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Quoted Micro 1 July 2024
AQUIS STOCK EXCHANGE
Voyager Life (VOY) has entered into an option to acquire M3 Helium Corp, which is a Kansas-based helium producer, for 57.6 million shares. Production is from one well and four other wells are being tested. There is also a processing plant. Voyager Life has raised £864,000 at 3p/share to finance the development of operations and fund the readmission document. M3 Helium is loss-making.
Ananda Developments (ANA) announced promising results from cardiac fibrosis studies with CBD-based therapy MRX1. It has potential as a treatment for heart failure with preserved ejection fraction. It mitigates cardiac fibrosis and improves heart health. Next steps are being assessed.
Tennyson Securities has published initial research on Good Life Plus (GDLF) the prize-based draw lottery. Investment in the business means that it will continue to lose money for the next two years before moving into profit in 2026-27 when earnings of 0.7p/share are forecast. The 12-month target price is 4.24p/share.
Time to ACT (TTA) subsidiary GreenSpur has received an award of £613,000 from the EU BEETHOVEN project for the development of advanced magnetic materials. This will be used for development of the rare earth-free magnet.
Valereum (VLRM) reported a reduction in loss from £4.25m to £353,000. There was a swing from net liabilities of £758,000 to net assets of £351,000 following an increase in the value of the investment in Vinanz (BTC). That was partly offset by an impairment charge on the GSX investment.
Brewer Adnams (ADB) expects to conclude its evaluation of future funding later in the summer.
Housebuilder St Mark Homes (SMAP) reported an increase in loss from £1.47m to £2.93m. Directors are halving their remuneration from the beginning of July. Because of the weakened financial position, the board will ask shareholders at the AGM to agree to the departure from the Aquis Stock Exchange.
Food company Essentially Group (ESSN) lost £960,000 on revenues of £1.59m in the 16 months to the end of 2023. There was £301,000 in the bank at the end of the year.
Ormonde Mining (ORM) had net assets of €10.5m at the end of 2023, including €2.3m in cash. Management is evaluating investment opportunities.
Wishbone Gold (WSBN) reported an increase in cash outflow from operations from £787,000 to £1.62m. Cash fell below £6,000 at the end of 2023. A share issue at 1.2p/share and exercise of warrants raised £550,000 this year.
Phoenix Digital Assets (PNIX) made a pre-tax profit of £20.1m in 2023 following a fair value gain of £25.3m. This is prior to the recent tender offer.
Marula Mining (MARU) believes that the Blesburg lithium and tantalum mine will generate positive cash flow in the second half of 2024. The company has confirmed delivery of manganese ore from the Larisoro manganese mine and they will increase in the second half.
SuperSeed Capital (WWW) has issued 100,000 investor warrants exercisable at 120p/share to VSA Capital. The convertible loan notes will be redeemable on 21 June 2026 instead of September 2024.
Invinity Energy Systems (IES) increased revenues from £2.94m to £22m in 2023. The loss rose from £18.5m to £23.2m.
KR1 (KR1) had net assets of 106.3p/share at the end of May 2024.
Startup Giants (SUG) left Aquis on 27 June.
AIM
PI Industries has launched a 9p/share bid for Plant Health Care (PHC) and this is recommended by the board. The bid values the natural crop enhancement products company at £32.8m. PI is involved in all areas of the agricultural inputs sector in India, and it would be able to provide the finance and distribution to grow the Plant Health Care operations. PI wants to expand into areas such as the US and Brazil where Plant Health Care is already active.
Pubs and bars operator Nightcap (NGHT) has decided to cancel the AIM quotation because of the weak share price and the difficulty to raise additional funds. Trading is challenging and this is expected to continue for the rest of the year. EBITDA for the year to June 2024 is below expectations. Integrating The Piano Works has been more costly than anticipated. A general meeting will be held on 17 July but there is already sufficient support to pass the resolution to leave AIM. The quotation is likely to be cancelled on 29 July. A matched bargain facility will be provided by Asset Match.
Renewables investment company I(X) Net Zero (IX.) also plans to cancel its AIM quotation. The share price has slumped since joining AIM, partly because of the timing. Renewables businesses were in favour, but there was a subsequent change in investor sentiment to companies that were not profitable. There has also been a lack of liquidity in the shares. Cash is flowing out of the company and more funds are likely to be required. There were $81.1m of unrealised gains in 2023, mainly due to a rise in valuation for WasteFuel after an investment by BP. NAV is $122.2m. There are plans to obtain a matched bargain facility though JP Jenkins.
Musical instruments retailer Gear4Music (G4M) reported full year figures in line with the recent trading statement. Revenues were 1% higher at £83.1m, while the company returned to profit. Founder Andrew Wass will focus on growth strategy and Gareth Bevan will take over as chief executive. The new strategy involves continued investment in the platform, enhancing the product range and diversifying channels to market. This year, pre-tax profit is expected to improve from £1.1m to £2.8m.
Renewable energy company SIMEC Atlantis Energy (SAE) generated cash in 2023 due the sale of the Uskmouth energy storage project and ongoing revenues from MeyGen tidal project. Net debt was reduced from £54.1m to £50.6m, with the majority of debt in the MeyGen project, which is set to be expanded. Core company debt was £13.7m, before the subsequent receipt of £7m from a land sale. This puts the company in a strong position make further energy storage project investments.
Giftware and stationery manufacturer IG Design (IGR) continues to improve margins. Revenues declined 11% to $00m, while pre-tax profit increased from $9.2m to $25.9m. The decline was in North America. Lower margin business was not continued, and progress was made despite the economic conditions. Net cash was $95.2m. The company is stopping manufacturing in China.
AIM-quoted investment company Braveheart Investment (BRH) increased its stake in thermal insulation and acoustic material manufacturer Autins Group (AUTG) from 26% to nearly 27%. Autins interim revenues improved slightly to £11.7m and cost savings reduced the loss, but it was still £466,000. Second half sales are likely to decline in the UK because of changes in customer order mix and there is a halt in production at a European EV manufacturer. Flooring sales are weak.
Battery technology developer Gelion (GELN) has signed a joint development agreement with natural resources company Glencore International. The two companies will assess the suitability of Gelion technologies for use in Glencore’s stationary or mobile applications and pilot any opportunities. There will also be an assessment of strategic supply of materials to Gelion and future recycling.
Sanderson Design (SDG) is still finding the UK consumer market tough. Brand revenues have declined, and UK sales are 14% lower in the initial five months of the financial year. Manufacturing revenues are flat. Singers has downgraded its 2024-25 pre-tax profit forecast from £12m to £7.8m, which is not much higher than the figure for 2020-21. Net cash could fall to £10m.
Duke Capital (DUKE) says some investee companies have not been paying the expected amounts to the company. This has led to a decline in valuations of investments in the balance sheet. This is particularly the consumer-related investments. Total cash revenues were £30.3m in the year to March 2024, helped by three exits from investments. However, the fourth quarter recurring cash revenues fell to £5.8m, from £6.3m in the previous quarter. NAV is 39.8p/share.
Cosmetics supplier Warpaint London (W7L) expects interim revenues to be £46m, up 26%. First quarter revenues were 28% higher. There is a second half weighting to trading and new customers have been added. Freight costs are rising.
Nasdaq has sent two written notices to Renalytix (RENX) because the ADS price has fallen below $1 for at least 30 consecutive days. It is also below the minimum market valuation of $50m. Renalytix will appeal the determination that trading in the ADSs will be suspended on 2 July and they will subsequently be kicked off Nasdaq. Management will present a plan to become compliant again.
R and Q Insurance Holdings (RQIH) has sold Accredited to Onex Partners for $420m. Prior to that Inceptum was sold for £11.25m. Teneo has been appointed as provisional liquidator of R and Q.
Live Company Group (LVCG) is continuing discussions with a cornerstone investor to provide cash required because of the shortfall at the Brick Live division. A KPOP event in Germany is being promoted alongside the cornerstone investor. The 2023 accounts will not be published by the end of June, so trading in the shares will be suspended 1 July.
Secure payments technology developer PCI-Pal (PCIP) has settled all its patent litigation with Sycurio in the UK and US. The settlement is confidential.
MAIN MARKET
Kitchenware retailer ProCook Group (PROC) has returned to profit. In the year to March 2024, revenues were flat at £62.6m, while a loss of £200,000 was turned into a pre-tax profit of £1m. The number of active customers increased from 991,000 to 1.05 million. Net debt was reduced £700,000. Like-for-like sales are 3.5% ahead in the latest quarter.
Harworth Group (HWG) is raising £106m from the sale of land at Skelton Grange, which is more than double book value.
IT services provider Triad (TRD) fell into loss in the year to March 2024. Staff were retained ahead of securing work for them. Cash fell to £2.1m. The total dividend was maintained at 6p/share.
Andrew Hore
Quoted Micro 3 October 2022
AQUIS STOCK EXCHANGE
Kent brewer Shepherd Neame (LON: SHEP) returned to profit in the year to June 2022. The total dividend is 18.5p a share. Net assets increased from 1140p a share to 1194p a share, while net debt is back to pre-pandemic levels at £75.3m. Pubs and hotel revenues are still lower than in 2018-19. Beer volumes have more than recovered, although own beer volumes are 8% lower than three years ago. In the 13 weeks to 24 September 2022, like-for-like retail sales are 9% ahead, while own beer volumes were 1.2% higher – including a 14% improvement in own beer volumes.
Property investor Ace Liberty and Stone (ALSP) increased pre-tax profit by 49% to £2.07m in the year to April 2022. Net assets are 6% higher at £34m. Net debt has reduced from £54.8m to £44.6m. A dividend of 3.4p a share has been announced that will cost £2m.
VSA has downgraded its forecasts for battery storage technology developer Invinity Energy Systems (IES) following interim figures. First half revenues were £1.4m and the order book is worth £13m – mainly relating to the second half. However, 2022 revenues were downgraded from £14.1m to £11m. Next year’s revenues have been upgraded from £20.6m to £23.7m. Cash is likely to run out later next year.
All Things Considered (ATC) investee company Driift has acquired interactive live streaming events platform Dreamstage, which has been used by Driift for its own events. Deezer will invest a further £4m into the combined business. Music management business All Things Considered increased interim revenues by 19% to £6m and the loss was reduced. Net cash is £1.5m. A full year loss is expected compared with previous expectations of a £600,000 profit.
Wine maker Chapel Down Group (CDGP) increased interim revenues by 4% to £6.88m. Sparkling wine revenues were 35% higher. Pre-tax profit improved by 6% to £489,000. The company started harvesting in August and a strong yield is anticipated.
KR1 (KR1) is not immune to the decline in values of digital assets. The value of intangible assets fell by £155.5m in the period, which more than offset realised gains of £2.5m and income of £16.6m. Net assets have declined by nearly three-quarters and NAV is 30.6p a share.
St Mark Homes (SMAP) reported an increased interim loss and NAV fell from 120p a share to 116p a share. As current projects complete management will consider paying a dividend.
Coinsilium (LON: COIN) reported a net fair value gain on financial assets of £163,000 in the first half of 2022. However, the value of cryptocurrency assets has declined. Net assets have fallen from £5.84m to £4.57m.
ProBiotix Health (PBX) generated sales of £306,000, down £537,000 in the first half of 2022. Orders worth £1.12m have been received since the beginning of the year, so the second half revenues should be stronger, as well as higher than last year.
In the six months to June 2022, the value of the equity stakes held by Cadence Minerals (KDNC) fell from £12m to £5.75m. The main decline was in the value of the stake in AIM-quoted European Metals Holdings. There was £1.99m in the bank at the end of the period.
NFT Investments (NFT) has been hit by a reduction in the value of cryptocurrency, particularly Bitcoin. That means that NAV has fallen to £30.1m, including £20.4m in cash. There was a revaluation reduction of £265,000, but that was offset by exchange gains of £362,000, leaving the value of investments at £6.47m. At 0.91p, down 4.21% on the week, the share price is less than one-third of the NAV of 3p a share.
Thixotropic gels manufacturer Unigel Group (UNX) joined the Access segment of the Aquis Stock Exchange in August. There was £800,000 raised at 64p a share. The gels are used in the fibre optic industry. A maiden trading statement says that interim pre-tax profit was 94% ahead at £940,000. New products and higher selling prices boosted revenues and current trading is described as robust.
Clean Invest Africa (CIA) was the worst performer on the Aquis Stock Exchange last week. Loan notes have been converted into shares helping the company turn net liabilities into net assets of £1.72m at the end of June 2022. The company’s CoalTech technology is proven in palletising coal fines or coal waste and management believes that other materials could be palletised.
Hydrogen Utopia International (HUI) had £3.2m left in the bank at the end of June 2022. There were no revenues in the first half. There was progress with waste plastic to energy project developments.
Wishbone Gold (WSBN) had £2.38m in the bank at the end of June 2022. Drilling has commenced in Western Australia and Queensland in recent months.
Screwless spinal stabilisation systems developer TruSpine Technologies (TSP) had £3,471 in cash at the end of March 2022. There was a £390,000 cash outflow from operating activities and £1m of development spending capitalised. TruSpine subsequently entered into a funding agreement with Proffitt Brothers and $100,000 has been received.
Helium Ventures (HEV) is considering widening its investment strategy because of the lack of suitable helium investments. If a suitable acquisition is identified, then shareholders would be asked for their approval.
AIM
Investment in the medical imaging business is holding back short-term profit at engineer Avingtrans (AVG). In the year to May 2022, revenues were 2% ahead at 3100.4m and pre-tax profit rose from £7.6m to £8.3m. Demand from the nuclear sector is growing, but profit growth this year will be modest because of additional medical imaging costs. Net cash was £16.7m at the end of May 2022.
Online building and maintenance products retailer CMO Holdings (CMO) has been hit by softening demand for its products. There was still like-for-like revenue growth in first half of 2022, although Total Tiles sales fell because of tough comparatives. Even if the market gets tougher, there is still potential for growth because of the low share of online sales in the building materials sector.
Crownpeak Holdings is making an agreed 30p a share cash bid for omnichannel retail merchandising software provider Attraqt Group (ATQT). The plan is to combine Attraqt’s merchandising technology the Digital Experience Platform owned by Crownpeak. The share price has not been as high as the bid price since May, and it reached its all-time low of 17.5p prior to the bid.
Sustainable biopesticides developer Eden Research (EDEN) has obtained US EPA approval for its three active ingredients and two formulated products. Mevalone (a biofungicide) and Cedroz (a nematicide) sales should start next year via existing distribution partners. State approvals are required before launching in an individual state. Eden Research reduced its interim loss, but cash is still flowing out of the business. There was a cash outflow of £1.9m in the first half, including capitalised development costs and £1.85m was in the bank at the end of June 2020. R&D tax credits will help to replenish cash, but more will be required in the near future if Eden Research is going to take full advantage of the EPA approval.
Xeros Technology (XSG) has signed a joint development agreement with a global domestic washing machine component manufacturer for its XFilter microfibre filtration technology. A full licence dela could be agreed in six months. A placing raised £6m at 5p a share and a six-for-seven open offer could raise up to £1m more. In March 2021, a placing and open offer at 240p a share raised £9m. There was £2.6m of cash at the end of August 2022 and the cash outflow is £500.000 a month.
Digital transformation services TPXimpact (TPX) had a management overhaul last week because trading has been below expectations and there were complications with the integration of the businesses acquired. Chief executive Neal Gandhi and finance director Oliver Rigby. Bjorn Conway is the new chief executive. The order book is increasing in value, but revenue expectations have been cut from £97.4m to £90m. Operating costs are rising. and profit expectations have nearly halved.
musicMagpie (MMAG) has been hit be weak consumer spending with lower sales of technology. Rental income from pre-owned mobiles is growing, though, and that is good for longer-term revenues. The original pre-owned books and music operations are trading as expected. The second half should still be better than the first half, although a full year pre-tax loss is forecast on flat revenues. A small profit is forecast for 2023. Net debt is expected to be £8m at the end of the year.
Structural steel supplier Billington (BILN) increased interim revenues by 22% to £46.2m with nearly doubled pre-tax profit of £1.47m. finnCap has increased its 2022 earnings forecast by one-third to 26.4p a share.
Employee benefits services and insurance provider Personal Group (PGH) has increased revenues by 6%, but profit has declined due to higher insurance claims costs and investment in sales. The benefits of the investment will show through next year and insurance revenues will also recover.
MAIN MARKET
Shell company Milton Capital (MII) intends to float on the Main Market in the coming week. There will be £1m raised at 1p a share and the investors will get two warrants for each share and they are exercisable at 1.5p a share. Total flotation costs are capped at £50,000 and the first year’s operating costs will also be £50,000. The directors will not take salaries. Instead, they will receive a success fee on the completion of a reverse takeover. The initial focus is the technology sector.
Vehicle and property bridging loans both grew in the first half at S&U (SUS) and total net receivables were £370m at the end of July. Credit quality remains high. Pre-tax profit was 5% ahead at £20.9m. The first interim dividend was raised from 33p a share to 35p a share.
Rockwood Strategic (RKW) has transferred from AIM to the Main Market. Rockwood Strategic management believes that there are plenty of undervalued smaller companies that it can invest in and help to grow.
Hawkwing (HNG) is keeping up with the traditions of its previous incarnation TLA Worldwide and published its interim figures after the market closed at the end of the week. The standard list shell had cash of £2.03m at the end of June 2022. There are also more than £16m of convertible loan notes. It has loaned Internet Fusion Group £13.7m and plans a reverse takeover.
Andrew Hore
Quoted Micro 30 May 2022
AQUIS STOCK EXCHANGE
Silverwood Brands (SLWD) has secured a deal to buy Balmonds Skincare, which manufactures products for people with skin conditions, such as eczema, psoriasis and dermatitis. The total cost of the acquisition will be up to £8m, all in shares, depending on achievement of performance criteria. A shareholder loan will also be acquired by Silverwood Brands for 1.4 million shares. Last year, Balmonds Skincare revenues were £1.41m and the loss was £297,000 after an R&D tax credit of £35,000. The current manufacturing facility could quadruple capacity, although it would require additional storage facilities.
Arbuthnot Banking (ARBB) maintained assets under management at £1.35bn at the end of April 2022, while loan balances were 3% higher than the end of 2021 at £2.06bn. Interest rate rises will improve income.
CBD products supplier and diagnostics testing company Goodbody Health Inc (GDBY) increased first quarter revenues by 276% to £5.2m, although it was still loss making due to foreign exchange movements. Net cash was £5.5m at the end of March 2022. A small profit is still expected for the full year, although that is a sharp downgrade from previous expectations as Covid testing levels reduce.
St Marks Homes (SMAP) made another loss last year. In 2021, revenues increased from £216,000 to £259,000 and the loss reduced from £170,000 to £106,000 even though there was a loss from joint ventures. Cash in the bank fell from £709,000 to £131,000. Net assets are £5.23m and the shares are trading at a discount to this figure.
Hydrogen Future Industries (HFI) subsidiary company HFI Energy Systems has advanced a wind-based hydrogen production system combined with electrolyser technology. The aim is to generate hydrogen at $2/kilo, which is a lower cost than existing technologies. The hydrogen can be generated from waste water or saline. The group intends to invest $1m on development and it will own 51% of an IP developed with the rest owned by inventor Timothy Blake.
British Honey Company (BHC) has terminated its joint venture with Tusmore Park Farms, which was going to set up a new whisky distillery. British Honey will get back £450,000 of its original £750,000 investment.
Watchstone Group (WTG) still had £13m in the bank at the end of 2021. That was after a £3.67m cash outflow from operations. Net asset are 29p a share. There is a £63m plus interest and costs claim against PwC and another claim against former auditor KPMG. Watchstone is appealing against a recent VAT decision by the courts in favour of HMRC.
Eight Capital Partners (ECP) is satisfying a loan of €5m via the issued of the same amount of 7% fixed rate bonds, which are traded in Vienna and mature on 26 July 2022. Major shareholder IWEP will be converting its €20m of loans into shares. There could be a fundraising after this happens.
Evrima (EVA) has decided to maintain its interest in Kalahari Key and not accept the Power Metal Resources (POW) offer, which means that the latter could own 87.7%. Kalahari Key owns the Molopo Farms complex project, which has nickel, copper and platinum group metals deposits.
Shareholders of Lekoil Ltd (LEK) have voted in favour of the appointment of Bright Grahame Murray as auditor and to authorise the directors to set the remuneration.
Altona Rare Earths (ANR) has adjourned a general meeting that was seeking shareholder approval to reprice warrants exercisable at 20p a share. The new plan is to offer to swap them for warrants exercisable exercisable at 12p a share.
AIM
EnSilica (LON: ENSI) raised £6m at 50p a share when it joined aim on 24 May. The share price ended the week at 50.5p. EnSilica designs application specific integrated circuits (ASICs), which are in increasing demand in areas, such as Internet of Things, satellite communications, wearable health devices and 5G. EnSilica has successfully managed the current shortage in semiconductors because it has managed to pass on price rises. The cash raised will help to fund growth and could finance suitable acquisitions and the quotation will raise the profile of the company. The ASICs market is expected to be worth $27.6bn in 2026.
Scientifics instruments manufacturer Judges Scientific (JDG) is making its largest ever acquisition, which is expected to be sharply earnings enhancing. Judges Scientific is paying an initial £45m in cash for Geotek, a developer and manufacturer of instruments used to measure and log characteristics of geological cores and related services. There could be further payments of up to £35m (50% cash and 50% shares). A minimum operating profit of £6.4m needs to be achieved in 2022 to spark any payment. The maximum payment will be made if operating profit of £11.4m is achieved. WH Ireland believes that the deal will enhance earnings by 17% this year – with a 7-month contribution from Geotek – and by 30% next year. Pre-tax profit is set to improve from £18.1m to £22.4m in 2022, and then rise further to £25.5m in 2023.
The FDA has given approval for the Parsortix liquid biopsy test developed by ANGLE (AGL) for its use with metastatic breast cancer patients. Parsortix is the first system that harvests circulating cancer cells from a blood sample for analysis that has been approved. By obtaining the approval for breast cancer diagnostics, this provides a route map for gaining approvals for other cancers.
Credit hire and legal services company Anexo Group (ANX) could receive a significant income boost after the out of court settlement by VW because of its manipulation of air pollution tests. VW has agreed to pay £193m plus costs to more than 91,000 claimants in England and Wales. That is just over £2,000 each. This is a separate case to that being put forward by Anexo for its 13,000 claimants, although a similar settlement can be anticipated. House broker Arden Partners believes that the company will receive 50% of the compensation plus legal costs. Both Arden and WH Ireland are suggesting a pre-tax profit contribution of £20m-£25m after some additional costs. The timing of this is uncertain. Net debt is expected to be more than £70m by the end of this year, some of which is litigation funding related to the VW cases, and that would be much lower if the VW cash is received.
Demand for vehicles and equipment from television programmes and films means that Facilities by ADF (ADF) is benefitting from high utilisation rates. There were 39 productions serviced in 2021. TV series tend to book well ahead of the start of production, so visibility is good for the current year. The company is already investing in new trailers, although there could be delays in their arrival. Utilisation rates are expected to be around 85% this year.
Floorcoverings distributor Likewise (LIKE) reported full year figures in line with previous indications and it continues to gain market share. Acquisitions and organic growth in double digits are expected to enable Likewise to grow revenues from £60.5m to £114.9m in 2022, while underlying pre-tax profit is forecast to jump from £1.6m to £4.2m. New distribution capacity has been added and a distribution centre is on course to open in the first quarter of 2023.
Pennant International (PEN) continued to lose money in 2021, but the software and training company is already on course for a return to profit this year. Recurring revenues are running at £9m a year, helped by additional software contracts. The total order book is worth more than £32m with more potential orders in the pipeline. WH Ireland forecasts a 2022 pre-tax profit of £600,000 with most of the expected revenues of £17m covered by the order book.
Belvoir Group (BLV) has acquired TIME Group, another appointed representative of the Mortgage Advice Bureau predominantly based in northern England and the Midlands for an initial £3.7m. This is earnings enhancing. In the year to July 2021, TIME generated revenues of £4.2m and pre-tax profit of £600,000. Belvoir revenues are in the line with expectations in the four months to April 2022. Higher lettings income offset a decline in property sales income.
MTI Wireless Edge (MWE) First quarter revenues were 12% ahead at $11.2m, helped by a strong performance by the distribution business and a contribution from recent acquisition PSK Wind Technologies. There was a 3% decline in antenna revenues because customers could not get their hands on other components. The orders are there for antenna, particularly for 5G. The acquisition and dividends led to a fall in net cash to $6.5m, but it should improve by the end of 2022.
Tortilla Mexican Grill (MEX) is acquiring rival fast-casual Mexican restaurants operator Chilango. Investment firm RDCP currently owns Chilango. Tortilla Mexican Grill will pay up to £2.75m for the restaurant chain. In 2021, Chilango generated revenues of £7.3m and made a small loss. Chilango has eight sites in the London and Manchester.
Medical imaging technology provider IXICO (LON: IXI) reported interim revenues fell from £4.9m to £3.9m. That was not a surprise because it was flagged that there would be a decline this year, which was exacerbated by the early closing of a study. Pre-tax profit fell from £635,000 to £201,000. The order book was worth £12.6m at the end of March 2022, including £3.8m secured in the period. At least one more contract has been added since then.
Trinidad-focused Trinity Exploration and Production (TRIN) revenues improved from £44.1m to £66.3m in 2021 even though oil and gas production was lower. A new drilling programme will start in the second half of 2022, and this will help to increase production. A deeper appraisal well, with an estimated probability of success of 55%, could substantially increase reserves.
Purplebricks (PURP) has admitted that it made a higher than expected loss in the year to April 2022. There was still £43.2m in the bank.
MAIN MARKET
Motor vehicle lender S and U (SUS) is trading ahead of expectations. Group net receivables have increased by more than 5% since the beginning of the financial year. The fastest growth was at property lender Aspen where net receivables were 12.5% higher. The much larger Advantage car lending business grew its receivables by 3.5%, while credit quality has been maintained. Defaults remain low. The forecast yield is 5.8%.
Associated British Engineering (ASBE) kept its overheads to a minimum in the six months to March 2022 and still had £470,000 in cash and available for sale financial assets of £154,000. Net assets are £610,000, which is double the current market capitalisation.
Publisher National World (NWOR) says revenues are 4% ahead so far this year, although the rate of growth has slowed. Digital revenues are 38% higher year on year, while print revenues have declined due to lower circulation.
Zotefoams (ZTF) has made a good start to the year with revenues 13% ahead. Prices have been increased to offset higher costs. Polyolefin foams sales were 20% ahead with 5% relating to volume increases. Full year pre-tax profit could recover from £7.2m to £8.7m this year with a much bigger improvement expected next year.
Andrew Hore
Quoted Micro 27 September 2021
AQUIS STOCK EXCHANGE
Michael Williams has stepped down as chairman and chief executive of British Honey Company (BHC) and non-exec Philip Seers has also resigned. Robert Porter-Smith has rejoined the board and Alex Maurice becomes chief operating officer. This follows the general meeting requisition, and it is unclear what will happen with that.
Ecotricity has accelerated its 400p a share bid for rival renewable energy supplier Good Energy (GOOD) and it will close on 8 October.
St Mark Homes (SMAP) had net assets of 120p a share at the June 2021. Interim turnover was flat at £108,000 and the loss was reduced from £84,000 to £49,000. The residential development in Sutton will be marketed later this year.
Japanese whisky supplier Rogue Baron (SHNJ) generated revenues of $505,000 in the first half of 2021. There was a loss of $150,000 before flotation costs. Net cash is $139,000. A marketing push is planned for next year.
Rural Broadband Solutions (RBBS) has 2,650 monthly paying connections and expects 2,800 by the end of the year. Interim revenues were £395,000 and the loss was £401,000. Costs have increased due to the strengthening of management to boost the sales and marketing operations. Net cash was £341,000.
Western Selection (WESP) made a reduced loss in the year to June 2021 and no dividend is being paid. Net assets are £10m.
Yooma Wellness Inc (YOOM) is acquiring US-based sparkling water brand Big Swig for $2.5m, minus anticipated liabilities, in shares. This will increase the number of retailers the group deals with in the southern US.
KR1 (KR1) has participated in the Basilisk crowdloan and Kusama (KSM) parachain auction. It contributed 11,111.1 KSM to the crowdloan.
TruSpine Technologies (TSP) has raised £650,000 at 10p a share and Oberon Capital has been appointed as broker. An FDA 510k application for spinal stabilisation system Cervi-LOK should be lodged before the end of the year.
Rutherford Health (RUTH) has opened a community diagnostics hub in partnership with Somerset NHS Foundation Trust. There are up to five community hubs planned.
Capital for Colleagues (CFCP) had net assets of 69.71p a share at the end of August 2021.
IamFire (FIRE) has raised £396,000 at 3p a share. It issued broker Peterhouse with 200,000 warrants at a strike price of 10p a share. John Taylor, a director of AIM and Aquis companies, and Sandy Barblett, who is a director of Rogue Baron, have joined the board. Burns Singh Tennent-Bhohi is leaving the board.
Oscillate (MUSH) director Burns Singh Tennent-Bhohi has bought one million shares at 2.072p each. He owns eight million shares. The sister of the chief executive of S-Ventures (SVEN) has sold 600,000 shares at 27p each.
AIM
Judges Scientific (JDG) is improving its order book and some of the benefits will show through in the second half. In the six months to June 2021, revenues increased from £37.4m to £43m – the 2019 figure was £40.2m. Underlying pre-tax profit improved from £6.4m to £8.5m, which is slightly higher than 2019 interim figure. To put this in perspective, there have been three acquisitions since the first half of 2019, but it does show a strong recovery.
SourceBio International (SBI) says that updated Covid-19-related travel requirements, that mean that inbound fully vaccinated people will not need PCR tests on days two and eight, will hamper progress in the fourth quarter. Testing volumes had been growing and they will fall back. So far this month, the figure is 14,000 per day.
IT recruitment and services provider Parity Group (PTY) has been increasing investment in its business but that has led to an interim loss. In the six months to June 2021, Parity revenues declined from £29.9m to £26m, which was also below the second half 2020 revenues. Revenues are continuing to decline. A small interim profit has become a small loss and the loss is set to increase in the second half. Parity has swung from net cash to net det of £1.1m, excluding lease liabilities, at the end of June 2021 and a further cash outflow is expected in the second half.
Pennant International (PEN) growing its software revenues and plans to increase its exposure to the rail sector in order to lessen dependence on aerospace and defence. The first half was tough. Revenues did improve from £6.26m to £7.43m, but Pennant remains loss making. There are more than £1m of annualised savings. The three-year order book is worth £26m and there is also a significant pipeline of potential projects for the technical training business.
Cyber security firm ECSC (ECSC) increased interim revenues by 15% to £3m and there was a small reduction in loss to £207,000. Utilisation levels of consultants are increasing, and the recurring managed detection and response revenues grew by 17%. A full year loss is expected.
Cosmetics supplier Warpaint London (W7L) has done well with the roll out in Tesco stores and next year there will be a further boost from a Boots roll out. Interim revenues rose from £13.5m to £18.4m even though there was a decision to reduce close out activity. Profit quadrupled to £1.6m and it was higher than the 2019 figure. The interim dividend is 2.5p a share. Sales in the eight months to August were £27m.
Steel structures supplier Billington (BILN) improved interim revenues by 15% to £37.7m and pre-tax profit was one-quarter higher at £763,000. Net cash was £12.1m at the end of June 2021. Structural steel operations were near to full capacity in the period, while the safety products business increased revenues by one-fifth.
Kettle controls and water appliances manufacturer Strix (KETL) produced record interim figures, even though new product launches were too late to make a difference. The new factory has opened in China with plenty of capacity to handle growth.
Employee benefits services and insurance provider Personal Group (PGH) is growing its SaaS-based business. The deal with Sage is also starting to generate more significant revenues following a free pilot stage. Group revenues fell because of the lack of face-face insurance sales, but there should be a recovery next year.
MAIN MARKET
Maternity wear supplier Seraphine Group (BUMP) says that first quarter trading was strong, but it has been tougher in the second quarter because of supply issues. That means that first half profit will be lower. Full year profit should be at least in line with the 2020-21 figure.
Path Investments (PATH) has provided a loan facility of up to £600,000 to DG Innovate, which Path has conditionally agreed to acquire. DG Innovate is developing electric motor and energy storage technologies.
Serum Life Sciences is investing £50m in Oxford Biomedica (OXB) in return for a 3.9% stake. The cash will be invested in developing the company’s manufacturing facility.
NMCN (NMCN) plans to move from the premium to the standard list. This is part of Svella’s requirement to extend its commitment to subscribe for shares in NMCN. A circular is required to convene a general meeting that should be held by 1 November. Lloyds Bank has extended the company’s overdraft facility to 5 November.
Andrew Hore
Andrew Hore – Quoted Micro 31 May 2021
AQUIS STOCK EXCHANGE
Pharma C Investments (PCIL) is a shell seeking to invest in medicinal cannabis sector-focused companies, particularly those that provide ancillary products and services to the sector, and it joined the Access segment on 26 May. The indication is that plant genetics, product testing, marketing, procurement services and cannabis consumption devices are areas that might be considered. There was £920,000, after expenses, raised at 0.7p a share. Cash is equivalent to less than 0.4p a share. The shares ended the first day of trading at 0.825p (0.75p/0.9p/) and maintained that price until the end of the week.
Dispersion Holdings (DEFI) has made its first investment. An equity investment of €250,000 has been made in SportsX SAS, which is a technology platform for amateur sports clubs, for a 25% stake. SportsX SAS helps clubs to create club-branded Ethereum-based tokens. SportsX SAS takes 18% of gross merchandising revenues and charges an annual membership fee. It also retains a 10%-20% interest in club tokens. These tokens may eventually be listed on an Ethereum-based exchange, such as Uniswap.
Valereum Blockchain (VLRM) expects to launch the first listed company non-fungible token (NFT) live on a crypto exchange in the next few weeks. This will be via Valereum’s Bridge financial platform and use the Mattereum Asset Passport.
GP IT systems supplier DXS International (DXSP) maintained its profit on slightly higher turnover last year. Pilots of new systems have been continuing but the pace is slower than originally expected. Progress should speed up when there is less pressure on GPs due to Covid. Formal NHS GPIT Futures accreditation should be awarded soon for the ExpertCare hypertension product.
Virgata Services has extended its bid for Walls & Future REIT (WAFR) until 10 June. Virgata argues that the 50p a share bid provides cash immediately rather than some time in the future, even though it is a big discount to NAV.
St Mark Homes (SMAP) reported a fall in full year revenues from £324,000 to £216,000 and there was a loss of £170,000, compared with a profit of £114,000. Management is planning to refocus on developing family housing. Net assets were £5.45m (123p a share) at the end of December 2020. The share price is 87.5p (85p/90p), which values St Mark Homes at £3.86m.
Arbuthnot Banking (ARBB) has originated new loans of £247m so far this year. That means that customers owe £1.8bn. In the four months to April 2021, customer deposits increased by 10% to £2.6bn. There were £1.2bn of assets under management at the end of April.
Capital for Colleagues (CFCP) increased its NAV from 50.17p a share to 61.05p a share in the 12 months to February 2021. That includes a revaluation that reflects the March disposal proceeds for Anthesis Consulting. Interim revenues fell from £271,000 to £198,000, while pre-tax profit fell from £1.28m to £1m, due to a lower level of unrealised gains. There was £1m in the bank at the end of February and this increased to £2.64m after the latest disposal.
Oberon Investments (OBE) has acquired financial planning services provider Smythe House for £300,000 in cash and shares. Up to £233,000 more could become payable dependent on performance. That increases assets under administration by £40m. At the end of March 2021, Oberon had assets under administration of £550m and it reached more than £600m by May 2021. In the year to March 2021, revenues were 240% higher at £3.75m and momentum continues. Broking subsidiary Oberon Capital has been adding clients, including finnCap and MyHealthChecked.
TruSpine Technologies (TSP) has completed its second round of testing for the screwless, spinal stabilisation system Cervi-LOK. It took two surgeons in New York an average of 15 minutes to implant Cervi-LOK on cadavers. That is one-third of the time for other technology. The feedback was positive. There is another round of testing and clearance could be obtained as early as September. An additional £78,000 has been raised at 10p a share.
CBD products supplier Sativa Wellness Group Inc (SWEL) increased first quarter revenues by 377% to £1.37m and gross profit by 234% to £707,000. The loss has been reduced to 0.3p a share.
Ben Richardson has been appointed chief executive of SulNOX Group (SNOX) and Tony Granger becomes full-time chief administration officer. Nigel Armit is no longer finance director. Radu Forescu becomes chairman.
Good Energy (GOOD) has repaid £11.5m of Good Energy Bonds II and that will save annual interest charges of £600,000. The remaining loans total £4.9m and these should be repaid by the end of 2022.
Love Hemp Group (LIFE) raised £2.35m at 3.5p a share. The cash will fund marketing for CBD and hemp products. Coinsilium Group Ltd (COIN) raised £1.16m at 7.5p a share (with a warrant exercisable at 15p attached). The cash will be invested in non-fungible token and open finance sectors.
Mayflower Capital Investments has increased its stake in Altona Real Earths (ANR) from 14.1% to 29.5%. Ashok Patel has taken a 5.03% stake in Quetzal Capital (QTZ).
Watchstone Group (WTG) is seeking shareholder approval to cancel its AIM quotation at its AGM on 29 June.
AIM
Trellus Health (TRLS) intends to provide personalised care for people with chronic conditions with the initial focus being inflammatory bowel disease (IBD). It has an exclusive licence for the commercialisation of the GRITT (Gaining Resilience Through Transition) methodology developed by the Icahn School of Medicine at Mount Sinai. The company raised £28.5m at 40p a share. The share price jumped to 65p on the first day of trading, which values Trellus Health at £105m.
Medical devices developer Belluscura (BELL) has gained FDA clearance for its portable oxygen concentrator (POC) and it raised £17.5m – the company was originally seeking £15m of new money at 45p a share, which was in the middle of the expected range of 42p-48p. The shares ended the first day of trading at 53p.
Trading continues to be ahead of expectations at franchised lettings agency Belvoir (BLV). Management service fees 22% higher in the first four months of this year, while financial services income is 24% ahead.
Iodine producer Iofina (IOF) reported an increase in 2020 pre-tax profit from $1m to $1.3m on barely changed revenues of $29.7m. Lower interest charges and higher iodine prices will help Iofina to improve profit to $4.4m this year.
Eqtec (EQT) has raised £16m at 1.5p a share. This will finance repowering of plants in Italy and Croatia using the company’s gasification technology, plus investment in UK projects. This has led to a 26% upgrade in 2022 earnings to 0.1 eurocents a share.
MAIN MARKET
Zegona Communications (ZEG) will return £335m in cash to shareholders following the takeover of Euskaltel. The stake Zegona owns in Euskatel is equivalent to 170p a share and the cash distribution will be 153p a share. The rest of the cash is likely to fund another investment.
Kanabo Group (KNB) is raising £1m at 22p a share, which was a 10% premium to the market price. Kanabo is investing £750,000 in a pre-IPO placing by Hellenic Dynamics, a medical cannabis cultivator. A reverse takeover of an AIM shell is envisaged. There is also an agreement with Northern Greece-based Hellenic that could lead to a deal to purchase up to 1,000kg a year of cannabis flowers with pre-defined THC or CBD levels.
Andrew Hore
Andrew Hore – Quoted Micro 21 December 2020
AQUIS STOCK EXCHANGE
Employee ownership investor and adviser Capital for Colleagues (CFCP) increased its NAV by 21% to 52.69p a share in the year to August 2020. There were realised gains of £307,000 and a £1.35m increase in the fair value of investments. There was cash of £388,000 at the end of August 2020. Management hope to pay a 2020-21 dividend of at least 1p a share. Cobrio Fund Partners has increased its stake from 4.58% to 7.55% and they were nearly five months late in announcing this.
Gunsynd (GUN) has made a £200,000 investment in Low 6, a sports betting platform. Low 6 partners with sports teams and plans to float in 2021. Gunsynd has invested a further A$800,000 in Rincon Resources at 20 cents a share as part of its ASX listing on 21 December.
A successful planning permission application for a Sutton development St Mark Homes (SMAP) has led to the announcement of an interim dividend of 3p a share. The ex-dividend date is 29 December. Approval has been gained for additional retail space, which could be let to a large retailer, at an existing development in Sutton plus a new building with 30 apartments. There are also new developments in Hanwell, Finchley and Muswell Hill.
KR1 (KR1) has made two new investments. There was $150,000 invested in 15 million Lido tokens and $200,000 in 797,043.48 Swarm tokens. KR1 has also generated a further 141,564.69 Polkadot tokens since August. These have been sold for $797,000. KR1 still owns 3.5 million Polkadot tokens.
Good Energy (GOOD) has announced three strategic partnerships for its mobility as a service offer. Mina Energy has technology to make home charging more effective. Home Energy Infrastructure can arrange funding for installing EV charging infrastructure. Select Car Leasing can lease the vehicles.
Sativa Wellness (SWEL) says the EU has concluded that CBD is not a drug within the meaning of the UN single convention on narcotic drugs 1961. It therefore qualifies as a food. The company is preparing a novel food dossier for the UK Food Standards Agency in parallel with the EU. The UN has voted to remove cannabis from Schedule IV, the category of the world’s most dangerous drugs, while in the US there has been a bill passed to decriminalise cannabis at the national level.
World High Life (LIFE) has secured a listing for Love Hemp with Boots.
SulNOx Group (SNOX) shareholders have signed an option agreement with Rigworld Group, which could purchase 20 million shares at 40p each up until 31 March. This includes the whole of Nistad Group’s 14.6% stake.
Shareholders in Black Sea Property (BSP) have voted against four resolutions at its AGM, although they did vote for four other resolutions including one to retain the Aquis quotation. The two resolutions relating to Alex Borrelli were withdrawn and he has resigned from the board. Trading in the shares has been suspended until a new non-executive director is appointed.
Imperial X (IMPP) has 450,000 shares in Canada-based Imperial Helium and has subscribed for C$110,000 convertible debentures, which will be converted at a 20% discount to the IPO price.
Vulcan Industries (VULC) has raised £365,000 at 5.5p a share.
AIM
DP Poland (DPP) has agreed the acquisition of rival Poland-based pizza restaurant group Dominium for £22.7m in shares and loan notes of €7.5m. DP Poland raised £3.5m at 8p a share, while 21.8 million of the consideration shares were sold at the same price. The combined group will be one of the top three pizza chains in Poland.
Radio frequency communications networks developer CyanConnode (CYAN) has managed its cash well and continues to grow revenues. In the six months to September 2020, revenues were £1.5m and the loss was £1.37m. In the two months since the period end, revenues have been around £1m. The order book in India is worth £19m, which is equivalent to one million units, and these orders could be deployed over the next two years. There are also orders in Thailand and Sweden.
Construction dispute and property services provider Driver Group (DRV) maintained its profit in the second half of the year to September 2020. Underlying pre-tax profit still declined from £3m to £2.5m on revenues 9% lower at £53.1m. The higher margin Diales expert witness business continues to grow. Net cash was £8.2m at the end of September 2020. The final dividend is 0.75p a share.
Codemasters (CDM) has withdrawn is recommendation of the Take-Two Interactive bid and switched its support to the Electronic Arts offer of 604p a share.
Two companies have decided not to make an offer for Telit Communications (TCM) and that leaves u-blox as the only potential bidder left.
K3 Capital (K3C) is trading strongly and finnCap has upgraded its 2020-21 earnings forecast from 11.4p a share to 11.9p a share. There have been cross-selling benefits from recent acquisitions. The acquisitions business has performed well and there is longer-term potential from the Quantuma insolvency business.
Carpets retailer United Carpets (UCG) has decided to leave AIM and it is launching a tender offer of 6.25p a share for up to 29 million shares.
Property services provider Fletcher King (FLK) fell into loss in the six months to October 2020. Revenues from asset management and fund management clients was steady, but other revenues were weak. There is £3.1m of cash in the bank.
NWF (NWF) says that the fuels division has traded positively, and it has recommenced the process of assessing acquisitions. The new food warehouse is fully utilised, but the volatile demand has hit profitability. Feed volumes were slightly lower than the year before.
Summerway Capital (SWC) is switching its investing policy to the software sector and Vin Murria, who has built up AIM-quoted software companies in the past, is joining the board.
Yourgene Health (YGEN) had a steady first half with Covid-19 testing revenues helping to offset lower demand for other products.
Kodal Minerals (KOD) is acquiring the Fatou gold project in southern Mali. There is a mineral resource of 350,000 ounces of gold and potential to increase the figure.
Touchstone Exploration (TXP) has secured a gas sales agreement covering all production from the Ortoire block in Trinidad.
Trinity Exploration (TRIN) has signed an agreement with the National Gas Company of Trinidad to develop new projects in the Caribbean. This includes renewable energy, stranded gas and a micro liquefied national gas business.
MAIN MARKET
BATM (BVM) is investing $3m in Ador Diagnostics as part of a $10m funding. This will be spent on further develop its technology. BATM has a 36.7% stake.
Contango Holdings (CGO) has a potential 1.8 million ounces gold resource at an average grade of 1g/t at the Garolo gold project in Mali. There is further gold at greater depths. The first gold production could be before the end of 2021.
Spinnaker Opportunities (SOP) has conditionally agreed an all-share acquisition of Kanabo Research and has advanced a further £100,000 to the medicinal cannabis company.
Kin and Carta (KCT) has sold healthcare communications business Hive for £13.8m. The business contributed pre-tax profit of £1.2m last year.
Andrew Hore
Andrew Hore – Quoted Micro 5 October 2020
AQUIS STOCK EXCHANGE
Wine and beer maker Chapel Down (CDGP) made a similar interim loss this year. Wine revenues were one-fifth ahead even though sales were lost in pubs and the company’s own retail site. Online sales offset those declines. Wine stocks have increased by one-third to £11m. Beer and cider sales fell by 38% and gross profit slump by 59%. There was £5.83m in cash at the end of June 2020.
Coinsilium Group Ltd (COIN) reported an increase in interim revenues from £109,000 to £140,000. Reversal of impairments and unrealised gains helped to generate a pre-tax profit of £27,000, down from £242,000 because of lower unrealised gains. NAV was £2.52m, including cash of £129,000, at the end of June 2020. Since then, there has been an increase in the value of cryptocurrency and tokens held by the company.
Western Selection (WESP) has sold its stake in AIM-quoted Brand Architekts (BAR) and raised £1.43m at 109.78p a share. The shares were valued at £1.63m in the recent balance sheet. Peter Gyllenhammr increased his stake in Brand Architekts from 6.1% to 10.5%.
KR1 (KR1) reported an interim pre-tax profit of £522,000, including an unrealised gain of £711,000. The NAV was 6.18p a share at the end of June 2020. The latest digital asset investment is $100,000 in the Moonbeam Network project. This is a smart contract platform and KR1 will receive Glimmer tokens that will power Moonbeam’s blockchain.
Incanthera (INC) has announced positive data for a skin sensitisation study for skin cancer technology Sol. This shows it to be non-irritant. ImmuPharma has subscribed £250,000 for shares at 9.5p each. That takes the stake to 15.3%. A total of £350,000 was raised with directors subscribing for the other £100,000.
Housebuilder St Mark Homes (SMAP) has an NAV of 125p a share, compared with a share price of 87.5p (85p/90p). There was a swing from interim profit to loss.
Gunsynd (GUN) has invested £58,000 in gold explorer Angold Resources, subject to its reversal into ZTR Acquisition, which was formerly Oyster Oil and Gas, where Gunsynd already has a stake.
Property investor Ace Liberty and Stone (ALSP) has completed the £1.43m acquisition of a property in Scarborough leased to Skipton Building Society. It has exchanged contracts on a Carlisle property costing £1.71m.
NQ Minerals (NQMI) says that processing rates at the Hellyer gold mine have increased to 165 tonnes per hour. The average annualised production rate was 1.23Mtpa in July and August.
Gowin New Energy Group (GWIN) says it is near to appointing a new corporate adviser so that trading can resume in the shares. Management is working towards launching a tea business.
Primorus Investments (PRIM) has invested £1m in construction payments software company Zuuse. Thi is part of a £2.2m fundraising to pay for a transaction expected in the next few weeks. Primorus already owned shares and warrants in Zuuse, so it owns 1.7% of fully diluted share capital. Primorus has sold six million Greatland Gold (GGP) shares at an average price of 14.8p each. That leaves Primorus with 20 million Greatland shares.
Capital for Colleagues (CFCP) had an NAV of 51.53p a share at the end of May 2020.
IFA group AFH Financial (AFHP) says that business is recovering and it continues to be profitable and cash generative.
Eurocann International (BUD) is changing its name to DiscovOre (ORE) and the investing strategy broadened to include natural resources as well as cannabis-related activities.
SativaWellness Group Inc (SWEL) has been readmitted to the AQSE growth market following the reverse takeover of the company.
AIM
Avingtrans (AVG) improved its 2019-20 pre-tax profit from £5.3m to £5.9m despite loss contributions from recent acquisitions. One of those acquisitions, Booth Industries, has won a £36m doors contract for HS2. finnCap forecasts a 2020-21 pre-tax profit of £7.3m and Avingtrans is likely to reinstate the dividend.
Demand for the type of data erasure and cyber security services provided by Blancco (BLTG) remains strong, although April and May were tough. In the year to June 2020, revenues improved from £30.5m to £33.4m, helped by acquisitions. Pre-tax profit grew from £3m to £3.9m. Investec expects further profit improvement to £4.3m this year, but it will be second half weighted.
Geospatial services provider 1Spatial (SPA) reported an 8% rise in interim revenues to £11.7m, although the core business revenues made up a greater proportion of the total. There was an interim loss but positive operating cashflow of £1.7m. Net cash was £3.4m. 1Spatial could make a small full year profit.
Grant Thornton has decided to settle litigation with AssetCo (ASTO) rather than appeal the court judgement. This means that AssetCo can access the £28.6m lodged with the court plus the balance of money owed by Grant Thornton. Once this is received, AssetCo will have cash of £55m and net assets of around £52m. The market capitalisation already takes this into account.
The FDA has approved adrenal treatment Alkindi in the US and Diurnal (DNL) should receive a $2.5m milestone payment from distributor Eaton pharmaceuticals when sales start next year. That is on top of licence income. That means that Diurnal’s cash will last longer.
New Trend Lifestyle Group (NTLG) changes its name to Conduity Capital (CCAP) on 5 October. The former activities have been sold and Conduity becomes a shell.
Erris Resources (ERIS) plans to buy a 50% stake in Zinnwald lithium project owner Deutsche Lithium from Bacanora Lithium (BCN) in exchange for shares and a net profit royalty.
Yu Group (YU.) reported a decline in first half revenues from £56.6m to £45.9m due to lower energy consumption by its commercial energy customers. There was a lower loss in the period but reduced working capital requirements meant that there was a significant cash inflow from operating activities. There was £17.9m in the bank at the end of June 2020. Management has invested in marketing in order to win new business.
Intelligent Ultrasound (MED) is launching its first AI software product alongside GE Healthcare. GE has 480,000 ultrasound machines in use and the AI software will be integrated in a range of women’s health ultrasound machines. It could be rolled out across other machines in the future.
M and C Saatchi (SAA) has failed to publish its results and trading in the shares has been suspended. Windar Photonics (WHPO), Clear Leisure (CLP), Malvern International (MLVN), Tri-Star Resources (TSTR) and Hydrodec (HYR) have had share trading suspended for the same reason. The acquisition of Bristol Energy customers will boost scale and help Yu to move towards profitability.
MAIN MARKET
Car finance provider S and U (SUS) generated revenues of £42.8m in the six months to July 2020. That was a 3% decline, but the effects of the Covid-19 lockdown will be greater in the second half. Net receivables were down by 6% to £281.9m, but new loan volumes fell by one-third in the first half. Bad debt provisions were increased by £13.8m to £21.7m and this led pre-tax profit to slump from £17.1m to £6.3m. The property bridging loan business made a lower profit contribution, although the market has subsequently inproved. Even so, a dividend of 22p a share was announced, down from 34p a share.
Guild Esports (GILD) raised £20m at 8p a share. The share price ended the first day of trading at 8.15p.
Mining shell Critical Metals (CRTM) joined the standard list on 29 September. The placing price was 5p and the price was 5.5p at the end of the week.
Toople (TOOP) is on course to achieve £1.6m of annualised cost savings from integrating DMSL. The focus is on margin rather than just growing revenues.
Ross Group (RGP) reported a reduced loss of £830,000, down from £3.15m, in the first half of 2020. There were no revenues, but the company is trying to build up supply chain operations.
InnovaDerma (IDP) reported full year figures in line with its trading statement in July. The skincare products supplier slumped into loss due to higher marketing costs. There was cash of £1.2m at the end of June 2020.
Newspaper publishing consolidator National World (NWOR) had £4.31m in the bank at the end of June 2020. It is still evaluating acquisition opportunities.
Andrew Hore
Andrew Hore – Quoted Micro 25 May 2020
AQUIS STOCK EXCHANGE
Daniel Thwaites (THW) closed its pubs and hotels on 20 May and it will not pay a final dividend for 2019-20. Net debt was £65.4m at the end of March 2020 and there are £16.6m of spare bank facilities. Trading had been strong, and the predominance of freehold properties means that rent payments is not as big a concern as it is for some pub operators.
Housebuilder St Mark Homes (SMAP) had a NAV of 127p a share at the end of 2019. The share price is 87.5p. There is cash of £4.8m and the company intends to pay off its bond, which has a 6% coupon. In 2019, pre-tax profit dipped from £117,000 to £114,000.
KR1 (KR1) has raised $353,000 from the sale of RPL tokens, relating to the Rocket Pool, which is developing a proof-of-stake infrastructure service using Ethereum 2.0. The tokens were acquired for $0.21 each and sold at $1.67 each. The majority of the RPL tokens acquired are still held by KR1 even though there was a buyer for all of them. The takeover of digital asset custodian Volt Ltd has generated a further $244,000.
Rutherford Health (RUTH) has signed a framework agreement that will enable it to provide cancer treatment services to NHS trusts. The deal lasts an initial period of two years.
Altona Energy (ANR) has cancelled its open offer because the minimum amount was not raised. Instead, management is in discussions with three companies that could reverse into Altona. Cash will be required to cover the costs of a reverse takeover.
Trading has resumed in Lombard Capital (LCAP) shares. Lombard’s waste and recycling subsidiary is acquiring land in Preston for £1.08m. Lombard needs to issue more bonds in order to fully fund the purchase. Existing bond holders are swapping £507,000 worth into shares at 25p each and £320,000 has been raised from the exercise of warrants at 10p each. The current share price is 27.5p and it is more than five times the level it was two months ago. The site was previously used for recycling and Lombard will reapply for an environmental licence. It will be used for a waste to energy project and a plastic recovering plant.
Coinsilium Group Ltd (COIN) has been appointed as adviser to Kesholabs, a Kenya-based blockchain technology developer. Kesholabs is developing three applications that could be launched within 12 months.
Clean Invest Africa (CIA) says that CASA is set to resume limited operations after the lockdown in South Africa. CASA will produce test work and production of anthracite samples.
Ananda Developments (ANA) subsidiary DJT plants has met with the MHRA to discuss its plans to grow strains of cannabis. This is part of the licence application to grow medicinal cannabis. There will be further consultation with the UK authorities.
World High Life (LIFE) says that subsidiary Love Hemp has increased capacity for its LH Botanicals business.
IWEP is swapping part of its loan to Eight Capital Partners (ECP) into a 29.8% stake at 0.025p a share. Shares have also been issued to creditors to satisfy money owed.
First Sentinel (FSEN) has invested £270,000 in Stabiltech Biopharma as part of a £6m fundraising. The corporate finance subsidiary is advising the investee company on further fundraisings. The vaccine developer is developing a potential vaccine for COVID-19. Clinical trials should start in June.
Secured Property Developments (SPD) is still seeking property investments. There is £514,000 in the bank and net assets of £470,000.
All Star Minerals (ASMO0 has raised £80,000 at 0.02p a share and a further £170,000 is being sought. Ian Harebottle and Richard Lloyd, who both have mining experience, are joining the board.
NQ Minerals (NQMI) has raised £189,500 in placings at 7p a share and 7.5p a share. NQ has raised £340,000 in the past fortnight.
Shareholders have passed the resolution to consolidate 100 existing Wheelsure Holdings (WHLP) shares into one new share.
Sport Capital Group (SCG) has appointed Peterhouse as joint broker.
Engineering businesses consolidator Vulcan Industries is seeking admittance to the Aquis Stock Exchange. The focus is profitable metal fabrication and precision engineering businesses. First Sentinel is corporate adviser. The expected admission date is 1 June.
AIM
Renalytix AI (RENX) plans to gain a Nasdaq listing. The renal diagnostics company has not decided how much money it wants to raise. Renalytix AI has launched a joint venture to develop and produce COVID-19 antibody test kits.
STM (STM) subsidiary Carey has won a court case brought by a client. Adams v Carey related to a non-advisory SIPP taken out by Adams and an investment that he asked to be put in the SIPP. The investment performed poorly, and Adams claimed for loss of value. This case has been going on for more than two years.
Employee background checks provider ClearStar (CLSU) has launched a COVID-19 testing service that will help employers with back to work planning. That could attract additional clients for ClearStar’s services.
Imaging services provider IXICO (IXI) increased interim revenues from £3.43m to £4.56m and that helped to more than double profit from £215,000 to £475,000. There was cash of £6.66m at the end of March 2020. The order book is strong. It was £15.3m at the end of the interim period and more has been added since then. Data analysis from existing trials is continuing during the lockdown.
Tiziana Life Science (TILS) intends to demerge its genomics-based personalised medicine businesses into a separate quoted vehicle. This will enable the business to raise cash to develop the StemPrintER technology for the prediction of disease recurrence in breast cancer patients.
Tissue products developer Tissue Regenix (TRX) raised £14.6m at a share price of 0.25p. This was much-needed cash because existing funds were about to run out.
A share placing by Open Orphan (ORPH) at 11p a share raised £12m after expenses. This will help to finance services for COVID-19 vaccines and tests, as well as more laboratory facilities.
Digital TV technology provider Mirada (MIRA) has extended the term for its revolving credit facility by 12 months to the end of November 2021. Earlier this month, Mirada launched a lower cost version of its technology. Iris in Swift Mode is a pre-packaged platform.
Eddie Stobart Logistics (ESL) has acquired the Eddie Stobart brand from Stobart Group (STOB), which will have to change its name, for £10m. An annual fee of £3m was payable for the brand. This will be saved from now on. There have been some reductions in activity due to COVID-19, but grocery and e-commerce demand remain strong.
Cash shell Summerway Capital (SWC) has £5.55m in the bank as it continues to seek an acquisition.
MAIN MARKET
Contango Holdings (CGO) has published a prospectus relating to the acquisition of the Lubu coal project. The potential deal was announced more than one year ago. A £1.4m placing at 5p a share in January will finance costs and initial investment in the Lubu project. Readmission is expected on 18 June.
The Takeover Panel Executive has denied Moss Bros (MOSB) bidder Brigadier’s attempt to lapse its offer. Brigadier has asked for the ruling to be reviewed.
Pure Gold Mining Inc (PUR) has secured a $15m investment at $1.52 a share. This will be invested in the Red Lake Mine.
Loans to Shefa Gems (SEFA) totalling £1.25m have been converted at a premium to the market price. The shares issued account for 14.5% of the enlarged share capital.
Andrew Hore
Andrew Hore Quoted Micro 30 September 2019
NEX EXCHANGE
Peel Hunt has edged up its pre-tax profit forecast for brewer and pubs operator Shepherd Neame (SHEP) following the publication of its figures for the year to June 2019. They showed revenues of £145.8m and pre-tax profit of £11.4m, which was slightly better than expected. Brewing profit more than halved to £900,000 after the Asahi contract ended, but this was more than made up for by the contribution from managed and tenanted pubs. Own-brewed volumes have risen by 5.8% in the first few weeks of the year and managed ad tenanted pubs are showing like-for-like income increases. Debt costs will be lower than previously expected so the 2019-20 pre-tax profit forecast has moved from £11.5m to £11.7m, which will allow a slightly higher anticipated dividend of 31p a share – twice covered by earnings. There is potential to acquire more pubs.
In the 17 months to May 2019, pubs operator and automotive dealer Barkby Group (BARK) made a pre-tax profit of £75,000 on revenues of £6.29m. Stripping out the amount acquisitions were made under net asset value and acquisition cost, the profit is £135,000. The addition of pub sites, taking the total to six gastropubs and inns, and the purchase of Centurian Automotive, will significantly increase revenues in the latest 12-month period. The plan is to have up to 12 pub sites within five years.
Karoo Energy (KEP) is changing its name to IamFire and raising £143,000 at 2.4p a share. Burns Singh Tennent-Bhohi has been appointed as an executive director and Jeremy Ross joins as a non-executive. They are both directors of cannabis company Eurocann International (BUD). The existing business is being sold to Noel Lyons and other opportunities in the oil and gas and base and precious metals sectors will be assessed.
National Milk Records (NMRP) has been hit by a cyber attack and this will reduce profit this year. It has interrupted IT operations and EBITDA is set to be 10% lower than expected in the year to June 2020.
WH Ireland has published a broker note on Cadence Minerals (KDNC) and this suggests that the 27% stake in the Amapa iron ore mine in Brazil is a potential company maker, even before any benefits from the lithium project investments. The mine produced between 2007 and 2014 before being closed because of an incident at the port on the Amazon and a falling iron ore price. The total resource is estimated at 245Mt grading 41% Fe, but this figure dates back to 2012. The mine life could be 15 years. Capex of $168m will be required to restart mining and processing. The 27% stake will effectively cost Cadence less than £6m. The other shareholder is Singapore-based commodity trader IndoSino. If other investors are sought, then Cadence has the right to increase its stake to 49%.
Primorus Investments (PRIM) plans to consolidate every 20 existing shares into one new share. A general meeting will be held on 16 October. Primorus expects its A$500,000 loan note with Zuuse to be repaid, plus interest, in the next couple of weeks.
St Mark Homes (SMAP) reported an improvement in interim pre-tax profit from £18,000 to £84,000. The housebuilder achieved this improvement because of a much larger share of the operating profit in a joint venture and increased interest receivable. Admin expenses rose even though revenues were lower. NAV is 126p a share.
Recently floated cash shell World High Life (LIFE) plans to acquire Love Hemp in return for £4m in cash and the issue of 30 million shares. A further £2m could become payable in the next three years depending on the achievement of turnover targets. If more than target turnover is achieved in any year then the vendors will receive 5% of the excess. Love Hemp is a supplier of CBD and hemp products and it made a pre-tax profit of £532,000 on turnover of £2.5m in the year to June 2018. World High Life plans to raise up to £5m in order to finance the acquisition.
Ananda Developments (ANA) says joint venture DJT has applied for a licence to grow >0.2% THC cannabis and has been registered with the Drugs Licensing and Compliance Unit of the Home Office. DJT has acquired Aristaeus Elements, which is setting up as a cannabis extraction and processing facility, for £1 and assumption of debt of £51,000 – the deposit paid for the equipment for the plant. The plan is to finance the investment in the facility through debt secured against offtake contracts.
Blockchain-related investment company Coinsilium Group Ltd (COIN) reported a dip in revenues from £1.33m to £109,000, but a reversal of an impairment charge and gains on financial assets meant that it still made a pre-tax profit of £242,000, down from £554,000 the previous year. The non-cash gains meant that cash fell from £592,000 to £475,000 over the six months to June 2019. NAV increased from £2.36m to £2.59m.
First Sentinel (FSEN) reported a fall in interim revenues from £963,000 to £710,000, while the loss increased from £46,000 and £114,000.
Panther Metals (PALM) says that early identification of an area of the Big Bear project in Ontario shows high gold grades. The 100% owned area has been extended via the acquisition of four additional mining claims.
NQ Minerals (NQMI) generated revenues of £14.2m in the first half of 2019. The Hellyer polymetallic mine was not in production in the corresponding period last year. There was still a £17.9m loss because of high admin expenses. There was £65.6m of debt at the end of June 2019 and management believes that it can get more favourable terms now the mine is up and running.
AIM
Domain name registry Minds + Machines (MMX) is improving the quality of its earnings and it is nearer to sorting out legacy problems. Renewal revenues almost cover costs. Interim net revenues increased from $5.3m to $7.4m, while pre-tax profit trebled to $1.8m, helped by a full six month contribution from ICM. A full year pre-tax profit of $4.1m is forecast. Operating expenses should rise much slower than revenues and cash generation should be strong. A $5.1m cash payment will be made in the second half in order to cover those legacy costs. Even after that, the company should have net cash of more than $5m at the end of 2019. Longer-term, Minds + Machines could become a dividend payer.
Pelatro (PTRO) is dependent on fourth quarter licence sales to achieve forecasts following the 14% increase in interim revenues to $2.7m. That means that second half revenues of the telecoms marketing services and technology provider need to be $7.8m to achieve the 2019 target. There are some large potential sales in the pipeline, but delays of a few weeks could mean that they drop into 2020. Repeat revenues more than doubled in the first half because more of the business won has been in the form of revenue gain share contracts that take time to build up and produce revenues over a longer period than a one-off licence, which is recognised as revenue straight away.
Maestrano (MNO) has conditionally agreed to acquire Airsight Holdings, which offers engineering surveying services using Light Detection and Ranging (LiDAR) technology. Airsight had revenues of A$1.04m in the year to June 2019 and it is loss making because of development spending. Maestrano will issue 73.4 million shares to pay for the acquisition. There could be further payments depending on revenues. The Maestrano chairman is a shareholder in Airsight.
Escape Hunt (ESC) increased revenues from £800,000 to £2.2m in the first half of 2019 but it remains loss-making. Franchise revenues were flat, and all the growth came from the operated sites. Escape Hunt has signed an agreement with Proprietors Capital Holdings for the roll-out of franchise sites in North America.
Mattress supplier eve Sleep (EVE) reduced its loss but cash is still flowing out of the business. Net cash was £12.5m at the end of June 2019 and it is expected to be £8m by the end of the year.
MAIN MARKET
S and U (SUS) is adding new motor finance business even though loan standards have been tightened. Motor finance business Advantage Finance is on course to achieve its 20th year of profit growth. Bridging loans provider Aspen made a profit of £502,000 in the first half. Interim pre-tax profit rose by 3% to £17.1m and the dividend was increased by 6% to 34p a share.
Suit hire and retail business Moss Bros (MOSB) broke even, before the IFRS16 accounting changes for leases, in the six months to July 2019, which was slightly better than expected. A full year loss is still expected because despite like-for-like retail sales growth, hire revenues are declining and the IFRS16 changes will knock £2.5m off pre-tax profit. There was cash of £18.2m at the end of July 2019.
finnCap has reduced its 2019-20 forecasts for InnovaDerma (IDP) following its figures for the year June 2019. The beauty and health products supplier increased revenues by one-fifth to £12.9m and pre-tax profit more than doubled to £1.4m. This year’s pre-tax profit is expected to be £2m, down from £2.3m previously, because higher costs relating to marketing more than offset improved sales expectations. To put this in perspective, the 2019-20 pre-tax profit forecast back in August 2018 was £2.6m. InnovaDerma needs to start meeting forecasts rather than having them downgraded on a regular basis.
Tex Holdings (TXH) has appointed Price Bailey LLP. Trading appears to be picking up in the plastics and engineering businesses. There is a record order book of £12m.
Andrew Hore
Andrew Hore – Quoted Micro 3 June 2019
NEX EXCHANGE
BWA Group (BWAP) has conditionally agreed to acquire share capital of a company with rights to five mining projects, predominantly in Quebec. The company is majority owned by Canadian Stock Exchange listed St-Georges Eco-Mining Corp and the total cost of the deal is C$7.5m (£4.3m). This will be paid in unlisted, convertible, interest-free loan notes. The repayment date will be three years after issue. The notes are convertible at 0.5p a share, or the market price of a share if it is higher. BWA will subscribe for C$300,000 (£170,000) of shares in St-Georges. BWA needs to raise at least £500,000 to go ahead with the deal.
Chapel Down Group (CDGP) increased 2018 sales by 10% to £13m. Turnover from wine and spirits and from Curious Drinks grew by similar percentages. However, a pre-tax profit of £253,000 to a loss of £850,000 as overheads were doubled to £5.57m. There is still £12.8m in the bank even though there was a cash outflow from operations and £8.37m of capital investment. There are 635 acres of vineyards that have been planted and a further 388 acres will be planted on the North Downs.
Wealth management firm AFH Financial (AFHP) increased interim revenues by 61% to £36.6m and underlying earnings per share were 49% higher to 14.9p a share. AFH continue to acquire IFA firms. Funds under management totalled £5.4bn and that is expected to nearly double within five years.
St Mark Homes (SMAP) has net assets of 130p a share, which is a discount of around one-third to the share price bid/offer of 85p/90p. The dividend was maintained at 5.5p a share, providing a yield of more than 6%. In 2018, revenues increased from £120,000 to £294,000, but underlying pre-tax profit declined to £80,000, because of higher overheads and a lower contribution from joint ventures. The regional housebuilder intends to release capital from existing developments to fund other opportunities in the outer London Boroughs.
Coinsilium (COIN) reported near-trebled revenues of £1.68m in 2018, but a pre-tax profit of £121,000 was turned into a loss of £982,000. That is due to much higher overheads and a £973,000 impairment of current assets. There was £592,000 in the bank at the end of 2018. Most of the revenues came from advisory services to blockchain companies. That business has moved to Gibraltar.
KR1 (KR1) made reduced realised gains in 2018 and there was an unrealised loss on investments, compared with an unrealised gain in 2017. The total pre-tax loss was nearly £11m. The NAV fell from £13.6m to £6.11m.
Capital for Colleagues (CFCP) increased the value of its investments by around £630,000, which reflects performance and prospects. Even without that unrealised gain, the loss declined. The NAV of the employee-owned businesses investor rose from 41.5p a share to 48.1p a share at the end of February 2019.
European Lithium (EUR) is commencing a drilling programme to confirm part of the inferred resource at the Wolfsburg lithium project in Austria. This data will be used in the definitive feasibility study.
In the six months to February 2019, Wheelsure Holdings (WHLP) reduced its loss from £181,000 to £126,000. Revenues remain small but they grew from £44,000 to £61,000. There were orders from Germany in the period, but Netherlands and Austria were delayed. Lower overheads helped to reduce the loss.
Cancer therapy provider Proton Partners International Ltd (PPI) generated revenues of £1.47m in the year to February 2019. There was cash generated from operations but that was dwarfed by £42.3m of capital investment. Additional cash has been raised since the year end.
In 2018, the revenues of Chinese treatments supplier MiLOC (ML.P) dipped from HK$11.6m to $10.7m, while the reported loss more than doubled to HK$37.9m. That was mainly due to a royalty fee related to AKFS Plus haircare brand. There was HK$2.75m in the bank at the end of 2018. Since then, HK$3.45m (£334,000) has been raised in a placing at 28.5p a share.
Cannabis investor Sativa Investments (SATI) has secured a commercial offtake agreement with a Portuguese supplier of cannabis oil. This will be included in products produced in Somerset.
Barkby Group (BARK) has secured a new six-year lease for the Rose and Crown Inn, near Swindon. This is the second lease from Arkell’s Brewery.
TechFinancials Inc (TECH) says 75%-owned Footies Ltd has completed its sports ticketing system demonstration product. This will enable it to approach potential football club clients. It is still hopeful that it can sign one up this year. Ian Ayre has stepped down from the Footies board.
Investment company Eight Capital Group (ECP) had net assets of £668,000 at the end of 2018. The investments include shell companies Abal Investments (ABAL) (formerly Imaginatik) and Sport Capital Group (SCG) which has net assets of £206,000 at the end of 2018.
Investment fund manager Startup Giants (SUG) still had £646,000 in the bank at the end of 2018.
Trading in the shares of Angelfish Investments (ANGP), London Capital Group (LCG), Black Sea Property (BSP) and Gamfook Jewellery (GAMF) is suspended because they have not published their 2018 accounts. Gamfook has replaced its auditor and will not publish accounts before the middle of July. Allenby has ceased to be nominated adviser and broker, as well as NEX corporate adviser, to PCG Entertainment. Trading in PCG shares is already suspended because of a potential reverse takeover.
AIM
Ramsdens (RFX) has acquired another four stores trading as The Money Shop and 12 loan books from Instant Cash Loans. This takes the number of stores acquired to 22 and the loan books to 17. Ramsdens says that there will be a small contribution to profit in the first year. The additional stores will be rebranded as Ramsdens and it has 163 stores. The 2018-19 figures will be published on 12 June.
Ideagen (IDEA) has gained a new £1.2m, three-year SaaS contract with an airline. The software will be used for safety incident reporting. Ideagen is expected to report a 2018-19 pre-tax profit of £12.2m.
Volvere (VLE) is returning up to £16.6m via a tender offer at 1290p a share, a premium of 12% to the market price when it was announced. Recent disposals have generated £25.6m, which took the cash pile to £36.2m. Management says it requires around £20m of cash for ongoing requirements.
Stride Gaming (STR) has received a bid proposal from Rank Group. A 151p a share offer is being considered. Stride floated four years ago at 132p a share.
TSX Venture Exchange company Hunt Mining Corp is offering 10.76 shares for each share in Patagonia Gold (PGD) and this values the target at £17.2m. The bid is recommended, and Patagonia shareholders will own 80% of the enlarged company. Hunt is producing silver and gold in Argentina and Patagonia has assets in the same region.
Nautilus Mineral Services (NAUT) wants to cancel its AIM quotation. A general meeting has been set for 24 June and shareholders owning 73.4% agree with the proposal. A matched bargain facility is planned.
Suits manufacturer Bagir (BAGR) still has not received the remaining cash investment of $13.2m from Shangdong Ruyi, which has requested an extension and wants to change the terms of the deal.
AfriTin (ATM) says that it expects to ramp up production at the Uis tin mine in the fourth quarter. The initial phase of the plant will be able to produce 60t/month of tin concentrate.
AssetCo (ASTO) says that Grant Thornton has been granted permission to appeal the judgment against it relating to the auditing of past AssetCo accounts.
Tavistock Investments (TAVI) has ended its strategic alliance with Lighthouse Group (LGT) because of the Quilter takeover of the IFA.
MAIN MARKET
Aptitude Software (APTD) plans to sell Microgen Financial Systems for £51m. Previously, this business was going to be demerged on AIM. There should be £48.4m after expenses and a majority of this will be returned to shareholders.
Standard list shell Fandango Holdings (FHP) has ended acquisition discussions with Konnect Mobile Communications because it could not raise the funds it required. There was £8,000 in the bank at the end of February 2019.
Novo Holdings has exercised its option to subscribe for 6.57 million Oxford Biomedica (OXB) shares at 690p each. Novo will own 10.1%.
Summerway Capital (SWC) had £5.69m in cash at the end of February 2019. Potential acquisitions have been identified.
Toople (TOOP) has raised £662,000 at 0.35p a share and it will use £150,000 as final settlement of £601,000 of loans from David Brieth. There was £1.15m in the bank at the end of March 2019. There was a cash outflow of nearly £1m in the previous six months. Last September’s placing was at 0.3p a share.
Cathay International Holdings (CTI) has been fined £411,000 by the FCA due to a breach of listing principles. These relate to the preparation of forecasts and monitoring of financial performance, as well as a failure to provide information in a timely manner. Chief executive Jinyi Lee and finance director Eric Siu were both deemed to be involved in the breaches but they are considering an appeal.
Andrew Hore