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Andrew Hore – Quoted Micro 8 July 2019

NEX EXCHANGE

AIM-quoted Aquis Exchange (AQX) is acquiring NEX Exchange from CME Group Inc, which bought it as part of its £3.9bn takeover of NEX Group. Aquis will pay £1, plus £2.7m for working capital requirements. The deal requires FCA approval so it is unlikely to complete before the autumn.

Arbuthnot Banking Group (ARBB) is purchasing a residential mortgage portfolio for £258m. The loan portfolio has £266m outstanding and the yield is 3.6%.

Equatorial Mining and Exploration (EM.P) is raising £1.3m via a share issue at 0.1p a share and loan notes worth £904,000, which are convertible at the same share price. The cash will be used to acquire Rwanda-based Eastinco.

MESH Holdings (MESH) has reached an early agreement to exercise the option to acquire Sentiance. MESH will issue 4,000 shares for each Sentiance share. Sentiance will have €19m in cash when the deal completes. More than 404 million MESH shares will be issued, which is nearly two-thirds of the enlarged share capital. Trading in the shares is suspended until a circular is published in order to gain shareholder approval.

The forecast 2018-19 loss for health and community care properties developer and modular buildings supplier Ashley House (ASH) has been increased from £1m to £1.6m following clarity about what deals were signed prior to the year end. A return to profit is expected this year.

Ace Liberty and Stone (ALSP) has announced a third interim dividend of 0.84p a share. The ex-dividend date is 11 July.

NQ Minerals (NQMI) has extended its A$4m loan facility to 5 September. The two month extension cost A$160,000.

Gunsynd (GUN) has invested a further $130,000 in Oyster Oil and Gas, taking its stake to 30%.

Trading in Ganapati (GANP) shares has been suspended because accounts for the year to January 2019 have not been published.

Wheelsure Holdings (WHLP) has appointed Cairn as its corporate adviser.

AIM

Science Group (SAG) has launched a 35p a share cash bid for Frontier Smart Technologies (FST) and that is higher than the indicative offer of 30p a share. Frontier advises that shareholders take no action and says that it has received approaches from other parties and there are discussions with one of them about the structure and pricing of any deal.

Independent directors of FFI Holdings (FFI) are recommending a bid of 25p a share, which values the film completion insurance provider at £39.5m. The mandatory offer comes two years after FFI floated at 150p a share.

IMImobile (IMO) continues to grow strongly in the Americas and Europe with 42% growth in revenues last year. The cloud and mobile services provider increased total revenues by 28% to £142.7m, with organic growth of 14% on a constant currency basis. Net debt was £7.5m at the end of March 2019 and cash generation is strong. Thee was £14.6m generated from operating activities last year.

Plastic components and packaging producer Synnovia (SYN) has refinanced its debt. The maximum amount available is £25.3m. The maturity has been extended from June 2021 to June 2023. The full year results will be published on 9 July.

Bango (BGO) has partnered with appScatter (APPS) in order to help the latter’s app development clients to grow in-app revenues.

Gfinity (GFIN) has generated better than expected revenues in the year to June 2019. The esports company expects to breakeven by 2021.

Mirriad Advertising (MIRI) is raising £14.18m via a placing at 15p a share, while an open offer could raise up to £3.94m. Revenues remain modest and the cash is required to cover continuing losses. Cash consumption is running at £1m a month and 2019 revenues of £1.1m are anticipated.

Churchill China (CHH) has generated higher than expected revenues in the hospitality sector, particularly in Europe. Full year trading will be ahead of expectations. The interims will be announced on 29 August.

Mirada (MIRA) is raising £2.1m from the sale of its Mirada Connect car park payment services business to part of VW. The business generated revenues of £633,000 and pre-tax profit of £122,000 in the year to March 2019. This will enable Mirada to concentrate on its digital TV business, where annual revenues are approaching $12m. Mirada had net debt of $4.9m at the end of March.

LightwaveRF (LWRF) has signed an agreement with Google to jointly market Lightwave compatible smart speakers that provide voice-controlled lighting.

Intelligent Ultrasound (MED) has secured its first OEM agreement for its AI-based imaging software and the share price nearly doubled on the back of the deal. The technology will be integrated into ultrasound systems. Initial royalties are expected in 2021.

Cellcast (CLTV) plans to sell its operating subsidiary to its management team, but it is unlikely to generate a good price because of its poor performance. The company will become a shell. Fraser Cropper of e-cigarette company Totally Wicked has taken a 3.7% stake.

MAIN MARKET

InnovaDerma (IDP) has reassured investors that it is on course to more than double pre-tax profit to £1.5m in the year to June 2019. The pharma and beauty products supplier had £1.7m in the bank at the end of June 2019, which is better than expected. It is still down from £1.9m one year earlier.

Associated British Engineering (ASBE) has appointed FRP Advisory to find a buyer for loss-making British Polar Engines Ltd. There is a deficit of £1.35m on the pension scheme.

Argo Blockchain (ARB) has announced further outperformance by its crypto mining activities as the bitcoin price continues to recover. The company had £3.07m of crypto assets in the balance sheet at the end of June 2019, which is more than £200,000 more than expected. Additional equipment is being acquired.

Rainbow Rare Earths (RBW) is raising £4.3m at 3p a share. The money will finance production growth at the Gakara rare earth project. There should be some cash left to pay for additional drilling.

Papillon Holdings (PPHP) has revised its 2018 accounts. The original version did not reflect two transactions with director James Longley.

Gulf Keystone Petroleum (GKP) has paid an initial dividend of 5.68p a share with a further dividend double that level (depending on exchange rates) due to be paid after the interim figures are published.

Boston International Holdings (BIH) has returned from suspension following the termination of the reverse takeover of Cornhill FX, which was first announced in August 2017. Boston could not raise the cash required. Management is assessing future strategy. The costs of the proposed transaction mean that cash is below £150,000, which is less than 50% of share capital.  

Andrew Hore

Andrew Hore – Quoted Micro 1 July 2019

NEX EXCHANGE

NEX Exchange company of the year

National Milk Records (NMRP)  

Dairy and livestock services provider National Milk Records has been on NEX for more than a decade. The share price has increased by more than 500% over the past decade. In the latest quarter to March 2019, revenues improved from £5.32m to £5.56m, even though the number of cows on the database had declined from 743,054 to 713,379 over a 12-month period which hit milk recording revenues. Income from specialist testing has increased. Overall, growth was not as strong as in the first six months, which benefitted from one-off income. An oversupply of milk in recent weeks has hit the milk price and this has held back spending by farmers.

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Wealth management group AFH Financial Group (AFHP) is raising up to £20m via a convertible unsecured loan stock issue. The conversion price is 420p a share, up from 360p before the issue was announced, and the interest rate is 4%. This cash will fund further acquisitions. There are five that are already in due diligence.

Health and community care properties developer and modular buildings supplier Ashley House (ASH) is not likely to achieve financial close on three projects, so it will lose money in the 14 months to June 2019. The second half will be profitable. The company should return to profit in 2019-20.

Property investor Ace Liberty and Stone (ALSP) has increased the valuation of its portfolio by 22% to £86.9m at the end of April 2019. Annualised rental income is £6.5m.

Investment company Angelfish Investments (ANGP) had cash of £1.48m, but debt was £3.35m and net liabilities of £543,000 at the end of 2018. This means that the preference dividend cannot be paid because there are no distributable reserves. The decline into net liabilities was mainly due to a £942,000 write-down on loans made to OME. Pre-revenue investments are included at cost.

PCG Entertainment (PCGE) has appointed First Sentinel as its corporate adviser. PCG has not replaced its nominated adviser so it will lose its AIM quotation. Acquisition talks continue.

First Sentinel (FSEN) has invested £75,000 in fintech company Capable Finance in return for a 50.01% stake and a £25,000 loan with an annual coupon of 15%. First Sentinel directors have participated in a £110,000 placing and they own most of the rest of the shares. First Sentinel has gained a Euronext Dublin listing for its 7.5% bonds, May 2024. Some of this cash will be invested in the activities of Capable Finance.

Shareholders in Valiant Investments have approved the change of name to Eurocann International (BUD) and the focus on medicinal cannabis. It has disposed of its investment in Flamethrower one of its own directors and raised £263,000 at 1.5p a share. Valiant had £1,289 in the bank at the end of 2018. There is still a £200,000 convertible investment in All Star Minerals (ASMO). The company has a stake in North Bud Farms Inc, which has a cannabis production facility in Quebec.

AfriAg Global (AFRI) has raised £250,000 at 0.1p a share. This ash will contribute to the £700,000 investment in Apollon Formularies. Executive chairman David Lenigas has bought 17 million shares at 0.11941p each.

Ananda Developments (ANA) has formalised the joint venture with Anglia Salads and JE Piccaver to create DJT Group. Ananda and Anglia which each own 50% of DJT, which will apply for a licence to cultivate and supply cannabis. Ananda had £141,000 in the bank at the end of January 2019.

Sativa Investments (SATI) subsidiary PhytoVista Laboratories has completed an independent blind test consumer cannabidiol products for The Centre for Medicinal Cannabis. Many proved to have too low or too high a content of relevant ingredients.

MetalNRG (MNRG) has terminated its heads of terms with Mkango Resources relating to earning up to 75% of the Thumbani licence because it could not come up with the finance required.

Wishbone Gold (WSBN) increased its revenues from $8.2m to $10.9m, although the loss doubled to $1.89m. That is mainly down to a $797,000 loss on an equity sharing agreement. The cash outflow from operations fell from $904,000 to $813,000.

Via Developments (VIA1) reported an increase in interim loss from £10,000 to £259,000, because of higher finance costs.

Cadence Minerals (KDNC) is raising £1.6m at 0.11p a share and this will fund the investment in the Amapa iron ore project.

Auxico Resources Canada Inc (AUAG) is leaving NEX on 26 July. The minerals explorer has been on NEX for less than nine months. It does not believe it is large enough to benefit from a quotation on NEX as well as the Canadian Securities Exchange.

Small Cap Awards 2019 winners

Company of the year

Beeks Financial Cloud (BKS)

Beeks Financial Cloud provides cloud-based connectivity and infrastructure services provider for automated trading of financial assets. It also provides cyber security services to prevent distributed denial of service attacks. Beeks was formed in 2010 and has consistently grown its revenues. Beeks joined AIM in November 2017 and in May it acquired the trading assets of US-based Commercial Network Services and this adds 1,000 customers. Progressive Research forecasts a rise in pre-tax profit from £1.2m to £1.4m in the year to June 2019.

IPO of the year

Cake Box Holdings (CBOX)

Egg-free cakes supplier Cake Box won this award the day before its first anniversary on AIM. Cake Box raised £16.5m at 108p a share and at one point the share price was nearly double this level. There is still a premium of more than 60% to the flotation price. In the year to March 2019, revenues increased from £12.8m to £16.9m and underlying pre-tax profit improved from £3.3m to £4m. Two new distribution centre sites have been acquired. There is scope to more than double the business, which currently has 113 stores.

Impact company of the year

Kromek (KMK)

Kromek has developed a range of radiation detection and imaging products based on cadmium zinc telluride (CZT) technology. The company focuses on three sectors – medical imaging, nuclear detection and security. Kromek has been winning multi-million pound international contracts and it has a strong balance sheet following a recent fundraising. Revenues increased by 23% to £14.5m in the year to April 2019. Kromek is losing money, but it is on course to reach breakeven in a couple of years. The orders that are already won underpin the revenue forecasts for the coming years.

Executive director of the year

Mike Creedon, chief executive of Scientific Digital Imaging (SDI)

Mike Creedon has been on the SDI board since 2010, having previously been a finance director of two former AIM companies, Ideal Shopping Direct and Ninth Floor. SDI is an acquisitive digital imaging and sensor control technology company. The acquisition record is good. A trading update has led to a small pre-tax profit upgrade to £2.9m. The 2019-20 pre-tax profit is maintained at £4.1m.

Analyst of the year

George O’Connor, Stifel Nicolaus

Journalist of the year

Simon Thompson, Investors Chronicle

Fund manager of the year

Marlborough Nano Cap Growth

Lifetime achievement

Andrew Buchanan

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AIM 

Zoo Digital (ZOO) slipped back into loss in the year to March 2019, but it should return to profit this year. Demand for film and TV localisation services continues to grow but momentum has not been as expected.

Wynnstay (WYN) had already warned about tough second quarter trading, but underlying pre-tax profit held up reasonably well, falling 15% to £4.3m, even though revenues were 19% higher at £218.5m. The increase in revenues was mainly down to commodity inflation. The warmer winter weather hit demand for animal feed, although fertiliser demand has been strong. The agricultural merchanting depots acquired in the past year are moving towards profit. There has been some rationalisation of the depot network. The interim dividend has been raised 4% to 4.6p a share.

China New Energy Ltd (CNEL) has applied for a listing on the Hong Kong Stock Exchange and it will ask shareholders for permission to cancel the AIM quotation, subject to a successful Hong Kong listing.

Harwood Wealth Management (HW.) has increased its assets under influence to £5.3bn, helped by recent acquisitions. There is a strong pipeline of additional acquisitions. Interim pre-tax profit improved from £930,000 to £1.63m.

MAIN MARKET 

BATM (BVC) is raising $18m, 20% more than initially sought, at 42.5p a share. Most of the cash is earmarked for the cyber and networking activities. The rest will go towards medical activities. The cash will help in securing partnerships with larger technology companies.

Argo Blockchain (ARB) has varied and extended its contract with Canadian data centre provider GPU.one. This will provide access to 14MW of power at lower prices. This increases capacity by 47%, utilising the equipment that has already been ordered, and cuts power cost by 39%. The deal starts on 25 June and lasts three years. Argo can give four months’ notice. A previous deposit of £1.44m has been turned into an investment in GPU.one.

Tex Holdings (TXH) says the engineering operations have started the year slowly, but trading should return to previous levels. The plastics division is trading in line with expectations and there is investment in new machinery. The shares remain suspended.

Canadian Overseas Petroleum Ltd (COPL) has joined the standard list. The oil and gas company is focused on Nigeria and sub-Saharan African.

Avocet Mining (AVM) is holding a general meeting on 18 July to gain shareholder approval for a voluntary liquidation. Avocet has sold its interest in the Tri-K gold project in Guinea for $21m. This leaves a small residual cash sum. There is unlikely to be anything substantial left to distribute to shareholders.

Oil and gas company Aminex (AEX) shareholders have approved the switch from a premium listing to a standard listing. It is also cancelling its Dublin listing. It may have been difficult to get the full benefits of the lighter regulation of a standard listing if the company were still listed in Dublin.

Andrew Hore

Andrew Hore Quoted Micro 13 May 2019

NEX EXCHANGE

National Milk Records (NMR) improved revenues from £5.32m to £5.56m in the three months to March 2019. Disease testing revenues grew at the fastest rate. This quarter did not benefit from one-off revenues like the first two quarters of the financial year.

Gledhow Investments (GDH) reported a reduction in net assets to £735,000 at the end of March 2019. Gledhow has trebled its money in Block Energy and sold the stake, but most of the proceeds came after the end of March.

Primorus Investments (PRIM) believes that Sport:80 has missed the chance to float, but TruSpine still has a chance to become quoted. International payments and lifecycle software provider Zuuse could be ready for a flotation within 18 months.

Wheelsure Holdings (WHLP) has finally published its results for the year to August 2018. They show revenues falling from £226,000 to £96,000, although the loss was similar at £336,000. UK and Netherlands demand were weaker than expected.

Health and community care properties developer and modular buildings supplier Ashley House (ASH) says its joint venture Morgan Ashley has achieved financial close on two more projects. A further three could be closed in the current quarter. Even so, group pre-tax profit will be lower. There will be an update in July.

Sativa Investments (SATI) is changing its name to Sativa Group to reflect that it is a trading company with a greater focus on UK operations. The application for a Home Office research and development licence to grow medicinal cannabis is proceeding well. This is for its own requirements as well as growing some varieties for order.

Ace Liberty and Stone (ALSP) has acquired properties in Warrington and Middlesbrough for more than £10m. The Communities and Local Government department is the long-term tenant of both properties. The Warrington property cost £2.9m and the Middlesbrough property £7.125m.

In the first four months of 2019, NQ Minerals (NQMI) has produced 6,857 DMT of lead concentrate, 4,763 DMT of zinc concentrate and 29,389 DMT of pyrite concentrate.

Giles Brand has increased his stake in EPE Special Opportunities (ESO) from 23.1% to 30.5%. EPE has a NAV of 241.3p a share. Almon I Holding SA has a 3.16% stake in Coinsilium Ltd (COIN).

MetalNRG (MNRG) is delaying a move to the Main Market because of the uranium exploration ban in The Kyrgyz Republic, which means that the proposed farm-in agreement for the Kamushanovskoye uranium deposit has been suspended. Due diligence is progressing on the Thambani licence and the transaction agreement with Mkango Resources by the end of June. Once it has funding, MetalNRG will make progress with the Gold Ridge project.

Panther Metals (PALM) reported a doubled cash outflow from operating activities of £309,000 last year. There was £1,247 in the bank at the end of 2018.

AIM   

Begbies Traynor (BEG) says that trading was ahead of expectations. The business recovery and property services provider says both divisions performed well. Shore has upped its pre-tax profit forecast for the year to April 2019 by 6% to £7.1m, compared with £5.6m the year before. The full year figures will be published on 9 July.

Interactive Investor has decided not to make a bid for Share (SHRE).

RA International (RAI) has won two new contracts. A five year contract worth $9.8m has been awarded by the United Nations Support Office for vehicle and equipment fleet services in Somalia. This is for ten locations compared to one previously. There is also a contract for construction services relating to the US Embassy in Denmark.

Immupharma (IMM) intends to merge its two French subsidiaries and either get private equity backing or float the combined business on a European stockmarket. The business is developing the Nucant cancer programme (Elro) and the peptide platform (Ureka). Immupharma will concentrate on Lupus treatment Lupuzor and it is talking to potential corporate partners.

India-focused online fashion retail investment company Koovs (KOOV) has agreed a £10.5m cash injection at 15p a share by a subsidiary of Indian retailer Future Group.

Bidstack (BIDS) is raising £5m at 12.5p a share. This will finance the growth of the in-game advertising business. Bidstack reversed into Kin Group nine months ago and that that time raised cash at 6p a share.

Trading in contract research organisation Venn Life Sciences (VENN) shares is suspended ahead of the reverse takeover of Open Orphan DAC for £5.7m in shares. The strategy is to gain approval for and provide orphan drugs for the European market. Cash will be raised to fund the new strategy.

Keystone Law (KEYS) increased full year revenues from £31.6m to £42.7m and pre-flotation costs profit jumped from £2.54m to £4.75m. This year’s profit forecast had already been upgraded at the time of the trading statement and the figure is maintained at £5.6m. This year’s dividend is set to rise from 9p a share to 10.3p a share. The cash pile is expected to rise from £6.3m to £7m.

N+1 Singer has upgraded its profit forecasts for Cambria Automobiles (CAMB) following its interims. The pre-tax profit forecast for the year to August 2019 has been increased by 13% to £11m, up from £9.8m last year and not far off the figure for 2016-17. Capital investment is peaking and net debt is expected to rise to £9.1m by the end of August 2019. NAV is set to rise to 68p a share.

Vertu Motors (VTU) reported strong full year figures with growth in used cars and aftersales offsetting the downturn in new car sales. Pre-tax profit of £23.7m was higher than forecast but lower than the £28.6m reported for the previous year. Cash generation is also better than expected. This year’s forecast has been trimmed to £25.7m. The share price remains below its NAV of 44.9p a share.

Osirium Technologies (OSI) is considering raising additional funds in order to fully exploit its new product. Opus is a cyber security product for IT process automation. Additional business development managers and distribution partners have been taken on and additional cash would enable further geographic expansion. Osirium is good at retaining clients and Opus provides an additional product to sell to them.

Packaging manufacturer Robinson (RBN) has increased its revenues by 15% in the first four months of the year and most of that is due to higher volumes. This means that it is well on its way to growing full year revenues from £32.8m to £36.1m even though second quarter revenues may be lower due to destocking. Further capital spending has been funded by cash from operations.

MAIN MARKET 

Ingredients supplier Treatt (TET) increased interim revenues by 6% to £56.6m and pre-tax profit was 7% higher at £6.2m. Additional shares in issue mean that earnings per share were slightly lower. The core citrus business revenues fell slightly but other areas grew. Net cash was £9.4m at the end of March 2019. This will be spent on the relocation of UK operations and there will be net debt by the end of September 2019.

Air Partner (AIR) slipped out its figures for the year to January 2019 well after the market closed on Thursday. Even so, there was a positive share price reaction and there were no real disappointments. Underlying pre-tax profit was flat at £5.8m. The total dividend was edged up to 5.6p a share.

Macfarlane (MACF) has acquired protective packaging distributor Ecopac for £3.9m. A pre-tax profit of £500,000 was generated in 2017-18. Macfarlane will provide additional products for Ecopac to distribute.

Argo Blockchain (ARB) will hold the requisitioned general meeting on 16 May. Frank Timis is hoping to change the strategy of the company and conserve the cash pile for other uses. He wants Jonathan Bixby and Mike Edwards removed from the board. Argo expected to generate £220,000 in cryptoassets in April, which is similar to cash operating costs. These costs are expected to rise to £300,000 in May but the month should still be cash neutral.

Cardiff Property (CDFF) increased its NAV from 21.78p a share to 21.84p a share in the six months to March 2019. The interim dividend has been raised by 5% to 4.6p a share. Activity in the Thames Valley area has slowed in the first half.

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 20 August 2018

NEX EXCHANGE        

Health and community care properties developer Ashley House (ASH) reported a much-improved profit for the year to April 2018. There was a strong second half performance because of the completion of four schemes. Full year revenues were flat at £18.5m, while pre-tax profit jumped from less than £100,000 to £1.8m, although that includes a £500,000 write back of a previous impairment charge. Net debt was reduced from £2.5m to £1.5m. The housing and health property pipeline is valued at £206m, covering 22 schemes. The F1 Modular business lost money last year but trading appears likely to improve.

Ananda Developments (ANA) has acquired $200,000 of convertible loan notes in iCAN Israel-Cannabis Ltd, which focuses on medicinal cannabis. This is the first investment for Ananda and the convertibles have an annual interest rate of 6%. The interests of Ananda director Charles Morgan have assigned $100,000 of the convertibles to the company. iCan has subsidiaries involved in organising cannabis symposiums and cannabis-based research services, plus a 5% stake in CannRx Technology Inc, which has developed liquid soluble cannabinoids for use in treatments, and a 20% stake in CMTREX, which is developing a trading platform for cannabis.

Nigel Wray has reduced his stake in High Growth Capital (HASH) from 5.99% to 4.72%. Healthperm Resourcing Ltd (HPR) non-executive chairman David Sumner has bought 29,230 shares at 190p each, taking his stake to 84.7%.

Early Equity (EEQP) says trading in the company shares will resume on 28 August. Trading had been suspended on 16 May. The resumption follows an agreement with NEX Exchange that will change how shares are distributed to related parties. Early Infinity Holdings (EI) is the exclusive distributor for Yicom Global, where Early Equity is a 47. 1% shareholder. EI’s agents sell the products in Malaysia and elsewhere in south east Asia. EI incentivises its agents by gifting them shares in Early Equity. These were deemed to be a gift rather than a trade, so they were not reported. A new nominee company with two trustees that are not shareholders in Early Equity has been set up. This will hold shares for the benefit of agents of EI. Agents will receive a warrant certificate. These agents own 46.7% of Early Equity and shares equivalent to 6.29% of the company will be transferred to the nominee company. Early Equity previously announced that it wants to move to a standard listing. The company’s NAV was £1.54m, including £429,000, at the end of 2017.

Coinsilium Group Ltd (COIN) is investing $125,000 in Bundle Network Ltd, which is developing an online platform that enables the trading of cryptocurrencies. Coinsilium will also receive Bundle Network crypto tokens.

MetalNRG (MNRG) has paid a $50,000 option fee, which could lead to the company gaining a 51% stake in a new company that holds the rights to the Kamyshanovskoye uranium project in the Kyrgyz Republic. The project has an inferred uranium resource that could be worth $144m at $26/lb, plus exploration upside. International Mining Company owns 100% of the project and it would be put into a new vehicle, where MetalNRG would inject cash to gain its majority stake. MetalNRG has 90 days to undertake due diligence and review data. If the option is not taken up the option fee would be converted into a 2.5% stake in the new vehicle.

VI Mining (VIM) is starting its drilling campaigns at minas Pampa and Rosario de Belen, while the vendors are in discussions about changes in the terms of the deals. The timing of the due payment has been extended while the talks continue.

Panther Metals (PALM) has appointed Ariana Resources (AAU) boss Dr Kerim Sener as a non-executive director.

Ecovista (EVTP) is asking for shareholder approval for a resolution that will enable it to issue up to 3.486 billion shares so that management can continue with its strategy.

AIM   

Gatemore Investments has increased its stake in TLA Worldwide (TLA), the company famous for issuing a profit warning after the market closed prior to Christmas 2016, from 7.4% to 12.2%. Bart Campbell has stepped down as executive chairman of TLA, but he will continue to receive his monthly salary until the end of the year.

Last year, revenues fell by nearly one-third to £24m at microwave electronic products supplier Filtronic (FTC) but it had already been flagged. The ending of a low margin contract meant that pre-tax profit fell from £2.16m to £1.23m, although that includes exceptional finance charges of £486,000 due to exchange rate movements. The broadband and wireless divisions are being merged because they have similar customer bases. There is net cash of £3.6m plus available bank facilities. Investment in new products continues and there is long-term demand from investment in 5G networks and security-related areas.

Marshall Motor (MMH) reported a decent set of figures given the tough new car market, which is exacerbated by the decline in diesel car sales. There was a small dip in continuing revenues but underlying pre-tax profit edged up to £16.4m. Used vehicle profit improved. The dividend is maintained at 2.15p a share. Trading will be even tougher in the second half, partly due to testing regulation changes, and full year profit is expected to decline from £29.1m to £24.2m. There is a strong balance sheet with a NAV of £201m.

Zamano (ZMNO) has ended discussions with its potential reverse takeover target. This means that cash is likely to be returned to shareholders.

Condor Gold (CNR) has been granted an environmental permit for developing a processing plant for the La India project by the Nicaragua authorities. Gold production could be 80,000 ounces a year from a single open pit. Accounts for the six months to June 2018, show cash of £1.57m.

Abzena (ABZA) is recommending a 16p a share cash bid from Astro Bidco, which values it at £34.4m. The life sciences company joined AIM four years ago when it raised £20m at 80p a share. It needs additional finance pumped into the business.

Oil and gas producer Empyrean Energy (EME) has received a $906,000 tax refund from the IRS from the 2016-17 tax year.

SalvaRx Group (SALV) is selling its business to a Toronto-quoted company in return for shares, most of which will be distributed to shareholders. The 94.2% stake in cancer drugs developer SalvaRx Ltd is being swapped for 757.9million shares in Portage Biotech Inc, which are deemed to have a value of $67.5m. SalvaRx shareholders will receive 18 Portage shares for each SalvaRx share they own if they approve the disposal. SalvaRx will retain around 100 million Portage shares and become a shell.

ClearStar (CLSU) has been named as preferred contract labour screening provider for Gulfstream Aerospace. This should contribute to a reduction in loss this year.

Premier African Minerals (PREM) has raised £750,000 at 0.18p a share. Premier plans a drilling programme of up to 2,750 metres to expand the resource base at the RHA Tungsten mine. The cash should last until the end of 2018.

MAIN MARKET  

Tex Holdings (TXH) reported a slump in interim pre-tax profit from £423,000 to £96,000 even though there was a small reduction in admin expenses. There was a much better contribution from the plastics division but that was more than offset by the slump in profit by the engineering division due to delays in orders. Metal fabrication and powder coating business Argento UK has recently been bought. The interim dividend is unchanged at 2.5p a share.

Nanoco (NANO) expects the first displays using its cadmium-free quantum dots to be launched before Christmas. Volume production is expected at the new Runcorn plant before the end of 2019. The 2017-18 revenues were lower than expected because it could not recognise a payment from a large customer. Net cash is estimated at £7.9m at the end of July 2018.

Dukemount Capital (DKE) reported an increase in full year loss from £177,000 to £286,000. The NAV was £379,000 at the end of April 2018. There is £148,000 in the bank. Dukemount is on the brink of moving forward with its first two supported living developments.

PV Crystalox Solar (PVCS) has settled its claim with a customer. The customer will pay a total of €28.8m, of which the outstanding payment of €14.3m will be paid at the end of November. The customer has also waived the delivery of the solar wafers that were supposed to be supplied.

Andrew Hore

Andrew Hore – Quoted Micro 14 May 2018

NEX EXCHANGE   

Ashley House (ASH) is expected to achieve its full year profit target of £1.8m, although that includes a non-cash write back. The health and community care property developer had year-end net debt of £1.5m. The Morgan Sindall joint venture has reached financial close on its first extra care apartments and bungalows scheme in the Isle of Wight with a further scheme expected to reach financial close in the next few weeks. Modular building business F1 Modular lost money last year. There is work manufacturing classrooms for schools and projects in the retail sector so it is not dependent on residential and health development. Maureen Moy has taken her stake to 10% after buying 1.9 million shares at 13.23p a share.

Dairy and livestock services provider National Milk Records (NMR) generated revenues of £5.32m in the three months to March 2018. This means that revenues are £1.51m ahead so far this year, although the comparatives are weak. Herdwise, the screening service for Johne’s disease and other testing services are providing growth with a small improvement from milk recording services. Rising milk supply has started to hold back milk prices. There will be a one-off benefit in the fourth quarter and the first quarter of next year from a contract to supply 10,000 genomic tests that should help to provide information to improve resistance to bovine TB. NMR is one of the nominees for NEX Exchange company of the year at the 2018 Small Cap Awards.

Forbes Ventures (FOR) says that the majority shareholder in challenger bank Civilised Investments Ltd has exercised warrants that increased its shareholding to 95.7. Warwick Capital Partners is also underwriting a £12m subscription, although £4.65m of this can be subscribed by minority shareholders. This would increase the overall valuation of the bank to £20m. Forbes owns 0.05% of Civilised Investments prior to the subscription and it has not said if it will be investing any more cash.

Gledhow Investments (GDH) had £172,000 in cash at the end of March 2018 but £20,000 is trapped in a Beaufort Securities account. NAV has increased from £510,000 to £869,000.

Gunsynd (GUN) says that Brazil Tungsten Holdings, the company it owns a 6.18% stake in, has restarted mining operations after a government suspension was lifted.

Coinsilium Group Ltd (COIN) will advise FANTOM Foundation on the $39.8m token generation event due to start on 15 June. FANTOM is using Directed Acyclic Graph (DAG) as a smart contract platform. This is an alternative to blockchain, which should be faster and have lower fees.

IMC Exploration Group (IMCP) is focusing on the completion of works programmes in its three principal projects. The joint venture with Trove Rehabilitation only requires ministerial approval to complete. Eamon O’Brien has been appointed as a director and he will become chairman. Kathrine Byrne is also joining the board. Nial Ring and Liam McGrattan will step down from the board.

AIM   

A strong performance in the used vehicles market and continued growth in aftersales helped to offset the downturn in the new vehicles contribution at Cambria Automobiles (CAMB) in the six months to February 2018. Underlying operating profit still fell from £5.8m to £5.3m. Interim pre-tax profit was £4.8m. Full year pre-tax profit is expected to decline from £11.3m to £9.5m. The significant capital investment programme continues but net debt is minimal.

Vertu Motors (VTU) also performed well despite the tough background in the motor dealer sector. In the year to February 2018, adjusted pre-tax profit fell from £31.5m to £28.6m on flat revenues. The full year dividend was increased by 7% to 1.5p a share. It appears that trading may be starting to improve and the benefits of the current investment programme are yet to show through. Net cash is £19.3m. A further dip in profit to £25m is expected this year.

CEPS (CEPS) reported flat 2017 revenues but the underlying pre-tax profit jumped from £146,000 to £902,000. The biggest improvement in profit came from Friedman’s and Aford Awards, while CEM Press made a larger loss.

TyraTech Inc (TYR) says sales of the PureScience poultry mite treatment are building in the US and a launch is planned in Europe. Trials of a treatment for intestinal worms in pigs have shown a 70% reduction in the worms. TyraTech has shown that it can develop effective products and the remaining cash from the sale of Vamousse will finance further product development and trials.

Deltex Medical (DMG) had a tough 2017 but lower cost meant that the loss was reduced. The medical monitoring equipment and consumables supplier has won significant contracts in the US and France. Revenues dipped from £6.3m to £5.9m, while the loss was down from £2.4m to £2m. Annualised cost reductions of £1m will partly show through in 2018. The UK remains tough with potential recovery later in the year. International business should grow. A £2m fundraising should provide enough cash to invest in the technology and cover a reduced loss.

HaloSource Inc (HALO) has disappointed the market again. This time the auditors have not allowed some of the sales shipped at the end of 2017 to be included in revenues. Cantor Fitzgerald has maintained its 2018 loss forecast at $3.4m, down from $5.7m. The cash outflow should be lower.

Sprue Aegis (SPRP) has come to an agreement with BRK over the termination of their distribution and manufacturing agreements. Sprue Aegis will have to pay £11m in instalments up until December. There will be a £3.8m exceptional charge in the 2017 accounts. The full year results will be published on 15 March.

Wey Education (WEY) reported interim revenues 44% ahead at £1.74m and an improvement in underlying pre-tax profit from £75,000 to £145,000. An initial contribution from Academy 21 accounted for part of the improvement. A 2017-18 profit of £500,000 is forecast, rising to £2.5m the following year.

Trading in the shares of Lionsgold Ltd (LION) has been suspended following the completion of the acquisition of Goldbloc, which has developed a digital gold currency. This is deemed as a change of business. The suspension could last up to four months.

Fox Marble (FOX) increased revenues by 50% to €1.2m in 2017 and lost €3.4m. This year will be more significant with the processing factory up and running and capital investment made in machinery. There was €440,000 in the bank at the end of April 2018.

Out-of-hospital care services provider Totally (TLY) has secured the renewal of an urgent care services contract worth €1.2m with the Northumbria Healthcare NHS Foundation Trust.

Westminster Group (WSG) has admitted that a previously announced Middle East contract is in Iran and it has still to become effective. The current political situation could scupper the deal or at least delay it.

Microsaic Systems (MSYS) has signed a distribution agreement with Rightek, which will distribute the Microsaic 4500 MiD mass spectrometry detector in Taiwan.

MAIN MARKET    

Stem cell services provider WideCells Group (WDC) has commitments to invest £1.47m at 3p a share and is offering the chance of additional investment of up to £450,000, via a bookbuild using the Teathers app and that closes on 21 May. WideCells has still not been able to publish its 2017 accounts so trading in the shares remains suspended. Directors have loaned the company £215,000. At the end of June 2017, there was cash of £869,000 and debt of £634,000, before any of the director loans. WideCells intends to repay £120,000 of debt, spend £150,000 on product development, £110,000 on the CellPlan platform and £33,000 on WideAcademy. The other £1m plus will pay expenses and provide working capital.

Nanoco (NANO) will receive a £1.8m milestone payment from its unnamed US-listed partner. This is the second of three milestone payments.

Falcon Media House (FAL) has raised a further £200,000 from a convertible loan note issue, taking the total to £3.14m. The conversion price is 2.5p a share.

Treatt (TET) has sold pressed vegetable seed oils supplier Earthoil Plantations for £11m. That takes pro forma net cash to £17.5m. In the six months to March 2018, Treatt increased revenues by 14% to £53.6m and underlying pre-tax profit improved from £4.79m to £5.77m.

Andrew Hore

Andrew Hore – Quoted Micro 12 March 2018

NEX EXCHANGE   

Shepherd Neame (SHEP) improved its interim revenues and underlying pre-tax profit. Revenues were 6% ahead at £84.1m and underlying profit edged up from £5.7m to £5.8m. The interim dividend has been raised from 5.62p a share to 5.75p a share. Net debt was £79.5m. The main growth in revenues was in the managed pubs and hotels division. There was an underlying improvement in the profitability of the brewing business, where own beer volumes were 4.2% higher.

Ashley House (ASH) has reached financial close on the Scarborough extra care housing development. There are 63 apartments plus communal areas and the gross development value is £10m. completion is expected in spring 2019. A housing development and health scheme are likely to follow. This development is not part of the Morgan Sindall joint venture. Non-executive director Christopher Lyons has bought 31,000 shares at 10.09p a share.

EPE Special Opportunities (ESO) had a fully diluted NAV of 239p a share on 5 March 2018 but that was prior to the Luceco profit warning. The NAV included Luceco (LUCE) shares at 77.8p each but the price has subsequently fallen to 57.2p a share. EPE is the largest shareholder in LED lighting products supplier and this was the second profit warning in three months. The original 2017 profit expectation was £16.7m and this has been cut to £11m.

Western Selection (WESP) has raised £668,000 from the disposal of shares in Swallowfield (SWL) and it has a remaining stake of 7.71%. Western sold 120,000 Swallowfield shares at 330p each and 80,000 at 340p each. Last month, personal care products supplier Swallowfield bought men’s grooming brand, Fish for an initial £2.7m.

Ace Liberty and Stone (ALSP) has issued £4.76m of convertible loan notes as part of the £4.85m open offer. A holder of an existing £500,000 loan note is converting into the latest convertible loan notes and like the other subscribers is receiving one warrant for each £1 of loan notes.

MetalNRG (MNRG) says a licence has been granted relating to the Palomino cobalt project, where the company has the right to acquire a 100% stake in return for two million shares at 1.5p each. MetalNRG is also issuing 500,000 shares for work that has already been carried out.

Crossword Cybersecurity (CCS) has raised £2.16m at 270p a share. The cash will be invested in sales and marketing and developing new cyber security products.

Good Energy (GOOD) says that holders of £3.6m of its first energy bonds have agreed to retain them, while the other £4.3m worth will be repaid on 29 March.

Co-chairman David Sumner has increased the amount of Healthperm Resourcing Ltd (HPR) loan notes he will subscribe for to £5m. The outstanding balance is currently £2.7m and additional tranches of up to £200,000 can be subscribed for each month.

London Capital Group Holdings (LCG) is selling a 91.5% stake in its Tradex and 100% of other subsidiary companies to its main shareholder in return for £4.64m of loan notes with a coupon of 8%. The costs of the NEX quotation will also be covered by the buyer. The remaining 8.5% of Tradex can be acquired for £431,000 in loan notes. The disposal requires FCA approval. London Capital will seek a fintech business to acquire within the required six month period.

PCG Entertainment (PCGE) and Wishbone Gold (WSBN) have joined NEX. They are both retaining their AIM quotations and are chaired by Richard Poulden.

AIM   

VR Education has raised more cash than it originally asked for. It has raised £6m at 10p a share and this values the company at £19.3m. The company has developed the ENGAGE education platform and is also developing corporate training and educational content to go on the platform. The business is generating revenues but it still has to take full advantage of the technology it has developed.

Energy supplier Yu Group (YU.) increased its revenues from £16.3m to £47m last year and annualised bookings continue to grow. Underlying pre-tax profit jumped from £195,000 to £3.08m. Yu has gained a licence to supply water. The dividend has been increased from 2.25p to 3p a share.

Share (SHRE) has continued to add to its market share. In 2017, the broker revenues grew from £14.6m to £18.7m and it moved back to underlying pre-tax profit. Digital investment continues and the benefits of this will increasingly show through over the next couple of years. This year the recent partnerships will make a 12 month contribution. Higher interest rates will also help to increase interest income on the cash held.

Smart audio sales started to take off last year and Frontier Smart Technologies (FST) continues to invest in this area. The original digital radio technology business is profitable but the development costs for smart audio more than wipe that profit out. Net cash was £3m at the end of 2017 and this should be enough for Frontier’s requirements. There is scope to grow the digital radio business but smart audio will provide the main growth. From a tiny percentage in 2016, smart audio could contribute nearly two-fifths of revenues in 2019.

Begbies Traynor (BEG) has bought Springboard Corporate Finance for an initial £2.75m in cash and shares. Springboard generated a pre-tax profit of £750,000 on revenues of £2.3m in 2016-17. Up to £500,000 more will be payable depending on performance over the next five years. Begbies says that third quarter trading is in line with expectations. Corporate insolvencies are increasing, albeit from low levels.

Polemos (PLMO) has terminated the proposal to acquire SecurLinx Corporation, which still hopes to come to the London market. Trading in the shares has been restored. Polemos is raising £270,000 at 0.01p a share, plus a further £140,000 conditional on shareholder approval. These placings are before the planned share consolidation of one new share to every 100 existing shares. When additional approvals are given by shareholders a share offering will be made via PrimaryBid.

Netcall (NET) more than doubled its interim SaaS revenues thanks to the purchase of MatsSoft. Interim revenues grew by one-third to £10.7m, which includes organic growth of 5%. Underlying pre-tax profit was 8% ahead at £1.8m. Net debt is £2.5m.

Audio products supplier Focusrite (TUNE) reported sales growth of more than 25% in the first half. Edison upgraded its full year profit forecast by 4% to £10.4m.

Applied Graphene Materials (AGM) has secured the use of its graphene-enhanced epoxy prepreg in the tailgate of the W Motors Fenyr sports car. This is a limited market but it is a good showcase for the technology.

Second half trading was stronger than expected at FIH Group (FIH) as both trading in the Falkland Islands and Momart improved their performance. This has led to an upgrade in the 2017-18 profit forecast from £2.5m to £2.8m.

GRC International (GRC) raised £5.04m at 70p a share when it joined AIM on 5 March. The share price ended the week at 115p. GRC provides services relating to IT governance and compliance.

Zamano (ZMNO) had €5.05m in the bank at the end of January 2018. It remains in talks for potential acquisitions that would enable the company to remain quoted. Part of any deal would be the offer of a cash return to existing shareholders. Trading in the shares has been suspended.

Microsaic Systems (MSYS) had £3.2m in the bank at the end of 2017. Microsaic is focusing on the biopharma market but it could take until 2019 for its partners to start to generate revenues from its technology. There should be enough cash for more than one year but more will be required. Costs have been reduced.

SysGroup (SYS) has signed a three-year managed hosting deal with TJ Morris Ltd, trading as discount retailer Home Bargains, worth more than £950,000.

Contract research organisation Fusion Antibodies (FAB) says that its 2017-18 revenues are expected to grow by at least two-fifths to £1.9m. Last year’s flotation took up management time so revenues are lower than hoped.

Attraqt (ATQT) reported a full year loss of £4.05m, including exceptional costs of £2.38m. The e-commerce software provider intends to focus on operational efficiency this year. There was £2m in the bank at the end of February.

BOS Global Holdings (BOS) has been placed in administration.

Instem (INS) has switched a long-standing client to the SaaS model and this will increase recurring revenues by two-fifths. There are potentially £10m of fees that could be converted to the recurring revenues model.

WANdisco (WAND) has announced more deals including a partnership with Alibaba, which will embed WANdisco Fusion in some of the cloud services that it offers. Total bookings increased by 45% to $22.5m in 2017 and this has sparked a 2018 revenues upgrade by WH Ireland from $25.5m to $30.8m, although a slightly higher loss of $6.5m is expected. WANdisco could move near to breakeven in 2019.

Mirada (MIRA) has secured a £3m loan facility, which adds to the existing facilities. An initial £1.5m will be drawn down within two months. This provides working capital to finance additional contract wins. The annual interest rate is 15%. The provider of the facility is a 27% shareholder.

Strategic Minerals (SML) has paid A$1.5m in cash and A$1.45m in shares for the Leigh Creek copper mine. Strategic has acquired 24,900 tonnes of JORC compliant resource copper. Production should build up to 200 tonnes of copper each month and there is an offtake agreement for 100% of copper production. Strategic has extended its rolling agreement with the owner of the Cobre magnetite stockpile until March 2019. This deal generated revenues of $5.64m in 2017.

Zoo Digital (ZOO) says full year revenues will be at least $28m, up from $16.5m last year, while EBITDA will be ahead of expectations and be at least $2.3m. Localisation services remain the main growth area. Herald has reduced its stake from 15.7% to 14.6%.

Volvere (VLE) says that its 2017 pre-tax profit improved from £1.94m to £3.22m. Impetus Automotive contributed the growth in profit with CCTV software company Sira and Shire Foods reporting lower profits. NAV is 656p a share, with £18.4m in cash and marketable securities.

AFC Energy (AFC) reduced its loss to £5.5m in 2017. The fuel cell technology developer should have enough cash for this year, but it is likely to run out in 2019. AFC could move into profit in 2020.

Pallet developer RM2 International (RM2) has received $2m from the disposal of a building in Switzerland. That means it will have enough cash until mid-April.

Drilling is set to recommence at the Stonepark zinc project in Limerick and Connemara Mining (CON) has set aside £250,000 to cover its share of the spending over the next 12 months. Connemara has a 23.4% stake in the joint venture that owns the project.

Drilling results from the Kodal Minerals (KOD) lithium project at Bougouni in Southern Mali continue to be positive. The latest 19 drill holes have shown high grade intersections of consistent pegmatite mineralisation of up to 1.68% Li2O.

Clear Leisure (CLP) is ready to set up its Bitcoin mining joint venture in Serbia. Management says that the joint venture could produce more Bitcoins at a lower cost than expected. That would increase the return on the €200,000 investment. Assuming a Bitcoin price of $10,000 and an 8% discount rate, the investment could eventually be worth €389,000.

MAIN MARKET    

Bioquell (BQE) reported a rise in pre-exceptional profit from £1.6m to £2.9m in 2017. This was despite a decline in defence revenues. There is £14.6m in the bank. The focus is the biodecontamination business and management believes that this will show through in improved performance this year.

InnovaDerma (IDP) has warned that its full year figures will be below expectations. The personal care products supplier always expected the year to be second half-weighted and full year revenues will be higher. However pre-tax profit will be similar to the £1.03m reported for last year. Last October, £4.4m was raised at 276p a share. The share price has fallen to 121.5p.

Toople (TOOP) has raised £250,000 at 1.022p a share. This will keep the telecoms business going as it tries to increase its revenues in order to reduce its loss. Last June, Toople raised £1.41m at 3.25p a share. Toople joined the standard list in May 2016 when it raised £2m at 8p a share.

Path Investments (PATH) is delaying its exit from the standard list until 29 March. The plan is to move to AIM when an oil and gas asset acquisition is made.

Andrew Hore

Andrew Hore – Quoted Micro 5 February 2018

NEX EXCHANGE   

Health and community care property developer Ashley House (ASH) reported a decline in interim revenues from £10.7m to £7m and the company fell into loss. A second half recovery should mean that full year revenues will be flat at £18.7m but there will be a full year profit of £1.8m. The new joint venture with Morgan Sindall has a pipeline valued at £203m but the revenues of the joint venture will no longer be consolidated in the Ashley House revenues.

Property construction and development company Formation Group (FRM) increased revenues from £29.4m to £37m in the year to August 2017, but there was a swing from a pre-tax profit of £2.16m, thanks to the benefit of the Norwich House profit share agreement, to a loss of £152,000. The cash position has improved significantly. There was net debt of £3m but this became net cash of £4.23m at the end of August 2017. The NAV of £10.2m is four times the market capitalisation.

Gledhow Investments (GDH) increased its NAV from £486,000 to £714,000 in he year to September 2017. There was £103,000 in the bank. Since the balance sheet date, Gledhow has sold 6,500 shares in Coinsilium Ltd (COIN) and this generated a profit on the original investment of £115,000. Gledhow still owns 1.8 million Coinsilium shares. The share price has fallen back from its high but the value of the stake is still around £180,000.

Kryptonite 1 (KR1) has invested $443,000 in 4.72 million tokens in the Bluzelle project. Bluzelle is a scalable database service for decentralised applications. A further €167,000 has been invested in 2.2 million Rock tokens for the Gibraltar Blockchain Exchange (GBX) platform. Kryptonite 1 will become a sponsor for token-based projects listing on the GBX. Kryptonite 1 has also invested $174,000 in 12,800 tokens in the Elastos project, which is developing a virtual, digital smart economic zone.

Botswana-based coal mine developer Minergy, where Hot Rocks Investments (HRIP) invested $260,000 in March 2011, plans to join AIM later this year.

Property investor Ace Liberty and Stone (ALSP) has committed to property purchases totalling £20.1m. In the six months to October 2017, revenues were 24% higher at £1.47m but the pre-tax profit dipped from £598,000 to £352,000. That was because there was a £500,000 disposal project in the comparative period. After this period, Ace raised the £4.85m it was seeking from the issue of convertibles.

Healthcare information and clinical support systems provider DXS International (DXSP) continues to be hampered by the lack of NHS spending. In the six months to October 2017, revenues fell from £1.78m to £1.61m and there was a swing from profit to loss. Tax credits more than covered the loss.

Gunsynd (GUN) is assisting analytics software developer FastBase with its proposed AIM flotation in the second quarter and in return it will receive a consultancy fee of 0.75% of the market capitalisation of FastBase after admission. This fee will be paid in FastBase ordinary shares.

IMC Exploration Group (IMCP) has raised £75,000 at 1p a share. Each share comes with a warrant exercised at 2p a share. The cash will be used to finance the feasibility study for PL3850 in Avoca, County Wicklow.

First Sentinel (FSEN) is planning to raise up to £4m from a bond issue. The secured bonds have a 7% coupon and are repayable at a 5% premium on 28 February 2023. These bonds will be traded on NEX. The investment is partly protected by a credit insurance policy provided by Equinox Global. The cash will be invested in Perennial Enterprise, which will use it to fund its invoice discounting business.

Angelfish Investments (ANGP) is loaning £150,000 to YBOO Ltd, which operates a mobile app that enables customers to find the best mobile network deal. The loan is repayable in three years or convertible into 15% of YBOO. The conversion could be triggered by a flotation, fundraising or disposal.

EcoVista (EVTP) has written down its holding in Italian property business Cignella by £482,000, leaving it valued at £152,000.

Karoo Energy (KEP) has reported positive exploration news for its oil and gas assets in Botswana. In the six months to October 2017, the loss increased from £127,000 to £425,000, but most of the increase is due to the costs of trying to gain an AIM quotation. There is £187,000 in cash.

BWA Group (BWAP) says that its investee company Prego International is migrating from Guernsey to Norway and restructuring its shareholder base. Once this is completed there is a plan to apply for a Norwegian matched bargain dealing facility.

Doriemus (DOR) is leaving NEX Exchange and concentrating on the ASX listing it gained on 29 December 2017.

Via Developments (VIA1) has raised £175,000 from a further issue of 7% debenture stock 2020.

AIM   

Frontier IP (FIPP) investee company MolEndoTech has secured a subsidiary of fully listed Halma as its partner for a test for faecal matter in marine bathing water. Frontier IP has a 19.6% stake in MolEndoTech with a book value of £10,000.

Trading in the shares of Utilitywise (UTW) has been suspended because it has been unable to complete its annual report and accounts by the end of January. The main problem is the change in the revenue recognition policy.

Mike McAuliffe surprised the market by resigning as chief executive of Seeing Machines (SEE) a matter of weeks after £35m was raised. Executive chairman Ken Kroeger will take control.

PCI-PAL (PCIP) has raised £4.95m at 45p a share. The cash will be used to grow the North American operations of the secure contact centre payments provider. There will also be higher marketing spending and investment in other markets.

PCG Entertainment (PCGE) has raised £675,000 from a share issue at 0.2p each. A company related to PCGE chairman Richard Poulden invested £125,000 of this money. This follows a settlement with the former chief executive that cost £286,350.

Veltyco Group (VLTY) will potentially acquire Ruleo Alpenland, which operates the BTTY sportsbook brand, for €6.5m. An exclusivity period lasts until 15 March. This would provide an opportunity to grow in Germany and Austria.

Tracsis (TRCS) has acquired Travel Compensation Services, which provides software for delay repay solutions on the railways, and Delay Repay Sniper, which runs a web portal for rail delay compensation. The combined businesses are profitable.

Fishing Republic (FISH) has raised £1.3m at 10p a share, the original placing price when the fishing tackle retailer floated. The cash will be invested in the e-commerce operations.

ASX-listed Newfield Resources is planning a potential all-share bid for Stellar Diamonds (STEL) which values the diamonds company at 12.7p a share. The offer is likely to be 0.76 of a Newfield share for each Stellar share. Newfield has diamond licences in Sierra Leone. This deal would provide access to the finance to develop the Tongo-Tonguma diamonds project. Newfield is undertaking a placing and non-renounceable rights issue and has loaned Stellar $3m.

Altus Strategies (ALS) has completed the acquisition of gold assets from TSX-V-listed Legend Gold in return for shares. These Altus shares will be distributed to Legend shareholders and this will provide a shareholder base when Altus achieves its TSX-V listing. The deal gives Altus six gold projects in western and southern Mali.

MAIN MARKET  

Book publisher Quarto Group (QRT) says that full year profit will be in line with expectations. Net debt has risen by $2.1m to $64m but this is still a £11.8m reduction on the June 2017 figure. The full year figures will be published on 29 March.

Sportech (SPO) has extended the timetable for seeking valid offers for the company.

SQN Asset Finance Income Fund (SQN) was involved in the purchase and onward sale of the business of the former AIM-quoted Snoozebox. The new owner is involved in modular accommodation for the oil and gas sector.

Andrew Hore

Andrew Hore – Quoted Micro 18 December 2017

NEX EXCHANGE

Wine and beer maker Chapel Down Group (CDGP) has raised £18.53m at 50p a share and could raise up to £1.47m more via a one-for-35 open offer at the same share price. The latest acceptance date is 5 January. Chapel Down will invest in an additional 500 acres of vineyard land and more money will be put into marketing. The family interests of Michael Spencer have invested in the fundraising. Nigel Wray has invested a further £500,000 but his stake has fallen to 16.5%, prior to the open offer. This year’s turnover is expected to be at least £11.6m and management expects growth to accelerate after the additional investment. New gin and vodka brands have been launched and the Ashford brewery should be up and running by the end of 2018.

Ashley House (ASH) has signed a joint venture with Morgan Sindall to develop extra care and supported living housing. This deal sparked a 55% increase in the share price to 14.75p. Morgan Sindall is paying £4m in total for the 50% stake in the joint venture, with £1.5m of this dependent on certain completion factors. It should all be paid by the end of 2018. The Ashley House housing division will complete two existing schemes and then own 50% of the joint venture, which will develop any further schemes. This additional cash will help to accelerate the growth of this part of the business. There is already a pipeline of potential developments. Ashley House will make an interim loss but expects to profitable for the full year.

e-commerce technology provider Netalogue Technologies (NTLP) reduced its interim loss as revenues grew from £317,000 to £479,000. There has been a lower number of larger projects, particularly in the food and drink sector, and Netalogue would have been profitable without the investment in the company’s technical team. A move towards a SaaS-based model could hold back short-term revenues.

AIM-quoted, spread betting business London Capital Group (LCG) has joined the NEX Exchange Growth Market on 15 December. Glio Holdings Ltd owns 78.1% of London Capital.

Early Equity (EEQP) has made two more investments. It has invested £60,000 in TruSpine Technologies Ltd, which plans to join AIM next year. TruSpine has developed the Faci-LOK and Cervi-FAS minimally invasive spine stabilisation devices and the VOSC catheter atherosclerosis treatment product. The plan is to gain FDA authorisation for Faci-LOK next year and then float. TruSpine is valued at £15m. A £35,000 investment in the profitable corporate finance and asset management business Farina Investments (UK) Ltd has been made ahead of a flotation. Early Equity raised £115,000 at 0.6p a share.

Hydro Hotel, Eastbourne (HYDP) has declared an unchanged total dividend of 21p a share for the year to October 2017.

Lombard Capital (LCAP) says that it is progressing towards the issue of an investment bond that will be quoted on a recognised bond market. There was nearly £60,000 in the bank at the end of September 2017.

Coinsilium Group Ltd (COIN) raised £720,000 at 9p a share and this will be used to invest in blockchain companies and expand the company’s own advisory business. Last June, £250,000 was raised at 2.2p a share. Coinsilium has been appointed as an adviser to token generation event of Hdac Technology AG, which is developing payment platforms for connected devices.

Equatorial Mining and Exploration (EM.P) has raised £5,000 at 0.01p a share and issued further shares for convertible loan notes and warrants at the same price. Valiant Investments (VALP) has raised £34,000 at 0.1p a share. Via Developments (VIA1) has issued a further £50,000 of debenture stock.

AIM

Satellites owner Avanti Communications Group (AVN) has revealed a financial restructuring that could put it on a firm footing. Certainly, without this restructuring the outlook would be bleak. The $557m of 2023 loan notes will be converted into two billion shares, while investors in the 2021 loan notes are being asked to accept and extension of the term and lower income. Annual interest charges would still be $36.6m

Best of the Best (BOTB) says that it expects to pay remote gaming duty and this will knock £300,000 from profit this year and £600,000 next year. This year’s pre-tax profit is forecast to decline from £1.5m to £1.4m, with a further fall to £1.2m in 2018-19. Net cash is expected to be £2.6m at the end of April 2018. The company is still claiming £4.5m of VAT so this could provide a cash boost in the future.

Plant Impact (PIM) is suffering continued delays in demand for its Veritas product in Brazil. A new partnership with Albaugh Brazil will commercialise other Plant Impact products in Brazil. This has sparked the decision to consider putting the company up for sale. Cash is running out and a further £7m would need to be raised to keep the company going well into 2019.

Van Elle Holdings (VANL) has defeated the five resolutions proposed by former chairman Michael Ellis at last week’s general meeting.

Recruitment and outsourcing services provider Servoca (SVCA) reported better than expected full year figures. Pre-tax profit improved from £3.5m to £3.9m. Education and healthcare will be the main growth areas.

Evgen Pharma (EVG) is collaborating with King’s College London to examine the use of SFX-01 as a therapy against ischaemic stroke. Multiple doses will be assessed and this will take nine months. This could lead to a clinical trial that might be funded by a charity organisation associated with King’s College.

Range Resources Ltd (RRL) returned to AIM following the reverse takeover of producing oil and gas assets in Trinidad from Trinity Exploration and Production (TRIN).

Defence equipment and services supplier Cohort (CHRT) had a weak first half but it expects to more than make up for that in the second half. There was a mixed performance with some parts of the business finding trading conditions difficult. The order book is worth £132m. Full year pre-tax profit is forecast to improve from £14.5m to £15.4m.

Savannah Resources (SAV) says that it has discovered high-grades and large intercepts in the latest drilling at the Mina do Barroso lithium project. A maiden mineral resource estimated could be announced before the year end with potential for upgrades from further drilling.

Daniel Stewart expects China New Energy (CNEL) to report a jump in pre-tax profit from £400,000 to £2.6m in 2017. The shares are trading on less than four times fully-taxed 2017 prospective earnings. The company constructs bioenergy plants that convert feedstock into ethanol. The most recently reported order book was worth £28.7m with the orders due to be fulfilled in 2017 and 2018. Demand from China is strong and there is also international business.

Coal bed methane projects developer Tlou Energy Ltd (TLOU) has secured a listing on the Botswana Stock Exchange and trading commenced on 13 December. Tlou raised £2.4m at 11p a share.

Synairgen (SNG) has secured a £5m cash injection from a deal with Pharmaxis, which will take over the development of LOXL2 in fibrotic diseases. Synairgen will also receive 17% of any partnering revenues. This compares with £3m invested by Synairgen in LOXL2. The cash will enable Synairgen to fund the phase IIa study for SNG001 for COPD. The trial should be complete by the end of 2018.

New management has turned around the performance of contract disputes and expert witness services provider Driver (DRV) and it moved back into profit last year. Cost savings have been made and the focus is on profitable business rather than just growing revenues. Cash collection is improving with net debt down to £200,000 and there is likely to be net cash of £2m in one year’s time. This year’s revenues are likely to be flat at around £60m but pre-tax profit should improve from £2.5m to £2.7m.

One month after its previous trading statement IDOX (IDOX) says that an internal audit has found that it should not recognise all the revenues that it originally intended to. This will knock £3m off profit for 2016-17. The software company reported its full year figures in December but the attest full year figures have been delayed until February. Chief executive Andrew Riley is away ill and former boss Richard Kellett-Clarke has taken over on a temporary basis.

Abzena (ABZ) reported interims in line with expectations. Growth came from the chemistry and manufacturing businesses. This is a period of capital investment as various parts of the company move to new facilities. The ADC master services agreement with a US biotech will yield at least $5m in services revenues over the next 12 months. This deal is shared between chemistry and manufacturing divisions.

Surface coatings provider Hardide (HDD) is starting to improve its gross margin as demand improves. There is even some signs of improved demand from the oil and gas sector. Even so, Hardide remains loss-making but it still has not gained any orders from Airbus. It raised £2.5m for capital investment earlier this year. A new reactor will be installed in the US in this financial year and another next year.

MAIN MARKET

Titon Holdings (TON) continues to benefit from strong demand for its window ventilation components in South Korea. The majority of profit comes from South Korea and that is where all the growth came from last year as the contributions from the UK and North America fell. In the year to September 2017, revenues were one-fifth ahead at £28m, while pre-tax profit improved from £2.14m to £2.49m. The dividend growth of 20% to 4.2p a share is ahead of earnings per share growth. A pre-tax profit of £2.81m is forecast for this year.

Avation (AVAP) has secured an initial $100m revolving facility to finance the acquisition of aircraft.

Sealand Capital Galaxy Ltd (SCGL) has secured an agreement with AIM-quoted MySQUAR (MYSQ) for the distribution of its games on MySQUAR’s platform and MySQUAR’s games on the Huawei InTouch platform. This is initially a two year deal.

Standard list shell Stranger Holdings (STHP) says that it expects to complete the acquisition of biogas and renewable energy business Alchemy Utilities. A five-year £20m bond is being raised.

Andrew Hore

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