Home » Posts tagged '#HUD'
Tag Archives: #HUD
Quoted Micro 7 October 2024
AQUIS STOCK EXCHANGE
Prize draw operator Good Life Plus (GDLF) has increased the number of paying subscribers by 90% to more than 40,000 in less than a year. Management says that it might exceed expectations for the current financial year. Good Life Plus is raising £2m at 2.5p/share. Earlier this year, £2m was raised at 2.25p/share. The cash will finance customer acquisition and signing up new partners.
Brewer Shepherd Neame (SHEP) grew full year revenues by 4% to £172.3m and underlying pre-tax profit improved from £7.6m to £7.9m. NAV is 1217p/share, while net debt is £80m. Like-for-like retail sales were 4.9% ahead with the growth dominated by drinks offsetting a fall in accommodation income. Beer volumes declined 12% with own-brewed volume 17% lower. Brand refreshes are planned. Beer volumes continue to decline, while like-for-like retail sales for the initial 13 weeks of the new year are 3.8% higher.
Consumer brands company Silverwood Brands (SLWD) increased interim revenues from £5.85m to £7.08m and it moved into profit, but that was mainly due to exceptional gains.
CRUSHMETRIC Group (CUSH) increased interim revenues from HK$1.04m to HK$2.94m, although the loss was similar at HK$3.7m.
Talks with potential investors in Quantum Exponential Group (QBIT) have been terminated. The documentation has not been signed and the potential investor did not pay the £200,000 towards costs that it promised. Trading in the shares will end on 30 October.
Voyager Life (VOY), which has an option to acquire M3 Helium, has changed its name to Mendell Helium. The admission document is being prepared and the option should be exercised by the end of January. The company had £163,000 in the bank at the end of March.
Aquaculture technology developer OTAQ (OTAQ) reported a 16% decline in interim revenues to £1.5m because of a delay to a £350,000 order. The company continues to lose money. A forecast full year loss of £1.3m is similar to 2023, including a £150,000 benefit from cost reductions, and it could be halved in 2025 as the full benefit of cost savings show through.
KR1 (KR1) had net assets of 57.27p/share at the end of August 2024. The income in the month was £590,000.
Investment Evolution Credit (IEC), which provides loans under the Mr Amazing Loans brand, is holding a general meeting to gain approval to raise up to £2.5m from share issues. Paul Mathieson is being replaced as chief executive by Marc Howells. Former director Sam Prasad is loaning £200,000 to the company, which replaces a previous £100,000 loan.
Recycling services provider Majestic Corporation (MCJ) narly doubled interim revenues from $13m to $25m and pre-tax profit was one-third higher at $900,000. The company has received Enterprise Investment Scheme status.
RentGuarantor (RGG) has increased third quarter revenues by 62% and average revenues per tenant by 8% to £606.
Gains on investments enabled Hot Rock Investments (HRIP) to move into profit in the year to March 2024. Net assets increased to £512,000.
An undertaking of EPE Special Opportunities (EO.P) has provided additional funding of £2m to the Rayware Group. There is also a £1m contingent guarantee provided to third party lenders. EPE Special Opportunities still has £16m in cash.
ProBiotix Health (PBX) has a commercial partnership with Deutsch-Pharm. It will use two of the company’s products (for cholesterol lowering and vascular health) under its own brand in the Ukraine. Commercialisation is anticipated in the first quarter of 2025.
One Health Group (OHGR) has appointed Panmure Liberum as corporate adviser and broker.
Hydro Hotel Eastbourne (HYDP) has declared an interim dividend of 13p/share.
AIM
AO World (AO.) is acquiring musicMagpie (MMAG) for 9.07p/share, which values the pre-owned products supplier at just under £10m. There are irrevocable undertakings and letters of intent totalling 54% to accept the offer. AO World believes that the two companies have complementary online models, and a technology trade-in service will enhance its product offering. AO World says that the musicMagpie disc media and books business should not require significant investment.
EMV Capital (EMVC) director Jonathan Robinson bought 25,000 shares at 52p each following the interim results announcement of the company that was previously known as NetScientific. Total assets under management reached £106.7m following the addition of the Martlet Capital portfolio. Net assets edged up from £17.1m to £18.5m. Nasdaq-listed investee company PDS Biotech announced a 36-month survival rate of 84.4% in locally advanced cervical cancer patients treated with the company’s lead target drug Versamune HPV and Chemoradiation.
Tavistock Investments (TAVI) is raising up to £37.75m from disposals, which is more than treble the market capitalisation before the sale, with nearly £11m payable on completion and a further £11m from discharge of intragroup debt. The rest is payable based on performance. The two businesses made a pre-tax profit of £1.5m in the year to March 2023. The cash will be used for working capital and acquisitions. There could also be share buy backs. Chief executive Brian Raven bought 830,000 shares at 3.55p each.
Good Energy (GOOD) has acquired Lincolnshire-based solar installer Amelio Solar for an initial £5.5m. The focus of the business is the education and public sector. In 2023, revenues were £7m and pre-tax profit is £1.4m. However, there have been lower levels of activity in Good Energy’s existing installation business.
Packaging equipment and automation provider Mpac Group (MPAC) is making its second acquisition in recent weeks and this is by far the larger. Mpac is acquiring CSi Palletising for £47m, including £4.16m in shares, and the deal should be completed by the end of the year. CSi Palletising designs, manufactures and installs end-of-line packaging automation and robotics equipment and will enhance the geographic coverage. In 2023, CSi Palletising generated revenues of €71.5m and EBITDA of €7.3m. The latest interims show revenues of €44.4m and EBITDA of €6.8m. There is an order book worth €64.3m. A placing raised £29m at 400p/share and a retail offer to existing shareholders could add up to £1m to the figure.
Digital media publisher Digitalbox (DBOX) has commenced a strategic review, which could involve a sale of the company. This follows representations from a major shareholder disappointed about the level of the share price. Progress should be reported in November. Interim revenues were better than expected, but July and August were weak. Net cash is £2.2m, which is more than 50% of market capitalisation. A capital restructuring is underway to create positive distributable reserves.
Agricultural products supplier Wynnstay Group (WYN) says the second half has been hit by wet weather and weaker farmgate prices in part due to government policy uncertainty. Shore has reduced its 2023-24 pre-tax profit forecast by 35% to £7.5m and this will have a knock-on effect in the year to October 2025 where the profit forecast has been cut by 29% to £8.5m. Wynnstay should still have net cash, and the NAV is estimated at around 600p/share.
Payments technology company Bango (BGO) is making some progress towards regaining investor confidence and it is on course to make a full year profit. Interim revenues grew 19% to $24.1m. Annualised recurring revenues are 130% ahead at $12.9m. Net revenue retention is 159%.
Ceramic disc brake technology developer Surface Transforms (SCE) increased interim revenues by 58%, but growth is still not meeting expectations even though there is further growth in third quarter revenues. There are delays to installing additional capacity. Full year revenues are expected to be £11m, compared with previous expectations of £17.5m. There was £5m in cash at the end of June 2024. Odd Asset Management reduced its stake from 5.13% to 2.58%.
Graphene technology developer Versarien (VRS) has signed an agreement with Balfour Beatty to develop 3D-printable mortars for civil construction. It will formulate three types of mortar. This follows the disposal of AAC Cryoma for £550,000 payable in 15 instalments.
Oil and gas company Prospex Energy (PXEN) is applying for exploration licences in Poland. The licence awards should happen in the first quarter of 2025. Initial results from the Vlura-1B development well in Northern Spain are positive. Drilling intercepted significant gas shows and that confirmed the high quality reservoir. This well will be connected up and first production should be by November.
Battery and electronic components supplier Solid State (SOLI) is acquiring Gateway Electronic Components, which manufactures ferrite and magnetic components for £1.4m. These are used by electromechanical and Industrial Internet of Things businesses. The run rate pre-tax profit is £200,000, so the multiple is less than ten.
Surplus consumer products retailer Huddled (HUD) generated interim revenues of £5.3m and they continue to grow organically and via acquisition. Third quarter revenues will be around £3.5m. Management is investing in inventory and marketing. Warehouse functions are being centralised.
MAIN MARKET
Motor dealer software provider Pinewood Technologies (PINE) published its first results following the sale of the motor dealer business. In the six months to July 2024, revenues were 11% ahead at £16.1m. Major shareholder Lithia is taking up new licences in the UK. The US roll out is being planned.
The two board representatives of Kelso Group (KLSO) on AIM-quoted The Works.co.uk (WRKS) have stepped down. This will make it easier to sell its 6.3% stake if it wishes to. The average cost was 32p/share and the current price is 25.2p.
Andrew Hore
Quoted Micro 20 May 2024
AQUIS STOCK EXCHANGE
Digital assets investor KR1 (KR1) reported a decline in 2023 revenues from £20.2m to £8.65m, but larger gains on digital assets mean that the reported profit was not down as much at £14.7m, from £19.5m. The introduction of the bitcoin ETF has helped the valuation of digital assets in the diversified portfolio. NAV was 132.05p/share at the end of March 2024, which is higher than the figure at the end of 2023. The company has been buying back shares at a discount to the NAV.
Aquaculture technology developer OTAQ (OTAQ) plans to raise up to £2m from a convertible loan note issue. The conversion price will be 3p/share. A reduced loss is expected for 2023, even after exceptional costs. The 2023 results should be announced by the end of June. First quarter revenues are 19% ahead. The live plankton analysis system has been launched.
Brewer Adnams (ADB) increased annual sales by 11% with growth in on-trade and off-trade business. Management is still exploring ways of funding growth.
All Things Considered (ATC) has acquired 55% of music management company Raw Power, whose artists include The Damned, for £1.41m in cash. This takes the artists managed by the combined group to 80. The existing shareholders will retain the rest of the shares. Some of these were involved with Sanctuary Group, which was quoted two decades ago. In the year to February 2023, Raw Power made a pre-tax profit of £326,000 on revenues of £2.27m. Phantom Music Management holds loan notes in the acquired business and is subscribing £200,000 for shares in All Things Considered, which had net cash of £10m at the endo of 2023. Last year. All Things Considered increased revenues by 156% to £24.1m, but there was a swing from profit to loss, although there was a one-off profit in the previous year. There was also a larger loss from the minority interest in livestreaming company Driift.
Clarify Pharma (PSYC) reported a reduced loss in the year to November 2023. NAV fell from £1.41m to £597,000, including cash of £167,000. Investments were valued at £706,000.
EPE Special Opportunities (EO.P) had net assets of 347.96p/share at the end of April 2024.
Res Privata has increased its stake in WeCap (WCAP) from 7.28% to 9.69%. Silverwood Brands (SLWD) director Andrew Gerrie invested £20,000 in shares at just over 26p each. Newbury Racecourse (NYR) director Dominic Burke has bought 1,125 shares at 5.449p each. Tap Global Group chief executive Arsen Torosian acquired 33.75 million shares at 0.681481p each.
Secured Property Developments has changed its name to Mollyroe (MOY).
AIM
Nexus Infrastructure (NEXS) reported a decline in revenues in the six months to March 2024, but the order book is improving. Revenues generated by the infrastructure services provider fell from £51m to £25.8m and the company slipped into loss. The interim dividend is maintained at 1p/share. There was a cash outflow, but cash is still £9.3m, which is not much less than the market capitalisation. The order book is worth £72m, but the recovery in revenues may not happen until next year.
B90 Holdings (B90) has refocused on business to business gaming operations. This will enable a reduction in costs and could move the company into profit in 2024. Net cash was Euro800,000 at the end of 2023 and the cash outflow should end in the second half. There is an experienced management team. In the medium-term the company should become a consolidator in the sector.
Cerillion (CER) continues to win significant orders and there was a major win following the end of the first half. Revenues grew 10% to £22.5m in the first half. The software company is on course to improve pre-tax profit from £16.8m to £17.3m in the year to September 2024. Net cash could rise to £30.4m.
Semiconductors designer Sondrel (SND) is raising £5.63m at 10p/share and plans to cancel the AIM quotation. ROX Equity Partners is subscribing for the shares and its loans will be converted into a further 28.7 million shares, taking its stake to 49.3%. This requires government and shareholder approval. Miles Woodhouse will be ROX Equity Partners’ representative on the board. A new chief executive is being sought. Sondrel recognises it needs to manage projects better.
Orchard Funding Group (ORCH) believes that it is not worth being quoted on AIM and the insurance premium finance provider intends to cease paying dividends. The cash can then be used to make a tender offer to shareholders when appropriate.
Active Energy Group (AEG) says that its audit may not be completed by June, which would lead to a suspension of trading in the shares. Cash is running out and management may have to consider liquidating the company. This depends on whether the CoalSwitch assets are sold. There is currently $500,000 in the bank. There is also a 4.1% stake in green technology investor Alpha Prospects, but whether this is really worth the £680,000 book value is questionable.
A trading update from professional services provider FRP Advisory (FRP) shows revenues 23% ahead at £128m and much higher than forecast EBITDA of £37m. Work on corporate administrations is rising, but all five of the divisions grew. Net cash was around £30m at the end of March 2024. Cavendish has raised its 2023-24 pre-tax forecast to £33m with a further improvement to £34.2m in 2024-25.
Phoenix Copper (PXC) says that it has conditionally raised $80m from a bond issue to fund the construction of the Empire copper-gold mine in Idaho. The cash will be drawn down in tranches. The arrangement fee is paid for by the issue of 33.9 million shares. NIU invest is acquiring the bond and it will have the right to subscribe for a 25% stake in Phoenix Copper over a five-year period.
Lower gold production meant that Anglo Asian Mining (AAZ) revenues fell from $84.7m to $45.9m, which meant that it swung from pre-tax profit of $7.5m to a loss of $32m. There were $18m of non-cash impairment charges of capitalised exploration costs and the value of the Libero Copper and Gold investment. All-in sustaining cost of gold production jumped from $1,064/ounce to $1,510/ounce. Total production was 31,821 ounces.
Retail software provider itim Group (ITIM) has secured a five-year contract renewal with Majestic Wine. This is a multi-million pounds contract. This follows the publication earlier in the week of 2023 figures showing revenues 15% higher at £16.1m. Annual recurring revenues were £13.2m. Revenues are expected to increase to £17m this year, but itim will still lose money before a potential move into profit in 2025.
Kohlberg Kravis Roberts has made a recommended bid of 480p/share for IQGeo (IQG), which values the geospatial software company at £333m. KKR believe it can accelerate the growth of IQGeo.
Revolution Bars (RBG) says that it has not received any takeover bid or offer for assets as a whole as part of the formal sale process. There are offers for certain assets, but none would result in any return to shareholders. A restructuring and fundraising plan is still possible, and the board is still open to other plans, possibly by Nightcap (NGHT).
E-commerce firm Huddled (HUD) reported a 2023 pre-tax profit of £13m, but that was due to gains on the disposals of Immotion and Uvisan. The underlying pre-tax loss was £2.29m. Cash of £12.7m was returned to shareholders out of the disposal proceeds, but there was still £4.27m in the bank at the end of 2023. The new core business Discount Dragon was acquired in October, so the figures do not provide a good indication of ongoing operations. Discount Dragon generated revenues of £2.1m in the first quarter of 2024.
Horizonte Minerals (HZM) has appointed FRP Advisory as administrator. The nominated adviser has resigned.
MAIN MARKET
Flavourings supplier Treatt (TET) reported a dip in interim revenues to £72.1m because of destocking, but underlying pre-tax profit improved from £7.3m to £7.6m. There is good momentum in the second half.
Standard list shell Sivota (SIV) has ended acquisition talks with an online technology platform in the travel sector.
Andrew Hore