Tristel shares yesterday rose a further 10p to 115p after publication of annual results, which pleased the markets. The results had partly been anticipated as the shares had already risen over 10% from 95p, since the 5th October. Two years ago the shares could be bought for 25p.
In 2014 dividends rose fourfold from 0.4p to 1.62p and this year they have been increased by a further 350% to 5.72p. That is a fourteenfold increase in two years.
Tristel, which listed on AIM in 2005, manufactures products for infection and contamination control and clean rooms, based on its own chlorine dioxide formula and which replaced the main existing product which was toxic.
Results for the last three years show rapid growth, helped by strong overseas demand. Overseas sales rose by 21% in 2014-15 and now account for 35% of total sales. Turnover rose by 14% over last year, EBITDA by 25% and basic earnings per share by 67%.
Stellar Resources (STG) is the latest AIM company seeking an additional quotation on ISDX, following AfriAg (AFRI), which joined on 9 October. Donald Strang is a director of both companies and he is also a director of three other AIM companies – Polemos, Doriemus and Solo Oil. Stellar plans to join ISDX on 23 October. Stellar recently appointed Optiva as its broker. The company’s interests include exploration for gold in the part of Wales that includes the old Clogau mine and 10% of Horse Hill Developments, which owns the majority of the eponymous oil discovery in Surrey. There was £1.37m in the bank at the end of June 2015.
Investment company Lombard Capital (LCAP) has completely changed its board with Russell Darvill and Charlotte Argyle stepping down and Mark Jackson, Graham Jones and Nigel Fitzpatrick appointed to replace them. In the summer, Quetzal Securities withdrew the requisition for a general meeting because Lombard agreed to make board changes. Jackson and Jones were nominated by Quetzal and are both Hull-based – they are an accountant and chartered surveyor respectively. Fitzpatrick is a former director of AIM-quoted oil services provider Global Marine Energy, which was taken over in 2008. A change in investment strategy is possible. At 4.5p (4p/5p) a share, Lombard is valued at £87,000 and it had an NAV of £278,000 – equivalent to 14.5p a share – at the end of March 2015. Lombard’s NAV includes £235,000 worth of investments including 6.7% of ISDX-quoted BWA (BWAP), its investee company, payment cards marketer Prego International, whose shares are traded by JP Jenkins, and online recruiter Elevate Platform. BWA had net assets of £539,000 at the end of April 2014, although the company said that its stake in Prego was worth £513,000 above its book value. At 0.45p (0.3p/0.6p) a share, BWA is valued at £505,000. So this suggests that Lombard could be trading at a significant discount to its NAV, albeit based on illiquid investments.
All Star Minerals (ASMO) has raised £30,000 at 0.1p a share, having already raised £96,000 earlier in the year. All Star had £11,225 in the bank at the end of 2014, following a £269,000 cash outflow during last year. Since the end of last year, All Star has sold some of its mining interests to ISDX-quoted NQ Minerals and the shares it was issued in NQ were worth £800,000 when the buyer joined the ISDX Growth Market. All Star is assessing metals projects around the world. At 0.15p (0.1p/0.2p) a share, All Star is valued at £1.16m.
The closure of steel making facility SSI Redcar and the Eggborough and Liverpool bulk terminals is bad news for coal supplier and materials logistics company Hargreaves Services (HSP). Redcar’s closure is likely to lead to one-off costs of £1.5m and the loss of annual operating profit of £4m, while the terminal closures will lead to a loss of business that will knock a further £1.5m a year off operating profit and cost £700,000 in redundancy costs. This has led to a cut of nearly one-third in this year’s forecast profit and earnings are expected to be around 30p a share. There are opportunities to develop surplus property assets.
A third quarter production statement from iodine supplier Iofina (IOF) reported that crystalline iodine production was 89% ahead of the same time last year at 144 tonnes. This means that Iofina should be on course to produce 552 tonnes in 2015. In the first half of 2015, Iofina cut costs and this enabled it to reduce its loss on lower revenues due to the fall in the iodine price. Net cash declined by $2.2m to $4.8m because of the build up of inventory in the period. Iofina is a low cost producer and even below $30/kg the company should be able to generate cash from its plants – whether it is enough to cover central overheads is another matter.
Lubricants and paper making chemicals supplier GTS Chemicals (GTS) is a Chinese company that is not disappointing the market. The latest interim figures have led house broker SP Angel to upgrade its full year forecast. In the first half of 2015, revenues grew by 39% to RMB415m, while net profit was one-third higher at RMB53m. Both parts of the business grew strongly but the newer lubricants business grew fastest. SP Angel has edged up its 2015 earnings per share forecast to 11.7p – one-third higher than the 2014 figure. The dividend is expected to increase from 1.8p a share to 1.9p a share. The 2016 earnings per share forecast was raised by 3% to 13.2p. Cash flow is a concern for Chinese companies but SP Angel expects GTS to generate cash at a level similar to forecast profit in 2015. Capital investment in the company’s new facility means that there is expected to be a small net debt figure at the end of 2015.
Further drilling news from Mariana Resources (MARL) has extended the resource area for the Hot Maden gold project in Turkey. Mariana still owns 30% of the project following its joint venture partner Lydia’s expenditure on exploration. The previously reported resource was 3 million ounces of gold at a grade of 11.2g/t. RFC Ambrian believes that Mariana’s other exploration interests could be worth between nil and £5m which places a valuation of between £10m and £15m on the 30% stake in Hot Maden. RFC Ambrian estimates that this is equivalent to up to $27/ounce for the initial resource.
Horizonte Minerals (HZM) has completed the placing raising £1.55m at 1p a share – a discount of more than one-third to the market price at the time – that will help to finance the development of Glencore’s Araguaia nickel project and its integration with Horizonte’s existing nickel project in northern Brazil. This enlarged project will be more than double the size of Horizonte’s own project and create one of the biggest saprolite nickel projects in the world. The initial consideration was $2m in Horizonte shares and the total cost is $8m. There will be $1m payable following a feasibility study for the enlarged project and the other $5m when commercial production commences.
Property and civil engineering services provider Waterman (WTM) nearly doubled its profit in the year to June 2015 thanks to a strong UK market. Revenues grew from £68.8m to £80m, while pre-tax profit jumped from £1.4m to £2.7m. The dividend is doubled – for the second year running – to 2p a share. The order book has improved to £130m. Operating margin is 3.3% but Waterman hopes to get this figure up to 6% by 2019. A 2015-16 profit of £3.3m is forecast, which puts the shares, at 85.75p, on 12 times prospective earnings. The forecast yield is more than 3%. Ruffer has trimmed its stake in Waterman to 17%.
DDD Group – Sony’s acquisition of SoftKinetic highlights industry appetite for 3D sensor technologies ahead of PlayStation VR launch.
SoftKinetic’s patented system works similarly to Microsoft’s own Kinect sensors, sending out a field of “distance measurement pixels” using an infrared laser, then measuring how long it takes each of those light beams to travel back to the sensor camera. The result, in current products, is a 3D view of a room at up to 60fps, with resolutions as fine as one centimeter at a one meter distance, according to the company’s website.
The move has obvious implications for Sony’s plans in the virtual reality space, which include the launch of PlayStation VR early next year. Sony’s PlayStation VR prototypes currently require players to hold PlayStation Move wands, which have glowing balls that are tracked by a camera placed by the TV. SoftKinetic’s technology could allow for natural hand-tracking without the need to constantly grip a controller.
The renewed focus on the technology following the acquisition should put the spotlight on DDD’s own SmartCam technology, which performs the user identification and background removal aspects of an infrared sensor without the need for the sensor hardware.
Other recent sector acquisitions include Apple, which bought PrimeSense in late 2014. Microsoft also acquired a couple of Israeli companies prior to that to create their Kinect technology.
Link to the Softkinetic acquisition announcement here
Advanced Oncotherapy (AVO), the developer of next-generation proton therapy systems for cancer treatment, announces that it has signed a joint venture agreement with CircleHealth to operate the Company’s proton beam cancer therapy centre in Harley Street.
Circle, owned by AIM-listed Circle Holdings plc (CIRC) which is an employee co-owned company, runs hospitals and healthcare across the UK. It has nearly 2,000 partners, working across four UK sites.
Under the terms of the agreement, Advanced Oncotherapy and Circle will jointly own a newly formed company into which funding of £6 million will be provided in equal portions by the parties and will cover, inter alia, pre-opening costs and working capital. The arrangement, together with further definitive agreements to be finalised in the coming months, would combine Circle’s clinician-led operating model with Advanced Oncotherapy’s next-generation proton therapy systems for cancer treatment. Once the centre commences operation the equity in the operating company will be owned as to 50.1% by Circle and the remaining 49.9% by Advanced Oncotherapy.
The Harley Street facility will house the UK’s first high energy proton beam cancer therapy centre. Circle Health will take responsibility for all operational and clinical matters at the facility as well as the additional procurement, fit-out and facility testing requirements needed for full commissioning and beyond the testing required during the technical development of the system. Circle Health will also take responsibility for insurance provision for the centre. Advanced Oncotherapy will take responsibility for all technical matters. A number of proposals from international financial institutions concerning the provision of vendor finance for the LIGHT technology in Harley Street are being considered.
The LIGHT (short for Linac Image Guided Hadron Technology) system, is a proprietary proton accelerator that will offer healthcare providers affordable proton therapy systems to treat cancer using a technology that in many instances can produce better health outcomes and lower treatment related side effects. The LIGHT system achieves the required energy levels found in legacy proton therapy machines but in a unit that is a fraction of the size and significantly lower in cost. The compact configuration of the LIGHT system lends itself perfectly to the installation of this technology in such central city locations, and the Harley Street site will house London’s first ever proton therapy unit.
The Company is also in discussions with Circle surrounding an agreement to supply its LIGHT system alongside CircleHealth’s planned new-build independent hospital in Edgbaston, Birmingham.
Steve Melton, Chief Executive of CircleHealth, said: “This is great news for patients, for Circle and for Advanced Oncotherapy. Advanced Oncotherapy is creating a genuinely revolutionary technology, at the cutting edge of cancer treatment. We’re delighted to be working with them. When completed this deal means the expansion of Circle into London – giving us a presence in one of the world’s greatest medical centres – and into cancer care, where there is huge potential for new technologies and exciting new treatments. For Circle, this is a clear signal of our intention to grow and expand, by combining our experience in operations with other organisations’ specialist skills.”
Commenting, Sanjeev Pandya, CEO of Advanced Oncotherapy, said: “Circle Health has a great record for providing innovative healthcare delivery and are the ideal candidate to operate our flagship Harley Street site. Whilst we expect our ongoing business model to focus on Advanced Oncotherapy as a manufacturer of cutting edge proton therapy systems, we felt it was crucial, given the strategic importance of our first site in Harley Street, to have a vested interest in the ongoing operational success of our facility. Working alongside Circle Health, we expect it to transform the UK’s approach to cancer radiotherapy treatment.”
Advanced Oncotherapy Plc
Sanjeev Pandya, CEO
Tel: +44 (0)20 3617 8728
Nicolas Serandour, CFO
Westhouse Securities (Nomad & Joint Broker)
Antonio Bossi / David Coaten
Tel: +44 (0)20 7601 6100
Beaufort Securities (Joint Broker)
Jon Levinson / Zoe Alexander
Tel: +44 (0)20 7382 8300
Walbrook PR (Financial PR & IR)
Tel: +44 (0)20 7933 8780 or email@example.com
Paul McManus / Anna Dunphy
Mob: +44 (0)7980 541 893 / Mob: +44 (0)7876 741 001
Advanced Oncotherapy (AVO) wins Best Technology Award at the AIM Awards 2015.
Sponsored by | Sanlam Securities UK
Picture shows, left to right:
David Snell, Partner and AIM Leader, PwC; David Worlidge, Director, Corporate Finance, Sanlam Securities UK; Robert Rose, Operations and Manufacturing Director, Advanced Oncotherapy plc and Graham Pughe, Chief Accounting Officer and Vice President of Finance, Advanced Oncotherapy plc (winner); and Bev Turner, awards presenter.
Winner: Advanced Oncotherapy plc
Greek tourism has had an excellent summer, save that on the islands which were the main targets for the refugee smugglers, the huge influx of refugees brought an early end to the season, as tourists stayed away in droves.
Traders on one of these islands decided to make good their losses by introducing a dual pricing.system – normal prices for the tourists and the locals and much higher prices for the refugees. The rip off was particularly aimed at the many wealthy Syrian refugees who arrived on the island armed with wads of 500 Euro notes.
Normally any Greek cafe owner will let you recharge your phone for free. Charge to the refugees ? 10 Euros. A small bottle of water – legal price 50 cents – refugee price 2 Euros. Some bread sir, certainly sir, that’s 1 euro per slice, sir.
And it did not end with the pricing rip off. When the bill came there was 2 Euro for the coffee which had neither been ordered, delivered nor drunk, plus a further 5 Euros for 2 glasses of some illegibly scrawled drinks which were similarly a fiction of the cafe owners imagination.
And the scam did not stop there because the receipts which were given to the refugees were handwritten ones from a tear off pad. That way the cafe or bar owner does not have to pay VAT and because the sales are not recorded through the till and the tax man does not get to know about them, not only does the owner keep the VAT on his non existent sales, it does not show in his turnover and profits, so he also escapes income tax. To be fair, cheating the Greek tax man is a traditional way of getting ones own back at corrupt politicians and is a time honoured Greek custom, so evading VAT and tax on the transaction can not be said to have been aimed at the refugees. That is just a bonus, a good little earner.
And how do I know all this. A friend on holiday on this particular island, so outraged by the way the refugees were being ripped off, posed as a refugee just to get some documentary evidence of what was happening, went to a cafe in the port, ordered little more than a starter, a small bottle of water and 2 slices of bread. An itemised handwritten receipt was issued for a total 25 Euros, including all the items which had not been ordered or supplied. I have seen the receipt.
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Is Drastic Dave’s Tesco (TSCO) on the turn? Alan Green discusses with Justin Waite on the ADVFN podcast. Interview is 19 minutes into the podcast.