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Quoted Micro 20 January 2025
AQUIS STOCK EXCHANGE
SulNOx Group (SNOX) has signed an agreement with Eastern Pacific Shipping, which will use the SulNOxEco additive on a minimum of 30 vessels for at least 18 months. The data from this evaluation could be used for marketing. Easten Pacific Shipping will introduce other potential shipping company clients, and it is subscribing for up to 11.7 million shares in tranches at 2p each. This will happen over the 18-month period. There will be a subscription of up to 4.72 million additional shares at 2p each, which will be over a three-year period. This could total up to 11.8% of the enlarged share capital.
Marula Mining (MARU) says that the Kinusi coper mine is selling a total of 1,000t to four commodity trading groups. The sales have been delayed but should be completed by the end of January. Metallurgical test work results are expected later in January. Management is seeking to secure offtake agreements and non-dilutive funding.
Kasei Digital Assets (KASH) is conducting a strategic review, which could include a departure from Aquis or return of cash to shareholders. Management believes that the outlook for the market for digital assets is positive. However, costs are negatively affecting performance. There is cash of £782,000 and digital assets of £4.26m.
Visum Technologies (VIS) has raised £100,000 from a convertible loan note issue. The conversion price is 0.5p/share. This will fund due diligence for potential acquisitions.
IntelliAM AI (INT) says David Richards is stepping down as chairman at the beginning of July.
Max Capital reduced its shareholding in WeCap (WCAP) from 8.09% to 7.94%. Brompton Asset Management has increased its stake in Global Connectivity (GCON) to 13.96%. RAJ Bailey bought 7,376 shares in Daniel Thwaites (THW) at 89p each.
AIM
Fortress Investment has raised its recommended bid for pubs and bars operators Loungers (LGRS) from 310p/share to 325p/share. Broker Singer did not believe that the original bid fully reflected the value of the business and argued that 375p/share would be a fairer value. Loungers at £338.3m was forecast to make a 2024-25 pre-tax profit of £18m, up from £13.9m last year, rising to £23.8m in 2025-26.
Fintech Fiinu (BANK) has signed heads of agreement for the first white-label deal for its Plugin Overdraft with a UK bank. It will provide a Banking-as-a-Service platform including Plugin Overdraft and requires regulatory approval and testing. The bank will have exclusivity in the UK for 12-months from launch, which could be in the fourth quarter of 2025. There will be royalty fees based on profit generated by the bank from the Plugin Overdraft.
Thor Explorations (THX) says that the Segilola mine in Nigeria produced 24,6000 ounces of gold, taking the total for 2024 to 85,000 ounces. Guidance for 2025 is 85,000 ounces-95,000 ounces. The all in sustaining costs are expected to be $808/ounce. Thor Explorations has moved into a net cash position. Exploration is focused on extending the life of the mine beyond 2028. Thee were positive results announced earlier in January. There should be news concerning the Nigerian federal authorities into the Osun state authorities allegations of underpayment of tax. The PFS for the Douta project in Senegal should be released in the first quarter of 2025.
Michael Ashcroft wants data and information publisher Merit Group (MRIT) to leave AIM. This follows his success in persuading Jaywing (JWNG) to back his AIM cancellation plan for the marketing services business. He owns 42% of Merit Group, so he has a high chance of success. A general meeting will be set within 21 days.
Deltex Medical Group (DEMG) also announced plans to leave AIM. This will save £200,000/year. Last year’s revenues from sales of heart monitoring systems improved from £1.8m to £2.1m and cash was £240,000 at the end of 2024. Andy Mears will be replaced as chief executive by Natalie Wettler.
Quantum Blockchain Technologies (QBT) has made a breakthrough for its Bitcoin Artificial Intelligence model mining tool. The Method C AI Oracle can skip calculations if it assesses that they will not be successful. This provides a 30% improved performance compared with other methods. The company is ready to demonstrate the technology and is seeking a chip manufacturing partner to produce a commercial product.
Gift wrap supplier IG Design (IGR) customers did not sell as much as expected over the Christmas period and this has hit orders. On top of the weak demand, there are US customers in financial difficulties. The fourth largest customer has re-entered Chapter 11 bankruptcy protection and total provisions will be around $15m.The American business is predominantly behind the 10% slump in revenues, although the international business revenues were 1% lower. IG Design is only expected to breakeven in the year to March 2025, compared with forecast pre-tax profit of $32m, and forecasts have been withdrawn by Canaccord Genuity.
Security technology supplier Thruvision (THRU) announced a strategic review. Management believes that additional funding will be required to scale up the business. There is currently cash of £1.5m, which will last until May unless potential orders are secured. The cost base will be assessed. Alternatives include bringing in a partner or selling the business.
Digital healthcare platform developer Trellus Health (TRLS) has entered an agreement with Johnson & Johnson Health Care Systems Inc for a US pilot programme for Trellus Elevate to support severe inflammatory bowel disease. Trellus Health will receive an upfront licence fee and a monthly fee. Net cash was $8m at the end of June 2024 and the additional income could help to extend the cash runway nearer to the end of 2025.
Pawnbroker Ramsdens (RFX) says improved performances from all divisions helped group revenues improve from £83.8m to £95.6m, while pre-tax profit rose from £10.1m to £11.4m. The dividend was raised from 10.4p/share to 11.2p/share. This year has started well. and management has decided to slow the new store opening programme. There will be more focus on the website.
Packaging equipment and automation provider Mpac Group (MPAC) confirms 2024 trading is in line with expectations. Pre-tax profit should recover from £7.1m to £10.5m. Net debt was £37m at the end of 2024. The order book is worth £111m and covers 53% of forecast 2025 revenues.
Telecoms infrastructure products developer Filtronic (FTC) has appointed David Marshall as director of programmes to ensure their efficient delivery. Sarah Shaw becomes General Counsel to manage commercial contracts and other legal affairs. This follows a positive trading statement that led to Cavendish upgrading its 2024-25 pre-tax profit forecast from £9.6m to £11.5m.
Construction recruitment services provider Hercules Site Services (HERC) has decided to sell its suction excavators business to focus on recruitment. The suction excavators were losing money and holding back performance. The disposal will also reduce borrowings. Labour supply revenues increased from £63.8m to £84.1m. Continuing pre-tax profit improved from £1.6m to £2.6m and further improvement to £3.4m is expected for this year.
Bars and leisure operator XP Factory (XPF) grew like-for-like revenues by 8.5% in the third quarter, which is well above the rate for the rest of the year. The figure for the year so far is 5.5%. Immersive escape rooms operator Escape Hunt was 14% ahead and Boom Battle Bars 17% higher over the Christmas period.
Cross-border payment services provider Finseta (FIN) says 2024 EBITDA will be £2m compared to a forecast of £1.9m. There was £2.2m of cash generated from operating activities. The benefits from investment in the business and new products will show through in 2025.
Premier African Minerals (PREM) has raised £1.2m from a placing at 0.0275p/share. A retail offer could raise up to £2.3m more. The cash will be invested in the Zulu project in Zimbabwe and to pay suppliers. The retail offer closes on 20 January. Some creditors may take shares for the money owed. If the cash raised in the placing and offer plus the capitalisation of debts does not get near to £3.5m the placing and offer will not proceed.
Cambridge Nutritional Sciences (CNSL) has settled its dispute with the UK DHSC with no admission of liability. The DHSC will not seek reimbursement of pre-production payments for Covid tests and Cambridge Nutritional Sciences will not claim for losses for failure to replace orders. The company will have legal costs of £200,000, but it will also release £2.5m from deferred income as exceptional income.
Cannabis-based medicines developer Celadon Pharmaceuticals (CEL) says that the strategic collaboration with Valeos Pharma is contributing to its business. This will enable the acceleration of supply of pharmaceutical grade EU-GMP cannabis active pharmaceutical ingredient products. Valeos Pharma will provide up to three tonnes of annual cultivation capacity, which is equivalent to £8.7m of income/year.
Gaming machines hardware and displays supplier Nexteq (NXQ) had net cash of $29.1m at the end of 2024, which is more than 50% of market capitalisation. Trading problems had already been flagged and there was no additional surprise. There was destocking and delayed product launches by customers. Revenues were 24% lower at $86.7m, which was slightly better than forecast. The results will be published on 19 March.
Supercapacitors developer Cap-XX (LON: CPX) has made its first shipment of co-branded products to electronic components distributor SCHURTER’S warehouse in Switzerland. On delivery, an invoice will be raised.
Construction and property asset management software supplier Eleco (ELCO) has acquired maintenance and management software provider PEMAC for €6m in cash with up to €2.4m payable based on achieving performance targets. Clients include Coca Cola and Heineken. This fits well with the existing ShireSysem product.
Argo Group Ltd (ARGO) is making a tender offer at 5p/share as part of its plan to leave AIM. Shareholders owning 71.2% of the company will not tender shares, so everyone else can have their shares acquired in the tender. The tender closes on 14 February.
MAIN MARKET
Packaging manufacturer and distributor Macfarlane Group (MACF) has acquired protective packaging manufacturer Pitreavie for £18m, with a net initial payable after debt movements of £10.6m. Pitreavie made a 2024 pre-tax profit of £1.3m. There should be cost savings from integrating the business.
Online travel hostel agency Hostelworld (HSW) says strong demand for Asian hostels helped 2024 net bookings rise 6% to 6.9 million, although there was a dip in average booking value. That meant that revenues were 1% lower at €92m. Lower marketing spend meant that margins improved. More bookings were made through the company’s app. Pre-tax profit is expected to jump to €17m. Net cash is €2m. There will be an update on strategy in the second quarter.
Bitcoin miner Vinanz (BTC) switched from Aquis to the Main Market on 13 January. The share price opened at 16.5p and rose to 22.5p before falling back to 16.5p at the end of the week.
Argo Blockchain (ARB) has been told it has until 15 July to regain compliance on Nasdaq with the minimum price requirement of $1 for its ADSs.
Andrew Hore
Quoted Micro 29 April 2024
AQUIS STOCK EXCHANGE
Marula Mining (MARU) says its partner NyoriGreen Mining was granted eight new graphite mining licences in the Nyorinyori and NyoriGreen projects in Tanzania. The licences last for seven years. One licence application is outstanding. Trading in the shares has commenced on the A2X stock exchange in South Africa.
Watchstone Group (WTG) had cash of £6.5m at the end of March 2024, which is an £800,000 reduction over three months. Net assets were 14p/share at the end of 2023, so this will be slightly lower now. Management is seeking to conclude its remaining litigation and return cash to shareholders. It can appeal the case it lost against PwC.
Ormonde Mining (ORM) investee company TRU Precious Metals, which is a gold and copper explorer in Newfoundland, will carry out an exploration programme at the Golden Rose project. TRU still has C$2.3m in cash and this will fund the programme. The timing of drilling is being decided.
Kasei Digital Assets (KASH) has increased its NAV to £3.68m at the end of March 2024 having closed its position in GBTC after the announcement of spot bitcoin ETFs and reinvested some of the cash in spot bitcoin.
Ora Technology (ORA) reported a £699,000 cash outflow from operations in the six months to January 2024. The company is developing a digital carbon trading platform. There was £314,000 of cash left at the end of January 2024.
EDX Medical Group (EDX) is eligible for the Apex segment of the Aquis Stock Exchange and trading will start on the segment on 29 April.
Hydrogen Future Industries (HFI) withdrew resolution four from its AGM. This was designed to gain shareholder approval for the 2024 incentive plan. Some shareholders were against the plan. Timothy Blake, who owns one-quarter of the company, has become chief executive but he will not be on the board. Fungai Ndoro has left the board.
Vinanz Ltd (BTC) has installed the first ten S21 Bitmain Antminer 200 Terahash/second miners. These are some of the fastest miners in the world. More of these machines will be acquired.
Equipmake Holdings (EQIP) has appointed Tony Ratcliffe as finance director, replacing Steven McGillivray.
Investment Evolution (IEC) has raised £160,000 at 20p/share. This will fund US consumer loans while the company makes progress with issuing its bonds.
Supernova Digital Assets (SOL) non-exec bought six million shares at 0.19p each. Saral Global VCC – Aftermarket Investments cut its stake from 11.5% to 10.4%.
Winforton Investments increased its stake in Good Life (GDLF) from 17.9% to 18.6%. Odd Asset Management raised its stake in skin treatments developer Incathera (INC) from 11.8% to 16.4%. Harry Hyman has raised his stake in Oberon Investments (OBE) from 4.98% to 5.29%. Peter Mills has taken a stake in Oscillate (MUSH) that is just above the 3% reporting level. Barry Hersh has reduced his shareholding in Global Connectivity (GCON) from 7.98% to 6.97%.
AIM
In the year to January 2024, geospatial data company 1Spatial (SPA) improved underlying pre-tax profit from £1.8m to £2.1m. The SaaS-based products are at an early stage of commercialisation, and it will take time for growth in business to show through in recognised revenues. The 1Streetworks product has already been taken up by UK Power Networks. The company generates cash from operations, but this did not cover capitalised development spending, which meant that 1Spatial’s net cash was reduced to £1.1m. Capital spending should have peaked. This year there should be enough cash generated to cover the development spending.
US-based uranium and critical minerals producer Energy Fuels is offering 0.026 of a share and an unfranked dividend of A$0.065 for each Base Resources (BSE) share. That is currently equivalent to A$0.302/share. This is a recommended bid and values Base Resources at A$375m. Two major shareholders owning 51.3% in total intend to support the bid. This will help to fund the development of Base Resources’ Toliara rare earth project in Madagascar.
Filtronic (FTC) has secured a £15.8m order for E-band amplifiers from SpaceX, which is part of a five-year strategic partnership. SpaceX is receiving warrants over up to 10% of the telecommunications technology developer. The first tranche is exercisable when £30m of orders have been made for E-band amplifiers and the second when there is a similar level of orders for other products. This sparked an upgrade by Cavendish, which raised its 2023-24 pre-tax profit forecast by one-third to £3.3m and the 2024-25 figure by 180% to £6.4m.
Donald McGarva is stepping down as chief executive of Aferian (AFRN) and leave the video streaming technology developer in October. This follows a trading statement revealing that 2023-24 revenues and EBITDA would be at the lower end of the previously suggested ranges of $47m-$48m and $1.6m-$2.6m respectively. There are delays in purchases of Amino video streaming devices. Costs have already been reduced and a further $3m will be cut. Management hopes to extend the borrowing facility of $16.5m that matures in November.
Vehicles provider for film and TV productions Facilities by ADF (ADF) was hit by the writers’ strike in 2023 and pre-tax profit fell from £4.8m to £900,000. Capital spending was delayed, although net debt increased to £12.9m. There has been a slow start to 2024 as schedules are rearranged. Pre-tax profit could still bounce back to £5m this year.
Audio products supplier Focusrite (TUNE) had already warned that the interims would be weak. In the six months to February 2024, revenues fell from £86.2m to £76.9m and pre-tax profit slipped from £10.9m to £3.4m. Working capital movements led to a large cash outflow so net debt increased to £27.3m, but that should partly unwind in the second half. The decline was in content creation equipment, whereas there was growth in revenues in audio reproduction equipment used for live events.
Sanderson Design Group (SDG) was boosted by growth in high margin brand licencing revenues and that helped to offset the decline in brand sales. Morris & Co was the only brand that did not contract during the year to January 2024. In 2023-24, revenues dipped from £112m to £108.6m and pre-tax profit edged down from £12.6m to £12.2m. North America was the bright spot. Costs have been reduced in the manufacturing operations. Net cash is £16.3m. Pre-tax profit is likely to be flat this year as most markets remain difficult.
Destiny Pharma (DEST) is exploring strategic options for post-surgical infection prevention treatment XF-73, including licensing and securing finance for the phase 3 trial. Potential partners have been put off by the cost of the phase 3 trial and management is reducing the planned cost. There was cash of £6.4m at the end of 2023 and that should last until early 2025.
i3 Energy (I3E) has published annual production guidance of 18,000-19,000 barrels of oil equivalent/day. Capital expenditure is expected to be $50.9m in 2024 and this means that production should be much higher at the end of year. Earnings are set to fall from £11.8m to £4m because of a decline in the gas price – although a recovery is expected. The annual dividend will be lower at 1.026p/share. WH Ireland increased its fair value estimate from 16.2p/share to 21.2p/share.
Chrysalis Investments has issued draft particulars of a claim against Revolution Beauty (REVB) that amounts to £39m plus additional consequential loss of £6.2m. This claim has not yet been filed with the court and relates to buying shares in the company when it joined AIM in July 2021. Chrysalis Investments was unsatisfied with the response it had got from the cosmetics supplier.
Musical instruments retailer Gear4Music (G4M) is benefiting from a focus on margins and reducing net debt. UK sales continue to grow, but they have declined in the rest of the world. Gear4Music returned to profit in the year to March 2024 and pre-tax profit is estimated at £1.4m and it could double next year. Net debt nearly halved to £7.3m. Chief executive Andrew Wass will become executive chairman and Gareth Bevan will take over his previous role.
Trellus Health (TRLS), which develops programmes for managing chronic conditions, still had net cash of $12.2m at the end of 2023 and this should last into the middle of 2025. Revenues were modest at £19,000, but a large-scale pilot was signed with United Healthcare earlier this year and patients are being enrolled. This and other contracts will initially generate modest revenues, but they are important in proving the effectiveness of the company’s technology.
MBU Capital is requisitioning a general meeting at metallurgical coal miner Bens Creek (BEN). It holds 22.1% of the company and wants the general meeting to discuss operational and strategic challenges. The Chapter 11 process continues to be progressed by the US subsidiaries of Bens Creek.
MAIN MARKET
First Tin (1SN) has updated the mineral resource estimate for the Tellerhauser tin project in Germany. Indicated and inferred tin mineral resource has risen by 35% to 138,600 tonnes. Total indicated tin is 37% higher at 45,000 tonnes. Test work at the Taronga in project in Australia indicates improving recovery levels.
Life sciences and aerospace components supplier Carclo (LON: CAR) had a particularly strong fourth quarter, which reflects the focus on improving margins and the financial status of the business. The benefits of the restructuring are starting to show through. Net debt fell from £34.3m to £30.4m at the end of March 2024. The current focus is the US restructuring, and this will benefit profitability this year.
Seraphim Space Investment Trust (SSIT) has sold its early-stage investments to new venture fund Seraphim Space Ventures II, which has the same manager, in return for an investment in the new vehicle. The portfolio cost £3.5m and is valued at £3.8m. That is 1.7% of the NAV at the end of 2023.
Chill Brands (CHLL) has suspended chief executive Callum Sommerton because of allegations about the misuse of inside information. Fieldfisher will carry out an investigation.
Andrew Hore
Quoted Micro 16 May 2022
AQUIS STOCK EXCHANGE
Brewer Adnams (ADB) says that trading is in line with expectation in the first four months of the year. The retail side is trading ahead of the same period in 2019. Sidney Sussex College in Cambridge has reduced its shareholding from 5.27% to 4.22%., while Michael Heald increased his stake from 18.2% to 19.3% by acquiring 3,200 B shares at 8870p each.
Silverwood Brands (SLWD) has made its first investment since joining Aquis last year. Ginger Teleporter is licenced to operate e-scooters and e-bikes in England. Silverwood Brands has subscribed for a convertible loan note of £200,000 with an interest rate of 15%. The conversion price is £28.94. Silverwood Brands directors Paul Hodgins and Andrew Gerrie are also directors of Ginger. Along with another shareholder in Ginger they have agreed to sell shares to Silverwood Brands at a nominal cost if the target valuation is less than two times the original investment.
National Milk Records (NMRP) says third quarter revenues were 4% higher at £5.63m, with all main parts of the business increasing their contribution. Health testing is growing fastest, but it is still less than one-quarter of the total. Milk purchase prices have been increased to cover higher farm costs.
Talent management and livestreaming company All Things Considered (ATC) invested $6m in a new company focused on music digitisation and blockchain technology, which has announced the acquisition of Napster.
Gunsynd (GUN) has sold 175,000 shares in Charger Metals NL, raising £93,000. It still owns 2.825 million shares.
ChallengerX (CXS) has signed a digital asset monetisation agreement with US-based online TV network FOXD. This is a five-year deal.
Hydrogen Utopia International (HUI) says it is in talks with Powerhouse Energy (PHE) about a project in Ireland.
Peterhouse Capital resigned as corporate adviser to Love Hemp (LIFE) prior to the announcement that an investor had not made the promised £1.2m subscription. A new corporate adviser is required for trading in the shares to recommence. A strategic review is ongoing, and a finance director is being sought.
AQRU (AQRU) says that its decentralised finance subsidiary has more than $50m of assets under management five months after the launch of the AQRU.io platform.
SuperSeed Capital Ltd (WWW) managing director sold 50,000 shares at 100p each. He still owns 79.6%.
EPE Special Opportunities Ltd (ESO) had net assets of 355.46p a share.
AIM
There have not been any large contract wins for telecoms billing software provider Cerillion (CER) this year, but the interims show the benefit of previous wins. In the six months to March 2022, revenues increased from £12.8m to £16.1m. Annualised recurring revenues are £9.8m. Underlying pre-tax profit jumped from £3.8m to £6.3m. The business is highly cash generative and net cash has reached £16.5m. There are no borrowings. The dividend has been raised by 24% to 2.6p a share. Although the order book has dipped from £42.1m to £39.7m it is still well above previous years. There is a weighted pipeline of prospective customer business of £35m and there is a good chance that some deals could be secured before the end of September.
Motor dealer Vertu Motors (VTU) had an exceptionally strong 2021-22 due to the delayed demand for cars due to lockdowns in the previous year. The figures were ahead of expectations. Revenues were £3.62bn, which is 18% higher than in 2019-20. Pre-tax profit jumped from £24.6m to £80.7m. The profit should more than halve this year. Supply shortages are continuing, although used car prices are set to come down over the rest of the year.
Omnichannel retail software provider itim Group (ITIM) has annual recurring revenues were £11.1m in 2021 and it has already reached £13m this year. Clients pay a monthly fee. There was a £1m pre-tax profit in 2021 and investment in growing the business means that it could halve this year. The company raised cash so that it could finance the replacement of an existing system with its own software without charging an upfront fee.
Healthcare technology investor and adviser Netscientific (NSCI) increased net assets to £18.5m at the end of 2021. There are 22 investments in the portfolio. WH Ireland has a sum of the parts valuation of 180p a share.
Trellus Health (TRLS) has changed its strategy to focus on the direct-to-consumer model and is broadening the market by including irritable bowel syndrome (IBS). Trellus Health can provide personalised care for people with chronic conditions with the initial focus inflammatory bowel disease (IBD). There should be initial revenues in 2022. Net cash is $32m and this should last more than two years as revenues build up.
Plug-in cards developer Concurrent Technologies (CNC) says component shortages held back revenues and they dipped from £21.1m to £20.5m in 2021. Even so, pre-tax profit improved from £3.7m to £4.1m thanks to lower operating expenses. Chief executive Miles Adcock joined the AIM-quoted company last June. He has reviewed strategy plans to launch new products more quickly. This year there should be eight new products – double the previous level. A manufacturing partner in the US will help the group win more business. Although there was an increased interim dividend, the total dividend for the year was unchanged at 2.55p a share.
Advanced coatings provider Hardide (HDD) is recovering but it is still some way from profit. Interim revenues were 50% ahead at £2.7m and while the loss was nearly halved it was still £771,000. Revenues for the year to September 2022 could be double the interim level, but so could the loss. Net debt was £335,000 at the end of March 2022. Overheads have fallen following the completion of the move to a new factory in the UK. Variable gross margin is 70%, so additional revenues will rapidly reduce the loss.
Further good news from NWF (NWF) thanks to the fuels business due to short-term volatility. Trading in the year to May 2022 will be significantly ahead of expectations.
Credit hire and legal services firm Anexo (ANX) increased 2021 revenues by 36% to £118.2m, while pre-tax profit was 50% ahead at £24.1m. The new housing disrepair business made a contribution, and the credit hire business is running at high levels. There is still potential upside from the VW emissions case. The total dividend is 1.5p a share.
Iodine producer Iofina (IOF) increased 2021 revenues from $29.7m to $39m and underlying pre-tax profit from $1.3m to $4.9m, even though iodine production was lower. Net debt was $3m at the end of 2021. Iodine prices remain above $60/kg. Plans are being made for additional production capacity.
Duke Royalty (DUKE) has raised a further £20m via a placing and PrimaryBid offer at 35p a share. The additional cash should enable Duke to increase its debt facility by £25m. Cenkos forecasts royalty revenues of £21.3m in the year to March 2023. That should generate enough cash for a 3p a share dividend.
Immedia Group (IME) has completed the disposal of its operating business and it is changing its name to Immediate Acquisition.
Sweden-based investor AB Traction has increased its stake ceramics and fragrance products manufacturer Portmeirion (PMP) to 5.08%.
MAIN MARKET
GS Chain (GSC) is a shell seeking a technology acquisition. It was introduced to the standard list at 1p a share. The share price opened on 13 May at 3p before ending the day at 3.625p (3.5p/4p). There is nearly £1m in cash that should last 12 months. The pro forma asset value is less than 0.18p a share.
Macfarlane (MACF) says first quarter sales and profit are ahead of the same period last year. Better packaging sales to industrial and hospitality sectors has offset weaker sales for e-commerce.
Flavours supplier Treatt (TET) grew revenues by 9% to £66.3m, although underlying pre-tax profit fell to £6.3m. Forecast revenues have been upgraded, but the profit estimate is the same due to lower margins. Orange oil prices have risen.
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