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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 10 June 2024
AQUIS STOCK EXCHANGE
Skincare treatments developer Incanthera (INC) says the first production order for its Skin + CELL products from Marionnaud has been doubled to 100,000 units. The launch will be in September. The previous figure was already higher than the initial order and the revenues from the order will be £4m. Future production orders could be even larger. This will help group revenues for the year to March 2025 to be more than £10m. This has enabled Incanthera to raise £4.1m from a share issue at 15p/share to cover additional working capital. Lupus treatment developer ImmuPharma (IMM) raised £1.5m from the sale of its 9.98% stake in Incanthera, which was valued at £600,000 at the end of 2023, although it retains warrants.
TruSpine Technologies (TSP) is talking to several potential commercial partners for its medical device technology, where the regulatory process is ongoing. The new board has improved relations with the inventor of the spinal stabilisation device IP. The investor relations website has been relaunched and a new medical advisory board will be put in place.
CBD products supplier Voyager Life (VOY) says another potential merger has fallen through. This follows the ending of the Northern Leaf deal. This has left Voyager Life short of cash. The business operations are being reviewed and there are talks about funding. The company has been winning new business and there are signs of an improvement in the retail stores.
RentGuarantor (RGG) increased full year revenues by 79% to £741,000. The rent guarantee services provider says arrears were 2.32% in 2023. The loss increased from £911,000 to £1.23m, after a £358,000 charge for the revaluation of the convertible loan note.
First Sentinel has resigned as corporate adviser of ChallengerX (CXS) and the shares have been suspended. ChallengerX is progressing with a potential acquisition, and it is required to appoint a new corporate adviser.
Helium Ventures (HEV) says that a shareholder in Trackimo is challenging the issue of a 19.4% stake to the Aquis company.
Invinity Energy Systems (IES) has leased an additional manufacturing facility in Motherwell. This should become operational in the third quarter and capacity should be more than 500MWh of energy storage per year. The Bathgate facility will also be upgraded.
KR1 (KR1) has invested $1m into the Avail Web3 infrastructure project in return for 12.5 million AVAIL tokens.
Video capture technology company Visum Technologies (VIS) has entered exclusive non-binding heads of terms for a licence agreement with Makeabl, which has developed cloud/app technology. This would be licensed in North American and European markets and help Visum Technologies to access new markets.
BWA Group (BWAP) has completed reconnaissance drilling at the Dehane 2 rutile sands project in Cameroon. The results were encouraging. Oberon Capital has been appointed as broker.
Arbuthnot Banking Group (ARBB) has completed the renewal of its subordinated loan, which is classified as Tier 2 capital. The loan was increased by £1m to £26m and lasts until June 2034.
Psych Capital has changed its name to Shortwave Life Sciences (PSY).
AIM
Destocking hit the interim figures of Gooch & Housego (GHH) and pre-tax profit slipped from £4.7m to £2.6m on a 1% decline in revenues to £63.6m. This excludes the loss making EM4 defence business sold earlier this year. The dividend was edged up by 0.1p/share to 4.9p/share. Net debt increased to £22.2m. The destocking was primarily in industrial and medical sectors. Industrial remains the largest generator of revenues despite a 13% decline. There was not a recovery in the semiconductor sector as expected. The subsea cable market was strong. There was a reduction in the aerospace and defence division loss on higher revenues, but it still needs to improve manufacturing efficiency.
GRC International (GRC) is recommending an 8p/share cash bid from Bloom Seed Bidco, which values the cybersecurity company at £8.6m. The bidder is a vehicle for technology investor Bloom, which can provide increased financial backing for the business. GRC joined AIM in 2018 at a time when there was investor interest in the cybersecurity sector. The flotation valuation was £40.2m at 70p/share. GRC has been loss making and never moved into profit.
Pawnbroker Ramsdens (RFX) reported interims showing the expected progress. Precious metals revenues were strong, although margins dipped. Pre-owned jewellery sales offset weaker watch sales. The contribution from each main division was higher. Interim revenues were 12% ahead at £43.8m, while pre-tax profit improved from £3.68m to £3.99m. The dividend was raised by 9% to 3.6p/share.
Strip Tinning (STG) has won a battery technologies contract from a German automotive motion technology manufacturer, that could have a lifetime value of £43m. This is for a cell contact system for battery pack modules for a US customer. This has already generated £1.7m in pre-production work. Production supply will start in the fourth quarter of 2025 with further pre-production revenues of £1m ahead of that time. There will be additional investment in engineering resources. Demand for glazing products has weakened and copper prices are rising. There will be a trading statement on 16 July.
Power Metal Resources (POW) has secured a £2m loan note investment from ACAM, which is also negotiating a uranium-focused joint venture, which would include all of Power Metal’s uranium licences. This would mean that the flotation of Uranium Energy Exploration will not happen – that has already cost £500,000 – and neither will previously proposed disposals. There would be a £10m investment in Power Metal Resources Canada so that ACAM would have a 70% stake. The loan notes bear interest of 10%/year and there will be 13.3 million warrants issued that are exercisable at 15p each.
Empire Metals (EEE) considers further positive exploration results as a major development for the Pitfield prospect. There is rutile at surface, and it should be easy to mine. Titanium dioxide mineralisation gets more prevalent at lower depths. This should improve project economics.
Pantheon Resources (PANR) has entered a gas sales precedent agreement with the state-owned Alaska Gasline Development Corporation, which is developing the Alaska LNG project. This is designed to supply Alaska and export up to 20 million tonnes of LNG each year. Pantheon Resources would supply up to 500 mmcf/day of gas at a maximum base price of $1/mmbtu. There are plans to increase the scale of the Ahpun development.
Jadestone Energy (JSE) says the Akatara gas processing facility, onshore Indonesia, is approaching final commissioning. The first gas should be processed in around a fortnight. Gas and LPG sales will start soon after that. The workover campaign on five Akatara wells has completed, and they will provide gas for the facility.
Seed Innovations (SEED) has completed its share buyback programme. This used up £510,000 on top of the £2m dividend. That followed the disposal of its Leaf Gaming stake for £2.4m. There has been a 11.6% share price decline so far this year, but that is not adjusted for the 1p/share special dividend.
Maritime systems developer SRT Marine Systems (SRT) admits that two coastguard contracts are unlikely to reach their project revenue milestones in the 15 months to June 2024. The largest contract is dependent on the completion of an inter-government loan. There should £45m of income recognised when this is finalised. Once the other contract is verified it should enable £9m to be recognised. Transceivers revenues have grown, and total revenues are expected to be £14m in the 15-month period. The six-month figure was £5.5m with no contribution from systems.
Hercules Site Services (HERC) reported a one-third increase in interim revenues to £48.8m as it continues to win additional contracts to supply construction staff. It moved back into profit in the period. The new training academy is up and running.
The Mission Group (TMG) has responded to the revised bid proposal of 13.9 Brave Bison (BBSN) shares for each share in the advertising and marketing services company. The board still believes that the bid does not reflect the underlying value of the business, but it is evaluating the bid.
Hostels operator Safestay (SSTY) has acquired a property in Brighton from the University of East Sussex for £2.275m. This will be converted into a 220 bed premium hostel. It is 600 metres from the sea front and will cost £1m to convert. Shore Capital has been appointed nominated adviser and broker. Safestay reported full year revenues 18% higher at £22.5m. EBITDA rose 15% to £6.8m. NAV was 50p/share.
Restaurants operator Tasty (TAST) gained court approval of its restructuring plan on Tuesday afternoon. Tasty has got out of the leases of 23 sites. This leaves 38 restaurants, which are predominantly the Wildwood brand. This should improve EBITDA by up to £2.1m between 2023 and 2025.
Clontarf Energy (CLON) has failed to move through to the next stage of the bids for the seven priority salt pans in southern Bolivia because of its offtake partner’s poor credit rating. Management hopes that it can argue the case that the credit rating is not relevant.
Mosman Oil & Gas (MSMN) is paying $500,000 for a 10% interest in a US helium project in Las Animas County, Colorado. This is an area with known helium deposits. There are five helium prospects and a well will be drilled for each of them. The sale of oil and gas asset will help finance the move into helium.
WIIT has decided not to make an offer for Redcentric (RCN).
MAIN MARKET
Credit provider S and U (SUS) says that its first quarter profit has fallen by one-third because of higher provisions due to lack of regulatory clarity.
Like-for-like sales at Hostmore (MORE) have fallen by 10%, but profitability has improved. Net debt is set to peak in the third quarter. The acquisition of TFI Fridays is progressing and the formal agreement should be signed shortly.
Motor dealer Caffyns (CFYN) has cut its dividend by one-third to 5p/share because it slumped into loss last year. There were property value write-downs.
Chill Brands (CHLL) shares have been suspended because of allegations relating to the use of insider information and concerns about commercial arrangements. This means that the board cannot provide accurate information about its financial position.
Oxford Cannabinoid Technologies (OCTP) has left the standard list.
Andrew Hore
Ian Pollard – #OMG Profit Up By 94% As Music Industry Surges
One Media iP Group OMG A resurgent music industry saw its longest period of revenue growth since the 1990s so it is no surprise that One Media Group enjoyed strong growth over the year to the 31st October 2018. Revenue rose by 16%, EBITDA by 44% and operating profit by 94%. Growth was also driven by increased consumer demand and the board was enhanced by the appointment of Lord Grade.
Gooch & Housego GHH Has seen during the six months to the 31st March 2019 a downturn in demand for critical components, particularly from China. In contrast to demand for fibre optic products used in undersea networks, which is strong. The microelectronics sector is cyclical and expected to follow the usual pattern by picking up during the second half of the year. The order book at the year end was string, standing at £93.2 million .
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Andrew Hore Quoted Micro 25 February 2019
NEX EXCHANGE
Western Selection (WESP) has reported a 22% decrease in NAV to 75p a share, due to the decline in smaller quoted company share prices. The NAV has recovered to 79p a share. The investment in Swallowfield (SWL) declined by nearly one-third and the value of the Bilby (BILB) stake fell by two-fifths in the six months to December 2018. Net debt was £1.25m at the end of 2018. The interim dividend is maintained at 1.1p a share.
Early Equity (EEQP) has acquired a 60% stake in MEI Home, a ecommerce platform for household, health and food products, for £282,000. The Malaysia-based business was profitable in the first financial year. The founder will retain a 40% stake and he also owns 6.12% of Early Equity. He also promises that annual pre-tax profit will be at least £95,000 in each of the next two financial years.
Tectonic Gold (TTAU) has taken a 50% stake in a joint venture with Vast Mineral Sands covering diamond mining concessions at the government-owned Alexkor diamond mine in South Africa. This should generate cash, through planned production of 900 carat per month, to invest in other projects. Tectonic is paying $650,000 in shares at 2.2p each. A year long research study has confirmed that there is an interaction of two styles of mineralisation at Mount Cassidy prospect in Queensland, Australia. There is stratabound copper and zinc, gold and silver mineralisation and epizonal to epithermal gold and silver mineralisation.
MiLOC Group Ltd (ML.P) has extended the life of its convertible bond by one year to 19 January 2020. The annual coupon increases from 6% to 7.2%. The conversion into shares can take place if an alternative quotation on a recognised stock exchange is secured.
First Sentinel (FSEN) has completed a £4m bond issue. These 7% bonds 2023 are due to start trading on NEX.
AIM
Michelmersh Brick (MBH) has made its first acquisition outside of the UK. Michelmersh is paying up to €9.9m (£8.7m) for Antwerp-based Floren and Co in a deal that should be immediately earnings enhancing. A placing raised £5m at 90p a share. In 2018, Floren generated EBITDA of €1.75m on revenues of €5.7m. Michelmersh is planning to increase production levels from 19.5 million bricks a year. The acquisition includes 120 acres of land, of which 60 acres is used in production.
IP legal services provider Murgitroyd Group (MUR) is acquiring Southampton-based Chapman IP for £6.6m and Helga Chapman has been appointed a non-executive director. Net cash was £2.03m at the end of November 2018. Interim pre-tax profit edged up from £1.67m to £1.7m. The interim dividend was increased by 8% to 7p a share. Edward Murgitroyd is retaining his role as chief executive and handing over the role of finance director Keith Young.
Carpets and hard flooring manufacturer Victoria (VCP) continued to sacrifice margins in order to add market share in a declining flooring market in the UK in the second half of the financial year to March 2019. Full year EBITDA should be between £95m-£97m, with underlying pre-tax profit of at least £55m. This is not as much as previously forecast. There are additional inventories ahead of Brexit. Restructuring measures and capital investment should add more than £14m to pre-tax profit for the year to March 2020.
JD Sports Fashion (JD.) has acquired 21.3% of Footasylum (FOOT) and it says it may acquire up to 29.9%. FIL Ltd’s stake has fallen below 5%. Artemis has sold its 5.74% stake.
Angling Direct (ANG) expects to report full year revenues of £42m, up from £30.2m. Three new stores have been added to the group, taking the total to 24. International sales doubled. The full year results will be published on 13 May. Angling Direct is considering the acquisition of Glasgow-based Chapmans Angling Ltd, which is a subsidiary of The Glasgow Angling Centre Ltd.
Egdon Resources (EDR) has competed drilling at Biscathorpe-2 in Lincolnshire. There are signs of an effective petroleum system even though the sands were poorly developed. The reservoir may be better developed to the north of the well. Egdon owns 35.8% of the exploration licence and Union Jack Oil (UJO) owns 22%.
Trinidad-focused oil and gas producer and explorer Touchstone Exploration Inc (TXP) has raised £3.8m at 12p a share in order to finance the 9,000 feet of exploration drilling at Ortoire.
Pelatro (PTRO) has gained a contract to supply its mViva contextual marketing service to Vietnam-based Vinaphone. The deal with the telecoms company should be worth $1.5m over three years. Pelatro gets a fixed monthly fee plus a share of incremental revenues generated. This provides additional confidence that the 2019 revenue forecast of $10.5m can be met. That is expected to generate pre-tax profit of $6m because of the high operational gearing of the business.
SkinBioTherapeutics (SBTX) has raised £1.5m at 16p a share from Seneca Partners. There was £2.52m in the bank at the end of 2018. The cash will be invested in further development of products and commercialise them.
Duke Royalty (DUKE) has provided £10m of royalty finance to recreational vehicle parts wholesaler Miriad Products. The monthly payments are expected to provide a yield the equivalent of 13% a year.
Biopesticide products developer Eden Research (EDEN) has a second approved product thanks to its commercial partner Eastman Chemical Company. Nematicide formulation Cedroz has received authorisation in Malta and Eastman will apply to gain approvals in individual EU member states. The full benefit of these approvals is likely to show through next year.
EKF Diagnostics (EKF) has received US FDA clearance for the use of the Quo-Test glycated haemoglobin analyser in clinical laboratories.
It has been a mixed start to the financial year for Gooch and Housego (GHH) with softer demand in microelectronics, due to trade tariffs, but the second half improvement in subsea cable business has continue. The AGM statement has led to a reduction in the underlying profit forecast for this year from £21.5m to £19m, which is slightly higher than last year’s outcome.
Social housing software provider Castleton Technology (CTP) has acquired its software development partner in India for £350,000 in cash and shares.
eServGlobal (ESG) says that its 35.7%-owned mobile transfer payments joint venture HomeSend increased its average transaction value by 35% in the second half following a change in strategy to focus on account-to-account transactions rather than remittances.
Beximco Pharmaceuticals (BXP) is acquiring eight abbreviated new drug applications in the US from Sandoz Inc. This takes the number of US approved drugs to 14, with four currently being exported to the US.
Haydale Graphene Industries (HAYD) has raised £4m at 2p a share and wants to raise up to £4m more through a seven-for-one open offer closing on 11 March. If these shares are all issued they will account for 93% of the total shares in issue. Haydale needs cash to invest in its inks business as well as to cover continuing losses. Keith Broadbent will become chief executive.
Reach4Entertainment (R4E) has acquired the arts and entertainment advertising agency trading as Sold Out for an initial £3.94m in cash and £250,000 in shares. The total purchase price is dependent on performance in the period from 1 June 2017 to the end of 2021 and is capped at £10m. In the year to May 2018, Sold Out made a pre-tax profit of £1.3m.
Paragon Entertainment (PEL) has sold its current administration offices in York for £550,000. The relocation to other group premises should save £100,000 a year. The cash will pay off the mortgage of £134,000 and reduce the overdraft from £1.04m. The overdraft limit will be cut from £1.2m to £882,000. A creditor owing £168,000 has filed for protection from creditors. Management want to raise additional capital.
Medical devices supplier Inspiration Health (IHC) says revenues for the year to January 2019, will be £15.5m, which is £1m below forecast, and pre-tax profit will be slightly lower than forecast at £1.2m.
Holders Technology (HDT) has more than trebled its full year pre-tax profit of £177,000 thanks to a reduced LED loss and improved profitability at the printed circuit board materials business. There was still a cash outflow from operations. The dividend has been increased by 50% to 0.75p a share.
Arc Minerals Ltd (ARCM) has raised £2.2m at 3p a unit. The unit includes a share and one warrant exercisable at 4.5p each and lasting for 36 months. The cash will finance exploration and development at the Zamsort copper project in Zambia. Arc has also sold its 18.5% stake in Andiamo Exploration for $250,000.
Malvern International (MLVN) has raised £606,000 at 4p a share. This is more than the education services provider originally asked for in order to cover working capital requirements and investment in a new college in Brighton and online course material.
AIM-quoted blockchain and technology investment company Vela Technologies (VELA) is taking advantage of the discount to cash by buying 500,000 shares in cryptocurrency mining services provider Argo Blockchain (ARB) at 3.072p a share. This compares with cash of 5p a share. Vela has 3 million shares in Argo, equivalent to 1.02%. The rest of the shares were bought prior to Argo’s standard listing and cost 8p each, compared with the flotation price of 16p a share. The average cost is 7.17p a share, so the average cost exceeds the value of cash in the business. Argo is refocusing on its own currency mining. Ongoing costs will be cut by one-third, although there will be some one-off cash costs. Net cash is £15m and that is much more than the market capitalisation of Argo.
ReNeuron (RENE) has released early data on three patients in phase I/IIa clinical trial the human retinal progenitor cell product. There have been significant improvements in vision for the patients, but this is a small sample size over a short time. Cash should last until the end of 2019.
Pires Investments (PIRI) has received a requisition notice for a general meeting in order to make changes to the company’s board.
Best of the Best (BOTB) has received tenders for just over 4 million shares, which is 5.6 times the number that it was tendering for. Best of the Best will pay £3.5m for 721,327 shares (485p a share).
FAIRFX Group (FFX) has become a direct participant in the UK faster payments scheme. It is the fourth non-bank to be a direct settling member.
Crossword Cybersecurity (CCS) says Kinnerton Confectionery will be using its Rizikon Assurance secure third party assurance platform.
Former AIM company Lionsgold Ltd (LION) is changing its name to Tally Ltd. Mobile banking app Tally is in beta testing and could be released by the end of February. Once this has been released the company will seek to gain a new quotation. The exercise of warrants, mostly by directors, at 1.2p a share has generated £288,000.
MAIN MARKET
Packaging group Macfarlane Group (MACF) increased its pre-exceptional profit by one-fifth to £11.2m in 2018. Both distribution, helped by acquisitions, and manufacturing divisions increased their profit contributions. Manufacturing sales grew fastest but margins fell. The dividend was increased by nearly 10% to 2.3p a share. Net debt was £13.2m and there are plenty of unused bank facilities to fund any further acquisitions. The pension deficit was reduced by £2m to £9.8m.
In the six months to December 2018, Avation (AVAP) reported doubled earnings per share thanks to the gain on the sale of a A321-200 aircraft. The NAV is 288p. The aircraft fleet continues to increase, particularly turboprop aircraft. Although full year pre-tax profit is set to rise even more than originally forecast, earnings per share are likely to be flat at 31.7 cents. Next year’s profit will be lower, assuming no aircraft disposals.
InnovaDerma (IDP) reported interims in line with expectations and there are plans for a mid-March launch for Skinny Tan in Boots. This will help the second half performance, which is normally stronger. Full year pre-tax profit is expected to more than double to £1.5m, a downgrade of 10%. Net cash was £700,000 at the end of 2018. A cash inflow is expected in the second half, but fluctuations in cash in terms of working capital requirements, such as Boots order levels, during the period could lead to InnovaDerma deciding to raise more money.
Anglo African Agriculture (AAAP) reported a reduction in turnover from £2.13m to £1.74m in the year to October 2018. Even so, gross margins improved and the pre-tax loss edged up from £550,000 to £573,000. Net cash was £856,000. The company is assessing acquisitions outside of the agriculture sector.
Trading in the shares of daVictus (DVT) has been suspended ahead of finalisation of a deal where the standard list shell will buy the rights to a restaurant concept from Typical Dutch NV for £100,000. This is deemed to require a prospectus before the company can be readmitted to the standard list. The Havana Rolled Cigar Music Café concept has been developed at a site in Aruba. daVictus had £431,000 in the bank at the end of June 2018.
Offshore support vessels operator Gulf Marine Services (GMS) has sent out the document for its requisitioned general meeting on 18 March. Rival Seafox International wants to remove the chairman and appoint three new directors. Ithmar Capital Partners wants to appoint another director.
Andrew Hore
Ian Pollard – Gooch & Housego #GHH Impacted by Microelectronic Headwinds
Gooch & Housego plc GHH updates that it is suffering from microelectronic headwinds despite which growth has continued. During the first four months of the financial year the business has seen a downturn in demand particularly from China. A cyclical downturn is also currently being experienced for industrial lasers. 2019 group trading performance is still expected to show low single digit growth compared to last year.
Glencore plc GLEN is pleased to report that it has delivered both record Adjusted EBITDA, up by 8% and significant cash returns to shareholders in 2018. The preliminary results also include net income attributable to equity holders down 41% and basic earnings per share also down 41%. Other highlights are that resolutions have been achieved with the Ontario Securities Commission regarding accounting, governance and disclosure matters and a refreshed management team has been appointed. Committees have been created to oversee the Group’s response to the U.S. Department of Justice’s investigation. Production guidance in all commodities for 2019 is that it is expected to be higher than 2018.
Intu Properties plc INTU claims its management team has produced robust operational performance in a challenging market for the year to 31st December, with increased like-for-like net rental income for the fourth consecutive year and 97 per cent occupancy. property valuations declined as sentiment weakened significantly. Valuations fell by a further 3 per cent in the final quarter of 2018, in addition to the 9 per cent fall over the first nine months. Sentiment in the retail sector is at an all-time low.
Hochschild Mining plc HOC reports another strong year of record production and prudent cost control. Revenue for the year to 31st November fell by 3%, adjusted EBITDA by 11%, Profit from continuing operations (pre-exceptional) was down by 66% and Profit from continuing operations (post-exceptional) by 88%. 2018 operational delivery exceeded guidance.
Lloyds Banking Group LLOY 2018 results show that it was a year of strong strategic and financial delivery. The UK economy has proven itself resilient with record employment, which has enabled the bank to see profits jump by 24% whilst the total ordinary dividend of 3.21 pence per share, is up 5 per cent on 2017 In addition to this a share buyback of up to £1.75 billion is proposed. A continued strong performance is expected for 2019 with a statutory return on tangible equity of 14 to 15 per cent.
Find beachfront villas & houses for sale in Greece; http://www.hiddengreece.net
Andrew Hore – Quoted Micro 8 October 2018
NEX EXCHANGE
National Milk Records (NMR) is recommending a dividend of 2.5p a share after it moved from an operating loss of £11.9m to an operating profit of £1.9m in the 12 months to June 2018. If one-offs are stripped out, then the operating profit has improved from £1.1m to £1.9m. Net debt is £1.8m. There has been an improvement in the dairy market over the past year. Demand is increasing for services related to animal welfare and health, as well as for reproduction services.
Coinsilium Group Ltd (COIN) has signed a strategic partnership with Lition Technology, which is developing a new blockchain infrastructure. This will be the first blockchain with deletable data features. A Lition token sale has commenced and the funding target is $25m.
EQE Special Opportunities (ESO) has sold its investment in Process Components for £13.6m and this has added 11.16p a share to EPE’s NAV, which is 216.31p a share.
KR1 (KR1) has sold its remaining Golem tokens for nearly $134,000. They were bought for 1.3 cents each and sold for 22 cents each in less than two years. The remaining Qtum tokens have been sold for $125,000, which is equivalent to more than twenty times the price per token they were acquired for.
Botswana-focused oil and gas company Karoo Energy (KEP) is confident that it will be able to raise the cash it requires before the end of the year. Contax Partners is keen to be involved in a fundraising. There are also plans to move to AIM and gain a listing on the Botswana Stock Exchange.
Via Developments (VIA1) has completed the construction of the Napier House development in Luton and 23 of the 30 apartments have been sold. Cash of £702,000 has been received with a further £3.64m to be paid on completion. The other seven apartments are valued at £1.5m.
Anthony Carr, a new investor, has acquired 1.785 million shares in healthcare IT supplier DXS International (DXSP) at 7p each. That is a 5.07% stake. Director Bob Sutcliffe has acquired 12,960 shares at 7.88p each, which takes his shareholding to 0.96%.
IMC Exploration (IMCP) has raised £120,000 at 1.2p a share and the cash will be used to finance the companies three main projects in Ireland. New IMC chairman Eamonn O’Brien subscribed for 4.34 million shares taking his stake to 2.5%. NQ Minerals (NQMI) has raised £250,000 at 12.5p a share, while convertible loan notes worth £81,000 were converted into shares at 8p each. Imperial Minerals (IMPP) is raising up to £300,000 from an issue of unsecured convertible notes with an annual interest rate of 10%.
AIM
Gooch and Housego (GHH) says trading for the year to September 2018 was in line with guidance. The optical equipment supplier improved its undersea cable equipment revenues in the second half and the industrial sector demand was strong. Acquisitions in aerospace and life sciences will help to offset any cyclicality in the industrial sector. The order book is worth £96.1m.
Avingtrans (AVG) reported slightly better than expected figures. The engineering company has started to reap the benefits of the Hayward Tyler acquisition but there is more to come. Revenues were 247% higher at £78.9m with the acquisition helping gross margin to improve to 25.5%. The underlying pre-tax profit was £2.4m and the total dividend 3.6p a share. A £4.3m profit is forecast for this year, rising to £5.3m in 2019-20.
Telecoms sector marketing services provider Pelatro (PTRO) will offer its loyalty management solution to Telenor’s global operations. The Danateq acquisition has helped Pelatro have the chance to win this work.
Event driven marketing services provider mporium (MPM) has deployed its IMPACT sports syncing technology with two large global advertising networks. This provides access to even more brands and will help to build revenues in order to reduce the loss.
DX (Group) (DX.) reported a reduced loss in the second half but the parcel delivery firm still made a large full year loss. A £4.5m profit is forecast for next year.
Myanmar-focused social media platform operator MySQUAR Ltd (MYSQ) generated revenues of $1.84m in the year to June 2018, with gaming revenues more than offsetting a decline in advisory income. However, second half revenues were barely higher than the first half revenues. Current monthly games revenues are flat. There is $2m in the bank.
MAIN MARKET
Standard list cash shell Trident Resources (TRR) started trading on 1 October after £4m had been raised at 20p a share. Trident is seeking to acquire in the mining sector. Ongoing costs are expected to be £130,000 a year with additional costs for due diligence on potential acquisitions.
Avocet Mining (AVM) says that it has enough cash for the next 12 months, as long as Elliott, which is the company’s largest shareholder, does not ask for its loans of $29.9m to be repaid. Avocet’s only asset is in the Tri-K development.
Flavour and fragrance ingredients supplier Treatt (TET) has done well enough in the second half to offset negative currency movements, so pre-tax profit for the year to September 2018 is in line with expectations. Like-for-like revenues grew by 9%. US manufacturing capacity expansion is on time and the relocation of the UK site is progressing well. The full year figures will be published on 27 November.
Andrew Hore
Ian Pollard – Ted Baker #TBK will continue to be challenged
Ted Baker plc TED group revenue rose by 3.5% in the 28 weeks to the to the 11th August but profit before tax fell by 3.2% and basic earnings per share by 1.8%, so the management did two things. Firstly it increased the interim dividend by 7.8% and secondly it sought refuge in the time honoured excuse of “challenging external trading conditions”, thereby completely ignoring the successful companies which not only face challenging conditions but beat them. Wholesale sales did rise by 10% and e commerce by 24.1%. North America, the UK and Europe did see small sales rises in retail sales but the rest of the world showed a small rise or a small decline depending on how you calculated your currency. As for the future it looks like the board has already succumbed to those challenging conditions which it believes will continue through the second half.
Electrocomponents ECM benefitted from strong momentum in the six months to the 30th September. Group like for like revenue grew by 10% after a strong second quarter and adjusted profit before tax for the half year is expected to grow from last year’s £79m to £100m.
Audioboom Group BOOM produced record revenue for the quarter ended 31 August 2018 with a rise of 14% on Q2 2018 and 26% up on Q3 2017. Despite that revenue for the 13 months ending 31 December 2018 is now expected to be below current market expectations. That will still show a hefty rise on the 12 months to November 2017 which produced $6mUS$ compared to between $11.5m and US$13m which is expected for the end of the current year.
Gooch & Housego GHH has entered its new financial year with a record year end order book, which, as at 30 September 2018, stood at £96.1 million, an increase of 33% compared with last year. On a like for like basis and excluding the impact of foreign exchange this still comes in as a healthy 17% rise. The company is in a strong position and has been able to take advantage of positive market conditions.
Intercede Group IGP updates that operating losses for the six months to the end of September have been substantially reduced to less than £1.0m compared to last years £3.1m. Revenue for the half year has risen by more than 10% compared to last year.
AB Dynamics plc ABDP has performed well throughout the year and the Board expects both revenue and profit before tax will significantly exceed market expectations.
Forget Brexit; Get A Greek Residence Permit Valid For The EU http://www.hiddengreece.net
Andrew Hore – Quoted Micro 9 April 2018
NEX EXCHANGE
Good Energy (GOOD) has renewed its offshore wind power deal with Orsted for a further two years. This secures 12% of the output of a North Sea wind farm and this can power more than 26,000 homes. Generation has been ahead of expectations.
KR1 (KR1) has announced its latest investments. An investment of £184,000 has been made in Nexus Mutual Project (NXM) tokens. The number of tokens will be confirmed after the public token sale. KR1 will receive the tokens at a 17.5% discount to the lowest price offered in the public sale. Nexus Mutual will use blockchain technology to recreate insurance mutual. The company has also invested £150,000 in Argent Labs Ltd, which is creating a decentralised banking protocol on the Ethereum blockchain. KR1 has invested €201,000 in the private pre-sale for the Herdius project.
Gibraltar-based TDH Ltd has taken on Coinsilium Group Ltd (COIN) as its adviser for a token generation event. The TrustedHealth platform will create a decentralised global network of doctors and healthcare specialists offering virtual consultations. They will pay with TDH tokens and the token sale started on 27 March and lasts until 27 April. Faruk Saylam has sold 1.5 million shares, which leaves him with a 4.4% stake.
NQ Minerals (NQMI) has been granted a mining lease for the Sunbeam silver mine in northern Queensland. This will enable the processing of 48,000 tonnes of mineral stockpiles, which include gold, silver, copper, lead, zinc and antimony.
MetalNRG (MNRG) says the prospective buyer of the company’s stake in US Cobalt has completed due diligence. MetalNRG will receive 21.7 million shares in ASX-listed Tyranna Resources Ltd for its 15.38% stake in US Cobalt.
Angelfish Investments (ANGP) says that One Media Enterprises has been acquired by OTC-quoted OneLife Technologies Corp but the payment it is due will have to wait until the buyer is allowed to raise cash. That should be later in April. Angelfish will have its original investment repaid along with management fees plus an uplift in the amounts due. The timing of the first instalment is still uncertain.
First Sentinel (FSBN) has raised a further £62,000 from a bond issue. The company plans to issue up to £4m of bonds.
Gowin New Energy Group Ltd (GWIN) says that Mr Chen Chih Lung has converted his loan note into 40 million shares at 1p each. This takes his stake in Gowin to 21.6%.
AIM
SimplyBiz Group (SBIZ) joined AIM on 4 April. It was valued at £130m at the placing price of 170p but the share price ended the week at 160.5p. The company provides compliance and business services to financial advisers.
Higher managed services revenues helped AdEPT Telecom (ADT) to make further progress last year. Pre-tax profit is expected to be £7.4m and the dividend will be raised 13% to 8.75p a share. Debt is lower than expected.
Broadcast industry software provider Pebble Beach Systems (PEB) is hopeful that it can secure terms to extend its bank facility until November 2019. Pebble is adding industry experience with the appointment of Graham Pitman as a non-executive director.
Gooch and Housego (GHH) says trading is in line with expectations and the order book is at a record level of £84.7m. Demand for high reliability fibre couplers has been weak but is expected to recover in the second half. The manufacturing sites have been organised into three technical groupings and performance is improving. The interims will be published on 5 June.
Floorcoverings supplier James Halstead (JHD) says it is considering a bid for Airea (AIEA) but it has yet to approach for the Burmatex-branded floorcoverings business. Airea is closing its Ryalux residential carpet business. There is £3.7m in the bank and the pension deficit has been reduced. Eight shareholders own around 48% of Airea.
appScatter (APPS) is adding to its service that enables organisations to publish their apps on multiple stores and platforms by paying £13.5m in cash and shares for data analysis business Priori Data. This should provide a full service for clients. There are plans to raise £15m at 70p a share.
Denial of service online attacks prevention technology developer Corero Network Security (CNS) is still loss-making and it is raising £4m at 5.75p a share, as well as trying to secure a £3m debt facility. One year ago, Corero raised £5.6m at 5p a share.
FairFX (FFX) can issue Mastercard branded cards and is launching a commercial finance offer to business customers.
Mytrah Energy (MYT) has recommended a bid from majority shareholder Raksha Energy Holdings Ltd. Raksha is offering 45p a share in cash to mop up the 42.1% of the wind power producer it does not own. That is higher than the share price has been for 16 months but not much more than 50% of the level it was nearly three years ago. This bid values Mytrah at £78.9m.
Hornby (HRN) says sales improved towards the end of the financial year as European product was delivered. There was net cash of £4m at the end of March 2018 but management says that a larger debt facility is required for seasonal working capital requirements. Barclays will waive a covenant on the existing facility.
1Spatial (1SPA) has won a £1.6m deal with Land and Property Services in Northern Ireland. Most of this will be generated over the next five years. The geospatial data provider is expected to get near to breakeven in the year to January 2019.
Watkin Jones (WJG) says that first half trading is in line with expectations. Student accommodation developments continue to make the largest contribution with a pipeline of 9,800 beds. The build to rent development business has secured planning consents on three sites, covering 700 units. The management business has contracts to manage more than 14,000 beds, even though the sale by a client of student properties covering more than 5,000 beds meant that the new owner took on their management.
MAIN MARKET
Ingredients supplier Treatt (TET) says that interim revenues are 11% higher this year, helped by new business wins. Current full year forecasts predict an increase in revenues from £109.6m to £117.3m so Treatt is well on its way to achieving that. A full year profit of £14.4m is forecast. There will be a small negative foreign exchange charge in the first half but the US tax charge will be lower than previously expected.
Bluebird Merchant Ventures (BMV) has completed the $500,000 farm-in spending on the Gubong mine and following the publication of a feasibility study the expenses will be shared 50/50 with Southern Gold.
Andrew Hore
Andrew Hore – Quoted Micro 26 February 2018
NEX EXCHANGE
Blockchain technology investor Coinsilium Group Ltd (COIN) is advising Tutellus Technologies on its upcoming token generation event. Tutellus matches students with teachers in the Spanish-speaking world. The Tutellus token will be used as a medium of exchange for the new blockchain-based platform. Richard Lloyd has been appointed as adviser to Coinsilium’s Gibraltar-based subsidiary TerraStream, which is developing a token offering platform. TerraStream intends to raise cash via a token offer but it is waiting for a more specific set of regulations from the Gibraltar Financial Services Commission that should be published in the second quarter.
IMC Exploration Group (IMCP) has decided to focus on the flagship project in gold project at Avoca, Wicklow and the Kilbricken zinc deposit in County Clare. IMC plans to relinquish five licences.
Natural resources investing company MetalNRG (MNRG) has appointed Rolf Gerritsen as chief executive and he is subscribing for 2.5 million shares at 2p each, combined with 2.5 million warrants exercisable at 3p each. The former chief executive Paul Johnson is acquiring the same number of shares on the same terms. MetalNRG is progressing the potential standard listings of a number of resources businesses and it will retain stakes. MetalNRG is also seeking to move to the standard list.
Health staff recruiter Healthperm Resourcing Ltd (HPR) generated revenues of £250,000 in 2017. There were 130 candidates deployed. The company intends to double its number of employees by the end of June 2018. New contracts have been won in the Middle East and with Walsall Healthcare NHS Trust and these candidates will be found this year. The 2017 figures should be published in May.
AIM
Gooch and Housego (GHH) says that it is experiencing exceptional demand for critical components for microelectronic manufacturing and this has offset any slowing in demand for high reliability fibre couplers. Trading is in line with expectations and there will be a second half weighting to the year’s figures. US tax changes will reduce the deferred tax in the balance sheet by £500,000 and cut the effective rate of tax to around 23%.
Lighthouse Group (LGT) is doing particularly well at the moment. The IFA significantly increased its business from affinity groups and average revenues per adviser rose by nearly one-quarter to £122,000. Assets under management are starting to build up and the fees from these will begin to become more important. In 2017, pre-tax profit improved from £1.9m to £2.5m and net cash was £8.7m. The dividend was raised from 0.27p a share to 0.42p a share.
Scotland-based Springfield Properties (SPR) reported maiden interim results. Revenues were 10% higher at £54.8m and pre-tax profit was £3.1m, up from £2.6m. The fastest growth came from the affordable homes division. The private housing side is waiting for planning permissions for planned villages in Scotland but existing permissions mean that the second half has significant contracted revenues. Even though Springfield was quoted for a few weeks of the period it is paying a 1p a share interim dividend.
Saffron Energy (SRON) has asked for trading in its shares to be suspended because there have been changes to the proposed acquisition of south east Asian oil and gas assets. A supplementary admission document is likely to be required.
Gas and electricity supplier Flowgroup (FLOW) has secured £5m of additional funding from Palm Ventures and Lombard Odier Asset Management to provide seasonal working capital. Cost savings are on track but the market remains competitive.
Ultimate Sports Group (USG) has decided to stop marketing spending on the UltimatePlayer.me children’s sport platform due to disappointing take-up. There will be a £521,000 write-off relating to this platform. There was £130,000 in the bank at the end of 2017 and Ultimate has raised £537,500 at 5p a share, although this will require a capital reduction. Richard Bernstein is acquiring nine million shares and David Kyte the other 1.75 million shares. Eurovestech-boss Bernstein has been engaged to find a suitable business to acquire and a successful transaction would net him a fee of 1% of the value of the acquisition.
Fintech business TruFin (TRU) joined AIM on 21 February, when it raised £70m at 190p a share. The share price ended the week at 214p.
Stanley Gibbons (SGI) has secured a £19.4m investment from Phoenix UK Fund to shore up its poor balance sheet. This will leave Phoenix with a majority stake, but it will take out the RBS debt.
CCTV technology business Synectics (SNX) improved its pre-tax profit from £2.6m to £3m last year, despite strong comparatives in the key gaming sector in the previous year. Oil and gas improved its contribution but trading in transport was hit by the lack of new buses being bought by companies. Synectics expects flat pre-tax profit of £3m for the year to November 2018, due to additional development spending, but a sharp jump to £4m is forecast for next year.
Tristel (TSTL) has been hit by tough trading conditions in surface cleaners in the NHS and investment in gaining approvals have also held back profit. The international business goes from strength to strength and this helped interim pre-tax profit to grow to £2m. US EPA approvals for surface cleaners could be gained by May but then state by state approvals are required so revenues will not flow through until 2019. Approvals for endoscope cleaning products require FDA approval and will take longer.
Drilling results from the APTA deposit at the Anza project in Colombia that is 100%-owned by Orosur Mining Inc (OMI) have been positive. High grade gold mineralised intercepts currently cover a strike extent of 1.5km and a depth of 275 metres. Results are awaited on five more holes and six holes will be drilled on Charrascala deposit.
Kin Group (KIN) says it will not make an acquisition by 28 February so trading in the shares will be suspended. There are talks with potential acquisitions and £800,000 remains in the bank.
MAIN MARKET
London and Associated Properties (LAS) is selling the Brixton markets to Market Village for £37.25m in cash. This compares to book value of £24.5m. The net income is £1.2m a year. London and Associate Properties had net assets of £38m, which is equivalent to 44.5p a share, at the end of June 2017. The share price is at a one-third discount to the June 2017 even without any profit on the disposal and gearing should fall to below 100%.
Macfarlane Group (MACF) increased pre-tax profit by 19% to £9.3m on the back of a 9% increase in revenues. The profit growth came from the packaging distribution division with the manufacturing division making a lower contribution. The full year dividend was raised from 1.95p a share to 2.1p a share. The pension deficit has been cut from £14.5m to £11.8m.
BATM Advanced Communications (BVC) had a strong second half and 2017 revenues were much better than expected. EBITDA is expected to jump from $2.8m to $7m. The growth is coming from both the networking and biomedical divisions.
Precious stones explorer Shefa Yamim (SEFA) says that Macquarie University has confirmed the existence of moissanite coupled with titanium-rich corundum in its licence area volcanic rocks and this augurs well for the potential of the Kishon Mid-Reach project.
Andrew Hore
Andrew Hore – Quoted Micro 4 December 2017
NEX EXCHANGE
VI Mining is planning to join NEX this month. The Peru-focused miner is acquiring two gold mining assets in tandem with the flotation. VI will raise up to £10m in cash at 500p a share and issue a further £10m worth of shares as part of the initial payment, along with some of the cash, for the two mining assets at Rosario and Minaspampa. VI has debt facilities in place. There is a capital expenditure and working capital commitment of £30m for Minaspampa and the mine could be in operation by next August. Rosario requires £15m of capital spending and working capital and already has licences and infrastructure. Annual gold production of 83,720 ounces from the two mines could yield a $43.5m annual profit based on a $1,300/ounce gold price. That is expected to be the initial production and it could end up quadruple that level. Two tolling projects could also generate cash for the group and the first could be up and running in a few months time. VI would be valued at £535m at the flotation price. This is backed up by a Daniel Stewart estimated valuation of £557.8m. The board will retain 73% of the company. The plan is to move to the Main Market in 12 months or so. The free float will need to be increased in order for it to be at least 25% when the move is made.
NQ Minerals (NQMI) has published the competent person report on the Hellyer gold project in Tasmania. This indicates that the project has a NPV of $113.2m. The processing facilities are being refurbished and operations are expected to commence in 2018 following the approval of the environmental management plan.
Coinsilium Group Ltd (COIN) has acquired a 30% stake in Startup Token, which provides advice to start-ups undertaking token offerings. Coinsilium is paying £361,000 in cash and shares at 8.5p each. Coinsilium is also providing a six month loan of $100,000 that can be converted into a further 6.4% of Gibraltar-registered Startup Token.
IMC Exploration (IMCP) has started drilling on PL 3729 in County Clare, which adjoins the Kilbricken zinc deposit. A feasibility study has commenced on PL 3850 in County Wicklow. IMC’s partner Koza has completed an exploration targeting report on other licences and prioritised further exploration.
Ganapati (GANP) has agreed to supply online games to Bethard Group. Ganapati will initially supply eight games and then one each month.
Hearing and mobility products retailer DHAIS (DHAP) has delayed its figures for the year to June 2017 because it wants to ensure it has support from its main funder.
Welney (WENP) had a cash outflow of £19,000 in the year to June 2917 and most of that was covered by loans from related parties and a further £11,000 has been loaned since the year end. These loans will not be called in for at least 12 months. Net liabilities are £197,000. The board is assessing potential deals.
African Potash (AFPO) has entered into a joint venture with SG Inc to develop fertiliser opportunities in the Republic of Congo. A blockchain joint venture has also been announced with FinComEco Ltd and this will develop platforms for agricultural markets in Africa. There is a plan to offer microloans to farmers. The company intends to change its name to Block Commodities Ltd.
Forbes Ventures (FOR)
AIM
Pebble Beach Systems (PEB) continues to underperform and it is not likely to get the $1.75m it is still owed by xG Technology for the sale of Vislink. The broadcast software supplier requires its banks support and needs to appoint a new management team. Talks with potential bidders did not yield an offer. This year’s revenues will be slightly lower than last year
Versarien (VRS) has a strong balance sheet after the recent fundraising and it is generating interest for its Nanene graphene product. The carbide business has won a significant aerospace order. The 167% growth in revenues to £4.38m in the first half was mainly down to the acquisition of a plastics business. A US sales office has been established.
Mortice (MORT) reported strong revenue growth but cost pressures on a particular contract held back profit. The security and facilities management business reported a 17% rise in first half revenues to $106.3m. The contract is being sorted out and house broker finnCap still expects full year profit to improve from $5.4m to $7m.
Anti-microbial drugs developer Destiny Pharma (DEST) has secured a deal with former AIM company China Medical Systems Holdings Ltd (CMS), which is now listed in Hong Kong, for a £3m cash injection into the company and a strategic partnership that gives CMS rights to Destiny’s drug candidates pipeline in China and some other Asian countries. CMS will carry out research and development and the commercialisation of any drugs in its territories. Destiny will make a margin on manufacturing products and receive payments based on sales milestones.
Tri-Star Resources (TSTR) is investing a further $6m in its Oman joint venture. This is in the form of a mezzanine loan to the company where Tri-Star has a 40% stake. The interest rate is 15% and payable on redemption – the loan term is five years. The cash will help to finance the development of the antinomy roaster in Oman. The capital budget was recently increased to $96m.
Recruitment has started for a pharmacokinetic study into the Futura Medical (FUM) erectile dysfunction treatment, MED2002. This will help to determine dosages for a phase III study. The UK and Netherlands regulatory agencies have been supportive concerning a possible switch from prescription to over the counter.
Veltyco (VLTY) has yet again announced that its figures will be better than forecast. The online gaming marketing business says that profit is likely to be much higher than expected.
ECSC Group (ECSC) is the perfect example of how a share price can get carried away on the back of general news. The share price is one-quarter its peak after publicity about cyber security and hacking. Trading is in line with previously reduced expectations following cost cutting and the securing of two managed services contracts.
Belluscura has pulled its flotation after failing to gain the EIS/VCT approvals in time and because it could not get the valuation it wanted.
The founder of Focusrite (TUNE) and a relation have sold eight million shares at 315p a share. They still retain a 38.3% stake in the audio equipment supplier.
Active Energy Group (AEG) expects its Utah-based Coal Switch plant to be completed this month. The production capacity is five tonnes of the coal replacement fuel per hour. Once the plant is up and running and proves the viability of the process there should be other plants built in 2018. The plant is modular so it is easy to increase capacity.
Trading in the shares of Graphene NanoChem (GRPH) has been suspended ahead of the proposed acquisition of CG TekBuild, which is involved in modular buildings. The deal is dependent on £18.2m of debt being converted into shares. The proceeds of the sale of non-core activities will be used to pay other creditors. The company believes the acquisition will help it to apply it graphene technology in building materials.
ITM Power (ITM) has £20.2m of projects under contract and a further £22.4m in negotiation. The figure under contract is similar to two months ago but the under negotiations figure is one-third higher.
Defence and petrol stations structures supplier MS International (MSI) reported sharply increased interim profit from £610,000 to £1.64m as revenues increased by two-fifths to £34.6m. Net cash is £14.5m. Most of the growth came from the petrol station branding business and this more than offset the decline in profit from defence. The interim dividend was increased from 1.5p a share to 1.75p a share.
Precision optical components supplier Gooch and Housego (GHH) reported slightly better than expected full year figures. Revenues were 30% ahead at £112m and underlying pre-tax profit improved from £14.2m to £16.1m. Acquisitions helped to fuel significant growth in aerospace and defence. There was also increased demand from the subsea telecoms market and other industrial applications. The life sciences division still needs bulking up.
Timber supplier James Latham (LTHM) reported a 7% increase in interim revenues to £107.3m but a decline in margins meant that pre-tax profit was 12% lower at £6.7m. The interim dividend was unchanged at 4.5p a share and net cash declined to £11.6m due to capital spending. The pension deficit has fallen from £16.6m to £8.5m. A slight fall in full year profit to £13.4m is expected.
MAIN MARKET
Ingredients supplier Treatt (TET) is raising £21.6m at 410p a share to speed up its growth in the US and finance the relocation of facilities in the UK. The new facility will help to improve efficiency. In the year to September 2017, revenues were one-quarter higher at £109.6m and pre-tax profit improved by 46% to £12.9m.
Torotrak (TRK) has been unable to secure the finance it requires. The vehicle technology developer is considering selling its technology and IP or it may have to appoint an administrator.
Andrew Hore