Earlier in the week, Hybridan published updated research and said that “management is focused on cashflow control until new NHS sales resume, when there could be significant revenue growth”. It argues that this is not reflected in the current share price.
Mendell Helium (MDH) has an option to acquire M3 Helium, which has acquired 85% interests in three further wells on the western side of the Hugoton gas field in Kansas. Two of the wells are in production and the third could be used as a water disposal well, which will reduce costs. No consideration is payable. The wells are breaking even.
Fenikso (FNK) has doubled its convertible loan to AIM-quoted Coro Energy (CORO) to £500,000. Tom Richardson, chairman of Fenikso is also a director of Coro Energy.
Ormonde Mining (ORM) investee company TRU Precious Metals, where it owns 36.3%, has announced results of copper exploration at the Golden Rose project in Newfoundland. Copper grades were up to 3.7% and some samples included zinc.
Jack Keyes has decided not to join the board of Oscillate (MUSH) as technical director. He is still undertaking hydrogen exploration work for the company.
ProBiotix Health (PBX) company secretary Mark Collingbourne has acquired 80,000 shares at 5.5p each.
AIM
Fabless silicon chip designer and manufacturer EnSilica (ENSI) slipped into loss in the year to May 2024, but there are already contracts in place for a bounce back to profit this year. EnSilica generates cash from operations, but it spent £6.1m on capitalised development. Chip supply generated flat revenues of £2.9m out of group revenues of £25.3m, up from £20.5m in the previous year. Chip supply revenues should start to build up from this year and that will sharply boost profitability. It can take two years or more for chip supply to begin and then production is built up to its peak, so there is built in growth for many years. Singer forecasts a 2024-25 pre-tax profit of £2.7m, doubling to £5.5m next year.
Membrane free electrolyser developer Clean Power Hydrogen (CPH2) has entered into a licence agreement with Lisheen H2 Energy Park, trading as Hidrigin, for the rights to manufacture MFE220 electrolyser units for its own use up to 2GW. This could be worth multi-million Euros. Hidrigin owns the 122MW Lisheen solar park and has funding for other developments. The licence fee will be payable in stages. Separately, there is a sale of a 1MW MFE220 electrolyser unit.
This week there was good news from professional services firm DSW Capital (DSW) with its trading statement following the acquisition earlier this week of DR Solicitors for £6.1m in cash and shares, which will reduce dependence on M&A. DR Solicitors has a client base of doctors, consultants and primary care providers. The latest annual pre-tax profit was £1.2m. The deal should be hugely earnings enhancing. Trading has been gradually improving in the first half. First half profit will be slightly lower at £100,000, but the full year pre-tax profit is expected to recover from £500,000 to £1.4m. A further jump to £2.5m is forecast for 2025-26. The interims will be published on 27 November.
Shell company Selkirk Group (SELK) raised £7.5m at 2.4p/share ahead of joining AIM this morning. The focus is undervalued consumer, technology and digital media businesses. Executive chair Iain McDonald says: “We have chosen to IPO on AIM because, despite the prevailing negative narrative, AIM is still a very attractive market for small, fast-growing companies”.
Electronics and battery products supplier Solid State (SOLI) had a tough first half but it says trading is in line with expectations in the first half and the second half should be better. Interim pre-tax profit has slumped from £7.3m to £2.5m. The components market has returned to normal, and first half revenues declined. Political uncertainty has hampered defence system orders. Last year’s defence revenues were exceptionally strong due to early deliveries, and a decline was expected. That is why full year underlying pre-tax profit is set to fall from £15.6m to £10.1m.
Hummingbird Resources (HUM) has announced a debt restructuring and possible bid. Delays in ramping up production at Kouroussa have strained the balance sheet and $30m of debt repayments have been deferred. Net debt was $155m at the end of September 2024, while trade and other payables were $152m. Nioko Resources, which owns 41% of the gold miner, is proposing a partial debt-to-equity conversion at 2.6777p/share, which would take its stake to 71.8%, and potential bid and cancelation of the AIM quotation. Geoff Eyre has been appointed interim chief executive.
Feedback (FDBK) raised £6.1m at 20p/share, which was a massive discount to the previous market price, which fell to 19.5p. This includes £530,000 raised via a WRAP retail offer of up to £1m. The cash will finance the rolling out of the Bleepa medical imaging communications product and take advantage of a collaboration with a provider of primary care IT services that will use Bleepa to streamline referrals between primary care, Community Diagnostic Centres and community care. The nominal value of shares will be reduced to 1p.
Futura Medical (FUM) has completed two proof of concept studies on new products for the treatment of sexual dysfunction in men and women. Eroxon Intense is a range extension for the existing Eroxon topical product for erectile dysfunction. This provides a stronger sensation. A preferred formulation will be tested next year and regulatory approval is expected by the end of 2025. WSD4000 is a topical treatment for women that treats symptoms such as lack of desire and lubrication. The next stage is a home user study, and results are expected in the first quarter of 2025. A pre-submission meeting with the FDA has happened and there will be another to help design a clinical study. There are discussions with potential partners.
Broadband services provider Bigblu Broadband (BBB) admits that it is in discussions with alternative investment manager Salter Brothers on a possible sale of the SkyMesh subsidiary. The transaction is subject to final terms and financing. This would be the latest asset disposal for Bigblu Broadband.
CleanTech Lithium (CTL) says that the pre-feasibility study for the Laguna Verde project has been delayed until the first quarter of 2025. Additional engineering work is required due to the location of the carbonation plant in Copiapo. An option for onsite renewable power will also be included. Lithium carbonate should be produced from the pilot plant in November.
Digital media publisher Digitalbox (DBOX) has added to its portfolio of digital media brands by acquiring the entertainment business of GRV Media. The assets are CelebrityTidbit.com, RealityTidbit.com and TheFocus.news. They generated revenues of less than £800,000 and they fit with Entertainment Daily and The Tab.
Synergia Energy (SYN) has raised £632,500 at 0.05p/share. There has also been the conversion of £296,000 of loans and £83,000 of fees into shares. The shares come with a warrant exercisable at 0.1p each. This provides funding for the Medway Hub Camelot carbon capture and storage joint venture with Harbour Energy. Synergia Energy wants to farm out up to 25% of the project. There should be a significant increase in production at the Cambay PSC, where a farm out of a 50% interest to Selan Exploration has been completed, from the second quarter of next year.
Kodal Minerals (KOD) joint venture partner Hainan Mining says that the $15m owed to the Mali government should be paid by Kodal Minerals and not the joint venture that owns the Bougouni lithium project. Kodal Minerals disagrees.
Optimer binders developer Aptamer Group (APTA) continues to win new contracts and it has added contracts worth up to £471,000 in the third quarter. This is work from a number of clients and many are repeat customers. Some of the existing customers are reaching a point where they are considering long-term licences. Booked revenues have reached £1.2m for 2024-25. The potential pipeline has increased to £4m.
MAIN MARKET
Cybersecurity company Narf Industries (NARF) says 2024-25 revenues should be at least $5m and they could rise to $8m in the following year. In the 15 months to March 2024, revenues were $7.6m. The dip in revenues is due to a switch in focus to commercial sales rather than the dependence on government funded development, as well as delays in US funding. Thereby building recurring revenues.
Foams manufacturer Zotefoams (ZTF) revenues are accelerating with third quarter growth of 54% and year to date improvement of 23%. Footwear sales are fuelling this growth, helped by the Olympics boosting Nike demand, but other parts of the business are also growing. Operational efficiency is increasing margins.
Andrew Hore
Quoted Micro 8 July 2024
AQUIS STOCK EXCHANGE
Sheffield-based AI software company IntelliAM AI (INT) joined Aquis on 3 July. It raised £5.08m at 94p/share. The acquisition of 53 Degrees North was completed after admission. This adds a range of asset care consulting and management strategies for manufacturers to the group. Customers include food manufacturers, consumer and industrial businesses.
Voyager Life (VOY) says M3 Helium’ is drilling a vertical well at the Hugoton North Play project in Kansas. Voyager Life has an option to take a stake in M3 Helium.
Coinsilium (COIN) has been signed a collaboration agreement with Web3b developer Lifeflow Inc, which will have access to $1m of dedicated seed funding. Investee company Greengage is collaborating with global crypto currency exchange Coinbase. Coinsilium is purchasing $75,000 of future tokens in the early backers round of the Otomato Web3 automation protocol. There is an option for $150,150 future tokens.
Inqo Investments (INQO) has invested in Pabidi Lodge Budongo Ltd in Uganda. This lodge and ten luxury tents are expected to be open by the end of 2024.
Tap Global Group (TAP) has secured a commercial agreement with Tap N Go for the launch of the XTP cashback programme. XTP is a token for trading via Tap Global exchange services.
Eight Capital Partners (ECP) was hit by a £14.6m unrealised loss on its investments in 2023. That is predominantly down to a reduction in the value of a bond issue by 1AF2, which is due for repayment on 22 July. NAV has declined from £25.3m to £12.8m. Net debt is £862,000. Even so, the share price improved.
Valereum (VLRM) has completed the £2m raising from chairman James Formolli, while a warrant exercise has generated £9,458. Shares were issued at 0.36p each and on top of that he received 15 million GATE tokens. The cash will finance the growth of the business and development of the GATE token.
Shares in Watchstone Group (WTG) went ex-dividend on 4 July. It is returning 8p/share in cash.
Chris Potts reduced his stake in Shortwave Life Sciences (LON: PSY) from 15.2% to 11.65%. Jonathan Bellis has a 3.4% stake in Hot Rock Investments (HRIP).
Trading in Marula Mining (MARU) shares was suspended because the 2023 accounts have not been published.
AIM
Workflow efficiency software supplier ActiveOps (AOM) increased annualised recurring revenues by 14% to £25.1m by the end of March 2024 as existing clients continued to spend more on top of the new contract gains. There was cash of £17.6m at the year end. There was a jump in pre-tax profit to £1.9m, but further investment in the business means it could fall to £1.4m this year. The growth in recurring revenues is the most important thing, though.
Semiconductors designer CML Microsystems (CML) had a tough year to March 2024 and this year will also be difficult, but design wins mean that the longer-term outlook is more positive. Revenues grew from £20.6m to £22.9m, although that was due to a near-six month contribution from last year’s acquisition MwT. Underlying pre-tax profit dipped from £3.6m to £3.1m. Destocking by customers and a change in product mix hit profit. A further dip in profit is expected this year, but new contracts and a broader product range, including new digital radio technology DRM, will improve revenues in two to three years. The balance sheet remains strong with net cash of £18.2m.
Professional services network operator DSW Capital (DSW) reported full year revenues fell by one-fifth to £2.4m and pre-tax profit declined from £1.4m to £500,000. The total dividend was cut from 3.8p/share to 2p/share. That is not covered by earnings, but management eventually intends to return to paying up to 70% of distributable earnings in dividends. Net cash is £2.3m.
Bluejay Mining (JAY) says there are indications of potential helium and hydrogen accumulations at the Outokumpu licences in Finland. There is up to 5.6% helium and 46% hydrogen, plus other gases. Seismic data has been acquired to identify high potential areas. Helium and hydrogen is the new focus of the company. Non-exec Roderick McIllree bought six million shares at 0.35p each.
Helium One Global (HE1) is making progress at the Rukwa project. An extended well test will start later this month. The required equipment is being delivered. A feasibility study is underway.
Pipehawk (PIP) shares slumped 75.3% to 2.1p because of financial difficulties at QM Systems, which had moved to larger premises. Two large orders have not been obtained. QM Systems is likely to be put into administration. QM Systems accounted for 65% of group revenues last year and lost £970,000. The rest of the group should be able to continue as a going concern, although continuing activities made a loss in the year to June 2023.
Martin Andersson has stepped down as executive chairman Chaarat Gold Holdings (CGH) as the company is in restructuring discussions with Labro Investors, which he is associated with. He remains a non-exec. David Mackenzie is acting chief executive. The company has enough cash for the next few weeks but cannot fund the $1.2m repayment due on the Labro convertible loan in September. The restructuring discussions relate to this.
Linear generator technology developer Libertine Holdings (LIB) has entered into a conditional subscription agreement with equity investors based in India and Dubai. This could raise £2m at 1.5p/share. This would involve the issue of shares equivalent to 49% of the enlarged share capital. This would provide funds for working capital until June 2025, but Libertine is not likely to breakeven in that time frame.
Mercia Asset Management (MERC) assets under management have reached £1.8bn, helped by a new mandate from the British Business Bank. EBITDA was £5.6m in 2023-24 and the strategy is to double that figure in three years. NAV improved to 43p/share, including £47m in cash, despite the 2p/share write down of the investment in engineering firm Impression Technologies.
Retailer Shoe Zone (SHOE) has been hit by higher freight costs and weaker spring trading, which has led to a reduction in pre-tax profit estimates for the year to October 2024 from £13.8m to £10m. Last year’s pre-tax profit was £16.5m and revenues are likely to be 1% lower. A total dividend of 6.5p/share is forecast.
Fulcrum Metals (FMET) has exercised its option to acquire the Chariot-Neely Lake, South Pendleton and Snowbird uranium projects in Canada. Fulcrum Metals intends to sell these and the Fontaine Lake project to Vancouver-based Terra Balcanica for C$300,000 in cash and C$3.1m of shares when it has completed agreed exploration spending over the next four years. Fulcrum Metals will also retain a 1% net smelter return royalty.
MAIN MARKET
BATM Advanced Communications (BVC) has signed a strategic partnership with a global technology group to market its cyber encryption technology to the civil commercial markets around the world. The partner will pay at least $2.1m over two years to develop a combined hardware and software product off.
Filtration technology supplier Porvair (PRV) had a tough first half with destocking holding back progress. In the six months to May 2024, revenues grew from £90.6m to £94.6m, but higher interest charges meant that underlying pre-tax profit fell from £11.8m to £11.5m. This includes an initial contribution from mist elimination filters producer European Filter Corporation (EFC) of £1m to operating profit and it accounted for the growth in revenues of the aerospace and industrial division. The interim dividend was raised by 5% to 2.1p/share and the full year forecast is 6.3p/share. Net cash was £4.1m after the payment for EFC.
Andrew Hore
Quoted Micro 19 February 2024
AQUIS STOCK EXCHANGE
Vehicle electrification technology developer Equipmake (EQIP) has raised £4m at 6p/share and a further £110,000 from a retail offer. This will fund research and development for the international market and finding opportunities in the US. There is also grant funding of up to £4.57m. The order book is valued at £13.1m and mainly relates to the bus market. The cash will last at least 12 months.
Coinsilium (COIN) says that the SalitaFinance AI-driven platform, where it has a 6.7% stake, has received investment from a top ten global infrastructure bank. Another investee company, crypto friendly payments company Greengage Global has secured an agreement with a new regulated partner and this will enable the earlier launch of Greengage’s US dollar currency accounts along with forex and SWIFT payments services for clients.
Investment Evolution Credit (IEC) has appointed Axis Capital Markets as corporate broker to help to raise up to £100m via the previously announced bond offering. The share price rose by 50% on the week to 60p. The December 2023 admission price was 4.5p.
RentGuarantor (RGG) has entered a three-year marketing deal with student letting company University Living. The rent guarantee service will be promoted to residential tenants. This will broaden access to the market.
Mortgage Chat (MCAI) has raised £105,000 at 0.05p each. The strategy is moving towards the development of an artificial intelligence platform called Mortgage Chat connecting borrowers and lenders.
Brewer Adnams (ADB) has asked advisers to explore options for funding growth plans.
Marula Mining (MARU) has published a shareholder circular to gain approval for a subscription by AUO Commercial Brokerage. The first subscription will raise £3.75m at 3.75p/share with further subscriptions potentially raising £4.78m at 10p/share. The general meeting is on 8 March.
BWA Group (BWAP) has come to a settlement with St-Georges Eco-Mining Corp, which will convert some loan notes into 146.2 million shares and cancel £1.42m of convertible notes. Connected parties will also be encouraged to rerun up to £1.8m of convertible notes.
TruSpine Technologies (TSP) has entered into a £50,000 loan note agreement with Martin Armstrong, a former chairman. This can be converted into shares at 2.5p each.
Lord Nicholas Monson has increased his stake in Lift Global Ventures (LFT) from 4.96% to 5.33%.
AIM
Katoro Gold (KAT) has raised £750,000 at 0.1p/share, along with warrants exercisable at 0.2p/share that could raise up to £1.5m, and it is planning board changes. Executive chairman Louis Coetzee is stepping down. Outstanding board fees of £91,000 have been reduced to £63,600. A new strategy will involve maximising value from existing interests and seeking new opportunities in critical metals, including uranium. Paul Johnson, who has previously run Power Metal Resources and Metal Tiger has been appointed strategic consultant. The company plans to change its name to Katoro Global Resources.
Good Energy (GOOD) is building on its energy efficiency services business through the acquisition of Maidstone-based JPS Renewable Energy, which is a solar and storage installation business. The initial consideration is £7m in cash and shares with deferred consideration of up to £6.75m over two years. The vendors placed 842,000 of the 1.32 million shares issued at 250p each. JPS generated revenues of £12.4m and pre-tax profit of £600,000 in the year to April 2023 and pre-tax profit could increase to £1.3m this year.
Neometals (NMT) says a review of the Spargos project in Western Australia indicates low potential for lithium-bearing pegmatites. Sampling did not produce any significant results. There will be field mapping to investigate two potassium anomalies and a strategic review of the project.
Gattaca (GATC) is still finding the permanent staffing market difficult, and first half net fee income is expected to decline 16% to £18.9m. This has led to downgrades for full year net fee income, but cost cutting has meant that the full year pre-tax profit forecast is maintained at £3m. The figures will be second half weighted.
Harvest Minerals (HMI) received fertiliser orders for 34,880 tonnes, of which 28,707 tonnes were invoiced in 2023. There have been 1,250 tonnes invoiced so far in 2024. Sales guidance is 70,000 tonnes for 2024. Cash was $630,000 at the end of 2023. Cost are being reduced.
Trading in Artemis Resources (ARV) shares has resumed on ASX. Trading was halted on 8 February although it continued on AIM. Artemis Resources published an update on the West Pilbara project exploration. This shows potential sub vertical orientation of pegmatites at Kobe and Osborne. The first drill hole potentially stopped short of the Osborne target. A drilling programme to test Osborne is planned for March to test near surface lithium rich zones.
M&A activity remains weak at professional services network operator DSW Capital (DSW) and that will hit this year’s profit. There appeared to be an improving trend, but January was poor and that hit network revenues. February is also set to be disappointing. The other activities are trading well. The 2023-24 pre-tax profit will be between £600,000 and £700,000. There was cash of £2.7m at the end of January 2024.
Baron Oil (BOIL) has raised £3m at 0.05p/share, while the retail offer generated £260,000. This will fund drilling preparations for the Chuditch-2 appraisal well south of Timor-Leste, which is planned for the fourth quarter. Shell discovered the Chuditch-1 gas field in the Chuditch production sharing contract in 1998. Timor-Leste authorities recently approved the farm-up agreement with TIMOR GAP Chuditch Unipessoal relating to the production sharing contract. Baron Oil’s subsidiary will retain 60% of the production sharing contract and the partner, which has increased its interest from 25% to 40%, will be responsible for 20% of all costs, including the Chuditch-2 appraisal well.
Beowulf Mining (BEM) is raising cash to invest in Kallak iron ore project in northern Sweden and the graphite anode materials plant in Finland. There will be a rights issue and a PrimaryBid retail offer in the UK raising up to £7.5m in total. A formal decision on the fundraising and pricing will be made on 7 March. A capital reorganisation will reduce the par value of the shares from 1p to 0.1p. The cash will be spent on the Kallak pre-feasibility study and environmental studies, which will enable the application for an environmental permit.
Bushveld Minerals (BMN) has received a $4m payment from Southern Point Resources, which will be repaid when the $12.5m subscription is finally received. This takes the interest free loans to $6m, which have been paid to a South African subsidiary. Southern Point Resources says that the subscription will be paid by 28 February. The financial position of the company is being managed so that vanadium production, which has restarted, can continue until the rest of the cash is received.
Coal miner MC Mining (MCM) advises shareholders not to accept the A$0.16/ share bid from a company controlled by the majority shareholders. One condition is the acceptance by 50.1% of the shares not owned by the bidder.
Crossword Cybersecurity (CCS) has entered a partnership agreement with IT distributor TD SYNNEX, which will sell Crossword’s Trillion threat intelligence platform.
MAIN MARKET
Pendragon has completed the sale of its motor distributor business and will focus on its motor dealer software. The name has changed to Pinewood Technologies (PINE).
Better contract news from data integrity and banking integration software provider Gresham Technologies (GHT), which has secured a $1.5m contract for its Claretti software. The customer is described as a cash management and retail digital services provider. The deal covers the US and is for five years.
HeiQ (HEIQ) is acquiring a manufacturing facility in Portugal to commercialise the AeoniQ synthetic filament yarns technology. Commercial production could start by 2026. Capacity will be 3,000 tons.
HeiQ wants to raise £2.44m. A placing raised £685,000 at 8.7p/share and there is a retail offer of up to £75,000 closing on 22 February. The rest of the cash will come from an issue of non-interest bearing convertible loan notes with a conversion price of 8.7p/share. Revenues were $41m in 2023, but EBITDA will be lower than expected. Net debt is $2m. The year end is being changed from December to June 2024.
XP Power (XPP) says that weak demand meant that 2023 figures will be well below expectations. The 2024 results will be second half weighted. Net debt was £112.7m at the end of 2023.
Carclo (CAR) is closing its Tucson facility and manufacturing will be moved to Pennsylvania.
BSF Enterprise (BSFA) is setting up a separate subsidiary to develop a cultivated leather business.
Dispensa (DISP), originally known as Zamaz, is calling a general meeting on 14 March to gain shareholder approval for the delisting from the standard list.
Andrew Hore
Quoted Micro 20 December 2021
AQUIS STOCK EXCHANGE
The ecommerce technology and brands retailer Samarkand Group (SMK) reported lower interim revenues because of a one-off PPE contract in the previous period. There was a small underlying dip in revenues to £7.17m as the wholesaling business is being run down to a less important level of operations. The two core parts of the business grew revenues. The company’s brands generated £2.25m and the NOMAD ecommerce technology business generated just over £3m. Samarkand remains loss-making. Net cash was £8.8m at the end of September 2021, but Samarkand subsequently acquired Napiers the Herbalists for an initial consideration of £1.7m in cash. Revenues continue to grow at an accelerating rate. The current focus is organic growth through adding new clients.
Rural Broadband Solutions (RBBS) is acquiring Cadence Networks for £80,000 in cash and the issue of two million shares at a notional price of 7p each. Cadence is an internet service provider with revenues of £145,000. It has three data centres in London that Rural Broadband Solutions can use to build its national data network to replace third party providers. This will help to improve gross margins. There are 2,733 premises connected to the fixed wireless network of Rural Broadband Solutions. A placing is raising £1.675m at 3p a share. Directors are subscribing for 18.3 million shares. Investec Bank will advise on infrastructure funding.
VSA Capital (VSA) reported interim revenues of £1.16m and a loss of £235,000. This reflects the delay in the flotation of Tungsten West, which subsequently generated revenues of more than £1m.
Walls and Futures REIT (WAFR) has sold its residential property in Southfields for £662,500, which is a 2% premium to its valuation. This is the final private rental property in the portfolio.
Love Hemp Group (LIFE) generated revenues of £4.33m in the year to June 2021 and revenues from major retailers are increasing. Plans to move to the Main Market are progressing.
Apollon Formularies (APOL) has completed its high-volume processing laboratory. Processing capacity has increased to 20 litres of medicinal cannabis oil a day.
BWA Group (BWAP) says that the independent expert review of the two 90%-owned mineral sands projects in Cameroon supports the potential for significant mineralisation. BWA intends to drill 2,500 metres at Nkoteng and 1,500 metres in Dehane in the first quarter of 2022. An initial mineral resource estimate is expected by next summer.
Igraine (KING) says 2%-owned investee company Excalibur Medicines has completed the ARCADIA phase II clinical trial to assess a potential treatment for diabetics with Covid-19. The trial shows that AZD1656 reduced mortality in patients in combination with other medication. There are no safety concerns
S-Ventures (SVEN) has raised £3m at 70p a share and it will spend the cash on growing its food and wellness businesses. Clean Invest Africa (CIA) has raised £102,000 at 0.5p a share. IamFire (IAF) has raised £4.75m at 3p a share. EPE Special Opportunities (ESO) has raised £20m from a zero dividend preference share offer. EPE has spent £1.1m and £175,000 buying back ordinary shares at 330p each and 350p each respectively.
Rutherford Health (RUTH) has arranged an £8m loan at an annual interest rate of 15%. Schroder UK Public Private Trust and other shareholders will provide the loan in two tranches of £4m. There is also a convertible loan of £2m from LF Equity Income Fund – the conversion price is 176p. This will provide the working capital needed and a longer-term financing will be arranged next year. The cash is required because the cash for the £12.35m placing with SDI Holding has not been received. The acquisition of Proton Partners International has also not been completed.
Western Selection (WESP) has reduced its stake in AIM-quoted Northbridge Industrial Services (NBI) from 11.35% to 9.65%. The sale, at 159.7p a share, raised £791,000. That is a gain on the balance sheet value of £216,000. Harwood Capital has increased its stake from 15.1% to 16.9%, including an unchanged 13.4% held by Gresham House Strategic (GHS).
New chief executive Andrew Carter has bought 66,079 shares in Chapel Down Group (CDGP) at 45.4p each. He owns 99,699 shares. Voyager Life (VOY) chief executive Nick Tulloch bought 537,776 shares at 18p each and chairman Eric Boyle acquired 519,112 shares at the same price. They own 14.3% and 9.1% respectively. Burns Singh-Tennent has bought one million shares in Oscillate (MUSH) at 2p each. He owns 5.22%.
AIM
NWF (NWF) had a successful first half even though feed volumes were disappointing and group figures will be much better than the previous year. Actions taken to retain drivers have helped the fuels and food distribution divisions. Fuels has done better than expected with a short-term boost from fuel shortages, which NWF did not suffer from, in the autumn. The food distribution business is benefiting from increased capacity. Net debt has fallen providing further scope for fuels acquisitions.
Totally (TLY) is acquiring Energy Fitness Professionals (Energy Fit-Pro), which provides workplace fitness services. The total cost will be up to £1.3m and Totally still has plenty of cash to finance further acquisitions. In the year to March 2021, Energy Fit-Pro made a pre-tax profit of £445,000 on revenues of £984,000. There will be cross-selling opportunities.
Digital transformation services provider Made Tech Group (MTEC) grew interim revenues by 131% to £11.7m thanks to the focus on the public sector. Hiring continues ahead of anticipated growth. Short-term gross margin was reduced due to the increased use of contractors.
Multi-utility connections and electric vehicle charging installer Fulcrum Utility Services Ltd (FCRM) is raising £19.5m at 12p a share and it could raise up to £6m more via an open offer. The placing and open offer price is below the underlying NAV of 15.4p a share, although more than 50% of that figure relates to intangible assets. The order book was £80.9m at the end of September 2021.The cash will be used to invest in the smart energy infrastructure sector as meter asset provider (MAP).
Acquisitions and tax adviser K3 Capital (K3C) expects to report a 30% increase in interim revenues to £30m through a combination of like-for-like growth and acquisitions. The diversification into additional services provides a stronger base for the group.
Hurricane Energy (HUR) could make a $54m write-off on its activities in the Greater Warwick area (GWA) of the North Sea because it does not want to fund the drilling obligations under the licence.
Tungsten Corporation (TUNG) founder Edmund Truell and his associates are backing a possible bid of 40p a share by Kofax Inc. California-based Kofax is an automated software provider that simplifies the handling of data. The board says that the bid significantly undervalues the digital invoicing business. Cloud-based automation technology provider Jaggaer LLC has decided not to make a rival bid but venture capital firms Accel-KKR, could still make an offer.
Deepmatter Group (DMTR) is seeking more cash, but it will take until early next year to secure additional investment for the digital chemistry data company. At the end of June 2021, Deepmatter had £1.8m in cash and that has fallen to £400,000. Deepmatter is loss-making.
Printed circuit technology developer Trackwise Designs (TWD) is raising £6m at 80p a share, which is a significant discount to the market price at the time of the announcement. An open offer could raise up to £1m. Capital equipment deliveries were delayed, although the EV contract will start next year.
Sovereign Metals Ltd (SVML) was listed on the ASX and obtained a secondary quotation on AIM. A scoping study for the Kasiya rutile project confirms that it is a significant deposit. The NPV8 after tax is $861m with a mine life of 25 years. The capital cost is estimated at $332m.
Youth-focused digital media company LBG Media (LBG) joined AIM in order to build a cash pile on the balance sheet so that organic and acquisitive growth can be achieved. It raised £30m at 175p each, leaving pro forma net cash of £27.1m. The share price ended the first day at 200p and the week at 193.45p.
DSW Capital (DSW) licences its brand to professionals involved in corporate finance and accounting services and provides them with back office support. Many individuals become licensees after working with major accountancy firms. Warrington-based DSW believes that the flotation will boost the profile of the business and enable it to grow geographically and broaden the services provided. DSW raised £5m at 100p a share and the price ended the week at 123.5p.
In the six months to October 2021, Begbies Traynor (BEG) revenues were 39% ahead at £52.3m. Underlying pre-tax profit jumped 60% to £8m thanks to an improvement in operating margin from 14.4% to 16%. Net cash was £1.2 million at the end of April 2021.
Public Policy Holding Company Inc (PPHC) provides public affairs, crisis management and lobbying services in the US. It has three subsidiaries in the top 20 US lobbying firms. A placing raised £11.1m at 135p a share. Although the company has reported losses, a change in bonus arrangements will make it profitable.
Problems at the CHESS naval systems subsidiary led to a slump in interim profit at defence firm Cohort (CHRT), but it still increased the interim dividend by 10% to 3.85p a share. The group order book remains strong and includes some large orders. A new managing director has been appointed at CHESS.
Jade Road Investments Ltd (JADE) says that the structure of restaurants group Fook Lam Moon has changed, and it may no longer own 71%. This could lead to a partial or full provision of the $29.1m valuation in the balance sheet.
MAIN MARKET
Anemoi International (AMOI) has completed the acquisition of id4 AG for £5.33m, with an initial payment in shares with 50% deferred and dependent on achieving targets over the next five years. The SaaS-based business provides anti-money laundering and know your client software products. A placing raised £2.175m at 4p a share.
Spinnaker Acquisitions (SPAQ) is planning to acquire leak detection technology developer HomeServe Labs, from fully listed HomeServe (HSV) for a mixture of cash and shares. The business trades under the name LeakBot and it helps insurers to reduce claims costs. Insurers can provide LeakBot to homeowners free of charge. The company would be renamed Ondo InsureTech.
Marine technology products developer OTAQ (OTAQ) is raising £1.38m at 22p a share. Interim revenues fell from £2m to £1.8m. Net debt was £800,000 at the end of September 2021. The regulatory review in Scotland has held back progress and it continues to do so. There are plans for new product launches.
Publisher National World (NWOR) says full year revenues will be around 85%, following the purchase of JPI Media, with growth in digital income and a slowing in the rate of decline of print revenues. There should be cash of £23m at the end of 2021.
Andrew Hore