Home » Posts tagged 'GUN'
Tag Archives: GUN
Quoted Micro 12 August 2024
AQUIS STOCK EXCHANGE
Quantum Exponential Group (QBIT) says potential investors have proposed a minimum investment of £1m at 1p/share. The investors have also agreed to pay the investment company £100,000 to cover costs since incurred since the proposed cancelation was announced. This will be repayable out of the proceeds of the investment when it is completed.
Marula Mining (MARU) is acquiring 80% of Kenyan mineral processing company Agarwal Metals and Ores, which owns the Kilifi manganese processing plant.
Flex Labs Inc (FLEX) is proposing to cancel its Aquis quotation and is holding a general meeting on 30 August. The plan is to seek a listing in Canada. The AI company joined Aquis last December at 6p/share. The share price halved to 0.75p last week.
Ormonde Mining (ORM) investee company TRU Precious Metals has appointed Ormonde Mining technical adviser Steve Nicol as chief executive. The 36.2%-owned TRU Precious Metals is exploring for gold and copper in Canada. Another investee company, Peak Nickel, has commenced a drill programme in Aberdeenshire. There will be a minimum of 1,000 metres drilled.
Gunsynd (GUN) remains on Aquis for a few more days and it has entered a farm-in agreement with Pinwheel Resources over acreage in Canada. It can earn 100% of Falcon Lake U-Co-Cu project and Bear Twit VMS project for a total outlay of £200,000 in cash and shares.
IntelliAM AI (INT) has secured a contract extension with a global alcohol company. The company’s consulting services will be broadened to 35 maltings sites in the UK. The contract value is a minimum of £100,000.
Walls and Futures REIT (WAFR) has been trying to attract institutional investors involved in infrastructure and property, but the General Election led to delays. The process will be restarted at the end of the summer holidays. The scale of any potential fundraising will be larger than previously expected.
Oberon Investments (OBE) raised £2.5m at 3.5p/share and that will help to accelerate growth. First quarter revenues increased by 90% to £2.54m and this came from all the divisions. Like-for-like growth of more than 30% is being targeted for the full year.
Tectonic Gold (TTAU) has sold its 10% stakes in diamond miner Deep Blue Minerals and heavy mineral sands miner Whale Head Minerals to AIM-quoted Kazera Global (KZG). A potential Western Australia gold acquisition opportunity is being assessed.
Investment Evolution Credit (IEC) has raised £100,000 at 20p/share.
Ananda Developments (ANA) has moved to the Apex segment of the Aquis Stock Exchange.
AIM
Hargreaves Services (HSP) reported a fall in full year pre-tax profit, but it was slightly higher than expected at £16.9m. Pre-tax profit was lower because of the reduced contribution from the German HRMS business, although it did have a much better second half. This recovery should continue into the current year. EU sanctions on Russian pig iron has helped prices improve, which is good for the HRMS recycling operations. The enhanced dividend will continue and should at least be maintained at 36p/share. NAV is 583p/share.
Customer engagement and intelligent automation systems supplier Netcall (NET) is spending an initial £9.6m for Govtech, which has a focus on the public sector, and this will be earnings enhancing this year. Govtech helps local authorities to automate council transactions so they can be done more quickly and efficiently. Netcall has local authority clients, and its coverage of UK councils will increase from 26% to 34%. Netcall had £33.7m of net cash at the end of June 2024. Even after the acquisition Netcall could still have £31m in cash at the end of June 2025.
Insurance premium finance and professional funding provider Orchard Funding (ORCH) says its largest customer has gone into administration. Orchard Funding has lent £16.7m to Insure That clients out of a total lending book of £66.8m at the end of June 2024. Management is assessing the recoverability of the Insure That loans. This comes six weeks after a positive trading statement.
Cash shell Earnz (EARN) is making its first acquisitions and raising up to £4m at 7.5p/share. It is buying energy services companies Cosgrove & Drew, which provides public sector project work and compliance services for heating and plumbing, and heating installation and maintenance services provider South West Heating Services. Earnz chair Bob Holt has a stake in Cosgrove & Drew, which will cost up to £196m. In 2023, it generated revenues of £9.1m and lost £832,000. South West Heating Services will cost up to £1.15m and it made revenues of £1.1m and a pre-tax profit of £275,000 in the nine months to March 2024. The focus is cross-selling of services and organic growth.
Ocean Harvest Technology (OHT) has published positive data from trials of OceanFeed Swine. Adding this feed ingredient to the diet of pregnant sows results in more piglets being born and improved milk quality in the sows. Revenues per sow increased by $24/year. More than $100bn/year is spent on swine feed.
Natural resources data analyser and provider Getech (GTC) has raised £1.5m at 2p/share and could generate up to £200,000 more from a retail offer. This will improve the balance sheet ahead of the planned sale of Nicholson House. The cost base is being reduced. There will be investment in the sales and business development teams, as well as in machine learning technology development.
Revolution Bars (RBG) has received court approval for its restructuring plan. This means that some bars can be closed, and others will have rent reductions. There will be 65 bars and pubs left in operation. This should improve annualised EBITDA by £3.8m.
Oil and gas company Prospex Energy (PXEN) raised £3.34m via a placing and subscription at 6p/share. There was also an oversubscribed retail offer that raised £859,000. Prospex Energy wants the cash to acquire an interest of 7.5% in the Vlura producing gas field that generates more than four-fifths of the Spain’s gas production.
Hermes Pacific Investment (HPAC) plans to leave AIM. The share price slumped to 40p. The investment company found it difficult to secure suitable investments in the financial services sector in south east Asia and changed into a property investor in 2022, but only one property has been acquired. There is a low free float, and the shares are trading at a large discount to the September 2023 NAV of 147p/share.
Oil and gas company Bowleven (BLVN) plans to leave AIM and 58.3% shareholder Crown Ocean Capital is offering shareholders the chance to sell shares at 0.225p each up until 11 September. This offer is dependent on the departure from AIM being agreed at a general meeting on 28 August. Management believes that being private will give the company more flexibility and reduce costs.
Floorcoverings manufacturer Airea (AIEA) was hit be a slowdown in second quarter sales. The decline of 5.6% was slightly better than for the market as a whole. Interim sales are lower with international revenues 22% lower. July has been stronger and new product launches are planned. There has been an increase in inventory because of the slow sales. The interims will be announced on 26 September. The full year expectations have been reduced.
Extended reality technology developer Engage XR (EXR) says interim revenues reached a record of €2.2m with the main growth coming from licence income. Net cash is €5.5m at the end of June 2024. Management still believes that Engage XR can move into profitability during 2025 without raising additional cash. Full year revenues of €5.3m and net cash of €3.7m are forecast.
EnergyPathways (EPP) says the retention of the decarbonisation investment allowance in the energy profits levy is a positive signal. This should be helpful for the company’s MESH Marram Energy Storage Hub) project. This part of the development of the Marram gas field in the UK Irish Sea.
Tan Delta Systems (TAND) has entered into a product agreement with an engine manufacturer to develop a sensor to monitor coolants and water-based hydraulic solutions. The initial value of the agreement is £200,000, but it could increase to £2m.
Seed Innovations (SEED) has used some of its cash to buy £250,000 of shares in the recent fundraising by AIM-quoted Pantheon Resources (PANR), which is exploring for oil and gas in Alaska. The placing was at 17p/share and the current share price is 18.18p. There is still £3.5m in cash left.
MAIN MARKET
Restaurants operator Hostmore (MORE) says interim like-for-like sales have declined 10% and this accelerated to a 23% decline in July. The first half loss has been reduced. Borrowings are likely to exceed the current debt facilities. Management continues to work on the acquisition of master franchise owner TGI Fridays Inc. The plan is to sell corporate stores to new franchisees and there are agreements to sell stores for more than $40m. A review of options if the acquisition does not happen is being undertaken.
Alkemy Capital Investments (ALK) has updated the market on progress with the Tees Valley Lithium refinery project. A collaboration with Geothermal Engineering intends to develop integrated supply chains in the UK. Project funding partners have been shortlisted, while overheads are being reduced.
Andrew Hore
Quoted Micro 29 July 2024
AQUIS STOCK EXCHANGE
Good Life Plus (GDLF) reported its figures for the 16 months to January 2024. This includes a full contribution from the core luxury prize draw business and a few months of the shell it reversed into. Revenues were £2.39m and the loss was £3.98m, although that included costs of the reversal. The underlying business is losing money as it builds up the subscriber base. The recent £2m fundraising was after the balance sheet date, so there is plenty of cash to continue to add players. The number exceeds 30,000 and continue to rise. There are potential deals with media partners that could reduce the costs of subscriber acquisition by providing access to new people and only paying if they sign up to the Good Life Plus prize draws.
Interim figures of Arbuthnot Banking (ARBB) show a decline in interim profit as net interest rate margin was reduced from 6.1% to 5.2%. Pre-tax profit fell from £26.4m to £20.8m. Asset based lending profit did improve. Tangible NAV was 1396p/share.
Broker and investment manager Oberon Investments Group (OBE) increased revenues by 50% to £7.58m in the year to March 2024. There was still a loss of £2.88m, even after the £318,000 gain on a stake disposal. Additi9nal hires mean that overheads were much higher. NAV was £23.9m. Corporate finance income was slightly lower with the main growth coming from investment management. There has been a strong first quarter this year and signs of improving business. Like-for-like growth should be more than 30% this year.
Invinity Energy Systems (IES) has opened its manufacturing facilities in Motherwell. This will increase capacity for its energy storage technology to more than 500Mwh/year.
Rathbones has a 5.59% stake in Walls and Futures REIT (WAFR).
Stephen Bamford has reduced his stake in SulNOx Group (SNOX) to less than 3%, following a transfer of shares to his children. Gunsynd (GUN) executive director Donald Strang bought one million shares at 0.1215p each.
AIM
FRP Advisory (FRP) is benefiting from strong restructuring services demand and its corporate finance operations are trading better than many of its peers. In the year to April 2024, revenues were 23% higher at £128.2m, while pre-tax profit improved from £24.1m to £33.7m. The dividend was raised to 5p/share. Net cash is £29.7m. Since the year end, two acquisitions have been made: Southampton-based finance provider Hilton-Baird and Cardiff-based Lexington Corporate Finance. Even so, net cash could improve to m£32m by April 2025.
Order intake has weakened at scientific instruments supplier Judges Scientific (JDG) and there is no sign of this changing in the near term. There have also been delays of some projects. Organic revenues declined 3% in the first half. Demand from China has been weak. Some delayed work will come through in the second half. Even so, the full year pre-tax profit forecast has been cut by 10% to £30.3m, down from £31.7m last year.
Prospex Energy (PXEN) has secured a ten-year extension of the licence concessions for the El Romeral project in Spain. It can be extended for another ten years to 2044. Prospex Energy is trying to gain permission to drill more wells to provide gas to El Romeral so its electricity production can increase by one-third.
Shield Therapeutics (STX) chief executive Greg Madison is stepping down and non-exec Anders Lundstrom will take over on an interim basis. Iron deficiency treatment ACCRUFeR generated revenues of $6.9m in the second quarter, which was 69% higher than the previous quarter. This is a combination of more prescriptions and higher selling prices. The interim revenues are $11m. Cash is still flowing out of the business.
Energy supplier Yu Group (YU.) increased revenues by 60% in the first half and cash has increased to £86.8m. Lower prices mean that monthly average bookings have declined by 9% and that will hit operating margins. These factors mean that SP Angel is keeping its full year pre-tax profit forecast at £44.5m even though interim revenues grew much faster than expected.
Inspiration Healthcare (IHC) has finally signed the £3.3m Middle East contract it has been waiting for. The equipment should be shipped in the period to year-end in January 2025. This covers the majority of the revenues needed to be gained to achieve the full year forecast revenues of £41m. Earlier in the week, BGF Investment Management increased its stake to more than 21%.
Hydrogen and fertiliser projects developer Atome (ATOM) has signed heads of terms for a fertiliser offtake agreement with Yara. This covers the Villeta project in Paraguay. This will help to achieve full financing of the project by the end of 2024. The Villeta facility could produce 260,000tpa of fertiliser. Yara is the largest fertiliser and ammonia trader and the fertiliser produced at Villeta should be sold at a premium price.
Zephyr Energy (ZPHR) has completed the initial phase of testing of the State 36-2R LNW-CC well in the Paradox Basin, US. Peak production rates were 1,350 barrels of equivalent/day even though the well was choked back and constrained. There is a higher condensate yield than nearby wells and this will be attractive to Utah refineries. There is little water production. However, the natural fracture network may be partially obstructed. Zephyr Energy will try to remove drilling mud emulsions that could be blocking the fracture and that will cost a few hundred thousand dollars.
Healthcare services provider Totally (TLY) made a small loss in the year to March 2024, but it is expected to return to profit this year even though revenues are set to continue to decline. Annualised cost savings of £3.5m have been made. There have been delays to tender activity around the General Election, but this is changing. The investigation into the NHS should report in September and this could provide opportunities.
Aptamer (APTA) is raising £2.83m at 0.2p/share, which was a large discount to the market price. The cash is required to get the full potential from its Optimer binder technology. There are relationships with the top ten pharma companies and there is potential for licensing the technology in the next few years. The fixed cost base will be reduced from £3.5m to £2.9m.
Brighton Pier (PIER) has been hampered by poor weather. There was a 29% decline in footfall on Brighton Pier itself so this year’s revenues will be lower than expected. The other three leisure businesses are trading in line with expectations. Cavendish expects a 2024 loss after tax of £700,000.
Architectural and construction software provider Eleco (ELCO) generated organic growth of 12% in the first half. Overall interim revenues were 21% higher at £16.3m. Annualised recurring revenues are £25.8m. Cavendish is maintaining its full year pre-tax profit forecast at £4.8m. Profit has been held back by the move to SaaS-based income, but as this process matures it should accelerate.
Braveheart Investments (BRH) has increased its stake in Image Scan (IGE) from 5.21% to 7.22%,
MAIN MARKET
Thalassa Holdings (THAL) has taken a 9.94% stake in Surgical Innovations (SUN) and the share price recovered 23.1% to 0.8p, which values the surgical instruments manufacturer at £7.5m. Earlier this year, Thalassa chairman Duncan Soukup made initial restitution payments due to a loss on an investment in Tappit Technologies and he will pay up to £1.5m more. This means that Thalassa has cash to invest. Thalassa had a book value of 116p/share at the end of 2023.
Financial management software developer Aptitude Software (LON: APTD) is going through a period of transition. The current core product is AccountancyHub, but the newest product is Fynapse. The plan is to transfer one-third of the AccountancyHub customers to Fynapse by 2027, while also adding new clients. There is less need for complicated implementation processes with Fynapse and much of that work is done by partners. That is why those revenues have declined in the latest period and total interim revenues fell from £37.5m to £35.3m. Annualised recurring revenues are £46.7m. There was a cash outflow in the first half, but net cash should recover to £25m by the end of 2024. Pre-tax profit improved from £1.75m to £2.5m.
Andrew Hore
Quoted Micro 22 July 2024
AQUIS STOCK EXCHANGE
M3 Helium, where Voyager Life (VOY) has an option to acquire the company, says two samples from the Rost well at Fort Dodge in Kansas showed 5.1% helium. Two other samples were above 4.8% helium. These are highly commercial levels.
Marula Mining (MARU) is acquiring Northern Cape Lithium and Tungsten, which holds prospecting rights over land in the Northern Cape province in South Africa. This is north of the Blesburg lithium and tantalum mine.
Substrate AI (SAI) increased interim revenues by 256% to Euro9.09m and it moved from loss to positive EBITDA.The figures were slightly lower than forecast.
Hydro Hotel, Eastbourne (HYDP) increased interim revenues from £1.8m to £1.96m and reduced its loss from £171,000 to £77,000. There was a decrease in repair costs.
Ormonde Mining (ORM) investee company TRU Precious Metals Corp says its exploration programme at the Golden Rose project in Newfoundland is underway. The programme will investigate copper, nickel and zinc.
ProBiotix Health (PBX) nearly doubled interim revenues to just above £1m and reduced the loss. A US partner has obtained positive clinical results for IBS and antibiotic recovery for a probiotic containing the company’s LP (LDL). The share price rose 7.14% to 3.75p.
Automotive electrification Equipmake (EQIP) revenues are improving, but the loss has increased. In the year to May 2024, revenues were 60% ahead at £8.1m. There was £2.5m in cash at the end of May 2024. There are plans to reduce costs and focus on higher margin technology. The share price increased 5.56% to 4.75p.
Inqo Investments (INQO) has invested in Flybox Budongo, which has developed a modular containerised system to produce Black Soldier Fly eggs and five-day old larvae that can convert organic waste into animal feed.
Valereum (VLRM) says blockchain consulting firm Antier will collaborate in the development of the V-Wallet that will form part of the VLRM Market’s ecosystem. This should be launched later this year and will enable uses to buy, sell and hold multiple cryptocurrencies. The share price fell 13.3% to 3.25p.
Gunsynd (GUN) says investee company Metals One has published a JORC inferred mineral resource of the P5 area of the Finland – Black Schist project of 29Mt. There is 1.8Mt attributable to Gunsynd, which owns 6.25% of a subsidiary of Metals One, and that company has an option to buy back the stake.
Christopher Potts reduced his stake in Shortwave Life Sciences (PSY) from 11.65% to less than 3%.
AIM
A new sensor contract for security technology provider Spectra Systems (SPSY) has led Zeus, the new broker following the takeover of WH Ireland’s broking business, to upgrade its forecasts. The contract is with an existing central bank customer. This was expected, but it is likely to be more profitable than anticipated. The 2024 pre-tax profit forecast is raised from $10m to $12m and the 2025 figure increased from $14m to $25.5m. However, the 2026 figure has been cut from $18m to $16m.
Building products manufacturer Alumasc (ALU) has done better than expected in the year to June 2024. Organic growth was more than 6%, even though the construction market fell 2%. Cavendish has raised its pre-tax profit estimate from £12m to £12.6m, it has also edged up the 2024-25 forecast from £13.1m to £13.5m. All three divisions have done better. Net debt is £6.9m and could halve by next June.
Chain and transmission equipment manufacturer Renold (RNO) beat upgraded full year expectations and there is another upgrade for the year to March 2025. Last year, pre-tax profit improved from £18.6m to £22.1m even though there was a small decline in revenues. Efficiency improvements are increasing margins. Net debt has fallen to £24.9m after acquisition payments and share buy backs. There was £36m in cash generated from operations. A 0.5p/share dividend has been declared. The 2024-25 pre-tax profit forecast is £22.8m.
Intelligent Ultrasound (IUG) rose on the back of the news that it is selling its Clinical AI operations to GE for £40.5m. The consideration is equivalent to 12.4p/share. So far, £12.2m has been invested in the development of AI. There are plans to return a substantial amount of this cash to investors. This deal does not include the NeedleTrainer and NeedleTrainer Plus products or the simulation business. The remaining business had annual revenues of £10m last year. Lower simulation sales meant that the latest interim revenues fell from £6.1m to £5.3m. That includes £1.5m from Clinical AI, compared with £2m for the whole of the previous year.
Vela Investments (VELA) has subscribed for £300,000 of convertible loan notes from fully listed Liberia-based gold explorer Hamak Gold (HAMA) by issuing 2.42 million shares at 0.012375p. This is an opportunistic, short-term investment because it does not fit the core investment policy. The loan notes are redeemable on 16 July and the annual interest rate is 10%. The conversion price is the lower of a 25% discount to the average market price for five days prior to conversion and 3p/share. The Hamak Gold share price is 1.075p. Hamak Gold hopes to take advantage of a narrowing of the share discount to the NAV of Vela Technologies, which is currently around two-thirds.
Maritime AI technology services provider Windward (WNWD) sparked a second upgrade of forecast revenues for this year following its interim trading statement. Interim revenues were 37% ahead at $17.6m. Net cash has fallen from $17.3m to $13.8m over the six-month period.
Caspian Sunrise (CASP) shares have returned from suspension following publication of 2023 accounts. Average oil production fell 16% to 1,800barrels/day last year. Current aggregate production is 2,300 barrels/day from the BNG contract area, which is being sold for up to $88m, which is above the previous expectation of $83m. Production is expected from Block 8 and West Shalva later this year. The board will consider special dividends and share buy backs.
Surface Transforms (SCE) has recovered from its recent all time low after it confirmed revenues guidance of £17.5m for 2024, although the figures will be second half weighted. Interim sales were £4.6m. Pre-production engineering revenues will be recognised in the second half. Capacity is being increased. The ceramic brakes technology company could become cash generative during 2025.
Kyrgyzstan miner Chaarat Gold Holdings (CGH) is the latest company to announce the intention to cancel its AIM quotation. This is a condition of a recapitalisation proposal that will more than halve existing liabilities to less than $20m. The maturity date of the convertible loan will be extended from July 2024 to December 2025. There will also be an additional facility of $5m that can be drawn down. The $550,000 of salary owed to former executive chairman Martin Andersson will be paid in shares. The AIM departure is expected to be on 16 August.
Destiny Pharma (DEST) is leaving AIM to make it easier to fund the XF-73 post-surgical infection prevention treatment through access to private capital. It has been difficult to secure a commercial partner for XF-73. Destiny Pharma needs to find funding for a phase 3 study.
Publishing software and services provider Ingenta (ING) has won three new contracts. Two of these are follow-on contracts with existing customers. These are multi-year contracts worth mor than £500,000. The largest contract is a three-year deal to migrate, host and support an existing customer’s Vista deployment onto Ingenta’s dedicated infrastructure. This worth £1.4m over three years.
MAIN MARKET
ACG Acquisition (ACG) has agreed the reverse takeover of the Gediktepe polymetallic mine in the Balikesir province of Turkey from conglomerate Calik Holding. The mine is producing gold and silver, and production of copper and zinc will start in 2026. The deal is valued at £290m in cash and shares.
Tertre Rouge Assets (TRA) has not been able to raise the funds for its planned acquisitions. The company plans to delist on 15 August.
Andrew Hore
Quoted Micro 15 July 2024
AQUIS STOCK EXCHANGE
Cadence Minerals (KDNC) is raising £750,000 at 2.5p so that it can provide funding for the Amapa iron ore project. This will be spent on testing the 67.6% green iron product flow sheet to pre-feasibility study level. The pre-feasibility study will then be revised. Earlier in the week, an updated study of the Amapa iron ore project, where Cadence Minerals owns 34.2%, shows process plant optimisation can be improved. The mine life of 15 years can have a throughput of 13Mt/year of iron ore. Cash cost is reduced to $33.50/t. The NPV10 for the project has increased by one-fifth to $1.1bn.
VSA Capital (VSA) reported a slump in full year revenues from £4.36m to £1.89m and there was a loss of £2.4m. There was a £1.67m loss on investments due to the reversal of a transaction with Silverwood Brands (SLWD). There was cash of £229,000 at the end of March 2024 and net cash of just over £12,000. Net assets are £1.66m. The £56m fundraising for Invinity Energy (IES) happened after the year end. The company is working on another large deal.
Oscillate (MUSH) has entered into non-binding heads of terms for the acquisition of Quantum Hydrogen Inc. The bid target has exploration rights over 60,000 acres in the state of Minnesota. There is a 60-day due diligence period. Richard and Charlott Edwards have reduced their stake in Oscillate from 8.31% to 7.6%.
Marula Mining (MARU) has acquired a 51% interest in the Kruisriver cobalt project in South Africa for an initial £100,000 in shares at 10p each and a further £100,000 on completion of due diligence. The mine used to produce cobalt. Marula Mining will fund an updated bankable feasibility study. A monthly management fee of £4,300 will be paid to the seller and after 12 months or less a further £200,000 in shares and $1.7m in cash will be payable. Marula Mining is also acquiring the Kilifi manganese processing plant in Kenya. It intends to buy mining operations to supply it.
Gunsynd (GUN) has decided to leave Aquis and it plans to acquire a 100% stake in the Falcon Lake uranium, copper and cobalt project and the Bear-Twit VMS project in Canada. The consideration is £200,000 in shares and cash. It will also commit £100,000 to work programmes. The last day of dealings on Aquis will be 9 August.
Skin treatments developer Incanthera (INC) has received a second Skin + CELL production order of 250,000 units from Marionnaud AG. This will be delivered before the end of March 2025. Total projected revenues for both orders are more than £10m.
Shortwave Life Sciences (PSY) has received a positive response from the PCT examining authority acknowledging its patent claims for its drug delivery platform for psychedelic-based drugs. More than nine million shares have been issued as deferred consideration for the acquisition of Shortwave Pharma Inc.
Quantum Exponential Group (QBIT) is still talking to a potential investor and there have been indications of interest from others. These discussions have been going on for weeks, but management believes that they have potential for a positive conclusion.
Software developer IntelliAM (INT) has secured a funding award of £263,000 from DIF Lighthouse Fund. This is for research into the application of AI in lubrication analysis. A machine learning model will be created. Gresham House Asset Management holds 23.5% of the company.
United General is investing €1m in Substrate AI (SAI). Jonathan Belliss has increased his stake in Hot Rock Investments (HRIP) from 3.4% to 15.5%. Coinsilium Group (COIN) chief executive Eddy Travia and chairman Malcolm Palle each bought 300,000 shares at 1.67p each. Shepherd Neame (SHEP) non-executive director George Barnes bought 1,000 shares at 666p each. Tap Global Group (TAP) chief executive Arsen Torosian bought 12.25 million shares at 0.5p each.
EPE Special Opportunities (EO.P) had net assets of 246.28p/share at the end of June 20204.
AIM
Rosebank Industries (ROSE), which was set up by founders and management of FTSE 100 index constituent Melrose Industries, joined AIM on Thursday 11 July. Just like Melrose Industries, Rosebank Industries has started out on AIM as an investment company seeking a large initial acquisition. The plan is to identify underperforming industrial and manufacturing companies, acquire them and improve their performance. Rosebank Industries raised £50m at 250p/share and the share price soared on the first day and the momentum continued on Friday. The share price jumped to 675p.
Trading is in line with expectations at production machinery supplier Mpac (MPAC). Sales are likely to increase by 16% in the first half of 2024 and operating profit could nearly double. That is partly due to a weak first half in 2023. The order book is valued at £71m. New customers are being won with the Americas doing well.
Market research firm System1 Group (SYS1) has provided a first quarter update one week after publishing 2023-24 results. All geographic regions are growing, and group sales are 53% ahead of the first quarter of the previous year. This is a record quarterly figure. The company appears well on course to improve full year pre-tax profit from £3.1m to £4.4m.
Property services provider Kinovo (KINO) has almost sorted out its problems with former subsidiary DCB following the collapse of the buyer. The total liability is £12.9m with the final site set to be completed within weeks. That is a figure before any cash that could be recoverable. This could reduce the figure by more than £2m. Most of the cash has already been paid and the final amount of £2.2m will be paid over 18 months. In the year to March 2024, Kinovo revenues improved from £62.7m to £64.1m even though a private sector renewables contract worth £3.6m/year was not renewed by choice. Free cash flow was £7.2m and the DCB outflow was £7.4m.
In the year to March 2024, TPXimpact (TPX) revenues increased from £69.7m to £84.3m, while pre-tax profit improved from £800,000 to £1.8m. Disposals and reduced working capital meant that net debt fell from £17.5m to £7.1m. There is no dividend and that is likely to continue to be the case. The debt facility is £25m and lasts until July 2026.
Driving safety technology developer Seeing Machines (SEE) has bought Asaphus Vision, a machine learning and AI technology developer, for up to $6m from automotive components supplier Valeo and secured a collaboration agreement. The deal adds IP to the group and three ongoing automotive programmes. There is also a new Berlin base that will help to boost European business.
Communications and power products supplier Solid State (SOLI) reported a jump in full year pre-tax profit from £10.8m to £15.6m, but this level of profit will not be maintained this year. There was strong demand in the systems division and a £10m order was delivered earlier than expected.
Legal services provider Knights Group Holdings (KGH) reported figures for the year to April 2024 showing pre-tax profit improving from £11.5m to £14.8m and the total dividend was raised to 4.4p/share. This year has started well with residential property business recovering and net debt should reduce.
Investment company Mindflair (MFAI) was given a boost by the acquisition of Landvault by AI company Infinite Reality. Landvault is valued at $450m in shares and is part of the portfolio of Sure Valley Ventures Fund, where MindFlair holds13%, plus a further 5.3% via its stake in full listed Sure Ventures (SURE). The fund owns 7% of Landvault and the valuation of the stake is $6m, which is a 470% increase on book value at the end of 2023. That suggests that MindFlair’s share is nearly $1.1m.
Biome Technologies (BIOM) is still suffering from delays in orders at its bioplastics division and technical validations may not be finalised until later in 2024. Also, the coffee packaging market has weakened. In contrast, there should be significant revenues from the RF Technologies division. Overall revenues will be well below expectations. A small loss is expected for 2024. Additional working capital may be required.
Business recovery services provider Begbies Traynor (BEG) reported an improvement in pre-tax profit from £20.7m to £22m in 2023-24 as expected. There is organic growth as well as contributions from acquisitions.
Employee benefits and insurance provider Personal Group Holdings (PGH) is selling Let’s Connect, which it acquired ten years ago, at well below the purchase price. In 2014, Let’s Connect was acquired for an initial £6m. The Perkbox Vivup Group is paying £2m for technology salary sacrifice business Let’s Connect.
Demand for fixed interest fund has pushed up the assets under the management of Premier Miton (PMI) by 8% to £10.6bn. There has also been a more recent recovery in funds inflows for international equity funds. Multi-asset funds are less appealing to investors.
TV programmes producer Zinc Media (ZIN) has secured 2024 revenues of £28m, which is lower than the same time last year. There have been delays to signing deals, so that could be a timing issue. Improving TV advertising revenues could reduce the constraints on budgets and increase activity in the second half. Singer is maintaining its 2024 forecast revenues at £41m. The corporate video and branded content business has been restructured and costs reduced.
Pit optimisations at the Dokwe gold project in Zimbabwe, recently acquired by Ariana Resources (AAU), have increased measured and indicated resources by 16%. Dokwe could produce 75,000-100,000 ounces of gold/year for more than a decade. A revised pre-feasibility study should be published in a few months. The previous study suggested a post-tax NPV10 of $160m.
Oracle Power (ORCP) says drilling results from the Northern Zone project in Western Australia has intersected gold mineralisation to the north and south of the maiden resource. There is shallower supergene gold mineralisation than anticipated. Further drilling is planned to the north east.
Crimson Tide (TIDE) shares declined after Ideagen decided not to bid.
MAIN MARKET
Packaging manufacturer and distributor Macfarlane Group (MACF) has made another earnings enhancing acquisition. It In 2023, pre-tax profit was £1.3m. This deal will broaden the scope of the group’s protective packaging operations.
Creightons (CRL) has impaired the valuation of skincare company Emma Hardie, acquired for £6.2m, by £4.5m. Results will be published on 18 July.
Metals X has taken a 22.6% stake in First Tin (1SN), having acquired the shares from Clara Resources. Metals X will also subscribe for 11.5 million shares in the £2.1m fundraising at 4p/share.
Andrew Hore
Quoted Micro 1 April 2024
AQUIS STOCK EXCHANGE
Incanthera (INC) has published an update on its distribution deal with Marionnaud. The first order for Skin + CELL products will generate revenues of £2m with 50,000 bottles of skin cream to be supplied for sale in Austria and Switzerland. A second order will be even bigger. The management projects revenues of £10m for the year to March 2025 and this would make it profitable. The range is being increased to five products and they are all part of the initial launch. Revenues could grow to £33m the following year. There is potential for licence deals in other countries.
Watchstone Group (WTG) says a subsidiary’s VAT appeal was dismissed even though it satisfied four out of five elements. A decision will be made on whether to appeal the judgement.
TruSpine Technologies (TSP) intends to issue a conversion notice to loan note holders. The conversion price is a 130% premium to the share price prior to the convertible loan note approval by the directors. A £200,000 debenture has been used to subscribe for convertible loan notes. Geoffrey Miller has increased his stake from 6.88% to 7.24%.
Quantum Exponential Group (QBIT) has announced a further adjournment of its a general meeting to gain shareholder approval for leaving Aquis. Investors have approached the quantum technology investment company and offered to make a substantial investment. Stuart Woods has stepped down from the board.
Cadence Minerals (KDNC) investee company European Metals Holdings (EMH) says that the Cinovec project in the Czech Republic is in the process of completing a definitive feasibility study, but it will not be completed in the first quarter. There is potential to improve the lithium processing. Cadence Minerals has increased its stake in the Amapa iron ore project in Brazil to 34%. A study should reduce costs and improve productivity of the proposed mine.
S-Ventures (SVEN) increased interim revenues from £8.4m to £9.6m but reported a higher loss from continuing operations. The bakery business was profitable, but this did not offset losses and impairment costs for other businesses. There is no further news on the proposed sale of operations to AIM-quoted Riverfort Global Opportunities.
KR1 (KR1) had net assets of 134.6p/share at the end of February 2024. There was income generated of £1.63m.
Arbuthnot Banking Group (ARBB) increased its pre-tax profit from £20m to £47.1m and the total dividend was raised from 42p/share to 46p/share. Bad debts were lower than forecast. NAV is 1547p/share. The profit is likely to fall this year.
Global Connectivity (GCON) is amending the terms of warrants issued when it floated and extending them by two years to 20 April 2026. The exercise price is being reduced to 1.5p. Management is exploring potential investments.
Marula Mining (MARU) has commenced exploration at the Larisoro manganese mine in Kenya.
Valereum (LON: VLRM) has raised £300,000 at 6p/share from its chairman and is planning a larger fundraising in the third quarter of 2024.
Jenny Hanlon has been appointed as chief executive of brewer Adnams (ADB). She is currently finance director.
Tap Global Group (TAP) generated trading payment volumes of £181.6m in 2023. That generated revenues of £2.02m, but the loss was still £1.07m.
EPE Special Opportunities (EO.P) had net assets of 324p/share at the end of January 2024. There was £15.3m in cash offset by £4m in loan notes repayable on 23 July.
Gunsynd (GUN) investee company Aberdeen Minerals is raising £3m at 8.5p/share from Central Asia Metals with a further £2m that could be raised from the exercise of warrants at 11p/share. This deal requires regulatory approval.
Lift Global Ventures (LFT) investee company Trans-Africa Energy has received funding of £12m from an African investor. The first energy infrastructure investment is in Ghana. Lift Global Ventures’ core investor relations business generated cash in the first half, although there was a cash outflow for the group as a whole.
Aiden Keegan has been appointed chief executive of Cooks Coffee Company (COOK).
Philip Blows reduced his stake in Supernova Digital Assets (SOL) from 10.6% to 7.98%. There was £68,000 in the bank and £1.95m in investments at the end of October 2023. NAV was £2.93m.
Daniel Thwaites (THW) director RAJ Bailey bought 15,000 shares at 71p each.
AIM
Marine technology developer Windward (WNWD) has cut its loss and is heading towards profitability. The 2023 revenues were $28.3m, up from $21.6m. Windward started 2023 with an annual contract value of $25.5m and that has risen to $34.5m, while the 2024 forecast revenues have been edged up from $34.5m to $35.1m. Requirements for tracking cargo and ensuring that sanctions are complied with are helping to increase demand, particularly from commercial clients. Commercial revenues increased to 30% of the total for 2023, but government revenues are also growing.
Grocery distributor Kitwave Group (KITW) has made its latest acquisition, and this will be earnings enhancing. Total Foodservice Solutions is a food wholesaler with two depots based in the north of England. The customer base includes pubs, restaurants, universities and care homes. The gross cost is £21m and that is reduced to £17m when cash in the business is taken into account.
Strong growth at the Billi filtration systems helped Strix (KETL) have a better second half, but the limited recovery in kettle controls and lower consumer goods sales meant that pre-tax profit was slightly lower at £21.9m. There is no dividend. There should be an improvement in profit this year, but it will still be well down on the 2021 figure. Net debt was £83.7m and could fall below £79m by the end of 2024.
Good Energy (GOOD) had a strong performance in 2023 due to high energy prices, but 2024 will not get that benefit and energy supply profit will fall sharply. In 2023, pre-tax profit doubled to £5.7m, but the 2024 forecast has been downgraded from £8.4m to £6.7m. The energy services business, including solar and heat pump installation, is being built up and it will become a more significant profit contributor over the next couple of years making the group performance less volatile.
Floorcoverings manufacturer Airea (AEIA) increased sales of its Burmatex-branded product by 14% to £21.1m. Pre-tax profit was flat at £1.4m, although it included a small valuation gain in the latest year. Higher finance costs relate to the pension scheme and operating profit increased. The net asset value is £14.9m, including net cash of £3.4m. Strong cash generation can cover the £5m investment in new capacity and a 10% increase in the dividend to 0.55p/share. The new capacity should be ready in early 2025 and will enable Airea to take advantage of own brand opportunities for clients.
Revolution Bars Group (RBG) is assessing its options that include restructuring the business or selling all or part of the operations. There are currently no bidders. Luke Johnson is involved in talks concerning a fundraising.
Semiconductor designer CML Microsystems (CML) is being hampered by lower than expected shipments as clients reduce stocks and this is continuing into the new financial year. In the year to March 2024, revenues will be slightly lower than expectations at £23m and underlying EBITDA will be £6.4m, compared with a forecast £6.8m, due to more sales of lower margin products. Full year pre-tax profit will be just under £3m. The balance sheet remains strong with net cash of nearly £18m. The full benefits of the Microwave Technology acquisition, which has performed well, will show through over the next couple of years.
Horizonte Minerals (HZM) published the latest financing estimate for the Araguaia nickel project. The cost to complete is $454m, but the full funding required is $567m-$592m, including pre-production and transaction costs. Existing liabilities are $418, and they require restructuring. More cash will be required by mid-April. Interest payments are being deferred. Existing shareholders are not in a strong position.
A more positive trading statement from film and video translation services provider ZOO Digital (ZOO) as management believes that demand should recover following the disruption of recent strikes in Hollywood. Revenues of $40m are now expected for the year to March 2024. A new film and TV distribution client has been won and there is greater visibility of work. The company still might not move back into profit in 2024-25, though. There is potential disruption from a craft workers strike in Hollywood.
Boilers developer Inspirit Energy (INSP) is near to completing the four electronic updates for its waste heat recovery system. The team is relocating back to the UK. The cash outflow was stemmed in the six months to December 2023.
Infrastructure India (IIP) shares returned from suspension when the interims to September 2023 were published. The board is proposing a winding-up of the company as it disposes of its assets and the share quotation will be cancelled if the proposals are passed at the AGM. Net liabilities are £217.4m.
Drug discovery company C4X Discovery (C4XD) also plans to cancel its AIM quotation and re-register as a private limited company if it gains shareholder approval at a general meeting on 15 April. Shareholders owning 57% of the shares are in favour. Management believes that it will be easier to raise funds as a private company and it will save money. C4X Discovery has raised £63m on AIM. In August 2022, £5.7m was raised at 25p/share. There is still £20.8m in the bank. In the six months to January 2024, revenues were £24.6m, due to milestone payments, compared with £1.7m in the first half of the previous year. The company is generally loss-making without substantial milestone payments.
Oil and gas producer Molecular Energies (MEN) is cancelling its AIM quotation because it does not believe it is worth the cost. The company should save £500,000/year. Chairman Peter Levine, who owns 29.2%, suggests that he may offer to buy shares of some other investors in the future, but there are no immediate plans to offer an exit prior to the cancellation. Green House Capital will no longer be spun off on AIM.
Infection protection technology developer Byotrol (BYOT) has been quoted for nearly 19 years and it has decided to leave AIM. Revenues from continuing products could improve from £3.7m to £3.9m this year. No further IP revenues are expected this year. Some IP was sold to Tristel (TSTL) and along with an early termination of another licence generated cash of £800,000, but minimum guaranteed royalties will be written down by £550,000 in the balance sheet. Even before that, there will be a higher loss in 2023-24. The business needs to be restructured and reduce costs and believes there will be more flexibility as a private company.
MAIN MARKET
Quantum dots developer Nanoco (NANO) generated interim revenues of £4m, including the recognition of £3m of Samsung licence income, up from £1.6m. Net cash was £54.5m at the end of January 2024. Second half non-Samsung revenues should be higher.
First Tin (1SN) had a cash outflow from operations of more than £2m in 2023. There was also £6.4m spent on exploration activities. There is £4.66m left in the bank.
Cizzle Biotechnology (CIZ) has raised £620,000 via a placing at 2p/share. This will fund the first proposed commercial test for its lung cancer test. The £500,000 loan facility with E3 Fund will be terminated.
Andrew Hore
Quoted Micro 25 March 2024
AQUIS STOCK EXCHANGE
S-Ventures (SVEN) has agreed to sell its food and snacks business in return for shares in AIM-quoted RiverFort Global Opportunities worth £3.5m. That would leave S-Ventures as an investment company with shares in the acquirer. Sales for the 12 months to September 2023 were £17.4m, rising to the £21.6m in the 15 months to the end of 2023. Net debt was £7.1m at the end of September 2023. An additional £3m of loans have been agreed, including £1m from RiverFort Global Opportunities.
Marula Mining (MARU) has signed a long-term offtake agreement with Fujax UK for the Blesberg lithium and tantalum mine in South Africa. This an agreement for 100% of production until the end of 2026, with a minimum of 50,000 tonnes at a grade of 6% lithium. There is an option for a further three years. A mining right has been received from the authorities for the plans to expand the stockpile reprocessing operations.
Brewer Shepherd Neame (SHEP) improved like-for-like retail sales by 6.2%, although beer volumes fell 10.5% with own beer volumes down 16.7%. Overall, interim revenues grew 4% to £89m and underlying pre-tax profit was 10% ahead at £3.8m. The brewing division returned to profit. The interim dividend was 5% ahead at 4.2p/share. Beer volumes continue to decline, while the retail sales growth rate has slowed.
Gunsynd (GUN) shares rose 17.9% to 0.165p on the back of an institutional investor investing $1m ($750,000 in cash and $250,000 in support services) in the US spirits subsidiary of Rogue Baron (SHNJ), where it currently has a 17.45% stake. Rogue Baron has also raised £20,000 at 0.5p/share.
Aquis Stock Exchange owner Aquis Exchange (AQX) increased revenues from £19.9m to £23.7m, while pre-tax profit rose from £4.5m to £5.2m. The Aquis Stock Exchange revenues improved from £1.6m to £1.8m. The main growth came from technologies and data. Panmure Gordon forecasts 2024 pre-tax profit of £6.2m.
Macaulay Capital (MCAP) reported a fall in net assets from £1.44m to £1.36m at the end of 2023. There was an exit from the investment in Qualification Check which reduced the reported loss. There are seven portfolio companies. There is a pipeline of potential transactions.
Cadence Minerals (KDNC) says that the capital spending optimisation programme has been completed at the Amapa iron ore project. Savings of $63.2m have been identified and production could be 5% higher at 5.5 Mtpa of iron ore concentrate.
Supernova Digital Assets (SOL) has completed the acquisition of Hyperslot PTE for £225,000 in shares at 0.15p each. Andrew Offit increased his shareholding from 14.1% to 15.2%.
Arsen Torosian has replaced David Carr as chief executive of Tap Global Group (TAP). He is the largest shareholder and was previously chief strategy director. Steven Borg will become finance director.
KR1 (KR1) has invested $600,000 in Moondance Labs, which is building Tanssi, which helps appchain deployment.
Substrate Artificial Intelligence (SAI) has signed up FINRA-registered California-based bank GT Securities to identify potential partners for its Subgen AI subsidiary, which has launched Serenity Star, an ecosystem for scaling generative AI. The company has raised Euro500,000 from a convertible bond issue.
Secured Property Developments (SPD) is changing its name to Mollyroe and it is adopting s new investment strategy focused on the technology sector. There will also be a 20-for-one share consolidation.
Steve Hutchinson has taken his Oscillate (MUSH) stake above 3%. TruSpine Technologies (TSP) chairman Geoffrey Miller has increased his shareholding to 7.24%, while Oberon Investments raised its stake to 12.6%.
Good Life Plus (GDLF) has appointed Tennyson Securities as corporate broker.
AIM
Capital equipment manufacturer Mpac (MPAC) had a stronger second half and revenues improved from £98m to £114m, while pre-tax profit recovered from £3.5m to £7.1m. There was growth in parts and services revenues. The order book was worth £72.5m at the end of the year. The customer base is being broadened. There should be further recovery this year.
Educational software and services provider Tribal Group (TRB) is still hampered by its dispute with NTU, which is currently in mediation. The failed bid for the company also held back sales to potential clients. Even so, annualised recurring revenues grew 13% to £15.1m. Full year revenues moved from £83.6m to £85.8m, while pre-tax profit recovered from £3.7m to £10.7m.
Roadside Real Estate (ROAD) shares soared 129% to 8p after it sold part of its stake in Cambridge Sleep Sciences to CGV Ventures 1 for £6m. The total stake cost £2.7m and Roadside Real Estate still owns 65%, having sold a 10% stake, so it still has to be consolidated. Management is considering selling the rest or demerging the company so that it can concentrate on its core property interests.
Digital media company XLMedia (XLM) is selling European and Canadian gaming assets to Gambling.com for an initial $37.5m with potential deferred consideration of $5m. Some of this cash may be paid out to shareholders. These assets generated 2023 revenues $21.4m and underlying EBITDA of $6.6m out of estimated group 2023 revenues of $50m and EBITDA of $12m. Pro forma net cash is likely to be around $35m, after taking account of deferred consideration of $4m payable for past acquisitions. Cavendish estimates that XL Media is worth £48m, including the cash.
Biodegradable and antimicrobial plastic additives developer Symphony Environmental Technologies (SYM) has raised £1.4m at 3.5p/share and will raise up to £500,000 more through a PrimaryBid retail offer. The issue price was well above the market price. Chief executive Michael Laurier is subscribing £105,000. Net debt was £740,000 at the end of February. The additional cash will fund the scale-up of the business and provide working capital during trials by potential customers.
Blue Star Capital (BLU) reported a slump in NAV from £11.4m to £5.33m at the end of 2023. That includes cash of £63,000. Writing down the valuations of Dynasty Media & Gaming and Sthaler were a large part of the decline in NAV. Another investee company, SatoshiPay, is undertaking a formal sales process. This stake is valued at £4.65m.
Live Company Group (LVCG) returned from suspension following the announcement of a planned refinancing and sale of majority interest in StartArt. Creditors are being settled in shares and a £1.77m convertible loan provided by the chairman, as well as converting some of his loan notes. A placing raised £352,000 at 1p/share. There could be more cash to come from strategic investors.
Digital payments business Boku (BOKU) increased 2023 revenues by 30% to $82.7m and they are expected to increase to $95m this year. The wallets business grew 153%, albeit from a lower base. The local payments network is being built up and will be a major factor in growth, especially as margins are better. The direct carrier billings business continues to grow and remains the main generator revenues for the time being. The company has more than $70m in cash.
Employee benefits and insurance provider Personal Group Holdings (PGH) reported slightly better 2023 figures than expected with revenues of £49.7m and pre-tax profit recovering to £5.9m. The dividend was raised from 10.6p/share to 11.7p/share. That is well covered by cash generation. Cash was £20.1m at the end of 2023. The insurance business did particularly well.
Three rail clients delaying orders has hit prospects for LPA Group (LPA) and it is unlikely to do any better than breakeven this year – a pre-tax profit of £800,000 was previously forecast on a 6% reduction in forecast revenues.
Light Science Technologies (LST) has received a grant worth £188,000 for a project involving the company’s SensorGROW technology.
Saturn Resources has increased its bid for Shanta Gold (SHG) to 14.85p/share, up from 13.5p/share, valuing the miner at £156.1m. Eligible shareholders will receive a dividend of 0.15p/share on 26 April.
Stem cell-based treatments developer ReNeuron (RENE) has failed to come to an agreement with creditors and the financial uncertain means that it has appointed administrators from Cork Gully. Negotiations continue with creditors and potential providers of finance.
MAIN MARKET
Higher losses from the ReZorce recyclable packaging business masked progress at foams manufacturer Zotefoams (ZTF), where pre-tax profit moved up from £12.5m to £13.1m on flat revenues. That included an operating loss of £4.36m, up from £1.89m, from the MuCell Extrusion division that includes ReZorce. The total dividend is 7.18p/share.
Property investor Town Centre Securities (LSE: TOWN) managed to edge up its net tangible asset value to 286p/share at the end of 2023, due to the 150p/share tender offer last year. There was a 4% decline in property values. Loan to value has risen to 50.3%. The interim dividend is maintained at 2.5p/share.
TheWorks.co.uk (WRKS) is moving from the Main Market to AIM. The plan is to gain shareholder approval to move on 3 May. This should help to reduce costs.
Esken Ltd (ESKN) has appointed administrators from AlixPartners because its restructuring plan was no longer commercially viable. The restructuring of London Southend Airport will continue.
First Tin (1SN) says regional exploration confirmed upside potential at Pound Flat and Battery Hill prospects in the Taronga tin project.
Andrew Hore
Quoted Micro 18 March 2024
AQUIS STOCK EXCHANGE
Aquis-quoted cannabidiol products supplier Voyager Life (VOY) has revealed plans to merge with Northern Leaf, which wanted to float on AIM but is running out of money. The deal should value the combined group at £5m – the Voyager Life share price is unchanged at 11p – if deferred consideration is paid in full. That requires Northern Leaf to generate revenues of more than £5m by March 2025. Jersey-based medical cannabis supplier Northern Leaf was the second company to be awarded a UK commercial high THC licence – the other was former AIM company GW Pharmaceuticals. Prior to 2023, the company had raised £16m over three years. Northern Leaf raised £3m in pre-IPO cash via a preference share issue in April 2023, followed by at least £1m raised via a convertible loan note.
Aquis Exchange (AQX) is working with Richard Croft of Martley Capital to establish a new segment of the Aquis Growth Market that focused on real asset backed investments. This could launch in the second half. The Aram segment will be open to commercial property, infrastructure and forestry asset owners. Richard Croft ran a company that was quoted on the International Property Securities Exchange (IPSX), which closed last year. Aquis Exchange has also secured a contract with the Central Bank of Colombia with technology for the operation of the government bond market. This should go live in 2026.
Wishbone Gold (WSBN) says drilling at the 100%-owned Cottesloe project in Western Australia indicates a large sediment hosted base metal mineralised system. These base metals can be used in lithium-ion batteries. There are highly anomalous lead-zinc and silver levels. The drilling has been in the south of the prospect area and drilling will switch to the northern area.
Quantum Exponential Group (QBIT) has adjourned a general meeting to gain shareholder approval for leaving Aquis. Investors have approached the company and offered to make a substantial investment.
Cadence Minerals (KDNC) investee company Evergreen Lithium has identified large lithium targets from soil sampling at the Bynoe project in the Northern Territory, Australia. Cadence Minerals has a 8.7% stake in Evergreen Lithium.
Greece-based dry bulk shipping company Seaenergy is piloting the SulNOxEco fuel conditioner made by SulNOx Group (SNOX).
Marula Mining (MARU) says its partner NyoriGreen has applied for eight graphite mining licences and one prospecting licence in Tanzania. This could be granted in the second quarter.
Substrate AI (SAI) has completed the acquisition of 21% of software developers BINIT and DELTANOVA for a total outlay of €2.1m.
Vinanz (BTC) has acquired ten Bitmain Antminer S21 200TH/s miners for North America. They should be operational within four weeks.
SuperSeed Capital (WWW) says the NAV was maintained at 113p/share at the end of 2023. Management expects to make two new investments in the first quarter. Cash was more than £99,000 at the end of 2023.
TruSpine Technologies (TSP) has raised £427,000 through a share placing at 1.5p each and convertible loan note issue. More cash can be raised through further convertible issues. The board is reviewing the business plan.
Cooks Coffee Company (COOK) intends to raise cash to invest in its Esquire chain, digital technology, acquire independent cafes and repay debt. It wants to raise up to NZ$1.76m at the equivalent of 9.55p/share.
Chris Akers continues to build his stake in Asimilar (ASLR) ahead of the exit from the Aquis Stock Exchange. The shareholding rose from 13.4% to 14.1%. Gunsynd (GUN) has sold its 4.75% stake in Oscillate (MUSH). Inteliqo finance director Raymond Smart has acquired 104,126 shares at 15p each.
Martin Walton has stepped down from the board of MaxRets Ventures (MAX) and Luciano Maranzana has been appointed as a director.
AIM
Cloud telephony provider LoopUp Group (LOOP) did reasonably well during Covid lockdowns, but it has found trading difficult since then. Management says it wants to leave AIM because it is difficult to raise cash. LoopUp needs to rise £9m, which management feels it cannot raise on AIM, but it four investors are willing to subscribe £6.2m if LoopUp goes private. In August 2016, the original placing price was 100p when £8.5m. Including that cash, LoopUp has raised more than £70m since joining AIM.
A 90p/share bid for SmartSpace Software (SMRT) has been announced. The bid approach for smart building technology company from Sign In Solutions Inc was revealed earlier this year and the rival bidder pulled out. This recommended offer values SmartSpace Software at £28.4m.
Gaming machines hardware and displays supplier Nexteq (NXQ) reported a 5% drop in 2023 revenues to $114.3m, but improving margins enabled pre-tax profit to rise 45% to $14.7m. The final dividend is 3p/share. The cash pile has increased to $27.9m. Mid-range gaming platform sales grew the most last year, while Densitron has benefited from sales of its newer broadcast equipment. The underlying gaming computer market is growing.
Pawnbroker H&T (HAT) reported strong growth in profit and the trading statement was reassuring for the current year. The pawnbroking book grew 28% to £128.9m. Group 2023 revenues were 27% ahead at £220.8m. Retail and other services were the only parts of the business making a lower profit contribution. Pre-tax profit was up from £19m to £26.4m. This enabled a rise in the dividend from 15p/share to 17p/share.
MTI Wireless Edge (LSE: MWE) was hit by a decline in the Israeli shekel against the US dollar and that meant that 2023 revenues were slightly lower at $45.6m. Pre-tax profit increased from $4.59m to $4.65m. There was a reduction in potential contingent consideration for the remaining shares in PSK, partly offset by a goodwill write down. There is a positive outlook for government demand for PSK services. The balance sheet remains strong with cash of $8.1m. The final dividend has been raised by 3% to 3.1 cents/share.
Ondine Biomedical (OBI) is making faster progress than expected. The Steriwave sterilisation technology is deploying in a further eight healthcare facilities. Ottawa hospital is expanding the use of Steriwave to combat hospital acquired infections in spine surgery patients. A study estimated a net saving of C$2,600 per surgery and infection rate dropped by two-thirds. Discussions continue with potential distributors.
Horizonte Minerals (HZM) revealed that the subsidiary that holds the Araguaia project has been granted an injunction which provides 60 days to work on restructuring and negotiate indebtedness. This provides additional time to deal with creditors. Horizonte Minerals continues to try to negotiate a financing.
Symphony Environmental Technologies (SYM) has been boosted by a positive report from the US Environmental Protection Agency that pro-oxidant masterbatches “could significantly reduce the persistence of plastic pollution without creating undesired by-products”. This is based on a scientific evaluation and is a positive thing for the company’s d2w technology.
Renalytix (RENX) has raised £7.8m at 20p/share and this should be enough to fund the company until the fourth quarter of 2024. This will give time for the formal sale process to make progress. A large diagnostics company has made a bid approach to kidney disease diagnostics developer Renalytix. This sparked the formal sale process, so that the company can assess whether there are other potential bidders. It is also possible that there could be a decision to stay independent.
MAIN MARKET
Packaging manufacturer and distributor Macfarlane Group (MACF) has acquired Allpack Packaging Supplies for up to £3.25m. It manufactures protective packaging, and it will extend the range of the group.
Cybersecurity company Narf Industries (NARF) has won a contract the Intelligence Advanced Research Projects Agency. The $1.3m contract is for the ReSCIND programme to better understand cyber attackers’ decisions. This should eventually lead to additional revenues from related SaaS business with government departments.
R8 Capital Investments (MODE) says that the proposed acquisition of Redwood Financial Partners could take until the end of August.
Andrew Hore
Quoted Micro 11 March 2024
AQUIS STOCK EXCHANGE
Luxury prize draw operator Good Life Plus (GDLF) raised £2.03m via a subscription at 2.25p/share, which is a premium to the market price of 1.875p. The subscriber is Winforton Investments, which is associated with Sportingbet founder Mark Blandford, which will have a 17.9% stake. The cash will be spent on marketing to accelerate growth and subscription numbers. Options have been granted to management at the subscription price. The reverse takeover of Semper Fortis Esports was done at 2p/share.
Cadence Minerals (KDNC) says the capital expenditure requirements for Amapa iron project have been reduced. Project financing talks continue with parties interested in taking a stake in the project. Cadence Minerals has invested $12.1m in Amapa and owns 32.6% of the project. The stake in Hastings Technology Metals has been sold. Cadence Minerals expects to leave the Aquis Stock Exchange on 5 April.
Food company Essentially Group (ESSN) is acquiring Best of Latin Foodstuff Trading for £1.95m. The company sources food from growers in Latin America and supplies hotels and restaurants in the UAE, where Essentially Group already supplies juices and other drinks. The deal will triple the revenues of Essentially Group. The former owner Catalina Onate will become an executive director of Essentially Group.
RentGuarantor Holdings (RGG) has raised £430,000 at 274p/share. The cash will finance the hiring of additional staff. Chief executive Paul Foy is converting £250,000 of convertible loan notes at 210p/share. He still has £250,000 of convertible loan notes.
Investment Evolution (IEC) is expanding into Spain, and it will grant subsidiary MRAL Spain non-exclusive recurring rights to the Mr Amazing Loans brand. Spanish company Investment Evolution Credit, not part of the group, will provide lending technology for a 49% stake in MRAL Spain.
Coinsilium Group Ltd (COIN) has raised £472,500 at 2.5p/share with executive directors subscribing £40,000. There have also been creditor payments of £83,900 in shares. Each new share comes with a warrant exercisable at 3.75p/share. The cash will be invested in Web3 and AI technology and provide working capital.
Marula Mining (MARU) has added to its team in Kenya. Gilbert Kibet is project geologist and Joy Chebet will be graduate geologist. Exploration work will commence on the Larisoro manganese mine in northern Kenya.
Flex Labs (FLEX) says Supernova Digital Assets (SOL), which is associated with its executive chairman, has sold 1.24 million shares and raised £81,425. These sales were between December and February. Supernova Digital Assets plans to return cash to shareholders via a tender offer after Phoenix Digital Assets (PNIX), in which it owns 30 million shares, completes its tender offer. There will have to be a capital reorganisation to enable the tender offer to happen and £242,000 has been raised at 0.1p/share for working capital while the capital changes are arranged.
Kasei Holdings has changed its name to Kasei Digital Assets (KASH). Non-executive director Bryan Coyne bought 75,000 shares at 9.75p each. Gunsynd (GUN) executive director Donald Strang bought three million shares at 0.148p/share.
AIM
Wealth management company Mattioli Woods (MTW) is recommending an 804p/share bid from a company owned by Pollen Street Capital. That values Mattioli Woods at £432m and shareholders will still receive the interim dividend of 9p/share. The 2203-24 prospective multiple at the bid price is less than 17, falling below 15 the following year. When it joined AIM in November 2015 at 132p/share Mattioli Woods was valued at £22.5m.
Challenger Energy (CEG) has secured a farm out deal for the OFF-1 exploration asset, offshore Uruguay with Chevron. Challenger Energy will retain a 40% interest. The oil and gas explorer will receive a cash payment of $12.5m on completion, plus a carry of up to $15m on 3D seismic and 50% of the cost of an exploration well up to a $20m share. However, a well could cost between $50m and $100m according to Zeus, so Challenger Energy could still have to make a cash contribution. Regulatory approvals will take months.
A large diagnostics company has made a bid approach to kidney disease diagnostics developer, Renalytix (RENX). This has sparked a formal sale process, so that the company can assess whether there are other potential bidders. It is also possible that there could be a decision to stay independent. Funding options are being reviewed. Costs have been reduced, but there is currently cash and securities of $3.7m and the cash outflows remain significant so this will only last until the end of April. A share issue and/or debt financing will be required.
Empire Metals (EEE) says study results for the Pitfield project in Western Australia show favourable mineralogy and metallurgy in the high-grade titanium samples. This should simplify processing. Around two-thirds of the contained titanium is titanite, which can be processed at low temperatures. The overall end product would be ideal for a titanium dioxide pigment producer.
Kinovo (KINO) estimates that the costs of the guarantees to complete work on projects taken on by ex-subsidiary DCB will be £2.9m higher than previously expected. Cash flow from the continuing operations will help to fund this but Kinovo will move into net debt by the end of March. This will not affect the pre-exceptional pre-tax profit forecast of £5.8m, up from £4.9m.
LungLife AI (LLAI) raised £1.8m at 35p/share. The lung cancer diagnostics developer is starting the commercialisation process for its diagnostic technology. The cash will fund the evidence generating activities, including an early access programme and clinical utility studies. There should be enough cash until April 2025.
Controlled environment agriculture technology developer Light Science Technologies (LST) has appointed former ITM Power (ITM) boss Dr Graham Cooley as non-executive chairman. He bought a 7.5% stake last year and has been awarded 6.66 million options exercisable at 5p each. Richard Mills, who is boss of the growing systems division of Haygrove and has helped to develop global partnerships, has also joined the board. Myles Halley and Robert Naylor have stepped down. The company has been broadening its activities into fire protection.
Performance nutrition products provider Science in Sport (SIS) is focusing on improving margins rather than growing revenues. This strategy change was in the fourth quarter of 2023, so there was not much time to affect trading. In 2023, revenue dipped from £63.8m to £62.8m due to lower online sales. The Science in Sport brand grew sales by 17%. Liberum trimmed its 2023 revenues estimate, but it also reduced the forecast loss to £4.8m. The 2024 forecast revenues have been cut, but the loss is still forecast to be £3.1m with a move to breakeven in 2025.
Duke Capital (DUKE) has exited another investment with a total return on invested capital of 2.1 times. Street lighting columns manufacturer Fabrikat has been acquired by Metalogalva. Duke Capital has already received £2.7m from Fabrikat and will receive a further £10m after the takeover. There is potential performance-related deferred consideration.
Netcall (NET) continues to build its annual contract values and they have reached £30m. Recurring revenues were three-quarters of the interim revenues. There is rapid growth in cloud business and the cash in the balance sheet enables consistent investment in research and development. Full year pre-tax profit will edge up to £6.7m.
Nexus Infrastructure (NEXS) has focused on its Tamdown civil engineering business and the remaining cash from disposals has come in handy in a tough time for the housebuilding sector. Revenues fell from £98.4m to £88.7m. There is still £14.6m in cash. The final dividend is 2p/share. The order book is recovering and was £57.2m at the end of January 2024. There should be a recovery in the housebuilding sector over the next year, but the timing is uncertain.
Strategic Minerals (SML) sold 4,898 tons from the Cobre magnetite stockpile during February. That is the highest monthly figure since March 2021. Quarterly sales should be around 13,000 tons and annual revenues from Cobre should be around $3.5m.
Floor levelling equipment supplier Somero Enterprises (SOM) reported a 10% dip in revenues to $120.7m because of the weak North American market. Europe and Australia performed better. Pre-tax profit fell from $42.3m to $34.5m and the dividend was reduced from 35.5p/share to 30.6p/share. This year’s revenues are likely to be flat, but additional investment in a new facility in Belgium means that there will be a further decline in pre-tax profit.
Saietta Group (SED) has appointed administrators and following the resignation of Canaccord Genuity as nominated adviser the AIM quotation will be cancelled at the beginning of April. The electric drivetrain technology developer company has failed to secure additional cash and although there is interest in the business no firm buyer has been found.
MAIN MARKET
Ground engineering and piling business Keller (KLR) reported flat revenues of £2.97bn, but operating profit was two-thirds higher at £180.9m – £150m was expected before the recent trading statement. Pre-tax profit jumped from £93.5m to £153.4m. Net debt was one-third lower at £146.2m. The dividend is one-fifth ahead at 45.2p/share. Non-core businesses are being exited. The year-end order book was worth £1.5bn.
Standard list shell Spiritus Mundi (SPMU) has entered into heads of terms for the purchase of InReste, which has developed clinical diagnostic tests and operates a laboratory in Singapore. Spiritus Mundi chairman Zaccheus Peh is the controlling shareholder of InReste and will be the controlling shareholder of the holding company after the acquisition.
IT services provider Triad Group (TRD) is winning new business and it returned to profit in November. There will be initial costs of contracts in the fourth quarter. That means that there will be a greater benefit in the first quarter of the next financial year.
Andrew Hore
Quoted Micro 4 March 2024
AQUIS STOCK EXCHANGE
Marula Mining (MARU) is investing in the established Larisoro manganese mining operation in Kenya by securing a 60% commercial interest with an option to increase it to 70%. There are three shallow open pits and there has been mining for 12 years. The purchase price is £300,000 satisfied by the issue of 2.4 million shares. Marula Mining will provide investment of $1.5m for equipment to enable increased production. Once there is a final agreement another £200,000 will be paid with £300,000 payable after the completion of an exploration programme. The final payment will be £750,000 when 50,000 tonnes of manganese ore is sold. A further £1.25m will be paid if the stake is raised to 70%.
Flow battery storage technology developer Invinity Energy Systems (IES) has secured a new deal with Taiwan-based Everdura, where it will supply the cell stacks and Everdura will handle manufacturing and sales. Performance testing of the first Mistral prototype has been successful and the agreement sets a target of 255MWh of Mistral sales over three years. Additional strategic partners could be announced within six weeks.
Aquis Exchange (AQX), the owner of the Aquis Stock Exchange, has launched conditional order functionality on the Aquis UK and Aquis EU platforms. This enables members to post the same liquidity on multiple venues without the risk of over-trading. This extends the Aquis dark pool, which was launched in 2022. The 2023 results will be published on 21 March. Pre-tax profit is expected to be 16% higher at £5.2m.
Ananda Developments (ANA) says that its subsidiary MRX Medical has signed a drug supply agreement with the University of Edinburgh and NHS Lothian for the provision of MRX1 cannabidiol oil. This will be used in an endometriosis clinical trial, ENDOCAN-1. MRX will have a licence over all IP generated from the trial for development purposes. It could also licence the IP for commercial purposes.
Digital diagnostic products developer EDX Medical Group (EDX) has raised £1.56m at 12p/share, taking the total raised in February to £5.7m. This will be spent on product development. A WRAP retail offer could raise up to £500,000. This closes on 5 March.
Field Systems Design Holdings (FSD) improved interim revenues from £6.7m to £8.8m, while pre-tax profit rose from £57,000 to £84,000. There has been additional work from the water sector and investment is accelerating. There are secured orders of more than £14m, but there is still pressure on margins. There is £2.18m in the bank.
Quantum technology investment company Quantum Exponential Group (QBIT) is seeking shareholder approval to leave the Aquis Stock Exchange. Apparently potential investors in a fund are not happy that the company is publicly traded. There will also be cost savings from leaving the market. Management is considering potential trading platforms for the shares.
KR1 (KR1) had a NAV of 122.97p/share at the end of January. There was £1.8m of income generated from digital assets during the month.
Gunsynd (GUN) investee company Low 6 has traded profitably in the past seven months and 2023-24 revenues are expected to be £4.5m, up from £855,000 the previous year. Debt is being paid off.
Substrate Artificial (SAI) has increased revenues but the loss has more than doubled due to AI development spending.
Silverwood Brands (SLWD) is acquiring Japanese beauty products manufacturer Cosme Science Corporation. It owns skincare brand Dr Baeltz. No purchase price is mentioned.
Mortgage Chat (MCAI) has entered into a software development agreement with Accru Finance. This is for the design of a web-based application for mortgage queries. The payment for development is £15,000 and 200,000 warrants with an exercise price of 5p. California Two Pizza Ventures Inc has cut its stake from 8.05% to 7.54%.
ProBiotix Health (PBX) has entered a partnership with SymbioPharm. The Germany-based microbiome research company and has an established distribution network. It will use ProBiotix Health’s CholBiome CH formulation in branded consumer products.
BWA Group (BWAP) says reconnaissance drilling at the Dehane 2 heavy mineral sands project in Cameroon has been encouraging. Heavy mineral sands have been observed and analysis is awaited. A further £50,000 has been raised.
Edison has initiated research on prize draw operator Good Life Plus (GDLF). Former Tote boss David Craven is chairman.
Investment company Asimilar Group (ASLR) is holding a general meeting on 27 March to gain shareholder approval to leave the Aquis Stock Exchange. Cost savings will help to prevent the need to sell investments.
Chris Akers has reduced his stake in Tap Global Group (TAP) from 3.7% to below 3%. Andrew Offit increased his shareholding in Supernova Digital (SOL) from 11.9% to 14.1%. Nigel Pope has raised his stake in Phoenix Digital Assets (PNIX) from 3.2% to 4.04%. Steven Bennett increased his stake in Oscillate (MUSH) from 4.75% to 7.12%.
AIM
Grocery distributor Kitwave Group (KITW) continues to grow organically, as well as via acquisition. In the year to October 2023, revenues grew from £503.1m to £602.2m, while underlying pre-tax profit moved up from £18.9m to £27.5m. The acquisition of Wilds of Oldham, where integration will be completed in April, came too late to make a contribution last year. Food service is becoming increasingly important with 30% of revenues last year, up from 25% the year before. It also contributed 43% of EBITDA before central overheads. The total dividend was increased by 21% to 11.2p/share.
eEnergy Group (EAAS) has secured a funding facility from National Westminster of up to £40m. This can be used to fund public sector energy transition projects and lasts 12 years. This will lower the cost of capital. Group continuing revenues were £46m in the 18 months to December 2023. EBITDA was between £5.1m to £5.3m.
Avacta (AVCT) initially wanted to raise £20m via a placing at 50p/share and raise a further £6.8m via a retail offer. The total fundraise has been increased from up to £26.8m to up to £32.5m. Even so, the share price slumped 36.6% to 54.5p. There is already £16.6m in the bank and the rate of cash outflow appears to be declining. The cash will fund further progress with dose expansion and the phase 2 efficacy studies for its main clinical programme AVA6000 and additional working capital up until late 2025 / early 2026. Anything raised in excess of £20m will be spent on AVA3996 and further potential Affimer drug development platforms. There are plans to sell the diagnostics division and for a possible Nasdaq listing.
Horizonte Minerals (HZM) says lenders have extended the deferral of interest payments to 29 March. Management is working with lenders and shareholders on full funding for its Araguaia project. The talks could be finalised by June, but additional funding will be required before that. The $24.8m in the bank should last until the middle of April, depending on any cost savings achieved. The Brazilian subsidiary may need to resort to protective measures to protect its cash position. Horizonte Minerals is a guarantor of the subsidiary’s debt, and it may also need to apply for protective measures if the refinancing is not agreed.
Retail software supplier itim Group (ITIM) has released a trading statement following its contract announcement earlier in the week. Revenues of £16.1m were in line with expectations and annualised recurring revenues were steady at £13.2m. Services revenues were higher. The 2023 loss forecast has been trimmed from £1.3m to £1.1m. itim has won a five-year, multi-million pound contract with fashion retailer QUIZ Clothing. This deal provides an opportunity to attract other fashion retailers. The Retail Suite product will be rebranded as UNIFY.
Semiconductors designer EnSilica (ENSI) reported interim revenues 11.5% ahead at £9.6m, but there was a higher pre-tax loss of £309,000. There has been a strong start to the second half and the latest contract with a US electronics manufacturer is worth $20m, which is fully funding engineering fees. Last December’s placing raised £1.56m at 40p/share. The latest placing raised £1.1m at 50p/share and it has received the R&D tax credit for 2023.
Renalytix (RENX) has broadened the US government coverage for kidneyintelX.dkd testing. This is a FDA de Novo marketing authorised test and the status has enabled it to be added to the 10-year Governmentwide acquisition contract for early stage kidney disease bioprognostic testing services. The fee is $950 per reportable result.
Sustainable polymers developer Itaconix (ITX) is continuing its positive momentum in the cleaning sector and developing more products that will fuel growth. Overall revenues were 41% higher at $7.9m, with strong growth in Europe. Cleaning sector revenues were $7.2m. There is $10m in the bank and that should last long enough to reach cash breakeven.
Video editing technology developer Blackbird (BIRD) is raising £1.05m at 6p/share. The cash will help fund the full launch of content creation tool elevate.io. There was £5.9m in cash prior to the fundraising and the company says that there was interest from investors wanting to buy shares.
Verditek (VDTK) has entered into a conditional sale agreement for its solar business for £528,340, which will be satisfied by the surrender of loan notes plus interest. Shareholder approval is required. Bob Holt and John Charlton are joining the board and the existing directors resigning. Both of them were involved in turning around Sureserve. There is £300,000 being raised at 0.075p/share and Bob Holt will loan the company up to £300,000, which is convertible at 0.075p/share. There are plans to raise a further £1.5m and change the name to Net Zero.
MAIN MARKET
Hydrogen Utopia International (HUI) has secured a reverse takeover candidate. British Virgin Islands based Helmond Holding Group, which is changing its name to Essential Energy Holding Group, is a bio-energy company. This expertise could be usefully combined with Hydrogen Utopia International’s waste plastic to hydrogen technology. The deal could be worth £500m.
Aircraft leasing company Avation (AVAP) increased underlying leasing revenues in the six months to December 2023, but operating profit halved from $35.4m to $17.5m, although the difference is mainly down to one-off gains and losses.
Andrew Hore
Quoted Micro 1 January 2024
AQUIS STOCK EXCHANGE
Oberon Investments (OBE) increased interim revenues by 28% to £3.4m, even though capital market revenues fell by one-third. The loss was reduced from £1.67m to £1.59m. Management believes the company could move into profit during 2024. There are plans to add funds management teams. Oberon Investments has a 69.1% stake in Logic and is planning to float Logic on AIM at a valuation of £11m in the first half of 2024.
Broker VSA Capital (VSA) improved interim revenues from £846,000 to £1.05m and the loss jumped from £841,000 to £1.82m with the loss on investments jumping from £355,000 to £1.33m. VSA Capital is unhappy how Silverwood Brands handled the deal to buy a stake in Lush and this has led to a reduction in the value of the stake VSA Capital owns in the company. Deals have been delayed.
Western Selection (WESP) has sold its liquid investments, and it has £14.55m in the bank. It has illiquid investments in Industrial and Commercial Holdings and City Group are in the books for £46,000. The investment company is returning 80.5p/share in cash to shareholders and withdrawing from the Aquis Stock Exchange. The other investments will eventually be sold. Shareholders will be given the option to retain shares until the other investments are sold.
TruSpine Technologies (TSP) reported an interim cash outflow from operating activities of £80,000, down from £508,000 in the corresponding period. There was net debt of £277,000 at the end of September 2023. Discussions continue with Spartan Medical concerning a new redistribution contract.
Marula Mining (MARU) has completed phase 1 exploration activities at Nyorinyori and NyoriGreen projects. An initial report will be received in January. This, combined with assay results, will help to plan phase 2 of the exploration in the first quarter of 2024.
KR1 (KR1) had net assets of 76.56p/share at the end of November 2023. The income from digital assets during the month was £939,000. The share price is 92p.
Tap Global Group (TAP) generated trading revenues of £1.68m, based on trading payment volumes of £181.6m, taking total revenues to £2.02m in the year to June 2023. Revenues for the most recent five-month period were £1m. The company is still losing money. There was £2.3m in the bank at the end of June 2023. Tap Global plans to launch its cryptocurrency app in the US in the first quarter of 2024.
Substrate Artificial Intelligence (SAI.B) increased its 2023 revenues forecast from Euro8.19m to Euro10.5m, while the operating loss has been raised from Euro4m to Euro6.3m. Operating expenditure is much higher than original estimated, partly due to higher development spending.
Gunsynd (GUN) has invested in £200,000 in 1911 Gold Corporation, which is listed on the TSX Venture Exchange. At C$0.06/share. Each share comes with a warrant exercisable at C$0.10/share. Gunsynd has a 4.3% stake. 1911 Gold Corporation has interest in 63,000 hectares of land adjacent to the Archean Rice Lake greenstone belt in Manitoba.
Hot Rocks Investments (HRIP) had £18,415 in the bank at the end of September 2023. Net assets fell from £526,000 to £433,000.
AIM
Shares in fabless semiconductor developer Sondrel (SND) were hit by a trading warning that flagged delays in development and payments and a subsequent shortage of cash. Sondrel expected a £1.7m payment from an automotive component manufacturer, but this will not be received until next year. Additional resources will be required to complete the project. Directors and staff have agreed to defer salaries because Sondrel cannot afford to pay them. More capital will be required by the end of March or earlier if the delayed payments are not made as early as expected.
Autonomous drilling rig developer Tribe Technology (TRYB) has not completed the latest drill rig due to technical issues and it will be delayed until the first quarter of 2024. It should be shipped to the customer by the summer. This means that revenues may be delayed until the next financial year. A field trial of the sample potting and handling system has been postponed. The 5 September placing price was 10p and the share price has declined to 8.25p. There is £3.34m in cash left.
Harland & Wolff (HARL) is advancing negotiation concerning a proposed £200m guaranteed loan facility with UK Export Finance. In January, an independent party will assess an appropriate interest charge. The bank syndicate is being firmed up. There is enough cash until the facility is secured.
AIM broker WH Ireland (WHI) is seeing signs of improvement with underlying monthly profitability achieved in November 2023 thanks to cost cutting and there was cash of £6.8m. Annualised cost savings of £3.8m have been made. The underlying interim loss doubled to £1.8m with revenues dropping from £14.3m to £10.7m.
Horizonte Minerals (HZM) has secured a $20m interim funding package provided by major shareholders Orion, Glencore and La Mancha. Interest payments are being deferred by existing senior lenders. Management is reviewing the long-term project funding requirements for the Arafuaia nickel project. Full funding is targeted for the middle of 2024.
Oil and gas company Reabold Resources (RBD) is holding the requisitioned general meeting on 10 January to appoint four directors and remove two others. Requisitioner Kamran Sattar and related parties have a 40% stake in Daybreak Oil & Gas, where Reabold Resources has a 42% holding. Fully listed Zenith Energy (ZEN) boss Andrea Cattaneo is proposed as chief executive, and another proposed director is Zenith Energy chairman. Nominated adviser Strand Hanson is undertaking due diligence on the proposed directors. If they are appointed before this is complete, Strand Hanson says that it would have to resign. That would spark a share suspension and then one month to find a replacement or the quotation would be cancelled.
Shares in coal miner Bens Creek (BEN) has fallen to 11p, just above the original placing price of 10p. The net sales price has declined over the past year, but higher production meant that interim revenues increased from $17.4m to $23.5m although the loss rose from $11.7m to $13.7m. Net debt, including deferred consideration, is more than $38m.
Team (TEAM) is acquiring Homebuyer Financial Services for £2.4m, dependent on approval by the Jersey Financial Services Commission. The company has assets under advice of £135m. The deal will boost Team’s scale in the Channel Islands. The proposed acquisition of Thornton has been cancelled.
Executive vice chairman Dominic Redfern has been suspended by Eco Buildings Group (ECOB). He was one of the vendors and co-founders of the Eco Buildings business that was reversed into the AIM shell Fox Marble seven months ago, so he is important to the business.
MAIN MARKET
Pendragon (PDG) says the takeover of its motor dealer and related finance businesses have been approved by the FCA. The disposal should be completed at the end of January, when Pendragon will be left with its software business. A 24.5p/share dividend will be paid in the first half of 2024.
One Heritage Group (LON: OHG) says that the contract for the sale of Churchgate, Leicester has been rescinded while a claim against the development is sorted out. The Oscar House development in Manchester has been refinanced.
Andrew Hore