Home » Posts tagged 'lst'
Tag Archives: lst
Quoted Micro 25 March 2024
AQUIS STOCK EXCHANGE
S-Ventures (SVEN) has agreed to sell its food and snacks business in return for shares in AIM-quoted RiverFort Global Opportunities worth £3.5m. That would leave S-Ventures as an investment company with shares in the acquirer. Sales for the 12 months to September 2023 were £17.4m, rising to the £21.6m in the 15 months to the end of 2023. Net debt was £7.1m at the end of September 2023. An additional £3m of loans have been agreed, including £1m from RiverFort Global Opportunities.
Marula Mining (MARU) has signed a long-term offtake agreement with Fujax UK for the Blesberg lithium and tantalum mine in South Africa. This an agreement for 100% of production until the end of 2026, with a minimum of 50,000 tonnes at a grade of 6% lithium. There is an option for a further three years. A mining right has been received from the authorities for the plans to expand the stockpile reprocessing operations.
Brewer Shepherd Neame (SHEP) improved like-for-like retail sales by 6.2%, although beer volumes fell 10.5% with own beer volumes down 16.7%. Overall, interim revenues grew 4% to £89m and underlying pre-tax profit was 10% ahead at £3.8m. The brewing division returned to profit. The interim dividend was 5% ahead at 4.2p/share. Beer volumes continue to decline, while the retail sales growth rate has slowed.
Gunsynd (GUN) shares rose 17.9% to 0.165p on the back of an institutional investor investing $1m ($750,000 in cash and $250,000 in support services) in the US spirits subsidiary of Rogue Baron (SHNJ), where it currently has a 17.45% stake. Rogue Baron has also raised £20,000 at 0.5p/share.
Aquis Stock Exchange owner Aquis Exchange (AQX) increased revenues from £19.9m to £23.7m, while pre-tax profit rose from £4.5m to £5.2m. The Aquis Stock Exchange revenues improved from £1.6m to £1.8m. The main growth came from technologies and data. Panmure Gordon forecasts 2024 pre-tax profit of £6.2m.
Macaulay Capital (MCAP) reported a fall in net assets from £1.44m to £1.36m at the end of 2023. There was an exit from the investment in Qualification Check which reduced the reported loss. There are seven portfolio companies. There is a pipeline of potential transactions.
Cadence Minerals (KDNC) says that the capital spending optimisation programme has been completed at the Amapa iron ore project. Savings of $63.2m have been identified and production could be 5% higher at 5.5 Mtpa of iron ore concentrate.
Supernova Digital Assets (SOL) has completed the acquisition of Hyperslot PTE for £225,000 in shares at 0.15p each. Andrew Offit increased his shareholding from 14.1% to 15.2%.
Arsen Torosian has replaced David Carr as chief executive of Tap Global Group (TAP). He is the largest shareholder and was previously chief strategy director. Steven Borg will become finance director.
KR1 (KR1) has invested $600,000 in Moondance Labs, which is building Tanssi, which helps appchain deployment.
Substrate Artificial Intelligence (SAI) has signed up FINRA-registered California-based bank GT Securities to identify potential partners for its Subgen AI subsidiary, which has launched Serenity Star, an ecosystem for scaling generative AI. The company has raised Euro500,000 from a convertible bond issue.
Secured Property Developments (SPD) is changing its name to Mollyroe and it is adopting s new investment strategy focused on the technology sector. There will also be a 20-for-one share consolidation.
Steve Hutchinson has taken his Oscillate (MUSH) stake above 3%. TruSpine Technologies (TSP) chairman Geoffrey Miller has increased his shareholding to 7.24%, while Oberon Investments raised its stake to 12.6%.
Good Life Plus (GDLF) has appointed Tennyson Securities as corporate broker.
AIM
Capital equipment manufacturer Mpac (MPAC) had a stronger second half and revenues improved from £98m to £114m, while pre-tax profit recovered from £3.5m to £7.1m. There was growth in parts and services revenues. The order book was worth £72.5m at the end of the year. The customer base is being broadened. There should be further recovery this year.
Educational software and services provider Tribal Group (TRB) is still hampered by its dispute with NTU, which is currently in mediation. The failed bid for the company also held back sales to potential clients. Even so, annualised recurring revenues grew 13% to £15.1m. Full year revenues moved from £83.6m to £85.8m, while pre-tax profit recovered from £3.7m to £10.7m.
Roadside Real Estate (ROAD) shares soared 129% to 8p after it sold part of its stake in Cambridge Sleep Sciences to CGV Ventures 1 for £6m. The total stake cost £2.7m and Roadside Real Estate still owns 65%, having sold a 10% stake, so it still has to be consolidated. Management is considering selling the rest or demerging the company so that it can concentrate on its core property interests.
Digital media company XLMedia (XLM) is selling European and Canadian gaming assets to Gambling.com for an initial $37.5m with potential deferred consideration of $5m. Some of this cash may be paid out to shareholders. These assets generated 2023 revenues $21.4m and underlying EBITDA of $6.6m out of estimated group 2023 revenues of $50m and EBITDA of $12m. Pro forma net cash is likely to be around $35m, after taking account of deferred consideration of $4m payable for past acquisitions. Cavendish estimates that XL Media is worth £48m, including the cash.
Biodegradable and antimicrobial plastic additives developer Symphony Environmental Technologies (SYM) has raised £1.4m at 3.5p/share and will raise up to £500,000 more through a PrimaryBid retail offer. The issue price was well above the market price. Chief executive Michael Laurier is subscribing £105,000. Net debt was £740,000 at the end of February. The additional cash will fund the scale-up of the business and provide working capital during trials by potential customers.
Blue Star Capital (BLU) reported a slump in NAV from £11.4m to £5.33m at the end of 2023. That includes cash of £63,000. Writing down the valuations of Dynasty Media & Gaming and Sthaler were a large part of the decline in NAV. Another investee company, SatoshiPay, is undertaking a formal sales process. This stake is valued at £4.65m.
Live Company Group (LVCG) returned from suspension following the announcement of a planned refinancing and sale of majority interest in StartArt. Creditors are being settled in shares and a £1.77m convertible loan provided by the chairman, as well as converting some of his loan notes. A placing raised £352,000 at 1p/share. There could be more cash to come from strategic investors.
Digital payments business Boku (BOKU) increased 2023 revenues by 30% to $82.7m and they are expected to increase to $95m this year. The wallets business grew 153%, albeit from a lower base. The local payments network is being built up and will be a major factor in growth, especially as margins are better. The direct carrier billings business continues to grow and remains the main generator revenues for the time being. The company has more than $70m in cash.
Employee benefits and insurance provider Personal Group Holdings (PGH) reported slightly better 2023 figures than expected with revenues of £49.7m and pre-tax profit recovering to £5.9m. The dividend was raised from 10.6p/share to 11.7p/share. That is well covered by cash generation. Cash was £20.1m at the end of 2023. The insurance business did particularly well.
Three rail clients delaying orders has hit prospects for LPA Group (LPA) and it is unlikely to do any better than breakeven this year – a pre-tax profit of £800,000 was previously forecast on a 6% reduction in forecast revenues.
Light Science Technologies (LST) has received a grant worth £188,000 for a project involving the company’s SensorGROW technology.
Saturn Resources has increased its bid for Shanta Gold (SHG) to 14.85p/share, up from 13.5p/share, valuing the miner at £156.1m. Eligible shareholders will receive a dividend of 0.15p/share on 26 April.
Stem cell-based treatments developer ReNeuron (RENE) has failed to come to an agreement with creditors and the financial uncertain means that it has appointed administrators from Cork Gully. Negotiations continue with creditors and potential providers of finance.
MAIN MARKET
Higher losses from the ReZorce recyclable packaging business masked progress at foams manufacturer Zotefoams (ZTF), where pre-tax profit moved up from £12.5m to £13.1m on flat revenues. That included an operating loss of £4.36m, up from £1.89m, from the MuCell Extrusion division that includes ReZorce. The total dividend is 7.18p/share.
Property investor Town Centre Securities (LSE: TOWN) managed to edge up its net tangible asset value to 286p/share at the end of 2023, due to the 150p/share tender offer last year. There was a 4% decline in property values. Loan to value has risen to 50.3%. The interim dividend is maintained at 2.5p/share.
TheWorks.co.uk (WRKS) is moving from the Main Market to AIM. The plan is to gain shareholder approval to move on 3 May. This should help to reduce costs.
Esken Ltd (ESKN) has appointed administrators from AlixPartners because its restructuring plan was no longer commercially viable. The restructuring of London Southend Airport will continue.
First Tin (1SN) says regional exploration confirmed upside potential at Pound Flat and Battery Hill prospects in the Taronga tin project.
Andrew Hore
Quoted Micro 11 March 2024
AQUIS STOCK EXCHANGE
Luxury prize draw operator Good Life Plus (GDLF) raised £2.03m via a subscription at 2.25p/share, which is a premium to the market price of 1.875p. The subscriber is Winforton Investments, which is associated with Sportingbet founder Mark Blandford, which will have a 17.9% stake. The cash will be spent on marketing to accelerate growth and subscription numbers. Options have been granted to management at the subscription price. The reverse takeover of Semper Fortis Esports was done at 2p/share.
Cadence Minerals (KDNC) says the capital expenditure requirements for Amapa iron project have been reduced. Project financing talks continue with parties interested in taking a stake in the project. Cadence Minerals has invested $12.1m in Amapa and owns 32.6% of the project. The stake in Hastings Technology Metals has been sold. Cadence Minerals expects to leave the Aquis Stock Exchange on 5 April.
Food company Essentially Group (ESSN) is acquiring Best of Latin Foodstuff Trading for £1.95m. The company sources food from growers in Latin America and supplies hotels and restaurants in the UAE, where Essentially Group already supplies juices and other drinks. The deal will triple the revenues of Essentially Group. The former owner Catalina Onate will become an executive director of Essentially Group.
RentGuarantor Holdings (RGG) has raised £430,000 at 274p/share. The cash will finance the hiring of additional staff. Chief executive Paul Foy is converting £250,000 of convertible loan notes at 210p/share. He still has £250,000 of convertible loan notes.
Investment Evolution (IEC) is expanding into Spain, and it will grant subsidiary MRAL Spain non-exclusive recurring rights to the Mr Amazing Loans brand. Spanish company Investment Evolution Credit, not part of the group, will provide lending technology for a 49% stake in MRAL Spain.
Coinsilium Group Ltd (COIN) has raised £472,500 at 2.5p/share with executive directors subscribing £40,000. There have also been creditor payments of £83,900 in shares. Each new share comes with a warrant exercisable at 3.75p/share. The cash will be invested in Web3 and AI technology and provide working capital.
Marula Mining (MARU) has added to its team in Kenya. Gilbert Kibet is project geologist and Joy Chebet will be graduate geologist. Exploration work will commence on the Larisoro manganese mine in northern Kenya.
Flex Labs (FLEX) says Supernova Digital Assets (SOL), which is associated with its executive chairman, has sold 1.24 million shares and raised £81,425. These sales were between December and February. Supernova Digital Assets plans to return cash to shareholders via a tender offer after Phoenix Digital Assets (PNIX), in which it owns 30 million shares, completes its tender offer. There will have to be a capital reorganisation to enable the tender offer to happen and £242,000 has been raised at 0.1p/share for working capital while the capital changes are arranged.
Kasei Holdings has changed its name to Kasei Digital Assets (KASH). Non-executive director Bryan Coyne bought 75,000 shares at 9.75p each. Gunsynd (GUN) executive director Donald Strang bought three million shares at 0.148p/share.
AIM
Wealth management company Mattioli Woods (MTW) is recommending an 804p/share bid from a company owned by Pollen Street Capital. That values Mattioli Woods at £432m and shareholders will still receive the interim dividend of 9p/share. The 2203-24 prospective multiple at the bid price is less than 17, falling below 15 the following year. When it joined AIM in November 2015 at 132p/share Mattioli Woods was valued at £22.5m.
Challenger Energy (CEG) has secured a farm out deal for the OFF-1 exploration asset, offshore Uruguay with Chevron. Challenger Energy will retain a 40% interest. The oil and gas explorer will receive a cash payment of $12.5m on completion, plus a carry of up to $15m on 3D seismic and 50% of the cost of an exploration well up to a $20m share. However, a well could cost between $50m and $100m according to Zeus, so Challenger Energy could still have to make a cash contribution. Regulatory approvals will take months.
A large diagnostics company has made a bid approach to kidney disease diagnostics developer, Renalytix (RENX). This has sparked a formal sale process, so that the company can assess whether there are other potential bidders. It is also possible that there could be a decision to stay independent. Funding options are being reviewed. Costs have been reduced, but there is currently cash and securities of $3.7m and the cash outflows remain significant so this will only last until the end of April. A share issue and/or debt financing will be required.
Empire Metals (EEE) says study results for the Pitfield project in Western Australia show favourable mineralogy and metallurgy in the high-grade titanium samples. This should simplify processing. Around two-thirds of the contained titanium is titanite, which can be processed at low temperatures. The overall end product would be ideal for a titanium dioxide pigment producer.
Kinovo (KINO) estimates that the costs of the guarantees to complete work on projects taken on by ex-subsidiary DCB will be £2.9m higher than previously expected. Cash flow from the continuing operations will help to fund this but Kinovo will move into net debt by the end of March. This will not affect the pre-exceptional pre-tax profit forecast of £5.8m, up from £4.9m.
LungLife AI (LLAI) raised £1.8m at 35p/share. The lung cancer diagnostics developer is starting the commercialisation process for its diagnostic technology. The cash will fund the evidence generating activities, including an early access programme and clinical utility studies. There should be enough cash until April 2025.
Controlled environment agriculture technology developer Light Science Technologies (LST) has appointed former ITM Power (ITM) boss Dr Graham Cooley as non-executive chairman. He bought a 7.5% stake last year and has been awarded 6.66 million options exercisable at 5p each. Richard Mills, who is boss of the growing systems division of Haygrove and has helped to develop global partnerships, has also joined the board. Myles Halley and Robert Naylor have stepped down. The company has been broadening its activities into fire protection.
Performance nutrition products provider Science in Sport (SIS) is focusing on improving margins rather than growing revenues. This strategy change was in the fourth quarter of 2023, so there was not much time to affect trading. In 2023, revenue dipped from £63.8m to £62.8m due to lower online sales. The Science in Sport brand grew sales by 17%. Liberum trimmed its 2023 revenues estimate, but it also reduced the forecast loss to £4.8m. The 2024 forecast revenues have been cut, but the loss is still forecast to be £3.1m with a move to breakeven in 2025.
Duke Capital (DUKE) has exited another investment with a total return on invested capital of 2.1 times. Street lighting columns manufacturer Fabrikat has been acquired by Metalogalva. Duke Capital has already received £2.7m from Fabrikat and will receive a further £10m after the takeover. There is potential performance-related deferred consideration.
Netcall (NET) continues to build its annual contract values and they have reached £30m. Recurring revenues were three-quarters of the interim revenues. There is rapid growth in cloud business and the cash in the balance sheet enables consistent investment in research and development. Full year pre-tax profit will edge up to £6.7m.
Nexus Infrastructure (NEXS) has focused on its Tamdown civil engineering business and the remaining cash from disposals has come in handy in a tough time for the housebuilding sector. Revenues fell from £98.4m to £88.7m. There is still £14.6m in cash. The final dividend is 2p/share. The order book is recovering and was £57.2m at the end of January 2024. There should be a recovery in the housebuilding sector over the next year, but the timing is uncertain.
Strategic Minerals (SML) sold 4,898 tons from the Cobre magnetite stockpile during February. That is the highest monthly figure since March 2021. Quarterly sales should be around 13,000 tons and annual revenues from Cobre should be around $3.5m.
Floor levelling equipment supplier Somero Enterprises (SOM) reported a 10% dip in revenues to $120.7m because of the weak North American market. Europe and Australia performed better. Pre-tax profit fell from $42.3m to $34.5m and the dividend was reduced from 35.5p/share to 30.6p/share. This year’s revenues are likely to be flat, but additional investment in a new facility in Belgium means that there will be a further decline in pre-tax profit.
Saietta Group (SED) has appointed administrators and following the resignation of Canaccord Genuity as nominated adviser the AIM quotation will be cancelled at the beginning of April. The electric drivetrain technology developer company has failed to secure additional cash and although there is interest in the business no firm buyer has been found.
MAIN MARKET
Ground engineering and piling business Keller (KLR) reported flat revenues of £2.97bn, but operating profit was two-thirds higher at £180.9m – £150m was expected before the recent trading statement. Pre-tax profit jumped from £93.5m to £153.4m. Net debt was one-third lower at £146.2m. The dividend is one-fifth ahead at 45.2p/share. Non-core businesses are being exited. The year-end order book was worth £1.5bn.
Standard list shell Spiritus Mundi (SPMU) has entered into heads of terms for the purchase of InReste, which has developed clinical diagnostic tests and operates a laboratory in Singapore. Spiritus Mundi chairman Zaccheus Peh is the controlling shareholder of InReste and will be the controlling shareholder of the holding company after the acquisition.
IT services provider Triad Group (TRD) is winning new business and it returned to profit in November. There will be initial costs of contracts in the fourth quarter. That means that there will be a greater benefit in the first quarter of the next financial year.
Andrew Hore
Quoted Micro 15 January 2024
AQUIS STOCK EXCHANGE
Electric motors and drivetrains developer Equipmake Holdings (EQIP) has won an extension of its contract from sightseeing tours operator Big Bus Tours, and it has doubled in size to cover 20 buses. The contract is worth £3.5m. The buses will be delivered by the end of the third quarter of 2024. Full year revenues are expected to be £13.4m, although Equipmake will still be loss making. The share price slipped 8.57% to 8p, but it has risen by one-fifth over the past year.
Silverwood Brands (SLWD), whose shares are suspended at 30p. has come to a conditional settlement with the vendors of the 19.8% Lush stake, which was never transferred to the company by Lush. The deal was cancelled. The vendors are paying £300,000 to Silverwood Brands to cover deal costs.
Capital for Colleagues (CFCP) had 14 investments in the quarter to November 2023 and the NAV was £15.1m or 81.67p/share, down from 81.99p/share at the end of August.
Tyndall Investment Management increased its stake in skin treatments developer Incanthera (INC) from 6.85% to 11.8%.
Tony Wilson has increased his stake in Oscillate (MUSH) from 3% to 3.66%, while Rikki Devlin has taken a 3.04% shareholding.
Bitcoin mining company Vinanz Ltd (BTC) says that the SEC in the US has approved Bitcoin ETFs, which will provide investors with a way to access cryptocurrency. This should be positive for Vinanz. David Lenigas has bought 80,000 shares at an average share price of 9.2p.
NFT Investments (NFT) is changing its name to Phoenix Digital Assets. The share price rose 18.5% to 3.2p. NAV is 4.67p/share.
EDX Medical Group (EDX) sent shareholders a letter that stated it is pursuing nine different projects for point of care and laboratory testing services. The reverse takeover of TECC Capital means that there has been selling by legacy shareholders holding back the share price, but it has started to rally rising 17.2% % to 8.5p.
AQRU (AQRU) is changing its name to Supernova Digital Assets and it is focusing on becoming a value provider for the Solara ecosystem. Net assets are 0.297p/share, including crypto assets of 0.166p/share.
Kasei Holdings (KASH) non-exec director Bryan Coyne has acquired 125,000 shares at an average price of 8.14p each.
Valereum (VLRM) says that the general meeting to approve the acquisition of GSX Group will be held on 30 January and there will be a shareholder update meeting the next day. Nick Cowan has joined the board as chief executive, as has former AIM and Plus Markets boss Simon Brickles. Gary Cottle has also joined as a non-exec.
EPE Special Opportunities (EO.P) had net assets of 301.9p/share at the end of 2023.
PanGenomic Health (NARA) has entered into a non-binding letter of intent with Crescita Capital for a $5m drawdown facility. This will last three years and can be used for working capital and acquisitions. The facility involves the issue of shares at a discount to the market price at the time of issue. There will be a $300,000 commitment fee payable in cash or shares.
Tony Wilson has increased his stake in Oscillate (MUSH) from 3% to 3.66%, while Rikki Devlin has taken a 3.04% shareholding.
AIM
The Property Franchise Group (TPFG) has made an agreed bid for rival franchised lettings company Belvoir (BLV). The agreed offer of 0.806377 TPFG shares for each Belvoir share values Belvoir at 277.4p/share based on a TPFG share price of 344p, but it has subsequently fallen to 307.5p valuing Belvoir at 248p/share. TPFG shareholders will own 51.75% of the enlarged group.
Capital equipment supplier Mpac (MPAC) had a strong second half in 2023 and there was a record order intake during the year. Margins improved in the second half and full year pre-tax profit was £6.9m, up from £3.5m in 2022. The higher second half margins should continue in 2024, enabling a further improvement in profit.
NWF (NWF) has signed a 15-year lease on a third food distribution warehouse in Newcastle-under-Lyme. This will add 52,000 pallets to capacity. The site should be open in the autumn after capital expenditure of £8.5m. This site could add £1.2m to pre-tax profit in 2025-26.
Another positive trading statement from payments services provider Cornerstone FS (CSFS) has led to an upgrade of December’s previous upgrade. A maiden pre-tax profit of £800,000 on doubled revenues of £9.6m is forecast for 2023. Revenues per customer increased by around two-thirds to more than £10,000. The company moved from net debt to net cash.
AdvancedAdvT (ADVT) switched from the standard list to AIM on 10 January. Last year, five businesses were acquired from Capita and one of these is being sold. The remaining companies operate in business solutions and human capital management.
Online builders’ merchant CMO Group (CMO) had a tough fourth quarter. Online traffic rates declined, but conversion rates improved. Overall orders were flat. Home improvement and DIY spending is declining. The overall repair, maintenance and improvement sector is still relatively strong, but it weakened in the second half of 2023. Market share has grown, and costs have been cut. Liberum has increased its 2023 pre-tax loss forecast from £800,000 to £1.2m and forecasts a 2024 loss.
Consultancy Elixirr International (ELIX) confirmed 2023 results are in line with expectations and it will pay two dividends each year. Pre-tax profit is expected to improve from £19.3m to £23.9m. The shares will go ex-dividend for the 5.3p/share interim on 19 January.
Plant monitoring technology developer Light Science Technologies (LST) published a positive 2023 trading statement. Cost savings have helped to halve the pre-tax loss of £1.3m on revenues rising from £8.2m to £9.3m. Contract electronic manufacturing remains the largest sales contributor, although controlled environment agriculture products are growing in importance.
Touch sensors manufacturer Zytronic (ZYT) reports a 30% decline in full year revenues to £8.6m and it fell back into loss. Gross margins were hit by higher raw material costs and product mix. Sales continue to decline this year. There are signs that there could be improvement in the second half. Net cash is £4.7m.
Palm oil producer Dekel Agri-Vision (DKL) says 2023 revenues were at record levels, but there are problems with ramping up the cashew operation. Investment is required to replace parts of the machinery used in cashew production. Production should improve in the second quarter. The 2024 pre-tax profit forecast has been cut from €1.5m to €600,000.
Mercantile Ports and Logistics (MPL) says some trading activity was deferred last December. Cavendish reduced its 2023 revenues forecast from £6.9m to £5.4m. Coal import to the Karanja port were lower because of destocking. The loss will be higher. Management hopes to replace the current debt facilities with a new facility with lower interest charges. Buying by directors did not help the share price. Non-exec John Fitzgerald acquired 624,419 shares at 1.5725p each and Dmitri Tsvetkov bought 617,360 shares at 1.62p each.
Oriole Resources (ORR) has confirmed receipt of the payment of $450,000 related to the earn-in agreement with BCM International for the Bibemi gold exploration project in Cameroon. BCM will spend $4m on exploration to earn 50% of the project. Drilling should resume in the first quarter.
Semiconductors designer EnSilica (ENSI) has released a range of Post-Quantum Cryptography accelerators. These are cryptographic algorithms that can withstand cyber-attacks from quantum computers.
MAIN MARKET
Tertre Rouge Assets (TRA) has entered into a purchase agreement for a 1972 Lamborghini Miura P400 SV for £2.8m, which means that there are purchase agreements for six cars valued at £32m. Formal marketing of a fundraising has commenced, and the issue price should be 105p. Approval of the prospectus by the FCA is still awaited.
Kelso Group Holdings (KLSO) plans to raise up to £1.88m at 3p/share. The cash will be used for further investments in UK listed companies. Previous fundraisings were at 2p/share and 2.5p/share.
Standard list shell Sivota (SIV) has identified a potential acquisition that operates a technology platform in the travel sector, subject to due diligence and other conditions. The plan is to acquire up to 51% of the company for $15m. Sivota will raise £2.5m to provide the target with a convertible loan for working capital.
Quantum dots developer Nanoco (NANO) has signed a joint development agreement with STMicroelectronics. This two-year programme will optimise a second generation sensing material. This will boost non-licence fee income in 2024 and sales of test materials in 2024 and 2025.
Andrew Hore
Quoted Micro 27 November 2023
AQUIS STOCK EXCHANGE
Guanajuato Silver (GSVR) produced 787,086 ounces of silver equivalent and the loss fell by one-fifth to $7m when compared with the second quarter. The all-in sustaining cost increased to $26.22/ounce due to changes in mining and temporary closures.
SuperSeed Capital (WWW) generated 78% IRR combined from two exits. There were £220,000 of realised gains in the nine months to September 2023. There is £430,000 of cash on the balance sheet. NAV is 112p/share.
Vinanz Ltd (BTC) has teamed up with Luxor Technology Corp to improve its bitcoin mining operating efficiency. Luxor’s firmware improves mining margins when profitability is low and can increase a machine’s hashrate when profitability is higher.
Wishbone Gold (WSBN) has secured an option to acquire 100% of the Crescent East lithium and gold project in the Mosquito Creek area of Western Australia. Shares were issued at 1.25p each to pay the £25,000 option fee.
Fuel additives developer SulNOx Group (SNOX) has successfully demonstrated the effectiveness of drop-in fuel conditioner SulNOxEco in the shipping sector. Monaco-based dry-bulk ship management company Marfin Management trialled the additive onboard a 60,000 MT DWT bulk carrier over a three-month period. This showed improvements in fuel consumption.
Cadence Minerals (KDNC) says investee company Hastings Technology Metals has agreed a $50m equity funding facility for the Yangibana rare earths project. Hastings Technology Metals can draw down up to $50m from Alpha Investment Partners to provide working capital for the development of the mine. Project financing talks are progressing and there have been offers from potential partners and debt providers. Cadence Minerals has a 1.4% stake in the investee company.
Steve Xerri, who owns 4.81%, has been appointed as an executive director of Oscillate (MUSH) and he intends to focus on special situations either through individual investments or via a reverse takeover.
One Health Group (OHG) has gained two new contracts with NHS Trusts. One is to supply orthopaedic services and the other is for orthopaedic and gynaecology services. They will help to reduce waiting lists.
Apollon Formularies (APOL) says Sproutly Canada has completed due diligence on the acquisition of the company’s global cannabis-related assets in return for 49% of the enlarged share capital of Sproutly Canada. The effective valuation is likely to be around £4.2m. Regulatory approvals are required.
Kasei Holdings (KASH) has a digital asset portfolio worth $2.07m at the end of October 2023.
EDX Medical (EDX) has entered into a collaboration with Thermo Fisher Scientific. They will jointly develop and commercialise cancer diagnostics.
Looking Glass Labs (NFTX) has raised $1m at $0.10/unit – one share and one warrant exercisable at $0.10/share. A further ten million units have been swapped for $1m of debt. Further sources of finance are being sought.
Quantum Exponential Group (QBIT) has appointed VSA Capital as corporate adviser, while Pharma C (PCIL) has appointed First Sentinel as its corporate adviser.
Res Privata NV has increased its stake in NFT Investments (NFT) from 3.33% to 4.09%.
AIM
Telecoms enterprise software provider Cerillion (LON:CER) grew strongly last year, while the rate of growth might slow this year it is still likely to make good progress given the recent €12.4m contract win. In the year to September 2023, revenues were one-fifth higher at £39.2m, while underlying pre-tax profit was two-fifths ahead at £16.8m, helped by a reduction in impairment charges from £1.77m to £256,000. The growth has come from software with a dip in services revenues. Net cash reached £24.7m at the end of September 2023. The dividend has been raised from 9.1p/share to 11.3p/share.
Light Science Technologies (LST) is acquiring the Injecta Fire Barrier trade and assets from Fire Barrier International. The Injectaclad product expands when heated and prevents the spread of fire and smoke. There is no initial payment with consideration in the form of a deferred profit share agreement. The deal should be earnings enhancing and generate cash. There are maintenance and installation synergies with the contract electronics subsidiary. The cash generated will help to finance the growth of the group.
Video games developer Team17 Group (TM17) says 2023 trading is slightly better than expected, although some titles are not performing as well as anticipated and that has hit margins. There has also been overspending and delays on some development projects. That means that underlying EBITDA will be around one-sixth lower than forecast at around £40m. Some titles are being reassessed and that is likely to lead to impairment charges of up to £11.5m.
Parity (PTY) announced the sale of its remaining business yesterday afternoon. It will become a cash shell. Parity will receive up to £3m depending on working capital adjustments for recruitment business Parity Professionals. The deal costs will be £240,000. There will be £639,000 including costs spent to settle the pension liability and finance the search for an alternative business. The company will change its name to Partway.
Velocys (VLS) is the worst performer on the day after the sustainable fuels company said that there is a potential bid at 0.25p/share from a consortium including Lightrock and Carbon Direct Capital Management. This would ensure long-term funding of the business. The low share price makes it difficult to finance the sustainable fuels operations. The share price dived 63.7% to 0.25p, which values Velocys at £4.5m. A large multiple of that value needs to be raised to fund development and production. Interim funding will be required.
musicMagpie (MMAG) is in bid talks with BT Group (BT.A) and asset manager Aurelius. The talks are at an early stage.
Cyber software and services provider Shearwater Group (SWG) appears set to return to profit this year. The core software businesses have been integrated, as have two of the three consultancy businesses. In the six months to September 2023, revenues dipped from £10.8m to £10.5m. That was due to much lower software revenues. Even so, gross profit improved and, stripping out amortisation and exceptionals, the underlying loss reduced £493,000 to £93,000. That is before restructuring costs. The cost savings will show through in the second half.
Telecoms testing instrumentation supplier Calnex Solutions (CLX) has been hit by a reduction in spending by telecoms companies. In the six months to September 2023, revenues slumped from £12.7m to £7.8m and the company moved from a pre-tax profit of £3.1m to a loss of £600,000. Trading did not pick up in September as is normally the case. Non-telecoms revenues make up one-quarter of total revenues. The cost base is being kept steady in expectation of a recovery, even though that may not be until the next financial year. There is £13.5m in the bank.
There were no revenues from systems in the first half at SRT Marine Systems (SRT), but that will change in the second half when transceivers revenues will be well below the systems contribution as work on contracts reaches points where revenues can be invoiced and recognised. Interim revenues fell from £18.8m to £5.5m, although transceivers revenues were higher. Last year’s loss could be turned into a £7.2m profit this year.
Battery technology developer Ilika (IKA) has achieved its D4 development point for the Goliath battery. This is the start of turning the development into a battery product. Ilika will be able to create P1 samples for testing by customers. At the end of the week, Ilika confirmed that its interims will be in line with expectations with revenues of £1.3m and there is £13.2m in cash left.
Neometals (NMT) has completed the A$9m from a placing at 10p/share and wants to raise a further £6.8m from a one-for-eight entitlement offer. The cash will fund the development of the nickel, cobalt, lithium recycling business Primobius, including the delivery of a facility to Mercedes Benz, and potentially to purchase a stake in Canadian licensee Stelco.
Empire Metals (EEE) has released initial results for the first diamond drillhole at the Pitfield project in Western Australia. This shows significant grades of titanium oxide. There will be results from two more diamond drilling holes in the coming weeks. A further 6,000 metres of drilling is planned with more likely early next year. Copper is still potentially in the area as well.
Interim figures from diagnostics company Cambridge Nutritional Sciences (CNSL) showed the benefits of concentrating on its core personalised health and nutrition business. Revenues rose 44% to £4.9m and the loss was reduced. Production problems have been sorted out. There was strong growth in North America as management puts more resources into the region. A small full year loss is expected.
Lifestyle concierge services provider Ten Lifestyle (TENG) has moved into profit for the first time. It swung from a loss of £2.7m to a pre-tax profit of £3.2m thanks to economies of scale. There was also a tax credit recognised due to past tax losses. Investment in its digital platform and the international spread of business is helping Ten Lifestyle. New contract wins will help to increase this year’s pre-tax profit to £3.9m, according to Singer.
Gold explorer Oriole Resources (ORR) has announced heads of terms with contractor BCM International for the development of the Bibemi and Mbe gold projects in Ghana. BCM can earn up to 50% of the Bibemi project by making a cash payment of $500,000 and commit to spend $4m on the project. BCM will pay $1m in cash and spend a further $4m to earn a 50% stake in Mbe project.
Mercia Asset Management (MERC) has exited one of its older investments, raising £30.2m – a 2.7 times return on invested capital. Virtual reality games developer nDreams has been acquired by Aonic for £90.3m. This was Merica Asset Management’s largest investment and £3.8m of the proceeds are being reinvested in Aonic. The consideration was 17.5% ahead of the March 2023 valuation.
Duke Royalty (DUKE) generated a 17% increase in recurring cash revenues to £12.2m with a 35% increase in all cash revenues to £14.1m. During the period, Duke Royalty made one of its biggest initial investments in glass architectural products supplier Glasshouse Products. The $11.5m investment is backing a member of the original founding family buying back the business.
Maritime AI provider Windward (WNWD) has signed a five-year contract with a European national coastguard that is valued at €3.2m. The cash is expected to be paid upfront, while annual contract value will be increased by $700,000/year.
MAIN MARKET
Structural steel supplier Severfield (SFR) reported lower interim revenues, but a higher profit. In the six months to September 2023, revenues were 8% lower at £215.3m, but underlying pre-tax profit improved 17% to £14.2m. This includes an unchanged contribution of £600,000 from the India joint venture, while the modular products business made a maiden profit. The interim dividend was raised 8% to 1.4p/share. The UK and Europe order book is worth £482m, even though the £50m contract for Hertfordshire-based film studio Sunset Studios has been delayed.
Standard list shell Tertre Rouge Assets (TRE) is attempting to raise up to £50m to buy rare cars and acquire cash generative businesses involved in supercar events. Around £30m is set to be invested in a range of cars that have already been identified. They are worth between £1m and £10m. The plan is to generate gains on these investments -15% annual returns are targeted – while hiring them out to photoshoots and other income generating activities to cover overheads. The Run To Group Ltd, which organises supercar adventures to the Monaco Grand Prix, will also be acquired and management will remain with the business. The group’s board of directors includes racing drivers and business men and they can expand this business and others. There will be cash left over to buy other companies.
Packaging manufacturer and distributor Macfarlane Group (MACF) says lower volumes and prices meant that revenues fell 2% in the nine months to September 2023. New customers are being attracted and this will help future volumes. Margins are increasing.
Seraphim Space Investment Trust (SSIT) improved its NAV to 96.5p/share at the end of September 2023. That was helped by positive currency movements and a small uplift in valuations, predominantly due to a fundraising by an investee company.
Andrew Hore
Quoted Micro 11 September 2023
AQUIS STOCK EXCHANGE
Ormonde Mining (ORM) has switched from AIM to the Access segment of the Aquis Stock Exchange. Ormonde Mining owns 36.2% of gold and copper explorer. TRU Precious Metals Corp and 20% of battery metals explorer Peak Nickel.
SulNOx Group (SNOX) increased revenues from £34,000 to £203,000 in 2022-23, while the loss was slightly lower at £1.91m. The net cash outflow was £1.2m. Note 3 of the accounts points out the financial position, but management believes that sales will come through to generate cash to fund the business after a reduction in costs. If not, a share issue will be the alternative way of obtaining the cash required. Stephen Bamford and Constantine Logothetis have increased their stakes to 8% and 22.5% respectively.
Aquis Stock Exchange owner Aquis Exchange (AQX) has appointed Investec as nominated adviser and joint broker alongside Canaccord Genuity. It replaces Liberum. The company, which is also quoted on AIM, will report interims on 21 September.
Ananda Developments (ANA) has issued £600,000 of convertibles at 100p each. Two existing shareholders have invested a total of £300,000 and Charles Morgan has converted £300,000 of debt. Unsecured debt will fall to £709,000 and Charles Morgan has agreed not to task for repayment until the end of January 2025. The interest rate is 15% and the conversion price is the lower of a 20% discount to the share price of the next capital raising of at least £1m of 0.4p/share, with a minimum of 0.2p/share. The loans will automatically be converted on 30 November 2025 or earlier.
Pharma C investments (PCIL) will hold the requisitioned general meeting on 27 September. The proposals are to remove Gavin Hilary Sathianathan and appoint Paul Ryan and Noel Lyons to the board.
Investment company Macaulay Capital (MCAP) has seven investments in its portfolio. The NAV dipped from £1.44m to £1.33m at the end of June 2023. There is £368,000.
Capital for Colleagues (CFCP) has received the second tranche of the disposal proceeds of investee company The Homebuilding Centre, which provides homebuilding advice. Successful trading means that the second tranche is £108,000 rather than the expected £50,000.
Cannabis-based products supplier Voyager Life (VOY) improved revenues from £178,000 to £284,000. There was cash of £990,000.
AIM
Controlled environmental agriculture technology developer Light Science Technologies (LST) is acquiring Tomtech for £500,000 with an initial cash payment of £75,000. Tomtech, which supplies and installs monitoring and control systems for greenhouses, has £284,000 in cash and there could be additional cash payments if it is above £185,000 on completion. This deal is immediately earnings enhancing – Tomtech reported a pre-tax profit of £79,000 on revenues of £680,000. There is a complementary product range and cross selling opportunities to Tomtech’s 160 customers.
AMTE Power (AMTE) is raising £2.1m at 1.7p/share at 1.7p/share, plus an additional retail offer to raise £250,000. The share price slumped 78.4% to 2.05p. The battery technology developer is raising the cash to keep going until the proposed cash injection of £2.5m is completed. Due diligence by the potential investor could continue until the end of October and it believes that it can introduce potential offtake customers to AMTE.
Molecular Energies (MEN) plans to sell its Argentinian oil and gas business for up to $40m to its chairman Peter Levine. Argentina is economically and politically volatile and exchange controls mean that the business is hampered. There is a lack of investor interest and there are capital investment requirements that need to be funded. There will be an initial payment of $2m plus repayment of $13m of debt. The rest of the purchase price is based on up to 20% of net free cash flow over the next five years. The Paraguay oil and gas assets and other operations are not included in the sale.
Software supplier GetBusy (GETB) made a slightly lower underlying loss in the first half as it continues to invest in sales and product development. Annual recurring revenues grew 14% to £20.1m. and there is £1.7m in the bank. finnCap maintains its expectation of a small 2023 loss.
Satellite communications equipment supplier Global Invacom (GINV) is seeking shareholder approval to leave AIM and maintain the listing on the Mainboard of the Singapore stock market. There is a lack of liquidity on AIM, and this makes it difficult to raise cash. There is also the cost and management time taken up with being on AIM and another market. A subsidiary signed a multi-year contract with Eutelsat Communications. The July 2014 placing price was 19.75p. The shares have been trading below that price for more than eight years.
Video editing technology developer Blackbird (BIRD) reported a 36% dip in interim revenues to £985,000 after the loss of a contract with A+E and additional development fees in the previous period. The cash outflow was £1.92m, but there is still £8.18m in the bank. Even so, investors want to see progress with the new product for creators and other new business to replace what has been lost.
Capital equipment supplier 600 Group (SIXH) has reconvened its AGM for 29 September. However, the audit for the accounts for the year to March 2023 will not be completed by the end of September. Trading in the shares will be suspended on 2 October. Trading conditions continue to be difficult and there will be a further interim loss. That will lead to impairment adjustments in the 2022-23 accounts. Debt facilities expire at the end of November 2023. Peter Gyllenhammar increased his stake from 9.88% to 10.2%.
Capital equipment manufacturer Mpac (MPAC) increased interim revenues by 4% to £52.8m and pre-tax recovered from £1.1m to £1.9m. Order intake soared in the period. Services generated one-third of revenues in the first half, but the mix will change as recent order wins are satisfied in the second quarter. The order book has risen 15% to £77.5m since the end of 2022 and includes higher margin healthcare machinery. This helps to underpin forecasts of a better second half. The battery cell assembly plant business remains a significant longer-term opportunity. Net cash is £2.2m. Shore forecasts a near doubling of underlying pre-tax profit to £6.9m in 2023.
Builders’ merchant Lords Group Trading (LORD) is outperforming its rivals. But trading is getting tougher because of higher interest rates and lower construction activity. Interim revenues improved 4% to £222.6m, helped by acquisitions, but pre-tax profit fell from £8.4m to £7.7m. The interim dividend is maintained at 0.67p/share. Cenkos has reduced its 2023 pre-tax profit forecast from £17.8m to £13.2m.
Infrastructure India (IIP) announced the conditional sale of the 99.99% stake in transportation company Distribution Logistics Infrastructure to Pristine Malwa Logistics Park, which is part of logistics group Pristine. The consideration will be $10m in cash and 33% of Pristine Malwa the purchaser. There are conditions that are required to be satisfied before the deal can go ahead and it will be subject to adjustment. The transaction could close before the end of the year. Infrastructure India is expected to exit the investment within three years. At the end of September 2022, net liabilities were £85.7m. It is difficult to assess how much of the Infrastructure India borrowings will go with the disposal.
STM Group (LON: STM) has reached agreement with PSF Capital GP II over a 67p a share cash bid for the pensions and financial services provider. The bidder is securing a new credit facility to fund the bid. Originally, it was stated the offer could be as high as 70p/share, but the share price shows that investors were not counting on it being that high. This is conditional on STM boss Alan Kentish acquiring the UK SIPP business and those related to the Master Trust.
Property bridging loans provider Vector Capital (VCAP) reported a decline in interim revenues and profit. The loan book has fallen from £53.2m to £48.8m over six months as management is cautious about new lending. The bad provision has been raised by £167,000 to £367,000, but it is still relatively low. Pre-tax profit fell 18% to £1.3m, partly due to the higher provision.
MAIN MARKET
Round Hill Music Royalty Fund (RHMP) is being acquired by Alchemy Copyrights for $1.15/share, which values the company at $468.8m. That was a premium of 67% to the previous market price. Shareholders will still receive the quarterly dividend of 1.125 cents/share and a special dividend of 0.5 cents/share.
Andrew Hore
Quoted Micro 18 October 2021
AQUIS STOCK EXCHANGE
Good Energy (GOOD) has followed the lapsed Ecotricity bid with a nine-month trading statement saying that the renewable energy supplier is on course to meet full year expectations. Good Energy is more than 90% hedged for the next 12 months, so there is limited exposure to the current price volatility. Price rises have been implemented. The 0.75p a share interim dividend is payable on 29 November and the ex-dividend date is 21 October. Finance director Rupert Sanderson has sold 14,800 shares at 335p each, while chief executive Nigel Pocklington bought 7,500 shares at 351.666p each.
Walls and Future REIT (WAFR) is engaging with new investors so that there are buyers for the 10% of the share capital where investors are not long-term holders. This is holding back the share price and causing the high discount to NAV, according to management. The company has completed the design of its autism friendly housing.
CBD products supplier Voyager Life (VOY) generated revenues of £65,000 from incorporation to the end of September 2021. Monthly overheads are less than £50,000. There is £1.8m in the bank. New stores are opening in Edinburgh and Dundee.
Yooma Wellness Inc (YOOM) has acquired CBD products manufacturer N8 Essentials for 1.17 million shares issued at 67.3 cents a share. N8 has a 14,000 square foot manufacturing facility in Kansas. This will enable more group production to be brought in house.
Sativa Wellness (SWEL) has launched an online telemedicine service. This enables patients to follow up tests with a virtual medical consultation.
KR1 (KR1) is participating in the Kintsugi crowdloan and Kusama (KSM) parachain auction. KR1 contributed 5,000 KSM to the crowdloan.
Altona Natural Resources (ANR) has started drilling at the Monte Muambe project in Mozambique. This will improve the understanding of the geological model and test four newly identified targets.
The requisition for a general meeting at British Honey (BHC) has been withdrawn. Richard Day has been reappointed chairman and Mark Gamble as an executive director. Alex Maurice has stepped down from the board but continues to be employed by the company.
Hydro Hotel Eastbourne (HYDP) non-exec director CP Freeman has bought 800 shares at 884p each. David Evans has a 7.61% stake in Oberon Investments (OBE).
The SFO has ended its investigation into people associated with Watchstone Group (WTG) when it was known as Quindell.
AIM
Light Science Technologies (LST) is a contract electronics manufacturer and a developer of controlled environment agriculture technology, which joined AIM on 15 October. The agricultural technology being developed helps farmers to maximise crop productivity and monitor the growing environment. The company’s LED lighting range is called nurturGrow Luminaire and the nurturGROW sensor is being developed. There was £5m raised at 10p a share and the price ended the first day at 11.5p. The cash raised in the flotation will be used to expand facilities and increase marketing.
Floorcoverings manufacturer Victoria (VCP) has achieved record interim earnings. The UK has been a strong market, but Australia has been tougher. The full year outcome is likely to be ahead of expectations. Peel Hunt has upgraded its full year pre-tax profit forecast from £58.3m to £65m.
Branded furnishings and wallcoverings supplier Sanderson Design Group (SDG) improved interim pre-tax profit by 22% to £6m on a 48% increase in revenues. North American and UK sales were strong, and the manufacturing business bounced back. Management plans to generate more income from the archive of past patterns and designs. Net cash is £15.4m. Sanderson is on course to achieve an increase in full year pre-tax profit from £7.1m to £10.9m.
Eqtec (EQT) plans to acquire a 5MW project in Drama, Greece, which will generate energy from forestry waste. Financial close should be achieved for the project in the third quarter of 2022. There is also an additional £2.1m of investment in the North Fork project in California, which increases the stake from 10% to 49%. The 2MW biomass to energy project has been delayed due to fires and Covid. A $4.5m convertible loan facility has been provided to the development.
CyanConnode (CYAN) says interim revenues were £4.1m and it is well on the way to £9.4m of revenues for the full year. The narrowband radio frequency networks company continues to lose money, but cash levels should improve.
Motor dealer Vertu Motors (VTU) recorded record first half results despite supply problems for new vehicles. Used car prices have been rising because of the shortage of new vehicles. In the six months to August 2021, revenues increased from £1.2bn to £1.92bn. Underlying pre-tax profit soared from £4.7m to £51.8m, which is more than treble the first half of 2019-20. Net cash is £57.3m. The interim dividend has been re-established at 0.65p a share. The net tangible asset value is 61.5p a share.
High street sales recovered at fishing tackle retailer Angling Direct (ANG) despite being closed in the first ten weeks of the first half and online sales continued to grow. In the six months to July 2021, revenues improved from £32.1m to £38.4m with high street sales increasing by two-fifths. Online sales were 2% ahead. Pre-tax profit jumped from £1.36m to £3.72m, which includes government lockdown support. Full year pre-tax profit is expected to increase from £2.6m to £3.5m.
Driving safety technology developer Seeing Machines (SEE) has signed a framework agreement with Shell Global Solutions for its Guardian driver distraction and fatigue technology. Deployments should start later this year. Shell has 20,000 vehicles, compared with the total number of 31,771 vehicles using Guardian technology. Seeing Machines has also set up an EU sales team with a headquarters in Amsterdam.
Gresham House Strategic (GHS) has decided to change its investment manager from Gresham House Asset Management to Harwood Capital, where its previous investment manager Richard Staveley moved earlier this year, and Gresham House (GHE) has requisitioned a general meeting in order to have the company’s cash distributed to shareholders and the portfolio of investments liquidated over a 24-month period. Gresham House has a 23.3% stake in Gresham House Strategic and claims the backing of 40% of the share capital. The opposition to the move owns 30% of the company. Harwood intends to invest in the company, and it will generate lower fees, which will save the company £270,000.
Iodine company Iofina (IOF) produced 142.7 MT of crystalline iodine in the third quarter of 2021 and that underpins full year forecasts. Iodine prices continue to rise and recently hit $40/kg.
MAIN MARKET
LED lighting and wiring accessories supplier Luceco (LUCE) has acquired DW Windsor, an exterior lighting business, for £16.9m in cash. In the year to September 2021, operating profit was £1.9m.
Highway Capital (HWC) has finally found a suitable reverse takeover target, although there is no firm agreement. There will be a fundraising alongside the purchase of esports adviser and investor Guinevere Capital Esports & Entertainment. No purchase price has been announced
Oxford Cannabinoid Technologies (OCTP) has acquired medical assets from Canopy Growth Corporation, which provides access to cannabinoid derivatives and will help the company to develop additional drug projects. The lead compound OCT461201, which is a potential neuropathic pain treatment, is progressing towards clinical trials in the third quarter of 2022.
Andrew Hore