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Quoted Micro 4 November 2024
AQUIS STOCK EXCHANGE
Rebel shareholders failed to win any of their three resolutions, including the removal of the chief executive, at the requisitioned general meeting of ProBiotix Health (PBX). Broker Peterhouse said that major shareholder OptiBiotix Health (OPTI) was not allowed to vote its shares at the meeting because of the relationship agreement from the flotation of the probiotics developer. OptiBiotix Health owns 53.5 million shares, and the votes were lost by less than 36 million shares.
Surgical treatments provider One Health Group (OHGR) interim revenues were more than one-fifth higher at £13.4m. New patients increased by 29%. The second half is likely to better than expected. That means that full year EBITDA should be higher than £1.9bn. There was cash of £4.9m at the end of September 2024. A move to AIM is being considered.
Aquis Exchange (AQX) and Cboe Europe are assessing a joint bid to provide an EU consolidated tape of stock trades. The European Commission has decided to create a single entity to operate a real-time, trade consolidated tape. The European Securities and Market Authority will select the business to take on the role. The plan is for the two companies to set up a joint venture called SimpliCT, which will be based in the Netherlands, to bid for the role of equity consolidated tape provider.
Luxury prize draw organiser Good Life Plus (GDLF) has achieved £330,000 in monthly recurring revenues. There are more than 40,000 subscribers and churn has been reduced. In the six months to July 2024, revenues were £1.69m. There was a £2.21m cash outflow from operating activities. There was a fundraising after the balance sheet date. Richard Johnston has been appointed as finance director.
Macaulay Capital (MCAP) investee company Vale Foods has repaid a £125,000 loan and this has been reinvested in shares in the latest fundraising of £430,000. A £100,000 loan has been made to another investee company.
Health IT provider DXS International (DXSP) has won its first NHS commercial contract for its AI ExpertCare Clinical Decision Support product. In the year to April 2024, revenues were 2% ahead at £3.31m, There was an impairment charge of £4.38m. Even without that write-down the company fell into loss. Chairman Bob Sutcliffe bought 50,000 shares at 1p each and 133,333 shares at 1.5p each. He owns 1.74% of the company.
KR1 (KR1) had net assets of 62.15p/share at the end of September 2024. The income from digital assets was £592,000 during September.
Social commerce platform investor WeCap (WCAP) says WeShop is considering a listing. If its convertible loans are converted into shares WeCap would own 16% of WeShop. The investment in Bio2pure of £100,000 has been written down to nil. At the end of April cash was £49,000 and net assets were £7.39m.
Rogue Baron (SHNJ) says Sinju Japanese Whisky will be available in the US in the third week of November. The latest shipment of 800 cases has been presold.
Marula Mining (MARU) is stockpiling ore at the Kinusi copper mine. Samples have been sent to South Africa for test work and the results will help to design the first phase of the processing facilities. Three trial shipments are about to be sold.
Fenikso (FNK) is launching a share buyback of up to 49.3 million shares. A further $404,000 has been received in loan repayments. The remaining loan is worth nearly $39m.
Chris Akers’ stake in Oscillate (MUSH) has been reduced from 5.94% to less than 3%. Peterhouse Capital has also reduced its stake below 3%. Jonathan Neame has bought 7,000 Shepherd Neame (SHEP) shares at 569.5p each.
Investment Evolution Credit (IEC) raised £475,000 at 1p each and there is a broker option to issue up to three million more shares.
Unigel Group (UNX) is paying an interim dividend of 1.5p/share on 22 November.
First Sentinel has resigned as corporate adviser of Vulcan Industries (VULC).
AIM
Energy supplier and energy efficiency services provider Good Energy (GOOD) received an unsolicited bid from Dubai-based Esyasoft Holding Ltd. Esyasoft offers a range of products. They include the Smart Grid Suite, which is a cloud-based integration platform that manages workflow and communications between utilities and meters and an energy mobility business.
Payments technology developer Eckoh (ECK) is recommending a 54p/share bid from funds managed by Bridgepoint Advisers II. The bid values Eckoh at £169.3m. The share price has not been at that level since the end of 2022, but it is the price indicated back in August. The bid values Eckoh at 20 times prospective 2025-26 earnings.
Nexus Infrastructure (NEXS) is spending some of its cash pile on Coleman Construction & Utilities, which is involved in civil engineering for water and marine sectors. This diversifies the business away from housebuilding infrastructure. The purchase will cost up to £4.4m and be immediately earnings enhancing – EBITDA was £700,000 last year. Trading is in line with expectations and the loss should be halved to £2.4m in the year to September 2024. A small loss is still expected this year.
Emmerson (LON: EML) says it filed an appeal against the unfavourable recommendation for its ESIA application for the Moroccan potash project, but the regional authorities say that they cannot examine the ESIA submission again. Emmerson subsequently notified the Moroccan government of an investment dispute and argues that the government is violating an agreement between the UK and Morocco. The dispute can be submitted to the International Centre for the Settlement of Investment Disputes. Prior to this, the company is seeking cash compensation from the government. Emmerson is trying to reduce its cash burn, but that will mean that there will be no progress with the development of the project. Two non-executive directors are stepping down and the two remaining non-executives will take fees in shares, while the chief executives pay will be reduced by two-fifths.
Construction dispute and expert witness services provider Diales (DIAL) says that there will be a small improvement in revenues and profit in the year to September 2024. Pre-tax profit will be at least £1.1m, up from £1m. The cost base has been reduced. Net cash is £4.3m. Diales is pulling out of the US. It will still have a Canadian operation, and South America is handled from Spain.
MicroSalt (SALT) has received an initial purchase order for 50,000lbs of low-sodium salt from a major food and drink manufacturer for one of its product lines. Annualised volumes should be 200,000lbs and there could be orders for two other products. There is also a follow-on order from a B2B customer and the 63,860lbs will be delivered in January. Two other B2B orders have been won.
Tlou Energy (TLOU) is seeking shareholder approval at its AGM to leave AIM. The shares will still be traded on the ASX and the Botswana Stock Exchange. Interest in the company has dwindled and the departure will save money. UK shareholders are offered the chance to transfer their holding to the ASX depositary in exchange for ASX-listed shares at no cost. Tlou Energy released a first quarter update indicating progress with the Lesedi CBM gas-to-power project in Botswana. First electricity sales are expected in the middle of next year. There was an operating cash outflow of A$800,000, plus A$1.7m of capital investment in the period.
Cleaning services provider React (REAT) has made the earnings enhancing acquisition of 24hr Aquaflow Services for £5m plus contingent payments of up to £2.4m. It will still be enhancing after a £1.1m placing at 81p/share. 24hr Aquaflow Services is a drainage and plumbing services provider. This adds to group services.
Shield Therapeutics (STX) generated $7.2m from 43,500 ACCRUFeR prescriptions in the third quarter, which was slightly lower than forecast. The average net selling price is $167, and this could rise to $192 in the fourth quarter. Total nine-month revenues are $20m and the 2024 figure should hit $31.5m. Management admits that more cash will be required, and costs are being reduced. Sallyport is providing a $15m facility, up from $10m previously, and AOP Health has agreed to subscribe $10m for shares at 4p each.
Prospex Energy (PXEN) says third quarter gas production of its Italian interests, where it has a 37% stake, was 76,910scm/day. Prospex Energy’s net revenues for the quarter were €1m, which is a record. There should be a further increase in gas production in the fourth quarter.
Deltic Energy (DELT) says wireline logging and fluid sampling confirm the gas discovery at Selene in the North Sea, where it has a 25% working interest. The reservoir quality is better than expected, but it is deeper than anticipated which means that recoverable gas volumes of 131bcf are lower than previous estimates of 320bcf. This should still be economically viable. Further work is required, though.
Transport technology services provider Microlise Group (SAAS) has been hit by a cyber security incident. This has disrupted services, and they are currently inactive. Cyber security specialists have been appointed.
MAIN MARKET
Tin projects developer First Tin (1SN) has raised £8m at 6p/share. The cash will go towards the Taronga project in Australia and funding the enhancements highlighted in the definitive feasibility study. This could increase the project NPV to A$400m. The environmental impact statement will be completed so that initial project work can commence. There will also be cash to progress permitting at the Tellerhauser project in Germany.
Mears (MER) says trading is strong and margins are improving. The 2024 figures will be better than expected with revenues of £1.13bn and pre-tax profit of at least £60m.
A general meeting has been requisitioned at nanomaterials developer Nanoco (NANO) by Milwood Fund, which wants two of its employees to be given board seats. It appears Milkwood may want to sell assets and turn Nanoco into a shell.
Motor dealer Caffyns (CFYN) is selling its freehold premises in Lewis to Lidl for £4.65m, which is equal to book value. The pension fund will receive £2.4m and the rest will reduce debt. The Lotus dealership will be relocated.
Critical Minerals (CRTM) is making progress with the Molulu copper cobalt project in the DRC and is on course to start delivering ore. Two additional mineralised zones have been identified. Terms of a new offtake agreement have been secured with OM Metals following good copper grades from ore testing. Since the balance sheet there has been a £455,000 investment by NIU Invest.
Andrew Hore
Quoted Micro 3 June 2024
AQUIS STOCK EXCHANGE
Time to ACT (TTA) has joined the Aquis Stock Exchange and plans to develop a group of engineering-based energy transition businesses. Middlesborough-based Time to ACT has two subsidiaries. Diffusion Alloys is a long-established diffusion coating business. The technology provides an intermetallic layer that protects metal components at high temperatures. GreenSpur is a much newer business that is developing direct drive generator technology for use in wind power that does not require rare earths for magnets. It uses axial flux technology that utilises ferrite magnets, which are less expensive. It is also copper-free and uses aluminium instead. The share price ended the week at 50p.
Arbuthnot Banking Group (ARBB) has decided to pay a special dividend of 20p/share on top of its interim dividend of 20p/share, up from 19p/share in 2023. The two dividends will be paid at the same time on 20 June.
Digital assets investor KR1 (KR1) had net assets of 95.43p/share at the end of April 2024. Celestia accounts for 34.2% of the portfolio and Polkadot for 14.3%. There was £1.16m of income generated from digital assets during the month.
Marula Mining (MARU) has signed an offtake agreement with Fujax UK for manganese ore production from the Larisoro mine in Kenya. The agreement covers an initial 2,000 tonnes of manganese ore with further minimum monthly deliveries of 5,000 tonnes, but nominal monthly sales of 20,000 tonnes/month for 12 months. Deliveries have started. Assay results from Larisoro show an average grade of 35.73% manganese.
Unigel Ltd (UNX) increased full year pre-tax profit from £442,000 to £815,000 on revenues improved from £18.8m to £28.5m. Although this is not like-for-like. There was a like-for-like decline in profit. The manufacturer of telecom fibre optic cables materials says its market declined last year. There are signs of recovery.
Valereum (VLRM) chairman James Formolli has subscribed £2m for shares at 3.6p each. Instead of warrants he will receive 15 million GATE tokens. Valereum has signed a strategic partnership with Securities Trading Technology Mauritius to improve Valereum’s core technology. The focus is Bridge Digital FMI, the company’s blockchain digital financial markets infrastructure.
Apollon Formularies (APOL) shares slumped 70% to 0.0075p after shareholders voted in favour of leaving Aquis.
Capital for Colleagues (CFCP) reported an interim pre-tax profit of £985,000, up from £933,000. NAV was 87.32p/share at the end of February 2024. A 2p/share dividend has been subsequently paid.
BrightGrow SSAS has a 7.08% stake in investment company Gledhow Investments (GDH), which reported a decline in net assets from £1.6m to £1.3m, including cash of £217,000, at the end of March 2024.
Cooks Coffee (COOK) increased full year group revenues by 19% to NZ$4.7m. Growth was in the South and eastern England. Four new stores have opened in UK and one in Ireland in April and May. In the past eight weeks, UK store sales were 27.3% higher.
Vinanz Ltd (BTC) is launching a new Bitcoin mining centre in Iowa, where 85% of electricity supply will come from renewables. An order for 20 Bitmain Antminer S19J Pro+ 120TH bitcoin miners. More will be ordered once these are up and running efficiently. Vinanz generated income of £200,000 in the six months to February 2024, while revaluation of assets and disposal gains enabled Vinanz to make a pre-tax profit of £175,000.
Super Seed Capital (WWW) improved NAV by 5p/share to 116p/share in the first quarter of 2024. The company expects to make up to three new investments in the second quarter.
Chairman Geoffrey Miller has increased his shareholding in TruSpine Technologies (TSP) from 7.24% to 9.03% after he acquired 2.5 million shares at 1.5p each from LCS. AIM-quoted Vela Technologies (VELA) has cut its stake from 9.9% to 4.3%. Constantine Logothetis has increased his stake in SulNOx Group (SNOX) to 24.1%.
S-Ventures (SVEN) has delayed the announcement of its figures for the 15 months to December 2023 because the audit will not be completed by the end of June.
AIM
Cancer treatments developer Extruded Pharmaceuticals reversed into Amur Minerals Corporation to form CRISM Therapeutics Corporation (CRTX) on 31 May. According to the admission document, the estimated value of the company after the acquisition would be £7.5m at 23p/share following a one-for-160 share consolidation. That valued the all-share acquisition of Extruded Pharmaceuticals at £5.5m. The opening price was 24p, but it ended the day at 11.5p.
Digitisation services provider TPXimpact (TPX) says 2023-24 revenues were slightly above expectations at £84m. EBITDA margin was in the middle of the 5%-6% range. Net debt has fallen to just over £7m. There was £139m of work won last year. There could be some short-term disruption from the General Election.
Cleaning services provider React (REAT) had a strong first half and it is well on the way to making the full year forecast. It continues to win new contracts and renew existing contracts at similar margins. Interim revenues grew from £9.3m to £10.3m, while pre-tax profit improved £800,000 to £1.1m. The integration and digitalisation of LaddersFree is progressing and that will improve efficiency. Net cash was £700,000 at the end of March 2024.
Video streaming technology provider Aferian (AFRN) reported a 21% decline in annual recurring revenues to $14.7m at the end of November 2023. Total 2022-23 revenues fell from $91.1m to $47.8m, although software sales improved, and Aferian moved from profit to loss. Underlying cash flow fell from $8.9m to $3.2m. Net debt was $6.1m at the end of 2023. Cost savings are being made. Chief executive Donald McGarva will leave in October.
Online building materials retailer CMO Group (CMO) reported a 14% drop in revenues to £71.5m with plumbing sales holding up better than other sectors. There was a swing from a pre-tax profit of £175,000 to a loss of £2.33m. Net debt was £600,000. The tiles market continues to decline, but there are signs of recovery in the overall market. Like-for-like sales orders were 18.2% lower, and the second quarter decline has slowed to 7.9%.
Oil and gas company Prospex Energy (PXEN) says current gross production of the PM-1 facility at the Selva Field – 37% interest – is 2.8mmcf/day. This is generating free cash flow of more than £6,000/day. The operator is Po Valley Energy. The Italian government has become more positive about oil and gas exploration. The permitting process for additional wells is progressing.
Revolution Bars (RBG) has moved its general meeting date to 14 June. This is to gain shareholder agreement to raise up to £12.5m via a placing and seven-for-eight open offer at 1p/share. The board does not believe that the approach from Nightcap (NGHT) can be delivered in a timely manner, so it is going ahead with its restructuring proposals.
Roebuck Food Group (RFG) has sold its dairy division for €1.3m net. This business is loss making. The remaining business is involved in milling and importation of food and ingredients.
Oil and gas producer Longboat Energy (LBE) says net production at the Statfjord satellites has been disappointing this year. Two out of five redevelopment wells are still not producing. Average production was 401boe/day in the first four months of 2024 rising to 544boe/day so far in May. Further capital expenditure is required. Longboat Energy is reducing costs and additional funds will be required. A share issue is an option.
Trading in Trafalgar Property (TRAF) shares was suspended after the company confirmed it is negotiating a reverse takeover of Ecap Esport. At the end of September 2023, Ecap Esport had net assets of £2.67m, including intangible assets of £3.94m, and its ultimate parent company was Esboz Ltd which sold the intangible assets to the company.
Insig AI (INSG) has taken a 5.45% stake in AI and blockchain company ImpactScope OU. Insig AI will sell its Greenwashing Identifiet technology to asset managers. The payment was 900,000 shares at 13.75p each and Insig Ai has an option to subscribe for more shares. New Insig AI executive chairman Richard Bernstein has subscribed £100,000 at 20p/share.
Premier African Minerals (PREM) has paused mining at the Zulu lithium and tantalum project in Zimbabwe. This will enable the installation of an additional conditioning cell and it should be completed by 10 July.
Low sodium salt developer MicroSalt (SALT) has made strong progress over the past year, including the flotation on AIM. The 2023 results announced today represent a period prior to flotation. MicroSalt was still in a period of building up its customer base and reported a loss of £3.5m.
MAIN MARKET
First Tin (1SN) has acquired exploration licence 9200 to broaden the area covered at Taronga in Australia. There has been tin production in the area in the past. Soil sampling results have extended the Pound Flat target area slightly.
Publisher National Word (NWOR) increased revenues by 18% in the first 21 weeks of the year. That includes contributions from Insider Media and Midland News Association that were acquired last year. There is net cash of £10m.
Andrew Hore
Quoted Micro 12 February 2024
AQUIS STOCK EXCHANGE
RentGuarantor (RCG) 2023 revenues were 3% ahead of Zeus forecasts and expects to upgrade its 2024 forecast in April after the accounts are released. The 2023 revenues were 73% higher at £742,000. There was a 57% increase in tenant contracts to 1,124. A new insurance partner has increased insurance cover for rent arrears at a lower cost. Zeus has an estimated discounted cash flow valuation of 303p/share. The current 2024 forecast is revenues of £3.6m and breakeven.
All Things Considered (ATC) has acquired a 50% stake in Mckeown Asset, which has concert and festival management interests, as well as 40% of Something Records and 10% of Brighton venue Concorde 2 (it has an option to increase the stake to up to 70%). The initial payment is £475,000 in cash and James Mckeown intends to spend £25,000 in All Things Considered shares. There is potential deferred consideration of £200,000. Mckeown Assets NAV was £243,000 at the end of April 2023, including investments valued at £125,000.
EPE Special Opportunities (EO.P) had an NAV of 324p/share. Holdings in Atlantic Credit Opportunities Fund and Prelude Structured Alternatives Master Fund have been sold and EPIC Acquisition Corp is being wound up because it failed to find a suitable acquisition. There was cash of £15.3m at the end of January 2024. The £4m of unsecured loan notes has been extended to 23 July 2024. There are 12.5 million ZDP shares in issue that mature at the end of 2026.
VSA Capital (VSA) and Andrew Gerrie and Alison Hawksley have settled their legal dispute with Silverwood Brands (SLWD) that relates to 2.28 million shares that were transferred from the two individuals to VSA Capital. The agreement should enable the transaction to sell Lush shares to Silverwood Brands to be unwound.
Investment Evolution Credit (IEC) says that it should take between ten and twelve months to gain FCA authorisation to provide consumer loans. It previously thought that it would take up to 18 months. The loans will be offered at annual percentage rates of between 19.9% and 59.9%. This is expected to improve revenues and profit. Investment Evolution Credit has launched an offering of up to £100m of 15% fixed rate unsecured bonds that last five years. This will fund the US loan portfolio and then UK loans when approvals are granted.
The NAV of Gledhow Investments (GDH) fell from £1.7m to £1.41m at the end of September 2023, including £174,000 in cash. The cash figure has increased to £280,000. There is 51% of the investment portfolio invested in AIM, one-third in Aquis and the rest in pre-IPO investments.
Diagnostic products developer EDX Medical Group (EDX) is raising £4.01m via a subscription at 12p/share, which is a premium to the market price. Founder Professor Chris Evans subscribed for 6.25 million shares. The other investors were high net worth individuals.
Oscillate (MUSH) has a 12.75% stake in Psych Capital (PSY). The investment company is pleased about the news that Psych Capital has been awarded a grant for a phase 1 POC study in Israel of psilocybin-assisted therapy for anorexia nervosa patients.
Marula Mining (MARU) has amended the terms of the Q Global Commodities subscription of up to £3.75m at 3.75p/share so that the money can be subscribed by another affiliate. This cash will be invested in battery metals mining projects in Africa. There is an option to subscribe up to a further £4.78m at 10p/share.
Substrate Artificial Intelligence (SAI) has an investment agreement with Indico Investments and Management, which can provide up to Euro2m with shares issued at a discount of 10% to the relevant share price. There is 2% commission on the total amount, plus 15% commission for each capital increase.
Newbury Racecourse (NYR) non-executive director Dominic J Burke bought 3,000 shares at 700p each, taking his stake to 6.51%. Arbuthnot Banking Group (ARBB) chairman and chief executive Sir Henry Angest acquired 100,000 shares at 990p each, taking his stake to 57.3% of the voting shares.
Clean Invest Africa (CIA) has raised £200,000 at 0.35p each.
Alex Albertini has been appointed as a non-executive director of SulNOx Group (SNOX). He has experience in the shipping industry.
AIM
Adam Wilson is stepping down as chief executive of coal supplier Bens Creek (BEN) once a replacement has been found. Lower metallurgical coal prices led to a shortage of cash last year and $13 of convertible loan notes were issued to 29.9% shareholder Avani Resources. That cash should have lasted until the end of 2024. The company blames poor weather in West Virginia for interrupting production and delaying trains transporting coal. Avani Resources has offered another $5m as a working capital facility. While details are worked out Avani has advanced $1.25m. A 12-month offtake agreement for 40,000 short tons of coal is being negotiated with Avani Resources.
Futura Medical (FUM) says 2023 product revenues were around £3.1m following the launch of erectile dysfunction treatment Eroxon in the UK and Belgium. It has already built up a 20% market share. A $4m upfront payment from Haleon for US rights will be recognised in 2024. There was cash of £7.7m at the end of 2023.
Redx Pharma (REDX) is selling global rights to the preclinical-stage KRAS (Kirsten rat sarcoma virus) inhibitor programme to Jazz Pharmaceuticals for an upfront payment of $10m and potential milestone payments of up to $870m. Redx Pharmaceuticals should have enough cash to get into 2025.
In-game advertising technology provider Bidstack (BIDS) has issued additional convertible loan notes to Irdeto because it has not been able to provide information to Bidstack to publish a shareholder circular. Shareholder approval is required for the convertible issue. Bidstack had drawn down £600,000 from the convertible loan note facility but does not expect to make any more draw downs. The €3m payment from commercial partner Azerion is running out with cash of £1.4m at the end of January and this will run out by the end of March. A strategic review has been initiated.
Building products supplier Alumasc (ALU) has traded strongly, even though the underlying markets, particularly housebuilding, have been weak. Interim revenues increased 6% to £47.8m and pre-tax profit was 14% higher at £6.3m. Water Management increased its profit contribution with recent acquisition ARP only becoming part of the group late in the period. New products helped the housebuilding division. Additional costs on sales meant that the building envelope division profit was lower. A major export order has been delayed, but full year pre-tax profit could still improve from £11.2m to £12.1m.
Cleaning services provider React (REAT) increased its pre-tax profit from £700,000 to £1.8m in the year to September 2023. Revenues grew by 43% and there was a full contribution from the LaddersFree acquisition. Net cash is £1.3m. Current trading is at record levels. Pre-tax profit is expected to grow to £2.1m this year. This has been trimmed because of additional investment in systems to cope with further growth. Tax losses are running out, so the reported earnings will be lower despite the underlying progress.
Semiconductors developer Sondrel (SND) revealed that it had received £1.5m form the customer where payments had been delayed. This has enabled deferred payments to be made by Sondrel. New business opportunities are being negotiated. Even so, Sondrel needs to raise more cash before the end of March to put it on a sound financial footing.
Bushveld Minerals (BMN) has suspended full year guidance until it receives funds from Southern Point Resources relating to last year’s fundraising. Full year production fell 3% to 3,714mt, but sales rose 13% to 4,051mt. However, production has been affected by the lack of cash and it fell to 267mt in January. Southern Point Resources owes more than $10m and claims processing delays and the default of a funding partner have delayed the payment. The payment should be made by the end of February.
Cloud computing services provider Beeks Financial Cloud (BKS) has secured a significant multi-year contract with one of the world’s largest global exchange groups. The contract requires regulatory approval so it may not make a contribution in the year to June 2024. The value of the deal was not disclosed but it could be worth £3m or more each year. Another contract has been increased in size. Canaccord Genuity is maintaining its 2023-24 pre-tax profit forecast at £4.1m and increasing the 2024-25 figure from £5.3m to £6m.
Verditek (VDTK) has agreed terms to sell its solar business and become a shell. The buyers are the holders of secured convertible loan notes in return for the surrender of £528,340 loan notes and £50,000 in cash. The company will transfer the shareholder loan to the new company for nominal consideration. The bondholders are providing Verditek with a loan facility of up to €100,000 to fund the operating costs of the solar business. If the deal does not go ahead by the end of February Verditek will be running out of cash. A new management team is interested in joining Verditek and there are plans to raise £300,000.
RF components and systems developer Filtronic (FTC) has won a £7.8m contract for ground station antenna amplifiers for a leading global supplier of LEO satellite communications equipment. It also released interims with revenues 1% ahead at £8.5m. The cost base has been increased to cope with future growth, so there was a swing from profit to loss. Cavendish has raised its full year revenues expectations from £20.5m to £23.5m and pre-tax profit estimate has more than trebled from £800,000 to £2.5m.
Helium One Global (HE1) says Itumbula West-1 has flowed a high concentration of helium to surface. A measured helium concentration of up to 4.7% equates to nearly 9,000 times normal background levels. The well results will be evaluated. The company raised £4.7m at 1.5p, which is still a 650% premium to the share price prior to positive drilling news.
Artemis Resources (ARV) has discovered spodumene bearing pegmatites with Li2O grades of up to 1.82% at the Mount Marie prospect in the Greater Carlow project. This is the first tangible proof of spodumene bearing pegmatites and it could be part of a lithium corridor according to WH Ireland. Assay information is being assessed and should be published on 13 February.
MAIN MARKET
S and U (SUS) says tough trading conditions are hampering trading. Advances by motor finance provider Advantage were 7% lower than last year. In the second half of 2023-24 90% of due payments were made, down from 94% in the previous period. This means that pre-tax profit will be 10%-15% below expectations of £38m. Net receivables for Aspen Bridging have increased from £114m to £130m. The second interim dividend will be raised from 35p/share to 38p/share.
A new African investor has invested $500,000 in Blencowe Resources (BRES) at 5p/share and a further $2.5m has been conditionally raised at the same price.
First Tin (1SN) says sampling at the Taronga tin project confirms extensions to known mineralisation to the northeast and southwest and identified other potential targets.
Andrew Hore
Quoted Micro 9 January 2023
AQUIS STOCK EXCHANGE
The pre-feasibility study for the Amapa iron ore project in Brazil, where Cadence Minerals (KDNC) has a 30% stake in a joint venture that can be increased to 49%, indicates a capital cost of $399m to bring the mine back into production. Based on the cost estimates in the study, WH Ireland believes that at full production the mine could generate a profit contribution of $292m a year – based on iron ore prices of $100/t and $120/t depending on the grade. It believes the project could breakeven at an iron price of $85/t. The price is currently around $115/t. Chief executive Kiran Morzaria bought 45,454 shares at 11p each.
Steen Andersen became chief executive of probiotics products developer ProBiotix Health (PBX) at the beginning of 2023. Revenues are improving and a trading statement will be published in the next few months. Product ranges are expanding and being launched in new countries. ProBiotix e-commerce revenues could be between £250,000 and £500,000 in 2023.
Hydrogen Utopia International (HUI) confirmed that the FCA has approved its admission to the standard list, and this is set to happen on 9 January.
Spinal stabilisation devices developer TruSpine Technologies (TSP) has secured a bridge loan of £200,000 at an 8% interest rate and has a letter of intent from a UK investment group to invest £2.4m. The first tranche of £800,000 will be issued at 4p a share with two other tranches issued at 6p a share and 8p a share respectively. One of the conditions is that Dr Timothy Evans takes on an executive role. Due diligence is being carried out. There was a £786,000 cash outflow from operations and investment in the six months to September 2022.
Inqo Investments (INQO) is collaborating with Belmont University, Nashville on its project to use enterprise to tackle environmental and social issues around the Budongo Forest in Uganda via $4m grant.
Fenikso Ltd (FNK), which was previously called Lekoil, has completed the settlement agreements with Lekoil Nigeria Ltd and its former chief executive, as well as terminating arrangements with Savannah Energy (SAVE). However, Lekoil Nigeria has been given additional time to surrender the 107.7 million shares it holds in Fenikso, which has no operating assets.
Guanajuato Silver Company Ltd (GSVR) has increased its proposed fundraising from C$7.5m to C$8.5m via an issue of units at C$0.425 each. The unit comprises one share and 0.5 of a warrant exercisable at C$0.60. A first tranche of C$6.8m has been issued and the rest should be issued by 10 January.
Mark Horrocks has acquired 5% of IamFire (FIRE). Saagar Ruaparell has taken a 3.21% stake in Quetzal Capital (QTZ).
AIM
One Media IP (OMIP) expects revenues to be £5.1m and EBITDA of £1.8m in the year to October 2022. Revenues are better than forecast, but EBITDA is in line. The music and video IP rights owner has net cash of around £1.4m. Anti-piracy subsidiary TCAT is winning new contracts and One Media IP is no longer considering outside funding for the subsidiary. The annual results will be published in March and the company says that it will pay a final dividend.
Embedded computer products developer Concurrent Technologies (CNC) says 2022 revenues will be 10% ahead of expectations, although pre-tax profit is maintained at around £100,000. Order intake was more than one-quarter ahead at £31m. Double shifts have commenced at the company’s factory. Pre-tax profit is expected to recover to £2.7m in 2023.
Helium One Global (HE1) will not be able to procure the Exalo drilling rig as it had expected because the current user has taken up a 12-month option on its operation. This will delay exploration drilling, which was due to start in the first quarter of 2023.
Cancer diagnostic test developer Angle (AGL) warned that revenues are lower than expected. Revenues will be just above £1m in 2022 after contract delays, while 2023 revenues have been downgraded from £5m to £3.9m. Market conditions have hampered the cancer diagnostics company in securing partnerships and building the commercial use of the Parsortix cancer cells capture technology.
hVIVO (HVO) has secured a £5.2m contract with an Asia Pacific-based biotech company to test a vaccine in a Phase IIa study. This uses the company’s respiratory syncytial virus human challenge study expertise, and the study will be conducted in Whitechapel from the third quarter of 2023.
Cleaning services provider React Group (REAT) has won a two-year contract with a high street fast food chain and it should generate revenues of £800,000 in the year to September 2023. It was an existing client of window cleaning business LaddersFree, which was bought last May.
DeepMatter (DMTR) left AIM on 5 January.
MAIN MARKET
Conversational gaming company Streaks Gaming (STK) has joined the standard list and raised £3m at 3p a share to develop its platform. The initial games will be knowledge-based and be played between AI-generated digital personalities. Initial income will be generated from introducing people to sports betting firms. Aquis-quoted AQRU (AQRU) invested £2.3m of that cash, which should last for two years even with limited revenues. Much of that cash will go on social media platform fees and directors pay. The share price ended the week at 3.5p (3p/4p). There were no shares traded on 5 January with four trades of 122,000 shares the following day.
Cadmium-free quantum dots developer Nanoco (NANO) has come to a settlement agreement in its litigation with Samsung relating to the infringement of Nanoco’s patents. The two companies have 30 days to secure a binding agreement. The US court proceedings were due to start on 6 January.
Funeral director Dignity (DTY) believes the latest offer from a consortium involving major shareholder Phoenix Asset Management could be acceptable. The initial offer was 475p a share, while the latest revised proposal is 525p a share in cash. Phoenix Asset Management owns 29.7% of Dignity. The bid vehicle is Yellow (SPC) Bidco Ltd, which is a joint venture between Phoenix Asset Management backed investment company Castelnau, which is managed by former Dignity chief executive Gary Channon, and a company established by Sir Peter Wood.
Antimicrobial and textile odour control materials developer HeiQ (HEIQ) says trading conditions have worsened because of weak consumer spending. There are also high levels of inventory in the market, which has hit reorder levels and customers are hesitant to invest in product innovation. HeiQ is acquiring Tarn-Pure for £850,000 in cash and shares. Tarn-Pure has IP relating to regulatory registrations to sell elemental copper and elemental silver for use in disinfecting hygiene applications.
Andrew Hore
Quoted Micro 1 November 2021
AQUIS STOCK EXCHANGE
Good Energy (GOOD) is partnering with Barrow Green Gas for gas shipping services. This should help the company to grow the amount of biomethane that it supplies to domestic customers. Founder Juliet Davenport has sold 50,000 shares at 317.6245p each, while finance director Rupert Sanderson has sold 17,680 at 341p each.
Decentralised finance investor Dispersion Holdings (DEFI) is acquiring platform developer Defi Yield Technologies Inc in return for 348.7 million shares. Dispersion already owned a 6.1% interest that cost C$1m.
Omni-Egis (OMNI), which was formerly known as First Sentinel, has decided to leave Aquis. Trading has already been suspended because of the lack of 2020 accounts and management believes it can save £200,000 a year. If shareholders agree the cancellation will happen on 24 November.
Valereum Blockchain (VLRM) has raised £2m at 40p a share with a warrant attached that is exercisable at 80p. Valereum has an option to acquire 80% of the Gibraltar Stock Exchange. No details have been revealed but the transaction will require the approval of the Gibraltar authorities. The idea is that the Gibraltar Stock Exchange will introduce mainstream trading in cryptocurrencies.
Pioneer Media Holdings (PNER) is raising C$1.5m at C$1 per unit, which is one share and one warrant exercisable at C$1.50. Pioneer Media has agreed to acquire Kodoku Studios, which is involved in NFT-gaming and developing a platform called The Pit, which will enable creators to host their own NFT arenas. The acquisition will cost C$850,000 in cash and eight million Pioneer Media shares at C$1 each. Pioneer Media says that it will be the only quoted investment company focused on NFT gaming.
Helium Ventures (HEV) is making its first investment since joining Aquis. Helium Ventures is investing A$400,000 in ASX-listed Blue Star Helium at A$0.056 cents a share. Blue Star has exploration projects in North America and the A$15m it has raised will be used to drill ten wells over the next 15 months.
In the year to April 2021, IamFire (FIRE) had net assets of £919,000, Since then £369,000 has been raised in a share issue.
Rutherford Health (RUTH) has treated the first prostate cancer patient with a combination of its technology and a treatment developed by Panthera. This is part of a phase II study to determine the optimum dose for the Panthera drug.
Black Sea Property (BSP) had net assets of €21.8m at the end of June 2021, down from €22.4m at the end of 2020. Net debt was €16.4m.
AIM
Smaller companies broker Arden Partners (ARDN) is being acquired by legal services firm Ince (INCE), one of its own clients, in an all-share offer. Ince is offering seven shares for every 12 Arden shares in a bid recommended by the board of the broker. Assuming an Ince share price of 53p, this values each Arden share at 31p and the total share capital at £10m. Arden shareholders will own just over one-fifth of the enlarged share capital of the group. Irrevocable acceptances equate to 44.5% of the Arden share capital. This merger will enable a full range of professional services to be offered to clients. The deal is expected to be earnings enhancing and there should be a continuation of Ince’s policy to distribute one-fifth of post-tax profit in dividends.
IG Design Group (IGR) is generating the expected revenues this year, but it its warning that margins are coming under pressure from increased costs and supply problems. Progressive Research has slashed its underlying operating margin forecast from last year’s figure of 4.8% to 2.8%. Previously, a 2021-22 operating margin of 6.1% was forecast. Forecast revenues are being maintained at $934.3m, compared with $873.2m last year. There will be a full 12-month contribution from the CSS acquisition. The slump in margin means that forecast underlying pre-tax profit has been more than halved to $21.3m, down from $37m last year.
Norish (NSH) has completed the sale of its cold stores and intends to pay a 166p a share dividend out of the cash. The company will be renamed Roebuck Food Group and will have food products sourcing and dairy farming operations.
Arrow Exploration (AXL) is traded on the TSX Venture Exchange and has gained a second quotation on AIM. Arrow raised £7.6m after expenses at 6.25p a share and this will be spent on the drilling of five wells on the Tapir block in Colombia. Arden partners forecasts 2022 sales of $20m and EBITDA of $10m, based on successful drilling. Management believes that if the wells are successful then production could average more than 2,000 barrels of oil equivalent/day, rising to 3,000 barrels/day by March 2023. The share price ended the week at 7.875p.
Specialist cleaning services provider React Group (REAT) admitted that its full year trading was disappointing, and the pre-tax profit forecast has been reduced by £100,000 to £684,000. Covid-19 decontamination work was not as buoyant later in the year and reactive work was also weak. New contract wins are building up the recurring revenues base.
MAIN MARKET
Building supplies retailer Wickes (WIX) says third quarter like-for-like sales fell by 1.6%. the 2021 pre-tax profit is expected to be between £67m and £75m. The share price has fallen since the demerger from Travis Perkins.
Dukemount Capital (DKE) improved full year revenues from £2.39m to £3.3m, but the loss increased from £332,000 to £914,000. That was mainly due to much higher professional fees. The revenues come form the property management business and the newer flexible power joint venture is still in development.
Digital transformation business Kin and Carta (KCT) increased full year revenues by 12.5% to £141.4m, while adjusted pre-tax profit improved from £8.1m to £13m, although that is before pension and acquisition charges. The order book is worth £70m. The plan is to organically double revenues over four years.
Andrew Hore
Andrew Hore – Quoted Micro 5 July 2021
AQUIS STOCK EXCHANGE
Voyager Life (VOY) is an early-stage company offering CBD-based products – including chewable sweets, bath products, oils and skincare products. The company has been in existence for around eight months and revenues are small. The first high street shop will be opened in St Andrews during July. Voyager Life raised £400,000 at 58p a share, but by the end of the first week of trading the share price has fallen to 40.5p (39p/42p) – possibly because of trading by crowdfunders that bought at 31p a share. Proforma cash appears to be around £2.4m, but there will have been expenses since the end of March. Greencare Capital (GRE) invested £100,000 and it is currently worth around £107,000.
Samarkand (SMK) reported 2020-21 revenues of £20.6m, including exceptional revenues of £5.8m, up from £6.8m. This enabled the ecommerce technology provider to make a positive EBITDA. There was £14.6m in the bank at the end of March 2021. A Tokyo office was opened in June. The full year results will be published before the end of July.
Revenues fell by more than two-thirds at pubs and brewery operator Daniel Thwaites (THW) and they were £32.2m in the year to March 2021. There was a swing from profit to loss. Net debt increased to £78.8m with monthly cash burn running at £1.5m during lockdown. There were £11.2m of additional bank facilities available and there have been subsequent disposals of non-core properties.
Polygon Global Partners has taken its stake in Watchstone Group (WTG) to above 30% and it is making a mandatory bid at 34p a share, valuing the company at £15.7m.
KR1 (KR1) increased its NAV from 5.72p a share to 28.97p a share at the end of 2020. Non-exec director Rhys Davies has exercised options over 767,236 shares at 19.55p each, which raised £150,000 for the company.
In 2020, Coinsilium Group (COIN) made a pre-tax profit of £310,000, compared with a loss of £259,000. That was mainly due to unrealised gains. The cash outflow from operating activities increased from £496,000 to £788,000. There was £173,000 in the bank.
NFT Investments (NFT) has conserved its cash despite declines in cryptocurrency values. It made a $440,000 gain on crypto token investments but has exited the market for the time being. There is still £34.1m of cash and stable coin, which is deemed to be less volatile because their value tends to be linked to the dollar, in the balance sheet, compared with a market value of £25.6m at 2.55p. How that figure is split between cash and stable coin is not stated.
In the nine months to December 2020, British Honey (BHC) generated revenues of £1.5m. Union Distillers was acquired in February 2021. There was cash of £2.95m at the end of March 2021.
Rogue Baron (SHNJ) has opened a second bar in Washington DC, called De Rhum Shot, and it is three times the size of the existing bar. Rogue Baron is investing £90,000 for a 51% stake and it is committed to a further payment of £20,000. Sales of Shinju whisky should reach 5,000 cases in 2021.
Secured Property Developments (SPD) had cash of £457,000 at the end of 2020 and net assets were £175,000. Management is seeking investment opportunities.
Chris Akers has taken a 3.09% stake in DiscovOre (ORE).
Valereum Blockchain (VLRM) completed the £1m placing at 70p a share.
AIM
Wynnstay (WYN) has gained market share in the animal feed market and the milk price remains at a level that provides confidence to farmers helping the retail operations to grow. In the six months to April 2021, revenues rose from £229.3m to £249.7m. Raw material prices have increased but Wynnstay has been able to pass them on and improve gross profit from £31.5m to £33.3m, which is the important measure. Underlying pre-tax profit improved from £4.5m to £5.5m. The interim dividend was raised by 9% to 5p a share.
The restructuring of Huricane Energy (HUR) has been rejected by the courts and that effectively means that the company has defaulted on the planned convertible bond repayments. The non-exec directors have resigned, and two directors appointed to replace them.
Digital marketing services and technology provider Silver Bullet Data Services (SBDS) raised £9.5m at 257p a share when it floated. This will be spent on further development of its 4D technology that helps brands to target advertising. 4D has been developed as an alternative to cookies that remains in line with current and likely regulations.
Specialist cleaning company React Group (REAT) increased interim revenues from £2.09m to £2.51m, while underlying pre-tax profit improved from £50,000 to £74,000. Fidelis was acquired too late in the period to make a significant contribution. Full year pre-tax profit is expected to increase from £188,000 to £784,000.
MAIN MARKET
Bermele (BERM) has agreed the acquisition of premium mixers supplier East Imperial Pte for £24.45m and it will be changing its name to East Imperial and raising £3m at 10p a share.
In 2020, Lookers (LOOK) increased its underlying pre-tax profit from £4m to £14.1m. The motor dealer is making annualised savings of £50m.
Highway Capital (HWC) says that it has whittled down potential acquisitions to a small number and is in discussions with one target. There is £41,000 in cash and net liabilities of £1.13m.
Wildcat Petroleum (WCAT) is focusing on Angola and Namibia in its search for oil and gas assets.
Media Tech SPAC is raising cash via Primary Bid ahead of a standard listing later this summer. The company wants to raise up to £6m at 10p a share. Areas of interest include digital technology, cyber security, social media, content distribution, virtual reality, gaming and interactive entertainment. Media Tech SPAC has previously raised £415,000 at 1p a share and £1.64m at 4p a share.
Ross Group (RGP) lost £1.46m in 2020. Net liabilities are £5m. Ross has acquired an aquaculture business, but it is yet to benefit from the investment put into this business.
Andrew Hore
Ian Pollard – Tiddlers Corner incl #NFC #REAT #PRP
The city gets its luxury yachts out, fuels its private jets and goes on holiday in August which is when there is a flood of company results from the the big boys who know that there are not many about to read the news if it is bad. June is an in between month when companies which few may have heard of, are left to make the headlines. But always amongst these tiddlers there will be just a few which are beginning to make their mark and becoming ready to challenge the big uns whose management has lost the plot and become sclerotic. These can the ones to keep an eye open for.
Next Fifteen Communications plc NFC announces that it has made a good start to the new financial year. Organic revenue growth has remained in high single digit figures, with acquisitions performing well and new account wins secured.
REACT group plc REAT found market conditions difficult in the six months to the 31st March. Turnover rose by 16% compared to the first half of 2017 but exceptional non recurring costs helped to produce a loss of of £327,000, virtually double that of 2017. The company claims that operational changes which have been made since the end of the half year will enable it to implement a growth strategy.
Prime People plc PRP The business performed well in the UK during the year to the 31st March but profit before tax was down from £1.9m to £1.19m after exceptional costs of £102,000 relating to the acquisition of Planned Recruitment Group in Hong Kong. Earnings per share fell by approximately a third from 12.97p to 8.58 per share.The final dividend remains unchanged at 5p per share and current activity is said to be encouraging.
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