Home » Posts tagged 'proc'
Tag Archives: proc
Quoted Micro 21 October 2024
AQUIS STOCK EXCHANGE
ProBiotix Health (PBX) has sent out a circular for the requisitioned general meeting on 1 November. The meeting has been requisitioned by Seneca Partners and related investors that hold 5.46% in total. Seneca Partners is also an investor in AIM-quoted OptiBiotix Health (LON: OPTI), which is also unhappy with the current management, but a relationship agreement means that it could not requisition a general meeting. OptiBiotix Health and related individuals own 37.95% and will vote in favour of the resolutions. ProBiotix Health wants to block these shares from being voted. The first resolution is to remove the chief executive Steen Andersen and the second is to remove non-exec Frederik Bruhn-Petersen, whose firm recently subscribed for shares, a funding that OptiBiotix Health was unhappy about. Seneca Partners and OptiBiotix Health are also unhappy that the chief executive wanted to leave the Aquis Stock Exchange.
Marula Mining (MARU) is finalising negotiations to establish a new joint venture with a Chinese battery manufacturer and lithium offtake partner at the Blesburg lithium and tantalum mine. This would be for a lithium acid leaching processing plant, which could be commissioned by next summer. This will use spodumene from the mine and could produce 2,000 tonnes of high-grade lithium product each year. A subscription of £750,000, which comes through the issue of 15 million shares at 5p each via the AUO Commercial Brokerage LLC subscription agreement, will be used to fund the installation of an ore sorter at Blesburg and the costs of other projects. Gathoni Muchai Investments, where Marula Mining board member Jason Brewer is a director, bought 430,000 shares at 5.96p each.
At the end of the three months to September 2024, Arbuthnot Banking (ARBB) customer deposit balances were £3.8bn and customer loans £2.5bn. Funds under management and administration have grown 18% to more than £2bn in the nine months to September 2024. Arbuthnot Banking has completed its move to new offices in the City of London. Management is assessing the proposed new capital rules and deciding if strategy changes will be required. The Budget could also affect strategy.
Substrate Artificial Intelligence (SAI) intends to leave the Aquis Stock Exchange, although it will remain on the BME growth market in Spain. The cancellation of trading on Aquis will happen on 15 November.
Invinity Energy Systems (IES) is extending the expiry date of the 8.67 million options, exercisable at 175p/share, held by Gamesa Electric to 10 May 2025. Employee share options will be extended until 21 November 2029.
Mendell Helium (MDH) has agreed to sell its plant-based health and wellness business to Orsus Therapeutics, which will leave the seller with a 28% stake plus six million warrants in the buyer. This is conditional on shareholder approval. The Orsus Therapeutics shares may be distributed to Mendell Helium shareholders. Mendell Helium has an option to acquire Kansas-focused M3 Helium.
Inqo Investments (INQO) has made an investment in Empower Clean Cooking. Uganda-based Empower produces biomass pellets for cooking fuel.
Vehicle electrification technology developer Equipmake (EQIP) is supplying its zero emission drivetrain for use in Textron Safeaero 220 airside de-icing vehicles. There were successful trials earlier in the year.
Former Made Tech (MTEC) finance director Deborah Lovegrove has taken on the same role at All Things Considered (ATC).
AIM
Pulsar Helium Inc (PLSR) shares were already trading on TSX-V and the OTCQB Venture Market and the additional cash raised by coming to AIM on 18 October and raising £3.875m at 25p/share. This will fund further exploration in of the Topaz helium project in northern Minnesota, close to the Canadian border. So far, an appraisal well has been drilled and this confirmed the presence of helium. This will be drilled deeper. There were 1.47 million shares traded on the first day. Having opened on 29p the shares closed the day at 27.5p.
Mothercare (MTC) shares returned from suspension following the 2023-24 results publication and refinancing. There is a new £8m two-year loan facility from Gordon Brothers, which receives 43.4 million warrants exercisable at 8.5p/share. There is also a joint venture with Reliance Brands, which will acquire 51% for £16m, covering the Indian sub-continent. In the year to March 2024, underlying pre-tax profit dipped from £3.4m to £3.1m. Overall revenues continue to decline, and Cavendish expects a small loss this year.
Joshua Alliance is offering 40p/share in cash for each share in N Brown Group (BWNG). The share price has not been this high since February 2023. The Alliance family and related parties already own 53.4% of N Brown. The bid values the fashion brands company at £191m. The chief executive and finance director of N Brown will elect for a share alternative.
Motor dealer Vertu Motors (VTU) had a strong September sales period, and it continues to outperform the sector, particularly in electric vehicle sales. Strong aftersales business and a stabilised second hand car market means that the outlook is positive. In the six months to August 2024, revenues were 3% ahead at £2.49bn. Full year revenues are expected to be flat and pre-tax profit slightly higher at £38m. NAV of 112.8p/share is forecast. A further £3m share buy back is planned.
Weak interior design markets, particularly in the UK, hit interim the figures of Sanderson Design Group (SDG). The timing of licensing revenues exacerbated the downturn in underlying pre-tax profit from £6.8m to £2.2m. The dividend has been reduced by one-third to 0.5p/share. Net cash fell to £9.6m at the end of July 2024.Trading continues to weaken with a 10% downturn in revenues so far in this financial year. The aftermath of the UK Budget and the US election could determine the full year outcome. Investec has reduced its pre-tax profit forecast by 8% to £7.5m, down from £12.2m last year.
Digital mental health services provider Kooth (KOO) says the State of Pennsylvania has terminated its contract with the AIM company. The contract started on 11 October 2022 and the end date was extended from June 2024 to June 2025. However, there is a right to terminate with a 30-day notice period. Kooth says that it was negotiating a new contract, and it is unsure what the status of ongoing work will be. When it was announced, the contract was said to be worth $3m in its pilot year.
Approval for further development of the Wressle field in Lincolnshire has been revoked, because of a legal challenge that greenhouse gas emissions were not taken into account in the original decision. Union Jack Oil (UJO) has a 40% interest in the Wressle development and Europa Oil & Gas (EOG) owns 30%. A revised application for Wressle can be made with additional data on emissions. The existing production continues.
Executive search company Norman Broadbent (NBB) says third quarter revenues are 16% lower than last year at £2.7m. Even so, it was the strongest quarter of the year. September was particularly strong.
CloudCoCo (CLCO) is selling its managed IT services business for £9.2m. This will discharge liabilities, including the MXC loan notes, and leave cash of £950,000. If the sale does not go ahead management will need to consider if there is a future for the group. There are also discussions concerning the sale of the Connect business. The focus will be on the product reseller business.
Decision making software provider ActiveOps (AOM) grew first half revenues by 9% to £14.3m. Annualised recurring revenues are £26.2m. Net revenue retention is 1085. There is cash of £13.4m. Demand is being driven by organisations needing to reduce the cost base. Investment in sales will pay off next year.
Iodine supplier Iofina (IOF) is on course to meet iodine production guidance for this year. There was 163.9 metric tonnes produced in the third quarter. Iodine prices have been higher than in the first half when they were $66.84/kg.
Armadale Capital (ACP) proposes a cancellation of the AIM quotation because it believes that being public does not benefit the company because of the costs. Armadale Capital needs to reduce the cash burn and sell non-core assets. The resources company can be more flexible as a private company. A general meeting will be held on 1 November.
Emmerson (EML) says that the regional authority in Morocco have made an unfavourable environmental recommendation relating to the Khemisset potash project. The full decision is not yet available. Emmerson had previously appealed against the regional authority’s decision not to approve the project under environmental grounds.
MAIN MARKET
Online travel hostel agency Hostelworld (HSW) has moved into a net cash position and trading is in line with expectations even though there has been a small fall in revenues in the nine months to September 2024 due to lower average booking values. Direct marketing costs are down from 51% of revenues to 46%, while operating costs are also lower. Four-fifths of bookings are from social media. Capital allocation policy is being assessed.
Kitchenware retailer ProCook Group (PROC) says second quarter trading shows it is outperforming the market. Interim revenues are 8% ahead at £28.3m with like-for-like revenues 4% higher. The fastest growth is in ecommerce, helped by the relaunch on Amazon, but retail is also recovering. Higher inventory levels meant that net debt has moved up to £4.2m.
Property investor Town Centre Securities (TOWN) is no longer a REIT. That means that there is more flexibility for the business. EPRA net tangible assets slipped 2.5% to 277p/share at the end of June 2024. The loan to value ratio is 50.8%. The final dividend is 2.5p/share.
The space sector is attracting more investment and Seraphim Space Investment Trust (SSIT) will benefit. In the year to June 2024, the NAV improved from 92.9p/share to 96.2p/share, helped by share buy backs. Many of the investment portfolio are reaching maturity and Astroscale has floated on the Tokyo Stock Exchange.
Shell company Dukemount Capital (DKE) has raised £98,500 from a share issue at 0.025p/share and £51,500 from convertible loan notes with the same conversion price. Loans were previously converted into shares and £300,000 was raised earlier in the year at 0.04p/share. Th outstanding warrants are being repriced to 0.0375p. Richard Edwards has joined the board, and he owns one-quarter of the company.
Andrew Hore
Quoted Micro 1 July 2024
AQUIS STOCK EXCHANGE
Voyager Life (VOY) has entered into an option to acquire M3 Helium Corp, which is a Kansas-based helium producer, for 57.6 million shares. Production is from one well and four other wells are being tested. There is also a processing plant. Voyager Life has raised £864,000 at 3p/share to finance the development of operations and fund the readmission document. M3 Helium is loss-making.
Ananda Developments (ANA) announced promising results from cardiac fibrosis studies with CBD-based therapy MRX1. It has potential as a treatment for heart failure with preserved ejection fraction. It mitigates cardiac fibrosis and improves heart health. Next steps are being assessed.
Tennyson Securities has published initial research on Good Life Plus (GDLF) the prize-based draw lottery. Investment in the business means that it will continue to lose money for the next two years before moving into profit in 2026-27 when earnings of 0.7p/share are forecast. The 12-month target price is 4.24p/share.
Time to ACT (TTA) subsidiary GreenSpur has received an award of £613,000 from the EU BEETHOVEN project for the development of advanced magnetic materials. This will be used for development of the rare earth-free magnet.
Valereum (VLRM) reported a reduction in loss from £4.25m to £353,000. There was a swing from net liabilities of £758,000 to net assets of £351,000 following an increase in the value of the investment in Vinanz (BTC). That was partly offset by an impairment charge on the GSX investment.
Brewer Adnams (ADB) expects to conclude its evaluation of future funding later in the summer.
Housebuilder St Mark Homes (SMAP) reported an increase in loss from £1.47m to £2.93m. Directors are halving their remuneration from the beginning of July. Because of the weakened financial position, the board will ask shareholders at the AGM to agree to the departure from the Aquis Stock Exchange.
Food company Essentially Group (ESSN) lost £960,000 on revenues of £1.59m in the 16 months to the end of 2023. There was £301,000 in the bank at the end of the year.
Ormonde Mining (ORM) had net assets of €10.5m at the end of 2023, including €2.3m in cash. Management is evaluating investment opportunities.
Wishbone Gold (WSBN) reported an increase in cash outflow from operations from £787,000 to £1.62m. Cash fell below £6,000 at the end of 2023. A share issue at 1.2p/share and exercise of warrants raised £550,000 this year.
Phoenix Digital Assets (PNIX) made a pre-tax profit of £20.1m in 2023 following a fair value gain of £25.3m. This is prior to the recent tender offer.
Marula Mining (MARU) believes that the Blesburg lithium and tantalum mine will generate positive cash flow in the second half of 2024. The company has confirmed delivery of manganese ore from the Larisoro manganese mine and they will increase in the second half.
SuperSeed Capital (WWW) has issued 100,000 investor warrants exercisable at 120p/share to VSA Capital. The convertible loan notes will be redeemable on 21 June 2026 instead of September 2024.
Invinity Energy Systems (IES) increased revenues from £2.94m to £22m in 2023. The loss rose from £18.5m to £23.2m.
KR1 (KR1) had net assets of 106.3p/share at the end of May 2024.
Startup Giants (SUG) left Aquis on 27 June.
AIM
PI Industries has launched a 9p/share bid for Plant Health Care (PHC) and this is recommended by the board. The bid values the natural crop enhancement products company at £32.8m. PI is involved in all areas of the agricultural inputs sector in India, and it would be able to provide the finance and distribution to grow the Plant Health Care operations. PI wants to expand into areas such as the US and Brazil where Plant Health Care is already active.
Pubs and bars operator Nightcap (NGHT) has decided to cancel the AIM quotation because of the weak share price and the difficulty to raise additional funds. Trading is challenging and this is expected to continue for the rest of the year. EBITDA for the year to June 2024 is below expectations. Integrating The Piano Works has been more costly than anticipated. A general meeting will be held on 17 July but there is already sufficient support to pass the resolution to leave AIM. The quotation is likely to be cancelled on 29 July. A matched bargain facility will be provided by Asset Match.
Renewables investment company I(X) Net Zero (IX.) also plans to cancel its AIM quotation. The share price has slumped since joining AIM, partly because of the timing. Renewables businesses were in favour, but there was a subsequent change in investor sentiment to companies that were not profitable. There has also been a lack of liquidity in the shares. Cash is flowing out of the company and more funds are likely to be required. There were $81.1m of unrealised gains in 2023, mainly due to a rise in valuation for WasteFuel after an investment by BP. NAV is $122.2m. There are plans to obtain a matched bargain facility though JP Jenkins.
Musical instruments retailer Gear4Music (G4M) reported full year figures in line with the recent trading statement. Revenues were 1% higher at £83.1m, while the company returned to profit. Founder Andrew Wass will focus on growth strategy and Gareth Bevan will take over as chief executive. The new strategy involves continued investment in the platform, enhancing the product range and diversifying channels to market. This year, pre-tax profit is expected to improve from £1.1m to £2.8m.
Renewable energy company SIMEC Atlantis Energy (SAE) generated cash in 2023 due the sale of the Uskmouth energy storage project and ongoing revenues from MeyGen tidal project. Net debt was reduced from £54.1m to £50.6m, with the majority of debt in the MeyGen project, which is set to be expanded. Core company debt was £13.7m, before the subsequent receipt of £7m from a land sale. This puts the company in a strong position make further energy storage project investments.
Giftware and stationery manufacturer IG Design (IGR) continues to improve margins. Revenues declined 11% to $00m, while pre-tax profit increased from $9.2m to $25.9m. The decline was in North America. Lower margin business was not continued, and progress was made despite the economic conditions. Net cash was $95.2m. The company is stopping manufacturing in China.
AIM-quoted investment company Braveheart Investment (BRH) increased its stake in thermal insulation and acoustic material manufacturer Autins Group (AUTG) from 26% to nearly 27%. Autins interim revenues improved slightly to £11.7m and cost savings reduced the loss, but it was still £466,000. Second half sales are likely to decline in the UK because of changes in customer order mix and there is a halt in production at a European EV manufacturer. Flooring sales are weak.
Battery technology developer Gelion (GELN) has signed a joint development agreement with natural resources company Glencore International. The two companies will assess the suitability of Gelion technologies for use in Glencore’s stationary or mobile applications and pilot any opportunities. There will also be an assessment of strategic supply of materials to Gelion and future recycling.
Sanderson Design (SDG) is still finding the UK consumer market tough. Brand revenues have declined, and UK sales are 14% lower in the initial five months of the financial year. Manufacturing revenues are flat. Singers has downgraded its 2024-25 pre-tax profit forecast from £12m to £7.8m, which is not much higher than the figure for 2020-21. Net cash could fall to £10m.
Duke Capital (DUKE) says some investee companies have not been paying the expected amounts to the company. This has led to a decline in valuations of investments in the balance sheet. This is particularly the consumer-related investments. Total cash revenues were £30.3m in the year to March 2024, helped by three exits from investments. However, the fourth quarter recurring cash revenues fell to £5.8m, from £6.3m in the previous quarter. NAV is 39.8p/share.
Cosmetics supplier Warpaint London (W7L) expects interim revenues to be £46m, up 26%. First quarter revenues were 28% higher. There is a second half weighting to trading and new customers have been added. Freight costs are rising.
Nasdaq has sent two written notices to Renalytix (RENX) because the ADS price has fallen below $1 for at least 30 consecutive days. It is also below the minimum market valuation of $50m. Renalytix will appeal the determination that trading in the ADSs will be suspended on 2 July and they will subsequently be kicked off Nasdaq. Management will present a plan to become compliant again.
R and Q Insurance Holdings (RQIH) has sold Accredited to Onex Partners for $420m. Prior to that Inceptum was sold for £11.25m. Teneo has been appointed as provisional liquidator of R and Q.
Live Company Group (LVCG) is continuing discussions with a cornerstone investor to provide cash required because of the shortfall at the Brick Live division. A KPOP event in Germany is being promoted alongside the cornerstone investor. The 2023 accounts will not be published by the end of June, so trading in the shares will be suspended 1 July.
Secure payments technology developer PCI-Pal (PCIP) has settled all its patent litigation with Sycurio in the UK and US. The settlement is confidential.
MAIN MARKET
Kitchenware retailer ProCook Group (PROC) has returned to profit. In the year to March 2024, revenues were flat at £62.6m, while a loss of £200,000 was turned into a pre-tax profit of £1m. The number of active customers increased from 991,000 to 1.05 million. Net debt was reduced £700,000. Like-for-like sales are 3.5% ahead in the latest quarter.
Harworth Group (HWG) is raising £106m from the sale of land at Skelton Grange, which is more than double book value.
IT services provider Triad (TRD) fell into loss in the year to March 2024. Staff were retained ahead of securing work for them. Cash fell to £2.1m. The total dividend was maintained at 6p/share.
Andrew Hore
Quoted Micro 18 December 2023
AQUIS STOCK EXCHANGE
Flex Labs Inc (FLEX) joined the Access segment on 15 December. The Canada-registered company is developing AI middleware for natural language processing text generators. There is no product yet. The introduction price was 3p, which valued Flex Labs at £3.42m. The share price ended the week at 6p.
Investment Evolution Credit (IEC) joined the Access segment on 14 December and raised £508,000 at 20p/share, valuing the online consumer loans company at £2.99m. The company currently focuses on the US but plans to move into the UK. In the US, Mr Amazing Loans offers loans of between $2,000 and $10,000 with interest rates of between 19.9% and 29.9%. Approvals are required to start offering loans in the UK. The core business is loss-making. The share price ended the week at 6p.
Shares in Semper Fortis Esport (SEMP) rose as shareholders agreed to the acquisition of Good Life + and the subsequent reverse takeover that occurs on 18 December.
Yooma Wellness Inc (YOOM) left Aquis on 15 December. The company has been put into voluntary liquidation.
China-focused eCommerce company Samarkand (SMK) reported a 1% dip in interim revenues of £8.1m, while the loss was reduced. There was growth in sales outside of China. Revenues from own brands rose 18%. VSA has downgraded its expectations for the full year because the recovery has not gained the anticipated momentum. Cost savings are helping to reduce the loss. The full year loss is still expected to fall from £4.7m to £3.8m. Samarkand could move near to breakeven next year.
Business assurance provider Adsure Services (ADS) generated revenues of £4.25m in the six months to September, which was prior to joining Aquis. There was an interim loss, but last year the second half was highly profitable. There are plans to diversify the customer base.
Retail carbon trading company Ora Technology (ORA) did not generate revenues in the period to July 2023. There was £1m in the bank at the end of July 2023.
In November, Guanajuato Silver (GSVR) increased month-on-month silver production by 23% to 295,284 ounces equivalent. The production improvement is set to continue into next year.
Marula Mining (MARU) is involved with local partners in applications for graphite mining licences at the Nyorinyori graphite project and the NyoriGreen graphite project in Tanzania. New processing equipment has been installed at the Blesberg lithium and tantalum mine.
Wishbone Gold (LON: WSBN) says visual inspection of core from recent drilling at the Cottesloe project in Western Australia show zones containing base metals while x-ray fluorescence scanning shows elevated base metals readings. Assay results will make things clearer.
Newbury Racecourse (NYR) has appointed Shaun Hinds to replace Julian Thick as chief executive.
IamFire is raising £1m at 1.5p/share and it has changed its name to WeCap (WCAP).
EPE Special Opportunities (EO.P) had net assets of 300.48p/share at the end of November 2023.
Marallo Holding Inc has acquired 1.75 million shares in NFT Investments (NFT) for a total cost of £47,375. Michael Heald has increased his stake in brewer Adnams (ADB) from 21.4% to 23.5%. Oscillate (MUSH) non-exec John Treacy has bought an initial 880,000 shares at 0.54p each.
AIM
Recruitment firm Impellam (IPEL) has finally agreed a takeover offer after months of being in a bid situation. HeadFirst is offering 557.2p/share in cash and 392.8p/shares in loan notes for each Impellam share. Shareholders will also receive the 55.9p/share dividend announced, plus a further cash dividend of 22.4p/share and a in specie dividend of 56.1p/share. This all adds up to 1,084.4p/share and values Impellam at £483.2m. The non-convertible loan notes offer annual interest of 17% and last an initial 3 years. The convertibles have annual interest of 12% and the total loan amount can be converted into 20% of the bid vehicle.
Venue management software supplier Skedda Inc has proposed an 82p/share offer to SmartSpace Software (SMRT) valuing it at £25m. The share price has not been that high since 2021 and it jumped 103% to 70p, still well short of the bid level. JO Hambro, which owns 8.3% of the software developer, is supportive of the offer. Skedda believes that it can provide the financial backing that SmartSpace Software requires. The SmartSpace Software board is considering the offer. The company is currently loss-making.
Dispute resolution services provider Driver Group (DRV) moved back into profit in the year to September 2023, mainly due to higher gross margins. The £1.1m pre-tax profit was still lower than the £2m reported for 2020-21. The cost base has been reduced and additional projects have been won. Net cash is £5.8m. The final dividend is 0.75p/share and management says that there is around £1m of surplus capital that can be used for share buy backs. The core businesses will be rebranded Diales and there are plans to move into other sectors, such as aerospace and IT.
Defence and forgings company MS International (MSI) more than doubled interim pre-tax profit from £3.46m to £7.72m. Revenues improved from £42m to £57m. The defence business returned to profit and generated all the revenue growth. That offset lower contributions from other divisions. Net cash is £50m. There are £57.5m of contract liabilities on long-term contracts and NAV is £43.4m. Deliveries for US navy contracts begin in the second half.
Shore Capital has reduced its 2024 and 2025 forecasts for pawnbroker H&T (HAT). The pledge book is growing faster than expected and an additional £10m of funding was recently secured. That additional profit is offset by increased wage costs following the raising of the National Minimum Wage. There will also be higher interest costs. The dividend is likely to grow by a lower percentage than previously anticipated. The 2024 revenues have been edged up to £261m, while pre-tax profit is reduced from £36.7m to £39.7m. A higher tax rate means that there will be a 10% drop in earnings estimates to 62.8p/share.
There is a continued decline in the share price of energy and water efficiency company Eneraqua Technologies (ETP) after the announcement that two local authorities are delaying spending. There is also a £900,000 exceptional charge relating to defective equipment. A loss of £6m is forecast for 2023-24.
Phase 3 trials of the grass allergy treatment developed by Allergy Therapeutics (AGY) show highly statistically significant reductions in symptoms compared with a placebo. There will be a meeting with the regulators in the first quarter of 2024.
Image Scan (IGE) returned to profit in the year to September 2023 as revenues were 50% ahead at £3m. A further improvement is expected this year. The order book is worth £650,000 with a pipeline of potential work that underpins further growth.
Former ITM Power (ITM) boss Dr Graham Cooley has acquired a 6.6% stake in Distil (DIS). This follows the drinks company’s £765,000 fundraising at 0.35p/share.
MAIN MARKET
RM (RM.) expects 2022-23 revenues from continuing operations to decline from £214.2m to £196m, which includes £19m (£33.6m) from Consortium, which is being closed. The educational technology provider expects to have a significant write-own relating to that business. Management is renegotiating lending facilities.
Kitchenware retailer ProCook Group (PROC) reported an underlying interim pre-tax loss was reduced from £2.8m to £2.2m. Revenues fell, but gross margins have improved, helped by lower freight charges. High street sales are growing, although online revenues have declined due to problems that have been sorted out. In the most recent eight weeks sales were 1.5% ahead
S and U (SUS) says net receivables have grown from £417m to £446m since the half-year end with the growth coming from the car finance and property bridging divisions. Management is cautious about prospects.
Andrew Hore
Quoted Micro 23 October 2023
AQUIS STOCK EXCHANGE
Healthy snack foods supplier S-Ventures (SVEN) plans to raise at least £2.5m to pay deferred consideration and provide working capital. The fundraising has been announced ahead of time so that more investors can become involved. In the year to September 2023, gross revenues improved from £8.6m to £16.9m, while net debt is £6.8m. The main growth came from an initial contribution by gluten-free products company Juvela and technology platform Market Rocket. S-Ventures was loss making and the level is likely to depend on impairment charges.
Arbuthnot Banking Group (ARBB) continues to benefit from higher interest rates. Customer deposits grew 7% to £3.5bn, while wealth management assets under management increased from £1.38bn to £1.43bn. The new London office at 20 Finsbury Circus has increased space by 45% to 75,000 square feet. This will increase annual costs by £5m and there will be dual costs until October 2024 when the existing office lease expires.
Technology marketing business Inteliqo Ltd (IQO) generated initial revenues of $558,000 in the year to September 2023 and it moved from a loss of $428,000 to a pre-tax profit of $185,000. There is $384,000 in the bank, after a cash inflow of $195,000. Inteliqo should continue to be profitable this year as it builds up sales of smart translation Ipedia earbuds and the Langaroo language app.
Aquis Exchange (AQX) chief executive Alasdair Haynes bought 10,000 shares at 325p each, while non-exec chairman Glenn Collinson acquired 7,500 shares at 326.5p.
Shepherd Neame (SHEP) director George Barnes bought 1,000 shares at 800p each. Premier Miton has taken a 5.05% stake in Global Connectivity (GCON). Oberon Investments (OBE) chief executive Simon McGivern has sold 11.6 million shares and Joanna McGivern sold 650,000 shares at 3.6p each. Chairman Mike Cuthbert bought 140,000 shares at 3.6p each and finance director Galin Ganchev acquired an initial 138,888 shares at 3.6p/share. Simon McGivern still has a 6.78% stake. Shepherd Neame (SHEP) director George Barnes bought 1,000 shares at 800p each. Premier Miton has taken a 5.05% stake in Global Connectivity (GCON). Andrew Offit has increased his stake in AQRU (AQRU) from 4.77% to 11.9%.
Tap Global Group (TAP) has appointed Tennyson Securities as its broker.
AIM
Shoe Zone (SHOE) has sparked another upgrade with its latest trading statement. The shoe retailer’s sales were slightly ahead of expectations and pre-tax profit will be at least £16m, which is 19% higher than forecast. Lower freight rates improved margins. The dividend estimate has been raised from 9p/share to 10.5p/share on the back of the profit growth. Zeus has increased its 2023-24 pre-tax profit forecast from £12.5m to £15.2m. To put this in perspective, one year ago Zeus forecast a 2022-23 pre-tax profit of £8.5m, not much more than 50% of the outcome. It would be wrong to expect similar upgrades this year, but it indicates that forecasts are generally conservative.
Gama Aviation (GMAA) is selling its Jet East business for $131m. Adjusting for debt and transaction costs the net amount is $100m, which is equivalent to 125p/share. That could allow a 55p/share dividend. The rest of the cash can be reinvested in the remaining aviation services businesses. Gama Aviation recently won air ambulance and offshore helicopter contracts.
CoStar Group Inc is bidding 110p/share for On The Market (OTMP), which values the property listings company at £99m. The February 2018 placing price was 165p. CoStar Group Inc says that On The Market provides a good entry point to the UK residential property market. The purchaser owns US-based Homes.com.
Litigation finance provider Manolete Partners (MANO) is benefiting from the UK government removing Covid-era protections against insolvency. In the six months to September 2023, the number of case investments jumped from 83 to 146. Bounce back loan cases separately increased from 83 to 179.
Craven House Capital (CRV) investee companies Garimon and Honeydog – it has 29.9% of each company – are planning to reverse into the Amigo Holdings shell on the Main Market. These are music streaming and digital publishing businesses.
eDrive systems developer Saietta (SED) shares returned from suspension on Thursday afternoon after it published results to the year to March 2023. There were problems with the accounting for the new agreements with Consolidated Metco Inc, which included an upfront payment of €3.3m and an inventory write-down of £2.1m. Revenues from continuing operations more than doubled to £4.8m, but the group loss was higher. Orders are in place to build up revenues. There was cash of £7.2m left at the end of March 2023, but by September this was down to £400,000. More cash will be required to finance the delivery of orders.
Fashion retailer Sosandar (SOS) has decided to reduce promotional and discounting activity on its website and open retail stores. There will be four shops by next spring. This will hold back short-term revenues but could accelerate progress in 2026-27. Singer has cut its full year revenues forecast by 19% to £46.8m. This means that having made a profit last year, this year Sosandar will be back to breakeven, and it will take two years to beat the £1.6m profit made last year.
Revolution Bars Group (RBG) reported full year figures broadly in line with expectations. The Peach Pubs business is trading well with like-for-like sales 14% ahead, but the Revolution bars have been hit be train strikes. Cavendish retained its flat 2023-24 pre-tax loss forecast of £2m, even though trading has been tough.
WH Ireland has produced its updated research for metallurgical coal producer Bens Creek Group (BEN) suggesting a move into profit this year. This year’s pre-tax profit forecast is slashed from £108m to £7.2m, with the following year’s estimate reduced from £96.2m to £33.4m. This is a scenario rather than a proper forecast. A 3.6 cents/share (3p) dividend is possible in 2024-25.
Cirata (CRTA), formerly known as WANdisco, is trading in line with expectations with bookings of $1.7m in the latest quarter. They are expected to be higher in the fourth quarter and the software company’s management is confident that the prospects are genuine. Cash should be at least $16m at the year end and Cirata could be cash breakeven in 2024.
R&Q Insurance Holdings (RQIH) is selling its program management business, and this should generate $300m of net proceeds. This will be used to pay down debt. The group chief executive and finance director will leave with the disposal.
ECR Minerals (ECR) has terminated its option to acquire the Hurricane project, following the changes in the board. Management does not believe the potential of the project warrants the acquisition cost.
Karelian Diamond Resources (KDR) is raising £250,000 at 2.5p/share and the cash will be used for exploration for nickel, copper, platinum group metals in Northern Ireland and diamonds in Finland. Peterhouse has been appointed as broker.
MAIN MARKET
Cadmium-free quantum dots developer Nanoco (NANO) has concluded its litigation with Samsung, and it has funds to move towards commercial production. The net litigation proceeds are $90m. The second tranche will be received next February. There are plans to return £33m-£40m (10p-12p/share) to shareholders after this. Contract terms are under discussion for the first commercial order, and they should conclude by the end of 2023. In the year to July 2023, revenues jumped from £2.5m to £5.6m with the main growth coming from recognising licence fees related to the Samsung litigation.
Apax Partners is bidding 110p/share for Kin & Carta (KCT), which is a 41% increase on the pre-bid share price. The share price has not been this high since March, but the bid is less than 50% of the 2023 high ahead of the February profit warning. The bid values Kin & Carta at £203m.
Online travel agency Hostelworld (HSW) increased full year guidance in its third quarter trading statement. Nine months revenues are 38% ahead at Euro75.2m. The EBITDA guidance range has been raised from Euro16.5m-Euro17m to Euro17.5m-Euro18m, up from Euro1.3m last year.
Property investor Town Centre Securities (TOWN) announced net tangible assets falling by 15% to 284p in the year to June 2023. It outperformed the benchmark property index. The greatest value declines in the portfolio related to car parks and offices. The loan-to-value has declined to 45.8% following disposals. The total dividend for the year is 5p/share.
Kitchenware retailer ProCook Group (PROC) says revenues fell 4% to £26.3m in the first half. This was helped by a good summer performance, but trading has been tougher in September and October.
Andrew Hore
Quoted Micro 24 April 2023
AQUIS STOCK EXCHANGE
Valereum (VLRM) has sold Bitcoin mining assets to Aquis new entrant Vinanz (BTC) in return for 27.3 million shares at 3p each. This gives Valereum a 23.5% stake in Vinanz, which plans to become a Bitcoin mining company with facilities operated by third parties in the US and Canada. The company will also consider mining other cryptocurrencies. The Vinanz share price ended the week at 3.5p. There was one trade of 30,000 shares at 3.26p a share.
E-commerce technology provider Samarkand (SMK) says 2022-23 revenues will be around £17m and the loss has been reduced. VSA forecasts a small positive EBITDA in 2023-24.
SulNOx Group (SNOX) says 2022-23 revenues more than quintupled to £203,000. There was £525,000 in cash at the end of March 2023.
Equipmake Holdings (EQIP) has agreed a partnership with H55 to develop electric aircraft technology. Switzerland-based H55 will use the company’s electric motors in its two-seater electric trainer for pilot training.
In the first three months of 2023, Guanajuato Silver (GSVR) reported record quarterly silver production of 938,000 ounces equivalent. VSA forecasts full year production of 4.7 million ounces of silver equivalent.
Goodbody Health Inc (GDBY) has decided to leave Aquis and the share price slumped 44.6% to 0.9p. It also reported a fall in full year revenues from £17.1m to £10m and an increased loss of £4.9m.
Tap Global Group (TAP) has increased revenues and users since reversing into an Aquis shell earlier this year. First quarter revenues were £1.2m, compared with £250,000 in the corresponding period last year. The regulated cryptocurrency app company increased users by 30% to 144,305.
Coinsilium Group (COIN) has raised £258,000 at 1.5p a share, with warrants attached that have an exercise price of 3p.
Chris Akers has raised his stake in Semper Fortis Esports (SEMP) from 4.57% to 19.5%. The share price jumped by one-fifth to 0.15p. The April 2021 floatation price was 1p. Chapel Down Group (CDGP) finance director Rob Smith bought 407,462 shares at an average price of 34.7p, taking his stake to two million shares. Hadron Capital, which was founded by Fenikso (FNK) non-exec director Marco D’Attanasio, has acquired 1.2 million shares at 0.6p each in Fenikso.
AIM
Sureserve (SUR) is recommending a bid from Cap10 4NetZero Bidco, which is a vehicle for private equity company Cap10 Partners. The 125p a share bid values Sureserve at £214m and that is the highest share price since the company floated as Lakehouse in 2015. Cap10 believes that taking the compliance and energy services provider company private will make it easier to focus on long-term goals.
Proton therapy cancer treatment developer Advanced Oncotherapy (AVO) announced a strategic review. A Nasdaq listing is being considered, which could involve selling the business to an existing Nasdaq company. There are no current discussions and cash is running out. Management hopes to obtain additional working capital by issuing more loan notes. That could extend the company’s cash until the end of May.
Pizza restaurants franchiser DP Poland (DPP) increased first quarter like-for-like sales in Poland by 19% and in Croatia by 16%. There are signs that food inflation is easing. However, additional investment in TV marketing will mean that the company will continue to lose money in 2023.
Business process outsourcing firm iEnergizer (IBPO) plans to cancel is AIM quotation and a general meeting will be held on 16 May to gain shareholder approval. As EICR (Cyprus) owns 82.7% that is a formality. The lack of free float has hampered liquidity and the costs of the quotation outweigh any benefits. Management expects to leave AIM on 26 May. There are plans for a matched bargain facility.
Unikmind has increased its bid for cyber security software provider Kape Technologies (KAPE) from 285p to 290p ($3.60) a share and some of the vendors of past acquisitions have agreed to accept.
Property bridging loans provider Vector Capital (VCAP) reported a slightly better than expected pre-tax profit for 2022. Management, though, is being cautious about lending this year. There was a £200,000 provision for doubtful debts, but the pre-tax profit was still £100,000 better than forecast at £2.8m. The total dividend is 2.53p a share. The average loan book was 27% higher than the previous year. This year the loan book could fall because of higher standards for new lending.
Woodbois (WBI) says that the lender to its Denmark-based Woodgroup timber trading subsidiary has given notice on a $6m lending facility. The facility provided by Sydbank is fully drawn, but there is also $3.1m in cash deposits with Sydbank, which wants a refinance plan by the end of May. Premier Miton subsequently sold its 9.96% stake.
Environmental and life sciences technology company DeepVerge (DVRG) says that revenues have been incorrectly recognised. That means that the 2022 figure will be 45%-50% lower than the £17.2m previously flagged. Some of the expected revenues have been delayed while others will not be recognised. The order book is more than £10m and this will be recognised in 2023 and 2024. There is £1m in the bank and more funding will be required.
Xeros Technology (XSG) is winning new business, but cash is declining. The 2022 figures were in line with expectations and cash was £6.5m. finnCap believes that the cash should last until the second quarter of 2024. That is despite the 2023 loss forecast being increased to £4.8m. The progress of the launch of a domestic washing machine using Xeros filtration technology by a partner has been slower than hoped. Breakeven could still be achieved late in 2024.
Dekel Agri-Vision (DKL) says that the quantity and quality of raw cashew nuts acquired for its new facility are in line with expectations and the pricing is better than anticipated. Average production rates have increased to 10 tonnes/day.
Tertiary Minerals (TYM) has commenced its latest exploration programme for the Lubuila copper project in Zambia following the ending of seasonal rains.
MAIN MARKET
Interim revenues at J Smart (Contractors) (SMJ) slumped from £5.16m to £2.12m, while pre-tax profit dived from £6.33m to £260,000, although the corresponding period included a £6.06m disposal gain. The interim dividend is 0.96p. Net assets are £123.7m, but this would have been lower if there had been a property revaluation at the end of the period.
Fourth quarter revenues for kitchenware retailer ProCook Group (PROC) were 10% lower than the same time last year, with high street sales flat – a new store was opened in Kingston-upon-Thames. There was a 65% increase on the previous quarter. Full year revenues were 10% lower at £62.3m and ProCook will breakeven.
Andrew Hore
Quoted Micro 24 October 2022
AQUIS STOCK EXCHANGE
Chapel Down Group (CDGP) had a bumper grape crop in terms of quality and yield. Chapel Down has 750 acres of vines and the harvest was more than 2,000 tonnes, up from 1,400 tonnes last year, with a particularly good crop for sparkling wines. The English sparkling wine market grew by 29% in 2021More than two million bottles of many types of wine can be made from the harvest. A further 38 acres of vines were planted this year with 118 acres planned. More land is being sought. Management wants to double the size of the business by 2026.
Property investor Ace Liberty & Stone (ALSP) launched an open offer to raise £4.56m at 25p a share, which is a big discount to the market price. The share price fell 25.8% to 47.5p. The open offer closes on 14 November and enables existing shareholders to finance the strategy to buy additional properties. Management believes that economic uncertainty will provide opportunities to acquire high yielding properties.
Ananda Developments (ANA) has changed the acquisition terms for the 50% not owned in DJT Plants. The purchase price has been cut from £7.3m to £3.2m, which is payable in shares at 0.925p a share giving the seller Anglia Salads 29.9% of the enlarged share capital. That is double the current share price. The chairman’s £2.3m loan to Ananda will be swapped for convertible loan notes and warrants. DJT is analysing its 2022 field trial crops to determine the amounts of cannabinoids and terpenes contained in the cannabis flowers. This will help the company to decide which cultivars to use. There are international growers interested in purchasing seeds from DJT.
Love Hemp (LIFE) says it will sell all LH Botanicals products and LH Botanicals Ltd, which is owned by Love Hemp chief executive Tony Calamita, does not sell these products and has never traded. An application has been filed to strike the company off the company register.
Hydrogen Utopia International (HUI) has secured a convertible loan facility with Conrad Griffiths, owner of 9.45% of the company. The €650,000 facility is interest free until the beginning of 2023 when the annual interest charge is 5%. The repayment date is 31 December 2025. The conversion price is 20p – based on the exchange rate of €1.14/£.
Invinity Energy Systems (IES) has secured the sales contract for a 10MWh VS3 flow battery system for a solar microgrid in southern California.
Goodbody Health Ltd (GDBY) has signed an agreement with Allied Pharmacies that will add 17 clinics to its network offering diagnostic testing and adds services such as ear wax micro suction.
SulNOx Group (SNOX) has signed up South Africa-based bus company Lowveld Bus Service, which will use SulNOxEco fuel conditioner in its fleet of more than 170 buses.
VVV Resources (LON: VVV) has appointed Jim Williams as an executive director. He was previously a chief executive of AIM-quoted Arian Silver Corporation, which is now known as Alien Metals (UFO). David Rigoll and Simon Clarke have left the board.
Chris Akers has upped his stake in Quetzal Capital (QTZ) from 22% to 23.4%. Investee company Tap Global has added GBPT stablecoin to its cryptocurrency trading platform.
Harry Hyman has increased his stake in Oberon Investments Group (OBE) from 3.08% to 4.15%. Phoenix Asset Management Partners has taken a 16.5% stake in Silverwood Brands (SLWD).
AIM
Semiconductors designer EnSilica (ENSI) generated more than 50% of its revenues from its design and supply division for the first time last year. Revenues increased from £8.61m to £15.3m with design and supply’s contribution jumping from £2.82m to £8.02m. This is down to contracts starting to move from the design to supply stage. A loss was turned into a pre-exceptional profit of £165,000. That is before R&D tax credits of £683,000. EnSilica capitalised £2.2m of development spending last year.
Latest new AIM admission Sondrel (SND) raised £20m at 55p a share and the price rose to 58p in early dealings. The semiconductor designer will spend the money on employing more engineers and accelerate sales. There are more than £300m of revenue opportunities for designing semiconductors. If selected, Sondrel can expect to supply the semiconductor for five years plus. The medium-term target revenues are in excess of £100m.
Revolution Bars (RBG) is acquiring Peach Pubs for £16.5m. Peach Pubs has 21 food-led pubs in the south of England and the Midlands. There should be £1.5m of cost savings from combining the businesses at a minimal cost, but they will not be fully achieved until 2024-25. finnCap has adjusted its 2022-23 forecast for Revolution Bars due to higher energy costs, so the earnings estimate has been reduced by 69% to 0.5p.
Affimer technology developer Avacta (AVCT) is acquiring in vitro diagnostics distributor Launch Diagnostics for £24m, plus up to £13m in performance related earn outs. This acquisition is part of the strategy to build up a European distribution business. Kent-based Launch Diagnostics is a profitable business that supplies diagnostic reagents and instrumentation for pathology applications. A placing at 95p a share will raise £7m and a three-for-365 open offer could raise up to £2m more. A £55m convertible bond issued at 95% of par could raise £52.5m and it is convertible at a 25% premium to the 95p a share placing price.
Gear4Music (G4M) edged up interim revenues by 2% with the growth coming from Europe and the rest of the world. The musical instruments retailer is upgrading its websites and trading is improving, although gross margins are lower.
Tatton Asset Management (TAM) generated inflows of £907m in the six months to September 2022. Assets under management have reached £11.3bn, with a further £1bn of assets under influence. There was an 11% improvement in earnings to 9.8p a share and the interim dividend 10% ahead at 4.4p a share. Inflows are expected to slow and full year expectations have been trimmed, but earnings should improve from 18.6p a share to 19.8p a share.
Logistics Development Group (LDG) has raised its stake in cakes maker Finsbury Food (FIF) from 4.4% to 6.77%. A further £4.17 has been invested at an average of 81p a share. The previous investment was at 69.5p a share, which was just above the low for 2022. Richard Griffiths increased his stake in Logistics Development Group from 7.04% to 8.71%. Logistics Development Group should have received more than £31m for its stake in CareTech.
Learning and development products and services provider Mind Gym (MIND) generated interim revenues 11% ahead at £26.8m with the majority coming from the US. Net cash is £4.5m. The interims will be published on 2 December. A full year pre-tax profit of £2.87m is forecast.
Advanced Oncotherapy (AVO) has raised £6m at 25p a share from Odey Asset Management. The subscription was at a 12% premium to the market price.
Mattress supplier eve Sleep (EVE) has appointed an administrator.
Anthony Laiker has left the Vela Technologies (VELA) board and sold his 6% stake. He was reappointed to the board in July having been a director between 2013 and 2020.
MAIN MARKET
Kitchenware retailer ProCook Group (PROC) says revenues continued to decline in the second quarter, but the rate slowed and there has been growth in early October. Freight costs are falling offsetting the change in exchange rates. Fackelmann Gmbh owns a 9% stake.
LED lighting and wiring accessories supplier Luceco (LUCE) says destocking has happened faster than expected, so the 2022 profit outcome will be lower than anticipated. Underlying operating profit is expected to be £20m-£22m in 2022. Net debt was £46.5m at the end of September 2022.
Carclo (CAR) says interim sales were ahead of the same period last year and slightly better than expectations. However, operating profit is slightly lower than previously. The life sciences division has grown even though two product launches were delayed. There was also increased demand from the aerospace sector.
Motor dealer Lookers (LOOK) outperformed the UK car market in the third quarter and pre-tax guidance has been increased to no less than £75m. Last year’s pre-tax profit was £90.7m, but that benefited from government assistance and a strong used vehicle market. However, a lack of available new cars to sell is holding back the performance of all motor dealers.
An administrator has been appointed to Toople (TOOP) after it failed to secure financing for a proposed acquisition.
Andrew Hore
Quoted Micro 11 July 2022
AQUIS STOCK EXCHANGE
Hargreaves Lansdown has added stocks in the Access segment of the Aquis Stock Exchange to its electronic trading platform.
Wine maker Chapel Down Group (CDGP) says interim revenues are in line with the same time last year due to the disappointing 2021 harvest. This year’s harvest should be better and full year revenues are expected to be higher. Price increases should help to improve margins. Net cash was £3.76m at the end of June 2022. Net assets are 19.5p a share. Five directors bought shares at between 19.6p and 19.9p a share.
Samarkand (SMK) says trading is in line with expectations in the year to March 2022. Revenues are estimated at £16.5m and the loss at £8.3m. There was £4m in the bank at the end of March 2022. Samarkand provides e-commerce technology and services to clients that wish to access the Chinese market. Trading has been hampered by Covid lockdowns. Management says that trading conditions are improving, although 2022-23 revenues are likely to be flat. Margins should improve.
Clean Invest Africa (CIA) says that clan coal business CoalTech has commenced commercial coal production in South Africa, and it will initially build up production to 3,500 tonnes/month. Production is expected to double in 2023. That could be enough to eventually generate annual net profit of $1.2m.
Ecotricity has increased its stake in Good Energy (GOOD) from 26.1% to 27.2%.
CBD products supplier Love Hemp Group (LIFE) is in discussions with a replacement corporate adviser so that the trading suspension of the shares can be ended. Executive chairman Andrew Male has moved to a non-exec role. Garry Cook has stepped down from the board and replaced by Anthony Dyer.
Invinity Energy Systems (IES) says that the world’s largest hybrid energy storage system, incorporating a 5 MWh Invinity Vanadium Flow battery, was launched at the Energy Superhub Oxford. Jonathan Marren has been appointed as chief development officer, having previously been a non-exec director.
Valereum (VLRM) reported an increased loss of £1.84m for 2021. There is still £1.43m in cash anies, v,ld net assets were £2.51m at the end of 2021.
Forbes Ventures (FOR) has decided that the litigation funding securitisation will not go ahead. Peter Moss, the director handling the deal, has resigned and Forbes Ventures is seeking to recover costs. A potential acquisition is being negotiated.
IamFire (FIRE) has an option to subscribe for up to £3.75m in convertible loan notes in WeShop Holdings Ltd. It paid £250,000 for this option. The conversion price is 100p a share. WeShop has launched its social network shopping platform, which offers shares with every purchase – initially 20% of the purchase price.
AQRU (AQRU) has appointed First Sentinel as corporate adviser and Tennyson Securities as broker. They replace Novum Securities. The decentralised finance-focused incubator has launched AQRU Trend, a high-return strategy optimised for cryptocurrencies designed for small investors to access competitive returns in the crypto market. It is available through the AQRU.io platform.
All Star Minerals has changed its name to Marula Mining (LON: MARU) and consolidated 100 shares into one new share.
Macaulay Capital expects to join Aquis on 22 July. It intends to originate and manage corporate transactions and invest its own funds, in shares and loan stock, along with other investors. Macaulay will earn an arrangement fee, an annual director fee for supplying a director to the investee company and an annual management fee of 2% a year for five years once third-party investors have been repaid their initial investment – payable by the investors. There is also a potential performance fee if returns are better than the threshold set.
Shore Capital has been appointed broker to Arbuthnot Banking (ARBB).
BWA Group (BWAP) has issued 3.35 million shares at 0.5p each in order to satisfy directors fees.
AIM
Immediate Acquisition acquired new bank Fiinu (BANK) for £37.5m in shares at 20p each, which is the same price as in the placing price that raised £8.01m. Pro forma net assets are £11.7m, including £11.2m in cash. Fiinu intends to invest £2.3m of the cash raised in further technology development and £6.6m will provide regulatory capital. Fiinu has developed the Plugin Overdraft, which provides customers with an overdraft facility without the requirement to switch banks. When someone applies for the overdraft via the Fiinu app they give permission for Fiinu to access their account details at their bank. Fiinu can then assess whether they meet the requirements for access to the Plugin Overdraft. Fiinu will take deposits on fixed-terms, and these will fund shorter term lending via the Plugin Overdraft.
In the year to March 2022, Mercia Asset Management (MERC) increased its NAV from 40p a share to 45.6p a share, thanks to valuation increases in some of its direct investments. The investment manager had Assets under management of £959.2m at the end of March 2022 and this has subsequently risen above £1bn following VCT fundraisings. The dividend has been raised from 0.3p a share to 0.5p a share. There is cash and short-term investments of £61.3m.
CML Microsystems (CML) improved full year revenues from £12.5m to £17m, underlying pre-tax profit doubled from £1.1m to £2.2m. The investment in technology development is starting to pay off with design wins for internet of things, 5G and satellite products. These design wins will be making significant contributions in two years. Net cash is £24.6m and the dividend was raised from 9p a share to 10.8p a share. A 2022-23 pre-tax profit of £2.5m is forecast with cost rises offset by increasing volumes.
Fashion retailer Quiz (QUIZ) reported a strong recovery in revenues from £39.7m to £78.4m and it moved back into profit last year. Revenues are still much lower than pre-pandemic levels, but the £800,000 pre-tax profit is similar to the level prior to Covid-19. There were £1m of government grants included in income in the year to March 2022. There was an operating cash inflow of £5.3m and net cash was £4.4m. There was a strong recovery in UK stores revenues, but online also grew. Price rises will help to maintain gross margin. First quarter sales are 62% ahead at £27.3m and there could be further improvement in profit this year as long as overheads are controlled.
Iodine producer Iofina (IOF) has secured debt funding for expanding capacity. There were 234 metric tonnes of iodine produced in the first half of 2022. Second half production should be between 255-275 MT. Iodine prices are higher than $70/kg.
Shares in parcel and freight delivery company DX (DX.) remain suspended, but it believes that its 2020-21 accounts and the corporate governance investigation could be finalised before the end of September. Trading remained strong in 2021-22 and net cash is £27m. That could provide scope for dividends or some other way of returning cash to shareholders.
D4T4 Solutions (D4T4) is paying a 12.5p a share special dividend following better than expected figures for the year to March 2022. The underlying pre-tax profit declined from £4.4m to £3.3m as a move towards a subscription model delayed revenue recognition. Annual recurring revenues were £14m by the end of the period.
Stripping out flotation related costs, 4Global (4GBL) made an operating profit before government grants. The sports data and analysis company increased revenues from £2.68m to £3.64m, which is around pre-Covid levels.
Cambium Global Timber (TREE) is holding a general meeting on 3 August to gain shareholder approval to cancel the AIM quotation and wind up the company. There is £5.47m in the bank and a further £1.5m of deferred consideration is due. Cost reductions will be made and there will be an initial distribution of 6.5p a share. There could be a second distribution of 1.5p a share.
MAIN MARKET
Kitchenware retailer ProCook Group (PROC) made a pre-tax profit of £9.5m on revenues of £69.1m last year. That was in line with downgraded expectations. The dividend is 0.9p a share. Like-for-like revenues have fallen by 16% so far this year, but there are short-term indications that the market could be improving. ProCook continues to win market share, but pre-tax profit is likely to be lower this year.
Spiritus Mundi (SPMU) is a cash shell seeking acquisitions in the clinical diagnostics sector and it has directors with experience in this area. A subscription raised £280,000 at 5p a share and along with previous share issues, this means that there is around £1m of cash available. Pro forma assetd are just over 2p a share.
Data integrity and control software provider Gresham Technologies (GHT) says interim revenues were 56% higher at £23.1m, including a full six-month contribution from Electra Information Systems, which was acquired in June 2021. Organic revenue growth was 19%. Clareti software annual recurring revenues are £25.9m. Net cash is £6.4m. The interims will be announced on 26 July.
Andrew Hore
Quoted Micro 27 June 2022
good,
AQUIS STOCK EXCHANGE
Resolutions 8-12 were not passed at the Good Energy (GOOD) AGM, which were mainly enabling the company to issue new shares or buy back existing shares. Resolution 12 would have amended the articles of association to permit hybrid meetings.
Cadence Minerals (KDNC) has agreed to sell its 30% working interest in the Yangibana project tenements for £5.1m in shares of the ASX-listed operator Hastings Technology Metals. Cadence reported an outflow of cash from operating activities of £751,000 in 2021, down from £1.36m the previous year.
Blockchain and cryptocurrency investor Coinsilium Group Ltd (COIN) increased 2021 revenues by 130% to £530,000. Net fair value loss on financial assets was £407,000, compared with a gain of £566,000, but realised gains increased from £199,000 to £1.52m. Overall pre-tax profit fell from £310,000 to £14,000. There is £1.51m in the bank at the end of 2021, while NAV is £5.84m. Coinsilium has entered a simple agreement for future tokens (SAFT) with potential Latin America- focused blockchain gaming hub GGs.io for $100,000 of its future tokens and is a strategic adviser.
Pluto Digital has repaid the loan, plus interest, of £5.18m owed to NFT Investments (NFT).
All Star Minerals (ASMO) is raising £200,000 at 0.02p a share and every two shares come with a warrant to subscribe for a share at 0.04p. The cash will be used to finance investment in the company’s exploration projects. A further share issue at 0.02p pays £102,000 owed to GMI, where the All Star Minerals chief executive is a substantial shareholder. Management says that it is planning a much bigger cash raise.
Gunsynd (GUN) has agreed binding heads of terms with Metals One to farm into the Black Schist nickel zinc copper cobalt projects in Finland. In return for £1m, Gunsynd will earn 25% of the company owning the projects.
In 2021, Startup Giants (SUG) moved from a loss of £188,000 to a profit of £44,000. Current trading is in line with expectations.
Gowin New Energy (GWIN) had cash of RMB2.33m at the end of 2021, but it also had net liabilities. There are plans to trade agarwood products.
Wishbone Gold (WSBN) says that drilling at the Halo project in north Queensland has discovered copper mineralisation in the majority of holes drilled. The 21 hole is apparently the most promising.
Western Selection (WESP) has taken advantage of the Northbridge Industrial Services share price rise to sell 35,500 shares at 200.87p a share. It retains a 3.86% stake in the loadbanks manufacturer and renter, which changed its name to Crestchic (LOAD) later in the week.
Bondholders have approved the plan by Eight Capital Partners (ECP) to modify the terms and conditions of its 7% bonds.
Vulcan Industries (VULC) has raised £74,000 at 1p a share and issued additional shares for the acquisition of Aftech Ltd.
The wife of DXS International (DXSP) chief executive David Immelman has acquired 845,000 shares at 10p each, taking their interests to 11.85%.
Mark Horrocks has increased his stake in Quetzal Capital (QTZ) from below 3% to 5.3%. Chris Akers has raised his shareholding in Oscillate (MUSH) from 11.4% to 12.45%. Dowgate Wealth has a 4.9% stake in Silverwood Brands (SLWD).
AIM
Springfield Properties (SPR) has acquired the housebuilding business of Mactaggart and Mickel Group for a total cost of £46.3m. The initial payment is £10.5m and the rest will be paid over the next five years as homes are built on the sites acquired and sold. This way the deal should be self-financing. Six existing sites are being acquired as part of the deal and eleven will transfer as more payments are made. These sites have a gross development value of £230m.
Springfield is also acquiring a timber frame factory as part of the deal. It already owns a timber frame factory and 90% of the homes it builds have timber frames. Springfield’s capacity will double to 2,000 timber frames a year, which is more than enough for existing building plans, so outside suppliers will not be required any more.
In the six months to March 2022, Team (TEAM) revenues improved from £610,000 to £999,000, although there was an increased loss. The wealth management and financial services company acquired financial adviser Omega Financial Services in the first half and bought investment consulting business Concentric after the period end. There are other acquisition opportunities. There are opportunities to win new clients, but weak markets are holding back growth. Executive chairman Mark Clubb bought 5,004 shares at 63.9p each.
Property investor and fund manager First Property (FPO) returned to profit last year. In the year to March 2022, revenues reduced from £12.1m to £8.65m. That was mainly down to the loss of rental income from the Gdynia property. Asset management fees edged up from £3.35m to £3.46m and performance related fees jumped from £40,000 to £578,000.
There was a reduction of £7.81m in the amount owed to ING Bank, relating to the Gdynia property, and this was taken as a gain. Last year, there was a £7m write down on the property. That is why a loss of £5.09m was turned into a £7.98m profit. First Property is set to sell its properties in Romania and its supermarket properties in Poland. That will reduce net debt, which was £17.2m at the end of March 2022.
Insolvency litigation funder Manolete Partners (MANO) expects that the rising level of insolvencies will provide additional potential cases. In the year to March 2022, revenues declined from £27.8m to £20.4m. The realised revenues fell more sharply from £24.4m to £15.2m, with the main reason behind this being the large case with realised revenues of £9.3m in the previous year. Unrealised revenues increased from £3.41m to £5.2m. Pre-tax profit fell from £6.99m to £4.51m. Cash generated from operations before tax and investment in cases increased from £2.79m to £4.42m, due to a small reduction working capital. Investment in cases moved up from £5.89m to £6.47m. Peel Hunt has reduced its pre-tax profit forecast for this year from £7m to £5m.
Restaurants operator Tasty (TAST) has repaid its £1.1m bank loan, leaving it with net cash of £8.6m. Annualised interest rate savings will be £57,000 and there was no early repayment penalty. There are plans to open five or six more restaurants this year.
Premier African Minerals (PREM) has signed a deal that can get the Zulu lithium project pilot plant up and running. The pilot plant has target annual production of 50,000-ton SC6 and there are binding heads of terms with Suzhou TA&A Ultra Clean Technology to take all of this production starting from the first quarter of 2023.
Shares in 4D Pharma (DDDD) declined 28.5% to 16.66p before trading was suspended ahead of administrators being appointed. 4d Pharma says Oxford Finance has demanded immediate repayment of the $13.86m it is owed. The company cannot afford this.
Paper and specialist fibres maker James Cropper (CRPR) reported a full year, underlying pre-tax profit of £4m. The paper making business is cyclical and it made an increased loss. The TFP Hydrogen division, which makes products for fuel cells, accounts for around 30% of revenues and its operating profit before group overheads increased from £6.48m to £8.68m. James Cropper has reinstated the dividend this year with a 7.5p a share final dividend taking the total to 10p a share.
Cancer diagnostics developer ANGLE (AGL) has signed another contract with its first large pharma services customer. The Parsortix system will be used to monitor patients with unresectable solid tumours in a new phase Ib dose escalation study using the pharma company’s drug in combination with immuno-oncology agents.
Provexis (PXS) has signed two agreements with DSM relating to Fruitflow, an ingredient that helps normal blood flow and circulation. DSM customers for Fruitflow will become direct customers of Provexis at the beginning of 2023. DSM will still receive a royalty on the gross profit of Fruitflow sales to customers it transfers to Provexis for four years. The deal means that, assuming like-for-like sales and margins, Provexis would make a higher net profit in 2023 and it would increase in subsequent years. There should also be new direct customers. Provexis is also partnering with DSM on a gut microbiome patent.
Investment management company Forward Partners (FWD) says that weak stockmarkets have hit the valuations of technology companies and thereby the valuations of its investments. This means that there is likely to be a mid-to-high teens percentage decline from the interim NAV of £108m.
Argentina-focused oil and gas company Phoenix Global Resources (PGR) says that it is in discussions with 84% shareholder Mercuria Energy Group concerning a cancellation of its AIM quotation and a cash offer to purchase shares from independent shareholders at 7.5p each.
Asia-focused investment company Jade Road Investments (JADE) is selling part of its stake in China-based wind turbine blade manufacturer Meize Energy Industries. It has a 7.2% stake and will receive $1.2m in cash in three tranches, leaving it with a 6.3% stake valued at $10m. The company has already received $400,000 with the rest due for payment in July and August.
Solid State (SOLI) has been awarded a contract by Transport for London for a new one person operation CCTV system for the Piccadilly line upgrade.
MAIN MARKET
Oil services provider Lamprell (LAM) has received a non-binding indicative cash offer from 25.1% shareholder Blofeld Investment Management. Lamprell requires funding of $75m over the next two months and that is making the board seriously consider the offer even though it is at a large discount to the previous closing price. Financing opportunities are being explored. An attempt to raise $150m via a share issue did not meet with approval by all the institutional shareholders.
Roquefort Therapeutics (ROQ) has announced its second acquisition in seven months. Cancer medicines company Oncogeni Ltd is being acquired for the issue of 50 million shares and there is a placing to raise £1.01m at 14p a share. Two pre-clinical families of innovative cell and RNA oncology medicines come with Oncogeni, as well as a laboratory facility in Stratford-upon-Avon
CYBA (CYBA) is changing its name to NARF Industries. Steve Bassi will become chief executive.
Fackelmann Gmbh has increased its stake in cookware retailer Procook (PROC) from 3.83% to 4.63%.
Slovenia-based Graft Polymer (GPL) has reached cash flow positive in its core business. New equipment has been ordered in order to double capacity.
OTHER MARKETS
Pacific Road Resources Fund II is making a 0.01p a share cash bid for former AIM company Firestone Diamonds (FDI), which values the company at £79,000. Pacific Road also owns all the Firestone bonds and hopes to restart production at the Liqhobong open cast diamond mine. Firestone originally joined AIM in August 1998 at 114p a share. Since 2020, the shares have been traded by JP Jenkins and the latest price is 0.2p. The bidder owns 30.4% with a further 4.25% owned by affiliated funds. Resource Capital, which owns 34.7%, intends to accept.
Andrew Hore
Quoted Micro 25 April 2022
AQUIS STOCK EXCHANGE
Gunsynd (GUN) had net assets of £5.99m at the end of January 2022. That includes £1.08m in cash. Investee company Low6 is still seeking a listing in Toronto via 1319735 BC Ltd. Mining investee company Charger Metals plans to start its maiden drilling programme at the Coates project in Western Australia. First Tin joined the Main Market after the period end.
Tectonic Gold (TTAU) has appointed Ian Bruce as exploration manager, and he will restart the drilling at Specimen Hill. A permit has been secured in the same area for Taree Fields, which was historically a high-grade copper mine. Deep Blue Minerals, where Tectonic owns 10%, raised $236,000 from diamond sales.
Lombard Capital (LCAP) has agreed in principle the sale of LCP Financial to SBS Group for £4.2m in shares and the repayment of a £370,000 intercompany loan. Lombard Capital will acquire Waste and Recycling Services before the sale is completed. Management will be seeking shareholder approval to leave Aquis.
ChallengerX (CXS) has signed a five-year agreement with The American Arena League for the use of the SaaS-based platform CXSports. This will help to promote the league and generate revenues.
Blockchain and open finance investor Coinsilium (COIN) has agreed to purchase $200,000 of YELLOW tokens for the Yellow Network, which is a cross chain overlay, financial information exchange and distributed infrastructure network.
Adam Pollock, who was previously head of corporate and institutional at WH Ireland, has become a director of Oberon Capital, the broking business of Oberon Investments Group (OBE).
Vulcan Industries (VULC) has raised £48,000 at 1.37p each.
All Star Minerals (ASMO) is changing its name to Marula Mining.
AIM
TV programmes producer Zinc Media (ZIN) lost on £2.61m on revenues of £17.5m in 2021. There is already £13m of booked revenues for 2022 and there is potential further business worth £35m that could be delivered this year. A greater proportion of the work being won is for series, rather than one-off programmes. Zinc Communicate, which produces non-broadcast content and podcasts, is becoming increasingly important. The timing of the orders is uncertain and not all the work will materialise, although £8m is at an advanced stage. This suggests that 2022 revenues should be much higher, and Zinc Media should become profitable and cash generative. Last year, the cash outflow from operations was £245,000. Net cash was £2.18m at the end of 2021.
Churchill China (CHH) is beating its rivals thanks to its capital expenditure and investment in marketing, and it has a better order book than normal for this time of year. In 2021, pre-tax profit bounced back from £800,000 to £6m as revenues recovered from £36.4m to £60.8m. The total dividend is £24p a share, while there is £19m in the bank. Churchill China has taken on more than 200 additional staff in the past year and they still require training. Last autumn, selling prices were raised by 12% and a 5% increase is planned for May. That will help to offset the cost rises. Pre-tax profit is expected to be between £8m and £8.8m this year.
Tungsten West (TUN) is reviewing development options for the Hemerden mine because of rising costs. This will lead to a two-month delay. This could lead to a focus on sodium tungstate production because it is higher value than ammonium paratungstate.
Solid State (SOLI) continues to best expectations. Revenues for the year to March 2022 will be around 6% ahead of previous expectations at £85m, while there is a 11% upgrade in pre-tax profit to £7.4m.
Seeing Machines (LSE: SEE) has secured a collaboration with Magna to develop and demonstration model driver monitoring system (DMS) combining, camera, electronics and interior mirror technology. This should help Seeing Machines win more market share.
Plant-based polymers developer Itaconix (ITX) says volumes continue to increase, particularly in the dishwashing detergent ingredients market.
Coral Products (CRU) is trading ahead of expectations in the year to April 2022 and there is a second interim dividend of 0.4p a share. There could also be a final dividend to add to this year’s total of 0.9p a share.
MAIN MARKET
Nuclear-related business has helped structural steel supplier Severfield (SFR) to enjoy record orders. Logistics, infrastructure and data centres are other areas of high demand. Longer-term, battery manufacturing plants could be another booming area. The current order book is worth £479m. The 2021-22 figures will be in line with expectations with pre-tax profit forecast to improve from £24.3m to £28.1m. This year’s revenues should be better than previously expected, but profit expectations have been maintained because of higher steel costs. The higher steel prices mean that higher working capital is required.
Full year profit of kitchenware retailer ProCook Group (PROC) will be slightly lower than expected at £9.5m. ProCook has grown revenues in a market that is slightly down
J Smart Contractors (SMJ) reported a decline in interim revenues from £5.75m to £5.16m, while pre-tax profit jumped from £890,000 to £6.35m, although that was due to a gain on the sale of investment properties of £6.06m. It is unlikely that full year profit will be higher this year. Net assets are £117.2m, including £76.2m of investment properties and net cash of £27.6m. The interim dividend is 0.96p a share and the ex-dividend date is 5 May.
Andrew Hore
Quoted Micro 15 November 2021
AQUIS STOCK EXCHANGE
Brewer and pubs operator Shepherd Neame (SHEP) is starting to recover from lockdowns. Pubs started to reopen outdoors on 12 April, while indoor trading recommenced on 17 May. From that point pubs achieved 97% of 2019 trading levels. Since June, drinks sales have been down on the 2019 level, but food and room revenues were higher. In the year to 26 June 2021, revenues fell from £118.2m to £86.9m with both periods hampered by Covid-19 lockdowns. There was a swing from a pre-tax profit of £1.5m to a loss of £4.2m. A revaluation of licenced pubs shows a surplus over book value of £35.9m, which is a 13% uplift not reflected in the NAV of 1140p a share.
Silverwood Brands (SLWD) is a shell focused on food and lifestyle acquisitions. It raised £1.03m at 40p a share. The share price ended the week at 43.75p. NAV is 35p a share. The strategy is to build up a portfolio of consumer brands. The cash raised in the flotation and prior to the admission will help to identify targets and carry out due diligence. Directors Andrew Gerrie and Andrew Tone were both involved in building up the Lush handmade cosmetics business.
In the first quarter National Milk Records (NMRP) revenues increased by 8% to £5.72m. There was a small decline in revenues for testing for Johne’s disease, while the core milk testing business increased revenues, although the comparatives were for a weak period when lockdown was ending. The launch of genomic services under the GeneEze brand is planned for this winter. UK milk prices are exceeding 40p a litre, although the costs for farmers are increasing.
SulNOx Group (SNOX) has 600 potential customers and 130 trials proposed or underway. This includes vehicle and marine clients for the fuel emulsification additive.
Pharma C Investments (PCIL) has made its first cannabis-related investment in Product Earth Expo UK, which runs an annual CBD trade show in Coventry. A £275,000 investment gives Pharma C a 7.5% stake. Product Earth also offers a digital marketing service. Tom Toumazis, the former boss of European newspapers publisher Mecom, is chairman of Product Earth and Pharma C investment strategy director Gavin Sathianathan is also a director. At the end of October, Pharma C had cash of £608,000.
Sativa Wellness Inc (SWEL) increased revenues in the nine months to September 2021 by 724% to £9.88m. This enabled Sativa to move into profit, although it is a modest one. Trading has been boosted by demand for Covid tests and the range of tests is being broadened.
Rutherford Health (RUTH) is partnering with BUPA, which will open clinics within the company’s sites and refer patients if they have symptoms of cancer. The first clinic will be opened at Rutherford’s Liverpool cancer centre and the second in Northumberland.
Spirits company Rogue Baron (SHNJ) has raised £200,000 at 7p a share, which is just above the market price. Each of the placing shares comes with a warrant exercisable at 7p. The cash will be used to acquire additional stocks of Shinju whisky.
Valereum Blockchain (VLRM) has raised £197,500 from the exercise of warrants.
David Evans has increased its stake in Oberon Investments Group (OBE) from 7.61% to 8.15% and Rodger Sargent has a 3.14% shareholding.
EPE Special Opportunities Ltd (ESO) had net assets of 536.19p a share at the end of October 2021.
AIM
Firering Strategic Minerals (FRG) has a 51% stake in the Atex lithium and coltan project and has the option to increase it. Firering raised £4m at 13p a share and expenses were £516,000. The money raised will finance the £1.55m cost of the exploration spending for Atex for the next two years. There is also potential to generate revenues from tantalum production within 18 months, which will help to finance further development.
The Life Science REIT PrimaryBid offer closes on 15 November, and investors can apply for shares in the intermediaries offer via Interactive Investor and other firms by 16 November. A 4% yield is being targeted, based on the issue price of 100p a share, with annual growth of 5%. Life Science REIT will be the first London-quoted REIT focusing on life science properties. The types of properties will include laboratories, offices and manufacturing facilities and they will be situated in Oxford, Cambridge and London. There is strong demand for these properties from companies and organisations and a lack of supply. It is estimated that up to 20 million square feet of additional office and laboratory space will be required over the next two decades. The target for the offer and placing is up to £300 million.
Parcel and freight delivery company DX (DX.) continues to make a rapid recovery despite the uncertainties of the past year. Group pre-tax profit improved from £200,000 to £12m with freight’s improvement offsetting the decline in profit in the rest of the group. Net cash was £16.8m at the end of June 2021 and there could be a dividend this year. finnCap maintained its 2021-22 pre-tax profit forecast at £16.5m.
Tracsis (TRCS) has shown the solidity of its rail technology and services revenues and the more volatile data and events business has started to recover. Revenues edged up from £48m to £50.2m, with most of the growth coming from acquisitions. Rail technology revenues grew, but the data and events division reported a small decline. According to finnCap, adjusted pre-tax profit improved from £8.3m to £10.9m. Since the end of July, Tracsis has acquired Dublin-based Icon Group, which made a pre-tax profit of £800,000 in 2020, and this will be integrated with the similar UK data analysis operations.
Chain and transmission equipment manufacturer Renold (RNO) is managing to pass on higher materials prices and the chain division revenues have recovered. Group interim revenues were 17% ahead at £95.3m, while pre-tax profit was 52% higher at £5m. Order intake was 55% higher at £113m. Net debt is £13.9m. Forecast full year earnings are 3.2p a share.
Media localisation and post-production services provider Zoo Digital (ZOO) is growing revenues on the back of the international expansion of streaming platforms and broadening the range of services that it offers. New production projects are starting to ramp up and that provides further growth opportunities. Interim revenues jumped from $16.4m to $26.9m and there was a small operating profit.
Insolvency litigation financer Manolete Partners (MANO) continued to generate cash before investment in new cases during the six months to September 2021. Revenues were lower than the first half of 2019-20 when there was a large case settlement, but they were higher than the second half. Interim profit fell and that is why the interim dividend has been reduced from 1.17p a share to 0.39p a share. New case enquiries are rising.
Maestrano (MNO) has won a new contract for surveying an electricity transmission line in Australia. The 700km line goes from Wagga Wagga to the South Australian and the contract runs between 2022 and 2025. This shows there is demand for the surveying technology outside of the rail sector.
MAIN MARKET
Property investor Town Centre Securities (TOWN) says that the latest valuation shows a 0.3% increase over the June 2020 valuation. Since then, a London property has been sold for £3.85m, which is 6% above the 2020 valuation. Rent collections are back to pre-pandemic levels. The full year results will be published on 24 November.
Cookware supplier Procook (PROC) joined the premium list at a valuation of £158m at the placing price of 145p a share. Procook ended the week at 159.75p.
Andrew Hore