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Andrew Hore – Quoted Micro 7 September 2020
AQUIS STOCK EXCHANGE
Daniel Thwaites (THW) had net debt of £65.4m at the end of March 2020 and this increased to £71.8m at the end of June following the closure of the company’s pubs and hotels. There is £12m of headroom in the current facilities but management is considering increasing the borrowing facilities. The sites were reopened on 4 July or shortly after. There has been steady growth in sales.
Altona Energy (ANR) has signed heads of agreement to acquire up to 75% of the Chambre rare earth project in southern Malawi. There is a backlog of exploration licence applications following recent elections. The trading suspension will end when new funds are raised. A funding will be launched via investment platform www.NRPrivateMarket.com once an exploration licence is granted in Malawi or heads of agreements are signed for another deal.
SulNOx Group (SNOX) has received a requisition from two shareholders (James Redman Jr and Sungold Escrow Nominees Ltd) for a general meeting. They own more than 5% of the company. A date for the general meeting has to be announced within three weeks.
European Lithium (EUR) has appointed Kimon Gkomozias to the board as part of its strategic agreement with EV technology metals project developer Talaxis. He will help European Lithium obtain funding. A placing is planned to raise $2m at 4.5 cents a share.
Cadence Minerals (KDNC) has obtained agreement in principle for the bank creditor settlement relating to the Amapa iron ore project.
EPE Special Opportunities (ESO) has made a £1.9m investment in Atlantic Credit Opportunities Fund (ACOF), a distressed credit fund. EPE’s investment advisor Epic Private Equity intends to acquire a controlling stake in Atlantic Capital Management, which manages ACOF.
Forbes Ventures (FOR) has set up Forbes Ventures Cell 1 Ltd to acquire UK-issued litigation funding loans. The rights to these loans will be assigned to and securitised by Malta-based Forbes Ventures CC1, which is planning to raise money via a bond issue. A Forbes subsidiary will receive a fee of 2% of the funds raised.
World High Life (LIFE) is assessing investment targets in the medicinal cannabis sector. This includes areas such as synthetic cannabinoids.
Trading in the shares of Sativa Group (SATI) has been suspended while Stillcanna awaits the approval of the Canadian Stock Exchange for the takeover of Sativa. The enlarged group plans to gain readmission to the Acquis Stock Exchange as Sativa Wellness Group Inc.
Alfred Henry Corporate Finance has been appointed as Eastinco Mining and Exploration (EM.P) corporate adviser.
Sumner Group Health Ltd (SGRL) has confirmed its withdrawal from the market on 8 September.
AIM
Capital equipment supplier Mpac (MPAC) has continued to secure orders even with the disruption caused by COVID-19. Interim revenues fell by one-fifth to £36.6m, but services revenues continue to grow. Underlying pre-tax profit fell from £4.5m to £2.5m. The order book is worth £45.4m. Net cash was £22.5m at the end of June 2020. Full year pre-tax profit is expected to fall from £7.5m to £5.2m.
CyanConnode (CYAN) was hit by delays to contracts in the 15 months to March 2020, but it appears to have a strong base for the current financial year. The smart meter technology developer is still losing money, but it has shown that it can manage its cash effectively by gaining advance payments on orders. Net cash was £1.2m at the end of March 2020.
Mattress supplier eve Sleep (EVE) says current trading is ahead of expectations and the full year loss is expected to be slightly lower than previously. Net cash of £5m is forecast for the end of 2020.
Cake Box (CBOX) has made a strong start to the new financial year. The franchised retailer of egg-free cakes is even offering a special dividend of 3.2p a share. Equity Development forecasts a rise in earnings per share from 7.8p a share to 9p a share in the year to March 2021.
7Digital (7DIG) has raised £6m at 2.25p a share, having sought a minimum of £5m. The streaming technology developer will be able to take advantage of opportunities in areas such as home fitness and social media.
Musical instruments retailer Gear4Music (G4M) has continued its sales momentum in the new financial year. There will be an interim trading statement on 22 October.
Driver monitoring systems developer Seeing Machines (SEE) has unveiled a new product strategy. This involves a focus on a chip whose performance is optimised by a neural processing unit called Occula. It will be made easier for automotive clients to integrate this technology. There are also plans to licence the Occula technology.
Nostra Tera Oil and Gas (NTOG) is acquiring a 100% working interest in the Caballos Creek oil field in Texas, which has an economic life of between 16 and 32 years. The cost is $425,000 and there should be a two-year payback. There are proved reserves of 92,100 (69,300 net) barrels of oil equivalent. Current production is 30 (22 net of royalties) barrels of oil per day, which increases Nostra Terra’s production by 25%.
Matthew Freud increased his stake in Reach4Entertainment (R4E) to 19.99% before trading on AIM ended.
Omega Diagnostics (ODX) has CE-marked Mologic’s lateral flow antibody test for COVID-19, which picks up infection at an earlier stage than most tests.
Allergy Therapeutics (AGY) has in-licensed the virus-like particle vaccine technology from Saiba and DeepVax for use in solid tumours, atopic dermatitis, asthma and psoriasis. This broadens the scope of the group, but it continues to focus on allergy treatments.
MAIN MARKET
Consumer products supplier Creightons (CRL) increased full year revenues by 9% to £47.8m, while an improved profit margin meant that pre-tax profit increased from £2.87m to £3.55m. A final dividend of 0.5p a share is proposed.
Papillon Holdings (PPHP) has signed heads of agreement to acquire gold assets in Africa. It plans to acquire 100% of Kilmapesa in Kenya and 70% of the Kakamoeka gold project in Congo Brazzaville. They could provide near-term gold production.
Andrew Hore
Andrew Hore – Quoted Micro 17 August 2020
AQUIS STOCK EXCHANGE
Brewer Adnams (ADB) reported a slump in revenues from £34.7m to £21m in the six months to June 2020 and there was a loss. That is no surprise given the problems of the hospitality sector. Online sales grew but could not offset the loss of on-trade sales. Net debt was £14m at the end of June 2020.
Medical device developer TruSpine Technologies (TSP) is on course to join the Aquis Stock Exchange on 20 August. TruSpine wants to raise £1.5m, which would give it a valuation of £31.5m. The investment is eligible for EIS-relief. TruSpine expects to make a FDA submission for Cervi-Lok, which is one of the three spinal stabilisation devices being developed, in the fourth quarter of 2020. Existing Aquis-quoted company Primorus Investments (PRIM) is an investor in TruSpine. In 2017, it invested £500,000 at a pre-money valuation of £15m. Another Primorus investment, Greatland Gold (GGP), has performed strongly in the second quarter and the share price is more than 155% ahead over the period.
NQ Minerals (NQMI) has raised a further £695,000 at 7p a share. NQ has also secured a $55m loan facility to refinance the project debt of the Hellyer gold mine. Interest savings should be $3.4m a year. Chairman David Lenigas has acquired 20,000 shares at $0.12 each.
Sativa Group (SATI) had a record July. The CBD products supplier has benefitted from sanitiser demand.
TechFinancials (TECH) reported a loss of $492,000 in the first half of 2020. There is $716,000 in the bank. The closure of the trading software operations will be completed in the second half. The Footies ticketing business still has not progressed in terms of signing up clients.
Recruitment company Sumner Group Health (SGRL) intends to withdraw from Aquis in order to save money. A general meeting will be held on 3 September.
IamFire (FIRE) has completed the purchase of a 10% stake in Bio2pure, in a deal that values the company at £8m. The investee company’s CoviPure disinfectant has been launched
AIM
Energy supplier Yu Group (YU.) has been criticised for its financial controls and systems back in 2018. A £300,000 fine has been waived because remedial action has been undertaken. Yu has acquired Bristol City Council-owned Bristol Energy’s B2B business for an initial £1.24m.
Appreciate (APP) was going to have a tough year even before COVID-19. In the year to March 2020, underlying pre-tax profit fell from £12.5m to £11.4m and there is likely to be a much larger profit decline this year. Trading has improved after a tough first quarter. If Appreciate had not been investing in its digital products it would have found recent months even more difficult. A property has been sold for £3.2m, which further enhances the cash pile of £29.6m at the end of March. The hamper business will be closed this year, but the overall Christmas savings business is holding up. Corporate demand is recovering.
Investment in VW emissions case work will hold back profit in the second half at credit hire firm Anexo (ANX). Lockdown led to a sharp fall in interim profit, but business is building up again. Profit could return to the 2019 level of £23m in 2021, even if there are no VW case revenues. A 0.5p a share interim dividend is being paid.
The geographic and sector spread of recruitment firm Empresaria (EMR) has helped it cope with difficult trading, particularly in its airline-related business. The business was profitable in the first and second quarters. The underlying interim pre-tax profit fell from £3.7m to £2.4m. There is no full year forecast.
Touchstone Exploration (TXP) has commenced drilling at Chinook on the Ortoire block in Trinidad. Chinook is valued at 2p a share by finnCap, but it could be significant like previous find Cascadura, which is valued at 78p a share. Cost cutting has helped to reduce year-on-year per barrel operating costs by 28% in the second quarter. There was still a second quarter loss. Production has declined to 1,396 barrels/day in the second quarter, but this will rise substantially when Cascadura comes into production.
STM (STM) has acquired pensions administrator Berkeley Burke for up to £2.9m. this will add to the UK operations. The business will be rebranded.
Pennant International (PEN) has an order book worth £36m and net cash of £2m. Annualised cost savings of £1m will help the second half performance and a profit is expected. That may not be enough to cover the first half loss.
Pires Investments (PIRI) investee company Getvisibility has signed a US distribution agreement. The data security business will gain access to US government work.
Matthew Freud has taken his stake in Reach4Entertainment (R4E) to 18.7%. The company’s chief executive has increased his stake to 18.7%. The general meeting to vote on the proposal to leave AIM is on 21 August.
MAIN MARKET
Tex Holdings (TXH) says interim revenues fell from £21.8m to £18.5m and the loss has increased from £351,000 to £1.36m. There is £2.54m in the bank, but net debt is £10.7m. The board still wants to raise more cash. The plastics business is still profitable, although it made a lower contribution. The engineering loss was slightly lower, but boards and panels fell from profit to loss.
MATCHED BARGAINS
Fastjet (FJET) is moving from AIM to Asset Match and the airline is reregistering as a private limited company. Trading is expected to start on 24 August. The first auction will be on 30 September.
Andrew Hore
Andrew Hore – Quoted Micro 1 June 2020
AQUIS STOCK EXCHANGE
Newbury Racecourse (NYR) says that it plans to host racing during June and July, although there will be no crowd. There will be income from media rights and betting shops are set to reopen on 15 June. The Rocking Horse nursery reopens on 1 June, although the hotel at the racecourse will remain closed. The £2.75m loan from Compton Beauchamp Estates has been extended to April 2022. David Wilson Homes is expected to make the next land payment of £10.98m by then. The 2019 audited accounts should be published by the end of July.
First Sentinel (FSEN) is making an investment in proposed Aquis Stock Exchange company Vulcan Industries. It will pay £234,000 for shares at 3p each and is also providing a convertible loan facility of up to £500,000 with an interest rate of 12%. There is an arrangement fee of £50,000 in shares. The initial stake is 4.56% of Vulcan, which plans to be a consolidator in the engineering sector. First Sentinel has raised £117,000 at 21p a share.
SG Recruitment Ltd (SGRL) is supplying hand sanitiser to the NHS and that should generate £650,000 in gross profit in this financial year. The contract lasts for an initial 11 weeks. In the six months to September 2019, gross profit is £288,000.
Cannabis-focused shell Greencare Capital (GRE) says that it remains in discussions with its principle potential acquisition and other opportunities. As lockdown conditions ease the discussions should gain momentum.
Employee-owned businesses investor and adviser Capital for Colleagues (CFCP) doubled unrealised gains from £630,000 to £1.33m at the interim stage and this helped pre-tax profit improve from £585,000 to £1.28m. NAV was 50.17p a share at the end of February 2020, although this figure has subsequently declined. TG Engineering went into administration in April, but this investment had already been written-off.
European Lithium Ltd (EUR) has secured an agreement with Talaxis for help with completing the definitive feasibility study on the Wolfsberg lithium project. Talaxis has expertise in developing electric vehicle technology metals. An introduction fee of 5% is payable for a debt or equity raising, plus a total of up to 36 million shares depending on the achievement of milestones. There is a minimum one-year non-exclusive period. Creditors and short-term loans of $743,000 have been converted into shares.
KR1 (KR1) investee company Argent Labs has raised a further $12m and this puts a value of $260,000 on the stake in the mobile crypto wallet developer.
Formation Group (FRM) has swung from an operating loss of £137,000 to a profit of £175,000 at the interim stage. This was supplemented by a £766,000 gain on financial assets to generate a £941,000 pre-tax profit. There is £5.18m in the bank and net assets were £21.7m at the end of February 2020.
Investment company Forbes Ventures (FOR) says that it expects its litigation funding project to male progress over the next few months. This should generate cash for the business and other projects are being assessed.
Early Equity (EEQP) increased its interim loss from £68,000 to £344,000. Early Equity has suspended its application to the standard list.
AIM
Safestay (SSTY) ended 2019 with 20 hostels across 12 European countries. In 2019, revenues increased by one-quarter to £18.4m and 49% of this comes from outside of the UK. There was a small pre-tax loss, which will increase this year due to closures because of COVID-19. Liberum believes that net bank debt will be £26.3m by the end of 2020. The share price is less than one-third of the NAV of around 56p a share.
In-game advertising technology develop Bidstack (BIDS) has received its first advertising bookings in the US. The company expects significant second half revenues.
Mattress retailer eve Sleep (EVE) says demand improved in April and May putting it in a position to meet full year expectations. A loss of £3.6m is forecast. The online focus has helped because high street retailers have closed. There have also been opportunities to buy TV advertising at attractive rates. The Woodford stock overhang has been cleared.
First quarter trading at fryer management services provider Filta (FLTA) started well and margins were improving. The catering customer base has been hit by the COVID-19 lockdown and Filta is offering additional services. Last year, organic revenue growth was 16%. Net debt was £2.1m at the end of 2019.
MAIN MARKET
Motor dealer Caffyns (CFYN) says it still expects to make a profit in the year to March 2020. Aftersales have restarted and showrooms are set to reopen. There is an annual salary ceiling of £37,500 for all active employees in April. This is being unwound.
Moss Bros (MOSB) bidder Brigadier has decided to withdraw its appeal to the Takeover Panel and the bid needs to be approved by the courts to be finalised.
Path Investments (PATH) has found a new acquisition target to replace the purchase of FineGems. Path is buying a 75% stake in the DT Ultraviolet technology owned by AIM-quoted Zoetic International (ZOE). Path will also acquire the nitrogen reserves and assets owned by Zoetic. The DTU refracking well stimulation technology is cheaper than existing technologies. Path will issue 15 million shares, and 15 million warrants exercisable at 1.5p each, to pay for the assets. Path will also pay a royalty of 5% on DTU revenues.
Cash shell Fandango Holdings (FHP) says the prospectus for the acquisition of an oil well services company is currently being prepared. There will also be a placing.
Avation (AVAP) has ended its formal sales process. Disruption to the aviation sector means that a realistic bid is unlikely.
Cathay International Holdings (CTI) is planning to transfer from a premium to a standard listing even though shareholders did not pass the resolution when it was previously tabled.
Nanoco (NANO) has signed a quantum dot material supply agreement with STMicroelectronics. Initial purchases will generate cash during the rest of 2020.
Seafox international says that is has no longer intends to bid for Gulf Marine Services (GMS).
Andrew Hore
Andrew Hore – Quoted Micro 4 May 2020
AQUIS STOCK EXCHANGE
Ace Liberty and Stone (ALSP) says that £2.2m of loan notes has been converted into shares at 50p each. The property portfolio has a resilient tenant base, with the majority of rents owed by national and local government tenants. During March, 82% of rents were paid. Four tenants are facing short-term difficulty. Ace will defer dividend payments.
SG Recruitment Ltd (SGRL) has signed contracts to supply nurses to Saudi Arabia and domestic workers to Bahrain and Malaysia. There is also a contract to supply personal protection equipment to the NHS. These deals are worth £800,000 in this financial year. Aaamir Quraishi has resigned as a director.
Cadence Minerals (KDNC) is raising £645,000 at 6p a share. The cash will be used to finance the bridging loan, with an annual interest rate of 18%, to fund the start-up of shipping iron ore from the Amapa project.
GP software provider DXS International (DXSP) believes that it can still match last year’s revenues despite COVID-19. New product launches have been delayed. There is cash in the bank to cover working capital.
Ananda Investments (ANA) says that medicinal cannabis strains are being analysed by Dr Dedi Meiri in Israel. Dr Meiri is assessing the anti-inflammatory properties of cannabis for treating coronavirus. Ananda intends to broaden its licence application for cannabis growth to the anti-inflammatory area.
Gunsynd (GUN) had net assets of £1.72m at the end of January 2020, including £225,000 in cash. The investment in Brazil Tungsten has been written down from £400,000 to nil. Management is assessing potential investments in the Australian precious metals sector.
SulNOx Group (SNOX) intends to raise £400,000 at 40p a share. Each share will also come with a warrant exercisable at 40p.
Trading in Lombard Capital (LCAP) shares has been suspended until it makes a full announcement about the proposed recycling acquisition.
KR1 (KR1) has invested $75,000 in the Union Finance project, which is a credit mutual on Ethereum. Loans will be offered via blockchain.
NQ Minerals (NQMI) has appointed VSA Capital as corporate broker.
AIM
NWF (NWF) has traded strongly, although May is likely to be weaker. Even so, pre-tax profit in the year to May 2020 is set to be substantially higher than the previous year. Food distribution was highly active in March and April. There were initial inefficiencies, but the division has adapted. The Crewe warehouse has started operations. The fuels division has benefited from lower oil prices. Heating oil demand has been strong, although the decline in economic activity has hit demand from commercial customers. Feeds demand is in line with expectations, although increased commodity prices could make trading more difficult in the coming months.
Trans-Siberian Gold (TSG) has identified a significant extension of Vein 25 North at the Asacha gold mine. There is potential to significantly increase the mineral resource. Production from Vein 25 North should commence earlier than anticipated this year.
Ariana Resources (AAU) says that its Kiziltepe mine joint venture has repaid its $33m loan that it received to finance the construction of the mine.
MAIN MARKET
Seafox International has proposed a 9 cents a share bid for Gulf Marine Services (GMS) but it has been rejected. GMS will be hit by the low oil price and it has net debt of $390m. GMS argues that it is cutting costs and still winning new business.
Nanoco (NANO) has ended its formal sale process due to economic uncertainty and the lack of a realistic bid. There is enough cash to take the company into the second quarter of 2021.
Cardiff Property (CDFF) edged up its NAV to 23.03p a share in the six months to March 2020. The Thames Valley property market is holding up. The interim dividend was raised from 4.6p a share to 4.8p a share.
Andrew Hore
Andrew Hore – Quoted Micro 17 February 2020
NEX EXCHANGE
NEX and AIM-quoted Arbuthnot Banking Group (ARBB) says that there has been an increase in the level of confidence in its markets since the General Election. That was too late to have much effect on the 2019 results, but full year pre-tax profit will be at the upper end of expectations. Last year, customer loan balances rose by 31% and deposits by 22%.
Sativa Group (SATI) says that it welcomes the guidance from the Food Standards Agency on the safe use of CBD products and the timetable for novel food authorisation. Management points out that Sativa’s products do not include THC. Sativa expects to report 2019 gross profit slightly higher than expectations on lower than marginally lower than expected. Goodbody Wellness has piloted three retail stores, but they did not perform as well as expected. PhytoVista Laboratories has completed more than 3,000 tests on cannabis-based products. That includes Sativa’s own products and a new sports range is near launch. Medicinal cannabis-based development is focused on veterinary treatments.
EPE Special Opportunities (ESO) has increased its NAV by 55% to 317.2p a share following a strong performance by Whittard of Chelsea and a recovery in the share price of fully listed Luceco. Pharmacy2U continues to grow strongly. Last year, 2.3% of the shares in issue were bought back by the company. New investments are being sought for available funds.
Ethical housing investor Walls and Futures REIT (WAFR) increased its NAV by 15% to 106p a share in the year to January 2020. Chief executive Joseph McTaggart bought 1,991 shares at 61.75p each.
Hellyer gold mine operator NQ Minerals (NQMI) has raised a further £210,000 at 7p a share.
Investment company Primorus Investments (PRIM) has benefitted from the sharp share price rise in Greatland Gold (GGP) and the stake is worth two-fifths of the company’s market value. The current profit is £1.25m. Investee company TruSpine is on course to float in London this year. The spine stabilisation devices developer has gained a new cornerstone investor. Primorus is debt free.
Trading in the shares of Altona Energy (ANR) has been suspended because it has not published its annual report for the year to June 2019. Cash needs to be raised to keep the company going and management says that shareholders will be invited to participate in a fundraising. The company says it expects to publish the report in the next two weeks and blames the delay on a change of auditor and a new accounting treatment for its exploration licences. Final terms for the acquisition of the previously announced new petroleum exploration licence application are being negotiated.
SG Recruitment Ltd (SGRL) majority shareholder and chief executive David Sumner has also taken on the role as chairman after the resignation of Alan Kitchin and Katie Hiess from the board.
AIM
Brickability (BRCK) has acquired McCann Roofing Products for £2.75m. Essex-based McCann imports roofing and building products from Europe and generated a 2019 pre-tax profit of £700,000 on revenues of £8.2m. This deal adds additional suppliers to the group and should be immediately earnings enhancing.
Nostra Terra Oil and Gas (NTOG) has convened the requisitioned general meeting on 3 March. Eridge Capital wants to remove Matt Lofgran and Ewen Ainsworth from the board and replace them with Andrew Morrison. Eridge was previously known as former AIM company New World Oil and Gas. Nostra Terra’s subsidiary has loans that have a key man clause which stipulate that Lofgran has to be president of the subsidiary unless it give consent or there will be a default.
Drug discovery platform developer e-Therapeutics (ETX) has overhauled its board and raised £1.6m at 3p a share. Former Silence Therapeutics boss Ali Mortazavi becomes executive chairman. Ian Ross is stepping down to concentrate his role at Silence Therapeutics. Chief executive Ray Barlow and finance director Steve Medlicott are also leaving. An additional independent non-executive director will be appointed.
Gemfields Group Ltd (GEM) joined AIM last Friday. The share price ended the day at 11.7p.
Bidstack (BIDS) expects to have generated £150,000 from programmatic advertising for video games. That is much lower than previously hoped because it is taking much longer to get advertising agencies to take in-game advertising seriously. There was cash of £3.14m at the end of 2019 following a loss of £5.3m. There was £6m in the bank at the end of June 2019. First half revenues will still be small.
Knights Group Holdings (KGH) has acquired Nottingham law firm Fraser Brown Solicitors for up to £8.28m in cash and shares. This follows the purchase of Croftons Solicitors, which is based in Manchester, for up to £2.8m. A new revolving credit facility of £40m has been agreed and it lasts until June 2023.
Octopus Investments has cut its stake in Staffware (STAF) from 13.2% to 0.53%. Gresham House Asset Management increased its stake from 6.7% to 10.6%.
Filta Holdings (FLTA) says it should make an EBITDA of £3.2m in 2019. Cost savings and investment software will help the fryer management services provider to produce a much better performance in 2020.
Keystone Law (KEYS) has traded in line with expectations. Pre-tax profit is forecast to increase from £5.1m to £5.7m.
Hormonal disease treatments developer Diurnal (DNL) says that the FDA has accepted the new drug application for Akindi Sprinkle as a treatment for infants and children. Approval could be gained by the autumn and it will be the only licenced treatment specifically for children. There was cash of £4.6m at the end of 2019.
MAIN MARKET
Automotive information publisher Haynes Publishing (HYNS) is recommending a 700p a share bid from Infopro Digital, valuing the company at £114.5m. The two companies fit well together and will have greater scale.
Finance provider S and U (SUS) says that its figures for the year to January 2020 will be in line with expectations and trading has been getting better in the past few weeks. The used car market has held up well even though the new car market is week. This is why second hand car finance provider Advance should produce another record performance in 2020-21. Property bridging finance provider Aspen has made the progress hoped because of delays in repayments and the loan book is lower than expected, but it is still a young business. A 2019-20 pre-tax profit of £35.5m is expected to increase to £39m this year. The latest total dividend will be raised by around 5% to 124p a share.
JLEN Environmental Assets (JLEN) is raising cash from the placing of up to 49.7 million shares. This will fund a pipeline of investments. The bookbuild will close on 26 February.
Ultimate Products (UPGS) says that sales growth is easing this year with first half revenues 3% ahead at £67.7m. There is also uncertainty about the supply of products from China. Even so, Shore is maintaining its full year pre-tax forecast of £8.77m, a small increase on last year. That could change.
Zenith Energy (ZEN) is widening the geographic scope of its activities by negotiating to acquire an oil production licence in West Africa. Zenith has raised £135,000 through a share issue at 1.5p a share. It has also entered into an equity sharing agreement with a consortium of institutional investors. The nominal amount raised is £810,000, but the ultimate amount will depend on the share price when each tranche is paid over the next 12 months. The benchmark price is NOK0.2231/share, equivalent to around 1.85p. The share price is 1.43p, so the first instalment is likely to be below the notional level if there is no share price recovery.
BATM Communications (BVC) has gained a $1.3m order from a Middle East-based poultry firm for its agri-waste treatment system.
Fasteners supplier Trifast (TRI) says market conditions are more challenging and there has been a slow start to the fourth quarter, which is normally the strongest. Margins have fallen and profit will be at the lower end of the range of forecasts. The Coronavirus has led to the extended closure of Chinese sites, but this is a small percentage of production.
Cathay International Holdings (CTI) says that production at its plants is on hold or preparing to gradual resume production because of the effects of the Coronavirus. The hotel business has been hit by a sharp reduction in occupancy rates.
Avation (AVAP) has made firm orders for two ATR 72-600 aircraft that will be leased to US-Bangla, the largest private airline in Bangladesh.
Predator Oil and Gas (PRD) is raising £3.56m at 4p a share. This will finance the drilling of the Moulouya well in Morocco and provide cash for further investment in Trinidad.
Andrew Hore
Andrew Hore – Quoted Micro 6 January 2020
NEX EXCHANGE
Cannabis-related investment company Greencare Capital (GRE) joined the NEX Growth Market last Monday. Greencare raised £514,000 at 25p a share. The rest of the shares were issued at 1p each, raising £100,000. The pro forma NAV is just over 4p a share. The largest shareholder is E Value One with 66.3%, which is owned by Dominic White, who is chairman of fellow NEX-quoted company Eight Capital Partners (ECP) which has a 21.2% stake. Eight Capital acquired 1.5 million of its shares at 1p each and 1.06 million at the subscription price – just over 50% of the subscription shares. Greencare has already identified its first investment, which is a consumer-focused distribution business that has a leading position in one of the larger European markets. The distribution activities cover 30,000 points of sale and that could increase to 45,000. The plan is to acquire an initial 10% stake. Due diligence is being carried out and the investment could be made early in 2020.
European Lithium (EUR) has agreed €7.5m of debt financing that lasts two years and has an annual interest charge of 5%. This is secured on the Wolfsberg lithium project in Austria. The cash will fund the completion of the definitive feasibility study and repay the existing convertible note facility. The Wolfsberg mining and exploration licences have been extended.
BWA Group (BWAP) says that its subsidiary has been awarded an exploration licence in central Cameroon. This will enable the assessment of commercial exploitation of rutile sands, kyanite, ilmenite, zircon and other minerals. The permit lasts for three years with a financial commitment of £650,000 over the period. This has taken four years to negotiate.
Walls and Futures REIT (WFR) has completed the redevelopment of its Didcot property and it has been let on a 25-year lease to a large care provider. NAV was £3.3m at the end of September 2019.
VI Mining (VIM) has secured a partnership with an established operator in Peru so that commercial operations can commence at the Cushuro mining concession in the second quarter and the Oro Pesa plant can be up and running in the third quarter. They will be owned by 50/50 joint ventures. The Minaspampa and Rosario de Belen concessions are being returned to the previous owners, although VI Mining will have a buy back option.
Healthcare professionals recruiter SG Recruitment Ltd (SGRL) grew interim revenues by 13% to £386,000, while operating costs were halved. There was still a £379,000 loss. SG has secured a contract with Leeds Teaching Hospitals NHS Trust covering seven hospitals. Further mandates are expected from the NHS and in the Middle East.
Adnams (ADB) director Guy Heald has increased his B shares stake from 15.1% to 17.15%.
Alexander David Securities has resigned as corporate adviser to EcoVista (EVTP) and trading in the shares has been suspended until a replacement is appointed.
AIM
Bango (BGO) grew 2019 revenues by more than 40% even though two contracts were not closed by the end of the year. That means that 2019 revenues of the digital payments technology provider will be £2m lower than anticipated. The 2020 forecast revenues have been reduced by £2.6m to £14.2m, although a £600,000 pre-tax profit is expected.
Communications services provider Mobile Tornado (MBT) expects second half revenues to be £1.8m, taking the total for the year to £3.3m. There have been delays in deployments. The company remains loss-making.
Redx Pharma (REDX) could be subject of a bid by a syndicate headed by Samuel D Waksal. The £2.5m loan from Moulton Goodies will be swapped for shares instead of repaying it at the end of 2019. This requires shareholder agreement.
Adams (ADA) has bought 2.4 million shares in Circassia Pharmaceuticals (CIR) at an average price of 19p each. That takes the stake in Circassia to 0.82%. Adams still has £1m in cash.
Tri-Star Resources (TSTR) says that its 40%-owned antinomy and gold production facility operator SPMP is currently in technical default of its banking facility. Tri-Star had guaranteed 40% of the bank facility, but it says that this no longer holds because commercial production has commenced. This still has to be independently certified. Any additional short-term finance provided to SPMP could lead to a dilution of the Tri-Star stake. SPMP’s production facility requires up to $160m of additional investment in order to reach 100% capacity, but there have been no suitable offers of this finance as yet. There is no certainty that the financing can be achieved.
Residential property development funder Urban Exposure (UEX) says that 2019 operating costs will be lower than expected due to lower remuneration and fewer people being hired. The 2020 operating costs will be reduced to around £9.5m and that will enable the company to be profitable. There is no additional news about the proposals for the future of the company. Urban Exposure has also agreed to pay £400,000 to Jones Laing LaSalle in relation to an agreement by former companies, which are being wound down, to pay introduction fees. This settles the claim.
Trading in Attis Oil and Gas (AOGL) shares has been suspended ahead of details of a deal to acquire a North America-focused oil and gas company and the disposal of non-core assets. The acquisition will bring assets and experienced management.
Trans-Siberian Gold (TSG) has signed a new tariff for its electricity. The previous tariff was RUR4.69/kWh and the new agreement is for RUR4.75/kWh, which is still much lower than the standard tariff.
Livermore Investments Group (LIV) is paying an interim dividend of $0.0343 a share on 21 February.
MAIN MARKET
David Sefton has stepped down as chairman of social media company Iconic Labs (ICON) because of market speculation about his involvement with AIM-quoted Anglo African Oil and Gas (AAOG) where he was executive chairman until 13 September 2019. He has not been involved since then. Sefton will continue to be involved with Iconic Labs, where the share price has nearly halved in the past four months. The resolution to allow directors to allot shares without offering them to existing shareholders was not passed at the AGM. Anglo African Oil and Gas has not made the progress it wanted to with its oil and gas interests and it plans to sell its main asset in Congo to Zenith Energy (ZEN). Jub Capital is trying to put a stop to that and has present alternative proposals. This would involve stopping the sale and providing additional cash via a subscription of £100,000 and a $5m loan facility. Jub would also buy the shares owned by RiverFort and that would provide an additional £722,000 to the company.
Anglo African Agriculture (AAAP) has postponed the reverse takeover of Kenya-based port and marine logistics group Camarco. The long stop date for the deal is being extended. A version of the deal is likely to go ahead, but there could be private equity investment in one or more of the subsidiaries.
OTHER MARKETS
Former standard list company Cleantech Building Materials has entered into a three-year offtake agreement with a customer in Thailand. Nasdaq First North Copenhagen-quoted Cleantech Building Materials has the exclusive rights to manufacture Accoya wood (AIM-quoted Accsys Technologies (AXS) owns the technology) in China.
Andrew Hore
Andrew Hore Quoted Micro 7 October 2019
NEX EXCHANGE
Wines and beer maker Chapel Down Group (CDGP) increased interim sales by one-fifth to £6.74m with growth coming from all parts of the business. Gross margins improved, but the first half loss increased due to investment in developing brands. Cash has been spent on developing additional vineyards, a gin works and a new brewery, although there is still £5.19m in cash on the balance sheet. Bank debt is £6.45m and this is associated with the Ashford brewery, where there have been teething problems with commissioning the new equipment. The associated restaurant and retail store opened in May.
Property investor Ace Liberty and Stone (ALSP) increased revenues by 44% to £5.07m in the year to April 2019. There was a disposal gain of £284,000 and that contributed to the rise in pre-tax profit from £361,000 to £759,000. Total dividends doubled to 2.5p a share. Property assets have increased by 52% to £88.3m. NAV is £21.2m.
Net assets of Western Selection (WESP) have fallen by one-third to 64p a share. The investment in loss-making Tudor Rose International has been written off. The value of the stakes in Bilby (BILB) and Brand Architekts (BAR), formerly Swallowfield, has fallen sharply. There is no final dividend.
IFA AFH Financial (AFHP) has confirmed that trading has been strong in the year to October 2019 and there will be a renewed focus on organic growth following a period of acquisition activity. There could be some small purchases, but there will be no requirement for cash from share issues.
KR1 (KR1) generated a gross profit of £5m in the six months to June 2019, although £4.29m of that is unrealised gains. The reported pre-tax profit is £4.62m. The NAV is £10.7m.
Dozens Savings (DSO1/DSO2) has had its 5% secured bonds October 2020 admitted to the NEX Exchange Growth Market. The bonds are offered to customers of parent company Project Imagine.
Angelfish Investments (ANGP) says that investee company YBOO has been placed in administration and Quantuma appointed to handle the process. Angelfish invested £650,000 for a 35% stake and lent just over £1m for working capital, where a repayment demand led to the administration. Writing down this investment was predominantly behind the £1.72m loss reported for the year to June 2019. It has also meant that there are net liabilities of £2.27m. A capital raising was hit by the closure of SVS Securities.
Shareholders in SG Recruitment (SGRL) did not approve the AGM reappointment of Steven Howson as a director. David Sumner, who owns the majority of the shares in the company, has been appointed chief executive.
Healthcare company MiLOC Group (MLP) increased its interim revenues from HK$5.27m to HK$6.1m. The loss was still substantial, although it did decline from HK$25m to HK$19.4m. The launch of a traditional Chinese medicine-based body care product should happen in the coming months. MiLOC raised HK$652,000 at 30p a share.
Cannabis company Freyherr International Group (FRYR) generated revenues of £1.17min the first half of 2019 and it should reach more than £2m for the full year. There was a small profit in the first half, which was before Freyherr joined NEX.
MESH Holdings (MESH) has left NEX. Veni, Vidi, Vici (VVV), Global Capital (GCAP) and Secured Property Developments (SPD) have all had trading in shares suspended because of a failure to publish accounts. Trading in Queros Capital Partners 8% bonds 2025 (QCP) has been suspended because of a breach of rules. This involves the failure to appoint new independent non-execs.
DXS International (DXSP) has appointed Hybridan as broker.
AIM
Directa Plus (DCTA) is paying €2.1m to acquire a 51% stake in Romanian waste management and remediation services company Setcar. A placing and one-for-38 open offer at 75p a share will raise up to £8.24m before expenses for the graphene business. GVC Investment Company, which has a business in offshore oil and gas services, will acquire 47% of Setcar with an existing shareholder retaining 1.97%. Directa Plus and Setcar have worked together on the development of Grafysorber mobile decontamination units. This is one of the two main focuses for Directa Plus. The other is textiles.
Linde is taking a 20% in energy storage and clean fuel products developer ITM Power (ITM) in return for £38m. The two firms are entering into a joint venture that will supply hydrogen to large scale industrial projects with an installed electrolyser capacity of 10MW and above. A further £14m is being raised at 40p a share, which is the same price that Linde is paying. An open offer could raise up to £6.8m.
Duke Royalty (DUKE) is raising up to £20m at 44p a share, including an offer via PrimaryBid.com. The cash will enable Duke to sign up another royalty partner and undertake five follow-on investments. The total cost will be approximately £25m. There will also be spare cash and facilities to sign up other royalty partners.
Trading in antimicrobial technology developer Byotrol (BYOT) shares has been suspended because it has not published its accounts for the year to March 2019. It blames the effects of revenue recognition policy IFRS 15 and the Medimark acquisition for the delay. The preliminary figures have been published and they were better than expected due to changes in revenue recognition related to IFRS15. Some revenues originally recognised in the year before has been moved to last year. Revenues increased from £1.8m to £5.7m, with £1.8m coming from Medimark, and Byotrol moved from loss to a pre-tax profit of £600,000. There was £2.8m in the bank at the end of March 2019. Even if there are no further licence deals this year, Byotrol should trade at around breakeven.
Evgen Pharma (EVG) says that the trial investigating the potential of SFX-01 to reverse acquired resistance to endocrine therapies. The data suggest that there are no safety concerns in patients suffering from ER+ metastatic breast cancer. In combination with endocrine therapy, SFX-01 helped to stabilise the disease and showed some anti-tumour activity.
STM Group (STM) says that the Pension Regulator has confirmed that Carey Workplace Pension Trust is an approved Master Trust for auto-enrolment. This means that STM is well-placed to become a consolidator in the market.
MAIN MARKET
Avation (AVAP) has repossessed two Airbus A321 aircraft from Thomas Cook and they are undergoing maintenance. They will subsequently be leased to other clients.
Flavourings supplier Treatt (TET) says it will achieve expectations in the year to September 2019 even though there has been a sharp fall in citrus raw material prices. Orange oil prices have halved, and this accounts for one-third of revenues. Non-citrus revenues are growing. Net cash is £15.8m. The full year results will be published on 26 November.
Andrew Hore
Andrew Hore Quoted Micro 2 September 2019
NEX EXCHANGE
SG Recruitment Ltd (SGRL) generated revenues of £777,000 in the 15 months to March 2019. The nursing staff provider lost £2.63m. Since the year end, more contracts have been signed with NHS hospitals, as well as with a hospital in the UAE. The staff offered to hospitals have all obtained qualifications in English and 76% end up being employed. Most of the previous debt has been converted into shares, so net debt was £91,000 at the end of March 2019.
Lombard Capital (LCAP) reported an increase in net liabilities from £234,000 to £537,000 at the end of March 2019. There were £750,000 worth of bonds issued during the period.
PCG Entertainment (PCGE) hopes that the acquisition of Vox Markets and Align Research should be closed in early October. Previous operations have been provided for in full and have been sold. There was £14,000 in the bank at the end of March 2019.
A new investor to Walls and Futures REIT (WAFR) has subscribed £100,000 for shares at 70p each, which is a one-third premium to the market price at the time. Westerby Trustee Services Ltd owns 3.8% of the company on behalf of Westerby Private Pension (R Prest).
Cadence Minerals (KDNC) says that the judicial restructuring plan for the Amapa iron ore project has been approved by the Sao Paulo commercial court. This will enable Cadence to acquire a 20% stake in Amapa. A further $3.5m investment will take the stake to 27%. Cadence plans to consolidate 100 existing shares into one new share. Shareholders will be asked to approve the proposal at the AGM on 20 September.
Paul Tuson is stepping down as finance director of Rutherford Health (RUTH) and the reappointment resolution was withdrawn from the AGM agenda.
Sativa Investments (SATI) has opened its third Goodbody CBD Wellness store in Bristol, following store openings in Bath and Cirencester. It is seeking franchisees to roll-out further stores around the country.
Panther Metals (PALM) chief executive Darren Hazelwood has acquired 18.87 million shares at 0.3p each. That takes his stake to 10.3%.
First Sentinel (FSEN) has raised £59,000 at 14p a share via a placing with D Beta One EQ Ltd.
AIM
President Energy (PPC) insists that it will continue to be profitable even though the Argentinian authorities are attempting to fix the price that producers can sell oil and the dollar exchange rate used for the price for a 90-day period. President has decided to delay its well drilling programme until the first quarter of 2020 and the focus will be gas wells. Gas sales from four wells in Estancia Vieja and Las Bases will commence production by the end of September. A new gas pipeline should be completed by the end of the year. finnCap has withdrawn its forecasts.
Order books and production volumes are ahead of last year at gift wrap and greetings products supplier IG Design (IGR) thanks to a combination of organic growth and last year’s US acquisition. IG is on course to increase pre-tax profit from £30.3m to £36m.
Online musical instruments retailer Gear4Music (G4M) says that it has taken actions that are already helping to improve gross margin.
Cambridge Cognition (COG) says sales are lower than expected. The digital neuroscience services provider says that full year revenues will fall from £6.13m to around £5.5m. The loss will be around £2.8m. First half revenues were £2.1m and the loss was £1.74m. There is a strong order book, so this augurs well for next year.
Adamas Finance Asia Ltd (ADAM) has funded the second tranche of the investment in Infinity Capital Group. The $2m is being funded equally by Adamas and a Hong Kong family office.
MAIN MARKET
Blockchain Worldwide (BLOC) intends to move to AIM if its acquisition of media-focused artificial intelligence and machine learning company Entertainment AI goes ahead.
At a general meeting, shareholders in Tex Holdings (TXH) approved the 2018 report and accounts and directors’ remuneration report, but they did not approve the reappointment of Scrutton Bland as auditors.
Argo Blockchain (ARB) is reaping the benefits of its investment in crypto mining equipment. The cost of 1,000 machines has already been recouped and Argo is on course to recoup the cost of a further 2,267 machines.
Ross Group (RGP) did not generate any revenues in the six months to June 2019 and the loss was £3.15m. Ross acquired start-up operations during the period. They will supply Chitin.
Asian consumer businesses investor Symphony International Holdings (SIHL) increased its NAV by 14% to $560.4m in the six months to June 2019.
George Bennett has become chief executive of Rainbow Rare Earths (RBW) and Martin Eales has left the board. In the year to June 2019, Rainbow sold 850 tonnes of concentrate from the Gakara project, although bad weather hampered production in the fourth quarter. Sales prices have declined.
China-focused healthcare investment company Cathay International (CTI) reported a decrease in revenues from $49.2m to $38.3m. There was a $7.9m gain on the sale of shares in Zhejiang Starry Pharmaceutical, but that was not enough to cover the operating loss and interest costs.
OTHER MARKETS
Britdaq-quoted Staminier Ltd has secured a three-year option over 13 acres of land near to the south terminal of Gatwick Airport and it wants to build a car park with 2,200 spaces. In July, Staminier acquired a majority stake in eco-friendly housebuilder Eco-Space 41 Ltd. There is a four-year option to acquire the other 49% for £750,000. The strategy is to acquire businesses at a discount to their intrinsic value. There are plans to move to a more liquid stockmarket.
Asset Match will provide a trading facility for shares of former AIM company Albert Technologies Ltd. The first auction will be during September.
US Oil and Gas (USOP) has raised $382,000 at 31p a share. This follows a fundraising in July of $577,000 at 30p a share. The cash will be spent on exploration.
Andrew Hore
Andrew Hore Quoted Micro 29 April 2019
NEX EXCHANGE
Adnams (ADB) says that beer volumes grew year-on-year in the first quarter, helped by low alcohol Ghost Ship and pubs are also doing well. Margins are coming under pressure and gin sales have been hit by increasing competition. A new IT system has gone live.
KR1 (KR1) has cashed inn some of its tokens. It has sold the remaining OmiseGo tokens for $206,000. They were bought for 27.38 cents each and sold for 205.4 cents each. KR1 has sold 50% of its tokens in the Nash Exchange product for nearly $51,000, at a more than doubled price per token, which means that the cost of the remaining 25,000 tokens have been covered.
High Growth Capital (HASH) has appointed Mark De Smedt as chief executive. He is a Belgian who previously worked for recruitment firm Adecco and already owns a 0.6% stake in High Growth Capital. He has been awarded options over 125 million shares at 1.75p each and further options over 150 million shares, which are exercisable at 3p a share, but only if the share price reaches at least 7.5p and stays there for a consecutive period of six months. Girod Equities has taken a 3.81% stake in the company, which is proposing a name change to MESH Holdings.
SG Recruitment (SGRL) has been appointed to recruit international nurses for more than 20 hospitals in England. This is under the Health Education England Global Learners Programme, which offers three year packages. Also, the Royal Berkshire NHS Foundation Trust has appointed SG to recruit 140 nurses. A contract has been gained with Thumbay Hospital in UAE to recruit at least 150 healthcare professionals each year.
Metal Tiger (MNRG) is holding a general meeting on 15 May in order to gain shareholder approval for the directors to issue new ordinary shares without the requirement to offer them to existing shareholders.
AIM
Franchise Brands (FRAN) says that Micro Rod had a record quarter in the first three months of 2019. System sales were 12.9% higher. The business to consumer franchises have also had a good start to the year.
International payments services provider FAIRFX (FFX) increased revenues by 69% to £26.1m, while pre-tax profit jumped from £900,000 to £6.79m. City Forex was acquired in February 2018 but there was like-for-like growth. In the first quarter of 2019, revenues are 43% ahead at £7m.
Tekcapital (TEK) says that investee company Salarius has secured the first commercial order for its low sodium MicroSalt from a snack food manufacturer. Investee company Belluscura has raised just over £500,000 from a crowdfunding offer, including further investment from Tekcapital. The cash will be used to market and further develop a portable oxygen concentrator called X-PLOR.
More good news from Eden Research (EDEN) as partner Eastman has received a 120 day emergency use authorisation for Cedroz, which is used to combat plant-parasitic nematodes, in Italy. This will enable sales while the Italian authorities process the application for authorisation.
Aviation services provider Gama Aviation (GMAA) has reported 2018 figures with the comparatives for 2017 restated. Pre-tax profit slumped from $16.6m to $11m. That is before more than $40m of exceptional charges, including a $27.7m impairment charge. A final dividend of 2p a share is being paid. Hutchison Capital Holdings has bought more shares to take its stake to 25.45% after a shareholding limitation was ended.
Software company WANdisco (WAND) reported a fall in revenues from $19.6m to $17m in 2018, but this was down to a change in the revenue model to subscription-based business. The loss increased from $14m to $19.4m, but this will fall sharply over the next two years as revenues grow rapidly.
ReNeuron (RENE) has positive news from the first three retinitis pigmentosa patients given its human retinal progenitor cell product. Vision has improved after 60 days and 120 days. Longer-term evidence is required, but this is a good start and three more patients are being provided with the treatment.
Kestrel has increased its stake in Pebble Beach Systems (PEB) from 23.1% to 24.2%.
Satellite communications equipment provider Global Invacom (GINV) has terminated the proposed acquisition of Tactilis and related fund raisings. The two companies will provide equal funding of the costs of the terminated deal. Group revenues were $122.3m in 2018. Electronic component shortages have eased, and pricing is normalising. Trading in Global Invacom shares resumed and the share price jumped from 4.5p to 7p.
Angling Direct (ANG) has opened its 27th store on a former Majestic Wine site in Nottingham. The fishing equipment retailer has started the new financial year strongly. Overall sales were 50.7% higher in February and March. Full year figures for the year to January 2019 will be reported on 13 May.
Piling company Van Elle (VANL) reported that its full year profit will be slightly worse than expected but the share price still bounced back from recent lows. Volumes have recovered in the fourth quarter, but full year sales are 3% below expectations. A new director of the piling division will join in June.
The microCHP boilers developer Inspirit Energy (INSP) is still developing its product and it still has to commercialise its boilers.
MAIN MARKET
Standard list shell Fandango Holdings (FHP) has ended discussions with Konnect Mobile Communications Inc because it could not raise the finance for the acquisition. Fandango has been making loans to another standard list shell, Stranger Holdings, where Charles Tatnall is also a director. There was £141,000 outstanding at the end of August 2018, plus accrued interest of £38,721, and this has been reduced to £108,000, excluding interest. There was cash of £53,000 in the balance sheet at the end of August 2018.
Zenith Energy (ZEN) chief executive Andrea Cattaneo has acquired 593,289 shares at 3.3p each, taking his stake in the Azerbaijan-focused oil and gas company to 8.46%.
Former finance director Michael Mousley has been appointed as a non-executive director of Quarto (QRT). A new finance director will join the company in July.
Andrew Hore
Andrew Hore – Quoted Micro 25 March 2019
NEX EXCHANGE
Good Energy (GOOD) increased full year revenues from continuing operations from £104.5m to £116.9m, helped by last winter’s cold weather and a price increase, and pre-tax profit recovered from £700,000 to £1.7m. The renewable electricity supplier and generator has increased its dividend from 3.3p a share to 3.5p a share. Net debt was £40.1m at the end of 2018. Energy supply volumes increased by 3%, but domestic volumes were 1.2% lower in an increasingly competitive market. The growth came in the business side, which increased volumes by 23%. Good Energy generates energy from six solar sites and two wind farms. The company expects to continue to grow business volumes and invest in digital technology. Non-executive director Nemone Wynn-Evans has bought 9,500 shares at 105p each.
Trading in PCG Entertainment (PCGE) shares has been suspended because it is in talks to acquire VOX Markets and Align Research.
Karoo Energy (KEP) has been told by its potential nominated adviser does not believe its is suitable for an AIM quotation. This also means that the planned fundraising cannot go ahead. A refinancing is required. There are trade creditors of around £300,000. Trading in the shares has been suspended.
Primorus Investments (PRIM) has maintained its 3.4% stake in Fresho by participating in its latest fundraising, which was at a 76% premium to the price paid for the initial investment. The investment is worth A$673,000.
Dana Group International Investments Ltd (DANA) reported swing from loss of $129,000 to a profit of $95,000 in the six months to December 2018, due to other income of $276,000.
Tectonic Gold (TAU) says that roc chip samples from the Clermont project in Queensland show up to 8.01g/t gold, 140g/t silver and 6.32% copper.
Panther Metals (PALM) has completed the acquisition of Parthian Resources and its former shareholders own 16.1% of Panther.
Inqo Investments Ltd (INQO) has raised a further £225,000 at 90p a share.
Imperial X (IMPP) has changed its focus to medicinal cannabis. There was a small cash outflow in the six months to the end of December 2018. There was nearly £70,000 in the bank with net cash of £19,000. There are net liabilities and more cash will be required later this year.
Steve Howson is stepping down as chief executive of SG Recruitment Ltd (SGRL) and he will become a non-executive director. Majority shareholder David Sumner will be interim chief executive.
AIM
Footasylum (FOOT) has recommended a 82.5p a share bid from JD Sports Fashion (SPD) which values the footwear retailer at £90.1m. JD Sports was buying shares between 50p and 75p and built up a 18.7% stake. The bidder promises to maintain the separate commercial identity. Footasylum floated in November 2017 at 164p a share.
Diaceutics (DXRX) ended the week at 97.5p, having floated at 72p. The company provides data analysis and advisory services to pharma companies seeking to develop and commercialise diagnostic tests. There were £15.2m of placing proceeds net of expenses and £5.5m will be spent on the acquisition of data, while the rest will be used to pay off debt and develop AI analysis technology. There is limited liquidity in the shares because they are tightly held.
Wynnstay Group (WYN) warns that trading in the second quarter is weak because of the warmer winter weather. There has also been a weakening in farmgate prices. Interim figures will be well below the first half of last year and the full year will be below forecast. Peel Hunt argues that it has already factored these elements into its forecast for rival feed supplier NWF (NWF) and it is not changing its forecasts.
Pelatro (PTRO) has launched a data monetisation platform with a revenue share contract with an existing client, which is worth $500,000 in the first year. This is a product that can be sold to other customers.
Financial trading platform Aquis Exchange (AQX) reported 2018 revenues ahead of expectations and it doubled its market share during the year. The subscription-based model means that higher trading levels by a trader lead to subscription income levels going up. Aquis will continue to be loss-making this year, but the relatively fixed cost base means that once this is covered the profit should grow significantly as revenues grow.
Scientific instruments supplier Judges Scientific (JDG) increased is cash generation from operations from £10.9m to £15.7m in 2018. There was 5.5% organic growth in revenues and underlying operating profit rose by just over one-third to £14.7m. The cash balance has increased to £15.7m, which provides firepower for acquisitions. Shore Capital has edged up its earnings per share forecast from 188.8p to 190p.
Volvere (VLE) says full year revenues from continuing operations will rise from £16.2m to £18.6m. There was a £23.1m gain on the sale of Impetus Automotive. There was an underlying loss on continuing activities, but the frozen pie maker Shire Foods improved its profit contribution. There is £34.1m of cash in the Volvere balance sheet.
Frontier IP (FIPP) says that the outcome for the year to June 2019 is likely to be ahead of management expectations. A deal by investee company Exscientia, which is involved in AI-based drug discovery, with Celgene Corporation should result in a substantial uplift in its valuation.
Science in Sport (SIS) had a 25-day contribution from the profitable PhD Nutrition business in 2018. The group’s underlying loss increased last year, but PhD will help to reduce the loss and the cash outflow from operations, which was £6.42m last year. There is £8m in the bank and even with capital investment requirements that should be enough to cover requirements this year.
Ceramic products supplier Portmeirion Group (PMP) increased its 2018 pre-tax profit by 10% to £9.7m and a further rise to £10.3m is forecast for this year. Online sales are growing rapidly from a relatively low base. The home fragrance business is doing well, and capacity is being added. The total dividend is 8% higher at 35.7p a share.
Share (SHRE) improved its significantly improved its profitability in the second half of 2018, although trading levels weakened towards the end of the year. That weakness has continued into the early months of this year. Evan so, Cenkos forecasts a rise in pre-tax profit from £700,000 to £1.3m, upgraded from £1.1m, in 2019.
Clear Leisure (CLP) has placed its 50%-owned data mining operation in Serbia on a care and maintenance basis. This is due to the fall in the price of cryptocurrency. Legal actions and negotiations continue concerning a number of past investments. Clear has paid £76,000 for a 10% stake in PBV, which provides data services for the Italian legal sector. At the end of 2018, there were €2.1m of bonds converted into shares.
Andrew Perloff has increased his stake in 600 Group (SIXH) from 6.19% to 8.85%.
Midatech Pharma (MTPH) has changed the ratio of its ADRs from two shares for each ADR to 20 shares for each ADR. This is a way of getting the trading price of the ADRs on NASDAQ back above $1.
EQTEC (EQT) could be a beneficiary of the deal done by its largest shareholder EBIOSS with Urbaser for the collection, treatment and possible conversion of waste to energy. Urbaser is conducting due diligence on EQTEC’s gasification technology and this could be used for any waste to energy plant if all three parties come to an agreement on a specific opportunity. Projects could be in Bulgaria, Greece, Macedonia and Romania.
A local authority report has placed a five year reserve status on the Plymouth Airport site where Sutton Harbour (SUH) has a 135 year lease. The local authorities are keen that the site should be used for general aviation, but a viable business plan needs to be put together. Sutton Harbour would like to develop the site.
Tau Capital (TAU) has sent a circular to shareholders concerning a capital return of $1.19m or 2.42 cents a share, raise $150,000 via a placing at 0.1 cents a share and change its name to UK Onshore. Reverse takeover candidates are being assessed. Gerwyn Williams and Nigel Burton will join the board.
Synectics (SNX) has won a £1m order from the oil and gas sector. This is the largest order for its surveillance systems from this sector for a number of years. Synectics reported a rise in full year revenues from £70.1m to £71.2m and pre-tax profit slipped from £3.02m to £2.86m. The full year dividend is increased from 4p a share to 4.7p a share.
MAIN MARKET
Athelney Trust (ATY) has responded to the letter from former director Dr Pohl, who wants to regain his place on the board along with Simon Moore and remove David Lawman. Dr Pohl has acquired more than 100,000 shares in the past month, and this means that five shareholders own more than 50% of the investment company putting its investment trust status at risk. As long as there is more than 35% of the company held by the public this is not a problem, but it would be if Dr Pohl joined the board. There have been £90,000 of extra costs because of disputes between the two major shareholders. The plan remains to bring Gresham House on board as fund manager
WideCells Group (WDC) is changing its name to Iconic Labs and moving into digital marketing and technology. The management of this business previously built up social publisher Unilad. In the first 12 months, an agency consulting division will be launched to assists clients to develop brands. There are plans to build up a distribution and publishing division through acquisitions and launch content licensing and e-commerce divisions. There is little indication of what will happen to the stem cell operations, although management appears to believe that the insurance business could be worth pursuing. Historic liabilities are being resolved. The convertible loan note holder continues to convert a proportion of the loan note that is below 30% and then sell the shares. There are 785.6 million shares in issue with more to come.
Bluebird Merchant Ventures (BMV) has raised £436,500 at 2.25p a share. The cash will be used for the pre-construction phase of the South Korean gold projects. An agreement has been made with a local landowner for the use of land outside the main entrance of the Kochang mine.
Highlands Natural Resources (HNR) has raised £1.56m at 8.5p a share via an offer through PrimaryBid.com. This cash will fund a move by the natural resources company into the organic cannabidiol market. It has established Zoetic Organics in the US and it believes that hydrogen produced by Highland in Kansas can be used as a fertiliser with potential to increase the size of the plant. First revenues could be achieved in the summer.
Standard list shell Stranger Holdings (STHP) claims that Alchemy Utilities Ltd has sabotaged the proposed reverse takeover by refusing to provide audited accounts. Stranger is trying to get back the £300,000 it lent to Alchemy as well as its reverse takeover costs of £450,000. Stranger believes that the Alchemy management team may have misrepresented its financial status. An alternative acquisition is being lined up, but Stranger had negative net assets at the end of September 2018 and there are additional costs since then.
Standard list shell Hertsford Capital (HERT) still had £2.88m in cash at the end of 2018.
Telecoms services provider Toople (TOOP) is growing its gross profit but EBITDA is similar to the same period last year, which was around £650,000.
PV Crystalox Solar (PVCS) has ended its wafer production activities in Germany and it intends to apply its wire sawing expertise to cutting non-silicon materials. There are plans to return £38.5m to shareholders, which is equivalent to 24p a share and that is not far short of the current market price. That could still leave more than €10m of cash. Management is considering whether to maintain a listing.
Sure Ventures (SURE) says 23%-owned Suir Valley Ventures has maintained its 10% stake in WarDucks, which is developing an AR game, by participating in a €3.3m fundraising.
Andrew Hore