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Andrew Hore – Quoted Micro 6 May 2019
NEX EXCHANGE
In 2018, Newbury Racecourse (NYR) increased revenues by 8% to £19.3m. This was despite lower race course attendances because of two abandoned days of racing. Underlying pre-tax profit jumped from £188,000 to £568,000. The NAV was £50.7m at the end of 2018. There was a further £3.25m payment from David Wilson Homes, which helped to finance capital investment.
MetalNRG (MNRG) has entered into heads of terms with AIM-quoted Mkango Resources so that it can earn up to 75% of the Thambi licence in Southern Malawi. The licence allows exploration for uranium, tantalum and niobium. MetalNRG has to spend $500,000 in the first 12 months and then a further $700,000 in the next 12 months. A further $800,000 has to be spent in the third year to earn the full 75%. The Kyrgyz Republic has banned uranium exploration and mining and the farm-in agreement for the Kamushanovskoye uranium deposit has been suspended.
Secured Property Developments (SPD) had a NAV of £554,000 at the end of 2018. There is £584,000 in cash on the balance sheet.
High Growth Capital (HASH) has raised £4.99m after expenses via a placing at 1.75p a share with Mirador FZE, which also has warrants to subscribe for 300 million shares at 2.5p each until the end of 2019. If the High Growth Capital share price closes above 4p for five consecutive days, the warrants have to exercised or they will lapse. Mirador has a 14.2% stake. Mike Power has been appointed as a non-executive director.
Sativa Investments (SATI) has opened the first Goodbody and Blunt centre in Bath. The centre will sell cannabidiol products and have a café area.
V22 (V22O) is asking shareholders to approve the cancellation of the NEX quotation 31 May, after nearly 13 years on the market. The art investor and studio space provider plans to sell assets and distribute the cash to shareholders. A matched bargains quotation via JP Jenkins is planned for six months after leaving NEX.
Trading in Valiant Investments (VALP) shares has been suspended because it has not produced its annual report.
Queros Capital Partners (BFD) has raised £205,000 in the past two weeks from the issue of 8% unsecured bonds 2025.
The shortlist for the NEX share of the year at the Small Cap Awards 2019 has been announced. The companies are National Milk Records (NMR), Sativa Investments (SATI), NQ Minerals (NQMI), Chapel Down (CDGP), DXS International (DXSP) and Walls and Futures REIT (WAFR) ,which is also on the shortlist for impact company of the year.
AIM
Capital equipment manufacturer Mpac Group (MPAC) is acquiring Lambert Automation for an initial £15m. UK-based Lambert provides automation equipment to the medical and healthcare markets. Revenues and profit have been declining, but there was an order intake of £24.5m in 2018 and that should help revenues to recover. Revenues were £17.9m in 2018. There is potential earn out consideration of up to £2.5m. Mpac’s own trading is in line with expectations.
Park Group (PARK) says that trading was better than expected in the second half of its financial year, but there were additional costs and the effects of accounting changes. Edison has reduced its 2018-19 pre-tax profit by 3% to £12.5m. Additional costs next year mean that the profit forecast has been cut from £14.3m to £11.7m.
Tracsis (TRCS) has acquired timetable optimisation software developer Bellvedi for an initial £4m with up to £7.9m more payable over four years depending on performance. Bellvedi made a pre-tax profit of £700,000 on revenues of £1.6m last year. Acquiring the ATTUne software means that less needs to spend on the development of existing Tracsis software. The deal adds 2% to this year’s earnings per share, moving it to 27.3p. Next year’s is enhanced by 7% to 32.3p.
Competitions organiser Best of the Best (BOTB) has published a fourth positive trading update in a year. This prompted finnCap to increase its earnings forecast from 15.4p a share to 18.6p a share. The previous upgrade was in January. The switch to a predominantly online model is paying off. Any upgrades to the forecasts for the year to April 2020 will happen after the 2018-19 figures are published on 20 June.
Allergy Therapeutics (AGY) says that the PQ Grass allergy phase III study will start a year later than expected. It should commence by June 2020. This follows an end of phase II study meeting with the FDA. This means that this year and next year the reported loss will be lower because of deferred spending on the study.
Eight Peaks Group (8PG) plans to cancel its AIM quotation because of limited liquidity. This will save £80,000 a year.
Trading in the shares of property investor Safeland (SAF) will end on 10 May.
MAIN MARKET
Motor dealer Pendragon (PDG) is selling two Jaguar Land Rover dealerships in California. This is expected to generate around £60m of cash, although £6.9m of profit contribution before central costs will be lost. However, Jaguar Land Rover has right of first refusal.
Papillon Holdings (PPHP) has appointed Novum as broker and it has committed to invest £300,000 in convertible loan notes. The planned purchase of a 50% stake in used car market focused fintech company Pace Cloud.
Ross Group (RGP) has reported its 2018 results, but these are before the completion of the Archipelago Aquaculture which happened early in 2019. Revenues fell from £335,000 to £60,000 and a profit of £57,000 was turned into a loss of £250,000. That is partly down to costs relating to the acquisition of Archipelago Aquaculture.
Thalassa (THAL) received acceptances of 18.5% of the share capital in its bid for Local Shopping REIT (LSR) and this offer has lapsed. Thalassa owned or had acceptances of 39.3%.
Standard list shell Bermerle (BERM) went to a 50% premium on the first day of trading. However, the bid/offer spread of 1p/2p means that investors could only sell at the 1p a share placing price. The company is seeking a pharma acquisition. The areas that Bermele is assessing include diabetes, cancer and mental health. It is also looking at personalised medicine.
Standard list shell Auctus Growth (AUCT) had £920,000 in the bank at the end of 2018. Fellow shell daVictus (DVT) had £355,000 in the bank at the end of 2018 and it has agreed to buy the rights to a restaurant concept from Typical Dutch NV for £100,000. The Havana Rolled Cigar Music Café concept has been developed at a site in Aruba. Spinnaker Opportunities (SOP) has also secured a possible acquisition in the form of Kanabo Research, which is a medicinal cannabis oil company. Kanabo is developing over the counter products and has distribution rights to a vaporiser. Spinnaker had £1.04m in the bank at the end of 2018.
Trading in the shares of Tex Holdings (TXH) and Avocet Mining (AVM) has been suspended because they have not published 2018 accounts.
Andrew Hore
Andrew Hore Quoted Micro 22 April 2019
NEX EXCHANGE
IMC Exploration Group (IMCP) has published the prospectus for its move to a standard listing. No fundraising is planned to accompany the flotation. Management believes that IMC has enough working capital for 12 months. There was €152,878 in cash available at the end of January 2019. This takes account of the statutory spending on its licences.
Block Commodities (BLCC) is calling a general meeting to enable shareholders to decide whether the company should become involved in the medicinal cannabis sector.
Ananda Developments (ANA) owns 15% of LHT, the owner of hapac medicinal cannabis inhaling technology. The hapac products are being sold in Italy and the product range is being widened. Other investments are being assessed.
Ace Liberty and Stone (ALSP) has declared a second interim dividend of 0.83p a share.
Anne Yerburgh has been replaced as chairman of Daniel Thwaites (THW) by chief executive Richard Bailey, although she remains as a non-executive director in order to represent family shareholders. A replacement is being sought for former non-executive director Nick Mackenzie.
Queros Capital Partners (BFD) has raised £305,000 from the issue of 8% unsecured bonds 2025. This will be used to provide bridging finance to UK businesses.
Chris Akers has a 3.97% stake in High Growth Capital (HASH) following the purchase of the intellectual property of Malta-based BDD, a company he founded. RRNB Capital Ltd has increased its shareholding from 1.92% to 9.95%, while Fujairah has raised its stake from 2.31% to 8.59%. High Growth Capital has completed the acquisition of additional shares in AI company Sentiance to take its stake to 15%. Whitman Howard has been appointed as corporate adviser and broker.
AIM
Modern Water (MWG) reported its 2018 results at 6.19pm o the Thursday before Good Friday. Revenues increased by 18% to £4.2m and the reported loss was more than halved from £5.23m, although this included a £1.53m goodwill write off, to £2.47m. This appears to be the first time that Modern Water has slipped out results after the market has closed for the week. Let us hope that this does not become a habit. Serial offender Immunodiagnostic Systems Holdings (IDH) managed to put out its statement a bit earlier but after the close of the market. More can be found at https://ukinvestormagazine.co.uk/why-you-should-avoid-immunodiagnostic-systems-holdings/.
Enterprise software provider Sanderson (SND) says interim trading was ahead of expectations and further progress is expected in the second half. Interim revenues improved from £14.6m to £17m and underlying operating profit is one-third higher at £2.8m, which is partly due to accounting changes. Like-for-like operating profit would be one-fifth higher. Net cash was £3.29m at the end of March 2019. The order book is worth £8m. The interims will be published on 15 May.
Sheikh Ahmed Bin Dalmook Al Maktoum is investing £534,000 in MX Oil (MXO) for a 29.86% stake. He will appoint a non-executive chairman. This is part of a placing raising £680,000 at 0.04p a share. There are also 800 million warrants being issued that are exercisable at 0.04p over a five year period. Options over 10% of the enlarged share capital will be issued to management. The Aje field, where MX has a 5% investment is producing at around 3,150 barrels of oil per day and cash generated is being used to reduce project debt. The Aje field should start generating free cash in 2020 and that could move MX into profit in the first half of 2020. MX plans to consolidate 100 existing shares into one new share and change its name to ADM Energy.
Chief executive Sean Smith has bought 126,624 shares in biopesticide products developer Eden Research (EDEN) for 10.25p each. Finance director Alex Abrey has acquired 50,000 shares at 10.1p each. House broker Shore forecasts an increase in revenues from £2.8m to £3.7m in 2019, although the loss is expected to rise to £900,000. Shore expects Eden to move into profit in 2021.
PowerHouse Energy (PHE) has gained its first revenue generating contract for its DMG technology in conjunction with partner Waste2Tricity. Revenues will come from IP, design rights and licensing, followed by operational engineering.
Parity (PTY) is increasing its focus on the data analytics market and has appointed a new boss of consultancy services. Pre-tax profit halved to £850,000 in 2018 and a further decline is expected in 2019. Net debt is expected to remain at around £1m. Revenues are expected to continue to decline but there should be a greater proportion of the business coming from higher margin activities and profit is expected to bounce back to £1.5m in 2020.
Fryer and grease management services provider Filta (FLTA) increased revenues by 23% to £14.2m in 2018, while underlying pre-tax profit improved from £1.81m to £2.2m. This is before any significant contribution from the Watbio acquisition, which cost savings appear to be on course. A 2019 pre-tax profit of £3.8m is forecast.
Nektan (NKTN) is selling a 57.5% stake in Respin for £300,000 to a new purchaser because the previous deal could not be completed at a higher price due to the fact that buyer could not raise the finance. The online gaming firm says that it owes £3.6m in tax to the HMRC and it is likely to need additional cash to pay the bill.
TruFin (TRU) plans to sell its stake in unsecured consumer finance provider Zopa for £44.5m, an increase of 22% on the 2017 valuation, and investing £25m in manufacturing finance provider Distribution Finance Capital, which will be floated on AIM in early May. There should also be £10m returned to investors later this year. That will leave early payment services provider Oxygen Finance and Satago Financial Solutions, which provides working capital to small businesses.
Delayed results from consumer care products supplier Venture Life Group (VLG) show revenues 17% ahead at £18.8m and nearly all the growth came from the company’s brands. Pre-tax profit improved from £63,000 to £710,000. Net cash was £5.8m so the company has funds to make additional acquisitions.
Yourgene Health (YGEN) has raised £11.8m at 10.25p a share and that will be used to fund the £6.3m cash payment for molecular diagnostics developer Elucigene, which will cost £9.2m in cash and shares.
Managed services provider Redcentric (RCN) says net debt was £17.6m at the end of March 2019, compared with estimates of £20.2m. Pre-tax profit is expected to rise from £8m to £8.7m.
D4T4 Solutions (D4T4) has announced that its 2018-19 results will be ahead of expectations. This led to a pre-tax profit upgrade from £5.7m to £5.8m, but earnings per share were upgraded from 12.1p to 13.3p due to a low tax rate.
Evgen Pharma (EVG) has raised £5m through a placing at 13p a share. The cash will boost the balance sheet while management undertakes partnership discussions and additional work on SFX-01. The phase IIb data for SFX-01 in subarachnoid haemorrhage is expected in the third quarter of 2019.
Directa Plus (DCTA) doubled its total income to €2.5m in 2018. The graphene-based products developer has net cash of €5.2m, following a €3m outflow from operations.
Ariana Resources (AAU) says that the Kiziltepe gold mine produced 7,296 ounces of gold in the first quarter of 2019. That was lower than the fourth quarter of 2018, but it is ahead of the average annualised quarterly guidance.
IG Design (IGR) is set for 10% organic sales growth in the year to March 2019 and total revenues rising from £327.5m to £447m. Pre-tax profit is expected to grow from £21.4m to £29.5m. There could be further merger benefits to come from the Impact Innovations acquisition.
Europa Oil and Gas (EOG) is selling its 20% stake in PEDL143 in the Weald Basin to UK Oil and Gas (UKOG) for £300,000.
MAIN MARKET
Plastics and panels supplier Tex Holdings (TXH) made a small loss in 2018 following accounting changes to the recognition of revenues and there is no final dividend. Trading levels were lower in the second half. Tex is in breach of some of its bank loan covenants. The major shareholder continues to support the group. The share price fell by more than one-quarter.
Electronic products distributor DiscoverIE (DSCV) is on course to improve its full year pre-tax profit from £21.8m to £27.7m. The group has raised £29m at 400p a share in order to finance the acquisitions of US-based transformers and magnetic components manufacturer Hobart Electronics and UK-based rugged and submersible sensors manufacturer Positek. The total initial consideration is £15.9m.
Fasteners supplier Trifast (TRI) says full year profit is slightly better than expected even though demand from China has been reduced due to tariff wars with the US. Net debt was £15m at the end of March 2019 and it has agreed a new four-year bank facility of £80m. This could be used for acquisitions.
Argo Blockchain (ARB) has set the date for its requisitioned general meeting, which will be held on 16 May. The requisition came from an entity owning 13.8% that is controlled by Frank Timis, who does not believe that the company will provide a satisfactory return to shareholders with its current cryptomining strategy. The plan is to remove Jonathan Bixby and Mike Edwards as directors and appoint another director. Argo has more cash than its market capitalisation. Cash operating costs have been reduced to £280,000, compared with £500,000 of potential revenues expected in May.
Kazakhstan-focused vanadium miner Ferro-Alloy Resources (FAR) is already spending the money it raised when it gained a standard listing last month. Equipment, a mobile crane and vehicles have been acquired. The design of the extension to the existing facilities and for the connection to the high voltage power line has been completed. The share price has almost halved from the placing price of 70p to 37.37p. More background information can be found at https://ukinvestormagazine.co.uk/ferro-alloy-resources-goes-to-discount-on-first-day/.
BATM (BVC) has won an initial $2m armed forces contract for cyber security and this lasts 18 months.
Emmerson (EML) has signed heads of agreement for an offtake agreement for 100% of the production from the Khemisset potash project.
Andrew Hore
Andrew Hore – Quoted Micro 17 December 2018
NEX EXCHANGE
Ecommerce software provider Netalogue Technologies (NTLP) moved into profit in the first half and had £648,000 in the bank at the end of September 2018. Revenues increased by £168,000 to £647,000, even though subscription-based pricing is reducing the initial revenues from B2B clients. A loss of £60,000 became a pre-tax profit of £142,000, helped by lower operating expenses.
Veni Vidi Vici Ltd (VVV) is acquiring a 51% stake in a licence in the Shangri La gold, silver and copper project in Western Australia for A$220,000, which is payable to Goldfields Consolidated in the form of 190,000 shares and A$20,000 in cash. The shares cannot be sold for three months. VVV will spend an initial A$300,000 over three years and Goldfields will receive a 10% management fee.
Coinsilium Group Ltd (COIN) has raised £367,000 at 4p a share and each new share comes with a two-year warrant exercisable at 7.5p a share. If the share price averages more than 15p for five consecutive days, then the company can require the warrants to be exercised.
Gastropubs operator Barkby Group (BARK) has signed heads of terms to acquire Northamptonshire-based upmarket car dealer Centurian Automotive Ltd. The most recent accounts were for a dormant company and shows £200 in the bank.
Quetzal Securities Ltd sold 6.75 million shares in Pelican House Mining (PHM) for 0.5p each and Eight Capital Partners (ECP) acquired 8.25 million shares at 0.491p each. Quetzal subsequently sold a further 6.75 million shares in Pelican shares, leaving a 13.2% stake, to Eight Capital at 0.5p a share, taking its stake to 15.3%.
Hydro Hotel, Eastbourne (HYDP) has declared an unchanged total dividend of 21p a share for the year to October 2018. An interim of 7p a share will be paid in January (ex-dividend 20 December) and a final dividend of 14p a share paid in May (ex-dividend 18 April).
Ace Liberty and Stone (ALSP) has appointed Northland as broker.
EPE Special Opportunities Ltd (EL.P) had a NAV of 200.95p a share at the end of November 2018. The shares are trading at 160p.
Construction consultancy Driver Group (DRV) reported a 2017-18 pre-tax profit of £3.8m, up from £2.5m, and it is returning to paying dividends with a 0.5p a share payment. Net cash is £6.9m, helped by a property disposal, and this could reach more than £10m by September 2019 even after dividend payments. The Diales expert witness business is becoming an increasingly important revenue generator and overall utilisation levels have improved. There has also been a focus on better margin work in the Middle East.
SigmaRoc (SRC) is in the process of acquiring precast concrete products supplier CPP Building Products for £15.2m, although the deal requires shareholder approval for share issues, so it will not happen until early January. CPP is based in north west England and fits well with the existing precast concrete business. In the year to August 2018, revenues were £20.9m and EBITDA was £2.6m. This year’s trading is in line with expectations. There are plans to refinance the convertible loan notes.
Nexus Infrastructure (NEXS) had already warned about delays to its utility connection contracts with housebuilders and the 2017-18 figures were slightly better than expected with flat pre-tax profit of £9.2m. Nexus has a strong order book and could increase its 2018-19 pre-tax profit to £10.4m. The new electric vehicle charging points division will take time to build up.
Advanced coatings provider Hardide (HDD) has benefited from an upturn in demand from the oil and gas sector. It is also getting nearer to obtaining its first aerospace orders. Hardide remains loss-making and this will still be the case next year as it continues to invest in increasing capacity in the UK and US as demand grows.
Curtis Banks (CBP) has purchased around 600 SIPPS with assets of £180m from Hargreaves Hale, which will continue to manage the assets. Curtis Banks will launch a new SIPP product in January.
Clinical trials manager Venn Life Sciences (VENN) is collaborating with Open Orphan DAC. The two firms will share resources in the orphan drugs market. Venn is raising £1m from a two-year loan note issue.
WH Ireland has upgraded its forecast for banknote authentication and brand protection technology business Spectra Systems (SPSY) for the second time. The underlying pre-tax profit forecast has been raised by 10% to $4.5m. The 2019 forecast, which had previously been upgrade by 16%, is maintained for the time being.
Kibo Energy (KIBO) says that its 60%-owned subsidiary MAST Energy Developments has an exclusive option to undertake due diligence and acquire three peaking power sites totalling 31.3MW. This would provide initial revenues for Kibo later next year. Kibo has renewed its memorandum of understanding with Mozambique-based electric utility Electricidade de Mocambique for the financing and operation of the Benga independent power project.
eServGlobal Ltd (ESG) says that 2018 revenues will be lower than expected due to weak trading at the PayMobile business and the failure to close orders. The PayMobile business may be sold and the focus will be the HomeSend remittances business.
NWF (NWF) says feeds demand was strong in the summer because of a lack of natural grazing. In contrast, the hot weather held back demand for fuels. A Solihull-based fuel distributor has been acquired. The food distribution business continues to trade at around capacity because of contract wins. The interims will be published on 29 January.
ReNeuron (RENE) has important clinical trial results coming up in the next 18 months. A retinitis pigmentosa treatment is in phase I/II trials and there should be data in mid-2019. A phase IIb trial for a CTX cell therapy-based treatment for chronic stroke is due to report by early 2020. There was £30.7m in the bank at the end of September 2018. Management is seeking partners to help it to make the most of its technology.
PhotonStar LED Group (PSL) has raised £100,000 at 0.02p a share and this will enable the board to assess new business opportunities.
Property adviser Fletcher King (FLK) is maintaining its interim dividend at 1p a share even though pre-tax profit has dipped from £148,000 to £132,000. Ratings appeals revenues were lower. There is £2.28m of cash in the balance sheet.
Kromek (KMK) has secured an initial contract with the US Department of Defense worth $2m over 12 months. The plan is to develop a proof-of-concept device for a vehicle-mounted biological threat identifier.
Crossword Cybersecurity (CCS) started trading on AIM on Friday and the share price ended the day at 272.5p. Crossword raised £2m at 290p a share.
Volex (VLX) is buying cable assemblies and connectors manufacturer GTK for £14.3m in cash and shares. in the year to July 2018, GTK generated a pre-exceptional operating profit of £1.7m. There was £1.3m in the bank. The deal is earnings enhancing.
African Battery Metals (ABM) has found it difficult to raise the cash it requires and trading in the shares has been suspended. The company wants to come to a settlement with creditors so that it could continue to trade.
Smaller company mergers and acquisitions business K3 Capital Group (K3C) is cautiously optimistic but the full year outcome will depend on the timing of deals. There could be a small dip in pre-tax profit to £7m this year and there could be a corresponding dip in dividend from 11.2p a share to 10.8p a share.
Telit Communications (TCM) says that it will not complete the sale of its automotive business until next year. Telit is expected to make a 2018 loss. Further cost savings are being made in the Internet of Things operations.
More bad news from Filtronic (FTC) with sales of Massive MIMO antennas lower than expected. The main customer has reduced its forecast demand. The capitalised development costs of £500,000 will be written off and options are being reviewed. The rest of the business is trading in line with expectations. Filtronic will be loss-making this year. Net cash was £2.3m at the end of November 2018.
Science Group (SAG) has ended its formal sale process because of stockmarket and exchange rate uncertainty. The strategic review continues. Trading is in line with expectations and the company will recommence the share buy back programme. Net cash was £6.4m at the end of November 2018.
Like-for-like sales growth has been slowing at DP Poland (DPP) and this means that progress in 2019 is unlikely to be as good as expected. This means that it will take longer to reach profitability. Rivals have been spending money on marketing and warm weather has also held DP Poland back. A full year trading update will be published on 29 January.
Taptica International Ltd (TAP) plans to spend up to $10m on buying back shares and it has already spent nearly £110,000. There was net cash of $42.1m at the end of June 2018.
Tristel (TSTL) says that the US regulatory process for its disinfection products is on track and interim pre-tax profit should be £2.2m.
TomCo Energy (TOM) has managed to secure £550,000 at 2p a share. The previous £532,000 placing at 8.5p a share was pulled. Laurence Read has become a non-executive director.
RA International (RAI) has won a five year contract worth up to $5.6m from a US corporate client in Central Africa.
MAIN MARKET
Circassia Pharmaceuticals (CIR) is moving to AIM and it has decided to exercise its option to acquire US rights to COPD treatment Tudorza from AstraZeneca. This deal should complete by the end of the year and it will trigger a payment of $5m. A further $20m is payable upon approval of Duaklir and then there is further deferred consideration of $100m.
Tex Holdings (TXH) has warned that second half earnings will be lower than anticipated due to delayed deliveries and reorganisation costs.
Cadmium-free quantum dots developer Nanoco (NANO) is on course to complete the expansion of its Runcorn facility by the end of 2018 with commercial volume manufacturing by the middle of 2019.
Lb-shell (LBP) is being wound-up because of potential litigation relating to before it became a shell. There is unlikely to be anything left for shareholders.
Giant Saint Technologies Ltd (GST) is installing a $1m data centre in Singapore.
Andrew Hore
Andrew Hore – Quoted Micro 20 August 2018
NEX EXCHANGE
Health and community care properties developer Ashley House (ASH) reported a much-improved profit for the year to April 2018. There was a strong second half performance because of the completion of four schemes. Full year revenues were flat at £18.5m, while pre-tax profit jumped from less than £100,000 to £1.8m, although that includes a £500,000 write back of a previous impairment charge. Net debt was reduced from £2.5m to £1.5m. The housing and health property pipeline is valued at £206m, covering 22 schemes. The F1 Modular business lost money last year but trading appears likely to improve.
Ananda Developments (ANA) has acquired $200,000 of convertible loan notes in iCAN Israel-Cannabis Ltd, which focuses on medicinal cannabis. This is the first investment for Ananda and the convertibles have an annual interest rate of 6%. The interests of Ananda director Charles Morgan have assigned $100,000 of the convertibles to the company. iCan has subsidiaries involved in organising cannabis symposiums and cannabis-based research services, plus a 5% stake in CannRx Technology Inc, which has developed liquid soluble cannabinoids for use in treatments, and a 20% stake in CMTREX, which is developing a trading platform for cannabis.
Nigel Wray has reduced his stake in High Growth Capital (HASH) from 5.99% to 4.72%. Healthperm Resourcing Ltd (HPR) non-executive chairman David Sumner has bought 29,230 shares at 190p each, taking his stake to 84.7%.
Early Equity (EEQP) says trading in the company shares will resume on 28 August. Trading had been suspended on 16 May. The resumption follows an agreement with NEX Exchange that will change how shares are distributed to related parties. Early Infinity Holdings (EI) is the exclusive distributor for Yicom Global, where Early Equity is a 47. 1% shareholder. EI’s agents sell the products in Malaysia and elsewhere in south east Asia. EI incentivises its agents by gifting them shares in Early Equity. These were deemed to be a gift rather than a trade, so they were not reported. A new nominee company with two trustees that are not shareholders in Early Equity has been set up. This will hold shares for the benefit of agents of EI. Agents will receive a warrant certificate. These agents own 46.7% of Early Equity and shares equivalent to 6.29% of the company will be transferred to the nominee company. Early Equity previously announced that it wants to move to a standard listing. The company’s NAV was £1.54m, including £429,000, at the end of 2017.
Coinsilium Group Ltd (COIN) is investing $125,000 in Bundle Network Ltd, which is developing an online platform that enables the trading of cryptocurrencies. Coinsilium will also receive Bundle Network crypto tokens.
MetalNRG (MNRG) has paid a $50,000 option fee, which could lead to the company gaining a 51% stake in a new company that holds the rights to the Kamyshanovskoye uranium project in the Kyrgyz Republic. The project has an inferred uranium resource that could be worth $144m at $26/lb, plus exploration upside. International Mining Company owns 100% of the project and it would be put into a new vehicle, where MetalNRG would inject cash to gain its majority stake. MetalNRG has 90 days to undertake due diligence and review data. If the option is not taken up the option fee would be converted into a 2.5% stake in the new vehicle.
VI Mining (VIM) is starting its drilling campaigns at minas Pampa and Rosario de Belen, while the vendors are in discussions about changes in the terms of the deals. The timing of the due payment has been extended while the talks continue.
Panther Metals (PALM) has appointed Ariana Resources (AAU) boss Dr Kerim Sener as a non-executive director.
Ecovista (EVTP) is asking for shareholder approval for a resolution that will enable it to issue up to 3.486 billion shares so that management can continue with its strategy.
AIM
Gatemore Investments has increased its stake in TLA Worldwide (TLA), the company famous for issuing a profit warning after the market closed prior to Christmas 2016, from 7.4% to 12.2%. Bart Campbell has stepped down as executive chairman of TLA, but he will continue to receive his monthly salary until the end of the year.
Last year, revenues fell by nearly one-third to £24m at microwave electronic products supplier Filtronic (FTC) but it had already been flagged. The ending of a low margin contract meant that pre-tax profit fell from £2.16m to £1.23m, although that includes exceptional finance charges of £486,000 due to exchange rate movements. The broadband and wireless divisions are being merged because they have similar customer bases. There is net cash of £3.6m plus available bank facilities. Investment in new products continues and there is long-term demand from investment in 5G networks and security-related areas.
Marshall Motor (MMH) reported a decent set of figures given the tough new car market, which is exacerbated by the decline in diesel car sales. There was a small dip in continuing revenues but underlying pre-tax profit edged up to £16.4m. Used vehicle profit improved. The dividend is maintained at 2.15p a share. Trading will be even tougher in the second half, partly due to testing regulation changes, and full year profit is expected to decline from £29.1m to £24.2m. There is a strong balance sheet with a NAV of £201m.
Zamano (ZMNO) has ended discussions with its potential reverse takeover target. This means that cash is likely to be returned to shareholders.
Condor Gold (CNR) has been granted an environmental permit for developing a processing plant for the La India project by the Nicaragua authorities. Gold production could be 80,000 ounces a year from a single open pit. Accounts for the six months to June 2018, show cash of £1.57m.
Abzena (ABZA) is recommending a 16p a share cash bid from Astro Bidco, which values it at £34.4m. The life sciences company joined AIM four years ago when it raised £20m at 80p a share. It needs additional finance pumped into the business.
Oil and gas producer Empyrean Energy (EME) has received a $906,000 tax refund from the IRS from the 2016-17 tax year.
SalvaRx Group (SALV) is selling its business to a Toronto-quoted company in return for shares, most of which will be distributed to shareholders. The 94.2% stake in cancer drugs developer SalvaRx Ltd is being swapped for 757.9million shares in Portage Biotech Inc, which are deemed to have a value of $67.5m. SalvaRx shareholders will receive 18 Portage shares for each SalvaRx share they own if they approve the disposal. SalvaRx will retain around 100 million Portage shares and become a shell.
ClearStar (CLSU) has been named as preferred contract labour screening provider for Gulfstream Aerospace. This should contribute to a reduction in loss this year.
Premier African Minerals (PREM) has raised £750,000 at 0.18p a share. Premier plans a drilling programme of up to 2,750 metres to expand the resource base at the RHA Tungsten mine. The cash should last until the end of 2018.
MAIN MARKET
Tex Holdings (TXH) reported a slump in interim pre-tax profit from £423,000 to £96,000 even though there was a small reduction in admin expenses. There was a much better contribution from the plastics division but that was more than offset by the slump in profit by the engineering division due to delays in orders. Metal fabrication and powder coating business Argento UK has recently been bought. The interim dividend is unchanged at 2.5p a share.
Nanoco (NANO) expects the first displays using its cadmium-free quantum dots to be launched before Christmas. Volume production is expected at the new Runcorn plant before the end of 2019. The 2017-18 revenues were lower than expected because it could not recognise a payment from a large customer. Net cash is estimated at £7.9m at the end of July 2018.
Dukemount Capital (DKE) reported an increase in full year loss from £177,000 to £286,000. The NAV was £379,000 at the end of April 2018. There is £148,000 in the bank. Dukemount is on the brink of moving forward with its first two supported living developments.
PV Crystalox Solar (PVCS) has settled its claim with a customer. The customer will pay a total of €28.8m, of which the outstanding payment of €14.3m will be paid at the end of November. The customer has also waived the delivery of the solar wafers that were supposed to be supplied.
Andrew Hore
Andrew Hore – Quoted Micro 23 April 2018
NEX EXCHANGE
Sativa Investments (SATI) is acquiring a 51% stake in George Botanicals from Carbon Managers, where Sativa boss Geremy Thomas is 100% owner, for £200,000. Thomas was not involved in the decision making concerning this investment. He was the founder of former AIM company PNC Telecom and invested in George Botanicals before Sativa was set up. George Botanicals supplies cannabidiol (CBD) products, such as vape pens, balms and edible gels. Non-executive director Noel Lyons has sold 750,000 shares at 3p each. He still owns 2.25 million shares. This should have generated more cash than his initial investment, assuming he bought shares in the directors subscription at 0.5p each.
Mandicon (MECP) intends to return 250.125p a share in cash to investors via a solvent liquidation. An offer of £1.1m has been made for the remaining business, Nirvana Engineering, but the board believes it is worth £1.5m. Chairman Wilf Boardman will not receive the cash distribution and instead he will receive the balance of cash left after the liquidation costs and take control of Nirvana and have the right to potential deferred consideration of £400,000. Even taking Nirvana as being worth £1.5m, Boardman will receive the equivalent of slightly less than the cash distribution to the minority shareholders.
Primorus Investments (PRIM) says that investee company Sport:80 has commenced the preparation of documentation for a flotation that could happen in the third quarter. Non-executive chairman Jeremy Taylor-Firth has acquired an initial holding of 12.5 million Primorus shares at 0.1585p each.
Ganapati (GANP) says that iSoftBet will be integrating its Japanese-themed games to the Game Aggregation Platform. This means that these Ganapati games can be delivered to operators via the platform. Robert Dowling has been appointed as chief commercial officer.
All Star Minerals (ASMO) continues to review investment opportunities. The company owns 1.92% of NQ Minerals (NQMI).
National Milk Records (NMRP) chief executive Andy Warne has taken up the options for 85,000 shares at 28p each and then sold 27,200 shares at 87.5p a share. Two other managers, Jonathan Davies and Ben Bartlett, each took up 50,000 shares at 28p a share and each sold 16,000 shares at 87.5p a share.
Panther Metals (PALM) has changed the general meeting date to 11 May.
Etaireia Investments (ETIP) is investigating a number of transactions undertaken by Baron Bloom before his resignation as a director. These cover acquisitions totalling 16% of the company’s assets.
AIM
Immunodiagnostic Systems Holdings (IDH) is making a habit of putting out statements late in the day and sometimes at the end of the week. The latest is a trading statement released at 4.35pm last Friday. Full year revenues are 5% lower at £37.9m and also below the 2015-16 level, which was a previous low point when the reported loss was nearly as high as the revenues. There was around £28.5m in the bank at the end of March 2018, compared with cash of £29.7m (and debt of £1.33m) at the end of September 2017. The preliminary results are due to be announced on 20 June, possibly at an earlier time, although the interim figures were published at 4.30pm on Friday 24 November. Management will undoubtedly be bemused why the share price is so low, immune as they appear to be from a good sense of investor relations.
Aviva has sold its 3.92% stake in Vernalis (VER) and GAM cut its stake below 5%. Stockholm-based HealthInvest Partners has bought a 5.69% stake. Vernalis had £46m in the bank at the end of 2017. US commercial cough treatment activity should finish by the end of September and that will slow the rate of cash outflow. A formal sale process for the company has started.
Bad news from Immupharma (IMM) concerning the phase III trial of lupus treatment Lupuzor. The performance against the placebo was not good enough to meet the required target. There is still potential for a treatment targeted at specific sections of lupus sufferers. Lanstead Capital has sold its 5% stake and Aviva has cut its shareholding from 7.27% to 4.4%.
Integumen (SKIN) plans to acquire Cellulac via an all share reverse takeover. Cellulac provides the group with operations involved in biodegradable plastic ingredients and food supplements. The shares issued for the acquisition will account for 84% of the enlarged share capital. There are also plans to raise £7.5m. Gerard Brandon and Camillus Glover will become chief executive and chief operations officer respectively. Declan Service has resigned as chief executive. The current business will focus on existing products.
ClearStar, Inc (CLSU) is regaining the confidence of investors with further growth in revenues and progress towards profit. In 2017, revenues improved $16m to $17.8m and the loss was reduced from $2.11m to $1.95m. In 2018, the loss is expected to halve to $1m and it could breakeven in 2019. Net cash is $1.3m.
N4 Pharma (N4P) has commenced the proof of concept clinical trial for sildenafil, which should take eight to ten weeks. Initial results should be available in July with the final study at the end of August. This will show whether the reformulation is successful and how the performance compares to Viagra.
Connemara Mining (CON) says that the maiden mineral resource estimate for the Stonepark zinc lead project is 5.3mt at 8.55% zinc and 2.6% lead. The mineralisation is relatively shallow. Connemara has a 23.44% stake in the Stonepark project and Group Eleven Resources owns 76.56%.
SkinBioTherapeutics (SBTX) says that the cream formulation of its SkinBiotix technology has proved effective on skin models. Stability testing is underway.
Property fund manager First Property Group (FPO) says its full year pre-tax profit will be in line with expectations. Funds under management have reached £625m. The Universities Superannuation Fund has sold its 8.58% stake.
Production grades declined in the third quarter at the Uruguay mines of Orosur Mining Inc (OMI) and production was lower than expected at 6,859 ounces of gold. Full year production should be more than 27,000 ounces. Orosur generated $6.3m of cash from operations in the nine months to February 2018.
Filta Group Holdings (FLTA) reported growth in continuing revenues from £8.5m to £11.5m with the grease management business making an initial contribution. The figures exclude the refrigeration activities which have been sold. Underlying pre-tax profit improved from £831,000 to £1.73m. The main growth came in the North American franchised fryer management operation. Filta has bought the German master licence and this will provide a base from which to grow in Europe. The strategy is the same as in North America. The total dividend for the year is 1.3p a share.
Rose Peteroleum (ROSE) believes that the total cost of the first well on its project in the Paradox Basin in Utah will be in the range $7m-$8m, which is lower than previously thought, and it could be less than that.
Ascent Resources (AST) is reviewing its strategic options. A partner could be sought to help to exploit the existing gas assets. There is already interest from potential partners. Ascent still has cash of more than £1m.
Draper Esprit (GROW) has more than doubled its gross portfolio value to £244m in the year to March 2018 as it invests the cash it raised in the period. There is still £56m to invest and the funds managed by the group have a further £50m.
Profit has bounced back at Christie Group (CTG) thanks to a sharp recovery in the professional business services division. The stock and inventory systems division made a larger loss. Overall pre-tax profit improved from £1.8m to £3.15m, although the outcome as flat excluding the previous year’s exceptional pension-related charge.
In the six months to January 2018, Egdon Resources (EDR) produced 17,962 barrels of oil equivalent. That was higher than the previous year but revenues were flat at £513,000. There is £4.1m in the bank.
MAIN MARKET
Full year pre-tax profit fell from £908,000 to £730,000 at Tex Holdings (TXH) but NAV increased from 155p a share to 168p a share. The NAV improvement came from a reduction in the group pension deficit. Net debt increased from £3.75m to £4.87m. The plastics division improved its profit but the engineering division was hit by relocation costs. The dividend has been maintained at 8.5p a share. Chris Gray, who is in his seventies, is replacing Richard Burrows as chairman. David Redhead has switched from non-exec to executive director.
Sanity has not taken over when it comes to the share price of standard list shell AIQ Ltd (AIQ) following the return from suspension. The suspension price was 125p a share and it ended the week at 130p a share, having fallen to 92.5p a share the previous day. AIQ raised £115,000 at 20p a share in order to help to improve the limited liquidity of the shares. A one-for-40 open offer at the same share price could raise up to £253,000 more. In January, £4m was raised at 8p a share.
Sealand Capital Galaxy Ltd (SCGL) is selling SecureCom Media Holdings to Creative Alpha Ltd for £10,000, having acquired the business for £1m plus 10 million shares at 20p a share just over one year ago.
Boston International Holdings (BIH) had £811,000 left in the bank at the end of 2017. There was a £400,000 cash outflow during the year. Spinnaker Opportunities (SOP) had £1.18m in the bank on 13 April 2018.
Andrew Hore
Quoted Micro 15 August 2016
ISDX
Beer and spirits volumes were both higher in the first half for Adnams (ADB). Beer volumes were 7% ahead, while the volumes of the less-mature spirits business were 60% higher in the first half. However, increased marketing costs meant that operating profit fell from £962,000 to £624,000, while disposal profit jumped from £407,000 to £1.42m – including the sale of UK distribution rights for Lagunitas to Heineken. The second half is always stronger for the pub and retail operations. A £7m investment is being made to increase brewery capacity by next summer. The A and B dividends have been increased by 5.6% to 19p and 76p respectively. The record date for the dividends is 9 September. There were 132 shares traded during the week at prices between 10500p and 10850p.
WMC Retail Partners (WELL) expects to make a lower interim loss this year. WMC has agreed in principle a funding package of £1.8m plus revised terms for the lease of Cornish Market World, which is still losing money even though a reconfiguration has improved performance. Interests related to two directors are lending the company £300,000, taking the total outstanding to £400,000, ahead of completion of the funding package. These loans are repayable at the end of November but longer term loans, which shareholders have to approve, are being negotiated.
National Milk Records (NMRP) has appointed Mark Frankcom, who has previous experience in the dairy industry, as its new finance director. Since April 2011, Frankcom has been a director of Gloucestershire-based Combined Brewers, which was known as Cotswold Spring Brewery prior to its merger with Severn Vale Brewery, where he owns 33.3% of the shares. At 77.5p (76p/79p) a share , NMR is valued at £5.8m. The latest trade was 320 shares at 76p each on 10 August.
There has been mixed news for blockchain technology investor Coinsilium (COIN). Factom, which has developed technology to time stamp trading data, has done a deal with digital information platform DataYes to publish pricing data on the “3,000 most valuable Chinese stocks”. Coinsilium has a 1.9% stake in Factom. The management of Mexico-based digital currency exchange MeXBT, where Coinsilium has a 17.6% stake, has temporarily suspended its exchange operations in order to perform a review.
Diversified Oil & Gas (DOIL) has bought back £197,000 worth of 8.5% unsecured bonds from a bondholder fund. There are £9.93m worth of bonds in issue, including the bonds bought back.
AIM
Premier Technical Services Group (PTSG) continued to grow strongly in the first half and it has not been hit by the Brexit vote. In the past two weeks, Premier has secured two access installation contracts worth £2.5m. The construction-related order book stretches out to 2018 and the testing and maintenance operations also have a strong order book. The two dry and wet riser systems installation businesses acquired in July will contribute to the second half.
Staff turnover is holding back the progress of energy procurement services provider Utilitywise (UTW) and it has overhauled its management, including the appointment of a new chief executive. Brendan Flattery is joining the company at the beginning of October, having previously headed Sage’s European business. Sales grew by 19% in the year to July 2016, while EBITDA will be slightly higher than last year at around £18m. Earnings per share forecasts have been reduced by around 10% to 17.7p, which is slightly lower than the previous year.
Digital media company Milestone (MSG) is providing NaPo with a white label version of its Backstage HD music publishing platform. NaPo is a mobile reward platform and revenues generated will be shared 50/50.
Audio visual services provider MediaZest (MDZ) says that it is targeting its first ever post tax profit in 2016-17. In the year to March 2016m revenues grew from £2.48m to £3.14m, while the post tax loss was cut from £656,000 to £109,000, excluding share-based payment charge. There are two large projects that could come through later this year or early in 2017.
Self-storage sites operator Lok’nStore (LOK) says that like-for-like storage occupancy was 2% higher last year and prices have increased by a similar percentage. This lead to a 5.2%increase in sales and means that Lok’nStore is on course to increase earnings per share buy one-third to 10.3p. There are plans for new outlets including one in Gillingham, Kent.
Information management software provider Ideagen has acquired Covalent, which is similar to its own business, for £3.6m. Covalent has a customer base that includes the NHS, local government and housing associations and annual recurring revenues are £1.9m. This deal has led to a 8% increase in forecast 2017-18 earnings per share to 3.5p.
Mining services provider Management Resource Solutions (MRS) has agreed to acquire the min assets of SubZero Group Ltd for A$6.12m in cash and shares. This cost includes the assumption of A$2.85m of equipment finance and employee benefits. SubZero, which has generated annual revenues of A$40m, fits with MRS’ project management and labour hire businesses and will double group revenues. Operating sites will be consolidated and corporate costs reduced. Rising coal prices should lead to recovery in demand for the group’s services in Australia.
MAIN MARKET
Publisher Quarto (QRT) has acquired becker&mayer publishing assets for $9.8m. The US-based business is a book publisher and toy business and a further $1.25m could become payable. The US will account for 45% of group revenues, while children‘s publishing will be 30% of group revenues. Quarto is second half weighted so the interim loss is no surprise. The interim dividend is unchanged at 5.13 cents a share but in pence terms it will be higher. Full year profit is expected to improve from $14.1m to $15.5m.
Tex Holdings (TXH) says that a change in mix of work meant that profit did not reflect the improvement in interim turnover from £17.8m to £20.6m. Pre-tax profit was flat at £495,000. Plastics turnover fell in the first half but sales volumes have picked up in the second half. The interim dividend has been increased by one-quarter to 2.5p a share.
Andrew Hore
Quoted Micro 27 June 2016
ISDX
Demand for the latest share issue from Good Energy (GOOD) was better than expected and the maximum size of the offer as raised from £3.1m to £3.8m. The company can only raise up to €5m without a prospectus and the movement in the exchange rate has helped Good Energy to raise more. Around 2,000 investors applied for shares at 208p each via the offer. The cash will be invested in the operational platform and to increase the portfolio of generating capacity. At the company’s AGM on 23 June, shareholders failed to pass the special resolutions on the directors’ authority to issue more shares and for the dis-application of pre-emption rights. Good Energy says that it will consult with shareholders if there is the need to issue more shares.
Leni Gas Cuba Ltd (CUBA) has taken a 10% stake in UK-based The Cuba Mountain Coffee Company for £27,300. The focus of the business is the promotion of coffee from the Guantanamo region of Cuba and it is in talks with the Cuban government about additional investment in capital to improve processing efficiency. This will enable Cuba Mountain Coffee to obtain the rights to a greater proportion of production so that it can be marketed internationally. The company’s own coffee brand is Alma de Cuba and the ecommerce platform is www.almacuba.com.
Nordic Energy (NORP) plans to appoint Turpin Baker Armstrong as liquidator and it has called a general meeting for the 30 June.
AIM
Professional services firm Sweett Group (CSG) is recommending a rival cash offer to the existing WSP bid. The 42p a share bid by asset management and construction consultancy services provider Currie & Brown is 20% higher than the previously recommended WSP offer and values Sweett at £29m. However, the Sweett directors cannot withdraw their acceptances for the WSP bid and the same is true for the Cyril Sweett Trustee Company. The meeting to vote on the WSP bid will be adjourned. Currie & Brown is part of The Dar Group international network of professional services and it has previously acquired parts of Sweett in Asia. The new bidder has offered a £9.45m debt facility to cover Sweett’s debt requirements when the existing borrowing facilities expire on 8 July.
Verona Pharma (VRP) has raised enough cash to fund up to phase III trials for its RPL554 COPD treatment for patients with chronic respiratory diseases and announced plans to obtain a Nasdaq listing. Verona raised £44.7m at 2.87p a share and £36m should be left in the bank by the end of 2016 and that is expected to fall to £14.5m by the end of 2017. In fact, further cash is likely to be raised from a Nasdaq listing, which could happen before the end of the year. Vivo Capital, OrbiMed and Abingworth have taken shares in the placing and they will each have a director on the board. The phase IIb study is due to start in the first half of 2017 and a partner could be signed up during 2018 if things go to plan.
Hornby (HRN) is raising up to £8m via a placing and one-for-6.77524 open offer at 27p a share in order to finance its turnaround plan. Banking facilities have also been renegotiated. One year ago, the toys and hobbies supplier raised £15m at 95p a share. Hornby plans to focus on its existing profitable and cash generative products and geographies and reduce its cost base. In the year to March 2016, Hornby lost £13.5m and net debt was £7.2m.
Malaysia-based cloud services provider RapidCloud International (RCI) says that it is adopting a more conservative accounting policy and it means that 2015 profit, due to be reported this week, will be lower than expected. House broker WH Ireland had forecast a 2015 profit equivalent to £320,000 according to Morningstar.co.uk, and it was expecting £570,000 in 2016. There will be changes to depreciation and amortisation charges, recognition of deferred revenues and deferred tax.
BDO has been appointed to liquidate shell company NBNK Investments (NBNK) following its inability to find a suitable bank or financial business acquisition. The AIM quotation was cancelled on 22 June. An initial distribution to shareholders is expected early in August. There was £19.7m in the bank at the end of 2015 – equivalent to just over 36p a share – but there will be liquidation costs.
Patent attorney Murgitroyd (MUR) is paying $2.43m for trade and assets of a Dallas-based IP software and services business with operations in the US and Nicaragua. This business had gross revenues of $860,000 in the 12 months to May 2016. Murgitroyd expects to report full year revenues of more than £42m, while pre-tax profit should be in line with expectations at around £4.3m.
NWF (NWF) says that its feeds division improved its profitability in the year to May 2016 even though the dairy market remains tough. Market share has increased, helped by acquisitions. The food distribution division continues to work at capacity and operating efficiency has improved. Fuels increased volumes even though the warm winter reduced demand. Overall trading is in line with expectations and the pre-tax profit should be around £8.25m. Net debt is lower than expected. The full year results will be published on 3 August.
Savannah Resources (SAV) has been granted reservation permits over the Somero and Erajarvi lithium projects in Finland. Savannah will start to compile data, map and undertake surface sampling in order to identify drill targets by the end of the year.
On Tuesday, rebel shareholders will attempt to unseat Jason Drummond, Nilesh Jagatia and Oliver Fattal from the board of former AIM company Teathers Financial. Matthew Turney, David Kipling and Stuart Langelaan have put themselves up for election to the board. Teathers, which was originally known as CA Sperati, left AIM on 6 June having failed to implement its investing policy. It says that there is an investor willing to invest £1m in the company so that it can finance further development of the Teathers app.
MAIN MARKET
Papillon Holdings (PPHP) is the latest standard list shell. Papillon, which was incorporated on 19 October 2015 and re-registered as a public company on 25 April, has raised £824,000 at 1p a share. Previously 50 million shares were issued at 0.1p a share. The share price ended the first day of trading on 24 June at 1.25p but the bid/offer spread is 1p/1.5p. Papillon directors Charles Tatnall and James Longley are also directors of Plutus PowerGen. Papillon is seeking to acquire an industrial or services business focused on the UK.
Engineer and plastic products supplier Tex Holdings (TXH) says that parts of the business have found it increasingly difficult to turn enquiries into orders but there are other businesses that are doing well this year. The plastics business is coming under pressure although the Derby site has improved its previously poor performance. Tex has secured a £2m loan repayable over five years and £2.5m of short-term facilities.
In the tender offer at 200p a share, Bioquell (BQE) shareholders tendered 20.4 million shares, which is 47% of the life sciences company’s share capital. Bioquell will acquire these shares for a total of £40.8m. It was willing to return up to £44m to shareholders.
ANDREW HORE
Quoted Micro 18 April 2016
ISDX
BWA Group (BWAP) is still seeking a reverse takeover target. Trading in the shares has recommenced after a potential reverse takeover, where talks started 12 months ago, fell through. A settlement has been agreed with the potential target which will lead to a cash inflow of £76,311 for BWA. This will be recognised in the year to April 2016. The NAV was £526,000 at the end of October 2015. At 0.45p (0.3p/0.6p), BWA is valued at £505,000.
Goldcrest Resources (GCRP) has terminated its option agreement over the Zamsa exploration licence in Ghana. The focus is gold projects in southern Ghana. At 0.06p (0.05p/0.07p), Goldcrest is valued at £1.3m. Gavin Burnell has resigned as chairman, while Callum Baxter has moved to non-executive director.
Property investment company Ace Liberty & Stone (ALSP) is already starting to use the cash raised in the recent fundraising and it has raised a further £850,000 from the sale of Princegate House in Doncaster. Princegate House was purchased in 2013 for £694,000 and Ace is retaining the car park. Ace has bought two industrial estates in Plymouth and two residential properties in London – one of which has been bought from a director. The industrial estates cost £3.5m and generate annual rents of £205,000. The two residential properties cost a total of £4.2m – partly payable in shares at 3p each. At 4p (3.5p/4.5p), Ace is valued at £38.8m. The heavily discounted open offer price was 1p a share.
Western Selection (WSE) has increased its stake in AIM-quoted Bilby following its recent placing that raised £5m at 118p a share to help finance two acquisitions for its gas and building services business working for social housing and local authorities. Western Selection invested a further £545,000 and owns 5.9% of Bilby. At 47.5p (45p/50p), the investment company is valued at £8.5m. There was one deal last week at 45p a share.
AIM
Sports Direct International has taken a 6% interest in Goals Soccer Centres (GOAL). Sports Direct already owns nearly 1% of the five-a-side football pitches operator but it has added a contract for difference over more than 5% of the share capital.
OptiBiotix (OPTI) continues to sign deals for its technology based on the human microbiome. The latest is with health and nutrition company Royal DSM. This is a joint development agreement to develop new products using the OptiBiotic platform. A study shows that the company’s cholesterol-reducing product has reduced cholesterol levels by an average of 7.2% in the study group. Commercial discussions with potential partners are ongoing. There was £2m in the bank at the end of November 2015 and since then £2.5m has been raised. This gives OptiBiotix, whose monthly cash outflow is relatively modest but rising, an excellent financial base from which to pursue other deals while it awaits revenues from the first commercial product.
Acquisitions helped hostels operator Safestay (SSTY) to more than double its revenues to £4m in 2015 but there was organic growth in that figure. The Elephant & Castle hostel continues to improve its performance. This year there will be 12 month contributions from the Edinburgh and Holland Park sites. NAV is 48p a share.
Stephen Roberts has resigned from the board of China-focused investment company Grand Group Investment (GIPO). Roberts stated: “It has been a great pleasure working with my fellow Board members Jay Newman and Mark Hemmann, and I wish them and Grand success in the future.” The other members of the Grand Group board were Mr Yang Xiao, Mr Zhou Jiang, Mr Li Chuang and Ms Gu Yingying, although Ms Gu Yingying subsequently resigned.
MAIN MARKET
Bluebird Merchant Ventures Ltd (BMV) finally joined the standard list on 13 April. The flotation was originally foreshadowed at the end of 2015 and it raised £1.49m (after expenses) at 5.75p a share. The Philippines-focused firm has interests in a potential gold mine and copper concentrate trading. The share price ended the week at 4.63p. The prospectus is available at www.bluebird.com.ph.
Tex Holdings (TXH) reported flat revenues of £36m for 2015 but pre-tax profit improved from £1.18m to £1.49m. This was mainly due to a strong performance from the engineering division. NAV was £9.44m at the end of the year. Net debt was £2.9m. A special dividend of 15p a share was paid last November. Excluding that, the total dividend was increased from 6p a share to 7p a share. This year has started strongly overall, although the plastics business is sluggish.
ANDREW HORE