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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 6 February 2023
AQUIS STOCK EXCHANGE
Altona Rare Earths (ANR) is raising £275,000 via a convertible issued to clients of Optiva Securities. This is convertible at the upcoming £1.25m placing at the time of the move to the standard list and will fund an increase in the shareholding in the owner of the Monte Muambe rare earths project. Align Research has extended its £150,000 loan and with interest £189,750 will be payable on 30 April.
Marula Mining (MARU) is seeking to move to AIM. Cairn has been appointed as nominated adviser and a joint broker with Monecor will be appointed. A competent persons report on the portfolio of assets in Africa will be commissioned. At 6.1p, down 5.43% on the week, the battery metals company is valued at £1.6m. That is low for an AIM company.
Cadence Minerals (KDNC) investee company European Metals Holdings (EMH) says the Cinovec project has been classified as a strategic project for the Usti region in the Czech Republic. This means it can receive grants from the Just Transition Fund. The Cinovec project could receive a up to €49m.
The latest investment by Quantum Exponential (QBIT) is in Oxford Quantum Circuits. The £299,997 investment, for a 0.34% stake, is part of a £869,000 funding round. Oxford Quantum Circuits designs super conducting circuits and plans to expand in Asia.
A company owned by NFT Investments (NFT) executive chairman Jonathan Bixby bought 10 million shares at 0.855p each, taking his stake to 6.43%. NFT investments has secured a temporary restraining order in Delaware that freezes the online warrant holding assets secured in the cybersecurity incident.
Coinsilium Group Ltd (COIN) says that it invested $575,000 in crypto currencies and also entered into advisory work with the issuers. The company says that the crypto currency markets are recovering in 2023. Despite that, Web3 projects have more realistic valuations making them attractive to investors.
KR1 (KR1) has made four new investments in HydraDX and related Basilisk tokens, Superchain, Argent and Metaprime. HydraDX and Argent were existing investments. The total investment is just over $1m.
There have been delays in the provision of the £200,000 bridge loan to TruSpine Technologies (LON: TSP) and it should be received shortly followed by the first tranche of the subscription.
Lift Global Ventures (LFT) has invested £750,000 in convertible loan notes issued by Trans-Africa Energy Ltd, which develops energy infrastructure projects in Sub-Sharan Africa. It has a joint development agreement with Ghana National Gas Company. This covers four projects for processing and transporting natural gas, where Trans-Africa will have a majority stake. The financial close for the first project could be later this year.
Emissions reducing fuel ingredients supplier SulNOx Group (SNOX) grew third quarter revenues by 9% quarter-on-quarter to £45,720. Pro forma cash is £790,000 and cash outflow is being reduced. The fourth quarter has started well, and sales staff are being recruited.
Evrima (EVA) has recovered more than the cost of its $234,000 investment in Premium Nickel Resources through a series of sales raising $299,000. The residual stake is valued at $1.63m. Guy Miller has resigned from the board.
Vulcan Industries (VULC) generated revenues of £968,000 from continuing operations in the nine months to December 2022. The loss was £697,000. Acquisition opportunities have been identified.
Craft spirits producer British Honey (BHC) says revenues fell from £8m to £6m and management is cautious about trading. The review of strategy continues.
Love Hemp (LIFE) refutes comments made by former managing director Philip Small. It has asked for proof of the validity of invoices for money he is claiming. Al his comments are being investigated by the company’s advisors.
Goodbody Health (GBDY) has signed four phlebotomy contracts. This service will be offered through its network of 90 clinics.
Igraine (KING) has invested £100,000 for a 20% stake in Fixit Medical, which has designed the Cingo drainage catheter fixation device. This protects catheters from twisting and kinking.
Gledhow Investments (GDH) had net assets of £1.7m at the end of September 2022, including £112,000 in cash. Net assets fell because of a reduction in the value of the investment portfolio.
In the fourth quarter, RentGuarantor (RGG) increased the number guarantees made by 11%. Over 2022, the demand for services increased by 71% and further growth is expected this year.
ChallengerX (CXS) had £236,000 in cash at the end of September 2022. Developing the company’s platform will require more investment. ChallengerX is also assessing reverse takeovers.
Luciano Maranzana has been appointed chief executive of Eight Capital Partners (ECP). He has been a non-exec for seven months.
Chris Akers continues to build up his stake in Asimilar Group (ASLR) and it has reached 9.13%.
Cooks Coffee Company (COOK) has raised an additional £42,000 at 18p a share. Director Michael Ambrose bought 200,000 of these shares, taking his stake to 1.6%.
Three directors bought shares in S-Ventures (SVEN). Scott Livingston acquired 104,539 shares at 11.1p each, taking his stake to 36.7%. Robert Hewitt bought 44,247 shares at 11.3p each and Alexander Phillips acquired 89,954 shares at 11.1p each. Exercised warrants at 25p each raised £350,000. Head of risk and compliance Simon Mathisen acquired 120,168 shares at 3.5p each in Oberon Investments (OBE), while non-exec Gemma Godfrey bought 200,000 shares at 3.5p each.
AIM
ASX-listed Celsius Resources (CLA) raised £2.4m at 0.8p a share when it joined AIM on 30 January. That valued the minerals explorer at £14.8m. The share price opened at 0.88p and ended the week at 1.025p. The main interest is the Makilala-Caigutan-Biyog (MCB) copper gold project in the Philippines. This is 320km north of Manila. The authorities are apparently fast-tracking the project permitting approvals and mine development. The cash will help to finance further development, but management needs to secure additional debt and/or an offtake agreement to generate the funding required to get the project to bankable feasibility. Celsius Resources owns 100% of the project
All three divisions of NWF (NWF) did better than expected in the first half and the second half has started well. In the six months to November 2022, revenues were 35% higher at £541.8m, while underlying pre-tax profit improved by 44% to £6.2m. The interim dividend is unchanged at 1p a share, although there will be an increase in the final dividend. Net cash was £1.2m at the end of November 2022.
Agricultural products supplier and retailer Wynnstay Group beat expectations that had already been upgraded a number of times in the past year. In the year to October 2022, revenues were 42% ahead at £713m, while pre-tax profit almost doubled to £22.6m. The dividend has been raised for the nineteenth year in a row. The total dividend is 17p a share. High milk prices have boosted feed demand from farmers – with like-for-like growth of 6% – enabling Wynnstay to increase its market share.
Digital transformation services provider TPXimpact Holdings (TPX) downgraded 2022-23 guidance with revenues expected to be £80m rather than £90m. EBITDA falls more sharply and could be around £2m. Third quarter like-for-like revenues were 15% lower and there was a sharp reduction in margins. Net debt was £17.5m at the end of December 2022 and management warns it is likely to breach debt covenants. Director share buying sparked a small recovery in the share price. Finance director Steve Winters acquired 220,000 shares at 21.34p each and former chief executive Neal Ghandhi bought 196,986 shares at 22.45p each.
Morses Club (MCL) gained 75.17% backing to approve the cancellation of the quotation on AIM. This resolution required 75% of the vote so it only just succeeded. Shareholders owning 61.7% of the share capital voted. The last day of dealings will be 10 February. After that, there will be a matched bargain facility on Asset Match.
Immotion (IMMO) is selling its location-based entertainment business for $25.1m, having raised £100,000 from disposing of Uvisan. Shareholders are likely to receive 3p a share out of the sale proceeds with £6.5m retained for the remaining business after buying back shares from management leaving with the location-based entertainment business. Immotion will concentrate on the home-based entertainment business Let’s Explore Media. This will be expanded via acquisitions. The share price was below the proposed dividend level, and it rose to 3.35p. Immotion joined AIM in July 2018 at a placing price of 10p a share.
Parcel delivery and logistics company DX (DX.) has appointed the boss of the Freight division, Paul Ibbetson, as chief executive. He has been with the company since 2017. Interim revenues grew by 15%
Employee benefits services and insurance provider Personal Group (PGH) did well last year with recurring revenues growing but progress was held back by Let’s Connect electronic products provider. Cenkos trimmed its 2022 pre-tax profit forecast from £4.5m to £4m. Net cash is more than £18m.
Sustainable polymers developer Itaconix (ITX) is raising £10.3m at 5.1p a share, while an open offer could raise up to £400,000 more. The cash will fund product development, capital investment and working capital.
CentralNic (CNIC) has sparked the regular upgrade with its fourth quarter figures. Full year revenues were better than expected at $728m. Pre-tax profit was upgraded from $69.2m to $72.4m. CentralNic is partnering with automated hosting resellers platform WHMCS.
MAIN MARKET
Thungela Resources (TGA) is acquiring an effective interest of 63.75% in the Ensham coal mine in Australia for A$267m. This is via 85%-owned Sungela Holdings. Ensham produced 3.2 million tonnes of coal in 2022. The mine life is 16 years. The deal should close in the middle of 2023.
Associated British Engineering (ASBE) made a £5,000 profit thanks to an exchange gain in the year to September 2022. Net assets are £657,000, including £497,000 in cash and £182,000 in investments.
Kelso Group (KLSO) has acquired five million shares in THG (THG) at an average price of 54.5p.
Andrew Hore
Quoted Micro 19 September 2022
AQUIS STOCK EXCHANGE
ProBiotix Health (PBX) has secured a new commercial partner in Asia Pacific. Nutraceutical business Nutraconnect will develop and implement strategies for ProBiotix Health ingredients in Asia Pacific.
IamFire (FIRE) says investee company WeShop Holdings had 23,000 user downloads by the end of August. Transactions increased from 2,633 in July to 5,981 in August. Average spend per transaction has increased to £81. A US launch is planned.
Gunsynd (GUN) is making a further conditional investment of £100,000 in ASX-listed Rincon Resources. The investment is dependent on Rincon Resources shareholder approval.
Fintech investment company Eight Capital Partners (ECP) has generated £1m in fees from Zamaz (ZAMZ), which joined the standard list a fortnight ago. Zamaz believes that its technology platform can help to efficiently build direct to consumer brands via e-commerce. Other Eight Capital Partners revenue have been modest.
Evrima (EVA) says investee company Premium Nickel Resources has created a new metals division.
Spirits brand Rogue Baron (SHNJ) says that a third party has been contacting investor saying it is raising cash for the company, which is not true. Rogue Baron is considering ways of raising further funds.
SulNOx Group (SNOX) has won a new order from Ghana for SulNOxEco fuel conditioner. There is enough to treat six million litres of diesel, which is a larger order than the previous one. New agreements are being discussed in other African countries.
Site works have commenced at the Blesberg lithium and tantalum project in South Africa. Marula Mining (MARU) says mining permits have been applied for.
A company associated with Asimilar Group (ASLR) non-exec director Mark Horrocks has acquired 750,000 shares at 4.1p each, which takes his share interest to 5.27%.
Engineering company Vulcan Industries (VULC) has raised £132,000 at 0.92p a share. Superseed Capital Ltd (WWW) has issued £1m of convertible loan notes to SuperSeed Venture LLP, which is its investment manager. The conversion price is 130p a share.
Barry Hersh is a 9.98% shareholder in Rural Broadband Solutions (RBBS). PEU SA has a 7.56% stake in Eastinco Mining and Exploration (EM.P).
AIM
Churchill China (CHH) had an extremely strong first half in 2022 because of demand for hospitality products. Sales of plates and other products to restaurants and hotels were behind the 73% growth in revenues to £41.4m. Sales of retail products declined as production focused on hospitality products. Churchill China is gaining market share in the UK and internationally. The interim dividend is 57% ahead at 10.5p a share. A full year pre-tax profit of £8.8m is forecast.
New admission Aurrigo International (AURR) has risen a further 9.52% to 57.5p. The transport technology products supplier raised £8m at 48p a share when it joined AIM. The cash will be invested in the aviation technology division and to develop new products.
Broker and administrator Jarvis Securities (JIM) has appointed Ocreus to review systems and controls at its main subsidiary after it ran into trouble with the FCA. This will take between three and six months. Jarvis has voluntarily agreed not to take on new clients from certain existing Model B corporate clients until the systems have been reviewed. The restrictions should not hamper forecast revenues and profit, although the costs of the review could hamper shareholder dividends from Jarvis Securities. This news was announced late on Friday and the share price nearly halved.
Retail brand Joules (JOUL) has ended its talks with retailer NEXT (NEXT) about a cash injection, leaving it with the need to find another source of funding. That is likely to require a share issue.
Baby products retailer Mothercare (MTC) reported revenues falling from £85.8m to £82.8m, but it returned to profit. The figures were at the top end of expectations and the company was cash generative. finnCap forecasts a fall in pre-tax profit from £8m to £1.9m this year. The pension deficit is declining.
TV and film production services provider Facilities by ADF (ADF) had tough comparisons for its interim figures and reported pre-tax profit was lower. Revenues improved from £11.5m to £12.6m, but the lack of large productions and higher overheads since flotation mean that profit was lower. There will be more, and higher value, productions in the second half, so some of the profit shortfall should be offset. Flotation funds are being used to increase the size of the vehicle fleet.
Artisanal Spirits Company (ART) increased membership by 24% in the first half of 2022. This growth was international, and the current membership is around 36,000. Full year revenues are expected to increase from £18.2m to £21.6m. The value of the casks of whisky in stock has increased from £430m to £455m in the latest six month period.
Cyber security services provider Corero Network Security (CNS) improved sales in the first half and growth could accelerate in the second half. Full year revenues are forecast to increase by one-third to $27.9m. Demand for cyber security continues to increase. Corero should breakeven this year.
Strong growth in first half revenues at plant-based polymers developer Itaconix (ITX) means that it is set to double full year revenues to $5.2m. Revenues trebled from cleaning applications. There was $900,000 of net cash at the end of June 2022.
The Property Franchise Group (TPFG) increased interim revenues by 18% to £13.1m and pre-tax profit was 9% higher at £3.8m. The interim dividend was increased by 11% to 4.2p a share. Trading remains strong even though house buying incentives were ended last year.
Building and architecture software supplier Eleco (ELCO) did not surprise the market with the 3% decline in interim revenues to £13.4m, although recurring revenues were 9% higher at £8.2m. This reflects the change to a SaaS model. Pre-tax profit was 23% down at £2.1m due to higher costs.
Ncondezi Energy Ltd (NCCL) has replaced a working capital facility with a convertible loan and more cash is being made available. The shareholder loan repayment cannot be demanded before 30 November 2023.
Shell company Advance Energy (ADV) raised £425,000 at 0.085p a share. There are warrants attached to each new share that are exercisable at 0.13p a share. The cash will enable management to investigate a suitable reverse takeover candidate and fund due diligence. Management is in talks with the majority owner of a European oil and gas company and trading in the shares is suspended. Any deal will be funded with shares and via an earn-out based on production. The suspension will continue until a prospectus is published or the deal does not happen.
Tertiary Minerals (TYM) has signed a technical co-operation agreement with First Quantum Minerals for two copper projects in Zambia – Mukai and Mushima North. Mukai is next door to First Quantum’s Trident project. First Quantum also has interests in the same region as Mushima North. First Quantum will supply historical exploration date for the areas. First Quantum does not have first right of refusal over the projects.
MAIN MARKET
Fintech Asia Ltd (FINA) is seeking fintech acquisitions. This includes mobile banking, digital payments and blockchain. It raised £1.46m at 50p a share, before expenses of £613,000. The cash should finance the operating of the company and investigating potential acquisitions for more than one year. Further share issues will be required when any targets are identified, and deals secured. There were no trades reported on the first two days. The current share price is 55.5p (53p/57p).
Ikigai Ventures Ltd (IKIV) is looking to acquire businesses with a positive social impact strategy, particularly those based in Asia. It has a similar shareholder base to Fintech Asia. Ikigai Ventures raised £2.09m at 50p a share, before expenses of £714,000. That cash should last more than one year. There were no trades reported on the first two days. The current share price is 55.5p (53p/57p).
Innovative materials developer HeiQ (HEIQ) increased interim revenues by 17% to $30.3m and it is making progress with newer products, such as AeoniQ and GrapheneX. Hygiene products generated 43% of total revenues. Service and licence revenues more than trebled. There was $9.5m in the bank at the end of June 2022. Cenkos expects revenues to grow from $57.9m to $69.4m in the full year and grow by a further 10% next year. The 2022 pre-tax profit is expected to be $4.8m.
Andrew Hore
Quoted Micro 18 July 2022
AQUIS STOCK EXCHANGE
Hydro Hotel, Eastbourne (HYDP) increased interim revenues by 882% to £1.82m and this enabled a move from a loss of £383,000 to a pre-tax profit of £22,277. There are cash and deposits of £1.8m.
Hydrogen Utopia International (HUI) has announced a proposed joint venture with AIM-quoted Powerhouse Energy (PHE) in Tipperary, Ireland. This will be a 50/50 joint venture and it will build a plant on a site leased by Trifol Resources. Negotiations concerning the site should be completed over the coming months. Electron Technologies BV has completed the first design phase for the company’s thermal processing system.
AQRU (AQRU) has launched ByBrix in partnership with Blimp Technologies Inc. This new business is involved in the crypto-mortgage market. Blimp has expertise in embedding blockchain technology in the real estate market.
Goodbody Health Inc (GDBY) intends to consolidate ten existing shares into one new share.
Reflexivity Research Ltd has increased its stake in KR1 (KR1) from 7.6% to 20.3%. This relates to a performance fee of £30.1m.
IPGL Ltd, which is associated with Chapel Down Group (CDGP) non-exec Samantha Wren, has acquired 250,000 shares in the wine maker at 19.2795p each. Cadence Minerals (KDNC) chief executive Kiran Morzaria bought 100,558 shares at 9.9p each. This takes his stake to 1.43 million shares. Invinity Energy Systems (IES) executive director Jonathan Marren has acquired 44,101 shares in the battery storage technology developer at 45.35p a share.
Oscillate (LON: MUSH) non-exec Narisha Ragoonanthun has stepped down from the board.
Lift Global Ventures (LFT) has appointed Optiva Securities as corporate adviser. The accounting reference date is changed from May to June.
EPE Special Opportunities Ltd (EO.P) had net assets of 283.05p a share at the end of June 2022.
AIM
Capital equipment manufacturer Mpac Group (MPAC) warned that full year profit will be significantly below expectations. Interim revenues are better than last year, and the order book is higher. However, difficulties sourcing components and delays to the timing of orders have hampered progress. The longer lead times for components and inflationary pressures will continue for the rest of the year. There was cash of £14.5m at the end of 2021, which has enabled investment in inventories. The interims will be published on 8 September.
CMO Group (CMO) slumped to 35p after a profit warning, making it the worst AIM performer of the week. Last year’s placing price was at 132p. The online retailer of building products says revenues in the 27 weeks to June 2022 are 10% ahead, or 2% higher like-for-like. Full year guidance is that 2022 revenues will increase from £76.3m to at least £86m, but previously £95.5m was expected. The EBITDA estimate has been reduced from £5.55m to around last year’s level of £3.7m. Supply problems have increased costs and trading is getting tougher.
TransGlobe Energy Corporation (TGL) is merging with fully listed VAALCO Energy (EGY) to create an Africa-focused exploration and production company. VAALCO is offering 0.6727 of one share for each TransGlobe share. TransGlobe shareholders will own 45.5% of the enlarged group. The transaction is valued at $307m.
A positive first half trading statement from international payments services provider Cornerstone FS (CSFS) initially triggered a bounce back in the share price, but it fell back when the chief executive resigned.
Embedded computer boards supplier Concurrent Technologies (CNC) has received a new order from a global medical technology company. The initial order is worth $2.2m in the first year of product shipments and there should be orders for several years. This further diversifies the customer base away from defence, which was 70% of the revenues of £20.5m in 2021.
Angle (AGL) has raised £20m at 80p a share. The cash will be used to take full advantage of the recent FDA approval for the use of its Parsortix diagnostic technology in harvesting breast cancer cells for analysis. Discussions are ongoing with medtech and pharma companies. The pharma services operation will be expanded, and laboratory developed tests launched. The liquid biopsy market could be worth up to $100bn in the US.
A £3.75m fundraising at 0.5p a share by EQTEC (LON: EQT) was not well received by the market and the share price fell below the offer price. EQTEC raised more than the minimum of £3m that it was seeking. The cash will fund wase to energy projects, including a 9.9Mwe advanced gasification technology facility and 2MW anaerobic plant at Deeside. EQTEC has to invest £2.3m to gain a 32% stake in the company owning the project.
Ironveld (IRON) has raised £4m at 0.3p a share to finance the acquisition and refurbishment of Ferrochrome Furnaces Ltd and may raise up to £1m more. Directors’ loans and fees of £351,000 has been capitalised. Management has raised the cash because it is not certain that Grosvenor Resources will be able to complete the promised cash injection. Shareholder approval is required at a general meeting on 1 August.
Portmeirion (PMP) says interim revenues were 5% ahead at £45m, but it remains cautious about the full year. Shipping costs are reducing, although other costs have risen.
Gaming machine monitors and consoles supplier Quixant (QXT) has increased order intake by more than expected. Interim revenues are 46% ahead at $53.3m. The main growth is in the gaming sector, although the screens business grew by 21%.
Regional legal firm consolidator Knights Group Holdings (KGH) reported full year figures in line with expectations. Revenues were 22% higher at £125.6m, although earnings per share fell nearly 6% to 17.23p because more shares are in issue.
Plant-based polymers developer Itaconix (ITX) increased interim revenues by 124% to $3m. Revenues trebled from cleaning products using the company’s plant-based ingredients, but beauty and hygiene revenues declined due to lower order volumes. There was $900,000 of net cash at the end of June 2022.
MAIN MARKET
Property investor Town Centre Securities (TOWN) is selling its stake in YourParkingSpace app for up to £20.7m. The initial payment is £9.6m with a further £7.5m payable over the next two years. There could be up to £3.6m more payable depending on performance in the 14 months after acquisition. The book value of the stake was £1.47m. A loan of £1.95m will be repaid. A tender offer to acquire four million shares at 185p each has been launched. The tender is well below NAV. Tender forms have to be received by 8 August.
BATM (BVC) has secured a deal with CityFibre, which will pilot the Edgility platform with selected partners. This could lead to a national roll-out. CityFibre wants to increase its fibre coverage to 285 cities in the UK.
Andrew Hore
Quoted Micro 4 July 2022
,
AQUIS STOCK EXCHANGE
Shepherd Neame (SHEP) issued a full year trading statement, and it is set to return to profit in 2021-22. The Kent-based brewer and pubs operator says revenues are recovering. Net debt was reduced from £93.2m to £75.3m by the end of June 2022. The estimated 2021-22 pre-tax profit is £7.2m and it is expected to improve to £9.6m in 2022-23.
Chief marketing officer Mark Harvey is leaving Chapel Down Group (CDGP). He has been with the wine maker for six years.
Energy storage technology developer Invinity Energy Systems (IES) generated revenues of £3.2m in 2021 and reported a substantial loss. VSA has cut its forecast 2022 revenues from £26.5m to £14.1m. There are already contracts that have been secured that are valued at £13.8m. The loss is expected to reduce from £21.3m to £17.9m. There should still be net cash of £10m by the end of 2022.
Visum Technologies (VIS) raised £601,000 at 14p a share ahead of its admission to Aquis on Thursday. Visum is the operator of an on-ride video camera system sold or licenced to theme parks, souvenir producers and ride operators. The share price opened at 12p before recovering to 14p
The technology investment company Asimilar (ASLR) reported interim figures, which show a £10.6m loss due to a sharp decline in the Dev Clever Holdings share price, which is currently suspended. Net assets were 25.3p a share at the end of March 2022.
Blockchain and digital assets investor KR1 (KR1) says net assets were 423% higher at 122.68p a share at the end of 2021, but that figure is likely to be lower now given the weak cryptocurrency market this year. There was £3.49m in cash on the balance sheet.
TruSpine Technologies (TSP) is waiting for the FDA’s response to the request for breakthrough technology designation before filing a 510k FDA submission for tis Cervi-LOK screwless spinal stabilisation system.
Trading in British Honey (BHC) shares was suspended at the end of the week because it has not published 2021 figures.
AIM
A further downgrade for Shield Therapeutics (STX) after its 2021 figures. Most of the 2021 revenues of £1.5m were generated in Europe and not the important US market for the Accrufer iron deficiency treatment. The latest figures show some progress in US Accrufer revenues with first quarter Accrufer prescriptions double the number in the fourth quarter of 2022, taking the total prescriptions for the quarter to more than 3,900. finnCap has reduced its 2022 forecast for US revenues from £8.1m to £6.3m thereby reducing total group revenues from £9.9m to £8.1m.
Shareholders in plant-based polymers developer Itaconix (ITX) have voted against the reappointment of two non-executive directors, including Charlean Gmunder, who was appointed on 19 April this year, and the Itaconix 2022 Equity Participation Plan for non-employees, where 79.16% of votes were against. First half revenues are substantially ahead of the previous record level.
Employee benefits services and insurance provider Personal Group (PGH) has acquired Quintage Consulting Group for £900,000 in cash. This is an employee reward and recognition consultancy providing things such as pay benchmarking surveys.
Footwear supplier Unbound Group (LSE: UBG) says trading has been in line with expectations following a good start to the year to January 2022. The multi-brand platform, that will exploit the extensive database that the company has built up, will launch on 28 July. There are 14 partner brands signed up, including Hush Puppies, and Sketchers.
IG Design Group (IGR) has started to improve operational efficiency in order to move back into profit. Higher freight and supply chain costs hit the business last year. Full year revenues increased from $873.2m to $965.1m, but an underlying pre-tax profit of $32.8m was turned into a loss of $1.3m. A modest rise in revenues is forecast for this year. The order book is already 71% of this year’s budgeted revenues.
Cosmetics supplier Warpaint London (W7L) has reported that first half sales are 30% ahead at more than £24m and gross margin has improved.
MAIN MARKET
Standard list shell Alteration Earth (ALTE) is seeking an acquisition in the clean technology or energy sectors. The plan is to do this within 24 months of admission. The shell raised a total o £1.26m by issuing nine million shares at 4p each and nine million shares at 10p each. The share price ended the first day of trading at 30p, but the bid offer spread was 10p/50p. The deal would need to make the enlarged group worth a minimum of £30m.
Hamak Gold Ltd (HAMA) says two rock chip samples from the Nimba licence in Liberia show grades of 45.5g/t and 37.3g/t. These are located where gold in soil anomalies were reported. There are assays to come from channel sampling of surface exposures.
Andrew Hore
Quoted Micro 13 June 2022
AQUIS STOCK EXCHANGE
Psych Capital (PSY) floated on Aquis so that it can take advantage of the opportunities in the fast-growing psychedelic medicines sector. Management is seeking to invest in early-stage companies, where it can obtain a significant minority stake. Psych Capital raised £810,000 at 5p a share. Pro forma net assets are £2m. Psych Capital has cash of £872,000 following the flotation. There is an investment in Awakn Life Sciences Corp that was valued at £584,563 at the end of June 2021. The share price is declining, and it has reached C$0.96, valuing the stake at around £260,000 at the current exchange rate. The share price fell to 4p on 9 June before recovering to 4.75p (3.5p/6p). There is limited liquidity in the shares with a free float of around 11%. Fellow Aquis company Oscillate (MUSH) holds a 16.15% shareholding in Psych Capital. Chris Akers has increased his stake in Oscillate from 9.02% to 11.4%. He also has a 4.96% stake in Psych Capital.
Capital for Colleagues (CFCP) improved interim revenues from £198,000 to £216,000, while recognised fair value gains declined from £1.04m to £297,000. There were 14 investments at the end of the period and net assets were 68.38p a share at the end of February 2022.
Rural Broadband Solutions (RBBS) had 2,851 monthly fee-paying clients by mid-May. There was net cash of £1.2m at the end of 2021 and infrastructure funding is being negotiated.
Newbury Racecourse (NYR) reopened its hotel in January and more than 105,000 racegoers have visited the racecourse so far this year. There have benefits from the catering deal with Compass and new media rights arrangement start at the beginning of 2024, which will benefit that financial year. More will be spent on prize money. Newbury is debt free, and a special dividend has been paid out of proceeds from the sale of land for housebuilding. Annual dividends may recommence next year.
Quantum technology investment company Quantum Exponential (QBIT) has made three investments at a total cost of £1.16m since it floated. There are discussions with more potential investments. There has been further progress towards setting up a fund. Anthony Lyall has been appointed as investment manager and Anna Spandl as investment analyst.
Altona Rare Earths (ANR) says that it is on track for a maiden JORC resource statement for the Monte Muambe rare earths project in Mozambique. Four new drilling targets have been identified.
Ananda Developments (ANA) had net liabilities of £288,000 at the end of January 2022. There should be further news concerning the purchase of the other 50% of DJT Plants.
Tectonic Gold (TTAU) expects to deploy drill rigs in Queensland in the next few weeks following the rainy season.
RentGuarantor Holdings (RGG) has raised £1m from a 6% unsecured loan note issue, with chief executive Paul Foy subscribing for 50% of the issue. The cash will be spent on hiring staff and marketing.
Wishbone Gold (WSBN) has commenced drilling at the Wishbone II gold copper project in Northern Queensland.
Chapel Down Group (CDGP) non-exec Jamie Brooke has bought 327,000 shares at 30.48p each. Jonathan Neame has sold 2,000 shares in Shepherd Neame (SHEP) at 806p each.
Oberon Investments has increased its stake in TruSpine Technologies (TSP) from 7.93% to 10.9%.
EPE Special Opportunities (ESO) had a NAV of 307.13p a share at the end of May 2022.
Former Aquis-quoted proton beam therapy provider Rutherford Health is being placed in liquidation. There are Rutherford Cancer Centres in Newport, Reading, Liverpool and Northumberland, plus a community diagnostics centre in Somerset. It is unclear whether there will be any buyers interested in these assets. Schroder UK Public Private Trust (SUPP) bought the remaining Woodford stake at the end of 2019. It was valued in the books at £22.8m, which will be written off. That will reduce NAV by 2p a share.
AIM
Like-for-like sales growth at City Pub Group (CPC) was 5% in May and 20% ahead over the Jubilee Bank Holiday. Management took a decision to minimise price rises so that food and drink is still relatively affordable. Two new sites have been opened with two more opening over the next few weeks.
Learning and development products and services provider Mind Gym (MIND) fell into loss in the year to March 2022. Revenues were 24% ahead at £48.7m with US revenues growing even faster. Repeat revenues from customers that have bought products and services in the past three years were 86% of the total. Overheads are higher as management anticipates future growth in demand. There were also £500,000 of non-recuring costs. The investment in digital products and services will pay off in future years when profit is expected to grow sharply.
Greater demand for foreign exchange helped Ramsdens (RFX) to move back into profit in the first half. Jewellery retail and precious metals buying also grew revenues significantly. There was modest growth in pawnbroking revenues although the growth in the loan book means that there will be a higher rate of increase in the second half. Overall revenues were £29.3m, up from £19.3m, and there was a pre-tax profit of £2.2m.
Nexus Infrastructure (NEXS) improved interim revenues from £63.7m to £80.3m and the order book is 7% higher at £306.7m. Civil engineer Tamdown’s revenues were more than one-quarter higher while utilities connections business TriConnect reported a small increase in revenues. The biggest increase came from the eSmart Networks business, but that is still less than 11% of group revenues. Nexus is on course to improve full year pre-tax profit from £2.5m to £5.7m.
Open Orphan (ORPH) has an order book worth £64.25m at the end of May 2022. Open Orphan secured a £14.7m contract for an influenza characterisation study and a follow-on human challenge study. The second half is expected to be stronger than the first and the clinical trials services provider should move into profit this year.
Electrical goods retailer Marks Electrical (MRK) reported its first full year results since flotation last November. In the year to March 2022, revenues increased 44% to £80.5m. Underlying earnings were 5.01p a share and the maiden final dividend is 0.67p a share. The company is gaining market share in the domestic appliance and televisions markets and revenues have grown by one-fifth in the first couple of months of this financial year. Brand recognition is improving, but the overall market is likely to be tough. Expanding the product range is helping growth.
Interims from Hercules Site Services (HERC) reflect a period of consolidation for the staffing business. In the six months to March 2022, revenues improved from £14m to £20m, while pre-tax profit slumped from £954,000 to £31,000. Overheads were £2m higher in anticipation of growth in the coming years. The large staff supply contract for HS2 started later in the reporting period and demand will continue to grow. More suction excavators are being delivered and utilisation rates are high.
Greenland-focused AEX Gold Inc (AEXG) has signed non-binding terms for the creation of a joint venture with ACAM that will hold the group’s strategic mineral assets. ACAM will invest £18m for a 49% stake and AEX Gold will inject the non-gold assets and cover site support, logistics and overhead costs. There is an agreement to inject a further £10m on a pro rata basis as long as certain milestones are achieved. AEX Gold’s core asset is the 100% interest in the Nalunaq project, which includes a former producing gold mine.
Plant-based polymers developer Itaconix (LSE: ITX) had already warned that due to destocking 2021 revenues would fall from $3.29m to $2.6m, which is still double the 2019 figure. Itaconix remains lossmaking, but revenues should be much higher in 2022 due to the increased number of products using its ingredients. Revenues are expected to jump back to $4.7m and the loss could halve to $1m.
Rockwood Strategic (RKW) has acquired a 8.75% stake in window ventilators and parts manufacturer Titon Holdings (TON).
Northbridge Industrial Services (NBI), which is set to change its name to Crestchic, says that trading at the core power reliability business is better than the recently upgraded expectations. Previously full year earnings of 12.1p a share were forecast and this was raised to 13.4p a share.
STM (STM) pre-tax profit halved to £1.2m in 2021 and it is expected to recover to £2.9m this year. This will be helped by the completion of investment in IT that brings the personal pension businesses onto one platform. A flow of new SIPP business is anticipated.
Coral Products (CRU) has announced a final dividend of 0.2p a share, taking the total for the year to 1.1p a share. At 17.5p, the yield is 6.3%.
Eve Sleep (EVE) is outperforming a market that has fallen by 29% in the UK in the first four months of 2022 and by 37% in France. More funding is required even though Eve Sleep and a US-based investor was interested in bidding for the mattress supplier. Talks have ended but management is considering its options.
MAIN MARKET
Citius Resources (CRES) has an initial agreement for the potential acquisition of AUC Mining, which has the Kamalenge gold project in Uganda. The proposed £2m cost would be paid in shares at 4.625p each. More cash would have to be raised at the same time. Trading in the shares was suspended at 3p.
Standard list shell GS Chain (GSC) shares have reached a new high of 6.55p, having risen steadily since flotation on 13 May via an introduction at 1p a share. Net assets were less than 0.18p a share, so the share price is at a substantial premium.
Premium listed Ross Group (RGP) shares jumped from 1.45p to 1.7p following a placing raising £163,000 at 1.79p a share, which is still a premium to the higher market price. The previous placing in October was at 2.8p a share. Ross Group is effectively a shell that has an investment in an aquaculture business and is trying to develop its supply chain management business.
Andrew Hore
Quoted Micro 25 April 2022
AQUIS STOCK EXCHANGE
Gunsynd (GUN) had net assets of £5.99m at the end of January 2022. That includes £1.08m in cash. Investee company Low6 is still seeking a listing in Toronto via 1319735 BC Ltd. Mining investee company Charger Metals plans to start its maiden drilling programme at the Coates project in Western Australia. First Tin joined the Main Market after the period end.
Tectonic Gold (TTAU) has appointed Ian Bruce as exploration manager, and he will restart the drilling at Specimen Hill. A permit has been secured in the same area for Taree Fields, which was historically a high-grade copper mine. Deep Blue Minerals, where Tectonic owns 10%, raised $236,000 from diamond sales.
Lombard Capital (LCAP) has agreed in principle the sale of LCP Financial to SBS Group for £4.2m in shares and the repayment of a £370,000 intercompany loan. Lombard Capital will acquire Waste and Recycling Services before the sale is completed. Management will be seeking shareholder approval to leave Aquis.
ChallengerX (CXS) has signed a five-year agreement with The American Arena League for the use of the SaaS-based platform CXSports. This will help to promote the league and generate revenues.
Blockchain and open finance investor Coinsilium (COIN) has agreed to purchase $200,000 of YELLOW tokens for the Yellow Network, which is a cross chain overlay, financial information exchange and distributed infrastructure network.
Adam Pollock, who was previously head of corporate and institutional at WH Ireland, has become a director of Oberon Capital, the broking business of Oberon Investments Group (OBE).
Vulcan Industries (VULC) has raised £48,000 at 1.37p each.
All Star Minerals (ASMO) is changing its name to Marula Mining.
AIM
TV programmes producer Zinc Media (ZIN) lost on £2.61m on revenues of £17.5m in 2021. There is already £13m of booked revenues for 2022 and there is potential further business worth £35m that could be delivered this year. A greater proportion of the work being won is for series, rather than one-off programmes. Zinc Communicate, which produces non-broadcast content and podcasts, is becoming increasingly important. The timing of the orders is uncertain and not all the work will materialise, although £8m is at an advanced stage. This suggests that 2022 revenues should be much higher, and Zinc Media should become profitable and cash generative. Last year, the cash outflow from operations was £245,000. Net cash was £2.18m at the end of 2021.
Churchill China (CHH) is beating its rivals thanks to its capital expenditure and investment in marketing, and it has a better order book than normal for this time of year. In 2021, pre-tax profit bounced back from £800,000 to £6m as revenues recovered from £36.4m to £60.8m. The total dividend is £24p a share, while there is £19m in the bank. Churchill China has taken on more than 200 additional staff in the past year and they still require training. Last autumn, selling prices were raised by 12% and a 5% increase is planned for May. That will help to offset the cost rises. Pre-tax profit is expected to be between £8m and £8.8m this year.
Tungsten West (TUN) is reviewing development options for the Hemerden mine because of rising costs. This will lead to a two-month delay. This could lead to a focus on sodium tungstate production because it is higher value than ammonium paratungstate.
Solid State (SOLI) continues to best expectations. Revenues for the year to March 2022 will be around 6% ahead of previous expectations at £85m, while there is a 11% upgrade in pre-tax profit to £7.4m.
Seeing Machines (LSE: SEE) has secured a collaboration with Magna to develop and demonstration model driver monitoring system (DMS) combining, camera, electronics and interior mirror technology. This should help Seeing Machines win more market share.
Plant-based polymers developer Itaconix (ITX) says volumes continue to increase, particularly in the dishwashing detergent ingredients market.
Coral Products (CRU) is trading ahead of expectations in the year to April 2022 and there is a second interim dividend of 0.4p a share. There could also be a final dividend to add to this year’s total of 0.9p a share.
MAIN MARKET
Nuclear-related business has helped structural steel supplier Severfield (SFR) to enjoy record orders. Logistics, infrastructure and data centres are other areas of high demand. Longer-term, battery manufacturing plants could be another booming area. The current order book is worth £479m. The 2021-22 figures will be in line with expectations with pre-tax profit forecast to improve from £24.3m to £28.1m. This year’s revenues should be better than previously expected, but profit expectations have been maintained because of higher steel costs. The higher steel prices mean that higher working capital is required.
Full year profit of kitchenware retailer ProCook Group (PROC) will be slightly lower than expected at £9.5m. ProCook has grown revenues in a market that is slightly down
J Smart Contractors (SMJ) reported a decline in interim revenues from £5.75m to £5.16m, while pre-tax profit jumped from £890,000 to £6.35m, although that was due to a gain on the sale of investment properties of £6.06m. It is unlikely that full year profit will be higher this year. Net assets are £117.2m, including £76.2m of investment properties and net cash of £27.6m. The interim dividend is 0.96p a share and the ex-dividend date is 5 May.
Andrew Hore
Quoted Micro 4 October 2021
AQUIS STOCK EXCHANGE
Wine maker Chapel Down Group (CDGP) increased interim revenues by 35% to £8.11m, which included £287,000 from the brewing business, which has been sold. Chapel Down moved from loss to profit in the first half. Underlying pre-tax profit was £459,000, helped by £73,000 of government grant income. Wine volumes increased by 66%. Pro forma net cash is £6m, following the recent fundraising.
Digital assets investor KR1 (KR1) reported an NAV of 80.3p a share at the end of June 2021, up from 29p a share at the end of 2020. There was a £69.5m gain on intangible and financial assets.
Property investor Ace Liberty and Stone (ALSP) returned to profit in the year to April 2021. The value of the portfolio was 3% higher at £89.9m. A loss of £742,000 was turned into a pre-tax profit of £1.39m. Contracts have been exchanged for the purchase of a property in Stafford for £1.26m, where the annual rent is £95,000. The sale of properties in Leeds and Dudley are due to complete.
Tectonic Gold (TTAU) has sold a 60% stake in Whale Head Minerals to AIM-quoted Kazera Global Investments (KZG) in return for 13.5 million shares, which have been assigned to Consolidated Minerals to settle a A$279,732 loan. Tectonic retains a non-diluting 10% interest in Whale Head Minerals.
Coinsilium (COIN) made a pre-tax profit of £333,000 in the first half of 2021. A net fair value gain on unlisted investments of £793,000 was offset by a £148,000 investment write-down. There was a £136,000 cash outflow from operating activities.
NFT Investments (NFT) had net cash of £29.3m at the end of June 2021. So far, two investments have been made, including one after June. Management admits that the digital asset investment sector has been volatile and NFT is being highly selective.
Cancer treatment company Rutherford Health (RUTH) has increased its full year revenues from £5.6m to £7.3m. The operating loss increased from £25.7m to £31.1m. Additional investment has been obtained since the end of February 2021.
Incanthera (INC) has frilled two trademark names for its Sol skin cancer formulation. They are ACTINOMOD AND ACTINODERM.
Arbuthnot Banking (ARBB) has sold a further 220,000 shares in Secure Trust, raising £2.5m. Arbuthnot retains 399,538 shares in Secure Trust.
Adnams (ADB) director Guy Heald has acquired 3,000 B shares from Sidney Sussex College, Cambridge at £92.86 each. His B shares stake has increased to 17.15%.
S-Ventures (SVEN) has appointed VSA Capital as corporate adviser.
Block Commodities has been withdrawn from Aquis after a six-month trading suspension.
AIM
Frontier IP (FIPP) investee company Exscientia has joined the Nasdaq Global Select Market after a $304.7m offer at $22 per ADS, which values the pharmatech company at $2.6bn. The ADSs ended at $27.10 each on the first day of trading on 1 October. The closing price values the Frontier IP stake at £31.3m. Oxford-based Exscientia is a spin-out from the University of Dundee and uses artificial intelligence to help drug discovery.
Broker Peel Hunt (PEEL) has returned to AIM two decades after its original flotation, which ended with a takeover by Belgian bank KBC. A placing at 228p a share raised £40m for the company and valued it at £280m. Existing shareholders also raised £72m The share price ended the week at 231.3p. In the year to March 2021, Peel Hunt Ltd revenues more than doubled from £95.5m to £196.9m, while pre-tax profit jumped from £34.2m to £120.1m. That reflects another bumper trading period. Because of the reorganisation of the group, the illustrative, adjusted pre-tax profit is £73.6m, up from £19.4m. Revenues for the five months to August 2021 fell from £82.5m to £63.3m.
GreenRoc Mining (GROC) has acquired the Greenland mining assets of Alba Mineral Resources (ALBA) in return for shares equivalent to 54% of the newly floated company. The Amitsoq graphite project has graphite suitable for using in the manufacture of lithium-ion batteries and the Thule Black Sands project in north west Greenland appears to be a continuation of the Dundas mineral sands project being developed by AIM-quoted Bluejay Mining (JAY). GreenRoc raised £4.25m after expenses at 10p a share. The share price has slipped back to 9.35p.
Made Tech Group (MTEC) is a rapidly growing provider of digital transformation services to the UK public sector, including healthcare and defence. It raised £15m at 122p a share when it joined AIM at the end of September. Over the past three years annual revenues have grown at a compound rate of 89% and this growth has been financed without seeking shareholder investment. In the year to May 2021, revenues were £13.3m.
Delivered ready meals company Parsley Box (MEAL) has been hit by supply problems. The available stock is 50% of planned levels, due to staffing and logistics problems at food producers, and Parsley Box has built up its cost base in anticipation of growth. It is set to continue to make losses until the supply problems ease, even though marketing spend will be cut.
Antimicrobial technology developer Byotrol (BYOT) has sold the American rights to the Byotrol24 surface spray to its Americas licensee Integrated Resources Inc for $1.4m (£1m). Byotrol retains the rights outside of the Americas.
Northbridge Industrial Services (NBI) is growing the core loadbanks manufacturer Crestchic and the disposal of the Tasman oil and gas tools business, assuming it happens, will end the associated loss and pay off debt. Group revenues were 22% higher at £19.6m, while operating profit quadrupled to £1.6m. Net debt has fallen from £6.8m to £4.5m. A pre-tax profit of £2.83m is forecast for 2021. The construction of a new Crestchic factory has commenced.
Acquisitions and strong organic growth enabled pharma services software supplier Instem (INS) to increase interim revenues by 41% to £19.8m. Demand for the company’s software is being driven by increased life sciences investment. Instem is on course to increase full year pre-tax profit from £4m to £5.2m.
Cyber security firm Osirium Technologies (OSI) signed up 31 new customers in the first half. It was particularly successful in winning NHS Trusts. Average contract values were lower, but sales bookings were 19% higher. Interim revenues increase by 5% to £740,000, while deferred income was 17% ahead. Partners are being signed up to help with international growth. Full year revenues are expected to be 12% higher at £1.6m, but Osirium will continue to lose money due to continued investment.
Digital TV software technology developer Mirada (MIRA) has changed its strategy and employing resellers. The local presence should enable Mirada to build up its international revenues. Covid-19 hampered deployments and slowed investment decisions. Interim revenues declined by 15% to $11.1m. This is despite the growth in deployments of Mirada’s android TV technology for izzi Telecom, which is the company’s largest customer.
1Spatial (SPA) continues to win new contracts and annualised recurring revenues have increased by 12%. The latest contract for a UK government department is worth £8m.
Data erasure and mobile diagnostics services provider Blancco Technology (BLTG) reported operating 2020-21 profit slightly ahead of expectations. Investec is maintaining its 2021-22 pre-tax profit forecast of £5.4m, up from £5m.
Polymers developer Itaconix (ITX) is still loss making, but interim revenues improved 26% to $1.37m. It has a pipeline of potential deals that could generate revenues that are many times higher than that.
MAIN MARKET
S and U (SUS) reported better than expected interims. Revenues were flat at £42.8m, but the core car finance business is recovering. The loan loss provision was cut from £21.4m to £4.9m. Car finance receivables were slightly higher at the end of the six-month period at £248.8m, even though credit criteria has been toughened. Pre-tax profit more than trebled to £19.9m. This includes an improvement in the profit of the Aspen bridging loan business from £100,000 to £1.5m. The interim dividend is 50% higher at 33p a share. Edison has upgraded the 2021-22 S and U pre-tax profit forecast to £38.7m.
Anglo African Agriculture (AAAP) says that the proposed reverse takeover of Kenya-based Comarco. The loan to the company plus interest, totalling $1.5m, should be repaid by the end of October. The original loan was made in November 2018 and is secured on a company with 4.74 acres of land at Mombassa.
Aircraft lessor Avation (AVAP) reported a $70.1m loss for the year to June 2021 and it is expected to make a much smaller loss this year. Avation has a fleet of 44 aircraft. The company’s cash pile should build up when underutilised aircraft are sold.
Bay Capital (BAY) is a newly floated shell set up by two highly experienced small company directors, Peter Tom and David Williams. It raised £4m at 10p a share and has pro forma cash of £6.64m, which is equivalent to 9.5p a share. The share price ended the week at 18.4p. Acceler8 Investments (AC8) is another recently floated shell where David Williams is a director.
Roquefort Investments (ROQ) is paying £1m in cash and shares for Lyramid, which has a worldwide licence to commercialise patents related to Midkine-based therapies for cancer, kidney disease, autoimmune disorders and Covid-19. Roquefort plans to raise up to £3m. Trading in the shares has been suspended until a reverse takeover prospectus has been published.
Hygiene and protection technologies developer HeiQ (HEIQ) published lower interim revenues because the comparative figures were boosted by Covid-19 demand. Full year revenues are likely to be flat at around $50m, while pre-tax profit would decline from $7m to $3.7m due to a lower gross margin and higher overheads.
Andrew Hore
Alan Green talks Itaconix #ITX, Airtel Africa #AAF & Shell #RSDSB on Vox Markets podcast
Alan Green talks Itaconix #ITX, Airtel Africa #AAF & Shell #RSDSB with Justin Waite on the Vox Markets podcast. Interview is 24 minutes 35 seconds in.
Alan Green talks FTSE100 mining stocks, plus Cadence Minerals #KDNC, Itaconix #ITX & Mode Plc #MODE on the UK Investor Magazine podcast
Inflation has unnerved markets sending bond yields higher and shares higher. This Podcast addresses the dynamics around higher inflation and what it means for shares listed in London.
Alan Green joins us to look at FTSE 100 Bond-proxies that have the characteristics of strong cash flows and reliable shareholder distributions and explore the outlook in an environment of rising bond yields.
With multiple analysts and economists predicting a commodities super cycle, we touch on FTSE 100 mining shares and how much of a metals rally is already priced into shares.
Mode listed in London last year and investors have questioned ever since whether the Banking App company can be compared to the hugely successful Argo Blockchain. We look at this comparison and whether it would be sensible to make comparisons.
We discuss Cadence Minerals (LON:KDNC), Mode (LON:MODE) and Itaconix (LON:ITX).