Home » Posts tagged 'mjh'
Tag Archives: mjh
Quoted Micro 15 August 2022
AQUIS STOCK EXCHANGE
Good Energy (GOOD) has invested a further £3.7m in EV charging app developer Zap-Map as part of a £9m fundraising. This values Zap-Map at £26.3m. Good Energy has also converted a £1m loan note into shares and it owns 49.9% of Zap-Map. Global fuel card and payment provider Fleetcor invested £5.3m and it can help Zap-Map expand internationally.
Media shell Lift Global Ventures (LFT) is buying financial PR and IR consultancy Miriad Ltd from the shell’s director Zak Mir. In the year to June 2022, Miriad Ltd generated revenues of £341,000 and an operating profit of £265,000. A general meeting will be held on 5 September. Lift Global Ventures will pay £200,000 in cash and 4.17 million shares at 4p each. The current share price is 1.125p. Zak Mir has transferred a holding of 8.33 million shares in Lift Global Ventures from Miriad Ltd to himself for nil consideration.
In the three months to June 2022, National Milk Records (NMRP) increased revenues from £5.72m to £6.09m. All parts of the business grew their revenues with genomics testing more than doubling revenues to £111,000. This is the final quarter of the financial year. Milk prices are increasing.
Altona Rare Earths (ANR) has estimated an exploration target of up to 56.6 million tonnes at up to 1.65% total rare earth oxide at the Monte Muambe rare earths deposit. The JORC mineral resource estimate should be published in the first quarter of 2023.
In the year to February 2022, Inqo Investments Ltd (INQO) reported a loss of R14.2 million after a R2.4 million impairment charge. There is a new reforestation project over 5,000 hectares of degraded land on the Kazuko private game reserve. Since the year-end, R2 million of director loans have been made available and a total of R1.44 million will be generated by the sale of the stake in Bee Sweet Honey Investment.
Asia Wealth Group Holdings Ltd (AWLP) reported a reduced 2021-22 profit of $11,266, down from $193,507, due to unrealised currency losses from Japanese Yen holdings and the write down of an investment. Net assets were $1.59m at the end of February 2022.
Invinity Energy (IES) shares commenced trading on the US OTCQX market and new US climate legislation should boost energy storage demand. The energy storage technology developer says the bill contains $369bn of clean energy investment, including tax incentives and grants.
Oscillate (MUSH) has £1.2m in cash as well as investments in three companies.
Close Asset Management has taken a 6.5% stake in Macaulay Capital (MCAP), which joined the Access segment on 29 July when £1.9m was raised at 20p a share. This week the share price rose to 25p. The strategy of the company is to originate potential investments and generate fees from these businesses by advising them and helping to raise money, as well as investing alongside other investors.
Chapel Down Group (CDGP) has replaced finnCap with Singer as its corporate adviser and broker.
Hydrogen Utopia International (HUI) has appointed Duncan Snelling as an engineering consultant and granted him options over up to 600,000 shares at 9.275p each. Each month, 50,000 options will vest, and they are exercisable between the first and fifth anniversaries of the appointment.
Vulcan Industries (VULC) has appointed Darren Taylor as a non-executive director. He was one of the shareholders in Aftech, which was acquired in March, and he has a 12.6% stake in Vulcan Industries.
Gathoni Muchai Investments, where Marula Mining (MARU) chief executive Jason Brewer is a substantial shareholder, acquired 1.5 million shares and 1.1875 million warrants exercisable at 4p each for a total of £16,000. Chairman Richard Lloyd bought one million shares at 1.07p each.
David Bull has stepped down as chief executive of Eight Capital Partners (ECP).
Goodbody Health Inc (GDBY) has shareholder approval to change its jurisdiction from Canada to Guernsey and delist from the CSE.
Rogue Baron (SHNJ) is changing its year end to 30 September. Discussions continue with the auditor about the year end stocktake at the Bin 1301 bar and the stocktake of tequila inventory.
AIM
Staffing provider Empresaria (EMR) benefited from a strong performance from its outsourcing division, which more than offset declines in profit in the regional divisions in the first half of 2022. Group net fee income was 15% higher at £32.6m. operating profit was 94% ahead at £3.5m. The Americas division had tough comparatives because of Covid-related healthcare business. Net debt is £10.8m.
Manchester-based Northcoders (CODE) has won a £4m contract from the UK government to provide scholarships for software training for individuals. This will be used to fund software development and data engineering skills training by Northcoders and it stretches into 2023. More than 85% of forecast 2022 revenues of £6.5m, up from £3m, are covered by contracted work, while 30% of the 2023 forecast of £10.5m is covered.
Self-storage sites operator Lok’nStore (LOK) published its full year trading statement showing self-storage revenues 17.3% higher. Stripping out new stores and the four stores sold in the period, the increase was 24.9%. There were increased occupancy levels and prices were raised by 13% over the year. Three new sites were opened during the year and Basildon, Bedford, Peterborough and Staines are all set to open in 2023.
Shares in Africa-focused oil and gas company Afentra (AET) returned from suspension following the publication of the admission document covering the proposed acquisition of interests in the producing Block 3/05 and the exploration Block 23 in Angola from Sonangol. The initial cost is $80.5m, with up to $50m of contingent consideration for the Block 23 interest. The acquisition cost is equivalent to $3.60/barrel – based on proved and probable reserves. In the first half of 2022, the net production from Block 3/05 was 4,700 barrels per day and it could generate $36m of cash a year at an oil price of $75/barrel. Trading in the shares had been suspended since 8 October.
MJ Hudson (MJH) raised £9.22m in a placing and PrimaryBid offer at 30p a share. The cash raised will be invested in the ESG division, help to pay deferred consideration and provide additional regulatory capital for the growing operations, particularly in Ireland.
Electrical retailer Marks Electrical (MRK) increased revenues in the first four months of the financial year by 14% to £27.7m. Marks Electrical is growing market share for major domestic appliances and consumer electronics. Televisions, vacuum cleaners, washers and air conditioning were strong categories. Rivals have been discounting prices and marketing costs are increasing, but management believes it can achieve profitable growth.
Geospatial software provider IQGeo (IQG) is acquiring automated planning and design software provider Comsof, which is profitable and cash generative. IQGeo currently includes similar software in its services, but it is supplied by a third-party. Swapping this for Comsof software will enhance margins.
Crestchic (LOAD) forecasts have been upgraded for the third time this year. The largest ever loadbank hire contract has recently been secured, which is helping trading momentum to continue to accelerate. The new factory has been completed. Demand from datacentres is strong and there is a recovery in demand from the oil and gas sector. Utilisation at record levels. The 2022 pre-tax profit forecast has been raised from £5.2m to £7.2m
Digital media company Digitalbox (DBOX) increased interim revenues by 40% to £1.9m and there was an increase in net cash to £2.4m. This is before the completion of the acquisition of the assets of TVGuide.co.uk, which will make a contribution in the second half. However, management is concerned about advertising levels in the second half.
MAIN MARKET
Used car finance and property bridging loans provider S&U (SUS) says group receivables increased from £340m to £370m and first half profit is greater than last year. Motor finance provider Advantage Finance receivables are £280m and Aspen property bridging loans have reached £90m with an average size of around £875,000 for loans this year.
Radiators company Stelrad Group (SRAD) grew interim revenues by 17% to £150m, even though volumes declined. Underlying pre-tax profit was 83% ahead at £13.9m. Net debt is £47.5m. Recently acquired DL Radiators will be earnings enhancing this year.
Hamak Gold Ltd (HAMA) executive director Karl Smithson bought 119,094 shares at 8.4p each, while non-exec Martin Lampshire purchased 122,000 at 8.18p each.
Andrew Hore
Quoted Micro 18 April 2022
AQUIS STOCK EXCHANGE
Brewer Adnams (ADB) increased its revenues from £50.7m to £57.4m in 2021 and the loss was reduced from £4.3m to £1.39m. There is no final dividend. Net bank debt was £11m. The pension liability more than halved from £11.2m to £5m. Beer volumes were maintained.
S-Ventures (SVEN) says headwinds in the economy have held back sales of its healthy snacks. Even so, like-for-like sales are currently 10% ahead of last year. Cost savings of £300,000 a year have been found at the Pulsin plant-based products business.
Watchstone Group (WTG) subsidiary WTGIL Ltd has lost its VAT appeal. It is considering whether to take the appeal to the Upper tax Tribunal.
Cannabis-related products supplier Voyager Life (VOY) has opened three stores and relaunched its website in the year to March 2022. The Ascend Skincare brand was launched. There was £14.3m in the bank at the end of March 2022. Monthly overheads were just under £50,000. In the 16 months to March 2022, revenue reached £178,000. Revenues are steadily growing. Voyager is still waiting for ingestible products to receive authorisation from the authorities.
KR1 (KR1) has invested $700,000 in Zeitgeist in return for one million ZTG tokens. Zeitgeist is an application specific blockchain for prediction markets and futarchy.
Eastinco Mining and Exploration (EM.P) says that Aterian Resources has been awarded a ten year mining licence for the Agdz copper and silver project in Morocco. Eastinco has agreed to acquire Aterian from AIM-quoted Altus Strategies (ALS). Once the Aterian acquisition is completed Eastinco plans to move to the Main Market.
Goodbody Health (GDBY) says subsidiary PhytoVista Laboratories has been granted a licence to handle Schedule 1 controlled drugs.
Chris Akers has increased his stake in TECC Capital (TEC) from 10.6% to 11.1%. Robert Johnson reduced his stake to below 3%. Chief executive Kiran Morzaria has bought 54,422 shares in Cadence Minerals (KDNC) at 18.37p a share.
Vulcan Industries (VULC) has extended two loans with £1.225m payable on 16 April 2023 and £629,000 on 4 July 2023.
EPE Special Opportunities (ESO) had net assets of 368.49p a share at the end of March 2022.
AIM
Recycling Technologies has pulled its AIM flotation after its chief executive stepped down due to personal reasons. It had apparently raised the money it was seeking but the late change meant that the company has decided to have a smaller private fundraising before having another attempt at floating on AIM.
Loadbanks maker and hirer Northbridge Industrial Services (NBI) is able to concentrate on its core business following the disposal of Tasman. In 2021, revenues from continuing operations were one-fifth higher with a greater proportion of hire business. Pre-tax profit trebled to £3.3m, before the restructuring and convertible loan note redemption costs of £7.6m, which were predominantly asset write-downs. There was a 1p a share dividend. The company is changing its name to Crestchic.
Online electricals retailer Marks Electrical (MRK) reported full year revenues that were 44% ahead at £80.5m and EBITDA margins are 9%. The fourth quarter revenues to March 2022 were 19% ahead at £20.7m. The comparatives are particularly strong because they were during a period of lockdowns when online sales made up a higher proportion of appliance sales. Pre-tax profit is still expected to decline from £6.8m to £6.1m in 2021-22 due to additional overhead costs.
Cambridge Cognition (COG) is building up its clinical trial business. Full year revenues increased by 50% to £10.1m and the digital health company moved into profit. There was £6.8m in the bank at the end of 2021. At least £7.5m of the year-end order book of £17m should be recognised in 2022. More contracts have been secured since the end of 2021.
Asset management services provider MJ Hudson (MJH) grew interim revenues by 48% to £23.4m with particularly strong growth in ESG-related services. Underlying pre-tax profit quadrupled to £1.6m. Net debt excluding leases was £13m at the end of December 2021. New business activity remains strong and there is no direct effect from the weak stockmarkets on revenues. Guernsey-based Saffery Champness Fund Services was acquired during the period.
Telematics firm Microlise (SAAS) reported revenues of £88.2m in the 18 months to December 2021. Annual revenues grew by 17%. Existing customers generated £35.6m in 2021 and there is hardly any customer churn. Annual recurring revenues are £38.9m.
AEX Gold (AEXG) has announced exploration results from the iron oxide, copper, gold project at Sava in southern Greenland. These showed that there is mineralisation. There are three high priority targets.
The lock-up period for shares in Poolbeg Pharma (POLB) distributed by Open Orphan (ORPH) ends on 20 April and new investors are hoping to buy up to £1.6m of shares at 5.9p each. The share price subsequently recovered to 6.7p, having been sliding in recent months ahead of the end of the lock-up period when there were concerns there could be a significant number of shares coming onto the market.
Ince (INCE) is going ahead with the acquisition of broker Arden Partners (ARDN) even though it is losing its nominated adviser status. The merger should be completed on 29 April.
MAIN MARKET
Financials Acquisition Corp (FINS) is a shell looking for a financial services acquisition, particularly in the insurance area. The focus is technology that is used to make the insurance sector more efficient. There was £150m raised at £10 a share. The share price ended the week at 997.5p.
It took a year to secure the transaction, but DG Innovate (DGI) has completed its reversal into Path Investments. The purchase of the electric drive and sodium-ion battery technology developer cost an initial £32.4m in shares at a deemed price of 0.6p a share, which was well above the market price. There was also £2.55m raised at 0.5p a share. The shares opened at 0.45p and ended the week at 0.305p.
Materials developer HeiQ (HEIQ) estimates that revenues were $57.9m thanks to a good fourth quarter. This is despite deferring revenues and $1m in operating profit from technology milestones for the agreement with the Lycra Company for its AeoniQ material into 2022. Operating profit is expected to be $3.4m, compared with the $4m forecast. Revenues are expected to grow by one-fifth this year.
Natural ingredients supplier Treatt (TET) grew interim revenues by 9% to £66.3m. The operating profit will be second half weighted.
Andrew Hore
Quoted Micro 17 January 2022
AQUIS STOCK EXCHANGE
Failed bidder Ecotricity has requisitioned a general meeting at Good Energy (GOOD) in order to remove Will Whitehorn as a director and to stop the company selling generating assets without shareholder approval. The meeting will be held on 11 February. Ecotricity owns 25% of Good Energy. The sale of the generating assets is an important part of the company’s strategy. The cash would be used to reduce borrowings and invest in newer businesses, such as Zap-Map and other digital businesses.
Samarkand Group (SMK) has signed an exclusive distribution agreement with AIM-quoted Venture Life (VLG). The e-commerce technology platform will be the exclusive distributor of mouthwash Dentyl Dual Action and halitosis mouthwash Ultradex in China for an initial term of five years.
Hydrogen Utopia International (HUI) has signed a letter of intent with RZZO, which is a regional municipal waste management company in Ostrow Wielkopolski in Poland. RZZO will provide a plot of land where a HUI waste plastic to hydrogen plant can be sited and also source the plastic waste. They will seek funding from the EU as well as Polish grants. The heat would be fed into a district heating system.
Eastinco Mining and Exploration (EM.P) has identified 11 new pegmatite zones at its HCK joint venture in Rwanda. These are potential tantalum-niobium bearing zones. The sampling should be completed in February.
Apollon Formularies (APOL) has signed agreements with more than a dozen cannabis cultivators. They all have the appropriate licences. It has also set up the Apollon Kannabiz Cooperative to work with local Jamaican farmers. Rod McIllree has been appointed as a non-exec director. He owns 29.1% of Apollon.
Western Selection (WESP) cut its stake in Northbridge Industrial Services (NBI) from 9.65% to 6.21%, while Harwood Capital has raised its stake to 16.9% to 20.4%. Western Selection raised £1.7m from the disposal.
EPE Special Opportunities Ltd (ESO) had net assets of 510.95p a share at the end of 2021.
Sativa Wellness Group Inc is changing its name to Goodbody Health Inc (GBDY).
Dispersion Holdings has changed its name to AQRU (AQRU), which is aligned with the brand of its retail online platform for lending cryptocurrencies.
Rutherford Health (RUTH) will leave Aquis on 25 January.
AIM
Frontier IP (FIPP) says the increase in the value of tis stake in the Nasdaq-listed Exscientia will be an important component of the rise in NAV at the end of 2021. NAV was 69.8p a share at the end of June 2021. A small portion of the shareholding has been sold and further sales are likely. This cash can be ploughed back into Frontier IP and help with new investments.
Legal services provider Gateley (GTLY) reported organic growth of 23% in the six months to October 2021. That partly reflects the weak comparative figures as well as underlying growth. All four divisions grew revenues with only the property division having a small contribution from an acquisition. Utilisation levels improved from 79% to 84%. Underlying pre-tax profit increased from £7.5m to £8.5m. The interim dividend was one-fifth higher at 3p a share. Management is seeking acquisitions to add to organic growth. There is normally a second half weighting to the figures.
Strong trading at Metro Rod and Metro Plumb is the major factor behind the growth at Franchise Brands (FRAN) and the B2C franchise brands are recruiting more franchisees. Full year pre-tax profit is expected to increase from £4.8m to £6.4m. Net cash was £8.6m at the end of 2021.
Corporation Financeiere Europeenne acquired shares in CIP Merchant Capital (CIP) taking its stake to 31.8%. This has sparked a mandatory bid at 55p a share. This is a substantial discount to net assets of 87.6p a share. The plan is to save the costs of being a quoted company.
Cornerstone FS (CSFS) has come to an agreement with Robert Lee concerning the £100,000 convertible loan facility he had promised. Instead of being convertible at a fixed price of 61p a share the convertible could be converted at the average mid-market price of the shares for the five dealing days prior to the drawdown of the loan if this is lower. This will mean that it is much more dilutive unless there is a sharp rise in the share price. The international payments company says 2021 revenues should be £2.3m with more generated by direct sales.
Specialist IFA Frenkel Topping (FEN) is paying up to £10m for Cardinal Management, which provides patient support at hospitals following traumatic events. This provides access to potential clients at an early stage.
Heart disease risk assessment technology developer GENinCode (GENI) has filed a pre-submission for its Cardio inCode-SCORE test with the FDA in the US. This will provide information ahead of a future marketing application. The test combines genetic risk with clinical risk to assess an overall risk of heart problems for a patient.
Oil palm plantations operator Dekel Agri-Vision (DKL) generated record figures in 2021. December crude palm oil production more than doubled and the total production for the year was 39,953 tonnes, up 17.5% on the previous year. Extraction rates are starting to improve. The average crude palm oil price was $868/tonne, which is 44% higher than in 2021. The crude palm oil price is currently more than $1,000/ tonne
Minds + Machines (MMX) decided to return the remaining cash to shareholders and cancel the AIM quotation. There will be 10.4p a share tender offer.
Vector Capital (VCAP) has increased its debt facilities by £5m to £35m. In 2021, the total loan book rose by 27% to £46.3m. This is ahead of expectations.
Capital equipment supplier Mpac Group (MPAC) says it traded in line with expectations in 2021. A pre-tax profit of £8.2m is forecast. The closing order book was £77m. The 2021 results will be published on 14 March.
Holders Technology (HDT) is paying a special dividend of 2p a share on 28 January in addition to a final dividend which will be announced with the 2021 figures. The interim dividend was 0.5p a share. This follows the disposal of some of the company’s PCB assets for around £1.7m.
Mosman Oil and Gas (MSMN) has dropped its plans for a 100-for-one share consolidation after negative feedback from shareholders.
MJ Hudson (MJH) has gained a multimillion contract to advise the ACCESS local government pension scheme over a seven-year period. This covers eleven local authority pension schemes. They have £35bn in pooled assets.
MAIN MARKET
Cash shell Electric Guitar (ELEG) joined the standard list on 11 January. It raised £1.2m at 3p a share and the share price has risen to 3.7p. The current NAV is 1.78p a share, which is effectively all cash. Electric Guitar is a shell seeking acquisitions in the digital advertising sector. There could be opportunities to consolidate smaller agencies. A suitable target will be run by management with a good record, be involved in growth areas, have good quality clients, an existing IT platform and be scalable. It should be near to cash generation. The company acquired would have an enterprise value of at least £5m.
East Star Resources (EST) has gained readmission to the standard list following the acquisition of Discovery Ventures Kazakhstan. A placing raised £3.1m at 5p a share.
Canadian Overseas Petroleum (COPL) has made a significant oil discovery in Wyoming. The discovery has between 1.5 billion and 1.9 billion barrels of oil in place.
PYX Resources Ltd (PYX) has begun sales of rutile from its Mandiri deposit in Indonesia with production of ilmenite and leucoxene starting later in the year.
One Heritage Group (OHG) is acquiring Seaton House in Stockport for £675,000. This is an office building, and the plan would be to convert it into up to 30 apartments. The gross development value is £5.6m.
Andrew Hore
Quoted Micro 29 November 2021
AQUIS STOCK EXCHANGE
Good Energy (GOOD) is selling its 47.5MW of renewable generation capacity and then reinvest the cash. The portfolio is valued at £56.8m, with £39.1m of related debt, and could be sold in the first quarter of 2022. Good Energy is investing in the latest funding round for Zap Map and the disposal cash may be received at around the same time. The company is investing in its decentralised energy services platform, and this will be rolled out next year. There will be further investments in these areas. Competition has fallen away in the domestic energy supply market and management believes that more normal conditions could return next spring. There will be £2.5m of additional costs to cope with the knock-on effect of higher prices and the exit of rivals. There is still a possibility of achieving full year expectations.
Oberon Investments (OBE) nearly trebled revenues in the first half with the growth coming from the broking business. In the six months to September 2021, revenues improved from £1.2m to £3.4m, while funds under management were £765m at the end of the period. Investment management fees doubled, but corporate finance income jumped from £89,000 to £1.56m. Oberon moved from a loss of £514,000 to a pre-tax profit of £128,000. New product launches should enhance growth in funds under management, while the broking side remains busy.
Non-fungible tokens (NFTs) investor NFT Investments (NFT) is investing $250,000 in Afterparty Inc, a platform where creators generate revenues from music events. This was set up by former Disney executive David Fields.
Eastinco Mining and Exploration (EM.P) plans to acquire battery metals explorer Aterian Resources and move to the standard list. There will be a ten-for-one share consolidation and the company’s name will change to Aterian. AIM-quoted Altus Strategies (ALS) will become a major shareholder. A fundraising has raised £850,000 from convertible loans and £100,000 from shares at 1.5p each, which is the conversion price of the convertible loans. Aterian Resources has a portfolio of 15 exploration projects.
Investment company Gunsynd (GUN) had net assets of £6.3m, including £1.07m of cash, at the end of July 2021. Investee company Low6 still intends to float.
KR1 (KR1) has contributed 350,000 Polkadot tokens to the Acala Network auction. It already has more than 10.2 million Acala tokens and more will be received after 96 weeks, when the Polkadot tokens will be returned. A further 350,000 Polkadot tokens were contributed in the auction of smart contract platform Moonbeam Network. Again, these will be locked up for 96 weeks and a undecided number of Moonbeam tokens will also be received.
Newly crowned Aquis company of the year DXS International (DXSP) reported a small dip in interim revenues from £1.72m to £1.62m, while pre-tax profit fell from £151,000 to £21,000. The second half is expected to be stronger, although additional costs will hold back profit. The healthcare IT provider continues to develop its cloud-based product and it is accelerating the development of products aimed at long-term conditions, such as diabetes.
Rogue Baron (SHNJ) is closing its Bin 1301 bar in Washington DC and concentrate on the bigger De Rhum Spot site.
Pioneer Media Holdings (PNER) is planning to acquire NGMI Labs Inc in return for four million shares. Pioneer has 45 days to undertake due diligence. NGMI was founded by three people with significant experience in the decentralised autonomous organisation (DAO) tokens sector.
Tectonic Gold (TTAU) expects to receive a tax rebate of $275,000 by the year end.
Yooma Wellness Inc (YOOM) has persuaded ASDA to stock 17 of its Vitality CBD products.
Scott Livingston has taken a 5.54%, not 5.16%, stake in Silverwood Brands (SLWD).
AIM
Marshall Motor Holdings (MMH) says that 64.4% shareholder Marshalls of Cambridge is thinking about selling its stake. Constellation Automotive has made it clear that it is interested.
Alien Metals (UFO) has acquired 30% of the Munni Munni project in Western Australia from ASX-listed Platina Resources for A$2.23m in shares and cash. This is one of the largest platinum group resources in Australia and it is near to the Elizabeth Hill project, which has platinum, silver, copper and nickel potential. Munni Munni has a historic non-compliant JORC resource estimate that suggests that there is 1.14 million ounces of palladium, 830,000 ounces of platinum, 152,000 ounces of gold and 76,000 ounces of rhodium. Artemis Resources owns the other 70%.
Telecoms billing and customer relationship management software provider Cerillion (CER) more than doubled its full year pre-tax profit from £3.7m to £8.5m, helped by much higher software revenues. New orders are building up and the order book is at record levels. The dividend was raised from 5.5p a share to 7.1p a share.
Driving safety technology developer Seeing Machines (SEE) has won its largest ever driver monitoring systems (DMS) order and raised £30.4m at 11p a share on the back of this announcement. The cash will be used for technology development and boost sales resources. The DMS deal, which has come through Magna International, is worth A$120m. In the year to June 2021, revenues improved from A$39.9m to $46.6m, while the loss was substantially reduced to A$16.7m.
Credit hire and legal services firm Anexo (ANX) has won a new contract with MCE Insurance to provide claims services for non-fault motorcycle accidents, which tends to be higher margin business. This will boost market share.
Appreciate (APPS) made the expected, although lower, loss in the first half, but the 50% increase in the interim dividend to 0.6p a share suggests confidence in the future. Revenues were 50% ahead at £41m with the faster growth coming in the consumer business even though the Christmas savings order book is lower. Appreciate has withdrawn from lower margin corporate business and there is volatility in bookings in recent months.
Asset management services provider MJ Hudson (MJH) achieved organic revenue growth of 14% and it is on course to grow full year revenues from £25.5m to £31m, helped by acquisitions, which would produce a pre-tax profit of £4m. Demand for ESG services is growing rapidly. On top of that, there is increasing outsourcing of the services provided by MJ Hudson.
Ashtead Technology (AT.) provides services and rents equipment to the offshore oil and gas and offshore wind markets. Services can be provided for installation, ongoing maintenance and decommissioning. It raised £15.5m at 162p a share to help it to grow internationally. The offshore wind services market is set to grow at 19% a year up until 2025. The shares ended the week at 162p.
Eneraqua Technologies (ETP) is well positioned to take advantage of the increasing focus on energy and water efficiency. It raised £12m at 277p a share and the shares ended the week at 285p. Eneraqua Technologies supplies and installs technology that improves energy and water efficiency in multiple occupancy social housing and commercial projects. The systems installed include the company’s Control Flow HL2024 technology, which will be manufactured in Spain. The order book for between August 2021 and January 2022 includes £22m of contracted revenues and there a further £21.3m of contracted revenues for the following two years.
Brickability (BRCK) is paying an initial £3.3m for HBS NE, which takes it into the renewable energy products market. It supplies and maintains solar, battery storage and electric vehicle charging. Brickability has relationships with housebuilders, which are being required to install EV charging points in new homes. Even before cross-selling, the deal is earnings enhancing.
Cyber security services provider Shearwater (SWG) reported a small decline in interim revenues due to lower services sales. Software revenues were flat, but margins improved. There is 50% visibility for second quarter revenues.
Treated sustainable wood producer Accsys Technologies (AXS) increased interim revenues by 31% in the first half. Accoya production remains limited because the new reactor will not go into service until next year. The Hull Tricoya plant will should commence production next July. The plans for the potential US Accoya plant are also progressing with a final investment decision expected in the next few months.
Omega Diagnostics (ODX) grew its health and nutrition revenues to pre-pandemic levels. Sales of the global health division also grew but Covid-19 test sales were disappointing. DAM Health has ordered £750,000 of tests since the end of the half year. Net cash was £3.9m at the end of September 2021. Omega remains loss making, and it is difficult to predict how quickly revenues will grow. There are some orders coming in for the VISITECT CD4 test.
Workflow technology provider ActiveOps (AOM) has improved gross margin and interim revenues grew by one-fifth. Annual recurring revenues are running at £19.8m.
MAIN MARKET
Packaging manufacturer and distributor Macfarlane (MACF) is trading ahead of expectations. Revenues are 25% higher than last year and the pre-tax profit is ahead of 2020. There are cost pressures and some customers have had supply problems elsewhere so their demand for packaging has reduced. Net debt was £2m at the end of October 2021.
BATM Advanced Communications (BVC) has announced a dividend of 0.74p a share.
JLEN Environmental (JLEN) is targeting a dividend of 6.8p a share in the year to March 2022. The interim dividend is more than covered by earnings. The portfolio of renewable energy and environmental assets has been diversified in recent years and that means that the company is not as dependent on revenues from wind power, which were hampered by low wind speeds in the period. Other assets performed well and there are plenty of investment opportunities in Europe. NAV is 98.4p a share.
Marine technology developer OTAQ (OTAQ) has secured a multi-year contract with Minnowtech. It will supply sonar technology for the jointly developed shrimp farming technology. Commercial launch is planned in Asia and the initial order will be more than $200,000. OTAQ owns 15.2% of Minnowtech. A major customer has given notice and OTAQ is seeking additional sources of funding.
Oxford Cannabinoid Technologies (OCTP) has signed an agreement with Dalriada Drug Discovery Inc of Canada, which will provide research and development services on compounds that Oxford Cannabinoid has access to via the Canopy Growth Corporation agreement.
Andrew Hore
Andrew Hore – Quoted Micro 29 March 2021
AQUIS STOCK EXCHANGE
New Apex segment entry Samarkand (SMK) has got off to a strong start. At one point, shares were changing hands at 142p, against the placing price of 115p, but they ended the week at 123.5p (120p/127p). There was £15.4m raised after expenses. The company has developed e-commerce software technology known as Nomad. There are a number of modules and these can be used by clients to sell their products in China. There are 105 special cross-border e-commerce zones in China. This market is expected to reach £138bn in 2021. Samarkand also sells its own brands in China and some of the money raised will be used to buy other brands.
Incanthera (INC) has raised £1.14m at 12p a share. This will provide enough cash until the middle of 2022. There are discussions ongoing with two potential partners for the Sol skin cancer prevention product.
Imperial X (IMPP) has announced its intention to gain a standard listing and raise up to £1.5m. The company will change its name to Cloudbreak Discovery.
Rutherford Health (RUTH) has secured a £40m investment from Equitix Investment Management. In return the freehold of the South Wales centre will be transferred and there will be other security. There will be an initial investment of £25m with the rest paid in three equal instalments. The cash will be used for investing in infrastructure. The current debt of £18.6m will be repaid.
Arbuthnot Banking (ARBB) generated flat operating income of £72.5m, while there was a £1.1m loss. Management is optimistic about a strong rebound if the government continues with its current roadmap out of lockdown. There is a growing demand for lending.
Capital for Colleagues (CFCP) had NAV of 57.97p a share at the end of February 2021. That is before the sale of the investment in Anthesis for £1.15m. That leaves the company with £2.64m in cash.
In the first 18 days of March Bin 1301, a bar in Washington DC where Rogue Baron (SHNJ) has a stake, generated sales of $35,330, nearly double the same time the previous year. That is despite Covid restrictions.
SulNOx Group (SNOX) has appointed A and S International as a distributor of lubrication and bioremediation products.
EPE Special Opportunities (ESO) had an NAV of 437.63p a share at the end of January 2021, which was a 38% increase on the year before thanks to the strong performance of the Luceco (LUCE) share price. EPE is considering raising more cash through a loan note issue. That would provide further cash for investment.
Altona Rare Earths (ANR) has secured a memorandum of understanding for the acquisition of a rare earths mining project in Mozambique. The plaln is to buy 70% of the Monte Muambe rare earths project, via an earn-in.
First Sentinel has resigned as corporate adviser to Block Commodities (BLCC) after less than one month in the position. Block has entered into an option in partnership with Century Cobalt Corporation to acquire two million seeds, which can be used to produce medicinal grade cannabis. Block would have to issue more than 142.8 million shares at 0.07p each if the option is taken up.
Chris Akers has increased his stake in Quetzal Capital (WENP) from 15.2% to 17.2%.
Upper Thames Holdings has changed its name to Valereum Blockchain (VLRM).
S-Ventures (SVEN) has applied for an OTCQB quotation in the US.
AIM
Hormonal disease treatments developer Diurnal (DNL) says that Chronocourt, also known as Efmody could gain approval in the EU by the summer and that could enable a commercial launch in some European markets in the third quarter. Chronocourt/Efmody is a modified release hydrocortisone used to treat adult and adolescent patients with congenital adrenal hyperplasia, which is caused by a block in cortisol production. Potential sales are greater than for Alkindi, which is aimed at children.
A potential management buyout for Cambria Automobiles (LON: CAMB) at 80p a share would value the motor dealer at £80m. This is a premium of more than one-fifth to the previous market price.
Digital healthcare company Cambridge Cognition (COG) substantially reduced its loss in 2020 and is on course to move into profit this year. Revenues increased and expenses were reduced. There is a strong order book. There was £3m in the bank at the end of 2020. Voice-based service NeuroVocalix is set to be launched this year.
Cyber security firm ECSC (ECSC) grew recurring revenues by 22% to £2.4m last year. Even so, total revenues fell 4% to £5.7m due to a tough second quarter. The loss fell from £639,000 to £153,000. Net cash is £1.1m. There has been a good start to the new year with a clutch of contract wins.
STM Group (STM) has sold its trust and company services business for £2.45m plus net assets at completion of around £570,000. This has been non-core for some time. This will reduce short-term earnings – although there could be some cost savings – but the company can focus on pension administration and life assurance.
Judges Scientific (JDG) continued its record of increasing the ongoing dividend with a 10% increase to 55p a share. Pre-tax profit fell from £17m to £13.7m in 2020 and it could recover to £16m this year.
MJ Hudson (MJH) managed organic revenue growth of 3.6% in the first half, even though there was a lack of new fund launches. Cross-selling is paying off. The North American operations are more significant following recent acquisitions. Further acquisitions will help to increase the scale of the business.
Chariot Oil and Gas (CHAR) is acquiring AEMP, an African renewable energy developer, for up to $2m. There are discussions with mine operators that require 500MW of electricity.
MAIN MARKET
Foams manufacturer Zotefoams (ZTF) almost maintained its pre-tax profit last year thanks to strong sales to the footwear sector. Revenues were 2% ahead at £82.7m, but pre-tax profit was 5% lower at £8.3m. The final dividend is 4.27p a share. The new factory in Poland has started production and capital investment should be lower this year. Net debt was £35.6m at the end of 2020 and this figure should fall this year. This year pre-tax profit should improve to £9.3m.
LED lighting and wiring accessories supplier Luceco (LSE: LUCE) more than doubled 2020 pre-tax profit from £15.8m to £34m, even though revenues barely increased. Margins improved significantly, but there is still potential to improve LED operating margins. A strong second half offset the more difficult first half. The dividend is 6.2p a share. Net debt has fallen to £18.3m.
Oxilio has decided to exercise its option with drug developer Nuformix (NFX) to licence NXP001 for oncology indications. A licence agreement is being worked on. Once completed it will trigger a second upfront payment. Future royalties for any commercial treatments are capped at £2m a year.
Books publisher Quarto Group Inc (QRT) reported a dip in revenues from $135.8m to $126.9m, while adjusted pre-tax profit improved from $5.1m to $7.9m. Capitalised development costs were reduced from $23.8m to $20.3m, although the amortisation charge was higher at $28.6m. Strong cash flow combined with a share issue helped reduce net debt from $50.5m to $19.7m.
Dukemount Capital (DKE) is moving into the flexible power sector. A 50%-owned joint venture called HKSB will develop two 11KV gas peaking facilities that will produce 10MW for a total cost of £6.25m. The plan is to secure 15-year, CPI-linked contracts for each site.
Residential property developer One Heritage Group (OHG) had net assets of 9.25p a share at the end of 2020. There was an interim loss.
Andrew Hore
Andrew Hore – Quoted Micro 4 January 2021
AQUIS STOCK EXCHANGE
BWA (BWAP) has been unable to sell Kings of The North Corp (KOTN) back to St Georges Eco-Mining and there are problems with the title to claims held by KOTN. It appears that two licences had not been renewed by St Georges. Three more licence areas are being reviewed. St Georges has claimed C$200,000 for work it is claimed that has not been done. There is already a claim for cash from a KOTN director and there could be further claims against directors of KOTN and St Georges.
Gunsynd (GUN) says trading in investee company Empress Royalty commenced on the TSX Venture Exchange. Gunsynd invested £146,000 in October and owns 1.4% of Empress.
MiLOC Group Ltd (ML.P) has terminated its endorsement agreement with BrandKing Worldwide and First Strong Workshop for AKFS+ haircare products and also ended the commission agreement with CN Workshop. In the recent interims, inventories increased in part due to AKFS+ haircare products.
Vulcan Industries (VULC) generated revenues of £5.74m and lost £2.96m in the period between 24 October 2018 and March 2020. This was before Vulcan raised £2.2m. The subsequent quarter trading was poor, but the second quarter was ahead of expectations. Further acquisitions have been identified.
TruSpine Technologies (TSP) lost £448,000 in the six months to September 2020. There was £567,000 in the bank.
Evrima (EVA) has sold a commercial property in Leeds for £200,000, which after costs is slightly below its purchase price in 2017. The cash will be reinvested in Kalahari Key Mineral Exploration.
AIM
Small business finance provider Vector Capital (VCAP) joined AIM on 29 December. It raised £3.1m at 38p a share and ended the week at 39.5p. In the six months to June 2020, revenues increased from £1.59m to £2.13m, while pre-tax profit jumped from £954,000 to £1.26m, even though new loans were not issued in the second quarter. The business has been profitable for the past four years. The loan book was worth £34.7m at the end of September 2020. The Jain family owns 80.85% of Vector Capital. Prior to flotation the original shareholders received a total dividend of £400,000.
Xpediator (XPD) has sold its online shopping logistics business in order to concentrate on the core freight business. EshopWedrop Holdings was losing money and the total consideration is £300,000 paid in equal instalments over three years. The book value was £700,000. Xpediator will achieve annual cost savings of £350,000 following the disposal.
MJ Hudson (MJH) is acquiring fund performance analytics business PERACS and this will widen the services it can provide to the asset management sector. The initial payment is 586,016 shares and there is deferred consideration in cash and shares over a three-year period.
Shareholders voted against the reappointment of Ian Visagie as a director of Goldplat (GDP).
Cyber security services provider Shearwater Group (SWG) says that October and November revenues were 39% ahead of the same period last year and the momentum continued into December.
UFG Asset Management has a total shareholding in Trans-Siberian Gold (TSG) of 54.9%.
DBAY Advisers has sold more of its stake in Wynnstay Group (WYN) and it has fallen to 3.7%.
MAIN MARKET
National World (NWOR) is paying £10.2m for the former Johnstone Press group of newspapers. No debt is being taken on. JPI Media Publishing is the third largest local news group in the UK and includes titles, such as Yorkshire Post, Portsmouth News and the Scotsman. JPI is estimated to have generated revenues of £85m and EBITDA of £6m in the past year. National World will use the assets to build a local online news publishing model. There is an initial cash payment of £5.2m with two further instalments. National World is issuing £8.425m of 10% loan notes and plans to issue more. Trading in the shares remains suspended until a prospectus is published and it may not resume until April.
Oil-focused shell Wildcat Petroleum (WCAT) joined the standard list on 30 December. It raised £600,000 at 0.1p a share and was capitalised at £2.4m.
Argo Blockchain (ARB) is investing $100,000 in hashrate management platform Luxor Technologies. The technology can help cryptocurrency miners to increase their returns.
Standard list shell Rockpool Acquisitions (ROC) is still talking to Greenview Gas in its attempt to find a Northern Ireland-based acquisition. Greenview has downgraded its 2020-21 pre-tax profit expectation from £1.4m to £1m. Rockpool had loaned more than £1m, including interest, to Greenview. The initial loan agreement was three years ago. In November, this was repaid out of new borrowings.
Marwyn Acquisition Co I Ltd (MAC1), one of three shells floated by Marwyn during December, has appointed Vin Murria as chairman. She has built up two software companies on AIM and then sold them. The appointment means that the focus of this shell will be the software sector, with the first acquisition likely to be worth more than £100m. Last month, Vin Murria joined the board of AIM shell Summerway Capital (SWC) and it is also seeking software and digital acquisitions, but it is likely to be assessing smaller acquisitions.
Andrew Hore
Andrew Hore – Quoted Micro 23 March 2020
AQUIS STOCK EXCHANGE
Gin and spirits supplier British Honey Company (BHC) is using spare capacity in its distillery to produce # alcohol sanitisers. There is a shortage of sanitisers due to the coronavirus and HMRC has given permission for British Honey to produce denatured alcohol. The sanitisers are made with 70% alcohol and extracts of honey and green tea. Longer-term, the strategy is to buy other spirits brands to use spare capacity. British Honey started off as a honey producer and moved into craft spirits infused with honey in 2017. It has a computer-controlled, 1,000-litre capacity still and bottling facility with a capacity of 1.5 million bottles a year. Ingredients can be tracked. There has been £4m invested in this infrastructure. The existing products use a small proportion of this capacity. The company also produces spirits on behalf of third parties. Discussions have begun with some potential acquisitions. British Honey joined Aquis Stock Exchange at the beginning of the week and raised £4.25m (£3.88m after expenses) at 110p a share. Advanced assurance of eligibility for the Enterprise Investment Scheme has been obtained. The initial market capitalisation was £10m. Cairn is corporate adviser and Stanford Capital Partners is broker.
Sativa (SATI) is launching a cannabigerol (CBG) and alcohol-based hand sanitiser. CBG is thought to be effective as an antibacterial product and could combat superbugs.
Energy supplier Good Energy (GOOD) reported better than expected 2019 pre-tax profit. Underlying pre-tax profit still dipped from £2.3m to £2.1m due to lower gross margins. Profit is expected to bounce back to £3.1m in 2020. Both business and domestic customers were higher last year. The total dividend has been increased from 3.5p a share to 3.7p a share. Net debt was £39.2m at the end of 2019.
Brewer Shepherd Neame (SHEP) has decided not to pay the interim dividend of 6p a share announced the week before. The sharp downturn in trading and subsequent closure of pubs due to COVID-19 means that Shepherd Neame is also cutting capital investment and the board is taking a one-fifth cut in pay. Rent receipts from tenants were suspended from 16 March.
KR1 (KR1) has generated $168,000 from selling ATOM, taking the total raised from disposals to $290,000. It still holds nearly 17,000 ATOM.
Sheltered housing developer Walls and Futures REIT (WAFR) has outperformed its benchmark for a third year in a row. The MSCI UK Residential index increased by 4.4% in 2019, while Walls portfolio increased by 23%.
BWA Group (BWAP) says that its subsidiary has been awarded an exploration licence for an area known as Dehane in central Cameroon. The focus is rutile sands and other minerals. The permit is for three years and the financial commitment in year one is £275,000, followed by £207,000 in each of the next two years. Tri Castle Investments is subscribing £100,000 at 0.5p a share.
First Sentinel (FSEN) has raised £389,000 at 20p a share for working capital. VI Mining (VIM) raised £56,000 via a placing at 15p a share that was curtailed because of COVID-19. Further cash will be raised in the future.
Eastinco Mining and Exploration (EM.P) has secured a $200,000 facility from Augustin Corp, which is owned by a trust related to Eastinco executive chairman Charles Bray. The annual interest rate is 6 percentage points above commercial lending rates and the facility lasts for up to 18 months.
SAPO (SAPO) is holding a general meeting on 14 April to gain shareholder approval for increasing the share capital. Executive chairman Dr Keith Harris has been issued 20 million shares at 1p a share. The consideration will be paid by the end of 2024.
Belvedere Leisure Resorts (BELV) believes that once normality is resumed it can accelerate its resort development and deliver phase one on time.
Dozens Savings (DS07) says that 795 investors have subscribed for company bonds.
Trading in Dana International (DANA) shares remains suspended. The property investor is still trying to gain full information about share transfers.
Christian Taylor-Wilkinson has become interim chief executive of Altona Energy (ANR) following the resignation of executive chairman Qinfu Zhang.
AIM
Sales of COVID-19 tests by Novacyt (NCYT) continue to accelerate. It has received orders worth more than £8.7m in a six-week period. Manufacturing capacity is being increased.
Synairgen (SNG) is about to start a phase II trial for SNG001 for the treatment of an initial 100 patients with mild-moderate COVID-19. Initial results should be available by the summer. SNG001 is inhaled interferon beta, which has shown benefits in the treatment of SARS. The existing COPD phase II trial has been paused, but initial results suggest that there is clinical benefit.
Best of the Best (BOTB) would have been in trouble a decade ago when it generated its competition entries from airports and other areas of high footfall. Having gone online, the competitions organiser has continued to prosper. Additional marketing investment has helped the 2019-20 performance to be above expectations. The pre-tax profit forecast for the year to April 2020 has been raised from £2.6m to £3m.
Payment systems provider PCI-Pal (PCIP) has won a contract for its Agent Assist product with a UK government organisation. The annual contract value is £565,500.
Manx Financial (MFX) is buying back the 12.94% shareholding owned by Aaron Banks. Manx intends to pay £1.61m for the shares and then cancel them. This cash will become a loan to Manx and an existing £483,500 convertible will be added to the sum. Banks has requisitioned a general meeting at iodine manufacturer Iofina (IOF) in order to remove Lance Baller from the board and become a director himself. Banks does not intend to make a bid for the company.
Mobile payment services provider Bango (BGO) is still set to move into profit in 2020. End user spend doubled last year.
Indigovision (IND) is recommending a 405p a share cash bid from Motorola Solutions. This values the video security technology company at £30.4m. In 2019, pre-tax profit was $1.3m.
MJ Hudson (MJH) grew organic revenues by 12.5% in the first half. The asset management services provider has net cash of £20.1m following last year’s flotation. The acquisition of Meyler will expand the range of services provided in the US. The customer base is predominantly long-term and closed ended funds. A full year pre-tax profit of £1.1m is forecast.
Big Sofa Technologies (BST) has put itself up for sale and trading in the shares is suspended. The video and data analytics technology developer needs additional cash and it is difficult to raise funds in the market when there is so much uncertainty. The company expects proposals by the end of April.
The Wressle oil field development in north Lincolnshire is set to commence production in the second half of 2020 and Egdon Resources (EDG) has a 30% stake and is operator. Europa Oil and Gas (EOG) and Union Jack Oil (UJO) also have interests. The breakeven oil is estimated at $18/barrel. Production could start at 500 barrels a day. An application has been allowed against North Lincolnshire council for costs relating to delays in gaining a permit.
Diagnostic and precision testing services provider Diaceutics (DXRX) boosted revenues by 30% last year following its flotation. Although gross margins improved, a significant increase in headcount meant that pre-tax profit dipped to £500,000. The initial benefits of the investment in the business are showing through growth in Asia and other regions.
Regional property investor Real Estate investors (REI) increased its dividend by 7% to 3.8p a share. Like-for-like rental income was slightly lower at £16.9m and the weak retail property market led to a 3% reduction in EPRA NAV to 67.4p a share. Loan to value is 46.7%. The Midlands property market is strengthening ahead of the Commonwealth Games in Birmingham. An improvement in NAV to near-69p a share is forecast for 2020.
Xeros (XSG) has signed a joint development agreement with a global commercial laundry business. XFiltra micro-particle filtration technology will be included in the partner’s commercial washing machines. The EU plans to have micro-particle filtration in use by 2026. Xeros is likely to need to raise more cash next year.
Oncimmune (ONC) says NICE has completed a positive review of EarlyCDT Lung and believes that it can help in the early diagnosis of lung cancer.
MAIN MARKET
Trading in the shares of Boston International Holdings (BIH) has been suspended ahead of the proposed acquisition of invoice factoring company Alexanders Discount Ltd, which is based in the South East. Alexanders Discount accounts for the year to November 2019 are for a dormant company and the assets were worth £4. The standard list shell floated in October 2016.
Telecoms services provider Toople (TOOP) says that the integration of DMSL is ahead of plan and it has won two new contracts.
BATM Advanced Communications (BVC) is partnering with Novamed for an at-home COVID-19 diagnostic kit. The kit should be completed within four months.
AIQ Ltd (AIQ) has signed a conditional share purchase agreement for Alchemist Codes, a Malaysian IT services developer. AIQ is paying £2.3m in shares.
Andrew Hore