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Quoted Micro 17 February 2025
AQUIS STOCK EXCHANGE
Music management and event promotion company All Things Considered (ATC) more than doubled 2024 revenues to £50m and EBITDA was £1.5m. Growth is coming from adding managers and new clients, plus acquisitions. Further acquisitions are planned. An agreement has been reached to take the stake in livestreaming platform Driift from 32.5% to 100%. All Things Considered is assessing a move to an unspecified London Stock Exchange market.
Broker and investment manager Oberon Investments Group (OBE) has raised £2.5m in an oversubscribed placing at 4.5p/share. The cash will be used to accelerate growth, particularly in the broking business, which is expected to increase revenues by more than 50% in the current year. Mergers among larger broker provide potential to add to clients. There are also opportunities to add teams of investment and wealth managers. The Oberon AIM VCT (OVCT) is trying to raise a further £5m, plus over-allotment facility of £3.4m. Oberon Investments gets a fee based on the amount subscribed.
Cardiogeni (CGNI) has signed a memorandum of understanding with the private office of Sheikh Al Qassimi for funding of clinical trials. A joint venture will be formed, and it will receive £20m over a period up to 2027 to complete research and clinical trials in the UAE. There will be an initial cash injection of £5m. The cash will fund phase 2b/3 clinical trials and commercialisation of Cardiogeni’s heart failure treatments. The deal could be signed by the end of March 2025.
In the year to January 2025, EPE Special Opportunities (EO.P) NAV edged up to 328p/share. That includes cash of £11m. Trading was tough for all of the businesses in the portfolio. Investee company Whittard of Chelsea increased like-for-like sales by 6%. Pharmacy2U also grew organically and acquired a business in the pet care market.
ChallengerX (CXS) has entered into conditional agreements to acquire NYCE International for £1.6m, Virya VC for £280,000 and an instance of Reelsof AB’s remote gaming software and game aggregation platform for £160,000. These payments will be satisfied by the issue of 510 million shares at 0.4p each. There will also be a £600,000 fundraising. Virya founder Farzad Peyman will be appointed chief executive and NYCE founder Harmen Brenninkmeijer will become executive chairman.
Marula Mining (MARU) has signed the first copper sales agreement for the Kinusi copper mine with a European commodity trader. The initial delivery is 250 tonnes of copper concentrate based on 20% copper grade. The income is linked to the LME copper price with additional payments for gold and silver content. The first revenues should be received in this quarter. After successfully delivery, there will be more each month that will total up to 1,000 tonnes. There are three other potential offtake agreements. Kinui has reached a milestone, so $200,000 of shares have been issued to Takela Mining Tanzania at 6p each. Marula Mining has also paid the final consideration of £625,000 for Northern Cape Lithium and Tungsten in the form of 20.83 million shares at 6p each. Modifications to the plant at the Kilifi processing plant in Kenya should be completed in the second quarter. As part of the drawdown agreement, AUO Commercial Brokerage has subscribed for £500,000 worth of shares at 3.75p/share.
Valereum (VLRM) is not proceeding with the £2m option agreement with Blue Sky Ventures. Blue Sky was going to subscribe for shares at 10p each. It was previously announced that the option had been exercised. The proposed subscription may be taken on by another investor.
Inteliqo Ltd (IQO) wants to cancel the admission to the Aquis Stock Exchange. Inteliqo has been developing and marketing the Langaroo app for a client. It wants to save the costs of the quotation. Trading could end on 14 March if shareholders agree at the general meeting on 27 February.
Early-stage businesses investor MaxRets Ventures (MAX) is also seeking shareholder approval at a general meeting on 4 March to leave the Aquis Stock Exchange. There has been limited liquidity in the shares, and it can be difficult to trade. It has not been possible to raise additional cash.
Ormonde Mining (ORM) has secured three-year renewals for two gold exploration licences in Zamora Province in western Spain. Ormonde Mining plans to acquire the other 51.3% interest in the licences from AIM-quoted cyber security company Shearwater Group (SWG) for five million shares. That is a discount to the implied book value.
EDX Medical (EDX) has appointed Martin Walton as deputy chair. He has worked for other life sciences companies, including former AIM company ReNeuron.
One Heritage Property Development has reduced its stake in Zentra Group (ZNT) from 65.2% to 53.8% and Jason Upton, a director of the company, has raised his shareholding from 3.5% to 14.85%.
DXS International (DXSP) chairman Bob Sutcliffe bought 60,000 shares at 2.89p each, taking his stake to 2.08%. Gowin New Energy Group (GWIN) director Chen Chih-Lung has been transferred 9.73 million shares by Choice Only International Ent Co at a price of 0.00012894p each.
Investment Evolution Credit (IEC) has appointed Oberon as broker.
ASSET MATCH
The i-nexus Global (INX) auction has closed, and 49,220 shares were traded at 1.5p each.
AIM
Agricultural products supplier Wynnstay (WYN) reported a small dip in gross profit for the year to October 2024, but higher energy and labour costs meant that pre-tax profit reduced from £10.3m to £7.6m. Higher prices for milk and other agricultural products provide a more favourable background for this year. Even after a £600,000 National Insurance cost increase, pre-tax profit is expected to recover to £8.5m this year. A three-year programme called project Genesis will help to improve efficiency and there will be investment in additional feed capacity.
Cavendish has upgraded Filtronic (FTC) due to another contract from SpaceX. The 2024-25 pre-tax profit estimate has been raised from £11.5m to £11.9m, while the 2025-26 figure has been edged up from £8m to £8.3m. This £16.8m order is part of the framework agreement to supply technology for the Starlink Low Earth Orbit satellite network.
Specialist staffing provider Gattaca (GATC) has offset a small decline in net fee income in the first half through cost control. This is a better performance than the sector. Interim net fee income is 3% lower at £18m following a 10% decline in permanent net fee income. There are signs of recovery in permanent net fee income. Interim pre-tax profit is likely to be flat at £800,000. The full year pre-tax profit forecast is £3m. The forecast dividend of 3.1p/share should be twice covered by earnings.
Distribution Finance Capital Holdings (DFCH) has received authorisation from the FCA to conduct consumer lending. The core business is providing finance to distributors and manufacturers. The new retail products should be launched by the end of the first half of 2025. They can be offered through dealers that already work with the company.
Lord Ashcroft is trying to remove another of his companies from AIM. A general meeting has been requisitioned at wine maker Gusbourne (GUS), where he owns 66.8%. Talks with potential acquirers have ended and the strategic review has been terminated. This follows Lord Ashcroft’s success in getting Merit Group and Jaywing to leave AIM.
Genetics company GENinCode (GENI) is raising £4m at 3.7p/share and a retail offer could raise up to £500,000 more. The retail offer closes on 17 February at 5pm. There will be £1.5m set aside for commercialising its diagnostic products in the US. The US regulatory and reimbursement programmes will be completed. There will also be cash spent on expansion in the UK and the EU. There could be other funding options, such as partnerships and distribution agreements. Lipid inCode and Cardio inCode are the two main products. Lipid inCode diagnoses family hypercholesterolemia, which has a low rate of diagnosis with four-fifths of sufferers estimated to be undiagnosed. Cardio inCode focuses on genetic risk.
Optimisation software provider Checkit (CKT) has agreed a merger with Crimson Tide (TIDE). Shareholders will receive six Checkit shares for each Crimson Tide share. This ratio is based on the relative annual recurring revenues of each company. Checkit has been interested in a merger for four years and an indicative offer was made and rejected. Following the decision of Ideagen last July not to make a cash bid for Crimson Tide the two companies commenced discussions. The deal will increase the scale of the workflow management business. The Checkit chief executive and finance directors will remain in their roles. Crimson Tide was valued at £6.5m (99p/share) at the Checkit closing price last Monday.
Healthcare services provider Totally (TLY) has lost the NHS 111 Resilience support contract. The 12-month contract was worth around £13m and it ends on 15 February. This is due to the ending of national services for excess demand. Totally is still expected to make a pre-tax profit of £700,000 for the year to March 2025, but Canaccord Genuity has cut its 2025-26 forecast from £1.6m to £700,000. The 10-year government plan for the NHS should be published in the spring.
Medical imaging technology developer IXICO (IXI) announced the completion of the analysis of more than 6,000 images within its Huntington’s disease patient MRI datasets. This puts IXIXO in a strong position to be selected as a contract research organisation on Huntingdon’s disease clinical trials. This is part of the Huntington’s Disease Imaging Harmonisation consortium. This data should identify imaging biomarkers. This will help with improving clinical trial design, patient selection and drug development. IXICO has 25 clinical trials in its order book and ten of them are for Huntington’s disease. They account for 50% of the order book that was worth £15.4m at the end of September 2024. Globally, there are a total of 58 active Huntington’ disease clinical trials.
Avingtrans (AVG) subsidiary Booth Industries has won a £4.5m contract to supply pressure rated fire doors to HS2. These doors provide access to railway tunnels in emergencies. Booth Industries already had a £36m contract with HS2 for cross-tunnel sliding doors that seal off passageways between tunnels. Production for the latest contract is not expected to start until the year to May 2027. Interim results are due to be published on 26 February.
Serinus Energy (SENX) has won a legal case against the Romanian tax authorities over VAT refunds. The company has been awarded a VAT refund of $1.73m for 2018 and 2019, as well as interest of $750,000. This has to be paid within 45 days. The Romanian operation is loss-making, but there are gas projects that could be developed. The 2024 results are due to be published in March and there should be news concerning how the money will be invested in the business.
Empire Metals (EEE) has achieved a 91% extraction rate of titanium dioxide at the Pitfield project in Western Australia. The test work results suggest that the processing method is straightforward. Development of the processing flowsheet is continuing, and further refining could increase recovery. The main titanium-bearing minerals are anatase and rutile.
Surveillance technology developer Thruvision (THRU) says potential contracts have been delayed. This means expected 2024-25 revenues will be between £5m and £6m. The previous expectation was £9m. Cash should last until May and talks have commenced with potential acquirers or providers of additional cash.
Surgical instruments manufacturer Surgical Innovations (SUN) has returned to profit in the second half of 2024, although the full year loss could still be £300,000. Trading was broadly in line with expectations. Net debt was £300,000 at the end of 2024. Brent Greetham has been appointed as finance director. The business restructuring of the business will benefit the 2025 figures.
Wound healing technology developer AOTI Inc (AOTI) says 2024 revenues will be in excess of $58.1m, up from $43.9m. The Veterans Association accounted for less than three-fifths of revenues as new markets are developed, and they will become increasingly important. However, payments are slower. The full figures will be published on 26 April. Growth is expected to be more than 30% in 2025.
Strategic Minerals (SML) has identified additional mineralisation at the Redmoor tungsten and copper project in Cornwall. This will add to a future update of the mineral resource estimate, which is six years old. The total inferred resource was 11.7 million tonnes at 0.82% tungsten equivalent. Further drill core from 2017 will be relogged to support the remodelling of the deposit.
MAIN MARKET
Fintech Asia has completed the reverse takeover of Mongolia-based ICFG and changed its name to ICFG Ltd (ICFG). The payment was 177.84 million shares at a valuation of 64p each, which was higher than the market price. The main subsidiary InvestCore NBFI is listed on the Mongolian Stock Exchange, but ICFG owns more than 80%. This subsidiary has operations in Mongolia and Kyrgystan and is opening additional operations in Kazakhstan and Uzbekistan. There are plans to open up in other countries in Asia. Investment in software and AI helps ICFG to be competitive. Other operations include investment banking and property investment. Trading in the shares resumed and the share price ended the week at 50.5p.
ACG Metals (ACG) is planning a cash tender offer for 30% of warrants in issue. The offer is 50 cents for each warrant. It already announced an offer for the other 70% of warrants of 0.1 of a share for each warrant. Both tenders close on 28 February. The Gediktepe mine increased gold equivalent production by 49% to 57,000 ounces. Costs fell 2% to less than $1,150/ounce.
Shares in royalty company Cloudbreak Discovery (CDL) returned from suspension following publication of the accounts for the year to June 2024.
Andrew Hore
Quoted Micro 15 July 2024
AQUIS STOCK EXCHANGE
Cadence Minerals (KDNC) is raising £750,000 at 2.5p so that it can provide funding for the Amapa iron ore project. This will be spent on testing the 67.6% green iron product flow sheet to pre-feasibility study level. The pre-feasibility study will then be revised. Earlier in the week, an updated study of the Amapa iron ore project, where Cadence Minerals owns 34.2%, shows process plant optimisation can be improved. The mine life of 15 years can have a throughput of 13Mt/year of iron ore. Cash cost is reduced to $33.50/t. The NPV10 for the project has increased by one-fifth to $1.1bn.
VSA Capital (VSA) reported a slump in full year revenues from £4.36m to £1.89m and there was a loss of £2.4m. There was a £1.67m loss on investments due to the reversal of a transaction with Silverwood Brands (SLWD). There was cash of £229,000 at the end of March 2024 and net cash of just over £12,000. Net assets are £1.66m. The £56m fundraising for Invinity Energy (IES) happened after the year end. The company is working on another large deal.
Oscillate (MUSH) has entered into non-binding heads of terms for the acquisition of Quantum Hydrogen Inc. The bid target has exploration rights over 60,000 acres in the state of Minnesota. There is a 60-day due diligence period. Richard and Charlott Edwards have reduced their stake in Oscillate from 8.31% to 7.6%.
Marula Mining (MARU) has acquired a 51% interest in the Kruisriver cobalt project in South Africa for an initial £100,000 in shares at 10p each and a further £100,000 on completion of due diligence. The mine used to produce cobalt. Marula Mining will fund an updated bankable feasibility study. A monthly management fee of £4,300 will be paid to the seller and after 12 months or less a further £200,000 in shares and $1.7m in cash will be payable. Marula Mining is also acquiring the Kilifi manganese processing plant in Kenya. It intends to buy mining operations to supply it.
Gunsynd (GUN) has decided to leave Aquis and it plans to acquire a 100% stake in the Falcon Lake uranium, copper and cobalt project and the Bear-Twit VMS project in Canada. The consideration is £200,000 in shares and cash. It will also commit £100,000 to work programmes. The last day of dealings on Aquis will be 9 August.
Skin treatments developer Incanthera (INC) has received a second Skin + CELL production order of 250,000 units from Marionnaud AG. This will be delivered before the end of March 2025. Total projected revenues for both orders are more than £10m.
Shortwave Life Sciences (PSY) has received a positive response from the PCT examining authority acknowledging its patent claims for its drug delivery platform for psychedelic-based drugs. More than nine million shares have been issued as deferred consideration for the acquisition of Shortwave Pharma Inc.
Quantum Exponential Group (QBIT) is still talking to a potential investor and there have been indications of interest from others. These discussions have been going on for weeks, but management believes that they have potential for a positive conclusion.
Software developer IntelliAM (INT) has secured a funding award of £263,000 from DIF Lighthouse Fund. This is for research into the application of AI in lubrication analysis. A machine learning model will be created. Gresham House Asset Management holds 23.5% of the company.
United General is investing €1m in Substrate AI (SAI). Jonathan Belliss has increased his stake in Hot Rock Investments (HRIP) from 3.4% to 15.5%. Coinsilium Group (COIN) chief executive Eddy Travia and chairman Malcolm Palle each bought 300,000 shares at 1.67p each. Shepherd Neame (SHEP) non-executive director George Barnes bought 1,000 shares at 666p each. Tap Global Group (TAP) chief executive Arsen Torosian bought 12.25 million shares at 0.5p each.
EPE Special Opportunities (EO.P) had net assets of 246.28p/share at the end of June 20204.
AIM
Rosebank Industries (ROSE), which was set up by founders and management of FTSE 100 index constituent Melrose Industries, joined AIM on Thursday 11 July. Just like Melrose Industries, Rosebank Industries has started out on AIM as an investment company seeking a large initial acquisition. The plan is to identify underperforming industrial and manufacturing companies, acquire them and improve their performance. Rosebank Industries raised £50m at 250p/share and the share price soared on the first day and the momentum continued on Friday. The share price jumped to 675p.
Trading is in line with expectations at production machinery supplier Mpac (MPAC). Sales are likely to increase by 16% in the first half of 2024 and operating profit could nearly double. That is partly due to a weak first half in 2023. The order book is valued at £71m. New customers are being won with the Americas doing well.
Market research firm System1 Group (SYS1) has provided a first quarter update one week after publishing 2023-24 results. All geographic regions are growing, and group sales are 53% ahead of the first quarter of the previous year. This is a record quarterly figure. The company appears well on course to improve full year pre-tax profit from £3.1m to £4.4m.
Property services provider Kinovo (KINO) has almost sorted out its problems with former subsidiary DCB following the collapse of the buyer. The total liability is £12.9m with the final site set to be completed within weeks. That is a figure before any cash that could be recoverable. This could reduce the figure by more than £2m. Most of the cash has already been paid and the final amount of £2.2m will be paid over 18 months. In the year to March 2024, Kinovo revenues improved from £62.7m to £64.1m even though a private sector renewables contract worth £3.6m/year was not renewed by choice. Free cash flow was £7.2m and the DCB outflow was £7.4m.
In the year to March 2024, TPXimpact (TPX) revenues increased from £69.7m to £84.3m, while pre-tax profit improved from £800,000 to £1.8m. Disposals and reduced working capital meant that net debt fell from £17.5m to £7.1m. There is no dividend and that is likely to continue to be the case. The debt facility is £25m and lasts until July 2026.
Driving safety technology developer Seeing Machines (SEE) has bought Asaphus Vision, a machine learning and AI technology developer, for up to $6m from automotive components supplier Valeo and secured a collaboration agreement. The deal adds IP to the group and three ongoing automotive programmes. There is also a new Berlin base that will help to boost European business.
Communications and power products supplier Solid State (SOLI) reported a jump in full year pre-tax profit from £10.8m to £15.6m, but this level of profit will not be maintained this year. There was strong demand in the systems division and a £10m order was delivered earlier than expected.
Legal services provider Knights Group Holdings (KGH) reported figures for the year to April 2024 showing pre-tax profit improving from £11.5m to £14.8m and the total dividend was raised to 4.4p/share. This year has started well with residential property business recovering and net debt should reduce.
Investment company Mindflair (MFAI) was given a boost by the acquisition of Landvault by AI company Infinite Reality. Landvault is valued at $450m in shares and is part of the portfolio of Sure Valley Ventures Fund, where MindFlair holds13%, plus a further 5.3% via its stake in full listed Sure Ventures (SURE). The fund owns 7% of Landvault and the valuation of the stake is $6m, which is a 470% increase on book value at the end of 2023. That suggests that MindFlair’s share is nearly $1.1m.
Biome Technologies (BIOM) is still suffering from delays in orders at its bioplastics division and technical validations may not be finalised until later in 2024. Also, the coffee packaging market has weakened. In contrast, there should be significant revenues from the RF Technologies division. Overall revenues will be well below expectations. A small loss is expected for 2024. Additional working capital may be required.
Business recovery services provider Begbies Traynor (BEG) reported an improvement in pre-tax profit from £20.7m to £22m in 2023-24 as expected. There is organic growth as well as contributions from acquisitions.
Employee benefits and insurance provider Personal Group Holdings (PGH) is selling Let’s Connect, which it acquired ten years ago, at well below the purchase price. In 2014, Let’s Connect was acquired for an initial £6m. The Perkbox Vivup Group is paying £2m for technology salary sacrifice business Let’s Connect.
Demand for fixed interest fund has pushed up the assets under the management of Premier Miton (PMI) by 8% to £10.6bn. There has also been a more recent recovery in funds inflows for international equity funds. Multi-asset funds are less appealing to investors.
TV programmes producer Zinc Media (ZIN) has secured 2024 revenues of £28m, which is lower than the same time last year. There have been delays to signing deals, so that could be a timing issue. Improving TV advertising revenues could reduce the constraints on budgets and increase activity in the second half. Singer is maintaining its 2024 forecast revenues at £41m. The corporate video and branded content business has been restructured and costs reduced.
Pit optimisations at the Dokwe gold project in Zimbabwe, recently acquired by Ariana Resources (AAU), have increased measured and indicated resources by 16%. Dokwe could produce 75,000-100,000 ounces of gold/year for more than a decade. A revised pre-feasibility study should be published in a few months. The previous study suggested a post-tax NPV10 of $160m.
Oracle Power (ORCP) says drilling results from the Northern Zone project in Western Australia has intersected gold mineralisation to the north and south of the maiden resource. There is shallower supergene gold mineralisation than anticipated. Further drilling is planned to the north east.
Crimson Tide (TIDE) shares declined after Ideagen decided not to bid.
MAIN MARKET
Packaging manufacturer and distributor Macfarlane Group (MACF) has made another earnings enhancing acquisition. It In 2023, pre-tax profit was £1.3m. This deal will broaden the scope of the group’s protective packaging operations.
Creightons (CRL) has impaired the valuation of skincare company Emma Hardie, acquired for £6.2m, by £4.5m. Results will be published on 18 July.
Metals X has taken a 22.6% stake in First Tin (1SN), having acquired the shares from Clara Resources. Metals X will also subscribe for 11.5 million shares in the £2.1m fundraising at 4p/share.
Andrew Hore
Quoted Micro 24 June 2024
AQUIS STOCK EXCHANGE
Brewer Daniel Thwaites (THW) increased full year revenues by 6% to £115.5m. The main growth was in the pubs and inns division. Operating profit before property disposals improved 4% to £11.3m. The interim dividend was raised from 0.75p/share to 0.85p/share. Net debt increased from £66.7m to £70.8m at the end of March 2024. The pension surplus rose to £34.9m.
Adnams (ADB) is outperforming the market in terms of beer sales and volumes. Funding plans are still being assessed.
Marula Mining (MARU) is seeking admission to the Growth Enterprise Market Segment of the Nairobi Securities Exchange in July. This will provide access to institutional investors in Kenya. Initial spodumene sales of 500 tonnes have been made from the Blesberg site. The export sales process will complete in the next four weeks. Minimum sales target of 10,000 tonnes should be achieved for 2024. Other buy-products could be sold later in the year.
Cooks Coffee (COOK) says the Esquires store sales increased by 24% in the first ten weeks of the financial year. The rate of growth is faster in the UK than in Ireland, although like-for like growth was faster in Ireland.
At the end of 2023, Evrima (EVA) had net assets of £1.02m, down from £1.77m at the end of 2022. Evrima is ready to capitalise on natural resources opportunities.
Tap Global Group (TAP) has launched its US service via its joint venture with Zero Hash. This operates a B2B2C crypto and stablecoin infrastructure platform and the US users will get access to a core suite of services to trade bitcoin and other digital assets.
EDX Medical (EDX) is launching comprehensive hereditary germline cancer testing products and services. These will predict if family members are more at risk of contracting cancer. The first test identifies mutations in 70 genes associated with cancers.
Invinity Energy Systems (IES) has secured the sale of a 4.4MWh vanadium flow battery to PowerFlex in the US and it will help to underpin the 2024 forecast revenues of £37.3m. The deal is for California where there is significant demand for storage batteries.
The Mustang Energy acquisition of Cykel AI (LON: CYK) should complete on 26 June.
Health food company Essentially Group (ESSN) has received approval for the listing of $25m of 12% fixed rate notes 2027 on the Vienna MTF. This cash will fund capital investment.
EPE Special Opportunities (EO.P) had net assets of 354.89p/share.
Skin treatments developer Incanthera (INC) has completed the recent fundraising at 15p/share. Unicorn Asset Management has taken a 11.4% stake.
TruSpine Technologies (TSP) chairman Geoffrey Miller has increased his stake from 8.24% to 9.22%. Another shareholder transferred 1.5 million shares at 1.5p each.
All Things Considered (ATC) has appointed Allenby as corporate adviser and broker.
AIM
Medical technology company AOTI Inc (LON: AOTI) has developed products that help to heal wounds by focusing oxygen on chronic wounds. These can include diabetic foot ulcers and pressure ulcers. It joined AIM last Tuesday and raised £19.5m at 132p/share, but £6m of that went on expenses. There were also shares sold by existing investors. The share price ended at 136p. Revenues are growing at an annual rate of 38% and reached $43.9m in 2023.
Market research company YouGov (YOU) says sales bookings have been lower than expected since the interims were reported. Full year revenues will be approximately £324m-£327m and underlying operating profit will be £41m-£44m. There is reduced demand for fast-turnaround research. There will also be a change in revenue recognition for consumer panel services that delays some revenue into next year.
Longboat Energy (LBE) is selling its assets in Norway for $2.5m and the assumption of $8,5m of debt by the acquirer. This should save $1.25m in costs in 2025. The cash will be invested in the main asset, which is the 52.5% owned Kertang gas prospect, offshore Sarawak. A farm out process will be conducted in the second half of 2024. An updated competent person report is due at the end of the month. Chair elect James Menzies has bought one million shares at 9.75p each.
Full year results from Pennant International (PEN) achieved the expected recovery in 2023 pre-tax profit to £1.3m. Higher software income has helped margins to improve. The Gen 3.0 software launch this year has already led to a major contract gain. There is strong activity in the defence sector, but the timing of business is uncertain so a dip in pre-tax profit to £1.2m is forecast for this year.
There is a rival to the Checkit (CKT) indicative offer for Crimson Tide (TIDE), which has been rejected despite an increase in the bid from seven shares to nine shares for each Crimson Tide share. Former AIM company Ideagen has offered 312p/share for Crimson Tide, which is being considered.
Training services provider Mind Gym (MIND) reported an 18% decline in revenues and a slump into loss in the year to March 2024 and revenues are expected to continue to decline this year. Clients are putting off spending on developing the skills of employees. There was a loss of £12.1m after exceptional costs of £8.9m. There was a £6.6m write down on digital assets, restructuring costs of £1.8m and a £500,000 impairment of a US office lease. At the end of March 2024, cash was £1.4m. Liberum expects the underlying loss will be reduced from £3.3m to £1.7m in 2024-25. The new chief executive is updating strategy through further productisation of services.
Kibo Energy (KIBO) has simplified its restructuring plan. It is raising £340,000 at 0.01p each and creditors will convert £274,000 at the same share price. This replaces the £500,000 placing at 0.015p/share. Cobus van der Merwe will become an executive director and Clive Roberts a non-exec. Louis Coetzee is leaving the board.
Concurrent Technologies (CNC) has won its largest single contract worth $4.5m. The company will supply multiple standard plug-in cards to a major US defence and aerospace contractor. The lifetime value of the contract could be $40m. The income should begin this year, but the full benefit will come through in the future.
Crossword Cybersecurity (CCS) has signed a partnership to jointly market its Rizikon supply chain cyber platform. The deal is with a UK subsidiary of a global aerospace and security company. The focus is sub-sectors within the UK critical national infrastructure market. There is potential to generate several million pounds over the next few years.
Active Energy Group (AEG) dived because it intends to leave AIM and go into liquidation. There is no suitable offer for the CoalSwitch assets, but some discussions continue. Even so, shareholders are unlikely to get anything from the liquidation. Trading in the shares will be suspended on 1 July because the 2023 accounts will not be ready. Assuming the general meeting agrees to the proposals the AIM quotation will end on 23 July.
R&Q Insurance Holdings (RQIH) says that it intends to accept the alternative proposal from the buyer of Accredited. This means that the company will go into liquidation.
Geological information publisher Getech (GTC) reported a rise in loss from £3.1m to £3.6m in 2024. Getech has refocused on its core business because it does not have the financial strength to develop hydrogen products. The first four months trading in 2024 has improved by 17%, but the cash outflow needs to be stemmed. There was £400,000 in cash at the end of 2023, supplemented by a property sale in January raising £650,000. There is another property valued at £850,000. Cavendish believes Getech could break even this year.
Seed Innovations (SEED) has £3.9m in cash following the special dividend payment. The main investments are in Juvenescence, Avextra and Clean Food Group, all of which are biotech or cannabis related businesses. There are seven investments with valuations with two written down to nil.
MAIN MARKET
Chamberlin’s financial failure has provided an acquisition opportunity for Castings (CGS) which has paid £400,000 for the assets and inventory of Russell Ductile Castings. That is well below the previous book value. The foundry is based in Scunthorpe, where there is a 25-year lease, and it makes castings from 10kg to 7,000kg in iron and 10kg to 1,000kg in steel. Management believes they can maintain the customers, which diversify the business into new sectors making it less dependent on heavy trucks.
Advanced Energy Industries Inc has decided not to bid for power controllers supplier XP Power (XPP).
Andrew Hore
Sharepickers – Alan Green discusses Crimson Tide #TIDE, Warpaint #W7L, Electric Guitar #ELEG & Silver Bullet Data #SBDS
Sharepickers – Alan Green discusses Crimson Tide #TIDE, Warpaint #W7L, Electric Guitar #ELEG & Silver Bullet Data #SBDS with Justin Waite
Quoted Micro 23 January 2023
AQUIS STOCK EXCHANGE
Oberon Investments Group (OBE) is acquiring 63% of Logic Investments Ltd, which provides back office services to investment managers. Logic has funds under management and administration of more than £275m and Oberon Investments will merge its own back office operations with Logic. A placing raised £1.75m at 3.5p a share. Chairman Alex Hambro subscribed for 1.14 million of the shares, taking his stake to 1.64 million shares. The cash will be used to accelerate growth.
GP IT systems supplier DXS International (LON: DXSP) reported a 2% improvement in interim revenues to £1.65m, while the loss was £131,000 due to higher depreciation and operating costs. There was £399,000 in the bank at the end of October 2022. Management options can be exercised if annual turnover reaches £5m in the next three years. Hybridan forecasts revenues 2022-23 revenues of £3.61m with a pre-tax profit of £86,000.
Cooks Coffee Company (COOK) says UK sales were 41% higher in 2022, while sales in Ireland were 91% ahead. The focus is generating better returns from existing café sites, although there will be some new openings.
Healthy snacks supplier S-Ventures (SVEN) says full year revenues were £8.7m, but the inability to obtain ingredients hampered sales income. The operating loss is £2.6m. The revenues were one-fifth down on initial expectations for the year to September 2022. Supply problems have eased, and price rises have helped to offset higher costs.
Marula Mining (MARU) has appointed Geofields Tanzania to commence copper exploration at the Kinusi copper project, where Marula Mining owns a 49% interest, and £80,000 has been raised from a warrant exercise. Initial exploration results should be published in the second quarter of 2023.
Hydrogen Future Industries (HFI) is investing in hydrogen production facilities developer Tower Green. It has spent £100,000 in cash and shares on a 20% stake and has the right to invest a further £50,000 for another 10% stake. Tower has an agreement with Element 2 to supply hydrogen fuel to fleet operators. Hydrogen Future Industries has developed wind-based hydrogen production systems.
Tap Global (TAP) continues to rise following the previous week’s completion of its reversal into Quetzal Capital last week. There was £3.1m raised at 4.5p at the same time, even though the market price had not been that high since May last year. Chief executive David Carr acquired 190,000 shares at 4.1p each and finance director Anthony Quirke bought 135,135 shares at 4.4p each.
Newbury Racecourse (NYR) lost money on the Great Christmas Carnival and the company is likely to make a small profit in 2022. The other parts of the business traded in line with expectations.
Quantum Exponential (QBIT) had £2.48m in cash out of net assets of £4.85m at the end of October 2022. There was a cash outflow of £313,000 in the previous six months.
Guanajuato Silver Company Ltd (GSVR) has restarted processing at the Cata mill at the Valenciana mine. The initial processing rate is around 8,000 tonnes/month.
Invinity Energy Systems (IES) says that its VFB technology has passed phase 1 requirements for UK government’s LODES competition, and it is submitting the application for phase 2. The competition offers £11m of funding to the winner.
AQRU (AQRU) says that Accru Finance is raising the threshold for minimum account deposits on its app to $250,000. This will reduce assets on the app, but hardly affect revenues. There will also be further cost cutting.
Rogue Baron (SHNJ) sold 930 cases of Shinju whisky in the fourth quarter of 2022. Revenues were $120,000.
Gunsynd (GUN) has raised £194,000 from partial disposals of stakes in three companies. Gunsynd has invested £150,000 in Strategic Minerals Europe, the holding company of Aberdeen Minerals, which is exploring for nickel-copper-cobalt deposits in north east Scotland. Shares were acquired at 2.5p each and Gunsynd has a 2.7% stake.
Hydro Hotel Eastbourne (HYDP) is paying a dividend of 23p a share, up from 21p a share last year.
AIM
Pawnbroker Ramsdens Holdings (RFX) did much better than expected in the year to September 2022. Group revenues increased by 62% to £66.1m, while pre-tax profit jumped from £564,000 to £8.27m. Net cash is £8.84m. The total dividend is 9p a share. Earnings forecasts for 2022-23 were upgraded by 5% following a 6% upgrade in October.
Regional legal firm consolidator Knights Group Holdings (KGH) reported a 19% increase in interim revenues to £71.2m and underlying pre-tax profit was also 19% ahead at £9m. This was achieved in a flat market. Net debt was £35.6m at the end of October 2022. The interim dividend is 153p a share.
China-based Hainan Mining is funding the Bougouni lithium project that is wholly owned by Kodal Minerals (KOD). A $100m investment will be made into a joint venture providing Hainan Mining with a 51% stake. The work on the construction of the mine will be overseen by Kodal Minerals. Hainan Mining is also subscribing $17.75m for a 14.8% stake in Kodal Minerals and that money will be spent on other projects.
Mirriad Advertising (MIRI) is launching a strategic review and potentially putting itself up for sale. The board of the programmatic advertising business believes that Mirriad Advertising is undervalued even though it continues to make heavy losses. Revenues were £1.51m in 2022 and there was £11.3m in cash, which should last until the third quarter of 2023. The strategic review will consider how the business should be funded from then on. In-content advertising is set to grow significantly, but Mirriad Advertising has to have the funding to take advantage.
Legal services provider Gateley (GTLY) generated organic growth of 10% and improved profit by 12% in the first half. In the six months to October 2022, group revenues were 22% ahead at £76.1m, helped by contributions from the new patent activities, while pre-tax profit improved from £8.5m to £9.6m. The dividend has been raised by 10% to 3.3p a share.
Musical instruments retailer Gear4Music (G4M) grew revenues by 5% in the third quarter despite strikes and weak consumer spending. UK sales were flat, and the growth was in Europe. Gross margins declined. A full year pre-tax profit of £1.1m, down from £5m, is forecast.
Inland Homes (INL) chief executive Donagh O’Sullivan has resigned after little more than one month in the job.
Panther Securities (PNS) is paying a special interim dividend of 10p a share. The property investor says that it expects net assets to increase by £19m in 2022, mainly due to the removal of two derivatives liabilities relating to interest rates on debt. Loan-to-value is less than 40%. Debt refinancing discussions will begin later this year.
Online women’s fashion retailer In The Style (ITS) was hit in December by price cutting by rivals and difficulties in delivering orders. Revenues in the quarter to December 2022 fell by 22%. Full year revenues are expected to be £46m, which is not much more than the £44.7m generated in the year before flotation. The EBITDA outcome is likely to be a loss of between £4.25m and £4.75m. There was £3.2m in cash at the end of 2022. On 8 December, In The Style launched a strategic review and that continues.
Rockfire Resources (ROCK) has entered into a joint venture with Sunshine Gold for the Plateau gold deposit in Queensland. Sunshine Gold will fund all exploration for three years. Rockfire Resources will focus on the Molaoi zinc deposit in Greece.
Circle Property (CRC) intends to return at least £30m to shareholders by March 2023. Three-fifths of the portfolio has been sold in 14 months. At 220p, the shares are trading on a discount to NAV of around 18%.
Upgrades for Equals Group (EQLS) continue to push the share price higher. The forecasts had already been upgraded in December and earnings per share have been increased by a further 4% to 4.8p, up from 2.8p in 2021. There was £15m in the bank at the end of 2022.
Crimson Tide (TIDE) revenues were better than expected and that reduced the forecast loss. The mobile as a service technology developer is still on course to breakeven next year. Annualised recurring revenues are £5.8m, which is more than generated in 2022. The US provides additional potential.
Shanta Gold (SHG) produced 65,209 ounces of gold at an all-in sustaining cost of $1,270 at the New Luika gold mine in Tasmania, which is just below guidance. Capital investment means that it could produce 66,000-72,000 ounces of gold at an all-in costs of $1,200-$1,300/ounce.
MAIN MARKET
LED lighting and wiring accessories supplier Luceco (LUCE) as 2022 revenues and profit are at the upper end of guidance. Strong cash flow reduced borrowings with net debt one-third lower than expected at £24m. The finance director is leaving and being replaced with non-exec Will Hoy.
Medica Group (MGP) revenues and profit for 2022 should be in line with expectations. Improved radiologist capacity helped revenues improve from £61.9m to £77m, while pre-tax profit is set to improve from £7.4m to £13m. Acquisition opportunities are being evaluated.
Andrew Hore