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Andrew Hore – Quoted Micro 22 February 2021

AQUIS STOCK EXCHANGE

British Honey Company (BHC) is acquiring Union Distillers for an initial £8m in cash and shares. Leicestershire-based Union Distillers has been trading for more than eight years and has its own still and bonded warehouse. There is a range of gins, vodkas, a spiced rum, an absinthe and an espresso vodka liqueur under the Two Birds brand. There could be up to £2m of earn-out consideration payable in cash and shares depending on the target revenues from the Union products. A share issue raised £4.59m at 110p a share, while a convertible loan note issue added a further £1.63m. Union has £250,000 in cash. The deal should be earnings enhancing and cash generative. In the year to September 2020, Union generated revenues of £4.94m and pre-tax profit £1.13m. NAV was £1.52m.

National Milk Records (NMRP) reported flat interim revenues of £10.8m, but pre-tax profit increased by one-quarter to £500,000. Net debt was reduced to £1.1m despite investment in a genomics lab. An unchanged dividend of 1.25p a share will be paid. The outlook is positive for the dairy sector with UK milk prices expected to be maintained at current levels. Finance director Mark Frankcom has bought 9,974 shares at 101.75p each.

Imperial X (IMPP) is making four acquisitions and continues to move towards a standard listing. The purchases involve the issue of 245.6 million shares. Cloudbreak Discovery Corp, Howson Ventures Inc and Cabox Gold Corp are all being acquired, and certain assets of Anglo African Minerals are being bought. Imperial X has a £10m drawdown agreement with Crescita Capital. This lasts for three years.

Upper Thames Holdings (UPPT) is not going ahead with the proposed acquisition of Sweden-based mobile camera systems technology company Ridercam. Instead, the focus will be on blockchain and the linking of conventional currencies with cryptocurrencies. A placing has raised £516,000 at 1p a share. Peterhouse has been appointed as corporate adviser.

Hydro Hotel Eastbourne (HYDP) fell into loss last year as revenues slumped by two-fifths. The hotel has been closed or under restrictions for the period since the year end in October 2020. There is £1.03m in the bank and the NAV is £3.3m.

S-Ventures (SVEN) has bought a 75.1% stake in Ohso Chocolate for £295,000 in shares at 9p each. The remaining 24.9% stake in Ohso could be sold for nearly 1.1 million shares. Ohso is a probiotic chocolate supplier and it generated revenues of £311,000 during 2020. The S-Ventures chief executive and finance director owned 50.6% in Ohso.

World High Life (LIFE) is changing its name to Love Hemp. A general meeting will be held on 11 March. In the first half, revenues were £2.36m and second quarter revenues were nearly double those in the first quarter, although the gross margin fell. A debt of £2.15m has been settled by the issue of 86.1 million shares.

Sativa Wellness Inc (SWEL) has submitted a novel food application for validation by the Food Standards Agency. This covers a range of CBD products.

Wishbone Gold (WSBN) has identified new gold targets at the Red Setter project in Western Australia. The magnetic survey has discovered targets that are shallower than previously.

Ananda Investments (ANA) has raised £300,000 from two investors. This will finance the first phase of the medicinal cannabis growing facility in Lincolnshire. Vulcan Industries (VULC) has raised a further £330,000 at 4p a share.

AIM

Avacta (AVCT) is starting its first clinical study. This is a phase I study for AVA6000, developed from the pre|CISION platform. This is a treatment for solid tumours, including those for bladder, pancreatic, colorectal and breast cancer. The trial will assess safety and dosage levels. Early data could be published before the end of the year.

Transense Technologies (TRT) should move into profit next year as it receives a full year of royalties following the sale of the iTrack business to Bridgestone. In the year to June 2020, there was a £1.3m loss and this year there could be a much-reduced loss this year. Once Bridgestone has built up iTrack sales the royalties will cover group overheads. This will enable Transense to invest in its surface acoustic wave technology and Translogik tyre probes. A 2021-22 pre-tax profit of £357,000 is forecast.

Strong underlying growth in the mobile division helped Blannco Technology (BLTG) to maintain interim revenues at £17.4m. The previous year included £1.4m of one-off contract income. The fastest growth is in Asia Pacific. The prospects for data erasure operations are good and new partners have been signed up. Data erasure is particularly important while remote working is a major factor in companies.

Chamberlin (CMH) is getting a cash injection from Trevor Brown. The £200,000 loan will, subject to shareholder approval, be converted into shares at 6p each and Brown will have a 29.5% stake. The Scunthorpe foundry is busy and profitable, but management is still trying to win work for the Walsall foundry.

Duke Royalty (DUKE) has secured a new client involved in steel fabrication. There is a £6.2m royalty financing agreement with Meteor HoldCo, which makes steel street lighting and guardrail products.

Telecoms testing systems supplier Calnex Solutions (CLX) says some revenues appear to have been brought forward into 2020-21 and therefore the full year revenues and profit will be ahead of expectations.

Trans-Siberian Gold (TSG) has published details of the Rodnikova project scoping study, which suggests a potential 14-year life for the project. The JORC resource is 6.3Mt at an average grade of 5g/t gold. Post tax NPV10 is $177.6m – based on $1,600/ounce gold price.

MAIN MARKET

Israel-based cannabis-based products supplier Kanabo Research has completed its reversal into standard list shell Spinnaker Opportunities to form Kanabo Group (KNB) two years after the deal was announced. The value of the deal was £15m in shares and the company also raised £6m at a share price of 6.5p. Kanabo was valued at £23.4m when it was admitted to trading. The share price has risen to 31p – having at one point reached 50.75p – and that values Kanabo at £111.7m. One of the investors in Kanabo is AIM-quoted Vela Technologies (VELA) and it invested £150,000 at 6.5p a share.

MGC Pharmaceuticals (MXC) has expanded its research programme into the use of cannabinoids to treat aggressive glioblastoma brain cancer. The expanded study includes the use of a nanoparticle delivery system. MGC has also secured a three-year distribution agreement with Swiss PharmaCan for its product ArtemiC Rescue as a food supplement. The minimum order quantity is 40,000 units per quarter, which has a retail value of $3.4m.

Path Investments (PATH) is not going ahead with the purchase of DT Ultravert from two vendors including Zoetic International (ZOE) following concerns during the preparation of the potential prospectus. Path has raised £3.5m at 0.25p a share.

Rare earths explorer Pensana (PRE) is dropping its listing on the ASX.

Papillon Holdings (PPHP) has submitted a prospectus to the FCA for the proposed reverse takeover of the Kilimapesa gold project.

Andrew Hore

Andrew Hore – Quoted Micro 15 February 2021

AQUIS STOCK EXCHANGE

Oberon Investments Group (OBE) has joined the Access segment following the reversal of the wealth management business into standard list shell Baskerville Capital. Assets under administration are more than £400m. Oberon was formed in 2017 and acquired investment manager MD Barnard. It also has a corporate broking business, and it is joint broker to MyHealthChecked (MHC). There was £1.44m raised at 4p a share at the time of the reversal.

Brewer Curious Drinks is being placed into administration and the business will be acquired by Risk Capital Partners, which was founded by Luke Johnson. This will have to be agreed by the HMRC and the secured creditor HSBC. There should be no redundancies Majority owner Chapel Down Group (CDGP) is offering small shareholders in Curious Drinks a share swap. There will be 1.57 Chapel Down shares issued for each Curious Drinks share. In 2015, Curious Drinks raised £1.71m via a crowdfunding with Seedrs, which equates to a market capitalisation of £17.7m. That funding was equivalent to 9.66% of Curious Drinks and there were 886 shareholders. The share swap should provide around 50% of the initial investment. There will be less than 1% dilution for Chapel Down shareholders. Chapel Down net debt will be slashed from £7.2m to £100,000. There was a loan from Chapel Down to Curious Drinks of £7.77m included in the 2019 accounts.

Coinsilium (COIN) holds $1.98m of cryptocurrency and tokens, which is a 17% increase in fewer than three weeks.

Gunsynd (GUN) has sold all its shares in Angold Resources. This raised £163,000. Chris Akers has increased his stake in Gunsynd to 5.36%.

Tectonic Gold (TTAU) continues to have a 100% success rate for its exploration drilling. According to managing director Brett Boynton the latest hole shows “multiple stacked veins somewhat like a palm tree spraying out mineralised fronds from the primary fault zone”.

NQ Minerals (NQMI) has raised £301,000 at 7p a share from one institution and private investors. Vulcan Industries (VULC) has raised a further £185,000 with some shares placed at 3.6p and some at 4p.

Western Selection (WESP) has bought a further 150,000 shares in Bilby (BILB) at 29.8p each. The total stake is 11%.

AIM

Joules (JOUL) has acquired the Garden Trading Company, which takes it into the home and garden market and adds annual revenues of £168m. Joules is paying £4.5m in cash and 2.83 million shares. Peel Hunt has increased its 2021-22 pre-tax profit forecast by £2m to £10.6m.

Engineer Avingtrans (AVG) maintained its interim revenues at £54.1m and the stemming of losses at recent acquisitions has helped pre-tax profit to nearly double to £3.5m. It offset the lower demand from the oil and gas sector. The recent merging of the MRI operations with Magnetica, will enable niche MRI products to be developed, but it will take time for the revenues to come through. Meanwhile, Avingtrans is stopping supplying third parties. The valuable Luton site could be sold in the next year or so if market conditions allow.

Kromek (KMK) is raising up to £13m via a placing and open offer at 15p a share. The cash will be used to accelerate the commercialisation of its bio-security products and boost the marketing of medical imaging and nuclear detection products. Intuitive Investments Group (IIG) is investing £250,000 in the placing.

Packaging manufacturer Robinson (RBN) is acquiring blow moulded containers producer Dhela Plast for up to £7.7m. There will be additional investment of £2.4m in the Danish company. The customer sectors are similar to Robinson and the deal widens its geographic reach.

MAIN MARKET

Motor finance provider S & U (SUS) expects a rebound in demand when lockdown restrictions are eased. In the past two months new deal transactions are running at nearly 80% of previous levels. Investment in Aspen Bridging has been increased because of the strong demand. A second interim dividend of 25p a share has been announced.

A planned demerger of assets by Aseana Properties Ltd (ASPL) has been stopped because the banks have not agreed to the proposal.

Castillo Copper Ltd (CCZ) confirms an extension to the 100%-owned Big One deposit and JORC modelling is underway.

Argo Blockchain (ARB) intends to acre 320 acres in Texas where it will build a new mining facility in the next 12 months. The overall cost will be $17.5m in shares.

UP Global Sourcing (UPGS) grew interim sales by 11%. Beldray represented 28% of sales, with the next biggest contributions coming from licenced brands Salter and Russel Hobbs.

One Heritage Group (OHG) is taking advantage of the share price rise over the past two months to raise £548,500 at 30p a share. The residential developer floated before Christmas at 10p a share. One Heritage plans to buy an office block in Stockport, which can be converted into residential. Plus House will cost £725,000.

Tirupati Graphite (TGR) is increasing the planned flake graphite capacity of the first module at the Vatomina project by 50% to 9,000 tonnes a year. The project will be commissioned in the second quarter. Carboflamex and other expandable graphite products produced by the company have gained certification to be sold in the EU.

Avation (AVAP) has entered into a lease with an Asian airline for an ATR72-600 aeroplane, which should be delivered in March.

Andrew Hore

Andrew Hore – Quoted Micro 8 February 2021

AQUIS STOCK EXCHANGE

Clinical IT developer DXS International (DXSP) is encouraged by the initial results from pilots of the ExpertCare system designed to analyse the electronic records of people with hypertension. DXS is awaiting NHS accreditation.

World High Life (LIFE) has appointed Tony Calamita as chief executive. He is a founder of Love Hemp, whose vendors will receive deferred consideration of £2m in shares at 1.5p each. Calamita will hold a 13.5% stake. The company has raised £467,000 at 1p a share.

Juliet Davenport is stepping down as chief executive of Good Energy (GOOD) but will continue as a non-executive. Good Energy company Zap-Map has signed up ESB Energy to its Zap-Pay electric vehicle charging payment service.

Capital For Colleagues (CFCP) has sold its investment in civil engineering materials distributor Civils Store for £1m, which represents a profit of 150% on a £400,000 investment. The initial £500,000 will be received on 15 February and the rest by the end of July.

EPE Special Opportunities (ESO) increased its NAV by 38% to 437.63p a share during the year to January 2021. EPE raised £10m from the sale of LED lighting company Luceco (LUCE) shares and retains a 24.9% stake.

Belvedere Leisure (BELV) reported a loss of £499,000 for the year to June 2020. There were the costs of the flotation of the corporate bonds.

Rutherford Health (RUTH) has approval to treat patients at its North West cancer centre. The first patients should be treated in 2022.

Tectonic Gold (TTAU) has been promoted to the Apex segment of the AQSE Growth Market.

Eastinco Mining (EM.P) has appointed Novum Securities as its corporate adviser.

AIM

A higher interim profit contribution from fuels partly offset lower contributions from the rest of the NWF (NWF) businesses. Group revenues fell from £348.9m to £309.4m, while underlying pre-tax profit declined from £3m to £2.5m. The main decline was in food distribution where volatile demand hampered profitability. The cold weather will boost demand for heating oil in the second half.

Document management services provider IDOX (IDOX) improved revenues from £65.5m to £68m and pre-tax profit from £7.7m to £10.5m. There is further potential to improve margins. The order book at the end of October was £15.9m. Having sorted out the business, management is considering returning to the acquisition trail.

Mattioli Woods (MTW) is paying up to £2.34m for wealth management adviser Montagu. There are £80m of assets under advice.

STM Group (STM) expects to report a £2m pre-tax profit on revenues of £24m in 2020. There was net cash of £15.5m. Therese Neish is stepping down as finance director.

BlueRock Diamonds (LON: BRD) has revealed a significantly increased resource at the Kareevlei diamond mine in South Africa. There was a 49% increase in resource to 10.4 million net tonnes and a 53% increase in net carats to 516,200. The overall grade has edged up to 5 carats per tonne. There was 19% of the resource upgraded to indicated resources. BlueRock plans to mine one million tonnes per annum.

Strong first half trading at parcel and freight delivery company DX (DX.) has prompted finnCap to increase its forecast pre-tax profit for the year to June 2021 by £2m to £8.7m. The business continues to recover with profitability building up in the freight division.

Open Orphan (ORPH) has opened a new challenge study quarantine facility across the road from its existing centre in east London, which is already booked up for this year. This adds a further 19 beds.

Compliance and energy saving services provider Sureserve (SUR) has doubled its dividend to 1p a share. Less traffic on the road during the original lockdown helped to improve efficiency and margins. Shore has increased its 2020-21 pre-tax profit forecast by 16% from £9.4m to £11.9m.

Lexington Gold (LEX) has received environmental approvals for drilling at the JKL project in the US. Drilling should commence later in February. Pure Ice Ltd has increased its stake from 14.3% to 15.1%.

Advanced surface coatings provider Hardide (HDD) has raised £790,000 at 30.9p a share and secured a CBILS loan of £250,000. This will boost the cash position while the company waits for delayed work to come through.

Seeing Machines (SEE) says interim revenues will improve by 15% to A$18.1m. The driver safety systems developer’s annualised recurring revenues are A$15.5m.

Real-time software provider Checkit (CKT) has acquired its US distributor Tutela Monitoring Systems for £850,000.

Lok’nStore (LOK) acquired its Chichester self-storage site has been acquired for £4.2m, with the cash outflow offset by the £1.5m disposal of the Wolverhampton freehold and £1.7m sale of the vacant Southampton site – around £300,000 lower than book value. Contracts have been exchanged for a new site in Staines. Self-storage has proved to be resilient during Covid-19 lockdowns. Occupancy rates are rising, and prices have been stable at Lok’nStore.

Filtronic (FTC) made a small first half loss but the outlook for the full year is better. New defence contracts and increasing 5G-related demand will help the second half and the defence orders are at higher margins. Full year revenues are set to fall but pre-tax profit could treble to £300,000. Capex requirements are low so the business should be cash generative.

Bacanora Lithium (BCN) has raised £48.1m from a placing and retail offer at 45p a share. Ganfeng has also subscribed for £24m worth of shares. This will finance the development of the Sonora lithium project. It will pay for the 50% share of the cost of bringing stage one into production.

Evgen Pharma (EVG) has launched a placing and open offer to raise up to £11m at 8p a share. This will fund preclinical work on metastatic breast cancer and two other potential treatments, including glioma where there could be a clinical trial. The cash should last until the middle of 2023.

MAIN MARKET

Thalassa Holdings (THAL) is making a £2.5m investment in London Medical Laboratory. Thalassa will lend the company £2.5m to finance the opening of a phlebotomy clinic and increase capacity at existing facilities. The loan would be converted into shares if London Medical Laboratory floats on AIM. Thalassa also has warrants to subscribe for an 8% stake in the fully diluted share capital.

French Connection (FCCN) says Spotlight Brands and Go Global Retail are potential bidders for the clothing retailer.

Personal products supplier InnovaDerma (IDP) has rebuffed an all-share offer from Creighton (CRL) although the potential bidder is still interested in making an offer and has sent a letter to InnovaDerma. This suggests an offer of two share for every three InnovaDerma shares, which is equivalent to around 44p a share.

BATM Advanced Communications (BVC) says full year revenues were at least $180m, which is 45% ahead of the previous year. The diagnostics business is the main impetus behind the growth.

Argo Blockchain (ARB) has taken a 25% stake in Pluto Digital Assets. This cost £1m at 3p a share and there are also warrants exercisable at 6p a share. Pluto is a crypto venture capital and technology company.

Andrew Hore

Andrew Hore – Quoted Micro 1 February 2021

AQUIS STOCK EXCHANGE

Property investment company Ace Liberty and Stone (ALSP) more than doubled its interim profit. In the six months to October 2020, rental income was 7% lower at £3.22m, while pre-tax profit was 121% higher at £674,000. The profit improvement was due to lower interest charges, offset by a £200,000 write down on assets held for sale. Rent collections have exceeded 80% each quarter. There were £131,000 of rent concessions written off in the period. NAV is £32.2m. Net debt was £49.6m at the end of October 2020. Loan to value is 53%. There is no interim dividend.

Sativa Wellness (SWEL) plans to achieve UK FSA Novel Foods accreditation by the end of March. This will enable the company to sell CBD products under the Goodbody brand and white labels. An online store will be launched. It will also be completing the integration and simplification of the businesses. Management believes the company can become cash generative from operating businesses this year. Chief executive Henry Lees-Buckley has stepped down from the holding company board.

NQ Minerals (NQMI) has resumed exploration at the Beaconsfield mine, which has 483,000 ounces of JORC compliant mineral resources.

Gunsynd (GUN) increased its stake in Rincon Resources to 17.3%. The company’s employee benefit trust is subscribing for 15 million shares at par and that will raise £12,750. That equates to a 3.7% stake.

World High Life (LIFE) raised £566,000 at 1p a share. First quarter revenues of Love Hemp were 13% ahead of the previous quarter.

Altona Energy (ANR) raised £523,000 at 6.5p a share, although £355,000 is still to be received. The cash will enable the company to complete due diligence on two rare earths mining projects in Africa and a move to the standard list. Two more possible acquisitions of rare earths assets are being negotiated.

Early Equity (EEQP) raised £243,000 at 0.5p a share.

Eastinco Mining and Exploration (EM.P) executive chairman has acquired 650,000 shares at 2.0308p each, which takes his stake to 6%. Arbuthnot Banking (ARBB) chairman and chief executive Sir Henry Angest bought 3,161 non-voting shares in the financial services provider. He owns 56.1% of the voting shares and 64.9% of the non-voting shares.

AIM

Insolvency-related litigation firm Manolete Partners (MANO) has warned that the pipeline of new cases has slowed because of the government’s Covid-19 support for businesses. Case enquiries have fallen sharply, and this is expected to remain the case until the end of March at least. Manolete has already completed twice as many cases as in the year to March 2020. Gross cash collected from cases was £9.3m up until the end of December and the company’s share is £4.8m compared with cash overheads of £3.2m.  Full year realised profit will be higher than expected but the increase in unrealised gains will not be as much as anticipated. There may be a small second half profit. Mithaq Capital took a 16.1% stake on the day of the trading statement. Three non-executives bought shares.

Ideagen (IDEA) increased its annual recurring revenues to £54.8m at the end of October 2020 with organic growth of 7%. The document management and compliance software supplier says that 83% of its revenues are recurring. It is on course to improve full year pre-tax profit from £14.3m to £17.2m.

Dekel Agri-Vision (DKL) has completed a £3.5m fundraising at 5p a share. Dekel plans to spend £1.1m in cash and shares acquiring a further 16.7% of the raw cashew nut processing project in Tiebissou, Cote d’Ivoire. That will take the stake to 70.7%. The rest of the cash will fund the ongoing business.

Cloud-based PCI-compliant payment services provider PCI-Pal (PCIP) increased interim revenues by 56% to £3.2m. Total annual contract value has risen to £8.3m. Net cash was £2.1m at the end of 2020.

Beximco Pharma (BXP) increased interim revenues from £112.6m to £125.8m. Export sales were flat. Pre-tax profit increased from £15.5m to £19.4m. Beximco has received the first consignment of five million doses of the Oxford/ AstraZeneca Covid-19 vaccine.

CIP Merchant Capital (CIP) has rejected a potential 50p a share cash bid by Corporation Financière Européenne S.A. That compares with the last quoted NAV of 78.05p a share.

MAIN MARKET

Publisher Bloomsbury Publishing (BMY) continued to trade strongly with revenues ahead of expectations. Investec has upgraded forecast 2020-21 revenues by 4% and earnings per share by 19% to 14.1p a share, which is still down on last year. There should be net cash of £50m by the end of February 2021.

IT firm Triad Group (TRD) says that results in the second half will be well ahead of the same period last year.

Associated British Engineering (ASBE) has still not published its accounts for the year to September 2020. Management is considering opportunities that will help to get the share trading suspension lifted.

Andrew Hore

Andrew Hore – Quoted Micro 25 January 2021

AQUIS STOCK EXCHANGE

Rutherford Health (RUTH) has signed contracts with the NHS that underpin a significant proportion of its fixed costs. More cash will be required in order to take advantage of the potential for the cancer care clinics. The cash will be needed in the next few months and could be raised at the same time as moving to AIM. Capacity of the Cardiff site could be fully utilised in 2021 and patients have been booked in at three other sites.

Broadband services provider Rural Broadband Solutions (RBBS) has grown its number of connections to 2,500 by the start of January and is signing up 25 a month. Digital marketing is being increased to attract clients that have access to the Rural Gigabit voucher funding scheme. There is interest from 300 households so the company can apply for £1m of government funding. The target is 5,000 monthly paying customers by October 2023.

S-Ventures (SVEN) has acquired 75.1% of We Love Purely Ltd by issuing 1.53 million shares at 9p a share, which is equivalent to £137,600 and paying off a loan of £30,000. We Love Purely is a snacks supplier and it sells Purely plantain chips. Under new ownership the product range will be expanded. Two S-Ventures directors held shares in the acquired company.

Investment company Gledhow Investments (GDH) raised £1.69m from investment disposals in the year to September 2020. That generated a profit of £508,000 after admin expenses. NAV increased from £884,000 to £1.3m. That includes £382,000 of cash compared with a market capitalisation of £539,000.

Coinsilium Group Ltd (COIN) says that the value of its crypto currency position has increased by two-fifths. On 21 January, there was cash of $1.5m, which is mainly crypto currencies. There are also $164,000 of RIF tokens that will vest over 22 months.

Gunsynd (GUN) has converted part of its loan to Rogue Baron at 3.97p a share and that gives it a 19.7% stake in the drinks company. Once Rogue Baron joins Aquis Stock Exchange the rest of the loan stock will be converted. Warrants have been exercised that raised £200,000 for Gunsynd.

Engineer Vulcan Industries (VULC) says third quarter trading was in line with expectations. Third quarter revenues were 14% higher the second quarter at £1.6m. Order books are strong. The proposed acquisition of E Lowe will not happen.

Capital for Colleagues (CFCP) has maintained its NAV at 52.75p a share at the end of November 2020. There are 16 investments in the portfolio.

NQ Minerals (NQMI) has filed a draft prospectus for its move to the standard list.

Dozens Savings has issued just over £1m of retail bonds and demand is outstripping supply.

AIM

Business restructuring company Begbies Traynor (LSE: BEG) has acquired rival CVR Global for up to £20.8m, which is its largest acquisition. CVR’s annual profit was £1.2m and there are potential cost savings of £750,000 a year.

Beximco Pharmaceuticals (BXP) is acquiring Sanofi Bangladesh for £35.5m. The deal is still subject to regulatory approval. This will broaden the product range and helps the group move into new sectors. It will also add more manufacturing capacity. The deal should be earnings enhancing. Sanofi made a pre-tax profit of £4.3m in 2019.

Ground engineering contractor Van Elle (VANL) made a loss in the first half of 2020-21 and trading remains mixed. Interim revenues fell by 21% due to the original lockdown and delayed rail work, but there should be a recovery in the second half. Cost reductions are coming through and helping to stem the loss. This puts Van Elle in a stronger position for the next financial year. Improving utilisation of equipment will help the company return to profit and start paying dividends again.

Acoustic materials supplier Autins (AUTG) would have reported halved second-hand revenues without the contribution from PPE. Full year revenues fell from £26.9m to £21.5m as one major automotive customer was hit by production problems. The loss increased from £1.54m to £1.76m. The high depreciation charge means that £1.48m of cash was generated from operations during the year. The Neptune product is gaining new contracts, particularly for electric vehicles.

Flexible printed circuit technology developer Trackwise Designs (TWD) disappointed the market with its trading statement. Growth in revenues has been slower than expected due to short-term problems, but finnCap has maintained its 2021 forecast, which predicts a rise in revenues from £6.2m to £14.2m. That would be enough to make the company profitable.

Alumasc (LSE: ALU) traded ahead of expectations in the six months to December 2020 and this has led to a large upgrade in the full year pre-tax profit forecast to £8.9m. There has been a bounce back in building and construction activity.

Trans-Siberian Gold (TSG) produced 15,217 ounces of gold at the Asacha mine in the fourth quarter, taking the total for the year to 45,066 ounces. Annual revenues were $81m. Production has stopped at Vein 25 because of an accident that killed two people. Mining in the main zone continues.

CCTV equipment supplier UniVision Engineering Ltd (UVEL) has signed a supplementary agreement with MTR Corp in Hong Kong for an additional £1.53m of work.

Jade Road Investments (JADE) is the new name for Adamas Finance Asia.

MAIN MARKET

LED lighting and wiring accessories supplier Luceco (LUCE) traded at the top of expectations in 2020, helped by a strong second half. Pre-tax profit will be around £29m, up from £15.8m in 2019. Cash generation is strong and net debt has declined to £18.3m.

Castillo Copper (CCZ) is considering selling its Broken Hill Alliance (BHA) project. This will enable the company to focus on the Mt Oxide project in Queensland, where there have been positive drilling results. Plans are being made to accelerate the development of this project. There should be more news about the other assays from the drilling and there will be modelling of a JORC resource. It makes sense to focus on this asset. BHA has is highly prospective for silver, zinc and lead in the west zone and iron oxide copper gold in the east zone. There should be interest from companies operating in the region. BHA could be sold or spun off into a quoted vehicle.

Personal care products supplier InnovaDerma (IDP) is raising £4m from a placing with up to £500,000 more to come from an open offer. This cash will finance investment in ecommerce and improve the balance sheet. The business continues to lose money. It could be profitable in 2021-22.

Argo Blockchain (ARB) has raised £22.4m at 80p a share and the cash will be invested in more crypto currency mining equipment. This will be installed between February and June. Capacity will be increased by nearly three-fifths.

Strong footwear sales helped Zotefoams (ZTF) to achieve slightly higher revenues in 2020 with pre-tax profit at the top end of expectations.

Flavour ingredients supplier Treatt (TET) continues to perform strongly in the first four months of the financial year. Drinks volumes have increased despite Covid-19 restrictions and this has helped Treatt. Forecasts have been raised with the 2020-21 pre-tax profit figure increased from £15.2m to £18.2m.

Tiziana Life Sciences (TILS) has switched from AIM to the Main Market.

Pensana Rare Earths (PRE) will drop the ASX listing on 24 February.

Andrew Hore

Andrew Hore – Quoted Micro 18 January 2021

AQUIS STOCK EXCHANGE

British Honey (BHC) generated revenues of £1.5m in the nine months to December 2020 with more sales online. There was £2.4m in the bank.

Rutherford Health (RUTH) has agreed to provide cancer treatment to NHS Trusts and clinical commissioning groups in England. The initial agreement is for two years.

A subsidiary of Noble Group has sent a letter of intent to Eastinco Mining and Exploration (EM.P) saying it wasn’t to purchase a significant portion of tantalum and tine production from Musasa in Rwanda. There will be immediate payment on agreement of the grade. There has been a further cash injection of £150,000.

Tectonic Gold (TTAU) has discovered further gold mineralisation at Specimen Hill in Queensland. There is a 100% success rate with holes drilled. A drilling programme has started at Mt Cassidy and once completed drilling will recommence at Specimen Hill at the sites that are prospective for copper.

NQ Minerals (NQMI) says that the Hellyer mine in Australia produced 38,319 tonnes of lead concentrate, up 53%, and 19,019 tonnes of zinc concentrate, up 22%, in 2020. There was 5,452 ounces of gold and 1.1 million ounces of silver produced. Gross revenues were A$63.3m and net income was A$22.7m.

Preliminary sampling at one of the Cameroon licences owned by BWA Group (BWAP) has identified mineralisation. The Dehane project has elevated titanium, zircon and aluminium multi-element associations. More cash is required to fund further exploration.

Gunsynd (GUN) says that Peterhouse has been appointed as corporate adviser to Rogue Baron ahead of a proposed flotation on Aquis in the first quarter. Rogue Baron is a spirits company and Gunsynd has a £500,000 convertible repayable at the end of March. The Gunsynd NAV increased from £2.36m to £2.47m at the end of July 2020. There was £838,000 in the bank.

Vulcan Industries (VULC) has raised £100,000 at 4.5p a share. SulNOx Group (SNOX) has raised £50,100 at 41.75p a share. Further cash will be required. Altona Energy (ANR) has raised a further £42,000 at 6.5p a share. MiLOC Group (ML.P) has raised £237,000 at 28.5p a share and started litigation against a distributor.

Walls and Futures REIT (WAFR) boos Joe McTaggart has bought 30,409 shares at 49p each.

AIM

Toilet tissue manufacturer Accrol (ACRL) reported strong interims even before a contribution from the recently acquired LTC. In the six months to October 2020, revenues slipped from £64.5m to £62.3m but that reflects panic buying in the last two months of the previous year that reduced this year’s figure. A contribution from LTC should increase full year revenues from £135m to £154m and pre-tax profit could nearly double to £9.2m. Accrol intends to pay a final dividend of 0.5p a share.

Online fashion retailer Sosandar (SOS) reported a 6% increase in revenues to December 2020, following a £1.6m reduction in marketing spend – mainly in December. This includes growing sales via John Lewis and Next. The loss was more than halved. Net cash was £3.9m at the end of 2020.

Kromek (KMK) reported a 14% decline in interim revenues to £4.58m, which was a resilient performance considering the disruption in the period. Kromek has moved into a net debt position but management is confident that it has enough funds for its requirements. The second half should be stronger. The long-term outlook for MRI, imaging and radiation detection products remains positive.

Battery technology developer Ilika (IKA) is on course for Stereax battery production to be scaled up by the beginning of 2022 and more significant revenues will flow through from then on. The total investment is £4m. The pilot line is running at full capacity so there is unlikely to be growth in short-term revenues. There is also the longer-term potential for Goliath batteries for electric vehicles. There should be £9m in the bank at the end of April 2021.

Voucher products supplier Appreciate (APP) had a strong third quarter and free cash reached £33.5m. The focus on digital products is paying off.

Law firm Gateley (GTLY) grew earnings by 7% in the first half, but full year earnings are expected to decline from 12.5p a share to 9.1p a share. There could be scope for an upgrade if utilisation levels remain high.

Ariana Resources (AAU) says that the 50%-owned Kiziltepe mine produced 18,645 ounces of gold in 2020. The processing plant capacity is being quadrupled.

Filtronic (FTC) has won a contract with more than £1m with a UK defence customer. Filtronic will design and supply battlefield communications hardware.

In 2020, Dekel Agri-Vision (DKL) increased palm oil production by 24% to 4,824MT and the average price obtained was ahead by a similar percentage. The price has started 2021 at a much higher level and even if the price does not stay as high Dekel should be able to at least move nearer to profit in 2021.

Franchise Brands (FRAN) will report 2020 figures ahead of consensus. The business has been strongly cash generative and the consumer-facing franchises did better in the second half. Metro Rod was classed as an essential service and trading recovered after an initial slump. Allenby forecasts 2020 earnings of 4.3p a share and this could improve to 4.8p a share in 2021.

Environmental and life sciences company Deepverge (DVRG) generated revenues of £4.4m in 2020 before any contribution from the recently acquired Modern Water. This year’s revenues should more than double, although the business should still lose money. There are large projects that are being bid for that could contribute to this year.

SourceBio International (SBI) has signed a deal with a high street retailer to provide lab testing services. This will start with a limited number of stores and could then be broadened. Demand for Covid testing is likely to continue to be high for many months.

MAIN MARKET

BATM Advanced Communication (BVC) has secured an option deal to sell its NGSoft communications technology services business to Aztek Technologies for $33m in cash. This is around ten times operating profit. The cash can be reinvested into the other activities.

Telecoms business Toople (TOOP) increased revenues from £2.45m to £3.44m and gross profit from £479,000 to £1.1m in the year to September 2020. The purchase of DMSL helped to grow revenues. Admin expenses were slightly higher at £2.44m. The underlying pre-tax loss edged up from £1.24m to £1.31m. That excludes a £1.1m provision for bad debts and restructuring costs. Directors pay increased from £278,000 to £312,239 last year. Net debt was nearly £1m at the end of September 2020. Debt in the form of a loan note is repayable at the end of 2022. The cash outflow from operating activities reduced from £2m to £1.6m.

InnovaDerma (IDP) reported a one-fifth decline in interim revenues. The personal care products supplier was hit by the closure of high street shops in the UK. International sales improved. The new chief executive is still assessing the business and will report plans and impairment charges in the coming weeks. A non-executive director is loaning the company £500,000 until 13 July.

Andrew Hore

Andrew Hore – Quoted Micro 11 January 2021

AQUIS STOCK EXCHANGE

Standard list shell Baskerville Capital (BASK) plans to switch its quotation to the Access segment of the Aquis Stock Exchange. This move will happen at the time of the reverse takeover of Oberon Investments, the owner of fund manager MD Barnard. The transfer to the Access segment is expected to happen on 5 February, although this depends on completion of the deal.

Walls and Futures REIT (WAFR) increased its NAV to £3.96m at the end of September 2020. The Southfields property has been sold for £660,000, which was a small discount to the previous book value. The remaining residential property will be sold in the next few months. The company will then concentrate on specialist supported housing.

KR1 (KR1) has sold its remaining holding of FunFair tokens for an average price of 2.0207 cents each. That raised $1.28m, which is more than treble the cost.

Wishbone Gold (WSBN) expects the analysis of the aerial magnetic survey of the Red Setter project in Western Australia will be available before the end of the first quarter of 2021.

All Star Minerals (ASMO) continues to review opportunities in the mining sector in Africa. The deal is likely to be funded by a share issue, but more cash will be required.

Arbuthnot Banking (ARBB) non-executive director Nigel boardman has increased his shareholding from 5,020 shares to 11,348 shares. Shepherd Neame (SHEP) director JB Neame has sold 4,000 shares at 690p each and bought back 2,000 shares at 691.5p for an ISA.

Vulcan Industries (VULC) has raised £150,000 in share issues at 5p a share and 5.5p a share. TruSpine Technologies (TSP) is still waiting to receive £250,000 from Evrensel Capital Partners.

Peel Hunt has been approved as an AQSE corporate adviser.

AIM

Capital equipment manufacturer Mpac (MPAC) did better than expected last year although pre-tax profit is still likely to decline from £7.5m to £6.2m. net cash is £5m following the payment of £10m for Switchback last autumn. The order book is worth more than £55m, compared to 2020 revenues of £83m. The focus on healthcare and pharma has helped Mpac.

Judges Scientific (JDG) had a strong second half in 2020 and this has led WH Ireland to increase its 2020 pre-tax profit forecast from £12.1m to £13.5m. The 2021 figure has been maintained at £15.1m. Full year results will be announced on 23 March.

Fashion retailer Joules (JOUL) offset weak high street sales prior to Christmas with strong growth in online sales. Even so, continued uncertainty means that Peel Hunt has reduced its 2020-21 pre-tax profit forecast from £5.4m to £3.5m. Net cash is £13m.

Motor dealer Cambria Automobiles (CAMB) says trading the three months to November 2020 was ahead of the same period last year even though the market remains uncertain.

Wealth management firm Mattioli Woods (MTW) had more than £10bn of client assets by the end of November 2020. Gross discretionary assets under management are £2.9bn. Management is still seeking acquisition opportunities and there is £18m of cash in the bank.

Creo Medical (CREO) has received 510(k) clearance from the FDA for its MicroBlate soft tissue ablation devices. This broadens the range of products with approvals.

AssetCo (ASTO) has acquired a 2.9% stake in investment manager River and Mercantile at 186p a share. This cost £4.7m. There is still around £26m in cash available since the payment from Grant Thornton and after the tender offer to shareholders.

Avingtrans (AVG) is merging its two medical equipment businesses with Australia-based MRI technology developer Magnetica and it will own 59% of the enlarged business after also injecting A$600,000. A further £3.2m investment could increase the stake to 61.2%. The combined business is loss-making but the increased scale will help it to move towards profitability.

Telit Communications (TCM) has ended bid discussions with u-blox, although the potential bidder is still interested in making an offer. An all-share bid of 250p a share was indicated.

Tekmar (TGP) has secured a contract to design and manufacture subsea scour protection for a quay development project, which is worth more than £4m. That will be recognised in this financial year.

IntegraFin has decided not to bid for Nucleus Financial Group (NUC), which increased assets under administration by 8% to £17.4bn in the three months to December 2020. Inflows of funds increased, and outflows fell.

Eqtec (EQT) has signed a memorandum of understanding with Greece-based Nobilis Pro Energy, which will enable Eqtec to be involved in its partner’s pipeline of gasification projects opportunities in Thessalia and central Greece. A joint venture will be formalised.

MAIN MARKET

One Heritage Group (OHG) has acquired a site on Bank Street, Sheffield for £880,000. The final development cost is expected to be £2.9m and gross development value should be £3.6m. The residential developer says that its Burnley development will not be completed until later in the first quarter. Construction of the Waterloo Place development in Salford should commence in the second quarter.

Argo Blockchain (ARB) mined 96 Bitcoin during December. The increase in the bitcoin price means that these are valued at £1.63m. Argo holds 209 Bitcoin. The sharp rise in the share price has led to the exercising of warrants and options. This has raised £1.63m.

Tirupati Graphite (TGR) is on track to commission the Vatomina graphite project in the second quarter and build production to 6,000tpa. Tirupati raised £6m at 45p a share when it floated at the end of last year and the share price has risen to 83p.

Rainbow Rare Earths (RBW) has completed its drilling programme at the Phalaborwa rare earths project under budget and the results are expected before the end of the first quarter.

Pembridge Resources (PERE) has raised £570,000 at 4p each and this should be enough cash to take the company into next year.

Andrew Hore

Andrew Hore – Quoted Micro 4 January 2021

AQUIS STOCK EXCHANGE

BWA (BWAP) has been unable to sell Kings of The North Corp (KOTN) back to St Georges Eco-Mining and there are problems with the title to claims held by KOTN. It appears that two licences had not been renewed by St Georges. Three more licence areas are being reviewed. St Georges has claimed C$200,000 for work it is claimed that has not been done. There is already a claim for cash from a KOTN director and there could be further claims against directors of KOTN and St Georges.

Gunsynd (GUN) says trading in investee company Empress Royalty commenced on the TSX Venture Exchange. Gunsynd invested £146,000 in October and owns 1.4% of Empress.

MiLOC Group Ltd (ML.P) has terminated its endorsement agreement with BrandKing Worldwide and First Strong Workshop for AKFS+ haircare products and also ended the commission agreement with CN Workshop. In the recent interims, inventories increased in part due to AKFS+ haircare products.

Vulcan Industries (VULC) generated revenues of £5.74m and lost £2.96m in the period between 24 October 2018 and March 2020. This was before Vulcan raised £2.2m. The subsequent quarter trading was poor, but the second quarter was ahead of expectations. Further acquisitions have been identified.

TruSpine Technologies (TSP) lost £448,000 in the six months to September 2020. There was £567,000 in the bank.

Evrima (EVA) has sold a commercial property in Leeds for £200,000, which after costs is slightly below its purchase price in 2017. The cash will be reinvested in Kalahari Key Mineral Exploration.

AIM

Small business finance provider Vector Capital (VCAP) joined AIM on 29 December. It raised £3.1m at 38p a share and ended the week at 39.5p. In the six months to June 2020, revenues increased from £1.59m to £2.13m, while pre-tax profit jumped from £954,000 to £1.26m, even though new loans were not issued in the second quarter. The business has been profitable for the past four years. The loan book was worth £34.7m at the end of September 2020. The Jain family owns 80.85% of Vector Capital. Prior to flotation the original shareholders received a total dividend of £400,000.

Xpediator (XPD) has sold its online shopping logistics business in order to concentrate on the core freight business. EshopWedrop Holdings was losing money and the total consideration is £300,000 paid in equal instalments over three years. The book value was £700,000. Xpediator will achieve annual cost savings of £350,000 following the disposal.

MJ Hudson (MJH) is acquiring fund performance analytics business PERACS and this will widen the services it can provide to the asset management sector. The initial payment is 586,016 shares and there is deferred consideration in cash and shares over a three-year period.

Shareholders voted against the reappointment of Ian Visagie as a director of Goldplat (GDP).

Cyber security services provider Shearwater Group (SWG) says that October and November revenues were 39% ahead of the same period last year and the momentum continued into December.

UFG Asset Management has a total shareholding in Trans-Siberian Gold (TSG) of 54.9%.

DBAY Advisers has sold more of its stake in Wynnstay Group (WYN) and it has fallen to 3.7%.

MAIN MARKET

National World (NWOR) is paying £10.2m for the former Johnstone Press group of newspapers. No debt is being taken on. JPI Media Publishing is the third largest local news group in the UK and includes titles, such as Yorkshire Post, Portsmouth News and the Scotsman. JPI is estimated to have generated revenues of £85m and EBITDA of £6m in the past year. National World will use the assets to build a local online news publishing model. There is an initial cash payment of £5.2m with two further instalments. National World is issuing £8.425m of 10% loan notes and plans to issue more. Trading in the shares remains suspended until a prospectus is published and it may not resume until April.

Oil-focused shell Wildcat Petroleum (WCAT) joined the standard list on 30 December. It raised £600,000 at 0.1p a share and was capitalised at £2.4m.

Argo Blockchain (ARB) is investing $100,000 in hashrate management platform Luxor Technologies. The technology can help cryptocurrency miners to increase their returns.

Standard list shell Rockpool Acquisitions (ROC) is still talking to Greenview Gas in its attempt to find a Northern Ireland-based acquisition. Greenview has downgraded its 2020-21 pre-tax profit expectation from £1.4m to £1m. Rockpool had loaned more than £1m, including interest, to Greenview. The initial loan agreement was three years ago. In November, this was repaid out of new borrowings.

Marwyn Acquisition Co I Ltd (MAC1), one of three shells floated by Marwyn during December, has appointed Vin Murria as chairman. She has built up two software companies on AIM and then sold them. The appointment means that the focus of this shell will be the software sector, with the first acquisition likely to be worth more than £100m. Last month, Vin Murria joined the board of AIM shell Summerway Capital (SWC) and it is also seeking software and digital acquisitions, but it is likely to be assessing smaller acquisitions.

Andrew Hore

Andrew Hore – Quoted Micro 28 December 2020

AQUIS STOCK EXCHANGE

TruSpine Technologies (TSP) has delayed the application for FDA approval of its Cervi-LOK spinal device for up to three months. This is due to a lack of testing time because of Covid-19. Computer modelling has enabled the company to make minor modifications, which widens the market for the device. A £250,000 cash injection is expected by 5 January.

Daniel Thwaites (THW) reopened its pubs in early July and up until the end of September sales were running at three-quarters of the previous year. Due to the lockdown in the first three months of the period, the interim revenues were 59% lower at £21.8m and the business moved into loss. Net debt was £66.6m at the end of September 2020. There are total borrowing facilities of £90m.

KR1 (KR1) has made two more investments. There is a $200,000 investment in Tidal Finance in return for 222,222,222.22 Tidal tokens. A further $200,000 is invested in HydraDX and the number of tokens has not been determined as yet.

Coinsilium Group Ltd (COIN) has more than £1m of cryptocurrency and tokens with a further $127,000 of RIF tokens due to vest over 23 months.

Tectonic Gold (TTAU) has drilled 11 holes at the Specimen Hill prospect in Queensland. Gold/ copper/silver mineralisation was intersected in the first three holes. The other eight holes have similar characteristics.

Belvedere Leisure (BELV) has entered into an exclusivity agreement to purchase the 160 acre site known as Barnsoul Park in Dumfries and Galloway for £1.4m. The deal is subject to due diligence and 12 weeks after completion there are plans to install at least 28 lodges as part of an upgrade of the park. Bookings will be taken for June 2021 onwards if the deal goes ahead. In two years, there should be more than 150 lodges.

Upper Thames Holdings (UPPT) has non-binding heads of agreement for the purchase of a 10% stake in Sweden-based Ridercam, which supplies mobile camera systems for theme park rides.

Gunsynd (GUN) says that Angold Resources has completed the acquisition of Federal Gold Corp and trading in Angold shares will begin on the TSX Venture Exchange on 31 December. Gunsynd owns 712,500 shares.

Newbury Racecourse (NYR) has appointed Allenby Capital as its corporate adviser.

AIM

Applegreen (APGN) is recommending a €5.75 a share bid from the company’s founders, which values the company at €718.1m. The roadside convenience retailer floated on AIM in 2015 at 277p a share. Applegreen has 559 sites.

Coral Products (CRU) its core mouldings business at Haydock and Interpack to One51 ES Plastics for £7.9m. That is nearly as much as the current market capitalisation, while pro forma net cash is expected to be £6.6m. One51 acquired Straight in 2014. Coral will still own the Haydock freehold and the annual rent will be £300,000. The deal required shareholder approval because it is deemed to constitute a change of business. The remaining subsidiaries are Tatra Rotalac, which produces plastic extrusions and mouldings, and Global One Pak, which supplies lotion pumps and trigger sprays. They generated full year revenues of £5.4m and are profitable prior to central costs. Pro forma NAV is £13.6m.

Equatorial Palm Oil (PAL) has agreed to acquire Capital Metals for £15.8m. The company is raising £2.09m at 12p a share (following a 20-for-one consolidation). Capital has an interest in the Eastern Minerals project in Sri Lanka. There is a JORC resource of 17.2Mt with an average grade of 17.6% total heavy minerals. The Environmental Impact Assessment should be published soon. First production could be in 2022.

Hargreaves Services (HSP) has sold its remaining speciality coal stocks to its German joint venture company for £24m. Hargreaves will market the coal on the joint venture’s behalf for commission. There will be a £3m goodwill write-off, but the profit impact should be neutral.

Duke Royalty Ltd (DUKE) has exited its investment in IT firm Welltel (Ireland) for £15.4m. This represents an IRR of 27%. There have been follow-on investments in two other royalty companies. Duke has invested £3.1m in recreational vehicle parts wholesaler MRDB, which will use the cash to help buy vendor loan notes for £4.9m. Duke will own 30% of MRDB. Monthly payments will be £147,000. A further £1m has been invested in Irish insurance brokerage company BHPC.

IXICO (IXI) has secured a £3.4m contract to provide data analytics services for rare neurodegenerative condition, SCA3 (Machado-Joseph disease). This will last more than four years.

Driver Group (DRV) chairman Steven Norris has bought 46,000 shares at 53.5p each. He owns 293,062 shares.

Sutton Harbour (SUH) has purchased a 1.5 acre site to the east of Sutton Harbour. Two residential developments totalling 200 units are planned for the site. A planning application has been submitted for another residential and commercial development at Sugar Quay. The company has also gained permission for event pontoons in the harbour.

Microsaic Systems (MSYS) has not received a definitive offer and the board has decided to end bid talks. It has also failed to secure the cash it requires and KRE Corporate Recovery has been appointed to advise on alternatives, such as selling assets. There is a possibility that an administrator may be appointed.

TMT Investments (TMT) received $40.9m for its stake in CRM company Pipedrive Inc and this increases its cash to $42m. It will repay the shareholder loan of $3m.

MAIN MARKET

Residential developer One Heritage Group (OHG) has raised £930,000 at 10p a share when it joined the standard list. This valued the company at £3m. The shares ended the week at 11p. The initial focus is north west England and One Heritage redevelops and refurbishes buildings and has a lettings operation. The company has a marketing network in Hong Kong and also sells developments to institutional investors.

Standard list shell Pineapple Power Corporation (PNPL) raised £1.3m at 3p a share. The focus is renewable and clean energy. The share price increased to 3.25p.

Construction and water infrastructure company nmcn (NMCN) says that its full year loss will be £16.5m. That includes £5.3m of prior year adjustments. There should be a small cash outflow. The one bright area is telecoms, where capital investment by clients increased. The order book is valued at £200m. Shore Capital has been appointed broker.

Andrew Hore

Andrew Hore – Quoted Micro 21 December 2020

AQUIS STOCK EXCHANGE

Employee ownership investor and adviser Capital for Colleagues (CFCP) increased its NAV by 21% to 52.69p a share in the year to August 2020. There were realised gains of £307,000 and a £1.35m increase in the fair value of investments. There was cash of £388,000 at the end of August 2020. Management hope to pay a 2020-21 dividend of at least 1p a share. Cobrio Fund Partners has increased its stake from 4.58% to 7.55% and they were nearly five months late in announcing this.

Gunsynd (GUN) has made a £200,000 investment in Low 6, a sports betting platform. Low 6 partners with sports teams and plans to float in 2021. Gunsynd has invested a further A$800,000 in Rincon Resources at 20 cents a share as part of its ASX listing on 21 December.

A successful planning permission application for a Sutton development St Mark Homes (SMAP) has led to the announcement of an interim dividend of 3p a share. The ex-dividend date is 29 December. Approval has been gained for additional retail space, which could be let to a large retailer, at an existing development in Sutton plus a new building with 30 apartments. There are also new developments in Hanwell, Finchley and Muswell Hill.

KR1 (KR1) has made two new investments. There was $150,000 invested in 15 million Lido tokens and $200,000 in 797,043.48 Swarm tokens. KR1 has also generated a further 141,564.69 Polkadot tokens since August. These have been sold for $797,000. KR1 still owns 3.5 million Polkadot tokens.

Good Energy (GOOD) has announced three strategic partnerships for its mobility as a service offer. Mina Energy has technology to make home charging more effective. Home Energy Infrastructure can arrange funding for installing EV charging infrastructure. Select Car Leasing can lease the vehicles.

Sativa Wellness (SWEL) says the EU has concluded that CBD is not a drug within the meaning of the UN single convention on narcotic drugs 1961. It therefore qualifies as a food. The company is preparing a novel food dossier for the UK Food Standards Agency in parallel with the EU. The UN has voted to remove cannabis from Schedule IV, the category of the world’s most dangerous drugs, while in the US there has been a bill passed to decriminalise cannabis at the national level.

World High Life (LIFE) has secured a listing for Love Hemp with Boots.

SulNOx Group (SNOX) shareholders have signed an option agreement with Rigworld Group, which could purchase 20 million shares at 40p each up until 31 March. This includes the whole of Nistad Group’s 14.6% stake.

Shareholders in Black Sea Property (BSP) have voted against four resolutions at its AGM, although they did vote for four other resolutions including one to retain the Aquis quotation. The two resolutions relating to Alex Borrelli were withdrawn and he has resigned from the board. Trading in the shares has been suspended until a new non-executive director is appointed.

Imperial X (IMPP) has 450,000 shares in Canada-based Imperial Helium and has subscribed for C$110,000 convertible debentures, which will be converted at a 20% discount to the IPO price.

Vulcan Industries (VULC) has raised £365,000 at 5.5p a share.

AIM

DP Poland (DPP) has agreed the acquisition of rival Poland-based pizza restaurant group Dominium for £22.7m in shares and loan notes of €7.5m. DP Poland raised £3.5m at 8p a share, while 21.8 million of the consideration shares were sold at the same price. The combined group will be one of the top three pizza chains in Poland.

Radio frequency communications networks developer CyanConnode (CYAN) has managed its cash well and continues to grow revenues. In the six months to September 2020, revenues were £1.5m and the loss was £1.37m. In the two months since the period end, revenues have been around £1m. The order book in India is worth £19m, which is equivalent to one million units, and these orders could be deployed over the next two years. There are also orders in Thailand and Sweden.

Construction dispute and property services provider Driver Group (DRV) maintained its profit in the second half of the year to September 2020. Underlying pre-tax profit still declined from £3m to £2.5m on revenues 9% lower at £53.1m. The higher margin Diales expert witness business continues to grow. Net cash was £8.2m at the end of September 2020. The final dividend is 0.75p a share.

Codemasters (CDM) has withdrawn is recommendation of the Take-Two Interactive bid and switched its support to the Electronic Arts offer of 604p a share.

Two companies have decided not to make an offer for Telit Communications (TCM) and that leaves u-blox as the only potential bidder left.

K3 Capital (K3C) is trading strongly and finnCap has upgraded its 2020-21 earnings forecast from 11.4p a share to 11.9p a share. There have been cross-selling benefits from recent acquisitions. The acquisitions business has performed well and there is longer-term potential from the Quantuma insolvency business.

Carpets retailer United Carpets (UCG) has decided to leave AIM and it is launching a tender offer of 6.25p a share for up to 29 million shares.

Property services provider Fletcher King (FLK) fell into loss in the six months to October 2020. Revenues from asset management and fund management clients was steady, but other revenues were weak. There is £3.1m of cash in the bank.

NWF (NWF) says that the fuels division has traded positively, and it has recommenced the process of assessing acquisitions. The new food warehouse is fully utilised, but the volatile demand has hit profitability. Feed volumes were slightly lower than the year before.

Summerway Capital (SWC) is switching its investing policy to the software sector and Vin Murria, who has built up AIM-quoted software companies in the past, is joining the board.

Yourgene Health (YGEN) had a steady first half with Covid-19 testing revenues helping to offset lower demand for other products.

Kodal Minerals (KOD) is acquiring the Fatou gold project in southern Mali. There is a mineral resource of 350,000 ounces of gold and potential to increase the figure.

Touchstone Exploration (TXP) has secured a gas sales agreement covering all production from the Ortoire block in Trinidad.

Trinity Exploration (TRIN) has signed an agreement with the National Gas Company of Trinidad to develop new projects in the Caribbean. This includes renewable energy, stranded gas and a micro liquefied national gas business.

MAIN MARKET

BATM (BVM) is investing $3m in Ador Diagnostics as part of a $10m funding. This will be spent on further develop its technology. BATM has a 36.7% stake.

Contango Holdings (CGO) has a potential 1.8 million ounces gold resource at an average grade of 1g/t at the Garolo gold project in Mali. There is further gold at greater depths. The first gold production could be before the end of 2021.

Spinnaker Opportunities (SOP) has conditionally agreed an all-share acquisition of Kanabo Research and has advanced a further £100,000 to the medicinal cannabis company.

Kin and Carta (KCT) has sold healthcare communications business Hive for £13.8m. The business contributed pre-tax profit of £1.2m last year.

Andrew Hore

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