Home » Posts tagged 'andrew hore'

Tag Archives: andrew hore

Andrew Hore Quoted Micro 29 April 2019

NEX EXCHANGE

Adnams (ADB) says that beer volumes grew year-on-year in the first quarter, helped by low alcohol Ghost Ship and pubs are also doing well. Margins are coming under pressure and gin sales have been hit by increasing competition. A new IT system has gone live.

KR1 (KR1) has cashed inn some of its tokens. It has sold the remaining OmiseGo tokens for $206,000. They were bought for 27.38 cents each and sold for 205.4 cents each. KR1 has sold 50% of its tokens in the Nash Exchange product for nearly $51,000, at a more than doubled price per token, which means that the cost of the remaining 25,000 tokens have been covered.

High Growth Capital (HASH) has appointed Mark De Smedt as chief executive. He is a Belgian who previously worked for recruitment firm Adecco and already owns a 0.6% stake in High Growth Capital. He has been awarded options over 125 million shares at 1.75p each and further options over 150 million shares, which are exercisable at 3p a share, but only if the share price reaches at least 7.5p and stays there for a consecutive period of six months. Girod Equities has taken a 3.81% stake in the company, which is proposing a name change to MESH Holdings.

SG Recruitment (SGRL) has been appointed to recruit international nurses for more than 20 hospitals in England. This is under the Health Education England Global Learners Programme, which offers three year packages. Also, the Royal Berkshire NHS Foundation Trust has appointed SG to recruit 140 nurses. A contract has been gained with Thumbay Hospital in UAE to recruit at least 150 healthcare professionals each year.

Metal Tiger (MNRG) is holding a general meeting on 15 May in order to gain shareholder approval for the directors to issue new ordinary shares without the requirement to offer them to existing shareholders.

AIM  

Franchise Brands (FRAN) says that Micro Rod had a record quarter in the first three months of 2019. System sales were 12.9% higher. The business to consumer franchises have also had a good start to the year.

International payments services provider FAIRFX (FFX) increased revenues by 69% to £26.1m, while pre-tax profit jumped from £900,000 to £6.79m. City Forex was acquired in February 2018 but there was like-for-like growth. In the first quarter of 2019, revenues are 43% ahead at £7m.

Tekcapital (TEK) says that investee company Salarius has secured the first commercial order for its low sodium MicroSalt from a snack food manufacturer. Investee company Belluscura has raised just over £500,000 from a crowdfunding offer, including further investment from Tekcapital. The cash will be used to market and further develop a portable oxygen concentrator called X-PLOR.

More good news from Eden Research (EDEN) as partner Eastman has received a 120 day emergency use authorisation for Cedroz, which is used to combat plant-parasitic nematodes, in Italy. This will enable sales while the Italian authorities process the application for authorisation.

Aviation services provider Gama Aviation (GMAA) has reported 2018 figures with the comparatives for 2017 restated. Pre-tax profit slumped from $16.6m to $11m. That is before more than $40m of exceptional charges, including a $27.7m impairment charge. A final dividend of 2p a share is being paid. Hutchison Capital Holdings has bought more shares to take its stake to 25.45% after a shareholding limitation was ended.

Software company WANdisco (WAND) reported a fall in revenues from $19.6m to $17m in 2018, but this was down to a change in the revenue model to subscription-based business. The loss increased from $14m to $19.4m, but this will fall sharply over the next two years as revenues grow rapidly.

ReNeuron (RENE) has positive news from the first three retinitis pigmentosa patients given its human retinal progenitor cell product. Vision has improved after 60 days and 120 days. Longer-term evidence is required, but this is a good start and three more patients are being provided with the treatment.

Kestrel has increased its stake in Pebble Beach Systems (PEB) from 23.1% to 24.2%.

Satellite communications equipment provider Global Invacom (GINV) has terminated the proposed acquisition of Tactilis and related fund raisings. The two companies will provide equal funding of the costs of the terminated deal. Group revenues were $122.3m in 2018. Electronic component shortages have eased, and pricing is normalising. Trading in Global Invacom shares resumed and the share price jumped from 4.5p to 7p.

Angling Direct (ANG) has opened its 27th store on a former Majestic Wine site in Nottingham. The fishing equipment retailer has started the new financial year strongly. Overall sales were 50.7% higher in February and March. Full year figures for the year to January 2019 will be reported on 13 May.

Piling company Van Elle (VANL) reported that its full year profit will be slightly worse than expected but the share price still bounced back from recent lows. Volumes have recovered in the fourth quarter, but full year sales are 3% below expectations. A new director of the piling division will join in June.

The microCHP boilers developer Inspirit Energy (INSP) is still developing its product and it still has to commercialise its boilers.

MAIN MARKET 

Standard list shell Fandango Holdings (FHP) has ended discussions with Konnect Mobile Communications Inc because it could not raise the finance for the acquisition. Fandango has been making loans to another standard list shell, Stranger Holdings, where Charles Tatnall is also a director. There was £141,000 outstanding at the end of August 2018, plus accrued interest of £38,721, and this has been reduced to £108,000, excluding interest. There was cash of £53,000 in the balance sheet at the end of August 2018.

Zenith Energy (ZEN) chief executive Andrea Cattaneo has acquired 593,289 shares at 3.3p each, taking his stake in the Azerbaijan-focused oil and gas company to 8.46%.

Former finance director Michael Mousley has been appointed as a non-executive director of Quarto (QRT). A new finance director will join the company in July.

Andrew Hore

Andrew Hore Quoted Micro 22 April 2019

NEX EXCHANGE

IMC Exploration Group (IMCP) has published the prospectus for its move to a standard listing. No fundraising is planned to accompany the flotation. Management believes that IMC has enough working capital for 12 months. There was €152,878 in cash available at the end of January 2019. This takes account of the statutory spending on its licences.

Block Commodities (BLCC) is calling a general meeting to enable shareholders to decide whether the company should become involved in the medicinal cannabis sector.

Ananda Developments (ANA) owns 15% of LHT, the owner of hapac medicinal cannabis inhaling technology. The hapac products are being sold in Italy and the product range is being widened. Other investments are being assessed.

Ace Liberty and Stone (ALSP) has declared a second interim dividend of 0.83p a share.

Anne Yerburgh has been replaced as chairman of Daniel Thwaites (THW) by chief executive Richard Bailey, although she remains as a non-executive director in order to represent family shareholders. A replacement is being sought for former non-executive director Nick Mackenzie.

Queros Capital Partners (BFD) has raised £305,000 from the issue of 8% unsecured bonds 2025. This will be used to provide bridging finance to UK businesses.

Chris Akers has a 3.97% stake in High Growth Capital (HASH) following the purchase of the intellectual property of Malta-based BDD, a company he founded. RRNB Capital Ltd has increased its shareholding from 1.92% to 9.95%, while Fujairah has raised its stake from 2.31% to 8.59%. High Growth Capital has completed the acquisition of additional shares in AI company Sentiance to take its stake to 15%. Whitman Howard has been appointed as corporate adviser and broker.

AIM  

Modern Water (MWG) reported its 2018 results at 6.19pm o the Thursday before Good Friday. Revenues increased by 18% to £4.2m and the reported loss was more than halved from £5.23m, although this included a £1.53m goodwill write off, to £2.47m. This appears to be the first time that Modern Water has slipped out results after the market has closed for the week. Let us hope that this does not become a habit. Serial offender Immunodiagnostic Systems Holdings (IDH) managed to put out its statement a bit earlier but after the close of the market. More can be found at https://ukinvestormagazine.co.uk/why-you-should-avoid-immunodiagnostic-systems-holdings/.

Enterprise software provider Sanderson (SND) says interim trading was ahead of expectations and further progress is expected in the second half. Interim revenues improved from £14.6m to £17m and underlying operating profit is one-third higher at £2.8m, which is partly due to accounting changes. Like-for-like operating profit would be one-fifth higher. Net cash was £3.29m at the end of March 2019. The order book is worth £8m. The interims will be published on 15 May.

Sheikh Ahmed Bin Dalmook Al Maktoum is investing £534,000 in MX Oil (MXO) for a 29.86% stake. He will appoint a non-executive chairman. This is part of a placing raising £680,000 at 0.04p a share. There are also 800 million warrants being issued that are exercisable at 0.04p over a five year period. Options over 10% of the enlarged share capital will be issued to management. The Aje field, where MX has a 5% investment is producing at around 3,150 barrels of oil per day and cash generated is being used to reduce project debt. The Aje field should start generating free cash in 2020 and that could move MX into profit in the first half of 2020. MX plans to consolidate 100 existing shares into one new share and change its name to ADM Energy.

Chief executive Sean Smith has bought 126,624 shares in biopesticide products developer Eden Research (EDEN) for 10.25p each. Finance director Alex Abrey has acquired 50,000 shares at 10.1p each. House broker Shore forecasts an increase in revenues from £2.8m to £3.7m in 2019, although the loss is expected to rise to £900,000. Shore expects Eden to move into profit in 2021.

PowerHouse Energy (PHE) has gained its first revenue generating contract for its DMG technology in conjunction with partner Waste2Tricity. Revenues will come from IP, design rights and licensing, followed by operational engineering.

Parity (PTY) is increasing its focus on the data analytics market and has appointed a new boss of consultancy services. Pre-tax profit halved to £850,000 in 2018 and a further decline is expected in 2019. Net debt is expected to remain at around £1m. Revenues are expected to continue to decline but there should be a greater proportion of the business coming from higher margin activities and profit is expected to bounce back to £1.5m in 2020.

Fryer and grease management services provider Filta (FLTA) increased revenues by 23% to £14.2m in 2018, while underlying pre-tax profit improved from £1.81m to £2.2m. This is before any significant contribution from the Watbio acquisition, which cost savings appear to be on course. A 2019 pre-tax profit of £3.8m is forecast.

Nektan (NKTN) is selling a 57.5% stake in Respin for £300,000 to a new purchaser because the previous deal could not be completed at a higher price due to the fact that buyer could not raise the finance. The online gaming firm says that it owes £3.6m in tax to the HMRC and it is likely to need additional cash to pay the bill.

TruFin (TRU) plans to sell its stake in unsecured consumer finance provider Zopa for £44.5m, an increase of 22% on the 2017 valuation, and investing £25m in manufacturing finance provider Distribution Finance Capital, which will be floated on AIM in early May. There should also be £10m returned to investors later this year. That will leave early payment services provider Oxygen Finance and Satago Financial Solutions, which provides working capital to small businesses.

Delayed results from consumer care products supplier Venture Life Group (VLG) show revenues 17% ahead at £18.8m and nearly all the growth came from the company’s brands. Pre-tax profit improved from £63,000 to £710,000. Net cash was £5.8m so the company has funds to make additional acquisitions.

Yourgene Health (YGEN) has raised £11.8m at 10.25p a share and that will be used to fund the £6.3m cash payment for molecular diagnostics developer Elucigene, which will cost £9.2m in cash and shares.

Managed services provider Redcentric (RCN) says net debt was £17.6m at the end of March 2019, compared with estimates of £20.2m. Pre-tax profit is expected to rise from £8m to £8.7m.

D4T4 Solutions (D4T4) has announced that its 2018-19 results will be ahead of expectations. This led to a pre-tax profit upgrade from £5.7m to £5.8m, but earnings per share were upgraded from 12.1p to 13.3p due to a low tax rate.

Evgen Pharma (EVG) has raised £5m through a placing at 13p a share. The cash will boost the balance sheet while management undertakes partnership discussions and additional work on SFX-01. The phase IIb data for SFX-01 in subarachnoid haemorrhage is expected in the third quarter of 2019.

Directa Plus (DCTA) doubled its total income to €2.5m in 2018. The graphene-based products developer has net cash of €5.2m, following a €3m outflow from operations.

Ariana Resources (AAU) says that the Kiziltepe gold mine produced 7,296 ounces of gold in the first quarter of 2019. That was lower than the fourth quarter of 2018, but it is ahead of the average annualised quarterly guidance.

IG Design (IGR) is set for 10% organic sales growth in the year to March 2019 and total revenues rising from £327.5m to £447m. Pre-tax profit is expected to grow from £21.4m to £29.5m. There could be further merger benefits to come from the Impact Innovations acquisition.

Europa Oil and Gas (EOG) is selling its 20% stake in PEDL143 in the Weald Basin to UK Oil and Gas (UKOG) for £300,000.

MAIN MARKET 

Plastics and panels supplier Tex Holdings (TXH) made a small loss in 2018 following accounting changes to the recognition of revenues and there is no final dividend. Trading levels were lower in the second half. Tex is in breach of some of its bank loan covenants. The major shareholder continues to support the group. The share price fell by more than one-quarter.

Electronic products distributor DiscoverIE (DSCV) is on course to improve its full year pre-tax profit from £21.8m to £27.7m. The group has raised £29m at 400p a share in order to finance the acquisitions of US-based transformers and magnetic components manufacturer Hobart Electronics and UK-based rugged and submersible sensors manufacturer Positek. The total initial consideration is £15.9m.

Fasteners supplier Trifast (TRI) says full year profit is slightly better than expected even though demand from China has been reduced due to tariff wars with the US. Net debt was £15m at the end of March 2019 and it has agreed a new four-year bank facility of £80m. This could be used for acquisitions.

Argo Blockchain (ARB) has set the date for its requisitioned general meeting, which will be held on 16 May. The requisition came from an entity owning 13.8% that is controlled by Frank Timis, who does not believe that the company will provide a satisfactory return to shareholders with its current cryptomining strategy. The plan is to remove Jonathan Bixby and Mike Edwards as directors and appoint another director. Argo has more cash than its market capitalisation. Cash operating costs have been reduced to £280,000, compared with £500,000 of potential revenues expected in May.

Kazakhstan-focused vanadium miner Ferro-Alloy Resources (FAR) is already spending the money it raised when it gained a standard listing last month. Equipment, a mobile crane and vehicles have been acquired. The design of the extension to the existing facilities and for the connection to the high voltage power line has been completed. The share price has almost halved from the placing price of 70p to 37.37p. More background information can be found at https://ukinvestormagazine.co.uk/ferro-alloy-resources-goes-to-discount-on-first-day/.

BATM (BVC) has won an initial $2m armed forces contract for cyber security and this lasts 18 months.

Emmerson (EML) has signed heads of agreement for an offtake agreement for 100% of the production from the Khemisset potash project.

Andrew Hore

Andrew Hore Quoted Micro 15 April 2019

NEX EXCHANGE

High Growth Capital (HASH) is increasing its stake in Sentiance to 15% and is negotiating an option to acquire a majority stake in the artificial intelligence and machine learning business. The additional 5% stake will cost £7m in shares issued at 0.8p each. The option would enable an increase in the total stake to between 51% and 84.8%. The company would offer 100,000 of its own shares for each Sentiance share and the option is subject to High Growth Capital raising at least £25m. High Growth Capital has also acquired the intellectual property of Malta-based BDD, a company founded by Chris Akers, for £4m in shares at 1p each. The project involves an annual blockchain raffle that would raise money for social impact and environmental initiatives.

EPE Special Opportunities (ESO) had a net asset value of 205.2p a share at the end of January 2019, which was 12.5% lower than the year before. The stake in fully listed LED lighting products manufacturer Luceco (LUCE) is a significant part of the portfolio and its valuation fell by 27.7%. There has been a recovery in the Luceco share price since the end of January, even though there was a decline of three-quarters in 2018 pre-tax profit to £3m. The EPE NAV had risen to 232.8p a share on 9 April on the back of Luceco share price rise. The EPE share price is 180p.

Angelfish Investments (ANGP) is subscribing £150,000 for a 9.14% stake in Just Bee Drinks and is also providing a loan facility of up to £100,000 at a annual interest charge of 10%. Just Bee has developed a natural juicy water drink sweetened with honey. This means that there is no added sugar. More than one million bottles were sold last year, and revenues doubled. The drink is already sold in Waitrose and Boots. Just Bee had net assets of £83,000 at the end of March 2018. Angelfish has also provided a £100,000 debt facility at the same interest rate to Wallet Ads. The previous loan of £150,000 was converted into a 20% stake.

NQ Minerals (NQMI) nearly doubled zinc concentrate production at the Hellyer mine in Tasmania to 3,015 DMT in the first quarter of 2019, while lead concentrate production increased by 18% to 4,712 DMT. Pyrite concentrate production jumped by 331% to 18,488 DMT.

AIM  

Video games developer and services provider Sumo (SUMO) reported better than expected 2018 revenues of £38.7m and pre-tax profit of £9m. Sumo has been acquiring businesses to give it extra capacity as well as opening new studios. There is plenty of demand for Sumo’s services so utilisation rates are high and there is further upside from performance-based royalties and its own IP.

Destiny Pharma (DEST) had £12.1m in the bank at the end of 2018 and this will last into 2020. That should be long enough for the phase IIb study of XF-73 for the prevention of post-surgery infections.

Maiden full year results from legal services and credit hire business Anexo (ANX) have led to an upgrade by its broker Arden. The 2019 pre-tax profit forecast has been edged up from £17.8m to £18.1m, up from £16.1m in 2018, and the 2020 figure is 4% higher at £20.1m. Net debt is expected to increase from £17.3m to £26.3m in order to finance the growth of its legal business.

RA International (RAI) continues to win contracts, but larger contracts are taking longer to secure. RA provides services to remote locations in nine countries in Africa and the Middle East. Having joined AIM last summer, RA has $27.8m in the bank and this is helping it to tender for and win larger contracts. The average contract term is 4.4 years. This makes revenues relatively predictable and they are expected to rise by 10% this year to more than £60m.

Property investor Safeland (SAF) intends to leave AIM and secure a matched bargain facility on Asset Match. It is tendering for shares at 42.5p each, which compares with an NAV of 140.2p a share at the end of September 2018.

Having sold the RTLS SmartSpace business, the continuing revenues of geospatial software and services provider IQGeo (IQG) fell from £16.5m to £9.98m, although recurring revenues were 22% higher, and gross margin improved. There were lower software revenues, but the main decline was in the sale of third party products. There is a significant market for the company’s products and new modules are being launched. However, the full benefits of changes being made by management will probably not show through until next year. There is £30.9m in the bank and some of this will be returned to shareholders after a capital reorganisation is completed.

Interim revenues generated by LightwaveRF (LWRF) have more than doubled to £2.5m which is nearly as much as the £2.8m generated in the previous 12 months. Direct sales, e-commerce and telesales have contributed to the growth, as has the development of retail clients.

Legal firm Gordon Dadds (GOR) has acquired Gibraltar-based Rampart Corporate Advisers for up to £1.34m depending on performance. Rampart specialises in e-gaming, fintech and distributed ledger technology, and made a profit of £400,000 in the year to June 2018. Five former Ince network firms are joining Ince Gordon Dadds, although they remain independent. This would add £23m to existing group annual revenues of £77m. The firms are based in Hong Kong, Singapore, Dubai, Greece and Germany. This will boost profitability.

Strategic Minerals (SML) says the Cobre magnetite operations generated cash of $206,000 in the first quarter and the group cash balance was $1.24m at the end of March 2019. Volumes were lower because customers were undertaking plant maintenance and the continued suspension of a major client’s contract. There should be seven years of magnetite stockpile. The company expects to acquire the other 50% of the Redmoor tin/tungsten project by the end of May. This will cost £2.66m.

PhotonStar LED (PSL) says that it has enough cash for its immediate needs, but the blocking of the issuing of more shares by shareholders means that there is not enough cash to follow the strategy to find a reverse takeover target. The company may launch an open offer or ask shareholders for a second time for the authority to issue shares without offering them to existing shareholders a second time. Having become a cash shell, the company has been dropped from the FTSE AIM All Share index. It has six months to find an acquisition. A number of potential acquisition targets have been met by the board. Additional directors will be appointed.

Rose Petroleum (ROSE) has raised £275,000 at 1.1p a share in order to finance the appraisal of projects. The shares are being acquired by new executive chairman Robert Bensh, who has experience of the US oil and gas sector. Chief executive Matthew Idiens has more than doubled his stake to 2.52% by acquiring two million shares at 1.75p each. The finance director Chris Eadie has also more than doubled his stake to 1.2% at 1.67p a share. New non-executive director Tom Reynolds also bought shares.

Concepta (CPT) is raising £2.3m at 3p a share to finance marketing and further development of its myLotus fertility test.

MAIN MARKET 

Cadmium-free quantum dots developer Nanoco (NANO) had £6.2m in cash at the end of January 2019. There was a total cash outflow of £4.57m in the latest six month period. The main capital investment at the Runcorn site is almost complete. Non-executive director Chris Batterham has bought 125,000 shares at 47.354p each. Miton has reduced its stake to 4.96%.

Bonmarche (BON) says the mandatory cash bid of 11.445p a share by Spectre undervalues the retailer. Bonmarche is reducing costs. Cavendish Asset Management has edged its stake up to 10%.

Standard list shell Contango Holdings (CGO) has entered into an agreement to acquire the Lubu coalfield project in Zimbabwe for £6.45m in shares at 5p each. Once regulatory approvals have been gained the acquisition should go ahead and trading in the shares can recommence. That should happen by the end of June. There will be a placing to raise cash to fund initial trial mining.

Telecom services provider Toople (TOOP) says that it had more than £1.1m in the bank at the end of March 2019. That is a £1m reduction on the level at the end of September 2018, when there was also a shareholder loan, which was assigned a value of £572,000 in the balance sheet but has a cash value of £607,000. There is no indication if this loan has gone down. Last year, admin expenses were £1.55m, net of other income, and that was more than revenues. Revenues have grown but even if gross margin were to improve there will still be a significant first half loss.

Nuformix (NFX) has signed an agreement for cannabinoid therapeutics development, licensing and commercialisation for an initial upfront payment and other research and development and milestone payments that could total up to £51m. Canada-based Ebers Tech Inc will use Nuformix technology to develop a range of consumer and pharma products.

Zegona Communications (ZEG) has increased its stake in Euskaltel to 21%.

European High Growth Opportunities Securitization Fund has transferred 35.4 million shares in WideCells (WDC) to David Sefton and Linton Capital, which has promised to hold them for 12 months. European High Growth Opportunities still owns 18.2% of WideCells.

Andrew Hore

Andrew Hore Quoted Micro 1 April 2019

NEX EXCHANGE

Brewer Adnams (ADB) increased its revenues last year, but it reported a loss. Beer volumes grew by 2.2% and revenues were 6% ahead at £78.9m. The loss of £877,000 was after £1.77m of pension and property impairment costs. The final dividend is unchanged at 150p per B share. Adnams is optimistic about the proposed government review into small breweries relief – if Adnams paid the same duty rates as small brewers it would save £7m a year.

European Lithium (EUR) is making progress with its definitive feasibility study for the Wolfsberg lithium project in Austria. The plan is to produce lithium chemical for batteries. A test programme has been completed and this is designed to improve grades and the amount of lithium-bearing mineral. Laser sorting was found to be the best method.

Capital for Colleagues (CFCP) has increased its NAV by 9% to 48.05p a share in the six months to February 2019.

Trading in the shares of Block Commodities (BLCC) has restarted following the publication of its interim results. There was $1,000 in the bank at the end of 2018 and a further $400,000 has been raised via a convertible loan. This will fund the entry in the cannabis market. Block is collaborating with Hexis Lab to develop cannabis-based therapeutic and cosmeceutical products

Altona Energy (ANR) has net assets of £11m, but these are predominantly intangible assets. There are also £19.8m of potential tax losses. Altona is re-evaluating its underground coal gasification project in South Australia and assessing an investment in a Chinese vanadium mine.

MetalNRG (MNRG) plans to move to the standard list. An option agreement has been replaced with a farm-in agreement for the Kamushanovskoye uranium deposit. This will reduce the immediate cash outflow. A $161,000 payment was made under the option agreement and $400,000 more has to be paid by 10 April to earn a 51% economic interest. This payment is conditional on a capital raising at the time of moving to the standard list. A further $1.99m investment is required in three equal tranches in order to maintain the stake. The payments are due in November 2019, April 2020 and October 2020.

Walls and Futures REIT (WAFR) outperformed the MSCI UK Residential Property index last year, because it achieved 8.75% growth, compared with 5.2% for the index.

The net liabilities of Welney (WENP) increased from £234,000 to £301,000 in 2018. This is being funded by loans from directors. Costs have been kept low as management seeks a suitable acquisition.

Sport Capital Group (SCG) has issued 800,000 shares at 0.625p each to pay for adviser fees on the unwound acquisition of Palermo FC.

AIM  

Churchill China (CHH) improved margins last year. Revenues were 7% higher at £57.5m, but underlying pre-tax profit was 26% higher at £9.4m. Growth in exports is a major factor and they account for three-fifths of revenues. Retail sales fell and hospitality sales increased by £5m. The total dividend was raised from 24.6p a share to 29p a share. There was £14.4m in cash at the end of 2018.

Cloud-based communications software provider Cloudcall (CALL) increased recurring revenues by one-third last year and total revenues were 28% ahead at £8.8m. The fastest growth was in the US. The cash outflow from operations increased from £1.57m to £2.38m. This is due to higher operating costs in terms of product development and marketing.

Frontier IP (FIPP) has increased the value of its portfolio of investments by 27% to £11.5m in the six months to £11.5m. NAV is 38.8p a share. The deal by investee company Exscientia, which is involved in AI-based drug discovery, with Celgene Corporation should result in a substantial uplift in its valuation in the current six month period.

Parity (PTY) says it has lost a major contract with the Scottish government, but it should not have a significant effect on profit because it is low margin. This year’s revenues will be 10% below expectations. The 2018 results will be announced on 16 April.

Rambler Metals and Mining (RMM) has launched a one-for-one open offer to raise up to £1.7m at 1.4p a share and it closes on 12 April. This follows the £8.4m placing at 1,4p a share, which raised cash to pay off debt and provide working capital.

Alliance Pharma (APH) improved its pre-tax profit from £23.9m to £28.1m. This excludes a £1.9m write down of an acquired intangible relating to a manufacturing supply contract. A pre-tax profit of £32.8m is forecast for 2019.

Quixant (QXT) reported a strong second half to 2018 even though the gaming machines market was tough. Full year revenues were 5% higher at $115.2m and pre-tax profit improved from $17.7m to $18.2m. This year will also be second half weighted with revenues expected to hit $119m and pre-tax profit of $20m forecast.

MAIN MARKET 

Funds managed by Epiris LLP have launched a recommended cash offer of 193p a share for Ireland-based financial services group IFG (IFP), valuing it at £206m.

Ovoca Bio (OVB) is increasing its stake in IVIX to 59.9%. The additional 9.9% costs $2.04m. IVIX’s drug Libicore has met the pre-specified primary efficacy endpoint and significant outcomes in secondary endpoints as part of its phase 3 clinical trial for the treatment of hypoactive sexual desire disorder.

Standard list shell Baskerville Capital (BASK) still had £1.54m in the bank at the end of 2018. Potential technology acquisitions are being assessed.

Blockchain Worldwide (BLOC) is still seeking an acquisition after the deal to buy Chorum fell through due to weak stockmarkets. There was £1.21m in the bank at the end of 2018.

Andrew Hore

Andrew Hore – Quoted Micro 18 February 2019

NEX EXCHANGE

National Milk Records (NMRP) increased its interim revenues from £10.5m to £11.7m, although some of this was due to seasonal factors and one-off testing business. Pre-tax profit improved from £0.96m to £1.13m. Net debt was £2.06m at the end of December 2018. Every part of the business grew its revenues. Milk volumes are set to be strong in the second half, although milk margins are been squeezed by a decline in the milk price and higher feed costs.

Barkby (BARK) has completed the acquisition of Centurian Automotive for an initial payment of £201,000 in shares at 4.775p each, with up to £251,000 more based on performance over three years. Operating profit in each of the years is required to be at least £200,000 in order to achieve the full payment. The consideration represents a discount to net assets and will be equivalent to up to 20% of Barkby. In the year to March 2018, the automotive dealer made a pre-tax profit of £123,000 on revenues of £5.6m.

Sandal (SAND) says there was a significant increase in Energie MiHome sales in December, particularly later in the month, but trading is still below expectations because of a lack of cash to spend on marketing. The stock overhang has been unwound. A Wi-Fi adapter plug has been added to the range, which is being rolled out in Denman’s Electrical Wholesale branches.

Sport Capital Group (SCG) owned Palermo Football Club for less than one month before selling it back to the previous management team. It was bought for a nominal sum and is being sold for a nominal value, following further due diligence. The company’s representatives joined the board in December and resigned last week. Debt will be settled at the same time. Sports Capital had been trying to raise up to £20m over the next few months.

Trading has recommenced in the shares of EcoVista (EVTP) after it published its results for the year to August 2018. There was a £142,000 property revaluation gain and net assets were £1.39m. There are plans to launch a €10m Eurobond issue to fund further property site acquisitions in London, Hertfordshire and Essex.

Gold explorer Tectonic Gold (TTAU) has completed stage one drilling on the Specimen Hill project in Queensland and each hole drilled intersected gold. Geological modelling results will be available in March. A further 7,500 metres of drilling is being planned.

Auxico Resources Canada Inc (AUAG) has raised $400,000 at 20 cents a unit (one share and one-half warrant). The expenses of the placing were $28,000. The cash will be used for assessing coltan opportunities in Colombia and Brazil. NQ Mining (NQMI) has raised £54,000 at 11p a share.

AIM  

Panoply Holdings (TPX) has made its third acquisition since floating in December. UK-based GreenShoot Labs provides digital services using artificial intelligence technology. There is no initial consideration and any payment will depend on performance.

Marketing and media services provider Ebiquity (EBQ) traded in line with expectations last year. The disposal of the advertising intelligence was completed on 2 January. This cut net debt to around £8m. The continuing business is expected to continue to grow at 8% a year.

Online merchandising software and services provider ATTRAQT Group (ATQT) increased its 2018 revenues by 26% to £17.1m and the loss declined from £4.1m to £2.7m. The largest customer has renewed for two years. Annual recurring revenues are £16m.

GRC International (GRC) has acquired data consulting business DQM Group for an initial £5.9m with up to £5m in deferred consideration, although it is not expected to be more than £3.5m. This is a significantly earnings enhancing deal.

Cabot Energy (CAB) is consolidating 100 shares into one new share and raising up to £2.85m at 10p per consolidated share. The cash will pay off trade creditors. The main focus is Canada but Cabot believes its Italian oil and gas exploration assets could still be valuable even though the Italian government has suspended exploration work and is reviewing the situation.

The administrator has sold most of the businesses of Patisserie Holdings (CAKE) but there will be no money for shareholders. Dublin-based Causeway Capital has acquired Patisserie Valerie and AF Blakemore acquired Philpotts for a total of £13m, of which £3m is deferred. Baker and Spice was sold to the Department of Coffee and Social Affairs for £2.5m. The AIM quotation will be cancelled on 25 February. Paul Mumford of Cavendish Asset Management believes that the company’s banks should have supported a rescue and been more attentive to what was happening at the company. He thinks that shareholders should seek compensation from the banks.

Malvern International (MLVN) has confirmed that it moved into profit in 2018. The education business has doubled its London-based revenues and this made up for difficult trading in Malaysia.

Realm Therapeutics (RLM) is selling is hypochlorous acid assets for $10m and intends to leave AIM. Realm already had $18.8m in the bank at the end of 2018. The plan is to use the cash to complete a strategic transaction in the life sciences sector. The ADSs will continue to be listed on Nasdaq.

Stride Gaming (STR) has started a strategic review. The choices are acquisitive or organic expansion or the sale of the online gaming company.

Renalytix AI (RENX) has secured a joint venture with laboratory and clinical trials operator AKESOgen and this will enable Renalytix AI to provide additional services in the US. The artificial intelligence-based kidney diagnostics already has a presence in New York and the new joint venture is based in Georgia.

Administrators have been appointed to Utilitywise (UTW) but none of the subsidiaries is in administration. Shareholders are not likely to get anything from the administration process. Unitlitywise was unable to raise the cash it required to keep going and meet liabilities.

Heavitree Brewery (HVT) improved full year revenues from £7.3m to £7.61m and pre-tax profit grew from £1.55m to £2.25m, although that included profit on the sale of pubs and other property of £824,000, up from £6,000. The previous year had benefited from the write-back of a bad debt provision. The final dividend is being increased from 4p a share to 4.25p a share. Heavitree no longer has to cover a pension scheme deficit because three people transferred out of the scheme.

Bowmark Capital has launched a 110p a share recommended cash bid for Tax Systems (TAX) and MXC Capital Ltd (MXC) has accepted with its 25.6% stake. The bid values the tax software provider at £100.6m.

Kodal Minerals (KOD) has published the results of the drilling programme at the Bougouni lithium project. These will be used to update the JORC resource, which should happen by the end of February. Kodal has met with the Mali authorities to update them.

Insignals Neurotech is the third Portuguese spin out for Frontier IP (FIPP) and it will hold a 33% stake. Insignals is developing technology for brain stimulation surgery.

Scientific Digital Imaging (SDI) has made another scientific instruments acquisition and it has raised £2.5m at 34p a share to help finance it. A further £100,000 was raised via PrimaryBid. Graticules manufactures reticules and graticules and fits with the digital imaging division. It cost £3.4m and has added 6% to next year’s earnings per share.

Strategic Minerals (SML) has announced a trebled resource at Redmoor, in which it has a 50% stake. There is an inferred tin equivalent contained metal of 137,000 tonnes.

James Latham (LTHM) has acquired the timber merchant that has the rights to sell Accoya wood in Ireland. Abbey Woods will cost an initial €1.825m with a further €300,000-€400,000 depending on completion accounts. Further deferred consideration of up to €400,000 depending on performance over two years. Last year, Abbey Woods generated EBITDA of €379,000 on revenues of €7.5m and it has operations in Dublin and Cork.

Vast Resources (VAST) says that the tranche B offtake finance from Mercuria Energy Trading did not happen. This means that the planned December and January repayments of the loan from Sub Sahara Goldia Investments have not been made Talks continue with potential finance providers to replace the cash to invest in 80%-owned copper, silver, gold, zinc, lead, tungsten, molybdenum Baita Plai project. Bergen Global Opportunities Fund is pausing the second tranche of the $3m bridge facility because the share price has been below 0.2p for two days. A placing has raised £896,000 at 0.135p a share and this will repay the £525,000 owed to Bergen. There are discussions with a potential cornerstone investor for a diamond project in Zimbabwe.

RiverFort Global Opportunities (RGO) has subscribed for shares in Pires Investments (PIRI), that will give it a 24.3% stake. RiverFort is taking nearly 50% of the shares issued in a placing that raised £782,000 at 2.4p a share for Pires. The cash will be used for new investments.

Trading in the shares of African Battery Materials (ABM) will resume on Monday 18 February following the issue of 200 million shares at 0.5p each. The cash will be used to pay creditors and leave enough to finance the business for 12 months. Andrew Bell has been appointed executive chairman and Paul Johnson as executive director.

Windar Photonics (WPHO) will undershoot the 2018 forecast, but there should be higher orders from Vestas and another manufacturer next year. Even so, 2019 forecasts are likely to be reduced. Total 2018 revenues were 59% ahead at €3.5m and higher gross margins meant that the loss before interest, tax, depreciation and amortisation fell from €1.22m to €360,000. The end of year order book was worth €1m.

Nostra Terra Oil and Gas (NTOG) has more than trebled its proved and probable reserves to 2.43 million barrels of oil. Net proved reserves are 764,030 barrels of oil.

President Energy (PPC) has updated the reserves position. The Argentina and Louisiana reserves are valued at almost $300m, which is equivalent to 21p a share. That is more than twice the market capitalisation. Production is predominantly oil but gas production will increase this year.

Harwood Wealth Management (HW.) has acquired IFA Castleton Financial Planning for up to £1.6m.

Trading in the shares of Urals Energy (UEN) has been suspended following the resignation of Allenby as nominated adviser. A general meeting, which will be held on 22 February, has been called by Adler Impex SA in order to remove three directors and appoint four other directors. Oil production was 1,690 barrels/day in January. Loans made without board approval have meant that the company is short of cash.

Waste-to-energy technology developer PowerHouse Energy (PHE) is confident that it could sign up a customer in the next quarter. There is increasing interest and six potential sites are being assessed. Potential engineering, procurement and construction contractors have approached PowerHouse. Development partner Waste2Tricity is in negotiations with Toyota Tsusho, which would be a way of entering the Japanese market.

Braveheart Investment Group (BRH) has reduced its stake in Remote Monitored Systems (RMS) from 5.9% to 1.32%. Stephen Jones increased his stake from below 3% to 14.5% in just over one month.

Dewscope Ltd, where Mark Horrocks is a director, has cut its stake in Sabien Technology (SNT) from 12.7% to less than 3%. Chris Akers has also reduced his stake from 16.9% to less than 3% and Brendan Adams has cut his shareholding from 4.2% to under 3%. These stakes were acquired on 14 December, when the mid-price was 0.11p. On 11 February, when the shares were sold, the share price increased from 0.145p to 0.175p. Sabien reported a decline in interim revenues from £462,000 to £342,000, but the loss was reduced from £233,000 to £207,000 due to cost reductions.

TV programme producer DCD Media (DCD) expects to report revenues of £7.3m and a small EBITDA in 2018. Trading has started well in 2019 helped by business that was delayed from last year.

HaloSource (HAL) is seeking shareholder approval for the disposal of assets to Strix (KETL) for $1.3m. The cash will pay creditors and fund the winding down of the business. The AIM quotation will be cancelled on 12 March.

WANdisco (WAND) has raised $17.5m at 546p a share to provide cash to support relationships with partners. WANdisco has become an advanced technology partner with Amazon Web Services.

Adamas Finance Asia Ltd (ADAM) is issuing 6.1 million shares to China Aerospace for a 6.8% stake in Hong Kong Mining Holdings, where Adamas already has a 84.8% stake. This is a complicated deal, but Adamas can tell China Aerospace where to transfer these shares. It means that Adamas will not necessarily increase its shareholding in the mining company. Sorting out what was effectively a stock overhang should make it easier to do a deal that will unlock cash for Adamas.

NetScientific (NSCI) has concluded its strategic review and it has decided to cancel its AIM quotation. The remaining cash will be spent on the investee companies with the best prospects of providing a return before the company runs out of money.

Angus Energy (ANGS) is repaying the £1.5m initial advance from YA II and RiverFort Global Opportunities. Angus has raised £2.2m at 4p a share.

The University of British Columbia has ordered a polariser system from Polarean Imaging (POLX).

Begbies Traynor (BEG) has made the earnings enhancing acquisition of profitable Newcastle insolvency practice KRE. The initial payment is £450,000 with up to £150,000 more based on revenue targets over 12 months.

Full year figures will be lower than expected at IFA Tavistock Investments (TAVI) but a maiden dividend is still on the cards.

Crossword Cybersecurity (CCS) will report a 45% increase in 2018 revenues, with most of the growth coming from software.

MAIN MARKET 

Cryptocurrency mining services provider Argo Blockchain (ARB) is refocusing its business. All existing contracts will be terminated by the beginning of April. The focus will be Argo’s own currency mining. Ongoing costs will be cut by one-third. Net cash is £15m and that is much more than the market capitalisation of Argo. The cash outflow should be stemmed in the second half of 2019. Hadron Capital recently increased its stake to 7.6%.

Trading is in line at fasteners supplier Trifast (TRI) even though the UK automotive market is weak. More than two-thirds of sales are overseas. Additional UK stocks for Brexit are worth around £2m.

Commercial aircraft leasing company Avation (AVAP) expects to report a doubled interim profit on revenues that have risen from $52.4m to $58m.

Outdoor digital media company Grand Vision Media Holdings (GVMH) has signed a partnership agreement with Rakuten Bank in Japan to add to the one it signed with CY Group in South Korea. GVMH’s marketing services will help its partners promote themselves to Chinese tourists. GVMH has glasses-free 3D technology.

Helen Sachdev has been appointed as a non-executive director of Athelney Trust (ATY) and Frank Ashton has taken on the role of executive chairman. Discussions continue with Gresham House Asset Management about taking over the management of the company’s investments.

Future (FUTR) has secured a new £90m revolving credit facility and it is acquiring CyclingNews.com and Procycling Magazine, which generate annual revenues of £2m. This deal widens the sports publishing activities.

REA Holdings (RE.) significantly increased palm oil production in 2018, even though extraction rates were lower than expected. The Kota Bangun coal concession is heading towards reopening the mine, although there are local disputes.

Andrew Hore

Andrew Hore – Quoted Micro 11 February 2019

NEX EXCHANGE

Primorus Investments (PRIM) says that investee company Sport:80 has delayed its flotation because it has been tidying up its shareholder register. Fintech company Engage Technology is also seeking to float later in 2019 following new product launches. Engage raised £2.6m at £22 a share at the end of 2018, whereas the average buying price by Primorus was £20.03 a share. Investee company, AIM-quoted Greatland Gold (GGP) has published results from the second drilling campaign at Havieron in Western Australia. Every drill hole intersected mineralisation and they extend the overall mineralisation. Drilling will recommence in March. Primorus has raised cash by selling most of the stake in UK Oil and Gas (UKOG) and Primorus was debt free at the end of 2018.

NEX has decided not to suspend trading in the shares of VI Mining (VIM) even though its corporate adviser Daniel Stewart is no longer a member of NEX. VI Mining had little or no notice of its adviser’s withdrawal. A new corporate adviser is being sought.

Milamber Ventures (MLVP) has acquired apprenticeship training provider Astara Training for £16,666 in shares at 9p each. Milamber lost £179,000 in the third quarter and there was £30,000 in the bank at the end of 2018.

Panther Metals (PALM) has announced the initial results of exploration activity at the Bear Lake project in Ontario. There was gold in soil anomalies at four of the five areas tested. Four areas have quartz vein sample assays above 5g/t gold. Two samples had large grade samples. The next phase of exploration is being planned and could start in the second quarter of 2019.

Auxico Resources Canada Inc (AUAG) has signed a deal that could enable it to earn a 70% interest in a joint venture that owns the Palha tantalum property in northern Brazil.

AIM  (February 2019 AIM Journal available here)

DP Poland (DPP) is running short of cash and is more than doubling its share capital through a heavily discounted placing raising £5.3m at 6p a share, with the possibility of an additional £500,000. The Domino’s Pizza franchisee for Poland has found competition is getting tougher and growth has slowed. The cash is required to cover losses and open more outlets. Peter Shaw is stepping down as chief executive at the end of June, nearly a decade after founding the business.

Ticketing and queueing technology provider Accesso Technology (ACSO) is reviewing its investment priorities although it says that 2018 figures should be broadly in line with expectations. These will be published on 27 March. A deal fell through and this cost $1.7m. Tom Burnet is moving from executive chairman to a non-exec role. The share price is less than one-third of last year’s high. BlackRock has cut its stake below 5%.

Midatech Pharma (MTPH) has launched a placing and 0.318-for-one open offer to raise up to £4.75m at 3.85p a share on top of the £8m subscription by former AIM company China Medical System Holdings, which will licence products for the Chinese market. The clinical trial for cancer treatment MTD201 will cost up to £7m.

Duke Royalty (DUKE) is acquiring its UK rival Capital Step and this will double the size of the portfolio to eleven investments and diversify it in terms of sectors. There is an initial £10m cash payment and the assumption of debt of £11.65m. There is performance related consideration of up to £1.5m. The deal is immediately earnings enhancing.

Visa has increased its bid for Earthport (EPO) from 30p a share to 37p a share, which beats the Mastercard offer of 33p a share. The latest bid values Earthport at £247m.

Taptica (TAP) has launched a recommended bid for RhythmOne (RTHM) and this will create one of the largest video advertising companies in the US. The offer is 28 Taptica shares for every 33 RhythmOne shares. Taptica shareholders will own 50.1% of the enlarged group. A $15m share buyback programme is planned after the merger. Ofer Druker will become chief executive.

Polemos (PLMO) has finalised the details of its reverse takeover of Digitalbox Publishing for £10m in shares and it is also acquiring the owner of the Daily Mash satirical news website for up to £1.2m in cash and shares. The model for the Entertainment Daily website will be used to improve the performance of the Daily Mash. A placing will raise £1.02m at 14p a share. The company will change its name to Digitalbox.

Hardide (HDD) is raising £3.6m at 1.5p a share so that it can move to new premises in the UK and invest in additional equipment. The surface coatings company is experiencing increasing demand from the oil and gas sector and there is potential for orders from aerospace companies. It will take two years to fully equip and move into the new facility. Hardide also intends to consolidate 40 shares into one new share.

finnCap has raised its forecasts for Tracsis (TRCS) following recent acquisitions. There is a 3% increase in earnings per share for this year and an 11% rise to 30.5p next year.

Stride Gaming (STR) has traded in line with previously downgraded expectations. Cost cutting continues to cover higher regulatory and tax costs. The online gaming operator will report a lower profit in 2018 and it is set to fall again in 2019. Net cash was £22.1m at the end of 2018.

Bowmark Capital has offered 110p a share for Tax Systems (TAX) and discussions continue. Tax Systems reduced net debt from £20.5m to £13.9m by the end of 2018. Pre-tax profit of £5.8m is forecast for 2018.

Victoria (VCP) has sold surplus land in Kidderminster for £2m. The land was in the books for £100,000 but it has obtained planning consent for housing.

Starcom (STAR) has renegotiated its agreement with Xplosive in South Africa, having originally announced it in October 2017. Xplosive has signed a 36-month agreement to pay a monthly fee for each of the Kylos units supplied for the monitoring of cattle. The fees are higher in the first six months and then reduce. The agreement should be worth $500,000.

Strix Group (KETL) has offered to acquire most of the assets of HaloSource (HAL) for $1.3m. Strix has provided working capital of $100,000. Due diligence is being carried out on the water filtration technology and if the deal goes through the cash will pay creditors, but there will be nothing for shareholders.

Prospex Oil and Gas (PXOG) has announced that the Selva gas field in northern Italy has net 2P reserves of 13.3bcf and there are 2.26bcf attributable to Prospex, which has a 17% stake. Selva could start production in 2020 at a rate of up to 150,000 cubic metres/day.

Tau Capital (TAU) plans to raise cash via a placing through Peterhouse and then a capital distribution will be made to all shareholders. This will enable Tau to seek an acquisition. It has until 18 April to secure a deal or trading in the shares will be suspended. Armstrong Investments has increased its stake from 11.7% to 15.7%.

Evgen Pharma (EVG) says that the SFX-01 clinical trial for subarachnoid haemorrhage is on course having completed recruitment and the primary endpoints should be available in the second quarter. Partners Investment Company has acquired at 3.15% stake.

Sports Direct International (SPD) made a £15m offer to buy Patisserie Valerie from the administrator, but this was not deemed enough. Even a higher selling price won’t provide anything for Patisserie Holdings shareholders.

MAIN MARKET  

Solicitor DWF plans to raise £75m via a March flotation an some of the cash will repay members’ capital contributions as well as invest in the business. Existing shareholders will also sell shares and partners’ remaining stakes will be locked up until April 2024.

Two former AIM-quoted companies are coming together to join the standard list. Daniel Stewart Securities, which is closing its broking business, is making an offer for Atlantic Carbon, which was previously known as Atlantic Coal, where Adam Wilson, who has had connections with Daniel Stewart, is executive chairman. Singapore-based backer Epsilon Investments refused to put more money into the broker and that is why it is closing. Epsilon holds a majority stake in Hyde Park Holdings, which owns broker Novum Securities. Last October, SeeThruEquity research suggested that Atlantic had an equity value of $86.8m and $68m of debt. In 2017, Atlantic was the largest producer of anthracite in the US with a market share of one-third based on 1.18 million tonnes produced. Atlantic is expected to have moved into profit in 2018, although it did generate cash from operations in 2017. The owners of more than 50% of Atlantic shares have agreed to accept the bid of 1.5587 shares for each Atlantic share.

Thalassa Holdings (THAL) is offering 14.64p a share in cash and 0.26 of a share for each share in The Local Shopping REIT. Thalassa already owns 25.5% of the bid target, which is valued at 32.8p a share. The bid is an alternative to the winding up of The Local Shopping REIT.

Blockchain Worldwide (BLOC) is no longer acquiring blockchain technology developer Chorum Group because of political uncertainty affecting the UK equity markets. Former Avanti Communications boss David Williams is the director of Chorum. Blockchain Worldwide has more than £1m in the bank and is also looking at other technology sectors for acquisitions.

Drilling of the Colter appraisal well in Dorset has commenced and United Oil and Gas (UOG) has a 10% interest. The drilling should take three weeks. The Selva gas field in Italy has net 2P reserves of 2.7bcf attributable to United, which has a 20% stake. Selva could start production in 2020. United intends to move to AIM.

Oil and gas producer Zenith Energy (ZEN) has raised £607,000 in Canada and the UK at C$0.05 a share and 3p a share respectively.

Motor finance provider S and U (SUS) has confirmed that its figures for the year to January 2019 will be in line with expectations. The Aspen property bridging loan business had a loan book of £18m at the end of January 2019. Cautious lending criteria means that new business has slowed in recent months and this has led to a 5% 2019-20 earnings downgrade to 230.1p a share.

BATM (BVC) has won a $3.2m cyber security contract and this takes contracted revenues from this government customer to more than $10m. The latest contract will be delivered this year.

Chesterfield Resources (CHF) is expanding its exploration programme in Cyprus. Initial drilling in an area near historic mining has shown gold, copper and zinc mineralisation. Chesterfield is also applying for licences to extend its licence area.

Dev Clever (DEV) has launched pay per play multi-player, virtual reality game Vanguard: Fight for Rudiarius in Harlow shopping centre. The game will be rolled out to other UK sites.

Bluebird Merchant (BMV) has applied for a grant to help finance drilling at the Kochang project in South Korea and there should be news by the end of the month. There has also been a permit application to develop Kochang.

Andrew Hore

Andrew Hore – Quoted Micro 4 February 2019

NEX EXCHANGE

Property investor Ace Liberty and Stone (ALSP) increased its rental income by one-third to £1.95m in the six months to October 2018. Profit from continuing operations improved from £218,000 to £271,000 and a dividend of 0.83p a share has been announced. Four properties have been purchased since April 2018 and Hume House was sold.

Capital for Colleagues (CFCP) increased its NAV from 42.69p a share to 43.35p a share in the year to August 2018. The strategic focus is to make larger investments in bigger employee-owned businesses. There was £175,000 in the bank at the end of August 2018, so there appear to be limited funds available for further investments, although there are £1.3m of loans to investee companies.

Health and community care properties developer and modular buildings supplier Ashley House (ASH) was hit by delays in projects planned by its Morgan Ashley joint venture in the six months to October 2018. Only one scheme reached financial close during the period and a loss was reported for the period. Modular buildings demand is strong with a good pipeline of potential projects. A profit is still expected for the 14 months to June 2019, but this still depends on the timing of projects.

Hydro Hotel, Eastbourne (HYDP) increased its full year profit from £127,000 to £153,000 on turnover 4% higher at £3.66m. There is £1.09m in the bank at the end of October 2018. The dividend was maintained at 21p a share, which is covered 1.2 times by earnings. The strategy is to encourage more direct bookings with the hotel and an online booking system was launched last September. The completion of refurbishment activities has enabled an increase in bookings for weddings. Bedroom refurbishments continue.

Formation Group (FRM) reported an improvement in revenues from £37m to £38.6m in the year to August 2018, but the operating loss nearly quadrupled to £416,000. There was a gain on financial asset of £450,000 and an exceptional cost of £318,000 relating to an accident in 2015. Management is cautious about taking on new property developments under the current economic conditions.

Karoo Energy (KEP) is still trying to raise cash to enable it to move to AIM. Management is confident that it will be able to raise the funds in the near future.

Formerly AIM-quoted Altona Energy (ANR) did not managed to obtain a replacement nominated adviser for Northland and it has moved to NEX on 1 February. Sino-Aus Energy Group is subscribing for £500,000 of 7% convertible loan notes July 2020. The conversion price depends on the market price in the 2o days prior to conversion although the minimum is 10p a share.

Sport Capital Group (SCG) has appointed Epsion Capital to help it raise up to £20m from a share issue at a price of at least 0.5p a share. There will be a warrant issued with every four shares. A circular is being prepared to gain shareholder approval. Early Equity (EEQP) has raised £187,500 at 0.75p a share.

Ananda Developments (ANA) says that 15%-owned LHT has launched its hapac medicinal cannabis inhaling technology in Milan, Italy. The initial reaction has been positive.

VI Mining (VIM) has completed the acquisition of the Cushuro gold project for $27.5m in shares.

Nuclear notes linked to guaranteed contingent value rights relating to the takeover of British Energy will mature and stop being traded on 7 February.

Dealings in the shares of Wheelsure (WHLP) and Ecovista (EVTP) have been suspended because they have not published their results for the year to August 2018.

AIM  

Recruitment and training company Staffline (STAF) has delayed the publishing of its accounts because of concerns about invoicing. Trading in the shares has been suspended.

Electronic and battery products supplier Solid State (SOLI) says trading is significantly better than previously expected. Gross margins are continuing to improve. finnCap upgraded its 2018-19 earnings per share forecast by 26% and the 2019-20 figure by 21%.

Filtronic (FTC) fell into loss in the first half even before the write-off of £500,000 of capitalised development costs. Massive MIMO antennas sales will not build up as quickly as initially expected. There is £2.2m in the bank so the antennas and telecoms hardware supplier has a strong cash position while it waits for orders to come through. There is expected to be a full year loss but cash should still be £1.8m. A focus on defence and public safety markets will help to diversify the customer base and provide new opportunities.

A court has ordered Grant Thornton to pay £21m relating to its failures in the auditing of AssetCo (ASTO) accounts in the financial years to March 2009 and March 2010. AssetCo had been seeking £40m from Grant Thornton and there is still interest to be calculated on the award.

Location Sciences (LSAI) says that 2018 trading was in line with expectations and 2019 has started well. There has been a soft launch of the Verify product that ensures that responses to advertising from mobiles are genuine. Paid for trials in the US will provide further evidence of effectiveness.

Begbies Traynor (BEG) has acquired Manchester-based Croft Transport Planning and Design, which provides highways and traffic advice to property developers, for an initial £1.5m in cash and shares. This widens the range of services offered by the property services division.

Utilitywise (UTW) has not published its accounts and trading in the shares has been suspended. The utility cost management consultancy has also effectively put itself up for sale as part of its strategic review. This was sparked by the failure to raise cash required from a share issue. The £25m bank facility expires in April.

MAIN MARKET  

BATM Advanced Communications (BVC) has secured an investment of up to $30m to fund the commercialisation of molecular biology products being developed by Ador Diagnostics, a joint venture with Gamida for Life, that is valued at $30m prior to the investment. The first $14.5m should be invested by the end of March and the rest will be invested at a 33.3% premium to the enterprise valuation after the initial investment by the end of 2020. Most of the cash will come from medical sector investors and Puma Brandenburg. BATM and Gamida will each invest $2m and after the initial investment BATM will own 38.2% of the company. Shore Capital will reinvest its total fees of $1m into Ador.

Rainbow Rare Earths (RBW) is obtaining a $750,000 convertible security investment and a 24 month equity facility of up to $7m from an entity managed by The Lind Partners, which will get an initial commitment fee of $75,000. Between $100,000 and $300,000 can be drawn down each month. The shares will be issued at prices that are linked to market prices at the time. Rare earths production at the Gakara project in Burundi is expected to build up over 2019 as two further areas are opened up. Production costs were higher than sales revenues in the three months to December 2018.

Sportech (SPO) has acquired digital gaming technology business LOT.TO Systems, which has developed the iLottery platform.

Path Investments (PATH) has sold its Turkish oil and gas interests for £400,000. The focus is the acquisition of ARC Marlborough. The plan is to acquire ARC, which has a nickel and cobalt project in Queensland, via a share issue.

Dukemount Capital (DKE) has agreed a forward funding and assignment of the contract of the Wavertree property in Liverpool. This is the second project that has reached this stage. Dukemount will continue to manage the redevelopment of the property and a development profit will be received on completion. Executive chairman Geoffrey Dart has been awarded a bonus of £80,000 for the completion of the first two transactions and it will be received in shares at 0.3p each.

Andrew Hore

Andrew Hore – Quoted Micro 21 January 2019

NEX EXCHANGE

Sport Capital Group (SCG) is acquiring Italian football club Palermo for a nominal sum. The deal also includes the project for a new stadium for the Serie B team, which is currently five points clear at the top of the table. Promotion back to Serie A would boost revenue generation and it would also trigger an earn-out payment. There is also potential for more sponsorship and match revenues. There is a plan to raise up to £10m from a bond issue that would be traded on NEX.

Clinical decision support technology provider DXS International (DXSP) reported a lower interim loss in the six months to October 2018. Revenues edged up from £1.61m to £1.69m and the loss declined from £92,000 to £35,000. Tax credits meant that there was a post-tax profit of £70,000, up from £28,000. The GPSoC tender has been delayed but it is expected to be completed this year.

Coinsilium Group Ltd (COIN) says that its priorities for 2019 are to demonstrate the potential of the blockchain investments that it has and to take advantage of the growing sector. There were record levels of investment in the blockchain sector last year. Management wants movements in the share price to reflect progress rather than the movement of the price of bitcoin, as has been the case in the past year.

KR1 (KR1) has set up a subsidiary in Gibraltar. KRX Ltd will sponsor token-based projects that will list on the Gibraltar Stock Exchange, which operates the first regulated blockchain exchange. The subsidiary will generate fees from clients and there are a limited number of sponsors.

AFH Financial Group (AFHP) has acquired fellow wealth management firm Hayburn Rock for up to £3.5m. The initial payment is £900,000. In 2017, the firm made a profit of £400,000.

TechFinancials (TECH) is selling its stake in MarketFinancials, which no longer trades, for €100,000. The investment had no value on the balance sheet.

Smaller company investor Gledhow Investments (GDH) had £167,000 in the bank at the end of September 2018, having made a small profit in the period. The NAV is £793,000.

Ashley House (ASH) is changing its year from April to June. This is the end of the first six months period for joint venture Morgan Ashley Care Developments LLP. There will be interim results for the six months to October 2018 reported at the end of January.

NQ Minerals (NQMI) has commissioned the Hellyer processing plant and in the fourth quarter generated £3.2m of revenues from lead, zinc and pyrite.

AIM   

Ascent Resources (AST) is attempting to raise cash at 0.3p a share, which is a 20% discount to the market price, via PrimaryBid.com. Ascent has successfully raised cash via the platform in the past. The broker handling the deal is Stanford Capital Partners. Ascent, which has €400,000 in the bank plus a deposit for a bank guarantee of €200,000, is refocusing its expansion outside of Slovenia because of regulatory hold ups in the country. Revenues from the export of gas from Slovenia totalled €2.1m in 2018 but gaining permission to process the gas and sell it to the national grid has proved difficult.

Knights Group Holdings (KGH) has acquired Leicester-based legal services business Cummins for £1.57m in cash and shares. This fits well with the existing east Midlands operations. In the six months to October 2018, group revenues were 37% ahead at £23.9m and organic growth was 10%. Underlying pre-tax profit doubled to £4.4m. The maiden interim dividend is 0.6p a share. Net debt was £9.5m at the end of October 2018. Average fees per fee earner was one-quarter higher at £66,000.

Concrete levelling equipment supplier Somero Enterprises Inc (SOM) did better than expected last year. The 2018 pre-tax profit forecast has been raised by 5% to $29m. Net cash is $25m and 50% of the excess over $15m will be paid in a special dividend on top of the ordinary dividend. Somero has also paid $2m for concrete pouring and line dragging company Line Dragon and this broadens the product range.

Student accommodation activities fuelled the growth of Watkin Jones (WJG) last year but private rental will become increasingly important from this year onwards. Richard Simpson has taken over as chief executive.

Kromek (KMK) is making progress towards breakeven and it has plenty of cash in the bank to take it there. The imaging and radiation detection technology developer has a strong order book. There was a dip in first half revenues because of the transfer of production to a new site in Pittsburgh. Even so, full year revenues are forecast to increase from £11.8m to £15m and the loss should reduce from £2.5m to £1.9m.

Tri-Star Resources (TSTR) is selling its antinomy exploration interests in Turkey. The company’s main asset is the 40% shareholding in the Sohar antinomy and gold production facility in northern Oman. Some engineering problems have to be sorted out before the plant is fully up and running. More cash will be required. The venture has requested $10.5m from its shareholders.

The market was disappointed by news from Verona Pharma (VRP) about the clinical trial results for COPD treatment Ensifentrine (RPL554). Two different does were used in combination with Stiolto Respimat. The treatment did work better than the placebo, but the improvement in breathing was not statistically significant. The share price slumped by more than one-third, although there was a small subsequent recovery.

CH Bailey (BLEY) has decided to cancel its AIM quotation and it is asking for shareholder approval. The company is offering to buy back shares at 100p each via a tender offer.

Ariana Resources (AAU) says that its 50%-owned Kiziltepe mine produced 27,110ounces of gold in 2018. Ariana expects its $33m development loan to be fully repaid during 2019.

Tax Systems (TAX) had reduced net debt from £20.5m to £13.9m by the end of 2018. Pre-tax profit of £5.8m is forecast for 2018.

Ideagen (IDEA) is acquiring Cork-based Scannell Solutions, which provides environmental health and safety software, for £3.5m. Annualised revenues are around €1m, of which, two-thirds is recurring.

Consumer engagement technology provider Pelatro (PTRO) has confirmed that 2018 figures are in line with expectations and there was improved cash generation in the second half. Net cash was $1.8m at the end of 2018. finnCap expects 2019 pre-tax profit to double from $2.9m to $6m.

Plexus Holdings (POS) plans to buy back 4.95 million shares owned by LLC Gusar. The price will be 50.5p a share. Gusar will use the cash to buy two POS-GRIP wellhead systems, which it announced it was going to buy one year ago.

Midwich Group (MIDW) has acquired MobilePro AG, which expands the audio visual products distributor into Switzerland. The business has annual revenues of CHF25m.

Pharmaxis has completed a toxicity study for two LOXL2 inhibitors in which Synairgen (SNG) has a 17%carried financial interest. Pharmaxis can brief potential licensing partners with the information gained.

Tracsis (TRCS) is acquiring Compass Informatics, which is a data analytics and systems development business. Tracsis is paying up to €5.15m for the Dublin-based company, which made a pre-tax profit of £600,000 last year.

Portmeirion Group (PMP) has achieved record sales in 2018 and beat the profit forecast of £9.5m. The fastest growth came in the home fragrance division.

Iofina (IOF) achieved record iodine production levels in the second half of 2018. Full year production was 17% higher at 588.8 million tonnes. There should be a further rise in production this year and that could move Iofina into profit.

Brandon Hill has initiated coverage of Karelian Diamond Resources (KDR) and it has valued the company’s Lahtojoki diamond project in Finland at $32.9m, based on an average diamond price of $100/carat.

The People’s Operator (TPOP) has postponed the appointment of an administrator as negotiations with interested parties continue.

Kestrel Opportunities has increased its stake in Pebble Beach Systems (PEB) from 22.2% to 23.1%. Little more than one year ago the stake was below 15%.

Caledonia Mining Corporation (CMCL) has cut 2019 gold production guidance for its Blanket Mine and WH Ireland has downgraded its forecast from 61,200 ounces to 55,500 ounces, which is at the higher end of the guidance. There was 54,5000 ounces of gold produced in 2018.

MAIN MARKET 

Athelney Trust (ATY) is holding the requisitioned general meeting on Tuesday 22 January. Robin Boyle has requisitioned a general meeting in order to get himself reappointed. He left the board last year after a disagreement over the future of the investment company. He wanted to stay on as a non-executive director to shepherd the change in investment management for the trust. The plan is to get Gresham House involved in the investment management. Boyle also wants David Lawman and Paul Coffin to be appointed and the three existing directors, Dr Emmanuel Pohl, Simon Moore and Jemma Jackson, to be removed.

Path Investments (PATH) has signed heads of agreement with ARC Marlborough. The plan is to acquire ARC, which has a nickel and cobalt project in Queensland, via a share issue. Path had £31,000 in the bank at the end of June 2018.

Challenger Acquisitions Ltd (CHAL) has agreed to sell its $300,000 investment in the Dallas Wheel project back to the developers. Challenger has received $27,000 in interest and will receive $50,000 a month, plus interest, for six months.

Gresham Technologies (GHT) has sold its VME mainframe software business for £2m.

Shefa Yamim (SEFA) has sufficient cash to finance continued exploration in the first quarter of 2019. By the middle of the year the gems explorer will be able to estimate how much cash it requires to start trial mining.

Andrew Hore

Andrew Hore – Quoted Micro 7 January 2019

NEX EXCHANGE

VI Mining (VIM) has not made the required $2.19m loan repayment to Tassili by the end of 2018. Tassili also has right of refusal over the first 24,000 ounces of gold production. The loan is secured by a charge over the VI subsidiary that owns the interest in the Ora Pesa concession. VI had to secure additional funding because it could not draw down from a facility provided by chief executive David Sumner the $7m required in August 2018. The lack of cash has held up bringing Ora Pesa in to production and recommencing mining at Minaspampa.

Angelfish Investments (ANGP) has converted its £150,000 loan to Wallet Ads into a 20% stake in the company, which can deliver more than ten million personalised updates per hour for a campaign. The terms of the £150,000 convertible loan to Rapid Nutrition have been amended. Rapid Nutrition is still set to float in London, but it has been further delayed. The loan will be repaid in nine equal monthly instalments of £16,667 starting at the end of January. Interest will be charged at an annual rate of 15%. Interest owed up until the end of February 2018 has been settled by the issue of 50,000 Rapid Nutrition shares at 13.4413p a share and a further 200,000 shares have been issued as a fee for the amended terms. Rapid Nutrition is quoted on the Zurich-based SIX Swiss Exchange and the last share trade was at €0.17. The share price was more than €1 in 2017.

MiLOC Group Ltd (ML.P) has secured an agreement with China Post Advertising, which will help it to promote Aaron Kwok’s AKFS+ hair care products and future celebrity branded products. China Post has more than 50,000 outlets.

Natural resources investor Hot Rocks Investments (HRIP) used £49,000 in cash in operating activities in the six months to September 2018. The NAV is £804,000 and that includes nearly £48,000 of cash.

AIM

Musical instruments retailer Gear4Music (G4M) continues to be hampered by pressure on margins although sales are increasing. Management had expected this pressure to have ended prior to Christmas but it has continued and on top of this were problems at the warehouse with the increased demand. In the four months to the end of December 2018, sales increased by 41%. Peel Hun has cut its 2018-19 pre-tax profit forecast from £2.6m to £800,000 and this took the shine off the premium rating of the shares.

Trading in the first quarter at Cambria Automobiles (CAMB) is ahead of the same period last year. The new car market was hit by changes in emissions regulations and new vehicle sales were one-quarter lower, but gross profit per unit was much higher because of new franchises with the likes of Bentley and McLaren. There will be more upmarket vehicle franchise openings in February. This offset the effect of lower new vehicle sales and there was a similar experience with used cars, although overall like-for-like profit improved. Aftersales profit also improved.

Digital music distribution technology developer 7digital (7DIG) could lose its contract with Juke GmbH for the Juke music service, which was expected to generate revenues of £4m this year. The service could be closed or reorganised so 7digital takes on more responsibility. 7digital also owes HMRC £417,000 and one of its subsidiaries has been served with a winding-up petition. This tax should be paid before the hearing of the petition on 16 January. 7digital has reduced its annualised cost base by £6.2m and it is winning new contracts.

Faroe Petroleum (FPM) continues to reject the bid from DNO. An independent report provides an estimated valuation of between 186p a share and 225p a share. This does not include the previously announced Equinor asset swap or utilisation of Norwegian tax losses. Cash flow of £90m is expected over the next two years. DNO has been buying shares in the market at between 147p a share and 152p a share and it has taken its stake to 30.6% so the 152p a share cash bid is mandatory. This stake plus acceptances takes total acceptances to 43.8%. DNO can improve its offer up until 27 January.

ReNeuron (RENE) has announced the first collaboration for its exosome nanomedicine platform. There is an initial feasibility stage, where no revenues will be generated. If it moves on to the preclinical safety and efficacy stage, then there will be evaluation payments.

Leaf Clean Energy (LEAF) is reducing directors’ fees by 70% and there have also been reductions for the administrator and employees. This is ahead of the hearing of Leaf’s appeal of damages awarded to it in its lawsuit with Invenergy Wind, where a decision is expected later this year. Invenergy is has already paid Leaf $36.4m and a further $14.2m is included in the Leaf balance sheet, but that will depend on the court decision.

Home automation technology developer LightwaveRF (LWRF) increased its first quarter revenues by 156% to £1.15m. That is nearly as much as in the first half of the previous financial year.

Shareholders have authorised the $25m subscription at $1.60 per ADS by Summit Therapeutics (SUMM). Robert W Duggan is subscribing for the shares. The cash will fund the initiation and commencement of patient enrolment for the phase 3 clinical trial of the potential treatment for C.diff.

Tracsis (TRCS) has won a major, multi million contract with a train operating company, covering all its individual franchises. The flow of revenues is difficult to predict.

Alpha FX (AFX) says that its 2018 figures will be ahead of expectations. The growth came in the UK and internationally.

WANdisco (WAND) has secured its first multi-cloud contract, valued at $565,000. The contract with the telecoms company was won with Amazon Web Services.

Richland Resources (RLD) is seeking to obtain investment to recommence mining at Capricorn Sapphire and it is in talks with one party about the sale of the project. The £400,000 convertible loan facility has been extended to the end of February.

Central Asia Metals (CAML) has consolidated borrowings into one facility of $151m, which is provided by offtake partner Traxys. The debt will be repaid monthly within a four year period.

ECR Minerals (ECR) has submitted nine exploration licence applications in the Yilgarn region of Western Australia.

Ethiopian authorities have reconfirmed their support for the development of the Tulu Kapi gold project and KEFI Minerals (KEFI) has taken the first steps for the community resettlement programme.

MAIN MARKET

Circassia Pharma (CIR) has gained shareholder approval for the move to AIM, which will happen on 4 February. Circassia has completed the acquisition of full US commercial rights to Tudorza and the FDA is expected to approve the transfer of the licence by the end of March. There was £41m in the bank at the end of 2018.

Nanoco (NANO) is partnering with Plessey Semiconductors to use quantum dots to shrink microLED pixels by 87%. This will lead to smaller, higher resolution displays.

Gresham Technologies (GHT) has won orders for Clareti software from two major, world banks. Revenues should start to be recognised this year. Over five years the contracts should be worth more than £7m, with £1.8m likely to be recognised in 2019. However, 2018 revenues will be lower than expected at £20m and profit will be below expectations.

Andrew Hore

Andrew Hore – Quoted Micro 31 December 2018

NEX EXCHANGE 

China-based Gamfook Jewellery (GAMF) joined NEX on 24 December. The online retailer of customised jewellery was introduced at 15p a share, and the shares ended the first week at 15.5p (14p/17p).  That values Gamfook at £15.5m. Executive chairman Jindian Lin and his wife own 72.8% of Gamfook. A dividend based on 28% of profit attributable to shareholders is promised.

Part of the £407,000 Sanderson Capital Partners loan to Wishbone Gold (WSBN) has been converted into shares. The conversion of £258,500 was done at 0.1247p a share.

Milamber Ventures (MLVP) reported an increased interim loss of £343,000, up from £263,000. There were net liabilities at the end of September 2018, but the balance sheet has been improved by the issue of shares for cash and to pay off creditors. Problems at apprenticeship training company Eseential Learning are being sorted out.

PCG Entertainment (PCGE) had $913,000 in the bank and shareholders’ funds of £1.02m at the end of September 2018. There was a cash outflow from operations of £817,000 in the six month period to September 2018.

A subsidiary of Lombard Capital (LCAP) is issuing two bonds. The first is a 4% bond, raising up to £50m and expiring at the end of January 2022, and the other is a 4.5% bond, raising up to £90m and expiring at the end of January 2024. It is intended that both bonds should be lised on a recognised exchange.

AIM  

For a change the last major announcement of the year is a positive one. Gordon Dadds (GOR) has completed the acquisition of international law firm Ince UK and it will trade as Ince Gordon Dadds. Trading in the shares recommences on 2 January. The deal will cost £27.3m over four years, plus options over three million shares, and the combined group generated fees of £30.5m in the year to April 2018. The deal should be earnings enhancing in the current financial year.

Earthport (EPO) is recommending a 30p a share bid from Visa Inc. This values the payments technology company at £198m. The bid is 50% higher than the 20p a share placing price in October 2017, but lower than the 40.85p a share placing price in September 2014.

Chamberlin (CMH) improved its trading in the first half and the cash from the sale of the Exidor business has improved its balance sheet. The foundries business moved back into profit in the first half as demand continues to increase for turbo charger housings, which are used for hybrid cars as wells as conventinal ones. The company’s debt has been reduced from £10.5m at the end of September 2018 to £3.7m. The pension deficit has been cut from £4m in the last balance sheet to £1.5m.

Facilities management and security services provider Mortice Ltd (MORT) increased its interim revenues by 10% to $116.7m. Underlying pre-tax profit was 5% ahead at $2.3m. Net debt was $20.1m at the end of September 2018.

TUS International has published a circular for a general meeting in January in order to gain shareholder approval for the acquisition of the Telit Communications (TCM) automotive business, whose reorganisation is near completion.

In the six months to September 2018, Stanley Gibbons (SGI) continues to lose money although costs have been reduced. Revenues fell from £7.14m to £5.03m. Coins and medals are the part of the business still making a profit. The overall loss has been reduced from £2.93m to £2.37m.

The People’s Operator (TPOP) does not expect to appoint a new nominated adviser and the share placing with the owner of LycaMobile has been pulled. The investment of £1.3m in shares (29.9%) and convertible loan notes will not go ahead but the potential investor is considering its options. The AIM quotation will be cancelled on 3 January.

TSX-V quoted PetroTal Corp (PTAL) has gained an AIM quotation. The Peru-focused oil producer is developing its interests at Bretana and growing near-term production.

IT compliance and security services provider GRC International (GRC) increased its interim revenues by 54% to £8.91m, thanks to a boost from GDPR, but it moved from a pre-tax profit of £614,000 to a loss of £2.18m. There was additional investment following the flotation of the company in March. Cash is running out and an overdraft and a loan facility have been secured.

Gaming technology developer Nektan (NKTN) is raising £1.5m at 15p a share, although not all the shares will be issued until the company gets shareholder approval at the AGM on 7 February, and it will generate £2m from the sale of 57.5 of US subsidiary Respin. There are also plans to restructure the conversion terms of loan notes and a shareholder loan. These proposals are dependent on each other going ahead and on the successful negotiation with the HMRC over the payment terms for £2.9m of UK point of consumption tax. There was £1.4m in cash at the end of June 2018, which is similar to the cash outflow from operations in the preceeding 12 months.

Functional food ingredients developer Provexis (PXS) improved interim revenues from £124,000 to £194,000. The company’s Fruitiflow products are being more widely sold and the prospects for the deal with BY-HEALTH in China are positive. Pro forma cash was £556,000.

Veltyco Group (VLTY) is going to launch its own regulated financial trading brand in the first quarter of 2019, although this depnds on regulatory approval.

Oil and gas explorer and producer Cabot Energy (CAB) says that it is still trying to raise cash via a share issue and it would be at a large discount to the current share price. The cash needs to bre raised by the end of January in order to pay overdue creditors and provide working capital.

Building materials sector consolidator SigmaRoc (SRC) has announced its plans to redeem its £10m of 6% convertible loan notes. SigmaRoc is offering 105p for each 100p loan note, plus 0.378p a note in interest payments. The last acceptance date for the tender is 16 January.

Mobile commerce services provider Bango (BGO) will be loss-making in 2018, although there was an EBITDA in the fourth quarter. End user spend more than doubled to £550m. There should be £3.5m in the bank at the end of 2018.

WANdisco (WAND) has secured a three-year agreement with an American healthcare company worth £700,000. The deal involves WANdisco Fusion and comes via the sales partnership with IBM.

Paracale Gold is providing a loan of up to $1.224m to Goldstone Resources (GRL) to finance the development of the Akrokeri-Homase project in Ghana. This mine could be in production in 2020. Paracale will receive 40.35 million warrants exercisable at 1.2p a share, which replace existing warrants.

Mobile payments technology provider MobilityOne Ltd (MBO) has secured an agency and reseller agreement with MBP Solutions for the company’s products in Malaysia.

In the six months to September 2018, Vast Resources (VAST) reported a 8% increase in gold production to 13,352 ounes at the Pickstone-Peerless gold mine in Zimbabwe. There was a 61% increase in copper concentrate produced to 1,526 tonnes at the Manaila polymetallic mine and zinc concentrate produced has nearly doubled to 199 tonnes. Revenues increased from $14.9m to $21.9m. There was still a cash outflow from operations of $1.79m.

Michael Principe and Greg Genske have resigned from the board of TLA Worldwide (TLA) following the sale of its core US business. The agreement with SunTrust Bank to defer capital and interest payments has been extended to 31 January.

Phoenix Global Mining (PGM) has raised £358,000 at 28p a share. There is a warrant exercisable at 28p, lasting until the end of 2021, with every four new shares. The cash will be invested in the Empire copper, gold, silver, zinc and tungsten mine in Idaho, where news of the most recent drilling is expected. A new resource statement will be prepared and additional acreage acquired.

Urban Exposure (UEX) had committed new lending of £522m during 2018. It has secured a £165m loan facility for its joint venture with KKR, as well as a £32.8m loan from Aviva for a single transaction by the joint venture.

MAIN MARKET    

Nanoco (NANO) has achieved the third milestone in its cadmium-free quantum dots technology development and supply agreement with a US customer and triggered a £1.6m. This is the final milestone of three and they have generated £4.2m.

Robin Boyle has requisitioned a general meeting at Athelney Trust (ATY) in order to get himself reappointed. He also wants David Lawman and Paul Coffin to be appointed and the three existing directors, Dr Emmanuel Pohl, Simon Moore and Jemma Jackson, to be removed. The other two resolutions are to terminate Jason Pohl as alternate director and any other director appointed by the time of the general meeting on 22 January.

Standard list shell Stranger Holdings (STHP) is still awaiting UKLA approval for its proposed reverse takeover of waste energy technology developer Alchemy, which was announced in August 2017. Management is hopeful that the deal could go ahead by the end of the first quarter of 2019. Stranger had net liabilities of £435,000 at the end of September 2018.

Dukemount Capital (DKE) has forward-funded and pre-sold its first development at West Derby to a fund managed by Alpha Real Capital. Dukemunt will receive £570,000 for the site and the total funding package for the development will be £3m. The development involves demolishing the existing building and constructing 17 supported living appartments and retail space. Dukemount continues to manage and develop the project on behalf of the supported living housing association that has taken a 50-year lease.

Andrew Hore

I would like to receive Brand Communications updates and news...
Free Stock Updates & News
I agree to have my personal information transfered to MailChimp ( more information )
Join over 3.000 visitors who are receiving our newsletter and learn how to optimize your blog for search engines, find free traffic, and monetize your website.
We hate spam. Your email address will not be sold or shared with anyone else.