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Quoted Micro 2 December 2024
AQUIS STOCK EXCHANGE
Incanthera (INC) has been accused of potential patent infringement in the formulation of its Skin + Cell skincare range. Even though Incanthera believes that there is no merit to the accusation, but the launch of the Skin + Cell range of products has been delayed. There is cash in the bank following a £2.6m subscription at 15p/share.
WeCap (WCAP) has converted £7.75m of loan notes in WeShop Holdings in return for 3.21 million shares, which is 1.33 million shares at 300p each and 1.875 million shares at 200p each. This increases the shareholding to 16.2%, including shares owned by 235%-owned Community Social Investments. WeCap says that the value of the shareholding is £24.6m, based on the last fundraising share price of 476p. WeCao has extended the discounted capital bond issued to Hawk Holdings for 18 months. The total owed is £6.18m.
Electric vehicle technology developer Equipmake (EQIP) increased full year revenues by three-fifths to £8.1m. Bus repowering revenues grew fastest, but this is labour intensive at low volumes. The loss increased from £5m to £9.1m. The cash outflow from operations declined from £9m to £6.29m. Costs are being reduced. There was £2.5m in the bank at the end of May 2024. A potential licensing agreement could provide cash flow over the next two years.
Water sector installation works provider Field Systems Design Holdings (FSD) improved annual revenues from £13.8m to £17.8m, with a small contribution from power generation. This enabled pre-tax profit to increase from £287,000 to £490,000. There was £2.59m in the bank at the end of May 2024.
KR1 (KR1) had net assets of 57.79p/share at the end of October 2024, down from 62.15p/share at the end of the previous month. There was nearly £600,000 of income generated from digital assets during the month.
Tectonic Gold (TTAU) reported a fall in the full year cash outflow from operating activities from £171,000 to £55,000. Net debt is £86,000 at the end of June 2024. The sae of assets has raised $150,000, as well as a R and D tax inflow of A$173,000.
Inqo Investments (INQO) reported full year revenues improving from R7.37m to R8.2m. There was a movement from loss to profit.
Essentially Group (ESSN) has terminated its retainer with broker Clear Capital Markets.
In the year to June 2024, there was a cash outflow from operating activities of £375,000 at BWA (BWAP). Further exploration drilling is underway at Dehane and sample analysis results should be available in the near future. Chairman Jonathan Wearing has subscribed for 40 million shares at 0.5p each.
SulNOx Group (SNOX) has appointed Fuelonomics Hydrocarbons Innovations as distributor of SulNOxEco fuel conditioners in Nigeria.
Vinanz Ltd (BTC) has received the initial order of Bitcoin miners and they are up and running in Nebraska.
Arbuthnot Banking Group (ARBB) chairman and chief executive Sir Henry Angest has bought 116,000 shares at 900p each. He owns 58% of the voting shares. Barry Hersh has reduced his stake in Global Connectivity (GCON) from 6.97% to 5.96%. Newbury Racecourse (NYR) chairman Dominic Burke has bought 7,500 shares at 540p each.
Wishbone Gold (WSBN) has appointed Tony Moore as chairman and Jack Sun as finance director. Invinity Energy Systems (IES) has hired Adam Howard as finance director. He was previously at the National Walth Fund.
AIM
Frasers Group has taken a 6.4% stake in electricals retailer Marks Electrical (MRK). Frasers has a record of taking stakes in other retailers and it also has shareholdings in AO World and Currys. Canaccord Genuity has reduced its stake from 5.24% to 2.4%. Founder Mark Smithson still owns 73.8%. Rockwood Strategic (RKW) has built up a 4.54% stake in Kooth (KOO). This follows Canaccrd Genuity cutting its stake from 8.97% to 3.38%. River Global Investors recently nearly doubled its stake to 10.1%.
Bars operator Loungers (LGRS) has agreed a 310p/share cash bid from Fortress Investment, which values it at £338.3m. Irrevocable acceptances are 40.2%. Singer does not believe that this fully values the business and thinks 375p/share is a fairer value. Interim pre-tax profit grew 51% to £5.95m, while net debt was £12.2m. Like-for-like growth in revenues has been 3.9% so far in the third quarter.
Rare books dealer Scholium (SCHO) intends to leave AIM and believes this will save at least £75,000/year. In the six months to September 2024, underlying pre-tax profit improved from £43,000 to £221,000 on revenues that improved 30% to £4.97m. A matched bargain facility will be provided by JP Jenkins. The AIM cancellation is likely to be on 6 January. NAV is 74.6p/share.
In the six months to September 2024, TPXimpact (TPX) revenues fell from £41.6m to £37.8m, but underlying pre-tax profit improved from £600,000 to £1.1m. Most of the benefits from £3m of annualised cost savings will come through in the second half and next year. Net debt is £7.9m. The forecast 2024-25 revenues are already more than 90% underpinned by the current order book. Pre-tax profit should improve from £1.8m to £5.5m.
Trading at sustainable wood materials supplier Accsys Technologies (AXS) improved in the first half and full year figures will be better than expected. Interim revenues were 1% higher at €72.2m and there is also an initial contribution from the US joint venture of €1.9m. Arnhem plant volumes grew 5%. Underlying EBITDA rose from €1.6m to €4m. There was an exceptional charge of €20.8m due to the winding up of the Hull plant and the share of the joint venture loss jumped from €1.2m to €6.1m. Net debt was €40.2m at the end of September 2024. Full year EBITDA of €10m is forecast.
Gift wrap supplier IG Design (IGR) reported an 11% decline in interim revenues to $393.1m with North America still a problem area. Elsewhere, revenues fell at a slower rate. Stationery and party-related sales both fell by more than one-fifth. Higher sourcing and freight costs hit gross margins and there was a knock-on effect on operating margins. Pre-tax profit was 62% lower at $13.3m. The second half is the most important part of the year and even though full year revenues are set to fall, pre-tax profit is still forecast to improve from $25.9m to $32.7m.
Helix Exploration (HEX) reports that the Amsden formation at the Clink#1 well in the Ingomar Dome in Montana has sub-economic grades of helium. Amsden was always thought to be a small proportion of the potential resource. The more important Flathead formation at the same well had 2.5% helium. The company believes that there could be helium below the Amsden formation and there will be appraisal testing of the Charles formation.
Strix (KETL) says that the kettle controls market has weakened, particularly in higher margin markets in the UK and Germany. The positive signs in the first half did not continue. This is due to poor consumer confidence, while there are also cost pressures. Zeus has reduced its 2024 pre-tax profit forecast from £23.6m to £17.5m.
Nativo Resources (NTVO) owns 50% of Boku Resources, which owns the Tesoro gold mine. Boku has entered an agreement to sell vein material from the Bonanza mine to a local processing plant. It will receive the spot price minus 20-30%. Production is about to be built up and the cash from the deal will help to finance this.
Electric Guitar (ELEG) is placing its main subsidiary 3radical into administration after it failed to raise additional cash. The fall in the share price and apparent lack of liquidity before trading was suspended meant that the digital media business could not gain funding.
i-nexus Global (INX) intends to leave AIM. The cloud-based software provider says poor share price performance and liquidity has led to the proposal. There should be direct cost savings of £250,000. The business has been consistently loss making. There is a three-year growth plan. i-nexus Global raised £10m at 79p/share when it joined AIM in June 2018. The cancellation will happen on 27 December if shareholders agree.
Firering Strategic Minerals (FRG) announced a maiden JORC compliant mineral resource estimate for the quicklime project in Zambia. This shows a near-doubling of the resource tonnes compared with the 2017 estimate. There is 145.2Mt at 95.7% CaCO3, including 11.8Mt in the measured category. This could provide more than 50 years of production. There is growing demand from copper and industrial clients.
Ultrasound simulators developer Intelligent Ultrasound (IUG) has court approval for the capital reorganisation that will allow distribution of cash generated by the AI technology sale. There is £39.6m in the bank. Ultrasound revenues have fallen from £8.4m to £7.4m in the period to 22 November. The rate of decline has slowed in the second half.
Mercia Asset Management (MERC) has unchanged NAV of 43.4p/share at the end of September 2024. Income more than covered costs before any investment valuation movements. The interim dividend is 0.37p/share, up 6%, and there is £46m in cash on the balance sheet. The strategy is to grow assets under management to £3bn, from the current level of £1.8bn.
In the six months to September 2024, Cloud-based services provider Iomart (LSE: IOM) reported flat revenues of £62m, with a like-for-like decline when acquisitions are excluded, and a slump in pre-tax profit from £7.6m to £4.3m. The dividend has been reduced from 1.94p/share to 1.3p/share due to the lower earnings. The £57m purchase of Atech broadens the range of services provided and deepens the relationship with Microsoft. Atech provides fully managed and security services for mid-market business and enterprise customers. Net debt was £29.8m, but it is expected to rise to £79m in March 2025 following the payment for Atech.
In the six months to September 2024, thermal insulation and acoustic material manufacturer Autins Group (AUTG) was hit by a 17% drop in revenues, but gross margins improved. Underlying EBITDA fell 46% to £400,000. Net debt is £1.18m but there are more than £3m of available borrowing facilities.
Building services provider Northern Bear (NTBR) interims show a small improvement in revenues from £36.9m to £37.6m, but higher overheads meant that pre-tax profit dipped from £1.68m to £1.54m, although this was slightly better than expected. There was an operational cash inflow of £2.2m. Net debt is £1.4m. Hybridan forecasts a dip in full year pre-tax profit from £2.14m to £1.84m, although there is potential for an upgrade.
Cyber security services provider Shearwater (SWG) improved interim revenues by 8% to £11.3m and it is on course to be profitable for the full year. There has been an increase in demand for on-premises cyber security, which Shearwater can provide. Net cash should be £6.8m at the end of March 2025.
Quadrise (QED) has signed two long-awaited agreements. The deal with shipping company MSC and Cargill involves production of bioMSAR and MSAR fuels in Antwerp and will enable vessel trials on board the MSC Leandra. Cargill will supply feedstocks and sell the fuels to MSC. The trial should start in the first quarter of 2025. There is also an agreement with fuel supplier Auramarine to develop decarbonisation products in the marine sector. They will enable companies to comply with new environmental regulations.
Oracle Power (ORCP) has received the final batch of assay results for the drilling at the Northern Zone intrusive hosted gold project. These show high grades over an expanded area. A mineralisation report is expected by the end of November and then a mining lease application will be submitted. Cantor Fitzgerald has reduced its stake, and Mahfuz Chowdhury has taken a 3.72% shareholding.
MAIN MARKET
Packaging manufacturer and distributor Macfarlane Group (MACF) says revenues in the 10 months to October 2024 are 4% lower. This represents a steady performance in current markets with new business being won. Net dent is £4.7m. National Insurance and other budget measures will cost £1.5m/year.
Seraphim Space Investment Trust (SSIT) reported a decline in NAV from 96.2p/share to 93.96p/share over the first quarter to September 2024. A foreign exchange loss offset gains. The S/£ exchange rate has strengthened, and the value of the portfolio has increased by more than the first quarter loss. Shares in NASDAQ-listed AST SpaceMobile more than doubled in value during the period. There was £24.9m in the bank.
Cardiff Property (CDFF) grew NAV from 2844p/share to 2931p/share. The dividend was raised from 22p/share to 23.5p/share. Net cash was £2m at the end of September 2024.
Motor dealer Caffyns (CFYN) improved interim underlying pre-tax profit from £259,000 to £452,000. The interim dividend is maintained at 5p/share. Net debt is £11.5m. There is £38.4m of property in the balance sheet at book value and there is unrecognised surplus of more than £10m on top of that. Caffyns is selling a property in Lewes for an amount that exceeds one-quarter of the company’s market capitalisation of £12.3m.
Andrew Hore
Quoted Micro 23 September 2024
AQUIS STOCK EXCHANGE
Digital assets investor KR1 (KR1) reported interim revenues from those digital assets improving from £3.91m to £8.72m, although lower gains on disposals of assets meant that the pre-tax profit edged up from £10m to £10.3m. There was £1.5m in cash in the balance sheet at the end of June 2024. NAV was 82.01p/share at the end of June 2024 and this has fallen back to 71.92p/share at the end of July 2024.
Oscillate (MUSH) has signed an agreement to acquire Quantum Hydrogen for £1.4m in shares. The Minnesota exploration acreage has potential for hydrogen gas. There was £500,000 raised at 1p/share. Investee company Shortwave Life Sciences (PSY) announced positive safety results for its proprietary psilocybin-based drug combination.
Equipmake (EQIP) has received an order from Genco Energy, which is a supplier to Kiwi Bus Builders in New Zealand. This covers four zero emission drivetrains for trail electric buses. There are discussions for the supply of more drivetrains.
Food and beverages company Essentially (ESSN) has renegotiated supplier terms and its beverages are being sold in more stores. The Best of Latin was acquired in May. Interim revenues rose from £593,000 to £920,000. The loss was reduced from £400,000 to £236,000.
Macaulay Capital (MCAP) net assets declined from £1.36m to £1.17m in the six months to June 2024. The company has seven portfolio companies.
Mollyroe (MOY) had net assets of £267,000 at the end of June 2024 and that includes cash of £312,000. Management is seeking opportunities.
Telecom fibre optic cable components supplier Unigel (UNX) interim revenues declined from £18m to £14.8m, but higher gross margins mean that pre-tax profit improved from £630,000 to £930,000. Productivity improved and there were greater sales of higher margin products.
IntelliAM AI (INT) has won contracts with Hovis manufacturing sites, and they are worth £100,000 over 12 months.
Wishbone Gold (WSBN) has raised £360,000 at 0.375p. This will provide working capital. New 3D modelling at the Red Setter prospect owned by Wishbone Gold shows a high quality target, plus the structure of a dome target. The assessment of the Western Australia shows gold, some near the surface, and copper resource.
Probiotix Health (PBX) has secured an agreement with Greek consumer business Eifron, which will introduce YourBiotix tablets in early 2025 under its own brand. There will also be other products using Probiotix Health’s core ingredient launched.
Valereum (VLRM) says that its El Salvador subsidiary has obtained a Digital Asset Service Provider licence. This enables it to operate a real world asset ecosystem.
Marula Mining (MARU) reported a higher loss in 2023. There was a £913,000 cash outflow from operating activities. There was also a £1.67m outflow from investing activities. The first manganese export sales have been completed from the Larisoro manganese mine.
Watchstone Group (WTG) had net assets of £5.8m at the end of June 2024. That includes cash of £6.2m, but a return of capital has reduced the cash balance to £1.7m.
Adsure Services (ADS) has declared a final dividend of 0.99p/share. The ex-dividend date is 17 October.
Ananda Developments (ANA) raised £80,000 from a retail offer at 0.3p/share. This is on top of the £2.1m already raised.
Daniel Thwaites (THW) director RAJ Bailey bought 45,000 shares ate 85.05p each and 13,000 shares at 85.25p each. He owns 1.3%. Constantine Logothetis has acquired more shares in SulNOx Group (SNOX) taking his total to 25.1%. William Black and Armstrong Investments has increased its stake in EPE Special Opportunities (EO.P) from 5.1% to 6.02%.
AIM
Steel structures supplier Billington (BILN) was always going to have a tough time maintaining the 2023 figures and interim revenues fell 4% to £57.9m. Pre-tax profit was flat at £4.6m, although building safety products made a higher contribution offsetting a decline in structural steel. Net cash is still £21.9m even after the 33p/share dividend. The second half will not hold up as well. Cavendish has upgraded its 2024 forecast for the second time in six months. Pre-tax profit has been raised from £8.5m to £9.25m, still well down on the 2023 figure of £13.4m.
Digital coupons and loyalty technology provider Eagle Eye (EYE) continues to grow at an impressive rate as more retailers take up its technology with AI providing additional revenue opportunities. In the year to June 2024, revenues were 11% ahead at £47.7m, while pre-tax profit improved from £4.5m to £6.1m. Net cash is £9.1m and it will continue to build up. The five-year target is revenues of £100m.
Judges Scientific (JDG) had a tough first half. Organic revenues were 3% lower with China the weakest market. The international nature of the business helps to offset some of the downturns in specific markets. Pre-tax profit fell 16% to £10.8m. The order book covers 17 weeks of revenues. Panmure Liberum expects a dip in full year pre-tax profit from £31.7m to £30.7m. The recently announced Geotek contract will benefit the 2025 results.
Good Energy (GOOD) continues its transformation into an energy services business, but the real change will not be seen until next year when they start to make a positive contribution. The reduction in energy prices hit revenues of the supply business and profitability. The first half of the previous year was a beneficiary of high gas prices, so it is no surprise that revenues declined sharply from £156.1m to £97.4m. Pre-tax profit slumped from £13.1m to £4.4m.
There is a better outlook for kettle controls and water filtration products supplier Strix (KETL) following significant restructuring and cost cutting in the first half. This led to large exceptional charges. Interim revenues improved 2% to £66.1m and pre-tax profit rose from £6.9m to £7.8m. This excludes the Halopure business, which is up for sale. There were improved profit contributions from all three divisions. There is no interim dividend. Net debt has fallen to £68.8m.
Packaging equipment and automation provider Mpac Group (MPAC) is acquiring BCA Automation for £12.9m in cash and shares. The acquired business focuses on robotics and conveyor systems for food and other sectors, so it fits well with the existing business. The Boston-based business focuses on the packaging area, whereas Mpac is focused on earlier stages of production.
Ceramic and fragrance products supplier Portmeirion (PMP) had flagged the interim figures. Revenues fell 17% and there was a loss of £2m. Costs are being lowered and this has enabled full year estimates to be maintained with pre-tax profit expected to recover from £3m to £4.2m. This will come via cost savings and additional revenues. The dividend is being rebalanced from 3.5p/share to 1.5p/share, but the total dividend for 2024 should be higher than last year’s 5.5p/share.
There was yet another upgrade for Warpaint London (W7L) from Shore Capital following the interim figures today. There was strong growth in Europe and the UK. North America grew slightly but the focus is higher margin business. Gross margins continue to improve. Overall group sales were one-quarter ahead at £45.8m and pre-tax profit jumped from £6.3m to £11m. The full year pre-tax profit forecast has been raised 5% to £24.5m.
Kinovo (KINO) has won an 18-month contract with Hackney council. It is worth up to £12m and covers a range of decarbonisation works on 300 properties. The work should start in the fourth quarter of 2024. There is also another contract with Hackney worth £400,000. This work replaces another contract that is being retendered.
Intermediaries services provider Fintel (FNTL) grew interim revenues from £31.7m to £35.7m, helped by acquisitions. Zeus has updated its forecasts for the most recent acquisition ThreeSixty Services. The 2024 revenues have been raised from £74.3m to £77.5m, while pre-tax profit has been reduced from £18.4m to £17.2m.
DP Poland (DPP) generated like-for-like growth of 22% in the first half and the growth remains above 20% in the second half. Money raised this year is being invested in new Domino’s sites in Poland. There is also growth in franchising with four corporate stores sold to an overseas operator. The loss is reducing, and DP Poland could move into profit in 2025.
Phoenix Copper (PXC) has published the pre-feasibility study for the Empire open pit mine in Idaho. Discounted NPV at 7.5% discount is $87.9m and total cash costs are estimated at $2.44/copper equivalent pound. Over eight years the mine could generate net free cashflow of $153m. Further exploration planning is happening, and equipment is being purchased for the processing site.
Global Petroleum (GBP) has risen on the back of yesterday’s application two additional licences near to an existing Juno licence in Western Australia, where it increased its stake from 70% to 80%. This is near the Havieron project. Precious and base metals targets have been identified that have similar characteristics to the existing licence. The company has appointed Omar Alumad, who it says has a record of identifying early opportunities, as chief executive and Hamza Choudhry as finance director.
Software training services provider Northcoders (CODE) reported a 26% increase in interim revenues to £4.4m. Registrations for courses were at record levels. There was a small interim pre-tax profit. Net cash is £700,000. The corporate business has been rebranded Counter. Investment in the cloud and data analytics means that there will be continued demand for Northcoders’ training and services.
Digital media company Catenai (CTAI) reduced its loss from £196,000 to £13,000 in the six months to June 2024. That is down to the fees earned for the £450,000 convertible loan note investment in oil and gas-focused data analytics company Klarian and reduced costs. Catenai has also moved from net liabilities to net assets. The cash position has improved to £31,500.
Africa-focused energy company Chariot Ltd (CHAR) has completed the drilling of the Anchois-3 main hole. It encountered gas, but gas pays are thinner than pre-drill estimates. The well will be abandoned. The next step for the project is being discussed with joint venture partners.
Rockfire Resources (ROCK) raised £450,000 at 0.1p/share to continue the development of Molaoi zinc silver lead project in Greece. Earlier in the month, the JORC resource was raised by 500% to 1.09 million tonnes of zinc, 260,000 tonnes of lead and 19.1 million ounces of silver. A retail offer to existing shareholders of up to £250,000 managed to raise £82,000.
MAIN MARKET
Motor and property finance lender S and U (SUS) says that motor business remains challenging, although this could improve in the second half if FCA restrictions are removed. Property lending is still growing. The interims will be published on 8 October.
Trading in Hostmore (MORE) shares has been suspended and then cancelled because the company is being placed in administration.
Shipbroker Braemar (BMS) reassured investors about 2024-25 trading. Interim operating profit should be slightly higher than the £7.6m reported in the same period last year. There is £3.3m in cash. Management is confident about the rest of this year and next year despite continued volatility in shipping markets.
DG Innovate (DGI) raised £620,000 at 0.075p/share with management promising to subscribe £200,000 when the energy storage technology developer is not in a closed period. This will fund development of e-drives and energy storage products. It will also help to fund setting up a joint venture with EVage Automotive.
Becket Invest (TAB) has agreed to buy SMT Holdings, which will invest in strategic metals and rare earths used in technology and aerospace.
Andrew Hore
Quoted Micro 1 April 2024
AQUIS STOCK EXCHANGE
Incanthera (INC) has published an update on its distribution deal with Marionnaud. The first order for Skin + CELL products will generate revenues of £2m with 50,000 bottles of skin cream to be supplied for sale in Austria and Switzerland. A second order will be even bigger. The management projects revenues of £10m for the year to March 2025 and this would make it profitable. The range is being increased to five products and they are all part of the initial launch. Revenues could grow to £33m the following year. There is potential for licence deals in other countries.
Watchstone Group (WTG) says a subsidiary’s VAT appeal was dismissed even though it satisfied four out of five elements. A decision will be made on whether to appeal the judgement.
TruSpine Technologies (TSP) intends to issue a conversion notice to loan note holders. The conversion price is a 130% premium to the share price prior to the convertible loan note approval by the directors. A £200,000 debenture has been used to subscribe for convertible loan notes. Geoffrey Miller has increased his stake from 6.88% to 7.24%.
Quantum Exponential Group (QBIT) has announced a further adjournment of its a general meeting to gain shareholder approval for leaving Aquis. Investors have approached the quantum technology investment company and offered to make a substantial investment. Stuart Woods has stepped down from the board.
Cadence Minerals (KDNC) investee company European Metals Holdings (EMH) says that the Cinovec project in the Czech Republic is in the process of completing a definitive feasibility study, but it will not be completed in the first quarter. There is potential to improve the lithium processing. Cadence Minerals has increased its stake in the Amapa iron ore project in Brazil to 34%. A study should reduce costs and improve productivity of the proposed mine.
S-Ventures (SVEN) increased interim revenues from £8.4m to £9.6m but reported a higher loss from continuing operations. The bakery business was profitable, but this did not offset losses and impairment costs for other businesses. There is no further news on the proposed sale of operations to AIM-quoted Riverfort Global Opportunities.
KR1 (KR1) had net assets of 134.6p/share at the end of February 2024. There was income generated of £1.63m.
Arbuthnot Banking Group (ARBB) increased its pre-tax profit from £20m to £47.1m and the total dividend was raised from 42p/share to 46p/share. Bad debts were lower than forecast. NAV is 1547p/share. The profit is likely to fall this year.
Global Connectivity (GCON) is amending the terms of warrants issued when it floated and extending them by two years to 20 April 2026. The exercise price is being reduced to 1.5p. Management is exploring potential investments.
Marula Mining (MARU) has commenced exploration at the Larisoro manganese mine in Kenya.
Valereum (LON: VLRM) has raised £300,000 at 6p/share from its chairman and is planning a larger fundraising in the third quarter of 2024.
Jenny Hanlon has been appointed as chief executive of brewer Adnams (ADB). She is currently finance director.
Tap Global Group (TAP) generated trading payment volumes of £181.6m in 2023. That generated revenues of £2.02m, but the loss was still £1.07m.
EPE Special Opportunities (EO.P) had net assets of 324p/share at the end of January 2024. There was £15.3m in cash offset by £4m in loan notes repayable on 23 July.
Gunsynd (GUN) investee company Aberdeen Minerals is raising £3m at 8.5p/share from Central Asia Metals with a further £2m that could be raised from the exercise of warrants at 11p/share. This deal requires regulatory approval.
Lift Global Ventures (LFT) investee company Trans-Africa Energy has received funding of £12m from an African investor. The first energy infrastructure investment is in Ghana. Lift Global Ventures’ core investor relations business generated cash in the first half, although there was a cash outflow for the group as a whole.
Aiden Keegan has been appointed chief executive of Cooks Coffee Company (COOK).
Philip Blows reduced his stake in Supernova Digital Assets (SOL) from 10.6% to 7.98%. There was £68,000 in the bank and £1.95m in investments at the end of October 2023. NAV was £2.93m.
Daniel Thwaites (THW) director RAJ Bailey bought 15,000 shares at 71p each.
AIM
Marine technology developer Windward (WNWD) has cut its loss and is heading towards profitability. The 2023 revenues were $28.3m, up from $21.6m. Windward started 2023 with an annual contract value of $25.5m and that has risen to $34.5m, while the 2024 forecast revenues have been edged up from $34.5m to $35.1m. Requirements for tracking cargo and ensuring that sanctions are complied with are helping to increase demand, particularly from commercial clients. Commercial revenues increased to 30% of the total for 2023, but government revenues are also growing.
Grocery distributor Kitwave Group (KITW) has made its latest acquisition, and this will be earnings enhancing. Total Foodservice Solutions is a food wholesaler with two depots based in the north of England. The customer base includes pubs, restaurants, universities and care homes. The gross cost is £21m and that is reduced to £17m when cash in the business is taken into account.
Strong growth at the Billi filtration systems helped Strix (KETL) have a better second half, but the limited recovery in kettle controls and lower consumer goods sales meant that pre-tax profit was slightly lower at £21.9m. There is no dividend. There should be an improvement in profit this year, but it will still be well down on the 2021 figure. Net debt was £83.7m and could fall below £79m by the end of 2024.
Good Energy (GOOD) had a strong performance in 2023 due to high energy prices, but 2024 will not get that benefit and energy supply profit will fall sharply. In 2023, pre-tax profit doubled to £5.7m, but the 2024 forecast has been downgraded from £8.4m to £6.7m. The energy services business, including solar and heat pump installation, is being built up and it will become a more significant profit contributor over the next couple of years making the group performance less volatile.
Floorcoverings manufacturer Airea (AEIA) increased sales of its Burmatex-branded product by 14% to £21.1m. Pre-tax profit was flat at £1.4m, although it included a small valuation gain in the latest year. Higher finance costs relate to the pension scheme and operating profit increased. The net asset value is £14.9m, including net cash of £3.4m. Strong cash generation can cover the £5m investment in new capacity and a 10% increase in the dividend to 0.55p/share. The new capacity should be ready in early 2025 and will enable Airea to take advantage of own brand opportunities for clients.
Revolution Bars Group (RBG) is assessing its options that include restructuring the business or selling all or part of the operations. There are currently no bidders. Luke Johnson is involved in talks concerning a fundraising.
Semiconductor designer CML Microsystems (CML) is being hampered by lower than expected shipments as clients reduce stocks and this is continuing into the new financial year. In the year to March 2024, revenues will be slightly lower than expectations at £23m and underlying EBITDA will be £6.4m, compared with a forecast £6.8m, due to more sales of lower margin products. Full year pre-tax profit will be just under £3m. The balance sheet remains strong with net cash of nearly £18m. The full benefits of the Microwave Technology acquisition, which has performed well, will show through over the next couple of years.
Horizonte Minerals (HZM) published the latest financing estimate for the Araguaia nickel project. The cost to complete is $454m, but the full funding required is $567m-$592m, including pre-production and transaction costs. Existing liabilities are $418, and they require restructuring. More cash will be required by mid-April. Interest payments are being deferred. Existing shareholders are not in a strong position.
A more positive trading statement from film and video translation services provider ZOO Digital (ZOO) as management believes that demand should recover following the disruption of recent strikes in Hollywood. Revenues of $40m are now expected for the year to March 2024. A new film and TV distribution client has been won and there is greater visibility of work. The company still might not move back into profit in 2024-25, though. There is potential disruption from a craft workers strike in Hollywood.
Boilers developer Inspirit Energy (INSP) is near to completing the four electronic updates for its waste heat recovery system. The team is relocating back to the UK. The cash outflow was stemmed in the six months to December 2023.
Infrastructure India (IIP) shares returned from suspension when the interims to September 2023 were published. The board is proposing a winding-up of the company as it disposes of its assets and the share quotation will be cancelled if the proposals are passed at the AGM. Net liabilities are £217.4m.
Drug discovery company C4X Discovery (C4XD) also plans to cancel its AIM quotation and re-register as a private limited company if it gains shareholder approval at a general meeting on 15 April. Shareholders owning 57% of the shares are in favour. Management believes that it will be easier to raise funds as a private company and it will save money. C4X Discovery has raised £63m on AIM. In August 2022, £5.7m was raised at 25p/share. There is still £20.8m in the bank. In the six months to January 2024, revenues were £24.6m, due to milestone payments, compared with £1.7m in the first half of the previous year. The company is generally loss-making without substantial milestone payments.
Oil and gas producer Molecular Energies (MEN) is cancelling its AIM quotation because it does not believe it is worth the cost. The company should save £500,000/year. Chairman Peter Levine, who owns 29.2%, suggests that he may offer to buy shares of some other investors in the future, but there are no immediate plans to offer an exit prior to the cancellation. Green House Capital will no longer be spun off on AIM.
Infection protection technology developer Byotrol (BYOT) has been quoted for nearly 19 years and it has decided to leave AIM. Revenues from continuing products could improve from £3.7m to £3.9m this year. No further IP revenues are expected this year. Some IP was sold to Tristel (TSTL) and along with an early termination of another licence generated cash of £800,000, but minimum guaranteed royalties will be written down by £550,000 in the balance sheet. Even before that, there will be a higher loss in 2023-24. The business needs to be restructured and reduce costs and believes there will be more flexibility as a private company.
MAIN MARKET
Quantum dots developer Nanoco (NANO) generated interim revenues of £4m, including the recognition of £3m of Samsung licence income, up from £1.6m. Net cash was £54.5m at the end of January 2024. Second half non-Samsung revenues should be higher.
First Tin (1SN) had a cash outflow from operations of more than £2m in 2023. There was also £6.4m spent on exploration activities. There is £4.66m left in the bank.
Cizzle Biotechnology (CIZ) has raised £620,000 via a placing at 2p/share. This will fund the first proposed commercial test for its lung cancer test. The £500,000 loan facility with E3 Fund will be terminated.
Andrew Hore
Quoted Micro 27 September 2021
AQUIS STOCK EXCHANGE
Michael Williams has stepped down as chairman and chief executive of British Honey Company (BHC) and non-exec Philip Seers has also resigned. Robert Porter-Smith has rejoined the board and Alex Maurice becomes chief operating officer. This follows the general meeting requisition, and it is unclear what will happen with that.
Ecotricity has accelerated its 400p a share bid for rival renewable energy supplier Good Energy (GOOD) and it will close on 8 October.
St Mark Homes (SMAP) had net assets of 120p a share at the June 2021. Interim turnover was flat at £108,000 and the loss was reduced from £84,000 to £49,000. The residential development in Sutton will be marketed later this year.
Japanese whisky supplier Rogue Baron (SHNJ) generated revenues of $505,000 in the first half of 2021. There was a loss of $150,000 before flotation costs. Net cash is $139,000. A marketing push is planned for next year.
Rural Broadband Solutions (RBBS) has 2,650 monthly paying connections and expects 2,800 by the end of the year. Interim revenues were £395,000 and the loss was £401,000. Costs have increased due to the strengthening of management to boost the sales and marketing operations. Net cash was £341,000.
Western Selection (WESP) made a reduced loss in the year to June 2021 and no dividend is being paid. Net assets are £10m.
Yooma Wellness Inc (YOOM) is acquiring US-based sparkling water brand Big Swig for $2.5m, minus anticipated liabilities, in shares. This will increase the number of retailers the group deals with in the southern US.
KR1 (KR1) has participated in the Basilisk crowdloan and Kusama (KSM) parachain auction. It contributed 11,111.1 KSM to the crowdloan.
TruSpine Technologies (TSP) has raised £650,000 at 10p a share and Oberon Capital has been appointed as broker. An FDA 510k application for spinal stabilisation system Cervi-LOK should be lodged before the end of the year.
Rutherford Health (RUTH) has opened a community diagnostics hub in partnership with Somerset NHS Foundation Trust. There are up to five community hubs planned.
Capital for Colleagues (CFCP) had net assets of 69.71p a share at the end of August 2021.
IamFire (FIRE) has raised £396,000 at 3p a share. It issued broker Peterhouse with 200,000 warrants at a strike price of 10p a share. John Taylor, a director of AIM and Aquis companies, and Sandy Barblett, who is a director of Rogue Baron, have joined the board. Burns Singh Tennent-Bhohi is leaving the board.
Oscillate (MUSH) director Burns Singh Tennent-Bhohi has bought one million shares at 2.072p each. He owns eight million shares. The sister of the chief executive of S-Ventures (SVEN) has sold 600,000 shares at 27p each.
AIM
Judges Scientific (JDG) is improving its order book and some of the benefits will show through in the second half. In the six months to June 2021, revenues increased from £37.4m to £43m – the 2019 figure was £40.2m. Underlying pre-tax profit improved from £6.4m to £8.5m, which is slightly higher than 2019 interim figure. To put this in perspective, there have been three acquisitions since the first half of 2019, but it does show a strong recovery.
SourceBio International (SBI) says that updated Covid-19-related travel requirements, that mean that inbound fully vaccinated people will not need PCR tests on days two and eight, will hamper progress in the fourth quarter. Testing volumes had been growing and they will fall back. So far this month, the figure is 14,000 per day.
IT recruitment and services provider Parity Group (PTY) has been increasing investment in its business but that has led to an interim loss. In the six months to June 2021, Parity revenues declined from £29.9m to £26m, which was also below the second half 2020 revenues. Revenues are continuing to decline. A small interim profit has become a small loss and the loss is set to increase in the second half. Parity has swung from net cash to net det of £1.1m, excluding lease liabilities, at the end of June 2021 and a further cash outflow is expected in the second half.
Pennant International (PEN) growing its software revenues and plans to increase its exposure to the rail sector in order to lessen dependence on aerospace and defence. The first half was tough. Revenues did improve from £6.26m to £7.43m, but Pennant remains loss making. There are more than £1m of annualised savings. The three-year order book is worth £26m and there is also a significant pipeline of potential projects for the technical training business.
Cyber security firm ECSC (ECSC) increased interim revenues by 15% to £3m and there was a small reduction in loss to £207,000. Utilisation levels of consultants are increasing, and the recurring managed detection and response revenues grew by 17%. A full year loss is expected.
Cosmetics supplier Warpaint London (W7L) has done well with the roll out in Tesco stores and next year there will be a further boost from a Boots roll out. Interim revenues rose from £13.5m to £18.4m even though there was a decision to reduce close out activity. Profit quadrupled to £1.6m and it was higher than the 2019 figure. The interim dividend is 2.5p a share. Sales in the eight months to August were £27m.
Steel structures supplier Billington (BILN) improved interim revenues by 15% to £37.7m and pre-tax profit was one-quarter higher at £763,000. Net cash was £12.1m at the end of June 2021. Structural steel operations were near to full capacity in the period, while the safety products business increased revenues by one-fifth.
Kettle controls and water appliances manufacturer Strix (KETL) produced record interim figures, even though new product launches were too late to make a difference. The new factory has opened in China with plenty of capacity to handle growth.
Employee benefits services and insurance provider Personal Group (PGH) is growing its SaaS-based business. The deal with Sage is also starting to generate more significant revenues following a free pilot stage. Group revenues fell because of the lack of face-face insurance sales, but there should be a recovery next year.
MAIN MARKET
Maternity wear supplier Seraphine Group (BUMP) says that first quarter trading was strong, but it has been tougher in the second quarter because of supply issues. That means that first half profit will be lower. Full year profit should be at least in line with the 2020-21 figure.
Path Investments (PATH) has provided a loan facility of up to £600,000 to DG Innovate, which Path has conditionally agreed to acquire. DG Innovate is developing electric motor and energy storage technologies.
Serum Life Sciences is investing £50m in Oxford Biomedica (OXB) in return for a 3.9% stake. The cash will be invested in developing the company’s manufacturing facility.
NMCN (NMCN) plans to move from the premium to the standard list. This is part of Svella’s requirement to extend its commitment to subscribe for shares in NMCN. A circular is required to convene a general meeting that should be held by 1 November. Lloyds Bank has extended the company’s overdraft facility to 5 November.
Andrew Hore
Andrew Hore – Quoted Micro 11 February 2019
NEX EXCHANGE
Primorus Investments (PRIM) says that investee company Sport:80 has delayed its flotation because it has been tidying up its shareholder register. Fintech company Engage Technology is also seeking to float later in 2019 following new product launches. Engage raised £2.6m at £22 a share at the end of 2018, whereas the average buying price by Primorus was £20.03 a share. Investee company, AIM-quoted Greatland Gold (GGP) has published results from the second drilling campaign at Havieron in Western Australia. Every drill hole intersected mineralisation and they extend the overall mineralisation. Drilling will recommence in March. Primorus has raised cash by selling most of the stake in UK Oil and Gas (UKOG) and Primorus was debt free at the end of 2018.
NEX has decided not to suspend trading in the shares of VI Mining (VIM) even though its corporate adviser Daniel Stewart is no longer a member of NEX. VI Mining had little or no notice of its adviser’s withdrawal. A new corporate adviser is being sought.
Milamber Ventures (MLVP) has acquired apprenticeship training provider Astara Training for £16,666 in shares at 9p each. Milamber lost £179,000 in the third quarter and there was £30,000 in the bank at the end of 2018.
Panther Metals (PALM) has announced the initial results of exploration activity at the Bear Lake project in Ontario. There was gold in soil anomalies at four of the five areas tested. Four areas have quartz vein sample assays above 5g/t gold. Two samples had large grade samples. The next phase of exploration is being planned and could start in the second quarter of 2019.
Auxico Resources Canada Inc (AUAG) has signed a deal that could enable it to earn a 70% interest in a joint venture that owns the Palha tantalum property in northern Brazil.
AIM (February 2019 AIM Journal available here)
DP Poland (DPP) is running short of cash and is more than doubling its share capital through a heavily discounted placing raising £5.3m at 6p a share, with the possibility of an additional £500,000. The Domino’s Pizza franchisee for Poland has found competition is getting tougher and growth has slowed. The cash is required to cover losses and open more outlets. Peter Shaw is stepping down as chief executive at the end of June, nearly a decade after founding the business.
Ticketing and queueing technology provider Accesso Technology (ACSO) is reviewing its investment priorities although it says that 2018 figures should be broadly in line with expectations. These will be published on 27 March. A deal fell through and this cost $1.7m. Tom Burnet is moving from executive chairman to a non-exec role. The share price is less than one-third of last year’s high. BlackRock has cut its stake below 5%.
Midatech Pharma (MTPH) has launched a placing and 0.318-for-one open offer to raise up to £4.75m at 3.85p a share on top of the £8m subscription by former AIM company China Medical System Holdings, which will licence products for the Chinese market. The clinical trial for cancer treatment MTD201 will cost up to £7m.
Duke Royalty (DUKE) is acquiring its UK rival Capital Step and this will double the size of the portfolio to eleven investments and diversify it in terms of sectors. There is an initial £10m cash payment and the assumption of debt of £11.65m. There is performance related consideration of up to £1.5m. The deal is immediately earnings enhancing.
Visa has increased its bid for Earthport (EPO) from 30p a share to 37p a share, which beats the Mastercard offer of 33p a share. The latest bid values Earthport at £247m.
Taptica (TAP) has launched a recommended bid for RhythmOne (RTHM) and this will create one of the largest video advertising companies in the US. The offer is 28 Taptica shares for every 33 RhythmOne shares. Taptica shareholders will own 50.1% of the enlarged group. A $15m share buyback programme is planned after the merger. Ofer Druker will become chief executive.
Polemos (PLMO) has finalised the details of its reverse takeover of Digitalbox Publishing for £10m in shares and it is also acquiring the owner of the Daily Mash satirical news website for up to £1.2m in cash and shares. The model for the Entertainment Daily website will be used to improve the performance of the Daily Mash. A placing will raise £1.02m at 14p a share. The company will change its name to Digitalbox.
Hardide (HDD) is raising £3.6m at 1.5p a share so that it can move to new premises in the UK and invest in additional equipment. The surface coatings company is experiencing increasing demand from the oil and gas sector and there is potential for orders from aerospace companies. It will take two years to fully equip and move into the new facility. Hardide also intends to consolidate 40 shares into one new share.
finnCap has raised its forecasts for Tracsis (TRCS) following recent acquisitions. There is a 3% increase in earnings per share for this year and an 11% rise to 30.5p next year.
Stride Gaming (STR) has traded in line with previously downgraded expectations. Cost cutting continues to cover higher regulatory and tax costs. The online gaming operator will report a lower profit in 2018 and it is set to fall again in 2019. Net cash was £22.1m at the end of 2018.
Bowmark Capital has offered 110p a share for Tax Systems (TAX) and discussions continue. Tax Systems reduced net debt from £20.5m to £13.9m by the end of 2018. Pre-tax profit of £5.8m is forecast for 2018.
Victoria (VCP) has sold surplus land in Kidderminster for £2m. The land was in the books for £100,000 but it has obtained planning consent for housing.
Starcom (STAR) has renegotiated its agreement with Xplosive in South Africa, having originally announced it in October 2017. Xplosive has signed a 36-month agreement to pay a monthly fee for each of the Kylos units supplied for the monitoring of cattle. The fees are higher in the first six months and then reduce. The agreement should be worth $500,000.
Strix Group (KETL) has offered to acquire most of the assets of HaloSource (HAL) for $1.3m. Strix has provided working capital of $100,000. Due diligence is being carried out on the water filtration technology and if the deal goes through the cash will pay creditors, but there will be nothing for shareholders.
Prospex Oil and Gas (PXOG) has announced that the Selva gas field in northern Italy has net 2P reserves of 13.3bcf and there are 2.26bcf attributable to Prospex, which has a 17% stake. Selva could start production in 2020 at a rate of up to 150,000 cubic metres/day.
Tau Capital (TAU) plans to raise cash via a placing through Peterhouse and then a capital distribution will be made to all shareholders. This will enable Tau to seek an acquisition. It has until 18 April to secure a deal or trading in the shares will be suspended. Armstrong Investments has increased its stake from 11.7% to 15.7%.
Evgen Pharma (EVG) says that the SFX-01 clinical trial for subarachnoid haemorrhage is on course having completed recruitment and the primary endpoints should be available in the second quarter. Partners Investment Company has acquired at 3.15% stake.
Sports Direct International (SPD) made a £15m offer to buy Patisserie Valerie from the administrator, but this was not deemed enough. Even a higher selling price won’t provide anything for Patisserie Holdings shareholders.
MAIN MARKET
Solicitor DWF plans to raise £75m via a March flotation an some of the cash will repay members’ capital contributions as well as invest in the business. Existing shareholders will also sell shares and partners’ remaining stakes will be locked up until April 2024.
Two former AIM-quoted companies are coming together to join the standard list. Daniel Stewart Securities, which is closing its broking business, is making an offer for Atlantic Carbon, which was previously known as Atlantic Coal, where Adam Wilson, who has had connections with Daniel Stewart, is executive chairman. Singapore-based backer Epsilon Investments refused to put more money into the broker and that is why it is closing. Epsilon holds a majority stake in Hyde Park Holdings, which owns broker Novum Securities. Last October, SeeThruEquity research suggested that Atlantic had an equity value of $86.8m and $68m of debt. In 2017, Atlantic was the largest producer of anthracite in the US with a market share of one-third based on 1.18 million tonnes produced. Atlantic is expected to have moved into profit in 2018, although it did generate cash from operations in 2017. The owners of more than 50% of Atlantic shares have agreed to accept the bid of 1.5587 shares for each Atlantic share.
Thalassa Holdings (THAL) is offering 14.64p a share in cash and 0.26 of a share for each share in The Local Shopping REIT. Thalassa already owns 25.5% of the bid target, which is valued at 32.8p a share. The bid is an alternative to the winding up of The Local Shopping REIT.
Blockchain Worldwide (BLOC) is no longer acquiring blockchain technology developer Chorum Group because of political uncertainty affecting the UK equity markets. Former Avanti Communications boss David Williams is the director of Chorum. Blockchain Worldwide has more than £1m in the bank and is also looking at other technology sectors for acquisitions.
Drilling of the Colter appraisal well in Dorset has commenced and United Oil and Gas (UOG) has a 10% interest. The drilling should take three weeks. The Selva gas field in Italy has net 2P reserves of 2.7bcf attributable to United, which has a 20% stake. Selva could start production in 2020. United intends to move to AIM.
Oil and gas producer Zenith Energy (ZEN) has raised £607,000 in Canada and the UK at C$0.05 a share and 3p a share respectively.
Motor finance provider S and U (SUS) has confirmed that its figures for the year to January 2019 will be in line with expectations. The Aspen property bridging loan business had a loan book of £18m at the end of January 2019. Cautious lending criteria means that new business has slowed in recent months and this has led to a 5% 2019-20 earnings downgrade to 230.1p a share.
BATM (BVC) has won a $3.2m cyber security contract and this takes contracted revenues from this government customer to more than $10m. The latest contract will be delivered this year.
Chesterfield Resources (CHF) is expanding its exploration programme in Cyprus. Initial drilling in an area near historic mining has shown gold, copper and zinc mineralisation. Chesterfield is also applying for licences to extend its licence area.
Dev Clever (DEV) has launched pay per play multi-player, virtual reality game Vanguard: Fight for Rudiarius in Harlow shopping centre. The game will be rolled out to other UK sites.
Bluebird Merchant (BMV) has applied for a grant to help finance drilling at the Kochang project in South Korea and there should be news by the end of the month. There has also been a permit application to develop Kochang.
Andrew Hore
Ian Pollard – Dixons Carphone will keep twitching its antenna
Dixons Carphone plc DC claims that its international businesses had a “terrific” Xmas but as is so often the sad story of late, the UK lagged far behind. In the 10 weeks to the 6th January, the star of the show was Greece with a like for like sales rise of 23%, followed by the Nordics with 11%. The UK and Ireland came last with a 3% rise compared to 6% for the company as whole. Looking forward management asserts that it is keeping its antenna twitching.
Computacenter CCC describes 2017 as a year of great progress and it is now anticipated that adjusted pre tax results will be ahead of the Boards expectations, which have already been upgraded on a number of occasions during the year.Group revenue rose by 12% on a constant currency basis but the UK produced the best quarter 4 growth seen for a number of years, with a rise of 16% just ahead of the Germans with 15% and France with 13%.
AnimalCare Group ANCR Revenue for the year to 31st December was slightly ahead of expectations with a revenue rise of 9.5%, 10.9% on a like for like basis. The integration with Ecuphar which was acquired in July is going well.
Strix Group KETL maintained its clear market leading position during 2017 with a global volume share of some 39%. Results for the year to 31st December are expected to be in line but particularly strong cash flow should produce a significantly improved net debt performance.
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