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Quoted Micro 10 February 2025
AQUIS STOCK EXCHANGE
Third quarter revenue from emissions reduction additives supplier SulNOx Group (SNOX) more than doubled to £208,000 compared to the same period last year. Volume growth was 88.7%. There was cash of £2.5m at the end of 2024. There are 44 shipping companies evaluating the additives and there are more set to sign up. Crystal is the first cruise operator to evaluate the additive, and it made an average fuel saving of 3.4%.
Rogue Baron (SHNJ) has decided to change its strategy from drinks, because of a lack of market support for the sector, to natural resources, particularly in North America. The spirits business will be sold. The disposal will turn Rogue Baron into an Enterprise Company on Aquis. An investment committee of Hamish Harris and Charlie Wood will consider potential investments base or precious metals. The company name will change to Richmond Hill Resources. Tomoya Daimon has resigned from the board. A placing raised £209,000 0.6p/share.
Oscillate (MUSH) says it has analysed early-stage data for hydrogen in the Animikie Basin in northern Minnesota. Soil gas sensing equipment has been deployed, and shallow soil gas sampling technology will evaluate hydrogen potential.
Marula Mining (MARU) says assay results of copper concentrate samples from the Kinusi copper mine in Tanzania provide further confirmation of high-grade copper content of the material stockpile.
Oberon Investments Group (OBE) is holding a general meeting to gain approval for a capital reduction to create distributable reserves.
Coinsilium Group Ltd (COIN) is rebranding its Nifty Labs subsidiary as Forza (Gibraltar) and it will focus on treasury management for the holding company. Coinsilium is assessing innovative opportunities in treasury management.
Trading in Hydrogen Future Industries (HFI) shares has been suspended because accounts for the year to July 2024 have not been published.
Barry Hersh has forfeited the 18.66 million unpaid shares in Global Connectivity (GCON).
Paul Mathieson’s stake in Investment Evolution Credit (IEC) has reduced from 38.9% to 35.4%. That was prior to a £35,650 subscription at 1p/share. Dr Richard Leaver doubled his shareholding to two million shares after the subscription and he has become chief executive. Dr Leaver is a former director of AIM companies Blue Star Capital (BLU), Image Scan (IGE) and Toumaz. He has experience with AI and the board believes this will help to grow the consumer credit business. John van Kuffeler will not become chairman.
Supernova Digital Assets (SOL) generated revenues of £114,000 in the 12 months to October 2024 according to unaudited management accounts. A £2.7m increase in the fair value of digital assets and tokens. The pre-tax profit was £2.41m. Net assets were £5.8m at the end of October 2024.
Ventura Finance, which is controlled by Mark Jackson, owns 3.93% of Walls and Futures REIT (WAFR).
DXS International (DXSP) chairman Bob Sutcliffe is continuing to buy shares adding another 20,000 at 3.5p each, taking his stake to 1.99%. Shepherd Neame (SHEP) has amended an earlier purchase by chairman Richard Oldfield (that was said to be 42,459 shares) to 1,500 shares at 519p each. He has also acquired 2,000 shares at 540p each. BWA Group (BWAP) managing director has bought 1.5 million shares at 0.15p each, taking his stake to 6.75%. Ananda Pharma (ANA) chief executive Melissa Sturgess bought 5 million shares at 0.43p each, taking her shareholding above 10%.
Time to ACT (TTA) has appointed VSA Capital as corporate adviser and broker.
Jim Williams has resigned from VVV Resources (VVV) and David Ajemain has been appointed as executive chairman. The company is reviewing potential projects.
ASSET MATCH
VP Fintech (VPF) joined the Asset Match private market on 5 February. It owns 56% of Canadian company Valens Pay, which has developed a fintech platform that offers directly or via third parties users services including payment, forex and investments. There is no limit on size of transaction. At the end of 2024, there were 21 partners using the platform. Co-founder James Holmes owns 46.1%, TP Finans ApS, which is owned by co-founder Torben Pedersen, 38.9% and Torben Pedersen’s own holding is 12.1%. The first share auction will be in March. At a share price of 100p, the market capitalisation is £25m.
Nightcap (NGHT) has acquired the 115 lease on the i360 Tower in Brighton. It is one of the world’s tallest moving observation towers with 20,000 square foot of hospitality space. The deal excludes any debt, which has been released by the local council.
Oil and gas explorer and producer SDX Energy (SDX) has left AIM and joined Asset Match on 3 February. The first auction will be in March.
Isle of Scilly Steamship (IOS) has appointed Jonathan Hinkles as managing director of airline Skybus. He has been an adviser for six months and his job is to return Skybus to sustainable profitability. Skybus flies from airports in Cornwall and Devon to St Mary’s and has seven aircraft.
Marshalls of Cambridge (MCH) has appointed David Mitchard as a non-executive director.
AIM
Engineering consultancy RC Fornax (RCFX) joined AIM on 5 February after raising £5.2m at 32.5p/share. Existing shareholders raised a further £1m. The share price ended the week at 35p. RC Fornax was set up in 2020 and is focused on the UK defence sector and it would like to move into new territories.
Building components manufacturer Alumasc (ALU) is maintaining margins and has managed to generate organic growth in a period where the construction market contracted. New product development and improving efficiency help to improve the figures. Interim revenues rose by one-fifth to £57.4m with organic growth of 8%. Pre-tax profit was 19% ahead at £7.5m. Exports grew 43% as demand from the Chek Lap Kok project in Hong Kong started to build. The interim dividend was raised by 1% to 3.5p/share.
Energy supplier and energy efficiency services provider Good Energy (GOOD) has reached agreement with Dubai-based Esyasoft and is recommending a 490p/share bid. That is higher than the share price had ever previously been and values Good Energy at £99.4m. Major shareholder and former potential bidder Ecotricity has committed to accepting the bid.
Digital tech services provider TPXimpact (TPX) says third quarter trading was in line with expectations, but contract starts have been delayed and slow to build up which will hit the fourth quarter. This is due to the UK government putting off spending decisions. The UK government comprehensive spending review should be completed in June and spending will hopefully return to expected levels after that. Dowgate has cut 2024-25 revenues from £84m to £76m, which has led to a pre-tax profit downgrade to £2.8m.
RA International (RAI) directors have decided to ask for shareholder permission to leave AIM. The remote services provider to global organisations says that disclosure requirements hamper the business by enabling rivals have a greater insight into its strategy. Also, confidentiality agreements mean that it is difficult to provide investors with the information they want. Liquidity is poor because Soraya Narfeldt and Lars Narfeldt own more than 80% of RA International. Contract mobilisation delays are hampering trading, and a loss is expected for 2024. Costs will be reduced this year and non-core business could be sold for up to $5m.
Lung cancer diagnostics developer Lung Life AI (LLAI) is planning to leave AIM with discussions continuing with one strategic partner to help to commercialise its lung cancer tests. However, there is unlikely to be an agreement in the short-term and cash, currently $1.31m, is only going to last until later in the second quarter. A public share issue is unlikely to be viable. If no source of funding can be found, then the company would be wound up.
Fuels, food and feed distributor NWF (NWF) reported an improvement in underlying pre-tax profit from £3.4m to £3.6m. Higher contributions from fuels and feed offset a small dip in profit at food distribution, where the new site at Lymedale is taking longer than expected to fill up. There are £600,000 of exceptional costs relating to an investigation into a conflict of interest in contracting transport services and the investigation will be completed by May. Full year pre-tax profit expectations have been maintained at £8.6m.
Space and defence communications technology supplier Filtronic (FTC) trebled interim revenues and went from loss to a pre-tax profit, excluding the movement in the value of SpaceX warrants and share-based payments, of £7.8m. The momentum is not expected to continue in the second half, where the comparatives are much tougher anyway. Despite investment in new capacity and working capital requirements net cash is £5.1m and it should be much higher at the year-end. There have been two forecast upgrades in recent months, and it is not a surprise that the full year pre-tax profit forecast has been maintained at £11.5m, up £3.4m last year. There is potential for further contract wins, though.
APQ Global Ltd (APQ) says the US government’s slashing of international aid and foreign assistance has created a tough environment for its investee companies. Cash flow generation and refinancing debt should enable APQ Global to repay convertible loan holders by the end of March, but it is more uncertain than previously. The outstanding principle is £26.1m. Delphos is the main investment and two-thirds of its transaction advisory contracts have been cancelled, and they were worth $5m. The others are also likely to be cancelled. Cash inflows over December and January were expected to be $18.9m, but they were $1.1m. The estimate for February has been downgraded from $16.5m to $14.5m, although the March estimate has been raised from $4.3m to $11.1m. That still means a reduction $12m over the period. APQ Global had $3.2m in cash at the end of January.
Cosmetics supplier Warpaint London (W7L) warns that growth is slowing. Interim revenues were 25% higher in the first half and they grew 14% to £102m for the full year. Usually, the second half is much stronger. Margins continue to improve. So far this year, revenues are 15% ahead.
Ilika (IKA) has successfully demonstrated the scalability of its Goliath battery and it will produce prototypes for potential customers. The battery was produced using standard equipment. Ilika is working with Mpac (MPAC) on a 1.5MWh solid state battery production line to produce the Goliath prototype for automotive use. The Agratas factory built to supply Jaguar Land Rover is assessing it its ability to produce Goliath batteries.
Team Internet (TIG) revealed 2024 revenues fell 4% to £803m. Even three months ago growth was anticipated. Profit also declined. The original domain names business grew revenues by 7%, while the new comparison division grew 43%. The search division, which is the rest of the online marketing business, reports a 11% decline in revenues. This is the main profit contributor and gains elsewhere were more than offset by the lower profit here. Net debt was $97m at the end of 2024. It would have fallen without acquisition costs. The Shinez acquisition has not gone as well as expected and there will be a non-cash write-down, plus legal action against the sellers.
Online gaming marketing services provider B90 Holdings (B90) moved into profit in 2024 as overheads were slashed. Zeus forecasts a pre-tax profit of €600,000 on revenues two-thirds ahead at €5m. Net cash is €1.1m. Profit and net cash could double this year.
Gfinity (GFIN) has signed an exclusive licence agreement with 0M Technology Solutions to commercialise 0M’s AI technology Connected IQ (CIQ). Gfinity believes it combine its network and contacts in the advertising sector to help commercialise CIQ. The fee is 30% of net profit generated by the licence. It is unclear how quickly sales can be built up. Gfinity has the option to buy 0M for £2m after the first anniversary of the agreement and lasting until the end of third year. 0M is owned by Robert Keith, who owns 19.6%. Gfinity has raised £260,000 ay 0.0625p/share. The new shares come with warrants exercisable at 0.09p/share.
Sustainable laundry technology developer Xeros Technology (XSG) is progressing with tech verification from four global washing machine manufacturers and two of those could move to substantial paid-for joint development agreements. Timing is uncertain, though. Even so, Cavendish has reduced its 2024 and 2025 forecast revenues. The loss is estimated to decline from £4.8m to £4.5m in 2024. Net cash was £2.8m at the end of 2024 and it should be £800,000 at the end of 2025.
Nativo Resources (NTVO) announced a share consolidation of 1,500 existing shares into one new share. The board believes this will help to make the share price less volatile.
MAIN MARKET
Homeware products supplier Ultimate Products (ULTP) says recovery has been slower than expected as the consumer market remains weak. Higher freight costs and taxes will hit profit for the year to July 2025. Pre-tax profit is forecast to fall from £14.4m to £11m.
Codex Acquisitions (CODX) has entered into an acquisition agreement of Technologies New Energy, a Portugal-based renewable energy company, for £28m in shares at a notional price of 20p each. This would make the deal large enough for the company to be readmitted to the Main Market. Trading in the shares was suspended at 5.5p.
Andrew Hore
Quoted Micro 13 January 2025
AQUIS STOCK EXCHANGE
Good Life Plus (GDLF) has launched more partnerships in the past three months, including with Reach and News UK. The family interests of Mark Blandford are subscribing £1m for an issue of convertible loan notes with up to £1m more on offer to other investors until the end of January. The cash will be invested in expanding customer acquisition and partnership, plus to enhance the premium prize draw operations. There are also plans for international expansion.
Healthy snacks supplier S-Ventures (SVEN) has published its results for the 15 months to December 2023. This is part of the work that is required to be in a position to reverse the operating subsidiaries into AIM shell Riverfort Global Opportunities (RGO). Annualised revenues grew 170% to £20m. The cash outflow from operating activities was £1.4m in the 15 month period.
Oscillate (MUSH) has appointed Robin Birchall, a former director of Helium One Global, as chief executive and Steve Xerri becomes an executive director. Robin Birchall will receive options over 2% of the current issued share capital at a price equivalent to the share price at the time of a move to AIM or other Recognised Investment Exchange, plus he will receive a payment to buy 4.25 million shares. Igraine (KING) has reduced its shareholding in Oscillate from 5.05% to 3.64%.
Automotive electrification technology developer Equipmake (EQIP) has received approaches from strategic investors and potential acquirers. Discussions continue. In the six months to November 2024, revenues improved 19% to £2.47m with EV components revenues increasing 80% to £254,000. There was a cash outflow from operating activities of £2.37m and capital spending of £686,000. Bus repowering services are being scaled down because of low volumes and this will save £2m/year. There was £2m in the bank at the end of November 2024. The contracted order book is worth £11m.
Zentra Group (ZNT), which was previously One Heritage, has signed a new relationship agreement with 65.2% shareholder One Heritage Property Development. This ensures at least two independent directors and the majority shareholder’s nominated director will not vote on outlined matters.
RentGuarantor (RGG) has raised £455,000 from a convertible loan notes issue to RentGuarantor chief executive Paul Foy. They are redeemable on 18 November 2026.
Chris Akers has a 5.1% stake in Global Connectivity (GCON), while Chris New increased his shareholding from 8.88% to 9.75%. Keith Harris raised his stake from 9.98% to nearly 11%. Premier Miton has increased its shareholding from 4.74% to 5.21%, while Placifor Investments raised its stake from 9.76% to 10.7%. Livia Meyer’s stake has reduced from 16.97% to 8.78%. Barry Hersh has still not paid the £375,000 subscription amount for 37.5 million shares.
ChallengerX (CXS) has raised £120,000 via a convertible loan note, which is convertible into 120 million shares when the company is readmitted to Aquis. The cash will fund due diligence on potential acquisitions.
Ace Liberty and Stone (ALSP) chairman Dr Antonios Ghorayeb bought 23,940 shares for a total of £11,475 in September and October. The announcement is late.
AIM
Data and marketing services provider Jaywing (JWNG) has sent out the circular to gain shareholder approval for the cancellation of the AIM admission. This follows a requisition notice by 29.5% shareholder Michael Ashcroft and the company has decided that the departure from AIM is in the best interests of the shareholders. The general meeting is on the 5 February.
It has been a topsy turvy week for legal services provider RBG Holdings (RBGP). It initially terminated the consultancy agreement of Ian Rosenblatt due to breaches of contract and offensive behaviour. He has restrictive covenants lasting until July 2028, but was identified as owner of AWH Acquisition Corp, which is regulated as a firm of solicitors that changed its name to Rosenblatt Law. He is a director of this company along with former RBG Holdings director Tania MacLeod. Ian Rosenblatt had requisitioned a general meeting to remove Jon Divers as chief executive of RBG Holdings. At the end of the week after the market closed, RBG Holdings said it had entered into an exclusivity period with Ian Rosenblatt for the sale of the Rosenblatt brand business to Rosenblatt Law. Ian Rosenblatt will withdraw his winding up petition and the general meeting notice. This exclusivity lasts until 24 January.
Downhole oil and gas technology developer Enteq Technologies (NTQ) says testing of the SABER rotary tool results in the requirement for further engineering modifications. Delays to the start of active test drilling with an Australian customer mean that the timing of revenues is uncertain. The drilling could begin in April. There are also additional costs. This means that cash will not last as long as previously expected and Cavendish has pulled its forecasts. Enteq was expected to move into profit in 2026-27.
There was a strong end to the year for floorcoverings distributor Likewise (LIKE). The market fell but Likewise continues to grow. Fourth quarter revenues were 10% higher than the corresponding period. Full year revenues of £150.8m was 3% ahead of forecast. A new logistics centre has been acquired in Plymouth.
Team Internet Group (TIG) announced that it had received two bid approaches from TowerBook Capital Partners and Verdane Fund Manager AB. Each of the potential bidders was proposing an offer of 125p/share. Previous approaches were rejected for being too low. Both approaches are being considered. TowerBook Capital Partners has since decided not to bid.
Pawnbroker H and T (HAT) says 2024 trading was in line with expectations. The pledge book increased 26% to £127m, with more loans of over £5,000. There was strong demand for lower price jewellery, which boosted retail sales. National Insurance changes will increase costs by £2m/year. Octopus Investments has cut its stake from 10.9% to 9.98%. The 2024 results will be published on 18 March.
ImmuPharma (IMM) says the preclinical research programme for autoimmune therapy P140 should pave the way for earlier, more accurate diagnostics, as well as better identification and improved monitoring of patients. Detailed data is not being published.
Plastic products supplier Coral Products (CRU) has sold and leased back two freehold properties for £1.7m. The initial annual payment of the 15-year lease is £155,000. The £1.1m of related mortgages will be repaid. A final agreement for the insurance claim for the May 2020 fire at one of the company’s premises has resulted in a payment of £900,000.
Arecor Therapeutics (AREC) is ceasing the operations of Tetris Pharma and it is returning the rights to Ogluo, a glucagon auto-injector pen for severe hypoglycaemia, to Xeris BioPhaarma. A partner of Tetris Pharma lost a key NHS Tender, which means revenues will be lower than expected in 2025. There will be a £3m write down. This enables Arecor Therapeutics to concentrate on core products, including ultra-rapid acting insulin candidate AT278, where partner discussions continue.
Automated transport analytics provider Cordel (CRDL) has won a new contract with Angel Trains. It will pinpoint track geometry data from high-speed passenger trains, rather than dedicated monitoring trains. This should help to reduce costs. The technology is Network Rail certified.
A trading statement from animal feed additives supplier Anpario (ANP) has sparked the fifth upgrade to 2024 forecasts. There was strong growth in Middle East and Africa. Shore has raised its pre-tax profit forecast to £5.5m, compared with £3.5m in 2023. Net cash is estimated to be £10.5m.
MAIN MARKET
Kitchenware retailer ProCook Group (PROC) had a strong third quarter, which is the third quarter in a row where the growth rate has accelerated. Third quarter revenues were 11% higher at £25.6m, which means that the year-to-date figure is 9.2% ahead at £54m. Third quarter growth in retail was 12.4%, helped by store openings. Three more stores will be opened in the fourth quarter. Ecommerce growth was 9.2%. Like-for-like growth to December 2024 was 3.8% with ecommerce growing fastest. Net cash was £1m at the end of 2024.
Andrew Hore
Quoted Micro 23 December 2024
AQUIS STOCK EXCHANGE
Surgical procedures provider One Health Group (OHGR) increased revenues 22% to £13.3m, while pre-tax profit improved from £560,000 to £845,000. The interim dividend was raised 2% to 2.07p/share. Cash in the bank was £4.89m at the end of September 2024. There have been record referrals by the NHS since the end of the period and it wants the company to increase its capacity. A retrospective increase in the NHS tariff should boost profit by £250,000 this year. A planning application will be submitted for a surgical hub.
Business assurance provider Adsure Services (ADS) increased revenues 19% to £5.06m and it moved from a loss of £30,000 to a pre-tax profit of £330,000. The latest dividend is 0.786p/share.
Marula Mining (MARU) is planning a strategic partnership with the Mining Engineers Society of Kenya, which will provide expertise to the company. Marula Mining will provide annual financial support. Gathoni Muchai Investments bought 250,000 shares at 4.65p each and 500,000 shares at 4.56p each, taking the stake to 8.85%.
Skincare technology developer Incanthera (INC) reported a flat interim loss of £620,000. There was cash of £1.06m at the end of September 2024. There is no additional news on the litigation that prevented the launch of the Skin + CELL skincare product range. There is £1.24m of inventory and work in progress in the balance sheet that was built up for the launch.
Valereum (VLRM) has signed non-binding heads of terms for raising £13m at 10p/share with DMC Markets Inc. Valereum has also signed a binding option with an investor for raising £2m at 10p/share. This investor is building its own digital asset ecosystem, which could fit with Valereum’s interests. The additional cash will help to accelerate growth.
Healthcare IT provider DXS International (DXSP) wants to expand into a new territory in the EU or elsewhere in 2025. There are 22% of NHS Integrated Care Boards using the new Aios SMART Referrals software and more will be converted. The first commercial sale of ExpertCare therapeutic management software was in October.
Broking and wealth management business Oberon Investments (OBE) grew revenues by 74% to £4.8m in the six months to September 2024. The loss was reduced from £1.59m to £1.24m. There was £2.26m in the bank at the end of September 2024. Corporate broking increased revenues by 124% to £1.54m. There are 21 retained clients and there are private capital fundraisings expected in 2025. The launch of the Oberon AIM VCT is expected in the summer of 2025.There are also plans to take on more experience staff.
In the year to June 2024, fintech company Tap Global Group (TAP) grew revenues 31% to £2.65m, although the core business was not part of the group for the whole of the previous year. Those revenues were 6% ahead. In the first five months of the new financial year revenues were 24% with the latest month 77% ahead. The company introduced its XTP token locking feature for UK customers. Tokens can be locked for 12 months.
Investment Evolution Credit (IEC) is appointing John van Kuffeler, who founded Non-Standard Finance, as executive chairman. Marc Howells will be appointed chief executive. Dr Richard Leaver is becoming a non-exec, and he will provide AI expertise. Investment Evolution Credit is assessing potential acquisitions that could provide it with a UK lending licence, as well as loan book purchases. There are plans to expand in the US and internationally. The 15% IEC bond is no longer being offered to investors and the focus will be institutional debt funding.
BWA Group (BWAP) recently completed exploration drilling at the Dehane 2 rutile sands permit in Cameroon. Total heavy minerals raw sample grades are up to 20.4% over two metres thickness. This has increased the confidence of management that there could be a commercial project. Geological modelling is planned.
Oscillate (MUSH) has started fieldwork on its Minnesota hydrogen interests, while land access permitting ongoing. There will be a detailed review of regional surface geology.
Igraine (KING) investee company Fixit Medical, where it owns 20%, has confirmed that it plans to pursue FDA approval and CE marking for its Cingo product, which prevents catheters from twisting. It is also launching three new medical device products. Two IP grants have been received.
EDX Medical (EDX) has launched a range of test for determining hereditary risk of cancer and heart disease. Revenues remain minimal and the interim loss rose from £1.34m to £1.7m. There was cash of £2.31m at the end of September 2024.
Crypto investor Kasei Digital Assets (KASH) realised £220,000 profit in the year to July 2024. NAV increased from £2.31m to £3.42m. There are investments in a range of Crypto currencies and tokens, including Bitcoin.
A person associated with IntelliAM AI (INT) chief executive Tom Clayton bought 8,660 shares at 80.763p each and 2,280 shares at 87.5p each. He owns 24.8% of the AI company. Chris Wragg, divisional head of lubrication and applied sciences, bought 1,668 shares at 87.5p and he owns 4.38% of the company.
Shepherd Neame (SHEP) has appointed Marion Sears and Meg Lustman as non-executive directors.
WeCap (WCAP) has raised £172,000 at 0.85p/share. Global Prime Partners increased it stake from 9.69% to 11.3%. Hot Rocks Investments (HRIP) raised £60,000 at 0.4p/share. A stake has been built up in Oscillate and there is a potential digital payments investment.
Ananda Developments has changed its name to Ananda Pharma (LON: ANA).
AIM
AIM newcomer Amcomri Group (AMCO) ended the week at 57.5p, having raised £12m at 55p/share. That valued the engineering business at £39.5m. Amcomri was set up to undertake a buy, improve, build strategy in the engineering and industrial sectors.
Retailer Shoe Zone (SHOE) says the recent National Insurance increase have increased costs, and it is closing stores are not considered viable. Consumer confidence is weak. The focus is bigger, more profitable stores. The company has halved its 2024-25 pre-tax profit guidance to net less than £5m. Although profit estimates for the year to September 2024 are unchanged at £9.5m there will be no final dividend.
Cavendish is raising its forecasts for Filtronic (FTC) following its latest trading update. Space and defence demand are propelling growth. Filtronic is providing E-band power amplifiers for ground stations to SpaceX and first half demand was particularly strong. The UK defence review could generate opportunities later in 2025. The 2024-25 pre-tax profit forecast has been raised from £7.7m to £9.6m.
Active Energy Group (AEG) shares returned from suspension following publication of interims and the potential for a resurrection of the business. Shareholders previously voted against liquidating the company and Zen Ventures provided a loan of £200,000 to enable the publication of 2023 accounts earlier in December and the subsequent interims have been released. Zen Ventures will appoint two directors. The plan is to commercialise the CoalSwitch technology.
Energy optimisation and assurance services provider Inspired (INSE) is improving its balance sheet via a placing raising £21.25m at 40p/share and a retail offer raised £410,000. There is also an issue of £5m of 12% convertible loan notes, which are convertible at 80p/share. The shares come with warrants exercisable at 80p each.
Surgical Science Sweden is bidding 13p/share to Intelligent Ultrasound (IUG), which values the ultrasound simulation company at £45.2m. The bid is recommended by the board. Intelligent Ultrasound will benefit from becoming part of a larger group and it enables the bidder to obtain a UK operation. Intelligent Ultrasound was going to return cash to shareholders following the sale of its clinical AI business. There was cash of £39.6m in November, which covers most of the bid value.
Tribe Technology (LTRYB) revealed that its accounts will be delayed, and it plans to leave AIM. The autonomous mining equipment developer is in talks with potential provider of finance, and it believes that leaving AIM will make it easier to raise money. Trading in the shares will be suspended on 2 January. Neometals (NMT) is cancelling its AIM quotation and concentrating on the ASX listing. It joined AIM in 2022, but it has been difficult to raise funds. Trading volumes on AIM have been low. The cancellation will be on 3 February. Retailer Quiz (QUIZ) is also planning to leave AIM. Shareholders approved plans for Webis (WEB) to lave AIM and this will happen on 3 January.
Synairgen (SNG) wants to raise up to £19m at 2p/share to fund a phase II study for respiratory drug treatment SNG001. The largest shareholder TFG Asset Management has conditionally underwritten £18m of this. However, there is a placing and open offer to raise £6m and the TFG subscription will be reduced by the amount raised over £1m. However, if the placing and open offer does not raise at least £2.9m the AIM quotation will be cancelled.
Tiger Royalties and Investments (TIR) is changing strategy to become a technology incubator. It is acquiring Bixby Technology Inc, which is run by Jonathan Bixby, for £325,000. A fundraising at 0.1p/share will raise £3m. New shareholders include Premier Miton, Zeus and Jupiter. Toro is subscribing £325,000 worth of shares. The company is retaining its core resources investments, and it will consider other natural resources investments.
There was a reassuring update from Feedback (FDBK) concerning first half trading, but more was generated by the Bleepa medical imaging communications product. There are talks with Integrated Care Boards about further contracts. Net cash was £7.3m at the end of November 2024 and there were £500,000 of retail offer proceeds to be received. That compares with a market capitalisation of £7.3m.
Duke Capital (DUKE) increased recurring interim revenues by 4% to £12.7m. Fewer exit premia meant that total revenues dipped to £13.5m, from £14.1m. There have been £15m of follow-on investments in the period. Despite the £3.5m fundraising at 27.5p/share, the debt level is still significant with £69.1m forecast for the end of March 2024. Duke Capital provides important financial backing for small businesses through a combination of debt and equity and generates a steady income stream from those investments with longer-term upside.
Electronic and electro-mechanical components supplier LPA Group (LPA) has won three major contracts worth £4m. They are with French rail operator SNCF Voyageurs for interior LED lighting, Siemens Mobility, also for LED lighting, and seating manufacturer Grammer for eat electronics and lighting for trains in France. The SNCF contract last five years while the others are deliverable in 2025 and 2026.
Provexis (PXS) is purchasing a further batch of Fruitflow heart-health functional food ingredient inventory from dsm-firmnech to satisfy increasing demand for Fruitflow. The royalty based on gross profit will be paid to dsm-firmnech in shares. The total payment for inventory and royalty is 82.95 million shares at 0.68p each. DSM Venturing owns 10.9%.
Scholium Group (SCHO) managed to gain enough shareholder support for the plan to leave AIM. It required 75% of votes and it got 79.3%.
Digital media publisher Digitalbox (DBOX) has bought EastEnders for £50,000. It has 475,000 followers on the associated Walford East Facebook page. This adds to the recently launched Emmerdale Insider.
Nioko Resources is making a recommended offer of 2.68p/share for Hummingbird Resources (HUM). This is the same as the price of the debt-to-equity swap previously announced.
MAIN MARKET
Rockpool Acquisitions (ROC) revealed the potential acquisition of European Lingerie. The exclusivity period lasts until the end of June 2025.
Media Concierge has launched a recommended bid for National World (LON: NWOR). The 23p/share offer values the company at £65.1m.
London Finance and Investment Group (LFI) plans to wind itself up and return cash to shareholders. This could be 70p/share.
Acceler8 Ventures (AC8) is planning to acquire Verifyyed Inc, which has developed a royalty platform providing rights holders with greater transparency to drive revenues. California-based Verifyyed Inc has operations in Europe, and it will cost £96.8m in shares. A placing to raise up to £20m is anticipated.
The 79th GRP plans to invest £2.18m in First Class Metals (FCM) in two stages. It will end up with 51.2% of the enlarged share capital. The cash will be invested in projects in Ontario and there are potential synergies for project acquisitions.
Andrew Hore
Quoted Micro 25 November 2024
AQUIS STOCK EXCHANGE
Cooks Coffee (COOK) moved back into profit in the six months to September 2024. Revenues were 27% higher at NZ$2.74m with growth coming from new openings and existing sites. This income comes from fees from franchisees. Like-for-like growth in the UK was 6% and 3% in Ireland. Sales growth has accelerated in the second half with record sales per store in October. There were 83 coffee shops at the end of September 2024, and this could rise to 90 by next March. The company is moving domicile to the UK.
In the year to September 2024, Time to ACT (TTA) increased revenues from £958,000 to £1.67m. There was an underlying operating profit. There was a cash outflow from operating activities of £784,000 because of working capital movements. There was £1.17m in cash.
Global Connectivity (GCON) has had its stake in Rural Broadband Solutions diluted to £9.5m. The valuation of the stake has been reduced from £13.6m to £11.7m, which is equivalent to 3.2p/share. There is an agreement in principle for an investment in a new business.
Aquaculture technology developer OTAQ (OTAQ) has sent out the circular seeking shareholder approval to leave Aquis. The general meeting will be held on 10 December. Delays in orders mean that 2024 Dowgate forecasts a drop in revenues from £4.4m to £3.1m (previously £4.2m) this year and a £1.8m loss, up from £1.2m in 2023. There should be net cash of £100,000 by the end of the year. Convertible loan note interest can be capitalised with up to 75% of proceeds from the sale of certain inventory will be used to pay back the holders.
Lift Global Ventures (LFT) core financial information business Miriad made a positive contribution despite the tough financial markets. It generated £127,000 in cash. There was £163,000 in cash at the end of June 2024.
Invinity Energy Systems (IES) has sent a circular to shareholders to gain approval to move the domicile from Jersey to the UK.
Tap Global Group (TAP) has cancelled its long-term incentive plan and granted options to directors with most of the options vesting when there are increases in the share price. Peter Wall has been formally appointed as chairman.
Marula Mining (MARU) has appointed Morre Kingston Smith as auditor. Results from metallurgical testing work on ore from the Kinusi copper mine should be available in the first quarter of 2025. Further test shipments will happen before the end of the year. Sampling work of high-grade tungsten deposits at the Northern Cape lithium and tungsten project in South Africa is continuing. Tungsten concentrate could be produced next year.
Oscilate (MUSH) has identified areas to start hydrogen operations in Minnesota. Work is under budget.
Valereum (VLRM) has been admitted to the Apex segment of the Aquis Stock Exchange.
Vinanz Ltd (BTC) has added another 21 bitcoin miners to its site in Nebraska, taking the total to 56.
RentGuarantor Holdings (RGG) has launched an offer of £500,000 10% convertible loan notes lasting two years. This will fund an expansion of the workforce. The Renters’ Rights bill will increase demand for rent guarantor services.
SuperSeed Capital (WWW) reported a NAV of 111p/share at the end of September 2024.
Capital for Colleagues (CFCP) has disposed of more shares in investee company Computer Application Services and raised £299,000. It still owns 24.4%. Pipes and valves distributor TPS shares were sold raising £901,000. The remaining TPS stake is 16%. The cash raised will be invested in other businesses.
WeCap (WCAP) investment WeShop has appointed a US investment bank ahead of a flotation. Audited accounts for 2022 and 2023 have been signed off.
AIM
Rail optimisation software and services provider Tracsis (TRCS) had a tough year, but strong recurring revenues helped. One-off revenues the previous year meant that revenues were 1% lower at £81m. Underlying pre-tax profit fell from £14.1m to £10.4m. Total dividend is 2.4p/share. There should eventually be further investment in the rail industry, which will be good news for Tracsis. The timing of the spending is uncertain. There are already potential deals in the pipeline, though. The business has been rationalised so that management can focus on core operations and further acquisitions. There is £19.8m in cash that can be spent on acquisitions that will enhance earnings.
Telecoms enterprise software supplier Cerillion (CER) continues to beat expectations. Full year pre-tax profit was 18% ahead at £19.8m. There were record new orders of £38.1m. The technology helps telecoms companies to operate more efficiently. Growth is set to continue.
It was no surprise that telecoms testing equipment supplier Calnex Solutions (CLX) had a tough first half. Revenues dipped from £7.8m to £7.4m and the loss more than doubled to £1.3m. Even so, the interim dividend has been maintained at 0.31p/share. Cash was reduced to £8.6m. New partners are starting to sell group products, and they are replacing Spirent. Second half revenues should be better than the particularly weak comparatives. This should enable a return to profit for the full year.
Semiconductors developer CML Microsystems (CML) improved interim revenues, but that was down to the Microwave Technologies business not being included in the comparatives. Like-for-like revenues were similar to the second half of last year. Pre-tax profit slumped from £1.9m to £800,000. The interim dividend is maintained at 5p/share. Net cash is £15m. There are potential property sales that will boost the balance sheet. The proposed move of Microwave Technologies to a new site will reduce the cost base. Existing and new products have good long-term prospects.
Frontier IP (FIPP) is raising £3m via a placing and subscription at 28p/share. A retail offer via Primary Bid could raise up to £1m. Minimum subscription is £250. The offer closes at 5pm on 25 November. Frontier IP made unrealised gains of £1.3m in the year to June 2024, but there was an overall loss of £1.3m. NAV is 79.7p/share. Despite that, there is a shortage of cash in the balance sheet and the additional cash should last 12 months as the company tries to generate some additional cash from investment realisations.
Helix Exploration (HEX) drilling at Clink#1 in Montana has been successful. There was 2.5% helium encountered in the Flathead formation, which was higher than expected, and 55% hydrogen in drilling mud. Testing is ongoing and there should be further news in the near future. The well could go into production next year.
Tavistock Investments (TAVI) is acquiring Alpha Beta Partners, which is an asset manager with £3bn under management. The business is focused on retail investors, and this will scale up the existing business of offering asset management services to third party advisers. Operating profit was more than £500,000 on revenues of £4m in the year to September 2024. The initial payment is £6m, with the maximum consideration of up to £18m. Two disposals have been completed and the initial payment of £22m will be received in early December. They could eventually generate £37.75m.
Iron treatment provider Shield Therapeutics (STX) says it will hit the 2024 target revenues of $31.5m, up from $13.1m, as revenue peer prescription has increased. Recruitment has been completed for an Accrufer phase III study in China. The proposed $10m investment by AOP Health still requires shareholder approval. Costs are being lowered by 10%. Cash flow breakeven should be hit by the end of 2025, if the sales growth momentum continues.
Chain and transmission equipment Renold (RNO) reported flat interim revenues of £123.4m and pre-tax profit of £11.3m. Spending on acquisitions increased net debt to £42.2m. There was a dip in chain revenues and transmission revenues were slightly higher with improved margins. North America should recover in the second half and destocking is ending in Europe. The Valencia factory being hit by flooding has hurt sentiment. There will be additional short-term costs of £4.8m because of this with insurance payments potentially coming through in 2025-26.
Webis (WEB) has decided to leave AIM. The US-focused gaming company will seek shareholder approval on 18 December. This will help to reduce costs. The operations remain loss making.
Churchill China (CHH) had a tougher second half than expected with a lack of seasonal uplift in the fourth quarter. This means that 2024 pre-tax profit will be well below expectations. Next year is expected to continue to be weak with hospitality businesses hit by higher National Insurance costs. There will also be a hit for Churchill China and costs are being reduced, but 2025 expectations are also downgraded. The balance sheet remains strong.
Scientific instruments supplier Judges Scientific (JDG) says order intake has reduced if the large Geotek contract is excluded. China is particularly weak, but other markets are also tough, and orders have been deferred. Zeus has cut its 2024 pre-tax profit forecast by 19% to £25m. Next year’s forecast has also been trimmed.
Ilika (IKA) has reached the D6 milestone through the testing of 10Ah cells in its Goliath solid state batteries for electric vehicles. These larger cells have been shown to be safe and the D7 version should be available to potential customers in the second quarter of 2025. This moves the company nearer to finding a partner for the Goliath battery.
Property fund adviser and investor First Property (FPO) had a good first half with one-off profits from the trading of properties by a fund, where the company has an investment. There was also the early receipt of fees from disposal of properties in another fund. There was a swing from a loss of £650,000 to a pre-tax profit of £1.16m. Net debt was £18.7m.
Cannabis-based medicines developer Celadon Pharmaceuticals (CEL) has received a further £200,000 drawdown from the committed credit facility and the lender is committed to providing the remaining £500,000. However, it has to sell an investment to provide the cash. There is still £400,000 outstanding from a share subscription. Celadon Pharmaceuticals has enough cash to get it to January. Talks with another lender continue.
MAIN MARKET
Construction equipment hire company Speedy Hire (SDY) made a small profit in the first half with a recovery expected in the second half. Interim revenues fell 2% to £204m with flat hire revenues and lower fuel sales. Volumes are not being chased so that profit can be maximised. Pre-tax profit was £300,000 because of operational gearing, higher interest charges and a lower joint venture contribution. The Amey contract starts in the second half. Net debt is £112m.
J Smart and Co (Contractors) (SMJ) improved its full year pre-tax profit from £105,000 to £2.37m despite a higher loss on construction activities. The investment property business made a larger contribution. Investment properties are worth £70m and there is £7.5m of net cash. NAV is £126.3m. The total dividend is 3.23p/share.
Media Concierge has approached publisher National World (NWOR) about a possible offer of 21p/share. Media Concierge claims to have the backing of 72.2% of the share capital. Media Concierge wants the offer to be recommended by the board and to be able to complete due diligence. National World claims that entities affiliated with Media Concierge owe it £4.4m.
Technology consolidator Sealand Capital Galaxy (SCGL) is making its maiden AI investment. After evaluating suitable opportunities, the company has decided on EVOO AI (www.evoo.ai), which is a data platform with AI learning models incorporated. It provides insights to the luxury goods sector, such as market trends and consumer behaviour. The main product is Olive, a luxury e-commerce marketplace that offers personalised shopping. The company was incorporated on 15 December 2023. On 14 March 2024, EVOO AI had net assets of £848,000, including fixed asset investments of £800,000 and £1 in cash. The plan is for Sealand Capital Galaxy to invest in a convertible loan note. The first tranche is £200,000 and the second trance will be £100,000. The annual interest rate is 12% and the term is 18 months. Interest is payable on maturity. There will be a fee of one million warrants exercisable at €0.06/share. If the company floats at a lower share price the exercise price will match that price.
Andrew Hore
Quoted Micro 11 November 2024
AQUIS STOCK EXCHANGE
Cross border e-commerce technology company Samarkand Group (SMK) reported a dip in revenues of 22% to £6.3m, with owned brands increasing their contribution by 14% to £4.1m. The loss has been reduced even before the £1.08m gain on the disposal of a brand. Net debt is £2m. The switch to focusing on owned brands will continue.
Wind-based hydrogen production technology developer Hydrogen Future Industries (HFI) says turbine testing has been delayed because of a fault in the control unit. Replacement parts should arrive by the end of the month. Schneider Electric is providing software to help analyse data for the feasibility study at Whitehall in Montana. Concept testing of the electrolyser continues, and efficiency is more than 97%. Neil Ritson has become executive chairman.
Unicorn Asset Management has taken a 5.42% stake in Equipmake (EQIP).
Pitch Pit has changed its name to Meme Vault (MEME) and will become an investment company focused on cryptocurrency and Web3 technologies. A new subsidiary will be set up in UAE. Chandila Fernando and Judith Hough will no longer be joining the board. The planned £500,000 placing is not taking place, but there will be an alternative fundraising.
DXS International (DXSP) chairman Bob Sutcliffe bought 35,000 shares at 1.3p each and he owns 1.8% of the healthcare IT developer. Earlier in the week, Hybridan published updated research and said that “management is focused on cashflow control until new NHS sales resume, when there could be significant revenue growth”. It argues that this is not reflected in the current share price.
Mendell Helium (MDH) has an option to acquire M3 Helium, which has acquired 85% interests in three further wells on the western side of the Hugoton gas field in Kansas. Two of the wells are in production and the third could be used as a water disposal well, which will reduce costs. No consideration is payable. The wells are breaking even.
Fenikso (FNK) has doubled its convertible loan to AIM-quoted Coro Energy (CORO) to £500,000. Tom Richardson, chairman of Fenikso is also a director of Coro Energy.
Ormonde Mining (ORM) investee company TRU Precious Metals, where it owns 36.3%, has announced results of copper exploration at the Golden Rose project in Newfoundland. Copper grades were up to 3.7% and some samples included zinc.
Jack Keyes has decided not to join the board of Oscillate (MUSH) as technical director. He is still undertaking hydrogen exploration work for the company.
ProBiotix Health (PBX) company secretary Mark Collingbourne has acquired 80,000 shares at 5.5p each.
AIM
Fabless silicon chip designer and manufacturer EnSilica (ENSI) slipped into loss in the year to May 2024, but there are already contracts in place for a bounce back to profit this year. EnSilica generates cash from operations, but it spent £6.1m on capitalised development. Chip supply generated flat revenues of £2.9m out of group revenues of £25.3m, up from £20.5m in the previous year. Chip supply revenues should start to build up from this year and that will sharply boost profitability. It can take two years or more for chip supply to begin and then production is built up to its peak, so there is built in growth for many years. Singer forecasts a 2024-25 pre-tax profit of £2.7m, doubling to £5.5m next year.
Membrane free electrolyser developer Clean Power Hydrogen (CPH2) has entered into a licence agreement with Lisheen H2 Energy Park, trading as Hidrigin, for the rights to manufacture MFE220 electrolyser units for its own use up to 2GW. This could be worth multi-million Euros. Hidrigin owns the 122MW Lisheen solar park and has funding for other developments. The licence fee will be payable in stages. Separately, there is a sale of a 1MW MFE220 electrolyser unit.
This week there was good news from professional services firm DSW Capital (DSW) with its trading statement following the acquisition earlier this week of DR Solicitors for £6.1m in cash and shares, which will reduce dependence on M&A. DR Solicitors has a client base of doctors, consultants and primary care providers. The latest annual pre-tax profit was £1.2m. The deal should be hugely earnings enhancing. Trading has been gradually improving in the first half. First half profit will be slightly lower at £100,000, but the full year pre-tax profit is expected to recover from £500,000 to £1.4m. A further jump to £2.5m is forecast for 2025-26. The interims will be published on 27 November.
Shell company Selkirk Group (SELK) raised £7.5m at 2.4p/share ahead of joining AIM this morning. The focus is undervalued consumer, technology and digital media businesses. Executive chair Iain McDonald says: “We have chosen to IPO on AIM because, despite the prevailing negative narrative, AIM is still a very attractive market for small, fast-growing companies”.
Electronics and battery products supplier Solid State (SOLI) had a tough first half but it says trading is in line with expectations in the first half and the second half should be better. Interim pre-tax profit has slumped from £7.3m to £2.5m. The components market has returned to normal, and first half revenues declined. Political uncertainty has hampered defence system orders. Last year’s defence revenues were exceptionally strong due to early deliveries, and a decline was expected. That is why full year underlying pre-tax profit is set to fall from £15.6m to £10.1m.
Hummingbird Resources (HUM) has announced a debt restructuring and possible bid. Delays in ramping up production at Kouroussa have strained the balance sheet and $30m of debt repayments have been deferred. Net debt was $155m at the end of September 2024, while trade and other payables were $152m. Nioko Resources, which owns 41% of the gold miner, is proposing a partial debt-to-equity conversion at 2.6777p/share, which would take its stake to 71.8%, and potential bid and cancelation of the AIM quotation. Geoff Eyre has been appointed interim chief executive.
Feedback (FDBK) raised £6.1m at 20p/share, which was a massive discount to the previous market price, which fell to 19.5p. This includes £530,000 raised via a WRAP retail offer of up to £1m. The cash will finance the rolling out of the Bleepa medical imaging communications product and take advantage of a collaboration with a provider of primary care IT services that will use Bleepa to streamline referrals between primary care, Community Diagnostic Centres and community care. The nominal value of shares will be reduced to 1p.
Futura Medical (FUM) has completed two proof of concept studies on new products for the treatment of sexual dysfunction in men and women. Eroxon Intense is a range extension for the existing Eroxon topical product for erectile dysfunction. This provides a stronger sensation. A preferred formulation will be tested next year and regulatory approval is expected by the end of 2025. WSD4000 is a topical treatment for women that treats symptoms such as lack of desire and lubrication. The next stage is a home user study, and results are expected in the first quarter of 2025. A pre-submission meeting with the FDA has happened and there will be another to help design a clinical study. There are discussions with potential partners.
Broadband services provider Bigblu Broadband (BBB) admits that it is in discussions with alternative investment manager Salter Brothers on a possible sale of the SkyMesh subsidiary. The transaction is subject to final terms and financing. This would be the latest asset disposal for Bigblu Broadband.
CleanTech Lithium (CTL) says that the pre-feasibility study for the Laguna Verde project has been delayed until the first quarter of 2025. Additional engineering work is required due to the location of the carbonation plant in Copiapo. An option for onsite renewable power will also be included. Lithium carbonate should be produced from the pilot plant in November.
Digital media publisher Digitalbox (DBOX) has added to its portfolio of digital media brands by acquiring the entertainment business of GRV Media. The assets are CelebrityTidbit.com, RealityTidbit.com and TheFocus.news. They generated revenues of less than £800,000 and they fit with Entertainment Daily and The Tab.
Synergia Energy (SYN) has raised £632,500 at 0.05p/share. There has also been the conversion of £296,000 of loans and £83,000 of fees into shares. The shares come with a warrant exercisable at 0.1p each. This provides funding for the Medway Hub Camelot carbon capture and storage joint venture with Harbour Energy. Synergia Energy wants to farm out up to 25% of the project. There should be a significant increase in production at the Cambay PSC, where a farm out of a 50% interest to Selan Exploration has been completed, from the second quarter of next year.
Kodal Minerals (KOD) joint venture partner Hainan Mining says that the $15m owed to the Mali government should be paid by Kodal Minerals and not the joint venture that owns the Bougouni lithium project. Kodal Minerals disagrees.
Optimer binders developer Aptamer Group (APTA) continues to win new contracts and it has added contracts worth up to £471,000 in the third quarter. This is work from a number of clients and many are repeat customers. Some of the existing customers are reaching a point where they are considering long-term licences. Booked revenues have reached £1.2m for 2024-25. The potential pipeline has increased to £4m.
MAIN MARKET
Cybersecurity company Narf Industries (NARF) says 2024-25 revenues should be at least $5m and they could rise to $8m in the following year. In the 15 months to March 2024, revenues were $7.6m. The dip in revenues is due to a switch in focus to commercial sales rather than the dependence on government funded development, as well as delays in US funding. Thereby building recurring revenues.
Foams manufacturer Zotefoams (ZTF) revenues are accelerating with third quarter growth of 54% and year to date improvement of 23%. Footwear sales are fuelling this growth, helped by the Olympics boosting Nike demand, but other parts of the business are also growing. Operational efficiency is increasing margins.
Andrew Hore
Quoted Micro 4 November 2024
AQUIS STOCK EXCHANGE
Rebel shareholders failed to win any of their three resolutions, including the removal of the chief executive, at the requisitioned general meeting of ProBiotix Health (PBX). Broker Peterhouse said that major shareholder OptiBiotix Health (OPTI) was not allowed to vote its shares at the meeting because of the relationship agreement from the flotation of the probiotics developer. OptiBiotix Health owns 53.5 million shares, and the votes were lost by less than 36 million shares.
Surgical treatments provider One Health Group (OHGR) interim revenues were more than one-fifth higher at £13.4m. New patients increased by 29%. The second half is likely to better than expected. That means that full year EBITDA should be higher than £1.9bn. There was cash of £4.9m at the end of September 2024. A move to AIM is being considered.
Aquis Exchange (AQX) and Cboe Europe are assessing a joint bid to provide an EU consolidated tape of stock trades. The European Commission has decided to create a single entity to operate a real-time, trade consolidated tape. The European Securities and Market Authority will select the business to take on the role. The plan is for the two companies to set up a joint venture called SimpliCT, which will be based in the Netherlands, to bid for the role of equity consolidated tape provider.
Luxury prize draw organiser Good Life Plus (GDLF) has achieved £330,000 in monthly recurring revenues. There are more than 40,000 subscribers and churn has been reduced. In the six months to July 2024, revenues were £1.69m. There was a £2.21m cash outflow from operating activities. There was a fundraising after the balance sheet date. Richard Johnston has been appointed as finance director.
Macaulay Capital (MCAP) investee company Vale Foods has repaid a £125,000 loan and this has been reinvested in shares in the latest fundraising of £430,000. A £100,000 loan has been made to another investee company.
Health IT provider DXS International (DXSP) has won its first NHS commercial contract for its AI ExpertCare Clinical Decision Support product. In the year to April 2024, revenues were 2% ahead at £3.31m, There was an impairment charge of £4.38m. Even without that write-down the company fell into loss. Chairman Bob Sutcliffe bought 50,000 shares at 1p each and 133,333 shares at 1.5p each. He owns 1.74% of the company.
KR1 (KR1) had net assets of 62.15p/share at the end of September 2024. The income from digital assets was £592,000 during September.
Social commerce platform investor WeCap (WCAP) says WeShop is considering a listing. If its convertible loans are converted into shares WeCap would own 16% of WeShop. The investment in Bio2pure of £100,000 has been written down to nil. At the end of April cash was £49,000 and net assets were £7.39m.
Rogue Baron (SHNJ) says Sinju Japanese Whisky will be available in the US in the third week of November. The latest shipment of 800 cases has been presold.
Marula Mining (MARU) is stockpiling ore at the Kinusi copper mine. Samples have been sent to South Africa for test work and the results will help to design the first phase of the processing facilities. Three trial shipments are about to be sold.
Fenikso (FNK) is launching a share buyback of up to 49.3 million shares. A further $404,000 has been received in loan repayments. The remaining loan is worth nearly $39m.
Chris Akers’ stake in Oscillate (MUSH) has been reduced from 5.94% to less than 3%. Peterhouse Capital has also reduced its stake below 3%. Jonathan Neame has bought 7,000 Shepherd Neame (SHEP) shares at 569.5p each.
Investment Evolution Credit (IEC) raised £475,000 at 1p each and there is a broker option to issue up to three million more shares.
Unigel Group (UNX) is paying an interim dividend of 1.5p/share on 22 November.
First Sentinel has resigned as corporate adviser of Vulcan Industries (VULC).
AIM
Energy supplier and energy efficiency services provider Good Energy (GOOD) received an unsolicited bid from Dubai-based Esyasoft Holding Ltd. Esyasoft offers a range of products. They include the Smart Grid Suite, which is a cloud-based integration platform that manages workflow and communications between utilities and meters and an energy mobility business.
Payments technology developer Eckoh (ECK) is recommending a 54p/share bid from funds managed by Bridgepoint Advisers II. The bid values Eckoh at £169.3m. The share price has not been at that level since the end of 2022, but it is the price indicated back in August. The bid values Eckoh at 20 times prospective 2025-26 earnings.
Nexus Infrastructure (NEXS) is spending some of its cash pile on Coleman Construction & Utilities, which is involved in civil engineering for water and marine sectors. This diversifies the business away from housebuilding infrastructure. The purchase will cost up to £4.4m and be immediately earnings enhancing – EBITDA was £700,000 last year. Trading is in line with expectations and the loss should be halved to £2.4m in the year to September 2024. A small loss is still expected this year.
Emmerson (LON: EML) says it filed an appeal against the unfavourable recommendation for its ESIA application for the Moroccan potash project, but the regional authorities say that they cannot examine the ESIA submission again. Emmerson subsequently notified the Moroccan government of an investment dispute and argues that the government is violating an agreement between the UK and Morocco. The dispute can be submitted to the International Centre for the Settlement of Investment Disputes. Prior to this, the company is seeking cash compensation from the government. Emmerson is trying to reduce its cash burn, but that will mean that there will be no progress with the development of the project. Two non-executive directors are stepping down and the two remaining non-executives will take fees in shares, while the chief executives pay will be reduced by two-fifths.
Construction dispute and expert witness services provider Diales (DIAL) says that there will be a small improvement in revenues and profit in the year to September 2024. Pre-tax profit will be at least £1.1m, up from £1m. The cost base has been reduced. Net cash is £4.3m. Diales is pulling out of the US. It will still have a Canadian operation, and South America is handled from Spain.
MicroSalt (SALT) has received an initial purchase order for 50,000lbs of low-sodium salt from a major food and drink manufacturer for one of its product lines. Annualised volumes should be 200,000lbs and there could be orders for two other products. There is also a follow-on order from a B2B customer and the 63,860lbs will be delivered in January. Two other B2B orders have been won.
Tlou Energy (TLOU) is seeking shareholder approval at its AGM to leave AIM. The shares will still be traded on the ASX and the Botswana Stock Exchange. Interest in the company has dwindled and the departure will save money. UK shareholders are offered the chance to transfer their holding to the ASX depositary in exchange for ASX-listed shares at no cost. Tlou Energy released a first quarter update indicating progress with the Lesedi CBM gas-to-power project in Botswana. First electricity sales are expected in the middle of next year. There was an operating cash outflow of A$800,000, plus A$1.7m of capital investment in the period.
Cleaning services provider React (REAT) has made the earnings enhancing acquisition of 24hr Aquaflow Services for £5m plus contingent payments of up to £2.4m. It will still be enhancing after a £1.1m placing at 81p/share. 24hr Aquaflow Services is a drainage and plumbing services provider. This adds to group services.
Shield Therapeutics (STX) generated $7.2m from 43,500 ACCRUFeR prescriptions in the third quarter, which was slightly lower than forecast. The average net selling price is $167, and this could rise to $192 in the fourth quarter. Total nine-month revenues are $20m and the 2024 figure should hit $31.5m. Management admits that more cash will be required, and costs are being reduced. Sallyport is providing a $15m facility, up from $10m previously, and AOP Health has agreed to subscribe $10m for shares at 4p each.
Prospex Energy (PXEN) says third quarter gas production of its Italian interests, where it has a 37% stake, was 76,910scm/day. Prospex Energy’s net revenues for the quarter were €1m, which is a record. There should be a further increase in gas production in the fourth quarter.
Deltic Energy (DELT) says wireline logging and fluid sampling confirm the gas discovery at Selene in the North Sea, where it has a 25% working interest. The reservoir quality is better than expected, but it is deeper than anticipated which means that recoverable gas volumes of 131bcf are lower than previous estimates of 320bcf. This should still be economically viable. Further work is required, though.
Transport technology services provider Microlise Group (SAAS) has been hit by a cyber security incident. This has disrupted services, and they are currently inactive. Cyber security specialists have been appointed.
MAIN MARKET
Tin projects developer First Tin (1SN) has raised £8m at 6p/share. The cash will go towards the Taronga project in Australia and funding the enhancements highlighted in the definitive feasibility study. This could increase the project NPV to A$400m. The environmental impact statement will be completed so that initial project work can commence. There will also be cash to progress permitting at the Tellerhauser project in Germany.
Mears (MER) says trading is strong and margins are improving. The 2024 figures will be better than expected with revenues of £1.13bn and pre-tax profit of at least £60m.
A general meeting has been requisitioned at nanomaterials developer Nanoco (NANO) by Milwood Fund, which wants two of its employees to be given board seats. It appears Milkwood may want to sell assets and turn Nanoco into a shell.
Motor dealer Caffyns (CFYN) is selling its freehold premises in Lewis to Lidl for £4.65m, which is equal to book value. The pension fund will receive £2.4m and the rest will reduce debt. The Lotus dealership will be relocated.
Critical Minerals (CRTM) is making progress with the Molulu copper cobalt project in the DRC and is on course to start delivering ore. Two additional mineralised zones have been identified. Terms of a new offtake agreement have been secured with OM Metals following good copper grades from ore testing. Since the balance sheet there has been a £455,000 investment by NIU Invest.
Andrew Hore
Quoted Micro 28 October 2024
AQUIS STOCK EXCHANGE
Electrification technology developer Equipmake (EQIP) has raised £3m at 3p/share. Chief executive Ian Foley has subscribed for 6.67 million shares, although his stake will be diluted to 34.1%. The cash should last for six months and move the business towards cash breakeven. There was £2.48m in the bank at the end of May 2024. In the year to May 2024, the cash outflow from operations was £6.3m. The company estimates a requirement of £5.5m for working capital over the next 12 months. A potential licensing agreement could bring in £4.6m over a two-year period. Equipmake could reach cash breakeven in 2025-26. The focus is on higher margin work and bus repowering range will be rationalised. Costs are also being reduced, but it is investing in its commercial team.
Igraine (KING) has secured right of first refusal on current and future battery storage projects developed by GEM Energia. AIM-quoted Vela Technologies (VELA) is providing a loan facility with a minimum commitment of £200,000. Igraine will issue 35.5 million shares, which is 29.1% of the company, to GEM in return for the rights. David Levis, the chief executive of GEM, is joining the Igraine board as an executive director. He founded GEM to develop battery energy storage projects in the UK. It develops the projects up to the point where it either sells them or proceeds with the development itself. Igraine will have the right to receive 8% of the sales proceeds of a disposal or be involved in their further development. Initial sites will be sold to generate cash for Igraine and strengthen the balance sheet. Each site requires £150,000-£250,000 to secure grid connections and get to the ready to build stage. Every MW of capacity is valued at £120,000. After costs, a 100MW site could generate cash of more than £7m. There are four sites which are already in progress.
Oscillate (MUSH) has started hydrogen operations in Minnesota. A hydrogen soil-gas sensor has been bought and pre-field work started, which will provide data to enable further progress. Igraine has been diluted from 10.2% to 5.05% following the recent share issue.
Lift Global Ventures (LFT) says investee company Trans-Africa Energy has not received the £12m it was waiting for from an African investor. It is talking to alternative sources of finance for the energy infrastructure project in Ghana. The redemption date on the loan notes held by Lift Global Ventures has been extended to the end of 2024 and in return the value will be increased from £1m to £1.25m.
Ananda Developments (ANA) says two of its potential medicines, MRX2 and MRX2T, will be used in National Institute for Health and Care Research and NHS co-funded phase IIIa epilepsy clinical trials involving up to 500 patients. This could support marketing authorisation applications if the trials are successful.
EDX Medical Group (EDX) has raised £300,000 from a Saudi Arabian investor at 11p/share, which was a 22% premium to the market price.
Corporate businesses developer Macaulay Capital (MCAP) managing director David Horner has doubled his shareholding to 500,000 shares by buying 250,000 shares at 20p each. His family has a 24.9% stake. Marula Mining (MARU) director Jason Brewer has increased his shareholding by 340,000 shares at 5.38p each. That takes his stake, held through Gathoni Muchai Investments to 9.13%. Mike Cass has increased his stake in BWA Group (BWAP) to 15.1%. James and Alexandra Pace have a 5% stake in Shepherd Neame (SHEP).
AIM
Footwear retailer Shoe Zone (SHOE) says that poor weather hit second half sales, but it has traded in line with expectations. Full year revenues were 3% lower at £161.3m with a second half decline wiping out the interim growth. Trading did improve in August and September. Zeus forecasts a fall in pre-tax profit from £16.5m to £9.5m. The full year dividend will slip from 17.4p/share to 6.2p/share.
Disinfection products supplier Tristel (TSTL) beat expectations in the year to June 2024. There were initial revenues from the US, but they will take time to build up. Sales grew in nearly every market, with small dips in Australasia and China. A price increase in the UK, combined with higher volumes, helped hospital medical device decontamination jump 38%. The main growth in sales is in the UK and Europe. In the year to June 2024, revenues improved from £36m to £41.9m, while pre-tax profit rose from £6.2m to £8.2m. There was a reallocation of costs from overheads to cost of sales, so this affected comparatives. The total dividend was raised 29% to 13.52p/share.
Telecoms enterprise software provider Cerillion (CER) continues to grow faster than its underlying market. Revenues were 14% higher in the second half, enabling profit to be better than expected. There are record new orders and this underpins further growth in the next couple of years. The €12.4m order from the previously unnamed Virgin Media Ireland is contributing to the growth. It probably generated £6m last year. This is the first contract with a tier-1 telecoms company and could help to win other contracts with this level of business. In the year to September 2024, revenues were 12% ahead at £43.8m.
Online marketing services provider XL Media (XLM) is selling its North American business for up to $30m in cash, with $20m payable on completion and up to $10m in April – based on revenues and gross profit in 2024. Some cash should be redistributed to shareholders by the end of the year. The company will effectively become a cash shell.
EnergyPathways (EPP) has been asked by the UK government to participate in the Hydrogen Storage Business Model. This will help to define the new investment support scheme. The first Hydrogen Storage Allocation Round should be in 2025.
Seascape Energy Asia (SEA) has been awarded a 28% participating interest in a production sharing contract over the DEWA complex cluster, offshore Sarawak, Malaysia. Enquest owns 42% and Petroleum Sarawak holds 30%. The area has 12 gas discoveries in shallow water near to the coast. Six will be focused on and these have 500bcf of gas in place. Seascape Energy Asia will commit $600,000 for a detailed resource assessment and field development plan.
Specialist recruitment firm Gattaca (GATC) reported an underlying 2023-24 pre-tax profit decline from £3.7m to £2.9m on 5% lower net fee income of £40.1m. There was a 3% increase in net fee income for contract work, but permanent income dropped by one-third. Despite the decline, Gattaca is gaining market share. Costs have been reduced and the US business has been sold. There could be a modest improvement in profit this year.
Prospex Energy (PXEN) recently acquired a 7.2365% working interest in the onshore Spain Viura gas field, which recommenced production last week. The Viura 1B development well has encountered significant gas shows in the Utrillas-A reservoir and a new gas bearing reservoir interval below that. The well, which cost Prospex Energy €375,000, could contribute to production in November Flow testing results for the deeper reservoir will be available next year. There should be a significant upgrade to recoverable reserves. The European gas price is rising.
Musical instruments retailer Gear4Music (G4M) continues to recover with growth in the second quarter nearly offsetting the decline in the first quarter and further improvement in October. In the six months to September 2024, UK sales grew 4%, but European sales declined. Total sales were 1% lower at £61.7m. Gross margin has fallen back, but the interim loss will be reduced. Full year revenues are expected to be higher and pre-tax profit could jump from £1.1m to £2.8m.
Information and data publisher Merit Group (MRIT) has been hit by the ending of project work and the lack of replacement work. Sales resource is being added, but that will take time to boost revenues. Canaccord Genuity has changed its 2024-25 forecast from a £900,000 profit to a loss of £800,000 after a 11% reduction in expected revenues to £18.5m, which is lower than the 2022-23 figure. A return to profit is forecast for next year. There are management changes that are flagged for next year.
Ariana Resources (AAU) has reviewed the data for the Dokwe gold project in Zimbabwe. There are several zones of potential extensions to mineralisation. There are also gold-in-soil anomalies to follow up and drilling is planned. The in-pit resource is 1.2moz in two open pits at Dokwe Central and Dokwe North. Measured and indicated resources are 30Mt at 1.3g/t gold. Ariana Resources believes there could be annual production of up to 100,000 ounces of gold for up to 15 years. A revision of the pre-feasibility study is underway.
At the end of the week, property developer and investor Caledonian Trust (CNN), which has been on AIM for more than 29 years, announced its proposed departure. The direct annual cost of the quotation is £100,000 and liquidity is poor. A general meeting to gain shareholder approval will be held on 18 November. There is already support from holders of 85.3% of the shares. The quotation could end on 26 November. NAV is 195.1p/share.
Adams (ADA) is proposing the cancellation of the AIM quotation and sell off the company’s investments, many of which are also quoted on AIM, to return the cash to shareholders. Prior to this Adams will be buying back shares at 4p each. The estimated NAV is 3.72p/share. Liquidity is limited because Richard Griffiths owns 94% of Adams. A general meeting will be held on 27 November and, if passed, the cancellation will be on 5 December.
MAIN MARKET
Advanced materials developer HeiQ (LON: HEIQ) has found growing its business difficult, particularly in textiles, flooring and antimicrobials and not recovery is expected until well into 2025. Another restructuring plan will cut costs and focus on certain facilities. Non-core operations will be scaled back. Some parts of the business may be sold, and outside finance is being sought for AeoniQ. Part of the cost cutting is giving up the listing. This should take effect on 19 November. Because the shares are on the transition category of the market since the restructuring of the Main Market, no shareholder vote is required. The shares will be traded by JP Jenkins. Daren Morecombe has increased his stake from 14.5% to 22%.
Bloomsbury Publishing (BMY) grew interim revenues by 32% to £179.8m, while pre-tax profit jumped from £17.7m to £26.6m. This is due to strong consumer division revenues due to strong sales of fantasy fiction and cookery books.
LED lighting and wiring accessories supplier Luceco (LUCE) increased third quarter revenues by 3% with residential EV charging the main growth area. However, excluding acquisitions, like-for-like revenues were 3.6% lower, partly due to phasing of orders so that there is a strong fourth quarter order book. Margins are improving. Net debt was £67m at the end of September 2024.
Andrew Hore
Quoted Micro 30 September 2024
AQUIS STOCK EXCHANGE
Seneca Partners has requisitioned a general meeting at ProBiotix Health (PBX) to remove chief executive Steen Andersen and Frederik Bruhn-Petersen, whose family office recently subscribed for shares, from the board. Seneca was an early backer of OptiBiotix (OPTI), which spun off ProBiotix Health and whose boss Stephen O’Hara is on the board. OptiBiotix was unhappy with the share subscription and concern about the increase of the number of employees in Denmark.
Brewer Adnams (ADB) interim revenues improved from £30m to £31.9m and the loss was reduced from £4m to £2.55m. NAV fell to £19.9m at the end of June 2024. The funding review is continuing. Proposals for additional funding have not been at suitable cost, so non-core assets will be sold to reduce debt. Adnams improved market share in the off-trade, but sales to pubs and bars declined faster than the market.
Music artist talent management services provider All Things Considered (ATC) increased interim revenues from £3.4m to £19.6m, helped by a sharp increase in services revenues and an initial contribution from the live events division. The loss rose from £1.14m to £1.26m. Net cash is £1.68m. The first major production for the ATC Experience division is Hamlet Hail to the Thief, which combines Shakespeare and Radiohead.
Skin treatments developer Incanthera (INC) says the initial launch of the SKIN + Cell is being expanded and the products will be in the European retail network of Marionnaud sooner than originally planned. That is 1,200 outlets and this should be enough to move Incanthera into profit. Full timing of the launch is still being discussed. There are also plans for additional products.
Trading in Essentially (ESSN) shares has been suspended pending an investigation.
Cleantech engineering company Time to ACT (TTA) reported a loss of £1.1m on revenues of £1.89min the year to March 2024, which was prior to flotation. There was a profit the previous year, but that was due to a one-off payment of £1.5m. Oberon forecasts revenues of £2.2m this year but points out the lumpy nature of revenues. There would still mean the company would be loss making.
Invinity Energy Systems (IES) joint venture development partner Gamesa Electric has ordered a 1.2MWh Mistral battery for a solar and wind generating site in Spain. This was announced at the same time as the interims, which were already well flagged. Interim revenues were £1.6m and the cash outflow from activities was £12.4m.
Bad debts of €1.09m were recovered by Black Sea Property (BSP) helped it move into profit in the six months to June 2024. Net assets are €50.6m.
Cadence Minerals (KDNC) made an interim loss of £2.5m, while net assets were £17.8m at the end of June 2024. The net cash outflow from activities was £300,000 and net cash was £100,000.
IntelliAM (INT) generated revenues of £106,000 between July 2023 and March 2024 and lost money.This is the period before the acquisition of 53 Degrees North Engineering. There was cash of £91,000 at the end of March 2024.
Equipmake (EQIP) has received an additional order from South American bus manufacturer Agrale. Equipmake will supply parts for the MA11 light bus platform, which is an electric/ethanol hybrid.
Hot Rocks Investments (HRIP) is investment in the Oscillate (MUSH) placing to help it finance the acquisition of Quantum Hydrogen. The investment company is buying shares in Oscillate at 1p each and they come with a warrant exercisable at 2p. The total fundraising is £700,000.
Coinsilium (COIN) reported that interim revenues slumped to £3,000, but the digital assets investor and services provider moved from loss to profit. That was due to a net fair value gain on financial assets of £336,000. Cash was £430,000 at the end of June 2024.
Igraine (KING) had £84,000 in the bank at the end of June 2024, following an interim loss of £67,000. The board is evaluating new opportunities.
Valerium (VLRM) has launched VLRM Capital Management in Gibraltar and it will act as director of VLRM Capital Management VSA Private Fund. The fund will use volume spread analysis to generate returns. Valerium chairman James Formolli has invested £1m in the fund.
Marula Mining (MARU) has updated its mine development plan for the Kinusi copper mine in Tanzania. The infrastructure is suitable to support open pit mining and two-phase copper processing operation to produce copper cathode.
Wishbone Gold (WSBN) is receiving A$55,000 from the Western Australian government towards exploration of the Nullagine tenements at Mosquito Creek.
Phoenix Digital Assets (PNIX) had net assets of 5.07p/share at the end of June.
Voyager Life (VOY) says that M3 Helium, which it has an option to acquire, plans a second frack on the Nilson well. This is a fully funded programme with investors providing $170,000 for a 25% interest in the well.
Ormonde Mining (ORM) says cash decreased by €769,000 in the first half of 2024. Net assets were €5.06m at the end of June 2024, with cash of €1.54m.
Globa Capital (GCAP) had net liabilities of £485,000 at the end of June 2024. There is support from shareholders and loan note holders to meet ongoing costs.
TechFinancials (TECH) had cash of $318,000 at the end of June 2024. Management is seeking investment opportunities.
Vinanz (BTC) raised £608,000 at 13p/share. This will fund the acquisition of more Bitcoin miners.
Lift Global Ventures (LFT) appointed Oberon as corporate adviser and broker.
RAJ Bailey acquired 10,000 shares in Daniel Thwaites (THW) at 85.25p each. It taks the director’s stake to 1.32%.
AIM
Floorcoverings supplier Airea (AIEA) had already flagged the weak second quarter trading. Interim revenues were 6% lower at £9.3m and there was a swing from a pre-tax profit of £620,000 to a loss of £68,000. Airea does not appear to be losing market share, and third quarter trading has been stronger. The investment in the manufacturing facility continues and should be completed in early 2025. There is still net cash even though inventories have increased.
Software and maintenance services provider Pennant International (PEN) says that the UK strategic defence review has led to delays in training contracts. This part of the business is being reviewed with plans to focus on a software-led model. Interim revenues were 4% higher at £7.4m despite a decline in North American revenues because of the splitting up of a large Canadian contract. There was a move back into a modest profit. A new software product will be launched in early 2025. Cavendish still expects a full year loss of £400,000, but it is reviewing its 2025 figures.
Telematics services provider Microlise (SAAS) has secured a five-year contract renewal with JC Bamford up until September 2029. The technology enhances connectivity and diagnostic capabilities to improve productivity. The relationship has lasted 14 years.
Graphene technology developer Directa Plus (DCTA) is taking a cautious approach to the environmental remediation tenders that it has been expecting to be awarded. These have been removed from forecasts and full year revenues are estimated at €7.3m, down from €10.5m, with a loss of €5.1m. The interim revenues declined 27% to €3.45m, although this was partly offset by the concentration on higher margin business. If Directa Plus wins one of the tenders, then revenues could rise significantly over the next year. There should still be net cash of €5.2m at the end of 2024, so Directa Plus can wait for the tenders to come through.
Shield Therapeutics (STX) has revealed phase 3 paediatric study results for ACCRUFeR, its iron deficiency anaemia treatment, that show highly clinically relevant effectiveness. This will support filings with the FDA and the European authorities for children older than one month. The FDA filing should be in the first quarter of 2025.
Ondine Biomedical Inc (OBI) has raised £2.8m at 12.5p/share, although the transaction is not expected to be completed until early November. This follows a partnership with Sweden-based Molnlycke Health Care that will take the Steriwave nasal antimicrobial treatment in the European and Middle East markets. The UK is the initial focus. The addressable market is $300m.
Cora Gold (CORA) says exploration work at the Sanankoro gold project in southern Mali has identified twenty new targets within eight gold bearing structures – four primary and four secondary structures. There are seven key targets. This provides potential to extend the existing gold resource of 920,000 ounces. There are signs that the Mali government may lift the moratorium on issuing permits. The existing DFS was based on a gold price of $1,750/ounce and even at this price level the project would generate $71.8m of free cash in the first year.
Clean Power Hydrogen (CPH2) has completed the final stage of the Factory Acceptance Test for the MFE110 electrolyser. The customer is Northern Ireland Water, and it will deploy one unit. This should help to spark more serious interest from other potential customers.
Fluid power products supplier Flowtech Fluidpower (FLO) had already pre-empted the interims in its July trading statement, but trading got tougher in the third quarter. Interim sales fell 6% to £55.7m with customers deferring orders. A recovery was expected in the second half, but revenues are likely to be flat leading to a 2% decline in revenues to £110m. Pre-tax profit is forecast to slump from £4.3m to £1.7m before recovering next year.
Emmerson (EML) is hopeful that it will receive the environmental permit for the Khemisset potash project in Morocco before the end of the year. There will also be the release of lab results from the second round of crop trials that examine the effectiveness of the potash providing phosphate to lettuces. Emmerson currently has $1.7m in cash. This should last well into 2025.
Hummingbird Resources (HUM) has launched an operational and strategic review and Dan Betts is moving from chief executive to chairman of the gold producer. A new boss is being sought. Lower than expected mining volumes mean that Kouroussa will take until the end of the year to reach commercial production. A $30m prepayment gold loan has been agreed with CIG. Gold will be delivered to CIG each month.
Energy services supplier Enteq Technologies (NTQ) has raised £1.5m from a placing and subscription at 5p/share. A retail offer could raise up to £500,000 and it closes on 30 September. The cash will help to finance the commercial launch of the SABER (Steer-at-Bit Enteq Rotary) tool. Testing with the first customer is ongoing. The fleet of SABER tools will be raised to ten.
Spirits supplier Distil (DIS) is raising £650,000 at 0.12p/share with non-exec Roland Grain subscribing £200,000 and Dr Graham Cooley £90,000. The shares come with placing warrants exercisable at 0.36p each. Allenby has been appointed as broker. The cash will fund promotion and production of stock.
MAIN MARKET
Highway Capital (HWC) has ceased discussions for the purchase of Guinevere Capital Esports and Entertainment. A capital restructuring is planned so that debt can be converted into equity and more cash raised via a share issue. The 2022-23 and 2023-24 accounts should be published by November. Trading in the shares was suspended in 2016.
Andrew Hore
Quoted Micro 23 September 2024
AQUIS STOCK EXCHANGE
Digital assets investor KR1 (KR1) reported interim revenues from those digital assets improving from £3.91m to £8.72m, although lower gains on disposals of assets meant that the pre-tax profit edged up from £10m to £10.3m. There was £1.5m in cash in the balance sheet at the end of June 2024. NAV was 82.01p/share at the end of June 2024 and this has fallen back to 71.92p/share at the end of July 2024.
Oscillate (MUSH) has signed an agreement to acquire Quantum Hydrogen for £1.4m in shares. The Minnesota exploration acreage has potential for hydrogen gas. There was £500,000 raised at 1p/share. Investee company Shortwave Life Sciences (PSY) announced positive safety results for its proprietary psilocybin-based drug combination.
Equipmake (EQIP) has received an order from Genco Energy, which is a supplier to Kiwi Bus Builders in New Zealand. This covers four zero emission drivetrains for trail electric buses. There are discussions for the supply of more drivetrains.
Food and beverages company Essentially (ESSN) has renegotiated supplier terms and its beverages are being sold in more stores. The Best of Latin was acquired in May. Interim revenues rose from £593,000 to £920,000. The loss was reduced from £400,000 to £236,000.
Macaulay Capital (MCAP) net assets declined from £1.36m to £1.17m in the six months to June 2024. The company has seven portfolio companies.
Mollyroe (MOY) had net assets of £267,000 at the end of June 2024 and that includes cash of £312,000. Management is seeking opportunities.
Telecom fibre optic cable components supplier Unigel (UNX) interim revenues declined from £18m to £14.8m, but higher gross margins mean that pre-tax profit improved from £630,000 to £930,000. Productivity improved and there were greater sales of higher margin products.
IntelliAM AI (INT) has won contracts with Hovis manufacturing sites, and they are worth £100,000 over 12 months.
Wishbone Gold (WSBN) has raised £360,000 at 0.375p. This will provide working capital. New 3D modelling at the Red Setter prospect owned by Wishbone Gold shows a high quality target, plus the structure of a dome target. The assessment of the Western Australia shows gold, some near the surface, and copper resource.
Probiotix Health (PBX) has secured an agreement with Greek consumer business Eifron, which will introduce YourBiotix tablets in early 2025 under its own brand. There will also be other products using Probiotix Health’s core ingredient launched.
Valereum (VLRM) says that its El Salvador subsidiary has obtained a Digital Asset Service Provider licence. This enables it to operate a real world asset ecosystem.
Marula Mining (MARU) reported a higher loss in 2023. There was a £913,000 cash outflow from operating activities. There was also a £1.67m outflow from investing activities. The first manganese export sales have been completed from the Larisoro manganese mine.
Watchstone Group (WTG) had net assets of £5.8m at the end of June 2024. That includes cash of £6.2m, but a return of capital has reduced the cash balance to £1.7m.
Adsure Services (ADS) has declared a final dividend of 0.99p/share. The ex-dividend date is 17 October.
Ananda Developments (ANA) raised £80,000 from a retail offer at 0.3p/share. This is on top of the £2.1m already raised.
Daniel Thwaites (THW) director RAJ Bailey bought 45,000 shares ate 85.05p each and 13,000 shares at 85.25p each. He owns 1.3%. Constantine Logothetis has acquired more shares in SulNOx Group (SNOX) taking his total to 25.1%. William Black and Armstrong Investments has increased its stake in EPE Special Opportunities (EO.P) from 5.1% to 6.02%.
AIM
Steel structures supplier Billington (BILN) was always going to have a tough time maintaining the 2023 figures and interim revenues fell 4% to £57.9m. Pre-tax profit was flat at £4.6m, although building safety products made a higher contribution offsetting a decline in structural steel. Net cash is still £21.9m even after the 33p/share dividend. The second half will not hold up as well. Cavendish has upgraded its 2024 forecast for the second time in six months. Pre-tax profit has been raised from £8.5m to £9.25m, still well down on the 2023 figure of £13.4m.
Digital coupons and loyalty technology provider Eagle Eye (EYE) continues to grow at an impressive rate as more retailers take up its technology with AI providing additional revenue opportunities. In the year to June 2024, revenues were 11% ahead at £47.7m, while pre-tax profit improved from £4.5m to £6.1m. Net cash is £9.1m and it will continue to build up. The five-year target is revenues of £100m.
Judges Scientific (JDG) had a tough first half. Organic revenues were 3% lower with China the weakest market. The international nature of the business helps to offset some of the downturns in specific markets. Pre-tax profit fell 16% to £10.8m. The order book covers 17 weeks of revenues. Panmure Liberum expects a dip in full year pre-tax profit from £31.7m to £30.7m. The recently announced Geotek contract will benefit the 2025 results.
Good Energy (GOOD) continues its transformation into an energy services business, but the real change will not be seen until next year when they start to make a positive contribution. The reduction in energy prices hit revenues of the supply business and profitability. The first half of the previous year was a beneficiary of high gas prices, so it is no surprise that revenues declined sharply from £156.1m to £97.4m. Pre-tax profit slumped from £13.1m to £4.4m.
There is a better outlook for kettle controls and water filtration products supplier Strix (KETL) following significant restructuring and cost cutting in the first half. This led to large exceptional charges. Interim revenues improved 2% to £66.1m and pre-tax profit rose from £6.9m to £7.8m. This excludes the Halopure business, which is up for sale. There were improved profit contributions from all three divisions. There is no interim dividend. Net debt has fallen to £68.8m.
Packaging equipment and automation provider Mpac Group (MPAC) is acquiring BCA Automation for £12.9m in cash and shares. The acquired business focuses on robotics and conveyor systems for food and other sectors, so it fits well with the existing business. The Boston-based business focuses on the packaging area, whereas Mpac is focused on earlier stages of production.
Ceramic and fragrance products supplier Portmeirion (PMP) had flagged the interim figures. Revenues fell 17% and there was a loss of £2m. Costs are being lowered and this has enabled full year estimates to be maintained with pre-tax profit expected to recover from £3m to £4.2m. This will come via cost savings and additional revenues. The dividend is being rebalanced from 3.5p/share to 1.5p/share, but the total dividend for 2024 should be higher than last year’s 5.5p/share.
There was yet another upgrade for Warpaint London (W7L) from Shore Capital following the interim figures today. There was strong growth in Europe and the UK. North America grew slightly but the focus is higher margin business. Gross margins continue to improve. Overall group sales were one-quarter ahead at £45.8m and pre-tax profit jumped from £6.3m to £11m. The full year pre-tax profit forecast has been raised 5% to £24.5m.
Kinovo (KINO) has won an 18-month contract with Hackney council. It is worth up to £12m and covers a range of decarbonisation works on 300 properties. The work should start in the fourth quarter of 2024. There is also another contract with Hackney worth £400,000. This work replaces another contract that is being retendered.
Intermediaries services provider Fintel (FNTL) grew interim revenues from £31.7m to £35.7m, helped by acquisitions. Zeus has updated its forecasts for the most recent acquisition ThreeSixty Services. The 2024 revenues have been raised from £74.3m to £77.5m, while pre-tax profit has been reduced from £18.4m to £17.2m.
DP Poland (DPP) generated like-for-like growth of 22% in the first half and the growth remains above 20% in the second half. Money raised this year is being invested in new Domino’s sites in Poland. There is also growth in franchising with four corporate stores sold to an overseas operator. The loss is reducing, and DP Poland could move into profit in 2025.
Phoenix Copper (PXC) has published the pre-feasibility study for the Empire open pit mine in Idaho. Discounted NPV at 7.5% discount is $87.9m and total cash costs are estimated at $2.44/copper equivalent pound. Over eight years the mine could generate net free cashflow of $153m. Further exploration planning is happening, and equipment is being purchased for the processing site.
Global Petroleum (GBP) has risen on the back of yesterday’s application two additional licences near to an existing Juno licence in Western Australia, where it increased its stake from 70% to 80%. This is near the Havieron project. Precious and base metals targets have been identified that have similar characteristics to the existing licence. The company has appointed Omar Alumad, who it says has a record of identifying early opportunities, as chief executive and Hamza Choudhry as finance director.
Software training services provider Northcoders (CODE) reported a 26% increase in interim revenues to £4.4m. Registrations for courses were at record levels. There was a small interim pre-tax profit. Net cash is £700,000. The corporate business has been rebranded Counter. Investment in the cloud and data analytics means that there will be continued demand for Northcoders’ training and services.
Digital media company Catenai (CTAI) reduced its loss from £196,000 to £13,000 in the six months to June 2024. That is down to the fees earned for the £450,000 convertible loan note investment in oil and gas-focused data analytics company Klarian and reduced costs. Catenai has also moved from net liabilities to net assets. The cash position has improved to £31,500.
Africa-focused energy company Chariot Ltd (CHAR) has completed the drilling of the Anchois-3 main hole. It encountered gas, but gas pays are thinner than pre-drill estimates. The well will be abandoned. The next step for the project is being discussed with joint venture partners.
Rockfire Resources (ROCK) raised £450,000 at 0.1p/share to continue the development of Molaoi zinc silver lead project in Greece. Earlier in the month, the JORC resource was raised by 500% to 1.09 million tonnes of zinc, 260,000 tonnes of lead and 19.1 million ounces of silver. A retail offer to existing shareholders of up to £250,000 managed to raise £82,000.
MAIN MARKET
Motor and property finance lender S and U (SUS) says that motor business remains challenging, although this could improve in the second half if FCA restrictions are removed. Property lending is still growing. The interims will be published on 8 October.
Trading in Hostmore (MORE) shares has been suspended and then cancelled because the company is being placed in administration.
Shipbroker Braemar (BMS) reassured investors about 2024-25 trading. Interim operating profit should be slightly higher than the £7.6m reported in the same period last year. There is £3.3m in cash. Management is confident about the rest of this year and next year despite continued volatility in shipping markets.
DG Innovate (DGI) raised £620,000 at 0.075p/share with management promising to subscribe £200,000 when the energy storage technology developer is not in a closed period. This will fund development of e-drives and energy storage products. It will also help to fund setting up a joint venture with EVage Automotive.
Becket Invest (TAB) has agreed to buy SMT Holdings, which will invest in strategic metals and rare earths used in technology and aerospace.
Andrew Hore
Quoted Micro 9 September 2024
AQUIS STOCK EXCHANGE
Good Life Plus (GDLF) raised £275,000 from a convertible loan note issue that expires on 31 August 2025 when it can be repaid at a 10% premium or converted into shares at a 10% discount to the weighted average price over the previous month. If there is £2m raised in a share issue, then the loan notes are immediately convertible at a 10% discount to the issue price. The coupon is 10%. Following this issue, a partnership was announced with a major UK mobile operator. Good Life Plus will offer promotions to help with engagement with tens of millions of subscribers. This will provide access to potential subscribers to the Good Life Plus platform. There should be other partnerships in the coming months. The share price increased 3.28% to 3.15p. This is a new high for the shar price.
It is taking longer than anticipated Invinity Energy Systems (IES) even though the long duration energy storage market is growing. More time is required to develop the Mistral next-gen product to reduce costs. There is uncertainty about the timing of the recognition of revenues. The 2024 revenues were expected to be £36.3m, but it is likely to be lower. Jonathan Marren is replacing Larry Zulch as chief executive. There was £49.2m in the bank at the end of June 2024.
ProBiotix Health (PBX) is raising £1.2m at 3.36p/share. OptiBiotix Health (LON: OPTI) is unhappy with the latest fundraise by ProBiotix Health and claims a typo in the AGM notice means that it should not be allowed to issue more shares except on a pre-emptive basis. The company previously said that it had enough cash. ProBiotix Health believes that the error is not relevant. The underlying problem seems to be the high discount of the fundraising price to the market price.
EDX Medical (EDX) has signed a distribution agreement with Caris Life Sciences. They will work together to distribute Caris molecular profiling services in the UK and Nordic countries. The deal lasts for three years, and additional regions and products could be added.
Recycling services provider Majestic Corporation (MCJ) has agreed to acquire Deeside-based Telecycle Europe for up to £2m. The acquisition target already acts as a tolling agent for Majestic Corporation, and it is owned by Peter Lai, the 71.9% shareholder in Majestic Corporation. The deal will secure a steady supply of recyclable materials and should improve margins. In 2021, Telecycle Europe mad a post-tax profit of £175,000. The initial payment is £150,000 and then monthly of payments of £150,000. The full amount is dependent on volumes being met.
Peninsula Yacht Services is adopting SulNOx Group (SNOX) fuel additives for the fuel it supplies from its Gibraltar. The specialist pumping system is being installed following permission from the authorities.
Mortgage Chat has changed its name to Pitch Pit (PICH) and its strategy to become an artificial intelligence and technology accelerator. Chandila Fernando and Judith Hough will head up the new operations, who will join the board after background checks are completed. Brian Stockbridge of First Sentinel has already joined the board. The company plans to raise £500,000.
Oscillate (MUSH) is progressing the proposed acquisition of Quantum Hydrogen Inc. Regulatory approval of the documentation is being awaited and a general meeting should be announced this month.
SuperSeed Capital (WWW) had net assets of 114p/share at the end of June 2024.
Equipmake (EQIP) announced that the HTM-3500 heavy vehicle electric motor maintains its peak performance of 3,500Nm and 400kW, while its continuous power output has doubled to 200kW at 2,500rpm.
Time to ACT (TTA) subsidiary GreenSpur has won a design contract to develop an optimised wind turbine generator for XFlow Energy.
DXS International (DXSP) has changed its corporate adviser to Hybridan. Wishbone Gold (WSBN) has appointed Tavira Financial to replace SP Angel as corporate broker. A new investor relations strategy will be announced shortly. Tennyson Securities has published research on Tap Global Group (TAP). It is available via www.tennysonsecurities.co.uk.
AIM
Weak demand from independent restaurants and bars in the UK and internationally held back the interims of ceramic products manufacturer Churchill China (CHH). Independents are suffering from higher costs. Demand from national chains has held up better. Revenues fell from £44m to £40.6m, while the underlying pre-tax profit edged up from £4.7m to £4.8m. This is because capital investment has helped to improve margins. The interim dividend was raised 4.5% to 11.5p/share. The full year outcome is dependent on fourth quarter trading.
Agricultural products supplier Camellia (CAM) says trading conditions eased slightly in the first half of 2024, but they are still difficult. Revenues improved 7% to £105.1m and the loss was reduced from £15.1m to £9.7m. There is no interim dividend. The loss from tea fell, while nuts and fruits profit more than trebled to £3.2m. The engineering business returned to profit. Net cash is £24.1m and there is an investment portfolio worth £37.6m. The full year loss should be between £10m and £12m.
Signing up Donlim Group for a filtration technology licence did not offset the weaker trading news at laundry filtration technology developer Xeros Technology (XSG). Indian licensee IFB has delayed the launch of new 9kg washing machine until next year and French environmental standards for microplastics have not been clarified. Donlim owns the Morphy Richards brand, and it will manufacture the XF3 external filter under licence from the middle of next year. The 2024 pre-tax loss estimate has been raised from £2.7m to £4.3m. William Black and Armstrong Investments have increased their stake from 6.34% to 7.3%.
Rockfire Resources (ROCK) has increased the size of the resource at the Molaoi zinc lead silver germanium deposit in Greece by 500%. The JORC 2012 compliant mineral resource estimate is 15 million tonnes at an average grade of 9.96% zinc equivalent. Allenby estimates that it is one of the top 20 undeveloped zinc prospects. There is also 4.8mt of germanium. There are high recovery rates. Only 2.1km of the 7km potential strike has been tested so far. Allenby estimates a fair value of 2.6p/share.
Hostels operator Safestay (SSTY) improved interim revenues by 7% to £10.7m and the loss reduced from £947,000 to £113,000. Sales to the end of August were well ahead of last year and forward bookings are strong into next year. The lease of the loss making Venna hostel has been surrendered. Four new properties have been added this year. NAV increased by 17% to 49.8p/share.
Real-time financial data provider Arcontech (ARC) increased full year revenues by 7% to £2.9m and pre-tax profit improved from £1m to £1.1m. More than 90% of revenues are recurring. Net cash was £7.2m at the end of June 2024. The dividend has been raised to 3.75p/share. Pre-tax profit is set to fall this year because of investment in sales.
Andrew Carter has resigned as chief executive of wines producer Chapel Down Group (CDGP) and will become the boss of Timothy Taylor next year. Interim revenues fell 11% to £7.12m due to a slump in off-trade sales. There was not the expected restocking by retailers. Pre-tax profit slumped to £40,000. Net debt was £5.8m at the end of June 2024 after investment in further planting at the Buckwell vineyard.
Shield Therapeutics (STX) had $8.1m in gross cash at the end of June 2024 with a milestone payment of $5.7m expected in the second half. The first half cash outflow was $5.8m. Management believes that the business should be monthly cash flow positive during the second half of 2025. Iron deficiency treatment ACCRUFeR generated revenues of $11m in the US in the first half and total group revenues were $12.1m. Full year US revenues could be $27m.
A recovery in the Hercules Site Services (HERC) share price led to a decision to raise £8m via a subscription and placing at 49.5p/share. Morson chief executive Ged Mason subscribed for 9.5% of the enlarged share capital. Majority shareholder Brusk Korkmaz has sold 6.06 million shares to Wasdell Packaging, whose majority shareholder Martin Tedham has been appointed as a director.
First Property (FPO) has launched a one-for-three open offer to raise £2.96m at 8p/share. It is underwritten by directors Ben Habib and Alasdair Locke. The cash will settle the deferred payment for the Blue Tower property and finance the completion of the fit-out.
MAIN MARKET
Precision components supplier Carclo (CAR) says trading is in line with expectations with margins prioritised over volumes. The restructuring of US operations is ahead of schedule. Aerospace demand is strong, which has helped the speciality division.
Andrew Hore