Home » Posts tagged 'qrt'
Tag Archives: qrt
VI Mining (VIM) finally made it to NEX on 2 March. The South America-focused miner announced its plans late last year. VI raised £5.36m at 500p a share. That valued the company at £535m. VI is acquiring two gold and silver projects in Peru and owns two toll processing plants.
Mechanical and electrical installation and maintenance services provider Field Systems Design Holdings (FSD) nearly doubled its interim profit. In the six months to November 2017, revenues jumped from £8.47m to £12m, while pre-tax profit improved from £114,000 to £211,000. There was £3.34m of cash in the bank. AMP6 capital spending by water companies has been strong in the period and there are significant waste to energy contracts, although the medium-term outlook for that sector is not as good. Margins remain under pressure.
Energy saving electrical products supplier Sandal (SAND) reported flat interim revenues of £1.88m but this masks the growth in the sales of MiHome products. This growth will continue in the second half. The interim pre-tax profit edged up from £35,000 to £44,000.
Block Energy (BLOK) has completed the sale of its assets in Ghana for $600,000. Block still plans to join AIM.
Milamber Ventures (MLVP) has acquired educational consultancy Vocamedia for up to £165,000, with £60,000 dependent on performance in 2018-19.
Inqo Investments Ltd (INQO) has announced plans to raise a further £2.5m via placings at 90p a share. The first tranche of $1.25m has been raised and this will be used to invest in opportunities in the healthcare, education and eco tourism sectors in Africa. The focus is businesses that are two-to-three years from profit and have a positive social impact. The second tranche of £1.25m should be raised in one year.
Gunsynd (GUN) has invested a further £130,000 in Human Brands by way of a convertible loan note. If Human Brands gets its expected quotation, the loan can be converted at a 55% discount to a three day average volume weighted price. This doubles the investment in the spirits distributor which will also pay (in shares) a fee of 1% of market capitalisation on flotation.
Primorus Investments (PRIM) has sold a 5% stake in Horse Hill Developments to Solo Oil (SOLO) in return for £650,000 in cash and £350,000 in shares. Solo has raised £2m at 3.5p a share.
Wheelsure Holdings (WHLP) is working with Haydale Graphene (HAYD) and the University of Swansea to develop intelligent transport systems using Haydale’s graphene ink sensor technology.
Equatorial Mining and Exploration (EM.P) says that it needs to raise a minimum of £50,000. A trial amount of coal has been sold by the St Leonard Mine in Nigeria. The buyer is negotiating a long-term supply agreement with a minimum tonnage per month. A second mine would need to be opened to satisfy this demand. Equatorial believes it can make a pre-tax profit of £380,000 in 2018 if the supply agreement is secured.
Supported housing provider Walls and Futures REIT (WAFR) has joined the MSCI IPD UK Residential Property Index.
Content owner One Media IP (OMIP) has weathered the changes to the market due to the rise of music and video streaming and profit should continue to recover this year. In the year to October 2017, revenues were 14% ahead at £2.34m, while pre-tax profit jumped from £30,000 to £298,000. That is still well below the profit made three years ago. Profit could double this year. Michael Grade and Ivan Dunleavy have invested in the company and they should help One Media IP to secure acquisitions and exploit the existing catalogue.
India-focused online retailer Koovs (KOOV) needs more money to continue its expansion. Management wants up to £50m and much of this will go on marketing and promoting the brand. Talks continue but the current cash pile will not last much more than four months. Second half sales are expected to be lower because of the lack of investment in marketing and the full year EBITDA loss will be £14.4m.
Gresham Hose (GHE) increased its assets under management from £363m to £69m. The British Strategic Investment Fund raised £165m in the period and the plan is to try to raise £250m by the end of 2018. The acquisition of Hazel Capital added a further £86m to assets under management. The value of the strategic assets portfolio value was flat due to distributions to investors. Gresham House has a diluted NAV of 211.2p a share. There is cash of £9.8m with more to come from the sale of the last surplus property and deferred consideration from a previous property sale.
Condor Gold (CNR) is confident that it is on the way to gaining a permit to construct a mine at Mina La India in Nicaragua. An amendment has been submitted for the Environmental and Social Impact Assessment and it appears that Condor will not have to move the village. This will make it easier to gain the permit. Once the permit is gained then Condor can push ahead with the construction of the mine, which is in an area where there has been mining in the past.
Management Resource Services (MRS) reported a return to profit in its interim figures. Continuing operations increased revenues from A$20.6m to A$33.6m and a loss of A$745,000 was turned into a profit of A$2.52m. Management says that full year earnings per share should be at least 2p.
TechFinancials Inc (TECH) is closing its loss-making non-core operations having failed to complete their sale because the buyer had not obtained regulatory approval.
Scotgold Resources Ltd (SGZ) has gained planning permission for the development of the Cononish gold mine in Scotland. This is subject to concluding legal agreements.
Lighting supplier Photonstar LED (PSL) is raising £430,000 at 0.15p a share. The cash will help to complete the development of the company’s new building control system.
Musical instruments retailer Gear4Music (G4M) continues to grow particularly rapidly outside of the UK. Overall sales grew 43% to £80.1m in the year to February 2018 with international sales well over two-fifths of the total. Both branded and own-brand sales grew. Investment in growth means that EBITDA will be similar to last year. The results will be published on 15 May.
Saffron Energy (SRON) has withdrawn from the acquisition of Po Valley Operations due to regulatory and tax issues but it is still buying Sound Energy’s Italian assets. A new document should be published in the next few days.
Replacement windows supplier Safestyle UK (SFE) says that orders have been weak so far this year. This means that 2018 revenues and profit will be well below the 2017 figures. Cost savings will help to offset some of the downturn in the second half and the business is still cash generative. A final dividend of 7.5p a share is still planned when the 2017 results are announced.
Founder Laurence Orbach has increased his stake in Quarto (QRT) to 20.1%. Back in October 2017, he owned 15.1%. Orbach was removed from the board in November 2012.
Town Centre Securities (TOWN) reported better than expected interim figures. The property investor’s NAV was 4% higher at 375p a share and the interim dividend was maintained at 3.25p a share.
WH Ireland has raised its full year forecast for Avation (AVAP) following the publication of interim figures. The 2018 earnings forecast was raised 10.5% to 26.2 cents a share. Interim profit declined by 13% to $7.3m, while earnings per share fell 15%. The transition of an A320 aircraft from Air Berlin to easyJet led to a release of a maintenance reserve but some transactions will not come through until the second half.
Western Selection (WESP) maintained its NAV at 95p a share at the end of the six month period of December 2017. Net debt was £1.13m. A sharp upturn in the value of the stake in Bilby (BILB) and offset declines in other investments. The interim dividend is unchanged at 1.1p a share. The shares go ex-dividend on 8 March.
Gledhow Investments (GDH) has granted six million options to its directors and company secretary. Guy Miller and Brett Miller will receive 2.5 million options each and Geoffrey Melamet receives 1 million. The exercise price is 1p a share. They last for five years and would equate to 10.9% of the enlarged share capital if taken up. The current share price is 1p (0.75p/1.25p). Gledhow had a NAV of £714,452 at the end of September 2017, which is equivalent to 1.45p a share. Since the year end, a gain of £115,000 was achieved on the sale of Coinsilium shares and Gledhow retains a significant stake which in Coinsilium, where the share price is more than three times the level at the end of September 2017. That could add more than £100,000 to the Gledhow NAV but the Coinsilium share price is volatile. Directors and company secretary remuneration was £21,514 last year. There are 4.9 million warrants exercisable at 1.5p each but these expire on 6 March 2017. Bruce Rowan and related parties own 83.37% of the current share capital.
IMC Exploration (IMCP) is continuing with its plans to move to the standard list. IMC has signed heads of agreement with Trove Metals Ltd and this should lead to a joint venture for the project at Avoca, County Wicklow. The current Koza/IMC joint venture has been set aside. IMC has decided to focus on the 12 most prospective of its 15 licences.
Crossword Cybersecurity (CCS) says that its revenues more than doubled to more than £700,000 in 2017. There is customer interest in the Rizikon cyber security product and the General Data Protection Regulations will provide momentum when they come into force in May. Full year figures should be published by the end of April.
Sandal (SAND) says that radiators supplier Pitacs will be a distributor of the Energie MiHome range. Pitacs is launching a new boiler in April and the Energie MiHome thermostats and radiator valves can be sold with this. Pitacs supplies more than 2,000 independent plumbers’ merchants as well as Plumb Nation.
Angelfish Investments (ANGP) says that its investee company Rapid Nutrition plans to gain a quotation in London. Rapid, which is already quoted on the SIX Swiss Exchange, has developed a nutraceutical product range. One of the terms of the £150,000 loan to Rapid was that it should be admitted to the London market by the end of February but this date has been extended to the end of April because of delays in the flotation process. If admission to the market happens by 1 March, then the principal and interest will convert into Rapid shares. If it takes longer than the interest after the end of February is payable in cash.
BWA Group (BWAP) has issued £220,000 of 4% convertible loan notes, with £120,000 taken up by Bath Group, which is owned by BWA chairman Richard Battersby. Bath has taken £70,000 of the loan notes in lieu of cash owed by BWA investee company Mineralfields Group.
Trevor Lloyd has succeeded Philip Kirkham as chairman of National Milk Records (NMR).
Kryptonite 1 (KR1) has changed its name to KR1.
Shield Therapeutics (STX) disappointed the market with phase III patient trial results for the use of Feraccru in the treatment of iron deficiency anaemia in patients with chronic kidney disease that did not meet statistical significance requirements. The results are being analysed in order to identify the reason the trial failed. The share price fell by two-thirds.
Diversified Gas and Oil (DGOC) expects to complete the acquisition of Appalachian producing gas and oil assets from CNX Gas by the end of March. This will cost $85m (£59.9m), while the acquisition of Alliance Petroleum will cost a further $95m (£66.9m). A placing at 80p a share has raised £133.1m. The group’s net working interest production will increase by 173% to 28,133 boed. Management expects annualised EBITDA to be $70m-$75m.
OnTheMarket (OTMP) joined AIM on 9 February having raised £30m at 165p a share. The share price ended the day at 148p. The online property portal operator will make significant investment in its business over the next two years and this will lead it to fall into loss for a couple of years.
Draper Esprit (GROW) has made three new investments. Evonetix is developing the ability for parallel synthesis of DNA on silicon arrays. Droplet Computing has developed technology to decouple applications from the operating system for online and offline use. Kaptivo is developing products to provide whiteboard live streaming and image capture.
Seeing Machines (SEE) has published a trading statement to try to reassure investors following the unexpected departure of its chief executive. Interim revenues will be greater than the A$13.6m reported for last year. The fleet business is gaining revenues internationally. There is growing interest in the driver fatigue technology from Transport for London.
Recruitment software provider Dillistone (DSG) says that its 2017 figures will be much better than expected. This led to a pre-tax profit upgrade from £200,000 to £300,000. This is still a depressed figure due to the investment in GatedTalent and the future of the business depends on the take-up of this new product.
Engineering and technology recruiter Gattaca (GATC) says that weakness in the technology sector will hold back its progress and its chief executive has resigned. Underlying pre-tax profit is set to decline for a second year while the dividend could be halved to 11.5p a share in order for its to be twice covered.
Trading in the shares of BOS Global Holdings (BOS) remains suspended because of the resignation of RFC Ambrian as nominated adviser. BOS still does not have enough working capital so it cannot publish its 2016-17 annual report because the uncertainty over the AIM quotation scuppered a £1.2m placing.
Trading in Kennedy Ventures (KENV) shares will recommence on 12 February following the publication of its annual report. There was a cash outflow of £2.76m in the year to June 2017. The Namibia Tantalite Investment Mine run by African Tantalum has made its fourth shipment of tantalum to its North American customer and there are two more potential customers.
Croma Security Solutions (CSSG) says its first half figures will be much better than those reported for the first half of last year. The EBITDA will improve from £440,000 to more than £1.1m. The company’s largest ever contract was won at the end of the period. There has been an increase in demand for personnel from Croma Vigilant and it has won a five year contract. There is also improved demand for technology supplied by Croma Systems. The interims will be published in February.
BNN Technology (BNN) will lose its AIM quotation on 12 February. A matched bargain facility will be set up. The remaining board hopes to do at least one deal with the two US-listed companies it is in discussions with concerning the acquisition of all or most of BNN’s business.
Strategic Minerals (SML) has extended its access to the Cobre magnetite stockpile in New Mexico until the end of March 2019. This will provide cash to finance other projects.
Origo Partners (OPP) has sold 4.7% of Jinan Heng Yu Environmental Protection Co Ltd for the equivalent of $3m. This is in line with book value but it may take many months for the cash to be received. Origo retains a 7.2% indirect stake. The Origo NAV was $0.09 a share at the end of June 2017.
Alba Mineral Resources (ALBA) has secured additional exploration licences in Greenland. The 466 square km of land is in north west Greenland. Exploration work can be combined with existing licence areas.
Mercantile Ports and Logistics (MPL) says its port in Mumbai will receive its first revenues in a few weeks, following delays in the first customer sorting out its logistics. A further 200 metres is being added to the quay on the east flank of the facility.
Physiomics (PYC) has won a £70,000 contract from a major pharma company. The company’s Virtual Tumour computer model will be used for helping to predict outcomes in pre-clinical testing.
Warpaint London (W7L) says its 2017 results will be in line with expectations suggesting a pre-tax profit of £9.8m and a total dividend of 4p a share.
Polarean Imaging has relaunched plans to come to AIM. It had planned to float at the end of 2017 and the new proposed date is 22 February.
Fryer management services provider Filta Group Holdings (FLTA) says its 2017 revenues were 30% higher at £13.25m. The sale of the refrigeration business should increase the group margin.
TechFinancials Inc (TECH) has pulled out of the sale of non-core operations because the buyer had still not obtained regulatory approval.
Cadmium-free quantum dots producer Nanoco (NANO) has secured a material development and supply agreement with a major US firm that will provide funding to expand Nanoco’s manufacturing site in Runcorn. The deal covers the production of nano-particles for electronic devices. Commercial supply should commence in 2019.
Dukemount Capital (DKE) has secured a two month extension to its option on a property in north west England while talks with a housing association continue. Plans for the refurbishment of the building will be presented to the housing association. Gary Carp has increased his stake from below 3% to 5% in the past fortnight.
Flying Brands Ltd (FBDU) is negotiating to buy a North American medical imaging software developer, which owns FDA-approved medical imaging software that fits well with Flying Brands; own software. The cost of £500,000 would mainly be financed through a share issue.
Avocet Mining (AVM) has completed the sale of Resolute (West Africa) for $5m.
Path Investments (PATH) is still intending to raise cash and move to AIM in the first quarter of 2018. The farm-in deal to acquire 50% of Alfeld-Elze II licence and gas field in Germany is expected to go ahead in the near future.
Chuk Kin Lau has increased his stake in book publisher Quarto Group (QRT) from 20% to 25.6%. Cavendish Asset Management nearly halved its stake to 3.69%.
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.
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.
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.
Blockchain investment company Coinsilium Group Ltd (COIN) has signed a memorandum of understanding with UMT United Mobility Technology, which has shares traded on the Frankfurt Stock Exchange and owns 3% of Coinsilium, to collaborate on the development of blockchain-related mobile payments services for the business to consumer market. Coinsilium will advise UMT on the potential uses of digital tokens. The initial agreement is for three months.
Hellenic Capital (HECP) has launched a one-for-three open offer at 0.5p a share that will raise £250,000. The minimum subscription is 100,000 shares and the closing date is 22 November. Each share comes with a warrant for an additional share.
Early stage investor Primorus Investments (PRIM) has invested a further A$75,000 in Melbourne-based Fresho at A$0.38 a share. Online food ordering business Fresho was seeking A$1.5m but eventually raised A$2m. Primorus initially invested at A$0.27 a share and it owns 3.1% of Fresho, which is valued at nearly A$500,000 at the placing price. Fresho is moving towards cash flow breakeven in Australia earlier than expected and the $4m in the bank will help the company to launch operations in New Zealand and Singapore.
Kryptonite 1 (KR1) has generated £750,000 at 6p a share in order to invest in more blockchain token issues. Smaller Company Capital has increased its stake to 4.59% and one of its owners and Kryptonite 1 non-executive director Jeremy Woodgate owns 1.27%.
NQ Minerals (NQMI) has raised a further £150,000 at 8.5p a share and a holder of convertible loan notes has converted into 350,000 at a price of 8p a share.
Early Equity (EEQP) has raised £590,000 at 0.6p a share and issued 30 million shares to pay for 60,000 units in Yicom Global. Early Equity owns 47.1% healthcare products importer Yicom.
Lombard Capital (LCAP) has issued a further £45,000 of 7.5% convertible loan notes 2020, with 450,000 warrants, exercisable at 10p a share, attached. That takes the convertible loan notes in issue to £195,000.
Peter Hain, Simon Dorling and Declan O’Brien have all stepped down from the board of African Potash (AFPO).
Tracsis (TRCS) had a much better second half as predicted at the interim stage. In the year to July 2017, revenues improved by 6% to £34.5m, while pre-tax profit was 14% ahead at £4.6m. The total dividend was increased from 1.2p a share to 1.4p a share. There is £15.4m in the bank. The main growth in the rail technology division was from Ontrac software business, while revenues from traffic and data were flat, although there was growth if the former Australian operations are excluded. Profit should edge up this year but it will do even better if further large contracts are secured.
Castleton Technology (CTP) reported a rise in interim EBITDA from £2m to £2.3m and strong cash flow is reducing borrowings. Net debt was £8m at the end of September 2017. Castleton provides software to social housing operators and they are signing up for multi-year contracts.
Oxford Pharmascience (OXP) is demerging its assets into an unquoted vehicle and retaining a quotation as a shell. Management believes that it will be better for the business to be private in order to commercialise the OXPzero technology and existing investors will still have an interest. The shell will have few limitations in terms of the sectors that could provide an acquisition but there is board experience in pharma and technology. There was still £20.6m in the bank at the end of October and the shell will retain more than £19m. The company will change its name to Abaco Capital.
AfriTin (ATM) has completed its spin-off from Bushveld Minerals (BMN) and a placing raised £3.5m with a further £1m coming from convertible loan notes. The main asset is the Uis tin project in Namibia.
City Pub Group has confirmed plans to join AIM by the end of November. The company has 34 pubs in southern England and it wants to raise £30m. The business was founded in 2011 by experienced pub group operators, including David Bruce, who previously sold Capital Pub Company to Greene King for £93m.
Peter Gyllenhammar has built up a 8.35% stake in Stratex International (STI) and Bob Foster has returned as interim chief executive. He will review the strategy of the company. The takeover of Crusader Resources is not going ahead. The sale of the Goldstone Resources stake raised £550,000 and there was £6.08m in the bank at the end of June 2017. Gyllenhammar is more likely to be interested in the cash rather than the mining operations. The current capitalisation of Stratex is similar to the pro forma cash and around one-third of NAV.
Versarien (VRS) raised £2.9m instead of the £1.2m it was seeking one week ago. The cash was raised at 18p a share and the share price has risen to 24p. The cash will be used to purchase capital equipment.
Pre-IPO investment company St Peter Port Capital (SPPC) has concluded a strategic review just over 13 months after it commenced. The formal sale process has been terminated. The plan is to realise investments in an orderly manner. The NAV was 25.3p a share at the end of September 2017.
Redx Pharma (REDX) has returned from suspension having come out of administration. The share price almost halved to 17.5p. Chief executive Neil Murray has been given the push, or stepped down as it is described in the announcement, and Iain Ross has taken over as executive chairman. Dominic Jackson has been appointed as finance director. Hopefully, this will mean that Redx is better run than it was before. A phase I trial for the lead cancer asset is due to start in the first quarter of 2018 and initial phase 1a results should be available by the end of 2018. There is £13.6m in the bank and no debt.
BOS Global Holdings (BOS) is facing a battle with its former boss. The workflow efficiency software provider has received a general meeting requisition from interests related to former managing director Michael Travia, who recently stepped down from the board. He wants to be reappointed to the board and have Adam Webb removed from office. These are two of the eleven proposals put forward.
Trading in the shares of Red Emperor Resources (RMP) on ASX has been suspended because it does not have sufficient operations to warrant a listing. There are plans to increase the company’s stake in an exploration block in the Philippines and there are also potential oil lease acquisitions in California.
Shari’a-compliant investment company Tejoori Ltd (TJI) is cancelling its AIM quotation ahead of returning cash to shareholders. The company’s investments have been sold and there is $17.6m in cash.
Beximco Pharma (BXP) is commencing the export of Sotalol Hydrochloride, which is a generic version of heart drug Betaplace. This is the second product to be exported to the US. Interim pre-tax profit improved by 13% to £27.5m on the back of double digit sales growth.
Amphion Innovations (AMP) has a 26% stake in Polarean Imaging Ltd, which is planning to float on AIM. Polarean is a clinical stage medical imaging business and it is expected to be valued at $29m before new money. This compares with a valuation of $22m at the time of the previous fundraising during May. That would mean that the Polarean stake is worth more than Amphion’s current market capitalisation.
SkinBioTherapeutics (SBTX) says that its SkinBiotix technology has passed all three necessary toxicity tests. This will enable human studies to begin next year.
Connemara Mining Corp (CON) has completed five holes at the Meeneragy gold project and they demonstrate the presence of a significant gold bearing system in the area. Survey data should be processed by next February.
Coal bed methane projects developer Tlou Energy (TLOU) has commenced core hole drilling at the Lesedi project in Botswana. A seismic survey is almost complete. The focus is increasing gas reserves and contingent resources. The data will be used to provide information for when development starts.
WynnStay Properties (WSP) increased its NAV to 685p a share at the end of September 2017 and the interim dividend has been raised by 18% to 6.5p a share. There was a gain on sale of properties in Colchester and Gosport as well as a 16% increase in property income to £1.12m.
TLA Worldwide (TLA) has agreed a renewed senior debt facility of $28.75m from SunTrust Bank. This was announced at 8.48am on 9 November. This contrasts with the profit warning released at 6.26pm on the last day of trading prior to Christmas 2016.
Snoozebox (ZZZ) has appointed Moore Stephems as administrator and trading in the shares has been suspended. Snoozebox is moving towards cash breakeven but the main lender, SQN Asset Finance Income Fund, has not agreed to a suitable debt refinancing plan so the company cannot continue to trade as a going concern. Panmure Gordon has resigned as nominated adviser and broker.
Thor Mining (THR) has raised nearly £494,000 from the conversion of warrants, at 0.9p each and 1.25p each, so far in November 2017. A placing recently raised £565,000 so there is plenty of cash to move ahead with exploration activities.
InterEnergy Holdings has decided not to become involved with a bid for Rurelec (RUR) as part of the consortium headed by Peter Earl. He had approached InterEnegy about the provision of loan finance. The bidding consortium subsequently pulled out of the potential bid until the full effect of the problems at Rurelec’s Patagonian power station are known.
PV Crystalox Solar (PVCS) has won an award of €34m plus interest from the International Court of Arbitration of the International Chamber of Commerce. This relates to a supply agreement with a PV company, which failed to purchase wafers in line with its contract. The customer has to pay up but it can also ask for the delivery of 22.9 million wafers that are due under the contract.
Sportech (SPO) is seeking potential offers by January 2018. A distribution of cash to shareholders is still planned for this year. Annualised cost savings of at least £2m have been identified. Trading remains in line with expectations.
Illustrated book publisher Quarto Group (QRT) has ditched its dividend after a second half upturn was not strong enough to achieve profit expectations. Full year revenues will be lower. Year end net debt will be higher than at the end of 2017. Bid talks appear to have hampered the business. The children’s and foreign rights businesses are strong. The focus is to achieve 60% annual recurring revenues.
Gemstones project developer Shefa Yamin plans to join the standard list and the Israel-based company will use the money raise to finance further exploration and to complete the pre-feasibility study at the Kishon Mid-Reach project. There are plans to set up an internet platform to sell the gemstones, some of which are unique to the area. The Carmel Sapphire brand has been registered for dark blue sapphires. Several potential primary and secondary deposits have been identified. Bulk samples are being taken, so far 11,000 tonnes have been sampled, and there are plans to delineate a mineral resource. Production is targeted within the next 24 months.
Symphony International Holdings (SIHL) had a diluted NAV of $1.146 a share at the end of September 2017. This was after a $0.10 a share dividend. The shares are trading at a one-quarter discount to NAV.
Challenger Acquisitions Ltd (CHAL) is diversifying into film conventions. Challenger is loaning £100,000 to a private company that is putting on a film convention in London in 2018. The loan is repayable, with a premium of 40%, by 15 May 2018. The cash will help to finance the venue, staff and guests. Challenger has the right to participate in future events held by the company.
Oxford Biomedica (OXB) is collaborating with a major US biopharma company for research into patients that have abnormal wound-healing responses leading to fibrosis. The collaboration will use the EpiSwitch platform.
Good Energy (GOOD) and Ecotricity have come to an agreement that means the latter has withdrawn its requisition of a general meeting. No details were released about the reasons behind the withdrawal.
Cadence Minerals (KDNC) is in talks to sell part of its 16.1% stake in AIM-quoted Bacanora Minerals (BCN) to a strategic investor group. Bacanora’s main interest is in the Sonora lithium project in Mexico.
Blockchain investment company Coinsilium Group Ltd (COIN) has formed a Gibraltar-based subsidiary called Terrastream Ltd, which plans to develop blockchain platform for a token-based alternative funding system. Gibraltar is expected to be the first jurisdiction to develop a regulatory framework for distributed ledger technology and the blockchain. A token sale will help to finance the development work. The initial focus is likely to be the resources sector.
MetalNRG (MNRG) has added additional ground to its licence in Australia. The new area will be called Palomino North.
All Star Minerals (ASMO) has extended the terms of the convertible loan note issued to Valiant Investments have been extended so it matures in May 2018. The annual interest charge is 20% and the conversion price is 0.1p a share. The maturity dates of other loan notes totalling £110,000 have been extended to January 2018. The interest rate and conversion price are the same. Shares have been issued to satisfy past liabilities on these loan notes.
Warehouse REIT has issued the AIM prospectus for its placing, offer for subscription and intermediaries offer to raise up to £150m. An existing portfolio of warehouse assets will be acquired for £108.9m, based on a 7% net initial yield, and there are other potential assets being assessed. A dividend of 5.5p a share is being targeted for the year to March 2019.
Utilitywise (UTW) has confirmed that trading last year was in line with expectations so pre-tax profit is likely to decline from £8.2m to £4.7m.
Palace Capital (PCA) has sold a Bristol property for £2.25m, which is its net asset value, following the loss of one of its tenants, Blafour Beatty. The property was acquired as part of a portfolio from Quintain in 2013.
Scientific Digital Imaging (SDI) is acquiring Applied Thermal Control, a manufacturer of chillers, coolers and heat exchangers, for up to £1.2m.
Management Resource Solutions (MRS) says that its chief executive Joe Clayton has left the company. He was appointed chief executive at the end of 2016. In the year to June 2017, MRS generated revenues of A$52.2m and the loss for the year will be higher than expected. Exceptional costs will also be higher than thought initially. MRS had cash of A$2m.
Gatemore Capital has increased its stake in DX (DX.) from 21.3% to 23.8% following the resumption of trading in the shares.
Redx Pharma (REDX) will be paying unsecured creditors in full. The process has begun but it will take some time. This brings the reintroduction of trading in the shares nearer.
Home improvements products provider entu (UK) (ENTU) is appointing an administrator because it has not agreed a refinancing with a potential financial backer. The trading businesses will be sold. Trading in the shares was suspended on 24 August. entu raised £32.8m when it joined AIM in October 2014.
Kin Group (KIN) has been unable to secure the funding it requires and an administrator has been appointed to the main subsidiary. Kin Group will not get anything from a sale of the subsidiary and it will become a shell. There will still be a requirement for a fundraising for the shell to be viable.
365 Agile (365) has left AIM because it has been unable to secure a reverse takeover. Potential acquisitions are still being assessed.
Mercantile Ports and Logistics Ltd (MPL) has signed up the first customer for its Mumbai port facility. This should generate £4.7m for each one million tonnes handled, with the payment raised by 7% a year. Two million tonnes of cargo have been contracted for the first year, with a guaranteed minimum of 750,000 tonnes, and the figure will rise for each of the next two years reaching three million tonnes in the third year, with a minimum of two million tonnes. Operations should commence in December. The share price rose by two-thirds to 8.13p.
Sula Iron & Gold (SULA) has raised £900,000 at 0.146p a share but £500,000 of this figure will be part of an equity sharing agreement. Sula is gambling that it will receive £500,000 or more as part of the equity sharing agreement and this will paid on a monthly basis until September 2018. The benchmark price is 0.161p a share so each month the share price has to be at least that level for Sula to at least receive that amount owed. The board members have agreed to halve their salaries.
Verditek (VDTK) has secured a deal that will mean that 51%-owned Greenflex Energy will provide its solar technology to power digital advertising boards in bus shelters in Italy. This is a trial contract won via competitive tender and starting with one bus shelter and then rolling out to a further 20. The customer is Media One, which operates more than 5,000 digital advertising boards.
Finsbury Food (FIF) is closing the loss-making pastry products maker Grain D’Or,which has failed to improve despite cost controls. Grain D’Or was acquired as part of the £56m Fletchers acquisition in 2014 and last year generated revenues of £28.5m.
Church & Dwight has terminated its CSD500 condom licensing deal with Futura Medical (FUM) after just over four years. The licence covered North America and part of Europe. The rights will be returned to Futura by November. New partners will be sought.
Green & Smart Holdings (GSH) says that biogas project development is on track and the company could pay a maiden dividend for the 2017-18 financial year.
Investment in the business has held back first half progress at packaging manufacturer Robinson (RBN) and underlying pre-tax profit fell from £580,000 to £364,000. It was also difficult to pass on plastic resin cost increases. Full year profit is forecast to fall from £2.2m to £1.2m.
Bushveld Minerals Ltd (BMN) has retired its $3m prepayment facility, which was used to buy part of its 78.8% stake in Strategic Minerals Corporation, with Wogen Resources. Vametco Alloys has increased its facility from $6m to $11m. Vametco’s Nitrovan vanadium will be marketed by Wogen around the world outside of Japan and Taiwan.
Filta Group Holdings (FLTA) is acquire drain services provider Grease Management for up to £1.11m. Annual revenues are £1.28m and three-quarters are recurring. Post-acquisition cost savings of around £100,000 could nearly double the profit contribution.
Cancer drug developer Sareum (SAR) says that its full year profit will be better than expected. The cash pile will also be higher than forecast.
Sphere Medical Holdings (SPHR) is ditching its AIM quotation as part of a funding deal with Woodford Investment Management and the Wales Life Sciences Investment Fund, which will invest £5m in convertible preferred shares. Other investors will invest up to £3m. The convertibles will be issued at 2.82p each and can be swapped for one ordinary share. Sphere will be re-registered as a private limited company, which makes it possible for Woodford to invest more.
Nanoco Group (NANO) is attracting interest in its cadmium-free quantum dots following the EU’s plans to ban cadmium in displays from October 2019. However, revenues are slower in coming through than hoped.
Photovoltaic silicon wafers supplier PV Crystalox Solar (PVCS) still had net cash of €27.9m at the end of June 2017. Running down inventories has offset the loss of €5.4m. A decision should be made by the arbitration tribunal concerning a customer that did not purchase the wafers it was contracted to buy by the end of September.
Packaging company Macfarlane Group (MACF) increased its revenues from £81.5m to £89.8m, while pre-tax profit jumped from £2m to £2.54m with the improvement coming from the distribution business. Net debt was £14.6m at the end of June 2017, while the pension fund deficit was cut from £14.5m to £13.4m. The interim dividend was increased from 0.55p a share to 0.6p a share.
Following the ending of bid talks for Quarto (QRT), Liontrust has cut its stake from 12.65% to 7.54%. Cavendish Asset Management has taken its stake to 5.18%, while two directors have also made small purchases.
Shares in standard list hostels operator Myanmar Strategic (SHWE) started trading on 22 August. The placing price was $10 and the shares are trading at $9.5m – a bid/offer price of $7/$12.
Standard list shell Boston International (BIH) is in talks to acquire Cornhill FX Holdings. This is part of the strategy to acquire operations in the foreign exchange sector. Legal and financial due diligence is being undertaken. Cornhill Capital is Boston’s broker.
Good Energy (GOOD) has set the date for general meeting requisitioned by rival renewable electricity supplier Ecotricity, which wants Dale Vince and Simon Crowfoot to join the board. The general meeting will be held on 6 September. Good Energy still believes it would be unwise to have the representatives of its rival on the board.
Via Developments (VIA1) has paid a £412,500 non-refundable deposit on a residential development site in Latimer Road, Luton. Funding still has to be secured for the £8.25m purchase price.
Early Equity (EEQP) has taken a 4% stake in Malaysian multi-level marketing business Early Infinity, which has a distribution agreement with healthcare products supplier Yicom, where Early Equity owns 32.1%. The purchase was funded by the issue of 10 million Early Equity shares. The plan is for Early Equity to buy up to 30% of Early Infinity. Five million Early Equity shares have been issued at 0.6p each to raise £30,000.
Karoo Energy (KEP) has published the competent persons report on the Kalahari Karoo basin shale gas play. There is insufficient data to estimate shale gas or quantify the associated risk. The Lower Ecca shales are broadly correlatable with the source rocks in the broader basin. The low, unrisked estimate of gas initially in place (GIIP) is 310 bscf and Karoo has a 93.475% working interest. The advice is that further exploration is required to improve the understanding of maturity trends and confirm the depths of the Lower Ecca shale.
Lombard Capital (LCAP) has issued a further £55,000 of 7.5% convertible unsecured loan notes 2018, taking the total to £100,000. The conversion price is 10p a share and there are ten warrants for each £1 loan note exercisable at the same share price. There is planning permission for 200 apartments.
Clinigen (CLIN) has approached Quantum Pharma (QP.) about a proposed cash and shares offer. Due diligence has to be undertaken before there is a firm bid. Clinigen is taking advantage of the work that Quantum management has done in selling non-core operations and improving the performance of the rest of the business. Quantum says the interim figures will be brought forward to 22 August.
DX (Group) (DX.) has ended discussions with John Menzies over the merger with its distribution division because suitable terms could not be agreed. There had already been a change in the proposals but this was not enough to make the deal go through. This will mean that DX requires to raise additional funds. The four people that Gatemore Capital wanted to be appointed to the board when it requisitioned a general meeting, later withdrawn, are being proposed as directors and Bob Holt will be leaving the board. Trading in the shares remains suspended.
Oozi Cats has been kicked off the board of Telit Communications (TCM) after it turned out that he withheld information about an indictment against him in the US when the company floated 12 years ago. There have been fears about the cash position of the business but the directors’ have tried to reassure investors. Telit plans to appoint three UK-based non-executive directors.
Tracsis (TRCS) has reassured investors that it should hit market expectations for 2016-17. This means that pre-tax profit will be better than the £6.9m reported in the previous year. Tracsis had warned that the second half would have to be strong in order to make the forecast and this has happened. There was £15m in the bank at the end of July 2017. A reorganisation of the traffic and data services division should improve margins this year. The full year results will be reported in November.
IDOX (IDOX) is acquiring electoral back office software provider Halarose for £3.5m in cash and £1.5m in shares. This will boost the market share of IDOX in the UK elections market and there should also be cost savings.
Wilmcote Holdings (WCH) is the latest shell backed by Marwyn to join AIM. The £15m raised will be used to seek significant acquisitions in the chemicals sector. The share price rose from 120p to 132.5p. Former Synthomer boss Adrian Whitfield is chief executive.
Market research firm System1 Group (SYS1) stunned the market with a profit warning that sent its shares down nearly one-third. The former BrainJuicer announced at its AGM that the lack of a repeat of a large contract last year means that gross profit could be up to 11% lower in the first half of this year. On top of this costs are rising. The interim figures are likely to show breakeven compared with a £2.8m profit in the first half of the previous year. Full year pre-tax profit could fall by up to 15% from last year’s level of £6.3m.
Bushveld Minerals Ltd (BMN) says that a study carried out in conjunction with the Industrial Development Corporation shows strong vanadium redox flow battery technology in Africa with the market peaking by 2025-2030. Global electrolyte demand is likely to peak at the same time at 1200-1800 MWh. There is potential for Bushveld to supply 200MWh of storage per annum and a study is being undertaken for a potential vanadium electrolyte production plant in South Africa. Vanadium mining and related battery technology is the focus for Bushveld. There was a small net cash position at the end of February 2017.
Malvern International (MLVN) reported a reduction in interim loss from £460,000 to £395,000 as revenues slumped from £2.07m to £1.65m. Malaysian revenues fell but operating costs were reduced. There is £360,000 in the bank. The loss in Singapore has been reduced and that was before EduTrust certification, which is required to enrol international students, was reinstated. There has been year-on-year growth of 17% in London revenues and the loss was sharply reduced. House broker WH Ireland is not publishing forecasts at the moment.
Pawnbroker H&T Group (HAT) reported a 62% increase in first half pre-tax profit to £6.2m and the interim dividend was raised by 10%. H&T has been compared with Ramsden (RFX) but the mix of operations and revenues is very different.
Connemara Mining (CON) has raised £200,000 via a placing at 1.75p a share and each new share has a warrant to subscribe for an additional share at 3.42p each. Patrick Cullen has been appointed as chief executive of the gold and zinc explorer.
Red Leopard Holdings (RLH) is in talks to acquire a coal project in Colombia. Red Leopard will have to issue shares with a minimum valued of $180m in order to acquire the La Luna project. Trading in the shares is suspended.
Stem cell services and insurance provider WideCells Group (WDC) has raised £750,000 at 14p a share and the cash will be used to finance growth in the three operating divisions. Positive news has helped to boost the share price over the past two months. This includes the granting of a research licence by the UK Human Tissue Authority. The CellPlan insurance product is on sale and a digital platform is being developed for the educational division, WideAcademy.
Myanmar Strategic Holdings Ltd (SHWE) has raised $423,000 at $10 a share, while $3.9m of loan notes have been converted into shares. The focus is on hospitality and education sectors. The company already operates three hostels in Myanmar and it has acquired the rights from Pearson to open English language centres. Last year, revenues were $330,000 and the loss was $2.38m. Dealings are due to commence on 22 August.
Pembridge Resources (PERE) is set to move from AIM to the standard list on 21 August. It has raised £2.27m at 1.6p a share. The move will provide more time for Pembridge to build up a portfolio of mining investments without worrying about doing this within the timescale required on AIM.
Quarto (QRT) has ended bid negotiations with an unnamed bidder less than a fortnight after revealing the talks. One of the stumbling blocks was the regulatory approval required by the bidder and the book publisher’s management did not want to be distracted from trading by a bid that could take a long time to come to fruition. This is despite the fact that the bid proposal was at an attractive premium.
Bluebird Merchant Ventures (BMV) has located the three historic entry points to the Gubong gold mine in South Korea. This will enable access to five of the veins that were previously mined when the gold price was much lower.
Coinsilium Group Ltd (COIN) has sold its remaining stake in nanopayments software and blockchain company SatoshiPay to AIM-quoted Blue Star Capital (BLU) for €725,000 (£650,000), which has been raised through a placing at 0.2p a share. Blue Star Capital owns 31.1% of SatoshiPay. Blue Star Capital has granted Coinsilium 85 million warrants, of which 42.5 million are exercisable at 0.6p and 42.5 million at 0.8p. Coinsilium has made a gain of 362.6% on its initial SatoshiPay investment in less than two years, even before any longer-term upside from the warrants.
Via Developments (VIA1) has secured an exclusivity agreement to acquire land in Luton, Bedfordshire for £8.25m. The residential development site has planning permission for 200 apartments. A non-refundable deposit of £50,000 has been paid.
Capital for Colleagues (CFCP) has invested £400,000 in Employee Owners Group Ltd, whose main business is timber frame buildings supplier Carpenter Oak, in return for a 30% stake. The cash will be used to grow the business which currently supplies around 90 frames a year.
First Sentinel (FSEN) has raised £700,000 at 11p a share and made three investments, including £35,000 at 7p a share in fellow NEX-quoted company Milamber Ventures (MLVP). The two firms are already working on an investor event at the Century Club, Shaftesbury Avenue in London on 11 July. First Sentinel plans to sell the Milamber shares in the market. First Sentinel has also invested $300,000 in a 13%, one year loan note for Red Rock Resources (RRR) with two year warrants exercisable at 2.2p a share, compared with a market price of 0.75p. The third investment is in newly floated AIM copper mining company Phoenix Global Mining (PGM), where First Sentinel invested £81,000 at the placing price of 4p a share.
Premier Technical Services Group (PTSG) is acquiring Brooke Edge Industrial Chimneys Ltd for an initial £14m, plus £1m in acquisition costs, and the building services provider has raised £15m in a placing at 120p a share. There is deferred consideration of £6m payable in three yearly instalments, which fits with the owners staying on with the business for at least three years. The acquisition made a profit of £2.1m on revenues of £10.6m last year. This consolidates Premier’s position in lightning protection services, while specialist earthing and surge protection will be added to the group’s range of services. Although the acquired business has similar margins to Premier, it has lower margins than the same businesses already owned by Premier. This means that continued growth in revenues could be complemented by improvements in margins providing even faster profit growth. According to Numis, he acquisition will enhance earnings per share by 5% to 8.7p in 2017 and 12% to 9.2p in 2018.
Blur Group (BLUR) has managed to raise £1.7m at 1.75p a share in an oversubscribed placing that more than trebles the number of shares in issue. There is one warrant for every four shares with an exercise price of 3.5p. Robert Keith has increased his stake to 25% following the placing. The need for the cash is reflected in the low issue price, which is more than 40% below the all time low market price.
Superyacht painting and maintenance services provider GYG (GYG) joined AIM on 5 July and the share price has already risen from 100p to 120p. GYG raised £6.9m before expenses.
Thor Mining (THR) will start a drill programme for the Pilot Mountain tungsten project in August. Thor expects the results in the near future from a 50 hole drilling programme on the Dundas gold project in Western Australia. Further opportunities are being assessed.
Portmeirion Group (PMP) says that its sales were 16% higher in the first half of 2017 but excluding home fragrance products manufacturer Wax Lyrical, which was acquired in May 2016, the sales are 3% higher due to a boost from sterling weakness. Churchill China (CHH) continues to grow it exports and this has been helped by weaker sterling comparatives in the first half of 2017.
Walker Greenbank (WGB) has received its final insurance payment of £2.4m relating to the flood of its fabric printing factory at the end of 2015. This takes the total payment to £19.3m.
Home improvement products supplier entu (UK) (ENTU) is undertaking a strategic review. There are already plans to cut costs and improve efficiency but entu needs to secure long-term financing to improve the balance sheet. There could also be disposals of businesses.
Sula Iron & Gold (SULA) has completed six holes of the phase 3 drilling at Sanama Hill at the Ferensola gold project in Sierra Leone. So far, 2,000 metres out of a total of 5,000 metres of drilling has been completed. Part of the drilling will include further exploration of the new southern target. The assay results will be available at the end of July.
Veltyco Group (VLTY) says that first half trading is significantly ahead of market expectations. This is not the first time that Veltyco has beaten expectations and even before this the full year pre-tax profit was expected to jump from €1.74m to €4.62m.
TechFinancials Inc (TECH) expects to make a first half loss. Senior management has taken a 20% pay cut. There is still $5.8m in the bank.
Safestay (SSTY) has acquired second hostel in Barcelona for €2m. Safestay has eleven hostels and acquisitions have gathered pace following a £12.6m sale and leaseback deal.
Share trading will commence on 12 July in standard list shell Rockpool Acquisitions, which is seeking to acquire a Northern Ireland-based company. Rockpool is raising £1.085m at 10p a share, having previously issued 1.875 million shares at 8p each.
RockRose Energy (RRE) has raised £8m at 150p a share and it continues to progress the acquisition of oil and gas assets.
Gresham Technologies (GHT) says that revenues will be 26% higher in the first half of 2017. Eight new Clareti Transaction Control software clients have been signed up in the first half. Net cash is £7.7m.
Quarto Group Inc (QRT) has sold its New Zealand business, which was the last non-publishing business owned by the group. Quarto will receive $600,000 over two years plus 50% of debtor receipts for the next year. Quarto is also entitled to 15% of pre-interest profit for three years.
Brewer Adnams (ADB), which sponsored last year’s Tour of Britain cycling event, continues to invest in its brewery with beer sales moving above 100,000 barrels in 2016. More of that beer is being sold in kegs. The decline in sterling increased the price of hops and wine, which hit the retail operations. In 2016, revenues improved from £65.7m to £70.3m, while pre-tax profit increased from £4.07m to £5.02m, predominantly down to a rise in asset disposal gains from £625,000 to £1.43m. Adnams sold the UK distribution rights to Lagunitas beer. The NAV has fallen to £27.5m because of an increase in the pension liability. There is a dividend of 150p per B share and 37.5p per A share. This year there will be the first beer duty tax increase in four years.
Investment company First Sentinel (FSEN) joined the NEX Exchange growth market on 24 March and pre-IPO £633,000 was raised at 10p a share. That is before costs of £130,000. The founding shareholders own 99.2% of the company with 50,000 shares issued to the market maker. The company’s strategy is to provide investments to small companies with an opportunity covering more than 1,000 quoted companies identified in the UK, Europe, Asia and Australia. First Sentinel is run by former Rangers International Football Club director Brian Stockbridge and the main shareholders are two other former directors of Rangers or its subsidiaries, James Easdale and Sandy Easdale. The company is employing Stockbridge’s corporate finance business First Sentinel Corporate Finance, which will receive an annual fee of 1% of First Sentinel’s assets under management (payable at 0.25% each quarter) plus performance fees based on 20% of pre-tax profit each year when the gross return on capital is less than 20% or 40% of pre-tax profit if the gross return is more than 20%. First Sentinel will be paid 50% of deal fees generated by First Sentinel Corporate Finance from any investment transactions involving the NEX-quoted company. Stockbridge and his partner Aimee Freeding each receive £2,000 a month from First Sentinal. The whole board will be paid £72,000 a year in fees. There are currently 6.36 million shares in issue, with nearly as many shareholder warrants, but the company intends to issue up to 100 million more shares. Stockridge and Freeding have director warrants that enables each of them to receive 10% of the enlarged share capital at the time they are exercised – they each currently own 8.1%. Fellow director Tom Dignall has directors warrants over 5% of the enlarged capital at the time of exercise. The warrants are exercisable over five years. Matthew Rice is the independent director and he has no interest in the present or future share capital. First Sentinel is an investment for fans of Stockbridge.
Angus Energy (ANGS) expects to issue a first tranche of bonds on or around 27 April. Angus plans to issue up to £3.5m secured bonds maturing on 30 June 2022 and these will be quoted on NEX.
A rise in the zinc price has provided further impetus for IMC Exploration (IMCP). A comprehensive zinc works programme on its licences that are between the existing Tynagh and Silvermines deposits in Ireland.
Imperial Minerals (IMPP) is more optimistic about the prospects of the resources sector than one year ago. There was £66,000 in the bank at the end of 2016 and since then Imperial has sold its remaining shares in North River Resources for £30,000.
MetalNRG (MNRG) has raised £295,000 at 0.5p a share – every two shares have a warrant to subscribe for one share at 1p – and directors have exercised options at the same price that provide a further £47,500 – every option exercised sparks the issue of a bonus option exercisable at 0.75p a share. This takes the cash in the bank to £480,000, which will be used as working capital as the company seeks suitable investments. Gervaise Heddle has become a non-executive director. Heddle already owns 9.51 million shares in MetalNRG and he will not receive any pay until the company’s NAV is more than £1.5m but he has been issued 3 million options at 0.5p each.
Ecommerce technology provider Netalogue Technologies (NTLP) has signed an agreement with Sage. Netalogue’s ecommerce platform complements Sage’s X3 ERP technology and the deal could help Netalogue to access new customers.
NQ Minerals (NQMI) has raised a further £32,000 at 8p a share.
Gatemore Capital Management has requisitioned a general meeting at DX (Group) in order to remove Bob Holt and Paul Murray from the board. The plan is to replace them with Ron Series (as chairman), Paul Goodson, Russell Black and Lloyd Dunn. Gatemore is an activist investor that has been involved with French Connection and Gym Group in recent months. Gatemore’s stake in the parcel deiivery company rose above 3% six months ago and the stake has been built up to 11.3%.Furious 7 live streaming film
Pebble Beach Systems (PEB) formerly Vislink, has taken a reduced payment for its broadcast technology division. Former AIM company xG Technology Inc, which has spent more than a decade failing to develop its own business into a profitable operation, is paying $2m of the $4.9m it still owed in the agreement. Net debt has been reduced from £17m to £12m via the disposal and there is potential to obtain $2m from a creditor. The problem is that the remaining software business is too small to prosper with that level of debt.
SalvaRx Group (SALV) is investing in Rift Biotherapeutics Inc, which is developing antibodies for use in oncology. An initial investment of $1m will give SalvaRx a 30% stake in Rift. If the company achieves milestones then SalvaRx could invest a further $1.5m at the same valuation and swap its shares for the shares in Rift held by the other shareholders.
Tracsis (TRCS) had already warned that its interims would be weak. In the end, revenues were one-fifth higher at £15.6m and underlying profit was 11% higher at £3.1m.The cash balance improved to £12.7m. The interim dividend was raised by one-fifth to 0.6p a share. Management is still confident that the second half will be significantly stronger.
Caledonia Mining (CMCL) increased its production, cut costs and received a higher gold price in 2016. The Blanket mine increased gold production from 42,804 ounces to 50,351 ounces and all in sustaining costs fell from $1,037/ounce to $912/ounce. The gold price achieved rose from $1,139/ounce to $1,232/ounce. Production and costs are set to continue to improve. There was $23m generated from operations last year, more than enough to cover capital expenditure and dividends. The annualised dividend is running at 5.5 cents.
Starcom (STAR) continues to be accident prone. Last year, it could not satisfy demand for Watchlock Pro because parts were not delivered. This meant that full year revenues were flat at $5.13m although the post-tax loss fell from $1.76m to $1.36m. There was $35,000 in the bank at the end of 2016.
Falcon Acquisitions Ltd (FAL) is acquiring two businesses involved in technology, distribution and content operations in the Over The Top television sector. Falcon has raised £4m at 25p a share to provide finance for the enlarged business. The plan is to offer a platform to customers as well as its own content via its own channels. The shares should be readmitted on 27 March. The company will be renamed Falcon Media House Ltd.
Telecoms company Toople (TOOP) is finding it difficult to win business. Apparently, Toople’s main offering to small businesses is not as competitive as it thought so it is focusing on its cloud-based telephony service, which is building up its revenues. The share price has slumped from 8p to 3.25p in less than one year. According to last year’s prospectus, chief executive Andrew Hollingworth gets £120,000 per year (as well as 35 days holiday plus bank holidays) while he acquired his 26 million shares in Toople at 0.0667p each. Finance director Neil Taylor gets £60,000 a year for a two day week. In 2015-16, gross profit was £78,000 while the cash outflow from operations was £1.42m. It appears that the outflow should slow in the first half of this financial year but it will still be significant. There was £744,000 in the bank at the end of September 2016 but there was also debt of £469,000. Given the vast overheads for a company of this size it is no surprise that Toople needs to raise working capital. The trading statement also says that the board “continues to focus on tight cost control” and hopefully they will be able to think of some excess costs that could be reduced.
Books publisher Quarto Group (QRT) has sold its 75% stake in Hong Kong-based Regent Publishing Services for $7m – a gain of $3.3m on book value.
Bondholders in US-focused oil and gas company Diversified Gas & Oil (DOIL) have overwhelmingly opted to take the cash alternative ahead of the flotation of the ordinary shares on AIM on 3 February. A total of £10.35m worth of bonds (97.1% of bonds in issue) are taking cash, while £198,000 of bonds will be swapped for 380,769 ordinary shares. There will be £106,640 worth of bonds remaining in issue but there will be no trading facility. The ordinary shares of Diversified Oil & Gas (DGOC) raised £39.7m at 65p a share, valuing the company at £68.6m. The share price slipped to 56.25p at the end of the first day’s trading.
Property investor Ace Liberty & Stone (ALSP) had a property portfolio worth £28.5m at the end of October 2016 and this generates annual rental income of £2.31m. The NAV was £18.25m at the end of October 2016 with a £500,000 revaluation gain partly offset by the final dividend payment.Net debt was £6.7m, down from £7.7m at the year end and there are assets held for sale worth £6.3m. Since October, a property was acquired at Hanley for £9m. The deal was financed by a £13.75m loan facility from Lloyds Bank with the rest of the cash used to refinance debt relating to five other properties.
DagangHalal (DGHL), which operates an e-marketplace for Halal verification, has parted company with its chief executive and trading in the shares has recommenced. Mohamed Hussain was paid the compensation that he was entitled to in his contract but he is claiming for twice his annual salary – equivalent to £195,000. Ali Sabri Sani Abdullah has stepped up from finance director to chief executive, while Jeff Teo and Derek Marsh have been appointed to the board. Cairn has replaced Arden as corporate adviser. The share price has not changed since trading recommenced.
AIM-quoted Metal Tiger (MTR) has sold its 28.2% in MetalNRG (MNRG) to Value Generation Ltd, a business associated with MetalNRG director Paul Johnson, and Gervaise Heddle, which each own 14.1% of the resources shell. The sales price was 0.26271p a share, whereas Metal Tiger had paid 0.2628p a share nearly one year ago.
BWA Group (BWAP) says it has been in talks with three potential acquisitions but none of the potential deals progressed. There was a £16,276 cash outflow from operations in the six months to October 2016, which was partially offset by the sale of an investment. BWA had a NAV of £562,000, with £41,593 in the bank, at the end of October 2016.
Botswana-focused oil and gas explorer Karoo Energy (KEP) says that exploration work on its two licences has confirmed the company’s geological model which predicts a deep sedimentary basin that could contain shale gas. In the six months to October 2016, there was a £326,000 cash outflow including capitalised exploration spending. Karoo had £168,000 in the bank at the end of October 2016, and £11,000 has subsequently been raised.
Property development and management services provider Formation Group (FRM) plans to consolidate its shares and shareholders will get to vote on the proposal at the AGM on 27 February. If the five-for-one consolidation is approved it will take place on 28 February.
Valiant Investments (VALP) has raised a further £34,000 at 0.1p a share. Valiant’s 84.7%-owned subsidiary Flamethrower has set up a new company called Slot Right In, which will be the social casino division and Flamethrower plans to acquire and trade domain names. Flamethrower continues to add to its portfolio of apps.
Property investor Ecovista (EVTP) says it is looking at investments in London, Essex and Hertfordshire. An offer of £275,000 has been accepted for a cottage owned by the company, while a house in Bishop Stortford, acquired for £665,000 last year, has been demolished and construction of a new building with a gross value of £1.35m will start in the spring. A planning appeal has been lodged for the development of car park site near Stansted Airport.
Grant Thornton will step down as corporate adviser to Chinese medical products and services provider MiLOC Group (ML.P) on 6 March.
AdEPT Telecom (ADT) is acquiring Our IT Department, an IT services provider in London and the South East, for an initial £4.75m with up to £3.75m more payable depending on performance. This is a profitable business that brings additional IT skills to the telecoms business. AdEPT has secured a £30m, five-year bank facility from Barclays and RBS, which will help to finance further acquisitions.
Everpower International is acquiring a 9.9% stake in Haydale Graphene Industries (HAYD) in return for a £3.26m cash payment – equivalent to 170p a share. This is part of an agreement that will enable Haydale products to be manufactured for the Chinese market. Commercial revenues from the Huntsman agreement are not likely to come through until 2017-18 and with other strategy changes this means that the revenues for the year to June 2017 will be lower than expected.
Automotive acoustics and thermal insulation designer Autins (AUTG) has shocked the market with a profit warning less than six months after joining AIM and the chief executive has resigned. First quarter sales have been in line with expectations but a major customer has reduced orders. The share price has fallen from the August placing price of 168p to 145p – but it had been as high as 240p. Miton had added to its stake in January.
Ascent Resources (AST) says the flow test at the Pg-10 well was better than expected. The maximum stabilised flow rate was 8.8 million cubic feet of gas per day.
LED lighting technology developer PhotonStar LED (PSL) says that its 2016 revenues will be slightly lower than expected and the loss will be higher because of a challenging second half. Revenues were around £5.4m and the pre-tax loss was £1.3m. There was £230,000 in the bank at the end of 2016 with £830,000 of invoice financing. Cost savings have been made and this helps to improve the outlook for 2017, although the poor second half trading has continued into January.
Eagle Eye Solutions (EYE) says that interim revenues have grown 72% to £5.1m, which is better than expected. The nationwide roll-out of the Asda contract has increased coupon redemption numbers. Cavendish Asset Management has increased its stake to 8.26%.
ECR Minerals (ECR) says that the Australian government has given consent to for drilling at the Byron target in the Bailieston project area. ECR has applied for two more licences and is awaiting news of the renewal of the Avoca licence.
Tissue Regenix Group (TRX) says that dermal allograft product DermaPure, which includes the company’s dCELL technology, has been included in the US Department of Veteran Affairs Federal Supply Schedule. This covers 152 hospitals and 800 outpatient units. This will boost the commercial prospects of the wound care product.
Prospex Oil & Gas (PXOG) is raising £850,000 at 0.5p a share and this will help to finance the evaluation of potential projects. The share price has slumped since the beginning of the year because of a disappointing result from a well on its Kolo licence area in Poland. The placing price is about one-fifth of the share price prior to the drilling news.
New management at Quantum Pharma (QP.) says trading is in line. This suggests that the pre-tax profit for the year to January 2017 will be £6.7m, down from £10m in the previous year, although there will be exceptional reorganisation charges. The loss-making NuPharm business has been closed. Net debt was £13.5m – after most of the reorganisation costs have been paid. The share price is less than one-third of its peak less than two years ago but it is higher than the 34p a share placing price in October.
Vela Technologies (VELA) is raising up to £550,000 from a bond issue via the UK Bond Network. There is already interest for £250,000 of bonds and the other £300,000 have been underwritten. The interest rate is 10% and the bonds can be repaid after one year, including interest. If they are repaid earlier than one year’s interest has to be paid. Vela will use £150,000 to increase its investment in Portr, the airline passenger facilitation and baggage transport service.
BP Marsh (BPM) has subscribed for a 30% cumulative preferred ordinary shareholding in Stewart Speciality Risk Underwriting Ltd, a Toronto-based start-up headed by a boss with 25 years of experience. Stewart specialises in insurance for the construction, manufacturing, onshore energy, transport and public sectors. A £480,000 loan facility is also being provided.
Reconstruction Capital (RC2) is returning €17m of cash to shareholders. This equates to €0.115 a share.
Engineering and environmental consultancy Waterman Group (WTM) says that its interim revenues and profit will be in line with last year. Net cash was £6.7m at the end of 2016. This will enable Waterman to continue to increase its dividend.
Publisher Quarto (QRT) is on course to increase its pre-tax profit from $14.1m to $15.5m. Net debt was $62.2m at the end of 2016. A buyer has been identified for the Australian distributor Books and Gifts Direct. This will raise $1m in cash with the other $4.75m of the disposal price in loan notes. Even after a 46% increase in the share price, the 2016 multiple is less than eight. There are plans to change the way that the backlist of titles is valued.
Rainbow Rare Earths (RBW) commenced trading on the standard list and the share price ended the week at 12p, compared with the placing price of 10p. Rainbow has issued £260,000 worth of shares at the placing price to cover a majority of the costs of its flotation.
Challenger Acquisitions Ltd (CHAL) has sold Starneth less than two years after buying the designer and engineer of giant observation wheels. Challenger completed the acquisition of Starneth in July 2015 when an initial €1.25m was paid in cash and €825,000 in shares at 75p each. The second cash payment of €1.25m was delayed. Challenger will receive $6m in fees when the Jakarta wheel’s funding arrangements are finalised and the €1.25m payment will be taken out of that. There had been a third payment due but that does not appear likely to happen. This is a complicated deal but it is difficult to see this as a positive deal for Challenger but it will continue to work with Starneth and it will have a stake in the New York wheel. Acquisitions of businesses in the leisure and entertainment sectors that are close to revenues are likely.
Beer and spirits volumes were both higher in the first half for Adnams (ADB). Beer volumes were 7% ahead, while the volumes of the less-mature spirits business were 60% higher in the first half. However, increased marketing costs meant that operating profit fell from £962,000 to £624,000, while disposal profit jumped from £407,000 to £1.42m – including the sale of UK distribution rights for Lagunitas to Heineken. The second half is always stronger for the pub and retail operations. A £7m investment is being made to increase brewery capacity by next summer. The A and B dividends have been increased by 5.6% to 19p and 76p respectively. The record date for the dividends is 9 September. There were 132 shares traded during the week at prices between 10500p and 10850p.
WMC Retail Partners (WELL) expects to make a lower interim loss this year. WMC has agreed in principle a funding package of £1.8m plus revised terms for the lease of Cornish Market World, which is still losing money even though a reconfiguration has improved performance. Interests related to two directors are lending the company £300,000, taking the total outstanding to £400,000, ahead of completion of the funding package. These loans are repayable at the end of November but longer term loans, which shareholders have to approve, are being negotiated.
National Milk Records (NMRP) has appointed Mark Frankcom, who has previous experience in the dairy industry, as its new finance director. Since April 2011, Frankcom has been a director of Gloucestershire-based Combined Brewers, which was known as Cotswold Spring Brewery prior to its merger with Severn Vale Brewery, where he owns 33.3% of the shares. At 77.5p (76p/79p) a share , NMR is valued at £5.8m. The latest trade was 320 shares at 76p each on 10 August.
There has been mixed news for blockchain technology investor Coinsilium (COIN). Factom, which has developed technology to time stamp trading data, has done a deal with digital information platform DataYes to publish pricing data on the “3,000 most valuable Chinese stocks”. Coinsilium has a 1.9% stake in Factom. The management of Mexico-based digital currency exchange MeXBT, where Coinsilium has a 17.6% stake, has temporarily suspended its exchange operations in order to perform a review.
Diversified Oil & Gas (DOIL) has bought back £197,000 worth of 8.5% unsecured bonds from a bondholder fund. There are £9.93m worth of bonds in issue, including the bonds bought back.
Premier Technical Services Group (PTSG) continued to grow strongly in the first half and it has not been hit by the Brexit vote. In the past two weeks, Premier has secured two access installation contracts worth £2.5m. The construction-related order book stretches out to 2018 and the testing and maintenance operations also have a strong order book. The two dry and wet riser systems installation businesses acquired in July will contribute to the second half.
Staff turnover is holding back the progress of energy procurement services provider Utilitywise (UTW) and it has overhauled its management, including the appointment of a new chief executive. Brendan Flattery is joining the company at the beginning of October, having previously headed Sage’s European business. Sales grew by 19% in the year to July 2016, while EBITDA will be slightly higher than last year at around £18m. Earnings per share forecasts have been reduced by around 10% to 17.7p, which is slightly lower than the previous year.
Digital media company Milestone (MSG) is providing NaPo with a white label version of its Backstage HD music publishing platform. NaPo is a mobile reward platform and revenues generated will be shared 50/50.
Audio visual services provider MediaZest (MDZ) says that it is targeting its first ever post tax profit in 2016-17. In the year to March 2016m revenues grew from £2.48m to £3.14m, while the post tax loss was cut from £656,000 to £109,000, excluding share-based payment charge. There are two large projects that could come through later this year or early in 2017.
Self-storage sites operator Lok’nStore (LOK) says that like-for-like storage occupancy was 2% higher last year and prices have increased by a similar percentage. This lead to a 5.2%increase in sales and means that Lok’nStore is on course to increase earnings per share buy one-third to 10.3p. There are plans for new outlets including one in Gillingham, Kent.
Information management software provider Ideagen has acquired Covalent, which is similar to its own business, for £3.6m. Covalent has a customer base that includes the NHS, local government and housing associations and annual recurring revenues are £1.9m. This deal has led to a 8% increase in forecast 2017-18 earnings per share to 3.5p.
Mining services provider Management Resource Solutions (MRS) has agreed to acquire the min assets of SubZero Group Ltd for A$6.12m in cash and shares. This cost includes the assumption of A$2.85m of equipment finance and employee benefits. SubZero, which has generated annual revenues of A$40m, fits with MRS’ project management and labour hire businesses and will double group revenues. Operating sites will be consolidated and corporate costs reduced. Rising coal prices should lead to recovery in demand for the group’s services in Australia.
Publisher Quarto (QRT) has acquired becker&mayer publishing assets for $9.8m. The US-based business is a book publisher and toy business and a further $1.25m could become payable. The US will account for 45% of group revenues, while children‘s publishing will be 30% of group revenues. Quarto is second half weighted so the interim loss is no surprise. The interim dividend is unchanged at 5.13 cents a share but in pence terms it will be higher. Full year profit is expected to improve from $14.1m to $15.5m.
Tex Holdings (TXH) says that a change in mix of work meant that profit did not reflect the improvement in interim turnover from £17.8m to £20.6m. Pre-tax profit was flat at £495,000. Plastics turnover fell in the first half but sales volumes have picked up in the second half. The interim dividend has been increased by one-quarter to 2.5p a share.