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Quoted Micro 15 August 2022
AQUIS STOCK EXCHANGE
Good Energy (GOOD) has invested a further £3.7m in EV charging app developer Zap-Map as part of a £9m fundraising. This values Zap-Map at £26.3m. Good Energy has also converted a £1m loan note into shares and it owns 49.9% of Zap-Map. Global fuel card and payment provider Fleetcor invested £5.3m and it can help Zap-Map expand internationally.
Media shell Lift Global Ventures (LFT) is buying financial PR and IR consultancy Miriad Ltd from the shell’s director Zak Mir. In the year to June 2022, Miriad Ltd generated revenues of £341,000 and an operating profit of £265,000. A general meeting will be held on 5 September. Lift Global Ventures will pay £200,000 in cash and 4.17 million shares at 4p each. The current share price is 1.125p. Zak Mir has transferred a holding of 8.33 million shares in Lift Global Ventures from Miriad Ltd to himself for nil consideration.
In the three months to June 2022, National Milk Records (NMRP) increased revenues from £5.72m to £6.09m. All parts of the business grew their revenues with genomics testing more than doubling revenues to £111,000. This is the final quarter of the financial year. Milk prices are increasing.
Altona Rare Earths (ANR) has estimated an exploration target of up to 56.6 million tonnes at up to 1.65% total rare earth oxide at the Monte Muambe rare earths deposit. The JORC mineral resource estimate should be published in the first quarter of 2023.
In the year to February 2022, Inqo Investments Ltd (INQO) reported a loss of R14.2 million after a R2.4 million impairment charge. There is a new reforestation project over 5,000 hectares of degraded land on the Kazuko private game reserve. Since the year-end, R2 million of director loans have been made available and a total of R1.44 million will be generated by the sale of the stake in Bee Sweet Honey Investment.
Asia Wealth Group Holdings Ltd (AWLP) reported a reduced 2021-22 profit of $11,266, down from $193,507, due to unrealised currency losses from Japanese Yen holdings and the write down of an investment. Net assets were $1.59m at the end of February 2022.
Invinity Energy (IES) shares commenced trading on the US OTCQX market and new US climate legislation should boost energy storage demand. The energy storage technology developer says the bill contains $369bn of clean energy investment, including tax incentives and grants.
Oscillate (MUSH) has £1.2m in cash as well as investments in three companies.
Close Asset Management has taken a 6.5% stake in Macaulay Capital (MCAP), which joined the Access segment on 29 July when £1.9m was raised at 20p a share. This week the share price rose to 25p. The strategy of the company is to originate potential investments and generate fees from these businesses by advising them and helping to raise money, as well as investing alongside other investors.
Chapel Down Group (CDGP) has replaced finnCap with Singer as its corporate adviser and broker.
Hydrogen Utopia International (HUI) has appointed Duncan Snelling as an engineering consultant and granted him options over up to 600,000 shares at 9.275p each. Each month, 50,000 options will vest, and they are exercisable between the first and fifth anniversaries of the appointment.
Vulcan Industries (VULC) has appointed Darren Taylor as a non-executive director. He was one of the shareholders in Aftech, which was acquired in March, and he has a 12.6% stake in Vulcan Industries.
Gathoni Muchai Investments, where Marula Mining (MARU) chief executive Jason Brewer is a substantial shareholder, acquired 1.5 million shares and 1.1875 million warrants exercisable at 4p each for a total of £16,000. Chairman Richard Lloyd bought one million shares at 1.07p each.
David Bull has stepped down as chief executive of Eight Capital Partners (ECP).
Goodbody Health Inc (GDBY) has shareholder approval to change its jurisdiction from Canada to Guernsey and delist from the CSE.
Rogue Baron (SHNJ) is changing its year end to 30 September. Discussions continue with the auditor about the year end stocktake at the Bin 1301 bar and the stocktake of tequila inventory.
AIM
Staffing provider Empresaria (EMR) benefited from a strong performance from its outsourcing division, which more than offset declines in profit in the regional divisions in the first half of 2022. Group net fee income was 15% higher at £32.6m. operating profit was 94% ahead at £3.5m. The Americas division had tough comparatives because of Covid-related healthcare business. Net debt is £10.8m.
Manchester-based Northcoders (CODE) has won a £4m contract from the UK government to provide scholarships for software training for individuals. This will be used to fund software development and data engineering skills training by Northcoders and it stretches into 2023. More than 85% of forecast 2022 revenues of £6.5m, up from £3m, are covered by contracted work, while 30% of the 2023 forecast of £10.5m is covered.
Self-storage sites operator Lok’nStore (LOK) published its full year trading statement showing self-storage revenues 17.3% higher. Stripping out new stores and the four stores sold in the period, the increase was 24.9%. There were increased occupancy levels and prices were raised by 13% over the year. Three new sites were opened during the year and Basildon, Bedford, Peterborough and Staines are all set to open in 2023.
Shares in Africa-focused oil and gas company Afentra (AET) returned from suspension following the publication of the admission document covering the proposed acquisition of interests in the producing Block 3/05 and the exploration Block 23 in Angola from Sonangol. The initial cost is $80.5m, with up to $50m of contingent consideration for the Block 23 interest. The acquisition cost is equivalent to $3.60/barrel – based on proved and probable reserves. In the first half of 2022, the net production from Block 3/05 was 4,700 barrels per day and it could generate $36m of cash a year at an oil price of $75/barrel. Trading in the shares had been suspended since 8 October.
MJ Hudson (MJH) raised £9.22m in a placing and PrimaryBid offer at 30p a share. The cash raised will be invested in the ESG division, help to pay deferred consideration and provide additional regulatory capital for the growing operations, particularly in Ireland.
Electrical retailer Marks Electrical (MRK) increased revenues in the first four months of the financial year by 14% to £27.7m. Marks Electrical is growing market share for major domestic appliances and consumer electronics. Televisions, vacuum cleaners, washers and air conditioning were strong categories. Rivals have been discounting prices and marketing costs are increasing, but management believes it can achieve profitable growth.
Geospatial software provider IQGeo (IQG) is acquiring automated planning and design software provider Comsof, which is profitable and cash generative. IQGeo currently includes similar software in its services, but it is supplied by a third-party. Swapping this for Comsof software will enhance margins.
Crestchic (LOAD) forecasts have been upgraded for the third time this year. The largest ever loadbank hire contract has recently been secured, which is helping trading momentum to continue to accelerate. The new factory has been completed. Demand from datacentres is strong and there is a recovery in demand from the oil and gas sector. Utilisation at record levels. The 2022 pre-tax profit forecast has been raised from £5.2m to £7.2m
Digital media company Digitalbox (DBOX) increased interim revenues by 40% to £1.9m and there was an increase in net cash to £2.4m. This is before the completion of the acquisition of the assets of TVGuide.co.uk, which will make a contribution in the second half. However, management is concerned about advertising levels in the second half.
MAIN MARKET
Used car finance and property bridging loans provider S&U (SUS) says group receivables increased from £340m to £370m and first half profit is greater than last year. Motor finance provider Advantage Finance receivables are £280m and Aspen property bridging loans have reached £90m with an average size of around £875,000 for loans this year.
Radiators company Stelrad Group (SRAD) grew interim revenues by 17% to £150m, even though volumes declined. Underlying pre-tax profit was 83% ahead at £13.9m. Net debt is £47.5m. Recently acquired DL Radiators will be earnings enhancing this year.
Hamak Gold Ltd (HAMA) executive director Karl Smithson bought 119,094 shares at 8.4p each, while non-exec Martin Lampshire purchased 122,000 at 8.18p each.
Andrew Hore
Quoted Micro 25 July 2022
AQUIS STOCK EXCHANGE
In the six months to March 2022, S-Ventures (SVEN) reported an increase in revenues from £1.5m to £4.1m, although it remains loss making. The full benefits of acquisitions and the consolidation of warehousing has yet to show through. Even so, VSA has cut its 2021-22 revenues forecast from £11m to £9.4m S-Ventures will continue to lose money.
Arbuthnot Banking Group (ARBB) improved interim underlying pre-tax profit from £6.5m to £10.7m. NAV is 1300p a share. The interim dividend is 17p a share. Customer loans increased by 5% to £2.1bn. Assets under management dipped to £1.3bn after the decline in stockmarkets. A West End long leasehold property has been sold at a value of £60m and a yield of 3.75%.
Shepherd Neame (SHEP) has acquired Bournemouth seaside bar and restaurant Urban Reef. This takes the total number of pubs owned by the Faversham-based brewer to 300.
Psych Capital (PSY) says that investee company Awakn Life Sciences has received C$2.5m of UK government funding for the phase III trial for a ketamine-assisted therapy for alcohol use disorder. Awakn will finance the other C$1.25m cost of the trial.
Vulcan Industries (VULC) is selling Orca Doors for £1. That gets rid of net liabilities of £751,000 and continued cash outflows. The fire door supplier has been hit by lockdowns and requires additional investment.
Ananda Developments (ANA) subsidiary DJT Plants has successfully self-crossed the first generation of cannabis plants. This will continue for six generations. The performance of various cannabis cultivars is being assessed.
AQRU (AQRU) subsidiary Accru Finance is partnering with Quickbit, a Sweden-based fintech, which will offer the Accru yield generating products to its customers.
Black Sea Property (BSP) has completed the purchase of Star Mil EOOD for a total consideration of Euro5.15m. The company owns a Black Sea hotel complex. A loan of Euro4.2m helped to finance the purchase.
Rogue Baron (SHNJ) has made its first sales of Shinju Japanese whisky to Austria and Switzerland.
Lombard Odier has reduced its stake in Chapel Down Group (CDGP) from 9.97% to 4.99%. Mark Horrocks has increased his stake in Quetzal Capital (QTZ) from 5.3% to 6%. A company related to Marula Mining (MARU) chief executive Jason Brewer has acquired 100,000 shares at 2.75p each.
Oscillate (MUSH) has acquired 2.5 million warrants in fully listed Dev Clever (DEV) for £250,000. The warrants are exercisable at 1p each up until 21 January 2024. Dev Clever is currently undertaking a reverse takeover.
AIM
Business restructuring business Begbies Traynor (BEG) increased underlying pre-tax profit from £11.5m to £17.8m in the year to April 2022. This was a combination of acquisitions and organic growth. The dividend has been increased from 3p a share to 3.5p a share. Net cash improved from £3m to £4.7m. Insolvencies are increasing, although the higher margin administrations are still relatively low. This could change over the next year or so, making the outlook positive.
Credit provider Morses Club (MCL) says an increasing level of customer redress claims means that it is considering a scheme of arrangement. This could provide certainty about the potential total level of claims over a set period. Management is talking with the FCA. The scheme would have to be approved by the majority of claimants. There will be an additional provision of £45m in the 2021-22 accounts and underlying pre-tax profit could be below £3.5m. Tighter controls mean that sales are declining, and Morses Club won’t make a profit in 2022-23. Fewer competitors could help Morses Club recover in the following year.
Disinfection products supplier Tristel (TSTL) announced a special dividend of 3p a share on top of a final dividend of 3.93p a share. Full year revenues are 4% ahead at £28.4m and adjusted pre-tax profit is 12% higher at £4.5m. The second half was stronger as more patient procedures have been undertaken. FDA approval for the Duo ULT could be achieved next year.
Footwear supplier Unbound Group (UBG) announced a fundraising generating £3.3m at a heavily discounted 15p a share. An open offer, which closes on 8 August, could raise up to £1m more. The footwear supplier is launching an online platform to sell third party branded products to a database of 4.6 million individuals. The cash will help to finance the expansion.
Stanley Gibbons (SGI) intends to cancel its AIM quotation. Graham Shircore is stepping down as chief executive in September and he will be replaced by Tom Pickford. The largest shareholder Phoenix SG believes it is better to cancel the quotation considering the limited free float and additional costs. The 58% shareholder also says that it would reconsider its financial support if shareholders do not agree to the cancelation. Stanley Gibbons remains loss making.
In-content advertising company Mirriad Advertising (MIRI) expects flat revenues in 2022 because of weak market conditions in China. The Chinese operations will be closed next year and that will save annualised costs of £1m. That is on top of the £2.5m of annualised savings expected for the business as a whole. Interim revenues have halved, although US revenues increased. There is £17.7m in the bank and cash should be higher than previously expected at the end of 2022. Cash outflows are still significant, though.
Window fittings supplier Titon (TON) says that supply problems with raw materials and components exacerbated by cost inflation have led to a reduction in margins. There have also been problems with IT, so this year’s figures will be lower than expectations. South Korea sales are disappointing but there should be a small profit contribution.
Restructuring services provider FRP Advisory (FRP) increased revenues from £79m to £95.2m in the year to April 2022, with 11% organic growth. Pre-tax profit improved from £21.2m to £23.1m. There are signs that administrations are starting to increase and that will boost demand for services.
Cambridge Cognition (COG) directors are buying shares following yesterday’s trading update. Chief executive Matthew Stork and finance chief Stephen Symonds each bought 22.950 shares at 113p each. The latter did not previously own shares. The digital brain health products developer increased interim revenues by 31% to £5.9m. The order book is worth £18.6m. There was a small profit and £8.6m in the bank at the end of June 2022.
The merger between Tern (TERN) and Pires Investments (PIRI) is not going ahead because not enough of the latter’s shareholders voted for it. Tern wants to generate cash from exiting one or more of its investments as soon as it is feasible. There will not be any new investments until there is a realisation of an investment, although there are likely to be commitments to existing investments that may mean a fundraising will be required.
An independent decision means that Newcrest Mining can pay $60m to Greatland Gold (GGP) to take up an option to acquire a further 5% stake in the Havieron project. Given the progress that has been made on the project over the past year this is an attractive price, and it is likely to take up the option. The cash will pay off the $50m loan facility from Newcrest and leave money for further investment. Greatland Gold will still own 25% of Havieron.
MAIN MARKET
Palace Capital (PCA) is changing its strategy. It was originally going to reinvest the cash from the sale of its industrial property assets into new regional office investments. Shareholder feedback means that the potential £46.5m raised from the disposal of the industrial portfolio and other non-core assets, after repayment of related debt, will be distributed in dividends or paid back via a tender offer. Three non-exec directors have resigned.
Kin + Carta (KCT) says revenues grew 48% in the year to July 2022. Peel Hunt has upped its 2021-22 pre-tax profit forecast from £16.6m to £16.9m. Net debt is estimated at £2.5m. Kelly Manthey will be taking over as chief executive.
Andrew Hore
Quoted Micro 27 June 2022
good,
AQUIS STOCK EXCHANGE
Resolutions 8-12 were not passed at the Good Energy (GOOD) AGM, which were mainly enabling the company to issue new shares or buy back existing shares. Resolution 12 would have amended the articles of association to permit hybrid meetings.
Cadence Minerals (KDNC) has agreed to sell its 30% working interest in the Yangibana project tenements for £5.1m in shares of the ASX-listed operator Hastings Technology Metals. Cadence reported an outflow of cash from operating activities of £751,000 in 2021, down from £1.36m the previous year.
Blockchain and cryptocurrency investor Coinsilium Group Ltd (COIN) increased 2021 revenues by 130% to £530,000. Net fair value loss on financial assets was £407,000, compared with a gain of £566,000, but realised gains increased from £199,000 to £1.52m. Overall pre-tax profit fell from £310,000 to £14,000. There is £1.51m in the bank at the end of 2021, while NAV is £5.84m. Coinsilium has entered a simple agreement for future tokens (SAFT) with potential Latin America- focused blockchain gaming hub GGs.io for $100,000 of its future tokens and is a strategic adviser.
Pluto Digital has repaid the loan, plus interest, of £5.18m owed to NFT Investments (NFT).
All Star Minerals (ASMO) is raising £200,000 at 0.02p a share and every two shares come with a warrant to subscribe for a share at 0.04p. The cash will be used to finance investment in the company’s exploration projects. A further share issue at 0.02p pays £102,000 owed to GMI, where the All Star Minerals chief executive is a substantial shareholder. Management says that it is planning a much bigger cash raise.
Gunsynd (GUN) has agreed binding heads of terms with Metals One to farm into the Black Schist nickel zinc copper cobalt projects in Finland. In return for £1m, Gunsynd will earn 25% of the company owning the projects.
In 2021, Startup Giants (SUG) moved from a loss of £188,000 to a profit of £44,000. Current trading is in line with expectations.
Gowin New Energy (GWIN) had cash of RMB2.33m at the end of 2021, but it also had net liabilities. There are plans to trade agarwood products.
Wishbone Gold (WSBN) says that drilling at the Halo project in north Queensland has discovered copper mineralisation in the majority of holes drilled. The 21 hole is apparently the most promising.
Western Selection (WESP) has taken advantage of the Northbridge Industrial Services share price rise to sell 35,500 shares at 200.87p a share. It retains a 3.86% stake in the loadbanks manufacturer and renter, which changed its name to Crestchic (LOAD) later in the week.
Bondholders have approved the plan by Eight Capital Partners (ECP) to modify the terms and conditions of its 7% bonds.
Vulcan Industries (VULC) has raised £74,000 at 1p a share and issued additional shares for the acquisition of Aftech Ltd.
The wife of DXS International (DXSP) chief executive David Immelman has acquired 845,000 shares at 10p each, taking their interests to 11.85%.
Mark Horrocks has increased his stake in Quetzal Capital (QTZ) from below 3% to 5.3%. Chris Akers has raised his shareholding in Oscillate (MUSH) from 11.4% to 12.45%. Dowgate Wealth has a 4.9% stake in Silverwood Brands (SLWD).
AIM
Springfield Properties (SPR) has acquired the housebuilding business of Mactaggart and Mickel Group for a total cost of £46.3m. The initial payment is £10.5m and the rest will be paid over the next five years as homes are built on the sites acquired and sold. This way the deal should be self-financing. Six existing sites are being acquired as part of the deal and eleven will transfer as more payments are made. These sites have a gross development value of £230m.
Springfield is also acquiring a timber frame factory as part of the deal. It already owns a timber frame factory and 90% of the homes it builds have timber frames. Springfield’s capacity will double to 2,000 timber frames a year, which is more than enough for existing building plans, so outside suppliers will not be required any more.
In the six months to March 2022, Team (TEAM) revenues improved from £610,000 to £999,000, although there was an increased loss. The wealth management and financial services company acquired financial adviser Omega Financial Services in the first half and bought investment consulting business Concentric after the period end. There are other acquisition opportunities. There are opportunities to win new clients, but weak markets are holding back growth. Executive chairman Mark Clubb bought 5,004 shares at 63.9p each.
Property investor and fund manager First Property (FPO) returned to profit last year. In the year to March 2022, revenues reduced from £12.1m to £8.65m. That was mainly down to the loss of rental income from the Gdynia property. Asset management fees edged up from £3.35m to £3.46m and performance related fees jumped from £40,000 to £578,000.
There was a reduction of £7.81m in the amount owed to ING Bank, relating to the Gdynia property, and this was taken as a gain. Last year, there was a £7m write down on the property. That is why a loss of £5.09m was turned into a £7.98m profit. First Property is set to sell its properties in Romania and its supermarket properties in Poland. That will reduce net debt, which was £17.2m at the end of March 2022.
Insolvency litigation funder Manolete Partners (MANO) expects that the rising level of insolvencies will provide additional potential cases. In the year to March 2022, revenues declined from £27.8m to £20.4m. The realised revenues fell more sharply from £24.4m to £15.2m, with the main reason behind this being the large case with realised revenues of £9.3m in the previous year. Unrealised revenues increased from £3.41m to £5.2m. Pre-tax profit fell from £6.99m to £4.51m. Cash generated from operations before tax and investment in cases increased from £2.79m to £4.42m, due to a small reduction working capital. Investment in cases moved up from £5.89m to £6.47m. Peel Hunt has reduced its pre-tax profit forecast for this year from £7m to £5m.
Restaurants operator Tasty (TAST) has repaid its £1.1m bank loan, leaving it with net cash of £8.6m. Annualised interest rate savings will be £57,000 and there was no early repayment penalty. There are plans to open five or six more restaurants this year.
Premier African Minerals (PREM) has signed a deal that can get the Zulu lithium project pilot plant up and running. The pilot plant has target annual production of 50,000-ton SC6 and there are binding heads of terms with Suzhou TA&A Ultra Clean Technology to take all of this production starting from the first quarter of 2023.
Shares in 4D Pharma (DDDD) declined 28.5% to 16.66p before trading was suspended ahead of administrators being appointed. 4d Pharma says Oxford Finance has demanded immediate repayment of the $13.86m it is owed. The company cannot afford this.
Paper and specialist fibres maker James Cropper (CRPR) reported a full year, underlying pre-tax profit of £4m. The paper making business is cyclical and it made an increased loss. The TFP Hydrogen division, which makes products for fuel cells, accounts for around 30% of revenues and its operating profit before group overheads increased from £6.48m to £8.68m. James Cropper has reinstated the dividend this year with a 7.5p a share final dividend taking the total to 10p a share.
Cancer diagnostics developer ANGLE (AGL) has signed another contract with its first large pharma services customer. The Parsortix system will be used to monitor patients with unresectable solid tumours in a new phase Ib dose escalation study using the pharma company’s drug in combination with immuno-oncology agents.
Provexis (PXS) has signed two agreements with DSM relating to Fruitflow, an ingredient that helps normal blood flow and circulation. DSM customers for Fruitflow will become direct customers of Provexis at the beginning of 2023. DSM will still receive a royalty on the gross profit of Fruitflow sales to customers it transfers to Provexis for four years. The deal means that, assuming like-for-like sales and margins, Provexis would make a higher net profit in 2023 and it would increase in subsequent years. There should also be new direct customers. Provexis is also partnering with DSM on a gut microbiome patent.
Investment management company Forward Partners (FWD) says that weak stockmarkets have hit the valuations of technology companies and thereby the valuations of its investments. This means that there is likely to be a mid-to-high teens percentage decline from the interim NAV of £108m.
Argentina-focused oil and gas company Phoenix Global Resources (PGR) says that it is in discussions with 84% shareholder Mercuria Energy Group concerning a cancellation of its AIM quotation and a cash offer to purchase shares from independent shareholders at 7.5p each.
Asia-focused investment company Jade Road Investments (JADE) is selling part of its stake in China-based wind turbine blade manufacturer Meize Energy Industries. It has a 7.2% stake and will receive $1.2m in cash in three tranches, leaving it with a 6.3% stake valued at $10m. The company has already received $400,000 with the rest due for payment in July and August.
Solid State (SOLI) has been awarded a contract by Transport for London for a new one person operation CCTV system for the Piccadilly line upgrade.
MAIN MARKET
Oil services provider Lamprell (LAM) has received a non-binding indicative cash offer from 25.1% shareholder Blofeld Investment Management. Lamprell requires funding of $75m over the next two months and that is making the board seriously consider the offer even though it is at a large discount to the previous closing price. Financing opportunities are being explored. An attempt to raise $150m via a share issue did not meet with approval by all the institutional shareholders.
Roquefort Therapeutics (ROQ) has announced its second acquisition in seven months. Cancer medicines company Oncogeni Ltd is being acquired for the issue of 50 million shares and there is a placing to raise £1.01m at 14p a share. Two pre-clinical families of innovative cell and RNA oncology medicines come with Oncogeni, as well as a laboratory facility in Stratford-upon-Avon
CYBA (CYBA) is changing its name to NARF Industries. Steve Bassi will become chief executive.
Fackelmann Gmbh has increased its stake in cookware retailer Procook (PROC) from 3.83% to 4.63%.
Slovenia-based Graft Polymer (GPL) has reached cash flow positive in its core business. New equipment has been ordered in order to double capacity.
OTHER MARKETS
Pacific Road Resources Fund II is making a 0.01p a share cash bid for former AIM company Firestone Diamonds (FDI), which values the company at £79,000. Pacific Road also owns all the Firestone bonds and hopes to restart production at the Liqhobong open cast diamond mine. Firestone originally joined AIM in August 1998 at 114p a share. Since 2020, the shares have been traded by JP Jenkins and the latest price is 0.2p. The bidder owns 30.4% with a further 4.25% owned by affiliated funds. Resource Capital, which owns 34.7%, intends to accept.
Andrew Hore
Quoted Micro 25 April 2022
AQUIS STOCK EXCHANGE
Gunsynd (GUN) had net assets of £5.99m at the end of January 2022. That includes £1.08m in cash. Investee company Low6 is still seeking a listing in Toronto via 1319735 BC Ltd. Mining investee company Charger Metals plans to start its maiden drilling programme at the Coates project in Western Australia. First Tin joined the Main Market after the period end.
Tectonic Gold (TTAU) has appointed Ian Bruce as exploration manager, and he will restart the drilling at Specimen Hill. A permit has been secured in the same area for Taree Fields, which was historically a high-grade copper mine. Deep Blue Minerals, where Tectonic owns 10%, raised $236,000 from diamond sales.
Lombard Capital (LCAP) has agreed in principle the sale of LCP Financial to SBS Group for £4.2m in shares and the repayment of a £370,000 intercompany loan. Lombard Capital will acquire Waste and Recycling Services before the sale is completed. Management will be seeking shareholder approval to leave Aquis.
ChallengerX (CXS) has signed a five-year agreement with The American Arena League for the use of the SaaS-based platform CXSports. This will help to promote the league and generate revenues.
Blockchain and open finance investor Coinsilium (COIN) has agreed to purchase $200,000 of YELLOW tokens for the Yellow Network, which is a cross chain overlay, financial information exchange and distributed infrastructure network.
Adam Pollock, who was previously head of corporate and institutional at WH Ireland, has become a director of Oberon Capital, the broking business of Oberon Investments Group (OBE).
Vulcan Industries (VULC) has raised £48,000 at 1.37p each.
All Star Minerals (ASMO) is changing its name to Marula Mining.
AIM
TV programmes producer Zinc Media (ZIN) lost on £2.61m on revenues of £17.5m in 2021. There is already £13m of booked revenues for 2022 and there is potential further business worth £35m that could be delivered this year. A greater proportion of the work being won is for series, rather than one-off programmes. Zinc Communicate, which produces non-broadcast content and podcasts, is becoming increasingly important. The timing of the orders is uncertain and not all the work will materialise, although £8m is at an advanced stage. This suggests that 2022 revenues should be much higher, and Zinc Media should become profitable and cash generative. Last year, the cash outflow from operations was £245,000. Net cash was £2.18m at the end of 2021.
Churchill China (CHH) is beating its rivals thanks to its capital expenditure and investment in marketing, and it has a better order book than normal for this time of year. In 2021, pre-tax profit bounced back from £800,000 to £6m as revenues recovered from £36.4m to £60.8m. The total dividend is £24p a share, while there is £19m in the bank. Churchill China has taken on more than 200 additional staff in the past year and they still require training. Last autumn, selling prices were raised by 12% and a 5% increase is planned for May. That will help to offset the cost rises. Pre-tax profit is expected to be between £8m and £8.8m this year.
Tungsten West (TUN) is reviewing development options for the Hemerden mine because of rising costs. This will lead to a two-month delay. This could lead to a focus on sodium tungstate production because it is higher value than ammonium paratungstate.
Solid State (SOLI) continues to best expectations. Revenues for the year to March 2022 will be around 6% ahead of previous expectations at £85m, while there is a 11% upgrade in pre-tax profit to £7.4m.
Seeing Machines (LSE: SEE) has secured a collaboration with Magna to develop and demonstration model driver monitoring system (DMS) combining, camera, electronics and interior mirror technology. This should help Seeing Machines win more market share.
Plant-based polymers developer Itaconix (ITX) says volumes continue to increase, particularly in the dishwashing detergent ingredients market.
Coral Products (CRU) is trading ahead of expectations in the year to April 2022 and there is a second interim dividend of 0.4p a share. There could also be a final dividend to add to this year’s total of 0.9p a share.
MAIN MARKET
Nuclear-related business has helped structural steel supplier Severfield (SFR) to enjoy record orders. Logistics, infrastructure and data centres are other areas of high demand. Longer-term, battery manufacturing plants could be another booming area. The current order book is worth £479m. The 2021-22 figures will be in line with expectations with pre-tax profit forecast to improve from £24.3m to £28.1m. This year’s revenues should be better than previously expected, but profit expectations have been maintained because of higher steel costs. The higher steel prices mean that higher working capital is required.
Full year profit of kitchenware retailer ProCook Group (PROC) will be slightly lower than expected at £9.5m. ProCook has grown revenues in a market that is slightly down
J Smart Contractors (SMJ) reported a decline in interim revenues from £5.75m to £5.16m, while pre-tax profit jumped from £890,000 to £6.35m, although that was due to a gain on the sale of investment properties of £6.06m. It is unlikely that full year profit will be higher this year. Net assets are £117.2m, including £76.2m of investment properties and net cash of £27.6m. The interim dividend is 0.96p a share and the ex-dividend date is 5 May.
Andrew Hore
Quoted Micro 18 April 2022
AQUIS STOCK EXCHANGE
Brewer Adnams (ADB) increased its revenues from £50.7m to £57.4m in 2021 and the loss was reduced from £4.3m to £1.39m. There is no final dividend. Net bank debt was £11m. The pension liability more than halved from £11.2m to £5m. Beer volumes were maintained.
S-Ventures (SVEN) says headwinds in the economy have held back sales of its healthy snacks. Even so, like-for-like sales are currently 10% ahead of last year. Cost savings of £300,000 a year have been found at the Pulsin plant-based products business.
Watchstone Group (WTG) subsidiary WTGIL Ltd has lost its VAT appeal. It is considering whether to take the appeal to the Upper tax Tribunal.
Cannabis-related products supplier Voyager Life (VOY) has opened three stores and relaunched its website in the year to March 2022. The Ascend Skincare brand was launched. There was £14.3m in the bank at the end of March 2022. Monthly overheads were just under £50,000. In the 16 months to March 2022, revenue reached £178,000. Revenues are steadily growing. Voyager is still waiting for ingestible products to receive authorisation from the authorities.
KR1 (KR1) has invested $700,000 in Zeitgeist in return for one million ZTG tokens. Zeitgeist is an application specific blockchain for prediction markets and futarchy.
Eastinco Mining and Exploration (EM.P) says that Aterian Resources has been awarded a ten year mining licence for the Agdz copper and silver project in Morocco. Eastinco has agreed to acquire Aterian from AIM-quoted Altus Strategies (ALS). Once the Aterian acquisition is completed Eastinco plans to move to the Main Market.
Goodbody Health (GDBY) says subsidiary PhytoVista Laboratories has been granted a licence to handle Schedule 1 controlled drugs.
Chris Akers has increased his stake in TECC Capital (TEC) from 10.6% to 11.1%. Robert Johnson reduced his stake to below 3%. Chief executive Kiran Morzaria has bought 54,422 shares in Cadence Minerals (KDNC) at 18.37p a share.
Vulcan Industries (VULC) has extended two loans with £1.225m payable on 16 April 2023 and £629,000 on 4 July 2023.
EPE Special Opportunities (ESO) had net assets of 368.49p a share at the end of March 2022.
AIM
Recycling Technologies has pulled its AIM flotation after its chief executive stepped down due to personal reasons. It had apparently raised the money it was seeking but the late change meant that the company has decided to have a smaller private fundraising before having another attempt at floating on AIM.
Loadbanks maker and hirer Northbridge Industrial Services (NBI) is able to concentrate on its core business following the disposal of Tasman. In 2021, revenues from continuing operations were one-fifth higher with a greater proportion of hire business. Pre-tax profit trebled to £3.3m, before the restructuring and convertible loan note redemption costs of £7.6m, which were predominantly asset write-downs. There was a 1p a share dividend. The company is changing its name to Crestchic.
Online electricals retailer Marks Electrical (MRK) reported full year revenues that were 44% ahead at £80.5m and EBITDA margins are 9%. The fourth quarter revenues to March 2022 were 19% ahead at £20.7m. The comparatives are particularly strong because they were during a period of lockdowns when online sales made up a higher proportion of appliance sales. Pre-tax profit is still expected to decline from £6.8m to £6.1m in 2021-22 due to additional overhead costs.
Cambridge Cognition (COG) is building up its clinical trial business. Full year revenues increased by 50% to £10.1m and the digital health company moved into profit. There was £6.8m in the bank at the end of 2021. At least £7.5m of the year-end order book of £17m should be recognised in 2022. More contracts have been secured since the end of 2021.
Asset management services provider MJ Hudson (MJH) grew interim revenues by 48% to £23.4m with particularly strong growth in ESG-related services. Underlying pre-tax profit quadrupled to £1.6m. Net debt excluding leases was £13m at the end of December 2021. New business activity remains strong and there is no direct effect from the weak stockmarkets on revenues. Guernsey-based Saffery Champness Fund Services was acquired during the period.
Telematics firm Microlise (SAAS) reported revenues of £88.2m in the 18 months to December 2021. Annual revenues grew by 17%. Existing customers generated £35.6m in 2021 and there is hardly any customer churn. Annual recurring revenues are £38.9m.
AEX Gold (AEXG) has announced exploration results from the iron oxide, copper, gold project at Sava in southern Greenland. These showed that there is mineralisation. There are three high priority targets.
The lock-up period for shares in Poolbeg Pharma (POLB) distributed by Open Orphan (ORPH) ends on 20 April and new investors are hoping to buy up to £1.6m of shares at 5.9p each. The share price subsequently recovered to 6.7p, having been sliding in recent months ahead of the end of the lock-up period when there were concerns there could be a significant number of shares coming onto the market.
Ince (INCE) is going ahead with the acquisition of broker Arden Partners (ARDN) even though it is losing its nominated adviser status. The merger should be completed on 29 April.
MAIN MARKET
Financials Acquisition Corp (FINS) is a shell looking for a financial services acquisition, particularly in the insurance area. The focus is technology that is used to make the insurance sector more efficient. There was £150m raised at £10 a share. The share price ended the week at 997.5p.
It took a year to secure the transaction, but DG Innovate (DGI) has completed its reversal into Path Investments. The purchase of the electric drive and sodium-ion battery technology developer cost an initial £32.4m in shares at a deemed price of 0.6p a share, which was well above the market price. There was also £2.55m raised at 0.5p a share. The shares opened at 0.45p and ended the week at 0.305p.
Materials developer HeiQ (HEIQ) estimates that revenues were $57.9m thanks to a good fourth quarter. This is despite deferring revenues and $1m in operating profit from technology milestones for the agreement with the Lycra Company for its AeoniQ material into 2022. Operating profit is expected to be $3.4m, compared with the $4m forecast. Revenues are expected to grow by one-fifth this year.
Natural ingredients supplier Treatt (TET) grew interim revenues by 9% to £66.3m. The operating profit will be second half weighted.
Andrew Hore
Quoted Micro 4 April 2022
AQUIS STOCK EXCHANGE
In 2021, Good Energy (GOOD) revenues were 12% higher at £146m, while underlying pre-tax profit recovered from £500,000 to £2.6m. Since the year end the sale of the generating assets has boosted the balance sheet making it debt free. A final dividend of 1.8p a share takes the total for the year to 2.55p a share. Investment in billing platforms will help improve efficiency. The Zap-Map EV charging services business remains a focus of growth, along with an accelerating smart meter roll out. Even though trading conditions are tough, Good Energy could improve its profit this year.
Brewer Shepherd Neame (SHEP) is returned to profit at the interim stage, and it is paying an interim dividend of 3.5p a share. In the six months to December 2021, revenues increased by 55% to £78.7m, which is similar to the six months to December 2019. A loss of £7.2m was turned into a profit of £5.4m. Net debt is £82.4m after paying delayed VAT liabilities. Net assets are 1176p a share, excluding property revaluations. In the 13 weeks to 26 March 2022, like-for-like managed pub sales are 10% ahead, but it is a weak comparative. Costs are increasing and Peel Hunt has trimmed its full year pre-tax profit forecast from £8.6m to £7.2m.
ProBiotix Health (PBX) started trading on the Access segment having raised £2.5m at 21p a share. The share price ended the week at 21.5p, valuing the company at £26.2m. The company has been spun-off by OptiBiotix Health (OPTI), which retains a 44% stake after issuing ProBiotix shares to its own shareholders. They will not be able to deal in the shares for nine months. The core product developed by ProBiotix is LP-LDL ®. Studies have shown that the product can reduce cholesterol levels.
AIM-quoted European equities exchange operator Aquis Exchange (AQX) joined the Apex segment of the Aquis Stock Exchange on the same day as it reported full year figures. In 2021, revenues were 42% ahead at £16.2m, while pre-tax profit jumped from £470,000 to £3.22m. Net cash is £14.1m, after spending £1.1m on buying back shares. The company’s market share of pan-European trading improved from 4.7% to 5.2% and the purchase of the non-displayed matching pool of UBS could add a further 0.6% of market share. Liberum forecasts further growth in pre-tax profit to £4.2m this year.
Oberon Investments (OBE) is raising £3.4m at 6p a share in a significantly oversubscribed placing. The broker and investment manager wants to spend the cash on expanding its corporate finance and wealth management operations.
Pharma C Investments (PCIL) invested £100,000 in AIM-quoted Celadon Pharmaceuticals (CEL), formerly Summerway Capital, at 165p a share. Trading started on 28 March and the share price subsequently fell to 130p. Vertigrow, which was established in 2018, reversed into Celadon and it grows indoor hydroponic, high THC cannabis, which will be used for medicines to treat chronic pain. A Home Office licence to legally grow medicinal cannabis was received in July 2021 and it has been renewed until January 2023.
KR1 (KR1) has invested $1.5m in Subspace Labs Inc and it will receive a yet-to-be determined number of tokens. Subspace Network is an eco-friendly blockchain that enables scalable chain storage and computing.
Gunsynd (GUN) owns 1.25 million shares in Media Tech SPAC, which is acquiring Scandinavia-based Drylab A/S, which has developed a subscription-based film and TV production platform. The technology allows reviewing and sharing of filmed takes in real-time, uploads those filmed takes to a cloud-based platform and saves time and costs. The service is designed to work without internet access.
Vulcan Industries (VULC) has sold M and G Olympic Products, which manufactures architectural metalwork, for £1. This is part of refocusing on fabrication businesses.
Cadence minerals (KDNC) has agreed to sell its 31.5% stake in Lithium Technologies and Lithium Supplies in return for £3.72m.
The attempt to remove the chairman and the other resolution put forward at a requisitioned general meeting of Love Hemp (LIFE) were heavily defeated.
Pioneer Holdings Inc (PNER) has acquired Crowdform, which creates apps and websites for brands and start-ups.
Trading in Hot Rocks Investments (HRIP) shares was restored after it reported 2020-21 results and interims to September 2021. There was cash of £93,000 and net assets were £788,000 at the end of September 2021.
Tectonic Gold (TTAU) had £396,000 in the bank at the end of 2021 and management says that it is well funded even though there have been delays to exploration.
Lombard Capital (LCAP) had net liabilities of £2.29m at the end of 2021. The directors are trying to refinance the company.
Hydrogen Future Industries (HFI) has incorporated a subsidiary to develop wind and water-based hydrogen production systems.
Evrima (EVA) has replaced corporate adviser Keith Bayley Rogers with Novum Securities.
Kasei Holdings (KASH) says that its chair Jane Thomason Abigail subscribed £150,000 for new shares at 20p each.
AIM
Digital payments business Boku (BOKU) improved its underlying pre-tax profit from $8.8m to $11.8m in 2021. Longer-term, eWallet activity will help to accelerate growth. Monthly average cash balances are running at $50.8m. Boku will be hit by the loss of Russian revenues that were likely to be around $1.5m.
NWF (NWF) says that its fuels business is making a profit of 2p a litre, compared with 1p a litre under normal circumstances. This will boost cash flow, but it is not likely to be repeatable. Full year profit will be much better than expected.
Artisanal Spirits (ART) achieved strong growth in the UK, China and the US last year. Member lifetime value increased from £932 to £1,445, helped by retention rates improving to 77%. The investment in casks of whisky is paying off with the value of the stocks increasing by 26%. Current year revenues are growing by 30%.
EKF Diagnostics (EKF) increased 2021 revenues by 25% to £81.8m. Even stripping out one-off Covid business, the growth was 14%. Pre-tax profit improved from £15.4m to £21.4m. Net cash was £19.6m at the end of 2021, although that was prior to an additional investment in Verici Dx (VRCI). Some of the cash pile is being invested in expanding the fermentation capacity in Indiana. There are plans to buy back up to nine million shares.
Employee benefits services and insurance provider Personal Group (LSE: PGH) beat expectations with 2021 even though pre-tax profit declined from £8.8m to £4.7m as the effects of the original lockdown showed through in the figures. There will also be a delay in the recovery coming through in better profit. The total dividend was reduced from 18.4p a share to 10.6p a share. Net cash is £20.3m.
Brand Architekts (BAR) is making a recommended bid for fully listed InnovaDerma (IDP), which has regularly disappointed investors. The offer is 7p in cash and 0.3818 of a Brand Architekts share for each InnovaDerma share, which values the skincare company at £13.6m. Brand Architekts has a strong balance sheet and will be able to improve the marketing for the combined group’s products.
Windward (WNWD), which supplies AI-based software for real-time marine and shipping information, doubled its customer base last year. There is an increased need for information to stop breaches of sanctions following the Russian invasion of Ukraine, as well as the ongoing requirement to track sea cargos. Windward is loss-making, but revenues should build up significantly as marine compliance requirements become more stringent. Net cash is $39m and this will provide the funds for Windward to achieve its growth forecasts.
SIPPs admin services provider Curtis Banks (CBP) improved pre-tax profit from £13.4m to £14m in 2021. The growth was held back by delays in technology projects. The dividend is maintained at 9p a share. This was achieved despite a decline in interest income. The higher interest rates will not make a significant difference until 2023. Investment in systems will improve efficiency.
Construction and building software supplier Eleco (ELCO) grew revenues from £25.2m to £27.3m, while pre-tax profit improved from £4.9m to £5.3m. Eleco is transitioning to a SaaS-based model and that will hold back short-term revenues growth. Eleco increased its full year dividend from 0.4p a share to 0.6p a share.
Great Western Mining (GWMO) has completed the road to its Mineral Jackpot properties in Nevada and that will help it to exploit spoil heaps. There are also plans to drill five shallow exploration holes in the area.
MAIN MARKET
Repair and maintenance services provider Mears (MER) reported a 2021 pre-tax profit of £25.6m on revenues of £878m as local authority repair and maintenance activity returned to normal levels. Mears made a loss in 2020. The order book is worth £2.4bn.
Beacon Rise Holdings (BRS) joined the standard list with nine shareholders owning most of the shares. Prior to flotation £1.07m was raised at 100p a share. The current bid/offer spread is 100p/400p. Beacon Rise Holdings is seeking acquisitions involved in primary and secondary related education technology. This could be software or hardware that facilitates active learning. Pro forma net assets equals the cash of £744,000.
Rockpool Acquisitions (ROC) has terminated its proposed acquisition of Greenview Gas. Another party will acquire the business. Rockpool has received £1.2m from Greenview, which is a small premium on the loan provided plus interest.
Telecoms services provider Toople (TOOP) says first quarter revenues are 9% ahead of the previous fourth quarter, while gross profit is 17% higher.
Andrew Hore
Quoted Micro 28 March 2022
AQUIS STOCK EXCHANGE
Arbuthnot Banking (ARBB) returned to profit in 2021 and it is paying a final dividend of 22p a share, having already paid 37p a share for the financial year. Net assets are 1315p a share. Slater Investments has a 7.05% stake.
S-Ventures (SVEN) is acquiring Market Rocket Ltd, which is a digital agency that helps brand owners to sell their products, for an initial £2.25m. There could be further shares issued if performance targets are met. In the year to March 2021, revenues were £500,000 and this year they will be much higher. This is a profitable business.
British Honey Company (BHC) has raised £540,000 after expenses at 80p each. This cash will finance product development, costs related to reducing expenses and fund growth. Mark Jones has been permanently appointed as chief executive. The company is changing its name to Union Distillers.
Vulcan Industries (VULC) is acquiring Aftech, a sheet metal fabrication company, for £1.55m in shares issued at 1.257p a share, plus 24.7 million warrants exercisable at 3p a share. Services provided include laser cutting, bending and forming and the acquired business fits well with existing subsidiaries. In the year to November 2021, Aftech generated revenues of £1.18m and EBITDA of £266,000 and it has debt of £155,000.
AIM-quoted Asimilar (ASLR) plans to join the access segment of Aquis on 4 April. The technology investment company focuses on areas including big data, machine learning and Internet of Things. The corporate adviser is Oberon Capital. Chris Akers has a 6.88% stake and Nigel Wray a 9.43% shareholding. Net assets were £41.5m at the end of September 2021.
VVV Resources (VVV) has signed a conditional agreement to acquire a company that owns the Mitterberg copper project in Austria and a 49% stake in the Shangri La polymetallic project in Western Australia, which takes VVV’s share to 100%.
EPE Special Opportunities (ESO) increased its NAV from 437.6p a share to 455.7p a share in the 12 months to January 2022. However, the Luceco share price has fallen back since then. The Luceco stake was reduced to 22.1% last year. Cash was £27.6m at the end of January.
Capital for Companies (CFCP) had cash balances of £4.19m at the end of February 2022. Net assets were 68.4p a share, following the payment of 1.5p a share dividend on 3 March.
Jason Brewer has joined the board of All Star Minerals (ASMO) and been appointed as chief executive. The acquisition focus has switched to near-term production and revenue generating mining assets.
AQRU (AQRU) has entered a partnership with institutional lending platform owner Maple Finance, which will offer AQRU customers enhanced yields in decentralised finance. Yields could be up to 15%. The offering will be integrated into the AQRU mobile and web-based platform.
Clean Invest Africa (CIA) has obtained a new strategic investor and there could be more to come. Ramin Salsali has invested £302,276 at 0.5p a share to take a 4.67% stake. He believes that the CoalTech technology can help to solve the problem of 33 billion tonnes of toxic coal fines. The technology can also pelletise other materials. Several testing phase projects are at an advanced stage.
AIM
Cyber security software supplier Kape Technologies (KAPE) reported 2021 figures in line with its trading statement with pre-tax profit of $75.2m. This was without any significant contribution from the ExpressVPN acquisition, which was made at the end of the year. Pre-tax profit could more than double to in excess of $150m this year.
Geospatial software provider IQGeo (IQG) beat expectations for 2021 with a much lower loss of £2.7m. Annualised recurring revenues were £8.2m. This year the company should move towards breakeven.
Restaurant operator Tasty (TAST) bounced back into profit last year. In the 52 weeks to 26 December 2021, revenues improved from £24.2m to £34.9m. There was £11m in the bank at the end of 2021 and there are £1.25m of borrowings to offset against this. Even if deferred payments are taken into account, then underlying net cash is still £6.8m. Net assets are £1.9m.
Peel Hunt has upgraded its 2022 forecast for promotional goods platform operator The Pebble Group (PEBB) following the recent 2021 figures. Even so, pre-tax profit is forecast to dip from £10.2m to £9.9m.
Leather processor Pittards (PTD) returned to profit in 2021, but cost increases mean that WH Ireland has reduced its 2022 pre-tax profit forecast. Pre-tax profit is expected to be flat at £500,000. Net assets are 101.9p a share.
AI-enabled wound imaging technology developer Spectral MD (SMD) has made excellent progress since floating last year. Studies of the DeepView system have been positive. The technology enables earlier intervention to help wounds heal quicker than they would have done. A validation study for patients with diabetic foot ulcers is planned and could lead to an application for FDA clearance by the end of the year.
Judges Scientific (JDG) increased pre-tax profit from £13.7m to £18.1m in 2021. Revenues recovered in all geographical regions. The order intake in the first eleven weeks of this year is slightly ahead of the 2021 figure. Net cash is £1.4m and cash generated from operations will mean that the cash pile will build up ahead of any acquisitions.
MAIN MARKET
LED lighting and wiring accessories supplier Luceco (LSE: LUCE) reported an increase in 2021 underlying pre-tax profit from £28.7m to £37.4m on revenues increasing from £176.2m to £228.2m. The total dividend was raised from 6.2p a share to 8.1p a share and it is more than twice covered by earnings. Luceco has moved into the electric vehicle charging market with the purchase of residential EV charge point supplier Sync EV for £10m – it already had a 20% stake, so the latest outflow is £8m. Annual revenues are £4m.
LeakBot reversed into Spinnaker Acquisitions to form Ondo Insurtech (ONDO). The total cost is £9.8m made up of cash of £1.6m, loan notes of £6.4m and 15 million shares issued at 12p each, including 1.36 million shares issued to Ondo Insurtech chief executive Craig Foster. The LeakBot device uses internet of things technology to identify leaks and stop them before they become more substantial. The core client base is home insurers, which can save money on claims. The share price started at 10.5p and fell to 9p by the end of the week.
RC365 Holding (RCGH) was set up to acquire Hong Kong-focused Regal Crown UK, which has developed payment gateway technology and provides other IT services. The holding company raised £2.02m at 6.2p a share, although £800,000 went on float expenses. The shares ended the week at 7p.
Beacon Rise Holdings (BRS) is the latest standard list shell, and it is highly illiquid with most of the shares owned by nine shareholders. On Sharepad.co.uk there are no trades reported, and the bid/offer spread is 100p/400p. That suggest a mid-price of 250p or a notional 150% gain – although the bid price is equal to the subscription price. Pro forma net assets equal the cash of £744,000.
Andrew Hore
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
Quoted Micro 10 January 2022
AQUIS STOCK EXCHANGE
Hydrogen Utopia International (HUI) has agreed an exclusive, non-transferrable licence for the distributed modular gasification technology developed by Powerhouse Energy, and this covers Poland, Greece and Hungary. There is also an initial agreement in Bulgaria. The technology turns waste plastic into syngas. Hydrogen Utopia has raised £3m at 7.5p a share, which values the company at £28.8m. The share price has risen to 13.75p. There has already been work done on developing a facility in Poland. The initial cost could be €10m and the facility in Poland could be on stream in 2023. Hydrogen Utopia is targeting places where EU funding or private sector cash is available to finance investment. Even so, the company will need to raise more cash, but not for 18 months.
Vulcan Industries (VULC) increased interim revenues from £2.19m to £2.72m and the loss was reduced from £1.56m to £951,000. Third quarter activity is improving and the acquisition of Aftech should be completed during January, although the effective date is 1 December, and this will help the second half, as well as enhancing earnings. Vulcan has raised £224,000 at 1.6p a share.
British Honey Company (BHC) says that 2021 sales will be at least £8.4m and there is a strong order book for the first quarter of 2022. Production and dispatch will be consolidated at the Market Harborough distillery and the Buckinghamshire office and distillery will be closed.
Ace Liberty and Stone (ALSP) has exchanged contracts on the acquisition of a property in Stafford that is let to Iceland Foods. The purchase price is £1.26m and the annual rent is £95,000. Ace Liberty has raised £11.85m from disposals. There were £200,000 of convertible loans converted into shares and there is £375,000 of convertible loans outstanding.
Apollon Formularies (APOL) has renewed three medical cannabis licences approved by the Jamaican government.
EPE Special Opportunities (ESO) is stopping buying back its shares. It has bought 628,844 shares in the past month.
Trading in the bonds of Belvedere Leisure has been suspended because the annual report has not been published. The audit should be completed by the end of the month. Trading in Lombard Capital (LCAP) shares has also been suspended. Although the results for the year to June 2021 have been published Aquis has queried the audit report relating to the recoverability of loans. Lombard Capital has net liabilities of £1.57m.
AIM
Facilities by ADF (ADF) is the first AIM new admission of 2022. The company provides vehicles and services to the film and TV industry, predominantly in the UK but also in Europe. The £13m net raised at 50p a share that Facilities by ADF has raised will be invested in much needed additional capacity. The company is already nearly fully booked for this year. The company has a fleet of more than 500 vehicles and trailers. This includes artiste trailers, make-up units, generator units and transport vehicles. This could increase to 700 by the end of 2023. Unsurprisingly, revenues fell from £15.9m to £8m in 2020 because lockdowns affected TV and film production. There has been a sharp recovery in the first half of 2021 with revenues reaching £11.5m, which is nearly as much as in 2018.
Conroy Gold and Natural Resources (CGNR) has signed the joint venture agreement with Turkey-based Demir Export. This covers licences held along the 65km district scale gold trend in the Longford-Down Massif in Ireland. The plan is to develop an initial gold project and start mining. Phase 1 will involve Demir Export investing €5.5m to earn 25%, then another €4.5m to earn a further 15%. The final phase will involve the investment of additional funds by Demir Export so that the project will reach construction ready status. That will take the stake to 57.5%. Regulatory consent is still required.
Restaurants operator Tasty (TAST) says that second half trading was extremely encouraging, but December, normally the best month of the year, was disappointing because of Covid uncertainty. There are 50 restaurants trading with the other four due to reopen later this year. There are two or three restaurants that might be sold.
Nicholas Slater has increased his stake in upmarket kitchens supplier John Lewis of Hungerford (JLH) from 4.78% to 6.07%. John Llewellyn Lewis has reduced his stake from 22.15% to 19.57%, while non-exec Alan Charlton has bought 2.5 million shares at 1.2p a share, taking his stake to 8.73%.
MAIN MARKET
Slovenia-based Graft Polymer (GPL) is a developer of polymer modification and drug delivery systems. More than 50 products have been launched. In 2020, GraftBio was started to develop IP for biopharma applications. Revenues remain small but there are opportunities for them to grow significantly. The business should have strong operational gearing. A placing raised £5m at 21.5p a share. Graft Polymer intends to invest in capital equipment and further product development. A new production line will cost £2m and some of the other cash will go on lab upgrades and other investment. Management also wants to expand the distribution network and secure deals with more partners.
AdvancedAdvT (ADVT) has acquired 12 million shares in advertising agency M&C Saatchi (SAA) at 200p a share and the standard list shell approached the advertising agency with a bid proposition based on a share swap. AdvancedAdvT had £129.2m in the bank at the end of June 2021, so this investment is less than one-fifth of that cash. Vin Murria is a director of both companies, and she has a 13.2% stake in M&C Saatchi. The independent directors of M&C Saatchi say that they do not believe in the logic of a merger and also do not think the valuation put on the business is high enough.
Online retailer Made.com (MADE) says that the UK and Europe each achieved 38% growth over 2021. Average order values were 8% higher and active customers increased by 26%. The supply chain is a worry, but management says that lead times are three to four weeks. This follows the deferral of around £40m of sales to the first quarter of £40m. Made.com is still expected to lose money in 2021 before moving into profit in 2022.
Motor dealer Lookers (LOOK) has sparked another upgrade with its trading statement. Peel Hunt has increased its 2021 pre-tax profit forecast from £82.6m to £86.7m. Strong margins continued in the fourth quarter. However, those margins may not continue.
Macfarlane (MACF) has sold its labels business for £6.4m. This business generated a profit of £300,000 in 2020.
Andrew Hore
Quoted Micro 13 December 2021
AQUIS STOCK EXCHANGE
Gibraltar-based RentGuarantor (RGG) provides a rent guarantee service to tenants in the private rental sector. It has joined the Access segment having raised £125,000 at 200p a share. Chief executive Paul Foy has agreed to lend the company £200,000. The business is currently loss-making and has to grow much bigger to get to the point where it is breaking even. The share price ended the week at 210p, although there were no reported trades.
Incathera (INC) continues discussions with two global cosmetics companies about the commercialisation of the Sol skin cancer treatment and started talks with two more. There was £627,000 in the bank at the end of £627,000 and this should last well into next year.
Capital For Colleagues (CFCP) has raised £1.95m at 64p a share and all the directors are participating in the placing. This will provide additional cash for investment. The company had £1.91m in the bank at the end of August 2021. NAV was 69.71p a share at the end of August 2021. A final dividend of 1.5p a share is payable on 3 March.
Lombard Capital (LCAP) lost £228,000 in the quarter to September 2021. The company requires cash, and the Gaskell House waste and recycling property is up for sales. Those proceeds will not be enough to pay off the bonds when payment is due at the end of January 2022. The plan is to try to extend the redemption date.
TECC Capital (TEC) had £1.1m in the bank at the end of September 2021, which is the same as the NAV. Acquisitions are being evaluated.
Clean Invest Africa (CIA) more than halved its interim loss to £553,000. Net liabilities have increased to £3.22m. More cash is required to get the most from the CoalTech technology.
Coinsilium Group Ltd (COIN) says investee company Greengage is withdrawing the application for a Gibraltar banking licence. The plan is to pursue an e-money licence and then apply for a UK bank licence.
KR1 (KR1) has paid the performance fee of £4.15m to Reflexivity Research, which is owned by the executives of KR1. There will be £830,000 paid in cash and the rest in shares. KR1 contributed 350,000 Poldadot in the Astar, formerly Plasm, crowdloan.
Sativa Wellness Inc (SWEL) generated record revenues in one week and that takes revenues for the eleven months to November 2021 to £13.8m. The growth is coming from the testing clinics.
Kevin Soltani has stepped down as chieve executive of Semper Fortis Esports (SEMP) and Keith Harris will be interim executive chairman.
Chris Akers has raised his stake in Quetzal Capital (QTZ) to 17.2%. Burns Singh Tennent-Bhohi increased his stake in Gledhow Investments (GDH) to 8.26%. Scwiar Capital has raised its shareholding in Helium Ventures (HEV) to 10.9%.
EPE Special Opportunities (ESO) had net assets of 511.93p a share at the end of November 2021. Share buybacks are planned and 150,000 shares were acquired at 350p each.
Pioneer Media Inc (PNER) has raised a further C$400,000 at C$1 a unit (one share and one warrant). This takes the total raised to C$1.5m. Vulcan Industries (VULC) has raised £383,000 via placings at 1.6p a share and 1.5p a share.
NFT Investments (NFT) is applying to list on the NEO Exchange in Canada.
AIM
Cloud video editing platform developer Blackbird (BIRD) is raising £8m at 28p a share with chief executive Ian McDonough investing £380,000. This will finance further technology development and add to the technical staff. There will also be cash for market testing advancements and new products. The potential market is enormous, and Blackbird has only just started to exploit new areas.
Windward Ltd (WNWD) has developed AI-based software that enables real-time information about seafaring vessels to be transmitted to their owners. Israel-based Windward raised £26.3m at 155p a share and it ended the week at 204p. The market capitalisation of £166.5m is high considering the progress made. In the six months to June 2021, revenues improved from $7.11m to $8.09m, while the loss jumped from $1.53m to $4.04m. Annual contract value is $19.7m with 99% of revenues from subscriptions.
Ondine Biomedical Inc (OBI) has returned to AIM and raised £22.3m at 53.41p a share. The share price ended the week at 58.5p. Canada-based Ondine develops photodisinfection-based therapies for drug resistant infections. The light-based technology can reduce inflammation and eliminate pathogens. It originally floated on AIM on 9 August 2004, then focused on dental treatments, and left in 2011. In the six months to June 2021, revenues increased from C$213,000 to C$1.98m, while the loss fell from C$7.48m to C$4.58m.
Redx Pharma (REDX) has received another $10m milestone payment from Jazz Pharmaceuticals as the research collaboration reaches the two year mark.
Antimicrobial technology developer Byotrol (LSE: BYOT) fell back into loss following the Covid-19 boosted revenues in the corresponding interim period. Revenues more than halved from £6.7m to £3.2m. There was £1.9m of cash at the end of September 2021.
4GLOBAL (4GBL) provides sports consultancy services to governments and other organisations, as well as subscription data products. It raised £4m at 91p when it joined AIM.
Nexus Infrastructure (NEXS) returned to profit last year as revenues improved from £125.7m to £137m. Civil engineering services provider Tamdown continued to lose money but the eSmart Networks EV charging installation division moved into profit. Management is considering floating eSmart Networks on AIM or bringing in a strategic investor. The money that Nexus would raise can then be used to acquire a business to broaden the range of services offered by the TriConnex utilities connection division.
MAIN MARKET
Sivota (SIV) has found a potential reverse takeover candidate in the form of Israel-based Apester, which has an interactive digital platform. The plan is to pay $12m for a 53.9% stake in Apester. Sivota wants to raise £11m.
Urban Logistics REIT (SHED) has moved from AIM to the Main Market following a £250m fundraising.
MENA Land (MENA) has lost its listing, trading having been suspended since 2 November 2020.
Argo Blockchain (ARB) has resolved its litigation with Celsius by terminating the lease agreement and paying $6.32m to Celsius, which is handing over title to equipment and paying bitcoin to Argo. November revenues were £8.29m with Argo mining 185 bitcoin.
Andrew Hore