AQUIS STOCK EXCHANGE
VSA Capital (VSA) revealed a strategic partnership with Drakewood Capital Management. This covers commodities trading, fund management and investment banking. This should provide a broader service for junior mining companies. Drakewood is subscribing £405,000 for VSA shares at 9p each and that was a 50% premium over the market price. Mark Thompson has been appointed to the VSA board as its representative. He is a former director of First Tin and Tungsten West. Drake wood and VSA directors have been granted warrants. VSA boss Andrew Monk intends to enter into a deal with Drakewood that would give it an option to acquire his shares, warrants and options in VSA. If he leaves then Drakewood will be able to acquire his stake at NAV plus 20% for six months after he leaves.
ProBiotix Health (PBX) increased interim revenues by 84% to £1.01m and the loss has been halved to £262,000. The probiotics-based healthcare company is expanding sales in North America and Europe. A North American contract manufacturing deal is being discussed. Operational separation from OptiBiotix should be completed by the end of the year. There was £865,000 in the bank at the end of June 2024.
Skincare treatments developer Incanthera (INC) reported figures for the year to March 2024 showing a steady loss of £1.47m. There was a cash outflow from operating activities of £838,000 and £61,000 in cash at the end of March 2024. There were no revenues during this period. The deal with Cosmetics chain Marionnaud should be generating sales in the near future.
Exchange services provider Aquis Exchange (AQX), which is also quoted on AIM, has been hit by one technology contract not being renewed, because of the client’s trading problems. That will knock £1m off revenues and pre-tax profit in 2024. The other parts of the group all grew revenues in the first half with Aquis Stick Exchange trading volumes 44% ahead. Canaccord Genuity has cut its 2024 pre-tax profit forecast from £6.3m to £4.9m with the rest of the shortfall due to increased investment. The interims will be published on 12 September.
Helium Ventures (HEV) investee company Blue Star Helium has agreed to sell 50% of the Galactica-Pegasus project and other licences in Colorado. There are confirmed helium discoveries of an average of 3% helium. Gross resource estimates are 675 million cubic feet. Blue Star Helium will continue to be operator. Helium One Global (HE1) will pay $1.5m of past costs, plus up to $2.7m on six wells.
Marula Mining (MARU) has received assay results from samples of manganese ore that will be provided to the recently acquired Kilifi manganese processing plant in Kenya. They recorded high grades with an average of 61.95% manganese. The samples were from the Ganze region. The Kilifi plant could generate cash of up to $400,000/month from late 2024. Two further manganese ore supply agreements have been signed. Both are for grades of at least 24% manganese with one supplying 30,000 tonnes over six months and the other 5,000 tonnes over one year.
Higher impairment and fair value adjustments and an inventory write down led to Inqo Investments (INQO) making a loss of R6.3m in the year to February 2024, compared with the previous year’s pre-tax profit of R2.63m.
Hot Rocks Investments (HRIP) has sold its stake in Impact Oil and Gas to Africa Oil Corp at 56.9p/share raising £142,250. In June, £235,000 was generated through a tender offer by Phoenix Digital Assets.
CBD-based treatments developer Ananda Developments (ANA) made a £383,000 loss in the quarter to July 2024. Net assets were £723,000.
KR1 (KR1) had net assets of 71.92p/share at the end of July 2024. The income from digital assets during the month was £805,000.
Equipmake (EQIP) has received an initial order for five zero emission drivetrains from South American bus manufacturer Agrale. This follows the recent trial.
James and Alexandra Pace has a 4.1% stake in Shepherd Neame (SHEP).
AIM
Audio equipment supplier Focusrite (TUNE) says full year revenues will be around £157m, but EBITDA will be lower than expected at around £25m (£27.1m was previously expected) because of higher shipping and logistics costs. Shipping costs are continuing to rise, and promotional spending remains at high levels. New products have been launched, but a major distributor has been cutting stock levels. Net debt has fallen to £15m. The final results will be published in late November.
Antenna technology developer Filtronic (FTC) is trading ahead of expectations and has secured a follow-up order from SpaceX for E-band solid-state power amplifier modules for Starlink satellites. The new order is worth £6.4m and SpaceX has been issued 10.9 million warrants. Cavendish has raised its 2024-25 pre-tax profit forecast from £6.4m to £7.7m.
Helium One Global (HE1) is acquiring 50% of Blue Star Helium’s Galactica-Pegasus project and other licences in Colorado. There are confirmed helium discoveries of an average of 3% helium. Gross resource estimates are 675 million cubic feet. Blue Star Helium will continue to be operator. An initial six development wells are planned for later this year. They could generate an annual income of $2m. Cynosure Capital is subscribing £6.43m at 1.09p/share. That cash will fund $1.5m of past costs, plus up to $2.7m on the six wells. There will also be $2.55m required for capital investment. The extended well test at Itumbula West-1 in Tanzania has flowed at up to 7.6% helium. The well flowed an average of 786 barrels per day.
Audio equipment supplier Focusrite (TUNE) says full year revenues will be around £157m, but EBITDA will be lower than expected at around £25m (£27.1m was previously expected) because of higher shipping and logistics costs. Shipping costs are continuing to rise, and promotional spending remains at high levels. New products have been launched, but a major distributor has been cutting stock levels. Net debt has fallen to £15m. The final results will be published in late November.
Retailer Quiz (QUIZ) reported a 11% decline in revenues to £82m in the year to March 2024. There was a swing from a pre-tax profit of £2.3m to a loss of £6.7m after exceptional costs of £1.5m. Sheraz Ramzan was appointed chief executive at the end of the period. He is targeting the core customer based and updating the brand. He is also improving service. Talks are ongoing with founder Tarak Ramzan for the provision of a £1m loan. Revenues in the first four months of the current year are 11% lower at £27.3m. Trading remains difficult.
Oxygen enrichment technology developer Belluscura (BELL) is increasing sales, but it has reduced its 2024 guidance to $8m-$10m, depending on the timing of the launch of DISCOV-R in the second half. Dowgate had expected revenues of $16m and it has cut the estimate to $9m. It is sticking with $30m for 2025 revenues, which would be enough to be profitable, but this appears optimistic. More cash will be required in the second half, so that sales can ramp-up faster.
Shield Therapeutics (STX) iron deficiency treatment ACCRUFeR has been approved by the authorities in Canada. It is the only oral iron therapy approved as a prescription drug for adults with anaemia. This sparks a £250,000 milestone payment from Canadian partner Kye Pharmaceuticals.
Wine supplier Naked Wines (WINE) reported a 13% annualised dip in revenues to £290m, while underlying operating profit fell by two-thirds to £5m. That was before a £13m inventory provision. The company is still surplus stocks. Net cash was better than guidance and doubled to £19.6m. First quarter trading is in line with expectations. Guidance for 2024-25 indicates revenues of £240m-£270m and operating profit before inventory losses of £3m-£8m. Dominic Neary has been appointed finance director.
Primorus Investment (PRIM) is subscribing 18.1 million shares in Pri0r1ty AI for £300,460 to help fund a software roll out. Standard list shell Alteration Earth (ALTE) has non-binding heads of terms to acquire Pri0r1ty AI and move to AIM. Primorus Investment directors Rupert Labrum and Matthew Beardmore own 45.8% of Alteration Earth.
MAIN MARKET
Cybersecurity company Narf Industries (NARF) has gained a $1.3m contract for the implementation of social engineering threat intelligence for the US Air Force Platform One Iron Bank project. This is a repository of pre-approved software. A cash injection is required.
Cadmium-free quantum dots developer Nanoco (NANO) has suspended the joint development agreement with ST Microelectronics. There are also unlikely to be revenues from another sensing programme. The joint development agreement with STMicroelectronics involved a two-year programme to optimise a second-generation sensing material. Nanoco says that it met all the development milestones. The decision is apparently due to a strategy change and end of project terms with the customer. Nanoco will also try to remove any obstacles to use the expertise developed in other opportunities.
Andrew Hore
