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Quoted Micro 20 March 2023
AQUIS STOCK EXCHANGE
MBH Corporation (LON: MBH) joined the Access segment of the Aquis Stock Exchange on 13 March. The shares have previously been traded on the Frankfurt Stock Exchange and the Dusseldorf Stock Exchange. Trading started on Aquis at 7p (5p/9p) and it stayed at that price all week. There were no trades. MBH has subsidiaries in a wide variety of sectors. They include, education, construction, transport, health, engineering, property, leisure and food.
Capital for Colleagues (CFCP) is investing £1m in A ordinary shares in automotive engineering and manufacturing start-up Morris Commercial, as part of an £8m investment round. The investment is in three tranches with an initial outlay of £500,000. The full investment will be made by the end of 2023. The initial product is the Morris JE electric van, which is based on the design of the Morris J-Type van.
Quantum technology investment company Quantum Exponential Group (QBIT) welcomes the Chancellor of the Exchequer’s plan for quantum technology. There will be investment of £2.5bn over ten years. This should help to increase investor interest in quantum.
Chapel Down Group (CDGP) believes that changes to UK duties are positive, because of the support for English sparkling wine producers. Chapel Down, along with Shepherd Neame (SHEP) have signed a partnership deal with The Boat Race, which happens on 26 March.
Macaulay Capital (MCAP) has taken over the management of the unquoted portfolio of Chelverton Asset Management.
Kasei Holdings (KASH) is still waiting for £350,000 from the February 2023 fundraising. Management hopes that this cash will be received in the next few days.
Coinsilium Group (COIN) is acquiring the advisory business and certain intellectual property assets of Tokenomi for £116,500 in cash and shares. There are four retained Web3 blockchain project clients with a further ten prospective clients. Revenues could be £551,000 over the next 12 months.
IamFire (FIRE) has subscribed a further £200,000 for convertible loan notes in WeShop, taking the total invested to £2.7m. The total amount invested in WeShop is £6.7m and there is the right to subscribe for a further £1.05m of loan notes. The conversion price is 200p. John Lewis and Sports Direct have recently become affiliated to WeShop.
Altona Rare Earths (ANR) has ended trading on Aquis. Trading starts on the standard list on 20 March. Forbes Ventures left Aquis on Friday, although it intends to acquire a litigation financing business and return to the quoted arena.
Silverwood Brands (SLWD) is still experiencing opposition to the transfer of shares in skincare products supplier Lush. Silverwood Brands holds the rights to the shares even if ownership is not registered.
Ananda Developments (ANA) has raised additional subscription funds at 0.3p a share, taking the total to £427,000.
Res Privata NV has sold its 3.83% stake in NFT Investments (NFT). Mark Horrocks has increased his shareholding in Lift Global Ventures (LIFT) from 7.1% to 11%.
EDX Medical (EDX) non-executive chairman Jason Holt bought 400,000 shares at 3025p each. Incanthera (INC) chief executive Dr Simon Ward has subscribed £115,000 for shares at 6.95p each.
Guanajuato Silver Company Ltd (GSVR) has secured a $5m silver and gold pre-payment facility, which replaces the current facility.
Snacks manufacturer S-Ventures (SVEN) says the audit for its figures for the year to September 2022 will last until the end of April, so trading in the shares will be suspended on 3 April.
Essentially Group (ESSN) joined Aquis on 17 March. The brief announcement claims that the prospectus is on the company’s website, but it is impossible to find.
AIM
Hurricane Energy (HUR) has agreed a bid from Prax Exploration & Production, which values the oil and gas producer at up to £249m. There will initially be a 3.32p a share transaction dividend and cash consideration of 0.83p a share, totalling 4.15p a share. There is then a supplementary dividend of 1.87p a share. Shareholders will also receive a deferred consideration unit worth up to 6.48p a share. The deferred consideration is based on 17.5% of future net revenues earned by Hurricane between 1 March 2023 and 31 December 2026. The deferred consideration will be paid twice a year in arrears.
MTI Wireless Edge (MWE) grew revenues of each of its three divisions and two of them made a higher profit contribution. An initial contribution from communication and monitoring systems developer PSK WIND Technologies, offset the loss of Russian distribution business. In 2022, group revenues improved from $43.2m to $46.3m, while underlying pre-tax profit rose from $4.04m to $4.32m. The total dividend is 3 cents a share. Net cash was $8.14m at the end of the year. The profitability of the Antennas division is recovering.
Cloud-based secure payments technology provider PCI-PAL (PCIP) grew interim revenues by one-third to £7.3m. North American growth was particularly strong. Total annualised contract value is £14.7m. The full year loss is likely to be around £2.2m. Legal costs due to the patent dispute meant that net cash fell to £1.9m, but it has risen since December. There should be no problem with the accounts at Silicon Valley Bank.
Digital coupons and loyalty technology provider Eagle Eye (EYE) reported the expected interims and says that full year results will be better than expected. The pre-tax profit forecast has been edged up from £3.5m to £3.8m and the 2023-24 figure has been edged up to £5m. Net cash could reach £5.3m at the end of June 2023. There should not be any problems arising from the Silicon Valley Bank collapse, although there are still cash deposits in the bank.
Verditek (VDTK) has signed an exclusive supply agreement to supply solar panels to building and roofing products supplier Lindab Profil AB. They will be sold in the Nordic and eastern European markets. The exclusivity depends on the sale of panels of 850kw in 2023.
Cordel (CRDL) has won an important contract with Amtrak in the US. The six-and-a-half year contract is valued at $6.7m. There will be $1m recognised in 2022-23 and $2m in 2023-24, with rest coming in the remaining time of the contract. Cordel’s technology will be used to capture and manage data on clearances of surrounding rail infrastructure.
Redx Pharma (REDX) merger partner Jounce Therapeutics has received an unsolicited offer from Concentra Biosciences. Cancer treatments developer Redx Pharma recently announced the merger with Jounce Therapeutics and the AIM company’s shareholders would own 63% of the enlarged group.
Purplebricks (PURP) has received a possible offer from Strike Ltd, although it is not yet part of the formal sale process and has not entered into a non-disclosure agreement.
Reabold Resources (RBD) has been approached by Kamran Sattar on behalf of an affiliate of Portillion Capital which could lead to a bid at a 10% premium to the previous day’s closing price of 0.2035p. The board believes this offer undervalues the oil and gas investment company. It recently sold the Victory gas discovery to Shell and intends to return £4m to shareholders.
Circle Property (CRC) announced a return of capital through a B share issue with a second distribution to follow. The company has nearly completed the sale of its property portfolio. The first distribution of 158p a share (£46.2m) will be on 21 March. A second distribution of 58p a share should be made in April. There will be a much smaller distribution when the final disposal is completed. An incentive payment of £620,000 is being paid to each executive.
Digital mental health company Kooth (KOO) has won a significant contract in California covering 13-25 year olds. Services will be provided to the Behavioural Health Virtual Services Platform, and they will launch in January 2024. Specific terms are still to be finalised, but there should be a material impact on annualised recurring revenues from 2024.
Condor Gold (CNR) is entering the end of the first phase of the process to sell the La India gold project in Nicaragua. There are three formal expressions of interest, including two non-binding offers, with more likely to be received. The project requires $105.5m of investment and has an estimated NPV (5%) of $86.9m.
MAIN MARKET
Structural steel supplier Severfield (SFR) is expanding in Europe through the acquisition of steel fabrication company Voortman Steel Construction Holding for €24m. The Netherlands-based company will provide greater access to the northern European market.
Data integrity and banking integration software provider Gresham Technologies (GHT) is accelerating the growth of its Clareti software. Group revenues grew from £37m to £48.7m in 2022. That was helped by currency movements and a full year contribution from post-trade processing software supplier Electra, but there was still strong organic growth. The fastest growth was in the US. Pre-tax profit improved from £4m to £6.9m. Singers forecasts a 2023 pre-tax profit of £7.4m. with flat earnings due the corporation tax rate rise, increasing to £9.6m next year.
Harwood Capital has increased its stake in RM (RM.) from 8.88% to 10.4%, including 9.18% held by Rockwood Strategic (RKW). Theodore W King’s stake has risen from 7.36% to 8.25%.
Andrew Hore
Quoted Micro 6 March 2023
AQUIS STOCK EXCHANGE
Invinity Energy Systems (IES) is repaying the remaining $2.1m of its $2.5m convertible loan facility provided by RiverFort Global Opportunities out of the proceeds of the recent placing. There is a 10% redemption premium, making the total cost £1.92m. That stops dilution by the issue of six million shares. Related warrants can be exercised at 32p a share. There are 1.35 million warrants in issue with a further 499,980 warrants to be issued.
Cadence Minerals (KDNC) says the Hastings Technology Metals share price has fallen thereby reducing the value of the stake received when Cadence Minerals swapped its 30% stake in mineral concessions in the Yangibana rare earths project. Even so, Hastings is making progress in developing the mine and ore reserves increased by one-quarter to 20.93Mt at 0.9% total rare earth oxide grade. That increases the mine life to 17 years and production could start in 2024. Shipping of iron ore concentrate from the Amapa iron ore project should recommence in the next six months.
KR1 (KR1) had a net asset value of 60.6p a share at the end of January 2023.
SuperSeed Capital Ltd (WWW) had earnings of 6p a share for the fourth quarter and NAV was 102p a share at the end of 2022.
BWA Group (BWAP) is still seeking a cash injection. Some mineral licences may become the subject of joint ventures or be sold. An issue of 5.76 million shares at 0.5p a share to directors partly settles their fees.
Good Energy (GOOD) has started a rooftop solar installation operation.
Fuel additives supplier SulNOx Group (SNOX) says RemNOx Ltd has not taken up the option to acquire a total of 24.08 million shares at 30p each from directors between 6 February and 28 February.
Quantum technology investment company Quantum Exponential Group (QBIT) appointed Stuart Woods as chief operating and strategy officer.
Fenikso Ltd (FNK), formerly Lekoil, received $665,000 as partial repayment of the loan of $51.9m. Creditors are currently more than $2m. The next payment will be out of the February oil production proceeds.
TruSpine Technologies (TSP) has still not received the promised bridge loan facility or a share subscription. A £200,000 loan has been received from a third party. This will provide working capital.
Trading in Wheelsure Holdings (WHLP) shares is suspended because the accounts for the year to August 2022 have not been issued. Talks continue concerning a cash injection.
RentGuarantor Holdings (RGG) has moved to the Apex segment of the Aquis Stock Exchange.
Phoenix Asset Management has slashed its stake in Silverwood Brands (SLWD) from 16.5% to 1%. Miton UK MicroCap Trust increased its stake in IamFire (FIRE) from 8.69% to 9.27%. William Black has taken a 6.11% stake in Western Selection (WESP).
AIM
Accrol (ACRL) has signed a licensing agreement with Unilever, which will enable the tissue products manufacturer to sell a kitchen towel product under the Lifebuoy brand. This is a brand with strong recognition among consumers. This will be a higher priced product than the products currently produced by Accrol. A new paper mill is being built.
AB Traction increased its stake in construction dispute services provider Driver (DRV) from 20.6% to 27.5%. Ruffer has sold its stake.
WH Ireland has upgraded its 2023 forecasts for LifeSafe Holdings (LIFS) after the fire safety products supplier published a full year trading statement. The 2022 revenues were £3.9m, having been £1.3m at the interim stage. US sales are accelerating. The 2023 forecast revenues have been raised from £5.5m to £6.5m with a slight reduction in the loss to £400,000.
Non-executive directors of Inland Homes (INL) have all resigned because of related party issues that they were not informed about at the relevant times. That would leave the residential property developer with one director, so Simon Bennet is staying on for a fortnight so another director can be appointed – if not the shares will be suspended. Founder Stephen Wicks is likely to return to the board. There will be further announcements about the related party issues.
Gold explorer Panthera Resources (PAT) has entered into a conditional arbitration funding agreement with a subsidiary of Litigation Capital Management (LIT) for the damages claim against the Republic of India for breaches of its obligations under the Australia-India bilateral investment treaty. Up to $10.5m will be provided to cover the costs of the claim.
Purplebricks (PURP) has received approaches for the acquisition of the company, or its businesses and the ongoing strategic review has been widened to include a formal sale process.
Hostels operator Safestay (SSTY) generated higher than expected revenues in 2022 as occupancy levels continue to rebuild and reaching 63%. Revenues were £19m, compared with a forecast of £17.9m. A small pre-tax loss is forecast with a move back to profit expected this year.
Proton therapy technology developer Advanced Oncotherapy (AVO) has secured a convertible loan note facility of £4.95m. In return, the lenders will receive a portion of the revenues generated by the proton therapy machine installed in the Harley Street Centre, capped at £2.5m each year over a ten-year period.
Healthcare services provider Totally (TLY) warns that although full year revenues will be in line with expectations increasing costs means that profit will be below forecasts. Canaccord Genuity has cut its 2022-23 pre-tax profit forecast from £5.8m to £3.8m, down from £4m the previous year. Net cash is expected to be £5.5m at the end of March 2023.
Metal Tiger (MTR) is proposing the cancellation of its AIM quotation so that it has more flexibility with its new investment strategy. A general meeting will be held on 20 March for shareholders to vote on the cancellation and the new investing policy. The company will remain listed on ASX.
MAIN MARKET
URA Holdings (URAH) has completed the acquisition of the Gravelotte emerald mine in South Africa. This used to be the largest emerald mine in the world. The mineral resource estimate is 29 million carats and there are 12 other potential targets. The consideration was £100,000 in shares at 2.5p each.
Mass Energy Developments (MED) announced successful capacity market bids from the 9MW Pyebridge synchronous gas-powered flexible generation facility of £60/Kw and £64/Kw per annum.
IQ-AI Ltd (IQAI) says that the FDA has granted orphan drug designation status for gallium maltolate for the treatment of glioblastoma multiforme brain cancer. Enrolment has started on a phase I clinical trail to evaluate safety and dosage.
Andrew Hore
Quoted Micro 6 February 2023
AQUIS STOCK EXCHANGE
Altona Rare Earths (ANR) is raising £275,000 via a convertible issued to clients of Optiva Securities. This is convertible at the upcoming £1.25m placing at the time of the move to the standard list and will fund an increase in the shareholding in the owner of the Monte Muambe rare earths project. Align Research has extended its £150,000 loan and with interest £189,750 will be payable on 30 April.
Marula Mining (MARU) is seeking to move to AIM. Cairn has been appointed as nominated adviser and a joint broker with Monecor will be appointed. A competent persons report on the portfolio of assets in Africa will be commissioned. At 6.1p, down 5.43% on the week, the battery metals company is valued at £1.6m. That is low for an AIM company.
Cadence Minerals (KDNC) investee company European Metals Holdings (EMH) says the Cinovec project has been classified as a strategic project for the Usti region in the Czech Republic. This means it can receive grants from the Just Transition Fund. The Cinovec project could receive a up to €49m.
The latest investment by Quantum Exponential (QBIT) is in Oxford Quantum Circuits. The £299,997 investment, for a 0.34% stake, is part of a £869,000 funding round. Oxford Quantum Circuits designs super conducting circuits and plans to expand in Asia.
A company owned by NFT Investments (NFT) executive chairman Jonathan Bixby bought 10 million shares at 0.855p each, taking his stake to 6.43%. NFT investments has secured a temporary restraining order in Delaware that freezes the online warrant holding assets secured in the cybersecurity incident.
Coinsilium Group Ltd (COIN) says that it invested $575,000 in crypto currencies and also entered into advisory work with the issuers. The company says that the crypto currency markets are recovering in 2023. Despite that, Web3 projects have more realistic valuations making them attractive to investors.
KR1 (KR1) has made four new investments in HydraDX and related Basilisk tokens, Superchain, Argent and Metaprime. HydraDX and Argent were existing investments. The total investment is just over $1m.
There have been delays in the provision of the £200,000 bridge loan to TruSpine Technologies (LON: TSP) and it should be received shortly followed by the first tranche of the subscription.
Lift Global Ventures (LFT) has invested £750,000 in convertible loan notes issued by Trans-Africa Energy Ltd, which develops energy infrastructure projects in Sub-Sharan Africa. It has a joint development agreement with Ghana National Gas Company. This covers four projects for processing and transporting natural gas, where Trans-Africa will have a majority stake. The financial close for the first project could be later this year.
Emissions reducing fuel ingredients supplier SulNOx Group (SNOX) grew third quarter revenues by 9% quarter-on-quarter to £45,720. Pro forma cash is £790,000 and cash outflow is being reduced. The fourth quarter has started well, and sales staff are being recruited.
Evrima (EVA) has recovered more than the cost of its $234,000 investment in Premium Nickel Resources through a series of sales raising $299,000. The residual stake is valued at $1.63m. Guy Miller has resigned from the board.
Vulcan Industries (VULC) generated revenues of £968,000 from continuing operations in the nine months to December 2022. The loss was £697,000. Acquisition opportunities have been identified.
Craft spirits producer British Honey (BHC) says revenues fell from £8m to £6m and management is cautious about trading. The review of strategy continues.
Love Hemp (LIFE) refutes comments made by former managing director Philip Small. It has asked for proof of the validity of invoices for money he is claiming. Al his comments are being investigated by the company’s advisors.
Goodbody Health (GBDY) has signed four phlebotomy contracts. This service will be offered through its network of 90 clinics.
Igraine (KING) has invested £100,000 for a 20% stake in Fixit Medical, which has designed the Cingo drainage catheter fixation device. This protects catheters from twisting and kinking.
Gledhow Investments (GDH) had net assets of £1.7m at the end of September 2022, including £112,000 in cash. Net assets fell because of a reduction in the value of the investment portfolio.
In the fourth quarter, RentGuarantor (RGG) increased the number guarantees made by 11%. Over 2022, the demand for services increased by 71% and further growth is expected this year.
ChallengerX (CXS) had £236,000 in cash at the end of September 2022. Developing the company’s platform will require more investment. ChallengerX is also assessing reverse takeovers.
Luciano Maranzana has been appointed chief executive of Eight Capital Partners (ECP). He has been a non-exec for seven months.
Chris Akers continues to build up his stake in Asimilar Group (ASLR) and it has reached 9.13%.
Cooks Coffee Company (COOK) has raised an additional £42,000 at 18p a share. Director Michael Ambrose bought 200,000 of these shares, taking his stake to 1.6%.
Three directors bought shares in S-Ventures (SVEN). Scott Livingston acquired 104,539 shares at 11.1p each, taking his stake to 36.7%. Robert Hewitt bought 44,247 shares at 11.3p each and Alexander Phillips acquired 89,954 shares at 11.1p each. Exercised warrants at 25p each raised £350,000. Head of risk and compliance Simon Mathisen acquired 120,168 shares at 3.5p each in Oberon Investments (OBE), while non-exec Gemma Godfrey bought 200,000 shares at 3.5p each.
AIM
ASX-listed Celsius Resources (CLA) raised £2.4m at 0.8p a share when it joined AIM on 30 January. That valued the minerals explorer at £14.8m. The share price opened at 0.88p and ended the week at 1.025p. The main interest is the Makilala-Caigutan-Biyog (MCB) copper gold project in the Philippines. This is 320km north of Manila. The authorities are apparently fast-tracking the project permitting approvals and mine development. The cash will help to finance further development, but management needs to secure additional debt and/or an offtake agreement to generate the funding required to get the project to bankable feasibility. Celsius Resources owns 100% of the project
All three divisions of NWF (NWF) did better than expected in the first half and the second half has started well. In the six months to November 2022, revenues were 35% higher at £541.8m, while underlying pre-tax profit improved by 44% to £6.2m. The interim dividend is unchanged at 1p a share, although there will be an increase in the final dividend. Net cash was £1.2m at the end of November 2022.
Agricultural products supplier and retailer Wynnstay Group beat expectations that had already been upgraded a number of times in the past year. In the year to October 2022, revenues were 42% ahead at £713m, while pre-tax profit almost doubled to £22.6m. The dividend has been raised for the nineteenth year in a row. The total dividend is 17p a share. High milk prices have boosted feed demand from farmers – with like-for-like growth of 6% – enabling Wynnstay to increase its market share.
Digital transformation services provider TPXimpact Holdings (TPX) downgraded 2022-23 guidance with revenues expected to be £80m rather than £90m. EBITDA falls more sharply and could be around £2m. Third quarter like-for-like revenues were 15% lower and there was a sharp reduction in margins. Net debt was £17.5m at the end of December 2022 and management warns it is likely to breach debt covenants. Director share buying sparked a small recovery in the share price. Finance director Steve Winters acquired 220,000 shares at 21.34p each and former chief executive Neal Ghandhi bought 196,986 shares at 22.45p each.
Morses Club (MCL) gained 75.17% backing to approve the cancellation of the quotation on AIM. This resolution required 75% of the vote so it only just succeeded. Shareholders owning 61.7% of the share capital voted. The last day of dealings will be 10 February. After that, there will be a matched bargain facility on Asset Match.
Immotion (IMMO) is selling its location-based entertainment business for $25.1m, having raised £100,000 from disposing of Uvisan. Shareholders are likely to receive 3p a share out of the sale proceeds with £6.5m retained for the remaining business after buying back shares from management leaving with the location-based entertainment business. Immotion will concentrate on the home-based entertainment business Let’s Explore Media. This will be expanded via acquisitions. The share price was below the proposed dividend level, and it rose to 3.35p. Immotion joined AIM in July 2018 at a placing price of 10p a share.
Parcel delivery and logistics company DX (DX.) has appointed the boss of the Freight division, Paul Ibbetson, as chief executive. He has been with the company since 2017. Interim revenues grew by 15%
Employee benefits services and insurance provider Personal Group (PGH) did well last year with recurring revenues growing but progress was held back by Let’s Connect electronic products provider. Cenkos trimmed its 2022 pre-tax profit forecast from £4.5m to £4m. Net cash is more than £18m.
Sustainable polymers developer Itaconix (ITX) is raising £10.3m at 5.1p a share, while an open offer could raise up to £400,000 more. The cash will fund product development, capital investment and working capital.
CentralNic (CNIC) has sparked the regular upgrade with its fourth quarter figures. Full year revenues were better than expected at $728m. Pre-tax profit was upgraded from $69.2m to $72.4m. CentralNic is partnering with automated hosting resellers platform WHMCS.
MAIN MARKET
Thungela Resources (TGA) is acquiring an effective interest of 63.75% in the Ensham coal mine in Australia for A$267m. This is via 85%-owned Sungela Holdings. Ensham produced 3.2 million tonnes of coal in 2022. The mine life is 16 years. The deal should close in the middle of 2023.
Associated British Engineering (ASBE) made a £5,000 profit thanks to an exchange gain in the year to September 2022. Net assets are £657,000, including £497,000 in cash and £182,000 in investments.
Kelso Group (KLSO) has acquired five million shares in THG (THG) at an average price of 54.5p.
Andrew Hore
Quoted Micro 23 January 2023
AQUIS STOCK EXCHANGE
Oberon Investments Group (OBE) is acquiring 63% of Logic Investments Ltd, which provides back office services to investment managers. Logic has funds under management and administration of more than £275m and Oberon Investments will merge its own back office operations with Logic. A placing raised £1.75m at 3.5p a share. Chairman Alex Hambro subscribed for 1.14 million of the shares, taking his stake to 1.64 million shares. The cash will be used to accelerate growth.
GP IT systems supplier DXS International (LON: DXSP) reported a 2% improvement in interim revenues to £1.65m, while the loss was £131,000 due to higher depreciation and operating costs. There was £399,000 in the bank at the end of October 2022. Management options can be exercised if annual turnover reaches £5m in the next three years. Hybridan forecasts revenues 2022-23 revenues of £3.61m with a pre-tax profit of £86,000.
Cooks Coffee Company (COOK) says UK sales were 41% higher in 2022, while sales in Ireland were 91% ahead. The focus is generating better returns from existing café sites, although there will be some new openings.
Healthy snacks supplier S-Ventures (SVEN) says full year revenues were £8.7m, but the inability to obtain ingredients hampered sales income. The operating loss is £2.6m. The revenues were one-fifth down on initial expectations for the year to September 2022. Supply problems have eased, and price rises have helped to offset higher costs.
Marula Mining (MARU) has appointed Geofields Tanzania to commence copper exploration at the Kinusi copper project, where Marula Mining owns a 49% interest, and £80,000 has been raised from a warrant exercise. Initial exploration results should be published in the second quarter of 2023.
Hydrogen Future Industries (HFI) is investing in hydrogen production facilities developer Tower Green. It has spent £100,000 in cash and shares on a 20% stake and has the right to invest a further £50,000 for another 10% stake. Tower has an agreement with Element 2 to supply hydrogen fuel to fleet operators. Hydrogen Future Industries has developed wind-based hydrogen production systems.
Tap Global (TAP) continues to rise following the previous week’s completion of its reversal into Quetzal Capital last week. There was £3.1m raised at 4.5p at the same time, even though the market price had not been that high since May last year. Chief executive David Carr acquired 190,000 shares at 4.1p each and finance director Anthony Quirke bought 135,135 shares at 4.4p each.
Newbury Racecourse (NYR) lost money on the Great Christmas Carnival and the company is likely to make a small profit in 2022. The other parts of the business traded in line with expectations.
Quantum Exponential (QBIT) had £2.48m in cash out of net assets of £4.85m at the end of October 2022. There was a cash outflow of £313,000 in the previous six months.
Guanajuato Silver Company Ltd (GSVR) has restarted processing at the Cata mill at the Valenciana mine. The initial processing rate is around 8,000 tonnes/month.
Invinity Energy Systems (IES) says that its VFB technology has passed phase 1 requirements for UK government’s LODES competition, and it is submitting the application for phase 2. The competition offers £11m of funding to the winner.
AQRU (AQRU) says that Accru Finance is raising the threshold for minimum account deposits on its app to $250,000. This will reduce assets on the app, but hardly affect revenues. There will also be further cost cutting.
Rogue Baron (SHNJ) sold 930 cases of Shinju whisky in the fourth quarter of 2022. Revenues were $120,000.
Gunsynd (GUN) has raised £194,000 from partial disposals of stakes in three companies. Gunsynd has invested £150,000 in Strategic Minerals Europe, the holding company of Aberdeen Minerals, which is exploring for nickel-copper-cobalt deposits in north east Scotland. Shares were acquired at 2.5p each and Gunsynd has a 2.7% stake.
Hydro Hotel Eastbourne (HYDP) is paying a dividend of 23p a share, up from 21p a share last year.
AIM
Pawnbroker Ramsdens Holdings (RFX) did much better than expected in the year to September 2022. Group revenues increased by 62% to £66.1m, while pre-tax profit jumped from £564,000 to £8.27m. Net cash is £8.84m. The total dividend is 9p a share. Earnings forecasts for 2022-23 were upgraded by 5% following a 6% upgrade in October.
Regional legal firm consolidator Knights Group Holdings (KGH) reported a 19% increase in interim revenues to £71.2m and underlying pre-tax profit was also 19% ahead at £9m. This was achieved in a flat market. Net debt was £35.6m at the end of October 2022. The interim dividend is 153p a share.
China-based Hainan Mining is funding the Bougouni lithium project that is wholly owned by Kodal Minerals (KOD). A $100m investment will be made into a joint venture providing Hainan Mining with a 51% stake. The work on the construction of the mine will be overseen by Kodal Minerals. Hainan Mining is also subscribing $17.75m for a 14.8% stake in Kodal Minerals and that money will be spent on other projects.
Mirriad Advertising (MIRI) is launching a strategic review and potentially putting itself up for sale. The board of the programmatic advertising business believes that Mirriad Advertising is undervalued even though it continues to make heavy losses. Revenues were £1.51m in 2022 and there was £11.3m in cash, which should last until the third quarter of 2023. The strategic review will consider how the business should be funded from then on. In-content advertising is set to grow significantly, but Mirriad Advertising has to have the funding to take advantage.
Legal services provider Gateley (GTLY) generated organic growth of 10% and improved profit by 12% in the first half. In the six months to October 2022, group revenues were 22% ahead at £76.1m, helped by contributions from the new patent activities, while pre-tax profit improved from £8.5m to £9.6m. The dividend has been raised by 10% to 3.3p a share.
Musical instruments retailer Gear4Music (G4M) grew revenues by 5% in the third quarter despite strikes and weak consumer spending. UK sales were flat, and the growth was in Europe. Gross margins declined. A full year pre-tax profit of £1.1m, down from £5m, is forecast.
Inland Homes (INL) chief executive Donagh O’Sullivan has resigned after little more than one month in the job.
Panther Securities (PNS) is paying a special interim dividend of 10p a share. The property investor says that it expects net assets to increase by £19m in 2022, mainly due to the removal of two derivatives liabilities relating to interest rates on debt. Loan-to-value is less than 40%. Debt refinancing discussions will begin later this year.
Online women’s fashion retailer In The Style (ITS) was hit in December by price cutting by rivals and difficulties in delivering orders. Revenues in the quarter to December 2022 fell by 22%. Full year revenues are expected to be £46m, which is not much more than the £44.7m generated in the year before flotation. The EBITDA outcome is likely to be a loss of between £4.25m and £4.75m. There was £3.2m in cash at the end of 2022. On 8 December, In The Style launched a strategic review and that continues.
Rockfire Resources (ROCK) has entered into a joint venture with Sunshine Gold for the Plateau gold deposit in Queensland. Sunshine Gold will fund all exploration for three years. Rockfire Resources will focus on the Molaoi zinc deposit in Greece.
Circle Property (CRC) intends to return at least £30m to shareholders by March 2023. Three-fifths of the portfolio has been sold in 14 months. At 220p, the shares are trading on a discount to NAV of around 18%.
Upgrades for Equals Group (EQLS) continue to push the share price higher. The forecasts had already been upgraded in December and earnings per share have been increased by a further 4% to 4.8p, up from 2.8p in 2021. There was £15m in the bank at the end of 2022.
Crimson Tide (TIDE) revenues were better than expected and that reduced the forecast loss. The mobile as a service technology developer is still on course to breakeven next year. Annualised recurring revenues are £5.8m, which is more than generated in 2022. The US provides additional potential.
Shanta Gold (SHG) produced 65,209 ounces of gold at an all-in sustaining cost of $1,270 at the New Luika gold mine in Tasmania, which is just below guidance. Capital investment means that it could produce 66,000-72,000 ounces of gold at an all-in costs of $1,200-$1,300/ounce.
MAIN MARKET
LED lighting and wiring accessories supplier Luceco (LUCE) as 2022 revenues and profit are at the upper end of guidance. Strong cash flow reduced borrowings with net debt one-third lower than expected at £24m. The finance director is leaving and being replaced with non-exec Will Hoy.
Medica Group (MGP) revenues and profit for 2022 should be in line with expectations. Improved radiologist capacity helped revenues improve from £61.9m to £77m, while pre-tax profit is set to improve from £7.4m to £13m. Acquisition opportunities are being evaluated.
Andrew Hore
Quoted Micro 7 November 2022
AQUIS STOCK EXCHANGE
Cooks Coffee Company Ltd (COOK), which was already quoted on the New Zealand Stock Exchange, joined Access segment of Aquis on 2 November at 20p a share. The share price rose to 21.5p (20p/23p) by the end of the week. There were no trades during the week. The company owns the Esquires Coffee and Triple Two Coffee brands. It has 111 outlets around the world, including 70 in the UK, making it the largest franchise café chain in the UK. Elena Garside has been appointed as a non-executive director.
Brewer Daniel Thwaites (THW) more than doubled interim pre-tax profit from £7.5m to £15.7m, although most of the improvement came from a gain on interest rate swaps of £7.6m, up from £500,000, due to higher interest rates. Turnover was 21% ahead at £57.9m, although trading was disrupted in the corresponding period. Net debt was £61.1m at the end of September 2022. The performance of pubs is mixed, and beer volumes are not back to past levels. Higher hotels revenues were more than offset by increased costs.
Quantum Exponential Group (QBIT) investee company Universal Quantum says its German subsidiary has been commissioned by the German Aerospace Centre to build a fully scalable trapped-ion quantum computer. This follows projects supported by the UK government. Non-exec director Nigel McNair Scott has acquired 500,000 shares at 2p each, 1.5 million shares at 1.966p each and 500,000 shares at 1.95p each.
Valereum (VLRM) has gained regulatory approval for the acquisition of the Gibraltar Stock Exchange and the deal should be completed in the first quarter of 2023. Smaller companies in the Middle East, India and Africa. The plan is to attract An NFT strategy will be launched next year. Simon Brickles is chairman of the Gibraltar Stock Exchange, and he will join the Valereum board. There has been the conversion of £130,000 of the funding facility into shares. There is an outstanding balance of $2.35m.
Eight Capital Partners (ECP) wants to raise up to £10m from a placing at 0.02p a share. The shares will come with warrants exercisable at 0.05p. The cash will be used for fintech acquisitions. Supplying financial services to smaller companies is an area that management believes is underserved. Wealth management technology is another potential area. Acquiring a digital bank could provide a base to grow into these areas. A broker option will enable existing shareholders to buy shares, and this is open until 21 November. Bondholders will be given the chance to convert into shares.
Quetzal Capital (QTZ) has a conditional agreement to acquire the shares it does not own in TAP Global for 450 million shares. The deal requires a fundraising to finance the enlarged group. This has led to the suspension of trading in Quetzal Capital shares.
Wind and water-based green hydrogen production systems developer Hydrogen Future Industries (HFI) has commenced prototype testing of the wind element of the system. The wind turbines are designed to be more efficient, and the tests will show whether they achieve expected power output.
VVV Resources Ltd (VVV) has raised £241,000 at 20p a share and every four shares come with a warrant exercisable at 50p a share. The share price slumped 55% to 22.5p because of the placing’s large discount to the market price. VVV Resources has a conditional agreement to acquire 100% of the Mitterberg copper project in Austria and 49% of the Shangri La polymetallic project in Western Australia.
Cadence Minerals (KDNC) says the Amapa ore reserve estimate supports a 15-year mine life and Cadence has increased its stake in Amapa to 30% by converting loans and capitalising management and admin contributions. Investee company Evergreen Lithium is moving towards an ASX listing.
Rogue Baron (SHNJ) sold 660 cases of whisky generating $87,000. Sales have slowed in the US ahead of a move to a larger distributor. Rogue Baron is selling its De Rhum Spot bar.
Semper Fortis Esports (SEMP) generated revenues of £55,000 in the six months to July 2022. There was a £694,000 cash outflow during the period, leaving cash of £635,000. Overheads have been reduced.
Dynasty Gaming & Media, which is an investee company of AIM-quoted Blue Star Capital (BLU) will deliver new games developed by Pioneer Media Inc (PNER), to Asian telecoms company Indosat Ooredoo Hutchison, which has 100 million subscribers in Indonesia.
TruSpine Technologies (TSP) has been approached with an equity financing package. More cash is required for working capital.
There has been more buying of property investor Ace Liberty & Stone (ALSP) shares by chief executive Ismail Ghandour. He acquired 20,000 shares at an average price of 0.595p each. Brewer Shepherd Neame (SHEP) director Richard Oldfield is continuing to buy shares. He acquired at total of 9,500 shares at 680p each. Coinsilium (COIN) chief executive Eddy Travia bought 250,000 shares at 1.9p each.
MiLOC (ML.P) is changing its name to Crushmetric Group.
AIM
Accsys Technologies (AXS) will report a significant impairment charge relating to the restructuring of the Tricoya consortium. Accsys Technologies intends to take 100% ownership of the Hull Tricoya plant, and construcgtion is going to be put on hold for six months. That will reduce the cash outflow. The restructure means that the consortium partners will receive 11.9 million Accsys Technologies shares. The debt facility will be restructured with the principal reduced from €15m to €6m. The plant may cost €35m to complete. A decision on construction will depend on the assessment of the longer-term outlook for costs. The fourth reactor at the Netherland Accoya plant will increase cash generation.
Shield Therapeutics (STX) says the Korean Food and Drug Administration has agreed to a single pharmacokinetic study for a new drug application for iron deficiency product Accrufer. This should start before the end of the year. Korea Pharma will conduct the survey and regulatory approval could be gained before the end of 2023.
Science Group (SAG) is buying the shares it does not own in TP Group (TPG) for 2.25p a share in cash. That values TP Group at £17.5m. Science Group already owns 28% of the company.
Oil and gas producer Hurricane Energy (HUR) has received an indicative bid of 7.7p a share but does not recommend this offer. Instead, a formal sale process has started because 28.9% shareholder Crystal Amber Fund Ltd (CRS) is keen to sell its stake. Hurricane Energy is generating cash and has more than $370m of tax losses. If there is no bid a 3.1p a share distribution is planned.
Rising costs have meant that paper manufacturer James Cropper (CRPR) with energy costs having a significant effect on paper making. The technical fibres business is not growing as fast as anticipated. Price rises are offsetting some of the cost increases. The full year pre-tax profit estimate has been cut from £5.4m to £2m, after breaking even in the first half to 24 September 2022.
Empire Metals (EEE) says the mapping of the Pitfield copper project show extensive copper, silver and other base metals anomalies over a 40km strike length. Exploration field work will start by the first quarter of 2023.
MAIN MARKET
Bowen Fintech (BWN) is a standard list shell that is seeking fintech acquisitions, such as digital payments and trading platforms, anywhere in the world. The initial focus is Europe, Asia and the US. A business that is already generating revenues with potential for growth would be ideal for Bowen Fintech. A placing raised £2m at 4p a share. There were no trades on the first day and then two on the following day. There were two more deals on Friday. The share price ended the week at 6.25p (5p/7.5p). That is nearly double the pro forma NAV of 3.2p a share.
Vox Capital has reversed into standard list shell Vertu Capital Ltd to form Vox Valor Capital Ltd (VOX) and trading recommenced on 31 October. Vertu Capital issued 2.2 million shares at 1.2p each to acquire London-based digital marketing and technology business Vox Capital, which equates to 93.9% of the enlarged share capital. However, the share price opened well below the issue price and has fallen to 0.6p (0.5p/0.7p).
National World (NWOR) is considering a bid for Daily Mirror owner Reach (LON: RCH), although it has not made an approach.
Andrew Hore
Quoted Micro 10 October 2022
AQUIS STOCK EXCHANGE
Arbuthnot Banking Group (ARBB) says full results should be ahead of market expectations of a £13m pre-tax profit. The third quarter trading statement says Arbuthnot Latham deposits exceed £3bn, although costs of deposits are rising. Base rate rises have a positive effect on results as changes to deposit rates lag the rises in interest rates. Credit criteria are being tightened, particularly for property. Assets under management are £1.35bn. Non-exec Sir Nigel Boardman acquired 9.749 shares at 810p each.
Helium Ventures (HEV) has conditionally agreed to acquire Vestigo Technologies, which has developed tracking product Trackimo. Shares will be issued at 10p each and the existing share capital prior to the deal would be valued at £1.68m. Helium Ventures plans to move to the standard list after the reverse takeover. In 2021, Vestigo had revenues of $28.1m and has partnerships with Vodafone and Paramount. Trading in the shares has been suspended.
Quantum Exponential (QBIT) had net assets of £5.6m at the end of April 2022, following an increase in the value of its option in cyber security business Arqit Inc. Since then, two new quantum technology investments have been made. There is still cash for further investments and there are plans to set up a fund that will raise further funds to invest in quantum technology.
Hydrogen Future Industries (HFI) has acquired a suite of international patents through a joint venture. The patents are relevant for the company’s wind-based hydrogen production system, plus other systems. The patents were issued to the vendor when it employed the boss of HFI’s development subsidiary. The payment will be £33,000 in cash, 5.2 million shares and 2.5 warrants exercisable at 12p each, with the second tranche of the payment dependent on the achievement of development milestones.
National Milk Records (NMRP) generated a 6% increase in 2021-22 revenues to £23.2m, while pre-tax profit improved from £1.65m to £2.22m. The dividend was raised by one-third to 2p a share. The milk recording and testing services increased revenues. The biggest increase was in genomics which rose from £292,000 to £488,000 and there is a potential launch in the US during 2023.
EPE Special Opportunities Ltd (ESO) has invested £2m in Denzel’s Ltd, a premium dog snacks brand, which raised £3m in total. Denzil’s has listings in major supermarkets and has launched its own website. It is part of the Tesco Incubator Programme.
There has been a mineral resource upgrade at the Amapa iron project in Brazil, where Cadence Minerals (KDR) owns 27%. The updated resource at Amapa is 276Mt grading 38.33% Fe, up from 177Mt. The measured resource is 55Mt grading 39.26% Fe.
Capital for Colleagues (CFCP) had net assets of £13.8m at the end of May 2022, equivalent to 74.5p a share.
S-Ventures (SVEN) has gained new contracts for its natural food businesses with ASDA, Holland Barrett, Co-op, WH Smith and easyJet. Two retailers in Finland have started stocking company products.
Marula Mining (MARU) has taken a 49% interest in the Kinusi copper mining project in Tanzania. The licences last seven years. In return for the interest, Marula has reimbursed $50,000 of costs incurred by Takela Mining and issued it with 4.5 million shares at 2p each.
Quetzal Capital (QTZ) had £1.07m in the bank out of net assets of £2.86m at the end of June 2022.
Goodbody Health (GDBY) secured a distribution agreement with blood collection services provider Tasso Inc, which supplies virtually painless medical devices to draw a blood sample with no needles. Goodbody’s clinics will be able to extract more blood than from a finger prick.
Hydro Hotel, Eastbourne (HYDP) reinstated the interim dividend at the rate of 14p a share.
Director buying at Kent-based brewer Shepherd Neame (SHEP) pushed the share price 0.4% higher at 672.5p. Richard Oldfield bought 6,000 shares at 675p a share and George Barnes acquired 3,200 shares at 672p each. The final dividend is 15p a share and the shares go ex-dividend on 13 October. Coinsilium (COIN) chairman Malcolm Palle acquired 500,000 shares at 1.9p each, while chief executive Eddy Travia bought 500,000 shares at 1.95p each. The share price rose 8.11% to 2p.
Global Smollan has increased its stake in Samarkand Group (SMK) from 14.8% to 17.6%.
Pioneer Media Holdings Inc (PNER) has raised $1m through a sale of units at 10 cents each. They include one share and one-half of a warrant exercisable at 25 cents. This cash will be spent on technology development and expanding the web3 gaming business.
Invinity Energy Systems (IES) has sold a 1.3MWh VS3 flow battery system for use in a datacentre in Arizona. Amati reduced its stake from 5.87% to 4.92%.
Trading in the shares of Vulcan Industries (VUL), Hot Rock Investments (HRIP) and VVV Resources Ltd (VVV) has been suspended due to failure to publish results.
AIM
Peter Gyllenhammar has taken a 11.2% stake in Pressure Technologies (PRES) following the share price slump after last week’s trading statement. Pressure Technologies had a disappointing second half. There will be a full year loss and the engineering company will also breach covenants on its bank facility. More cash is required. Net debt was £5.4m at the interim stage and it could be £3.9m at year-end. The finance could come from a share issue or a convertible issue or another form of funding. Management is talking to Lloyds about the bank facility. Forecast net assets are £15.4m, including the company’s main factory, which is nearly double the market capitalisation.
Former broker analyst Bill Currie has taken a 4.15% stake in online retailer In The Style (ITS). He is a non-executive director of retail loyalty technology developer Eagle Eye (EYE) and he owns 12.9% of the company. Lombard Odier has cut its stake from 20.1% to 19.8% and Ameriprise Financial has reduced its stake from 5% to 4.39%.
Gateley (GTLY) has acquired patent attorney Symbiosis IP for up to £2.5m. The business made a pre-tax profit of £300,000 in the year to March 2022. This business fits with Adamson Jones.
In video game advertising technology developer Bidstack (BIDS) raised £10.5m at 2.85p a share. Irdeto subscribed for £5m worth of shares. There are plans to develop a platform for sports bodies to control content that appears in their licenced IP. The rest will go on working capital and commercial development.
Public Policy Holding Company Inc (PPHC) is acquiring California-based KP Public Affairs in an earnings enhancing deal. Public Policy Holding Company provides public affairs, crisis management and lobbying services in the US. The acquisition enhances earnings by 2% in 2022 and 9% in 2023.
NWF (NWF) continues to perform strongly with the feed division recovering, helped by higher milk prices, and food distribution trading better than expected. Fuel distribution volumes are lower than in the previous year as people delay refilling their tanks, although margins have improved.
Seeing Machines (SEE) has an exclusive collaboration deal with Magna International for rear view mirror occupant monitoring applications in vehicles. Magan is paying $17.5m in cash ($10m immediately and $7.5m over two years) and investing $47.5m via a convertible note, which is convertible at 11p a share. This should be enough cash to get the driver monitoring technology business to profitability.
Oxford Biodynamics (OBD) is raising £9.1m via a placing at 20p a share and up to a further £2.95m could be raised through a one-for-6.81644 open offer. The share price rose 56.3% to 17.975p, which is still well below the placing price. This cash will help to fund the commercial development of the EpiSwitch CiRT test for cancer, which has been issued with a US reimbursement code earlier in the week.
Parcel and freight delivery company DX (DX.) has published interim figures and it intends to recommence dividend payments. A total dividend of 1.5p a share is expected for 2022-23 and that provides a base for further growth. Cash could still grow steadily. Trading in the shares remains suspended.
PCF Group (PCF) has suspended new lending by PCF Bank while it is trying to raise additional finance. Castle Trust Capital decided not to bid for PCF. Sales of assets and other options to raise money are being considered. There will be further cost cutting.
Battery cells developer AMTE Power (AMTE) has signed a framework deal with the UK Battery Industrialisation Centre to produce up to 60,000 Ultra High Power cells annually. The cells are fast charging and have high power delivery. Production commences in three months and the cells will be used for in-vehicle trials by potential customers – the initial focus is high performance electric vehicles – ahead of the opening of AMTE’s own factory in Dundee in a few years.
Horizonte Mining (HZM) announced a fundraising on Tuesday evening and the size of the placing was increased from £61.7m to £70.5m at 90.5p a share. This larger fundraising has also reduced the contribution from major shareholder La Mancha from £23.8m to £22m. The cash will help to complete the construction of the Araguaia nickel project in Brazil. Total capital cost has increased from $477m to $537m. First production is scheduled for the first quarter of 2023.
Gold miner Chaarat Group Holdings (CGH) has extended the convertible loan notes from 31 October 2022 to 31 July 2023. Interest will be capitalised until the end of October and then the principal of $28.7m plus accrued interest will incur an annual interest rate of 12%. There is also a fee of 1%. If converted there will be 77 million shares issued.
MAIN MARKET
Shell company Milton Capital (MII) floated on the standard list on 4 October. There was £1m raised at 1p a share. The share price ended the week at 1.1p. The initial focus is acquisition targets in the technology sector. Total flotation costs were capped at £50,000 and Peterhouse paid additional costs of £5,955. The first year’s operating costs will also be £50,000.
Data integrity software supplier Gresham Technologies (GHT) has won a £1m plus contract for Clareti Control from a major European financial and banking group. There is also A$19m of work for ANZ in the year to September 2023, which is 15% higher than last year on a constant currency basis. Full year revenues and profit will be ahead of expectations.
Golden Nice International has subscribed £650,000 worth of shares in Anglo African Agriculture (AAAP) at 5p a share. That is a 28.2% stake. There are also 13 million warrants exercisable at 5p each. Golden Nice International has also acquired 65% of convertible loan notes in issue at a 15% discount to face value. They convert into 13.7 million shares at 5p each. The other loan notes will be converted into 7.37 million shares with associated warrants. Andrew Monk and Matt Bonner have resigned and replaced by Andy Sui and Simon Grant-Rennick. The company is changing its name to Everest Global.
Shell company Insight Business Support (IBSU) had net assets of £530,000 at the end of June 2022, including cash of £440,000.
Andrew Hore
Quoted Micro 8 August 2022
AQUIS STOCK EXCHANGE
Guernsey-based Inteliqo Ltd (IQO) plans to become a distributor of a range of technology products. The first is an earbud that can translate 42 languages in real-time. There is limited liquidity with little more than 2% of the shares not held by the five main shareholders. A lock-in agreement means that more than 90% of the shares cannot be sold for 12 months. This is reflected in the bid/offer spread of 1p/4p, which effectively means that the share price was unchanged on the first day of dealings. There were no trades. Pro forma net assets are £557,000, which is equivalent to 0.5p a share.
Quantum Exponential Group (QBIT) has made a £450,000 investment as part of a £12m fundraising by QLM Technology Ltd, a photonics hardware and technology developer. It has developed a gas imaging camera based on quantum technology. The technology will be integrated into lead investor Schlumberger’s end-to-end emissions solutions business. It can be used to quantify greenhouse gas.
TruSpine Technologies (TSP) says that the instrument sterilisation testing for the FDA 510k submission has been delayed due to problems getting a supply of medical grade steel.
Love Hemp Group (LIFE) says full year revenues fell 16% to £3.6m. This was hit by delays to the UK novel foods product register. Second half operating costs have been reduced. Two major listings of CBD products have been agreed.
VVV Resources (VVV) had £87,000 in cash and net assets of £148,000 at the end of 2021. A share purchase agreement should lead to VVV owning 100% of the Mitterburg copper project in Austria and the Shangri La polymetallic project in Western Australia – it already owns 51% of this project.
Wishbone Gold (WSBN), which is also quoted on AIM, reported encouraging visual drilling results at the Red Setter project, Patersons Range, Western Australia. This has prompted management to secure a second drilling rig.
SulNOx Group (SNOX) has won its first order for fuel conditioner in Costa Rica for evaluation and an additional order in Germany.
MiLOC Group Ltd (ML.P) revenues declined from HK$20.5m to HK$4.94m and a profit became a loss.
Chris Akers has increased his stake in Quetzal Capital (QTZ) from 21% to 22%. John Mahtani has cut his stake from 3.83% to below 3%.
AIM
Bumper fuel profit meant that NWF (NWF) produced record results in the year to May 2022. Group revenues were 30% ahead at £878.6m, while underlying pre-tax profit jumped from £11.9m to £20.9m. That was excluding a £8.3m impairment charge for feeds division assets. There was a continued steady increase in the total dividend to 7.5p a share. All three divisions improved their profit during the year and NWF has net cash of £9m. There were no acquisitions last year, but the cash in the balance sheet will help to finance further fuels deals. The plan is to spend £10m a year, paying around six times operating profit. That will enhance earnings.
Filtronic (FTC) narrowly beat June’s upgraded full year results for the year to May 2022. Revenues improved from £15.6m to £17.1m, while pre-tax profit jumped from £200,000 to £1.5m. The mix of product sales boosted margins. Higher margin defence and critical communications sales grew, while lower margin Xhaul telecoms revenues fell, although they were stronger in the second half. There is likely to be a greater proportion of Xhaul sales in this year’s forecast revenues of £19m. That means that group margins will decline. Pre-tax profit is expected to be £800,000 and net cash could rise to £4.4m.
Cosmetics supplier Revolution Beauty (REVB) has delayed its 2021-22 results and cut its expectations for 2022-23. Poor retail demand in the US and the loss of £9m of Russian and Ukraine revenues have hit the early part of the new financial year. Online demand is switching to store sales and cost increases have hit profitability. Zeus has cut its 2022-23 EBITDA forecast by 38% to £19m, while higher net debt means that earnings are reduced by 64% to 1.5p a share.
Lithium-ion battery cell technology developer AMTE Power (AMTE) has secured a partnership with Cosworth for its Ultra High Power (UHP) rechargeable pouch battery cells. This follows the announcement that AMTE Power has chosen a site in Dundee for a new 0.5GWh battery production facility. Cosworth is a global technology business that used to be famous for making Formula One engines. It can design, develop and manufacture engines. Cosworth recently acquired electrification business Delta and this deal will add to the expertise.
TV programme producer Zinc Media (ZIN) is acquiring The Edge Picture Company and raising £5m at 100p a share. The Edge is based in London and Qatar and is a brand and corporate film maker. Clients include Barclays, Amazon and FIFA. In 2021, revenues were £8.2m and EBITDA was £800,000. There is initial consideration of £2.1m in cash and shares with up to £3.875m payable if a total of £5m of operating profit is made over the three years to June 2025.
Omega Diagnostics (ODX) has completed the sale of the CD4 business for up to £6.1m. The initial £1.1m has been paid. A further £4m will be paid when a clinical study is completed in Kenya. There was a monthly cash outflow of £300,000 a month from CD4. The ongoing focus will be the health and nutrition business.
Yacht services provider GYG (GYG) is asking shareholders to agree to drop its AIM quotation at a meeting on 31 August. Disappointing trading in recent years and lack of investor interest are two reasons for the proposed cancelation. Costs can be reduced by €700,000 a year. The half year trading update says that revenues are in line with expectations and the order book is strong. However, there is a lack of capital to grow the business.
Symphony Environmental (SYM) raised £1m at 18p a share from Sea Pearl Ventures and there are four million warrants associated with the placing that are exercisable at 25p each. Sea Pearl will own a 17.4% stake in the oxo-biodegradable plastics technology developer. First half revenues dropped from £4.9m to £3m due to logistics problems and orders delayed.
Piling contractor Van Elle (VANL) reported much improved figures for the year to April 2022 with revenues were 48% ahead at £124.9m, while the group returned to profit. Rig utilisations levels have improved. This year, pre-tax profit is expected to improve from £3.6m to £5m this year.
Franchise lettings group Belvoir Group (BLV) revenues increased 11% in the first half of 2022 with lettings growth offsetting lower property sales after stamp duty incentives ended. The fastest growth came from financial services, where revenues are 19% ahead.
MAIN MARKET
Ground engineering and piling business Keller (KLR) operating profit increased by 19% to nearly £50m as revenues jumped 31% to £1.38bn. Revenue expectations have been raised, but higher costs will reduce margins and there is an additional £1m interest charge, which means that the pre-tax profit forecast is cut by £1m to £101m.
Motor dealer Pendragon (PDG) has ended discussion with a potential bidder, which was potentially going to offer 29p a share. One major institutional shareholder was not supportive of the deal.
First Tin (1SN) has commenced the definitive feasibility study at the Taronga tin deposit in Australia.
Canadian Overseas Petroleum (COPL) has confirmed that the Wyoming deep discovery has total original oil in place of 993.5 million barrels. Three horizontal wells are planned for the 2022-23 drilling campaign.
News publisher National World (NWOR) increased first half revenues from £42.1m to £43.5m and the underlying pre-tax profit improved from £3.5m to £5.6m. This masks a 41% increase in digital revenues. There are £3m of annualised savings planned by the end of 2022. There is even a plan to announce a dividend with the full year results.
Andrew Hore
Quoted Micro 13 June 2022
AQUIS STOCK EXCHANGE
Psych Capital (PSY) floated on Aquis so that it can take advantage of the opportunities in the fast-growing psychedelic medicines sector. Management is seeking to invest in early-stage companies, where it can obtain a significant minority stake. Psych Capital raised £810,000 at 5p a share. Pro forma net assets are £2m. Psych Capital has cash of £872,000 following the flotation. There is an investment in Awakn Life Sciences Corp that was valued at £584,563 at the end of June 2021. The share price is declining, and it has reached C$0.96, valuing the stake at around £260,000 at the current exchange rate. The share price fell to 4p on 9 June before recovering to 4.75p (3.5p/6p). There is limited liquidity in the shares with a free float of around 11%. Fellow Aquis company Oscillate (MUSH) holds a 16.15% shareholding in Psych Capital. Chris Akers has increased his stake in Oscillate from 9.02% to 11.4%. He also has a 4.96% stake in Psych Capital.
Capital for Colleagues (CFCP) improved interim revenues from £198,000 to £216,000, while recognised fair value gains declined from £1.04m to £297,000. There were 14 investments at the end of the period and net assets were 68.38p a share at the end of February 2022.
Rural Broadband Solutions (RBBS) had 2,851 monthly fee-paying clients by mid-May. There was net cash of £1.2m at the end of 2021 and infrastructure funding is being negotiated.
Newbury Racecourse (NYR) reopened its hotel in January and more than 105,000 racegoers have visited the racecourse so far this year. There have benefits from the catering deal with Compass and new media rights arrangement start at the beginning of 2024, which will benefit that financial year. More will be spent on prize money. Newbury is debt free, and a special dividend has been paid out of proceeds from the sale of land for housebuilding. Annual dividends may recommence next year.
Quantum technology investment company Quantum Exponential (QBIT) has made three investments at a total cost of £1.16m since it floated. There are discussions with more potential investments. There has been further progress towards setting up a fund. Anthony Lyall has been appointed as investment manager and Anna Spandl as investment analyst.
Altona Rare Earths (ANR) says that it is on track for a maiden JORC resource statement for the Monte Muambe rare earths project in Mozambique. Four new drilling targets have been identified.
Ananda Developments (ANA) had net liabilities of £288,000 at the end of January 2022. There should be further news concerning the purchase of the other 50% of DJT Plants.
Tectonic Gold (TTAU) expects to deploy drill rigs in Queensland in the next few weeks following the rainy season.
RentGuarantor Holdings (RGG) has raised £1m from a 6% unsecured loan note issue, with chief executive Paul Foy subscribing for 50% of the issue. The cash will be spent on hiring staff and marketing.
Wishbone Gold (WSBN) has commenced drilling at the Wishbone II gold copper project in Northern Queensland.
Chapel Down Group (CDGP) non-exec Jamie Brooke has bought 327,000 shares at 30.48p each. Jonathan Neame has sold 2,000 shares in Shepherd Neame (SHEP) at 806p each.
Oberon Investments has increased its stake in TruSpine Technologies (TSP) from 7.93% to 10.9%.
EPE Special Opportunities (ESO) had a NAV of 307.13p a share at the end of May 2022.
Former Aquis-quoted proton beam therapy provider Rutherford Health is being placed in liquidation. There are Rutherford Cancer Centres in Newport, Reading, Liverpool and Northumberland, plus a community diagnostics centre in Somerset. It is unclear whether there will be any buyers interested in these assets. Schroder UK Public Private Trust (SUPP) bought the remaining Woodford stake at the end of 2019. It was valued in the books at £22.8m, which will be written off. That will reduce NAV by 2p a share.
AIM
Like-for-like sales growth at City Pub Group (CPC) was 5% in May and 20% ahead over the Jubilee Bank Holiday. Management took a decision to minimise price rises so that food and drink is still relatively affordable. Two new sites have been opened with two more opening over the next few weeks.
Learning and development products and services provider Mind Gym (MIND) fell into loss in the year to March 2022. Revenues were 24% ahead at £48.7m with US revenues growing even faster. Repeat revenues from customers that have bought products and services in the past three years were 86% of the total. Overheads are higher as management anticipates future growth in demand. There were also £500,000 of non-recuring costs. The investment in digital products and services will pay off in future years when profit is expected to grow sharply.
Greater demand for foreign exchange helped Ramsdens (RFX) to move back into profit in the first half. Jewellery retail and precious metals buying also grew revenues significantly. There was modest growth in pawnbroking revenues although the growth in the loan book means that there will be a higher rate of increase in the second half. Overall revenues were £29.3m, up from £19.3m, and there was a pre-tax profit of £2.2m.
Nexus Infrastructure (NEXS) improved interim revenues from £63.7m to £80.3m and the order book is 7% higher at £306.7m. Civil engineer Tamdown’s revenues were more than one-quarter higher while utilities connections business TriConnect reported a small increase in revenues. The biggest increase came from the eSmart Networks business, but that is still less than 11% of group revenues. Nexus is on course to improve full year pre-tax profit from £2.5m to £5.7m.
Open Orphan (ORPH) has an order book worth £64.25m at the end of May 2022. Open Orphan secured a £14.7m contract for an influenza characterisation study and a follow-on human challenge study. The second half is expected to be stronger than the first and the clinical trials services provider should move into profit this year.
Electrical goods retailer Marks Electrical (MRK) reported its first full year results since flotation last November. In the year to March 2022, revenues increased 44% to £80.5m. Underlying earnings were 5.01p a share and the maiden final dividend is 0.67p a share. The company is gaining market share in the domestic appliance and televisions markets and revenues have grown by one-fifth in the first couple of months of this financial year. Brand recognition is improving, but the overall market is likely to be tough. Expanding the product range is helping growth.
Interims from Hercules Site Services (HERC) reflect a period of consolidation for the staffing business. In the six months to March 2022, revenues improved from £14m to £20m, while pre-tax profit slumped from £954,000 to £31,000. Overheads were £2m higher in anticipation of growth in the coming years. The large staff supply contract for HS2 started later in the reporting period and demand will continue to grow. More suction excavators are being delivered and utilisation rates are high.
Greenland-focused AEX Gold Inc (AEXG) has signed non-binding terms for the creation of a joint venture with ACAM that will hold the group’s strategic mineral assets. ACAM will invest £18m for a 49% stake and AEX Gold will inject the non-gold assets and cover site support, logistics and overhead costs. There is an agreement to inject a further £10m on a pro rata basis as long as certain milestones are achieved. AEX Gold’s core asset is the 100% interest in the Nalunaq project, which includes a former producing gold mine.
Plant-based polymers developer Itaconix (LSE: ITX) had already warned that due to destocking 2021 revenues would fall from $3.29m to $2.6m, which is still double the 2019 figure. Itaconix remains lossmaking, but revenues should be much higher in 2022 due to the increased number of products using its ingredients. Revenues are expected to jump back to $4.7m and the loss could halve to $1m.
Rockwood Strategic (RKW) has acquired a 8.75% stake in window ventilators and parts manufacturer Titon Holdings (TON).
Northbridge Industrial Services (NBI), which is set to change its name to Crestchic, says that trading at the core power reliability business is better than the recently upgraded expectations. Previously full year earnings of 12.1p a share were forecast and this was raised to 13.4p a share.
STM (STM) pre-tax profit halved to £1.2m in 2021 and it is expected to recover to £2.9m this year. This will be helped by the completion of investment in IT that brings the personal pension businesses onto one platform. A flow of new SIPP business is anticipated.
Coral Products (CRU) has announced a final dividend of 0.2p a share, taking the total for the year to 1.1p a share. At 17.5p, the yield is 6.3%.
Eve Sleep (EVE) is outperforming a market that has fallen by 29% in the UK in the first four months of 2022 and by 37% in France. More funding is required even though Eve Sleep and a US-based investor was interested in bidding for the mattress supplier. Talks have ended but management is considering its options.
MAIN MARKET
Citius Resources (CRES) has an initial agreement for the potential acquisition of AUC Mining, which has the Kamalenge gold project in Uganda. The proposed £2m cost would be paid in shares at 4.625p each. More cash would have to be raised at the same time. Trading in the shares was suspended at 3p.
Standard list shell GS Chain (GSC) shares have reached a new high of 6.55p, having risen steadily since flotation on 13 May via an introduction at 1p a share. Net assets were less than 0.18p a share, so the share price is at a substantial premium.
Premium listed Ross Group (RGP) shares jumped from 1.45p to 1.7p following a placing raising £163,000 at 1.79p a share, which is still a premium to the higher market price. The previous placing in October was at 2.8p a share. Ross Group is effectively a shell that has an investment in an aquaculture business and is trying to develop its supply chain management business.
Andrew Hore
Quoted Micro 23 May 2022
AQUIS STOCK EXCHANGE
Nigeria-focused oil company Lekoil Ltd (LEK) made the switch from AIM to Aquis on 18 May. Trading in the shares will remain suspended until audited accounts are published. Lekoil is in dispute with Lekoil Nigeria, where it has a major interest, and former chief executive Mr Olaekan Akinyanmi, who is being funded by Lekoil Nigeria. The board wanted shareholders to have a trading facility, while the litigation is being pursued. The main source of assets will be the recovery of intercompany debts and there is likely to be little value in the oil and gas operations.
Valereum (VLRM) is still going through the regulatory process to acquire 90% of the Gibraltar Stock Exchange. There is a government review of the Gibraltar financial services community.
Quantum Exponential (QBIT) is investing £450,000 in Brighton-based Universal Quantum Ltd, which is trying to build the first million quantum bit quantum computers. The cash will help to develop the processing unit. The investment is via an advanced subscription agreement, and this will be converted into shares after one year or if there is a fundraising of at least £10m.
Hemp and CBD wellness products company Yooma Wellness Inc (YOOM) generated revenues of $10.2m in 2021, while the loss was $35.7m, including $22.5m of asset write-downs and £1m of listing costs. The company’s products are being rolled out in additional high street and online stores. The US operations are being rationalised and the focus moved to other markets.
SuperSeed Capital Ltd (WWW) made two investments in the first quarter of 2022. Investors in the company’s fund during January have already made a 43% gain. There was seed capital provided to the two investments. Ai Build is a software developer for 3D printing additive manufacturing, which will enable the 3D printing of larger objects. ThingTrax is developing technology that will help manufacturers to monitor and automate production.
RentGuarantor Holdings (RGG) has obtained a non-exclusive to use the Propertymark trademark in the UK. Propertymark has 18,000 of property letting and sales businesses. Propertymark will promote RentGuarantor rent guarantees for tenants.
Major shareholder Neo London Capital is providing a lending facility to Black Sea Property (BSP) to finance the exploration of property development opportunities.
Wishbone Gold (WSBN) has completed the survey of additional targets at the Red Setter project in Australia. The first phase of drilling at Red Setter is 3,000 meters.
Ace Liberty and Stone (ALSP) has sold a flat in Chelsea for £2.185m, which is above the book value of £2.1m.
Oscillate (MUSH) has a stake in Psych Capital, which is joining Aquis on 25 May.
The incoming finance director Robert Smith has bought 500,000 Chapel Down (CDGP) at 42.5p each.
AIM
Fishing tackle retailer Angling Direct (ANG) managed to beat previously upgraded forecasts for the year to January 2022. Revenues increased from £67.6m to £72.5m even though online sales fell. UK online sales increased but European online sales because of difficulties with prompt delivery. The new Netherlands distribution centre will help. There was £16.6m in cash at the end of January 2022. Pre-tax profit jumped from £2.7m to £4m, but this is not expected to be maintained. Singer forecasts a pre-tax profit of £2.8m on revenues of £82m in 2022-23.
Compliance and energy saving services provider Sureserve (SUR) continues to grow and it is set to supplement this growth with acquisitions in the energy efficiency and renewables sectors. Interim revenues from continuing operations increased by 24% to £126.2m, while pre-tax profit was one-third higher at £4.3m. The non-core fire and lift businesses are profitable, and they made a slightly higher pre-tax profit of £1.24m on revenues of £17.3m, which is not included under continuing operations. Those non-core businesses have net assets of £13.1m. Assuming Sureserve receives a similar amount when they are sold this would boost the cash position. There was £8.86m in the bank at the end of March 2022.
Designer and supplier of automotive interior components CT Automotive (CTA) reported its maiden full year results as an AIM company. There was a strong recovery in the first half, but component shortages have reduced the demand from car manufacturers in the second half. Even so, full year revenues recovered from $109.9m to $132.9m, although the company remained loss making. There is a strong order book, but revenues are still likely to be hit by lack of demand due to component shortages. These problems could last for most of this year with automotive volumes set to recover in 2023. A new factory in Mexico should be open in July.
Vela Technologies (VELA) invested £750,000 in convertible loan notes in EnSilica, which is about to join AIM. This investment should convert into 1.75 million shares, which is a 2.3% stake in the integrated circuits designer and supplier.
Chariot Ltd (CHAR) has raised £20.4m ($25.5m) at 18p a share and more could come via an open offer. This will help Chariot to make progress with the Anchois gas development in Morocco. Some of the cash will go on renewables projects.
Begbies Traynor (BEG) says 2021-22 results will be comfortably ahead of expectations and insolvencies are increasing.
Digital coupons and loyalty technology provider Eagle Eye (EYE) says that the roll out of services to a US retailer has helped 2021-22 EBITDA to potentially be 10% higher than expected.
MAIN MARKET
Standard list shell BSF Enterprise (BSFA) completed the reverse takeover of Newcastle-upon-Tyne-based tissue engineering 3D Bio-Tissues Ltd for £2.5m in shares. There was £1.75m raised in a placing at 7.37p a share, which is the same price at which the 33.9m consideration shares were issued. That valued the company at £6.32m on readmission. The share price ended the week at 9p. There are three main types of technology that are being developed. City-mix is a serum-free media for culturing muscle and fat cells in an animal-free process that can be used to grow meat and leather in a laboratory. There is less variation between batches than for some rivals and it could cost less. Another technology is based on Lipopeptide Etsyl, which helps to increase collagen production in human skin cells, and it can be used dermatological products. This will be sold as an ingredient to skincare product manufacturers. The third technology is tissue templating. This includes the original substitute cornea technology, as well as other uses.
In the year to February 2021, Braemar Shipping Services (BMS) expects an underlying operating profit of £9.8m, up from £7.7m. The annual dividend will be two fifths higher at 7p a share. The operating profit expectations for 2022-23 have been upgraded from £10m to £12m.
Macfarlane Group (MACF) is buying German protective packaging distributor PackMann. This is a profitable business, and it will help Macfarlane to expand in northern Europe.
Nanoco (NANO) has received an official decision that its 47 disputed patent claims are valid. This is an important step in the legal proceedings against Samsung, which used its quantum dot technology without agreement. There is still some way to go, but a settlement could generate more than £100m for Nanoco, even after the litigation funder gets its payment.
Net Zero Infrastructure (NZI) is in talks to acquire specialist equipment hire company Taylor Construction Plant and Solar Highways. Trading in the shares has been suspended.
Andrew Hore
Quoted Micro 9 May 2022
AQUIS STOCK EXCHANGE
In 2021, Newbury Racecourse (NYR) is paying a special dividend of 89.6p a share. The £3m payment comes after the receipt of the final £10.7m from the sale of housing development land. Newbury Racecourse increased turnover by 75% to £14.8m as racing returned to the course. There is still potential for further recovery this year. Attendances increased from 12,000 to 105,000. The hotel reopened in January 2022. There was a swing from £2.17m loss to an underlying pre-tax profit of £333,000.
Quantum Exponential (QBIT) is investing £406,000 in Aegiq Ltd, a photonics company using quantum technologies in the cybersecurity market. That gives it a 4.06% stake. Helium Special Situations has reduced its stake from 4.57% to 1.52%.
Goodbody Health Inc (GDBY) reported better than expected revenues for 2021. The CBD products and testing company made an underlying loss of £900,000 on revenues of £17.1m. Arden forecasts a £5.1m profit this year.
VSA Capital (VSA) has received a settlement of outstanding fees of £153,000 from client Anglo African Agriculture in the form of 3.82 million shares. This gives VSA a 15.3% stake plus warrants and convertible loan notes.
Gunsynd (GUN) has terminated the disposal of Oyster Oil and Gas to Sajawin.
Clarify Pharma (PSYC) had net cash of £1.3m at the end of April 2022. Investment opportunities in the psychedelics market are being assessed.
Apollon Formularies (APOL) has acquired intellectual property and patents from Aion Therapeutic for £96,000 and 4.35 million shares. It will also pay a royalty fee of 4% on net revenues from products based on these patents. The patents cover potential cancer treatments.
ChallengerX (CXS) has appointed Olivia Edwards as chief executive and Nicholas Lyth as finance director.
Phase 1 assay results from the Monte Muambe project held by Altona Rare Earths (ANR) show significant levels of rare earths.
Coinsilium (COIN) has been appointed as adviser to Silta Finance and entered into an agreement to purchase $75,000 of future SILTA tokens. Silta is building a technology to connect decentralised finance to infrastructure project developers.
Capital for Colleagues (CFCP) has sold its remaining stake in builder’s merchant Merkko Group for £378,000.
Rogue Baron (SHNJ) has received the first UK order for Shinju and Shinju 8-year old whisky.
S-Ventures (SVEN) chairman David Mitchell bought 57,959 shares at 32p each. Chris Akers has increased its stake in Quetzal Capital (QTZ) from 19.1% to 20.1%. John Mahtani reduced his stake from 5.71% to 3.83%.
AIM
Online retailer of building materials CMO Group (CMO) continues to grow on the back of a buoyant market as well as gaining market share. The online share of the sector remains relatively low. The second half growth was not as fast as in the first half. In 2021, revenues grew 46% to £76.3m. There is organic growth supplemented by acquisitions. CMO moved from loss to an underlying pre-tax profit of £1.4m. Net cash was £6m. Following the acquisition of JTM Plumbing Plumbingsuperstore.co.uk is being launched later this year. First quarter trading has continued to be strong with like-for-like growth of 3%.
Neonatal intensive care medical devices supplier Inspiration Healthcare (IHC) increased full year revenues from £37m to £41.1m. Acquisition contributions offset the one-off Covid ventilator revenues in the previous year. Pre-tax profit improved from £3.13m to £3.96m, although earnings fell 12% to 6.1p a share because of the additional shares issued for acquisitions. The company’s order book is strong.
In 2021, targeted digital advertising services provider Dianomi (DNM) revenues grew from £28.4m to £35.8m, even though Asia Pacific revenues fell from £1.72m to £1.18m due to the ASX website stopping having advertising content. Underlying pre-tax profit moved from £2m to £2.9m – share based payment charges and float costs led to a loss being reported – and it is expected to increase to £3.6m this year. The average spend of the top 100 advertisers increased 27% to £280,000 each. Net cash was £10.3m at the end of 2021.
In 2021, Intelligent Ultrasound (IUG) reported revenues 47% higher at £7.6m, mainly from ultrasound simulation products, while the cash outflow from operations was £2.3m. AI revenues remain modest, and it will take time for them to build up. Cenkos upgraded its 2022 revenues forecast from £9m to £10m, but the cash outflow will be similar.
Plastics and packaging supplier Coral Products (CRU) is using some of its cash pile to acquire Film & Foil Solutions, a supplier of flexible packaging film used for food, books, carpets and for cable tapes. The initial payment is £1.35m in cash, plus £750,000 in shares at 15.5p each. There is just over £900,000 that could be payable based on the settlement of a contract dispute and an insurance payment. The acquired business made an underlying profit of £541,000 in 2021.
Energy efficiency as a service provider eEnergy Group (EAAS) has been hit by contract delays. That means that 2021-22 EBITDA could be £3m and not £4.4m as previously expected. A new finance director is being appointed.
Green hydrogen production developer ATOME Energy (ATOM), which was spun out of President Energy (PPC) at the end of 2021, has secured a major 60MW power purchase agreement with ANDE, the national power supplier in Paraguay. Hydrogen production could commence in Paraguay in the first quarter of 2023.
MAIN MARKET
LED lighting and wiring accessories supplier Luceco (LUCE) will report revenues around £15m lower than expected due to overstocking. This will knock £10m off operating profit. Price rises are offsetting the effect of inflation.
Castings (CGS) 2021-22 results will be slightly ahead of expectations. Demand for commercial vehicles remains strong, but there is still uncertainty about the ability produce heavy trucks.
Kendrick Resources (KEN) was formerly AIM-quoted BMR Group, which left AIM in August 2018 after problems with the progress of the Kabwe project in Zambia. Kendrick still has a 11% royalty interest in Kabwe. Kendrick Resources has acquired Northern X Finland and Northern X Scandinavian. In Finland, there is an exploration licence at the Koitelainen project and two licences at the Karhujupukka project. There are two projects in Sweden: the Airijoki project and the Central Sweden project. There is also an option over three projects in Norway.
Gresham Technologies (GHT) has secured a contract with an existing bank customer worth up to £6.3m over a period of five years. The company’s Clareti software will be used across the whole UK business of the bank.
Andrew Hore