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Quoted Micro 27 September 2021
AQUIS STOCK EXCHANGE
Michael Williams has stepped down as chairman and chief executive of British Honey Company (BHC) and non-exec Philip Seers has also resigned. Robert Porter-Smith has rejoined the board and Alex Maurice becomes chief operating officer. This follows the general meeting requisition, and it is unclear what will happen with that.
Ecotricity has accelerated its 400p a share bid for rival renewable energy supplier Good Energy (GOOD) and it will close on 8 October.
St Mark Homes (SMAP) had net assets of 120p a share at the June 2021. Interim turnover was flat at £108,000 and the loss was reduced from £84,000 to £49,000. The residential development in Sutton will be marketed later this year.
Japanese whisky supplier Rogue Baron (SHNJ) generated revenues of $505,000 in the first half of 2021. There was a loss of $150,000 before flotation costs. Net cash is $139,000. A marketing push is planned for next year.
Rural Broadband Solutions (RBBS) has 2,650 monthly paying connections and expects 2,800 by the end of the year. Interim revenues were £395,000 and the loss was £401,000. Costs have increased due to the strengthening of management to boost the sales and marketing operations. Net cash was £341,000.
Western Selection (WESP) made a reduced loss in the year to June 2021 and no dividend is being paid. Net assets are £10m.
Yooma Wellness Inc (YOOM) is acquiring US-based sparkling water brand Big Swig for $2.5m, minus anticipated liabilities, in shares. This will increase the number of retailers the group deals with in the southern US.
KR1 (KR1) has participated in the Basilisk crowdloan and Kusama (KSM) parachain auction. It contributed 11,111.1 KSM to the crowdloan.
TruSpine Technologies (TSP) has raised £650,000 at 10p a share and Oberon Capital has been appointed as broker. An FDA 510k application for spinal stabilisation system Cervi-LOK should be lodged before the end of the year.
Rutherford Health (RUTH) has opened a community diagnostics hub in partnership with Somerset NHS Foundation Trust. There are up to five community hubs planned.
Capital for Colleagues (CFCP) had net assets of 69.71p a share at the end of August 2021.
IamFire (FIRE) has raised £396,000 at 3p a share. It issued broker Peterhouse with 200,000 warrants at a strike price of 10p a share. John Taylor, a director of AIM and Aquis companies, and Sandy Barblett, who is a director of Rogue Baron, have joined the board. Burns Singh Tennent-Bhohi is leaving the board.
Oscillate (MUSH) director Burns Singh Tennent-Bhohi has bought one million shares at 2.072p each. He owns eight million shares. The sister of the chief executive of S-Ventures (SVEN) has sold 600,000 shares at 27p each.
AIM
Judges Scientific (JDG) is improving its order book and some of the benefits will show through in the second half. In the six months to June 2021, revenues increased from £37.4m to £43m – the 2019 figure was £40.2m. Underlying pre-tax profit improved from £6.4m to £8.5m, which is slightly higher than 2019 interim figure. To put this in perspective, there have been three acquisitions since the first half of 2019, but it does show a strong recovery.
SourceBio International (SBI) says that updated Covid-19-related travel requirements, that mean that inbound fully vaccinated people will not need PCR tests on days two and eight, will hamper progress in the fourth quarter. Testing volumes had been growing and they will fall back. So far this month, the figure is 14,000 per day.
IT recruitment and services provider Parity Group (PTY) has been increasing investment in its business but that has led to an interim loss. In the six months to June 2021, Parity revenues declined from £29.9m to £26m, which was also below the second half 2020 revenues. Revenues are continuing to decline. A small interim profit has become a small loss and the loss is set to increase in the second half. Parity has swung from net cash to net det of £1.1m, excluding lease liabilities, at the end of June 2021 and a further cash outflow is expected in the second half.
Pennant International (PEN) growing its software revenues and plans to increase its exposure to the rail sector in order to lessen dependence on aerospace and defence. The first half was tough. Revenues did improve from £6.26m to £7.43m, but Pennant remains loss making. There are more than £1m of annualised savings. The three-year order book is worth £26m and there is also a significant pipeline of potential projects for the technical training business.
Cyber security firm ECSC (ECSC) increased interim revenues by 15% to £3m and there was a small reduction in loss to £207,000. Utilisation levels of consultants are increasing, and the recurring managed detection and response revenues grew by 17%. A full year loss is expected.
Cosmetics supplier Warpaint London (W7L) has done well with the roll out in Tesco stores and next year there will be a further boost from a Boots roll out. Interim revenues rose from £13.5m to £18.4m even though there was a decision to reduce close out activity. Profit quadrupled to £1.6m and it was higher than the 2019 figure. The interim dividend is 2.5p a share. Sales in the eight months to August were £27m.
Steel structures supplier Billington (BILN) improved interim revenues by 15% to £37.7m and pre-tax profit was one-quarter higher at £763,000. Net cash was £12.1m at the end of June 2021. Structural steel operations were near to full capacity in the period, while the safety products business increased revenues by one-fifth.
Kettle controls and water appliances manufacturer Strix (KETL) produced record interim figures, even though new product launches were too late to make a difference. The new factory has opened in China with plenty of capacity to handle growth.
Employee benefits services and insurance provider Personal Group (PGH) is growing its SaaS-based business. The deal with Sage is also starting to generate more significant revenues following a free pilot stage. Group revenues fell because of the lack of face-face insurance sales, but there should be a recovery next year.
MAIN MARKET
Maternity wear supplier Seraphine Group (BUMP) says that first quarter trading was strong, but it has been tougher in the second quarter because of supply issues. That means that first half profit will be lower. Full year profit should be at least in line with the 2020-21 figure.
Path Investments (PATH) has provided a loan facility of up to £600,000 to DG Innovate, which Path has conditionally agreed to acquire. DG Innovate is developing electric motor and energy storage technologies.
Serum Life Sciences is investing £50m in Oxford Biomedica (OXB) in return for a 3.9% stake. The cash will be invested in developing the company’s manufacturing facility.
NMCN (NMCN) plans to move from the premium to the standard list. This is part of Svella’s requirement to extend its commitment to subscribe for shares in NMCN. A circular is required to convene a general meeting that should be held by 1 November. Lloyds Bank has extended the company’s overdraft facility to 5 November.
Andrew Hore
Andrew Hore – Quoted Micro 26 July 2021
AQUIS STOCK EXCHANGE
Ecotricity has launched a 340p a share cash bid for Good Energy (GOOD). Ecotricity believes the combined group would be better placed to compete in the energy supply business. The Good Energy board rejects the bid.
Arbuthnot Banking (ARBB) reported a bounce back in interim pre-tax profit from £200,000 to £3m. the main profit improvement was at Arbuthnot Latham. NAV was 1292p a share at the end of June 2021. Assets under management reached £1.22bn. A second interim dividend of 16p a share was announced, and it will be paid on 24 September.
NQ Minerals (NQMI) says its Hellyer gold mine generated revenues of A$19.8m in the second quarter, while net income was A$5.7m. The major capital investment in the mine cost A$16.4m and was finished during the quarter. NQ Minerals is still seeking to move to a full listing on the London Stock Market.
Sativa Wellness Inc (SWEL) generated record revenues in the first half of 2021, and it is generating cash from operations. CBD products supplier Goodbody Botanicals is profitable. There have been 47 clinics opened to offer Covid-19 testing.
Apollon Formularies (APOL) says that medicinal cannabis formulations developed by its subsidiary have been able to kill prostrate cancer cells.
Watchstone Group (WTG) management recommends that shareholders reject the mandatory 34p a share bid.
Ervin Kovac has resigned as director of Freyherr International (FRYR) and the shares remain suspended as the company’s financial position remains uncertain. Trading was suspended more than nine months ago.
Harry Hyman has taken a 3.08% stake in Oberon Investments (OBE).
Newbury Racecourse (NYR) is moving from the Access segment to the Apex segment.
AIM
Digital payments business Boku (BOKU) increased interim revenues by 37% to $34m – organic growth was 21%. Investment is increasing in order to take advantage of growth prospects, but cash is also increasing.
Trading is improving at employee benefits services and insurance products provider Personal Group (PGH) and interim revenues were 12% ahead at £34m even though weak insurance sales last year mean that premium income fell. SaaS-based revenues increasing by 50% – helped by the partnership with Sage. Sales of consumer electronics products through PG Let’s Connect has improved by one-fifth.
Insolvency levels remain relatively low, but Begbies Traynor (BEG) still grew strongly last year. In the year to April 2021, underlying pre-tax profit improved from £9.2m to £11.5m – a combination of organic and acquisitive growth. There is more to come this year from recent acquisitions.
Lawyer Gateley (GTLY) managed to increase its pre-tax profit from £18.1m to £19.3m despite the tough trading conditions in the year to April 2021. The property and corporate finance divisions did particularly well last year. This kept utilisation levels high. A final dividend of 5p a share was announced. Gateley is paying £815,000 for Tozer Gallagher, which is a quantity surveyor and construction consultant.
Online womenswear retailer Sosandar (SOS) increased its full year revenues by 35% to £12.2m. It remains loss-making and that is likely to continue this year even though revenues continue to grow rapidly. First quarter revenues jumped by 256% to £5.7m, although the comparatives were weak. Active customers increased by 23% compared with the previous quarter. Singer forecasts double full year revenues to £24.4m.
Parcel and freight delivery company DX (DX.) is still growing its freight business faster than expected and analysts have upgraded their forecasts for 2020-21 and the current year. The additional business is also more profitable than in the past. DX Express revenues are flat due to lower office mail delivery revenues.
Judges Scientific (JDG) had a much better order book at the end of June 2021. It was 49% higher than June last year. Organic sales growth was 5% compared with full year forecasts of 1.5%.
Open Orphan (ORPH) spin out Poolbeg Pharma (POLB) has started trading on AIM. The shares are trading at 10.875p, which is equivalent to 3.63p a share to Open Orphan shareholders. The Open Orphan shareholders cannot sell yet.
Vela Technologies (VELA) has invested £750,000 in Northcoders Group, which joins AIM on 27 July. Manchester -based Northcoders provides software coding training.
International payments business Cornerstone FS (CSFS) is pursuing potential acquisitions, but it has not secured any since it floated earlier this year. The mix of business remains consistent, although more of it is direct which improves margins, and trading has almost returned to pre-pandemic levels.
MAIN MARKET
New shell Acceler8 Ventures (AC8) has soared from its placing price of 100p to 215p on limited volumes. After expenses, the cash in the company is equivalent to 60p a share. The sector of the potential target has been kept vague.
Sivota (SIV) is a shell that wants to acquire Israel-based technology businesses. The company has just under 78p a share of cash. The share price has risen from the placing price of 100p to 112.5p.
NMCN (NMCN) is making progress with the refinancing and related documentation. The 2020 accounts are expected to show a pre-tax loss of much more than the £24m previously indicated.
Aquaculture technology developer OTAQ (OTAQ) increased full year revenues by 18% to £4.05m, while the underlying loss was reduced from £1.05m to £726,000. Restrictions have held back the progress of the business.
Town Centre Securities (TOWN) has collected 88% of the billed rent of £4.9m for the quarter to June 2021 with a further 8% that was agreed to be deferred.
Andrew Hore
Andrew Hore – Quoted Micro 28 June 2021
AQUIS STOCK EXCHANGE
Good Energy (GOOD) says it is perming better this year than in the same period last year which included the start of the lockdown. Forward buying has improved margins. The smart meter rollout is accelerating.
Dispersion Holdings (DEFI) has invested C$200,000 at 18 cents a share in Defi Yield Technologies Inc. This gives it a 3.5% shareholding in the company that is developing a platform for decentralised financial services.
Altona Rare Earths (ANR) has raised £178,000 at 12p a share, which was a premium to the market price. Altona subsequently acquired up to 70% of the Monte Muambe rare earths project. It will take a 1% stake on signing the deal and increase it to 20% in phase 1 when £40,000 in cash is paid and one million shares are issued. In order to take a 70% stake a total of £240,000 in cash will be paid and three million Altona shares have to be issued. On top of this there are minimum expenditure commitments over three phases of the project.
Rogue Baron (SHNJ) says its bar in Washington DC increased sales by 38% to $225,000 in the three months to May 2021 even though capacity has halved. Trading in the shares has started on OTCQB.
Tectonic Gold (TTAU) is preparing to drill the Specimen Hill project in Queensland. There have been positive results from sampling and the structural modelling of the site has been completed.
Capital for Colleagues (CFCP) had net assets of 64.06p a share at the end of May 2021. It sold his investment in Anthesis Consulting for £1.15m during the period. There was cash of £2.65m at the end of May 2021.
DiscovOre (ORE) is changing its name to Oscillate. and it will focus on the medical psychedelic industry. This includes treatments for drug-resistant depression, anxiety, addiction and post-traumatic stress disorder.
Ananda Developments (ANA) expects to begin construction of a research facility in July. Strains of medicinal cannabis have been selected for research. Liberty Herbal Technologies has received a US patent for its vaping device.
CBD products supplier Sativa Wellness Group Inc (SWEL) has opened its 40th testing clinic for travellers and has introduced blood testing for Covid-19 immune response through some clinics. The clinics will be listed on the NHS Patient Access service.
Valereum Blockchain (VLRM) has raised £1m at 70p a share.
Virgata Services has extended its offer for Walls & Futures REIT (WAFR).
Tim and Charlotte Syder have increased their stake in Newbury Racecourse (NYR) from 4.5% to 8.7% and they appear to have been bought from Andy and Judith Stewart.
AIM
Printed circuit technology developer and supplier Trackwise Designs (TWD) has disappointed the market due to electric vehicle contract delays. Interim revenues more than doubled from £2.91m to £6.07m thanks to the initial contribution from Stevenage Circuits. A pre-tax profit of £200,000 in 2019 was turned into a loss of £400,000. There is currently net cash of £2.87m. The new factory should open later in the year.
Demand for Accoya wood continues to be strong, but Accsys Technologies (AXS) will not be able to increase production capacity until a new reactor is installed in the Netherlands later in the year to March 2022. In 2020-21, Accsys moved into profit and cash generation improved. A decision is awaited about how Accsys will make progress with the Hull Tricoya plant, where the contractor has resigned. Cash was raised in May to finance the US joint venture, but more cash may be required.
First Property (FPO) had to reduce the valuations of its owned Polish properties last year and that hit net assets. Management says that some of that valuation reduction should be reversed following a restructuring of the finance lease on one of the properties. NAV fell 22% to 42.8p a share at the end of March 2021 and it could improve to 48.8p next March. Loan to value is 45.3%. There is no final dividend.
In 2020, Dekel Agri-Vision (DKL) reported revenues of €22.5m and a reduced loss. The palm oil supplier will benefit from the higher palm oil price this year, enabling it to move into profit. The cashew plant will also make a contribution.
Musical instruments retailer Gear4Music (G4M) performed strongly last year, and revenues improved from £120.3m to £157.5m, while pre-tax profit jumped from £3.1m to £14.6m. This year will be tough, though. Pre-tax profit is forecast to fall back to £7.5m even though current trading is better than expected. The company has started buying existing brands. Premier is a drums brand and Eden is a bass amp supplier. Further acquisitions are likely.
Packaging manufacturer Robinson (RBN) says that revenues in the first five months of 2021 are 17% ahead of the same time last year. This is mainly due to an initial contribution from the Schela acquisition and passing on raw material costs – volumes are 1% ahead.
Jade Road Investments (JADE) had a net asset value of 67p a share at the end of 2020. There was an improved valuation of quarry company Future Metal Holdings. The three-year mining licence has been renewed and an independent assessment of the business will be published later this year.
Tristel (TSTL) has gained approval for foam-based surface disinfectant Jet from the EPA in the US. This will enable approvals to be sought with individual states. Tristel Duo, the disinfectant for ultrasound devices, has been approved in Canada and South Korea.
Vector Capital (VCAP) has raised £1.5m at 47p a share and this will be used for marketing and increasing the loan book. The cash raised at the end of 2020 has been deployed.
Location Sciences (LSAI) has given 12 months notice to its chief executive and finance director. They are continuing to work in the business.
MAIN MARKET
Nottinghamshire-based construction and infrastructure services provider NMCN (NMCN) has secured a highly dilutive rescue fundraising after falling into financial difficulties The company continues to lose money and the terms reflect the dire financial position. A £14m subscription is proposed, with a up to £5m more to come from an open offer. There is also a £10m convertible bridging loan – convertible at 20p a share and with fees and interest it equates to 62.4 million shares. Svella, which is run by former Stobart boss Andrew Tinkler, will subscribe for up to £7.4m of the subscription shares and provide the loan.
Fasteners supplier Trifast (TRI) reported slightly better than expected 2020-21 figures. Industrial activity is recovering. This year pre-tax profit is expected to improve from £11m to £12.9m.
Tirupati Graphite (TGR) has increased sales of its graphite products CarboflameX and GrafEN 45545 with trial and sample orders received. Land has been secured for a dedicated product development facility.
Cizzle Biotechnology (CIZ) has signed a deal to develop a companion diagnostic with St George Street Capital for certain of its potential autoimmune treatment assets that it has licensed. This deal takes Cizzle into a new area, but lung cancer remains the focus.
Zegona Communications (ZEG) is paying an interim divided of 2.6p a share. That is based on the dividend from Euskaltel and does not reflect the proceeds from the telecoms company’s takeover.
Andrew Hore
Andrew Hore – Quoted Micro 21 June 2021
AQUIS STOCK EXCHANGE
CBD and hemp seed oil products supplier Voyager Life (VOY) has confirmed its flotation on Aquis on 30 June and the 295 Seedrs crowdfunding investors from earlier in 2021 will have the chance to participate in the associated fundraising. Seedrs Nominees Ltd currently owns 14.6%. A shop will be opened in St Andrews in Scotland during July. Greencare Capital (GRE) has a stake in Voyager Life.
Eastinco Mining and Exploration (EM.P) has agreed a joint venture with a Rwandan partner to explore mineral opportunities in southern Rwanda. Eastinco will own 70% of Kinunga Mining, while the partner will have 30% as a free-carried interest. Along with Incanthera (INC) and TruSpine Technologies (TSP), Eastinco is being moved from the Apex segment to the Access segment.
Block Commodities (BLOC) has extended its option to acquire a 70% stake in medicinal cannabis licence granted to Magnus Cannabis Group. The exclusivity period lasts until the end of August. Block has issued shares to pay creditors £77,395.
Gunsynd (GUN) has invested £218,000 in two million shares in base metals and lithium exploration company Charger Metals Ltd, which is planning to list on the ASX. It will raise at least A$6m before the listing in the third quarter of 2021. Gunsynd has increased its stake to 3.6 million shares. Gunsynd has raised £93,000 by selling part of its stake in Empress Royalty Corp.
BWA Group (BWAP) lost £3.64m in 2020, mainly due to a £3.59m loss on revalued assets. NAV is £1.75m.
Altona Rare Earths (ANR) has three acquisition contracts under negotiation. Management believes it can secure additional projects in Mozambique, Angola, Tanzania and Uganda. Altona would acquire a stake of at least 51%. A Main Market listing is expected by September.
Cadence Minerals (KDNC) says that Macarthur Minerals, in which it has a 1% stake, is spinning-out its non-iron ore assets in Pilbara into Infinity Mining, which will float on the ASX. Singapore-based Jin Sung may invest in Infinity and/or Macarthur.
The first six resolutions were not passed at the Early Equity (EEQP) AGM. There will be no changes to the board.
Trading has been restored in the shares of Black Sea Property (BSP).
AIM
Open Orphan (ORPH) has completed the demerger of non-core infectious disease assets in the form of Poolbeg Pharma, which will join AIM next month. Shareholders on the Open Orphan register on 17 June will be given one Poolberg share for every 2.98 Open Orphan shares they own. The influenza treatment and vaccines developer will be making an offer to private investors via PrimaryBid. The shares distributed by Open Orphan will initially be held centrally by Croft Nominees and investors will not be allowed to deal in them until nine months after the AIM admission of Poolbeg.
Future Biogas has also confirmed its plan to float on AIM. It currently operates ten anaerobic digestion plants supplying clean biogas. Future Biogas wants to move from developing projects and selling them on to retaining ownership of some of the plants it develops. There are plans to construct up to 25 over the next six years. These plants can cost up to £20m each. The company hopes to raise £35m and it already has £5m in the bank.
Tatton Asset Management (TAM) is generating investment inflows of £100m each month and total assets under management have reached £9.5bn. This has been achieved even though face to face meetings remain relatively rare with online meetings still dominating. Tatton is benefiting from the trend for IFAs to move funds to discretionary fund managers. Full year revenues increased by 9% to £23.4m. Underlying earnings jumped 23% to 14.7p a share. Organic growth can be enhanced by acquisitions. The target is £15bn assets under management in three years time.
Access Intelligence (ACC) is acquiring ASX-listed media intelligence services provider Isentia and raising £52m in a placing and offer at 120p a share. This deal will more than double group revenues. In the year to November 2022, group revenues could reach £75m and the enlarged group could make a small profit.
There was a full year contribution from CSS in the latest IG Design (IGR) figures and this helped to increase the proportion of revenues from craft products. Revenues increased from $624m to $873m, while pre-tax profit was flat at $38.6m. The order book covers more than 60% of this year’s forecast revenues. The dividend is maintained at 8.75p a share.
Vianet (VIA) coped well with the decline in revenues in the year to March 2021 and it has limited its underlying loss to £2.8m. Vianet’s smart zones division had reduced charges to pubs while they were closed and since the relaxation of lockdown conditions these charges have been raised. New contracts are being won by the smart machines vending technology division. This means that revenues could bounce back from £8.4m to £14.8m this year, which could be enough to move Vianet back into profit.
Another earnings upgrade for K3 Capital (K3C) following its pre-close trading. The 2020-21 pre-tax profit forecast was increased from £12.9m to £13.9m and next year’s forecast has been raised from £13.5m to £14.6m. There is £14m in the bank.
ReNeuron (RENE) had to halt its trial for the lead human retinal progenitor cell (hRPC) project because one patient got an eye infection. It means that trail data could be delayed by three months. The cash should still last until after March 2022.
Kidney diagnostics firm Renalytix AI (RENX) generated revenues of $600,000 in the three months to March 2021. N+1 Singer forecasts revenues of $3.4m for the year to June 2021.
Local government and engineering documentation software provider IDOX (IDOX) reported interims in line with expectations and it remains on course to improve full year pre-tax profit from £10.5m to £12m. IDOX has sold its non-core operations and it is in a good position to acquire businesses in its core markets.
Dekel Agri-Vision (DKL) has purchased 1,500 tonnes of raw cashew nuts ahead of the completion of the cashew plant in Tiebissou. There will be further news about the plant in the next few weeks. Higher crude palm oil prices combined with good crops mean that Dekel remains on course for profitability this year.
MAIN MARKET
CML Microsystems (CML) reported a 17% decline in continuing revenues to £12.5m. The sale of the storage division enables CML to concentrate on its wireless communications technology. The addressable market is being expanded through the launch of SuRF products for microwave /mmWave applications. These products are currently being designed-in to the equipment made by customers. That means it will take time for revenues to build up. Net cash is £32.2m. The total dividend is 52p a share, reflecting the return to shareholders of part of the proceeds from the sale of the storage division.
Telecoms services provider Toople (TOOP) improved its interim gross profit by two-fifths to £470,000, even though revenues declined. Cash continues to flow out of the business and there is still some way to go towards breaking even. Additional sales staff are being taken on. There was nearly £1m in the bank at the end of March 2021. The £1.62m of loan notes and interest are not repayable until the end of 2022. Management is confident that it will have the backing of its investors if it secures a suitable acquisition.
Challenger Acquisitions (CHAL) has secured a new agreement for the acquisition of renewable energy company Cindrigo Energy. Cindrigo is undertaking an open offer to shareholders to raise up to £2.1m and these shares would not have been covered by the original agreement.
NMCN (NMCN) is in talks concerning a refinancing. There is a strain on working capital with two loss making water contracts and other problems. There will be a full year loss.
Triad Group (TRD) moved back into profit last year, thanks to the focus on higher margin consultancy work, and cash in the bank increased to £4.9m. The IT services provider is paying a 2p a share dividend.
HeiQ (HEIQ) has acquired Hong Kong-based Life Material Technologies for an initial $6.45m. This will enhance the antimicrobial technology part of the business. The acquired company’s additives are used in plastics, coatings, ceramics and textiles.
Andrew Hore
Andrew Hore – Quoted Micro 24 May 2021
AQUIS STOCK EXCHANGE
British Virgin Islands-based Boanerges (BNRG) is a SPAC seeking to acquire technology companies involved in big data, machine learning, telematics and internet of things. Boanerges floated on 17 May 2021 when it raised £500,000 at 20p a share. In April, an initial £51,500 was raised at 0.1p a share and a further £75,000 was raised at 10p a share. That means that pro forma cash is equivalent to 1p a share. The shares are trading at 24.5p (23p/26p).
Bid expenses could cost Walls & Futures REIT (WAFR) up to £210,000. The 50p a share bid is rejected by the company’s board, which says that it represents a 51% discount to NAV and a 62% discount to the market value of its properties, after cash is deducted. Management is offering shareholders the opportunity to vote on a winding up of the company if the bid does not become unconditional. This would require 75% of the votes to be carried.
Brewer Adnams (ADB) continued to be hit by lockdowns in the six months to March 2021. Online demand for the beer brands remained strong and management says that bookings for pubs are building up since the lockdown was eased. There is even hope that people holidaying in the UK will boost its hotels.
Early Equity (EEQP) is acquiring Farina Investments, which provides services to the insolvency sector, for £1.9m in shares at 0.5p each. This is effectively a business that is involved in the acquisition and disposal of distressed assets. The deal will increase Early Equity’s stake in Lotto Studios, which is launching a social casino game with ITV Studios, to 20%. The deal also brings a 10% stake in life sciences company Pure Sea Nutrients. A further £90,000 has been raised in a placing at 0.5p a share.
The AGM has been postponed and there were some irregularities in the voting process.
Incanthera (INC) is continuing with discussions with two global cosmetic companies for its Sol skin cancer technology. The idea is to use Sol as a skin cream to protect sun damaged skin. Net cash was £960,000 at the end of March 2021. Incanthera recently raised £1.14m at 12p a share. There is enough cash to get into the second half of 2022. There could be an upfront payment from a deal, but the big money will take longer to be generated. More cash will be required to push ahead with other products.
Apollon Formularies (APOL) says that joint testing with Aion Therapeutic reveals that their combined formulations are effective in killing HER2+ breast cancer cells grown in 3D cell culture. HER2+ accounts for one-fifth of breast cancer. Apollon’s Jamaican medicinal cannabis formulations were particularly good at killing living HER2+ cancer cells directly.
Ananda Developments (ANA) says that its 50%-owned subsidiary DJT Plants has been granted a licence to grow >0.2% THC cannabis for research activities by the UK government. Building of the research facility will commence immediately. There will be 65 strains grown at the facility and plans to extract distil and isolate cannabis products. The business had previously grown cannabis for GW Pharma. The focus will be neuropathic pain, Parkinson’s Disease and epilepsy. Directors Charles Morgan and Melissa Sturgess have each been issued with 100 million shares as contingent consideration following the grant of the licence.
Gledhow Investments (GDH) had net assets of £2.35m at the end of March 2021, up from £907,000 12 months earlier. That includes £374,000 in cash.
Vulcan Industries (VULC) subsidiary M+G Olympic has won more than £500,000 of orders for swimming pools.
All Star Minerals (ASMO) is negotiating the acquisitions of a company with gemstone assets and another company with diamond assets. This is an area where the management team has experience. Further cash will need to be raised to complete due diligence.
NQ Minerals (NQMI) has raised a further £224,000 at 7p a share. Chief executive Walter Doyle has left the company. Wishbone Gold (WSBN) has raised £1.4m at 10p a share and each share has one-half of a warrant exercisable at 20p a share. Wishbone will refine the locations of drill targets at the Red Setter projects and then use the cash to finance the drilling. Sativa Wellness Inc (SWEL) has completed a placing raising $4.61m at 7.875 cents per unit. A unit comprises one share and one-half of a warrant exercisable at 10.5 cents a share. Love Hemp (LIFE) has raised £348,000 via the exercise of warrants at 1p each.
AIM
Compliance and energy saving services provider Sureserve (SUR) reported an underlying interim pre-tax profit was 31% higher at £4.4m. Energy saving’s profit contribution fell by three-fifths, but higher margins for the much larger compliance division meant a much higher profit. A full year pre-tax profit of £12.9m is forecast.
Tracsis (LSE: TRCS) should get additional opportunities from the Williams report on the rail industry. The report was in line with expectations. Great British Railways will take up the overall responsibility for the integrated rail network. The reforms are due in 2023, although there could be delays. Things like digital tickets, simplified fares and season ticket flexibility provide opportunities for Tracsis.
Accrol (ACRL) says that adjusted earnings for 2020-21 will be in line with expectations even though sales will be lower than expected due to a decline in the market. Accrol has 16% of the toilet tissue market and it should return to growth when the comparatives do not include the Covid-19 related panic buying. There are plans to increase capacity at the main Leyland plant.
Surgical devices developer Creo Medical (CREO) says trading was ahead of expectations in the first quarter of 201. This has led to a 10% increase in forecast revenues to £22.1m. There will still be a loss of £30m. The recovery in elective surgery is increasing demand for surgical devices.
Nexus Infrastructure (NEXS) is building up its electric vehicle infrastructure business and it could move into profit in the next year. The TriConnex utility connections business is also growing revenues, although profit was flat. However, group revenues were one-quarter lower at £64m, because civil engineering business Tamdown continues to report lower revenues and profit. Nexus did make an overall operating profit. The 2020-21 pre-tax profit has been upgraded to £3.6m and it could reach £6m next year.
PerkinElmer has made a 382p a share bid for Immunodiagnostic Systems Holdings (IDH).The bid is at one-third of the share price high around one decade ago. The share price has not been at this level for nearly seven years.
MAIN MARKET
Dukemount Capital (DKE) has secured a joint venture with flexible power company HSKB, which will be renamed DKE Energy. The 50%-owned business will develop two gas peaking facilities which will produce 10MW of power. These will cost £6.25m and the intention is to secure a 15-year, inflation linked contract. Dukemount director Paul Gazzard founded HSKB.
One Heritage Group (OHG) has signed a construction finance facility with Lyell Trading. The facility is for £3.5m and lasts 18 months at a nominal interest rate of 9.6%. The facility will be used to finance Oscar House, a development of 27 apartments in central Manchester. The development should be completed in the first quarter of 2022.
Mast Energy Developments (MAST) says that the Brodesley reserve power project has reached construction ready status.
Lee Marks has been appointed chief executive of NMCN (NMCN) and interim chief executive Robert Moyle is retiring from the board after a transition period.
Kanabo Group (KNB) has signed an agreement with Pure Origin, which will manufacture and package Kanabo’s CBD wellness products from its facility in Wales. There will be a dedicated production line for VapePod products. This deal will lead to a full international product launch.
BATM Advanced Communications (BVC) has started to deliver two Covid-19 diagnostic tests. The saliva-based test will be used by the Italian team at the Olympic Games in Japan.
S&U (SUS) says monthly motor finance collections are above budget and the number of customers on payment holidays has fallen to 1,200. The Aspen bridging loan division is lending more for each deal and profit is reaching record levels.
Andrew Hore
Andrew Hore – Quoted Micro 19 April 2021
AQUIS STOCK EXCHANGE
NFT Investments (NFT) is a shell that intends to invest a portfolio of non-fungible tokens (NFTs). An NFT is a digital file with a unique and verified identity held on a digital ledger or blockchain. The tokens can be bought with cryptocurrency and resold. Ownership of NFTs can be tracked and they can be set up so that the original owner gets a cut of any subsequent sale. NFT Investments will apply to be a small registered UK AIFM. NFT Investments raised £35m at 5p a share and it has net assets of 3.7p a share. The shares ended the first day of trading at 4.95p (4.8p/5.1p) after a significant number of trades.
Apollon Formularies (APOL) has completed its reversal into AfriAg Global via an all share offer. The business holds medicinal cannabis licences in Jamaica. Interim regulations allow the export of medicinal cannabis. Medicinal cannabis oils are being sold and medically supervised treatments provided. Management intends to use £1.1m of the funds raised to finance research and development. The rest of the cash raised will go on developing product sales, operating costs and market research.
Good Energy (GOOD) increased revenues by 5% to £130.6m in 2020. Gross margins declined and higher bad debts and increased depreciation meant that underlying pre-tax profit was £400,000, down from £2.1m. Net debt was £34.6m at the end of 2020. Dividend payments will resume this year.
Gunsynd (GUN) had net assets of £4.94m at the end of January 2021. That was before the flotation of spirits company Rogue Baron (SHNJ), which has increased the value of the shareholding. There was £1m in the bank prior to the recent sale of part of the Rogue Baron stake.
KR1 (KR1) has invested $250,000 into Equilibrium in return for 595,238 EQ tokens.
Eastinco Mining (EM.P) is conducting test work on orebody samples. Discussions continue with Noble Group about an offtake agreement for tantalum and tine from the Musasa project. There is $325,000 in the bank.
Clean Invest Africa (CIA) subsidiary CoalTech has signed development agreements to identify opportunities in China and Indonesia. It will own 20% CoalTech Far East and Daniel Lee the rest.
Love Hemp (LIFE) has increased the amount raised in the recent placing from £5m to £7m.
Chris Akers has increased his stake in Quetzal Capital (QTZ) from 12.3% to 14.1%. Sebastian Marr has taken a 3% stake in Rogue Baron (SHNJ).
AIM
AdEPT Technology (LON: ADT) has acquired Datrix for an initial £9m, with potential deferred consideration of up to £7m based on the growth of the business. The business provides cloud-based networking and cyber security services, and the two firms already work together. In the year to March 2021, Datrix is estimated to have generated revenues of £10.7m and pre-tax profit of £600,000. There should be £400,000 of annualised cost savings.
A £10m placing at 10p a share by Helium One Global (HE1) was oversubscribed. There was enough cash in the bank to drill three exploration wells at the 100%-owned Rukwa helium project in Tanzania in the next few months. The additional funds will enable the drilling rig to be retained for additional appraisal and more 3D seismic can be acquired.
Open Orphan (ORPH) is planning to demerge HVO-001, which is a small molecule, immunomodulator drug that could become a treatment for severe flu, and other non-core assets inherited from the merger with hVIVO. Shareholders will receive shares in the new vehicle which could be quoted on AIM.
Franchised lettings agency Belvoir (LSE: BLV) improved 2020 revenues from £19.3m to £21.7m, while pre-tax profit rose from £6.2m to £7.5m. Net debt was £3.7m at the end of 2020, although £4m has since been spent on the Nicholas Humphreys business. The property market remains buoyant.
Steel structures supplier Billington (LSE: BILN) still has a strong balance sheet with net cash of £13.9m. Last year, revenues slumped from £104.9m to £66m, while pre-tax profit dipped from £5.9m to £1.7m. The final dividend is 4.25p a share. There is a significant order book, but costs are increasing.
Gaming machine monitors and consoles supplier Quixant (QXT) returned to profit in the second half of 2020. Full year revenues fell from $92.3m to $63.8m, while pre-tax profit dipped from $10.7m to $1.3m. The Densitron displays business did well due to demand from medical and broadcast customers.
Iodine producer Iofina (IOF) says that quarterly production fell 17% to 108.2MT and the first half production is likely to be around 250MT. This is due to the cold weather and the lower than expected production is offset by higher iodine prices.
GYG (GYG) says that a German shipyard has gone into administration with more than £2m of invoices outstanding. This was announced after Harwood Capital said it is considering a bid for the superyacht painting and maintenance services provider of 92.5p a share.
For the first time since April 2017, Immunodiagnostic Systems Holdings (IDH) has published a trading statement at 7pm on a Friday rather than after 4.30pm.
MAIN MARKET
Mast Energy Developments (MAST) intends to develop a portfolio of reserve power assets. The first projects should be up and running this year. AIM-quoted, Africa-focused power projects developer Kibo Energy (KIBO) set up Mast Energy to buy and develop flexible power plants that will supply the reserve power market in the UK. A placing raised £5.54m at 12.5p a share when Mast joined the standard list on 14 April. Kibo still owns 55.4% of Mast.
NMCN (NMCN) has agreed a new £8.9m facility with Reflex Bridging Ltd. This is secured on property developments. The overdraft has been extended by Lloyds Bank.
BATM Advanced Communications (BVC) has secured a strategic partnership with albis-elcon, which will jointly offer the company’s network function virtualisation technology NFVTime.
Andrew Hore
Andrew Hore – Quoted Micro 1 March 2021
AQUIS STOCK EXCHANGE
Incanthera (INC) says that it is prioritising discussions with two global cosmetic companies as potential partners for Sol, a sun cream that prevents skin cancer. Incanthera is also assessing the potential for using the technology to develop other products.
Sativa Wellness (SWEL) plans to raise C$4m through a placing of units at C$0.07875 each. Each unit consists of one share one-half of a warrant exercisable at C$0.105 each. The cash will provide working capital and investment for a new health screening service. Sativa has opened ten Covid-19 testing facilities. A dispute with Dragonfly Biosciences has been settled.
World High Life (LIFE) is submitting a novel food dossier to the Food Standards Agency. This is part of the move to regulation of the CBD market in the UK. The dossier includes pre-clinical results.
AfriAg Global (AFRI) intends to acquire the shares in medicinal cannabis pharma company Apollon Formularies that it does not own, and this will be classed as a reverse takeover. Shares will be issued to the Apollon shareholders. AfriAg is also raising £2.5m at 5p a share.
Arbuthnot Banking (ARBB) is selling its Tay mortgage portfolio to a subsidiary of OneSavings Bank for £53.8m, which is equivalent to 97.9% of the outstanding loans. Arbuthnot has already announced that it intends to pay a 21p a share special dividend, which replaces the 2019 dividend declared in March 2020. Arbuthnot will make a loss in 2020 so there will be no dividend.
Gunsynd (GUN) has invested £65,000 in a convertible loan issue by B2B pool betting platform Low6. Gunsynd had already invested £200,000 last December. AIM-quoted Pires Investments (PIRI) has also increased its investment in Low6. It invested a further £35,000, having also invested £200,000 at the same time as Gunsynd. Low6 is expected to float during the second quarter of 2021 and Canaccord Genuity is its broker.
Tectonic Gold (TTAU) says that the latest exploration at Specimen Hill reaffirms the drill targets and informs plans for higher density drilling, so that a resource can be calculated. Tectonic says that the Deep Blue Minerals diamonds joint venture with AIM-quoted Kazera Global Investments produced 220 carats in January. Higher grade materials will be mined during the rest of the year.
SulNOx Group (SNOX) says that Bureau Veritas has certified that SulnoxEco Fuel Conditioner complies with European standards. This means that SulNox’s products can be used for 70% of the hydrocarbon market. Management is confident that production can be scaled up.
NQ Minerals (NQMI) has signed an agreement with ASX-listed Evolution Mining for the evaluation and potential processing of lead and silver rich stockpiles at the Sunbeam project in North Queensland. Evolution has a processing plant 80km away from Sunbeam, which has stockpiles from past mining. The processing would be done on a cost and revenue share basis with NQ. This could finance further exploration. NQ says that it should qualify for the Green Economy Mark when it moves to the standard list.
Lombard Capital (LCAP) has received shareholder approval for refocusing its strategy on property investment and development.
Almon I Holding has cut its stake in Coinsilium (COIN) to below 3%. It increased its stake to 3.68% in January 2020.
Altona Energy has changed its name to Altona Rare Earths (ANR).
AIM
Trading platform operator Aquis Exchange (AQX) moved into profit last year thanks to high levels of trading on its platform. Aquis had been expected to lose money in 2020 but it is now expected to make a £200,000 profit on revenues of £11m. EU trades have been moved to the Paris operation and London has restarted trading in Swiss shares.
VR Education (VRE) continues to grow the revenues of its ENGAGE VR platform. Group revenues increased by 38%, while ENGAGE revenues rose by 550% thanks to strong demand for virtual events. The US provides significant potential. VR is still hiring additional people, although the focus is more on marketing. VR is still losing money, but the cash burn has been reduced this year. Management is targeting 100,000 monthly users by 2025.
Hormonal disease treatments developer Diurnal (DNL) says Alkindi sales in the UK and Germany grew by 29% in the first half but the timing of purchases in other markets meant that overall revenues barely increased. Chronocourt could gain European approval in March and the US regulatory pathway for DITEST, an oral testosterone formulation, has been set out. Net cash was £20.3m at the end of December 2020.
K3 Business Technology (KBT) has sold its managed services business for £14.7m. The business made a pre-tax profit of £1.2m last year, but the disposal proceeds will wipe out net debt and enable the repayment of the £3m shareholder loan due in June. There should still be more than £35m of recurring revenues.
Interim trading at transport software and services provider Tracsis (TRCS) was active and it was not far below the levels in the six months to January 2020 prior to Covid-19 becoming a factor. Revenues declined from £26.4m to £22m and management believes Covid-19 reduced the figure by £6m. New rail contracts are being won, but the lack of events hit the data and events division. Cash has improved from £17.9m to £21m.
Revenues fell by one-third at President Energy (PPC) in 2020 due to lower oil prices. President did generate $10m of free cash flow and that helped to reduce net debt. President plans to drill seven wells this year and that could increase production by one-third. Anew subsidiary, Atome, will develop hydrogen and ammonia production.
Shield Therapeutics (STX) has raised £25m at 30p a share and could raise a further £4.2m via an open offer. The cash will finance the new strategy of directly launching iron deficiency treatment Accrufer in the US.
Yew Grove REIT (YEW) has agreed a new lease for Gateway Three building, East Wall Road, Dublin with the Electricity Supply Board. The new lease lasts five years. Along with three rent reviews, this takes the increase in annual rents to €470,000 this year.
Best of the Best (BOTB) has concluded its strategic review and it has reemphasised its online strategy. finnCap has upgraded its pre-tax profit forecast to £14m.
Benchmark Holdings (BMK) increased first quarter revenues by 18% to £29m and it is on course to reduce its loss this year, prior to moving into profit in 2021-22. The advanced nutrition business contributed significant growth in the first quarter.
MAIN MARKET
Online auctions provider Auction Technology Group (ATG) raised £247.4m at 600p a share, while existing shareholders pocketed £51.5m after the over-allotment option was exercised. The company was valued at £600m. There was a 30% gain to 780p a share at the end of the first week of trading. The company is involved with three main auction markets: arts and antiques, industrial and commercial and consumer surplus and returns. It has six main auction marketplace brands and trade magazine Antiques Trade Gazette. Low double-digit organic revenue growth is anticipated for the next few years.
Town Centre Securities (TOWN) announced a 1.75p a share interim dividend, even though this is not covered by earnings. Lower car park income meant that there was a sharp decline in interim profit. The NAV was 286p a share at the end of December 2020 and it is not expected to decline by more than 2% by the year-end in June. This is more than double the current share price.
CML Microsystems (CML) is paying 50p a share to investors following the sale of its storage division. This will cost £8.28m. the cash should be received before the end of March.
Strong demand for diagnostic products more than offset weakness in the networking division of BATM Advanced Communication (BVC) and enabled 2020 revenues to grow by 49% to $184m. Pre-tax profit jumped from $5.2m to $13.6m. Revenues are expected to decline this year, but pre-tax profit is forecast to improve from $13.6m to $17.3m. This may depend on the timing of the sale of the NGSoft business and it also assumes no additional sales of ventilators this year. Longer-term, revenues will build up from virtual networking technology NFVTime. There is also potential for dividends.
Construction services provider NMCN (NMCN) says that two contracts in the water division could lead to an additional loss of £5m in 2020. These costs relate to delays. The total loss for 2020 could be up to £22m. The additional cash costs will be spread over 28 months. Shareholders are being asked to agree to an extension of the company’s borrowing limit.
Aircraft lessor Avation (AVAP) took a $46.7m impairment charge on its aircraft and a $12.9m credit loss in the six months to December 2020. The NAV was 174p a share at the end of 2020. A full year loss of $30m is expected before the exceptional write-offs.
Cannabis-based products developer Cellular Goods (CBX) raised £13m in its offer at 5p a share. The share price jumped to 19p on the first day of dealings.
Potash project developer Emmerson (EML) raised £5.5m at 5.75p a share. Emmerson has a mining licence for the Khemisset potash project in Morocco. The cash will be used for the detailed design of the mine and the phased development of the project.
Shell company Stranger Holdings (STHP) is pushing ahead with the proposed reverse takeover of the Recyclus Group. A prospectus is being drafted.
Packaging supplier Macfarlane Group (MACF) increased its 2020 profit by 10% to £13m on a 2% increase in revenues to £230m. The full year dividend has been increased from 0.69p a share to 2.55p a share.
Andrew Hore
Andrew Hore – Quoted Micro 28 December 2020
AQUIS STOCK EXCHANGE
TruSpine Technologies (TSP) has delayed the application for FDA approval of its Cervi-LOK spinal device for up to three months. This is due to a lack of testing time because of Covid-19. Computer modelling has enabled the company to make minor modifications, which widens the market for the device. A £250,000 cash injection is expected by 5 January.
Daniel Thwaites (THW) reopened its pubs in early July and up until the end of September sales were running at three-quarters of the previous year. Due to the lockdown in the first three months of the period, the interim revenues were 59% lower at £21.8m and the business moved into loss. Net debt was £66.6m at the end of September 2020. There are total borrowing facilities of £90m.
KR1 (KR1) has made two more investments. There is a $200,000 investment in Tidal Finance in return for 222,222,222.22 Tidal tokens. A further $200,000 is invested in HydraDX and the number of tokens has not been determined as yet.
Coinsilium Group Ltd (COIN) has more than £1m of cryptocurrency and tokens with a further $127,000 of RIF tokens due to vest over 23 months.
Tectonic Gold (TTAU) has drilled 11 holes at the Specimen Hill prospect in Queensland. Gold/ copper/silver mineralisation was intersected in the first three holes. The other eight holes have similar characteristics.
Belvedere Leisure (BELV) has entered into an exclusivity agreement to purchase the 160 acre site known as Barnsoul Park in Dumfries and Galloway for £1.4m. The deal is subject to due diligence and 12 weeks after completion there are plans to install at least 28 lodges as part of an upgrade of the park. Bookings will be taken for June 2021 onwards if the deal goes ahead. In two years, there should be more than 150 lodges.
Upper Thames Holdings (UPPT) has non-binding heads of agreement for the purchase of a 10% stake in Sweden-based Ridercam, which supplies mobile camera systems for theme park rides.
Gunsynd (GUN) says that Angold Resources has completed the acquisition of Federal Gold Corp and trading in Angold shares will begin on the TSX Venture Exchange on 31 December. Gunsynd owns 712,500 shares.
Newbury Racecourse (NYR) has appointed Allenby Capital as its corporate adviser.
AIM
Applegreen (APGN) is recommending a €5.75 a share bid from the company’s founders, which values the company at €718.1m. The roadside convenience retailer floated on AIM in 2015 at 277p a share. Applegreen has 559 sites.
Coral Products (CRU) its core mouldings business at Haydock and Interpack to One51 ES Plastics for £7.9m. That is nearly as much as the current market capitalisation, while pro forma net cash is expected to be £6.6m. One51 acquired Straight in 2014. Coral will still own the Haydock freehold and the annual rent will be £300,000. The deal required shareholder approval because it is deemed to constitute a change of business. The remaining subsidiaries are Tatra Rotalac, which produces plastic extrusions and mouldings, and Global One Pak, which supplies lotion pumps and trigger sprays. They generated full year revenues of £5.4m and are profitable prior to central costs. Pro forma NAV is £13.6m.
Equatorial Palm Oil (PAL) has agreed to acquire Capital Metals for £15.8m. The company is raising £2.09m at 12p a share (following a 20-for-one consolidation). Capital has an interest in the Eastern Minerals project in Sri Lanka. There is a JORC resource of 17.2Mt with an average grade of 17.6% total heavy minerals. The Environmental Impact Assessment should be published soon. First production could be in 2022.
Hargreaves Services (HSP) has sold its remaining speciality coal stocks to its German joint venture company for £24m. Hargreaves will market the coal on the joint venture’s behalf for commission. There will be a £3m goodwill write-off, but the profit impact should be neutral.
Duke Royalty Ltd (DUKE) has exited its investment in IT firm Welltel (Ireland) for £15.4m. This represents an IRR of 27%. There have been follow-on investments in two other royalty companies. Duke has invested £3.1m in recreational vehicle parts wholesaler MRDB, which will use the cash to help buy vendor loan notes for £4.9m. Duke will own 30% of MRDB. Monthly payments will be £147,000. A further £1m has been invested in Irish insurance brokerage company BHPC.
IXICO (IXI) has secured a £3.4m contract to provide data analytics services for rare neurodegenerative condition, SCA3 (Machado-Joseph disease). This will last more than four years.
Driver Group (DRV) chairman Steven Norris has bought 46,000 shares at 53.5p each. He owns 293,062 shares.
Sutton Harbour (SUH) has purchased a 1.5 acre site to the east of Sutton Harbour. Two residential developments totalling 200 units are planned for the site. A planning application has been submitted for another residential and commercial development at Sugar Quay. The company has also gained permission for event pontoons in the harbour.
Microsaic Systems (MSYS) has not received a definitive offer and the board has decided to end bid talks. It has also failed to secure the cash it requires and KRE Corporate Recovery has been appointed to advise on alternatives, such as selling assets. There is a possibility that an administrator may be appointed.
TMT Investments (TMT) received $40.9m for its stake in CRM company Pipedrive Inc and this increases its cash to $42m. It will repay the shareholder loan of $3m.
MAIN MARKET
Residential developer One Heritage Group (OHG) has raised £930,000 at 10p a share when it joined the standard list. This valued the company at £3m. The shares ended the week at 11p. The initial focus is north west England and One Heritage redevelops and refurbishes buildings and has a lettings operation. The company has a marketing network in Hong Kong and also sells developments to institutional investors.
Standard list shell Pineapple Power Corporation (PNPL) raised £1.3m at 3p a share. The focus is renewable and clean energy. The share price increased to 3.25p.
Construction and water infrastructure company nmcn (NMCN) says that its full year loss will be £16.5m. That includes £5.3m of prior year adjustments. There should be a small cash outflow. The one bright area is telecoms, where capital investment by clients increased. The order book is valued at £200m. Shore Capital has been appointed broker.
Andrew Hore
Andrew Hore – Quoted Micro 19 October 2020
AQUIS STOCK EXCHANGE
Arbuthnot Banking (ARBB) remains profitable and loan balances have increased by 3% to £1.6bn. Deposit balances are 14% higher at £2.23bn. Assets under management are 4% ahead.
Wine maker Chapel Down (CDGP) has produced a better quality harvest than 2018 and yields are better than expected. More wine can be released for sale next year.
A general meeting has been requisitioned at SulNOx Group (SNOX) by three shareholders. They want to remove the entire board and appoint four new directors.
KR1 (KR1) has generated just over $1m from the sale of tokens in the Polkadot project at $5.12 each. That is a small proportion of the stake and KR1 still owns more than 3.5 million tokens.
NQ Minerals (NQMI) continues to increase production at the Hellyer mine. In the third quarter lead concentrate production was 11,865 tonnes and zinc concentrate production was 4,585 tonnes. Production rates are still increasing.
Wishbone Gold (WSBN) reported a reduction in interim revenues from $6.56m to $3.64m. There was a $224,000 outflow from operations.
Altona Energy (ANR) has extended its fundraising until 11 November. The plan is to raise up to £500,000 at 6.5p a share.
Trading has been suspended in the shares of medicinal cannabis company Freyherr International (FRYR) because trading has been difficult, and the auditing of last year’s accounts has not been completed.
VI Mining (VIM) is asking shareholders to approve of the withdrawal from the Aquis Stock Exchange.
Eastinco Mining (EM.P) has published full year and interim figures. The company remains loss-making. There was £173,000 in the bank at the end of June 2020.
TechFinancials (TECH) is stopping the development of its Footies ticketing technology because of the uncertainty surrounding events. It has also ended its investment in Cedex due to lack of cash. All B2B brokerage technology activities will end at the beginning of November. New opportunities are being assessed.
AIM
Synairgen (SNG) is raising up to £87m via a placing and open offer at 175p a share. This will finance a phase III trial for SNG001 for the treatment of Covid-19. That will start before the end of the year. Results are expected in the middle of next year. Synairgen will also invest in scaling up its manufacturing.
More good news from Touchstone Exploration (TXP) which has made another significant gas discovery in Trinidad. The Chinook-1 discovery is the third in a row. This means that Touchstone should be highly cash generative next year enabling it to fund more exploration.
LiDCO (LID) had already outlined its interim figures in a trading statement so the move into profit thanks to high monitor sales to the NHS was not a surprise. There is likely to be a second half loss, but the heart monitoring equipment supplier will still be profitable for the full year. There have been delays in winning hup recurring revenue contracts, but these revenues have reached an annual rate of £3m. There was £3.1m in the bank at the end of July 2020.
BlueRock Diamonds (BRD) increased production in the third quarter from 3,973 carats one year ago to 5,577 carats. Sales were much lower at 3,803 carats because there was one sale during the quarter. The average price realised has fallen from $432/carat to $330/carat. That was expected due to the change in mix of stones with only one high value stone sold during the period. An updated resource estimate is expected in the near future. BlueRock is hosting a shareholder conference call at 7pm on 22 October. Anyone wanting to participate should go to www.facebook.com/valuethemarkets or www.twitter.com/valuethemarkets.
SkinBioTherapeutics (SBTX) is raising money to accelerate the progress of AxisBiotix, which is involved in the development of food supplements for psoriasis treatment. This could be generating revenues in the year to June 2022. A placing at 16p a share raised £4m with up to £500,000 to come from an open offer at the same price. Some cash will be available to fund development of other microbiome-related products. This cash should last until the end of 2022.
Billing and customer relationship management software provider Cerillion (LSE:CER) says that its year-end order book is at a record level and the full year figures will be slightly better than expected.
ThinkSmart (TSL) is returning A$6.5m of cash to shareholders. There will be a 4.575 cents a share capital reduction and a 1.525 cents a share unfranked dividend. ThinkSmart has around £10m in the bank. The current exchange rate is 55p for each A$1. The distribution is worth £3.6m, so around one-third of the available cash.
Seeing Machines (SEE) is increasing its potential market by developing its driver monitoring system into vehicle occupant monitoring system. This is an additional revenue opportunity of A$350m.
Angling Direct (ANG) managed to stay profitable in the first half as online sales helped to offset the closure of retail sites in the period. The fishing products retailer has a strong balance sheet and shop sales bounced back after reopening. A pre-tax profit of £400,000 is forecast for the full year, rising to £1.5m next year.
Netcall (NET) is acquiring robotic process automation technology company Automagica in order to enhance its contact centre products. Automagica has its own technology. Netcall’s full year revenues increased from £22.9m to £25.1m, while pre-tax profit increased from £1.3m to £1.8m. Margins are improving.
MAIN MARKET
Motor dealer Lookers (LOOK) says third quarter trading was better than expected. New and used car volumes increased by 13.6% compared with the same period the previous year. Lookers has outperformed the market. Aftersales revenues were also higher. Net debt was £22.5m at the end of September 2020.
Electronic products supplier DiscoverIE (DSCV) says that first half sales fell by 6%, but orders were ahead of sales in September. A dividend will be announced with the interims in November.
Construction and infrastructure firm nmcn (NMCN) has reviewed major contracts and this will lead to a loss this year. The main problem has been water contracts and some of the charges may relate to other periods. This follows the departure of the chief executive and finance director.
Nanoco (NANO) has a cash outflow to £300,000 a month. There is net cash of £5.2m and that should last until July 2022. The non-cadmium quantum dots technology developer lost £4.9m in the year to July 2020.
Andrew Hore
Andrew Hore – Quoted Micro 10 August 2020
AQUIS STOCK EXCHANGE
National Milk Records (NMRP) generated revenues of £5.35m in the quarter to June 2020, down from £5.6m in the previous year. Milk recording revenues declined because of COVID-19 restrictions. There was limited disruption to other parts of the business. The second half of the year to June 2020 was still better than the first half.
British Honey Company (BHC) has signed a four-year global licensing and distribution agreement with English Heritage. Spirits will be sold under the English Heritage brand.
The Hellyer gold mine operated by NQ Minerals (NQMI) achieved record production levels in July. The new processing plant had a monthly throughput of 106,365 tonnes. There was 4,075 tonnes of lead concentrate, 1,509 tonnes of zinc concentrate, 461 ounces of gold and 89,854 ounces of silver produced.
Sport Capital Group (SCG) intends to refocus its investment strategy on the natural resources sector and change its name to Evrima. An investment has been made in Kalahari Key Metals Exploration. A share consolidation of ten shares into one new share is planned.
Clean Invest Africa (CIA) says that its subsidiary CoalTech has signed heads of agreement for a feasibility study and commercialisation of a 5,000 tonnes per month pelletising plant in New South Wales. The study will take three months and it would take a further nine months. The plant would be near to a power station.
MiLOC Group Ltd (ML.P) increased its revenues from HK$10.7m to HK$15.4m in the year to December 2019, but the loss still increased to HK$40.6m, partly due to stock write-downs. Both traditional Chinese medicine products and the company’s clinics made higher contributions to revenues.
Asia Wealth Group Holdings (AWLP) reported a decline in revenues from $2.4m to $1.43m in the year to February 2020. There was a swing from profit to loss.
AIM
NWF (NWF) benefitted from strong demand for heating oil and the slump in the oil price. There were bumper profits from the fuel distribution business in the year to May 2020. Operating profit nearly doubled to £11m and this won’t be repeated. Opening cost of the new Crewe facility led to a dip in profit contribution from food distribution. The feeds business increased market share but profit fell. Group pre-tax profit improved from £9.7m to £11.5m. A pre-tax profit of £10.7m is forecast for next year.
Telecoms hardware manufacturer Filtronic (FTC) reported full year figures in line with the recent trading statement and there was a small pre-tax profit. Revenues are building up as demand for 5G products increases. There is spare manufacturing capacity and efficiency will improve as capacity is used up. The US-based subsidiary is in a good position to win 5G orders.
Applied Graphene Materials (AGM) has signed two new distribution agreements. A deal with Arpadis Benelux will enable Genablle graphene dispersion technology to be sold in the main speciality chemicals markets in Europe. An agreement with Maroon Group provides access to the coatings and polymers sectors in North America.
Construction materials distributor Brickability (BRCK) generated revenues of £23.8m in the three months to June 2020. There was a loss in April but Brickability returned to profit in May and June.
Telecoms customer engagement software provider Pelatro (PTRO) is raising £21m at 47p a share. This will fund investment in sales and marketing and working capital. Pelatro is profitable but cash generation has been relatively poor, although it was better last year.
Lawyer Ince Group (INCE) has reported 2019-20 figures that show an underlying pre-tax profit of £7m, although earnings per share declined following share issues. The consolidation of international acquisitions has been completed and IT is being improved. First quarter trading is 10% below plan but the business is still profitable.
Intelligent Ultrasound (MED) was quick to develop a COVID-19 module for its machines and this helped to partly offset a drop in first half revenues. Losses continue but the potential launch of AI-based products in 2021 and 2022 will put the company in a good position to move into profit.
K3 Business Technology (KBT) is a much smaller business following the sale of its UK Dynamics subsidiary, but it has a more solid and profitable base. Interim revenues slipped from £27.9m to £27.2m. K3’s own IP contributed 48% of revenues.
Fulcrum Utility Services (FCRM) has a better base going into the year to March 2021, even though the multi-utility infrastructure services provider was hit by the construction lockdown in the first quarter. Housebuilding activity is improving. Operational inefficiencies are being addressed.
Entertainment events marketing services provider Reach4Entertainment (R4E) intends to leave AIM in order to save money and enable greater flexibility. The share price slumped after the announcement, but it has moved back above the price at the beginning of the week. Chief executive Marc Boyan has bought 70 million shares at 0.2155p a share. That takes his stake to 16.1%. Herald has sold its 14.4% stake and Matthew Freud has bought a 14.95% stake.
Pensions administrator STM (STM) says that interim trading was in line with expectations thanks to its recurring revenues and control of costs.
Mergers adviser K3 Capital (K3C) has acquired Quantuma Advisory, which is focused on insolvency and restructuring, for an initial £20.2m. A further £6.7m could be payable depending on performance over three years.
Yourgene Health (YGEN) is acquiring Coastal Genomics for an initial $5.5m and up to $8m dependent on performance. Vancouver-based Coastal is a sample preparation technology company. The technology complements Yourgene’s technology and gives it a North American base. Yourgene raised £15m at 17p a share.
MAIN MARKET
Castillo Copper (LON: CCZ) joined the standard list on 4 August. Castillo raised £1.3m at 1.7p a share and the share price ended the week at 2.45p (2.2p/2.7p). There are three core projects, but the one that management is focusing on is Mt Oxide. The plan is to develop a copper mine. The Ayra prospect is the main exploration target and £450,000 will be spent on the Mt oxide area. The other core projects are the Cangai copper project in Australia and the Zed projects in Zambia.
BATM (BVC) says Vodafone has completed proof-of-concept on the ARM-based uCPE, which includes BATM’s network functions vizualisation (NFV) operating system. Field trials are likely to follow. This shows that both the networking and biomedical have good growth prospects. Stifel forecasts a rise in BATM pre-tax profit from $4.8m to $7.7m in 2020.
Construction and infrastructure services provider NMCN (NMCN) had a strong first quarter but a tougher second quarter meant that interim pre-tax profit fell by three-quarters. Even so, an interim dividend of 10p a share has been announced, which partly compensates for the lack of 2019 final dividend. There was an improved performance in telecoms and water is at the lower point in the cycle. Construction sites are becoming more active. Progress Equity Research forecasts a full year pre-tax profit of £1.9m, before recovering to £7.6m next year. A forecast total dividend of 15p a share for 2020, would not quite be covered by earnings.
Seafox International was successful in persuading Gulf Marine Services (GMS) shareholders to appoint Hassan Heikal and Hesham Halbouny to the board of the offshore oil services provider. They each received 57.7% of the votes.
Standard list shell Boston International Holdings (BIH) had £310,000 in cash at the end of June 2020, although there is also an unsecured loan of £200,000.
Argo Blockchain (ARB) mined 165 bitcoin in July, down from 180 in June. There were problems in the middle of the month. Mining revenue was £1.25m in July.
Andrew Hore