Home » News and Views » Andrew Hore – Quoted Micro 16 April 2018

Andrew Hore – Quoted Micro 16 April 2018

NEX EXCHANGE   

London Nusantara Plantations has become Panther Metals (PALM) and it has sent out notice of a general meeting on 1 May to enable directors to issue up to one billion shares. This power will expire after 15 months. The company is issuing 17 million shares at 0.1p a share to pay a £17,000 bill from an adviser.

Early Equity (EEQP) had £429,000 in the bank at the end of February 2018. The company raised £705,000 during the year and this has helped to increase the value of the investment portfolio from £594,000 to £1.01m. The NAV has increased from £639,000 to £1.54m. There are plans to raise more cash if its is required for additional investments.

Forbes Ventures (FOR) says that investee company Civilised Bank Ltd has released the banking licence it was granted by the Bank of England because it will not meet the mobilisation deadline. There have been delays in developing the IT needed by the bank so the intention is to reapply when the IT development is further advanced.

AIM

Oil palm plantations operator MP Evans (MPE) is starting to enjoy the benefits of its investment in planting oil palm but there is plenty more to come. The 2017 profit was boosted by a gain on discontinued operations of $68m. The underlying dividend improved from 15p a share to 17.75p a share and there should be continued growth as the plantations mature. The value of the business is estimated at £11 a share.

The Property Franchise Group (TPFG) increased revenues by 23% to £10.2m and this led to a one-third improvement in pre-tax profit to £4.3m. This was despite the loss by online estate agency EweMove, where new management has been put in place. The total dividend is 7.5p a share and there was a modest year-end net cash position. The tenant fee ban could hit the business in 2019 but there is time to mitigate the impact.

Parity (PTY) has completed its turnaround and from now on profit growth will come from growing the revenues. The IT recruitment side was hit by changes in tax treatment for freelancers working for government departments but underlying pre-tax profit was still improved from £1.4m to £1.7m. The recently announced Primark contract will help this year. The higher margin consultancy business continues to grow. Cash generation was better than expected with net debt falling from £4.4m to £1.6m. There should be net cash at the end of 2018. There is also the prospect of a dividend in the medium-term.

D4T4 Solutions (D4T4) had a strong fourth quarter and this strength is set to continue into the first few months of this financial year.

Rose Petroleum (ROSE) boss Matthew Idiens has nearly doubled his stake in the oil and gas company through the acquisition of 800,000 shares at an average price of 2.5p each. Finance director Christopher Eadie has bought 424,715 shares at an average of 2.35p each. Rose recently added to its land position in the Paradox Basin in Utah. Rose acquired a 75% working interest in 3,320 gross acres for $120,000. There has already been a 3D seismic survey of the acreage.

Frontier IP (FIPP) has increased its stake in Fieldwork Robotics by offering additional engineering and development support. That will help to develop a prototype for harvesting vegetables. The stake will rise from 21% to 27.5%.

Boku Inc (BOKU) is growing its revenues and the relatively stable cost base means that it could be on course for a profit in 2018. The direct mobile carrier billing company is expected to grow revenues from $24.4m to $32.7m in 2018 and that would be enough to make a profit. Additional services could further boost long-term revenues.

Starcom (STAR) published a positive AGM statement. First quarter revenues were much higher than expected at $1.5m, which is nearly double the first quarter of 2017. This should help to reduce the loss this year.

RedT Energy (RED) is raising £3.85m at 5.9p a share and this will be invested in growing its energy storage technology business.

MAIN MARKET    

Cadmium-free quantum dots developer Nanoco (NANO) had £8.7m in the bank at the end of January 2018, thanks to the £8m raised in November. The reported interim loss declined from £6.4m to £4.8m. There could be additional revenues in the second half from initial payments by the US partner funding the development of nano-particles for electronic devices. There should also be product revenues from the launch of gaming-focused computer displays in the second half. There should be £5.7m in the bank at the end of July 2018.

Dukemount Capital (DKE) says that it intends to increase the number of rooms and add office space in its second development. This will increase the rental income. These changes have been sparked by the potential housing association buyer of the assisted housing development. The architect will have to make changes to the plans and a two-month extension to the option period for the purchase from the current owner of the building.

China-focused health food products supplier World Trade Systems (WTS) increased its revenues from £8.7m to £19.6m in 2017. There reported profit more than doubled from £906,000 to £1.98m. There is £2.17m in the bank offset by £1.26m of borrowings.

Standard list shell AIQ Ltd (AIQ) has raised £115,000 at 20p a share. This should help to improve the limited liquidity of the shares. A one-for-40 open offer at the same share price could raise up to £253,000 more. The suspension of trading in the shares should be lifted on 19 April. The suspension price was 125p a share. In January, £4m was raised at 8p a share and the limited liquidity led to a ridiculous rise in the share price.

Andrew Hore


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