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Quoted Micro 24 April 2023
AQUIS STOCK EXCHANGE
Valereum (VLRM) has sold Bitcoin mining assets to Aquis new entrant Vinanz (BTC) in return for 27.3 million shares at 3p each. This gives Valereum a 23.5% stake in Vinanz, which plans to become a Bitcoin mining company with facilities operated by third parties in the US and Canada. The company will also consider mining other cryptocurrencies. The Vinanz share price ended the week at 3.5p. There was one trade of 30,000 shares at 3.26p a share.
E-commerce technology provider Samarkand (SMK) says 2022-23 revenues will be around £17m and the loss has been reduced. VSA forecasts a small positive EBITDA in 2023-24.
SulNOx Group (SNOX) says 2022-23 revenues more than quintupled to £203,000. There was £525,000 in cash at the end of March 2023.
Equipmake Holdings (EQIP) has agreed a partnership with H55 to develop electric aircraft technology. Switzerland-based H55 will use the company’s electric motors in its two-seater electric trainer for pilot training.
In the first three months of 2023, Guanajuato Silver (GSVR) reported record quarterly silver production of 938,000 ounces equivalent. VSA forecasts full year production of 4.7 million ounces of silver equivalent.
Goodbody Health Inc (GDBY) has decided to leave Aquis and the share price slumped 44.6% to 0.9p. It also reported a fall in full year revenues from £17.1m to £10m and an increased loss of £4.9m.
Tap Global Group (TAP) has increased revenues and users since reversing into an Aquis shell earlier this year. First quarter revenues were £1.2m, compared with £250,000 in the corresponding period last year. The regulated cryptocurrency app company increased users by 30% to 144,305.
Coinsilium Group (COIN) has raised £258,000 at 1.5p a share, with warrants attached that have an exercise price of 3p.
Chris Akers has raised his stake in Semper Fortis Esports (SEMP) from 4.57% to 19.5%. The share price jumped by one-fifth to 0.15p. The April 2021 floatation price was 1p. Chapel Down Group (CDGP) finance director Rob Smith bought 407,462 shares at an average price of 34.7p, taking his stake to two million shares. Hadron Capital, which was founded by Fenikso (FNK) non-exec director Marco D’Attanasio, has acquired 1.2 million shares at 0.6p each in Fenikso.
AIM
Sureserve (SUR) is recommending a bid from Cap10 4NetZero Bidco, which is a vehicle for private equity company Cap10 Partners. The 125p a share bid values Sureserve at £214m and that is the highest share price since the company floated as Lakehouse in 2015. Cap10 believes that taking the compliance and energy services provider company private will make it easier to focus on long-term goals.
Proton therapy cancer treatment developer Advanced Oncotherapy (AVO) announced a strategic review. A Nasdaq listing is being considered, which could involve selling the business to an existing Nasdaq company. There are no current discussions and cash is running out. Management hopes to obtain additional working capital by issuing more loan notes. That could extend the company’s cash until the end of May.
Pizza restaurants franchiser DP Poland (DPP) increased first quarter like-for-like sales in Poland by 19% and in Croatia by 16%. There are signs that food inflation is easing. However, additional investment in TV marketing will mean that the company will continue to lose money in 2023.
Business process outsourcing firm iEnergizer (IBPO) plans to cancel is AIM quotation and a general meeting will be held on 16 May to gain shareholder approval. As EICR (Cyprus) owns 82.7% that is a formality. The lack of free float has hampered liquidity and the costs of the quotation outweigh any benefits. Management expects to leave AIM on 26 May. There are plans for a matched bargain facility.
Unikmind has increased its bid for cyber security software provider Kape Technologies (KAPE) from 285p to 290p ($3.60) a share and some of the vendors of past acquisitions have agreed to accept.
Property bridging loans provider Vector Capital (VCAP) reported a slightly better than expected pre-tax profit for 2022. Management, though, is being cautious about lending this year. There was a £200,000 provision for doubtful debts, but the pre-tax profit was still £100,000 better than forecast at £2.8m. The total dividend is 2.53p a share. The average loan book was 27% higher than the previous year. This year the loan book could fall because of higher standards for new lending.
Woodbois (WBI) says that the lender to its Denmark-based Woodgroup timber trading subsidiary has given notice on a $6m lending facility. The facility provided by Sydbank is fully drawn, but there is also $3.1m in cash deposits with Sydbank, which wants a refinance plan by the end of May. Premier Miton subsequently sold its 9.96% stake.
Environmental and life sciences technology company DeepVerge (DVRG) says that revenues have been incorrectly recognised. That means that the 2022 figure will be 45%-50% lower than the £17.2m previously flagged. Some of the expected revenues have been delayed while others will not be recognised. The order book is more than £10m and this will be recognised in 2023 and 2024. There is £1m in the bank and more funding will be required.
Xeros Technology (XSG) is winning new business, but cash is declining. The 2022 figures were in line with expectations and cash was £6.5m. finnCap believes that the cash should last until the second quarter of 2024. That is despite the 2023 loss forecast being increased to £4.8m. The progress of the launch of a domestic washing machine using Xeros filtration technology by a partner has been slower than hoped. Breakeven could still be achieved late in 2024.
Dekel Agri-Vision (DKL) says that the quantity and quality of raw cashew nuts acquired for its new facility are in line with expectations and the pricing is better than anticipated. Average production rates have increased to 10 tonnes/day.
Tertiary Minerals (TYM) has commenced its latest exploration programme for the Lubuila copper project in Zambia following the ending of seasonal rains.
MAIN MARKET
Interim revenues at J Smart (Contractors) (SMJ) slumped from £5.16m to £2.12m, while pre-tax profit dived from £6.33m to £260,000, although the corresponding period included a £6.06m disposal gain. The interim dividend is 0.96p. Net assets are £123.7m, but this would have been lower if there had been a property revaluation at the end of the period.
Fourth quarter revenues for kitchenware retailer ProCook Group (PROC) were 10% lower than the same time last year, with high street sales flat – a new store was opened in Kingston-upon-Thames. There was a 65% increase on the previous quarter. Full year revenues were 10% lower at £62.3m and ProCook will breakeven.
Andrew Hore
Quoted Micro 3 April 2023
AQUIS STOCK EXCHANGE
Aquis Stock Exchange owner Aquis Exchange (AQX) reported an increase in revenues from £17.2m to £19.9m in 2022. The pre-tax profit improved from £3.6m to £4.5m. that reflects the operational gearing. All three parts of the business were profitable. In the cash of the Aquis Stock Exchange this was probably the first time it has made a profit in any of its incarnations. This was on the back of a 48% increase in issuer fees because of the 22 new companies joining the market.
Wine maker Chapel Down Group (CDGP) increased underlying pre-tax profit by 22% to £1.7m in 2022. Singer expects this profit level to be maintained in 2023 before more than doubling to £4m by 2026. Net cash is £3.3m. NAV is 38p a share.
Arbuthnot Banking Group (ARBB) reported better than expected 2022 results. Pre-tax profit jumped from £4.6m to £20m and the dividend was raised by 11% to 42p a share. The loan book increased by 11% to £2.2bn. NAV is 1411p a share.
Good Energy (GOOD) 2022 revenues jumped from £146m to £248.7m as energy prices increased, while the energy supplier returned to profit. There was net cash of £19m at the end of 2022. The book value of Zap-Map is £13m. Management is seeking to expand its energy efficiency services operations.
Ananda Developments (ANA) published a medicinal cannabis research round-up. The sublingual spray shows promising results in diabetes type 2 patients. There has also been progress in explaining the mechanisms of action of CBD alleviating bladder pain syndrome. Shareholders voted for the acquisition of MRX Global.
A £289,000 interim cash outflow at Tectonic Gold (TTAU) was partly offset by the £101,000 of proceeds of the sale of shares in Kazera. There was net cash of £46,000 at the end of 2022.
Visum Technologies (VIS) made an interim loss of £457,000 on revenues of £120,000. The first US location for its theme park video technology was opened in November. Debt financing has been secured for rides and attractions. Existing sites in Europa Park and Linnanmaki will reopen in April. The financial position is expected to improve.
Valereum (VLRM) has sold shares in subsidiary Valereum Collections raising £70,500 at 625p a share. Valereum retains a 99.8% stake in the company, which will operate the group’s NFT programme. The Valereum share price dived 23.6% to 5.25p, which is a new low for the year.
KR1 (KR1) has invested $500,000 in Hydra Ventures, which supports and incubates decentralised autonomous organisations, in return for 5,000 HYDRA tokens. This is part of a $10m fundraising.
Capital for Colleagues (CFCP) had net assets of 77.78p a share at the end of February 2023. There are 13 companies in the investment portfolio. Castlefield Investment Partners has reduced its stake from 45.9% to 42.1%.
Invinity Energy Systems (IES) has made a sale of a 1.5MWh energy storage system to STS Group for a solar storage project in Hungary.
ChallengerX (CXS) had £92,000 in cash at the end of 2022, and a £250,000 subscription announced in February has yet to be received. The development of the company’s marketing platform requires more money.
RentGuarantor Holdings (RGG) has entered into an agreement with Vorensys for the use of the RentGuarantor services. Vorensys provides tenant referencing services.
CRUSHMETRIC Group Ltd (CUSH) has issued an unsecured convertible bond with a principal of S$250,000 (£151,000), which has a coupon of 10% and matures in February 2026.
SuperSeed Capital (WWW) boss Mads Jensen bought 3,000 shares at an average price of 83p each.
Shares in Asimilar (ASLR) fell ahead of the trading suspension on 3 April due to the accounts not being published in time.
AIM
Scottish gold producer Scotgold Resources (SGZ) has been hit by falling ore grades at the Cononish gold mine. The average gold grade in January was 5.65g/t. compared with an estimated grade of 7.35g/t. A different part of the mine is being developed and the production process is being changed. Shore has its forecasts under review because of concerns about the financial position of the company.
Daisy Group is making an agreed bid for ECSC (ECSC), which values the cyber security services provider at £5.4m. The bid is 54.02p for each share in cash. ECSC joined AIM at the end of 2016, when it raised £5m at 167p a share.
Cameroon-focused oil and gas company Bowleven (BLVN) had $2.45m in cash and investments at the end of 2022 and it is considering its options for raising more money. Bowleven will need cash to invest in the Etinde project, although there will not be progress there until Perenco completes the purchase of New Age’s operating interest. Bowleven’s interest in Etinde is estimated to be worth more than $150m.
Footwear retailer Unbound Group (UBG) has received a 10.5p a share potential offer from WoolOvers Group. There would also be a contingent value right that would give shareholders the proceeds of any insurance claim related to business interruptions due to Covid lockdowns. Unbound management says it would be likely to accept this offer. The recent fundraising was at 15p.
Building and architecture software supplier Eleco (ELCO) reported 2022 results that were the first 12 months of an 18-month period where the switch to a focus on SaaS is holding back revenues, which dipped 3% to £26.6m. Pre-tax profit was better than expected at £3.6m and net cash was £12.5m. The final dividend is 0.5p a share with a special dividend of 0.58p a share on top. This year’s pre-tax profit is expected to be £3.8m.
Sustainable fuels developer Velocys (VLS) has risen on the back of the latest UK government consultation paper on sustainable aviation fuel, which identifies the Fischer Tropsch process as part of the main technology. This can be supplied by Velocys, which has active projects in the UK and US.
Video games developer tinyBuild (TBLD) is investing in new games, so there has been a reduction in net cash. However, the strong back catalogue means that the business is resilient and not dependent on one game becoming a hit.
MAIN MARKET
Used car finance and property bridging loans provider S&U (SUS) reported full year results in line with expectations. In the year to January 2023, underlying pre-tax profit dipped from £47m to £41.4m, after higher bad debt provisions of £13.9m. Even so, the provision is still relatively low. Used car prices continue to rise, but at a lower rate than early last year. Net debt was £192.4m at the end of January 2023, compared with committed facilities of £210m. The dividend was raised to 133p a share.
Standard list shell Marwyn Acquisition Company II (MAC2) has appointed former Curtis Banks Group chief executive Will Self as the chief executive – pensions division. This year, AIM-quoted Curtis Banks was acquired for 350p a share in cash by Nucleus Financial Platforms, which valued the SIPP administrator at £242m. Will Self will lead the search for suitable financial services acquisitions. The strategy has been further refined to include themes including changing population demographics, intergenerational wealth transfer, social and family support and concentration of wealth.
Andrew Hore
Quoted Micro 20 March 2023
AQUIS STOCK EXCHANGE
MBH Corporation (LON: MBH) joined the Access segment of the Aquis Stock Exchange on 13 March. The shares have previously been traded on the Frankfurt Stock Exchange and the Dusseldorf Stock Exchange. Trading started on Aquis at 7p (5p/9p) and it stayed at that price all week. There were no trades. MBH has subsidiaries in a wide variety of sectors. They include, education, construction, transport, health, engineering, property, leisure and food.
Capital for Colleagues (CFCP) is investing £1m in A ordinary shares in automotive engineering and manufacturing start-up Morris Commercial, as part of an £8m investment round. The investment is in three tranches with an initial outlay of £500,000. The full investment will be made by the end of 2023. The initial product is the Morris JE electric van, which is based on the design of the Morris J-Type van.
Quantum technology investment company Quantum Exponential Group (QBIT) welcomes the Chancellor of the Exchequer’s plan for quantum technology. There will be investment of £2.5bn over ten years. This should help to increase investor interest in quantum.
Chapel Down Group (CDGP) believes that changes to UK duties are positive, because of the support for English sparkling wine producers. Chapel Down, along with Shepherd Neame (SHEP) have signed a partnership deal with The Boat Race, which happens on 26 March.
Macaulay Capital (MCAP) has taken over the management of the unquoted portfolio of Chelverton Asset Management.
Kasei Holdings (KASH) is still waiting for £350,000 from the February 2023 fundraising. Management hopes that this cash will be received in the next few days.
Coinsilium Group (COIN) is acquiring the advisory business and certain intellectual property assets of Tokenomi for £116,500 in cash and shares. There are four retained Web3 blockchain project clients with a further ten prospective clients. Revenues could be £551,000 over the next 12 months.
IamFire (FIRE) has subscribed a further £200,000 for convertible loan notes in WeShop, taking the total invested to £2.7m. The total amount invested in WeShop is £6.7m and there is the right to subscribe for a further £1.05m of loan notes. The conversion price is 200p. John Lewis and Sports Direct have recently become affiliated to WeShop.
Altona Rare Earths (ANR) has ended trading on Aquis. Trading starts on the standard list on 20 March. Forbes Ventures left Aquis on Friday, although it intends to acquire a litigation financing business and return to the quoted arena.
Silverwood Brands (SLWD) is still experiencing opposition to the transfer of shares in skincare products supplier Lush. Silverwood Brands holds the rights to the shares even if ownership is not registered.
Ananda Developments (ANA) has raised additional subscription funds at 0.3p a share, taking the total to £427,000.
Res Privata NV has sold its 3.83% stake in NFT Investments (NFT). Mark Horrocks has increased his shareholding in Lift Global Ventures (LIFT) from 7.1% to 11%.
EDX Medical (EDX) non-executive chairman Jason Holt bought 400,000 shares at 3025p each. Incanthera (INC) chief executive Dr Simon Ward has subscribed £115,000 for shares at 6.95p each.
Guanajuato Silver Company Ltd (GSVR) has secured a $5m silver and gold pre-payment facility, which replaces the current facility.
Snacks manufacturer S-Ventures (SVEN) says the audit for its figures for the year to September 2022 will last until the end of April, so trading in the shares will be suspended on 3 April.
Essentially Group (ESSN) joined Aquis on 17 March. The brief announcement claims that the prospectus is on the company’s website, but it is impossible to find.
AIM
Hurricane Energy (HUR) has agreed a bid from Prax Exploration & Production, which values the oil and gas producer at up to £249m. There will initially be a 3.32p a share transaction dividend and cash consideration of 0.83p a share, totalling 4.15p a share. There is then a supplementary dividend of 1.87p a share. Shareholders will also receive a deferred consideration unit worth up to 6.48p a share. The deferred consideration is based on 17.5% of future net revenues earned by Hurricane between 1 March 2023 and 31 December 2026. The deferred consideration will be paid twice a year in arrears.
MTI Wireless Edge (MWE) grew revenues of each of its three divisions and two of them made a higher profit contribution. An initial contribution from communication and monitoring systems developer PSK WIND Technologies, offset the loss of Russian distribution business. In 2022, group revenues improved from $43.2m to $46.3m, while underlying pre-tax profit rose from $4.04m to $4.32m. The total dividend is 3 cents a share. Net cash was $8.14m at the end of the year. The profitability of the Antennas division is recovering.
Cloud-based secure payments technology provider PCI-PAL (PCIP) grew interim revenues by one-third to £7.3m. North American growth was particularly strong. Total annualised contract value is £14.7m. The full year loss is likely to be around £2.2m. Legal costs due to the patent dispute meant that net cash fell to £1.9m, but it has risen since December. There should be no problem with the accounts at Silicon Valley Bank.
Digital coupons and loyalty technology provider Eagle Eye (EYE) reported the expected interims and says that full year results will be better than expected. The pre-tax profit forecast has been edged up from £3.5m to £3.8m and the 2023-24 figure has been edged up to £5m. Net cash could reach £5.3m at the end of June 2023. There should not be any problems arising from the Silicon Valley Bank collapse, although there are still cash deposits in the bank.
Verditek (VDTK) has signed an exclusive supply agreement to supply solar panels to building and roofing products supplier Lindab Profil AB. They will be sold in the Nordic and eastern European markets. The exclusivity depends on the sale of panels of 850kw in 2023.
Cordel (CRDL) has won an important contract with Amtrak in the US. The six-and-a-half year contract is valued at $6.7m. There will be $1m recognised in 2022-23 and $2m in 2023-24, with rest coming in the remaining time of the contract. Cordel’s technology will be used to capture and manage data on clearances of surrounding rail infrastructure.
Redx Pharma (REDX) merger partner Jounce Therapeutics has received an unsolicited offer from Concentra Biosciences. Cancer treatments developer Redx Pharma recently announced the merger with Jounce Therapeutics and the AIM company’s shareholders would own 63% of the enlarged group.
Purplebricks (PURP) has received a possible offer from Strike Ltd, although it is not yet part of the formal sale process and has not entered into a non-disclosure agreement.
Reabold Resources (RBD) has been approached by Kamran Sattar on behalf of an affiliate of Portillion Capital which could lead to a bid at a 10% premium to the previous day’s closing price of 0.2035p. The board believes this offer undervalues the oil and gas investment company. It recently sold the Victory gas discovery to Shell and intends to return £4m to shareholders.
Circle Property (CRC) announced a return of capital through a B share issue with a second distribution to follow. The company has nearly completed the sale of its property portfolio. The first distribution of 158p a share (£46.2m) will be on 21 March. A second distribution of 58p a share should be made in April. There will be a much smaller distribution when the final disposal is completed. An incentive payment of £620,000 is being paid to each executive.
Digital mental health company Kooth (KOO) has won a significant contract in California covering 13-25 year olds. Services will be provided to the Behavioural Health Virtual Services Platform, and they will launch in January 2024. Specific terms are still to be finalised, but there should be a material impact on annualised recurring revenues from 2024.
Condor Gold (CNR) is entering the end of the first phase of the process to sell the La India gold project in Nicaragua. There are three formal expressions of interest, including two non-binding offers, with more likely to be received. The project requires $105.5m of investment and has an estimated NPV (5%) of $86.9m.
MAIN MARKET
Structural steel supplier Severfield (SFR) is expanding in Europe through the acquisition of steel fabrication company Voortman Steel Construction Holding for €24m. The Netherlands-based company will provide greater access to the northern European market.
Data integrity and banking integration software provider Gresham Technologies (GHT) is accelerating the growth of its Clareti software. Group revenues grew from £37m to £48.7m in 2022. That was helped by currency movements and a full year contribution from post-trade processing software supplier Electra, but there was still strong organic growth. The fastest growth was in the US. Pre-tax profit improved from £4m to £6.9m. Singers forecasts a 2023 pre-tax profit of £7.4m. with flat earnings due the corporation tax rate rise, increasing to £9.6m next year.
Harwood Capital has increased its stake in RM (RM.) from 8.88% to 10.4%, including 9.18% held by Rockwood Strategic (RKW). Theodore W King’s stake has risen from 7.36% to 8.25%.
Andrew Hore
Quoted Micro 30 January 2023
AQUIS STOCK EXCHANGE
Aquis Stock Exchange owner Aquis Exchange (AQX) says 2022 trading was in line with expectations. The 2022 results will be published on 30 March.
Electric vehicle drivetrain technology developer Equipmake Holdings (EQIP) has raised £6.235m at 5p a share. That was slightly more than initially indicated. A lease is being secured on additional premises. The contracted order book is worth £8.6m. Interim revenues were £1.05m and the full results will be announced on 15 February.
Invinity Energy Systems (IES) says existing contracts underpin growth in in 2023. There are £22m of vanadium flow battery systems due for delivery in 2023 and a further £7.4m order book for 2024. There was £5.1m of cash in the bank at the end of 2022. Pilot projects with Siemens Gamesa should begin in the summer and a next generation product should be available in the first half of 2024.
Cadence Minerals (KDNC) has completed the sale of its joint venture interest in Yangibana rare earths project for A$9m of shares in ASX-listed Hastings, which is equivalent to 1.9%. Evergreen Lithium is expected to list on the ASX on 10 March – Cadence Minerals owns 15.8 million shares, which are expected to be valued at A$3.96m.
A full year update from Chapel Down Group (CDGP) shows string growth in sparkling wine sales. Group revenues were 10% ahead at £15.6m with momentum increasing in the second half. Margins should have improved.
Ace Liberty & Stone (ALSP) reported a small dip in interim pre-tax profit to £731,000, partly due to additional charges relating to a property in Sunderland. There is available cash of £9.5m for further property investments and contracts have been exchanged on a Dorchester property.
Helium Ventures (HEV) had £157,000 in cash at the end of October 2022. The proposed acquisition of Vestigo Technologies, which supplies tracking software, continues to be progressed.
Goodbody Health (GDBY) is partnering with Datar Cancer Genetics to offer the Trucheck circulating tumour cell screening service.
Tap Global (TAP) has signed up its first client for its crypto app. Global cryptocurrency exchange Bitfinex will use the service to offer clients a prepaid Mastercard and convert cryptocurrency to Euros.
SuperSeed Capital (WWW) says the SuperSeed II LP has invested in eight SaaS companies and a further investment should be made in the first quarter of 2023.
RentGuarantor Holdings (LON: RGG) is licencing its software to Clever Student Lets to use on its student letting platform.
Guanajuato Silver Company Ltd (GSVR) has published fourth quarter production figures. Silver output was 401,000 ounces in the period, while gold output was 4,000 ounces. Full year production was one million ounces of silver and 11,000 ounces of gold.
AQRU (AQRU) has launched its lending pool via subsidiary Accru Finance. This allows investors to generate yield from tax credit receivables originating from the IRS in the US. Annual returns of up to 10% are indicated.
Good Energy (GOOD) was one of three energy suppliers criticised for not providing enough help to their prepayment customers to claim the £400 of support vouchers from the government.
Marula Mining (MARU) says that initial deliveries of 1,000 tonnes of high-grade lithium ore from the Blesberg mine will commence shortly and take four weeks. Processing of existing stockpiles is ongoing, while site infrastructure is upgraded.
Chris Akers continues to build up his stake in Asimilar Group (ASLR) and it has reached 8.01%.
AIM
Spectacles supplier Inspecs (SPEC) is expected to report slightly better than expected full year figures. The figures are still much worse than expected prior to the previous warning, where destocking and poorly performing businesses led to a significant downgrade. Sales were flat at $246m, although there was growth before currency movements. Pre-tax profit is set to more than halve from $17.9m to $7.7m.
Battery technology developer Ilika (IKA) has been awarded a UK government grant of £2.8m for taking a leading role on a 24-month Faraday Battery Challenge in collaboration with BMW and Williams. This will further the development of Ilika’s Goliath battery, which is designed to be cost-effective and recyclable. There were no surprises in the interims earlier in the week. In the six months to October 2022, revenues improved from £179,000 to £204,000, which all came from UK grants. Net cash outflow from operating activities increased from £2.19m to £3.84m. Net cash is £17.8m. The Stereax M300 miniature battery should be launched by the summer.
Results from aerospace composites kits supplier Velocity Composites (LON: VEL) were as expected following the trading statement at the end of 2022. In the year to October 2022, revenues were 22% higher at £12m, while the loss was flat at £1.5m. A further loss is forecast for this year, while the US deal with GKN Aerospace builds up later in the year. A full year contribution from the US GKN business should push the company into profit.
Fire Angel Technology (FA.) reduced its loss last year, even after higher procurement costs, and it expects significantly enhanced margins this year. The home safety products supplier increased 2022 revenues by nearly one-third to £57.5m. A further reduction in loss is expected this year with helpful currency movements providing potential for further upside.
Healthcare data analysis provider Diaceutics (DXRX) beat expectations with revenues 44% higher at £20m, helped by currency movements, and margins are being maintained despite inflationary pressures. Diaceutics has secured two agreements with top ten global pharma companies. The order book is worth £15.6m. Investment in data and technology is being increased.
Following the departure of the recently appointed chief executive Inland Homes (INL) has sold its greenfield strategic land portfolio. There was a £3.5m profit on the sale that raised £9.5m in cash. There will also be fees generated for assisting the purchaser. Despite the disposal, net debt has risen to £100m and trading conditions have deteriorated. The 2021-22 loss is expected to be £91m and NAV has fallen to 40p a share.
Fiinu (BANK), which offers the Plugin overdraft to individuals with accounts with other banks, has completed the core banking platform configuration and its testing. General testing of the service is continuing. There is £35m-£40m required to fund the bank and a staged fundraising will commence before Easter.
Piling contractor Van Elle (VANL) had already flagged the interims, but the pre-tax profit was still slightly higher than expected at £3.3m. The interim dividend is 0.4p a share. Full year pre-tax profit forecasts have been maintained at £5.2m, although next year’s figures has been trimmed to £6m.
Gaming Realms (GMR) has signed a brand licensing deal with Tetris Inc, the holder of the rights to the eponymous falling blocks game. Tetris Slngo mobile will be launched globally before the end of 2023.
MAIN MARKET
Oxford Cannabinoid Technologies (OCTP) is due to commence a phase 1 clinical trial for its lead programme OCT461201 for the treatment of chemotherapy induced peripheral neuropathy with the interim results due in the second quarter. Management says it has enough cash to get it into the first quarter of 2024. GHS Capital has reduced its stake to below 3%.
Motor dealer Pendragon (PDG) says fourth quarter trading is slightly ahead of expectations and this has offset inflationary pressures. Underlying full year pre-tax profit should be more than £57m, down from £83m for the previous year. Net debt is around £23m. There continue to be constraints in the supply of new vehicles.
One Heritage Group (OHG) expects a further impairment charge of between £750,000 and £1.25m. Martin Crews is being replaced as development director by Paul Westhead on an interim basis. The major shareholder loan facility has been raised from £9.5m to £11m.
Mode Global Holdings (MODE) is winding down its operations because it was unable to raise the cash it required to grow the business.
Andrew Hore
Quoted Micro 28 November 2022
AQUIS STOCK EXCHANGE
One Health Group (OHGR) joined the Apex segment of the Aquis Stock Exchange on 24 November. The NHS-funded medical procedures provider raised £1.56m at 150p a share, giving One Health Group a market capitalisation of £15.1m. The share price ended the week at 156.5p. Demand for the company’s services should continue to be strong as the NHS tries to reduce the backlog of operations. In the six months to September 2022, revenues were £9.7m. The plan is to pay 50% of post-tax profit in dividends. Net cash was £3.68m at the end of March 2022. The additional cash will provide working capital.
Electric vehicle drivetrains developer Equipmake Holdings (EQIP) edged up revenues by 3% to £3.71m in the year to May 2022. A much greater proportion of the revenues came from commercial and production contracts. The loss was more than trebled to £5.2m. There was still £1.88m of cash in the balance sheet and since then it raised £10m gross at 4.25p a share in its Aquis flotation. A partnership with an electrical aerospace specialist will generate initial orders for prototypes worth £400,000.
VSA Capital (VSA) has reiterated that it will report a first half loss. The Aquis corporate adviser is holding a showcase event for Aquis companies on 29 November.
Inqo Investments (INQO) has sold its investment in Zambia-based honey producer Bee Sweet Honey There was a ZAR950,000 loss on the investment.
Guanajuato Silver (GSVR) has made a partial early repayment of its silver and gold loans using 97,000 ounces of silver and 846 ounces of gold. In the three months to September 2022 produced 329,297 ounces of silver and 3,226 ounces of gold, while lead and zinc sales have become significant. The trend of quarter-on-quarter production increases is expected to continue.
Clarify Pharma (PSYC) has acquired £250,000 stakes in Nasdaq-listed companies Atai Life Sciences Inc (ATAI) and Compass Pathways (CMPS). Both companies are involved in developing psychedelic treatments.
AQRU (AQRU) is reducing the number of employees by three-quarters to save money. Monthly overheads will fall by 65%. Yields on the company’s cryptocurrency app are being reduced.
Cooks Coffee Company (COOK) has issued up to NZ$2m of convertible notes to wholesale investors. The cash will fund the growth of the café existing chain and acquisitions, as well as paying off some existing debt.
Ananda Developments (ANA) is seeking shareholder approval to acquire the 50% of DJT Group that it does not own, which has a licence to grow >0.2% THC cannabis for research. The cost is £3.2m in shares. The process of gaining approval to grow and manufacture medicinal cannabis has been formalised.
IamFire (FIRE) says investee company WeShop user downloads and transactions are increasing.
Marula Mining (MARU) has increased its stake in the Blesberg lithium mine from 5% to 100%. The cost is $1.7m. This is subject to regulatory approval. Mobile mining equipment and the majority of processing equipment is on the site and the infrastructure is being upgraded. First deliveries of lithium ore are expected in December.
Diesel additives supplier SulNOx Group (SNOX) has appointed Steele Environmental as a US distributor for shipping markets and land-based transportation and revealed a positive evaluation with Caspian Marine Services.
Invinity Energy Systems (IES) has cut the nominal value of its shares so that it can issue more shares. A 2.2 MWh energy storage sale has been made to the company’s Taiwan resale partner. That is ten Invinity VS3 batteries.
EDX Medical (EDX) announced a collaboration for the European cancer biomarker programme with Tianjin Bioscience. This should result in the development of cost-effective cancer tests.
MiLOC Group Ltd has changed its name to Crushmetric Group Ltd. A placing raised £22,000 at 20p a share.
A company owned by NFT Investments (NFT) chairman Jonathan Bixby and non-exec Mike Edwards have has acquired 20 million shares at 0.8p a share. Finance boss Rob Smith has purchased 724,503 Chapel Down Group (CDGP) shares at 25.5p each. A company associated with chief executive David Immelman bought 50,084 DXS International (DXSP) shares at 5.454p each.
Former Aquis-quoted company Jigsaw Insurance Services is recommending a 204p a share cash offer from insurance business consolidator PIB Group Ltd. There could also be additional consideration of 14p a share depending on completion accounts. That values the bid at up to £24.1m. Harrogate-based Jigsaw was formerly known as NCI Vehicle Rescue and it left what was then known as ISDX in February 2015, so it still comes under the Takeover Panel rules.
AIM
Michelmersh Brick (MBH) expects 2022 pre-tax profit to be ahead of expectations and it is acquiring pre-built brick products manufacturer and brick fabricator Fabspeed for an initial £6.25m. The Fabspeed acquisition will be earnings enhancing. There could be up to £2m more payable depending on performance over 24 months. A share buy back programme of up to £3m is being launched.
Tatton Asset Management (TAM) continues to generate impressive net inflows to its assets undermanagement. They were £907m in the six months to September 2022, helping to offset market declines. The 50%-owned 8AM Global added a further £1bn taking the group total to £12.3bn, which has already risen to £12.9bn in November. Pre-tax profit improved from £6.77m to £7.68m and the dividend was raised by 12.5% to 4.5p a share.
finnCap (FCAP) has ended bid talks with fellow broker Panmure Gordon. It was not possible to find a mutually acceptable structure or terms for the merger.
Osirium Technologies (OSI) is raising £1.53m at 2p a share and the cash will provide additional working capital and help the cyber security business reach cash breakeven earlier than previously expected. Annualised cost savings of £1m have been identified and £650,000 of these have already been implemented. Sales director Stuart McGregor is replacing chief executive David Guyatt and he will become executive chair instead. Allenby has increased its forecast 2022 revenues to £1.8m and slightly reduced the expected loss to £3.22m.
Tissue products manufacturer Accrol (ACRL) increased interim revenues by 64% to £121.1m through a combination of higher prices and volume growth. Net debt was £30.5m at the end of October 2022 and it could fall to £24.4m by April 2023. A full year pre-tax profit of £6.7m is forecast.
Omega Diagnostics (ODX) has received the £4m deferred consideration for the sale of the CD4 business. Net cash is expected to be £6.2m by the end of March 2022. This can be used to expand the health and food intolerance operations. The US is a market where more investment is planned. Omega Diagnostics remains loss making but could move into profit in 2023-24.
Electrolyser developer Clean Power Hydrogen (CPH2) is having problems with the design and operation of its cryostat unit in the MFE 220 test unit. Scaling up the unit has been a challenge. This delayed the expected October deliveries of two initial MFE 220 units. One customer has cancelled the order and is going with a rival electrolyser. A redesign of the unit should cure the issues. On the current forecasts, the cash could reduce to £3m by the end of 2024 and then rise the following year, but further delays could mean the cash reduces more quickly than expected.
Curtis Banks Group (CBP) is in advanced discussions concerning a bid from Nucleus Financial Platforms, which is conducting due diligence. Susan McInnes has been appointed as an independent non-executive director of Curtis Banks.
DeepMatter Group (DMTR) is the latest company with plans to cancel the AIM quotation because management believes that it will be easier to raise cash as a private company. The digital chemistry data analysis business says major shareholders support the plan. DeepMatter wants to raise £1m before leaving AIM and then a larger amount after the departure.
Trafalgar Property Group (TRAF) has moved into hydroponics. The residential property developer has acquired assets and leasehold premises from May Barn Horticultural Consultancy, which is controlled by Trafalgar Property director Dr Paul Challinor, for £30,000. Trafalgar Property will concentrate on assessing plant propagation requirements and studies on tissue culture of plant material. The current work is on lettuce varieties and hydroponic tomato seedlings, as well as seedlings of Nicotiana benthamiana for future development for cosmetics and pharmaceuticals.
Real Good Food (RGD) has secured additional financing of £2.5m from Hilco Private Capital, which lasts for 12 months and is in addition to the £6.3m from the Leumi ABL. This will help to fund restructuring and cost reduction.
Zanaga Iron Ore Company (ZIOC) is acquiring a controlling shareholding in the Zanaga iron ore project from Glencore Projects in return for shares that will give Glencore a 48.26% stake. Glencore can appoint two directors and is required to retain the shares for six months. Glencore has exclusive marketing rights for the iron ore produced at the mine. A general meeting will be held on 13 December to gain shareholder approval for the deal.
MAIN MARKET
Structural steel supplier Severfield (SFR) improved interim profit and it is continuing to improve in the second half. In the six months to September 2022, revenues improved from £195.9m to £234.9m through a combination of underlying growth and higher steel prices. Underlying pre-tax profit rose from £10.3m to £12.1m, including a doubled contribution of £600,000 from the India business. Net debt was £15.8m at the end of September and the interim dividend was raised from 1.2p a share to 1.3p a share. The UK and Europe order book is worth £464m and the India order book is £143m.
Devro (DVO) has agreed a 316p a share bid from Netherlands-based Saria, which has been interested in bidding for the sausage skins supplier since the beginning of 2022.
Cardiff Property (CDFF) increased NAV from 2549p a share to 2756p a share in the year to September 2022. The current share price is 2420p. The dividend was raised from 18.5p a share to 20.5p a share. There has been a downturn in confidence in the Thames Valley property market.
Alkemy Capital Investments (ALK) says its subsidiary Tees Valley Lithium has received full planning permission for Europe’s largest lithium hydroxide refinery in Teeside. This will supply the electric vehicle battery market. Production could commence in 2025.
National World (NWOR) has decided not to bid for Reach (RCH).
Motor dealer Caffyns (CFYN) improved interim revenues from £110.8m to £119m, although underlying pre-tax profit dipped by one-third to £1.6m. New car volumes were ahead of the market and there was a 12% decrease in like-for-like used car volumes. The interim dividend is unchanged at 7.5p a share.
Ross Group (RGP) has raised £136,000 at 1.5p a share. Ross has entered into a global exclusive supply chain management agreement with the Energy Group LLC in the US to manage green hydrogen production and projects. This could be the start of a significant business for Ross.
Andrew Hore
Quoted Micro 24 October 2022
AQUIS STOCK EXCHANGE
Chapel Down Group (CDGP) had a bumper grape crop in terms of quality and yield. Chapel Down has 750 acres of vines and the harvest was more than 2,000 tonnes, up from 1,400 tonnes last year, with a particularly good crop for sparkling wines. The English sparkling wine market grew by 29% in 2021More than two million bottles of many types of wine can be made from the harvest. A further 38 acres of vines were planted this year with 118 acres planned. More land is being sought. Management wants to double the size of the business by 2026.
Property investor Ace Liberty & Stone (ALSP) launched an open offer to raise £4.56m at 25p a share, which is a big discount to the market price. The share price fell 25.8% to 47.5p. The open offer closes on 14 November and enables existing shareholders to finance the strategy to buy additional properties. Management believes that economic uncertainty will provide opportunities to acquire high yielding properties.
Ananda Developments (ANA) has changed the acquisition terms for the 50% not owned in DJT Plants. The purchase price has been cut from £7.3m to £3.2m, which is payable in shares at 0.925p a share giving the seller Anglia Salads 29.9% of the enlarged share capital. That is double the current share price. The chairman’s £2.3m loan to Ananda will be swapped for convertible loan notes and warrants. DJT is analysing its 2022 field trial crops to determine the amounts of cannabinoids and terpenes contained in the cannabis flowers. This will help the company to decide which cultivars to use. There are international growers interested in purchasing seeds from DJT.
Love Hemp (LIFE) says it will sell all LH Botanicals products and LH Botanicals Ltd, which is owned by Love Hemp chief executive Tony Calamita, does not sell these products and has never traded. An application has been filed to strike the company off the company register.
Hydrogen Utopia International (HUI) has secured a convertible loan facility with Conrad Griffiths, owner of 9.45% of the company. The €650,000 facility is interest free until the beginning of 2023 when the annual interest charge is 5%. The repayment date is 31 December 2025. The conversion price is 20p – based on the exchange rate of €1.14/£.
Invinity Energy Systems (IES) has secured the sales contract for a 10MWh VS3 flow battery system for a solar microgrid in southern California.
Goodbody Health Ltd (GDBY) has signed an agreement with Allied Pharmacies that will add 17 clinics to its network offering diagnostic testing and adds services such as ear wax micro suction.
SulNOx Group (SNOX) has signed up South Africa-based bus company Lowveld Bus Service, which will use SulNOxEco fuel conditioner in its fleet of more than 170 buses.
VVV Resources (LON: VVV) has appointed Jim Williams as an executive director. He was previously a chief executive of AIM-quoted Arian Silver Corporation, which is now known as Alien Metals (UFO). David Rigoll and Simon Clarke have left the board.
Chris Akers has upped his stake in Quetzal Capital (QTZ) from 22% to 23.4%. Investee company Tap Global has added GBPT stablecoin to its cryptocurrency trading platform.
Harry Hyman has increased his stake in Oberon Investments Group (OBE) from 3.08% to 4.15%. Phoenix Asset Management Partners has taken a 16.5% stake in Silverwood Brands (SLWD).
AIM
Semiconductors designer EnSilica (ENSI) generated more than 50% of its revenues from its design and supply division for the first time last year. Revenues increased from £8.61m to £15.3m with design and supply’s contribution jumping from £2.82m to £8.02m. This is down to contracts starting to move from the design to supply stage. A loss was turned into a pre-exceptional profit of £165,000. That is before R&D tax credits of £683,000. EnSilica capitalised £2.2m of development spending last year.
Latest new AIM admission Sondrel (SND) raised £20m at 55p a share and the price rose to 58p in early dealings. The semiconductor designer will spend the money on employing more engineers and accelerate sales. There are more than £300m of revenue opportunities for designing semiconductors. If selected, Sondrel can expect to supply the semiconductor for five years plus. The medium-term target revenues are in excess of £100m.
Revolution Bars (RBG) is acquiring Peach Pubs for £16.5m. Peach Pubs has 21 food-led pubs in the south of England and the Midlands. There should be £1.5m of cost savings from combining the businesses at a minimal cost, but they will not be fully achieved until 2024-25. finnCap has adjusted its 2022-23 forecast for Revolution Bars due to higher energy costs, so the earnings estimate has been reduced by 69% to 0.5p.
Affimer technology developer Avacta (AVCT) is acquiring in vitro diagnostics distributor Launch Diagnostics for £24m, plus up to £13m in performance related earn outs. This acquisition is part of the strategy to build up a European distribution business. Kent-based Launch Diagnostics is a profitable business that supplies diagnostic reagents and instrumentation for pathology applications. A placing at 95p a share will raise £7m and a three-for-365 open offer could raise up to £2m more. A £55m convertible bond issued at 95% of par could raise £52.5m and it is convertible at a 25% premium to the 95p a share placing price.
Gear4Music (G4M) edged up interim revenues by 2% with the growth coming from Europe and the rest of the world. The musical instruments retailer is upgrading its websites and trading is improving, although gross margins are lower.
Tatton Asset Management (TAM) generated inflows of £907m in the six months to September 2022. Assets under management have reached £11.3bn, with a further £1bn of assets under influence. There was an 11% improvement in earnings to 9.8p a share and the interim dividend 10% ahead at 4.4p a share. Inflows are expected to slow and full year expectations have been trimmed, but earnings should improve from 18.6p a share to 19.8p a share.
Logistics Development Group (LDG) has raised its stake in cakes maker Finsbury Food (FIF) from 4.4% to 6.77%. A further £4.17 has been invested at an average of 81p a share. The previous investment was at 69.5p a share, which was just above the low for 2022. Richard Griffiths increased his stake in Logistics Development Group from 7.04% to 8.71%. Logistics Development Group should have received more than £31m for its stake in CareTech.
Learning and development products and services provider Mind Gym (MIND) generated interim revenues 11% ahead at £26.8m with the majority coming from the US. Net cash is £4.5m. The interims will be published on 2 December. A full year pre-tax profit of £2.87m is forecast.
Advanced Oncotherapy (AVO) has raised £6m at 25p a share from Odey Asset Management. The subscription was at a 12% premium to the market price.
Mattress supplier eve Sleep (EVE) has appointed an administrator.
Anthony Laiker has left the Vela Technologies (VELA) board and sold his 6% stake. He was reappointed to the board in July having been a director between 2013 and 2020.
MAIN MARKET
Kitchenware retailer ProCook Group (PROC) says revenues continued to decline in the second quarter, but the rate slowed and there has been growth in early October. Freight costs are falling offsetting the change in exchange rates. Fackelmann Gmbh owns a 9% stake.
LED lighting and wiring accessories supplier Luceco (LUCE) says destocking has happened faster than expected, so the 2022 profit outcome will be lower than anticipated. Underlying operating profit is expected to be £20m-£22m in 2022. Net debt was £46.5m at the end of September 2022.
Carclo (CAR) says interim sales were ahead of the same period last year and slightly better than expectations. However, operating profit is slightly lower than previously. The life sciences division has grown even though two product launches were delayed. There was also increased demand from the aerospace sector.
Motor dealer Lookers (LOOK) outperformed the UK car market in the third quarter and pre-tax guidance has been increased to no less than £75m. Last year’s pre-tax profit was £90.7m, but that benefited from government assistance and a strong used vehicle market. However, a lack of available new cars to sell is holding back the performance of all motor dealers.
An administrator has been appointed to Toople (TOOP) after it failed to secure financing for a proposed acquisition.
Andrew Hore
Quoted Micro 3 October 2022
AQUIS STOCK EXCHANGE
Kent brewer Shepherd Neame (LON: SHEP) returned to profit in the year to June 2022. The total dividend is 18.5p a share. Net assets increased from 1140p a share to 1194p a share, while net debt is back to pre-pandemic levels at £75.3m. Pubs and hotel revenues are still lower than in 2018-19. Beer volumes have more than recovered, although own beer volumes are 8% lower than three years ago. In the 13 weeks to 24 September 2022, like-for-like retail sales are 9% ahead, while own beer volumes were 1.2% higher – including a 14% improvement in own beer volumes.
Property investor Ace Liberty and Stone (ALSP) increased pre-tax profit by 49% to £2.07m in the year to April 2022. Net assets are 6% higher at £34m. Net debt has reduced from £54.8m to £44.6m. A dividend of 3.4p a share has been announced that will cost £2m.
VSA has downgraded its forecasts for battery storage technology developer Invinity Energy Systems (IES) following interim figures. First half revenues were £1.4m and the order book is worth £13m – mainly relating to the second half. However, 2022 revenues were downgraded from £14.1m to £11m. Next year’s revenues have been upgraded from £20.6m to £23.7m. Cash is likely to run out later next year.
All Things Considered (ATC) investee company Driift has acquired interactive live streaming events platform Dreamstage, which has been used by Driift for its own events. Deezer will invest a further £4m into the combined business. Music management business All Things Considered increased interim revenues by 19% to £6m and the loss was reduced. Net cash is £1.5m. A full year loss is expected compared with previous expectations of a £600,000 profit.
Wine maker Chapel Down Group (CDGP) increased interim revenues by 4% to £6.88m. Sparkling wine revenues were 35% higher. Pre-tax profit improved by 6% to £489,000. The company started harvesting in August and a strong yield is anticipated.
KR1 (KR1) is not immune to the decline in values of digital assets. The value of intangible assets fell by £155.5m in the period, which more than offset realised gains of £2.5m and income of £16.6m. Net assets have declined by nearly three-quarters and NAV is 30.6p a share.
St Mark Homes (SMAP) reported an increased interim loss and NAV fell from 120p a share to 116p a share. As current projects complete management will consider paying a dividend.
Coinsilium (LON: COIN) reported a net fair value gain on financial assets of £163,000 in the first half of 2022. However, the value of cryptocurrency assets has declined. Net assets have fallen from £5.84m to £4.57m.
ProBiotix Health (PBX) generated sales of £306,000, down £537,000 in the first half of 2022. Orders worth £1.12m have been received since the beginning of the year, so the second half revenues should be stronger, as well as higher than last year.
In the six months to June 2022, the value of the equity stakes held by Cadence Minerals (KDNC) fell from £12m to £5.75m. The main decline was in the value of the stake in AIM-quoted European Metals Holdings. There was £1.99m in the bank at the end of the period.
NFT Investments (NFT) has been hit by a reduction in the value of cryptocurrency, particularly Bitcoin. That means that NAV has fallen to £30.1m, including £20.4m in cash. There was a revaluation reduction of £265,000, but that was offset by exchange gains of £362,000, leaving the value of investments at £6.47m. At 0.91p, down 4.21% on the week, the share price is less than one-third of the NAV of 3p a share.
Thixotropic gels manufacturer Unigel Group (UNX) joined the Access segment of the Aquis Stock Exchange in August. There was £800,000 raised at 64p a share. The gels are used in the fibre optic industry. A maiden trading statement says that interim pre-tax profit was 94% ahead at £940,000. New products and higher selling prices boosted revenues and current trading is described as robust.
Clean Invest Africa (CIA) was the worst performer on the Aquis Stock Exchange last week. Loan notes have been converted into shares helping the company turn net liabilities into net assets of £1.72m at the end of June 2022. The company’s CoalTech technology is proven in palletising coal fines or coal waste and management believes that other materials could be palletised.
Hydrogen Utopia International (HUI) had £3.2m left in the bank at the end of June 2022. There were no revenues in the first half. There was progress with waste plastic to energy project developments.
Wishbone Gold (WSBN) had £2.38m in the bank at the end of June 2022. Drilling has commenced in Western Australia and Queensland in recent months.
Screwless spinal stabilisation systems developer TruSpine Technologies (TSP) had £3,471 in cash at the end of March 2022. There was a £390,000 cash outflow from operating activities and £1m of development spending capitalised. TruSpine subsequently entered into a funding agreement with Proffitt Brothers and $100,000 has been received.
Helium Ventures (HEV) is considering widening its investment strategy because of the lack of suitable helium investments. If a suitable acquisition is identified, then shareholders would be asked for their approval.
AIM
Investment in the medical imaging business is holding back short-term profit at engineer Avingtrans (AVG). In the year to May 2022, revenues were 2% ahead at 3100.4m and pre-tax profit rose from £7.6m to £8.3m. Demand from the nuclear sector is growing, but profit growth this year will be modest because of additional medical imaging costs. Net cash was £16.7m at the end of May 2022.
Online building and maintenance products retailer CMO Holdings (CMO) has been hit by softening demand for its products. There was still like-for-like revenue growth in first half of 2022, although Total Tiles sales fell because of tough comparatives. Even if the market gets tougher, there is still potential for growth because of the low share of online sales in the building materials sector.
Crownpeak Holdings is making an agreed 30p a share cash bid for omnichannel retail merchandising software provider Attraqt Group (ATQT). The plan is to combine Attraqt’s merchandising technology the Digital Experience Platform owned by Crownpeak. The share price has not been as high as the bid price since May, and it reached its all-time low of 17.5p prior to the bid.
Sustainable biopesticides developer Eden Research (EDEN) has obtained US EPA approval for its three active ingredients and two formulated products. Mevalone (a biofungicide) and Cedroz (a nematicide) sales should start next year via existing distribution partners. State approvals are required before launching in an individual state. Eden Research reduced its interim loss, but cash is still flowing out of the business. There was a cash outflow of £1.9m in the first half, including capitalised development costs and £1.85m was in the bank at the end of June 2020. R&D tax credits will help to replenish cash, but more will be required in the near future if Eden Research is going to take full advantage of the EPA approval.
Xeros Technology (XSG) has signed a joint development agreement with a global domestic washing machine component manufacturer for its XFilter microfibre filtration technology. A full licence dela could be agreed in six months. A placing raised £6m at 5p a share and a six-for-seven open offer could raise up to £1m more. In March 2021, a placing and open offer at 240p a share raised £9m. There was £2.6m of cash at the end of August 2022 and the cash outflow is £500.000 a month.
Digital transformation services TPXimpact (TPX) had a management overhaul last week because trading has been below expectations and there were complications with the integration of the businesses acquired. Chief executive Neal Gandhi and finance director Oliver Rigby. Bjorn Conway is the new chief executive. The order book is increasing in value, but revenue expectations have been cut from £97.4m to £90m. Operating costs are rising. and profit expectations have nearly halved.
musicMagpie (MMAG) has been hit be weak consumer spending with lower sales of technology. Rental income from pre-owned mobiles is growing, though, and that is good for longer-term revenues. The original pre-owned books and music operations are trading as expected. The second half should still be better than the first half, although a full year pre-tax loss is forecast on flat revenues. A small profit is forecast for 2023. Net debt is expected to be £8m at the end of the year.
Structural steel supplier Billington (BILN) increased interim revenues by 22% to £46.2m with nearly doubled pre-tax profit of £1.47m. finnCap has increased its 2022 earnings forecast by one-third to 26.4p a share.
Employee benefits services and insurance provider Personal Group (PGH) has increased revenues by 6%, but profit has declined due to higher insurance claims costs and investment in sales. The benefits of the investment will show through next year and insurance revenues will also recover.
MAIN MARKET
Shell company Milton Capital (MII) intends to float on the Main Market in the coming week. There will be £1m raised at 1p a share and the investors will get two warrants for each share and they are exercisable at 1.5p a share. Total flotation costs are capped at £50,000 and the first year’s operating costs will also be £50,000. The directors will not take salaries. Instead, they will receive a success fee on the completion of a reverse takeover. The initial focus is the technology sector.
Vehicle and property bridging loans both grew in the first half at S&U (SUS) and total net receivables were £370m at the end of July. Credit quality remains high. Pre-tax profit was 5% ahead at £20.9m. The first interim dividend was raised from 33p a share to 35p a share.
Rockwood Strategic (RKW) has transferred from AIM to the Main Market. Rockwood Strategic management believes that there are plenty of undervalued smaller companies that it can invest in and help to grow.
Hawkwing (HNG) is keeping up with the traditions of its previous incarnation TLA Worldwide and published its interim figures after the market closed at the end of the week. The standard list shell had cash of £2.03m at the end of June 2022. There are also more than £16m of convertible loan notes. It has loaned Internet Fusion Group £13.7m and plans a reverse takeover.
Andrew Hore
Quoted Micro 15 August 2022
AQUIS STOCK EXCHANGE
Good Energy (GOOD) has invested a further £3.7m in EV charging app developer Zap-Map as part of a £9m fundraising. This values Zap-Map at £26.3m. Good Energy has also converted a £1m loan note into shares and it owns 49.9% of Zap-Map. Global fuel card and payment provider Fleetcor invested £5.3m and it can help Zap-Map expand internationally.
Media shell Lift Global Ventures (LFT) is buying financial PR and IR consultancy Miriad Ltd from the shell’s director Zak Mir. In the year to June 2022, Miriad Ltd generated revenues of £341,000 and an operating profit of £265,000. A general meeting will be held on 5 September. Lift Global Ventures will pay £200,000 in cash and 4.17 million shares at 4p each. The current share price is 1.125p. Zak Mir has transferred a holding of 8.33 million shares in Lift Global Ventures from Miriad Ltd to himself for nil consideration.
In the three months to June 2022, National Milk Records (NMRP) increased revenues from £5.72m to £6.09m. All parts of the business grew their revenues with genomics testing more than doubling revenues to £111,000. This is the final quarter of the financial year. Milk prices are increasing.
Altona Rare Earths (ANR) has estimated an exploration target of up to 56.6 million tonnes at up to 1.65% total rare earth oxide at the Monte Muambe rare earths deposit. The JORC mineral resource estimate should be published in the first quarter of 2023.
In the year to February 2022, Inqo Investments Ltd (INQO) reported a loss of R14.2 million after a R2.4 million impairment charge. There is a new reforestation project over 5,000 hectares of degraded land on the Kazuko private game reserve. Since the year-end, R2 million of director loans have been made available and a total of R1.44 million will be generated by the sale of the stake in Bee Sweet Honey Investment.
Asia Wealth Group Holdings Ltd (AWLP) reported a reduced 2021-22 profit of $11,266, down from $193,507, due to unrealised currency losses from Japanese Yen holdings and the write down of an investment. Net assets were $1.59m at the end of February 2022.
Invinity Energy (IES) shares commenced trading on the US OTCQX market and new US climate legislation should boost energy storage demand. The energy storage technology developer says the bill contains $369bn of clean energy investment, including tax incentives and grants.
Oscillate (MUSH) has £1.2m in cash as well as investments in three companies.
Close Asset Management has taken a 6.5% stake in Macaulay Capital (MCAP), which joined the Access segment on 29 July when £1.9m was raised at 20p a share. This week the share price rose to 25p. The strategy of the company is to originate potential investments and generate fees from these businesses by advising them and helping to raise money, as well as investing alongside other investors.
Chapel Down Group (CDGP) has replaced finnCap with Singer as its corporate adviser and broker.
Hydrogen Utopia International (HUI) has appointed Duncan Snelling as an engineering consultant and granted him options over up to 600,000 shares at 9.275p each. Each month, 50,000 options will vest, and they are exercisable between the first and fifth anniversaries of the appointment.
Vulcan Industries (VULC) has appointed Darren Taylor as a non-executive director. He was one of the shareholders in Aftech, which was acquired in March, and he has a 12.6% stake in Vulcan Industries.
Gathoni Muchai Investments, where Marula Mining (MARU) chief executive Jason Brewer is a substantial shareholder, acquired 1.5 million shares and 1.1875 million warrants exercisable at 4p each for a total of £16,000. Chairman Richard Lloyd bought one million shares at 1.07p each.
David Bull has stepped down as chief executive of Eight Capital Partners (ECP).
Goodbody Health Inc (GDBY) has shareholder approval to change its jurisdiction from Canada to Guernsey and delist from the CSE.
Rogue Baron (SHNJ) is changing its year end to 30 September. Discussions continue with the auditor about the year end stocktake at the Bin 1301 bar and the stocktake of tequila inventory.
AIM
Staffing provider Empresaria (EMR) benefited from a strong performance from its outsourcing division, which more than offset declines in profit in the regional divisions in the first half of 2022. Group net fee income was 15% higher at £32.6m. operating profit was 94% ahead at £3.5m. The Americas division had tough comparatives because of Covid-related healthcare business. Net debt is £10.8m.
Manchester-based Northcoders (CODE) has won a £4m contract from the UK government to provide scholarships for software training for individuals. This will be used to fund software development and data engineering skills training by Northcoders and it stretches into 2023. More than 85% of forecast 2022 revenues of £6.5m, up from £3m, are covered by contracted work, while 30% of the 2023 forecast of £10.5m is covered.
Self-storage sites operator Lok’nStore (LOK) published its full year trading statement showing self-storage revenues 17.3% higher. Stripping out new stores and the four stores sold in the period, the increase was 24.9%. There were increased occupancy levels and prices were raised by 13% over the year. Three new sites were opened during the year and Basildon, Bedford, Peterborough and Staines are all set to open in 2023.
Shares in Africa-focused oil and gas company Afentra (AET) returned from suspension following the publication of the admission document covering the proposed acquisition of interests in the producing Block 3/05 and the exploration Block 23 in Angola from Sonangol. The initial cost is $80.5m, with up to $50m of contingent consideration for the Block 23 interest. The acquisition cost is equivalent to $3.60/barrel – based on proved and probable reserves. In the first half of 2022, the net production from Block 3/05 was 4,700 barrels per day and it could generate $36m of cash a year at an oil price of $75/barrel. Trading in the shares had been suspended since 8 October.
MJ Hudson (MJH) raised £9.22m in a placing and PrimaryBid offer at 30p a share. The cash raised will be invested in the ESG division, help to pay deferred consideration and provide additional regulatory capital for the growing operations, particularly in Ireland.
Electrical retailer Marks Electrical (MRK) increased revenues in the first four months of the financial year by 14% to £27.7m. Marks Electrical is growing market share for major domestic appliances and consumer electronics. Televisions, vacuum cleaners, washers and air conditioning were strong categories. Rivals have been discounting prices and marketing costs are increasing, but management believes it can achieve profitable growth.
Geospatial software provider IQGeo (IQG) is acquiring automated planning and design software provider Comsof, which is profitable and cash generative. IQGeo currently includes similar software in its services, but it is supplied by a third-party. Swapping this for Comsof software will enhance margins.
Crestchic (LOAD) forecasts have been upgraded for the third time this year. The largest ever loadbank hire contract has recently been secured, which is helping trading momentum to continue to accelerate. The new factory has been completed. Demand from datacentres is strong and there is a recovery in demand from the oil and gas sector. Utilisation at record levels. The 2022 pre-tax profit forecast has been raised from £5.2m to £7.2m
Digital media company Digitalbox (DBOX) increased interim revenues by 40% to £1.9m and there was an increase in net cash to £2.4m. This is before the completion of the acquisition of the assets of TVGuide.co.uk, which will make a contribution in the second half. However, management is concerned about advertising levels in the second half.
MAIN MARKET
Used car finance and property bridging loans provider S&U (SUS) says group receivables increased from £340m to £370m and first half profit is greater than last year. Motor finance provider Advantage Finance receivables are £280m and Aspen property bridging loans have reached £90m with an average size of around £875,000 for loans this year.
Radiators company Stelrad Group (SRAD) grew interim revenues by 17% to £150m, even though volumes declined. Underlying pre-tax profit was 83% ahead at £13.9m. Net debt is £47.5m. Recently acquired DL Radiators will be earnings enhancing this year.
Hamak Gold Ltd (HAMA) executive director Karl Smithson bought 119,094 shares at 8.4p each, while non-exec Martin Lampshire purchased 122,000 at 8.18p each.
Andrew Hore
Quoted Micro 25 July 2022
AQUIS STOCK EXCHANGE
In the six months to March 2022, S-Ventures (SVEN) reported an increase in revenues from £1.5m to £4.1m, although it remains loss making. The full benefits of acquisitions and the consolidation of warehousing has yet to show through. Even so, VSA has cut its 2021-22 revenues forecast from £11m to £9.4m S-Ventures will continue to lose money.
Arbuthnot Banking Group (ARBB) improved interim underlying pre-tax profit from £6.5m to £10.7m. NAV is 1300p a share. The interim dividend is 17p a share. Customer loans increased by 5% to £2.1bn. Assets under management dipped to £1.3bn after the decline in stockmarkets. A West End long leasehold property has been sold at a value of £60m and a yield of 3.75%.
Shepherd Neame (SHEP) has acquired Bournemouth seaside bar and restaurant Urban Reef. This takes the total number of pubs owned by the Faversham-based brewer to 300.
Psych Capital (PSY) says that investee company Awakn Life Sciences has received C$2.5m of UK government funding for the phase III trial for a ketamine-assisted therapy for alcohol use disorder. Awakn will finance the other C$1.25m cost of the trial.
Vulcan Industries (VULC) is selling Orca Doors for £1. That gets rid of net liabilities of £751,000 and continued cash outflows. The fire door supplier has been hit by lockdowns and requires additional investment.
Ananda Developments (ANA) subsidiary DJT Plants has successfully self-crossed the first generation of cannabis plants. This will continue for six generations. The performance of various cannabis cultivars is being assessed.
AQRU (AQRU) subsidiary Accru Finance is partnering with Quickbit, a Sweden-based fintech, which will offer the Accru yield generating products to its customers.
Black Sea Property (BSP) has completed the purchase of Star Mil EOOD for a total consideration of Euro5.15m. The company owns a Black Sea hotel complex. A loan of Euro4.2m helped to finance the purchase.
Rogue Baron (SHNJ) has made its first sales of Shinju Japanese whisky to Austria and Switzerland.
Lombard Odier has reduced its stake in Chapel Down Group (CDGP) from 9.97% to 4.99%. Mark Horrocks has increased his stake in Quetzal Capital (QTZ) from 5.3% to 6%. A company related to Marula Mining (MARU) chief executive Jason Brewer has acquired 100,000 shares at 2.75p each.
Oscillate (MUSH) has acquired 2.5 million warrants in fully listed Dev Clever (DEV) for £250,000. The warrants are exercisable at 1p each up until 21 January 2024. Dev Clever is currently undertaking a reverse takeover.
AIM
Business restructuring business Begbies Traynor (BEG) increased underlying pre-tax profit from £11.5m to £17.8m in the year to April 2022. This was a combination of acquisitions and organic growth. The dividend has been increased from 3p a share to 3.5p a share. Net cash improved from £3m to £4.7m. Insolvencies are increasing, although the higher margin administrations are still relatively low. This could change over the next year or so, making the outlook positive.
Credit provider Morses Club (MCL) says an increasing level of customer redress claims means that it is considering a scheme of arrangement. This could provide certainty about the potential total level of claims over a set period. Management is talking with the FCA. The scheme would have to be approved by the majority of claimants. There will be an additional provision of £45m in the 2021-22 accounts and underlying pre-tax profit could be below £3.5m. Tighter controls mean that sales are declining, and Morses Club won’t make a profit in 2022-23. Fewer competitors could help Morses Club recover in the following year.
Disinfection products supplier Tristel (TSTL) announced a special dividend of 3p a share on top of a final dividend of 3.93p a share. Full year revenues are 4% ahead at £28.4m and adjusted pre-tax profit is 12% higher at £4.5m. The second half was stronger as more patient procedures have been undertaken. FDA approval for the Duo ULT could be achieved next year.
Footwear supplier Unbound Group (UBG) announced a fundraising generating £3.3m at a heavily discounted 15p a share. An open offer, which closes on 8 August, could raise up to £1m more. The footwear supplier is launching an online platform to sell third party branded products to a database of 4.6 million individuals. The cash will help to finance the expansion.
Stanley Gibbons (SGI) intends to cancel its AIM quotation. Graham Shircore is stepping down as chief executive in September and he will be replaced by Tom Pickford. The largest shareholder Phoenix SG believes it is better to cancel the quotation considering the limited free float and additional costs. The 58% shareholder also says that it would reconsider its financial support if shareholders do not agree to the cancelation. Stanley Gibbons remains loss making.
In-content advertising company Mirriad Advertising (MIRI) expects flat revenues in 2022 because of weak market conditions in China. The Chinese operations will be closed next year and that will save annualised costs of £1m. That is on top of the £2.5m of annualised savings expected for the business as a whole. Interim revenues have halved, although US revenues increased. There is £17.7m in the bank and cash should be higher than previously expected at the end of 2022. Cash outflows are still significant, though.
Window fittings supplier Titon (TON) says that supply problems with raw materials and components exacerbated by cost inflation have led to a reduction in margins. There have also been problems with IT, so this year’s figures will be lower than expectations. South Korea sales are disappointing but there should be a small profit contribution.
Restructuring services provider FRP Advisory (FRP) increased revenues from £79m to £95.2m in the year to April 2022, with 11% organic growth. Pre-tax profit improved from £21.2m to £23.1m. There are signs that administrations are starting to increase and that will boost demand for services.
Cambridge Cognition (COG) directors are buying shares following yesterday’s trading update. Chief executive Matthew Stork and finance chief Stephen Symonds each bought 22.950 shares at 113p each. The latter did not previously own shares. The digital brain health products developer increased interim revenues by 31% to £5.9m. The order book is worth £18.6m. There was a small profit and £8.6m in the bank at the end of June 2022.
The merger between Tern (TERN) and Pires Investments (PIRI) is not going ahead because not enough of the latter’s shareholders voted for it. Tern wants to generate cash from exiting one or more of its investments as soon as it is feasible. There will not be any new investments until there is a realisation of an investment, although there are likely to be commitments to existing investments that may mean a fundraising will be required.
An independent decision means that Newcrest Mining can pay $60m to Greatland Gold (GGP) to take up an option to acquire a further 5% stake in the Havieron project. Given the progress that has been made on the project over the past year this is an attractive price, and it is likely to take up the option. The cash will pay off the $50m loan facility from Newcrest and leave money for further investment. Greatland Gold will still own 25% of Havieron.
MAIN MARKET
Palace Capital (PCA) is changing its strategy. It was originally going to reinvest the cash from the sale of its industrial property assets into new regional office investments. Shareholder feedback means that the potential £46.5m raised from the disposal of the industrial portfolio and other non-core assets, after repayment of related debt, will be distributed in dividends or paid back via a tender offer. Three non-exec directors have resigned.
Kin + Carta (KCT) says revenues grew 48% in the year to July 2022. Peel Hunt has upped its 2021-22 pre-tax profit forecast from £16.6m to £16.9m. Net debt is estimated at £2.5m. Kelly Manthey will be taking over as chief executive.
Andrew Hore
Quoted Micro 18 July 2022
AQUIS STOCK EXCHANGE
Hydro Hotel, Eastbourne (HYDP) increased interim revenues by 882% to £1.82m and this enabled a move from a loss of £383,000 to a pre-tax profit of £22,277. There are cash and deposits of £1.8m.
Hydrogen Utopia International (HUI) has announced a proposed joint venture with AIM-quoted Powerhouse Energy (PHE) in Tipperary, Ireland. This will be a 50/50 joint venture and it will build a plant on a site leased by Trifol Resources. Negotiations concerning the site should be completed over the coming months. Electron Technologies BV has completed the first design phase for the company’s thermal processing system.
AQRU (AQRU) has launched ByBrix in partnership with Blimp Technologies Inc. This new business is involved in the crypto-mortgage market. Blimp has expertise in embedding blockchain technology in the real estate market.
Goodbody Health Inc (GDBY) intends to consolidate ten existing shares into one new share.
Reflexivity Research Ltd has increased its stake in KR1 (KR1) from 7.6% to 20.3%. This relates to a performance fee of £30.1m.
IPGL Ltd, which is associated with Chapel Down Group (CDGP) non-exec Samantha Wren, has acquired 250,000 shares in the wine maker at 19.2795p each. Cadence Minerals (KDNC) chief executive Kiran Morzaria bought 100,558 shares at 9.9p each. This takes his stake to 1.43 million shares. Invinity Energy Systems (IES) executive director Jonathan Marren has acquired 44,101 shares in the battery storage technology developer at 45.35p a share.
Oscillate (LON: MUSH) non-exec Narisha Ragoonanthun has stepped down from the board.
Lift Global Ventures (LFT) has appointed Optiva Securities as corporate adviser. The accounting reference date is changed from May to June.
EPE Special Opportunities Ltd (EO.P) had net assets of 283.05p a share at the end of June 2022.
AIM
Capital equipment manufacturer Mpac Group (MPAC) warned that full year profit will be significantly below expectations. Interim revenues are better than last year, and the order book is higher. However, difficulties sourcing components and delays to the timing of orders have hampered progress. The longer lead times for components and inflationary pressures will continue for the rest of the year. There was cash of £14.5m at the end of 2021, which has enabled investment in inventories. The interims will be published on 8 September.
CMO Group (CMO) slumped to 35p after a profit warning, making it the worst AIM performer of the week. Last year’s placing price was at 132p. The online retailer of building products says revenues in the 27 weeks to June 2022 are 10% ahead, or 2% higher like-for-like. Full year guidance is that 2022 revenues will increase from £76.3m to at least £86m, but previously £95.5m was expected. The EBITDA estimate has been reduced from £5.55m to around last year’s level of £3.7m. Supply problems have increased costs and trading is getting tougher.
TransGlobe Energy Corporation (TGL) is merging with fully listed VAALCO Energy (EGY) to create an Africa-focused exploration and production company. VAALCO is offering 0.6727 of one share for each TransGlobe share. TransGlobe shareholders will own 45.5% of the enlarged group. The transaction is valued at $307m.
A positive first half trading statement from international payments services provider Cornerstone FS (CSFS) initially triggered a bounce back in the share price, but it fell back when the chief executive resigned.
Embedded computer boards supplier Concurrent Technologies (CNC) has received a new order from a global medical technology company. The initial order is worth $2.2m in the first year of product shipments and there should be orders for several years. This further diversifies the customer base away from defence, which was 70% of the revenues of £20.5m in 2021.
Angle (AGL) has raised £20m at 80p a share. The cash will be used to take full advantage of the recent FDA approval for the use of its Parsortix diagnostic technology in harvesting breast cancer cells for analysis. Discussions are ongoing with medtech and pharma companies. The pharma services operation will be expanded, and laboratory developed tests launched. The liquid biopsy market could be worth up to $100bn in the US.
A £3.75m fundraising at 0.5p a share by EQTEC (LON: EQT) was not well received by the market and the share price fell below the offer price. EQTEC raised more than the minimum of £3m that it was seeking. The cash will fund wase to energy projects, including a 9.9Mwe advanced gasification technology facility and 2MW anaerobic plant at Deeside. EQTEC has to invest £2.3m to gain a 32% stake in the company owning the project.
Ironveld (IRON) has raised £4m at 0.3p a share to finance the acquisition and refurbishment of Ferrochrome Furnaces Ltd and may raise up to £1m more. Directors’ loans and fees of £351,000 has been capitalised. Management has raised the cash because it is not certain that Grosvenor Resources will be able to complete the promised cash injection. Shareholder approval is required at a general meeting on 1 August.
Portmeirion (PMP) says interim revenues were 5% ahead at £45m, but it remains cautious about the full year. Shipping costs are reducing, although other costs have risen.
Gaming machine monitors and consoles supplier Quixant (QXT) has increased order intake by more than expected. Interim revenues are 46% ahead at $53.3m. The main growth is in the gaming sector, although the screens business grew by 21%.
Regional legal firm consolidator Knights Group Holdings (KGH) reported full year figures in line with expectations. Revenues were 22% higher at £125.6m, although earnings per share fell nearly 6% to 17.23p because more shares are in issue.
Plant-based polymers developer Itaconix (ITX) increased interim revenues by 124% to $3m. Revenues trebled from cleaning products using the company’s plant-based ingredients, but beauty and hygiene revenues declined due to lower order volumes. There was $900,000 of net cash at the end of June 2022.
MAIN MARKET
Property investor Town Centre Securities (TOWN) is selling its stake in YourParkingSpace app for up to £20.7m. The initial payment is £9.6m with a further £7.5m payable over the next two years. There could be up to £3.6m more payable depending on performance in the 14 months after acquisition. The book value of the stake was £1.47m. A loan of £1.95m will be repaid. A tender offer to acquire four million shares at 185p each has been launched. The tender is well below NAV. Tender forms have to be received by 8 August.
BATM (BVC) has secured a deal with CityFibre, which will pilot the Edgility platform with selected partners. This could lead to a national roll-out. CityFibre wants to increase its fibre coverage to 285 cities in the UK.
Andrew Hore
