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Quoted Micro 20 September 2021

AQUIS STOCK EXCHANGE

Good Energy (GOOD) rejects an increased bid from rival renewable energy supplier Ecotricity. The increased offer is 400p, up from 340p, a share in cash. This values Good Energy at £69.9m and it will cost Ecotricity £53.3m to buy the shares it does not own. Good Energy moved back into profit in the first half of 2021. Pre-tax profit was £3.9m, excluding one-off gain from generation debt restructuring. Business customers have increased, and the smart meter roll out is accelerating. Net debt is £36.4m. Ecotricity is loss making and it will be taking on this debt as well as having to fund the cash for the takeover. An interim dividend of 0.75p a share is payable if the bid does not succeed.

Union Distillers founder Mark Gamble has requisitioned a general meeting at British Honey (BHC) to remove 78 years old chief executive Michael Williams. Mark Gamble owns 16.6% of British Honey and wants to be re-appointed to the board along with Richard Day and Brian Jones, who would be a new appointment. Richard Day was announced as chairman in August, but he resigned one month later. The backing of Octopus and Unicorn will be important to either side. Interim revenues trebled to £3m, helped by the Union Distillers acquisition. However, there was an increased loss of £1.3m. There was £1.8m in the bank at the end of June 2021. Full year revenues could reach £8m.

Newbury Racecourse (NYR) increased interim revenues by 72% and reduced its loss by more than three-quarters to £380,000. There were more race meetings but only two had paying attendance compared with three in the first half of 2020. Attendances more than halved to 4,400. Betting and media rights did generate income from the racedays. Paying attendance with unlimited crowds is allowed in the second half. The oncourse hotel remains closed, but the nursery has returned to profit. There should be enough cash to last the company until it receives the next payment from land sold to David Wilson Homes. Non-exec director Dominic Burke has bought 71,225 shares at 800.5p a share.

KR1 (KR1) has invested $350,000 in Minterest and it will receive an undisclosed number of MNT tokens.

Dispersion Holdings (DEFI) says that investee company DeFi Yield Technologies Inc is no longer reversing into DeFi Technologies Inc.

Apollon Formularies (APOL) has expanded its production facility in Jamaica, and this will help to generate revenues from processing cannabis produced by third parties. Medical cannabis company Ananda Developments (ANA) is making progress with its research facility.

The Polygon Global Partners bid for Watchstone Group (WTG) has lapsed.

Clean Invest Africa (CIA) has secured a £60,000 convertible loan from three directors. This is convertible into shares at 0.25p each. Director Guy Heald has bought 3,000 B shares in Adnams (ADB) at £92.86 each, taking his stake to 18.2%. Non-exec director Lord Nicholas Fairfax acquired 124,800 shares in SulNOx Group (SNOX) at 0.13p each. Chris Akers has increased his stake in Oberon Investments (OBE) from 3.58% to 4.12%.

Vulcan Industries (VULC) raised £195,000 at 1.6p a share.

AIM

Housebuilder Springfield Properties (SPR) increased pre-tax profit by 81% to £18.5m in the year to May 2021. The dividend is 5.75p a share, which was higher than expected. Sales of land helped to reduce net debt from £70.9m to £20.8m. The outlook is positive because of the undersupply of homes in Scotland. The Scottish government is keen for more affordable housing to be built and the deal with Sigma to build private rented homes has good prospects. Costs are increasing but so are house prices.

Scotch whisky supplier Artisanal Spirits Company (ART) released a strong maiden set of results following its flotation. Revenues grew by one-fifth to £7.9m, although the loss was increased. The easing of lockdown has helped sales in the company’s bars and UK members have started to increase in the second half. The JG Thomson blended malt whisky brand has been launched. Executive directors David Ridley and Andrew Dane bought shares at 84p each, which is below the flotation price.

Cyber security software supplier Kape Technologies (KAPE) is paying $936m for ExpressVPN, which has more than three million customers and generates revenues of $279.4m. Pro forma EBITDA is $74.8m. A placing and retail offer raised £258.3m at 337.5p a share. The rest of the purchase price will be financed by debt.

Credit hire and legal services firm Anexo (ANX) increased interim revenues by nearly one-third to £48.3m and underlying pre-tax profit improved from £6.3m to £8.9m. This is despite additional costs in the legal services business. Demand for credit hire vehicles is increasing.

Printed circuit technology developer and supplier Trackwise Designs (TWD) increased interim revenues by 71% to £4.1m, thanks to a full contribution from Stevenage Circuits. It remains loss making but should move into profit next year when the new factory is open and demand from the electric vehicle battery client builds up.

Freight forwarder and logistics company Xpediator (LSE: XPD) reported overall interim revenues 27% ahead at £126.6m, while underlying pre-tax profit was 74% higher at £3.6m, although the comparatives were weak. Net debt was £1.6m at the end of the period, but Xpediator should have net cash by the end of the year. The interim dividend is 0.5p a share.

Demand for Accoya and Tricoya wood continues to be strong and in the five months to August Accsys Technologies (AXS) increased its revenues by 31% to €40m. Accoya sales prices have increased, while inventories remain low as additional capacity is installed.

Mobile gaming content licensor Gaming Realms (GMR) grew licensing interim revenues by 73% to £5.8m and total revenues from £5.2m to £7.7m. There is further growth to come as online betting is opened u across the US and in Canada. Gaming Realms moved into profit in the first half of 2021 and that should grow rapidly over the coming years.

All Active Asset Management has ended bid talks with Audioboom (BOOM), which had a record August. The 2021 pre-tax profit forecast has been upgraded from £255,000 to £931,000.

Interim revenues increased by 83% at VR Education (VRE) to €1.25m and gross margins improved as a greater proportion of revenues came from virtual reality platform ENGAGE. HP is set to roll out ENGAGE, under the name of VUVE Sessions, in the software bundle for its laptops in China.

Diaceutics (DXRX) is rolling out its DXRX platform more quickly than expected. It was launched in October 2020 and the platform is already generating revenues. Diaceutics should move into profit in the second half.

Drug delivery technology developer Midatech (MTPH) has exited non-core operations and focused on the Q-Sphera platform and MTX110, based on the MidaSolve technology that liquifies insoluble oral therapies, a potential treatment for brain cancers. This potential treatment is phase II trial ready. There are also treatments being developed with partners and that is what generates revenues. There should be enough cash to last until 2023. There could be licensing potential for Q-Sphera based treatments.

Filta Group Holdings (FLTA) improved interim revenues by 17% to £9.7m and revenues are heading back to previous levels prior to Covid-19. The kitchen services provider returned to profit in the first half and may pay a full year dividend.

Eqtec (EQT) has secured a partnership with Kibo Energy (KIBO) for the 25MW Billingham gasification project. Kibo will pay £3m to acquire 54.54% of vehicle that owns the project. Eqtec will retain the maintenance contract when the plant is commissioned.

MAIN MARKET

Ross Group (RGP) has been one of the best performers in the FTSE Fledgling index. yet it is still not generating revenues, although the loss was reduced in the first half of 2021. Ross has invested in a business planning to produce Chitin and is seeking supply chain management opportunities.

Telecoms services provider Toople (TOOP) is experiencing strong order levels. New customers include two credit unions and solicitors.

Andrew Hore – Quoted Micro 13 September 2021

AQUIS STOCK EXCHANGE

VSA Capital Group (VSA) joined Aquis on 9 September and at the same time raised £253,000 at 21p a share. The share price has risen to 23.5p (23p/24p), which values the company at £4.57m. There have been five trades. VSA Capital is a broker and financial adviser. It also has stakes in cryptocurrency and blockchain businesses. It is an Aquis corporate adviser, and this will be a major focus of the business.

Ecotricity says that it has received acceptances equivalent to 1.9% of Good Energy (GOOD) to add to its existing holding of 25.1%.

Arbuthnot Banking (ARBB) has sold 200,000 shares in Secure Trust, raising £2.5m, and reduced its stake to 3.32%.

EPE Special Opportunities (ESO) increased its NAV by 24% to 542.3p a share in the six months to July 2021. Luceco (LUCE) is one of the main factors in that growth of NAV and 4.5 million shares were sold to raise £15m. Another investee company, Pharmacy2U, is moving into profit. At the end of the period, a majority stake in homewares company Rayware was acquired.

Igraine (KING), where Oscillate (MUSH) has a 24.6% stake, says that its investee company Excalibur Medicines has completed the ARCADIA phase 2 trial for AZD1656, a treatment for diabetic patients with Covid-19 (see Cizzle below). The trial covered 153 patients. The treatment has reduced mortality rates and it is safe.

Walls and Futures REIT (WAFR) lost £214,000 in the year to March 2021, while NAV fell 5% to 102p a share. The value of investment properties fell by 1%. Walls has secured lease terms and memorandums of understanding with new partners for provision of housing for autistic people. The new homes are being designed in pods and constructed off site. There is cash available for investment, but the company requires additional funds to complete all the potential new projects. The problem is that the share price is well below NAV.

SulNOx Group (SNOX) says that its direct sales operation has made sales of its diesel additive to 200 clients in just over one month. The products will be sold on the Amazon platform.

Non-fungible tokens (NFTs) investor NFT Investments (NFT) has made an initial investment of $700,000 in Blimp Technologies Inc. In this case it is in the company rather than NFTs. Blimp has developed a platform that rewards home buyers and sellers, as well as advisers, for contributing value to a token network started by the Home Network Foundation. The theory is that this should reduce delays and disappointments and make the process more transparent.

CBD products supplier Voyager Life (VOY) has secured two new stores in Dundee and Edinburgh following the opening of the St Andrews store. Rebranding is complete and new products are being launched. The company’s products are stocked in more than 70 other stores.

Vulcan Industries (VULC) says chief executive John Maxwell is stepping down due to ill health, although he remains on the board. Ian Tordoff becomes executive chairman. Kieran Vaughan has left the board.

Altona Rare Earths (ALR) has raised £1.25m at 14p a share, which was a premium to the market price.

AIM

Building products supplier Alumasc (ALU) increased full year revenues by 19% to £90.5m, while underlying pre-tax profit nearly trebled to £10.5m, helped by cost cuts and improving margins. Net debt was £900,000, while the pension deficit has reduced to £4.5m. The final dividend is 6.25p a share and the total dividend is 9.5p a share. Demand is strong but Alumasc is uncertain when the customer will take the products. That is because shortages of other building products, such as bricks, have held up developments.

Michelmersh Brick (MBH) continues to benefit from strong demand for bricks and reducing stocks and orders stretch into the fourth quarter. Interim revenues were 10% ahead at £29.9m and pre-tax profit jumped from £2m to £5m. Full year figures will be slightly better than previously expected. The interim dividend is being reintroduced.

Concrete levelling equipment supplier Somero Enterprises Inc (SOM) benefited from buoyant North American demand in the first half. Non-residential construction is buoyant in North America and orders are at a high level. In the six months to June 2021, revenues increased from $35.3m to $64.4m, which was much higher than the first half of 2019 prior to Covid-19. Pre-tax profit more than trebled from $7.5m to $23.5m. There was $16m of cash generated from operations. The interim dividend is 9 cents a share. Guidance has been upgraded.

Minds + Machines (MMX) has announced a tender offer of up to £58m at 9.6p a share – equivalent to estimated NAV following the disposal of the operating activities. That would mean that up to 604.1 million shares could be redeemed.

There was 11.6% growth in the Vector Capital (VCAP) loan book to £40.6m. The interim dividend is 0.95p. The main customers are residential property developers that need short-to-medium-term finance. There are additional funds available to further grow the loan book to £46m.

Dekel Agri-Vision (DKL) increased the fresh fruit bunches by one-fifth to 8,469Mt, compared to August the previous year. Crude palm oil production was 6% higher at 1,678Mt, but the amount sold was one-quarter ahead at 1,852Mt. The average crude palm oil price achieved was 76% higher at €947/tonne. Palm kernel production was also much higher.

Parsley Box (MEAL) is investing the proceeds of its recent flotation in developing products, including a range of chilled meals, and increasing marketing. This means that the loss is increasing, but the benefits will show through in the years to come. Interim revenues were £14m, up from £11.1m, and £11m of the latest revenues were from repeat customers. The loss increased from £1m to £5.42m. There is still £6.52m in the bank.

Embedded computer boards developer and manufacturer Concurrent Technologies (CNC) reported flat interim revenues of £9.3m. Lower overheads helped pre-tax profit improve from £1.22m to £1.59m.

MAIN MARKET

LED lighting and wiring accessories supplier Luceco (LUCE) has reiterated its full year guidance following its interims. Group revenues were 51% ahead at £108.2m, while pre-tax profit improved from £8.3m to £18.5m. The comparatives did reflect the initial period of Covid-19 but there is still strong underlying growth. There have been cost pressures, but investment has improved efficiency which has offset this. Overheads grew more slowly than revenues and interim operating margins are double the level in the first half of 2019.

Cizzle Biotechnology (CIZ) expects to sign a deal with charity St George Capital, where it would receive royalty payments of up to £5m for AZD1656, a treatment for diabetic patients with Covid-19, plus payments for a companion diagnostic. St George has undertaken a successful phase II trial for AZD1656 and is seeking a license and funding for further trials.

Andrew Hore

Andrew Hore – Quoted Micro 6 September 2021

aquis stock exchangeAQUIS STOCK EXCHANGE
Rutherford Healthcare (RUTH) says a UK investor has agreed to acquire 19 million shares at 65p each. That will raise £12.35m. Rutherford is also issuing 64 million shares to acquire UAE-based Proton Partners International Health Care Investments, which owns the Gulf International Cancer Center in Abu Dhabi.

Capital for Colleagues (CFCP) has made a new investment in Craft Prospect, a Glasgow-based satellite engineering business. There will be £800,000 invested in ordinary shares for a 11.3% stake. The cash will be used for recruitment and product development.

VSA Capital Group plans to join the Aquis Stock Exchange on 9 September. It was previously quoted on AIM, although it cancelled the quotation in April 2013. London-based VSA provides corporate finance and broking services and has an office in Shanghai. In the year to March 2021, the main subsidiary VSA Capital increased revenues from £2.14m to £2.98m and pre-tax profit jumped from £278,000 to £746,000. Group net assets were £4m at the end of March 2021.

Polygon Global Partners has increased its bid for Watchstone Group (WTG) to 38p a share, up from 34p a share, which values the company at £17.5m. Watchstone still believes the bid is too low. In the middle of August 2021, there was £14.1m in the bank and £1.8m in escrow. There are potential litigation claims on top of that.

KR1 (KR1) has participated in the Moonriver (MOVR) crowdloan and Kusama (KSM) parachain auction. KR1 contributed 5,000 KSM to the crowdloan auction. In return KR1 has received 19,666,35 MOVR and will receive a further 45,888.15 over 48 weeks. KR1 has already sold 15,643.19 MOVR in return for 5,162.25 KSM. KR1 also invested $500,000 in return for Exponent (XPN) tokens. Exponent is an open source platform.

In the year to December 2020, MiLOC Group Ltd (ML.P) increased revenues from HK$15.4m to $20.5m and it moved from loss to a profit of HK$6.22m. The healthcare company sharply reduced its distribution costs and other admin expenses. This reflected the termination of an endorsement agreement and a write-back of a previous over provision for fees.

First half revenues of Yooma Wellness Inc (YOOM) were $2.78m, with $2.18m generated in the second quarter. The interim loss was $5.5m.

Wishbone Gold (WSBN) has identified seven targets at the Cottesloe project in Western Australia.

Eight Capital Partners (ECP) has launched an issue of €25m 4.8% five-year bonds that will be listed on the Vienna Stock Exchange. They will help to refinance existing bonds.

Evrima (EVA) is raising £720,000 at 5p a share plus warrants to subscribe for shares at 10p each. This will finance investments in existing investee companies and new investments.

Vulcan Industries (VULC) has raised a further £163,000 at 1.7003p a share.

AIM
Capital equipment manufacturer Mpac (MPAC) had a strong first half with a combination of acquisitive and organic growth in the Americas. Revenues were one-fifth higher at £44.2m, with organic growth of 2%. Pre-tax profit was 88% higher at £4.7m. Net cash was £10.3m at the end of June 2021. Healthcare and food have been the main markets for the company’s packaging and automation equipment, but a new contract has been signed to supply battery cell assembly equipment. The full year pre-tax profit forecast has been upgraded to £8.2m.

Bigblu Broadband (BBB) is returning £26m to shareholders following the recent disposal of Quickline. That will be 45p a share in cash via the issue of B shares by October. There should still be net cash of £1.7m at the ned of November 2021 with deferred consideration due next year. Interim revenues from continuing operations improved from £10.6m to £13.1m. Growth is coming from Australasia, but the Nordic region is expected to return to growth next year.

Mercia Asset Management (MERC) has made a £1.6m direct investment in Locate Bio, which had previously been backed by the manager’s funds. Locate Bio’s products help to accelerate the repair of bone and cartilage. The total of £10m raised by the company will be used to support trials of its technology.

Pennant International (PEN) says interim revenues improved by 17% thanks to a strong performance by the software division. The three-year contracted order book has fallen to £25m, but there are potential contracts in the pipeline. Pennant should return to profit this year.

Interim revenues have trebled to £820,000 at in-game digital advertising firm Bidstack (BIDS), but there is still a long way to go before it reaches profitability. Losses will continue in 2021 and 2022, although there is enough cash in the bank to cover these, following a £10.8m fundraising.

Trading at Manchester-based Northcoders (CODE) has been strong since the software training company joined AIM during the summer. Applications are 162% of 2019 levels and there is 90% revenue visibility for 2021. There are plans to open a new office in Birmingham.

Real-time financial data software provider Arcontech (ARC) reported flat full year revenues and pre-tax profit of £3m and £1.1m respectively. Even so, the dividend was raised by 10% to 2.75p a share.

Bangladesh Bank has approved the acquisition of a majority stake in Sanofi Bangladesh by Beximco Pharmaceuticals (BXP).

MAIN MARKET
Innovaderma (IDP) has completed its product portfolio review and medical device products have been classed as non-core. Packaging of core personal care products has been refreshed and they are available via Amazon. There are plans to use influencers to build sales.

Dealings have commenced in Caracal Gold (GCAT) following its acquisition of Kilmapesa gold mine. There are plans to increase production to 50,000 ounces of gold each year.

One Heritage Group (OHG) has become aware of financial issues with owned associate company One Heritage Maintenance, where it owns the equivalent of a 34% stake. The stake was valued at £285,000.

Andrew Hore

Andrew Hore – Quoted Micro 30 August 2021

 

aquis stock exchange

AQUIS STOCK EXCHANGE

Capital for Colleagues (CFCP) has sold its investment in Ecomerchant Natural Building Materials for £250,000, which is a 150% profit on the initial investment. There is a management buyout. An initial £100,000 will be received and the rest will be

paid over five years. The valuation is already reflected in the NAV of the group. Space software supplier Bright Ascension Ltd is raising a further £1m. Capital for Colleagues invested £250,000 in 2016 and

2017. The A shares acquired had preferential participation rights. Capital for Colleagues has retained the A shares and swapped the associated preferential rights for 50,000 ordinary shares valued at £1.75m. That is equivalent to a 2.6p a share uplift in NAV.

Cadence Minerals (KDNC) had cash of £1.39m at the end of June 2021. In the first half of 2021, there were realised gains of £423,000 and unrealised gains of £3.12m. Net assets are £25.2m. Cadence is reviewing its privately held assets.

Holiday resort developer Belvedere Leisure (BL03) has exercised its option to acquire Barnsoul caravan park via a joint venture with Apple Invest. The site occupancy has recovered to more than 90% in August. New lodges will commence construction during September and there should be 25 by the end of 2021. Landal Barnsoul will take over the management of the site at the beginning of 2022. More lodges will be added.ularly lithium assets in north Australia. The Amapa iron ore project is the main focus.

Sativa Wellness Inc (SWEL) has signed a distribution agreement with Germany-based Lexamed. This will help to build sales of the Goodbody CBD brand in Germany and nearby markets. Their joint venture company will be transferred to Lexamed.

Eight Capital Partners (ECP) has acquired €40m of secured bonds from a company controlled by its chairman Dominic White. They have been bought for par plus unpaid interest of €151,000 and payment is a vendor loan. After the cost of the loan, the net interest income will be €400,000. The bonds were issued by 1AF2, a subsidiary of The Avantgarde Group, an Italian fintech company. There is an equity linked element for the redemption payment. The maturity date is 30 June 2024. New capital will be raised to pay off the vendor loan.

Steve Xerri has taken a 4.81% stake in Oscillate (MUSH). DXS International (DXSP) chairman Bob Sutcliffe bought 10.156 shares at 12.8p each.

AIM

Rail and traffic software and consultancy services provider Tracsis (TRCS) has benefited from the easing of lockdown improving demand for the traffic data and events division. Group revenues for the year just ended have been upgraded from £49m to £50m. Cash will be better than expected at £25.4m.

CPP Group (CPP) is paying a 5p a share interim dividend. The personal protection and insurance products provider increased revenues from continuing operations by 10% to £66.4m despite the Covid-19 restrictions in the important Indian market. There was a small improvement in underlying pre-tax profit to £800,000. Cost cutting will help to improve profitability. There are 12.3 million Cash was £19.6m at the end of June 2021.

Ireland-based industrial property and offices investor Yew Grove REIT (LON: YEW) spent €900,000 on moving to the main Euronext market in Dublin, which was required by REIT regulations. The AIM quotation is being retained. After that additional cost the interim pre-tax profit before property gains was still €2.52m on revenues of €6m. NAV edged up to €1.0064 cents a share. Loan to value is 29.6%. The annual rent roll is €12.8m. Life sciences, government and multinationals account for 97% of this.

Building materials sector consolidator SigmaRoc (SRC) has completed the acquisition of Finland-based limestone supplier Nordkalk. Interim revenues, prior to the acquisition, increased from £54.5m to £84.8m and underlying pre-tax profit improved from £5.3m to £8.7m.

City of London Group (CIN) is raising £11.4m through a share subscription and up to £6.9m via an open offer at 60p a share. Warrants are also being issued that are exercisable at 69p a share. The cash will be used to finance the development of Recognise Bank and enable it to gain full authorisation to offer savings products. Recognise has already started to offer loans. The bank’s focus is small businesses. Further cash should be raised through the disposal of Milton Homes.

Science Group (SAG) has increased its stake in TP Group (TPG) to 23.2%.

MAIN MARKET

BATM (BVC) sparked a forecast upgrade when it published its interims. Both the biomedical and networking and cyber divisions are making strong progress. The latter’s revenues were flat after adjusting for the sale of the NGSoft business, but the launch of the Edgility will enable the division’s revenues to grow over the medium-term. The Biomedical division continues to benefit from demand for Covid-19 diagnostic products, but that should not mask the progress of the rest of the business. Shore Capital has increased its 2021 revenues forecast by 5% to $138m and pre-tax profit to $23m, including the $13m gain on the NGSoft disposal.

Tirupati Graphite (TGR) generated revenues of £1.12m in the year to March 2021, up from £794,000 the year before. That was despite the effect of Covid-19 restrictions.

Oxford Cannabinoid (OCTP) had £14.6m in the bank at the end of May 2021 and since then £1.15m has been spent on R&D.

NMCN (NMCN) Has agreed an extension to its £10m convertible bridging facility until 1 November. The annual report should be published before the end of September.

Andrew Hore

Andrew Hore – Quoted Micro 23 August 2021

AQUIS STOCK EXCHANGE

Adnams (ADB) says that trading has improved since 17 May with strong demand for hotel accommodation. Interim revenues were flat at £20.5m, while the loss dipped from £3.87m to £3.34m. Net bank debt was £13.4m at the end of June 2021.

GP software provider DXS International (DXSP) increased its full year revenues from £3.28m to £3.61m, while pre-tax profit improved from £239,000 to £254,000 even though the amortisation charge was significantly higher. There was £1.24m of cash generated from operations, although that is less than the £1.5m of capitalised research and development spending.

Good Energy (GOOD) continues to reject the 340p a share bid by Ecotricity because it undervalues the company. Management believes that the company can grow significantly as an independent entity. They also point out that Ecotricity is loss-making.

Oscillate (MUSH) has made a pre-IPO investment in Psych Capital, which would be one of first quoted psychedelic healthcare companies. Oscillate has acquired a 10.4% stake for £300,000. The Oscillate finance director is also finance director of Psych Capital. Richard and Charlotte Edwards have increased their stake in Oscillate from 5.94% to 8.31%. Oscillate has a 24.6% stake in Igraine (KING) which says that the report on the ARCADIA trial – relating to a potential treatment for people with diabetes suffering from Covid-19 – will be published by Excalibur Medicines on 6 September. Igraine has a 2% stake in Excalibur Medicines and also a co-investment agreement.

Yooma Wellness Inc (YOOM) is making the first of its promised acquisitions. It is paying up to £10.2m in cash and shares for Birmingham-based Vitality CBD, which sells its products through Boots, Tesco and Asda. Revenues were £1.6m in the first half of 2021.

Clarify Pharma (PSYC) has also made its first acquisition since joining Aquis. It has contributed $700,000 to a fundraising by Beckley Psytech. This gives Clarify a 0.26% stake. Beckley is developing psychedelic compounds to treat neurological and psychiatric disorders.

Dispersion Holdings (DEFI) has invested $200,000 in Blimp Technologies Inc, which has a platform that rewards homebuyers and sellers for contributing value to a tokenised network established by Home Network Foundation. Dispersion has made a second investment in Defi Yield Technologies Inc. The C$800,000 investment follows an initial investment of C$200,000, which was at a lower share price. This takes the shareholding to 2.24 million shares.

Watchstone Group (WTG) reduced its underlying admin expenses but there was still a £2.31m cash outflow in the first half of 2021. NAV was £15.4m at the end of June 2021. Watchstone has £14.1m in the bank and £1.8m more in escrow. The focus is on continuing litigation.

Eastinco Mining (EM.P) had a £528,000 outflow from operating activities in 2020. There was £52,000 of cash at the end of 2020.

SulNOx Group (SNOX) reduced its loss from £1.81m to £856,000 in the year to March 2021. SulNOx intends to move to AIM.

Coinsilium (COIN) has invested £300,000 in shares in financial services firm Greengage Global and is subscribing for up to £200,000 in convertible loan notes.

Evrima (EVA) has completed its investment in Eastport Ventures Inc, which is planning a flotation.

Abdelatif Lachab has increased his stake in Helium Ventures (HEV) from 5.94% to 6.23%.

AIM

Floorcoverings distributor Likewise (LIKE) switched from The International Stock Exchange to AIM last week and raised £10m at 25p a share. The cash raised will provide working capital for growth and cash for acquisitions. There will also be investment in further distribution centres, including a larger site in Manchester. Likewise chief executive Tony Brewer joined Headlam in 1991 and became chief executive in 2000. He left the company in 2016. The plan is to be a national distributor with revenues of more than £200m and an operating margin of more than 5% are targeted. Trading has been ahead of budget in the first half of 2021. Daily revenues exceeded £250,000 in each of May and June. The share price has risen to 31p.

Interim figures from plastic packaging manufacturer Robinson (RBN) led to a sharp downgrading of the 2021 pre-tax profit forecast. Raw material prices have soared, and volumes have not grown as fast as expected. Interim revenues were 19% higher at £21.2m – there was modest like-for-like growth excluding the Schela acquisition. A slump in gross margins meant that the business fell into loss. An interim dividend of 2.5p a share has been announced.

Piling contractor Van Elle (VANL) lost money last year, but it should return to profit this year.  In the year to April 2021, revenues were flat at £84.4m, which was a good outcome because revenues were sharply lower in the first quarter due to lockdown. The underlying loss was one-third higher at £1.2m. The cold winter also held back progress. Van Elle plans to pay a dividend next year if trading goes to plan.

SkinBioTerapeutics (SBTX) had more cash than expected at the year end and it has set the price for its AxisBiotix-Ps food supplement. In the UK, the psoriasis treatment will cost £1.50 per sachet, which is higher than expected. There was £4.6m in the bank at the end of June, compared with expectations of £3.4m.

Intelligent Ultrasound (IUG) AI technology has yet to make a significant contribution to revenues. GE is offering ScanNav Assist as an option on its SWIFT ultrasound machine, but first half revenues were minimal because of Covid-19 restrictions holding back marketing. Even so, interim revenues increased by 36% to £3.6m due to higher sales of training simulators. That growth is continuing and AI revenues will build up over the longer-term.

MTI Wireless Edge (LON: MWE) has continued to grow its profit and demand is improving for its antennas with new contracts from space and naval customers. In the first half of 2021, revenues improved from $19.6m to $21.3m, while pre-tax profit rose from $1.83m to $2.05m.

Engineer Tricorn (TCN) has appointed administrators because it is running out of money and the board is trying to sell the trading operations. Trading in the shares has been suspended and Arden has resigned as nominated adviser.

DBAY Advisors has decided not to bid for credit hire and legal services firm Anexo (ANX). Trading has been ahead of expectations at Anexo.

MAIN MARKET

Trading in standard list shell Pineapple Power Corp (PNPL) shares has been suspended following the announcement of the reverse takeover of BVP Investments and its sustainability-focused investment portfolio.

Canadian Overseas Petroleum (COPL) has completed the reverse takeover of Atomic Oil and Gas. This adds producing assets. Oil production is expected to continue to increase. Other potential asset acquisitions are being assessed.

Tirupati Graphite (TGR) is acquiring Suni Resources SA, which has a portfolio of graphite interests in Mozambique. They include the Montepuez graphite project which is already under construction. The acquisition will cost £6.6m.

Andrew Hore

Andrew Hore – Quoted Micro 16 August 2021

AQUIS STOCK EXCHANGE

Yooma Wellness Inc (YOOM) has a dual quotation on the Canadian Securities Exchange and obtaining the Aquis quotation is part of the stated strategy to become the largest CBD business in the world. Acquisitions have been made this year and at least three more are lined up. Prior to joining Aquis, Yooma raised £7.46m at 52.32p a share. As well as the cash raised in the placing, there is an option granted to a strategic investor to subscribe £5m for 9.56 million shares. Administrative delays relating to the investor mean that the share issue has not been completed yet. Yooma Wellness says that annualised 2021 sales could be $32m if it makes the expected acquisitions.

Ecotricity has posted its offer document for Good Energy (GOOD), which continues to reject the approach.

Clean Invest Africa (CIA) is in discussions with a potential investor. A fundraising could be secured within weeks. There are also discussions concerning a joint venture. CIA has been hit by Covid-19 measures in South Africa.

Pioneer Media Holdings Inc (PNER) has made an additional investment in connected gaming platform developer Paidia eSports Inc and a new £200,000 investment in Streaks Gaming. Pioneer will own 40% of Paidia. London-based Streaks operates a conversational gaming platform. Users are matched with a personalised digital conversational partner generated by AI. Pioneer will own 16.1% of Streaks.

Sativa Wellness Group Inc (SWEL) increased revenues by 828% in the second quarter of 2021. Revenues in the six months to June 2021, revenues jumped from £733,000 to £4.86m, while the loss reduced from £2.37m to £1.27m. The business is being restructured into three divisions: Goodbody Botanicals, Phytovista and Goodbody Wellness.

Construction of the DJT Plants medical cannabis growing facility started on 4 July. Ananda Investments (ANA) continues to make progress with the purchase of the 50% of DJT it does not own.

Rutherford Health (RUTH) is partnering with genomic and theranostic company OncoDNA, which will enable its patients to obtain genomic testing that can help to secure the most appropriate cancer treatment.

Administrators have been appointed to NQ Minerals (NQMI).

Chris Akers has increased his stake in Oscillate (MUSH) from 3.1% to 9%. Thomas Grant Nominees owns 9.95%. Robert Johnson has a 3% stake in TECC Capital (TEC).

AIM

Drug developer BiVictriX Therapeutics (BVX) has a low capital cost model which outsources the main operations. It has a lead asset called BVX001, which is targeting adult leukaemia. BVX001 has already indicated an anti-tumour effect in animal models. No adverse effects were observed. The £7.5m raised at 20p a share will accelerate the optimisation of BVX001, so it reaches pre-clinical milestones. The share price ended the week at 23.5p.

Marlowe (MRL) has decided not to bid for Restore (RST), which has acquired PRM Green Technologies, which is an IT recycling business. This acquisition will be immediately earnings enhancing.

Crestchic revenues increased by 44% in the first half of 2021 and Northbridge Industrial Services (NBI) group revenues are 22% ahead at £19.6m. The 2021 pre-tax profit forecast was increased from £2.1m to £2.5m.

Self-storage sites operator Lok’nStore (LOK) is increasing occupancy rates and adding new sites. Self-storage revenues increased by 21% over the year to July 2021, which is well ahead of forecasts. The first half growth rate was 11%. Over the 12-month period, occupancy rates have increased from 69.6% to 85.8%.

Oil and gas producer Southern Energy Corp (SOUC) concentrates on areas with proven low-cost producing assets, with the current focus in Mississippi. The strategy is to grow production through acquisitions. Alberta-based Southern Energy plans to increase production to 25,000 barrels of oil per day over the next two year. This will require larger acquisitions than in the past. No cash was raised, and the shares will continue to be traded on the TSX Venture Exchange. The share price opened at 6.5p on the first day and stayed at that level until the end of the second day when it fell to 5p (4p/6p) and that price was maintained.

Science Group (SAG) has made a bid approach for TP Group (TPG). Science group has acquired a 10.2% stake in TPG, with the shares being acquired for 5p each.

Best of the Best (BOTB) says that there has been a 15% decline average weekly sales of competition entries. finnCap has cut its earnings forecast from 142.4p a share to 53.3p a share. There should still be £12m in cash at the end of April 2022.

Venture Life Group (VLG) says interim revenues were lower this year because of the lack of hand sanitiser sales and lower sales of Dentyl in China. Sales of other products grew. Forecasts have been updated for recent acquisitions. Share issues mean that earnings are expected to be flat at 2.5p a share. The full benefits of the acquisitions will come through in 2022 when earnings are expected to be 4.6p a share.

Verditek (VDTK) has raised £353,000 from its Crowd for Angels bond offering.

MAIN MARKET

Foams manufacturer Zotefoams (ZTF) improved its interim pre-tax profit by 49% to £4m even though it was reduced by currency movements. Footwear generates one-third of revenues. The new manufacturing site in Poland has opened.

Argo Blockchain (ARB) generated revenues of £31.1m from mining 883 bitcoin in the first half of 2021. Although revenues are improving, there will be higher than expected tax and finance charges this year. finnCap has reduced its 2021 earnings estimate from 7.6p a share to 5.6p a share.

Plaza Centers NV (PLAZ) has received a revised proposal from GC Hevron Capital. The company’s assets would be transferred to a trustee of managed for the benefit of bondholders. Hevron would be issued shares equivalent to 74.99% of the enlarged share capital. There will be a NIS 2 million payment to cover creditors. Hevron will then inject a new business, which is part of its investment portfolio, into the shell. The target is a nutritional food technology company.

Danakali (DNK) is cancelling its standard listing on 24 September and retaining its ASX listing.

Mast Energy Developments (MAST) has acquired Pyebridge Power, which owns a 9MW gas-powered standby generation facility, for £2.5m in cash. The site could generate EBITDA of £488,000 a year.

Hawkwing (HNG) is raising £16.5m through the issue of 8% convertible loan notes. They are convertible at 6p a share. The cash will be loaned to ecommerce aggregator Internet Fusion Group to finance two acquisitions – an outdoor lifestyle brand and an online fashion accessories retailer. Hawkwing plans to acquire Internet Fusion for an enterprise value of £115m through an issue of shares at 6p each. Trading in Hawkwing shares remains suspended.

Path Investments (PATH) has agreed to acquire DG Innovate for £32m in shares at 0.6p each. DG is developing electric motor technologies and energy storage systems. There is enhanced drive technology, which is being used to develop lightweight and cost-effective electric motors, and enhanced battery technology, which is developing fully-recyclable, sodium-ion batteries offering greater energy density than current technologies.

Andrew Hore

Andrew Hore – Quoted Micro 9 August 2021

AQUIS STOCK EXCHANGE

Chapel Down (CDGP) has announced Andrew Carter as successor to chief executive Frazer Thompson in September 2021.

National Milk Records (NMRP) increased its fourth quarter revenues by 7% to £5.72m. Milk recording revenues grew by 9%. The corresponding period did cover the initial lockdown. Milk prices are holding up at levels where dairy farmers will be profitable. The first phase of IT investment will be up and running later this year.

Boanerges Ltd (BNRG) has paid £25,000 for an option to invest £2m for a 14.3% stake in Fintech Digital Platforms, which owns property search internet portals.

Samarkand (SMK) has secured an extension to its distribution contract with skincare brand 111SKIN until the end of July 2023. Non-exec Keith Higgins has bought 21,739 shares at 146p a share.

Inqo Investments (INQO) had significant write-offs and bad debt provisions in the year to February 2021. This contributed to the more than doubled loss of R13.4m as revenues slumped from R24.4m to R4.2m. The total cash outflow was R14.7m and cash fell below R1m. Kuzuko Private Game Reserve will reopen in September. Uganda-based Four One Financial Services and Kenya-based South Lake Medical Centre both made higher interest payments to Inqo.

S-Ventures (SVEN) has taken a 50% stake in Vegan Punk Ventures and invested up to £100,000 in loans. The brand is PlantPunk and it has a range of ZeroBeef meat alternatives. Dave Ahern will be managing director and third-party investors will provide loans of up to £50,000.

Altona Rare Earths (ANR) had cash of £436,000 at the end of June 2021.

Helium Ventures (HEV) continues to trade at a premium to its 10p placing price. The share price is currently 32.5p (31p/34p). James Sheehan has increased his stake from 8,5% to 9.47%.

Eight Capital Partners (ECP) has sold its stake in Finance Partners Group for €2.15m and €1.57m of this has been received. The original cost was €1.9m. The investment focus will be fintech.

Vulcan Industries (VULC) has raised £223,000 at 1.46p a share and issued £48,000 worth of shares at 2p each.

Veni Vid Vici has changed its name to VVV Resources (VVV). Angelfish Investments has changed its name to Igraine (KING). DicovORE has changed its name to Oscillate (MUSH).

Trading in First Sentinel, which has changed its name to Omni Egis (OMNI) and NQ Minerals (NQMI) shares has been suspended ahead of publication of their respective accounts. Freyherr International (FRYR) has withdrawn from Aquis.

AIM

In 2020-21, NWF (NWF) did not manage to match the previous year’s profit performance of the fuels division, but the cold winter and home working meant that the performance was better than expected. Management is keen to make further acquisitions to broaden the geographic spread of the fuels business. Overall, group pre-tax profit was 10% lower at £11.9m. The efficiency improvement in the food warehousing division meant that its profit contribution was higher. The feeds division reported a lower profit but with milk prices over 30p per litre the outlook is positive for dairy feed.

Higher second half sales and improved efficiency helped Filtronic (FTC) maintain profitability at £200,000 even though full year revenues fell 9% to £15.6m. The telecoms and RF components and equipment supplier generated cash and net cash improved to £2.8m at the end of May 2021. 5G investment and moves into newer markets, such as space, provide a positive outlook for the future and profit should build from now on. Revenues are expected to grow by 16% this year and pre-tax profit of £500,000 is forecast.

The latest trading statement from Belvoir (BLV) confirms a strong first half with revenues growing by two-fifths, due to buoyant house sales. The steadier lettings income has grown by 13% – 10% organically, which is much faster than the market.

Maestrano (MNO) has secured a five-month proof of concept contract with Network Rail for HS1, the high speed line that goes to the channel tunnel. This will monitor overhead lines, vegetation, track and passing clearances. HS1 is the same specification as European tracks so it could provide a way into the European market.

Microbiome-based products developer Optibiotix Health (OPTI) generated a 44% increase in interim revenues to £1.07m with LP LDL probiotic cholesterol-reducing products and Slimbiome products accounting for most of the revenues.

Seeing Machines (SEE) 2020-21 revenues were 2% ahead of expectations at A$47.3m. There was $47.7m in the bank at the end of June.

Xpediator (XPD) has formed a strategic partnership with e-commerce fulfilment company Synergy Retail Support and is providing space at its Braintree warehouse.

MAIN MARKET

Argo Blockchain (ARB) generated July revenues of £5.6m, up from £4.36m in June, even though the average bitcoin price fell. A Nasdaq listing is being considered.

Challenger Acquisitions has changed its name to Cindrigo Holdings (CINH) following the completion of the acquisition of the renewable energy products business.

Kanabo (KNB) has a stake in medical cannabis cultivation company Hellenic Dynamics, which is being acquired by AIM-quoted UK SPAC (SPC) for £45.2m in shares at a minimum price of 0.472p a share. The £750,000 investment in Hellenic will be converted into shares at a minimum 30% discount to the prospective. UK SPAC intends to move to the standard list.

Starcrest Education (OBOR) has signed heads of terms to acquire 80% of National Training Company. Starcrest is not going ahead with the acquisition of The London School of Science and Technology and costs of £1.2m have been written off. There was £700,000 in cash left at the end of June 2021.

Andrew Hore

Andrew Hore – Quoted Micro 2 August 2021

AQUIS STOCK EXCHANGE

Brewer Shepherd Neame (SHEP) says trading has picked up since 12 April and was even better from 17 May. Beer volumes are good, but the company lost money in the year to June 2021. Between 12 April and 26 June managed pub revenues were 84% of the same time in 2019, while tenanted pubs achieved 77% of the volume in 2019. Tenanted pubs return to paying normal rent on 2 August. Net debt is £89.8m.

Brands owner and ecommerce technology platform operator Samarkand (SMK) increased its revenues by 201% in the year to March 2021, but that was flattered by one-off personal protective equipment revenues. Since the year end a Tokyo office has been opened. The latest technology, Nomad Checkout is being piloted.

Oberon Investments (OBE) more than trebled its revenues to £3.8m in the year to March 2021. Assets under administration increased by 340% to more than £550m and more investment management firms were acquired after the year end. The broking operation has already started to win clients and has raised £30m since June 2020. There were record first quarter revenues. Chris Akers has taken a 3.58% stake.

CBD and hemp products supplier Love Hemp (LIFE) has increased its full year revenues by 60% to £4.31m, although second half revenues were lower than those in the first half, which benefitted from large orders by Boots and Holland and Barrett. This year online revenues are expected to increase significantly.

NQ Minerals (NQMI) has requested that trading of the shares on Aquis should cease. There are problems with the company’s 2020 accounts. Begbies Traynor has been appointed to advise on restructuring, but the board is unsure whether the company can continue trading.

KR1 (KR1) has invested $100,000 in the Redstone project, which will be changed for tokens at a later date. Redstone is a cross-chain data oracle technology that provides fast access to data and historic audit trail. A further $269,892 was invested in Interlay for 1,224 series seed shares.

S-Ventures (SVEN) has acquired plant-based nutrition products supplier Pulsin for £2m in cash, £2m in loan notes and 15.18 million shares. The issue of three million of the shares is deferred and dependent on sales in 2021. Pulsin has net debt of £1.2m and generated sales of 37.05m in the year to April 2021. S-Ventures already owns Ohso Chocolate and snacks firm We Love Purely.

EPE Special Opportunities (ESO) has invested £22.5m for a majority stake in a company that owns homeware brands, including Kilner, Viners, Typhoon and Ravenhead. In 2020, revenues were £35.6m.

Dispersion Holdings (DEFI) had net cash of £8.8m at the end of July 2021. It has also invested £910,000 in decentralised finance investments.

Black Sea Property (BSP) is selling a property in Cyprus for €1.06m, compared with a valuation of €830,000.

Coinsilium (COIN) has moved to the Apex segment.

AIM

Big Technologies (BIG) provides remote and personal monitoring services, predominantly to the criminal justice market, and the technology has been developed over more than a decade. The company raised £14.7m after expenses at 200p a share. There was also £185.6m raised by existing shareholders, which sold around one-third of the shares in issue. In three days of trading the share price soared to 355p, which values the company at £1bn. Revenues increased from £19.3m in 2019 to £29.6m in 2020 thanks to new contracts and additional revenues from existing customers. Pre-tax profit jumped from £5.53m to £12.7m.

Tracsis (TRCS) has won a multi-year contract for its RailHub planning software. The deal is worth several million pounds, and this will make an initial high margin contribution to the financial year to July 2021. It sparked a £1m uplift in the 2021 profit forecast to £10.5m.

The Property Franchise Group (TPFG) has doubled interim revenues, helped by the Hunters acquisition early this year. Organic growth was 35%.

Hostels operator Safestay (SSTY) had a tough 2020 and has just published its 2020 figures. It achieved 38% occupancy in its hostels when they were open. The loss was £10m. NAV is £28.5m. Leasehold sales have helped to reduce bank debt to £18m in July 2021. There are 16 hostels currently trading and the other two are set to reopen.

Seed Innovations (SEED) has a 5.1% stake in Canadian Stock Exchange listed CDD and health products supplier Yooma Wellness Inc, which is joining Aquis on 10 August.

MAIN MARKET

Spinnaker Acquisitions (SPAQ) is a new cash shell that has been brought to the market by the same team that floated Spinnaker Opportunities, which eventually acquired cannabis products supplier Kanabo (KNB). It raised £2.08m at 10p a share. The share price has risen to 12.5p, but there is a wide spread of 10p/15p. Spinnaker is seeking to acquire a business in the sustainability and energy transition services markets.

Motor dealer Lookers (LOOK) outperformed the market in the first half of 2021 with a like-for-like increase in vehicle sales of 45%. The interim profit will be around £50m, which is one-fifth higher than previous expectations.

Andrew Hore

Andrew Hore – Quoted Micro 26 July 2021

AQUIS STOCK EXCHANGE

Ecotricity has launched a 340p a share cash bid for Good Energy (GOOD). Ecotricity believes the combined group would be better placed to compete in the energy supply business. The Good Energy board rejects the bid.

Arbuthnot Banking (ARBB) reported a bounce back in interim pre-tax profit from £200,000 to £3m. the main profit improvement was at Arbuthnot Latham. NAV was 1292p a share at the end of June 2021. Assets under management reached £1.22bn. A second interim dividend of 16p a share was announced, and it will be paid on 24 September.

NQ Minerals (NQMI) says its Hellyer gold mine generated revenues of A$19.8m in the second quarter, while net income was A$5.7m. The major capital investment in the mine cost A$16.4m and was finished during the quarter. NQ Minerals is still seeking to move to a full listing on the London Stock Market.

Sativa Wellness Inc (SWEL) generated record revenues in the first half of 2021, and it is generating cash from operations. CBD products supplier Goodbody Botanicals is profitable. There have been 47 clinics opened to offer Covid-19 testing.

Apollon Formularies (APOL) says that medicinal cannabis formulations developed by its subsidiary have been able to kill prostrate cancer cells.

Watchstone Group (WTG) management recommends that shareholders reject the mandatory 34p a share bid.

Ervin Kovac has resigned as director of Freyherr International (FRYR) and the shares remain suspended as the company’s financial position remains uncertain. Trading was suspended more than nine months ago.

Harry Hyman has taken a 3.08% stake in Oberon Investments (OBE).

Newbury Racecourse (NYR) is moving from the Access segment to the Apex segment.

AIM

Digital payments business Boku (BOKU) increased interim revenues by 37% to $34m – organic growth was 21%. Investment is increasing in order to take advantage of growth prospects, but cash is also increasing.

Trading is improving at employee benefits services and insurance products provider Personal Group (PGH) and interim revenues were 12% ahead at £34m even though weak insurance sales last year mean that premium income fell. SaaS-based revenues increasing by 50% – helped by the partnership with Sage. Sales of consumer electronics products through PG Let’s Connect has improved by one-fifth.

Insolvency levels remain relatively low, but Begbies Traynor (BEG) still grew strongly last year. In the year to April 2021, underlying pre-tax profit improved from £9.2m to £11.5m – a combination of organic and acquisitive growth. There is more to come this year from recent acquisitions.

Lawyer Gateley (GTLY) managed to increase its pre-tax profit from £18.1m to £19.3m despite the tough trading conditions in the year to April 2021. The property and corporate finance divisions did particularly well last year. This kept utilisation levels high. A final dividend of 5p a share was announced. Gateley is paying £815,000 for Tozer Gallagher, which is a quantity surveyor and construction consultant.

Online womenswear retailer Sosandar (SOS) increased its full year revenues by 35% to £12.2m. It remains loss-making and that is likely to continue this year even though revenues continue to grow rapidly. First quarter revenues jumped by 256% to £5.7m, although the comparatives were weak. Active customers increased by 23% compared with the previous quarter. Singer forecasts double full year revenues to £24.4m.

Parcel and freight delivery company DX (DX.) is still growing its freight business faster than expected and analysts have upgraded their forecasts for 2020-21 and the current year. The additional business is also more profitable than in the past. DX Express revenues are flat due to lower office mail delivery revenues.

Judges Scientific (JDG) had a much better order book at the end of June 2021. It was 49% higher than June last year. Organic sales growth was 5% compared with full year forecasts of 1.5%.

Open Orphan (ORPH) spin out Poolbeg Pharma (POLB) has started trading on AIM. The shares are trading at 10.875p, which is equivalent to 3.63p a share to Open Orphan shareholders. The Open Orphan shareholders cannot sell yet.

Vela Technologies (VELA) has invested £750,000 in Northcoders Group, which joins AIM on 27 July. Manchester -based Northcoders provides software coding training.

International payments business Cornerstone FS (CSFS) is pursuing potential acquisitions, but it has not secured any since it floated earlier this year. The mix of business remains consistent, although more of it is direct which improves margins, and trading has almost returned to pre-pandemic levels.

MAIN MARKET

New shell Acceler8 Ventures (AC8) has soared from its placing price of 100p to 215p on limited volumes. After expenses, the cash in the company is equivalent to 60p a share. The sector of the potential target has been kept vague.

Sivota (SIV) is a shell that wants to acquire Israel-based technology businesses. The company has just under 78p a share of cash. The share price has risen from the placing price of 100p to 112.5p.

NMCN (NMCN) is making progress with the refinancing and related documentation. The 2020 accounts are expected to show a pre-tax loss of much more than the £24m previously indicated.

Aquaculture technology developer OTAQ (OTAQ) increased full year revenues by 18% to £4.05m, while the underlying loss was reduced from £1.05m to £726,000. Restrictions have held back the progress of the business.

Town Centre Securities (TOWN) has collected 88% of the billed rent of £4.9m for the quarter to June 2021 with a further 8% that was agreed to be deferred.

Andrew Hore

Andrew Hore – Quoted Micro 19 July 2021

AQUIS STOCK EXCHANGE

Good Energy (LON: GOOD) has rejected the bid from rival renewable energy supplier Ecotricity. It believes that the indicative offer of 340p a share in cash is too low even though it is a premium to the previous market price. Management believes that it has a clear strategy for the company. The focus is energy as a service and mobility as a service, particularly through Zap Map. A new tariff, called Green Driver, has been launched offering a choice of off-peak electric vehicle charging periods. The potential bid values Good Energy at nearly £57m. However, Ecotricity already owns 25.06% of Good Energy.

Voyager Life (VOY) has secured a preferred supply deal for its CBD and hemp oil products with independent pharmacy group Inphaserve, which supplies more than 30 independent pharmacies in England and Scotland.

Rogue Baron (SHNJ) reports another record month for its Bin 1301 bar. Sales were $95,000 in June, which is one-third higher than any pre-Covid month.

SulNOx Group (SNOX) has raised £2.59m at 30p a share. The cash will be used to build up the sales capability and finance the hiring of additional management and staff. There will also be further investment in R&D. There are 58 ongoing trials for its emission reduction product.

Hydro Hotel Eastbourne (HYDP) generated interim revenues of £186,000, but it lost £383,000. The hotel has been trading for a limited time in the six months to April 2021. Refurbishment of bathrooms was undertaken during the period. The hotel will fully re-open on 19 July.

Tectonic Gold (TTAU) has reached an agreement with White Prospecting to set up a joint venture to mine gold at the Mount Cassidy project. Tectonic will get a 7.5% gross production royalty. This deal will enable Tectonic to concentrate on Specimen Hill.

BWA Group (BWAP) reports positive sampling results at the 90%-owned Dehane rutile sands project. It is still early days, but the elevated levels of rare earths is a good sign.

Evrima (EVA) had £164,000 in the bank at the end of 2020, while the NAV was £461,000.

Chapel Down Group (CDGP) raised £6.88m at 59.5p a share, which includes £5.45m raised via crowdfunding. NQ Minerals (NQMI) has raised £35,000 at 7p a share. All Star Minerals (ASMO) has raised £257,000 at 0.02p a share and converted £54,000 of liabilities into shares. Ananda Developments (ANA) has raised £350,000 from an issue of convertible loan notes, with a conversion price of 1p a share, and a further £200,000 is committed by investors.

AIM

Building materials sector consolidator SigmaRoc (LSRC) acquiring Finland-based limestone supplier Nordkalk acquired for £402m, including debt. SigmaRoc has raised £260m in a placing at 85p a share, while a retail offer raised £1.6m. A new bank facility will help to fund the deal and £43m of shares will be issued to Rettig Group.

Energy efficiency as a service provider eEnergy Group (EAAS) has trebled full year estimated revenues to £13.5m. Organic growth was 75% and there was a small pre-tax profit. The smart metering service has been rebranded as MyZeRO and the first combined LightAsAService and smart metering contract has been won. Short-term profit growth is being sacrificed for longer-term growth.

Solid State (SOLI) marginally beat previously upgraded expectations for its figures for the year to March 2021. Revenues dipped slightly to £66.3m, but underlying pre-tax profit was 15% ahead at £5.4m following a reduction in overheads. The total dividend was 16p a share. Computing and communications products did well, but there was a decline in power products revenues. Acquisitions made a small contribution.

Glantus (GLAN) has made its first acquisition since joining AIM, but the software company still remains at a discount to its placing price. The $9.3m acquisition of Technology Insight Corporation led to an earnings up grade for 2022 from 6.4 cents a share to 7.1 cents a share.

Iodine producer Iofina (IOF) says iodine prices are back to pre-pandemic levels at $35-$37/kg. First half production is in line with guidance at 249.4Mt.

Kromek (KMK) had a better second half of the year to April 2021. Manufacturing had been closed in the first half and revenues improved. Full year revenues still fell from £13.1m to £10.4m. There is already 75% visibility over this year’s forecast revenues of £15m. Biodetection equipment for Covid-19 and other airborne viruses will provide a new market for the company. The medical imaging market is recovering.

ULS Technology (ULS) continues to invest in its DigitalMove platform, and it has net cash of £24m to complete its development. More services will be offered on the platform. Conveyancing completions fell last year and revenues declined 18% to £16.9m.

Zoo Digital (ZOO) moved into profit in the year to March 2021. A pre-tax profit of $900,000 was made on revenues of $39.5m with further improvements in profit expected in the next two years. Demand is increasing from subtitling and dubbing services for TV and film back catalogues and Zoo is also adding additional services. Zoo is extending its geographic reach in line with demand from customers.

Chains and transmissions manufacturer Renold (RNO) reported a 13% dip in revenues last year, but underlying pre-tax profit improved by one-fifth to £5.9m – that was due to £2.4m of restructuring costs the year before. Net debt was reduced to £18.4m. The cost base has been cut and efficiency improved through capital investment in facilities. In July, a £11m military contract was won by the torque transmission business.

Personal protection and insurance products provider CPP Group (CPP) says that trading in India has recovered in the past few weeks, but there had been a sharp reduction activity in April and May. The back books continue to generate revenues, although they are declining. Overall trading is in line with expectations.

MAIN MARKET

Standard list shell Hawkwing (HNG) has agreed to acquire ecommerce aggregator Internet Fusion Group, which owns nine speciality retail businesses. It has developed the Reactor platform which brings together retail businesses and brands. Trading in the shares has been suspended.

LED lighting and wiring accessories supplier Luceco (LUCE) has continued to improve its performance in the first half. Interim revenues are expected to be £108m and underlying operating profit of £19m. The second half will be even stronger. Luceco expects full year revenues to be at least one-quarter higher at £220m and underlying operating profit 30% ahead at £39m.

Maternity wear retailer Seraphine Group (BUMP) raised £61m at 295p when it joined the premium list last Friday. The cash will be used to pay off loans and finance growth. The share price started conditional dealings earlier in the week at 305p and subsequently fell back, opening at 280.05p when dealings were unconditional. The share price ended the day at 279.4p

HeiQ (HEIQ) has signed a collaboration agreement with LYCRA and the first product should be launched by the autumn. This will combine freshness and antiviral benefits with LYCRA stretch fabrics.

Nuformix (NFX) expects to develop a phase 1-ready formulation of its NXP002 inhaled treatment for idiopathic pulmonary fibrosis in the next 18 months. This could be a time to seek a partner.

Andrew Hore

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