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Quoted Micro 6 May 2024
AQUIS STOCK EXCHANGE
Good Life Plus (GDLF) has traded strongly since joining Aquis and raising cash for marketing. The luxury prize draw company increased the number of subscribers from 21,000 at the end of 2023 to 30,000. Churn has been reduced.
Invinity Energy Systems (IES) raised £56m at 23p/share with £25m committed by the UK Infrastructure Bank and £3m from Korean Investment Partners. There is also an open offer to raise up to £6.6m. The share price slipped 6.12% to 23p. IES will use £30m to increase capacity ahead of the launch of the latest version of the Mistral flow battery.
KR1 (KR1) gained shareholder approval for the market acquisition of up to 14.99% of its shares. NAV was 132.05p/share at the end of March 2024, down from 134.6p/share one month earlier. There was £1.96m in income from digital assets during the month.
Apollon Formularies (APOL) has sent a general meeting notice for 28 May to gain approval of the cancelation of the Aquis quotation. The company is selling its IP to a Canadian company.
Rogue Baron (SHNJ) has acquired Eight Vodka for £70,000 in shares at 0.5p each. Eight Vodka is distilled eight times in Ecuador.
Trading in Silverwood Brands (SLWD) was restored following the completion of a capital reduction. Phoenix Asset Management increased its stake from 0.94% to 29.9%. In the first quarter a rebranding of Balmonds has disrupted sales. The costs of acquiring Cosme Science hit profitability of Sonotas.
One Health Group (OHGR) says it did better than expected last year with annual revenues improving from £20.5m to £23m. Net cash was £4.7m at the end of March 2024. There was a 13% increase in NHS patient referrals for treatments. New five-year contracts have been secured with the two largest customers.
RentGuarantor Holdings (RGG) says first quarter revenues were 62% ahead and the number of tenant contracts was 38% higher.
Investment company MaxRets Ventures (MAX) reported net assets of £19,000 at the end of October 2023, down from £497,000. There was no new investment during the year. A transformative acquisition is being sought.
Hydrogen Future Industries (HFI) more than halved the interim cash outflow from operating activities to £234,000. Ther was £263,000 in the bank at the end of January 2024, but £612,000 has been raised since then. Testing of the prototype wind turbine and the electrolyser has gone well.
Substrate AI (SAI) generated revenues of $8.6m in 2023. There was $4.42m in the bank.
Hacienda Management has taken a 7.48% stake in Supernova Digital Assets (SOL). Pete Mills increased his stake in Oscillate (MUSH) from 3.02% to 4.03%. DXS International (DXSP) chairman Robert Sutcliffe bought 100,000 shares at 1.46p/share.
AIM
Trinity Exploration & Production (TRIN) has agreed a bid from fellow AIM-quoted Trinidad oil and gas company Touchstone Exploration (TXP), which is offering 1.5 shares for every Trinity share. The Trinity shareholders will own one-fifth of the enlarged company. The combined group will be in a stronger position to make investments in new production. The Touchstone Exploration share price is 4.85% lower at 39.25p, valuing each Trinity share at 58.875p – the share price is 50% higher at 54p.
Alpha Financial Markets Consulting (AFM) has confirmed that BridgePoint Advisers has made a bid approach and Cinven is considering making a bid. Revolution Bars Group (RBG) has received interest from Nightcap (NGHT), which is assessing the situation and options include a bid or acquisition of some sites or subsidiaries.
Electric Guitar (ELEG) moved from the standard list to AIM following the reverse takeover of 3radical on 3 May. It is the first in a planned series of acquisitions in the digital marketing sector, where regulatory and market changes, such as the blocking of third-party cookies, provide significant growth opportunities. 3radical was acquired for 61.2 million shares valued at £1.28m. A fundraising generated £1.32m at 2.1p/share and that valued the company at £4.7m. 3radical was set up by the founders of campaign management software provider Alterian at the end of 2011 The shares had been suspended at 2.1p and they fell to 1.8p when trading recommenced on AIM.
Multi-channel retailer TheWorks.co.uk (WRKS) moved from a premium listing to AIM. The board felt the company was too small for the cost and regulatory burden of the Main Market. One of the attractions of AIM is that the company will no longer be classified as a Public Interest Entity and it will be able to choose an auditor from a wider range of firms. Singer forecasts a slump in pre-tax profit from £10.1m to £1m in the year to April 2024.
Cornish Metals (CUSN) has published a preliminary economic assessment of the South Crofty tin project in Cornwall. There is an after-tax NPV8 of $201m at a tin price of $31,000 /tonne. Pre-production capital requirement is $177m, which is higher than previous estimates, and there should be 14-year mine life. Life of mine all in sustaining cost is estimated at $13,661/tonne. Planned first production is in 2027.
Horizonte Minerals (HZM) has enough cash until 17 May and senior lenders have agreed to extend waivers on loans, including deferring interest payments, until 15 May. These lenders have security over the company’s assets. Horizonte Minerals has guaranteed the debt of the subsidiary that owns the Araguaia project. Discussions with creditors and investors continue in an attempt to achieve some recovery value for creditors. That may include the disposal of the Araguaia project. None of the proposals are likely to recover value for shareholders.
Arrow Exploration (AXL) grew average production from 1.3mboe/day in 2022 to 2.2mboe/day in 2023 and revenues increased from $28.1m to $50.6m, which was slightly lower than forecast. There was cash of $13m at the end of 2023 and this fell to $12m at the end of March 2024. Production has reached 2.9mboe/day in March, while drilling activity will lead to further increases in the medium-term. Canaccord Genuity has cut its 2024 revenues forecast from $103.9m to $98.6m and net cash is expected to be $17m at the end of 2024.
Trading at property services provider Kinovo (KINO) is ahead of expectations with organic growth of 23% in the year to March 2024. Underlying pre-tax profit should be more than £6m, excluding costs related to the DCB contracts, which were guaranteed by Kinovo when it was sold, still to be completed.
Mark Halpin has stepped down as chief executive of managed IT services provider CloudCoCo (CLCO) and MXC Guernsey, which holds a 10.6% stake, has extended its loan notes to 31 August 2026 in return for a £550,000 fee. The amount outstanding on the loan notes is £5.85m. MXC can also appoint an executive director and Ian Smith becomes interim chief executive. The shares returned from suspension following the release of figures for the year to September 2023 showing revenues 7% ahead at £26m. The loss was flat at £2.6m. There was a cash inflow from operating activities. Net debt was £6.3m at the end of September 2023.
Brake discs developer Surface Transforms (SCE) raised £6.5m fundraising at 1p/share. There will be a one-for 1.76036319 open offer at the same price. That could raise £2m. The cash will finance the scale up of manufacturing. Factory capacity will be increased to £75m. This year’s revenues are forecast to be £17.5m.
Gift wrap and stationery supplier IG Design (IGR) did better than expected in the year to March 2024 with margins recovering and pre-tax profit improving from $9.2m to $25.9m, compared with a forecast of $20.5m, even though revenues fell. Net cash nearly doubled to $95m. It appears the recovery is gathering pace. Management believes that margins could return to previous levels this year and an operating margin of more than 6% in 2026-27, suggesting a pre-tax profit of around $50m.
IT distributor Northamber (NAR) is acquiring Tempura Technology and Tempura Communications, which distribute unified communications products, for £6.02m in cash and 181,818 shares. There is £2.64m of the cash consideration contingent on EBITDA in the years ending June 2025, 2026 and 2027. This is a profitable business that has been growing organically.
Heavy mineral sands project developer Kazera Global (KZG) says recent changes at the National Nuclear Regulator in South Africa mean that it will have to provide additional information on how it will meet financial obligations. This should be funded by cash flow. A response is expected shortly and that will allow heavy mineral sands production to start in Alexander Bay, South Africa.
Oil and gas producer Jadestone Energy (JSE) reported a $91.3m loss for 2023 due to asset impairments, lower oil prices and higher interest costs. Capital investment has increased net debt to $110.5m by the end of March 2024. Average production in the first quarter of 2024 was 17,200 boe/day, which was hit by the Australian cyclone season. Production guidance for 2024 is 20,000-22,000 boe/day.
MAIN MARKET
Castings (CGS) did better than expected in the year to March 2024 and Canaccord Genuity upgraded its pre-tax profit forecast from £27.1m to £28.2m. Margins improved in the second half. Net cash is £32m.
Cybersecurity firm Narf Industries (NARF) is accelerating work on capabilities uniquely effective in battling a new generation threat. Developed was funded through a $2.3m contract from DARPA.
Andrew Hore
Quoted Micro 18 March 2024
AQUIS STOCK EXCHANGE
Aquis-quoted cannabidiol products supplier Voyager Life (VOY) has revealed plans to merge with Northern Leaf, which wanted to float on AIM but is running out of money. The deal should value the combined group at £5m – the Voyager Life share price is unchanged at 11p – if deferred consideration is paid in full. That requires Northern Leaf to generate revenues of more than £5m by March 2025. Jersey-based medical cannabis supplier Northern Leaf was the second company to be awarded a UK commercial high THC licence – the other was former AIM company GW Pharmaceuticals. Prior to 2023, the company had raised £16m over three years. Northern Leaf raised £3m in pre-IPO cash via a preference share issue in April 2023, followed by at least £1m raised via a convertible loan note.
Aquis Exchange (AQX) is working with Richard Croft of Martley Capital to establish a new segment of the Aquis Growth Market that focused on real asset backed investments. This could launch in the second half. The Aram segment will be open to commercial property, infrastructure and forestry asset owners. Richard Croft ran a company that was quoted on the International Property Securities Exchange (IPSX), which closed last year. Aquis Exchange has also secured a contract with the Central Bank of Colombia with technology for the operation of the government bond market. This should go live in 2026.
Wishbone Gold (WSBN) says drilling at the 100%-owned Cottesloe project in Western Australia indicates a large sediment hosted base metal mineralised system. These base metals can be used in lithium-ion batteries. There are highly anomalous lead-zinc and silver levels. The drilling has been in the south of the prospect area and drilling will switch to the northern area.
Quantum Exponential Group (QBIT) has adjourned a general meeting to gain shareholder approval for leaving Aquis. Investors have approached the company and offered to make a substantial investment.
Cadence Minerals (KDNC) investee company Evergreen Lithium has identified large lithium targets from soil sampling at the Bynoe project in the Northern Territory, Australia. Cadence Minerals has a 8.7% stake in Evergreen Lithium.
Greece-based dry bulk shipping company Seaenergy is piloting the SulNOxEco fuel conditioner made by SulNOx Group (SNOX).
Marula Mining (MARU) says its partner NyoriGreen has applied for eight graphite mining licences and one prospecting licence in Tanzania. This could be granted in the second quarter.
Substrate AI (SAI) has completed the acquisition of 21% of software developers BINIT and DELTANOVA for a total outlay of €2.1m.
Vinanz (BTC) has acquired ten Bitmain Antminer S21 200TH/s miners for North America. They should be operational within four weeks.
SuperSeed Capital (WWW) says the NAV was maintained at 113p/share at the end of 2023. Management expects to make two new investments in the first quarter. Cash was more than £99,000 at the end of 2023.
TruSpine Technologies (TSP) has raised £427,000 through a share placing at 1.5p each and convertible loan note issue. More cash can be raised through further convertible issues. The board is reviewing the business plan.
Cooks Coffee Company (COOK) intends to raise cash to invest in its Esquire chain, digital technology, acquire independent cafes and repay debt. It wants to raise up to NZ$1.76m at the equivalent of 9.55p/share.
Chris Akers continues to build his stake in Asimilar (ASLR) ahead of the exit from the Aquis Stock Exchange. The shareholding rose from 13.4% to 14.1%. Gunsynd (GUN) has sold its 4.75% stake in Oscillate (MUSH). Inteliqo finance director Raymond Smart has acquired 104,126 shares at 15p each.
Martin Walton has stepped down from the board of MaxRets Ventures (MAX) and Luciano Maranzana has been appointed as a director.
AIM
Cloud telephony provider LoopUp Group (LOOP) did reasonably well during Covid lockdowns, but it has found trading difficult since then. Management says it wants to leave AIM because it is difficult to raise cash. LoopUp needs to rise £9m, which management feels it cannot raise on AIM, but it four investors are willing to subscribe £6.2m if LoopUp goes private. In August 2016, the original placing price was 100p when £8.5m. Including that cash, LoopUp has raised more than £70m since joining AIM.
A 90p/share bid for SmartSpace Software (SMRT) has been announced. The bid approach for smart building technology company from Sign In Solutions Inc was revealed earlier this year and the rival bidder pulled out. This recommended offer values SmartSpace Software at £28.4m.
Gaming machines hardware and displays supplier Nexteq (NXQ) reported a 5% drop in 2023 revenues to $114.3m, but improving margins enabled pre-tax profit to rise 45% to $14.7m. The final dividend is 3p/share. The cash pile has increased to $27.9m. Mid-range gaming platform sales grew the most last year, while Densitron has benefited from sales of its newer broadcast equipment. The underlying gaming computer market is growing.
Pawnbroker H&T (HAT) reported strong growth in profit and the trading statement was reassuring for the current year. The pawnbroking book grew 28% to £128.9m. Group 2023 revenues were 27% ahead at £220.8m. Retail and other services were the only parts of the business making a lower profit contribution. Pre-tax profit was up from £19m to £26.4m. This enabled a rise in the dividend from 15p/share to 17p/share.
MTI Wireless Edge (LSE: MWE) was hit by a decline in the Israeli shekel against the US dollar and that meant that 2023 revenues were slightly lower at $45.6m. Pre-tax profit increased from $4.59m to $4.65m. There was a reduction in potential contingent consideration for the remaining shares in PSK, partly offset by a goodwill write down. There is a positive outlook for government demand for PSK services. The balance sheet remains strong with cash of $8.1m. The final dividend has been raised by 3% to 3.1 cents/share.
Ondine Biomedical (OBI) is making faster progress than expected. The Steriwave sterilisation technology is deploying in a further eight healthcare facilities. Ottawa hospital is expanding the use of Steriwave to combat hospital acquired infections in spine surgery patients. A study estimated a net saving of C$2,600 per surgery and infection rate dropped by two-thirds. Discussions continue with potential distributors.
Horizonte Minerals (HZM) revealed that the subsidiary that holds the Araguaia project has been granted an injunction which provides 60 days to work on restructuring and negotiate indebtedness. This provides additional time to deal with creditors. Horizonte Minerals continues to try to negotiate a financing.
Symphony Environmental Technologies (SYM) has been boosted by a positive report from the US Environmental Protection Agency that pro-oxidant masterbatches “could significantly reduce the persistence of plastic pollution without creating undesired by-products”. This is based on a scientific evaluation and is a positive thing for the company’s d2w technology.
Renalytix (RENX) has raised £7.8m at 20p/share and this should be enough to fund the company until the fourth quarter of 2024. This will give time for the formal sale process to make progress. A large diagnostics company has made a bid approach to kidney disease diagnostics developer Renalytix. This sparked the 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.
MAIN MARKET
Packaging manufacturer and distributor Macfarlane Group (MACF) has acquired Allpack Packaging Supplies for up to £3.25m. It manufactures protective packaging, and it will extend the range of the group.
Cybersecurity company Narf Industries (NARF) has won a contract the Intelligence Advanced Research Projects Agency. The $1.3m contract is for the ReSCIND programme to better understand cyber attackers’ decisions. This should eventually lead to additional revenues from related SaaS business with government departments.
R8 Capital Investments (MODE) says that the proposed acquisition of Redwood Financial Partners could take until the end of August.
Andrew Hore
Quoted Micro 1 May 2023
AQUIS STOCK EXCHANGE
Technology investment company Asimilar (ASLR) is leaving AIM, but it will retain its Aquis quotation. Trading in the shares recommenced following the publication of the latest accounts. Chris Akers raised his shareholding from 9.13% to 10.3% and that helped the share price to recover from its low during the week. At the end of September 2022, net assets were 5.53p a share. A general meeting will be held on 18 May and the AIM cancelation should happen on 26 May.
Fuel additives supplier SulNOx Group (SNOX) has received a general meeting requisition from RemNOx Ltd, which wants to remove chairman Radu Florescu and appoint three new directors. It also wants to remove chief executive Ben Richardson. RemNOx is controlled by Angela Bravo.
Four shareholders are requisitioning a general meeting at TruSpine Technologies (TSP) and they want four directors to be removed. They also want three nominees to be voted onto the board, which includes two of the requisitioners: Peter Houghton and Todd Michael Cramer.
OTAQ (OTAQ) published a nine-month update showing revenues of £2.6m up until the new year end of December 2022. There was a £300,000 EBITDA loss. There are a range of aquaculture products that are becoming ready for commercialisation. First quarter 2023 trading was in line with expectations and the outlook for the second quarter is better.
MBH Corporation (M8H) increased 2022 revenues by 31% to £142.8m, while operating profit was £3.4m, down from £5.16m. There was organic growth from all the main operating sectors.
Hydrogen Future Industries (HFI) had an interim cash outflow from operating activities of £548,000. There is £736,000 in the bank at the end of January 2023. The company has commenced prototype testing of the wind element of its hydrogen production system.
BWA Group (BWA) has appointed John Byfield and Jonathan Wearing to the board, while Alex Borelli has stepped down. High levels of rutile have been identified in samples from the Dehane 2 rutile sands project in Cameroon.
Investment company MaxRets Ventures (MAX) had net assets of £497,000 at the end of October 2022, including £411,000 in cash. Annualised running costs are £280,00. There are two cannabis-related investments and no new investments have been made in the past year.
SuperSeed Capital (WWW) has made a new investment in Kluster, an AI platform that helps clients to generate revenues.
EDX Medical (EDX) has raised £1,725m at 6p a share. Bridgemere has become the second largest shareholder with 11.6%.
PanGenomic Health (NARA) says a subsidiary has signed a definitive master service agreement with Psy Integrated Health. Patient biomarker data will be collected to assist in optimising treatments. Psy will be paid $45,000 for the initial work.
Equipmake Holdings (EQIP) has been awarded a £1.6m grant, on a matched funding basis, to help it further develop its electrification technology for electric vehicles.
Wishbone Gold (WSBN) has published exploration data for the Cottesloe project in Western Australia. This shows high grades of silver, cobalt, lead and zinc.
Marula Mining (MARU) published its quarterly activities update. This was an active quarter. There is an increasing focus on battery metals. The company is debt free.
At the end of January 2023, Kasei Holdings (KASH) had net assets of £2.05m, including cash of £473,000. Since then, £164,000 has been raised from Aalto Capital at 12p a share. However, this is less than the £500,000 expected.
Semper Fortis Esports (SEMP) raised £100,000 at 0.1p a share. This will take the cash pile up to £500,000. Costs have been brought down to a minimum.
Convertible loan notes worth £161,000 were converted into Valereum (VLRM) shares at 4.7112p a share.
AIM
Deutsche Bank is bidding 339p a share for Numis Corporation (NUM), which values the AIM nominated adviser at £410m. On top of the cash bid there will be an interim dividend of 6p a share for the six months to March 2023, plus an additional dividend of 5p a share. The first dividend will be paid in June and the second dividend will be paid after the effective date of the takeover.
Zoo Digital (ZOO) has raised £12.5m at 160p a share and a retail offer could raise up to £500,000 at the same price – it closes on 5 May. The cash will help to finance the acquisition of one of its Japanese media localisation partners from a leading technology company. This should be earnings enhancing. Management says that full year revenues will be $90m, which is lower than expected. This disappointment is due to lower margin dubbing revenues.
Fiinu Group (BANK) says a lack of money has slowed progress in gaining a full banking licence. A decision has been taken to withdraw the fintech’s licence application and reapply in a few months. Management will then focus on securing between £34m and £42m of cash. Once this is obtained the application process will be resumed. Fiinu has developed the Plugin Overdraft, which provides customers with an overdraft facility without the requirement to switch banks.
Trading conditions were tougher for Focusrite (TUNE) in the content creation market and that was only partly offset by a bounce back in the audio reproduction sector as live events returned to past levels. Group interim revenues fell from £92.9m to £86.2m, even after the inclusion of recent acquisitions. A fall in freight charges helped gross margin edge up to 47.1%. Even so, pre-tax profit fell from £16.3m to £10.9m. Net debt was £13.2m after the cost of acquisitions. The dividend was still raised from 1.85p a share to 2.1p a share.
IT training provider Northcoders (CODE) reported an 86% increase in revenues to £5.6m in 2022 and pre-tax profit jumped from £100,000 to £600,000. There was net cash of £1.7m at the end of 2022. Revenues of £6.1m are already in the order book for 2023 and the full year forecast is £9.5m. The pre-tax profit should double to £1.2m.
Management process automation software provider ActiveOps (AOM) made better gross margins on forecast revenues of £25m and a positive EBITDA in the year to March 2023. A £500,000 loss was forecast. There was £15.4m in cash at the year-end. The newly launched CaseWorkIQ software is starting to gain momentum. The full year figures will be published in July.
Smoove (SMV) says it is in bid discussions with PEXA Group. These are at an early stage but could lead to a cash bid for the online residential property services provider. Australia-based PEXA Group offers online property services through the Property Now content hub that are similar to those offered by Smoove. There is no indication of bid price.
WoolOvers Group announced on Tuesday afternoon that it will not be making a 10.5p a share bid for footwear retailer Unbound Group (UBG).
Parkmead Group (PMG) produced more condensate than expected from the LDS-01 well in the Netherlands, so the well has been temporarily shut-in to enable work to handle the greater volume. This will mean that 2022-23 pre-tax profit will be lower than expected, but still doubled at £15.1m. Longer term, the prospects appear brighter. Gas reserves appear to be greater than anticipated and the high gas price is prompting greater exploration activity.
Fire Angel Safety Technology (FA.) has been hit by supply problems and that particularly hampered sales of higher margin products. A delayed contract also held back progress. Costs have fallen but EBITDA will be below expectations in 2023. Price increases will help revenues from the second quarter onwards. Shore Capital has withdrawn its forecasts.
Iodine producer Iofina (IOF) has an increasingly attractive outlook for 2023. The iodine price remains relatively high at near to $70/kg and the new IO#9 facility should be up and running before the end of June. There are more potential sites for plants. Iodine derivatives sales are also increasing. Net income was $7.2m in 2022 and it is expected to improve to $8.1m this year.
MAIN MARKET
Mears (MER) reported 2022 pre-tax profit of £35.2m and higher than expected average net cash of £42.9m. The dividend has been increased by 31% and a £20m share buy back has been launched. The order book covers 98% of 2023 forecast revenues – pre-tax profit is likely to be flat.
Castings (CGS) has beaten forecasts for the year to March 2023. Pre-tax profit will be 8% ahead of the estimate at £16.8m. Demand from HGV manufacturers is still improving, and production inefficiencies resolved, helping the second half to be much better than expected.
Andrew Hore
Quoted Micro 13 February 2023
AQUIS STOCK EXCHANGE
Hemp and cannabinoid products supplier Yooma Wellness (YOOM) is restructuring its business due to the depressed market conditions. Unprofitable activities have been wound down and management is still trying to come up with a new strategy. The 2021 Vertex acquisition is being handed back to the sellers and $1.2m in receivables has been assigned to them. The subsidiary in France is filing for a bankruptcy procedure. Yooma Wellness requires more cash and other operations may need to be sold. If not, then there could be insolvency proceedings.
Love Hemp (LIFE) has appointed administrators. Secured creditors have issued a notice of default requiring repayment of the £1.92m debt facility. Sales have slumped and a dispute with former managing director Philip Small has not helped.
Walls and Futures REIT (WAFR) is holding a general meeting on 23 February so that strategic investor Vengrove can raise cash for the company through a share issue. The number of shares in issue will be ten times as many as currently in issue. This will help Walls and Futures REIT scale up. Vengrove SI-REIT Advisors will become manager of the portfolio of assets. Pax Homes will be sold to Joseph McTaggart, so the group will no longer be a developer. Investments will be made in affordable rental housing, education property, service stations and car parks and community buildings. A portfolio of assets has been identified. The company’s name will be changed to Social Infrastructure REIT.
Music artist management and services provider All Things Considered (ATC) is estimated to have generated revenues of £11m in 2022 and the loss should be slashed from £2.7m to £300,000. Increased touring by music artists helped the business to recover. The company could breakeven in 2023.
Emissions reducing fuel ingredients supplier SulNOx Group (SNOX) finance director Steven Cowin has given notice and will leave the board at the end of March 2023. Four directors have option agreements with 6% shareholder RemNOx Ltd, which would enable it to acquire a total of 24.08 million shares at 30p each between 6 February and 28 February. That would mean that RemNOx would own 29.9% of SulNOx.
EPE Special Opportunities Ltd (EO.P) had cash of £24.5m at the end of January 2023. NAV was 334p a share, down from 456p a share. The share price recovered 5.71% to 185p. The Luceco (LUCE) share price decline was part of the reason. The company bought back 5.4% of its share capital at an average price of 139p/share. A £2m investment was made in premium dog snacks maker Denzel’s Ltd.
There are further delays in the provision of the £200,000 bridge loan to TruSpine Technologies (LON: TSP).
Newbury Racecourse (NYR) is raising its prize money by 16% to £6.06m in the 2023 season. Chairman Dominic Burke bought 6,250 shares at 815p each, taking his stake to 6.42%.
Res Privata NV took a 3.83% stake in NFT Investments (NFT).
Oberon Investments (OBE) appointed Paul Sheehan to its investment management team.
Greencare Capital has changed its name to MaxRets Ventures (MAX).
Marula Mining (MARU) appointed PWC Kenya as advisor to its East Africa activities.
AIM
Managed IT and networking services provider AdEPT Technology (ADT) is being acquired by a private equity backed Wavenet, which also provides telecom services. The 201p a share bid is a 75% premium to the previous market price it is still well below past levels. However, shareholders will not get the 2.5p a share interim dividend. The bid values AdEPT Technology at £50.3m.
Hardide (HDD) revenues grew 39% to £5m with the prospect of another sharp increase this year. The advanced coatings company continues to broaden its sector and customer base in areas such as renewable energy. Hardide is expected to continue to be loss making but the cash outflow will reduce. There is enough cash following the sale and leaseback of the US facility for the immediate requirements of Hardide.
Communications sub-systems manufacturer Filtronic (FTC) has been hit by component shortages that held back progress in the first half and this will continue in the second half. The order book is worth £17m, which is more than the 2022-23 forecast revenues of £16.5m. A small pre-tax profit is expected for the full year and there should be a sharp recovery in profit as supply problems ease next year.
Alumasc (ALU) interim revenues were 5% ahead at £45 million, pre-tax profit fell 11% to £5.6 million. The corresponding period included high margin Chap Lap Kok airport project work for the water management division and the phasing of projects hit the latest figures. The figures exclude the loss making Levolux business, which has been sold. Management indicated its confidence in the future with the 1.5% increase in the interim dividend to 3.4p a share. The second half will be stronger than the first half, but pre-tax profit is expected to decline from £12.7m to £11.3m.
Songtradr Inc launched an agreed bid for music streaming technology developer 7digital Group (7DIG) and the 0.695p a share offer values the company at £19.4m. The share has not been at this level since September 2021. Songtradr is a music licensing company with a platform and technology that connects music rights holders to brands and content creators.
Clinical communications technology developer Feedback (FDBK) revenues are still modest, but they increased by 222% to £576,000. The £450,000 contract with a Sussex community diagnostic centre made a contribution to these revenues and is up for renewal. The new contract should be worth much more when it is renewed. This pilot project will help to show other potential clients that the technology works. Other NHS trusts are showing interest in the company’s services. There was cash of £9.23m at the end of November 2022, so Feedback can finance further development and cover losses.
WH Ireland cut its forecast for SaaS-based retail software provider itim Group (ITIM) because contract delays mean that revenues will be slower coming through. Annualised recurring revenues are £13m, which is lower than expected. Revenues recognised for 2022 will be slightly below previous forecasts and that increases the loss by £200,000 to £1.1m. The 2023 loss is expected to be the same. Net cash is £3.9m. The share price slumped by 24.8% to 37.5p. The June 2021 placing was at 154p.
The share price of credit provider Morses Club (MCL) fell a further 52.6% to a new low of 0.21p ahead of the cancellation of the AIM quotation. Asset Match will provide a matched bargains facility for the shares.
esports company Gfinity (GFIN) requires more cash by the end of March so management wants to raise £1.5m via a share issue. That will finance a corporate restructuring, invest in the Athlos technology platform and help the company to move towards breakeven. Gfinity has a market capitalisation of £3.1m, so the proposed share issue will be highly dilutive.
MAIN MARKET
Used car finance and property bridging loans provider S&U (SUS) continues to do well despite weak consumer confidence. Group net receivables have risen from £370m to around £420m in the six months to January 2023. Full year figures will be published on 28 March. Full year pre-tax profit is forecast to decline from £47m – due to low bad debt provisions – to £41.2m. Net debt was £192m at the end of January 2023, compared with committed facilities of £210m. The second interim dividend is 38p a share. The full year dividend total is expected to be 132p a share.
Hamak Gold Ltd (HAMA) has commissioned a geophysical survey for the Ziatoyah gold prospect in Liberia. This will map the mineralised sulphide bearing metadolerite units where high grades of gold have been intersected.
Andrew Hore