Netalogue Technologies (NTLP), which is an ecommerce platform developer, has announced its first dividend since 2012 when it paid 0.123p a share. The latest dividend of 0.246p a share and the shares go ex-dividend on 17 December. Netalogue had cash of £807,000 at the end of September 2015 and the dividend will cost around £120,000. Interim revenues fell from £689,000 to £552,000 and profit dipped from £165,000 to £38,000. Netalogue has withdrawn from the hosting business. At 3.95p (3.7p/4.2p) a share, Netalogue is valued at £1.9m.
Hydro Hotel Eastbourne (HYDP) is maintaining its annual dividend at 18p a share. A dividend of 6p a share will be paid on 14 January (ex-dividend 17 December) and the 12p dividend on 5 May (ex-dividend 21 April). A slight increase in profit is expected this year. At 750p (725p/775p) a share, the yield is 2.4%.
Titania Internet Ventures (TITP) is considering changing its investment strategy so that it can become involved in the renewable energy sector. The proposal involves entering into a relationship with a British wind turbine manufacturer. Titania had been involved in online penny auctions, but this business ceased more than two years ago, and before that it investigated a nursing home acquisition in Finland. The company was originally called Uranium Prospects. At 2.5p (2p/3p) a share, Titania is valued at £44,000.
Leni Gas Cuba (CUBA) had net assets of £4.1m at the end of September 2015. Since then, £200,000 was raised at 5p a share but that went towards paying the £326,000 cost of joining ISDX. The pro forma NAV is around 0.8p a share. David Lenigas has bought one million shares at 1.437p a share, taking his stake to 142 million shares (28.7%).
Lombard Capital (LCAP) has raised a further £122,500 at 3.5p a share via a share issue to one of its directors, Mark Jackson. His stake is 28.2%. At 4.5p (4p/5p) a share, Lombard is valued at £102,000.
Unmanned aerial vehicles (UAV) services provider Strat Aero (AERO) is acquiring communications, flight control and hardware technology developer Aero Kinetics for $1.2m plus the taking on of working capital commitments. This will be financed by the issue of a $775,000 convertible promissory note with a 7.5% interest rate and a 6p a share conversion price, with the rest in cash. There will also be $80,000 0f legal fees and $150,000 will be required to finance an application for FAA Certification, which could be achieved in the middle of next year. There is potential contingent consideration, including warrants depending on certification and achievement of sales targets. This deal is part of the strategy to develop a vertically integrated business, which can offer a full solution to global clients. It also brings Aero Kinetics founder W Hulsey Smith to the group and he will take charge of the group’s technology operations. The acquired operations made a loss of $269,000 on revenues of $246,000 but this is under US accounting rules and all R&D is written off – more than $5m has been invested so far. Strat Aero is also raising £1.6m at 6.25p a share.
Moving into software has helped to offset the volatility of the hardware division but it will not prevent Vislink (VLK) reporting disappointing 2015 figures. The broadcast and surveillance technology supplier has found market conditions for the hardware business tough and new product launches have yet to generate the hoped-for sales. Expected full year revenues will be in the range of £54m-£58m. The company’s debt facility has been increased from £10m to £15m because late hardware sales will increase debtors. Net debt is expected to be £5.8m at the end of 2015. The 2015 profit could be as low as £4.2m, down from £7.1m. There could be a partial profit recovery to £6.3m in 2016 – helped by cost savings. Standard Life trimmed its stake to 4.6%.
Begbies Traynor (BEG) is expanding its property services business in order to offset the weakness of its core corporate insolvency business. In the six months to October 2015, revenues improved from £20.8m to £25.5m, while pre-tax profit rose from £2m to £2.5m. That is after a contribution from property of £6.11m in revenues and £1.16m in EBITDA, compared with nothing in the corresponding period. Corporate insolvency revenues and profit were lower. The interim dividend was unchanged at 0.6p a share. Net debt was £11.9m at the end of October 2015. A full year profit of £4.6m is forecast.
Surface coatings developer Hardide (HDD) had a tougher second half as oil and gas demand declined. In the year to September 2015, revenues were flat at £3m and Hardide fell from profit to loss. The majority of revenues were in the first half. This year it is likely to be the other way round. The new facility in Virginia should be open soon. An £800,000 loss is forecast for this year and a much smaller loss expected next year. There was £2.33m in the bank at the end of September 2015, which provides enough headroom on current expectations.
Snoozebox (ZZZ) is raising £5m at a hefty discount to the market price. The placing price is 6p – a 28.2% discount. The cash is required for the 2016 events season plus the evaluation of other opportunities. Snoozebox has already said that it has established a partnership with Dutco in the Gulf region. An EBITDA loss of £5m is forecast for 2015. Further cash will be required to take advantage of growth opportunities.
Investment group Cathexis has taken advantage of the recent weak trading statement by construction and fit-out company ISG (ISG) and bid 143p a share. ISG believes that this unsolicited offer is too low. The bid values ISG at £70.8m. US=owned Cathexis has been an investor since 2012, when the share price was below the bid level, and it made a bid approach in June. It currently owns 29.6%. The current year profit forecast for ISG had been slashed from £17m to £11m. The bid is at two-fifths of the share price 12 months ago.
Educational services provider Wey Education (WEY) made its move from ISDX to AIM on Friday and it raised £1.75m at 3.5p a share. Wey is capitalised at £3.29m.
Retail stockbroker Share (SHRE) is taking on up to 3,000 nominee share dealing accounts from Barclays, which is exiting the services. The accounts will be transferred by the end of February 2016. Share previously took on nearly 8,000 certificated dealing customers from Barclays.
Property services provider Waterman (WTM) has set a 6% target for its operating margin by 2019. Waterman’s business is predominantly in the UK and both the property and infrastructure sectors are strong. Sanlam forecasts a rise in profit from £2.7m to £3.7m in 2015-16. If Waterman can achieve its margin target then pre-tax profit could be around £6m in 2018-19. A dividend of 2.8p a share is forecast for this year.
Bluebird Merchant Ventures Ltd, which plans to join the standard list,has a copper concentrate trading business combined with a stake in a potential gold mining project. The former can generate cash for investment in the mining project and other projects in the Philippines. Bluebird’s management lives in the Philippines so it has local knowledge. Bluebird’s trading operation is taking advantage of the difference between the price of copper concentrate in the Philippines and the international price. So far, 18MT has been shipped and once Bluebird is shipping 100MT /month then it should be generating enough cash to cover its corporate overheads. The plan is to increase monthly shipments to 500MT/month, which would provide a sizeable surplus of cash to invest in other ventures. This includes other commodity trading opportunities as well as mining projects that are near to production or have been in production in the past and can be reopened. The potential gold mine will cost $15m to bring into production. It will take around 18 months to construct the mine once the necessary permissions are obtained from the authorities. At a gold price of $1,160/ounce, the NPV of the project would be around $13m. That is based on production of 100,000 ounces over five years.
Challenger Acquisitions (CHAL) has finally completed its deal to acquire the businesses of Starneth, which develops observation wheels, and been readmitted to the standard list. AIM-quoted Teathers has sold its stake for an average price of 50.3p a share, raising nearly £72,000 – a gain of £21,000. The Challenger share price ended the week at 41p.
Latest edition of AIM Journal, including why AIM volumes are likely to decline and Purplebricks flotation, available here.