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Quoted Micro 7 October 2024
AQUIS STOCK EXCHANGE
Prize draw operator Good Life Plus (GDLF) has increased the number of paying subscribers by 90% to more than 40,000 in less than a year. Management says that it might exceed expectations for the current financial year. Good Life Plus is raising £2m at 2.5p/share. Earlier this year, £2m was raised at 2.25p/share. The cash will finance customer acquisition and signing up new partners.
Brewer Shepherd Neame (SHEP) grew full year revenues by 4% to £172.3m and underlying pre-tax profit improved from £7.6m to £7.9m. NAV is 1217p/share, while net debt is £80m. Like-for-like retail sales were 4.9% ahead with the growth dominated by drinks offsetting a fall in accommodation income. Beer volumes declined 12% with own-brewed volume 17% lower. Brand refreshes are planned. Beer volumes continue to decline, while like-for-like retail sales for the initial 13 weeks of the new year are 3.8% higher.
Consumer brands company Silverwood Brands (SLWD) increased interim revenues from £5.85m to £7.08m and it moved into profit, but that was mainly due to exceptional gains.
CRUSHMETRIC Group (CUSH) increased interim revenues from HK$1.04m to HK$2.94m, although the loss was similar at HK$3.7m.
Talks with potential investors in Quantum Exponential Group (QBIT) have been terminated. The documentation has not been signed and the potential investor did not pay the £200,000 towards costs that it promised. Trading in the shares will end on 30 October.
Voyager Life (VOY), which has an option to acquire M3 Helium, has changed its name to Mendell Helium. The admission document is being prepared and the option should be exercised by the end of January. The company had £163,000 in the bank at the end of March.
Aquaculture technology developer OTAQ (OTAQ) reported a 16% decline in interim revenues to £1.5m because of a delay to a £350,000 order. The company continues to lose money. A forecast full year loss of £1.3m is similar to 2023, including a £150,000 benefit from cost reductions, and it could be halved in 2025 as the full benefit of cost savings show through.
KR1 (KR1) had net assets of 57.27p/share at the end of August 2024. The income in the month was £590,000.
Investment Evolution Credit (IEC), which provides loans under the Mr Amazing Loans brand, is holding a general meeting to gain approval to raise up to £2.5m from share issues. Paul Mathieson is being replaced as chief executive by Marc Howells. Former director Sam Prasad is loaning £200,000 to the company, which replaces a previous £100,000 loan.
Recycling services provider Majestic Corporation (MCJ) narly doubled interim revenues from $13m to $25m and pre-tax profit was one-third higher at $900,000. The company has received Enterprise Investment Scheme status.
RentGuarantor (RGG) has increased third quarter revenues by 62% and average revenues per tenant by 8% to £606.
Gains on investments enabled Hot Rock Investments (HRIP) to move into profit in the year to March 2024. Net assets increased to £512,000.
An undertaking of EPE Special Opportunities (EO.P) has provided additional funding of £2m to the Rayware Group. There is also a £1m contingent guarantee provided to third party lenders. EPE Special Opportunities still has £16m in cash.
ProBiotix Health (PBX) has a commercial partnership with Deutsch-Pharm. It will use two of the company’s products (for cholesterol lowering and vascular health) under its own brand in the Ukraine. Commercialisation is anticipated in the first quarter of 2025.
One Health Group (OHGR) has appointed Panmure Liberum as corporate adviser and broker.
Hydro Hotel Eastbourne (HYDP) has declared an interim dividend of 13p/share.
AIM
AO World (AO.) is acquiring musicMagpie (MMAG) for 9.07p/share, which values the pre-owned products supplier at just under £10m. There are irrevocable undertakings and letters of intent totalling 54% to accept the offer. AO World believes that the two companies have complementary online models, and a technology trade-in service will enhance its product offering. AO World says that the musicMagpie disc media and books business should not require significant investment.
EMV Capital (EMVC) director Jonathan Robinson bought 25,000 shares at 52p each following the interim results announcement of the company that was previously known as NetScientific. Total assets under management reached £106.7m following the addition of the Martlet Capital portfolio. Net assets edged up from £17.1m to £18.5m. Nasdaq-listed investee company PDS Biotech announced a 36-month survival rate of 84.4% in locally advanced cervical cancer patients treated with the company’s lead target drug Versamune HPV and Chemoradiation.
Tavistock Investments (TAVI) is raising up to £37.75m from disposals, which is more than treble the market capitalisation before the sale, with nearly £11m payable on completion and a further £11m from discharge of intragroup debt. The rest is payable based on performance. The two businesses made a pre-tax profit of £1.5m in the year to March 2023. The cash will be used for working capital and acquisitions. There could also be share buy backs. Chief executive Brian Raven bought 830,000 shares at 3.55p each.
Good Energy (GOOD) has acquired Lincolnshire-based solar installer Amelio Solar for an initial £5.5m. The focus of the business is the education and public sector. In 2023, revenues were £7m and pre-tax profit is £1.4m. However, there have been lower levels of activity in Good Energy’s existing installation business.
Packaging equipment and automation provider Mpac Group (MPAC) is making its second acquisition in recent weeks and this is by far the larger. Mpac is acquiring CSi Palletising for £47m, including £4.16m in shares, and the deal should be completed by the end of the year. CSi Palletising designs, manufactures and installs end-of-line packaging automation and robotics equipment and will enhance the geographic coverage. In 2023, CSi Palletising generated revenues of €71.5m and EBITDA of €7.3m. The latest interims show revenues of €44.4m and EBITDA of €6.8m. There is an order book worth €64.3m. A placing raised £29m at 400p/share and a retail offer to existing shareholders could add up to £1m to the figure.
Digital media publisher Digitalbox (DBOX) has commenced a strategic review, which could involve a sale of the company. This follows representations from a major shareholder disappointed about the level of the share price. Progress should be reported in November. Interim revenues were better than expected, but July and August were weak. Net cash is £2.2m, which is more than 50% of market capitalisation. A capital restructuring is underway to create positive distributable reserves.
Agricultural products supplier Wynnstay Group (WYN) says the second half has been hit by wet weather and weaker farmgate prices in part due to government policy uncertainty. Shore has reduced its 2023-24 pre-tax profit forecast by 35% to £7.5m and this will have a knock-on effect in the year to October 2025 where the profit forecast has been cut by 29% to £8.5m. Wynnstay should still have net cash, and the NAV is estimated at around 600p/share.
Payments technology company Bango (BGO) is making some progress towards regaining investor confidence and it is on course to make a full year profit. Interim revenues grew 19% to $24.1m. Annualised recurring revenues are 130% ahead at $12.9m. Net revenue retention is 159%.
Ceramic disc brake technology developer Surface Transforms (SCE) increased interim revenues by 58%, but growth is still not meeting expectations even though there is further growth in third quarter revenues. There are delays to installing additional capacity. Full year revenues are expected to be £11m, compared with previous expectations of £17.5m. There was £5m in cash at the end of June 2024. Odd Asset Management reduced its stake from 5.13% to 2.58%.
Graphene technology developer Versarien (VRS) has signed an agreement with Balfour Beatty to develop 3D-printable mortars for civil construction. It will formulate three types of mortar. This follows the disposal of AAC Cryoma for £550,000 payable in 15 instalments.
Oil and gas company Prospex Energy (PXEN) is applying for exploration licences in Poland. The licence awards should happen in the first quarter of 2025. Initial results from the Vlura-1B development well in Northern Spain are positive. Drilling intercepted significant gas shows and that confirmed the high quality reservoir. This well will be connected up and first production should be by November.
Battery and electronic components supplier Solid State (SOLI) is acquiring Gateway Electronic Components, which manufactures ferrite and magnetic components for £1.4m. These are used by electromechanical and Industrial Internet of Things businesses. The run rate pre-tax profit is £200,000, so the multiple is less than ten.
Surplus consumer products retailer Huddled (HUD) generated interim revenues of £5.3m and they continue to grow organically and via acquisition. Third quarter revenues will be around £3.5m. Management is investing in inventory and marketing. Warehouse functions are being centralised.
MAIN MARKET
Motor dealer software provider Pinewood Technologies (PINE) published its first results following the sale of the motor dealer business. In the six months to July 2024, revenues were 11% ahead at £16.1m. Major shareholder Lithia is taking up new licences in the UK. The US roll out is being planned.
The two board representatives of Kelso Group (KLSO) on AIM-quoted The Works.co.uk (WRKS) have stepped down. This will make it easier to sell its 6.3% stake if it wishes to. The average cost was 32p/share and the current price is 25.2p.
Andrew Hore
Quoted Micro 5 August 2024
AQUIS STOCK EXCHANGE
Marula Mining (MARU) has entered into a manganese ore supply agreement with Kitman, a local processing company in Kenya. The deal lasts until the end of 2026. Kitman will supply a minimum of 10,000 tonnes/month of manganese ore at 20% grade minimum to the Kilifi manganese processing plant. There will be an advance payment for 5,000 tonnes. A mining permit has been issued for Blesberg lithium and tantalum mine.
In the year to March 2024, business assurance provider Adsure Services (ADS) increased revenues from £8.99m to £9.3m, while pre-tax profit was 72% higher at £471,000. There was cash of £1.07m at the end of March 2024.
Ormonde Mining (ORM) investee company TRU Precious Metals has signed an option agreement with Eldorado Gold so that it can earn 80% of the Golden Rose project in Newfoundland. The 36.2%-owned TRU Precious Metals has persuaded Eldorado Gold to invest in the early-stage project.
Valerium (VLRM) will collaborate with Tokeny as a technology provider for Valerium’s Real World Asset (RWA) marketplace. The technology will enable the primary issuance and bulletin board-based secondary trading of various digital assets.
KR1 (KR1) had net assets of 82.01p/share at the end of June 2024. Income earned during the month was £877,000. One-quarter of the value of the portfolio is in Celestia tokens.
Hydrogen Future Industries (HFI) has secured a technology and territory licensing agreement worth up to €2.25m. The wind-based hydrogen production technology company has signed the deal with a new company in the Republic of Ireland.
Emission reduction fuel additives developer SulNOx Group (SNOX) says first quarter revenues were 134% ahead at £192,000. There were record product sales in the quarter. There was £1.6m in the bank at the end of June 2024.
RentGuarantor (RGG) increased interim revenues by 70% to £518,000, but the loss increased from £408,000 to £452,000 due to the hiring of staff. Net debt is £1.07m.
Cooks Coffee Company (COOK) has raised £320,000 at 7.85p/share. Chief executive Aiden Keegan has joined the board.
Supernova Digital Assets (SOL) had net assets of £5.49m at the end of April 2024, following an increase in the value of its cryptocurrency assets. There is £209,000 in cash.
AIM
Trinidad-based oil and gas producer Trinity Exploration and Production (TRIN) is recommending a cash bid from Trinidad incorporated Lease Operators and withdrawn the recommendation of the Touchstone Exploration (TXP) offer of 1.5 shares for each of the oil company’s shares. The bid is 68.05p/share and values Trinity Exploration and Production at £26.4m. There will be economies of scale between the two oil producers.
Touchstone Exploration (TXP) achieved net sales of 5,432 barrels of oil equivalent/day in the second quarter of 2024. Current average production was 5,711 boe/day with production improving at Cascadura.
Haleon has announced that it will launch the Futura Medical (FUM) erectile dysfunction topical gel treatment Eroxon in the US before the end of 2024. This will trigger the US launch milestone. The US is a bigger potential market than all the other sales regions combined. So far, Eroxon has been launched in Belgium and the UK with more to follow.
In the year to April 2024, SDI Group (SDI) revenues dipped from £67.6m to £65.8m, but there was underlying growth if the previous year’s Covid-related revenues are excluded. The scientific instruments manufacturer’s operating margins are just above 14%. Pre-tax profit dipped from £11.8m to £8m because of the higher margin business in the previous year. Management says there are potential acquisitions in progress, but the timing is always difficult to predict. Net debt was £13.2m at the end of April 2024 and that could halve in a year’s time without any acquisitions. Cavendish forecasts 2024-25 pre-tax profit of £8.4m and earnings of 6p/share are forecast.
North Sea-focused Jersey Oil and Gas (JOG) could be hampered by the rise in the energy profits level to 38% and the main investment allowance of 29% will be removed from November. A reduction in capital allowances will be announced in the October Budget. The levy will be extended until 2030. The Great Buchan Area joint venture will be impacted. Jersey Oil and Gas has a full carry on much of the development spending of the project and there are potential milestone payments. However, the final investment decision could be hampered by the tax changes.
RBG Holdings (RBGP) is expecting interim revenues of £18.4m, down from £19.8m. Net debt was £24.4m at the end of June 2024 and the debt facility is fully drawn. Costs are being reduced, but most will come through next year. A pre-tax profit of £1.2m is forecast for 2024 after the previous year’s loss.
UK Oil and Gas (UKOG) is the highest riser for the second week. its Dorset and Yorkshire underground hydrogen storage projects have received a letter of support from RWE, which is developing three hydrogen plants near to the storage projects. Other letters of support have come from Japanese trading house Sumitomo and pipeline provider SGN. The projects are at an early engineering design stage.
Oil and gas producer Arrow Exploration (AXL) says that the second horizontal well on the 50%-owned Carrizales Norte field in Colombia is producing ahead of expectations. The two wells are boosting group production. There is cash of $11m and should be at a similar level at the end of 2024 as cash generated from production helps to finance further drilling. Zeus has a total risked NAV estimate of 48.8p/share.
Online gaming company Gaming Realms (GMR) expects interim revenues to be m18% ahead at £13.5m and EBITDA should be 21% higher at £5.8m. Adding new partners has boosted income. Gaming Realms is on course to increase full year pre-tax profit from £5.4m to £8.8m. Net cash could double to £14m.
IQE (IQE) plans to float its Taiwan subsidiary on its local stock exchange.
Vector Capital (VCAP) plans to leave AIM and is offering shareholders the chance to tender shares at 33p each. The tender offer covers up to 11.2 million shares and will cost £3.7m. Interim pre-tax profit dipped 45% to £707,000. Vector Holdings owns 75.2% of the property finance provider
MAIN MARKET
Cybersecurity company Narf Industries (NARF) has admitted it requires additional funding to take advantage of its IP that has been developed as part of consultancy contracts. In the 15 months to March 2024, revenues were $7.6m, which was treble the level for the previous twelve months. These revenues come from consulting work. The reported loss was $1.44m, although that includes a share-based payment cost of £1.02m. There was a cash inflow from operating activities of $173,000. The chief executive has increased the facility made available to the company from $2m to $2.5m and this lasts until July 2025. At the end of March 2024, there was $1.55m drawn down.
Guild Esports (GILD) is exploring options that will enable it to meet short-term liabilities. That could be new credit terms, a fundraising or further cost savings. Management is also assessing the strategic direction of the company and that could lead to assets being sold. A partnership deal has been secured with AIM-quoted Inspecs (SPEC) for the marketing of the eyewear company’s REGEN glasses.
Andrew Hore
Quoted Micro 10 June 2024
AQUIS STOCK EXCHANGE
Skincare treatments developer Incanthera (INC) says the first production order for its Skin + CELL products from Marionnaud has been doubled to 100,000 units. The launch will be in September. The previous figure was already higher than the initial order and the revenues from the order will be £4m. Future production orders could be even larger. This will help group revenues for the year to March 2025 to be more than £10m. This has enabled Incanthera to raise £4.1m from a share issue at 15p/share to cover additional working capital. Lupus treatment developer ImmuPharma (IMM) raised £1.5m from the sale of its 9.98% stake in Incanthera, which was valued at £600,000 at the end of 2023, although it retains warrants.
TruSpine Technologies (TSP) is talking to several potential commercial partners for its medical device technology, where the regulatory process is ongoing. The new board has improved relations with the inventor of the spinal stabilisation device IP. The investor relations website has been relaunched and a new medical advisory board will be put in place.
CBD products supplier Voyager Life (VOY) says another potential merger has fallen through. This follows the ending of the Northern Leaf deal. This has left Voyager Life short of cash. The business operations are being reviewed and there are talks about funding. The company has been winning new business and there are signs of an improvement in the retail stores.
RentGuarantor (RGG) increased full year revenues by 79% to £741,000. The rent guarantee services provider says arrears were 2.32% in 2023. The loss increased from £911,000 to £1.23m, after a £358,000 charge for the revaluation of the convertible loan note.
First Sentinel has resigned as corporate adviser of ChallengerX (CXS) and the shares have been suspended. ChallengerX is progressing with a potential acquisition, and it is required to appoint a new corporate adviser.
Helium Ventures (HEV) says that a shareholder in Trackimo is challenging the issue of a 19.4% stake to the Aquis company.
Invinity Energy Systems (IES) has leased an additional manufacturing facility in Motherwell. This should become operational in the third quarter and capacity should be more than 500MWh of energy storage per year. The Bathgate facility will also be upgraded.
KR1 (KR1) has invested $1m into the Avail Web3 infrastructure project in return for 12.5 million AVAIL tokens.
Video capture technology company Visum Technologies (VIS) has entered exclusive non-binding heads of terms for a licence agreement with Makeabl, which has developed cloud/app technology. This would be licensed in North American and European markets and help Visum Technologies to access new markets.
BWA Group (BWAP) has completed reconnaissance drilling at the Dehane 2 rutile sands project in Cameroon. The results were encouraging. Oberon Capital has been appointed as broker.
Arbuthnot Banking Group (ARBB) has completed the renewal of its subordinated loan, which is classified as Tier 2 capital. The loan was increased by £1m to £26m and lasts until June 2034.
Psych Capital has changed its name to Shortwave Life Sciences (PSY).
AIM
Destocking hit the interim figures of Gooch & Housego (GHH) and pre-tax profit slipped from £4.7m to £2.6m on a 1% decline in revenues to £63.6m. This excludes the loss making EM4 defence business sold earlier this year. The dividend was edged up by 0.1p/share to 4.9p/share. Net debt increased to £22.2m. The destocking was primarily in industrial and medical sectors. Industrial remains the largest generator of revenues despite a 13% decline. There was not a recovery in the semiconductor sector as expected. The subsea cable market was strong. There was a reduction in the aerospace and defence division loss on higher revenues, but it still needs to improve manufacturing efficiency.
GRC International (GRC) is recommending an 8p/share cash bid from Bloom Seed Bidco, which values the cybersecurity company at £8.6m. The bidder is a vehicle for technology investor Bloom, which can provide increased financial backing for the business. GRC joined AIM in 2018 at a time when there was investor interest in the cybersecurity sector. The flotation valuation was £40.2m at 70p/share. GRC has been loss making and never moved into profit.
Pawnbroker Ramsdens (RFX) reported interims showing the expected progress. Precious metals revenues were strong, although margins dipped. Pre-owned jewellery sales offset weaker watch sales. The contribution from each main division was higher. Interim revenues were 12% ahead at £43.8m, while pre-tax profit improved from £3.68m to £3.99m. The dividend was raised by 9% to 3.6p/share.
Strip Tinning (STG) has won a battery technologies contract from a German automotive motion technology manufacturer, that could have a lifetime value of £43m. This is for a cell contact system for battery pack modules for a US customer. This has already generated £1.7m in pre-production work. Production supply will start in the fourth quarter of 2025 with further pre-production revenues of £1m ahead of that time. There will be additional investment in engineering resources. Demand for glazing products has weakened and copper prices are rising. There will be a trading statement on 16 July.
Power Metal Resources (POW) has secured a £2m loan note investment from ACAM, which is also negotiating a uranium-focused joint venture, which would include all of Power Metal’s uranium licences. This would mean that the flotation of Uranium Energy Exploration will not happen – that has already cost £500,000 – and neither will previously proposed disposals. There would be a £10m investment in Power Metal Resources Canada so that ACAM would have a 70% stake. The loan notes bear interest of 10%/year and there will be 13.3 million warrants issued that are exercisable at 15p each.
Empire Metals (EEE) considers further positive exploration results as a major development for the Pitfield prospect. There is rutile at surface, and it should be easy to mine. Titanium dioxide mineralisation gets more prevalent at lower depths. This should improve project economics.
Pantheon Resources (PANR) has entered a gas sales precedent agreement with the state-owned Alaska Gasline Development Corporation, which is developing the Alaska LNG project. This is designed to supply Alaska and export up to 20 million tonnes of LNG each year. Pantheon Resources would supply up to 500 mmcf/day of gas at a maximum base price of $1/mmbtu. There are plans to increase the scale of the Ahpun development.
Jadestone Energy (JSE) says the Akatara gas processing facility, onshore Indonesia, is approaching final commissioning. The first gas should be processed in around a fortnight. Gas and LPG sales will start soon after that. The workover campaign on five Akatara wells has completed, and they will provide gas for the facility.
Seed Innovations (SEED) has completed its share buyback programme. This used up £510,000 on top of the £2m dividend. That followed the disposal of its Leaf Gaming stake for £2.4m. There has been a 11.6% share price decline so far this year, but that is not adjusted for the 1p/share special dividend.
Maritime systems developer SRT Marine Systems (SRT) admits that two coastguard contracts are unlikely to reach their project revenue milestones in the 15 months to June 2024. The largest contract is dependent on the completion of an inter-government loan. There should £45m of income recognised when this is finalised. Once the other contract is verified it should enable £9m to be recognised. Transceivers revenues have grown, and total revenues are expected to be £14m in the 15-month period. The six-month figure was £5.5m with no contribution from systems.
Hercules Site Services (HERC) reported a one-third increase in interim revenues to £48.8m as it continues to win additional contracts to supply construction staff. It moved back into profit in the period. The new training academy is up and running.
The Mission Group (TMG) has responded to the revised bid proposal of 13.9 Brave Bison (BBSN) shares for each share in the advertising and marketing services company. The board still believes that the bid does not reflect the underlying value of the business, but it is evaluating the bid.
Hostels operator Safestay (SSTY) has acquired a property in Brighton from the University of East Sussex for £2.275m. This will be converted into a 220 bed premium hostel. It is 600 metres from the sea front and will cost £1m to convert. Shore Capital has been appointed nominated adviser and broker. Safestay reported full year revenues 18% higher at £22.5m. EBITDA rose 15% to £6.8m. NAV was 50p/share.
Restaurants operator Tasty (TAST) gained court approval of its restructuring plan on Tuesday afternoon. Tasty has got out of the leases of 23 sites. This leaves 38 restaurants, which are predominantly the Wildwood brand. This should improve EBITDA by up to £2.1m between 2023 and 2025.
Clontarf Energy (CLON) has failed to move through to the next stage of the bids for the seven priority salt pans in southern Bolivia because of its offtake partner’s poor credit rating. Management hopes that it can argue the case that the credit rating is not relevant.
Mosman Oil & Gas (MSMN) is paying $500,000 for a 10% interest in a US helium project in Las Animas County, Colorado. This is an area with known helium deposits. There are five helium prospects and a well will be drilled for each of them. The sale of oil and gas asset will help finance the move into helium.
WIIT has decided not to make an offer for Redcentric (RCN).
MAIN MARKET
Credit provider S and U (SUS) says that its first quarter profit has fallen by one-third because of higher provisions due to lack of regulatory clarity.
Like-for-like sales at Hostmore (MORE) have fallen by 10%, but profitability has improved. Net debt is set to peak in the third quarter. The acquisition of TFI Fridays is progressing and the formal agreement should be signed shortly.
Motor dealer Caffyns (CFYN) has cut its dividend by one-third to 5p/share because it slumped into loss last year. There were property value write-downs.
Chill Brands (CHLL) shares have been suspended because of allegations relating to the use of insider information and concerns about commercial arrangements. This means that the board cannot provide accurate information about its financial position.
Oxford Cannabinoid Technologies (OCTP) has left the standard list.
Andrew Hore
Quoted Micro 10 May 2024
AQUIS STOCK EXCHANGE
Time to ACT is planning to join the Aquis Stock Exchange later this month and it has launched a fundraising ahead of the flotation. The flotation will take place even if there is no money raised. Time to ACT 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. The Winterflood Retail Access Platform is being used to raise up to £1m. The issue price and closing date have yet to be announced. Investors have to apply for shares via a broker. The minimum subscription is £100.
Cykel AI (CYK) has agreed a bid from standard listed Mustang Energy (MUST). The offer is 1.911 Mustang Energy shares for each Cykel AI share. Both companies’ shares have been suspended since 17 January. The Mustang Energy suspension price was 30.6p, but the bid is based on a much lower share price valuing the company, which has net liabilities, at £1m. That values the bid at 9.37p/share and Cykel AI is valued at £19.2m. Cykel AI is developing artificial intelligence products.
Newbury Racecourse (NYR) increased 2023 revenues by 9% to £19m and reported pre-tax profit improved from £130,000 to £720,000. However, there was a £700,000 exceptional gain relating to the release of a provision included. Cost increases reduced underlying profit. Raceday attendances fell from 141,000 to 130,000. The nursery has increased capacity by 18%. Shaun Hinds will become chief executive on 3 June.
Silverwood Brands (SLWD) executive director acquired 100,000 shares at 20p following the restoration of trading at the beginning of May. The share price recovered by 48.5% to 24.5p, but it is still not back to its suspension price.
Marula Mining (MARU) has appointed a new mine manager at the Larisoro manganese mine in Kenya. Bernard Kiprotich has five years of mining experience in Kenya. Marula Mining is investing in the established Larisoro manganese mining operation by securing a 60% commercial interest with an option to increase it to 70%. There are three shallow open pits. The purchase price is £300,000 satisfied by the issue of 2.4 million shares. Marula Mining will provide investment of $1.5m for equipment to enable production to be increased.
Essentially Group (ESSN) has completed the acquisition of Best Latin Foodstuff Trading for £1.945m in shares at 52.5p each. Catalina Onate, who founded the food importer, has been appointed as an executive director.
Shareholders passed resolutions at the AGM of Supernova Digital Assets (SOL), including a cancelation of the share premium account and authority to buy back shares.
TruSpine Technologies (LON: TSP) chief executive Laurence Strauss has resigned. He was appointed in April 2023.
RentGuarantor Holdings (RGG) raised £35,000 at 274p/share.
AIM
Metallurgical coal company Bens Creek (BEN) says a further court hearing related to the three US operations that are in Chapter 11 bankruptcy protection will be held on 6 June. The court has accepted the proposed Avanti debtor in possession financing and $2m has been drawn down. This provides enough cash until the end of May. The final terms of the facility are being negotiated.
Genedrive (GDR) has raised £2.1m in a placing at 1.5p. This follow’s yesterday evening’s announcement of a fundraising, where the point of care pharmacogenetic testing company wanted to raise £2.5m via a placing. There is also a REX retail offer for up to £3.5m, which closes on 17 May, and a one-for-one open offer that could raise up to £2.1m. If the total amount raised is not at least £6m the fundraising will not go ahead, so a further £3.9m is required. The company’s tests are being commercialised and a direct to consumer strategy pursued in the UK, while there will be distributors in other countries. There will also be investment to improve manufacturing efficiency and to fund regulatory approvals.
Plant Health Care (PHC) generated a 72% increase in revenues to $4.3m in the first four months of 2024. There is cash of $2.3m. The loss could be reduced from $3m to less than $1m this year. A profit is possible in 2025.
Third quarter driver management systems units produced by Seeing Machines (SEE) have gone into 313,662 vehicles, which is 51% higher than the previous quarter. This is more than treble the number in the same period two years and 80% higher than one year previously with more contracts set to contribute. Monitored connections of the Guardian fleet units were 5% higher on the quarter at 59,706.
Push-to-talk and workplace management technology developer Mobile Tornado (MBT) has won a contract through its regional partner to supply technology for a mobile network in the Middle East and Africa, which has more than 50 million customers. Management believes that there should be increasing sales momentum following the deal.
Healthcare services provider Totally (TLY) reassured the market with its latest trading statement. Full year EBITDA was £2.3m, down from £6.9m, and net debt was £800,000 at the end of March 2024. Revenues fell 22% to £106m because of the loss of a contract. Cost reductions and efficiency improvements have offset the tough market. Annualised cost savings of £3.5m are expected.
Bushveld Minerals (BMN) has agreed the conditional disposal of Vanchem to Southern Point Resources Fund 1 for up to $40.6m. The initial consideration is $20.6m. This requires shareholder approval. Southern Point Resources is increasing the interim working capital facility it is providing that is secured on production at Vanchem. This, and a $9m working capital facility, will be offset against the initial consideration and be used to pay creditors. This will leave a cash payment to Bushveld Minerals of $3.5m when the disposal happens. The deferred consideration is based on 25% of distributable free cash flow with a minimum of $1.25m paid for each quarter of the three-year period.
Mothercare (MTC) reported a 13% decline in global system sales last year due to poor trading in the Middle East. Destocking is a problem. There was better trading in the UK and Indonesia. The retailer will improve EBITDA, but Cavendish reduced its forecast EBIDA by 9% to £7m, compared to £6.7m in 2022-23. Refinancing talks continue and a conclusion should reduce the interest bill.
Battery technology developer Ilika (IKA) is raising up to £3.4m at 28p/share to spend on the Goliath solid-state battery. This cash should last at least 12 months. A placing and subscription raised £1.7m and a one-for-26 open offer could raise up to £1.7m more. The open offer closes on 28 May. There will be £750,000 earmarked for the development of the Goliath battery and this supplements the grant assistance obtained. A further £750,000 will be used to increase testing capacity to 0.75MWh/a and for upgrading dry room facilities. Additional cash raised will support further capital expenditure and working capital for Goliath and the Stereax miniature battery.
MAIN MARKET
Packaging manufacturer and distributor Macfarlane Group (MACF) disappointed with its AGM trading statement and lost the majority of the share price gain this year. Prices are falling, but this reflects lower costs, so margins are being maintained. First quarter sales were 9.5% lower, which does reflect a reduction in volumes. There should be improvement in the second half.
Oxford Cannabinoid Technologies (LON: OCTP) plans to cancel the standard listing. Management believes that stockmarket uncertainty is making it difficult to raise cash at an acceptable share price. The development of the drug pipeline will continue. The cancelation date is 6 June.
Andrew Hore
Quoted Micro 6 May 2024
AQUIS STOCK EXCHANGE
Good Life Plus (GDLF) has traded strongly since joining Aquis and raising cash for marketing. The luxury prize draw company increased the number of subscribers from 21,000 at the end of 2023 to 30,000. Churn has been reduced.
Invinity Energy Systems (IES) raised £56m at 23p/share with £25m committed by the UK Infrastructure Bank and £3m from Korean Investment Partners. There is also an open offer to raise up to £6.6m. The share price slipped 6.12% to 23p. IES will use £30m to increase capacity ahead of the launch of the latest version of the Mistral flow battery.
KR1 (KR1) gained shareholder approval for the market acquisition of up to 14.99% of its shares. NAV was 132.05p/share at the end of March 2024, down from 134.6p/share one month earlier. There was £1.96m in income from digital assets during the month.
Apollon Formularies (APOL) has sent a general meeting notice for 28 May to gain approval of the cancelation of the Aquis quotation. The company is selling its IP to a Canadian company.
Rogue Baron (SHNJ) has acquired Eight Vodka for £70,000 in shares at 0.5p each. Eight Vodka is distilled eight times in Ecuador.
Trading in Silverwood Brands (SLWD) was restored following the completion of a capital reduction. Phoenix Asset Management increased its stake from 0.94% to 29.9%. In the first quarter a rebranding of Balmonds has disrupted sales. The costs of acquiring Cosme Science hit profitability of Sonotas.
One Health Group (OHGR) says it did better than expected last year with annual revenues improving from £20.5m to £23m. Net cash was £4.7m at the end of March 2024. There was a 13% increase in NHS patient referrals for treatments. New five-year contracts have been secured with the two largest customers.
RentGuarantor Holdings (RGG) says first quarter revenues were 62% ahead and the number of tenant contracts was 38% higher.
Investment company MaxRets Ventures (MAX) reported net assets of £19,000 at the end of October 2023, down from £497,000. There was no new investment during the year. A transformative acquisition is being sought.
Hydrogen Future Industries (HFI) more than halved the interim cash outflow from operating activities to £234,000. Ther was £263,000 in the bank at the end of January 2024, but £612,000 has been raised since then. Testing of the prototype wind turbine and the electrolyser has gone well.
Substrate AI (SAI) generated revenues of $8.6m in 2023. There was $4.42m in the bank.
Hacienda Management has taken a 7.48% stake in Supernova Digital Assets (SOL). Pete Mills increased his stake in Oscillate (MUSH) from 3.02% to 4.03%. DXS International (DXSP) chairman Robert Sutcliffe bought 100,000 shares at 1.46p/share.
AIM
Trinity Exploration & Production (TRIN) has agreed a bid from fellow AIM-quoted Trinidad oil and gas company Touchstone Exploration (TXP), which is offering 1.5 shares for every Trinity share. The Trinity shareholders will own one-fifth of the enlarged company. The combined group will be in a stronger position to make investments in new production. The Touchstone Exploration share price is 4.85% lower at 39.25p, valuing each Trinity share at 58.875p – the share price is 50% higher at 54p.
Alpha Financial Markets Consulting (AFM) has confirmed that BridgePoint Advisers has made a bid approach and Cinven is considering making a bid. Revolution Bars Group (RBG) has received interest from Nightcap (NGHT), which is assessing the situation and options include a bid or acquisition of some sites or subsidiaries.
Electric Guitar (ELEG) moved from the standard list to AIM following the reverse takeover of 3radical on 3 May. It is the first in a planned series of acquisitions in the digital marketing sector, where regulatory and market changes, such as the blocking of third-party cookies, provide significant growth opportunities. 3radical was acquired for 61.2 million shares valued at £1.28m. A fundraising generated £1.32m at 2.1p/share and that valued the company at £4.7m. 3radical was set up by the founders of campaign management software provider Alterian at the end of 2011 The shares had been suspended at 2.1p and they fell to 1.8p when trading recommenced on AIM.
Multi-channel retailer TheWorks.co.uk (WRKS) moved from a premium listing to AIM. The board felt the company was too small for the cost and regulatory burden of the Main Market. One of the attractions of AIM is that the company will no longer be classified as a Public Interest Entity and it will be able to choose an auditor from a wider range of firms. Singer forecasts a slump in pre-tax profit from £10.1m to £1m in the year to April 2024.
Cornish Metals (CUSN) has published a preliminary economic assessment of the South Crofty tin project in Cornwall. There is an after-tax NPV8 of $201m at a tin price of $31,000 /tonne. Pre-production capital requirement is $177m, which is higher than previous estimates, and there should be 14-year mine life. Life of mine all in sustaining cost is estimated at $13,661/tonne. Planned first production is in 2027.
Horizonte Minerals (HZM) has enough cash until 17 May and senior lenders have agreed to extend waivers on loans, including deferring interest payments, until 15 May. These lenders have security over the company’s assets. Horizonte Minerals has guaranteed the debt of the subsidiary that owns the Araguaia project. Discussions with creditors and investors continue in an attempt to achieve some recovery value for creditors. That may include the disposal of the Araguaia project. None of the proposals are likely to recover value for shareholders.
Arrow Exploration (AXL) grew average production from 1.3mboe/day in 2022 to 2.2mboe/day in 2023 and revenues increased from $28.1m to $50.6m, which was slightly lower than forecast. There was cash of $13m at the end of 2023 and this fell to $12m at the end of March 2024. Production has reached 2.9mboe/day in March, while drilling activity will lead to further increases in the medium-term. Canaccord Genuity has cut its 2024 revenues forecast from $103.9m to $98.6m and net cash is expected to be $17m at the end of 2024.
Trading at property services provider Kinovo (KINO) is ahead of expectations with organic growth of 23% in the year to March 2024. Underlying pre-tax profit should be more than £6m, excluding costs related to the DCB contracts, which were guaranteed by Kinovo when it was sold, still to be completed.
Mark Halpin has stepped down as chief executive of managed IT services provider CloudCoCo (CLCO) and MXC Guernsey, which holds a 10.6% stake, has extended its loan notes to 31 August 2026 in return for a £550,000 fee. The amount outstanding on the loan notes is £5.85m. MXC can also appoint an executive director and Ian Smith becomes interim chief executive. The shares returned from suspension following the release of figures for the year to September 2023 showing revenues 7% ahead at £26m. The loss was flat at £2.6m. There was a cash inflow from operating activities. Net debt was £6.3m at the end of September 2023.
Brake discs developer Surface Transforms (SCE) raised £6.5m fundraising at 1p/share. There will be a one-for 1.76036319 open offer at the same price. That could raise £2m. The cash will finance the scale up of manufacturing. Factory capacity will be increased to £75m. This year’s revenues are forecast to be £17.5m.
Gift wrap and stationery supplier IG Design (IGR) did better than expected in the year to March 2024 with margins recovering and pre-tax profit improving from $9.2m to $25.9m, compared with a forecast of $20.5m, even though revenues fell. Net cash nearly doubled to $95m. It appears the recovery is gathering pace. Management believes that margins could return to previous levels this year and an operating margin of more than 6% in 2026-27, suggesting a pre-tax profit of around $50m.
IT distributor Northamber (NAR) is acquiring Tempura Technology and Tempura Communications, which distribute unified communications products, for £6.02m in cash and 181,818 shares. There is £2.64m of the cash consideration contingent on EBITDA in the years ending June 2025, 2026 and 2027. This is a profitable business that has been growing organically.
Heavy mineral sands project developer Kazera Global (KZG) says recent changes at the National Nuclear Regulator in South Africa mean that it will have to provide additional information on how it will meet financial obligations. This should be funded by cash flow. A response is expected shortly and that will allow heavy mineral sands production to start in Alexander Bay, South Africa.
Oil and gas producer Jadestone Energy (JSE) reported a $91.3m loss for 2023 due to asset impairments, lower oil prices and higher interest costs. Capital investment has increased net debt to $110.5m by the end of March 2024. Average production in the first quarter of 2024 was 17,200 boe/day, which was hit by the Australian cyclone season. Production guidance for 2024 is 20,000-22,000 boe/day.
MAIN MARKET
Castings (CGS) did better than expected in the year to March 2024 and Canaccord Genuity upgraded its pre-tax profit forecast from £27.1m to £28.2m. Margins improved in the second half. Net cash is £32m.
Cybersecurity firm Narf Industries (NARF) is accelerating work on capabilities uniquely effective in battling a new generation threat. Developed was funded through a $2.3m contract from DARPA.
Andrew Hore
Quoted Micro 11 March 2024
AQUIS STOCK EXCHANGE
Luxury prize draw operator Good Life Plus (GDLF) raised £2.03m via a subscription at 2.25p/share, which is a premium to the market price of 1.875p. The subscriber is Winforton Investments, which is associated with Sportingbet founder Mark Blandford, which will have a 17.9% stake. The cash will be spent on marketing to accelerate growth and subscription numbers. Options have been granted to management at the subscription price. The reverse takeover of Semper Fortis Esports was done at 2p/share.
Cadence Minerals (KDNC) says the capital expenditure requirements for Amapa iron project have been reduced. Project financing talks continue with parties interested in taking a stake in the project. Cadence Minerals has invested $12.1m in Amapa and owns 32.6% of the project. The stake in Hastings Technology Metals has been sold. Cadence Minerals expects to leave the Aquis Stock Exchange on 5 April.
Food company Essentially Group (ESSN) is acquiring Best of Latin Foodstuff Trading for £1.95m. The company sources food from growers in Latin America and supplies hotels and restaurants in the UAE, where Essentially Group already supplies juices and other drinks. The deal will triple the revenues of Essentially Group. The former owner Catalina Onate will become an executive director of Essentially Group.
RentGuarantor Holdings (RGG) has raised £430,000 at 274p/share. The cash will finance the hiring of additional staff. Chief executive Paul Foy is converting £250,000 of convertible loan notes at 210p/share. He still has £250,000 of convertible loan notes.
Investment Evolution (IEC) is expanding into Spain, and it will grant subsidiary MRAL Spain non-exclusive recurring rights to the Mr Amazing Loans brand. Spanish company Investment Evolution Credit, not part of the group, will provide lending technology for a 49% stake in MRAL Spain.
Coinsilium Group Ltd (COIN) has raised £472,500 at 2.5p/share with executive directors subscribing £40,000. There have also been creditor payments of £83,900 in shares. Each new share comes with a warrant exercisable at 3.75p/share. The cash will be invested in Web3 and AI technology and provide working capital.
Marula Mining (MARU) has added to its team in Kenya. Gilbert Kibet is project geologist and Joy Chebet will be graduate geologist. Exploration work will commence on the Larisoro manganese mine in northern Kenya.
Flex Labs (FLEX) says Supernova Digital Assets (SOL), which is associated with its executive chairman, has sold 1.24 million shares and raised £81,425. These sales were between December and February. Supernova Digital Assets plans to return cash to shareholders via a tender offer after Phoenix Digital Assets (PNIX), in which it owns 30 million shares, completes its tender offer. There will have to be a capital reorganisation to enable the tender offer to happen and £242,000 has been raised at 0.1p/share for working capital while the capital changes are arranged.
Kasei Holdings has changed its name to Kasei Digital Assets (KASH). Non-executive director Bryan Coyne bought 75,000 shares at 9.75p each. Gunsynd (GUN) executive director Donald Strang bought three million shares at 0.148p/share.
AIM
Wealth management company Mattioli Woods (MTW) is recommending an 804p/share bid from a company owned by Pollen Street Capital. That values Mattioli Woods at £432m and shareholders will still receive the interim dividend of 9p/share. The 2203-24 prospective multiple at the bid price is less than 17, falling below 15 the following year. When it joined AIM in November 2015 at 132p/share Mattioli Woods was valued at £22.5m.
Challenger Energy (CEG) has secured a farm out deal for the OFF-1 exploration asset, offshore Uruguay with Chevron. Challenger Energy will retain a 40% interest. The oil and gas explorer will receive a cash payment of $12.5m on completion, plus a carry of up to $15m on 3D seismic and 50% of the cost of an exploration well up to a $20m share. However, a well could cost between $50m and $100m according to Zeus, so Challenger Energy could still have to make a cash contribution. Regulatory approvals will take months.
A large diagnostics company has made a bid approach to kidney disease diagnostics developer, Renalytix (RENX). This has sparked a formal sale process, so that the company can assess whether there are other potential bidders. It is also possible that there could be a decision to stay independent. Funding options are being reviewed. Costs have been reduced, but there is currently cash and securities of $3.7m and the cash outflows remain significant so this will only last until the end of April. A share issue and/or debt financing will be required.
Empire Metals (EEE) says study results for the Pitfield project in Western Australia show favourable mineralogy and metallurgy in the high-grade titanium samples. This should simplify processing. Around two-thirds of the contained titanium is titanite, which can be processed at low temperatures. The overall end product would be ideal for a titanium dioxide pigment producer.
Kinovo (KINO) estimates that the costs of the guarantees to complete work on projects taken on by ex-subsidiary DCB will be £2.9m higher than previously expected. Cash flow from the continuing operations will help to fund this but Kinovo will move into net debt by the end of March. This will not affect the pre-exceptional pre-tax profit forecast of £5.8m, up from £4.9m.
LungLife AI (LLAI) raised £1.8m at 35p/share. The lung cancer diagnostics developer is starting the commercialisation process for its diagnostic technology. The cash will fund the evidence generating activities, including an early access programme and clinical utility studies. There should be enough cash until April 2025.
Controlled environment agriculture technology developer Light Science Technologies (LST) has appointed former ITM Power (ITM) boss Dr Graham Cooley as non-executive chairman. He bought a 7.5% stake last year and has been awarded 6.66 million options exercisable at 5p each. Richard Mills, who is boss of the growing systems division of Haygrove and has helped to develop global partnerships, has also joined the board. Myles Halley and Robert Naylor have stepped down. The company has been broadening its activities into fire protection.
Performance nutrition products provider Science in Sport (SIS) is focusing on improving margins rather than growing revenues. This strategy change was in the fourth quarter of 2023, so there was not much time to affect trading. In 2023, revenue dipped from £63.8m to £62.8m due to lower online sales. The Science in Sport brand grew sales by 17%. Liberum trimmed its 2023 revenues estimate, but it also reduced the forecast loss to £4.8m. The 2024 forecast revenues have been cut, but the loss is still forecast to be £3.1m with a move to breakeven in 2025.
Duke Capital (DUKE) has exited another investment with a total return on invested capital of 2.1 times. Street lighting columns manufacturer Fabrikat has been acquired by Metalogalva. Duke Capital has already received £2.7m from Fabrikat and will receive a further £10m after the takeover. There is potential performance-related deferred consideration.
Netcall (NET) continues to build its annual contract values and they have reached £30m. Recurring revenues were three-quarters of the interim revenues. There is rapid growth in cloud business and the cash in the balance sheet enables consistent investment in research and development. Full year pre-tax profit will edge up to £6.7m.
Nexus Infrastructure (NEXS) has focused on its Tamdown civil engineering business and the remaining cash from disposals has come in handy in a tough time for the housebuilding sector. Revenues fell from £98.4m to £88.7m. There is still £14.6m in cash. The final dividend is 2p/share. The order book is recovering and was £57.2m at the end of January 2024. There should be a recovery in the housebuilding sector over the next year, but the timing is uncertain.
Strategic Minerals (SML) sold 4,898 tons from the Cobre magnetite stockpile during February. That is the highest monthly figure since March 2021. Quarterly sales should be around 13,000 tons and annual revenues from Cobre should be around $3.5m.
Floor levelling equipment supplier Somero Enterprises (SOM) reported a 10% dip in revenues to $120.7m because of the weak North American market. Europe and Australia performed better. Pre-tax profit fell from $42.3m to $34.5m and the dividend was reduced from 35.5p/share to 30.6p/share. This year’s revenues are likely to be flat, but additional investment in a new facility in Belgium means that there will be a further decline in pre-tax profit.
Saietta Group (SED) has appointed administrators and following the resignation of Canaccord Genuity as nominated adviser the AIM quotation will be cancelled at the beginning of April. The electric drivetrain technology developer company has failed to secure additional cash and although there is interest in the business no firm buyer has been found.
MAIN MARKET
Ground engineering and piling business Keller (KLR) reported flat revenues of £2.97bn, but operating profit was two-thirds higher at £180.9m – £150m was expected before the recent trading statement. Pre-tax profit jumped from £93.5m to £153.4m. Net debt was one-third lower at £146.2m. The dividend is one-fifth ahead at 45.2p/share. Non-core businesses are being exited. The year-end order book was worth £1.5bn.
Standard list shell Spiritus Mundi (SPMU) has entered into heads of terms for the purchase of InReste, which has developed clinical diagnostic tests and operates a laboratory in Singapore. Spiritus Mundi chairman Zaccheus Peh is the controlling shareholder of InReste and will be the controlling shareholder of the holding company after the acquisition.
IT services provider Triad Group (TRD) is winning new business and it returned to profit in November. There will be initial costs of contracts in the fourth quarter. That means that there will be a greater benefit in the first quarter of the next financial year.
Andrew Hore
Quoted Micro 19 February 2024
AQUIS STOCK EXCHANGE
Vehicle electrification technology developer Equipmake (EQIP) has raised £4m at 6p/share and a further £110,000 from a retail offer. This will fund research and development for the international market and finding opportunities in the US. There is also grant funding of up to £4.57m. The order book is valued at £13.1m and mainly relates to the bus market. The cash will last at least 12 months.
Coinsilium (COIN) says that the SalitaFinance AI-driven platform, where it has a 6.7% stake, has received investment from a top ten global infrastructure bank. Another investee company, crypto friendly payments company Greengage Global has secured an agreement with a new regulated partner and this will enable the earlier launch of Greengage’s US dollar currency accounts along with forex and SWIFT payments services for clients.
Investment Evolution Credit (IEC) has appointed Axis Capital Markets as corporate broker to help to raise up to £100m via the previously announced bond offering. The share price rose by 50% on the week to 60p. The December 2023 admission price was 4.5p.
RentGuarantor (RGG) has entered a three-year marketing deal with student letting company University Living. The rent guarantee service will be promoted to residential tenants. This will broaden access to the market.
Mortgage Chat (MCAI) has raised £105,000 at 0.05p each. The strategy is moving towards the development of an artificial intelligence platform called Mortgage Chat connecting borrowers and lenders.
Brewer Adnams (ADB) has asked advisers to explore options for funding growth plans.
Marula Mining (MARU) has published a shareholder circular to gain approval for a subscription by AUO Commercial Brokerage. The first subscription will raise £3.75m at 3.75p/share with further subscriptions potentially raising £4.78m at 10p/share. The general meeting is on 8 March.
BWA Group (BWAP) has come to a settlement with St-Georges Eco-Mining Corp, which will convert some loan notes into 146.2 million shares and cancel £1.42m of convertible notes. Connected parties will also be encouraged to rerun up to £1.8m of convertible notes.
TruSpine Technologies (TSP) has entered into a £50,000 loan note agreement with Martin Armstrong, a former chairman. This can be converted into shares at 2.5p each.
Lord Nicholas Monson has increased his stake in Lift Global Ventures (LFT) from 4.96% to 5.33%.
AIM
Katoro Gold (KAT) has raised £750,000 at 0.1p/share, along with warrants exercisable at 0.2p/share that could raise up to £1.5m, and it is planning board changes. Executive chairman Louis Coetzee is stepping down. Outstanding board fees of £91,000 have been reduced to £63,600. A new strategy will involve maximising value from existing interests and seeking new opportunities in critical metals, including uranium. Paul Johnson, who has previously run Power Metal Resources and Metal Tiger has been appointed strategic consultant. The company plans to change its name to Katoro Global Resources.
Good Energy (GOOD) is building on its energy efficiency services business through the acquisition of Maidstone-based JPS Renewable Energy, which is a solar and storage installation business. The initial consideration is £7m in cash and shares with deferred consideration of up to £6.75m over two years. The vendors placed 842,000 of the 1.32 million shares issued at 250p each. JPS generated revenues of £12.4m and pre-tax profit of £600,000 in the year to April 2023 and pre-tax profit could increase to £1.3m this year.
Neometals (NMT) says a review of the Spargos project in Western Australia indicates low potential for lithium-bearing pegmatites. Sampling did not produce any significant results. There will be field mapping to investigate two potassium anomalies and a strategic review of the project.
Gattaca (GATC) is still finding the permanent staffing market difficult, and first half net fee income is expected to decline 16% to £18.9m. This has led to downgrades for full year net fee income, but cost cutting has meant that the full year pre-tax profit forecast is maintained at £3m. The figures will be second half weighted.
Harvest Minerals (HMI) received fertiliser orders for 34,880 tonnes, of which 28,707 tonnes were invoiced in 2023. There have been 1,250 tonnes invoiced so far in 2024. Sales guidance is 70,000 tonnes for 2024. Cash was $630,000 at the end of 2023. Cost are being reduced.
Trading in Artemis Resources (ARV) shares has resumed on ASX. Trading was halted on 8 February although it continued on AIM. Artemis Resources published an update on the West Pilbara project exploration. This shows potential sub vertical orientation of pegmatites at Kobe and Osborne. The first drill hole potentially stopped short of the Osborne target. A drilling programme to test Osborne is planned for March to test near surface lithium rich zones.
M&A activity remains weak at professional services network operator DSW Capital (DSW) and that will hit this year’s profit. There appeared to be an improving trend, but January was poor and that hit network revenues. February is also set to be disappointing. The other activities are trading well. The 2023-24 pre-tax profit will be between £600,000 and £700,000. There was cash of £2.7m at the end of January 2024.
Baron Oil (BOIL) has raised £3m at 0.05p/share, while the retail offer generated £260,000. This will fund drilling preparations for the Chuditch-2 appraisal well south of Timor-Leste, which is planned for the fourth quarter. Shell discovered the Chuditch-1 gas field in the Chuditch production sharing contract in 1998. Timor-Leste authorities recently approved the farm-up agreement with TIMOR GAP Chuditch Unipessoal relating to the production sharing contract. Baron Oil’s subsidiary will retain 60% of the production sharing contract and the partner, which has increased its interest from 25% to 40%, will be responsible for 20% of all costs, including the Chuditch-2 appraisal well.
Beowulf Mining (BEM) is raising cash to invest in Kallak iron ore project in northern Sweden and the graphite anode materials plant in Finland. There will be a rights issue and a PrimaryBid retail offer in the UK raising up to £7.5m in total. A formal decision on the fundraising and pricing will be made on 7 March. A capital reorganisation will reduce the par value of the shares from 1p to 0.1p. The cash will be spent on the Kallak pre-feasibility study and environmental studies, which will enable the application for an environmental permit.
Bushveld Minerals (BMN) has received a $4m payment from Southern Point Resources, which will be repaid when the $12.5m subscription is finally received. This takes the interest free loans to $6m, which have been paid to a South African subsidiary. Southern Point Resources says that the subscription will be paid by 28 February. The financial position of the company is being managed so that vanadium production, which has restarted, can continue until the rest of the cash is received.
Coal miner MC Mining (MCM) advises shareholders not to accept the A$0.16/ share bid from a company controlled by the majority shareholders. One condition is the acceptance by 50.1% of the shares not owned by the bidder.
Crossword Cybersecurity (CCS) has entered a partnership agreement with IT distributor TD SYNNEX, which will sell Crossword’s Trillion threat intelligence platform.
MAIN MARKET
Pendragon has completed the sale of its motor distributor business and will focus on its motor dealer software. The name has changed to Pinewood Technologies (PINE).
Better contract news from data integrity and banking integration software provider Gresham Technologies (GHT), which has secured a $1.5m contract for its Claretti software. The customer is described as a cash management and retail digital services provider. The deal covers the US and is for five years.
HeiQ (HEIQ) is acquiring a manufacturing facility in Portugal to commercialise the AeoniQ synthetic filament yarns technology. Commercial production could start by 2026. Capacity will be 3,000 tons.
HeiQ wants to raise £2.44m. A placing raised £685,000 at 8.7p/share and there is a retail offer of up to £75,000 closing on 22 February. The rest of the cash will come from an issue of non-interest bearing convertible loan notes with a conversion price of 8.7p/share. Revenues were $41m in 2023, but EBITDA will be lower than expected. Net debt is $2m. The year end is being changed from December to June 2024.
XP Power (XPP) says that weak demand meant that 2023 figures will be well below expectations. The 2024 results will be second half weighted. Net debt was £112.7m at the end of 2023.
Carclo (CAR) is closing its Tucson facility and manufacturing will be moved to Pennsylvania.
BSF Enterprise (BSFA) is setting up a separate subsidiary to develop a cultivated leather business.
Dispensa (DISP), originally known as Zamaz, is calling a general meeting on 14 March to gain shareholder approval for the delisting from the standard list.
Andrew Hore
Quoted Micro 11 April 2023
AQUIS STOCK EXCHANGE
Aquis Exchange (AQX) has launched Aquis Equinox, which is a regulated market-grade 24/7 matching engine. Rival exchange models need to be shut down to perform resets and maintenance. Aquis Equinox will be offered via the cloud or on-premise. Chairman Glenn Collinson bought 7,500 shares at 400p each and 5,000 shares at 412p each. Chief executive Alasdair Haynes acquired 10,000 shares at 390p each.
Marula Mining (MARU) has observed high grade graphite mineralisation at Nyorinyori project in Tanzania. Results from sampling are expected in the second quarter of 2023. There have also been two major graphite prospects observed at the Bagamoyo project. Further mining licences could be added to the project. Site works at the 75%-owned Kinusi copper project are just starting and there are plans to install a copper processing plant. Brahma Finance has converted £265,000 of loan notes at 2p a share.
Invinity Energy Systems (IES) says it has delivered more than 11.4 MWh of batteries so far in 2023. There are more batteries due to be delivered to projects in Australia and California.
Gunsynd (GUN) reported a realised and unrealised loss of £305,000 in the six months to January 2023. Net assets were £3.28m, including cash of £304,000.
RentGuarantor Holdings (RGG) increased revenues by 92% in the three months to March 2023.
NFT Investments (NFT) says that its crypto assets are worth 2.77p a share at 2 April. The majority is in Bitcoin and Ethereum.
Walls and Futures REIT (WAFR) has sold Pax Homes to chief executive Joe McTaggart for £1. Pax Homes has acquired IP by issuing Walls and Futures REIT 100,000 5% preference shares redeemable on 1 April 2029. This IP was valued at £118,000.
Decentralised finance business incubator AQRU (AQRU) lost £5.94m last year and net assets fell from £12.2m to £6.56m by the end of October 2022. That includes cash of £4.84m. That was before the £2.3m invested in Streaks Gaming. The annualised cost base has been reduced by two-thirds.
TruSpine Technologies (TSP) has terminated a consultancy agreement with a company that provided the services of Frank Boehm, who was the inventor of some of the company’s spinal stabilisation systems technology. He is challenging the company’s ownership of the IP.
Several SunNOx Group (SNOX) shareholders have entered into option agreements with RemNOx over 24 million shares at 30p each. The option lasts until 29 September. That could take the RemNOx stake to 29.8%.
KR1 (KR1) says NAV was 68.22p a share at the end of February 2023, up from 30.6p a share at the end of June 2022.
Wishbone Gold (WSBN) says that it appears that the Red Setter project is a potential analogue of the 26 million plus ounce Telfer deposit 15kn north east of the project.
Oberon Investments (OBE) is raising £450,000 at 3.5p a share.
Six Capital for Colleagues (CFCP) directors and people closely associated with them have bought a total of 709,064 shares.
Trading in the shares of S-Ventures (SVEN) has been suspended because its accounts have not been published.
AIM
Reading-based Ocean Harvest Technology Group (OHT) joined AIM last week. The company produces ingredients for animal feed using seaweed. Although the business started in Ireland, the main trading business is in Vietnam. The brand name of the products is OceanFeed and there are different products for different animals. Management believes it has spent €20m on developing and commercialising these ingredient products. A placing raised £6m, or £4.5m after expenses, at 16p. That valued the company at £20.1m. In 2022, revenues grew from €2m to €3m and the loss increased from €1.46m to €2.9m.
Fadel Partners Inc (FADL) joined AIM last week and raised £7.55m at 144p a share. It provides rights and royalty management and brand compliance services. There is £4.6m set aside for boosting sales and marketing and services supporting them. There will also be funding for research and development.
Franchise Brands (FRAN) is making its largest ever acquisition and raised £92m from a share placing at 180p. This will help to finance the £200m purchase price for Pirtek Europe, plus working capital adjustment of £12.2m. Pirtek Europe provides on-site hydraulic hose replacement and other services through 213 service centres and 838 mobile service vans. There are 70 franchisees in eight countries and the company has the right to enter eight other European countries. Franchise Brands will have operations in ten countries. Forecast 2023 group revenues are £155m or £168m on a pro forma basis. Forecast 2023 group EBITDA is £29m.
Restaurants operator Fulham Shore (FUL) is recommending a 14.15p a share cash bid by Tokyo-based TORIDOLL Holdings. TThe bidder has revenues of around £1bn and already has European interests. It works with specialist private equity firm Capdesia in Europe. The takeover will enable greater expansion of the Franco Manca and The Real Greek brands.
Logistics firm Xpediator (XPD) has recommended the 42p a share bid that was initially proposed last year. The shareholders will also receive a special dividend of 2p a share.
Floorcoverings distributor Likewise Group (LIKE) continues to gain share in a tough market. First quarter revenues were 19.7% higher. Last April’s acquisition Delta Carpets was not included in the comparative period, but it is not a big business. Higher prices helped but there was significant underlying growth.
Linear generator technology developer Libertine Holdings (LIB) shares declined after management revealed delays in development work that mean that 2022-23 revenues could be up to £400,000 lower than the expected £1.32m.
Saietta Group (SED) won the largest ever order for its eDrive systems. The £5m order is for 3,000 bespoke systems based on the AFT140 motor from Nasdaq-listed urban delivery vehicles manufacturer AYRO. Saietta is exclusive supplier for the Vanish vehicle launched in February. First deliveries will be in the autumn and the full number delivered by the end of 2024.
Tungsten West (TUN) is restructuring the operations of its Hemerdon tungsten and tin project in Devon. Costs will be cut, and surplus assets sold. Concentrate already on the site will be sold. Project funding is being discussed. A convertible note issue raised £7m and an open offer could raise up to £2m.
Block Energy (BLOE) has improved its financial position, and the salary sacrifice scheme started in April 2020 has come to an end. Cash generation in building from the WR-B01Za, which is producing 274 barrels of oil/day. There is optimism about further wells.
MAIN MARKET
World Chess (CHSS) has been seeking to join the stockmarket since the end of 2019, when the business was starting to build up. It has arrived on the standard list having raised £3.04m at 6.25p a share. The share price ended the first day of trading at 6.5p (5p/8p). There were no trades reported. World Chess has the commercial rights to chess governing body FIDE’s online chess gaming platform, the Grand Prix series, the Candidates Tournament and the FIDE World Chess Championship. The Russia-based business was sold last year.
Aura Renewable Acquisitions (ARA) got had £809,000 in cash following a £236,000 loss in 2022 – mainly down to the expenses of the flotation. That means there is around 8p a share in cash, which is a premium to the market price. The flotation price was 10p. Cash shell Aura Renewable Acquisitions is still considering its first acquisition. The directors are not taking any fees and the ongoing expenses are minimal.
Andrew Hore
Quoted Micro 3 April 2023
AQUIS STOCK EXCHANGE
Aquis Stock Exchange owner Aquis Exchange (AQX) reported an increase in revenues from £17.2m to £19.9m in 2022. The pre-tax profit improved from £3.6m to £4.5m. that reflects the operational gearing. All three parts of the business were profitable. In the cash of the Aquis Stock Exchange this was probably the first time it has made a profit in any of its incarnations. This was on the back of a 48% increase in issuer fees because of the 22 new companies joining the market.
Wine maker Chapel Down Group (CDGP) increased underlying pre-tax profit by 22% to £1.7m in 2022. Singer expects this profit level to be maintained in 2023 before more than doubling to £4m by 2026. Net cash is £3.3m. NAV is 38p a share.
Arbuthnot Banking Group (ARBB) reported better than expected 2022 results. Pre-tax profit jumped from £4.6m to £20m and the dividend was raised by 11% to 42p a share. The loan book increased by 11% to £2.2bn. NAV is 1411p a share.
Good Energy (GOOD) 2022 revenues jumped from £146m to £248.7m as energy prices increased, while the energy supplier returned to profit. There was net cash of £19m at the end of 2022. The book value of Zap-Map is £13m. Management is seeking to expand its energy efficiency services operations.
Ananda Developments (ANA) published a medicinal cannabis research round-up. The sublingual spray shows promising results in diabetes type 2 patients. There has also been progress in explaining the mechanisms of action of CBD alleviating bladder pain syndrome. Shareholders voted for the acquisition of MRX Global.
A £289,000 interim cash outflow at Tectonic Gold (TTAU) was partly offset by the £101,000 of proceeds of the sale of shares in Kazera. There was net cash of £46,000 at the end of 2022.
Visum Technologies (VIS) made an interim loss of £457,000 on revenues of £120,000. The first US location for its theme park video technology was opened in November. Debt financing has been secured for rides and attractions. Existing sites in Europa Park and Linnanmaki will reopen in April. The financial position is expected to improve.
Valereum (VLRM) has sold shares in subsidiary Valereum Collections raising £70,500 at 625p a share. Valereum retains a 99.8% stake in the company, which will operate the group’s NFT programme. The Valereum share price dived 23.6% to 5.25p, which is a new low for the year.
KR1 (KR1) has invested $500,000 in Hydra Ventures, which supports and incubates decentralised autonomous organisations, in return for 5,000 HYDRA tokens. This is part of a $10m fundraising.
Capital for Colleagues (CFCP) had net assets of 77.78p a share at the end of February 2023. There are 13 companies in the investment portfolio. Castlefield Investment Partners has reduced its stake from 45.9% to 42.1%.
Invinity Energy Systems (IES) has made a sale of a 1.5MWh energy storage system to STS Group for a solar storage project in Hungary.
ChallengerX (CXS) had £92,000 in cash at the end of 2022, and a £250,000 subscription announced in February has yet to be received. The development of the company’s marketing platform requires more money.
RentGuarantor Holdings (RGG) has entered into an agreement with Vorensys for the use of the RentGuarantor services. Vorensys provides tenant referencing services.
CRUSHMETRIC Group Ltd (CUSH) has issued an unsecured convertible bond with a principal of S$250,000 (£151,000), which has a coupon of 10% and matures in February 2026.
SuperSeed Capital (WWW) boss Mads Jensen bought 3,000 shares at an average price of 83p each.
Shares in Asimilar (ASLR) fell ahead of the trading suspension on 3 April due to the accounts not being published in time.
AIM
Scottish gold producer Scotgold Resources (SGZ) has been hit by falling ore grades at the Cononish gold mine. The average gold grade in January was 5.65g/t. compared with an estimated grade of 7.35g/t. A different part of the mine is being developed and the production process is being changed. Shore has its forecasts under review because of concerns about the financial position of the company.
Daisy Group is making an agreed bid for ECSC (ECSC), which values the cyber security services provider at £5.4m. The bid is 54.02p for each share in cash. ECSC joined AIM at the end of 2016, when it raised £5m at 167p a share.
Cameroon-focused oil and gas company Bowleven (BLVN) had $2.45m in cash and investments at the end of 2022 and it is considering its options for raising more money. Bowleven will need cash to invest in the Etinde project, although there will not be progress there until Perenco completes the purchase of New Age’s operating interest. Bowleven’s interest in Etinde is estimated to be worth more than $150m.
Footwear retailer Unbound Group (UBG) has received a 10.5p a share potential offer from WoolOvers Group. There would also be a contingent value right that would give shareholders the proceeds of any insurance claim related to business interruptions due to Covid lockdowns. Unbound management says it would be likely to accept this offer. The recent fundraising was at 15p.
Building and architecture software supplier Eleco (ELCO) reported 2022 results that were the first 12 months of an 18-month period where the switch to a focus on SaaS is holding back revenues, which dipped 3% to £26.6m. Pre-tax profit was better than expected at £3.6m and net cash was £12.5m. The final dividend is 0.5p a share with a special dividend of 0.58p a share on top. This year’s pre-tax profit is expected to be £3.8m.
Sustainable fuels developer Velocys (VLS) has risen on the back of the latest UK government consultation paper on sustainable aviation fuel, which identifies the Fischer Tropsch process as part of the main technology. This can be supplied by Velocys, which has active projects in the UK and US.
Video games developer tinyBuild (TBLD) is investing in new games, so there has been a reduction in net cash. However, the strong back catalogue means that the business is resilient and not dependent on one game becoming a hit.
MAIN MARKET
Used car finance and property bridging loans provider S&U (SUS) reported full year results in line with expectations. In the year to January 2023, underlying pre-tax profit dipped from £47m to £41.4m, after higher bad debt provisions of £13.9m. Even so, the provision is still relatively low. Used car prices continue to rise, but at a lower rate than early last year. Net debt was £192.4m at the end of January 2023, compared with committed facilities of £210m. The dividend was raised to 133p a share.
Standard list shell Marwyn Acquisition Company II (MAC2) has appointed former Curtis Banks Group chief executive Will Self as the chief executive – pensions division. This year, AIM-quoted Curtis Banks was acquired for 350p a share in cash by Nucleus Financial Platforms, which valued the SIPP administrator at £242m. Will Self will lead the search for suitable financial services acquisitions. The strategy has been further refined to include themes including changing population demographics, intergenerational wealth transfer, social and family support and concentration of wealth.
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