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Quoted Micro 23 December 2024
AQUIS STOCK EXCHANGE
Surgical procedures provider One Health Group (OHGR) increased revenues 22% to £13.3m, while pre-tax profit improved from £560,000 to £845,000. The interim dividend was raised 2% to 2.07p/share. Cash in the bank was £4.89m at the end of September 2024. There have been record referrals by the NHS since the end of the period and it wants the company to increase its capacity. A retrospective increase in the NHS tariff should boost profit by £250,000 this year. A planning application will be submitted for a surgical hub.
Business assurance provider Adsure Services (ADS) increased revenues 19% to £5.06m and it moved from a loss of £30,000 to a pre-tax profit of £330,000. The latest dividend is 0.786p/share.
Marula Mining (MARU) is planning a strategic partnership with the Mining Engineers Society of Kenya, which will provide expertise to the company. Marula Mining will provide annual financial support. Gathoni Muchai Investments bought 250,000 shares at 4.65p each and 500,000 shares at 4.56p each, taking the stake to 8.85%.
Skincare technology developer Incanthera (INC) reported a flat interim loss of £620,000. There was cash of £1.06m at the end of September 2024. There is no additional news on the litigation that prevented the launch of the Skin + CELL skincare product range. There is £1.24m of inventory and work in progress in the balance sheet that was built up for the launch.
Valereum (VLRM) has signed non-binding heads of terms for raising £13m at 10p/share with DMC Markets Inc. Valereum has also signed a binding option with an investor for raising £2m at 10p/share. This investor is building its own digital asset ecosystem, which could fit with Valereum’s interests. The additional cash will help to accelerate growth.
Healthcare IT provider DXS International (DXSP) wants to expand into a new territory in the EU or elsewhere in 2025. There are 22% of NHS Integrated Care Boards using the new Aios SMART Referrals software and more will be converted. The first commercial sale of ExpertCare therapeutic management software was in October.
Broking and wealth management business Oberon Investments (OBE) grew revenues by 74% to £4.8m in the six months to September 2024. The loss was reduced from £1.59m to £1.24m. There was £2.26m in the bank at the end of September 2024. Corporate broking increased revenues by 124% to £1.54m. There are 21 retained clients and there are private capital fundraisings expected in 2025. The launch of the Oberon AIM VCT is expected in the summer of 2025.There are also plans to take on more experience staff.
In the year to June 2024, fintech company Tap Global Group (TAP) grew revenues 31% to £2.65m, although the core business was not part of the group for the whole of the previous year. Those revenues were 6% ahead. In the first five months of the new financial year revenues were 24% with the latest month 77% ahead. The company introduced its XTP token locking feature for UK customers. Tokens can be locked for 12 months.
Investment Evolution Credit (IEC) is appointing John van Kuffeler, who founded Non-Standard Finance, as executive chairman. Marc Howells will be appointed chief executive. Dr Richard Leaver is becoming a non-exec, and he will provide AI expertise. Investment Evolution Credit is assessing potential acquisitions that could provide it with a UK lending licence, as well as loan book purchases. There are plans to expand in the US and internationally. The 15% IEC bond is no longer being offered to investors and the focus will be institutional debt funding.
BWA Group (BWAP) recently completed exploration drilling at the Dehane 2 rutile sands permit in Cameroon. Total heavy minerals raw sample grades are up to 20.4% over two metres thickness. This has increased the confidence of management that there could be a commercial project. Geological modelling is planned.
Oscillate (MUSH) has started fieldwork on its Minnesota hydrogen interests, while land access permitting ongoing. There will be a detailed review of regional surface geology.
Igraine (KING) investee company Fixit Medical, where it owns 20%, has confirmed that it plans to pursue FDA approval and CE marking for its Cingo product, which prevents catheters from twisting. It is also launching three new medical device products. Two IP grants have been received.
EDX Medical (EDX) has launched a range of test for determining hereditary risk of cancer and heart disease. Revenues remain minimal and the interim loss rose from £1.34m to £1.7m. There was cash of £2.31m at the end of September 2024.
Crypto investor Kasei Digital Assets (KASH) realised £220,000 profit in the year to July 2024. NAV increased from £2.31m to £3.42m. There are investments in a range of Crypto currencies and tokens, including Bitcoin.
A person associated with IntelliAM AI (INT) chief executive Tom Clayton bought 8,660 shares at 80.763p each and 2,280 shares at 87.5p each. He owns 24.8% of the AI company. Chris Wragg, divisional head of lubrication and applied sciences, bought 1,668 shares at 87.5p and he owns 4.38% of the company.
Shepherd Neame (SHEP) has appointed Marion Sears and Meg Lustman as non-executive directors.
WeCap (WCAP) has raised £172,000 at 0.85p/share. Global Prime Partners increased it stake from 9.69% to 11.3%. Hot Rocks Investments (HRIP) raised £60,000 at 0.4p/share. A stake has been built up in Oscillate and there is a potential digital payments investment.
Ananda Developments has changed its name to Ananda Pharma (LON: ANA).
AIM
AIM newcomer Amcomri Group (AMCO) ended the week at 57.5p, having raised £12m at 55p/share. That valued the engineering business at £39.5m. Amcomri was set up to undertake a buy, improve, build strategy in the engineering and industrial sectors.
Retailer Shoe Zone (SHOE) says the recent National Insurance increase have increased costs, and it is closing stores are not considered viable. Consumer confidence is weak. The focus is bigger, more profitable stores. The company has halved its 2024-25 pre-tax profit guidance to net less than £5m. Although profit estimates for the year to September 2024 are unchanged at £9.5m there will be no final dividend.
Cavendish is raising its forecasts for Filtronic (FTC) following its latest trading update. Space and defence demand are propelling growth. Filtronic is providing E-band power amplifiers for ground stations to SpaceX and first half demand was particularly strong. The UK defence review could generate opportunities later in 2025. The 2024-25 pre-tax profit forecast has been raised from £7.7m to £9.6m.
Active Energy Group (AEG) shares returned from suspension following publication of interims and the potential for a resurrection of the business. Shareholders previously voted against liquidating the company and Zen Ventures provided a loan of £200,000 to enable the publication of 2023 accounts earlier in December and the subsequent interims have been released. Zen Ventures will appoint two directors. The plan is to commercialise the CoalSwitch technology.
Energy optimisation and assurance services provider Inspired (INSE) is improving its balance sheet via a placing raising £21.25m at 40p/share and a retail offer raised £410,000. There is also an issue of £5m of 12% convertible loan notes, which are convertible at 80p/share. The shares come with warrants exercisable at 80p each.
Surgical Science Sweden is bidding 13p/share to Intelligent Ultrasound (IUG), which values the ultrasound simulation company at £45.2m. The bid is recommended by the board. Intelligent Ultrasound will benefit from becoming part of a larger group and it enables the bidder to obtain a UK operation. Intelligent Ultrasound was going to return cash to shareholders following the sale of its clinical AI business. There was cash of £39.6m in November, which covers most of the bid value.
Tribe Technology (LTRYB) revealed that its accounts will be delayed, and it plans to leave AIM. The autonomous mining equipment developer is in talks with potential provider of finance, and it believes that leaving AIM will make it easier to raise money. Trading in the shares will be suspended on 2 January. Neometals (NMT) is cancelling its AIM quotation and concentrating on the ASX listing. It joined AIM in 2022, but it has been difficult to raise funds. Trading volumes on AIM have been low. The cancellation will be on 3 February. Retailer Quiz (QUIZ) is also planning to leave AIM. Shareholders approved plans for Webis (WEB) to lave AIM and this will happen on 3 January.
Synairgen (SNG) wants to raise up to £19m at 2p/share to fund a phase II study for respiratory drug treatment SNG001. The largest shareholder TFG Asset Management has conditionally underwritten £18m of this. However, there is a placing and open offer to raise £6m and the TFG subscription will be reduced by the amount raised over £1m. However, if the placing and open offer does not raise at least £2.9m the AIM quotation will be cancelled.
Tiger Royalties and Investments (TIR) is changing strategy to become a technology incubator. It is acquiring Bixby Technology Inc, which is run by Jonathan Bixby, for £325,000. A fundraising at 0.1p/share will raise £3m. New shareholders include Premier Miton, Zeus and Jupiter. Toro is subscribing £325,000 worth of shares. The company is retaining its core resources investments, and it will consider other natural resources investments.
There was a reassuring update from Feedback (FDBK) concerning first half trading, but more was generated by the Bleepa medical imaging communications product. There are talks with Integrated Care Boards about further contracts. Net cash was £7.3m at the end of November 2024 and there were £500,000 of retail offer proceeds to be received. That compares with a market capitalisation of £7.3m.
Duke Capital (DUKE) increased recurring interim revenues by 4% to £12.7m. Fewer exit premia meant that total revenues dipped to £13.5m, from £14.1m. There have been £15m of follow-on investments in the period. Despite the £3.5m fundraising at 27.5p/share, the debt level is still significant with £69.1m forecast for the end of March 2024. Duke Capital provides important financial backing for small businesses through a combination of debt and equity and generates a steady income stream from those investments with longer-term upside.
Electronic and electro-mechanical components supplier LPA Group (LPA) has won three major contracts worth £4m. They are with French rail operator SNCF Voyageurs for interior LED lighting, Siemens Mobility, also for LED lighting, and seating manufacturer Grammer for eat electronics and lighting for trains in France. The SNCF contract last five years while the others are deliverable in 2025 and 2026.
Provexis (PXS) is purchasing a further batch of Fruitflow heart-health functional food ingredient inventory from dsm-firmnech to satisfy increasing demand for Fruitflow. The royalty based on gross profit will be paid to dsm-firmnech in shares. The total payment for inventory and royalty is 82.95 million shares at 0.68p each. DSM Venturing owns 10.9%.
Scholium Group (SCHO) managed to gain enough shareholder support for the plan to leave AIM. It required 75% of votes and it got 79.3%.
Digital media publisher Digitalbox (DBOX) has bought EastEnders for £50,000. It has 475,000 followers on the associated Walford East Facebook page. This adds to the recently launched Emmerdale Insider.
Nioko Resources is making a recommended offer of 2.68p/share for Hummingbird Resources (HUM). This is the same as the price of the debt-to-equity swap previously announced.
MAIN MARKET
Rockpool Acquisitions (ROC) revealed the potential acquisition of European Lingerie. The exclusivity period lasts until the end of June 2025.
Media Concierge has launched a recommended bid for National World (LON: NWOR). The 23p/share offer values the company at £65.1m.
London Finance and Investment Group (LFI) plans to wind itself up and return cash to shareholders. This could be 70p/share.
Acceler8 Ventures (AC8) is planning to acquire Verifyyed Inc, which has developed a royalty platform providing rights holders with greater transparency to drive revenues. California-based Verifyyed Inc has operations in Europe, and it will cost £96.8m in shares. A placing to raise up to £20m is anticipated.
The 79th GRP plans to invest £2.18m in First Class Metals (FCM) in two stages. It will end up with 51.2% of the enlarged share capital. The cash will be invested in projects in Ontario and there are potential synergies for project acquisitions.
Andrew Hore
Andrew Hore – Quoted Micro 2 March 2020
NEX EXCHANGE
Incanthera (INC) raised £1.21m at 9.5p a share prior to joining NEX on 28 February. The price at the end of the first day of dealings was 10.5p (9.5p/11.5p). There were no trades. Incanthera is developing Sol, a topical product for the treatment of solar keratosis and prevention of skin cancer, which could be licenced to a partner within 18 months.
Mechanical and electrical installation services provider Field System Designs Holdings (FSD) continued to be hit by problems with its energy from waste customer in the first half. Revenues dipped from £11.8m to £11.5m, but it went from profit to loss due to litigation costs. The water sector is the main focus of the company. The new AMP7 water investment period starts in April. There was cash of £4.38m at the end of November 2019. The NAV was £3.28m compared with a market capitalisation of £2.4m.
Employee-owned business finance provider Capital for Colleagues (CFCP) broadly maintained its NAV at 43.44p a share at the end of August 2019. A £800,000 investment valuation gain plus a £126,000 write back of provisions was offset by loan impairments of £908,000. Management believes that several investee companies will have encouraging developments this year.
Ashley House (ASH) has decided to withdraw from NEX on 26 March and maintain its AIM quotation. Cash remains in short supply due to the failure to receive more than £1m owed by two debtors. More cash needs to be raised. Non-core assets could be sold. There are good prospects for the business. Three memoranda of understanding / framework agreements have been signed with institutions. There is a pipeline of nine potential affordable housing schemes, four of which have planning permission.
AfriAg Global (AFRI) says it intends to bid for the rest of Apollon UK, which has the right to 95% of net profit of Apollon Formularies Jamaica and the right to acquire a 49% stake in that business. AfriAg owns 2.68% of Apollon UK and is trying to satisfy regulatory requirements for the offer to go ahead.
PCG Entertainment (PCGE) had less than $24,000 left in the bank at the end of September 2019. A proposed deal fell through last year and management is considering a new strategy which could be announced in a few weeks. Trading in the shares remains suspended.
Eastinco Mining and Exploration (EM.P) has signed a joint venture agreement with Dynasty Construction, which owns 600 hectares of land in Rwanda, to explore for tin, tungsten and tantalum. Eastinco says the operation of the wash plant at the Kuaka mine has been delayed. It should be in operation by the end of April.
Dozen Savings 5% secured bonds 1 March 2020 have been withdrawn from NEX.
AIM
Netcall (NET) increased its total annual contract value by 10% to £16.6m at the end of 2019. The customer engagement software provider has been increasing the sales of its low-code products, which represent one-third of group revenues just a couple of years after the products were launched. The Liberty Connect conversational messaging platform has generated the first orders.
Fashion retailer Quiz (QUIZ) has been performing poorly almost since it joined AIM and many investors have lost patience. Fidelity sold its 5% stake, but one investor that believes it is a good time to buy the shares is Cavendish Asset Management, which has more than doubled its stake from 5.24% to 11.8%.
Redx Pharma (REDX) has terminated merger discussions with Yesod Bio-Sciences because the offer was not high enough. Redmile Group will provide up to £26.3m of funding to Redx. Redmile will subscribe for 11.5 million shares at 11.2p each, which is higher than the market price in the past six months. There will also be a £5m short-term loan and a £20m convertible loan. The share subscription will provide enough cash until April while the terms of the loans are agreed.
Cora Gold (CORA) has announced further drill results for the Sanankoro gold project in the Yanfolila gold belt in southern Mali. The results confirm significant additional mineralisation with some grades above 2g/t. There are more results to come.
finnCap is not changing its forecast for Surface Transforms (SCE) following its seven month figures. The carbon fibre brake discs developer is changing its year end from May to December. In the 17 months to December 2020, revenues of £3.3m and a loss of £1.7m are forecast.
Empire Metals (EEE) has raised £600,000 at 1p a share in order to invest in its assets in Georgia and identify other assets.
United Oil and Gas (UOG) has completed the acquisition of Egyptian oil and gas assets from Rockhopper Exploration (RKH) and it was readmitted to AIM on 28 February.
Eden Research (EDEN) is raising up to £10.6m at 6p a share via a placing and open offer. The biopesticides developer will spend the cash on gaining regulatory approval and registration for its products, as well as on further development.
AssetCo (ASTO) had cash of £17.1m at the end of September 2019 and since then a further £11m has been received. There are also bonds of £3.5m. Grant Thornton is appealing the judgement for negligence and the decision of the Court of Appeal should be made in the summer.
Billing Services Group (BILL) has completed the sale of its business and will distribute cash to shareholders by the end of March.
Mereo BioPharma (MPH) says it received positive feedback from the FDA following an end of phase 2 meeting for Setrusumab, a treatment for osteogenesis imperfecta in the young. A phase 3 study programme has been agreed.
STM Group (STM) has confirmed previous expectations for its 2019 figures which will be reported on 24 March. An underlying pre-tax profit of £2.5m is forecast.
Firestone Diamonds (FDI) wants shareholder permission to leave AIM. The general meeting is on 13 March. A weak diamond market and lower recovery levels than expected have made it difficult to finance the debt burden. Leaving AIM will reduce costs and there has been little liquidity anyway.
MAIN MARKET
Packaging supplier Macfarlane (MACF) increased its pre-tax profit by 10% to £12m. The full year dividend was raised by 7% to 2.45p a share. Both distribution and manufacturing made higher profit contributions. This year’s profitability is ahead of 2019, so far.
Personal care products supplier InnovaDerma (IDP) has a lot to do to make its full year forecast. Interim revenues increased from £3.9m to £5.4m and there was a slightly lower loss. There is £ in the bank but that could recover to more than £2m by the end of June 2020.
Chief executive George Bennett has leant $1m to Rainbow Rare Earths (RBW) to fund exploration and operations. He already has a 8.6% stake and there are warrants over 2 million shares exercisable at 4.55p each that have been issued in return for the loan, which does not have an interest charge.
Commercial aircraft leasing company Avation (AVAP) trebled its interim profit to $45.2m, including an unrealised gain of $37m on aircraft purchase rights, and the net asset value was 15% higher at $4.29 a share. This is equivalent to 325p a share. The dividend was raised by 5% to 2.1 US cents a share.
Trading in the shares of Mila Resources (MILA) has been suspended following an agreement to progress with the purchase of E-Tech Metals in a share deal. The transaction is subject to due diligence. The attraction is high grade neodymium and praseodymium mineralisation, which are important rare earths, in the Eureka rare earth project in Namibia.
BATM Advanced Communications (BVC) has won a $4m cyber contract from an existing government customer. This customer has and will generate contracted revenues of more than $18m.
Investment company London Finance and Investment (LFI) increased net assets by 7% to 63p a share at the end of 2019, although it fell to 62.6p a share by the end of January. An increase in the value of the stake in AIM quoted cake maker Finsbury Food (FIF) more than offset declines elsewhere in the six months to December 2019.
Andrew Hore
Andrew Hore Quoted Micro 4 March 2019
NEX EXCHANGE
Proton Partners International (PPI) joined NEX on 28 February and from day one it became one of the largest companies on the market. The introduction price was 225p, valuing the proton beam therapy provider at £334m, and the share price ended the week at 2275p (210p/245p). Woodford-related interests own 41.9% of Proton (www.proton-int.com) and they invested £20m at 200p a share on admission and promised to invest up to £80m at a maximum price of 176p each. Woodford received a further £1m worth of shares at 200p each in consideration for these arrangements. Proton is four years old and it has completed three centres offering proton beam therapy for cancer patients with another planned in Liverpool. Each cancer centre has cost between £35m and £42m. There is also a cancer diagnostics subsidiary. In the eleven months to January 2019, revenues were £1.11m and the loss was £18.6m.
Formation Group (FRM) owns 4.35 million shares in Proton Partners International, which it acquired in March 2018 at 115p each. The 225p a share flotation price means that the value of the 2.85% stake has nearly doubled to £9.78m. At Formation’s AGM, the resolutions to reappoint Grunberg and Co as auditor and for the board to authorise its remuneration were not passed. Michael Kennedy has resigned from the board.
Trading in Dozen Savings (DS01) 5% secured bonds March 2020 commenced on 1 March. So far £91,000 worth have been issued. The plan is to raise up to £7m. The company has been created to offer the bonds to customers of its financial services-focused parent company, Project Imagine (www.projectimagine.com). The bonds cost £100 each and the price at the end of the first day of trading was £107.50 (£90/£125). The FCA has granted Project Imagine an e-money licence and an investment licence.
IFA consolidator AFH Financial (AFHP) says that trading is in line with expectations in the first four months of the year. Past acquisitions are achieving more than 90% of their deferred consideration targets.
Field Systems Designs (FSD) reported a lower profit in the six months to November 2018 because of delays in energy form waste business. Two of these projects have still not been completed. Sales to the water sector have been strong, but they are likely to decline as the latest water regulation AMP6 period. In the six months to November 2018, revenues were flat at £11.8m, but pre-tax profit fell from £168,000 to £46,000.
Sandal (SAND) reported a dip in interim revenues from £1.88m to £1.73m and that led to a swing from profit to loss. EnergieMiHome home automation product sales were lower than expected but the products are being sold in more outlets.
Ace Liberty and Stone (ALSP) has spent £6.17m on two properties that are both let to the Communities and Local Government department, as Jobcentre Plus centres, on leases with an unexpired term of 8.4 years. The property in Bolton cost £2.54m and has a net initial yield of 7%. The Northampton site cost £3.63m and has a net initial yield of 6.75%.
Milamber Ventures (MLVP) says that investee company Essential Learning has been placed in liquidation after problems with historic data led to the company losing its government-funded training contracts. Milamber invested £228,000 in Essential in a two year period and provided services worth £270,000. It also issued £100,000 worth of shares to Essential minority shareholder Goldvista Properties. Goldvista has loaned Milamber £310,000 and this is likely to be converted into shares. Goldvista’s £6,000 loan to Essential has been written off. The shares issued to Gravity Investment Group for a 15% stake in Essential have been cancelled. Milamber is conducting due diligence on apprenticeship training businesses.
Inqo Investments Ltd (INQO) has raised £1m at 90p a share and the cash will be used to invest in healthcare, education and eco-tourism businesses in Africa that are two-to-three years from profitability and have a positive social impact.
Trading in Via Developments (VIA1) debentures has been suspended because the accounts for the year to September 2018 have not been published.
Karoo Energy (KEP) says it intends to move to AIM “as soon as practically possible”. A general meeting has been called for 18 March in order to gain shareholder approval to issue shares at the time of the move.
Altona Energy (ANR) has left AIM and the board intends to visit a vanadium mine in China that could become part of a joint venture. Altona still intends to invest in the Arckaringa coal project in South Australia.
John Eckersley is stepping down as chief executive of Capital for Colleagues (CFCP) in order to focus on his role as managing partner of Castlefield Partners and Alistair Currie will become chief executive.
AIM
Internet of Things products supplier LightwaveRF (LWRF) is raising up to £3m through a placing, subscription and open offer at 8.5p a share. Year-on-year growth in sales in the first quarter was 156% taking the figure to £1.15m.
Churchill China (CHH) and Portmeirion (PMP) have bought the stake in ceramic materials supplier Furlong Mills that was previously owned by Dudson. Churchill has paid £454,000 for 9.5%, which takes its stake to 55.6%. This means that Furlong will be consolidated in Churchill’s figures. In 2017, revenues were £8.6m and pre-tax profit was £500,000. Portmeirion spent £363,000 to take its stake to 44.4%.
President Energy (PPC) is raising up to £6.5m at 8p a share, including a £2.8m debt for equity swap by the chief executive, to invest in its gas infrastructure and accelerate its drilling programme.
Itaconix (ITX) has secured an exclusive global supply agreement with Nouryon for bio-based polymers used in hair care, skin care and cosmetics. This contract comes after a joint development agreement with Nouryon and follows the previous supply agreement for polymers used in detergents. Nouryon will sell the polymers to its own customers in the personal care sector for use in their consumer products.
Audioboom (BOOM) is raising £1.5m at 1.3p a share and this cash will enable the podcast company to make upfront payments for content. Audioboom says that it is on course to achieve higher revenues in 2019 than in the 13 months to December 2018. The success in generating revenues and orders is helping to attract content providers.
Parity (PTY) has won a two-year contract with the Department for Education for the digital transformation of the Funding and Contracting Service, which makes £6bn of payments each year. The deal could be worth up to £4.5m. Matthew Bayfield has taken over as chief executive of Parity from Alan Rommel, who is chief operating officer. Bayfield plans to focus more on the data consultancy activities.
Westmount Energy Ltd (WTE) is nearly doubling its shareholding in JHI Associates Inc to 3% and the investment is 81.8% of Westmount’s gross assets. JHI’s main asset is a 17.5% carried interest in the Canje block, offshore Guyana, which is operated by ExxonMobil. The first well could be drilled by early next year.
Verona Pharma (VRP) used up £18.1m of cash in its operating activities in 2018. There is still £64.5 in the bank. Verona generated positive data for ensifentrine (RPL554) used as a treatment for COPD in a phase IIb clinical trial. The focus is COPD and further trials for cystic fibrosis are unlikely in the short-term. Financial resources will be focused on progressing the nebulised ensifentrine to a phase III study. Verona is likely to seek partners for its dry powder and pressured meter dose inhaler formulations. The results of the part one of the dry powder inhaler clinical trial for COPD could be available before the end of the first quarter. The second phase should then commence with results expected in the second half of the year.
Trading in Herencia Resources (HER) shares has been suspended because it appears that pre-conditions for the financing that has been negotiated are not likely to be met. More cash is required to enable the company to continue trading.
Telematics supplier Quartix (QTX) increased its fleet sales, but insurance business fell and overall revenues profit are set to decline in 2019. In 2018, revenues were £25.7m and pre-tax profit was £8.1m, but that figure is forecast to fall to £6.5m this year.
VietNam Holding Ltd (VNH) has published a prospectus for its move to a premium listing, which should happen on 8 March.
Adamas Finance Asia Ltd (ADAM) has commenced a share buy back scheme for up to $500,000 of shares at a maximum price of 79 cents a share, which is a 25% discount to pro forma NAV. Adamas has separately agreed to buy back 730,529 shares at 10 cents each. The first tranche of 159,847 shares has been issued to China Aerospace for its stake in Hong Kong Mining.
NetScientific (NSCI) says that it will not get the required backing for the resolution to cancel the AIM quotation, so it has adjourned its general meeting. Shareholders owning more than 30% are against the plan.
MyCelx Tech (MYX) has raised $1.83m at 230p a share in order to finance the potential increase in demand for water treatment services.
Telit (TCM) has sold its automotive division for $105m and has received $67.5m in cash, but it has granted the buyer a loan of $38.5m for a six week period because other debt finance was not obtained in time.
MAIN MARKET
Air Partner (AIR) says that its pre-tax profit will be at least £5.8m in the year to January 2019. The charter division was boosted by strong demand for freight and commercial jets. The consulting and training division has won new contracts.
G3 Exploration Ltd (G3E) plans its third demerger in its time as a quoted company. This time shares in Green Dragon Gas, which owns its producing assets, will be distributed to shareholders. Green Dragon Gas will then either be sold or float on the Hong Kong Stock Exchange.
Wealth manager Walker Crips Group (WCW) says that political uncertainty has hit broking commissions and the launch of new products, which means that the 2018-19 results will be lower than for 2017-18. Chief executive Sean Kin Wai Lam has bought 15,000 shares at 28p each.
Laura Ashley (ALY) has rejected the bid approach by Flacks and says that the indicative offer of 2.748p a share fails to provide a fair value for shareholders.
London Finance and Investment Group (LFI) has a 43.8% stake in NEX-quoted Western Selection. In the six months to December 2018, NAV fell from 65.4p a share to 62p a share. The interim dividend is unchanged at 0.55p a share.
BigDish (DISH) has launched a new restaurant bookings website and upgraded its technology. It is also widening its coverage to include Southampton.
Path Investments (PATH) says that the period of exclusivity included in its heads of agreement with ARC Marlborough has been extended to 29 March. The plan is to acquire ARC, which has a nickel and cobalt project in Queensland, via a share issue.
Oil and gas firm Curzon Energy (CZN) has raised £95,000 at 1.58p a share, which is a 21% premium to the market price. The cash will be invested in a gas project in Texas.
Andrew Hore
Andrew Hore Quoted Micro 1 October 2018
NEX EXCHANGE
Brewer Shepherd Neame (SHEP) managed to edge up its profit despite flat turnover of £156.6m in the year to June 2018. Underlying pre-tax profit was 5% ahead at £11.8m. The total dividend is 3% higher at 29.2p a share. Growth came from the managed pubs but there was a decline in the brewing operations because of the loss of the Asahi contract. Own brand volumes were 0.9% lower, but the division improved its profit contribution. Volumes will continue to fall as third party business is further reduced. The current year has started well.
Chapel Down (CDGP) is opening a bar, restaurant and ginnery called the Chapel Down Gin Works in the Kings Cross area. The wines and beers maker reported a 15% rise in interim revenues to £5.72m. The majority of the growth in revenues came from the wine business and demand continues to exceed supply. The overall loss rose because of the much higher loss from the brewing business. Group profit is second half weighted.
V22 (V22) slipped into loss in the first half of 2018 as the NAV declined from 3.94p a share to 3.88p a share. If the art portfolio is revalued the NAV has increased from 7.47p a share to 8.29p a share.
Coinsilium Group Ltd (COIN) generated revenues of £1.33m in the six months to June 2018. There was a reported pre-tax profit of £554,000, after an impairment charge of £216,000. There was £65,000 of cash generated in the period. The blockchain consultancy and investment company obtained most of its revenues from token sales advisory business.
KR1 (KR1) made a loss of £7.36m in the six months to June 2018. That loss was due to unrealised losses on the carrying value of digital currencies and other investments because of the decline in prices during the period.
Property investor Ace Liberty and Stone (ALSP) increased its annul revenues by one-third to £3.52m, but pre-tax profit declined from £1.12m to £214,000. That was due to a lack of disposal gains and higher interest costs. Ace has acquired the Mecca Bingo Hall in Chesterfield for £3.999m and this generates an annual rent of £301,000.
A €5.34m gain on the acquisition of an investment property helped Black Sea Property (BSP) swing from a loss to a pre-tax profit of €5.11m. The NAV increased from 0.76 cents a share to 1.16 cents a share.
Health staff provider Healthperm Resources Ltd (HPR) nearly trebled its interim revenues to £297,000 as the number of candidates deployed jumped from 50 to 144. There are 158 people enrolled in the Middle East language training centre.
BWA (BWAP) continues to seek a reverse takeover candidate and its two investments are making progress. Prepaid cards provider Prepaid Global Services is making slower than expected progress but continues to plan to gain a quotation. BWA has applied for licences in Cameroon on behalf of investee company Mineralfields. BWA had £76,000 in the bank at the end of April 2018, while shareholder funds increased from £570,000 to £764,000.
Forbes Ventures (FOR) has appointed Igor Zjali as chief investment officer and Kirk Kashefi as a non-executive director. Nigel Quinton becomes permanent finance director. The £100,000 loan from Quanta Capital has been converted into 100 million shares. There was £56,000 in the bank at the end of June 2018. Investee company Civilised Bank has resubmitted its application for authorisation to the Prudential Regulation Authority.
Etaireia Investments (ETIP) engaged Bishop and Sewell to investigate transactions undertaken by former boss Baron Bloom. He failed to report that he received £6,230 of rent due to Etaireia from a tenant of the Ivy Leaf Club property. Bloom is owed outstanding salary and expenses, so no action is being taken by the company. Greg Collier has stepped down as a non-executive director.
Healthcare IT supplier DXS International (DXSP) swung from profit to loss in the year to April 2018, partly due to the interest charge. Revenues dipped from £3.43m to £3.41m. Investment in new products should help to build revenues.
Western Selection (WESP) increased its NAV from 95p to 96p. Improvements in the value of the stakes in Northbridge Industrial Services and Bilby, offset the reduction in the Swallowfield investment valuation. The total dividend has been increased from 2.2p a share to 2.25p a share. The shares are trading at a discount to NAV of around one-third.
Crossword Cybersecurity (CCS) increased its interim revenues by 37% to £544,000 and the loss was reduced from £1.24m to £824,000. There was £1.75m in the bank at the end of June 2018.
The NAV of EPE Special Opportunities (EL.P) fell by 19% to 190.2p a share over the six months to July 2018, due to a halving of the value of the investment in Luceco, where, in August, EPE invested a further £2m.
Wishbone Gold (WSBN) reported flat interim revenues of $3.91m, but the loss increased from $331,000 to $527,000. The revenues were generated from Thailand and Africa. The Honduras operation has been delayed but should be up and running by the end of the year.
Via Developments (VIA1) has raised a further £140,000 from a debenture stock issue.
Interim revenues declined from HK$7.22m to HK$5.27m at MiLOC Group Ltd (ML.P) and there was a significantly higher loss of HK$24.8m. The cash position was HK$7.65m at the end of June 2018. The traditional Chinese medicines supplier was hit by lower wholesale orders. Discussions continue with additional distributors.
AIM
Parasite control products developer TyraTech Inc (TYRU) has signed a conditional merger agreement with American Vanguard Corporation, which involves an offer to the other TyraTech shareholders of 3.15p a share. TyraTech needs cash to grow and 34.4% shareholder American Vanguard is in a stronger position to obtain the finance. TyraTech had cash of $3.7m at the end of June 2018.
Northbridge Industrial Services (NBI) is still losing money but the electrical and oil and gas tools markets are showing signs of improvement. A full year loss of £2m is still expected but the group could reach breakeven next year. Northbridge has the cash to invest in additional rental equipment.
Rose Petroleum (ROSE) reported a lower interim loss and it had net cash of $2m at the end of June 2018. Drilling of the first well on the company’s Paradox Basin acreage in Utah should start before the end of the year. A recent report suggested that there could be 13mmboe of 2C resource. There has been successful exploration in the area and it already has the appropriate infrastructure. If the appraisal well is a success that should provide a strong background for a further fundraising.
Keystone Law (KEYS) grew interim revenues by 30% to £19.9m thanks to strong recruitment of new lawyers. This progress means that Keystone is on target to improve full year pre-tax profit from £2.9m to £4.4m and a total dividend of 7.5p a share is expected.
NWF (NWF) says the warm summer has hit demand for heating oil and there has been increased competition in fuels. There has been increased demand for feed and the food distribution business is trading in line with expectations.
Health monitoring equipment supplier Deltex Medical (DEMG) is adapting its strategy in order to grow revenues and generate cash from existing customers. Costs are also being reduced. Probe revenues fell in the first half of 2018 due to delayed orders in the US and France. Overall, interim revenues fell from £2.88m to £2.33m, but the operating loss was only slightly higher at £1.14m. There is just over £1m in the bank.
Fishing Republic (FISH) has appointed Daniel Quinn as chief executive. He has previously worked at Go Outdoors and Tesco. That could point to a broadening of the range of products that will be sold by the fishing tackle retailer. Interim revenues fell from £4.1m to £3.4m, while the loss was £2.5m, which includes stock write downs and other one-off costs. Five outlets have been closed.
Trinity Exploration (TRIN) increased its oil and gas production in the first half and also achieved higher prices. The Trinidad-focused oil and gas producer increased interim revenues by 49% to $30.1m and generated $5m of cash from operating activities. There was net cash of $19m at the end of June 2018.
Gama Aviation (GMAA) increased interim revenues by 3% to $104.6m, with a lower contribution from the ground maintenance activities offset by higher revenues from the air services operations. A better second half should enable Gama to increase its full year pre-tax profit from $17.1m to $19.9m.
Oil and gas producer and explorer Cabot Energy (CAB) increased its interim revenues from $1.8m to $7.5m thanks to higher production in Canada, where Cabot took full control earlier this year. Even so, there was still a $4.2m first half loss, mainly due to exceptional costs, following the installing of a new management team. Management is in talks with potential farm-in partners for some of its Italian assets. That would enable Cabot to focus its investment in Canada. There was $6.2m in the bank at the end of June 2018, although some of that cash could be needed to complete the purchase of an Italian producing asset.
Immupharma (IMM) had £9m in the bank at the end of June 2018. The group is collaborating with Icanthera, which will in-licence the Nucant cancer programme, which has completed two phase 1 trials. Immupharma is also seeking to divest its subsidiary Ureka, while retaining an interest in the potential of the operations. Even though the results of the Lupuzor phase III trial were disappointing, a deal has been signed for Lupuzor to be provided via a Managed Access Programme. An open label extension study for Lupuzor will report by next summer.
Park Group (PKG) says that it has grown its cash balances and both the consumer and corporate businesses are trading well. Park is on course for a full year profit of £13.6m.
Active Energy (AEG) reported a higher interim loss. This was a period when $1.32m was spent on the development of the CoalSwitch plant. Along with its partner, Active has submitted an EU grant application for the SuperFuel coal slurry recovery technology and a decision should be made before the end of the year. There is also optimism about gaining a Crown Timber Licence for Newfoundland and Labrador.
Destiny Pharma (DEST) still has cash of £15.1m even though costs were increased in the first half. Investment in trials means that cash could fall to £10m by the end of the year. The phase I safety study for the use of XF-73 to prevent surgical infections should be completed by the end of this year and a phase IIb trial could commence early next year. A second formulation of XF-73 is being developed for dermal infections and diabetic foot ulcers in particular.
Midatech Pharma (MTPH) plans to sell its US subsidiary, which it acquired in 2015 when it gained its Nasdaq listing. Midatech will receive an initial $13m for the cancer care products supplier. The cash will be used for the research and development operations and paying off the loan from MidCap.
Bosch has invested £9m in fuel cell technology developer Ceres Power Holdings (CWR) in return for a 4.4% stake. Weichai Power will invest a further £1m to maintain its 10% stake.
There was a 17% fall in gold processed by Goldplat (GDP) in the year to June 2018, but sales only dipped from 40,285 ounces to 39,400 ounces. Revenues increased by 7% to £33.8m. The Kilimapesa gold mine continues to disappoint and lose money. A lower contribution from the Ghana processing operations and a bad debt were the main reasons behind the fall in pre-tax profit from £2.84m to £1.79m. Goldplat is seeking other mine investments, not necessarily in Africa. There was £1.54m in the bank.
Veltyco (VLTY) has managed to reduce its receivables but the were still €12.6m at the end of June 2018. Revenues for the previous six months were €8.9m. Net cash was €1m. Veltyco will launch its own financial trading brand in the fourth quarter.
Stride Gaming (STR) continues to be hit by the stagnation of the online bingo market but the decline in pre-tax profit is set to be in line with expectations. In the year to August 2019, pre-tax profit is expected to fall further from £14.2m to £13.8m. There will be a £4m provision for the recent fine from the UK gambling authorities.
Strategic Minerals (SML) reported a jump in interim pre-tax profit from $158,000 to $2.69m, but this did not come through in cash during the period. That is because £2.46m of the profit came from a gain based on the payment for the Leigh Creek copper mine below its asset value.
MAIN MARKET
Hemogenyx Pharma (HEMO) is moving towards the point where it can submit an IND application to the FDA for CDX antibodies. There is initial data that CDX antibodies can attack and eliminate Acute Myelogenous Leukemia in vitro. Hemogenyx already has an agreement with a global pharma company for this technology. Northland has been appointed as broker.
World Trade Systems (WTS) reported a drop in interim revenues from £10.1m to £6.3m and it has fallen into loss. Trading has been tough for the health food subsidiary. This is set to continue. Trading in the shares has been suspended for more than a decade and the board says that is working towards a resumption of trading on the premium segment of the Main Market.
WideCells Group (WDC) has gained financing of up to £2.7m from the European High Growth Opportunities Securitization Fund. The facility is convertible into shares and has warrants attached. The cash will be invested in the stem cell storage and insurance operations. The BabyCells stem cell storage service has been launched. Group revenues remain modest and WideCells made an interim loss of more than £2m. There was £1.73m in the bank at the end of June, offset by debt of £1.17m.
Investment company London Financial and Investment Group (LFI) has maintained its NAV at 65.4p a share, despite a decline in value of its stake in Finsbury Food (FIF), and the total dividend has been edged up to 1.15p a share. The share price is 42.5p.
Standard list shell Blockchain Worldwide (BLOC) still had £1.4m in the bank at the end of June 2018 following its decision to change its strategy from telecoms to blockchain acquisitions. Management is analysing potential acquisitions.
Andrew Hore