NEX EXCHANGE
Healthperm Resourcing Ltd (HPR) has won a contract from Medway NHS Foundation Trust to supply up to 400 nurses. New research from Edison Investment Research forecasts a 2018 loss of £2.3m for the healthcare staffing company, falling to £600,000 in 2019. Initial revenues were generated last year and they could reach £2.8m in 2019. As revenues grow margins should improve. Net debt could be more than £5m by the end of 2018. The company’s loan notes, which are being subscribed for in monthly tranches by the majority shareholder, are repayable at the end of 2019.
Barkby Group (BARK) joined NEX in June after reversing into former AIM company Sovereign Mines of Africa. The gastropubs operator generated revenues of £950,000 and an underlying pre-tax profit, before flotation costs, of £133,000 in the three months to July 2018. The Turf to Table branded outlets continue to outperform expectations. The company is debt free and ready to acquire additional properties.
Crossword Cybersecurity (CCS) has appointed an unnamed nominated adviser ahead of a prospective flotation on AIM in the next few months. Hybridan is already the company broker. SaaS-based cyber software provider Rizikon Assurance is making progress and other products are in development.
Halal food-based certification services provider DagangHalal (DGHL) increased its revenues from MYR4.64m to MYR6.46m in 2017. There was a cash outflow from operating activities of MYR9.44m and net cash was MYR11.6m at the end of 2018. The company has subsequently settled the dispute with its former chief executive with a payment of MYR500,000.
Blockchain ventures investor and adviser Coinsilium Group Ltd (COIN) has entered into a strategic partnership with Universal Reward Protocol, which is developing a protocol so that retailers and shoppers can interact, for a €20m token sale. Coinsilium has also agreed an advisory partnership with Y Ventures subsidiary, Luminore 8.
Positive Healthcare (DOC) has asked for trading in the company’s 7% bonds 2021 to be suspended. Irregularities have been identified at the principal operating subsidiary and Positive is unable to publish its accounts or pay the next instalment of interest on the bonds.
Etaireia (ETIP) has completed the sale of a property in Girvan for a loss of £12,000. The company acquired the property for 25 million shares and £35.000 in cash and has received £47,000 in cash plus £1,000 contribution to legal costs. The £35,000 cash consideration is yet to be paid.
PCG Entertainment (PCGE) had $1.4m in the bank at the end of March 2018. Since then, the settlement of an equity share agreement cost $156,000. Litigation with a former chief executive, which scuppered acquisition plans, has been completed with a settlement of $286,000. PCG is in talks with a potential gaming company acquisition.
Panther Metals (PALM) has completed its review of technical information on three exploration tenements in north west Ontario, where it holds an option to acquire. Several high grade gold veins and base metal occurrences have been identified. A detailed exploration programme is being designed.
AIM
Sinclair Pharma (SPH) has agreed a 32p a share cash offer from Huadong Medicine Co, but it is still subject to pre-conditions relating to the Chinese authorities.
Watkin Jones (WJG) has exchanged contracts for a 599 bed student accommodation site from Kelaty Propco. This project should be completed by September 2021. It has also secured another deal with Kelaty for a 300 residential apartment scheme in the same area, which will boost the build-to-rent pipeline.
One Media IP Group (OMIP) is planning to raise £2.9m via a share placing at 6p a share and up to £6m from a loan note issue to the Business Growth Fund. Lord Grade and Ivan Dunleavy have each invested £37,500 in new shares. The intellectual property owner intends to use the cash to acquire music publishing rights, artists recordings and songwriters’ rights.
Westmount Energy Ltd (WTE) has made a £810,000 investment in JHI Associates Inc, which is focused on exploration in the Guyana-Suriname basin, where it has a 40% carried interest in the Canje offshore block. This investment represents 56% of Westmount’s gross assets.
Otus Capital Management and Andrew Gibbs have nearly doubled their stake in Van Elle (VANL) to 10.2%. Mark Cutler joined the piling company as chief executive last month.
Polarean Imaging (POLX) has commenced the recruitment of patients for the phase III clinical trial in the US to demonstrate the non-inferiority of the company’s drug / device combination. The medical resonance imaging technology using hyperpolarised 129-xenon gas only has to show that it is as good as the current treatment. Eighty patients will be recruited. Some will be candidates for lung resection and others for lung removal. A pilot programme has helped to design the study, which could be finished before the end of 2019. Polarean has enough cash to make progress with the trial but will need more finance to reach completion.
Positive initial results from an oncology drug study have given the Midatech Pharma (MTPH) share price a boost. This is the first in-human study for MTD201 Q-Octreotide, a sustained-release treatment for carcinoid cancer and acromegaly. The study shows a safe, well-tolerated and effective sustained release of the drug.
Filtronic (FTC) has won a second order, worth $1.1m, for its MassiveMIMO technology, which helps mobile networks use their spectrum efficiently. It is still early days for the technology, but this is a positive sign and will offset the decline in older product ranges.
CCTV and security technology supplier Synectics (SNX) has secured a large contract with Serco, covering six custodial sites. This will help to underpin the current forecasts.
Altona Energy (AHR) has signed an exclusive licence for pyrolysis technology in Australia and China with GCAT. This will enable Altona to construct plants in the two countries and Altona will receive 95% of the net revenues generated by the technology when used in the treatment of waste.
Thor Mining (THR) says that metallurgical test work shows 78% copper recovery at the Kapunda copper project when using glycine as a leaching agent. Thor is earning up to 60% of Kapunda.
FIH Group (FIH) has traded well in the first five months of its financial year, thanks to a strong performance by arts logistics business Momart, which has opened a new facility. The Gosport ferry and Falkland Islands activities are trading in line with expectations. A small reduction on last year’s pre-tax profit of £3.2m is still anticipated.
Starcom (STAR) reported a 61% increase in interim revenues to $3.1m. There has also been a change in mix from lower margin to higher margin products. The security and tracking products developer is still losing money and is on course for a small, but much reduced, full year loss. The business is second half weighted so the outcome is heavily dependent on trading in the last few months of the year.
MAIN MARKET
BATM (BVC) is set for a good second half. The biomedical and networking divisions have both been winning contracts and a significant amount of the benefits of these wins will come through in the second half. The most high profile contract win is the joint development deal with ARM. The first deal under this agreement is with FatPipe Networks, which develops technology for the optimisation and security of wide area networks. Longer-term, BATM’s SDN/NFV technology could be important in the development of driverless vehicles and other new technologies. BATM has net cash of nearly $17m.
Interim revenues at Ross Group (RGP) declined by 28% to £68,000 but it still managed to make a pre-tax profit of £10,000. The search continues for a suitable acquisition. Large shareholders have lent £6.07m to Ross.
Telecoms services provider Toople (TOOP) has won a contract with a reseller worth at least £3.5m over a three year period. Group gross margins are running at around 15%. That suggests a gross profit of £525,000 over the period of the contract, although the gross margin on this business could be higher. To put that in perspective, chief executive Andrew Hollingworth is entitled to a salary of £120,000, so this contract could cover his salary and some of the other directors’ salaries. Toople needs further wins to reach breakeven. The share price has more than trebled since the contract news, just in time for another share issue to raise cash to keep the business going.
Andrew Hore