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Quoted Micro 7 March 2022
AQUIS STOCK EXCHANGE
Field Systems Designs Holdings (FSD) reported a sharply increased loss in the six months to November 2021. There were unpaid debts of £300,000 due to the financial failure of NMCN. The overall loss increased from £267,000 to £1.52m on revenues that fell from £5.75m to £2.64m. The pandemic hit trading and the AMP7 spending by water companies has yet to ramp up. This is required to be done by 2025. The order book is worth £7m.
A general meeting has been requisitioned at CBD products supplier Love Hemp (LIFE) by a shareholder owning more than 5% of the company and it will be held on 1 April. The requisitioner wants Andrew Male to be removed as chairman and the directors’ salaries slashed by 75%. They also want a strategic review of the company and a review of the financials, pus a halt to marketing spending.
Quantum Exponential (QBIT) has made its first investment. It has invested £300,000 out of a £470,000 fundraising by Siloton, a company that uses quantum techniques and photonic integrated circuits in sub-surface optical scanning devices used in healthcare and testing. The initial use is to monitor age-related macular degeneration. Quantum Exponential holds a 12.8% stake.
Gunsynd (GUN) is changing its investing policy. The sports sector has been added to the resources, life sciences and alcoholic beverages sectors. The rest of the policy is unchanged. The shareholders will vote on this change at the AGM.
Apollon Formularies (APOL) has signed a joint venture agreement with South Africa-based medical cannabis company Tri-Media Canna. Apollon will own 49% and receive a gross royalty on sales of its products in South Africa. There will also be opportunities for clinical trials for cancer treatments in South Africa. Tri-Media Canna is investing £150,000 in Apollon at 2.5p a share and will invest a further £150,000 in the future when the agreement is finalised.
Newbury Racecourse (NYR) has received the final payment of £10.7m for the land sold to David Wilson Homes. The cash will be used to pay down borrowings.
In the year to August 2021, Wheelsure Holdings (WHLP) reported a reduction in revenues from £233,000 to £144,000. The loss increased from £203,000 to £224,000.
KR1 (KR1) has invested $7m in Zee Prime II as part of a $35m fundraising.
Tectonic Gold (TTAU) has received a A$289,000 cash rebate from the Australian tax authorities. There will be a further claim for work in the second half of 2021.
Vulcan Industries (VULC) has raised £256,500 from a placing.
Trading in Early Equity (EEQP) shares has been suspended.
AIM
Battery metals producer Neometals already had an ASX listing prior to joining AIM, which management hopes will raise the company’s profile in UK and Europe. This was an introduction, so no new money was raised, although the expenses were £1.53m. The introduction price was 70p and it has risen to 85.5p. Perth-based Neometals has 13 subsidiaries, two joint ventures and one associate business. There is a lithium-ion battery recycling joint venture with SMS Group called Primobius. This will use the company’s own lithium-ion battery recycling technology. There are also two potential opportunities in Finland and Sweden for vanadium recovery projects. Neometals has a 70% stake in Reed Advanced Materials, which has developed the ELi lithium process. This reduces the requirement for reagents and is at semi-pilot testing stage.
The core software products sold by GetBusy (GETB) continue to grow sales and have excellent retention rates. Newer products, such as Certified Vault and Workiro are still at the early stages of building their customer bases, but they provide cross-selling opportunities to existing clients. GetBusy continues to lose money even though revenues grew from £14.2m to £15.4m. Annual recurring revenues are £15.8m. Net cash was £2.67m at the end of 2021.
Cloud-based secure payment technology provider PCI-Pal (PCIP) continues to win business even though the patent infringement dispute with Semafone continues. Total annual contract value is £11.4m. The company remains loss making, although the loss is falling, but the cash raised last year means that this is not a concern. Offices have been opened in Canada ad Australia.
Following FCA approval, Fletcher King (FLK) has completed the placing £547,000 at 52.5p a share. Elliott Bernard has a 29.99% stake and David Gibbs and Matthew Wise have been appointed to the board on his behalf.
MAIN MARKET
BATM (BVC) grew strongly last year, and both the biomedical and network and cyber divisions have much further to go. The biomedical division benefited from continued demand for Covid-19 testing, but other diagnostic tests also increased sales. There are new products that will enhance that growth. BATM is starting to win contracts for its Edgility edge computing and network function visualisation product. Group revenues were $140m in 2021 and they could rise to $157.9m this year. Pre-tax profit was boosted by one-off gains in 2021. A 2022 pre-tax profit of $12.7m is forecast with a jump to $20.1m anticipated in 2023 when the significant investment made by BATM really starts to pay off.
Hamak Gold (HAMA) is a Liberia-focused gold explorer with two gold prospects. Liberia is apparently an underexplored and underdeveloped area in sub-Saharan Africa. There are already two significant gold projects in Liberia that are near to the company’s prospects. Hamak raised £955,000 at 10p a share. The £706,000 raised after expenses will finance the initial exploration.
More Acquisitions (TMOR) is a new cash shell that intends to make acquisitions in the energy transition sector. The placing raised £1.25m at 1p each. More Acquisitions has issued all shares at the same price and there was a cap on expenses. This means that the underlying NAV is 0.96p a share. The share price ended the first day at 1.15p (1p/1.3p). The cash could be supplemented by up to £3.8m if all the warrants in issue are exercised.
URA Holdings (URAH) has returned to the London market after more than three years but this time it is the standard list and not AIM. The cash shell has secured the acquisition of Malaika Developments, which has exploration interests in Zambia. URA issued 60 million shares to acquire the company and raised £1.05m at 2p a share. The share price opened at 2.5p and closed at the end of the week at 2.25p.
Alkemy Capital Investments (ALK) has been readmitted to the standard list after it set up a new subsidiary to potentially supply lithium hydroxide monohydrate to battery manufacturers. The new plant could be set up at Teesside in the freeport. The board is assessing the prospects for the project and a feasibility study should be delivered at the end of March. The shares were readmitted at 100p, but the bid/offer spread is 75p/125p.
In the year to September 2021, telecoms services provider Toople (TOOP) reported a reduction in revenues from £3.44m to £3.01m, although gross profit increased. That was still not enough to cover overheads. There was a £835,000 cash outflow from operating opportunities. There was £282,000 in cash, offset by debt of £1.69m. However, £380,000 was raised at 0.045p a share after the year end.
Pineapple Power Corporation (PNPL) is not going ahead with the proposed acquisition of cleantech investment company BVP Investments because they could not agree on the valuation.
Oxford Cannabinoid Technologies (OCTP) says it has the support of 46.5% of shareholders but the requisitioner of the general meeting wants it to go ahead. The meeting is likely to be held on 6 April.
Andrew Hore
Andrew Hore – Quoted Micro 27 December 2021
AQUIS STOCK EXCHANGE
All Things Considered Group (ATC) is a music artist management and services provider that branched out into live streaming events due to Covid-19. There was £4.13m raised at 153p a share, and the share price rose to 155p, valuing the company at £15m. In the six months to June 2021, revenues jumped from a sharply reduced figure of £1.39m to £5.04m, including £3.31m from live streamed events. ATC is loss making. The cash and valuation of the stake in livestreaming company Driift appear to provide an underpinning for the valuation, but there is a significant amount of accruals relating to unpaid performing rights fees on live streaming.
ChallengerX (CXS) was used as a holding company to acquire SportsX prior to joining the Access segment of Aquis. The core business is providing marketing services to rugby and football clubs. Smaller clubs need ways of generating additional income, so the services should be attractive to them. ChallengerX will earn income through revenue sharing agreements and by retaining a 10% to 30% reserve position in any club’s social tokens, that it will help the clubs to issue. ChallengerX raised £752,000 at 2p a share. The bid/offer spread at the end of the first day was 2p/3p and the mid-price was still 2.5p on Christmas Eve.
Fellow Aquis company Dispersion Holdings (DEFI) had invested £216,000 in SportsX in May, which was its first investment after flotation, and then swapped this stake for shares in ChallengerX that were worth £1.25m at the subscription price.
Good Energy (GOOD) says that November trading was in line with expectations. Domestic price tariffs were raised at the beginning of November, and this offset the lack of win generation during the month. Power prices continue to rise, though, and wind generation remains low, which means that 2021 profit will be £3m lower than expectations. Good Energy requires more cash for working capital because of the higher prices.
Rutherford Health (RUTH) intends to leave Aquis. A general meeting will be held on 11 January and if the shareholders are in agreement, then the company will cancel the quotation on 25 January. Rutherford Health has found it difficult to raise additional cash and does not want the distraction of being quoted.
CBD products supplier Voyager Life (VOY) has acquired Cannafull, a manufacturer of CBD skincare products, including under its own Ascend Skincare brand. Voyager Life paid the liquidator of the company £9,000 for the brands and assets.
Hydro Hotel Eastbourne (HYDP) is paying a 20p a share dividend to shareholders on the register on 31 December.
Tectonic Gold (TTAU) had £542,000 in the bank at the end of June 2021, although there are also borrowings of £322,000. The operating cash outflow was £210,000 with a further £401,000 spent on exploration during the year. The subsequent sale of Kazera Global shares raised more cash. A $275,000 tax refund relating to the Specimen Hill gold project is due to be received.
IamFire (FIRE) is subscribing £2m for WeShop Holdings Ltd convertibles and has the option to invest a further £2.5m. The conversion price is 75p a share and the shares trade on JP Jenkins. The social media retail platform will be fully launched in the first quarter of 2022.
Lombard Capital (LCAP) has sold its property in Preston for £2.075m. The total cost of the property was nearer £3m.
Love Hemp Group (LIFE) has allotted 65 million shares at 1.5p each in final deferred consideration for Love Hemp Ltd. Chief executive Tony Calamita has an 8.87% stake. A Love Hemp virtual store has been set up with Deliveroo.
Trading in Igraine (KING) shares recommence after its full year and interim figures were published. This period pre-dates the move into medical technology investment.
AIM
CT Automotive (CTA) is a supplier of interior components to the automotive sector and it already has a strong relationship with Nissan. The top three customers account for two-thirds of revenues. CT Automotive raised £33.6m at 147p a share and this will go towards reducing debt. The shares ended the week at 160p. Electronic component shortages have hit the second half of 2021, after a strong first half’s trading. Trading will be disrupted well into 2022.
Libertine Holdings (LIB) raised £9m at 20p a share to finance the opportunity to become an important part of the move towards vehicles being able to use cleaner fuels via its own powertrain technology can extend the range of battery-powered electric trucks. Large commercial vehicles are the main market, but there are other uses for the technology. The cash will be used to take on more commercial and development people, as fund further development of technology and facilities. The share price jumped to 37.5p by the end of the week.
York-based Aptamer Group provides contract research services with longer-term potential for royalties and licence revenues when the client uses the reagents in commercial applications. Three-quarters of the top 20 global pharma companies are clients. Raising £10.8m at 117p enables it to scale up its operations. In the 15 months to June 2021, Aptamer Group revenues were £1.6m and the loss was £2.91m. The share price ended the week at 136p.
Surveying and Corridor.ai analysis platform operator Cordel (CRDL) has won a 6.5 year contract with Network Rail that starts at the beginning of 2022. This is worth £500,000 a year and covers storing and processing of gauge and clearance information for the whole network.
Delivered ready meals company Parsley Box (LSE: MEAL) says that trading improved at the end of the year and supply problems are easing. Net cash is £2.2m, but significant cash outflows mean more money is required, possibly as much as £6m. A large discount to the market price may be required to raise that much.
Deepmatter Group (DMTR) managed to secure £2.55m of funding ahead of the Christmas break. It was at a heavily discounted 0.1p a share. Existing shareholders are being given the chance to invest at the same price via a one-for-3.7 open offer that could raise up to £250,000. The digital chemistry data company is still in discussions with South Korea-based drug discovery company Standigm Inc, but the deal will not be done this year, so 2021 revenues will be lower than the company’s previous expectations.
Anglo Asian Mining (AAZ) has taken a 19.9% stake in TSX Venture Exchange Libero Copper and Gold Corporation for $4.9m. This is the first step in the diversification outside of Azerbaijan. Libero has the option to acquire copper exploration properties in Colombia, Argentina and Canada.
Redx Pharma (REDX) will receive a $9m milestone payment following the start of a phase 1 trial of AZD5055, a porcupine inhibitor targeting fibrotic diseases. There are up to $360m of additional payments depending on successful development.
Primorus Investments (PRIM) says that investee company Alteration Earth will not be joining the standard list until 2022. The prospectus has been submitted for a second reading by the UKLA. Primorus invested £350,000 for five million shares in the shell. Primorus is electing to take Bushveld Minerals (BMN) shares in return for its Mustang Energy loan notes, because of ongoing litigation.
Lekoil Ltd (LEK) has formally rejected the 1.9p a share bid from Lekoil Nigeria. It points out that the offer does not take account of the potential cancelation of $350m of intercompany debt.
MAIN MARKET
Great Southern Copper (GSCU) has options over potential copper gold projects in northern Chile and news of a new left wing president in Chile hit the early trading in the shares on the standard list. Great Southern Copper raised £3.52m at 5p a share and ended the first day at 4.55p before recovering to 4.9p at the end of the week. The assets under option are the San Lorenzo copper gold project northeast of coastal town La Serena in northern Chile and the Especularita copper gold project, which is south of the other project. Initial exploration should help the company to understand the prospects in the two areas before spending a more significant amount of money.
House broker finncap still expects personal care products supplier Innovaderma (IDP) to make a small profit on the back of a recovery in revenues in the year to June 2022. Cash should be maintained at £2.3m.
Cash shell Hawkwing (HNG) wanted share trading to recommence after the proposed acquisition of ecommerce aggregator Internet Fusion Group. The FCA says that the £13.7m loan to Internet Fusion Group is a transaction under the definition of a reverse takeover so trading cannot recommence. Hawkwing is trying to unwind the loan.
Andrew Hore
Quoted Micro 29 November 2021
AQUIS STOCK EXCHANGE
Good Energy (GOOD) is selling its 47.5MW of renewable generation capacity and then reinvest the cash. The portfolio is valued at £56.8m, with £39.1m of related debt, and could be sold in the first quarter of 2022. Good Energy is investing in the latest funding round for Zap Map and the disposal cash may be received at around the same time. The company is investing in its decentralised energy services platform, and this will be rolled out next year. There will be further investments in these areas. Competition has fallen away in the domestic energy supply market and management believes that more normal conditions could return next spring. There will be £2.5m of additional costs to cope with the knock-on effect of higher prices and the exit of rivals. There is still a possibility of achieving full year expectations.
Oberon Investments (OBE) nearly trebled revenues in the first half with the growth coming from the broking business. In the six months to September 2021, revenues improved from £1.2m to £3.4m, while funds under management were £765m at the end of the period. Investment management fees doubled, but corporate finance income jumped from £89,000 to £1.56m. Oberon moved from a loss of £514,000 to a pre-tax profit of £128,000. New product launches should enhance growth in funds under management, while the broking side remains busy.
Non-fungible tokens (NFTs) investor NFT Investments (NFT) is investing $250,000 in Afterparty Inc, a platform where creators generate revenues from music events. This was set up by former Disney executive David Fields.
Eastinco Mining and Exploration (EM.P) plans to acquire battery metals explorer Aterian Resources and move to the standard list. There will be a ten-for-one share consolidation and the company’s name will change to Aterian. AIM-quoted Altus Strategies (ALS) will become a major shareholder. A fundraising has raised £850,000 from convertible loans and £100,000 from shares at 1.5p each, which is the conversion price of the convertible loans. Aterian Resources has a portfolio of 15 exploration projects.
Investment company Gunsynd (GUN) had net assets of £6.3m, including £1.07m of cash, at the end of July 2021. Investee company Low6 still intends to float.
KR1 (KR1) has contributed 350,000 Polkadot tokens to the Acala Network auction. It already has more than 10.2 million Acala tokens and more will be received after 96 weeks, when the Polkadot tokens will be returned. A further 350,000 Polkadot tokens were contributed in the auction of smart contract platform Moonbeam Network. Again, these will be locked up for 96 weeks and a undecided number of Moonbeam tokens will also be received.
Newly crowned Aquis company of the year DXS International (DXSP) reported a small dip in interim revenues from £1.72m to £1.62m, while pre-tax profit fell from £151,000 to £21,000. The second half is expected to be stronger, although additional costs will hold back profit. The healthcare IT provider continues to develop its cloud-based product and it is accelerating the development of products aimed at long-term conditions, such as diabetes.
Rogue Baron (SHNJ) is closing its Bin 1301 bar in Washington DC and concentrate on the bigger De Rhum Spot site.
Pioneer Media Holdings (PNER) is planning to acquire NGMI Labs Inc in return for four million shares. Pioneer has 45 days to undertake due diligence. NGMI was founded by three people with significant experience in the decentralised autonomous organisation (DAO) tokens sector.
Tectonic Gold (TTAU) expects to receive a tax rebate of $275,000 by the year end.
Yooma Wellness Inc (YOOM) has persuaded ASDA to stock 17 of its Vitality CBD products.
Scott Livingston has taken a 5.54%, not 5.16%, stake in Silverwood Brands (SLWD).
AIM
Marshall Motor Holdings (MMH) says that 64.4% shareholder Marshalls of Cambridge is thinking about selling its stake. Constellation Automotive has made it clear that it is interested.
Alien Metals (UFO) has acquired 30% of the Munni Munni project in Western Australia from ASX-listed Platina Resources for A$2.23m in shares and cash. This is one of the largest platinum group resources in Australia and it is near to the Elizabeth Hill project, which has platinum, silver, copper and nickel potential. Munni Munni has a historic non-compliant JORC resource estimate that suggests that there is 1.14 million ounces of palladium, 830,000 ounces of platinum, 152,000 ounces of gold and 76,000 ounces of rhodium. Artemis Resources owns the other 70%.
Telecoms billing and customer relationship management software provider Cerillion (CER) more than doubled its full year pre-tax profit from £3.7m to £8.5m, helped by much higher software revenues. New orders are building up and the order book is at record levels. The dividend was raised from 5.5p a share to 7.1p a share.
Driving safety technology developer Seeing Machines (SEE) has won its largest ever driver monitoring systems (DMS) order and raised £30.4m at 11p a share on the back of this announcement. The cash will be used for technology development and boost sales resources. The DMS deal, which has come through Magna International, is worth A$120m. In the year to June 2021, revenues improved from A$39.9m to $46.6m, while the loss was substantially reduced to A$16.7m.
Credit hire and legal services firm Anexo (ANX) has won a new contract with MCE Insurance to provide claims services for non-fault motorcycle accidents, which tends to be higher margin business. This will boost market share.
Appreciate (APPS) made the expected, although lower, loss in the first half, but the 50% increase in the interim dividend to 0.6p a share suggests confidence in the future. Revenues were 50% ahead at £41m with the faster growth coming in the consumer business even though the Christmas savings order book is lower. Appreciate has withdrawn from lower margin corporate business and there is volatility in bookings in recent months.
Asset management services provider MJ Hudson (MJH) achieved organic revenue growth of 14% and it is on course to grow full year revenues from £25.5m to £31m, helped by acquisitions, which would produce a pre-tax profit of £4m. Demand for ESG services is growing rapidly. On top of that, there is increasing outsourcing of the services provided by MJ Hudson.
Ashtead Technology (AT.) provides services and rents equipment to the offshore oil and gas and offshore wind markets. Services can be provided for installation, ongoing maintenance and decommissioning. It raised £15.5m at 162p a share to help it to grow internationally. The offshore wind services market is set to grow at 19% a year up until 2025. The shares ended the week at 162p.
Eneraqua Technologies (ETP) is well positioned to take advantage of the increasing focus on energy and water efficiency. It raised £12m at 277p a share and the shares ended the week at 285p. Eneraqua Technologies supplies and installs technology that improves energy and water efficiency in multiple occupancy social housing and commercial projects. The systems installed include the company’s Control Flow HL2024 technology, which will be manufactured in Spain. The order book for between August 2021 and January 2022 includes £22m of contracted revenues and there a further £21.3m of contracted revenues for the following two years.
Brickability (BRCK) is paying an initial £3.3m for HBS NE, which takes it into the renewable energy products market. It supplies and maintains solar, battery storage and electric vehicle charging. Brickability has relationships with housebuilders, which are being required to install EV charging points in new homes. Even before cross-selling, the deal is earnings enhancing.
Cyber security services provider Shearwater (SWG) reported a small decline in interim revenues due to lower services sales. Software revenues were flat, but margins improved. There is 50% visibility for second quarter revenues.
Treated sustainable wood producer Accsys Technologies (AXS) increased interim revenues by 31% in the first half. Accoya production remains limited because the new reactor will not go into service until next year. The Hull Tricoya plant will should commence production next July. The plans for the potential US Accoya plant are also progressing with a final investment decision expected in the next few months.
Omega Diagnostics (ODX) grew its health and nutrition revenues to pre-pandemic levels. Sales of the global health division also grew but Covid-19 test sales were disappointing. DAM Health has ordered £750,000 of tests since the end of the half year. Net cash was £3.9m at the end of September 2021. Omega remains loss making, and it is difficult to predict how quickly revenues will grow. There are some orders coming in for the VISITECT CD4 test.
Workflow technology provider ActiveOps (AOM) has improved gross margin and interim revenues grew by one-fifth. Annual recurring revenues are running at £19.8m.
MAIN MARKET
Packaging manufacturer and distributor Macfarlane (MACF) is trading ahead of expectations. Revenues are 25% higher than last year and the pre-tax profit is ahead of 2020. There are cost pressures and some customers have had supply problems elsewhere so their demand for packaging has reduced. Net debt was £2m at the end of October 2021.
BATM Advanced Communications (BVC) has announced a dividend of 0.74p a share.
JLEN Environmental (JLEN) is targeting a dividend of 6.8p a share in the year to March 2022. The interim dividend is more than covered by earnings. The portfolio of renewable energy and environmental assets has been diversified in recent years and that means that the company is not as dependent on revenues from wind power, which were hampered by low wind speeds in the period. Other assets performed well and there are plenty of investment opportunities in Europe. NAV is 98.4p a share.
Marine technology developer OTAQ (OTAQ) has secured a multi-year contract with Minnowtech. It will supply sonar technology for the jointly developed shrimp farming technology. Commercial launch is planned in Asia and the initial order will be more than $200,000. OTAQ owns 15.2% of Minnowtech. A major customer has given notice and OTAQ is seeking additional sources of funding.
Oxford Cannabinoid Technologies (OCTP) has signed an agreement with Dalriada Drug Discovery Inc of Canada, which will provide research and development services on compounds that Oxford Cannabinoid has access to via the Canopy Growth Corporation agreement.
Andrew Hore
Quoted Micro 22 November 2021
AQUIS STOCK EXCHANGE
Globe Capital (GCAP) has reported its 2020 and latest interim results and undergone board changes. Simon Grant-Rennick becomes executive chairman and Burns Singh Tennent-Bhohi an executive director. They are advancing £100,000 via a convertible, which will convert at 0.04p a share following the upcoming AGM. More cash will be raised, and a new corporate strategy announced. There was £23,000 in the bank at the end of June 2021. There were net liabilities. Peterhouse has been appointed as corporate adviser.
Voyager Life (VOY) interim revenues were £59,000 and it remains loss making. There was £1.74m in cash at the middle of November 2021 and monthly overheads are below £50,000. The CBD products supplier is getting its products stocked in retailers and has opened its third store.
Helium Ventures (HEV) has made its maiden investment in Blue Star Helium, which has the Voyager prospect at Las Animas County Colorado. There are indications that it could have one of the highest helium concentrations in the US. A maiden well could be drilled in December.
Sativa Wellness Inc (SWEL) is offering a range of blood tests through 40 Superdrug sites.
Tectonic Gold (TTAU) has completed the Specimen Hill drilling campaign. Initial results for Goldsmith’s Reef, which was mined 100 years ago, has had some positive drilling results and there are more results to come. This will help to secure a partner.
Wishbone Gold (WSBN) is preparing to drill at Red Setter in Western Australia. Four high priority zones have been identified. Wishbone raised £126,000 at 14p a share.
EPE Special Opportunities Ltd (ESO) plans to issue up to 25 million zero dividend preference shares at 100p each.
Pioneer Media Holdings Inc (PNER) has raised C$1.1m at C$1 per unit (one share and one warrant exercisable at C$1.50). Investee company Leaf Mobile Inc is raising cash ahead of a proposed standard listing.
IamFire (FIRE) has an option to subscribe up to $4.5m into convertible loan notes of former Aquis company Boanerges. They convert into shares at 75p each.
Coinsilium Group Ltd (COIN) sold 4.58 million treasury shares at 10p each to raise £458,000.
Omni Egis (OMNI) is leaving Aquis on 24 November.
Scott Livingston has taken a 5.16% stake in Silverwood Brands (SLWD).
AIM
Acoustic and thermal insulation material manufacturer Autins Group (AUTG) has raised £3m at 20p a share, which was a significant discount to the market price. The cash will be used to develop the Neptune acoustic material manufacturing facilities and in product development for electric vehicles.
Steel structures supplier Billington (BILN) has been hit by short-term delays to contracts, which has knocked £3.5m off forecast 2021 revenues. That has led to a halving of the 2021 forecast pre-tax profit to £1.1m. The order book is still strong.
Microbiome-based products developer Optibiotix Health (OPTI) has sold 3.64 million shares in SkinBioTerapeutics (SBTX) at 55p each and raised £2m. Optibiotix still owns 20.7% of the company and that stake is valued at £18m.
Managed IT and networking services provider AdEPT Technology (ADT) increased interim revenues by one-fifth to £34.3m. Underlying pre-tax profit was 16% higher at £3.5m and earnings per share were 30% ahead at 13.2p due to a lower tax charge. Net debt was £31.2m at the end of September 2021, which was after spending £9m on acquiring Datrix.
Ilika (IKA) says that its Stereax and Goliath battery technologies remain on track. Commercial revenues from the smaller Stereax batteries should commence in 2022. Once lithium-ion equivalence is achieved Ilika will seek a partner for Goliath.
Health services provider Totally (TLY) had a strong interim period as insourcing and planned care revenues improved. Organic revenue growth was 14%, while the underlying pre-tax profit was £2.1m. There was £18.3m in cash at the end of September 2021, which provides plenty of fire power for making acquisitions in the out of hospital care sector. The urgent care business has been winning contracts and extensions to existing ones. Full year pre-tax profit could improve from £2.5m to £4.1m with more growth to come from the existing operations as demand returns to more normal levels.
Arden has updated its forecast for Dekel Agri-Vision (DKL) due to shipping delays holding up the start of production at the cashew plant. Palm oil production and revenues continue to grow. This means that the company will not make a pre-tax profit in 2021, but it should still make a substantial 2022 profit.
Trakm8 (TRAK) has not done well in recent years but the latest statement from the telemetry equipment and services provider has sparked an upgrade. The company should breakeven this year and make a significant profit in 2022-23.
MAIN MARKET
Technology-focused shell Red Capital (REDC) raised £4m at 10p a share and after expenses it has total cash of £725,000. The shares certainly jumped when trading commenced and closed at 25.5p. This is the latest vehicle floated by Marwyn Capital founder David Williams.
PYX Resources Ltd (PYX) was already quoted on the NSX in Australia before joining the standard list. PYX is in a strong position as the second largest resources of zircon in the world with zircon prices increasing and demand remaining strong. It has two mineral sands projects in Central Kalimantan in Indonesia with one already in production. No new money was raised. Trading started at 94p a share and ended the week at 92.8p a share. There was solid trading in the shares all week.
Technology Minerals (TM1) was set up as investment company after Stranger Holdings (STPH) decided not to proceed with the acquisition of Technology Minerals and related assets. It has acquired these assets and is building a business that covers the battery cycle from exploration and mining to recycling. The main focus is on the Emperium project in Idaho, where £100,000 will be spent over up to 18 months. The company raised £1.5m at 2.25p a share and issued 786.2 million shares to acquire the assets. The share price opened at 2.6p and ended the first day at 3.25p. It ended the week at 3.5875p.
A general meeting has been requisitioned at East Imperial (EISB) by Andrew Regan of Corvus Capital. He wants to remove two directors and replace them with his picks. The board criticises the experience of his choices.
Andrew Hore
Quoted Micro 4 October 2021
AQUIS STOCK EXCHANGE
Wine maker Chapel Down Group (CDGP) increased interim revenues by 35% to £8.11m, which included £287,000 from the brewing business, which has been sold. Chapel Down moved from loss to profit in the first half. Underlying pre-tax profit was £459,000, helped by £73,000 of government grant income. Wine volumes increased by 66%. Pro forma net cash is £6m, following the recent fundraising.
Digital assets investor KR1 (KR1) reported an NAV of 80.3p a share at the end of June 2021, up from 29p a share at the end of 2020. There was a £69.5m gain on intangible and financial assets.
Property investor Ace Liberty and Stone (ALSP) returned to profit in the year to April 2021. The value of the portfolio was 3% higher at £89.9m. A loss of £742,000 was turned into a pre-tax profit of £1.39m. Contracts have been exchanged for the purchase of a property in Stafford for £1.26m, where the annual rent is £95,000. The sale of properties in Leeds and Dudley are due to complete.
Tectonic Gold (TTAU) has sold a 60% stake in Whale Head Minerals to AIM-quoted Kazera Global Investments (KZG) in return for 13.5 million shares, which have been assigned to Consolidated Minerals to settle a A$279,732 loan. Tectonic retains a non-diluting 10% interest in Whale Head Minerals.
Coinsilium (COIN) made a pre-tax profit of £333,000 in the first half of 2021. A net fair value gain on unlisted investments of £793,000 was offset by a £148,000 investment write-down. There was a £136,000 cash outflow from operating activities.
NFT Investments (NFT) had net cash of £29.3m at the end of June 2021. So far, two investments have been made, including one after June. Management admits that the digital asset investment sector has been volatile and NFT is being highly selective.
Cancer treatment company Rutherford Health (RUTH) has increased its full year revenues from £5.6m to £7.3m. The operating loss increased from £25.7m to £31.1m. Additional investment has been obtained since the end of February 2021.
Incanthera (INC) has frilled two trademark names for its Sol skin cancer formulation. They are ACTINOMOD AND ACTINODERM.
Arbuthnot Banking (ARBB) has sold a further 220,000 shares in Secure Trust, raising £2.5m. Arbuthnot retains 399,538 shares in Secure Trust.
Adnams (ADB) director Guy Heald has acquired 3,000 B shares from Sidney Sussex College, Cambridge at £92.86 each. His B shares stake has increased to 17.15%.
S-Ventures (SVEN) has appointed VSA Capital as corporate adviser.
Block Commodities has been withdrawn from Aquis after a six-month trading suspension.
AIM
Frontier IP (FIPP) investee company Exscientia has joined the Nasdaq Global Select Market after a $304.7m offer at $22 per ADS, which values the pharmatech company at $2.6bn. The ADSs ended at $27.10 each on the first day of trading on 1 October. The closing price values the Frontier IP stake at £31.3m. Oxford-based Exscientia is a spin-out from the University of Dundee and uses artificial intelligence to help drug discovery.
Broker Peel Hunt (PEEL) has returned to AIM two decades after its original flotation, which ended with a takeover by Belgian bank KBC. A placing at 228p a share raised £40m for the company and valued it at £280m. Existing shareholders also raised £72m The share price ended the week at 231.3p. In the year to March 2021, Peel Hunt Ltd revenues more than doubled from £95.5m to £196.9m, while pre-tax profit jumped from £34.2m to £120.1m. That reflects another bumper trading period. Because of the reorganisation of the group, the illustrative, adjusted pre-tax profit is £73.6m, up from £19.4m. Revenues for the five months to August 2021 fell from £82.5m to £63.3m.
GreenRoc Mining (GROC) has acquired the Greenland mining assets of Alba Mineral Resources (ALBA) in return for shares equivalent to 54% of the newly floated company. The Amitsoq graphite project has graphite suitable for using in the manufacture of lithium-ion batteries and the Thule Black Sands project in north west Greenland appears to be a continuation of the Dundas mineral sands project being developed by AIM-quoted Bluejay Mining (JAY). GreenRoc raised £4.25m after expenses at 10p a share. The share price has slipped back to 9.35p.
Made Tech Group (MTEC) is a rapidly growing provider of digital transformation services to the UK public sector, including healthcare and defence. It raised £15m at 122p a share when it joined AIM at the end of September. Over the past three years annual revenues have grown at a compound rate of 89% and this growth has been financed without seeking shareholder investment. In the year to May 2021, revenues were £13.3m.
Delivered ready meals company Parsley Box (MEAL) has been hit by supply problems. The available stock is 50% of planned levels, due to staffing and logistics problems at food producers, and Parsley Box has built up its cost base in anticipation of growth. It is set to continue to make losses until the supply problems ease, even though marketing spend will be cut.
Antimicrobial technology developer Byotrol (BYOT) has sold the American rights to the Byotrol24 surface spray to its Americas licensee Integrated Resources Inc for $1.4m (£1m). Byotrol retains the rights outside of the Americas.
Northbridge Industrial Services (NBI) is growing the core loadbanks manufacturer Crestchic and the disposal of the Tasman oil and gas tools business, assuming it happens, will end the associated loss and pay off debt. Group revenues were 22% higher at £19.6m, while operating profit quadrupled to £1.6m. Net debt has fallen from £6.8m to £4.5m. A pre-tax profit of £2.83m is forecast for 2021. The construction of a new Crestchic factory has commenced.
Acquisitions and strong organic growth enabled pharma services software supplier Instem (INS) to increase interim revenues by 41% to £19.8m. Demand for the company’s software is being driven by increased life sciences investment. Instem is on course to increase full year pre-tax profit from £4m to £5.2m.
Cyber security firm Osirium Technologies (OSI) signed up 31 new customers in the first half. It was particularly successful in winning NHS Trusts. Average contract values were lower, but sales bookings were 19% higher. Interim revenues increase by 5% to £740,000, while deferred income was 17% ahead. Partners are being signed up to help with international growth. Full year revenues are expected to be 12% higher at £1.6m, but Osirium will continue to lose money due to continued investment.
Digital TV software technology developer Mirada (MIRA) has changed its strategy and employing resellers. The local presence should enable Mirada to build up its international revenues. Covid-19 hampered deployments and slowed investment decisions. Interim revenues declined by 15% to $11.1m. This is despite the growth in deployments of Mirada’s android TV technology for izzi Telecom, which is the company’s largest customer.
1Spatial (SPA) continues to win new contracts and annualised recurring revenues have increased by 12%. The latest contract for a UK government department is worth £8m.
Data erasure and mobile diagnostics services provider Blancco Technology (BLTG) reported operating 2020-21 profit slightly ahead of expectations. Investec is maintaining its 2021-22 pre-tax profit forecast of £5.4m, up from £5m.
Polymers developer Itaconix (ITX) is still loss making, but interim revenues improved 26% to $1.37m. It has a pipeline of potential deals that could generate revenues that are many times higher than that.
MAIN MARKET
S and U (SUS) reported better than expected interims. Revenues were flat at £42.8m, but the core car finance business is recovering. The loan loss provision was cut from £21.4m to £4.9m. Car finance receivables were slightly higher at the end of the six-month period at £248.8m, even though credit criteria has been toughened. Pre-tax profit more than trebled to £19.9m. This includes an improvement in the profit of the Aspen bridging loan business from £100,000 to £1.5m. The interim dividend is 50% higher at 33p a share. Edison has upgraded the 2021-22 S and U pre-tax profit forecast to £38.7m.
Anglo African Agriculture (AAAP) says that the proposed reverse takeover of Kenya-based Comarco. The loan to the company plus interest, totalling $1.5m, should be repaid by the end of October. The original loan was made in November 2018 and is secured on a company with 4.74 acres of land at Mombassa.
Aircraft lessor Avation (AVAP) reported a $70.1m loss for the year to June 2021 and it is expected to make a much smaller loss this year. Avation has a fleet of 44 aircraft. The company’s cash pile should build up when underutilised aircraft are sold.
Bay Capital (BAY) is a newly floated shell set up by two highly experienced small company directors, Peter Tom and David Williams. It raised £4m at 10p a share and has pro forma cash of £6.64m, which is equivalent to 9.5p a share. The share price ended the week at 18.4p. Acceler8 Investments (AC8) is another recently floated shell where David Williams is a director.
Roquefort Investments (ROQ) is paying £1m in cash and shares for Lyramid, which has a worldwide licence to commercialise patents related to Midkine-based therapies for cancer, kidney disease, autoimmune disorders and Covid-19. Roquefort plans to raise up to £3m. Trading in the shares has been suspended until a reverse takeover prospectus has been published.
Hygiene and protection technologies developer HeiQ (HEIQ) published lower interim revenues because the comparative figures were boosted by Covid-19 demand. Full year revenues are likely to be flat at around $50m, while pre-tax profit would decline from $7m to $3.7m due to a lower gross margin and higher overheads.
Andrew Hore
Andrew Hore – Quoted Micro 19 July 2021
AQUIS STOCK EXCHANGE
Good Energy (LON: GOOD) has rejected the bid from rival renewable energy supplier Ecotricity. It believes that the indicative offer of 340p a share in cash is too low even though it is a premium to the previous market price. Management believes that it has a clear strategy for the company. The focus is energy as a service and mobility as a service, particularly through Zap Map. A new tariff, called Green Driver, has been launched offering a choice of off-peak electric vehicle charging periods. The potential bid values Good Energy at nearly £57m. However, Ecotricity already owns 25.06% of Good Energy.
Voyager Life (VOY) has secured a preferred supply deal for its CBD and hemp oil products with independent pharmacy group Inphaserve, which supplies more than 30 independent pharmacies in England and Scotland.
Rogue Baron (SHNJ) reports another record month for its Bin 1301 bar. Sales were $95,000 in June, which is one-third higher than any pre-Covid month.
SulNOx Group (SNOX) has raised £2.59m at 30p a share. The cash will be used to build up the sales capability and finance the hiring of additional management and staff. There will also be further investment in R&D. There are 58 ongoing trials for its emission reduction product.
Hydro Hotel Eastbourne (HYDP) generated interim revenues of £186,000, but it lost £383,000. The hotel has been trading for a limited time in the six months to April 2021. Refurbishment of bathrooms was undertaken during the period. The hotel will fully re-open on 19 July.
Tectonic Gold (TTAU) has reached an agreement with White Prospecting to set up a joint venture to mine gold at the Mount Cassidy project. Tectonic will get a 7.5% gross production royalty. This deal will enable Tectonic to concentrate on Specimen Hill.
BWA Group (BWAP) reports positive sampling results at the 90%-owned Dehane rutile sands project. It is still early days, but the elevated levels of rare earths is a good sign.
Evrima (EVA) had £164,000 in the bank at the end of 2020, while the NAV was £461,000.
Chapel Down Group (CDGP) raised £6.88m at 59.5p a share, which includes £5.45m raised via crowdfunding. NQ Minerals (NQMI) has raised £35,000 at 7p a share. All Star Minerals (ASMO) has raised £257,000 at 0.02p a share and converted £54,000 of liabilities into shares. Ananda Developments (ANA) has raised £350,000 from an issue of convertible loan notes, with a conversion price of 1p a share, and a further £200,000 is committed by investors.
AIM
Building materials sector consolidator SigmaRoc (LSRC) acquiring Finland-based limestone supplier Nordkalk acquired for £402m, including debt. SigmaRoc has raised £260m in a placing at 85p a share, while a retail offer raised £1.6m. A new bank facility will help to fund the deal and £43m of shares will be issued to Rettig Group.
Energy efficiency as a service provider eEnergy Group (EAAS) has trebled full year estimated revenues to £13.5m. Organic growth was 75% and there was a small pre-tax profit. The smart metering service has been rebranded as MyZeRO and the first combined LightAsAService and smart metering contract has been won. Short-term profit growth is being sacrificed for longer-term growth.
Solid State (SOLI) marginally beat previously upgraded expectations for its figures for the year to March 2021. Revenues dipped slightly to £66.3m, but underlying pre-tax profit was 15% ahead at £5.4m following a reduction in overheads. The total dividend was 16p a share. Computing and communications products did well, but there was a decline in power products revenues. Acquisitions made a small contribution.
Glantus (GLAN) has made its first acquisition since joining AIM, but the software company still remains at a discount to its placing price. The $9.3m acquisition of Technology Insight Corporation led to an earnings up grade for 2022 from 6.4 cents a share to 7.1 cents a share.
Iodine producer Iofina (IOF) says iodine prices are back to pre-pandemic levels at $35-$37/kg. First half production is in line with guidance at 249.4Mt.
Kromek (KMK) had a better second half of the year to April 2021. Manufacturing had been closed in the first half and revenues improved. Full year revenues still fell from £13.1m to £10.4m. There is already 75% visibility over this year’s forecast revenues of £15m. Biodetection equipment for Covid-19 and other airborne viruses will provide a new market for the company. The medical imaging market is recovering.
ULS Technology (ULS) continues to invest in its DigitalMove platform, and it has net cash of £24m to complete its development. More services will be offered on the platform. Conveyancing completions fell last year and revenues declined 18% to £16.9m.
Zoo Digital (ZOO) moved into profit in the year to March 2021. A pre-tax profit of $900,000 was made on revenues of $39.5m with further improvements in profit expected in the next two years. Demand is increasing from subtitling and dubbing services for TV and film back catalogues and Zoo is also adding additional services. Zoo is extending its geographic reach in line with demand from customers.
Chains and transmissions manufacturer Renold (RNO) reported a 13% dip in revenues last year, but underlying pre-tax profit improved by one-fifth to £5.9m – that was due to £2.4m of restructuring costs the year before. Net debt was reduced to £18.4m. The cost base has been cut and efficiency improved through capital investment in facilities. In July, a £11m military contract was won by the torque transmission business.
Personal protection and insurance products provider CPP Group (CPP) says that trading in India has recovered in the past few weeks, but there had been a sharp reduction activity in April and May. The back books continue to generate revenues, although they are declining. Overall trading is in line with expectations.
MAIN MARKET
Standard list shell Hawkwing (HNG) has agreed to acquire ecommerce aggregator Internet Fusion Group, which owns nine speciality retail businesses. It has developed the Reactor platform which brings together retail businesses and brands. Trading in the shares has been suspended.
LED lighting and wiring accessories supplier Luceco (LUCE) has continued to improve its performance in the first half. Interim revenues are expected to be £108m and underlying operating profit of £19m. The second half will be even stronger. Luceco expects full year revenues to be at least one-quarter higher at £220m and underlying operating profit 30% ahead at £39m.
Maternity wear retailer Seraphine Group (BUMP) raised £61m at 295p when it joined the premium list last Friday. The cash will be used to pay off loans and finance growth. The share price started conditional dealings earlier in the week at 305p and subsequently fell back, opening at 280.05p when dealings were unconditional. The share price ended the day at 279.4p
HeiQ (HEIQ) has signed a collaboration agreement with LYCRA and the first product should be launched by the autumn. This will combine freshness and antiviral benefits with LYCRA stretch fabrics.
Nuformix (NFX) expects to develop a phase 1-ready formulation of its NXP002 inhaled treatment for idiopathic pulmonary fibrosis in the next 18 months. This could be a time to seek a partner.
Andrew Hore
Andrew Hore – Quoted Micro 28 June 2021
AQUIS STOCK EXCHANGE
Good Energy (GOOD) says it is perming better this year than in the same period last year which included the start of the lockdown. Forward buying has improved margins. The smart meter rollout is accelerating.
Dispersion Holdings (DEFI) has invested C$200,000 at 18 cents a share in Defi Yield Technologies Inc. This gives it a 3.5% shareholding in the company that is developing a platform for decentralised financial services.
Altona Rare Earths (ANR) has raised £178,000 at 12p a share, which was a premium to the market price. Altona subsequently acquired up to 70% of the Monte Muambe rare earths project. It will take a 1% stake on signing the deal and increase it to 20% in phase 1 when £40,000 in cash is paid and one million shares are issued. In order to take a 70% stake a total of £240,000 in cash will be paid and three million Altona shares have to be issued. On top of this there are minimum expenditure commitments over three phases of the project.
Rogue Baron (SHNJ) says its bar in Washington DC increased sales by 38% to $225,000 in the three months to May 2021 even though capacity has halved. Trading in the shares has started on OTCQB.
Tectonic Gold (TTAU) is preparing to drill the Specimen Hill project in Queensland. There have been positive results from sampling and the structural modelling of the site has been completed.
Capital for Colleagues (CFCP) had net assets of 64.06p a share at the end of May 2021. It sold his investment in Anthesis Consulting for £1.15m during the period. There was cash of £2.65m at the end of May 2021.
DiscovOre (ORE) is changing its name to Oscillate. and it will focus on the medical psychedelic industry. This includes treatments for drug-resistant depression, anxiety, addiction and post-traumatic stress disorder.
Ananda Developments (ANA) expects to begin construction of a research facility in July. Strains of medicinal cannabis have been selected for research. Liberty Herbal Technologies has received a US patent for its vaping device.
CBD products supplier Sativa Wellness Group Inc (SWEL) has opened its 40th testing clinic for travellers and has introduced blood testing for Covid-19 immune response through some clinics. The clinics will be listed on the NHS Patient Access service.
Valereum Blockchain (VLRM) has raised £1m at 70p a share.
Virgata Services has extended its offer for Walls & Futures REIT (WAFR).
Tim and Charlotte Syder have increased their stake in Newbury Racecourse (NYR) from 4.5% to 8.7% and they appear to have been bought from Andy and Judith Stewart.
AIM
Printed circuit technology developer and supplier Trackwise Designs (TWD) has disappointed the market due to electric vehicle contract delays. Interim revenues more than doubled from £2.91m to £6.07m thanks to the initial contribution from Stevenage Circuits. A pre-tax profit of £200,000 in 2019 was turned into a loss of £400,000. There is currently net cash of £2.87m. The new factory should open later in the year.
Demand for Accoya wood continues to be strong, but Accsys Technologies (AXS) will not be able to increase production capacity until a new reactor is installed in the Netherlands later in the year to March 2022. In 2020-21, Accsys moved into profit and cash generation improved. A decision is awaited about how Accsys will make progress with the Hull Tricoya plant, where the contractor has resigned. Cash was raised in May to finance the US joint venture, but more cash may be required.
First Property (FPO) had to reduce the valuations of its owned Polish properties last year and that hit net assets. Management says that some of that valuation reduction should be reversed following a restructuring of the finance lease on one of the properties. NAV fell 22% to 42.8p a share at the end of March 2021 and it could improve to 48.8p next March. Loan to value is 45.3%. There is no final dividend.
In 2020, Dekel Agri-Vision (DKL) reported revenues of €22.5m and a reduced loss. The palm oil supplier will benefit from the higher palm oil price this year, enabling it to move into profit. The cashew plant will also make a contribution.
Musical instruments retailer Gear4Music (G4M) performed strongly last year, and revenues improved from £120.3m to £157.5m, while pre-tax profit jumped from £3.1m to £14.6m. This year will be tough, though. Pre-tax profit is forecast to fall back to £7.5m even though current trading is better than expected. The company has started buying existing brands. Premier is a drums brand and Eden is a bass amp supplier. Further acquisitions are likely.
Packaging manufacturer Robinson (RBN) says that revenues in the first five months of 2021 are 17% ahead of the same time last year. This is mainly due to an initial contribution from the Schela acquisition and passing on raw material costs – volumes are 1% ahead.
Jade Road Investments (JADE) had a net asset value of 67p a share at the end of 2020. There was an improved valuation of quarry company Future Metal Holdings. The three-year mining licence has been renewed and an independent assessment of the business will be published later this year.
Tristel (TSTL) has gained approval for foam-based surface disinfectant Jet from the EPA in the US. This will enable approvals to be sought with individual states. Tristel Duo, the disinfectant for ultrasound devices, has been approved in Canada and South Korea.
Vector Capital (VCAP) has raised £1.5m at 47p a share and this will be used for marketing and increasing the loan book. The cash raised at the end of 2020 has been deployed.
Location Sciences (LSAI) has given 12 months notice to its chief executive and finance director. They are continuing to work in the business.
MAIN MARKET
Nottinghamshire-based construction and infrastructure services provider NMCN (NMCN) has secured a highly dilutive rescue fundraising after falling into financial difficulties The company continues to lose money and the terms reflect the dire financial position. A £14m subscription is proposed, with a up to £5m more to come from an open offer. There is also a £10m convertible bridging loan – convertible at 20p a share and with fees and interest it equates to 62.4 million shares. Svella, which is run by former Stobart boss Andrew Tinkler, will subscribe for up to £7.4m of the subscription shares and provide the loan.
Fasteners supplier Trifast (TRI) reported slightly better than expected 2020-21 figures. Industrial activity is recovering. This year pre-tax profit is expected to improve from £11m to £12.9m.
Tirupati Graphite (TGR) has increased sales of its graphite products CarboflameX and GrafEN 45545 with trial and sample orders received. Land has been secured for a dedicated product development facility.
Cizzle Biotechnology (CIZ) has signed a deal to develop a companion diagnostic with St George Street Capital for certain of its potential autoimmune treatment assets that it has licensed. This deal takes Cizzle into a new area, but lung cancer remains the focus.
Zegona Communications (ZEG) is paying an interim divided of 2.6p a share. That is based on the dividend from Euskaltel and does not reflect the proceeds from the telecoms company’s takeover.
Andrew Hore
Andrew Hore – Quoted Micro 12 April 2021
AQUIS STOCK EXCHANGE
Virgata Services is making a 50p a share cash offer for Walls & Futures REIT (WAFR) and that is a 52% discount to net assets at the end of September 2020. It is a premium to the market price prior to the announcement, but management recommends shareholders take no action. The bid values Walls & Futures REIT at £1.9m. Six shareholders own more than 80% of the company. Roy Nominees holds 33.2% and Standard Life Trustee Co Ltd holds 22.9%. Virgata is owned by the family office of the Goetstouwers family, and it has a property portfolio worth €80m, plus stakes in developments in the Netherlands. All the interests are outside of the UK.
Love Hemp (LIFE) plans to move to the Main Market later this year and has raised £5m at 3.5p a share. The cash will finance a global market campaign for its CBD and hemp products.
Sativa Wellness Inc (SWEL) has raised C$3.6m from the first tranche of its private placement. Sativa is offering two and eight day quarantine tests for travellers returning to the UK.
Good Energy (GOOD) is appointing Nigel Pocklington as chief executive. He is the former chief commercial director at Moneysupermarket.com. He starts on 1 May. Good Energy is making a further £1m investment, via a convertible, in electric vehicle mapping services provider Zap-Map’s parent company Next Green Car. Good Energy already owns 50.1% of Next Green Car. Zap-Map covers more than 95% of the UK public electric vehicle charging points.
KR1 (KR1) has invested a further $150,000 in Moonbeam Network for 30,000 GLMR tokens, taking the total owned to 130,000 tokens.
On 6 April, Coinsilium (COIN) $3.13m of cryptocurrency and tokens, up from $1.98m two months earlier.
Gunsynd (GUN) says that investee company Low 6 is on course to float in the second quarter of 2021. The B2B pool betting firm has 122,000 users.
Clean Invest Africa (CIA) has signed a memorandum of understanding Exagogi for the development of opportunities in India for CoalTech. India has high stockpiles of coal fines waste, which CoalTech can clean-up.
A general meeting has been requisitioned by shareholders at Early Equity (EEQP).
Evrensel Capital Partners has not subscribed the £250,000 for shares in Truspine Technologies (TSP) that it promised last September. TruSpine has raised £35,000 at 10p a share, taking the total raised in the latest fundraising to £620,500.
Tectonic Gold (TTAU) has raised £634,000 following the exercise of warrants at 0.7p each. Tectonic has raised A$215,000 from selling part of its holding in VOX Royalty Corp.
EPE Special Opportunities (ESO) had a nav of 448.15p a share at the end of March 2021.
Chris Akers has reduced his stake in Quetzal Capital (QTZ) from 17.2% to 12.3%.
Gowin New Energy (GWIN) has appointed Novum Securities as corporate adviser and trading in the shares has recommenced.
AIM
Minds + Machines (LSE: MMX) is selling its business and assets to GoDaddy for $120m (£87m) and this is equivalent to 8.8p a share, after transaction costs. ICANN needs to provide approval for the transfer of the top level domains. The company will become a shell.
Mobile phone and technology recycler and reseller musicMagpie could have an enterprise value of between £180m and £220m when it plans to join AIM later in April. The company buys and resells smartphones, computers, CDs, DVDs, books and other products that might have ended up in landfill. The market for pre-owned technology and media is estimated to be growing at 10% a year. In the year to November 2020, revenues were £153.4m and EBITDA was £13.9m.
Demand remains strong from the rail sector for software and consultancy services from Tracsis (TRCS), although the data and events businesses had a tougher time. Interim profit declined in the first half. finnCap forecasts a recovery in full year pre-tax profit from £8.3m to £9.1m, before a much larger increase in 2021-22 assuming trading is nearer to past levels. The Williams rail review is due to be published and this could provide additional opportunities for Tracsis.
International payment services provider Equals (EQLS) increased business revenues in 2020, but a slump in consumer revenues due to the lack of travel. Total revenues were 4% ahead at £29m and Equals made a small profit. In the first quarter of 2021, revenues were flat at £8m and again this masks business growth, plus the comparatives were strong in this period. Canaccord Genuity has upgraded its 2021 pre-tax profit forecast from £3.8m to £4.2m.
FIH Group (FIH) lost money in the UK last year, but this was more than offset by profits in the Falklands. The art distribution and Portsmouth Ferry operations were hit by Covid-19 lockdowns.
Oil palm plantation operator Dekel Agri-Vision (DKL) produced 71,500MT in the first quarter. Crude palm oil sales were 27% higher at 13,921MT and average realised prices are one-fifth higher. Dekel is on course to make a pre-tax profit in 2021.
Arena Events (ARE) has been successful in its bid for the business and assets of Aztec Schaffer. Arena will pay $3.35m for a 50% stake in a new joint venture owner of the assets and there will be a debt financing package of $18.25m.
MAIN MARKET
Sales of new and used cars by Lookers (LOOK) fell by 10% last year. However, it appears to have gained market share in new cars. Peel Hunt has increased its 2021 pre-tax profit forecast by £11m to £34.8m.
Stranger Holdings (STHP) has signed heads of terms to acquire Technology Minerals, which itself is involved in acquisitions of businesses producing battery raw materials and recycling batteries. These include Recyclus Group, which Stranger has previously considered buying. League of Angels founder Barney Battles has been appointed as a non-executive director.
Caerus Mineral Resources (CMRS) is acquiring PR Ploutonic Resources. This includes the Troulli, Kokkinapetra and St Nicholas copper and gold licences. Caerus is paying £750,000 in shares.
Argo Blockchain (ARB) says March revenues were at a record level of £6.57m. This reflects the installation of additional equipment and a higher bitcoin price.
Tirupati Graphite (TGR) achieved record graphite production in the first quarter of 2021. Work continues on increasing capacity at the Sahamamy project in Madagascar.
Anemoi International (AMOI) has raised £240,000 at 4p per depositary interest.
Andrew Hore
Andrew Hore – Quoted Micro 6 April 2021
AQUIS STOCK EXCHANGE
Good Energy (GOOD) says that customer numbers have remained stable since September. The 2020 figures will be published on 13 April. There was £18.1m in the bank at the end of 2020. Good has restructured its two renewable generation debts into one debt facility of £39.8m.
Arbuthnot Banking Group (ARBB) has completed the acquisition of vehicle finance provider Asset Alliance Group for £10.1m, which is 50% of the estimated fair value of £20.2m. Arbuthnot raised £8.6m by selling shares in Secure Trust, in which it retains a 5.74% stake.
Greencare Capital (GRE) is investing £100,000 in Clearly Supplements in the form of a 5% convertible loan. The conversion price is a 30% discount to a listing price. Clearly has developed a range of products and is establishing distribution in Asia.
Gunsynd (GUN) has sold three million shares in Rogue Baron (SHNJ) and raised £120,000. Gunsynd still owns 25% of the spirits brands developer and Chris Akers has taken a 3.48% stake. It also has £111,464 of convertible loan notes in Rogue Baron.
TruSpine Technologies (TSP) has raised £585,000 at 10p a share with each share coming with a warrant exercisable at 15p a share. A further £165,000 may be raised. The cash will fund the FDA application and commercial launch for Cervi-LOK.
Interim revenues of Love Hemp Group (LIFE) jumped from £426,000 to £2.38m. There was a loss of £962,000. There was net cash of £79,000 at the end of 2020. The company is moving into new facilities in south London in the middle of this year. Capacity will increase to 500,000 units of cannabidiol CBD products each month.
Tectonic Gold (TTAU) did not generate any revenues in the six months to December 2020. There was a £60,000 loss, although cash used in operating activities was £141,000.
Altona Rare Earths (ANR) can acquire a 71% interest in the owner of the Nankoma rare earths project in Uganda. There is an option to acquire a 51% stake for £1 by the end of June. The option fee is £25,000 in cash and 250,000 ordinary shares. The stake can be increased to 71% by the issue of £15,000 worth of shares.
S-Ventures (SVEN) has reported figures for the period from its formation on 6 July 2020 to the end of January 2021. There was a £60,000 cash outflow from operations and the company made two investments with another one made since January.
Optiva Securities has been approved as a corporate adviser.
AIM
Parsley Box (MEAL) has got off to a disappointing start on AIM after raising £5m at 200p a share. The shares ended the first day of trading at 185p, before recovering to 187.5p. Parsley Box has a strong brand position in its market niche and Covid-19 lockdowns have helped it to grow its customer base. The company has a range of more than 60 single portion meals, that can be stored in a cupboard and do not have to put in a fridge or freezer. Parsley Box makes more than 900,000 deliveries per month and demand has increased due to Covid-19. There are more than 500,000 registered users and 154,000 of these active customers at the beginning of this year.
ActiveOps (AOM) is a supplier of management process automation software and it got off to a good start after it floated on AIM. The share price has risen from the placing price of 168p to 190p. No new money was raised in the float and there is £8m in the bank. ActiveOps is losing money but its is generating cash. Once customers are gained, they increase their spending over a number of years and this will be supplemented by new customer wins.
Destiny Pharma (DEST) announced positive results of the phase 2b clinical study on the use of XF-73 nasal gel for the prevention of post-surgical infections. The next step will be the design of a phase III study. Discussions are being arranged with the FDA in the US.
Gfinity (GFIN) has completed its strategic review and has decided to continue with its existing strategy of focusing on higher margin revenues. Interim revenues more than trebled and the operating loss fell by nearly three-quarters to £900,000. There is £1.8m in the bank.
Arena Events (ARE) has raised a further £11m at 14p a share, having raised £9.5m at 10p a share one year earlier. The cash will enable management to bid for strategic assets, including Aztec Shaffer, a US company in Chapter 11.
K3 Business Technology (KBT) has written £16.9m off its intangible assets. Ongoing revenues dipped from £50.1m to £48.8m and the software provider made a small profit in the year to November 2020. Recurring revenues are three-quarters of the total.
Itaconix (ITX) increased revenues from $1.29m to $3.29m in 2020. Increased use of its sustainable polymers in detergents, odour control and personal care products is enabling revenues to grow and they will rise further this year. Itaconix is still losing money but it has the cash it requires for the medium-term.
Lawyer Ince Group (INCE) has agreed a £17m, three-year financing arrangement with Investec which replaces the £10m facility with Barclays.
Recent AIM admission TEAM (TEAM) is proposing an all-share offer for Tavistock Investments (TAVI) and shareholders owning 14% of Tavistock have indicated support for the offer from the investment manager.
Energy supplier Yu Group (YU.) generated better than expected 2020 revenues of £101.5m and the loss was reduced. Net cash was £11.7m at the end of 2020. This leaves management in a strong position to increase the scale of the business. This year there will be full contributions from customer books acquired last year. Average monthly new bookings were £10.3m in the second half of 2020.
Time Out (TMO) has raised £17m at 35p a share. This should supply working capital until November 2022.
MAIN MARKET
Macfarlane Group (MACF) is paying up to £4.5m for Cornwall-based protective packaging supplier Carters Packaging. In the year to March 2020, Carters made a pre-tax profit of £500,000 on revenues of £4.2m.
MasMovil has launched a bid for Euskatel, in which Zegona Communications (ZEG) has a 21.4% stake. This values the target at €2bn and the Zegona shareholding at €428m. That puts a value of 170p a share on Zegona.
InnovaDerma (IDP) reported a one-fifth decline in interim revenues to £4.1mand a more than trebled loss of £1m. Management expects trading to be uncertain for the rest of the financial year. The recent fundraising will help to keep the business on a sound footing while it waits for a more substantial recovery.
Andrew Hore
Andrew Hore – Quoted Micro 1 March 2021
AQUIS STOCK EXCHANGE
Incanthera (INC) says that it is prioritising discussions with two global cosmetic companies as potential partners for Sol, a sun cream that prevents skin cancer. Incanthera is also assessing the potential for using the technology to develop other products.
Sativa Wellness (SWEL) plans to raise C$4m through a placing of units at C$0.07875 each. Each unit consists of one share one-half of a warrant exercisable at C$0.105 each. The cash will provide working capital and investment for a new health screening service. Sativa has opened ten Covid-19 testing facilities. A dispute with Dragonfly Biosciences has been settled.
World High Life (LIFE) is submitting a novel food dossier to the Food Standards Agency. This is part of the move to regulation of the CBD market in the UK. The dossier includes pre-clinical results.
AfriAg Global (AFRI) intends to acquire the shares in medicinal cannabis pharma company Apollon Formularies that it does not own, and this will be classed as a reverse takeover. Shares will be issued to the Apollon shareholders. AfriAg is also raising £2.5m at 5p a share.
Arbuthnot Banking (ARBB) is selling its Tay mortgage portfolio to a subsidiary of OneSavings Bank for £53.8m, which is equivalent to 97.9% of the outstanding loans. Arbuthnot has already announced that it intends to pay a 21p a share special dividend, which replaces the 2019 dividend declared in March 2020. Arbuthnot will make a loss in 2020 so there will be no dividend.
Gunsynd (GUN) has invested £65,000 in a convertible loan issue by B2B pool betting platform Low6. Gunsynd had already invested £200,000 last December. AIM-quoted Pires Investments (PIRI) has also increased its investment in Low6. It invested a further £35,000, having also invested £200,000 at the same time as Gunsynd. Low6 is expected to float during the second quarter of 2021 and Canaccord Genuity is its broker.
Tectonic Gold (TTAU) says that the latest exploration at Specimen Hill reaffirms the drill targets and informs plans for higher density drilling, so that a resource can be calculated. Tectonic says that the Deep Blue Minerals diamonds joint venture with AIM-quoted Kazera Global Investments produced 220 carats in January. Higher grade materials will be mined during the rest of the year.
SulNOx Group (SNOX) says that Bureau Veritas has certified that SulnoxEco Fuel Conditioner complies with European standards. This means that SulNox’s products can be used for 70% of the hydrocarbon market. Management is confident that production can be scaled up.
NQ Minerals (NQMI) has signed an agreement with ASX-listed Evolution Mining for the evaluation and potential processing of lead and silver rich stockpiles at the Sunbeam project in North Queensland. Evolution has a processing plant 80km away from Sunbeam, which has stockpiles from past mining. The processing would be done on a cost and revenue share basis with NQ. This could finance further exploration. NQ says that it should qualify for the Green Economy Mark when it moves to the standard list.
Lombard Capital (LCAP) has received shareholder approval for refocusing its strategy on property investment and development.
Almon I Holding has cut its stake in Coinsilium (COIN) to below 3%. It increased its stake to 3.68% in January 2020.
Altona Energy has changed its name to Altona Rare Earths (ANR).
AIM
Trading platform operator Aquis Exchange (AQX) moved into profit last year thanks to high levels of trading on its platform. Aquis had been expected to lose money in 2020 but it is now expected to make a £200,000 profit on revenues of £11m. EU trades have been moved to the Paris operation and London has restarted trading in Swiss shares.
VR Education (VRE) continues to grow the revenues of its ENGAGE VR platform. Group revenues increased by 38%, while ENGAGE revenues rose by 550% thanks to strong demand for virtual events. The US provides significant potential. VR is still hiring additional people, although the focus is more on marketing. VR is still losing money, but the cash burn has been reduced this year. Management is targeting 100,000 monthly users by 2025.
Hormonal disease treatments developer Diurnal (DNL) says Alkindi sales in the UK and Germany grew by 29% in the first half but the timing of purchases in other markets meant that overall revenues barely increased. Chronocourt could gain European approval in March and the US regulatory pathway for DITEST, an oral testosterone formulation, has been set out. Net cash was £20.3m at the end of December 2020.
K3 Business Technology (KBT) has sold its managed services business for £14.7m. The business made a pre-tax profit of £1.2m last year, but the disposal proceeds will wipe out net debt and enable the repayment of the £3m shareholder loan due in June. There should still be more than £35m of recurring revenues.
Interim trading at transport software and services provider Tracsis (TRCS) was active and it was not far below the levels in the six months to January 2020 prior to Covid-19 becoming a factor. Revenues declined from £26.4m to £22m and management believes Covid-19 reduced the figure by £6m. New rail contracts are being won, but the lack of events hit the data and events division. Cash has improved from £17.9m to £21m.
Revenues fell by one-third at President Energy (PPC) in 2020 due to lower oil prices. President did generate $10m of free cash flow and that helped to reduce net debt. President plans to drill seven wells this year and that could increase production by one-third. Anew subsidiary, Atome, will develop hydrogen and ammonia production.
Shield Therapeutics (STX) has raised £25m at 30p a share and could raise a further £4.2m via an open offer. The cash will finance the new strategy of directly launching iron deficiency treatment Accrufer in the US.
Yew Grove REIT (YEW) has agreed a new lease for Gateway Three building, East Wall Road, Dublin with the Electricity Supply Board. The new lease lasts five years. Along with three rent reviews, this takes the increase in annual rents to €470,000 this year.
Best of the Best (BOTB) has concluded its strategic review and it has reemphasised its online strategy. finnCap has upgraded its pre-tax profit forecast to £14m.
Benchmark Holdings (BMK) increased first quarter revenues by 18% to £29m and it is on course to reduce its loss this year, prior to moving into profit in 2021-22. The advanced nutrition business contributed significant growth in the first quarter.
MAIN MARKET
Online auctions provider Auction Technology Group (ATG) raised £247.4m at 600p a share, while existing shareholders pocketed £51.5m after the over-allotment option was exercised. The company was valued at £600m. There was a 30% gain to 780p a share at the end of the first week of trading. The company is involved with three main auction markets: arts and antiques, industrial and commercial and consumer surplus and returns. It has six main auction marketplace brands and trade magazine Antiques Trade Gazette. Low double-digit organic revenue growth is anticipated for the next few years.
Town Centre Securities (TOWN) announced a 1.75p a share interim dividend, even though this is not covered by earnings. Lower car park income meant that there was a sharp decline in interim profit. The NAV was 286p a share at the end of December 2020 and it is not expected to decline by more than 2% by the year-end in June. This is more than double the current share price.
CML Microsystems (CML) is paying 50p a share to investors following the sale of its storage division. This will cost £8.28m. the cash should be received before the end of March.
Strong demand for diagnostic products more than offset weakness in the networking division of BATM Advanced Communication (BVC) and enabled 2020 revenues to grow by 49% to $184m. Pre-tax profit jumped from $5.2m to $13.6m. Revenues are expected to decline this year, but pre-tax profit is forecast to improve from $13.6m to $17.3m. This may depend on the timing of the sale of the NGSoft business and it also assumes no additional sales of ventilators this year. Longer-term, revenues will build up from virtual networking technology NFVTime. There is also potential for dividends.
Construction services provider NMCN (NMCN) says that two contracts in the water division could lead to an additional loss of £5m in 2020. These costs relate to delays. The total loss for 2020 could be up to £22m. The additional cash costs will be spread over 28 months. Shareholders are being asked to agree to an extension of the company’s borrowing limit.
Aircraft lessor Avation (AVAP) took a $46.7m impairment charge on its aircraft and a $12.9m credit loss in the six months to December 2020. The NAV was 174p a share at the end of 2020. A full year loss of $30m is expected before the exceptional write-offs.
Cannabis-based products developer Cellular Goods (CBX) raised £13m in its offer at 5p a share. The share price jumped to 19p on the first day of dealings.
Potash project developer Emmerson (EML) raised £5.5m at 5.75p a share. Emmerson has a mining licence for the Khemisset potash project in Morocco. The cash will be used for the detailed design of the mine and the phased development of the project.
Shell company Stranger Holdings (STHP) is pushing ahead with the proposed reverse takeover of the Recyclus Group. A prospectus is being drafted.
Packaging supplier Macfarlane Group (MACF) increased its 2020 profit by 10% to £13m on a 2% increase in revenues to £230m. The full year dividend has been increased from 0.69p a share to 2.55p a share.
Andrew Hore