Home » Posts tagged 'ICON'
Tag Archives: ICON
Quoted Micro 26 September 2022
AQUIS STOCK EXCHANGE
Interim results from renewable energy supplier Good Energy (GOOD) show a jump in revenues, but a fall in gross profit because of tough margin comparisons. There was a pre-tax loss, but a tax credit meant that there was a profit after tax. The supply business is hedged for the second half of the year and government measures will minimise the impact of higher prices on consumers. The interim dividend was maintained at 0.75p a share. There was £22.2m in the bank at the end of August 2022 following the sale of generation assets. Investee company Zap-Map is partnering with Nissan, which will provide a three-year Zap-Map premium subscription with each electric vehicle.
Brewer Adnams (ADB) reported a reduced loss in the six months to June 2022 as trading recovered. There was a 47% increase in revenues to £30.1m. Some rural and coastal pubs are still less busy in the evenings. Demand for the Jubilee was not as high as anticipated. There is less demand for cask beer. Retail sites are becoming a hub for online deliveries. Trading will be tough in the second half.
Newbury Racecourse (NYR) increased interim revenues from £5.37m to £7.81m as the race days and attendances recovered. A loss of £336,000 was turned into a pre-tax profit of £217,000 in the latest six-month period. The lodge returned to profit, while the profits of the nursery and property were maintained. The dividend paid in the period accounts for the decline in net assets from £48.6m to £45.7m. Management is cautious about race day revenues in the second half.
CBD products supplier Love Hemp Group (LIFE) has paid its £70,000 fine, but it has not finalised the appointment of a new corporate adviser. Robert Smyth has been appointed as finance director.
Eight Capital Partners (ECP) generated revenues of £58,000 in the first half of 2022. The interim loss means that the company has net liabilities. In the third quarter, the company earned £1m of fees from Zamaz (ZAMZ), which joined the standard list earlier in this month.
Secured Property Developments (SPD) did not have any revenues in 2021 and it is seeking properties to acquire. Net assets fell from £427,000 to £386,000, including £430,000 in cash.
Interim figures from Igraine (KING) show £766,000 in the bank at the end of June 2022. Management is in talks with potential investments but has not found a suitable company.
Metals recycler Majestic Corporation (MCJ) reported its maiden interim results as an Aquis company. Revenues fell 17% to $12.9m, but gross margins increased, and pre-tax profit improved from $766,000 to $980,000. There was $2.7m in the bank at the end of June 2022.
Gunsynd (GUN) has made a further investment in ASX-listed Charger Metals NL. Gunsynd has invested A$175,000 at 50 cents a share, as part of a larger fundraising of A$5.5m. Gunsynd will own 5.12% of Charger Metals.
Gold explorer Tectonic Gold (TTAU) says that drilling at Specimen Hill in Queensland has intersected mineralisation earlier than expected. The drilling programme should recommence in October.
Quetzal Capital (QTZ) says that investee company Tap Global Ltd has exceeded 100,000 registered users on its crypto-fiat exchange service platform. Quetzal Capital has invested £1.5m in Tap Global convertibles and has an option to acquire the company.
LED lighting and tea trading company Gowin New Energy (GWIN) did not generate any revenues in the first half of 2022, and it still has net liabilities. The chief executive is funding working capital requirements
Samarkand Group (SMK) has raised £1.98m via an open offer at 55p a share. The cash will finance further growth.
AIM
Judges Scientific (JDG) reported an 8% increase in first half revenues and pre-tax profit improved from £8.5m to £9.6m. The international spread of activities has helped the company to grow. UK sales declined, but they had held up much better in the corresponding period. The interim dividend was raised from 19p a share to 22p a share. The order book stretches out for 21 weeks. WH Ireland has upgraded its full year pre-tax profit forecast from £22.4m to £26m.
Small business finance provider Time Finance (TIME) has frustrated investors with a lack of profit growth in recent years and 2021-22 was not different. However, the new management team has been focusing on its core products and the benefits of this should start to show through this year. Ther are available bank facilities to increase the loan book. Cenkos forecasts an increase in pre-tax profit from £3m to £3.5m. The shares are trading at a discount to net assets of around 50%.
European trading exchange operator Aquis Exchange (AQX) expects to have a strong second half. Aquis Exchange, which is also quoted on AIM, reported interim revenues 21% ahead at £8.3m, although profit was lower due to investment in the technology business. The Aquis Stock Exchange is profitable. The technology division has won contracts that will boost the second half – as well as 2023 – and full year pre-tax profit is expected to rise from £3.2m to £4.2m. The second half will also benefit from the relaunch of the former UBS dark pool trading operation. This should help to rebuild the company’s market share of equity trading.
Brain health assessment technology Cambridge Cognition (COG) increased interim revenues by 31% to £5.9m and the contracted order book is worth £18.6m. The main growth in revenues came from software, but the additional gross profit was used up by increased investment so there was a smaller pre-tax profit of £16,000. There is £8.6m in the bank so there is enough cash to finance planned investment in the technology.
Delays in demand from the automotive market meant that Strip Tinning (STG) revenues declined in the first half. This meant that the company fell into loss. The longer-term outlook for connectors for batteries for electric vehicles is significant. Price rises have been implemented to cover cost increases. There are potential electric vehicle contracts with an annual value of £47.9m, although not all will be won. This should more than make up for the contract recently terminated.
Credit hire and legal services firm Anexo (ANX) continues to trade strongly with interim revenues 42% ahead at £68.6m with no contribution yet from the VW emissions case. There is a small but increasing contribution from housing disrepair claims. Pre-tax profit improved by 53% to £13.6m. This year, pre-tax profit is expected to improve from £24.1m to £26.6m – a small downgrade.
First half figures from cosmetics supplier Warpaint London (W7L) were well flagged and it had already said that revenues in the eight months to August improved from £27.1m to £37.5m. Demand for the main brands is increasing and as well as new retail clients, existing retailers are rolling out the products in more stores. Full year revenues should be more than one-fifth higher at £61m and pre-tax profit could be more than £9m.
Digital coupons and loyalty technology provider Eagle Eye (EYE) reported an improved full year pre-tax profit of £2.5m. Recurring revenues and new contracts provide a positive start to the new financial year. Eagle Eye is growing internationally with enormous prospects in North America, as well as other markets. Cash generation was higher than the capitalised development costs and cash should increase this year.
Parcel and freight delivery company DX (DX.) has completed its corporate governance investigation and says it will improve its processes. It has also published the 2020-21 accounts, but the shares remain suspended.
MAIN MARKET
Retailer Made.com (MADE) has launched a strategic review 15 months after floating on the Main Market. Consumer spending is declining and there have been supply problems. Freight costs increased from £8.2m in 2020 to £45.3m in 2021 and they remain at high levels. The company has been reducing marketing spend, stocks and capital investment. Even so, more cash is required but a share issue is not viable.
First Tin (1SN) has commenced drilling at the Taronga tin project in Australia. Two of the three holes drilled so far have intersected tin ore mineral.
Sivota (SIV) has published the prospectus for the acquisition of digital experience software developer Apester Ltd. The acquisition of the Israel-based company will be completed and Sivota shares readmitted on 26 September.
Trading in the shares of shell company More Acquisitions (TMOR) has been suspended ahead of the acquisition of Megasteel, which is a distributor of steel for concrete. The payment will be between 2.2 billion and 2.8 billion shares at 2.25p each, which is more than double the market price. Megasteel has been trading for more than three decades. Last year’s pre-tax profit was £3m.
Icon Labs (ICON) creditors have agreed a CVA, and shareholders passed the relevant resolutions at a general meeting.
Andrew Hore
Quoted Micro 5 September 2022
AQUIS STOCK EXCHANGE
Cancer treatments developer Incanthera (INC) says that commercial discussions continue for skin cancer treatment Sol and there is potential for a Sol-based product range. There is still £295,000 of cash in the balance sheet at the end of March 2022. The Actino-Pro brand has been trademarked. There was a cash outflow from operations of £660,000 in the previous 12 months. Two directors have provided a loan facility of £190,000, of which £50,000 has been drawn. The directors have waived their remuneration and a payment to UOB has been deferred. Management believes that Incanthera will have enough finance until the fourth quarter of 2023. Potential partners could take advantage of the lack of cash when doing a deal.
S-Ventures (SVEN) has acquired Lizza, a wellness and free-from food brand, from Peter Cremer Holding. The Hamburg-based agricultural business is subscribing £2m for shares in S-Ventures at 70p each. The share price has never traded at that level. Lizza produces pasta and breads and provides S-Ventures with a base in the German market. Revenues were €4.5m in 2021. The initial cost of the deal is €1, but there is an earn-out based on a share of profit over ten years up to a maximum total of €2.366m.
Healthcare IT developer DXS International (DXSP) is reviewing its growth plans for the next 24 months. The new strategy will be designed accelerate growth and is likely to require additional funds. They will probably be raised through a share issue and that appears to have worried investors.
KR1 (KR1) has invested $300,000 in RedStone Finance, as part of a $7m fundraising. KR1 participated in the previous financing round. RedStone is developing RedStone Oracles, a provider of data feeds for crypto assets, and smart contract platform provider Warp Contracts.
Rent guarantee service provider RentGuarantor Holdings (RGG) published interim results showing a jump in revenues from £91,000 to £170,000. Higher admin expenses meant that the loss increased from £258,000 to £353,000. Revenues continued to improve in July and August.
Tectonic Gold (TTAU) says 40%-owned Whale Head Minerals has received a mining permit for its near-production minerals sands operation, which has an estimated NPV of £150m. Tectonic Gold has agreed to transfer a 30% stake to Whale Head Minerals’ BEE partners, which have mining expertise, and it will retain a non-diluting interest of 10%.
Invinity Energy Systems (IES) says contract manufacturer Baojia has shipped 1.1MWh of Invinity batteries from its factory in China designed for the project with Elemental Energy in Canada. Final assembly and testing will be done by Invinity Energy Systems at its factory before delivery.
TECC Capital (TEC) has invested a further £200,000 in convertible loan notes in EDX Medical. This takes the total investment in convertibles to £500,000, which is guaranteed by EDX Medical founder Professor Sir Chris Evans. Discussions continue about the acquisition of EDX Medical.
Vulcan Industries (VULC) has sold tacks and nails manufacturer IVI Metallics for £1. The business had net liabilities of £458,000 and it has struggled to rebuild its order book. Vulcan Industries still provides a cross guarantee for the CBIL liability of £739,000.
SuperSeed Capital Ltd (WWW) says that SuperSeed Fund II has led a $3.6m investment in brand advocacy platform Duel. The software-as-a-service platform helps retail brands grow via positive feedback from customers. ASOS, Unilever and Mint Velvet are among the clients.
Evrima (EVA) has an 8.93% stake in Kalahari Key, which has provided an update on the Molopo Farms Complex project. A diamond drilling contract has been signed with a Botswana-based company.
Yooma Wellness Inc (YOOM) increased interim revenues from $2.78m to $6.49m and the loss has been reduced from $5.57m to $3.83m. CBD product sales were strong in Europe and Japan. The company has been reducing its expenses.
Clarify Pharma (PSYC) had cash of £2.1m at the end of May 2022. It is seeking investments in the medical use of psychedelics.
Oscillate (MUSH) had £1.91m in the bank at the end of May 2022, although £600,000 has been invested in Aquis-quoted Psych Capital (PSY) and fully listed Dev Clever (LON: DEV).
AIM
Futura Medical (FUM) says that the clinical study for the MED3000 topical gel erectile dysfunction treatment has met its primary and secondary endpoints. The study showed an improvement in erectile function and a highly statistic improvement in the onset of action at 10 minutes. There were limited side effects with 4.3% of patient suffering headaches and a further 4.3% nausea, which is much better than rival treatment tadalafil. The next move is submitting MED3000 for FDA review as a De Novo medical device for the over-the-counter treatment of erectile dysfunction. This could lead to marketing authorisation by the first quarter of 2023. MED3000 has received the UKCA mark.
Neurocrine Biosciences Inc is making a recommended bid of 27.5p a share in cash for hormonal disease treatments developer Diurnal (DNL), which values the company at £48.3m. The April 2021 placing and open offer was at 70p a share and the share price has slumped since then. Revenues have not built up as fast as hoped and another cash raising is on the horizon if Diurnal stays independent.
Pharma software provider Instem (INS) has gained its largest ever contract. The deal is worth at least $12m over five years. The client is a contract research organisation and is for the company’s cloud-based Aspire clinical trial acceleration software, which will be launched with the customer in one year. There is $3m for implementation and the rest is paid in instalments of $2.25m a year over four years. The annual recurring revenues are $1m more than for the Instem system that is being replaced.
Egg-free cakes retailer Cake Box (CBOX) says trading is becoming more difficult and only part of the cost increases it is suffering are being passed on to franchisees. Sales are also under pressure with a like-for-like decline of 2.8% so far in this financial year. This means that full year profit will be much lower than the £7.2m expected. There is £6.7m in cash, although the £2m dividend will be paid in September. Chief executive Sukh Chamdal acquired 225,000 shares at 121.85p each.
Telephony services provider LoopUp Group (LOOP) has taken on a book of conference service contracts from a US competitor for no initial payment. There is a revenue share agreement for three years to October 2025. These contracts could generate cash of £5m a year, although it may reduce due to customer churn. This is much-needed cash flow for the business, which is still heavily loss-making. The new bank facility is £17m and that more than covers the expected net debt at the end of 2023.
Oil and gas producer PetroNeft Resources (PTR) has an oil storage and transportation contract with Nord Imperial for production from licence 61 in Tomsk Oblast, Russia at a cost that is far above standard market rates. PetroNeft has tried to change the contract and started paying reduced amounts, but Nord Imperial has suspended acceptance of oil. PetroNeft is shutting down its wells, which will hit income. Licence 67 is not affected and is producing 270 barrels of oil per day.
Independent directors of market research firm System1 Group (SYS1) are conducting a strategic review and the proposed tender offer has been postponed. This review will assess whether the company can grow faster if partners or an external investor are brought in.
MAIN MARKET
Zamaz (ZAMZ) joined the standard list last Friday and raised £3.69m. Cornerstone investor Atlas paid 10.45p a share, which is a 5% discount to the nominal subscription price. Most of the cash will go on expenses and repaying existing bonds. Zamaz believes that its technology platform can help to efficiently build direct to consumer brands via e-commerce. Amazon is currently the main marketplace used by the company. There is already a portfolio of brands in the group, but most are at an early stage of their development. There are plans to acquire more brands. Revenues are relatively modest and Zamaz is losing money. The share price fell to 9.48p (8p/10.95p) on the first day. There were 90,000 shares traded in one deal at 10.95p. The shares are tightly held and there is potential dilution from the convertibles worth up to £15m that could be issued to Atlas Capital Markets and the associated warrants.
First Tin (1SN) has announced positive intercepts at the latest two drill holes at the Gottesberg tin project in Germany. These and other results validate the belief that a higher grade core exists within the deposit.
Iconic Labs (ICON) has settled disputes and has finalised proposals for a company voluntary arrangement. If this goes ahead then the administration will end and trading in the shares may recommence once up to date results have been published. The shares have been suspended for around 15 months.
Andrew Hore
Andrew Hore – Quoted Micro 10 February 2020
NEX EXCHANGE
Wheelsure Holdings (WHLP) is in discussions with providers of additional finance. Sales increased and costs were reduced in the year to August 2019. Two-fifths of sales come from Transport for London, where the Tracksure locking device is mandatory for one application.
The transfer of the exploration licence for the area surrounding the Hellyer gold mine to NQ Minerals (NQMI) has been approved.
Gunsynd (GUN) says that its 6.18%-owned investee company Brazil Tungsten is short of cash and needs to raise money at a discounted share price or go into administration. The value of the investment has already been written down and it is in the balance sheet at £400,000, which is 17% of Gunsynd NAV. This could be written down to nil.
Smaller company investor Gledhow Investments (GDH) made a £110,000 gain on disposals after overheads. The NAV was £884,000 at the end of September 2019, compared with a market capitalisation of £500,000 at 0.95p/1.25p. There was cash of £125,000 at the end of September 2019. This was before the £95,000 gain (£220,000 proceeds) on the disposal of shares in Yolo Leisure and Technology, now Asimilar (ASLR), and the takeover proceeds of £81,000 for Netalogue Technologies.
Rutherford Health (RUTH) has treated more than 100 cancer patients at its proton beam therapy centres.
IamFire (FIRE) has reduced non-core costs and is seeking acquisitions that do not require a lot of capital. The hydrocarbon licences in Botswana have been relinquished. An interim profit was reported, but there was a £88,000 cash outflow from operating activities because trade payables were reduced.
Gowin New Energy 2% preference shares (GWPT) have been admitted to NEX. Up to £5m of preference shares will be issued. The cash will be loaned to the tea business of 15%-owned Goyoung International.
Telecoms hardware manufacturer Filtronic (FTC) reported lower interim revenues from continuing activities but margins improved because of a change in product mix. Capacity is being increased at the Sedgefield factory. There was £121,000 in the bank at the end of November 2019. That is before the $5.5m from the disposal of the antennas business. Growth is coming from defence and mmWave (X-Haul products) that are used in the 5G mobile market.
More good news from Touchstone Exploration Inc (TXP) as the results of the test well at Cascadura were better than expected. The rate during the test was more than 5,000 barrels of oil equivalent per day. There will be a pressure build up test. There should be further news in March. Shore has increased its risked NAV estimate by one-fifth to 48p a share.
Andalas Energy and Power (ADL) has appointed Leslie Peterkin as chief executive and Mark Rollins as chairman. They have experience in the oil and gas sector. Andalas also raised £525,000 at 0.15p a share, which was a 20% premium to the market price, and most of the cash came from the two men. Dr Robert Arnott and Simon Gorringe have stepped down from the board. The company is changing its name to Advance Energy.
DP Poland (DPP) increased system sales by 13% last year with 3% like-for-like growth. The pizza stores operator improved its performance during the year and there was an acceleration of growth in the second half. DPP has 69 stores with six opened last year. There was still £3.6m left in the bank at the end of 2019.
Volvere (VLE) has made another food manufacturing acquisition. Essex-based Indulgence Patisserie is in administration and the desserts maker is costing £1.25m. Freehold premises and equipment is being acquired. The business lost £230,000 on revenues of £3.3m. Volvere already owns pie maker Shire Foods, which has an overlapping customer base.
PCI-Pal (PCIP) says interim revenues were 70% higher at £2m. Total annual contract revenues are £5m. There is a small net debt figure with a further £1.25m of facilities. The PCI compliant payment services provider will still lost money this year.
Mergers adviser K3 Capital (K3C) reported improved interim figures even though trading conditions remained tough. A full year pre-tax profit of £7.4m, similar to two years ago, is forecast. The interim dividend was raised from 3.6p a share to 3.7p a share and the total dividend is expected to increase from 7.6p a share to 11.4p a share. If K3 can maintain its interim margins, then the full year outcome could be better.
Argentina-based oil and gas producer President Energy (PPC) had a disappointing 2019 with revenues declining by 13% to $41m because of an oil price cap. The company traded at breakeven. A return to a significant profit is expected in 2020.
Greatland Gold (GGP) says that maiden drilling at Derby North on the Warrentinna project in Tasmania has intersected high-grade gold mineralisation. This is more good news following the plans to announce a maiden resource for Havieron before the end of this year. NCM has spent enough money to earn a 30% stake in Havieron. This will be increased to 40% after another $10m of spending.
MAIN MARKET
Nuformix (NFX) says that it still has not received the £2.5m it is owed by NSB. Despite assurances the money has not been paid and the therapeutics company’s contact has been dismissed. Dave Tapolczay has resigned as chairman.
Standard list shell Stranger Holdings (STHP) had £100,000 in the bank at September 2019 and it has started the fundraising process for the reverse takeover of two companies with technology mineral assets in Africa and the US.
Social media company Iconic Labs (ICON) is generating revenues and has relaunched the Gay Star N website, which is trading better than expected. Icon is still trying to sort out its historic financing agreements and difficulties. Additional facilities have been provided by the existing finance provider, which has agreed to reduce previous amounts owed by 30%. Again, though, the new finance is in the form of convertibles, so yet more shares are likely to be issued.
Landscape Acquisition Holdings (LAHL) expects the proposed acquisition of AP WIP Investment, which generates rental income from wireless telecom assets, in early 2020. There is $501m in the bank and the acquisition should cost $333m.
Andrew Hore
Andrew Hore – Quoted Micro 6 January 2020
NEX EXCHANGE
Cannabis-related investment company Greencare Capital (GRE) joined the NEX Growth Market last Monday. Greencare raised £514,000 at 25p a share. The rest of the shares were issued at 1p each, raising £100,000. The pro forma NAV is just over 4p a share. The largest shareholder is E Value One with 66.3%, which is owned by Dominic White, who is chairman of fellow NEX-quoted company Eight Capital Partners (ECP) which has a 21.2% stake. Eight Capital acquired 1.5 million of its shares at 1p each and 1.06 million at the subscription price – just over 50% of the subscription shares. Greencare has already identified its first investment, which is a consumer-focused distribution business that has a leading position in one of the larger European markets. The distribution activities cover 30,000 points of sale and that could increase to 45,000. The plan is to acquire an initial 10% stake. Due diligence is being carried out and the investment could be made early in 2020.
European Lithium (EUR) has agreed €7.5m of debt financing that lasts two years and has an annual interest charge of 5%. This is secured on the Wolfsberg lithium project in Austria. The cash will fund the completion of the definitive feasibility study and repay the existing convertible note facility. The Wolfsberg mining and exploration licences have been extended.
BWA Group (BWAP) says that its subsidiary has been awarded an exploration licence in central Cameroon. This will enable the assessment of commercial exploitation of rutile sands, kyanite, ilmenite, zircon and other minerals. The permit lasts for three years with a financial commitment of £650,000 over the period. This has taken four years to negotiate.
Walls and Futures REIT (WFR) has completed the redevelopment of its Didcot property and it has been let on a 25-year lease to a large care provider. NAV was £3.3m at the end of September 2019.
VI Mining (VIM) has secured a partnership with an established operator in Peru so that commercial operations can commence at the Cushuro mining concession in the second quarter and the Oro Pesa plant can be up and running in the third quarter. They will be owned by 50/50 joint ventures. The Minaspampa and Rosario de Belen concessions are being returned to the previous owners, although VI Mining will have a buy back option.
Healthcare professionals recruiter SG Recruitment Ltd (SGRL) grew interim revenues by 13% to £386,000, while operating costs were halved. There was still a £379,000 loss. SG has secured a contract with Leeds Teaching Hospitals NHS Trust covering seven hospitals. Further mandates are expected from the NHS and in the Middle East.
Adnams (ADB) director Guy Heald has increased his B shares stake from 15.1% to 17.15%.
Alexander David Securities has resigned as corporate adviser to EcoVista (EVTP) and trading in the shares has been suspended until a replacement is appointed.
AIM
Bango (BGO) grew 2019 revenues by more than 40% even though two contracts were not closed by the end of the year. That means that 2019 revenues of the digital payments technology provider will be £2m lower than anticipated. The 2020 forecast revenues have been reduced by £2.6m to £14.2m, although a £600,000 pre-tax profit is expected.
Communications services provider Mobile Tornado (MBT) expects second half revenues to be £1.8m, taking the total for the year to £3.3m. There have been delays in deployments. The company remains loss-making.
Redx Pharma (REDX) could be subject of a bid by a syndicate headed by Samuel D Waksal. The £2.5m loan from Moulton Goodies will be swapped for shares instead of repaying it at the end of 2019. This requires shareholder agreement.
Adams (ADA) has bought 2.4 million shares in Circassia Pharmaceuticals (CIR) at an average price of 19p each. That takes the stake in Circassia to 0.82%. Adams still has £1m in cash.
Tri-Star Resources (TSTR) says that its 40%-owned antinomy and gold production facility operator SPMP is currently in technical default of its banking facility. Tri-Star had guaranteed 40% of the bank facility, but it says that this no longer holds because commercial production has commenced. This still has to be independently certified. Any additional short-term finance provided to SPMP could lead to a dilution of the Tri-Star stake. SPMP’s production facility requires up to $160m of additional investment in order to reach 100% capacity, but there have been no suitable offers of this finance as yet. There is no certainty that the financing can be achieved.
Residential property development funder Urban Exposure (UEX) says that 2019 operating costs will be lower than expected due to lower remuneration and fewer people being hired. The 2020 operating costs will be reduced to around £9.5m and that will enable the company to be profitable. There is no additional news about the proposals for the future of the company. Urban Exposure has also agreed to pay £400,000 to Jones Laing LaSalle in relation to an agreement by former companies, which are being wound down, to pay introduction fees. This settles the claim.
Trading in Attis Oil and Gas (AOGL) shares has been suspended ahead of details of a deal to acquire a North America-focused oil and gas company and the disposal of non-core assets. The acquisition will bring assets and experienced management.
Trans-Siberian Gold (TSG) has signed a new tariff for its electricity. The previous tariff was RUR4.69/kWh and the new agreement is for RUR4.75/kWh, which is still much lower than the standard tariff.
Livermore Investments Group (LIV) is paying an interim dividend of $0.0343 a share on 21 February.
MAIN MARKET
David Sefton has stepped down as chairman of social media company Iconic Labs (ICON) because of market speculation about his involvement with AIM-quoted Anglo African Oil and Gas (AAOG) where he was executive chairman until 13 September 2019. He has not been involved since then. Sefton will continue to be involved with Iconic Labs, where the share price has nearly halved in the past four months. The resolution to allow directors to allot shares without offering them to existing shareholders was not passed at the AGM. Anglo African Oil and Gas has not made the progress it wanted to with its oil and gas interests and it plans to sell its main asset in Congo to Zenith Energy (ZEN). Jub Capital is trying to put a stop to that and has present alternative proposals. This would involve stopping the sale and providing additional cash via a subscription of £100,000 and a $5m loan facility. Jub would also buy the shares owned by RiverFort and that would provide an additional £722,000 to the company.
Anglo African Agriculture (AAAP) has postponed the reverse takeover of Kenya-based port and marine logistics group Camarco. The long stop date for the deal is being extended. A version of the deal is likely to go ahead, but there could be private equity investment in one or more of the subsidiaries.
OTHER MARKETS
Former standard list company Cleantech Building Materials has entered into a three-year offtake agreement with a customer in Thailand. Nasdaq First North Copenhagen-quoted Cleantech Building Materials has the exclusive rights to manufacture Accoya wood (AIM-quoted Accsys Technologies (AXS) owns the technology) in China.
Andrew Hore
Andrew Hore – Quoted Micro 4 November 2019
NEX EXCHANGE
Chapel Down Group (CDGP) has managed to generate 92% of 2018’s record harvest in volume terms for the company’s wines. This was achieved even though the weather was not as good this summer. Some vineyards produced their first crop and are still maturing.
Belvedere Leisure Resorts plans to gain a quotation on the NEX Growth Market for its bonds on 22 November. The company is a subsidiary of Belvedere Leisure Park, which owns a site in Dumfries & Galloway with planning permission for a lodge park resort of 444 holiday lodges. The park will be built by Landal GreenParks. The bonds will offer a coupon 6.25%. An initial £10m of bonds will be admitted with a maximum of £25m expected to be raised.
First Sentinel (FSEN) is seeking shareholder approval to issue Green Finance preference shares, which would be quoted on NEX. The cash raised will be invested in the renewable energy sector. A general meeting will be held on 18 November. Warrants have been exercised at 10p a share and this has raised £400,000 for First Sentinel.
Mechanical and electrical design and installation company Field Systems Design Holding (FSD) reported a decline in revenues from £25.9m to £21.8m in the year to May 2019. Higher gross margins meant that the decline in the pre-tax profit was limited and it fell from £625,000 to £553,000. Water generated four-fifths of revenues, up from 48% the previous year. There are no solid spending forecasts, as yet, for the latest water capital investment period for between 2020 and 2025. This causes some medium-term uncertainty. The order book is worth £8.2m, compared with £12m one year earlier. There is a pension surplus.
KR1 (KR1) has made three more investments in blockchain-related tokens. A $100,000 cash investment and payment for advisory expertise will earn 1.017% of Vega tokens issued. Vega is developing a decentralised and censorship-resistant blockchain trading platform. A further $266,220 has been invested in Edgeware smart-contract platform tokens and they will be locked up for 12 months. KR1 will receive 1,000 Ether and this will translate into 3.8 million Edgeware tokens. KR1 has spent $50,000 on a minimum stake of 0.625% in Commonwealth Labs, which is helping to market the Edgeware platform.
Allenby Capital has published a research note on cannabis products supplier Sativa Investments (SATI) and it forecasts revenues of £1.64m in 2019 and £5.15m next year. This will not be enough to make Sativa profitable. Allenby believes that it may have to raise £6m next year to cover its cash outflows and maintain net cash. Sativa has changed the brand name from George Botanicals to Goodbody Botanicals.
Imperial X (IMPP) has raised £347,000 at 2.5p a share. This represents 27.3% of the enlarged share capital.
NQ Minerals (NQMI) increased lead concentrate production at the Hellyer mine from 5,452 tonnes in the second quarter to 6,656 tonnes in the third quarter, but zinc and pyrite concentrate production declined. However, recovery levels have improved for both lead and zinc.
BWA Group (BWAP) intends to sell its investments in Prepaid Card Services and a mining project in Cameroon. They are in the balance sheet at a value of £608,000. The focus will be gold explorer Kings of the North. St-Georges Eco-Mining is converting £300,000 of the £2.45m of convertible loan notes at 0.5p a share. This is equivalent to 23.75% of the enlarged share capital. The loan notes were issued to acquired Kings of the North Corp. BWA is still waiting for £88,000 of the £100,000 of convertibles issued for cash.
Black Sea Property (BSP) has published its 2018 accounts, but it will have to publish its interims before trading in the shares recommences. Management says that it is addressing the accounting concerns of its auditor BDO. The NAV was 0.95 cents a share at the end of 2018.
Asia Wealth Group Holdings (AWLP) reported a drop in revenues from $1.24m to $797,000. This meant that the company fell into loss. There is $726,000 in the bank at the end of August 2019.
Ganapati (GANP) improved its interim revenues from £2.19m to £2.33m, but higher admin expenses meant that the reported loss more than trebled to £8.5m. The company continues to develop its online gaming platform.
TechFinancials (TECH) has completed the sale of a loss-making asset for €100,000.
Queros Capital Partners (QCP) is asking shareholders to approve the ending of the NEX quotation. The general meeting will be held on 14 November.
AIM
Duke Royalty (DUKE) has made a follow-on investment in Lynx Equity, to help the company to finance the purchase of Denmark-based steel staircases supplier Sundby Trapper. This means that Duke has exposure of £12m in Lynx and it will receive annual distributions of £1.6m.
Space management software supplier Smartspace Software (SMRT) is paying £3.2m in cash and shares for Australia-based Space Connect, a provider of cloud-based workplace management software for room booking, desk management, catering and workspace analytics. This will save up to £1.2m a year on product development over two years. The software can be rolled-out in the UK. Smartspace made an interim loss of £4m.
An investor group intends to increase its stake in Petrel Resources (PET) from 29.99% to 51% via a share issue at 1.25p each. They will offer potential oil and gas-related investments to Petrel.
Cabot Energy (CAB) has decided to ditch its AIM quotation on 3 December, but it intends to have its shares matched on Asset Match. This will have to be approved by shareholders. The Canada-focused oil and gas company wants to reduce its overheads.
RedT Energy (RED) plans to merge with Avalon Battery Corporation and combine the best features of each company’s technology. Bushveld Minerals (BMN) is providing an interim loan facility prior to the raising of £23m of new funds.
Avingtrans (AVG) is already reaping the benefits of the acquisition of Booth Industries, thanks to a £7.2m safety doors contract from the government. That means that £12m of orders have been won since the purchase in June.
Safestay (SSTY) is buying a hostel in Athens for €1.5m. The hostel has been operating since 2008 and has an 18-year lease. Safestay has also completed the purchase of the Best Western Glasgow City hotel for £3.15m and this will be transformed into a 200-bed hostel.
MAIN MARKET
Stevia producer PureCircle (PURE) has won a legal decision in its patent litigation with SweeGen, which challenged the patent. It will pursue Federal District court litigation against SweeGen. The patent is for the process of producing Reb M stevia sweetener via bioconversion. The shares remain suspended because it has not published the results for the year to June 2019.
Meditor is considering a 5p a share offer for carpets retailer Carpetright (CPR) and without this offer thee would need to be a refinancing of £80m of debt and additional working capital.
Motor dealer Lookers (LOOK) has warned that its 2019 figures will be even worse than previously thought and chief executive Andy Bruce and chief operating officer Nigel McMinn have left the board. The pre-tax forecast has been cut from £38.7m to £15.5m, compared with £53.9m in 2018. Third quarter new car unit sales fell by 3.2% (on a like-for-like basis), compared with the market decline of 0.6%.
InnovaDerma (IDP) is launching a new topical product in Superdrug before the end of June. The full details will be announced nearer the launch.
The chairman and chief executive of Rainbow Rare Earths (RBW) have acquired 5.46 million shares at 3p each and they have a combined shareholding of 27.5%. Further cost reductions have been identified for the Gakara project in Burundi. A further 100 tonnes of rare earth oxides concentrate were shipped in October. Production levels will fall in the short-term as the production focus moves to a mechanised operation.
Cryptominer Argo Blockchain (ARB) has doubled its mining equipment order and changed the machines it is buying. The cost has been reduced from $13.1m to $9.51m. The machines are more efficient. The current machine orders will increase capacity by 240%.
Resources cash shell Mila Resources (MILA) is still seeking a deal. There was £429,000 in cash at the end of June 2019. Another shell, Bermele (BERM), is also still seeking a deal. It had £682,000 in cash at the end of July 2019.
Blencowe Resources (BRES) is acquiring the Orom graphite project in Uganda for £2m in shares at 6p each. This is subject to a fundraising.
Iconic Labs (ICON) slipped out its results for the 18 months to June 2019 at 6.28pm on 31 October. They show a £6.12m loss, of which, £308,000 was from continuing operations. Net liabilities were £1.67m.
Andrew Hore
Andrew Hore Quoted Micro 12 August 2019
NEX EXCHANGE
Imperial X (IMPP) non-executive director Melissa Sturgess has sold 4.615 million shares at 2p each and she retains an equal number of shares. The total stake was acquired at 1p a share, so she has effectively made her money back. Imperial X is moving into the cannabis sector. Charles Morgan, a relation of Melissa Sturgess, converted £46,150 of loan notes into 4.615 million shares.
NQ Minerals (NQMI) has invested a further £150,000 Tasmania Energy Metals through a convertible loan, taking the total investment to £450,000. The exclusivity period relating to the acquisition of an option over the company’s assets has been extended to the end of October 2019. NQ would have nine months to exercise the option in return for shares worth £5.5m. The latest investment will be used to develop a facility that would produce nickel and cobalt salts for electric vehicle batteries.
Founder Stephen Minion has resigned from the board of Ashley House (ASH) so that there are no conflicts of interest between his role as a director and his other interests. He is chairman and major shareholder of Invescare, which has provided a loan to Ashley House.
iGaming software developer Ganapati (GANP) says that its Malta-based subsidiary has signed a resale agreement with BetConstruct, which will provide the company’s slot games to its integrated operators via its platform. Another deal is with PG Entertainment and this will make Ganapati’s games available in Latin America via a smartphone platform.
Asia Wealth Group Holdings Ltd (AWLP) improved pre-tax profit from $150,000 to $268,000 in the year to February 2019, partly due to a reduction in impairment losses. The company is looking at fintech acquisitions.
The conversion of loan notes in Equatorial Mining and Exploration (EM.P) has led to the issue of just over nine billion shares. There are 24.2bn shares in issue.
Valiant Investments has changed its name to Eurocann International (BUD).
AIM
Oil and gas company Amerisur Resources (AMER) has effectively put itself up for sale and multiple companies are interested in bidding. They are being provided confidential information. The formal sale process continues.
Execution only broker Share (SHRE) made a first half profit even though stockmarket trading conditions and volumes have been poor and the dividend from Euroclear was moved to the second half. Revenues increased 9% to £11.1m as interest income grew. Account fees have been increased. Share is benefiting from its digital investment. The 20,000 accounts being taken on from JP Morgan will contribute from September. A full year profit of £400,000 is forecast.
Credit hire and legal services provider Anexo (ANX) is trading more strongly than expected, even after previous upgrades. Management has managed to reduce insurance costs. The full year pre-tax profit forecast has been increased by 15% to £23m and next years by 14% to £25m.
Artificial intelligence-based physician platform DocDoc, where Adamas Finance Asia (ADAM) is an investor, has raised $13m. Adamas led the convertible loan note financing for the Singapore-based company. DocDoc operates in eight countries. Hong Kong-based CASIL Clearing has reduced its stake in Adamas from 6.9% to 2.9%. Pello Capital has been appointed joint broker.
Presidential Energy (PPC) is not making the progress it hoped to, but profit is improving. The share price of the Argentina-focused oil and gas company has been declining. finnCap describes its estimates for average production and EBITDA as “challenging” due to delays and disruptions. It has been forecasting EBITDA of $27.9m due to an oil price estimate that is above current levels, whereas the company believes it could be around $20m. There are no plans to change the forecast until the interims are released in September.
StatPro (SOG) increased organic annualised recurring revenues by 3.2% to £56.5m in the first half. The asset management performance software provider increased interim revenues £27.2m to £28.3m, while pre-tax profit improved from £2.37m to £2.66m due to flat operating costs. Net debt is £24.2m.
Richard Bernstein has increased his stake in Ultimate Sports Group (USG) from 27% to 29.8%. Bernstein has an agreement with Ultimate where he would receive 1% of the value of the first acquisition he introduces to the company as long as it is completed by 30 September. Matthew Farnum-Schneider has been appointed chief executive of Ultimate. He has been granted a range of options. Some are exercisable at 20p a share, which is just below the current share price, some at 40p a share and others at 60p a share. Geoffrey Simmonds has left the board.
Urban Exposure (UEX) is not going ahead with a proposed issue of 6.5% secure sterling bonds 2026 because of market conditions.
MAIN MARKET
S and U (SUS) says demand for motor finance has been strong in the first half, even though the quality of business has been increased. The Aspen property bridging finance business has net receivables of £24m and is growing gradually in a weak housing market. Borrowings are just over £125m and there are additional facilities of £35m. The interims will be published on 24 September.
Construction company nmcn (NMCN) increased interim revenues from £161.2m to £184m, while pre-tax profit improved from £2.5m to £3.5m. The former North Midland Construction had net cash of £15.6m at the end of June 2019. The order book is worth £456m with the main increase coming from the built environment division, which accounts for one-fourth of the order value. A full year profit of £7.4m is forecast.
Iconic Labs (ICON) is making its first acquisition since transforming itself from stem cell services provider WideCells into a social media marketing business. Iconic has agreed to acquire social media agency Social Alchemist. Iconic Labs is still in a poor financial state. There are £600,000 of legacy debts that have to be paid, plus £400,000 that is disputed. The European High Growth Opportunities Securitization Fund will provide up to £1.375m in six tranches in return for loan notes. This is dependent on a prospectus being issued within six months. This prospectus will enable warrants to be attached to the loan notes. There are also more shares to be issued under the previous financing agreement.
Argo Blockchain (ARB) generated 163 bitcoins in July and these are valued at £1.36m. They were mined at a margin of 80%. More mining machines have been ordered and will be up and running by the fourth quarter. This investment will quadruple capacity. Argo could be highly profitable in the second half with a full year pre-tax profit of £6m.
Andrew Hore