Andrew Hore -Quoted Micro 2 July 2018

2nd July 2018 / Leave a comment

NEX EXCHANGE

Medicinal cannabis business investor Sativa Investments (SATI) has raised £500,000 from Miton Investment Management at 4p a share. Demand for the shares remains strong. Executive director Mark Blower has sold one million shares at 4p a share, having exercised options for the same number at 0.5p each, and Non-executive Noel Lyons has sold 500,000 at 4.25p each, having exercised 500,000 options at 0.5p each. Sativa joined NEX on 29 March after raising £1.1m at 1p a share. The share price had already reached 3.125p by the end of the first week. Sativa has founded the Sativa Foundation to fund academic research into medicinal cannabis.

AfriAg Global (AFRI) intends to change its investing policy so that it includes medicinal cannabis opportunities. A medical advisory board will be appointed and they will carry out due diligence on the opportunities. AfriAg (Pty) Ltd previously had the right to take a 60% stake in House of Hemp but this deal was terminated when the South African government delayed setting up the legal framework for medicinal cannabis.

High Growth Capital (HASH) joined NEX on 25 June and it plans to become a UK, Canada and Australia-focused medicinal cannabis products index tracker and investor. This will be achieved by giving direct exposure to medicinal cannabis-related companies. The strategy is to acquire up to 10% of an individual company or £150,000 in value, depending on which is the lower amount.

Tectonic Gold (TTAU), which was quoted on AIM as Stratmin until August 2017, also joined NEX on 25 June. Tectonic has gold exploration interests in Queensland, Australia. Tectonic raised £530,000 at 2p a share and then issued another 30.8 million shares to the one of the shareholders in the exploration assets that have been acquired and to advisers.

Capital for Colleagues (CFCP) had a NAV of 41.73p a share at the end of May 2018. There are 18 investments in unquoted employee-owned businesses valued at £5.82m. The most recent was a £600,000 loan to Poole-based aerospace components manufacturer TG Engineering.

Clean Invest Africa (CIA) still had £501,000 in cash at the end of March 2018, following its maiden £372,000 investment in CoalTech, which is involved in cleaning up the waste from coal mining. The technology that has been developed enables coal fines that have little or no worth to be converted into pellets, using a binding technique, to make them a commercial product.

There was a £93,000 cash outflow from the operating activities of investment company Startup Giants (SUG) in the year to January 2018. There was £686,000 in cash and £40,000 worth of investments on the balance sheet. There are plans to add up to 25 more investments.

VI Mining (VIM) says that the seller of the Ximenita de Casma project has cancelled the option over the three mining concessions and it has also exercised its charge over the company that owns the processing plant. VI Mining had held back payment of consideration because of claims for breach of warranty. Legal proceedings will be initiated.

AIM

Legal firms consolidator Gordon Dadds (GOR) grew revenues by one-quarter to £31.2m last year even though there were minimal contributions from some of the legal firms it acquired. Pre-tax profit was 23% higher at £2.96m. This is a highly cash generative business. The dividend of 4p a share reflects that the company was not quoted for a full 12 months.

IMImobile (IMO) continues to grow organically as well as by acquisition. Full year revenues were 46% higher at £111.4m and that includes organic growth of 7%. Pre-tax profit improved from £9m to £10.1m. The communications connections technology provider has 85% recurring revenues. The main markets are growing well but progress was held back in South Africa by the political situation and since this has been sorted out that market has returned to growth.

Following a cautious AGM statement by Dillistone (DSG), WH Ireland has trimmed its forecasts and that means that the recruitment software provider is expected to breakeven this year, while the 2019 pre-tax profit has been cut from £540,000 to £200,000. Software revenues have been hit by the loss of a major client and the GatedTalent product is taking longer to build up revenues.

SaaS-based app distribution platform developer appScatter (APPS) has revised the terms for its acquisition of Priori Data. The company is still paying £13.5m in cash and shares for data analysis business but more will be funded by shares. This means that only £1.6m has to be raised in a placing at 70p a share.

Transport group Eddie Stobart (ESL) is acquiring The Pallet Network Group for £52.8m, which will be partly financed by a £30m placing at 140p a share. The network comprises 106 regional transport companies and three central hubs.

Action Hotels (AHCG) has agreed a possible cash offer of 24p a share from its major shareholder. Due diligence is being undertaken. After the company was floated by Sanlam Securities at 64p a share in December 2013, there have been four changes of nominated adviser and broker.

EQTEC (EQT) is on course to raise £2m in cash to pay off the unpopular financing package it previously secured. That deal has hit the share price but EQTEC is making progress with potential projects for its gasification technology. At least one project should reach the construction stage before the end of year to June 2019. That could either be a project in the UK or a 12MWe power plant in Vietnam, which could utilise equipment that was going to be used on the project in Newry, which is no longer going ahead. This will mean that milestone payments will be received throughout the construction.

Omega Diagnostics (ODX) has sold its infectious diseases assets to Novacyt (NCYT) although it is retaining the Visitect CD4 test. The disposal will raise up to £2.175m and these assets generated a profit before overheads of £300,000 in the past financial year. The book value was £600,000. Omega will provide manufacturing and storage services for 12 months. The cash will be invested in the Visitect CD4 test, Allersys and realising the value of the food intolerance business.

TechFinancials Inc (TECH) reported a 37% reduction in revenues in 2017 to $13.4m with software licensing revenues more than halving. Overheads were reduced but pre-tax profit still slumped from $4.05m to $116,000, although that was partly due to a $1.5m asset impairment charge. There was $3.5m in the bank.

Windar Photonics (WPHO) has signed a global distribution agreement with Vestas Wind Systems, which will sell the two beam light detection and ranging LiDAR system as a retro-fit product. The deal could provide access to around 14% of global installed capacity. This should help Windar to move into profit this year and make a significant profit in 2019.

CEPS (CEPS) has raised £1.33m at 35p a share and this will finance the repayment of a £1m loan plus interest. Sunline Direct Mail, which is 80%-owned, has been placed in administration and CEPS is unlikely to receive anything. Group trading is also slightly below expectations.

MAIN MARKET

Standard list shell Chesterfield Resources (CHF) has agreed to acquire Cyprus-registered HKP Exploration Ltd, which has seven prospecting permits covering three project areas on the island. The focus is copper and gold. At least £1.1m will be spent on exploration and drilling. A placing and subscription at 7.5p a share will raise £2m and each share comes with a warrant exercisable at 15p each. HKP is being acquired for 6.67 million shares at the same price. The original placing price last August was 5p a share.

Highland Natural Resources (HNR) has applied to acquire leases over 46,000 acres in Arizona, which management believes could produce commercial volumes of carbon dioxide.

Andrew Hore

Quoted Micro 23 October 2017

23rd October 2017 / Leave a comment

NEX EXCHANGE

Supported housing developer Walls and Futures REIT (WAFR) has improved its net asset value by 4.4% to 94p a share in the six months to September 2017. Interim figures should be published within a fortnight.

African Potash Ltd (AFPO) has decided not to acquire investment company Onshore Energy Ltd and concentrate on its fertiliser business instead. Progress has been delayed but fertiliser trading has started in Zambia and a 21% stake was acquired in Advanced Agricultural Holdings, which is focused on South Africa. There were no revenues in the year to June 2017, although there was trading income of $9,000, and the loss was $2.27m. There was £11,000 in the bank at the end of June 2017. African Agronomix is earning a stake in the company’s potash interests. Trading will recommence in the shares on 23 October.

Black Sea Property (BSP) has €7m of debt, in the form of a mortgage, from UniCredit Bulbank. This will be used to complete the planned acquisition of the office building in Sofia. The loan lasts for three years from completion of the documentation.

Via Developments (VIA1) has completed the purchase of the development site in Latimer Road, Luton.

AIM

Belvoir Lettings (BLV) has approached The Property Franchising Group (TPFG) about a merger between the letting agents but the reaction has been negative. Belvoir believes that the market is consolidating and it makes sense for two of the major players to come together. The indicative offer is 0.715 of a Belvoir share and 52.2p a share in cash for each TPFG, although the amount of cash could be varied. This values each TPFG share at 130.5p.

eServGlobal Ltd (ESG) is raising £24m at 9p a share with existing retail investors given the chance to clawback £3.4m of the shares. Cash is required to be injected into the HomeSend joint venture so that the 35% stake can be maintained. There will also be costs to rationalising the core business in order to help move it into profit.

Overseas growth dominated the Tristel (TSTL) where full year revenues were one-fifth higher, or 7% excluding the acquisition of the Australian distributor. Tristel has already warned that regulatory approval has been delayed in the US but it can still continue to grow its infection control sales. Animal health and contamination control revenues fell but margins improved. House broker finnCap forecasts an improvement in profit from £4m to £4.4m this year.

Secure payments and contact centre technology provider Eckoh (ECK) continues to add contracts in the US while UK revenues are steady. Seven US contracts worth $5.1m have been won. Eckoh has moved into a net cash position of £1.7m. Interim figures will be reported on 22 November.

Telecoms software supplier Artilium (ARTA) has formed an alliance with NYSE-listed Pareteum Corporation, which involves the sharing of distribution, products and technology. The focus will be Latin America and Asia. A share exchange will mean that Pareteum will own 8.8% of Artilium, which will own 19.9% of Pareteum. Artilium is opening a new office in Germany.

Cloud-based communications software provider Cloudcall Group (CALL) is raising £5.7m at 143.5p a share and the cash will help to finance further growth. Cloudcall wants to take advantage of its partnerships with Microsoft Dynamics and Bullhorn and attract new partners.

Proteome Sciences (PRM) says that its deal pipeline is improving but the adoption of its proteomic services has been slower than hoped. This year the loss will be reduced but it will be higher than previously expected. Proteome has gained Good Clinical Laboratory Practice accreditation which will enable it to take on larger clinical projects.

Sula Iron and Gold (SULA) is evaluating the best way to develop the Ferensola gold asset as well as seeking to bring other assets into the group. There could be a joint venture or farm out at Ferensola and Sula intends to solicit interests from potential partners.

Hornby (HRN) is ending the discounting of its stock but it will still hit the figures for this financial year. New chief executive Lyndon Davies continues to review the business strategy and more will be revealed with the interim figures. The interim chairman is leaving the board.

BP Marsh (BPM) has increased its NAV from 273p a share to 304p a share in the six months to July 2017. Disposals brought in significant amounts of cash and this is being reinvested. One of the main focuses of the investment is the North American market.

Infinity Energy S.A. (INFT) is in talks to acquire Transgas Ltd from its own chief executive and its family. Transgas owns petroleum exploration licences in south west England. Infinity will issue shares for the purchase if it is agreed and it intends to change domicile from Luxembourg to Guernsey.

Molecular diagnostics firm Genedrive (GDR) has signed a distribution agreement with Sysmex Europe for the supply of the Genedrive hepatitis C (HCV) ID kit, which is designed to be used in a decentralised environment and produce results within 90 minutes. This is the first commercial partner and Sysmex will be responsible for marketing and distribution in the EMEA region. The initial focus will be African companies.

RNA therapeutics technology developer Silence Therapeutics (SLN) is claiming money in the High Court for income it believes it is owed on products sold by Alnylam. The High Court has to determine whether Silence is entitled to supplementary protection certificates, which can give up to five years of exclusivity after a patent expires

Seeing Machines (SEE) believes that it could treble its revenues this year to between A$38m to $A43m and revenues could double again next year. However, cash is in short supply so investment has been curtailed. New investment is being sought. Interest is building in the automotive sector for the FOVIO driver monitoring technology.

Jim Meredith has become executive chairman of Augean (AUG), following the resignation of Stewart Davies as chief executive, and Christopher Mills and Roger McDowell, who stepped down in June 2015, have joined the board as non-executives. Augean continues to have problems with the HMRC regarding its landfill tax assessment and profit will be lower this year and in 2018. A further £1.7m is being cut from annual overheads.

Futura Medical (FUM) has received positive market research from fellow AIM company Cello (CLL) for its MED2002 gel for erectile dysfunction. More than three-fifths of physicians canvassed in the US thought that MED2002 was better than existing treatments. The equivalent figures in Germany and France were 60% and 54% respectively.

Concepta (CPT) has signed up two distributors in China for its MyLotus fertility product. This takes the number of distributors to three and more will be signed up in the coming months. The product is being evaluated for use after a woman has got pregnant.

Sunrise Resources (SRES) has discovered a new deposit at the CS Pozzolan-Perlite project in Nevada. There have also been positive drilling results in the existing deposit areas.

Omega Diagnostics Group (ODX) has signed a three year agreement to supply food intolerance product FoodPrint to a US laboratory testing services provider.

Thor Mining (THR) is moving to a phase of progressing the commercialisation of its exploration interests. There has been a resource upgraded at Pilot Mountain and there will soon be a resource estimate at Kapunda. The options for progressing with the development of the Pilot Mountain and Molyhil projects are being considered. A placing will raise £565,000 at 0.8p a share. There is a warrant with each share which enables the holder to subscribe for a new share at 1.2p.

Strategic Minerals (SML) has entered into a binding term sheet to acquire the owner of the Leigh Creek copper mine project, which is the northern Flinders Ranges in South Australia. It will cost A$1.8m to restart production at the mine. Strategic has to inject A$1m into the holding company, pay A$250,000 in cash and A$750,000 in shares to the current owner and agree a royalty agreement with them which will be capped at A$3.65m. The Cobre magnetite ore operation in New Mexico had a record quarter to September 2017. Revenues were $2.04m, which was more than the first six months of 2017 and for 2016 as a whole. Annual sales should exceed $5m and this provides cash flow for other projects. Strategic had $1.63m in the bank at the end of September 2017. Shareholders have agreed to a new option programme for management.

MAIN MARKET

Sportech (SPO) has put itself up for sale, although the strategic review continues. There have already been four preliminary proposals but no detailed discussions have commenced.

InnovaDerma (IDP) has been criticised by the Advertising Standards Authority for some of its online advertising for Skinny Tan. Trading is in line with expectations.

Andrew Hore

Quoted Micro 1 May 2017

2nd May 2017 / Leave a comment

NEX EXCHANGE

Cyber security technology developer and consultancy Crossword Cybersecurity (CCS) continues to scale up its business and there is a product launch planned for this summer. In 2016, revenues jumped from £21,000 to £345,000 but the loss increased from £755,000 to £950,000 – even after £78,000 of R&D tax credits. There was £1.55m in the bank at the end of 2016. AIM-quoted Iomart is cooperating with Crossword on launching the Nixer machine learning DDoS platform on the market.

Brewer Adnams (ADB) says sales of beers and spirits continue to grow and its pubs are trading well, although the sale of smaller pubs will reduce the profitability of this part of the group. Currency movements, the sale of the UK distribution rights for Lagunitas beers and the renovation of the Swan Hotel will hamper overall progress in the first half. The £7m investment in the brewery is almost complete.

Sandal (SAND) has signed an agreement with Spanish smart home technology business Momit, which will redesign its smart thermostat so that it is compatible with the Energenie MiHome platform. This is part of Momit’s strategy to enter the UK market. The redesigned product should be launched in September and, along with related radiator valve sales, could add £500,000 to the annual revenues of Sandal.

Healthcare staff provider Healthperm Resourcing Ltd (HPR) has revised its strategy and candidates need to have passed the International English Language Testing System, which is required for a visa anyway. Healthperm has opened its own IELTS training facility in the UAE and this is focused on nurses. Healthperm has won two new mandates and there are three other potential mandates on the cards. Chief executive David Sumner has agreed to increase the maximum amount of loan notes he will subscribe for from £1m to £1.8m. The loan notes have a 10% interest charge.

Capital for Colleagues (CFCP) has raised £1.44m at 42p a share from its open offer and a further £980,000 in a placing at the same price. Coinsilium Group (COIN) has raised £118,000 at 2p a share and it will use £60,000 to finance the development of a blockchain-based management system. Goldcrest Resources (GCRP) is raising £380,000 at 0.5p a share. The cash will help to finance the competent persons report on the Norio block, which the company is in the process of acquiring.

NQ Minerals (NQMI) has entered into a A$6.5m loan facility to help finance the acquisition of the Hellyer gold mine in Tasmania. This means that NQ has A$15m of the A$20m in cash it requires to make the purchase.

Indigo Holdings (INGO) is investing £200,000 in Iranian Fast Moving Consumer Goods Ltd, an online retail delivery business associated with a convenience store chain.

Ashley House (ASH) has secured a £500,000 loan facility from its non-executive deputy chairman Stephen Minion. The secured facility lasts for 12 months.

Housebuilder St Mark Homes (SMAP) has appointed Alfred Henry Corporate Finance as its corporate broker. Merchant Place had performed this role for 18 years.

AIM

Mortice (MORT) has made a second UK acquisition. The facilities management services provider is paying up to £4.5m for Elite Cleaning and Environmental Services – £3.5m in cash and shares plus a 12-month earn-out of up to £1m in cash and shares. Elite provides cleaning services and clients include ITV and BMW. Elite made EBITDA of £1m on revenues of £12.3m. finnCap has increased its earnings forecast by 5% to 7.8 cents a share.

Internet domain registry company Minds + Machines (MMX) moved into profit in 2016. Revenues grew from $5.5m to $13.5m, while a loss was turned into an underlying pre-tax profit of $3.5m. This follows a restructuring of the business and the sale of non-core operations. Sales of the .vip domain in China were the major factor in the growth in revenues and .boston should be launched later this year. Cash conversion was poor due to restructuring costs and increased working capital.

Directa Plus (DCTA) had technological problems which held back the progress of the graphene producer last year. In 2016, revenues fell from €1.7m to €0.8m and the loss more than doubled to €4.1m. The reason behind the fall in revenues was the lack of sales of mobile decontamination units with sales of G+ graphene nearly doubling. The focus is textiles and environmental uses of the company’s graphene. Directa Plus has net cash of €6.8m and this will be enough to absorb the expected cash outflows for the next couple of years.

Diagnostic tests supplier Omega Diagnostics (ODX) says that its underlying pre-tax profit will fall from £1.3m to £1.1m in 2016-17. All divisions increased their revenues, helped by currency movements. Field trials are planned for the VISITECT CD4 test and the CE mark could be obtained by the end of the year.

TLA Worldwide (TLA) continues to embarrass itself with disastrous trading statements. Having issued a trading statement at 6.26pm on 23 December 2016, it has released its latest profit warning at 4pm – management probably thinks that is a big improvement because it was before the market closed. It turns out that four months after the end of the financial year TLA’s 2016 figures will be even worse than expected. Changes to revenue recognition and provisions for money that TLA thought it was owed but has not been paid are the reason. There is also money that TLA believed it was owed in financial periods prior to 2016 but has not been paid. That will lead to write-downs and the current estimate is between $1.5m and $2.5m. The 2016 figures may eventually be released in late May, according to the company.

Imaginatik (IMTK) says its revenues for the year to March 2017 will be flat at £3.9m but the loss should still be reduced. Bookings for the innovation software were lower at £3.5m but new clients were won in the second half. Imaginatik could be on course to breakeven in the current financial year.

AstraZeneca has returned the rights to AZD9412 to Synairgen (SNG) following a phase IIa study. The inhaled interferon beta did have a beneficial impact on lung function but the positives were not enough to continue with trials. The data will be returned to Synairgen for it to analyse. Synairgen has £4m in the bank.

Avacta (AVCT) has signed its first non-therapeutics licence for its affimers. The licensee is a major global diagnostics companies. The upfront payment is probably small but this is a significant deal.

Radiation detection technology company Kromek (KMK) is trading in line with expectations and it expects to continue to win new contracts.

Property management services provider HML Holdings (HML) has confirmed that its 2016-17 profit will be in line with expectations of £1.8m. There were six acquisitions during the year. A 2017-18 profit of £2.2m is forecast.

Instant communication mobile services provider Mobile Tornado (MBT) has raised £1.1m at 5p a share and the cash will be used for further development of its technology and support the launch of the Dispatch Console service. Last year, revenues fell 10% to £2.02m but recurring revenues increased to more than 90% of the total. The loss increased from £2.03m to £3.73m. Net debt was £9.06m at the end of 2016.

MAIN MARKET

Sealand Capital Galaxy Ltd (SCGL) has completed the acquisition of social media business SecureCom and Sealand hopes that a share split/bonus issue will improve liquidity. Existing shareholders will receive nine bonus shares for each one they own, leaving them with ten times the number of shares and the share price would be adjusted from 25p to 2.5p. The November 2015 flotation price was 10p and earlier this year a further £1.4m was raised at 20p a share. Pro forma cash was £3.26m at the time of the acquisition.

A number of standard list shells have reported their annual figures so that they beat the deadline of the end of April. Financial services-focused shell Vertu Capital Ltd (VCBC) is still discussing the potential acquisition of VCB Malaysia but there is still some way to go before a deal is secured. There was £553,000 in the bank at the end of 2016. Auctus Growth (AUCT) still had £1m in the bank at the end of 2016 and it continues to assess potential acquisitions.

Papillon Holdings (PPHP) is still proceeding with the long drawn out acquisition of Myclubbetting.com and it is near to lodging a readmission document with the UKLA. The publishing of the accounts of Papillon has been delayed because of difficulties concerning quantifying the costs of the acquisition.

Andrew Hore

Quoted Micro 4 July 2016

3rd July 2016

ISDX

Employee-owned businesses funder Capital for Colleagues (CFCP) has invested £500,000 in Anthesis Consulting, a sustainability services consultancy with operations in Europe, North America and Asia. The investment includes £350,000 of shares, which is part of a £1.3m share issue, giving Capital for Colleagues a 3% stake with employees owning 80%. The other £150,000 is in the form of a loan repayable in five years. Anthesis will use the cash to make international acquisitions. Capital for Colleagues had an NAV of 53.66p a share at the end of May.

Ganapati (GANP) says that it failed to achieve its revenue forecasts in the year to January 2016 because of increasing competition. Revenues were £3.45m, while the loss was £7.82m after a £4.56m write down of intangible assets. Ganapati develops software for social media and consumer games but it has decided to move into offering online gambling software. The company continues to try to gain a licence from the UK Gambling Commission but there are issues that need to be sorted out and there is no guarantee that the application will be successful.

Equatorial Mining & Exploration (EM.P) continues to seek additional funding but it is confident enough to spend money on further surveying of its exploration licences in Nigeria. The interim figures will be published in September.

Blockchain technology investor Coinsilium (COIN) has appointed Mrs Pier Thomas as finance director. She has been awarded options over 2 million shares at a cost of 10p a share – a premium of 156% to the market price at the time of appointment. The options last until 28 June 2019.

Investment company Globe Capital Ltd (GCAP) has refocused its investment policy on the retail and menswear sectors. A 25% stake has been acquired in Sterling Craig, an online retailer of men’s fashion. The investment cost £12,500. The company was incorporated on 11 December 2015 and Sterling Craig’s only director is Terry Burnett. Earlier this year £100,500 was raised and Globe intends to raise more cash in the near future to fund additional investments. There was £19,000 in the bank at the end of March 2016.

A director has acquired a £400,000 convertible loan to Gowin New Energy Group Ltd (GWIN). Chen Chih Lung paid face vale for the loan which is convertible at 0.2p a share.

Energy efficient products supplier Sandal (SAND) has cancelled 130,000 shares that were issued at the time of its flotation because the buyer did not come up with the cash.

AIM

Omega Diagnostics (ODX) says that its Allersys diagnostic instrument is nearing commercial launch with 41 allergens available. The current operations put in a mixed performance in the year to March 2016. Food intolerance sales grew and helped group revenues improve from £12.1m to £12.7m. Pre-tax profit dipped from £1.4m to £1.3m and there is likely to be a further fall to £800,000 this year as the cost base is increased for product launches. Management believes that it has enough cash in the bank for its requirements but it will have to choose what opportunities it focuses on.

Surgical Innovations (SUN) says that sales are growing and it is manufacturing more of the equipment sold. Interim revenues should be at least 10% ahead, suggesting they will be around £2.9m. Growth is coming from the US. That is helping to improve gross margins to more than 25% – they were 8.4% in the first half of 2015 but they had reached 47.3% at the interim stage in 2014. New product ranges will be launched in the second half. At the same time inventory levels are likely to reduce by £500,000 in the first half. Net debt was £2.26m at the end of 2015 and this will reduce further.

Servoca (SVCA) is paying up to £3.1m for Classic Education in a deal that should be earnings enhancing. The initial payment for the Gravesend-based education recruitment business is £1.2m and Servoca believes that the sustainable level of pre-tax profit is more than £400,000. In the year to September 2016, pre-tax profit is forecast to improve from £3m to £3.5m.

Fishing Republic (FISH) has raised an additional £3.75m at more than double the share price at which it floated just over one year ago. Fishing Republic floated at 15p a share and subsequently raised more cash at 16p a share but the latest fundraising was at 35p a share. The cash will help to expand the retail chain and fund further development of the online operation. The share issue does initially dilute earnings but this should change when the cash is invested. The subscribers to the share issue include former Tesco boss Sir Terry Leahy and associates, who will have a combined stake of 15.9% in the company.

Corporation tax software provider Tax Computer Systems is reversing into Eco City Vehicles (ECV) in a deal that places an enterprise value of £73m on the transaction. A placing will raise £45m at 67p a share – after a 50-for-one share consolidation – and MXC Capital is subscribing £8.7m for 20% of the enlarged group, which will be renamed Tax Systems. There are plans for international expansion and a broadening of the product range.

DJI Holdings (DJI) is raising £29m at 95p a share in order to pursue new revenue opportunities. DJI has struck a deal with Xinhuatong, which provides content to the Xinhua News App owned by China’s national news agency, and this provides exposure to mobile. DJI sees itself as an internet technology provider having originally positioned itself as a developer of online lottery products. The share price has strengthened in the past three months but it has only just gone back above the July 2014 flotation price of 100p a share.

Mariana Resources (MARL) should have an updated mineral resource estimate for its 30%-owned Hot Maden gold copper project in Turkey. The current estimate is 3 million ounces of gold equivalent at a grade of 11.2g/t. The preliminary economic assessment should be completed before the end of the year.

Constellation Software has launched its 105p a share bid for recruitment software provider Bond International Software (BDI) but the target’s board has not recommended the bid. The deal vales Bond at £44.2m and Constellation already has a 29.6% stake and 100% of the convertible non-voting shares. In 2015, Bond reported a loss of £2m on revenues of £39.7m, while net assets were £34m. Bank debt has subsequently been repaid from the proceeds of the Strictly Education disposal. The other parts of the business are also up for sale.

Medical devices company Tissue Regenix (TRX) has secured a deal with a national US group purchasing organisation for hospitals and physician offices for the supply of wound care product DermaPure, the company‘s first commercial product. The three year contract covers 43 states.

Nostra Terra Oil & Gas (NTOG) is selling its 20% stake in assets operated by Ward Petroleum in the Chisholm Trail prospect in Oklahoma for $2.1m. The book value was $1.7m. These assets generated the majority of 2015 group revenues of £594,000. The cash can be used to acquire other oil and gas assets.

MAIN MARKET

Trading in shares of shell company Flying Brands Ltd (FBDU) has been suspended ahead of the potential purchase of medical technology business Stone Checker Software. The deal is still dependent on due diligence. The share price had halved to 3.25p since the beginning of June.

Global Resources Investment Trust (GRIT) is hoping to raise up to £2.5m through a subscription and open offer at 5p a share. RDP Fund Management is subscribing for £2m worth of shares while the terms and dates for the open offer have yet to be announced. The cash will be used to reduce gearing.

ANDREW HORE

Daily Actions – UK Main & AIM markets 16022016

16th February 2016 / Leave a comment

Daily Actions is a daily summary analysis of changes in short term actions from our Daily Recs – AIM and Daily Recs Main markets reports. This report is typically distributed before the open of trading in London.

AIM Market

	ST Rec. changed
	From	To
Basic Resources
Ariana Resources	Neutral	Buy
Karelian Diamond Resources	Buy	Neutral
Mariana Resources	Neutral	Buy
Stellar Diamonds	Neutral	Buy
Financial Services
Amphion Innovations	Neutral	Buy
FastForward Innovations	Buy	Neutral
Tengri Resources	Neutral	Buy
Dolphin Capital Investors	Strong Buy	Buy
Northacre	Neutral	Buy
Polar Capital Holdings	Buy	Neutral
Private & Commercial Finance Group	Neutral	Buy
Food & Beverage
Wynnstay Group	Neutral	Buy
Health Care
Omega Diagnostics Group	Neutral	Buy
Industrial Good & Services
Cap-XX	Buy	Neutral
Hargreaves Services	Neutral	Buy
Nakama Group	Neutral	Buy
Surface Transforms	Neutral	Buy
Media
Mirada	Buy	Neutral
Oil & Gas – Explorers
Rockhopper Exploration	Buy	Neutral
Oil & Gas – Producers
Northern Petroleum	Neutral	Buy
Technology
Access Intelligence	Sell	Neutral
Travel & Leisure
Best of the Best	Neutral	Sell
Utilities
OPG Power Ventures	Neutral	Buy

Main Market

	ST Rec. changed
	From	To
Electronics & Electrical Equipment
Spectris	Buy	Neutral
Engineering & Machinery
Vitec Group	Buy	Neutral
General Retail
SuperGroup	Buy	Neutral
Household Goods & Textiles
Hornby	Neutral	Sell
Information Technology & Hardware
Filtronic	Neutral	Sell
Leisure & Hotels
Punch Taverns	Neutral	Buy
Media & Entertainment
St. Ives	Neutral	Sell
Personal Care & Household Products
PZ Cussons	Neutral	Buy
Reckitt Benckiser Group	Neutral	Sell
Real Estate – REIS
St. Modwen Properties	Buy	Neutral
Software & Computer Services
Aveva Group	Neutral	Buy
Support Services
RPS Group	Neutral	Buy
Transport
James Fisher & Sons	Buy	Neutral

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Daily Actions – UK Main & AIM markets 04022016

4th February 2016 / Leave a comment

Daily Actions is a daily summary analysis of changes in short term actions from our Daily Recs – AIM and Daily Recs Main markets reports. This report is typically distributed before the open of trading in London.

AIM Market

	ST Rec. changed
	From	To
Basic Resources
Amur Minerals Corporation	Neutral	Buy
Financial Services
Tengri Resources	Neutral	Buy
Manx Financial	Neutral	Buy
Impax Asset Management Group	Neutral	Buy
Urban Civic	Neutral	Buy
Food & Beverage
Purecircle	Neutral	Buy
Health Care
Abcam	Sell	Neutral
Omega Diagnostics Group	Neutral	Buy
Industrial Good & Services
Accsys Technologies	Buy	Neutral
Christie Group	Sell	Neutral
Gooch & Housego	Neutral	Sell
Hargreaves Services	Neutral	Buy
Nakama Group	Neutral	Buy
The Kellan Group	Buy	Neutral
Surface Transforms	Buy	Neutral
FW Thorpe	Neutral	Sell
Media
Mirada	Buy	Neutral
Oil & Gas – Explorers
Rockhopper Exploration	Neutral	Buy
Oil & Gas – Producers
Plexus Holdings	Neutral	Buy
Technology
Concurrent Technologies	Neutral	Sell
IQE	Neutral	Buy
Utilities
OPG Power Ventures	Neutral	Buy

Main Market

	ST Rec. changed
	From	To
Aerospace & Defence
Meggitt	Neutral	Buy
Smiths Group	Neutral	Buy
Banks
Barclays	Neutral	Buy
House Construction
Persimmon	Sell	Neutral
Electronics & Electrical Equipment
Spectris	Neutral	Buy
Food Producers & Processors
Cranswick	Sell	Neutral
Dairy Crest	Sell	Neutral
Unilever (UK)	Sell	Neutral
General Retail
Burberry Group	Neutral	Buy
JD Sports Fashion	Sell	Neutral
Insurance
Admiral Group	Sell	Neutral
Media & Entertainment
Informa	Sell	Neutral
Pearson	Neutral	Buy
Pharmaceuticals & Biotechnology
AstraZeneca	Sell	Neutral
Oxford Biomedica	Neutral	Buy
Software & Computer Services
Aveva Group	Neutral	Buy
Speciality & Other Finance
Aberdeen Asset Management	Neutral	Buy
Support Services
AMEC Foster Wheeler	Neutral	Buy
Compass Group	Sell	Neutral
PayPoint	Neutral	Buy
Premier Farnell	Neutral	Buy
Telecommunication Services
BT Group	Sell	Neutral
Utilities
National Grid	Sell	Neutral
United Utilities Group	Sell	Neutral