Home » Posts tagged 'ash'

Tag Archives: ash

Andrew Hore Quoted Micro 9 September 2019

NEX EXCHANGE

BWA Group (BWAP) is acquiring Kings of the North Corp, which owns five groups of exploration licences in Canada. BWA will pay £4.66m for the business, which is owned by a Canadian Stock Exchange listed company. Management believes that there is significant upside in the licences. Nearly $C1m needs to be spent for the licences to be renewed.

World High Life plans to join NEX on 12 September. This is an investment company that intends to acquire businesses involved in medicinal cannabis. The company (www.worldhighlife.uk) has already raised £2.4m from subscribers and no additional cash will be raised on flotation.

Adnams (ADB) director Guy Heald has purchased 3,000 B shares at £95.21 each. That takes his shareholding to 15.1%. The shares were sold by Sidney Sussex College in Cambridge, whose interest has been reduced to 6.32%.

Better news from Ashley House (LSE: ASH) because a scheme in Romsey has reached financial close. There are still two other delayed schemes that have not completed. Funding sources are being explored.

Tectonic Gold (TTAU) is selling its 2.5% royalty interest in the Graphmada graphite mine in Madagascar for up to A$550,000 in cash and convertible notes in royalty business SilverStream.

Primorus Investments (PRIM) reported a decline in net assets from £5.16m to £4.74m in the six months to June 2019. Management believes there are plenty of opportunities in the pre-IPO market.

Capital for Colleagues (CFCP) has agreed the terms for a realisation of its investment in Cotswold Valves, because it no longer wants to focus on employee ownership. The equity interest is being sold for its £220,000 cost and loans totalling £450,000 have been rescheduled. The cash will be received over a three year period.

KR1 (KR1) has made investments in the Nym Protocol project, Alice Si, a blockchain-based social funding platform developer, and Nexus Mutual, which is a follow-on investment.

Resources-focused investment company Hot Rocks Investments (HRIP) increased its cash position from £17,000 to £47,000 in the year to March 2019, but net assets fell from £722,000 to £687,000.

AIM  

Good news from car dealers Cambria Automobiles (CAMB) and Vertu Motors (VTU). Cambria says that trading in the eleven months to July 2019 has been well ahead of the same period last year and the full year profit will be higher than market estimates. New car sales are lower but Cambria is making more profit on each sale because of the mix of franchises and greater exposure to the luxury end of the market. More profit was made on each used car sold as well. Vertu says that its trading is in line with expectations, helped by price stability in the used vehicle market since July.

Mirada (MIRA) has won a new contract for the deployment of its Iris multiscreen digital TV product with a new Spanish interactive TV services provider Plataforma Multimedia de Operadores. Mirada’s technology will be used to deliver content to Android set-top boxes, smartphones, laptops and other devices. The commercial launch will be early next year and the plan is to build up a subscriber base of 600,000.

Adamas Finance Asia (ADAM) says that its consolidated NAV increased by 3.5% to $96.3m (£78.4m) in the six months to June 2019. That includes cash of $5.4m. There was interest income of $677,000 in the period. Production at Future Metal Holdings’ dolomite magnesium limestone mine in China should restart before the end of the year.

A secured creditor has appointed voluntary administrators to five subsidiaries of Management Resource Solutions (MRS) but the businesses continue to trade. A creditors meeting is set for 16 September. The businesses will need to be recapitalised.

Filtronic (FTC) has decided to sell its antenna division.

Colin Harrington has switched from executive chairman to chief executive of Rose Petroleum (ROSE) following the departure of its previous chief executive Matthew Idiens. Rick Grant will become chairman. Gordon Stein is a new independent non-executive.

MAIN MARKET 

Avation (AVAP) reported full year results that were ahead of expectations. The commercial aircraft leasing company’s pre-tax profit was 15% ahead of forecasts and there was also a tax credit which further boosted earnings per share. The dividend was raised by 45% to 10.5 cents a share.

Packaging manufacturer and distributor Macfarlane (MACF) has acquired the Leyland Packaging Company for up to £3.25m, with up to £1m in the form of an earn-out based on performance of the distributor in the year to August 2020, in cash and shares. In 2018, Leyland made a pre-tax profit of £550,000 on revenues of £4.06m.

Fully listed shell Highway Capital (HWC) has published its accounts for the year to February 2019. They showed net liabilities rising to £781,000. There was cash of £245,000 in the balance sheet following the repayment of loans. Trading in the shares has been suspended for three years.

Standard list shell Boston International Holdings (BIH) is considering potential acquisitions outside of the foreign exchange sector.       

Argo Blockchain (ARB) has ended discussions about a partnership with Hive Blockchain Technologies. Argo believes that its investment in additional crypto mining capacity has provided it with the scale it needs.

Sure Ventures (SURE) is investing a further €2.5m in Sure Valley Ventures Fund.

Andrew Hore

Andrew Hore Quoted Micro 12 August 2019

NEX EXCHANGE

Imperial X (IMPP) non-executive director Melissa Sturgess has sold 4.615 million shares at 2p each and she retains an equal number of shares. The total stake was acquired at 1p a share, so she has effectively made her money back. Imperial X is moving into the cannabis sector. Charles Morgan, a relation of Melissa Sturgess, converted £46,150 of loan notes into 4.615 million shares.

NQ Minerals (NQMI) has invested a further £150,000 Tasmania Energy Metals through a convertible loan, taking the total investment to £450,000. The exclusivity period relating to the acquisition of an option over the company’s assets has been extended to the end of October 2019. NQ would have nine months to exercise the option in return for shares worth £5.5m. The latest investment will be used to develop a facility that would produce nickel and cobalt salts for electric vehicle batteries.

Founder Stephen Minion has resigned from the board of Ashley House (ASH) so that there are no conflicts of interest between his role as a director and his other interests. He is chairman and major shareholder of Invescare, which has provided a loan to Ashley House.

iGaming software developer Ganapati (GANP) says that its Malta-based subsidiary has signed a resale agreement with BetConstruct, which will provide the company’s slot games to its integrated operators via its platform. Another deal is with PG Entertainment and this will make Ganapati’s games available in Latin America via a smartphone platform.

Asia Wealth Group Holdings Ltd (AWLP) improved pre-tax profit from $150,000 to $268,000 in the year to February 2019, partly due to a reduction in impairment losses. The company is looking at fintech acquisitions.

The conversion of loan notes in Equatorial Mining and Exploration (EM.P) has led to the issue of just over nine billion shares. There are 24.2bn shares in issue.

Valiant Investments has changed its name to Eurocann International (BUD).

AIM  

Oil and gas company Amerisur Resources (AMER) has effectively put itself up for sale and multiple companies are interested in bidding. They are being provided confidential information. The formal sale process continues.

Execution only broker Share (SHRE) made a first half profit even though stockmarket trading conditions and volumes have been poor and the dividend from Euroclear was moved to the second half. Revenues increased 9% to £11.1m as interest income grew. Account fees have been increased. Share is benefiting from its digital investment. The 20,000 accounts being taken on from JP Morgan will contribute from September. A full year profit of £400,000 is forecast.

Credit hire and legal services provider Anexo (ANX) is trading more strongly than expected, even after previous upgrades. Management has managed to reduce insurance costs. The full year pre-tax profit forecast has been increased by 15% to £23m and next years by 14% to £25m.

Artificial intelligence-based physician platform DocDoc, where Adamas Finance Asia (ADAM) is an investor, has raised $13m. Adamas led the convertible loan note financing for the Singapore-based company. DocDoc operates in eight countries. Hong Kong-based CASIL Clearing has reduced its stake in Adamas from 6.9% to 2.9%. Pello Capital has been appointed joint broker.

Presidential Energy (PPC) is not making the progress it hoped to, but profit is improving. The share price of the Argentina-focused oil and gas company has been declining. finnCap describes its estimates for average production and EBITDA as “challenging” due to delays and disruptions. It has been forecasting EBITDA of $27.9m due to an oil price estimate that is above current levels, whereas the company believes it could be around $20m. There are no plans to change the forecast until the interims are released in September.

StatPro (SOG) increased organic annualised recurring revenues by 3.2% to £56.5m in the first half. The asset management performance software provider increased interim revenues £27.2m to £28.3m, while pre-tax profit improved from £2.37m to £2.66m due to flat operating costs. Net debt is £24.2m.

Richard Bernstein has increased his stake in Ultimate Sports Group (USG) from 27% to 29.8%. Bernstein has an agreement with Ultimate where he would receive 1% of the value of the first acquisition he introduces to the company as long as it is completed by 30 September. Matthew Farnum-Schneider has been appointed chief executive of Ultimate. He has been granted a range of options. Some are exercisable at 20p a share, which is just below the current share price, some at 40p a share and others at 60p a share. Geoffrey Simmonds has left the board.

Urban Exposure (UEX) is not going ahead with a proposed issue of 6.5% secure sterling bonds 2026 because of market conditions.  

MAIN MARKET

S and U (SUS) says demand for motor finance has been strong in the first half, even though the quality of business has been increased. The Aspen property bridging finance business has net receivables of £24m and is growing gradually in a weak housing market. Borrowings are just over £125m and there are additional facilities of £35m. The interims will be published on 24 September.

Construction company nmcn (NMCN) increased interim revenues from £161.2m to £184m, while pre-tax profit improved from £2.5m to £3.5m. The former North Midland Construction had net cash of £15.6m at the end of June 2019. The order book is worth £456m with the main increase coming from the built environment division, which accounts for one-fourth of the order value. A full year profit of £7.4m is forecast.

Iconic Labs (ICON) is making its first acquisition since transforming itself from stem cell services provider WideCells into a social media marketing business. Iconic has agreed to acquire social media agency Social Alchemist. Iconic Labs is still in a poor financial state. There are £600,000 of legacy debts that have to be paid, plus £400,000 that is disputed. The European High Growth Opportunities Securitization Fund will provide up to £1.375m in six tranches in return for loan notes. This is dependent on a prospectus being issued within six months. This prospectus will enable warrants to be attached to the loan notes. There are also more shares to be issued under the previous financing agreement.

Argo Blockchain (ARB) generated 163 bitcoins in July and these are valued at £1.36m. They were mined at a margin of 80%. More mining machines have been ordered and will be up and running by the fourth quarter. This investment will quadruple capacity. Argo could be highly profitable in the second half with a full year pre-tax profit of £6m.

Andrew Hore

Andrew Hore – Quoted Micro 5 August 2019

NEX EXCHANGE

Netalogue Technologies (NTLP) increased its revenues by 26% to £1.35m in the year to March 2019. Pre-tax profit jumped from £82,000 to £300,000 thanks to the ecommerce technology provider keeping overheads flat. There is £770,000 in the bank. Netalogue will consider paying a dividend when it reports its interim results. Netalogue focuses on the B2B market and it continues to win new customers.

European Lithium Ltd (EUR) has secured a A$10m finance facility in the form of convertibles from Winance Investment, which replaces the existing facility. The company is still seeking a strategic investor to help finance the development of the Wolfsburg lithium project.

None of the three Morgan Ashley extra care schemes that Ashley House (ASH) was expecting have closed. They could close over the next couple of months, but Ashley House was hoping to get the cash and it is investigating additional funding.  

Trading in the shares of Equatorial Mining and Exploration (EM.P) was restored after the annual report was published. There was a £221,000 loss in 2018 but the business is very different now. A placing has raised £400,000 at 0.01p a share. The date for completing the acquisition of tantalum business Eastinco has been extended until the end of September. This is a part of the strategy to consolidate mining operations in Rwanda. Align Research believes that Equatorial could generate revenues of £1.19m this year, rising to £9.19m in 2020, which would enable it to make a pre-tax profit of £1.77m.

Social impact company Inqo Investments Ltd (INQO) increased its revenues from R23m to R23.8m in the year to February 2019, while additional finance income and fair value adjustments meant that the loss was cut from R5.99m to R2.5m. There was also an increased share of revenue from Bee Sweet Honey in Zambia. Trading is improving at Kuzuko Lodge with room rates and occupancy rising thanks to the weak Rand.

Coinsilium Group (COIN) says that its Gibraltar-based blockchain consultancy has signed a new advisory agreement with IOV Labs Ltd. This involves supporting the RSK Smart Contract Network and RSK Infrastructure Framework blockchain services. These are focused on Asia.

Eight Capital Partners (ECP) has launched a bond to raise up to €5m and it will be traded on the Vienna Stock Exchange. The interest rate is 7% and the redemption date is 26 July 2022.

AIM  

Transport services provider Xpediator (XPT) has not performed as well as hoped this year and earnings estimates have been cut by one-quarter. There has also been some additional investment in the business, which will double central costs.

Information management software provider IDOX (IDOX) has raised £7m via a placing at 28.5p a share, which will be used to finance the acquisition of Northern Ireland-based Tascomi for up to £7.15m. Tascomi is a cloud-based software supplier to local authorities.

Beximco Pharmaceuticals (BXP) has launched a fifth product in the US. Blood pressure drug Nadolol is the generic equivalent of Corgard tablets. The market is worth $63m.

Elektron Technology (EKT) is selling its original Bulgin electricals business for £105m, £94m after costs, and intends to return a substantial amount of the cash to shareholders. Net cash will be £95m after the transaction. The company will change its name to Checkit and become a Software-as-a-Service business.

The Property Franchise Group (TPFG) says that its lettings brands grew revenues by 3% in the first half. Online estate agency EweMove increased revenues by 11%. Group revenues were £5.5m in the first half. Net cash was £2.8m at the end of June 2019. Ian Wilson will step down as chief executive at the end of 2020.

Property adviser Fletcher King (FLK) reported an improvement in full year pre-tax profit from £274,000 to £282,000 on slightly lower revenues. Management says that market conditions will make it difficult to maintain profitability, although there are substantial funds available for investment when the uncertainty ends. The total dividend is maintained at 1.75p a share. There is £2m in the bank.

Digitalbox (DBOX) subsidiary Daily Mash will publish video content from NextUp on its site. This will enable the company to generate advertising on the back of the videos.

MAIN MARKET

A US customer has released Nanoco (NANO) from the obligation to pay back £4.25m of capital funding. This relates to the investment in the Runcorn facility where demand for nanomaterials has not come through from the customer. The book value of the facility, after depreciation, is £3.7m and may be written down further, along with the value of some materials. The facility is available if Nanoco can secure demand from customers.

BATM (BVC) has completed the sale of its stake in a new fibre optic network being developed in Israel. This should generate cash of $3.4m and add $3m to profit. Net cash could be $38m bythe end of 2019.

Oil and gas company Zenith Energy (ZEN) has secured the financing it requires for its drilling programme. A placing in Canada has raised the equivalent of £1.2m at C0.04 a share.

Trading in the shares of Associated British Engineering (ASBE) has been suspended because it has not published its accounts. This should happen this week.

Standard list shell Landscape Acquisition Holdings (LAHL) still has more than $496m in cash and it has done well to preserve the cash it raised when it floated at the end of 2017. There is a broad remit, but the main focus is a property-related/backed business in Europe or North America.

Stranger Holdings (STHP) is still seeking to close a reverse takeover after its first deal fell through. The shell is in talks to acquire local government supplier HCS. There is no cash in the bank and Stranger has net liabilities.

Andrew Hore

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.

=====

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

=====

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

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.