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Quoted Micro 30 September 2024
AQUIS STOCK EXCHANGE
Seneca Partners has requisitioned a general meeting at ProBiotix Health (PBX) to remove chief executive Steen Andersen and Frederik Bruhn-Petersen, whose family office recently subscribed for shares, from the board. Seneca was an early backer of OptiBiotix (OPTI), which spun off ProBiotix Health and whose boss Stephen O’Hara is on the board. OptiBiotix was unhappy with the share subscription and concern about the increase of the number of employees in Denmark.
Brewer Adnams (ADB) interim revenues improved from £30m to £31.9m and the loss was reduced from £4m to £2.55m. NAV fell to £19.9m at the end of June 2024. The funding review is continuing. Proposals for additional funding have not been at suitable cost, so non-core assets will be sold to reduce debt. Adnams improved market share in the off-trade, but sales to pubs and bars declined faster than the market.
Music artist talent management services provider All Things Considered (ATC) increased interim revenues from £3.4m to £19.6m, helped by a sharp increase in services revenues and an initial contribution from the live events division. The loss rose from £1.14m to £1.26m. Net cash is £1.68m. The first major production for the ATC Experience division is Hamlet Hail to the Thief, which combines Shakespeare and Radiohead.
Skin treatments developer Incanthera (INC) says the initial launch of the SKIN + Cell is being expanded and the products will be in the European retail network of Marionnaud sooner than originally planned. That is 1,200 outlets and this should be enough to move Incanthera into profit. Full timing of the launch is still being discussed. There are also plans for additional products.
Trading in Essentially (ESSN) shares has been suspended pending an investigation.
Cleantech engineering company Time to ACT (TTA) reported a loss of £1.1m on revenues of £1.89min the year to March 2024, which was prior to flotation. There was a profit the previous year, but that was due to a one-off payment of £1.5m. Oberon forecasts revenues of £2.2m this year but points out the lumpy nature of revenues. There would still mean the company would be loss making.
Invinity Energy Systems (IES) joint venture development partner Gamesa Electric has ordered a 1.2MWh Mistral battery for a solar and wind generating site in Spain. This was announced at the same time as the interims, which were already well flagged. Interim revenues were £1.6m and the cash outflow from activities was £12.4m.
Bad debts of €1.09m were recovered by Black Sea Property (BSP) helped it move into profit in the six months to June 2024. Net assets are €50.6m.
Cadence Minerals (KDNC) made an interim loss of £2.5m, while net assets were £17.8m at the end of June 2024. The net cash outflow from activities was £300,000 and net cash was £100,000.
IntelliAM (INT) generated revenues of £106,000 between July 2023 and March 2024 and lost money.This is the period before the acquisition of 53 Degrees North Engineering. There was cash of £91,000 at the end of March 2024.
Equipmake (EQIP) has received an additional order from South American bus manufacturer Agrale. Equipmake will supply parts for the MA11 light bus platform, which is an electric/ethanol hybrid.
Hot Rocks Investments (HRIP) is investment in the Oscillate (MUSH) placing to help it finance the acquisition of Quantum Hydrogen. The investment company is buying shares in Oscillate at 1p each and they come with a warrant exercisable at 2p. The total fundraising is £700,000.
Coinsilium (COIN) reported that interim revenues slumped to £3,000, but the digital assets investor and services provider moved from loss to profit. That was due to a net fair value gain on financial assets of £336,000. Cash was £430,000 at the end of June 2024.
Igraine (KING) had £84,000 in the bank at the end of June 2024, following an interim loss of £67,000. The board is evaluating new opportunities.
Valerium (VLRM) has launched VLRM Capital Management in Gibraltar and it will act as director of VLRM Capital Management VSA Private Fund. The fund will use volume spread analysis to generate returns. Valerium chairman James Formolli has invested £1m in the fund.
Marula Mining (MARU) has updated its mine development plan for the Kinusi copper mine in Tanzania. The infrastructure is suitable to support open pit mining and two-phase copper processing operation to produce copper cathode.
Wishbone Gold (WSBN) is receiving A$55,000 from the Western Australian government towards exploration of the Nullagine tenements at Mosquito Creek.
Phoenix Digital Assets (PNIX) had net assets of 5.07p/share at the end of June.
Voyager Life (VOY) says that M3 Helium, which it has an option to acquire, plans a second frack on the Nilson well. This is a fully funded programme with investors providing $170,000 for a 25% interest in the well.
Ormonde Mining (ORM) says cash decreased by €769,000 in the first half of 2024. Net assets were €5.06m at the end of June 2024, with cash of €1.54m.
Globa Capital (GCAP) had net liabilities of £485,000 at the end of June 2024. There is support from shareholders and loan note holders to meet ongoing costs.
TechFinancials (TECH) had cash of $318,000 at the end of June 2024. Management is seeking investment opportunities.
Vinanz (BTC) raised £608,000 at 13p/share. This will fund the acquisition of more Bitcoin miners.
Lift Global Ventures (LFT) appointed Oberon as corporate adviser and broker.
RAJ Bailey acquired 10,000 shares in Daniel Thwaites (THW) at 85.25p each. It taks the director’s stake to 1.32%.
AIM
Floorcoverings supplier Airea (AIEA) had already flagged the weak second quarter trading. Interim revenues were 6% lower at £9.3m and there was a swing from a pre-tax profit of £620,000 to a loss of £68,000. Airea does not appear to be losing market share, and third quarter trading has been stronger. The investment in the manufacturing facility continues and should be completed in early 2025. There is still net cash even though inventories have increased.
Software and maintenance services provider Pennant International (PEN) says that the UK strategic defence review has led to delays in training contracts. This part of the business is being reviewed with plans to focus on a software-led model. Interim revenues were 4% higher at £7.4m despite a decline in North American revenues because of the splitting up of a large Canadian contract. There was a move back into a modest profit. A new software product will be launched in early 2025. Cavendish still expects a full year loss of £400,000, but it is reviewing its 2025 figures.
Telematics services provider Microlise (SAAS) has secured a five-year contract renewal with JC Bamford up until September 2029. The technology enhances connectivity and diagnostic capabilities to improve productivity. The relationship has lasted 14 years.
Graphene technology developer Directa Plus (DCTA) is taking a cautious approach to the environmental remediation tenders that it has been expecting to be awarded. These have been removed from forecasts and full year revenues are estimated at €7.3m, down from €10.5m, with a loss of €5.1m. The interim revenues declined 27% to €3.45m, although this was partly offset by the concentration on higher margin business. If Directa Plus wins one of the tenders, then revenues could rise significantly over the next year. There should still be net cash of €5.2m at the end of 2024, so Directa Plus can wait for the tenders to come through.
Shield Therapeutics (STX) has revealed phase 3 paediatric study results for ACCRUFeR, its iron deficiency anaemia treatment, that show highly clinically relevant effectiveness. This will support filings with the FDA and the European authorities for children older than one month. The FDA filing should be in the first quarter of 2025.
Ondine Biomedical Inc (OBI) has raised £2.8m at 12.5p/share, although the transaction is not expected to be completed until early November. This follows a partnership with Sweden-based Molnlycke Health Care that will take the Steriwave nasal antimicrobial treatment in the European and Middle East markets. The UK is the initial focus. The addressable market is $300m.
Cora Gold (CORA) says exploration work at the Sanankoro gold project in southern Mali has identified twenty new targets within eight gold bearing structures – four primary and four secondary structures. There are seven key targets. This provides potential to extend the existing gold resource of 920,000 ounces. There are signs that the Mali government may lift the moratorium on issuing permits. The existing DFS was based on a gold price of $1,750/ounce and even at this price level the project would generate $71.8m of free cash in the first year.
Clean Power Hydrogen (CPH2) has completed the final stage of the Factory Acceptance Test for the MFE110 electrolyser. The customer is Northern Ireland Water, and it will deploy one unit. This should help to spark more serious interest from other potential customers.
Fluid power products supplier Flowtech Fluidpower (FLO) had already pre-empted the interims in its July trading statement, but trading got tougher in the third quarter. Interim sales fell 6% to £55.7m with customers deferring orders. A recovery was expected in the second half, but revenues are likely to be flat leading to a 2% decline in revenues to £110m. Pre-tax profit is forecast to slump from £4.3m to £1.7m before recovering next year.
Emmerson (EML) is hopeful that it will receive the environmental permit for the Khemisset potash project in Morocco before the end of the year. There will also be the release of lab results from the second round of crop trials that examine the effectiveness of the potash providing phosphate to lettuces. Emmerson currently has $1.7m in cash. This should last well into 2025.
Hummingbird Resources (HUM) has launched an operational and strategic review and Dan Betts is moving from chief executive to chairman of the gold producer. A new boss is being sought. Lower than expected mining volumes mean that Kouroussa will take until the end of the year to reach commercial production. A $30m prepayment gold loan has been agreed with CIG. Gold will be delivered to CIG each month.
Energy services supplier Enteq Technologies (NTQ) has raised £1.5m from a placing and subscription at 5p/share. A retail offer could raise up to £500,000 and it closes on 30 September. The cash will help to finance the commercial launch of the SABER (Steer-at-Bit Enteq Rotary) tool. Testing with the first customer is ongoing. The fleet of SABER tools will be raised to ten.
Spirits supplier Distil (DIS) is raising £650,000 at 0.12p/share with non-exec Roland Grain subscribing £200,000 and Dr Graham Cooley £90,000. The shares come with placing warrants exercisable at 0.36p each. Allenby has been appointed as broker. The cash will fund promotion and production of stock.
MAIN MARKET
Highway Capital (HWC) has ceased discussions for the purchase of Guinevere Capital Esports and Entertainment. A capital restructuring is planned so that debt can be converted into equity and more cash raised via a share issue. The 2022-23 and 2023-24 accounts should be published by November. Trading in the shares was suspended in 2016.
Andrew Hore
Quoted Micro 24 June 2024
AQUIS STOCK EXCHANGE
Brewer Daniel Thwaites (THW) increased full year revenues by 6% to £115.5m. The main growth was in the pubs and inns division. Operating profit before property disposals improved 4% to £11.3m. The interim dividend was raised from 0.75p/share to 0.85p/share. Net debt increased from £66.7m to £70.8m at the end of March 2024. The pension surplus rose to £34.9m.
Adnams (ADB) is outperforming the market in terms of beer sales and volumes. Funding plans are still being assessed.
Marula Mining (MARU) is seeking admission to the Growth Enterprise Market Segment of the Nairobi Securities Exchange in July. This will provide access to institutional investors in Kenya. Initial spodumene sales of 500 tonnes have been made from the Blesberg site. The export sales process will complete in the next four weeks. Minimum sales target of 10,000 tonnes should be achieved for 2024. Other buy-products could be sold later in the year.
Cooks Coffee (COOK) says the Esquires store sales increased by 24% in the first ten weeks of the financial year. The rate of growth is faster in the UK than in Ireland, although like-for like growth was faster in Ireland.
At the end of 2023, Evrima (EVA) had net assets of £1.02m, down from £1.77m at the end of 2022. Evrima is ready to capitalise on natural resources opportunities.
Tap Global Group (TAP) has launched its US service via its joint venture with Zero Hash. This operates a B2B2C crypto and stablecoin infrastructure platform and the US users will get access to a core suite of services to trade bitcoin and other digital assets.
EDX Medical (EDX) is launching comprehensive hereditary germline cancer testing products and services. These will predict if family members are more at risk of contracting cancer. The first test identifies mutations in 70 genes associated with cancers.
Invinity Energy Systems (IES) has secured the sale of a 4.4MWh vanadium flow battery to PowerFlex in the US and it will help to underpin the 2024 forecast revenues of £37.3m. The deal is for California where there is significant demand for storage batteries.
The Mustang Energy acquisition of Cykel AI (LON: CYK) should complete on 26 June.
Health food company Essentially Group (ESSN) has received approval for the listing of $25m of 12% fixed rate notes 2027 on the Vienna MTF. This cash will fund capital investment.
EPE Special Opportunities (EO.P) had net assets of 354.89p/share.
Skin treatments developer Incanthera (INC) has completed the recent fundraising at 15p/share. Unicorn Asset Management has taken a 11.4% stake.
TruSpine Technologies (TSP) chairman Geoffrey Miller has increased his stake from 8.24% to 9.22%. Another shareholder transferred 1.5 million shares at 1.5p each.
All Things Considered (ATC) has appointed Allenby as corporate adviser and broker.
AIM
Medical technology company AOTI Inc (LON: AOTI) has developed products that help to heal wounds by focusing oxygen on chronic wounds. These can include diabetic foot ulcers and pressure ulcers. It joined AIM last Tuesday and raised £19.5m at 132p/share, but £6m of that went on expenses. There were also shares sold by existing investors. The share price ended at 136p. Revenues are growing at an annual rate of 38% and reached $43.9m in 2023.
Market research company YouGov (YOU) says sales bookings have been lower than expected since the interims were reported. Full year revenues will be approximately £324m-£327m and underlying operating profit will be £41m-£44m. There is reduced demand for fast-turnaround research. There will also be a change in revenue recognition for consumer panel services that delays some revenue into next year.
Longboat Energy (LBE) is selling its assets in Norway for $2.5m and the assumption of $8,5m of debt by the acquirer. This should save $1.25m in costs in 2025. The cash will be invested in the main asset, which is the 52.5% owned Kertang gas prospect, offshore Sarawak. A farm out process will be conducted in the second half of 2024. An updated competent person report is due at the end of the month. Chair elect James Menzies has bought one million shares at 9.75p each.
Full year results from Pennant International (PEN) achieved the expected recovery in 2023 pre-tax profit to £1.3m. Higher software income has helped margins to improve. The Gen 3.0 software launch this year has already led to a major contract gain. There is strong activity in the defence sector, but the timing of business is uncertain so a dip in pre-tax profit to £1.2m is forecast for this year.
There is a rival to the Checkit (CKT) indicative offer for Crimson Tide (TIDE), which has been rejected despite an increase in the bid from seven shares to nine shares for each Crimson Tide share. Former AIM company Ideagen has offered 312p/share for Crimson Tide, which is being considered.
Training services provider Mind Gym (MIND) reported an 18% decline in revenues and a slump into loss in the year to March 2024 and revenues are expected to continue to decline this year. Clients are putting off spending on developing the skills of employees. There was a loss of £12.1m after exceptional costs of £8.9m. There was a £6.6m write down on digital assets, restructuring costs of £1.8m and a £500,000 impairment of a US office lease. At the end of March 2024, cash was £1.4m. Liberum expects the underlying loss will be reduced from £3.3m to £1.7m in 2024-25. The new chief executive is updating strategy through further productisation of services.
Kibo Energy (KIBO) has simplified its restructuring plan. It is raising £340,000 at 0.01p each and creditors will convert £274,000 at the same share price. This replaces the £500,000 placing at 0.015p/share. Cobus van der Merwe will become an executive director and Clive Roberts a non-exec. Louis Coetzee is leaving the board.
Concurrent Technologies (CNC) has won its largest single contract worth $4.5m. The company will supply multiple standard plug-in cards to a major US defence and aerospace contractor. The lifetime value of the contract could be $40m. The income should begin this year, but the full benefit will come through in the future.
Crossword Cybersecurity (CCS) has signed a partnership to jointly market its Rizikon supply chain cyber platform. The deal is with a UK subsidiary of a global aerospace and security company. The focus is sub-sectors within the UK critical national infrastructure market. There is potential to generate several million pounds over the next few years.
Active Energy Group (AEG) dived because it intends to leave AIM and go into liquidation. There is no suitable offer for the CoalSwitch assets, but some discussions continue. Even so, shareholders are unlikely to get anything from the liquidation. Trading in the shares will be suspended on 1 July because the 2023 accounts will not be ready. Assuming the general meeting agrees to the proposals the AIM quotation will end on 23 July.
R&Q Insurance Holdings (RQIH) says that it intends to accept the alternative proposal from the buyer of Accredited. This means that the company will go into liquidation.
Geological information publisher Getech (GTC) reported a rise in loss from £3.1m to £3.6m in 2024. Getech has refocused on its core business because it does not have the financial strength to develop hydrogen products. The first four months trading in 2024 has improved by 17%, but the cash outflow needs to be stemmed. There was £400,000 in cash at the end of 2023, supplemented by a property sale in January raising £650,000. There is another property valued at £850,000. Cavendish believes Getech could break even this year.
Seed Innovations (SEED) has £3.9m in cash following the special dividend payment. The main investments are in Juvenescence, Avextra and Clean Food Group, all of which are biotech or cannabis related businesses. There are seven investments with valuations with two written down to nil.
MAIN MARKET
Chamberlin’s financial failure has provided an acquisition opportunity for Castings (CGS) which has paid £400,000 for the assets and inventory of Russell Ductile Castings. That is well below the previous book value. The foundry is based in Scunthorpe, where there is a 25-year lease, and it makes castings from 10kg to 7,000kg in iron and 10kg to 1,000kg in steel. Management believes they can maintain the customers, which diversify the business into new sectors making it less dependent on heavy trucks.
Advanced Energy Industries Inc has decided not to bid for power controllers supplier XP Power (XPP).
Andrew Hore
Quoted Micro 27 May 2024
AQUIS STOCK EXCHANGE
Samarkand (SMK) says revenues will be slightly lower than expected – with a decrease of up to 4% – but the ecommerce services provider’s EBITDA will be halved in line with expectations. Owned brands generated 46% of revenues with the decline coming in third party brands. Samarkand has acquired Optimised Energies, which has brands Natures Greatest Secret and BeNatural, for £600,000 in cash and deferred consideration of £700,000. The acquired company made EBITDA of £300,000 last year. Executive directors have lent £400,000 to the company for fund the acquisition.
Aquis-quoted Phoenix Digital Assets (PNIX) is proposing a tender offer of up to £33.7m at a share price of 5.39p/share. That covers up to 57.9% of the current share capital. The tender price is equivalent to the current NAV since the recovery in Bitcoin and adjusted for potential tax. The tender offer is open until 13 June. The company has available cash of £40.6m. Phoenix Digital Assets also has 17.4 million shares in Flex Labs Inc (FLEX) after it acquired AI software company IO+ PTE, for 110 million shares in total. Supernova Digital Assets received 771,930 shares in Flex Labs.
Brewer Adnams (ADB) improved 2023 sales 3% to £66.3m, but the pre-tax loss increased from £2.3m to £4m. Net debt was £15.9m at the end of 2023 and there is still some headroom in the loan facility despite the review of how to finance the long-term future of the company. Off trade volumes were 14% higher. First quarter group sales were 11% ahead. Cost pressures are easing.
Flow battery technology developer Invinity Energy Systems (IES) raised £56m at 23p/share via a placing with £25m committed by the UK Infrastructure Bank and £3m from Korean Investment Partners. The open offer raised an additional £1.38m out of the £6.6m of shares that were on offer.
Arbuthnot Banking (ARBB) says trading is in line with expectations, although loan growth has been minimal. Specialist lending has been growing faster.
Metals One (MET1) has terminated the farm-in agreement with Gunsynd (GUN).
SuperSeed Capital (WWW) reduced the outflow from operating activities from £306,000 to £144,000. The NAV of the fund of funds company improved from 97.31p/share to 113.33p/share. That was helped by an unrealised gain of £297,000.
Paul Ryan has sold his 3.9% stake in Mortgage Chat (MCAI). Non-exec CP Freeman bought 500 shares in Hydro Hotel, Eastbourne (HYDP) at 948p each.
AIM
Telecoms testing equipment supplier Calnex Solutions (CLX) reported 2023-24 revenues two-fifths lower at £16.3m and it fell into loss. The final dividend was maintained at 0.62p/share. The telecoms market remains subdued, and Calnex Solutions is moving into new markets, such as defence. The distribution agreement with Spirent ends in July, but management is advanced with its plans to replace this source of income. Net cash declined to £11.9m because of higher inventory levels and capitalised R&D. A return to profit is expected this year and the cash level should be maintained.
Automotive interior components supplier CT Automotive (CTA) returned to profit in 2023, while net debt was reduced to $3.8m. Liberum expects underlying pre-tax profit to improve from $8.3m to $10.2m in 2024, even though revenues are forecast to decline. Improved efficiency is helping to boost margins. The Mexico factory is operating at 50% of capacity so there should be further improvement as this figure increases.
Bigblu Broadband (BBB) has sold its Nordic operations to management – including Bigblu Broadband chief executive Andrew Walwyn who is stepping down – at an enterprise value of £1.3m. There could be contingent consideration. Finance director Frank Waters becomes chief executive. The disposal leaves operations in Australia, which could be sold or floated on the ASX, and a stake in Quickline. Cavendish forecasts a 2023-24 pre-tax profit of £3m.
Coatings company Hardide (HDD) has appointed Matt Hamblin as the new chief executive, who has been a non-exec and previously ran a similar coatings business. The interim figures had been flagged. The pre-tax loss increased to £960,000. Lower depreciation means that the full year loss will not be as high as originally thought and it could be similar to the interim loss. Hardide has been EBITDA positive for the past two months. There is cash of £700,000 in the bank.
Another strong trading statement from Kinovo (KINO) with profit and cash ahead of expectations. The property services provider says 2023-24 revenues were £64.1m and net cash is £400,000The pre-tax profit estimate has been raised from £5.8m to £6.1m. Next year’s profit forecast has been raised from £6.3m to £6.6m. Most of the costs relating to the guarantee for DCB have been paid.
Energy and water efficiency services provider Eneraqua Technologies (ETP) reported 2023-24 results in line with the trading statement earlier in the year. The business moved from a pre-tax profit of £10.1m to a £6m loss because local government contracts were delayed. Cost savings have been put in place and additional work has been won so Eneraqua Technologies could move back into profit this year. A change of government could lead to additional incentives for energy saving projects.
Education software and services provider Tribal Group (TRB) has finally reached a settlement with Nanyang Technological University. This dispute has been hanging over the business for years. Tribal Group will pay £3.1m over 18 months. A further exceptional charge for the dispute will be taken in the first half of 2024.
MRI device developer Polarean Imaging (POLX) launched a heavily discounted placing, subscription and open offer. The placing and subscription raised £8m at 1p/share with £2m of that invested by NUKEM Isotopes and £1.6m by Bracco – both existing investors. Up to £2m could be raised from an open offer. The cash is being used to accelerate commercialisation of the XENOVIEW technology and further development.
Pennant International (PEN) has raised £1.51m at 25p/share. The training and software products supplier is trading in line with expectations, but order conversion has been slower than anticipated. The cash will fund the development and integrations of software products.
Watkin Jones (WJG) returned to profit in the first half to March 2024. The student accommodation and rental property developer generated an improvement in revenues from £153.9m to £175.1m. There is no dividend as cash is conserved. Borrowings have been reduced and net cash is £44m.
B90 Holdings (B90), which provides online marketing services to the gaming sector, says Oddsen.nu, an affiliate that is part of the group, has secured fixed listing fee marketing agreements that will generate income of €200,000 during 2024. There could be additional income on top of this based on marketing performance.
Scientific instruments manufacturer Judges Scientific (JDG) says that there is unlikely to be a material revenues contribution from coring contracts at the Geotek subsidiary. The potential contract is unlikely to commence until near to the end of 2024 and then make a significant contribution in 2025. Trading is subdued against tough comparators. WH Ireland still expects a full year pre-tax profit of £33.8m, although that assumes a stronger second half.
Secure payments company PCI-Pal (PCIP) has been successful in the Court of Appeal for the unfounded case brought by Sycurio against its patents. This means that £1.1m of cash should be released from escrow. The finding upheld the original court judgment. PCI-Pal will seeking further costs. The full ruling will become available in a few days.
Piling contractor Van Elle (VANL) expects 2023-24 revenues to be £140m, which is a like-for-like reduction of 12%. Last November, Rock & Alluvium was acquired, and its volumes are 30% higher than pre-acquisition. Housing and infrastructure sectors are expected to recover and a move into energy transmission will help the overall improvement for the business. The order book was worth £36.8m at the end of March 2024. Net cash is £5.5m.
Healthcare communications technology developer Feedback (FDBK) says delays in the NHS procurement process means that 2023-24 revenues will be lower than expected at £1.2m. Management hopes that the contracts will be secured in 2024-25. There was still £4.3m in the bank at the end of April 2024.
Chamberlin (CMH) has been placed in administration. Coal miner Bens Creek (BEN) has also gone into administration.
Victorian Plumbing (VIC) has acquired rival Victoria Plum for £22.5m. The business had been in administration and costs are already being reduced, so it should break even in the second half.
MAIN MARKET
James Gundy, chief executive of shipbroker Braemar (BMS), bought 6,600 shares at 290.5p/share following the full year results. Pre-tax profit fell from £18m to £14.6m on maintained revenues. The total dividend was raised from 12p/share to 13p/share. The new financial year started with an order book of $82.6m.
Power products supplier XP Power (XPP) received an indicative bid approach at £19.50/share. XP Power has rejected the proposal by Nasdaq-listed Advanced Energy Industries.
Admiral Acquisition (ADMR) has agreed to buy critical asset integrity and testing services provider Acuren for $1.85bn from American Securities. The business generates EBITDA of $190m.
Associated British Engineering (ASBE) had net assets of £391,000 at the end of March 2024, including cash of £419,000.
Andrew Hore
Quoted Micro 30 May 2022
AQUIS STOCK EXCHANGE
Silverwood Brands (SLWD) has secured a deal to buy Balmonds Skincare, which manufactures products for people with skin conditions, such as eczema, psoriasis and dermatitis. The total cost of the acquisition will be up to £8m, all in shares, depending on achievement of performance criteria. A shareholder loan will also be acquired by Silverwood Brands for 1.4 million shares. Last year, Balmonds Skincare revenues were £1.41m and the loss was £297,000 after an R&D tax credit of £35,000. The current manufacturing facility could quadruple capacity, although it would require additional storage facilities.
Arbuthnot Banking (ARBB) maintained assets under management at £1.35bn at the end of April 2022, while loan balances were 3% higher than the end of 2021 at £2.06bn. Interest rate rises will improve income.
CBD products supplier and diagnostics testing company Goodbody Health Inc (GDBY) increased first quarter revenues by 276% to £5.2m, although it was still loss making due to foreign exchange movements. Net cash was £5.5m at the end of March 2022. A small profit is still expected for the full year, although that is a sharp downgrade from previous expectations as Covid testing levels reduce.
St Marks Homes (SMAP) made another loss last year. In 2021, revenues increased from £216,000 to £259,000 and the loss reduced from £170,000 to £106,000 even though there was a loss from joint ventures. Cash in the bank fell from £709,000 to £131,000. Net assets are £5.23m and the shares are trading at a discount to this figure.
Hydrogen Future Industries (HFI) subsidiary company HFI Energy Systems has advanced a wind-based hydrogen production system combined with electrolyser technology. The aim is to generate hydrogen at $2/kilo, which is a lower cost than existing technologies. The hydrogen can be generated from waste water or saline. The group intends to invest $1m on development and it will own 51% of an IP developed with the rest owned by inventor Timothy Blake.
British Honey Company (BHC) has terminated its joint venture with Tusmore Park Farms, which was going to set up a new whisky distillery. British Honey will get back £450,000 of its original £750,000 investment.
Watchstone Group (WTG) still had £13m in the bank at the end of 2021. That was after a £3.67m cash outflow from operations. Net asset are 29p a share. There is a £63m plus interest and costs claim against PwC and another claim against former auditor KPMG. Watchstone is appealing against a recent VAT decision by the courts in favour of HMRC.
Eight Capital Partners (ECP) is satisfying a loan of €5m via the issued of the same amount of 7% fixed rate bonds, which are traded in Vienna and mature on 26 July 2022. Major shareholder IWEP will be converting its €20m of loans into shares. There could be a fundraising after this happens.
Evrima (EVA) has decided to maintain its interest in Kalahari Key and not accept the Power Metal Resources (POW) offer, which means that the latter could own 87.7%. Kalahari Key owns the Molopo Farms complex project, which has nickel, copper and platinum group metals deposits.
Shareholders of Lekoil Ltd (LEK) have voted in favour of the appointment of Bright Grahame Murray as auditor and to authorise the directors to set the remuneration.
Altona Rare Earths (ANR) has adjourned a general meeting that was seeking shareholder approval to reprice warrants exercisable at 20p a share. The new plan is to offer to swap them for warrants exercisable exercisable at 12p a share.
AIM
EnSilica (LON: ENSI) raised £6m at 50p a share when it joined aim on 24 May. The share price ended the week at 50.5p. EnSilica designs application specific integrated circuits (ASICs), which are in increasing demand in areas, such as Internet of Things, satellite communications, wearable health devices and 5G. EnSilica has successfully managed the current shortage in semiconductors because it has managed to pass on price rises. The cash raised will help to fund growth and could finance suitable acquisitions and the quotation will raise the profile of the company. The ASICs market is expected to be worth $27.6bn in 2026.
Scientifics instruments manufacturer Judges Scientific (JDG) is making its largest ever acquisition, which is expected to be sharply earnings enhancing. Judges Scientific is paying an initial £45m in cash for Geotek, a developer and manufacturer of instruments used to measure and log characteristics of geological cores and related services. There could be further payments of up to £35m (50% cash and 50% shares). A minimum operating profit of £6.4m needs to be achieved in 2022 to spark any payment. The maximum payment will be made if operating profit of £11.4m is achieved. WH Ireland believes that the deal will enhance earnings by 17% this year – with a 7-month contribution from Geotek – and by 30% next year. Pre-tax profit is set to improve from £18.1m to £22.4m in 2022, and then rise further to £25.5m in 2023.
The FDA has given approval for the Parsortix liquid biopsy test developed by ANGLE (AGL) for its use with metastatic breast cancer patients. Parsortix is the first system that harvests circulating cancer cells from a blood sample for analysis that has been approved. By obtaining the approval for breast cancer diagnostics, this provides a route map for gaining approvals for other cancers.
Credit hire and legal services company Anexo Group (ANX) could receive a significant income boost after the out of court settlement by VW because of its manipulation of air pollution tests. VW has agreed to pay £193m plus costs to more than 91,000 claimants in England and Wales. That is just over £2,000 each. This is a separate case to that being put forward by Anexo for its 13,000 claimants, although a similar settlement can be anticipated. House broker Arden Partners believes that the company will receive 50% of the compensation plus legal costs. Both Arden and WH Ireland are suggesting a pre-tax profit contribution of £20m-£25m after some additional costs. The timing of this is uncertain. Net debt is expected to be more than £70m by the end of this year, some of which is litigation funding related to the VW cases, and that would be much lower if the VW cash is received.
Demand for vehicles and equipment from television programmes and films means that Facilities by ADF (ADF) is benefitting from high utilisation rates. There were 39 productions serviced in 2021. TV series tend to book well ahead of the start of production, so visibility is good for the current year. The company is already investing in new trailers, although there could be delays in their arrival. Utilisation rates are expected to be around 85% this year.
Floorcoverings distributor Likewise (LIKE) reported full year figures in line with previous indications and it continues to gain market share. Acquisitions and organic growth in double digits are expected to enable Likewise to grow revenues from £60.5m to £114.9m in 2022, while underlying pre-tax profit is forecast to jump from £1.6m to £4.2m. New distribution capacity has been added and a distribution centre is on course to open in the first quarter of 2023.
Pennant International (PEN) continued to lose money in 2021, but the software and training company is already on course for a return to profit this year. Recurring revenues are running at £9m a year, helped by additional software contracts. The total order book is worth more than £32m with more potential orders in the pipeline. WH Ireland forecasts a 2022 pre-tax profit of £600,000 with most of the expected revenues of £17m covered by the order book.
Belvoir Group (BLV) has acquired TIME Group, another appointed representative of the Mortgage Advice Bureau predominantly based in northern England and the Midlands for an initial £3.7m. This is earnings enhancing. In the year to July 2021, TIME generated revenues of £4.2m and pre-tax profit of £600,000. Belvoir revenues are in the line with expectations in the four months to April 2022. Higher lettings income offset a decline in property sales income.
MTI Wireless Edge (MWE) First quarter revenues were 12% ahead at $11.2m, helped by a strong performance by the distribution business and a contribution from recent acquisition PSK Wind Technologies. There was a 3% decline in antenna revenues because customers could not get their hands on other components. The orders are there for antenna, particularly for 5G. The acquisition and dividends led to a fall in net cash to $6.5m, but it should improve by the end of 2022.
Tortilla Mexican Grill (MEX) is acquiring rival fast-casual Mexican restaurants operator Chilango. Investment firm RDCP currently owns Chilango. Tortilla Mexican Grill will pay up to £2.75m for the restaurant chain. In 2021, Chilango generated revenues of £7.3m and made a small loss. Chilango has eight sites in the London and Manchester.
Medical imaging technology provider IXICO (LON: IXI) reported interim revenues fell from £4.9m to £3.9m. That was not a surprise because it was flagged that there would be a decline this year, which was exacerbated by the early closing of a study. Pre-tax profit fell from £635,000 to £201,000. The order book was worth £12.6m at the end of March 2022, including £3.8m secured in the period. At least one more contract has been added since then.
Trinidad-focused Trinity Exploration and Production (TRIN) revenues improved from £44.1m to £66.3m in 2021 even though oil and gas production was lower. A new drilling programme will start in the second half of 2022, and this will help to increase production. A deeper appraisal well, with an estimated probability of success of 55%, could substantially increase reserves.
Purplebricks (PURP) has admitted that it made a higher than expected loss in the year to April 2022. There was still £43.2m in the bank.
MAIN MARKET
Motor vehicle lender S and U (SUS) is trading ahead of expectations. Group net receivables have increased by more than 5% since the beginning of the financial year. The fastest growth was at property lender Aspen where net receivables were 12.5% higher. The much larger Advantage car lending business grew its receivables by 3.5%, while credit quality has been maintained. Defaults remain low. The forecast yield is 5.8%.
Associated British Engineering (ASBE) kept its overheads to a minimum in the six months to March 2022 and still had £470,000 in cash and available for sale financial assets of £154,000. Net assets are £610,000, which is double the current market capitalisation.
Publisher National World (NWOR) says revenues are 4% ahead so far this year, although the rate of growth has slowed. Digital revenues are 38% higher year on year, while print revenues have declined due to lower circulation.
Zotefoams (ZTF) has made a good start to the year with revenues 13% ahead. Prices have been increased to offset higher costs. Polyolefin foams sales were 20% ahead with 5% relating to volume increases. Full year pre-tax profit could recover from £7.2m to £8.7m this year with a much bigger improvement expected next year.
Andrew Hore
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 6 September 2021
AQUIS STOCK EXCHANGE
Rutherford Healthcare (RUTH) says a UK investor has agreed to acquire 19 million shares at 65p each. That will raise £12.35m. Rutherford is also issuing 64 million shares to acquire UAE-based Proton Partners International Health Care Investments, which owns the Gulf International Cancer Center in Abu Dhabi.
Capital for Colleagues (CFCP) has made a new investment in Craft Prospect, a Glasgow-based satellite engineering business. There will be £800,000 invested in ordinary shares for a 11.3% stake. The cash will be used for recruitment and product development.
VSA Capital Group plans to join the Aquis Stock Exchange on 9 September. It was previously quoted on AIM, although it cancelled the quotation in April 2013. London-based VSA provides corporate finance and broking services and has an office in Shanghai. In the year to March 2021, the main subsidiary VSA Capital increased revenues from £2.14m to £2.98m and pre-tax profit jumped from £278,000 to £746,000. Group net assets were £4m at the end of March 2021.
Polygon Global Partners has increased its bid for Watchstone Group (WTG) to 38p a share, up from 34p a share, which values the company at £17.5m. Watchstone still believes the bid is too low. In the middle of August 2021, there was £14.1m in the bank and £1.8m in escrow. There are potential litigation claims on top of that.
KR1 (KR1) has participated in the Moonriver (MOVR) crowdloan and Kusama (KSM) parachain auction. KR1 contributed 5,000 KSM to the crowdloan auction. In return KR1 has received 19,666,35 MOVR and will receive a further 45,888.15 over 48 weeks. KR1 has already sold 15,643.19 MOVR in return for 5,162.25 KSM. KR1 also invested $500,000 in return for Exponent (XPN) tokens. Exponent is an open source platform.
In the year to December 2020, MiLOC Group Ltd (ML.P) increased revenues from HK$15.4m to $20.5m and it moved from loss to a profit of HK$6.22m. The healthcare company sharply reduced its distribution costs and other admin expenses. This reflected the termination of an endorsement agreement and a write-back of a previous over provision for fees.
First half revenues of Yooma Wellness Inc (YOOM) were $2.78m, with $2.18m generated in the second quarter. The interim loss was $5.5m.
Wishbone Gold (WSBN) has identified seven targets at the Cottesloe project in Western Australia.
Eight Capital Partners (ECP) has launched an issue of €25m 4.8% five-year bonds that will be listed on the Vienna Stock Exchange. They will help to refinance existing bonds.
Evrima (EVA) is raising £720,000 at 5p a share plus warrants to subscribe for shares at 10p each. This will finance investments in existing investee companies and new investments.
Vulcan Industries (VULC) has raised a further £163,000 at 1.7003p a share.
AIM
Capital equipment manufacturer Mpac (MPAC) had a strong first half with a combination of acquisitive and organic growth in the Americas. Revenues were one-fifth higher at £44.2m, with organic growth of 2%. Pre-tax profit was 88% higher at £4.7m. Net cash was £10.3m at the end of June 2021. Healthcare and food have been the main markets for the company’s packaging and automation equipment, but a new contract has been signed to supply battery cell assembly equipment. The full year pre-tax profit forecast has been upgraded to £8.2m.
Bigblu Broadband (BBB) is returning £26m to shareholders following the recent disposal of Quickline. That will be 45p a share in cash via the issue of B shares by October. There should still be net cash of £1.7m at the ned of November 2021 with deferred consideration due next year. Interim revenues from continuing operations improved from £10.6m to £13.1m. Growth is coming from Australasia, but the Nordic region is expected to return to growth next year.
Mercia Asset Management (MERC) has made a £1.6m direct investment in Locate Bio, which had previously been backed by the manager’s funds. Locate Bio’s products help to accelerate the repair of bone and cartilage. The total of £10m raised by the company will be used to support trials of its technology.
Pennant International (PEN) says interim revenues improved by 17% thanks to a strong performance by the software division. The three-year contracted order book has fallen to £25m, but there are potential contracts in the pipeline. Pennant should return to profit this year.
Interim revenues have trebled to £820,000 at in-game digital advertising firm Bidstack (BIDS), but there is still a long way to go before it reaches profitability. Losses will continue in 2021 and 2022, although there is enough cash in the bank to cover these, following a £10.8m fundraising.
Trading at Manchester-based Northcoders (CODE) has been strong since the software training company joined AIM during the summer. Applications are 162% of 2019 levels and there is 90% revenue visibility for 2021. There are plans to open a new office in Birmingham.
Real-time financial data software provider Arcontech (ARC) reported flat full year revenues and pre-tax profit of £3m and £1.1m respectively. Even so, the dividend was raised by 10% to 2.75p a share.
Bangladesh Bank has approved the acquisition of a majority stake in Sanofi Bangladesh by Beximco Pharmaceuticals (BXP).
MAIN MARKET
Innovaderma (IDP) has completed its product portfolio review and medical device products have been classed as non-core. Packaging of core personal care products has been refreshed and they are available via Amazon. There are plans to use influencers to build sales.
Dealings have commenced in Caracal Gold (GCAT) following its acquisition of Kilmapesa gold mine. There are plans to increase production to 50,000 ounces of gold each year.
One Heritage Group (OHG) has become aware of financial issues with owned associate company One Heritage Maintenance, where it owns the equivalent of a 34% stake. The stake was valued at £285,000.
Andrew Hore
Andrew Hore – Quoted Micro 3 May 2021
AQUIS STOCK EXCHANGE
Decentralised finance (DeFi) focused investment company Dispersion Holdings (DEFI) raised £9m at 3p a share. The share price closed at 4.15p (3.8p/4.5p) and there were just over one million shares traded on the first day. The market capitalisation is £25.4m. Shares were originally issued at below the placing price and the underlying NAV is 1.8p a share. Dispersion has already made two investments, although one of those is a £210,000 investment in NFT Investments, which has management in common, at the equivalent of 7p a share. NFT’s placing was at 5p a share and the investment was made after the shares commenced trading. Since then, the share price has fallen to 3.85p (3.7p/4p).
Semper Fortis Esports (SEMP) has the management experience to exploit the fast-growing esports sector. The board includes football adviser Keith Harris. Chief executive Kevin Soltani was a co-owner of an esports franchise in MENA and co-founded the GIMA Esports Agency with chief operating officer Jassem Osseiran. The Semper Fortis Esports shareholder register includes the likes of Chris Akers. Semper Fortis Esports raised £2.5m, after expenses, at 1p a share. Pro forma net assets are £2.13m, with £2.15m cash in the bank. The pro forma NAV is just over 0.5p a share. The share price ended the week at 3.95p (3.8p/4.1p).
Greencare Capital (GRE) has invested £100,000 in Voyager Life, as part of a £671,000 before an Aquis flotation. Voyager Life supplies CBD and hemp seed oil products. This follows the £100,000 investment in CBD products supplier Clearly Supplements in the form of a 5% convertible loan. The Covid-19 pandemic and legislation changes hampered the planned reverse takeover, and it did not go ahead. There should still be more than £1m in cash in the balance sheet after the investments.
Revenues fell 59% to £8.49m at Newbury Racecourse (NYR) and there was a loss of £2.27m. Only four race meetings had people attending last year. There were 20 race days last year and there will be ten by 17 May this year. There was £1.5m raised from the sale of surplus land. There was £5.53m in the bank at the end of 2020. Net assets were £48.9m, down from £51.4m.
Spirits maker British Honey (BHC) says that first quarter revenues, excluding hand sanitisers, increased by one-quarter to £1.33m. The integration of Union Distillers is nearly complete. A new bottling line will increase capacity to four million bottles a year by the end of 2021. A new bottling line for miniatures is also being installed.
Gunsynd (GUN) has made a £200,000 in DiscovOre (ORE) at 2p a share. DiscovOre is changing its investing strategy to focus on the medical psychedelic sector.
Supported housing provider Walls and Futures REIT (WAFR) says that NAV has fallen by 5% to 102p a share. John D Wood values the company’s properties at £3.2m. The company collected 100% of rents last year. Virgata Services has to publish an offer document by 6 May.
Primorus Investments (PRIM) has invested $2.5m in convertible loan notes in standard listed Mustang Energy (MUST) as part of a fundraising to pay for a 22.1% stake in VFFB-H, which owns 50% of Enerox, an Austria-based vanadium redox flow battery manufacturer. AIM-quoted Bushveld Minerals (BMN) is the majority shareholder in VFFB-H. Enerox plans to raise £30m. Trading has been suspended in Mustang Energy shares.
Altona Rare Earths (ANR) is proceeding with the acquisition of the Monte Muambe rare earths project. The contract is being finalised and then Altona will start the earn-in to progress towards a 70% stake in the project. Altona is still assessing other projects. An application has been filed for a standard listing.
Angelfish Investments (ANGP) has raised £42,000 at 0.00258065 a share, plus £90,000 via a convertible loan facility at the same conversion price as the placing. Simon Grant-Rennick has been appointed executive chairman and Burns Singh Tennent Bhohi, who has taken a 14.8% stake, as an executive director.
Two locations have shown strong gold intersection at surfaces at NQ Minerals (NQMI) 100%-owned Beaconsfield gold mine in Tasmania. The surface potential could add significant resources to Beaconsfield.
Positive results have been reported by BWA Group (BWAP) from the sampling at the Nkoteng rutile sands project in Cameroon. There are elevated intervals of rutile-ilmenite, zircon and kyanite over continuous zones.
SulNOx Group (SNOX) has signed an Africa-focused distribution agreement with Rigworld Solutions. This formalises and earlier agreement.
Watchstone Group (WTG) has made the switch from AIM to Aquis.
Coinsilium (COIN) has raised £18,500 from the sale of treasury shares at 18.5p each.
AIM
Hurricane Energy (HUR), which at one time was a constituent of the AIM 50, is restructuring its balance sheet. This would involve swapping $50m of the principal of the company’s convertible bonds into 95% of the enlarged share capital. The terms of the remaining $180m of bonds will be amended. The business will focus on extending the oil production case for the Lancaster 205/21a-6 well.
Construction services consultancy Driver (DRV) says that its latest underlying interim profit will be slightly lower than for the same period last year, which was £1.25m. That is a strong comparative period. Lockdowns have varied in the different operational countries. Driver also lost a team in Asia Pacific to a rival. The focus is higher margin work and activity levels are improving. Net cash was £7.2m at the end of March 2021. The interims will be published on 8 June.
Pennant International (PEN) fell into loss in 2020 and it should manage to return to profit this year. Forecast revenues of £16m are 90% covered by the order book. Pennant wants to win more business in the rail sector.
Pollen Street Capital is bidding 75p a share for spend control software supplier Proactis (PHD) and the board is recommending the offer, which values the company at £71.6m. Pollen Street has the finance to accelerate growth. The bid is at 24 times prospective 2020-21 earnings, falling to 19 next year.
Building software supplier Eleco (ELCO) says that first quarter revenues were 9% ahead at £7m, while year-on-year pre-tax profit was one-fifth higher. Net cash was £7.9m at the end of March 2021. A general meeting has been requisitioned so that shareholders can vote on the re-election of executive chairman Serena Lang and non-executive director Kevin Craig, a resolution to make it compulsory for all directors to come up for re-election at every AGM and a vote on the remuneration report in the 2020 accounts.
Cosmetics supplier Warpaint London (W7L) had an improved second half and momentum is continuing into next year. In 2020, revenues fell from £49.3m to £40.3m, but earnings halved from 6.3p a share to 3.1p a share.
President Energy (PPC) expects to bring the EV-1001 well on the Estancia Vieja gas field into production during May. The drill rig will be moved to the next location. President is expected to return to profit in 2020.
Amiad Water Systems (AFS) plans to transfer its quotation to the Tel Aviv Stock Exchange.
MAIN MARKET
In 2020, Argo Blockchain (ARB) increased revenues from £8.6m to £19m, but it made a small loss. Cash inflow from operating activities was £12.3m, according to finnCap. This year a pre-tax profit of £30m is forecast, although working capital will consume most of the cash generated even before significant capital expenditure.
Moulded plastic parts manufacturer Carclo (CAR) says that it has maintained its full year revenues for plastics, but there was a decline in aerospace revenues, and made a profit. Net debt has been reduced from £22.1m to £20m.
InnovaDerma (IDP) raised an additional £500,000 in an open offer and that took the total raised to £4.5m. This will fund ecommerce investment.
Andrew Hore
Andrew Hore – Quoted Micro 17 August 2020
AQUIS STOCK EXCHANGE
Brewer Adnams (ADB) reported a slump in revenues from £34.7m to £21m in the six months to June 2020 and there was a loss. That is no surprise given the problems of the hospitality sector. Online sales grew but could not offset the loss of on-trade sales. Net debt was £14m at the end of June 2020.
Medical device developer TruSpine Technologies (TSP) is on course to join the Aquis Stock Exchange on 20 August. TruSpine wants to raise £1.5m, which would give it a valuation of £31.5m. The investment is eligible for EIS-relief. TruSpine expects to make a FDA submission for Cervi-Lok, which is one of the three spinal stabilisation devices being developed, in the fourth quarter of 2020. Existing Aquis-quoted company Primorus Investments (PRIM) is an investor in TruSpine. In 2017, it invested £500,000 at a pre-money valuation of £15m. Another Primorus investment, Greatland Gold (GGP), has performed strongly in the second quarter and the share price is more than 155% ahead over the period.
NQ Minerals (NQMI) has raised a further £695,000 at 7p a share. NQ has also secured a $55m loan facility to refinance the project debt of the Hellyer gold mine. Interest savings should be $3.4m a year. Chairman David Lenigas has acquired 20,000 shares at $0.12 each.
Sativa Group (SATI) had a record July. The CBD products supplier has benefitted from sanitiser demand.
TechFinancials (TECH) reported a loss of $492,000 in the first half of 2020. There is $716,000 in the bank. The closure of the trading software operations will be completed in the second half. The Footies ticketing business still has not progressed in terms of signing up clients.
Recruitment company Sumner Group Health (SGRL) intends to withdraw from Aquis in order to save money. A general meeting will be held on 3 September.
IamFire (FIRE) has completed the purchase of a 10% stake in Bio2pure, in a deal that values the company at £8m. The investee company’s CoviPure disinfectant has been launched
AIM
Energy supplier Yu Group (YU.) has been criticised for its financial controls and systems back in 2018. A £300,000 fine has been waived because remedial action has been undertaken. Yu has acquired Bristol City Council-owned Bristol Energy’s B2B business for an initial £1.24m.
Appreciate (APP) was going to have a tough year even before COVID-19. In the year to March 2020, underlying pre-tax profit fell from £12.5m to £11.4m and there is likely to be a much larger profit decline this year. Trading has improved after a tough first quarter. If Appreciate had not been investing in its digital products it would have found recent months even more difficult. A property has been sold for £3.2m, which further enhances the cash pile of £29.6m at the end of March. The hamper business will be closed this year, but the overall Christmas savings business is holding up. Corporate demand is recovering.
Investment in VW emissions case work will hold back profit in the second half at credit hire firm Anexo (ANX). Lockdown led to a sharp fall in interim profit, but business is building up again. Profit could return to the 2019 level of £23m in 2021, even if there are no VW case revenues. A 0.5p a share interim dividend is being paid.
The geographic and sector spread of recruitment firm Empresaria (EMR) has helped it cope with difficult trading, particularly in its airline-related business. The business was profitable in the first and second quarters. The underlying interim pre-tax profit fell from £3.7m to £2.4m. There is no full year forecast.
Touchstone Exploration (TXP) has commenced drilling at Chinook on the Ortoire block in Trinidad. Chinook is valued at 2p a share by finnCap, but it could be significant like previous find Cascadura, which is valued at 78p a share. Cost cutting has helped to reduce year-on-year per barrel operating costs by 28% in the second quarter. There was still a second quarter loss. Production has declined to 1,396 barrels/day in the second quarter, but this will rise substantially when Cascadura comes into production.
STM (STM) has acquired pensions administrator Berkeley Burke for up to £2.9m. this will add to the UK operations. The business will be rebranded.
Pennant International (PEN) has an order book worth £36m and net cash of £2m. Annualised cost savings of £1m will help the second half performance and a profit is expected. That may not be enough to cover the first half loss.
Pires Investments (PIRI) investee company Getvisibility has signed a US distribution agreement. The data security business will gain access to US government work.
Matthew Freud has taken his stake in Reach4Entertainment (R4E) to 18.7%. The company’s chief executive has increased his stake to 18.7%. The general meeting to vote on the proposal to leave AIM is on 21 August.
MAIN MARKET
Tex Holdings (TXH) says interim revenues fell from £21.8m to £18.5m and the loss has increased from £351,000 to £1.36m. There is £2.54m in the bank, but net debt is £10.7m. The board still wants to raise more cash. The plastics business is still profitable, although it made a lower contribution. The engineering loss was slightly lower, but boards and panels fell from profit to loss.
MATCHED BARGAINS
Fastjet (FJET) is moving from AIM to Asset Match and the airline is reregistering as a private limited company. Trading is expected to start on 24 August. The first auction will be on 30 September.
Andrew Hore
Andrew Hore – Quoted Micro 30 July 2018
NEX EXCHANGE
Milamber Ventures (MLVP) has signed heads of terms for the acquisition of health and social care training provider Orchard Rock. Milamber will pay up to £1.9m in cash and shares. If the deal goes ahead then there will be an initial cash payment of £800,000. A further £200,000 is payable when the management handover is completed and up to £900,000 is payable in shares depending on EBITDA. In the year to April 2018, Orchard Rock achieved revenues of £980,000 and EBITDA of £374,000. The deal includes a 15% stake in digital learning business YourHippo in return for £100,000 in shares. At the AGM, shareholders voted through the authorities required for equity and debt funding for the Orchard Rock deal. Two new private investors have acquired 166,668 shares at 9p each.
Smart home products supplier Sandal (SAND) says that its smart home products revenues exceeded £1m in the year to May 2018. This growth did not quite offset the fall in the PowerConnections division due to destocking. Two product ranges have been discontinued at a stock write-off cost of £72,000. According to Equity Development, MiHome revenues could almost double this year and they would represent most of the growth in group revenues and help Sandal to move into profit. In 2019-20, MiHome should be generating the majority of group revenues.
Peru-based VI Mining (VIM) is acquiring the Cushuro gold project for $27.5m in (5.75 million) shares from Karmin Exploration. Karmin has restrictions on selling shares until 2 March 2020. Cushuro is in the same region as the existing two silver and gold projects.
MetalNRG (MNRG) is acquiring the Gold Ridge project in Arizona, which includes three mines that were previously producing gold. MetalNRG will pay $700,000 in cash and shares to Winston Gold Corporation.
South Africa-based social impact investor Inqo Investments Ltd (INQO) had R2.9m in cash at the end of February 2018. There are also loans of R784,000 to offset against that. Full year revenues increased from R17m to R23m, but the lack of other income meant that Inqo has fallen back into loss. The Kazuko game reserve is achieving better room rates and higher occupancy, helped by the weak Rand. Honey producer Bee Sweet Honey generated revenues from the May 2017 harvest but not from the November one because of bad weather. There was also an interest contribution from Four One Financial Services.
Crispin Freeman, non-executive director of Hydro Hotel, Eastbourne (HYDP), has bought 600 shares at 740p each, thereby taking his stake to 6,600 shares.
AIM
Pennant International Group (PEN) has achieved three-fifths of its 2018 profit forecast in the first half. The defence training services provider expects to report a more than doubled interim profit of £2.1m on the back of a 30% increase in revenues. The order book is worth £30m. A full year profit of £3.5m is forecast. This is without a contribution from the potential Middle East contract.
Geospatial data technology developer 1Spatial (SPA) is raising £8m at 3.75p and this cash will be deployed to repay the overdraft, develop additional technology and win new customers.
APC Technology Group (APC) has raised £2.54m at 6.75p a share in order to help finance the £2.2m acquisition of Aspen Electronics, although £500,000 is being paid in shares. This has sparked a one-third upgrade in the Stockdale 2018-19 earnings per share forecast to 0.75p. Aspen distributes RF and microwave components.
Tern (TERN) is raising £2.9m at 26p a share. This cash will help to develop its investee companies, particularly cyber security business Device Authority. Tern has a 50% stake in Internet of Things business InVMA, which has acquired the IP of AMIHO Technology, which has developed technology for the connectivity for the smart energy sector.
Judges Scientific (JDG) continues to benefit from currency movements and operating profit will show progress at the interim stage. The interims will be published on 18 September. There should be less of second half bias this year. At the end of June 2018, the order book stood at more than 14 weeks.
Holders Technology (HDT) moved back into profit in the six months to May 2018 and both PCB and LED businesses increased their revenues. An interim loss of £53,000 was turned into a profit of £65,000. The interim dividend is unchanged at 0.25p a share. NAV is 96p a share, which is double the current share price.
Online gaming marketing services provider Veltyco (VLTY) has made consistent progress since reversing into an AIM shell but this has come to a halt. Marketing revenues continue to grow but the progress of 51%-owned Bet90 has been slower than expected, sparking the decision to spend more on marketing. This means that group EBITDA will be lower than expected. Altair Entertainment owes Veltyco €3.4m and it has agreed to pay €300,000 a month. Veltyco had €1m in the bank at the end of June 2018.
Financial services provider STM Group (STM) says first half trading was in line with expectations. The Harbour acquisition should be fully integrated with STM Malta by the end of August. STM is recruiting additional directors and management.
Wynnstay Properties (WSP) is acquiring units 10-15 in Petersfield Business Park for £3.83m. The current annual rent is just over £203,000.
Beximco Pharmaceuticals (BXP) is exporting its fourth product to the US. The latest product is an anti-diabetic drug, which is the generic equivalent of Bristol-Myers Squibb’s Glucophage.
MAIN MARKET
Bioquell (BQE) increased its revenues by 9% to £15.7m in the first half of 2018. The bio decontamination services provider generated like-for-like revenues growth of 15% at constant currency rates. Pre-tax profit is two-fifths higher at £1.96m, although that includes a £76,000 gain on disposal. There is £15m in the bank.
Telecoms services provider Toople (TOOP) had a slightly more successful third quarter. Gross profit was 57% higher than the third quarter of the previous year. That follows flat gross profit at the interim stage. However, gross profit needs to be much higher to cover overheads.
Laurence Orbach has stepped down as a director of book publisher Quarto Group (QRT).
Andrew Hore
Andrew Hore – Quoted Micro 19 March 2018
NEX EXCHANGE
Formation Group (FRM) has been repaid its £5m loan for a development in Wembley and it retains a 40% share of the profit of the development. This cash has been used to invest in acquired a 3.44% stake in Proton Partners International, which has an operational proton beam therapy centre in South Wales with two more sites planned. A treatment unit in Abu Dhabi is expected to be launched in 2019.
Capital for Colleagues (CFCP) has loaned £600,000 to TG Engineering, which supplies steel and aluminium components to the aerospace and scientific sectors. The Dorset-based company will be 35%-owned by Capital for Colleagues and 20%-owned by the employee share ownership trust. The rest of the shares will be owned by the original founders and management.
IMC Exploration (IMCP) intends to focus on its main projects in Ireland. The interim loss was reduced from £99,000 to £75,000. There was net debt of £35,000 at the end of 2017.
Block Commodities (BLOC) has agreed to acquire a 21% stake South African fertiliser and plant products wholesaler VIPA Holdings. Block is paying £150,000 for new shares and acquiring £610,000 worth of existing shares in return for 748.5 million Block shares. VIPA is loss-making following the withdrawal of a major international trading partner. The ongoing focus will be fertiliser and the investment in Advanced Agricultural Holdings will be unwound with the 221.6 million shares issued as initial consideration returned to the company.
Primorus Investments (PRIM) has invested £500,000, at £22 a share, in Engage Technology Partners. This follows an initial subscription of £400,000 at £15 a share. Primorus owns 3.6% of Engage, which builds SaaS-based employee workflow software.
Hellenic Capital (HECP) had £272 in the bank at the end of 2017, but since then £179,000 has been raised at 0.5p a share. There was £120,000 generated from operations in 2017 but that was due to a £143,000 increase in creditors. An investment property in Leeds is in the books at £204,000, while the NAV was £58,000 at the end of 2017. The property is being sold for £235,000 and a £5,000 non-refundable deposit has been paid.
Globe Capital Ltd (GCAP) has raised £500,000 via subscription at 0.75p a share. The cash will finance a new office in Dubai. Valiant Investments (VALP) has raised £51,000 at 0.15p a share. The 84.7%-owned Flamethrower has acquired National-Preservation.com, which focuses on British railway heritage, and has nearly 10,000 registered users. Equatorial Mining and Exploration (EM.P) has raised £40,000 from an issue of 5% unsecured irredeemable convertible loan notes and a further £10,000 could come from the exercise of warrants. Via Developments (VIA1) has raised a further £590,000 from a debenture issue, taking the total raised to nearly £6m. The accounting reference date is being changed from March to September.
In 2017, Walls and Futures REIT (WAFR) achieved a total return on its portfolio of 11.5%, ahead of its benchmark total return of 7%.
DHAIS (DHAP) is leaving NEX on 18 April, nearly ten years after joining the market. The business is being streamlined and the focus is organic growth of the hearing aid operations. Shareholders owning 78.9% of DHAIS agree to the withdrawal so the company does not have to hold a general meeting.
AIM
Diurnal Group (DNL) is raising up to £11m at 190p a share in order to finance the launch of the Alkindi hormonal disease treatment for children in Europe and complete the development of Chronocourt in Europe and start a phase III study in the US. IP Group is converting its loan into shares.
Shares in VR Education (VRE) immediately went to a premium when trading commenced. It raised £6m at 10p a share and the share price ended the week at 12.25p. More than two million shares were traded during the week.
1Spatial (SPA) has sold Enables IT back to the founder for £1, while retaining a 19.9% stake. 1Spatial has also injected £150,000 into the business and loaned a further £85,000. The group will be able to focus on its geospatial data operations, which are performing better than expected. 1Spatial is on course to approach breakeven in the year to January 2019.
Marshall Motor Holdings (MMH) is outperforming new and used car markets, although like-for-like sales are still lower. Profit is expected to decline this year but Marshall should be able to continue its progressive dividend policy. There is a significant capex programme but the sale of the leasing business means that net debt is £2.2m.
Pennant International Group (PEN) already has nearly all of the £20.5m revenues forecast for 2018 covered by orders. Pre-tax profit is forecast to improve from £2.1m to £3.5m.
Amryt (AMYT) says that sales of Lojuxta were higher than expected last year. The figure was €11.9m, against the forecast €10.5m. There is still €20.5m in the bank.
Futura Medical (FUM) announced positive pharmacokinetic results for higher doses of the MED2002 erectile dysfunction treatment. This will enable US phase III trials to start later this year. There is £8.36m in cash plus tax credits due.
TechFinancials Inc (TECH) says that Cedex Holdings, where it could acquire a majority interest, has launched its token pre-sale event. One Ethereum (equivalent to £437) will equal 900 CEDEX coins. The blockchain-based online diamonds exchange says that there is strong pre-sale demand.
Genedrive (GDR) has started to sell its Genedrive HCV ID kit in the EMEA region. Sales in Asia Pacific should start in the next few weeks.
Consumer security software provider Kape Technologies (KAPE) improved its pre-tax profit from $4.8m to $6.7m. There is net cash of $69.5m. A 2018 profit of $8.3m is forecast.
Trevor Brown gas cut his stake in Feedback (FDBK) from 11.5% to 9.75%. Lindsay Melvin has taken on the role of finance director.
MAIN MARKET
Advanced foams supplier Zotefoams (ZTF) continues to benefit from investment in capacity and there is more to come. There was growth from all divisions and a good spread of revenues from different sectors. In 2017, revenues were 22% higher at £70.2m, while underlying earnings per share were 14% ahead at 16.6p. The dividend is 3% higher at 5.93p a share. The partnership with Nike to develop footwear technology and supply materials is yet to make a significant contribution.
BATM Advanced Communications (BVC) returned to profit last year and both its telecoms and biomedical divisions have good growth prospects. There is $24m in cash in the bank.
Sportech (SPO) has ended its formal sales process because no suitable offers were received. Trading has been poor and there will be asset write-offs in the 2017 figures. Andrew Gaughan has been appointed as chief executive.
Flying Brands Ltd (FBDU) has acquired Imaging Biometrics for $68,134 in cash and 11 million shares at 4p each, plus $75,000 to cover debt obligations. The final 6.2 million of these shares will be paid by the end of September 2018. The Wisconsin-based company has been managing the CE marking and FDA clearance process for Flying Brands’ StoneChecker visualisation software, as well as commercialising perfusion software IB Neuro, which provides additional information about tumours.
World Trade Systems (WTS) has submitted its application to the International Stock Exchange.
Hemogenyx Pharma (HEMO) announced a collaboration that will generate $250,000 for the blood stem cell-based treatments developer. The partner is a US-based leader in the field of blood cancer treatment and the deal involves the development of a type of humanised mice.
Andrew Hore