Home » Posts tagged 'DX.'
Tag Archives: DX.
Quoted Micro 20 November 2023
AQUIS STOCK EXCHANGE
Marula Mining (MARU) has completed the phase 1 drilling programme at the Blesberg lithium and tantalum mine. The 21 holes were finished ahead of schedule and assay results are awaited. Phase 2 drilling has started and 15 out of 21 holes have been completed. Financial forecasts for the planned open pit hard rock mining plan.
Valereum (VLRM) says that the Gibraltar Stock Exchange is surrendering its licence and closing its markets. Valereum still wants to acquire the Gibraltar Stock Exchange and holds a fixed charge over a 50% stake. The plan would be to apply for a new licence. Alan Gravitz has left the board.
Ananda Developments (ANA) subsidiary MRX Medical has signed a drug supply agreement with the University of Edinburgh and the Lothian Health Board. The MRX1 cannabidiol oil formulation will be used in a trial for the treatment of chemotherapy induced neuropathic pain.
Gunsynd (GUN) has paid the first tranche of £250,000 for a farm-in agreement with Metals One. Gunsynd will hold Finnaust Mining Northern. Gunsynd has sold 1.24 million shares in Charger Metals for £257,000. It retains 1.3 million shares.
Vinanz Ltd (BTC) has already spent some of the money raised at the beginning of November to acquire 171 bitcoin miners in North America. The plan is to buy a total of 250 bitcoin miners. Vinanz currently holds 9.1 bitcoin.
Cadence Minerals (KDNC) says its subsidiary has issued a request for consultations and negotiations to the Mexican government concerning the possible revocation of the mining concessions for the Sonora lithium project. These concessions are held by joint venture companies, where Cadence Minerals has 30% stakes.
Quantum Exponential (QBIT) has converted its £450,000 investment in Universal Quantum in exchange for 84 million shares at 5319.47p each. A one-for-1,000 share split will happen after the share issue. This means that the subsequent 84,000 shares will be 0.51% of buildable quantum computers developer Universal Quantum.
Wishbone Gold (WSBN) says initial mineralised results from the first half of the Cottesloe project in Western Australia. The company expects full results during next January.
Oberon Investments (OBE) has switched from the Access to Apex segment of the Aquis Stock Exchange.
SuperSeed Capital (WWW) has adjusted its NAV figure for the end of June 2023. It has been reduced from 1.184p/share to 1.121p/share.
Wheelsure Holdings has received potential financing and acquisition approaches, but nothing has been finalised and it is running short of cash. The shares have been suspended and the quotation cancelled on 15 November. Talks continue.
Tunch Kashif reduced his stake in ChallengerX (CXS) from 21.6% to 17.9%. Mark Horrocks has increased his shareholding in Lift Global Ventures (LFT) from 13.3% to 14.99%.
AIM
Hotel Chocolat (HOTC) is recommending a 375p/share bid from Mars, which values the chocolate company at £534m. Mars is keen to help Hotel Chocolat expand into new regions. The track record of the current management when it comes to international expansion has been mixed and it will help to have a larger company with greater resources backing the expansion. Shareholders can accept an alternative offer of one rollover share in the bid vehicle for each share. The value of these shares will be dependent on the performance of the business, and this would be taking a risk.
Verici Dx (VRCI) has entered into an exclusive licence agreement with Thermo Fisher for its pre-transplant prognostics. This will generate staged payments of $5m over the next 12 months, plus future royalties of per test. That means that Verici Dx will have enough cash until the end of 2024. Thermo Fisher has the commercial expertise to roll out the technology and it will further develop the product.
City Pub Group (CPC) is also the subject of an agreed bid. Young & Co’s Brewery (LON: YNGA) is offering 108.75p in cash and 0.032658 of an A share for each City Pub Group share, valuing it at 145p/share or £162m. The share price jumped 52.5% to 136.5p. Young’s has been seeking to grow its managed pubs business and believes it is rare to have the opportunity to acquire such an attractive portfolio of pubs. The deal will increase the number of pubs owned by 50 to 279. A significant amount of City Pub Group’s central overheads of £5.6m could be saved by the combined group and there could be other savings. Young’s shares rose 1.86% to 1095p.
AMTE Power (AMTE) has secured a short-term financing. The battery technology developer will receive £2.5m from a subscription by Pinnacle International Venture Capital at 1.7p/share and it is also providing a £200,000 convertible loan facility. A placing will raise a further £400,000 at 0.5p/share. A general meeting is required to approve the subscription.
Jarvis Securities (JIM) has confirmed it is not paying a fourth quarter dividend. The FCA is planning a further review into the company’s operations, including the approach to uninvested cash and interest retention. This report has to be delivered by the end of February 2024.The voluntary restrictions on the business are continuing and another review is required before they can be lifted. The reviews have cost more than £1.3m this year.
AFC Energy (AFC) is purchasing Octopus Hydrogen’s UK mobile hydrogen storage and distribution assets. These assets can be used to provide a hydrogen fuelling service for H-Power generator units rented by new partner Speedy Hydrogen Solutions and other future users of hydrogen powered equipment.
Celadon Pharmaceuticals (CEL) has secured a new sales contract with a European medicinal cannabis company that could generate up to £26m over a three-year period. The first delivery will be in the second half of 2024. The cannabis grower and drug developer will supply pharmaceutical-grade cannabis. There are other interested buyers.
Autonomous vehicles developer Aurrigo International (AURR) has launched a placing to raise at least £3.5m at 100p/share and there will also be a retail offer at the same price. Coventry-based Aurrigo International won the best newcomer title at the 2023 AIM awards, having floated AIM on 15 September 2022 at 48p/share. Aurrigo International had cash of £2.8m at the end of June 2023 after a £1.9m outflow from operations in the first half. There will be £1.5m spent on customer roll out and £400,000 for additional staff.
Chain and transmission equipment Renold (RNO) reported strong interims with revenues 8% ahead at £125.3m and pre-tax profit 55% higher at £11.3m. The revenues and margins of the transmission business have jumped as the new MoD contract builds up. The chain division also grew revenues and margins. Order intake has slowed, but that is at least partly down to there being more confidence in the supply chain.
Freight and parcel delivery company DX (DX.) is recommending a 47.5p/share bid from HIG European Capital Partners, which values the company at £315m. The shares have gone ex-dividend, and the final dividend of 1p/share will be paid on 7 December. That reduced the level of the bid.
DP Poland (DPP) says third quarter like-for-like sales in Poland were 14.1% higher and they were 34.8% ahead in October. The Croatian business is growing even faster. Singer believes the pizza retailer could move into profit in 2024.
Initial results from drilling at the Wedding Bell and Radium Mountain owned by Thor Energy (THR) confirm the potential of the US uranium projects. More than 50% of the 25-hole drill programme has been completed. The initial results come from downhole gamma logs and handheld pXRF devices to determine anomalous levels of uranium and these will be sent to laboratories for final analysis.
Blue Star Capital (BLU) investee company SatoshiPay has appointed Benchmark International to value the business and seek potential acquirers. Blue Star Capital owns 27.9% of SatoshiPay.
Saietta Group (SED) says that its 49.5% owned Indian joint venture has secured an order for complete eDrives from its main client for a second of its light commercial vehicles. The initial order is worth £106,000 over three months and the first full year of production could generate £12.7m. This is the first significant order for the new radial flux technology.
MAIN MARKET
Data integrity and banking integration software provider Gresham Technologies (GHT) is losing business with ANZ its biggest customer. The company will no longer provide sub-contracting services, but ANZ will still use its Clareti software. This was lower margin work, and the focus is on software.
J Smart (Contractors) (SMJ) reported a higher loss on contracting and did not have any disposal gains in its investment activities. That meant that pre-tax profit fell £8/19m to £105,000. There was an operating loss offset by interest income. A 2.27p/share dividend is payable on 29 January.
Andrew Hore
Quoted Micro 18 September 2023
AQUIS STOCK EXCHANGE
An update on the Amapa iron ore project in Brazil from Cadence Minerals (LON: KDNC) says permitting times for the mine and related logistics should be reduced to 12-16 months. An environmental control plan is required to obtain the permits. This will enable a funding decision for the project. Investee company Hastings Technology Metals has expanded its offtake agreement with thyssenkrupp Materials Trading, which will take two-thirds of production from the Yangibana rare earths project.
Invinity Energy Systems (IES) has converted an existing order from Taiwan to its next generation Mistral flow battery. This is a higher margin product targeted at large wind and solar applications. Management is securing additional production capacity with Taiwan partner Everdura.
EPE Special Opportunities (ESO) had net assets of 308p/share at the end of July 2023. Investee company Rayware’s sales have been hit by weak consumer demand. Pharmacy2U continues to grow. Two investments have been sold. Ther was cash of £16.3m at the end of July 2023.
Financial services company Eight Capital Partners (ECP) says its 2021 figures have been restated because of a change in the accounting treatment of the bonds. Non-cash transactions have been removed from the cash flow statement. The book value of the bonds has been changed to fair value and a modified loss recognised on loan liabilities. Net liabilities were £11.4m. The 2022 results show net assets of £25.3m after a debt conversion to equity. A partial reversal of previous fair value adjustments also helped.
Coinsilium Group Ltd (COIN) is providing a convertible loan of $50,000 and has a 12-month option to subscribe for $500,000 for shares in Silta at a pre-money valuation of $7.5m. This means that it could end up with 6.7% of Silta. Last year, Coinsilium entered into an early contribution agreement to buy $75,000 of SILTA tokens. Silta is developing an advanced AI platform for sustainable infrastructure financing.
Hydro Hotel, Eastbourne (HYDP) is paying an interim dividend of 12p/share.
Rod Weinberg has reduced his stake in SulNOx Group (SNOX) from 6.35% to 2.49%. Macaulay Capital (MCAP) managing director David Horner has bought 200,000 shares at 22.5p each. Nigel Pope has taken a 3% stake in NFT Investments (NFT). Gathoni Muchai Investments has trimmed its stake in Marula Mining (MARU) from 12.2% to 11.26%. A warrants subscription at 4p each raised £30,500.
Black Sea Property (BSP) has raised €4.44m from a loan note issue, which is being used to pay for the recent acquisition of a majority stake in Grand Hotel Varna, which owns three hotels and a beach marina resort, plus a mutual fund portfolio. There is still €15.5m to pay.
AIM
Parcel delivery and logistics company DX (DX.) has received a bid approach from private equity firm HIG European Capital Partners. Gatemore Capital Management, which owns 16.8%, says it is willing to support the proposal of 48.5p/share. Management had rejected lower bids, but it would be minded to recommend this one. Due diligence will be required.
Online gaming firm Gaming Realms (GMR) reported interim revenues 35% higher at £11.5m and a 74% increase in pre-tax profit to £2.4m. The licensing business drove the growth. North American revenues increased by 47% and there are more states likely to ease restrictions on online gaming. Growth is coming from moving into new markets and adding new games. There are upfront costs to the expansion, holding back short-term profit. Net cash is expected to be £8m at the year end
Iodine producer Iofina (IOF) increased interim revenues by 27% to $24.3m, while pre-tax profit improved from $2.6m to $4.7m. First half iodine production was 242Mt. Iofina commenced production at its IO#9 plant in Oklahoma at the end of the half year. This is the sixth plant in operation and will help boost second half production to 325-350Mt.
Contract research and infectious disease study services provider hVIVO (HVO) is moving into larger London premises in Canary Wharf. The latest interims have led to an upgrade of guidance for the full year and hVIVO intends to pay a nominal dividend for 2023. Interim revenues were £27.3m, up from £18m, and the full year outcome is expected to be £55.1m with most of the rest of the revenues already contracted.
Construction and property software supplier Eleco (ELCO) increased like-for-like interim revenues by 5% to £13.5m. More importantly, recurring revenues were 18% ahead at £9.7m. This indicates the success of the move to SaaS-based revenues which has held back progress in the short-term. Net cash could reach £10.8m by the end of 2023.
Mkango Resources (MKA) subsidiary HyProMag, which is a short loop rare earth magnet recycler, is participating in a grant funded project called RE-RE Wind, which is designed to provide a circular supply chain for rare earth magnets for wind turbines. The first generation of wind turbines are coming up to the end of their life and a decommissioning programme is required.
Payments services provider Cornerstone FS (CSFS) made a small maiden interim profit. The move into profit was earlier than expected. Interim revenues were 90% ahead at £3.6m and most of this is direct business rather than through third parties. The overheads were held down enabling more of the additional revenues to flow through to profit. Cash is being generated from operations.
Online gaming company B90 Holdings (B90) has raised £2m at 5.44491p/share. The cash will go towards funding acquisitions and further investment in existing assets. The company is also converting £4.73m of loan notes and interest into 86.8 million shares. Enwys, which acquires customers for online gaming companies, has been bought. There are more than 20 other acquisition targets.
Keystone Law (KEYS) is paying a special dividend of 12.5p/share on top of the interim of 5.8p/share. Underlying pre-tax profit was one-quarter ahead at £5.7m, while net cash was £11.3m at the end of July 2023. Interest from new principal lawyers is increasing and 25 offers were accepted in the first half. There is plenty of back office capacity for additional lawyers.
Communications technology developer Feedback (FDBK) is taking time to secure new deals, but they should be on the horizon. The community diagnostic centres contract with the Queen Victoria Hospital has been delayed, but hopefully it should be secured by the end of the year. Feedback is still loss making, even though full year revenues were 74% ahead at £1.02m. The cash outflow, including capitalised development costs, was £3m and the £7.3m in the bank should last more than two years.
North Sea oil and gas producer IOG (IOG) has been told by the authorities that the Nailsworth P2342 and P130 licences are not going to be extended and this could have a negative commercial impact on the potential for the Elland licence. Bondholder discussions continue and the waiver lasts until 29 September. There was £14.5m in cash at the end of August, including £7.3m of restricted cash. There was stable production from Blythe H2, but the realised gas price was lower.
The Property Franchise Group (TPFG) has offset lower revenues from property sales by increasing lettings revenues. Overall interim revenues were 1% ahead at £13.2m. The higher tax rate meant that earnings slipped 2% to 13.8p/share despite an increased profit. The interim dividend was increased by 10% to 4.6p/share.
US-focused betting company Sportech (SPO) plans to leave AIM. It says the burden of time and money is too great. A circular will be sent out to gain shareholder approval at a general meeting.
Bushveld Minerals (BMN) has signed a binding term sheet for a potential $69.5m-$77.5m investment by Southern Point Resources. This includes the acquisition of 50% of Vanchem and 64% of the Mokopane project, plus a $12.5m investment in Bushveld Minerals. There will also be a working capital facility provided. Southern Point Resources will take over marketing and sales of vanadium and other products. The stake disposals will lead to a book loss of $59.6m.
Animal feed ingredients supplier Ocean Harvest Technologies (OHT) raised interim revenues by 43% to €1.8m and gross margins jumped to 36%. Investment in marketing and other aspects of the business meant that the loss was flat at €1.3m. These additional costs should help to generate further sales growth of its seaweed-based feed. Field trials could add up to €13m to annual revenues. However, delays in these trials mean that full year revenues have been downgraded from €4.3m to €3.4m. There should be net cash of €2.9m at the end of 2023.
MAIN MARKET
The FCA has approved the takeover of Lookers (LOOK) by Alpha Auto Group. The bid is 130p/share.
On The Beach (OTB) says its full year results will show record revenues and the holiday company says pre-tax profit will be at the top end of expectations. In the year to September 2022, revenues were £144.1m, which was slightly higher than the pre-Covid level of £140.4m, and underlying pre-tax profit was £14.1m. Consensus forecasts for 2022-23 were revenues of £179.5m and pre-tax profit of £22.6m. The guidance suggests that profit should be slightly higher than that. Even so, underlying pre-tax profit in 2017-18 was higher at £27.6m.
Andrew Hore
Quoted Micro 6 February 2023
AQUIS STOCK EXCHANGE
Altona Rare Earths (ANR) is raising £275,000 via a convertible issued to clients of Optiva Securities. This is convertible at the upcoming £1.25m placing at the time of the move to the standard list and will fund an increase in the shareholding in the owner of the Monte Muambe rare earths project. Align Research has extended its £150,000 loan and with interest £189,750 will be payable on 30 April.
Marula Mining (MARU) is seeking to move to AIM. Cairn has been appointed as nominated adviser and a joint broker with Monecor will be appointed. A competent persons report on the portfolio of assets in Africa will be commissioned. At 6.1p, down 5.43% on the week, the battery metals company is valued at £1.6m. That is low for an AIM company.
Cadence Minerals (KDNC) investee company European Metals Holdings (EMH) says the Cinovec project has been classified as a strategic project for the Usti region in the Czech Republic. This means it can receive grants from the Just Transition Fund. The Cinovec project could receive a up to €49m.
The latest investment by Quantum Exponential (QBIT) is in Oxford Quantum Circuits. The £299,997 investment, for a 0.34% stake, is part of a £869,000 funding round. Oxford Quantum Circuits designs super conducting circuits and plans to expand in Asia.
A company owned by NFT Investments (NFT) executive chairman Jonathan Bixby bought 10 million shares at 0.855p each, taking his stake to 6.43%. NFT investments has secured a temporary restraining order in Delaware that freezes the online warrant holding assets secured in the cybersecurity incident.
Coinsilium Group Ltd (COIN) says that it invested $575,000 in crypto currencies and also entered into advisory work with the issuers. The company says that the crypto currency markets are recovering in 2023. Despite that, Web3 projects have more realistic valuations making them attractive to investors.
KR1 (KR1) has made four new investments in HydraDX and related Basilisk tokens, Superchain, Argent and Metaprime. HydraDX and Argent were existing investments. The total investment is just over $1m.
There have been delays in the provision of the £200,000 bridge loan to TruSpine Technologies (LON: TSP) and it should be received shortly followed by the first tranche of the subscription.
Lift Global Ventures (LFT) has invested £750,000 in convertible loan notes issued by Trans-Africa Energy Ltd, which develops energy infrastructure projects in Sub-Sharan Africa. It has a joint development agreement with Ghana National Gas Company. This covers four projects for processing and transporting natural gas, where Trans-Africa will have a majority stake. The financial close for the first project could be later this year.
Emissions reducing fuel ingredients supplier SulNOx Group (SNOX) grew third quarter revenues by 9% quarter-on-quarter to £45,720. Pro forma cash is £790,000 and cash outflow is being reduced. The fourth quarter has started well, and sales staff are being recruited.
Evrima (EVA) has recovered more than the cost of its $234,000 investment in Premium Nickel Resources through a series of sales raising $299,000. The residual stake is valued at $1.63m. Guy Miller has resigned from the board.
Vulcan Industries (VULC) generated revenues of £968,000 from continuing operations in the nine months to December 2022. The loss was £697,000. Acquisition opportunities have been identified.
Craft spirits producer British Honey (BHC) says revenues fell from £8m to £6m and management is cautious about trading. The review of strategy continues.
Love Hemp (LIFE) refutes comments made by former managing director Philip Small. It has asked for proof of the validity of invoices for money he is claiming. Al his comments are being investigated by the company’s advisors.
Goodbody Health (GBDY) has signed four phlebotomy contracts. This service will be offered through its network of 90 clinics.
Igraine (KING) has invested £100,000 for a 20% stake in Fixit Medical, which has designed the Cingo drainage catheter fixation device. This protects catheters from twisting and kinking.
Gledhow Investments (GDH) had net assets of £1.7m at the end of September 2022, including £112,000 in cash. Net assets fell because of a reduction in the value of the investment portfolio.
In the fourth quarter, RentGuarantor (RGG) increased the number guarantees made by 11%. Over 2022, the demand for services increased by 71% and further growth is expected this year.
ChallengerX (CXS) had £236,000 in cash at the end of September 2022. Developing the company’s platform will require more investment. ChallengerX is also assessing reverse takeovers.
Luciano Maranzana has been appointed chief executive of Eight Capital Partners (ECP). He has been a non-exec for seven months.
Chris Akers continues to build up his stake in Asimilar Group (ASLR) and it has reached 9.13%.
Cooks Coffee Company (COOK) has raised an additional £42,000 at 18p a share. Director Michael Ambrose bought 200,000 of these shares, taking his stake to 1.6%.
Three directors bought shares in S-Ventures (SVEN). Scott Livingston acquired 104,539 shares at 11.1p each, taking his stake to 36.7%. Robert Hewitt bought 44,247 shares at 11.3p each and Alexander Phillips acquired 89,954 shares at 11.1p each. Exercised warrants at 25p each raised £350,000. Head of risk and compliance Simon Mathisen acquired 120,168 shares at 3.5p each in Oberon Investments (OBE), while non-exec Gemma Godfrey bought 200,000 shares at 3.5p each.
AIM
ASX-listed Celsius Resources (CLA) raised £2.4m at 0.8p a share when it joined AIM on 30 January. That valued the minerals explorer at £14.8m. The share price opened at 0.88p and ended the week at 1.025p. The main interest is the Makilala-Caigutan-Biyog (MCB) copper gold project in the Philippines. This is 320km north of Manila. The authorities are apparently fast-tracking the project permitting approvals and mine development. The cash will help to finance further development, but management needs to secure additional debt and/or an offtake agreement to generate the funding required to get the project to bankable feasibility. Celsius Resources owns 100% of the project
All three divisions of NWF (NWF) did better than expected in the first half and the second half has started well. In the six months to November 2022, revenues were 35% higher at £541.8m, while underlying pre-tax profit improved by 44% to £6.2m. The interim dividend is unchanged at 1p a share, although there will be an increase in the final dividend. Net cash was £1.2m at the end of November 2022.
Agricultural products supplier and retailer Wynnstay Group beat expectations that had already been upgraded a number of times in the past year. In the year to October 2022, revenues were 42% ahead at £713m, while pre-tax profit almost doubled to £22.6m. The dividend has been raised for the nineteenth year in a row. The total dividend is 17p a share. High milk prices have boosted feed demand from farmers – with like-for-like growth of 6% – enabling Wynnstay to increase its market share.
Digital transformation services provider TPXimpact Holdings (TPX) downgraded 2022-23 guidance with revenues expected to be £80m rather than £90m. EBITDA falls more sharply and could be around £2m. Third quarter like-for-like revenues were 15% lower and there was a sharp reduction in margins. Net debt was £17.5m at the end of December 2022 and management warns it is likely to breach debt covenants. Director share buying sparked a small recovery in the share price. Finance director Steve Winters acquired 220,000 shares at 21.34p each and former chief executive Neal Ghandhi bought 196,986 shares at 22.45p each.
Morses Club (MCL) gained 75.17% backing to approve the cancellation of the quotation on AIM. This resolution required 75% of the vote so it only just succeeded. Shareholders owning 61.7% of the share capital voted. The last day of dealings will be 10 February. After that, there will be a matched bargain facility on Asset Match.
Immotion (IMMO) is selling its location-based entertainment business for $25.1m, having raised £100,000 from disposing of Uvisan. Shareholders are likely to receive 3p a share out of the sale proceeds with £6.5m retained for the remaining business after buying back shares from management leaving with the location-based entertainment business. Immotion will concentrate on the home-based entertainment business Let’s Explore Media. This will be expanded via acquisitions. The share price was below the proposed dividend level, and it rose to 3.35p. Immotion joined AIM in July 2018 at a placing price of 10p a share.
Parcel delivery and logistics company DX (DX.) has appointed the boss of the Freight division, Paul Ibbetson, as chief executive. He has been with the company since 2017. Interim revenues grew by 15%
Employee benefits services and insurance provider Personal Group (PGH) did well last year with recurring revenues growing but progress was held back by Let’s Connect electronic products provider. Cenkos trimmed its 2022 pre-tax profit forecast from £4.5m to £4m. Net cash is more than £18m.
Sustainable polymers developer Itaconix (ITX) is raising £10.3m at 5.1p a share, while an open offer could raise up to £400,000 more. The cash will fund product development, capital investment and working capital.
CentralNic (CNIC) has sparked the regular upgrade with its fourth quarter figures. Full year revenues were better than expected at $728m. Pre-tax profit was upgraded from $69.2m to $72.4m. CentralNic is partnering with automated hosting resellers platform WHMCS.
MAIN MARKET
Thungela Resources (TGA) is acquiring an effective interest of 63.75% in the Ensham coal mine in Australia for A$267m. This is via 85%-owned Sungela Holdings. Ensham produced 3.2 million tonnes of coal in 2022. The mine life is 16 years. The deal should close in the middle of 2023.
Associated British Engineering (ASBE) made a £5,000 profit thanks to an exchange gain in the year to September 2022. Net assets are £657,000, including £497,000 in cash and £182,000 in investments.
Kelso Group (KLSO) has acquired five million shares in THG (THG) at an average price of 54.5p.
Andrew Hore
Quoted Micro 10 October 2022
AQUIS STOCK EXCHANGE
Arbuthnot Banking Group (ARBB) says full results should be ahead of market expectations of a £13m pre-tax profit. The third quarter trading statement says Arbuthnot Latham deposits exceed £3bn, although costs of deposits are rising. Base rate rises have a positive effect on results as changes to deposit rates lag the rises in interest rates. Credit criteria are being tightened, particularly for property. Assets under management are £1.35bn. Non-exec Sir Nigel Boardman acquired 9.749 shares at 810p each.
Helium Ventures (HEV) has conditionally agreed to acquire Vestigo Technologies, which has developed tracking product Trackimo. Shares will be issued at 10p each and the existing share capital prior to the deal would be valued at £1.68m. Helium Ventures plans to move to the standard list after the reverse takeover. In 2021, Vestigo had revenues of $28.1m and has partnerships with Vodafone and Paramount. Trading in the shares has been suspended.
Quantum Exponential (QBIT) had net assets of £5.6m at the end of April 2022, following an increase in the value of its option in cyber security business Arqit Inc. Since then, two new quantum technology investments have been made. There is still cash for further investments and there are plans to set up a fund that will raise further funds to invest in quantum technology.
Hydrogen Future Industries (HFI) has acquired a suite of international patents through a joint venture. The patents are relevant for the company’s wind-based hydrogen production system, plus other systems. The patents were issued to the vendor when it employed the boss of HFI’s development subsidiary. The payment will be £33,000 in cash, 5.2 million shares and 2.5 warrants exercisable at 12p each, with the second tranche of the payment dependent on the achievement of development milestones.
National Milk Records (NMRP) generated a 6% increase in 2021-22 revenues to £23.2m, while pre-tax profit improved from £1.65m to £2.22m. The dividend was raised by one-third to 2p a share. The milk recording and testing services increased revenues. The biggest increase was in genomics which rose from £292,000 to £488,000 and there is a potential launch in the US during 2023.
EPE Special Opportunities Ltd (ESO) has invested £2m in Denzel’s Ltd, a premium dog snacks brand, which raised £3m in total. Denzil’s has listings in major supermarkets and has launched its own website. It is part of the Tesco Incubator Programme.
There has been a mineral resource upgrade at the Amapa iron project in Brazil, where Cadence Minerals (KDR) owns 27%. The updated resource at Amapa is 276Mt grading 38.33% Fe, up from 177Mt. The measured resource is 55Mt grading 39.26% Fe.
Capital for Colleagues (CFCP) had net assets of £13.8m at the end of May 2022, equivalent to 74.5p a share.
S-Ventures (SVEN) has gained new contracts for its natural food businesses with ASDA, Holland Barrett, Co-op, WH Smith and easyJet. Two retailers in Finland have started stocking company products.
Marula Mining (MARU) has taken a 49% interest in the Kinusi copper mining project in Tanzania. The licences last seven years. In return for the interest, Marula has reimbursed $50,000 of costs incurred by Takela Mining and issued it with 4.5 million shares at 2p each.
Quetzal Capital (QTZ) had £1.07m in the bank out of net assets of £2.86m at the end of June 2022.
Goodbody Health (GDBY) secured a distribution agreement with blood collection services provider Tasso Inc, which supplies virtually painless medical devices to draw a blood sample with no needles. Goodbody’s clinics will be able to extract more blood than from a finger prick.
Hydro Hotel, Eastbourne (HYDP) reinstated the interim dividend at the rate of 14p a share.
Director buying at Kent-based brewer Shepherd Neame (SHEP) pushed the share price 0.4% higher at 672.5p. Richard Oldfield bought 6,000 shares at 675p a share and George Barnes acquired 3,200 shares at 672p each. The final dividend is 15p a share and the shares go ex-dividend on 13 October. Coinsilium (COIN) chairman Malcolm Palle acquired 500,000 shares at 1.9p each, while chief executive Eddy Travia bought 500,000 shares at 1.95p each. The share price rose 8.11% to 2p.
Global Smollan has increased its stake in Samarkand Group (SMK) from 14.8% to 17.6%.
Pioneer Media Holdings Inc (PNER) has raised $1m through a sale of units at 10 cents each. They include one share and one-half of a warrant exercisable at 25 cents. This cash will be spent on technology development and expanding the web3 gaming business.
Invinity Energy Systems (IES) has sold a 1.3MWh VS3 flow battery system for use in a datacentre in Arizona. Amati reduced its stake from 5.87% to 4.92%.
Trading in the shares of Vulcan Industries (VUL), Hot Rock Investments (HRIP) and VVV Resources Ltd (VVV) has been suspended due to failure to publish results.
AIM
Peter Gyllenhammar has taken a 11.2% stake in Pressure Technologies (PRES) following the share price slump after last week’s trading statement. Pressure Technologies had a disappointing second half. There will be a full year loss and the engineering company will also breach covenants on its bank facility. More cash is required. Net debt was £5.4m at the interim stage and it could be £3.9m at year-end. The finance could come from a share issue or a convertible issue or another form of funding. Management is talking to Lloyds about the bank facility. Forecast net assets are £15.4m, including the company’s main factory, which is nearly double the market capitalisation.
Former broker analyst Bill Currie has taken a 4.15% stake in online retailer In The Style (ITS). He is a non-executive director of retail loyalty technology developer Eagle Eye (EYE) and he owns 12.9% of the company. Lombard Odier has cut its stake from 20.1% to 19.8% and Ameriprise Financial has reduced its stake from 5% to 4.39%.
Gateley (GTLY) has acquired patent attorney Symbiosis IP for up to £2.5m. The business made a pre-tax profit of £300,000 in the year to March 2022. This business fits with Adamson Jones.
In video game advertising technology developer Bidstack (BIDS) raised £10.5m at 2.85p a share. Irdeto subscribed for £5m worth of shares. There are plans to develop a platform for sports bodies to control content that appears in their licenced IP. The rest will go on working capital and commercial development.
Public Policy Holding Company Inc (PPHC) is acquiring California-based KP Public Affairs in an earnings enhancing deal. Public Policy Holding Company provides public affairs, crisis management and lobbying services in the US. The acquisition enhances earnings by 2% in 2022 and 9% in 2023.
NWF (NWF) continues to perform strongly with the feed division recovering, helped by higher milk prices, and food distribution trading better than expected. Fuel distribution volumes are lower than in the previous year as people delay refilling their tanks, although margins have improved.
Seeing Machines (SEE) has an exclusive collaboration deal with Magna International for rear view mirror occupant monitoring applications in vehicles. Magan is paying $17.5m in cash ($10m immediately and $7.5m over two years) and investing $47.5m via a convertible note, which is convertible at 11p a share. This should be enough cash to get the driver monitoring technology business to profitability.
Oxford Biodynamics (OBD) is raising £9.1m via a placing at 20p a share and up to a further £2.95m could be raised through a one-for-6.81644 open offer. The share price rose 56.3% to 17.975p, which is still well below the placing price. This cash will help to fund the commercial development of the EpiSwitch CiRT test for cancer, which has been issued with a US reimbursement code earlier in the week.
Parcel and freight delivery company DX (DX.) has published interim figures and it intends to recommence dividend payments. A total dividend of 1.5p a share is expected for 2022-23 and that provides a base for further growth. Cash could still grow steadily. Trading in the shares remains suspended.
PCF Group (PCF) has suspended new lending by PCF Bank while it is trying to raise additional finance. Castle Trust Capital decided not to bid for PCF. Sales of assets and other options to raise money are being considered. There will be further cost cutting.
Battery cells developer AMTE Power (AMTE) has signed a framework deal with the UK Battery Industrialisation Centre to produce up to 60,000 Ultra High Power cells annually. The cells are fast charging and have high power delivery. Production commences in three months and the cells will be used for in-vehicle trials by potential customers – the initial focus is high performance electric vehicles – ahead of the opening of AMTE’s own factory in Dundee in a few years.
Horizonte Mining (HZM) announced a fundraising on Tuesday evening and the size of the placing was increased from £61.7m to £70.5m at 90.5p a share. This larger fundraising has also reduced the contribution from major shareholder La Mancha from £23.8m to £22m. The cash will help to complete the construction of the Araguaia nickel project in Brazil. Total capital cost has increased from $477m to $537m. First production is scheduled for the first quarter of 2023.
Gold miner Chaarat Group Holdings (CGH) has extended the convertible loan notes from 31 October 2022 to 31 July 2023. Interest will be capitalised until the end of October and then the principal of $28.7m plus accrued interest will incur an annual interest rate of 12%. There is also a fee of 1%. If converted there will be 77 million shares issued.
MAIN MARKET
Shell company Milton Capital (MII) floated on the standard list on 4 October. There was £1m raised at 1p a share. The share price ended the week at 1.1p. The initial focus is acquisition targets in the technology sector. Total flotation costs were capped at £50,000 and Peterhouse paid additional costs of £5,955. The first year’s operating costs will also be £50,000.
Data integrity software supplier Gresham Technologies (GHT) has won a £1m plus contract for Clareti Control from a major European financial and banking group. There is also A$19m of work for ANZ in the year to September 2023, which is 15% higher than last year on a constant currency basis. Full year revenues and profit will be ahead of expectations.
Golden Nice International has subscribed £650,000 worth of shares in Anglo African Agriculture (AAAP) at 5p a share. That is a 28.2% stake. There are also 13 million warrants exercisable at 5p each. Golden Nice International has also acquired 65% of convertible loan notes in issue at a 15% discount to face value. They convert into 13.7 million shares at 5p each. The other loan notes will be converted into 7.37 million shares with associated warrants. Andrew Monk and Matt Bonner have resigned and replaced by Andy Sui and Simon Grant-Rennick. The company is changing its name to Everest Global.
Shell company Insight Business Support (IBSU) had net assets of £530,000 at the end of June 2022, including cash of £440,000.
Andrew Hore
Quoted Micro 26 September 2022
AQUIS STOCK EXCHANGE
Interim results from renewable energy supplier Good Energy (GOOD) show a jump in revenues, but a fall in gross profit because of tough margin comparisons. There was a pre-tax loss, but a tax credit meant that there was a profit after tax. The supply business is hedged for the second half of the year and government measures will minimise the impact of higher prices on consumers. The interim dividend was maintained at 0.75p a share. There was £22.2m in the bank at the end of August 2022 following the sale of generation assets. Investee company Zap-Map is partnering with Nissan, which will provide a three-year Zap-Map premium subscription with each electric vehicle.
Brewer Adnams (ADB) reported a reduced loss in the six months to June 2022 as trading recovered. There was a 47% increase in revenues to £30.1m. Some rural and coastal pubs are still less busy in the evenings. Demand for the Jubilee was not as high as anticipated. There is less demand for cask beer. Retail sites are becoming a hub for online deliveries. Trading will be tough in the second half.
Newbury Racecourse (NYR) increased interim revenues from £5.37m to £7.81m as the race days and attendances recovered. A loss of £336,000 was turned into a pre-tax profit of £217,000 in the latest six-month period. The lodge returned to profit, while the profits of the nursery and property were maintained. The dividend paid in the period accounts for the decline in net assets from £48.6m to £45.7m. Management is cautious about race day revenues in the second half.
CBD products supplier Love Hemp Group (LIFE) has paid its £70,000 fine, but it has not finalised the appointment of a new corporate adviser. Robert Smyth has been appointed as finance director.
Eight Capital Partners (ECP) generated revenues of £58,000 in the first half of 2022. The interim loss means that the company has net liabilities. In the third quarter, the company earned £1m of fees from Zamaz (ZAMZ), which joined the standard list earlier in this month.
Secured Property Developments (SPD) did not have any revenues in 2021 and it is seeking properties to acquire. Net assets fell from £427,000 to £386,000, including £430,000 in cash.
Interim figures from Igraine (KING) show £766,000 in the bank at the end of June 2022. Management is in talks with potential investments but has not found a suitable company.
Metals recycler Majestic Corporation (MCJ) reported its maiden interim results as an Aquis company. Revenues fell 17% to $12.9m, but gross margins increased, and pre-tax profit improved from $766,000 to $980,000. There was $2.7m in the bank at the end of June 2022.
Gunsynd (GUN) has made a further investment in ASX-listed Charger Metals NL. Gunsynd has invested A$175,000 at 50 cents a share, as part of a larger fundraising of A$5.5m. Gunsynd will own 5.12% of Charger Metals.
Gold explorer Tectonic Gold (TTAU) says that drilling at Specimen Hill in Queensland has intersected mineralisation earlier than expected. The drilling programme should recommence in October.
Quetzal Capital (QTZ) says that investee company Tap Global Ltd has exceeded 100,000 registered users on its crypto-fiat exchange service platform. Quetzal Capital has invested £1.5m in Tap Global convertibles and has an option to acquire the company.
LED lighting and tea trading company Gowin New Energy (GWIN) did not generate any revenues in the first half of 2022, and it still has net liabilities. The chief executive is funding working capital requirements
Samarkand Group (SMK) has raised £1.98m via an open offer at 55p a share. The cash will finance further growth.
AIM
Judges Scientific (JDG) reported an 8% increase in first half revenues and pre-tax profit improved from £8.5m to £9.6m. The international spread of activities has helped the company to grow. UK sales declined, but they had held up much better in the corresponding period. The interim dividend was raised from 19p a share to 22p a share. The order book stretches out for 21 weeks. WH Ireland has upgraded its full year pre-tax profit forecast from £22.4m to £26m.
Small business finance provider Time Finance (TIME) has frustrated investors with a lack of profit growth in recent years and 2021-22 was not different. However, the new management team has been focusing on its core products and the benefits of this should start to show through this year. Ther are available bank facilities to increase the loan book. Cenkos forecasts an increase in pre-tax profit from £3m to £3.5m. The shares are trading at a discount to net assets of around 50%.
European trading exchange operator Aquis Exchange (AQX) expects to have a strong second half. Aquis Exchange, which is also quoted on AIM, reported interim revenues 21% ahead at £8.3m, although profit was lower due to investment in the technology business. The Aquis Stock Exchange is profitable. The technology division has won contracts that will boost the second half – as well as 2023 – and full year pre-tax profit is expected to rise from £3.2m to £4.2m. The second half will also benefit from the relaunch of the former UBS dark pool trading operation. This should help to rebuild the company’s market share of equity trading.
Brain health assessment technology Cambridge Cognition (COG) increased interim revenues by 31% to £5.9m and the contracted order book is worth £18.6m. The main growth in revenues came from software, but the additional gross profit was used up by increased investment so there was a smaller pre-tax profit of £16,000. There is £8.6m in the bank so there is enough cash to finance planned investment in the technology.
Delays in demand from the automotive market meant that Strip Tinning (STG) revenues declined in the first half. This meant that the company fell into loss. The longer-term outlook for connectors for batteries for electric vehicles is significant. Price rises have been implemented to cover cost increases. There are potential electric vehicle contracts with an annual value of £47.9m, although not all will be won. This should more than make up for the contract recently terminated.
Credit hire and legal services firm Anexo (ANX) continues to trade strongly with interim revenues 42% ahead at £68.6m with no contribution yet from the VW emissions case. There is a small but increasing contribution from housing disrepair claims. Pre-tax profit improved by 53% to £13.6m. This year, pre-tax profit is expected to improve from £24.1m to £26.6m – a small downgrade.
First half figures from cosmetics supplier Warpaint London (W7L) were well flagged and it had already said that revenues in the eight months to August improved from £27.1m to £37.5m. Demand for the main brands is increasing and as well as new retail clients, existing retailers are rolling out the products in more stores. Full year revenues should be more than one-fifth higher at £61m and pre-tax profit could be more than £9m.
Digital coupons and loyalty technology provider Eagle Eye (EYE) reported an improved full year pre-tax profit of £2.5m. Recurring revenues and new contracts provide a positive start to the new financial year. Eagle Eye is growing internationally with enormous prospects in North America, as well as other markets. Cash generation was higher than the capitalised development costs and cash should increase this year.
Parcel and freight delivery company DX (DX.) has completed its corporate governance investigation and says it will improve its processes. It has also published the 2020-21 accounts, but the shares remain suspended.
MAIN MARKET
Retailer Made.com (MADE) has launched a strategic review 15 months after floating on the Main Market. Consumer spending is declining and there have been supply problems. Freight costs increased from £8.2m in 2020 to £45.3m in 2021 and they remain at high levels. The company has been reducing marketing spend, stocks and capital investment. Even so, more cash is required but a share issue is not viable.
First Tin (1SN) has commenced drilling at the Taronga tin project in Australia. Two of the three holes drilled so far have intersected tin ore mineral.
Sivota (SIV) has published the prospectus for the acquisition of digital experience software developer Apester Ltd. The acquisition of the Israel-based company will be completed and Sivota shares readmitted on 26 September.
Trading in the shares of shell company More Acquisitions (TMOR) has been suspended ahead of the acquisition of Megasteel, which is a distributor of steel for concrete. The payment will be between 2.2 billion and 2.8 billion shares at 2.25p each, which is more than double the market price. Megasteel has been trading for more than three decades. Last year’s pre-tax profit was £3m.
Icon Labs (ICON) creditors have agreed a CVA, and shareholders passed the relevant resolutions at a general meeting.
Andrew Hore
Quoted Micro 11 July 2022
AQUIS STOCK EXCHANGE
Hargreaves Lansdown has added stocks in the Access segment of the Aquis Stock Exchange to its electronic trading platform.
Wine maker Chapel Down Group (CDGP) says interim revenues are in line with the same time last year due to the disappointing 2021 harvest. This year’s harvest should be better and full year revenues are expected to be higher. Price increases should help to improve margins. Net cash was £3.76m at the end of June 2022. Net assets are 19.5p a share. Five directors bought shares at between 19.6p and 19.9p a share.
Samarkand (SMK) says trading is in line with expectations in the year to March 2022. Revenues are estimated at £16.5m and the loss at £8.3m. There was £4m in the bank at the end of March 2022. Samarkand provides e-commerce technology and services to clients that wish to access the Chinese market. Trading has been hampered by Covid lockdowns. Management says that trading conditions are improving, although 2022-23 revenues are likely to be flat. Margins should improve.
Clean Invest Africa (CIA) says that clan coal business CoalTech has commenced commercial coal production in South Africa, and it will initially build up production to 3,500 tonnes/month. Production is expected to double in 2023. That could be enough to eventually generate annual net profit of $1.2m.
Ecotricity has increased its stake in Good Energy (GOOD) from 26.1% to 27.2%.
CBD products supplier Love Hemp Group (LIFE) is in discussions with a replacement corporate adviser so that the trading suspension of the shares can be ended. Executive chairman Andrew Male has moved to a non-exec role. Garry Cook has stepped down from the board and replaced by Anthony Dyer.
Invinity Energy Systems (IES) says that the world’s largest hybrid energy storage system, incorporating a 5 MWh Invinity Vanadium Flow battery, was launched at the Energy Superhub Oxford. Jonathan Marren has been appointed as chief development officer, having previously been a non-exec director.
Valereum (VLRM) reported an increased loss of £1.84m for 2021. There is still £1.43m in cash anies, v,ld net assets were £2.51m at the end of 2021.
Forbes Ventures (FOR) has decided that the litigation funding securitisation will not go ahead. Peter Moss, the director handling the deal, has resigned and Forbes Ventures is seeking to recover costs. A potential acquisition is being negotiated.
IamFire (FIRE) has an option to subscribe for up to £3.75m in convertible loan notes in WeShop Holdings Ltd. It paid £250,000 for this option. The conversion price is 100p a share. WeShop has launched its social network shopping platform, which offers shares with every purchase – initially 20% of the purchase price.
AQRU (AQRU) has appointed First Sentinel as corporate adviser and Tennyson Securities as broker. They replace Novum Securities. The decentralised finance-focused incubator has launched AQRU Trend, a high-return strategy optimised for cryptocurrencies designed for small investors to access competitive returns in the crypto market. It is available through the AQRU.io platform.
All Star Minerals has changed its name to Marula Mining (LON: MARU) and consolidated 100 shares into one new share.
Macaulay Capital expects to join Aquis on 22 July. It intends to originate and manage corporate transactions and invest its own funds, in shares and loan stock, along with other investors. Macaulay will earn an arrangement fee, an annual director fee for supplying a director to the investee company and an annual management fee of 2% a year for five years once third-party investors have been repaid their initial investment – payable by the investors. There is also a potential performance fee if returns are better than the threshold set.
Shore Capital has been appointed broker to Arbuthnot Banking (ARBB).
BWA Group (BWAP) has issued 3.35 million shares at 0.5p each in order to satisfy directors fees.
AIM
Immediate Acquisition acquired new bank Fiinu (BANK) for £37.5m in shares at 20p each, which is the same price as in the placing price that raised £8.01m. Pro forma net assets are £11.7m, including £11.2m in cash. Fiinu intends to invest £2.3m of the cash raised in further technology development and £6.6m will provide regulatory capital. Fiinu has developed the Plugin Overdraft, which provides customers with an overdraft facility without the requirement to switch banks. When someone applies for the overdraft via the Fiinu app they give permission for Fiinu to access their account details at their bank. Fiinu can then assess whether they meet the requirements for access to the Plugin Overdraft. Fiinu will take deposits on fixed-terms, and these will fund shorter term lending via the Plugin Overdraft.
In the year to March 2022, Mercia Asset Management (MERC) increased its NAV from 40p a share to 45.6p a share, thanks to valuation increases in some of its direct investments. The investment manager had Assets under management of £959.2m at the end of March 2022 and this has subsequently risen above £1bn following VCT fundraisings. The dividend has been raised from 0.3p a share to 0.5p a share. There is cash and short-term investments of £61.3m.
CML Microsystems (CML) improved full year revenues from £12.5m to £17m, underlying pre-tax profit doubled from £1.1m to £2.2m. The investment in technology development is starting to pay off with design wins for internet of things, 5G and satellite products. These design wins will be making significant contributions in two years. Net cash is £24.6m and the dividend was raised from 9p a share to 10.8p a share. A 2022-23 pre-tax profit of £2.5m is forecast with cost rises offset by increasing volumes.
Fashion retailer Quiz (QUIZ) reported a strong recovery in revenues from £39.7m to £78.4m and it moved back into profit last year. Revenues are still much lower than pre-pandemic levels, but the £800,000 pre-tax profit is similar to the level prior to Covid-19. There were £1m of government grants included in income in the year to March 2022. There was an operating cash inflow of £5.3m and net cash was £4.4m. There was a strong recovery in UK stores revenues, but online also grew. Price rises will help to maintain gross margin. First quarter sales are 62% ahead at £27.3m and there could be further improvement in profit this year as long as overheads are controlled.
Iodine producer Iofina (IOF) has secured debt funding for expanding capacity. There were 234 metric tonnes of iodine produced in the first half of 2022. Second half production should be between 255-275 MT. Iodine prices are higher than $70/kg.
Shares in parcel and freight delivery company DX (DX.) remain suspended, but it believes that its 2020-21 accounts and the corporate governance investigation could be finalised before the end of September. Trading remained strong in 2021-22 and net cash is £27m. That could provide scope for dividends or some other way of returning cash to shareholders.
D4T4 Solutions (D4T4) is paying a 12.5p a share special dividend following better than expected figures for the year to March 2022. The underlying pre-tax profit declined from £4.4m to £3.3m as a move towards a subscription model delayed revenue recognition. Annual recurring revenues were £14m by the end of the period.
Stripping out flotation related costs, 4Global (4GBL) made an operating profit before government grants. The sports data and analysis company increased revenues from £2.68m to £3.64m, which is around pre-Covid levels.
Cambium Global Timber (TREE) is holding a general meeting on 3 August to gain shareholder approval to cancel the AIM quotation and wind up the company. There is £5.47m in the bank and a further £1.5m of deferred consideration is due. Cost reductions will be made and there will be an initial distribution of 6.5p a share. There could be a second distribution of 1.5p a share.
MAIN MARKET
Kitchenware retailer ProCook Group (PROC) made a pre-tax profit of £9.5m on revenues of £69.1m last year. That was in line with downgraded expectations. The dividend is 0.9p a share. Like-for-like revenues have fallen by 16% so far this year, but there are short-term indications that the market could be improving. ProCook continues to win market share, but pre-tax profit is likely to be lower this year.
Spiritus Mundi (SPMU) is a cash shell seeking acquisitions in the clinical diagnostics sector and it has directors with experience in this area. A subscription raised £280,000 at 5p a share and along with previous share issues, this means that there is around £1m of cash available. Pro forma assetd are just over 2p a share.
Data integrity and control software provider Gresham Technologies (GHT) says interim revenues were 56% higher at £23.1m, including a full six-month contribution from Electra Information Systems, which was acquired in June 2021. Organic revenue growth was 19%. Clareti software annual recurring revenues are £25.9m. Net cash is £6.4m. The interims will be announced on 26 July.
Andrew Hore
Quoted Micro 15 November 2021
AQUIS STOCK EXCHANGE
Brewer and pubs operator Shepherd Neame (SHEP) is starting to recover from lockdowns. Pubs started to reopen outdoors on 12 April, while indoor trading recommenced on 17 May. From that point pubs achieved 97% of 2019 trading levels. Since June, drinks sales have been down on the 2019 level, but food and room revenues were higher. In the year to 26 June 2021, revenues fell from £118.2m to £86.9m with both periods hampered by Covid-19 lockdowns. There was a swing from a pre-tax profit of £1.5m to a loss of £4.2m. A revaluation of licenced pubs shows a surplus over book value of £35.9m, which is a 13% uplift not reflected in the NAV of 1140p a share.
Silverwood Brands (SLWD) is a shell focused on food and lifestyle acquisitions. It raised £1.03m at 40p a share. The share price ended the week at 43.75p. NAV is 35p a share. The strategy is to build up a portfolio of consumer brands. The cash raised in the flotation and prior to the admission will help to identify targets and carry out due diligence. Directors Andrew Gerrie and Andrew Tone were both involved in building up the Lush handmade cosmetics business.
In the first quarter National Milk Records (NMRP) revenues increased by 8% to £5.72m. There was a small decline in revenues for testing for Johne’s disease, while the core milk testing business increased revenues, although the comparatives were for a weak period when lockdown was ending. The launch of genomic services under the GeneEze brand is planned for this winter. UK milk prices are exceeding 40p a litre, although the costs for farmers are increasing.
SulNOx Group (SNOX) has 600 potential customers and 130 trials proposed or underway. This includes vehicle and marine clients for the fuel emulsification additive.
Pharma C Investments (PCIL) has made its first cannabis-related investment in Product Earth Expo UK, which runs an annual CBD trade show in Coventry. A £275,000 investment gives Pharma C a 7.5% stake. Product Earth also offers a digital marketing service. Tom Toumazis, the former boss of European newspapers publisher Mecom, is chairman of Product Earth and Pharma C investment strategy director Gavin Sathianathan is also a director. At the end of October, Pharma C had cash of £608,000.
Sativa Wellness Inc (SWEL) increased revenues in the nine months to September 2021 by 724% to £9.88m. This enabled Sativa to move into profit, although it is a modest one. Trading has been boosted by demand for Covid tests and the range of tests is being broadened.
Rutherford Health (RUTH) is partnering with BUPA, which will open clinics within the company’s sites and refer patients if they have symptoms of cancer. The first clinic will be opened at Rutherford’s Liverpool cancer centre and the second in Northumberland.
Spirits company Rogue Baron (SHNJ) has raised £200,000 at 7p a share, which is just above the market price. Each of the placing shares comes with a warrant exercisable at 7p. The cash will be used to acquire additional stocks of Shinju whisky.
Valereum Blockchain (VLRM) has raised £197,500 from the exercise of warrants.
David Evans has increased its stake in Oberon Investments Group (OBE) from 7.61% to 8.15% and Rodger Sargent has a 3.14% shareholding.
EPE Special Opportunities Ltd (ESO) had net assets of 536.19p a share at the end of October 2021.
AIM
Firering Strategic Minerals (FRG) has a 51% stake in the Atex lithium and coltan project and has the option to increase it. Firering raised £4m at 13p a share and expenses were £516,000. The money raised will finance the £1.55m cost of the exploration spending for Atex for the next two years. There is also potential to generate revenues from tantalum production within 18 months, which will help to finance further development.
The Life Science REIT PrimaryBid offer closes on 15 November, and investors can apply for shares in the intermediaries offer via Interactive Investor and other firms by 16 November. A 4% yield is being targeted, based on the issue price of 100p a share, with annual growth of 5%. Life Science REIT will be the first London-quoted REIT focusing on life science properties. The types of properties will include laboratories, offices and manufacturing facilities and they will be situated in Oxford, Cambridge and London. There is strong demand for these properties from companies and organisations and a lack of supply. It is estimated that up to 20 million square feet of additional office and laboratory space will be required over the next two decades. The target for the offer and placing is up to £300 million.
Parcel and freight delivery company DX (DX.) continues to make a rapid recovery despite the uncertainties of the past year. Group pre-tax profit improved from £200,000 to £12m with freight’s improvement offsetting the decline in profit in the rest of the group. Net cash was £16.8m at the end of June 2021 and there could be a dividend this year. finnCap maintained its 2021-22 pre-tax profit forecast at £16.5m.
Tracsis (TRCS) has shown the solidity of its rail technology and services revenues and the more volatile data and events business has started to recover. Revenues edged up from £48m to £50.2m, with most of the growth coming from acquisitions. Rail technology revenues grew, but the data and events division reported a small decline. According to finnCap, adjusted pre-tax profit improved from £8.3m to £10.9m. Since the end of July, Tracsis has acquired Dublin-based Icon Group, which made a pre-tax profit of £800,000 in 2020, and this will be integrated with the similar UK data analysis operations.
Chain and transmission equipment manufacturer Renold (RNO) is managing to pass on higher materials prices and the chain division revenues have recovered. Group interim revenues were 17% ahead at £95.3m, while pre-tax profit was 52% higher at £5m. Order intake was 55% higher at £113m. Net debt is £13.9m. Forecast full year earnings are 3.2p a share.
Media localisation and post-production services provider Zoo Digital (ZOO) is growing revenues on the back of the international expansion of streaming platforms and broadening the range of services that it offers. New production projects are starting to ramp up and that provides further growth opportunities. Interim revenues jumped from $16.4m to $26.9m and there was a small operating profit.
Insolvency litigation financer Manolete Partners (MANO) continued to generate cash before investment in new cases during the six months to September 2021. Revenues were lower than the first half of 2019-20 when there was a large case settlement, but they were higher than the second half. Interim profit fell and that is why the interim dividend has been reduced from 1.17p a share to 0.39p a share. New case enquiries are rising.
Maestrano (MNO) has won a new contract for surveying an electricity transmission line in Australia. The 700km line goes from Wagga Wagga to the South Australian and the contract runs between 2022 and 2025. This shows there is demand for the surveying technology outside of the rail sector.
MAIN MARKET
Property investor Town Centre Securities (TOWN) says that the latest valuation shows a 0.3% increase over the June 2020 valuation. Since then, a London property has been sold for £3.85m, which is 6% above the 2020 valuation. Rent collections are back to pre-pandemic levels. The full year results will be published on 24 November.
Cookware supplier Procook (PROC) joined the premium list at a valuation of £158m at the placing price of 145p a share. Procook ended the week at 159.75p.
Andrew Hore
Andrew Hore – Quoted Micro 26 July 2021
AQUIS STOCK EXCHANGE
Ecotricity has launched a 340p a share cash bid for Good Energy (GOOD). Ecotricity believes the combined group would be better placed to compete in the energy supply business. The Good Energy board rejects the bid.
Arbuthnot Banking (ARBB) reported a bounce back in interim pre-tax profit from £200,000 to £3m. the main profit improvement was at Arbuthnot Latham. NAV was 1292p a share at the end of June 2021. Assets under management reached £1.22bn. A second interim dividend of 16p a share was announced, and it will be paid on 24 September.
NQ Minerals (NQMI) says its Hellyer gold mine generated revenues of A$19.8m in the second quarter, while net income was A$5.7m. The major capital investment in the mine cost A$16.4m and was finished during the quarter. NQ Minerals is still seeking to move to a full listing on the London Stock Market.
Sativa Wellness Inc (SWEL) generated record revenues in the first half of 2021, and it is generating cash from operations. CBD products supplier Goodbody Botanicals is profitable. There have been 47 clinics opened to offer Covid-19 testing.
Apollon Formularies (APOL) says that medicinal cannabis formulations developed by its subsidiary have been able to kill prostrate cancer cells.
Watchstone Group (WTG) management recommends that shareholders reject the mandatory 34p a share bid.
Ervin Kovac has resigned as director of Freyherr International (FRYR) and the shares remain suspended as the company’s financial position remains uncertain. Trading was suspended more than nine months ago.
Harry Hyman has taken a 3.08% stake in Oberon Investments (OBE).
Newbury Racecourse (NYR) is moving from the Access segment to the Apex segment.
AIM
Digital payments business Boku (BOKU) increased interim revenues by 37% to $34m – organic growth was 21%. Investment is increasing in order to take advantage of growth prospects, but cash is also increasing.
Trading is improving at employee benefits services and insurance products provider Personal Group (PGH) and interim revenues were 12% ahead at £34m even though weak insurance sales last year mean that premium income fell. SaaS-based revenues increasing by 50% – helped by the partnership with Sage. Sales of consumer electronics products through PG Let’s Connect has improved by one-fifth.
Insolvency levels remain relatively low, but Begbies Traynor (BEG) still grew strongly last year. In the year to April 2021, underlying pre-tax profit improved from £9.2m to £11.5m – a combination of organic and acquisitive growth. There is more to come this year from recent acquisitions.
Lawyer Gateley (GTLY) managed to increase its pre-tax profit from £18.1m to £19.3m despite the tough trading conditions in the year to April 2021. The property and corporate finance divisions did particularly well last year. This kept utilisation levels high. A final dividend of 5p a share was announced. Gateley is paying £815,000 for Tozer Gallagher, which is a quantity surveyor and construction consultant.
Online womenswear retailer Sosandar (SOS) increased its full year revenues by 35% to £12.2m. It remains loss-making and that is likely to continue this year even though revenues continue to grow rapidly. First quarter revenues jumped by 256% to £5.7m, although the comparatives were weak. Active customers increased by 23% compared with the previous quarter. Singer forecasts double full year revenues to £24.4m.
Parcel and freight delivery company DX (DX.) is still growing its freight business faster than expected and analysts have upgraded their forecasts for 2020-21 and the current year. The additional business is also more profitable than in the past. DX Express revenues are flat due to lower office mail delivery revenues.
Judges Scientific (JDG) had a much better order book at the end of June 2021. It was 49% higher than June last year. Organic sales growth was 5% compared with full year forecasts of 1.5%.
Open Orphan (ORPH) spin out Poolbeg Pharma (POLB) has started trading on AIM. The shares are trading at 10.875p, which is equivalent to 3.63p a share to Open Orphan shareholders. The Open Orphan shareholders cannot sell yet.
Vela Technologies (VELA) has invested £750,000 in Northcoders Group, which joins AIM on 27 July. Manchester -based Northcoders provides software coding training.
International payments business Cornerstone FS (CSFS) is pursuing potential acquisitions, but it has not secured any since it floated earlier this year. The mix of business remains consistent, although more of it is direct which improves margins, and trading has almost returned to pre-pandemic levels.
MAIN MARKET
New shell Acceler8 Ventures (AC8) has soared from its placing price of 100p to 215p on limited volumes. After expenses, the cash in the company is equivalent to 60p a share. The sector of the potential target has been kept vague.
Sivota (SIV) is a shell that wants to acquire Israel-based technology businesses. The company has just under 78p a share of cash. The share price has risen from the placing price of 100p to 112.5p.
NMCN (NMCN) is making progress with the refinancing and related documentation. The 2020 accounts are expected to show a pre-tax loss of much more than the £24m previously indicated.
Aquaculture technology developer OTAQ (OTAQ) increased full year revenues by 18% to £4.05m, while the underlying loss was reduced from £1.05m to £726,000. Restrictions have held back the progress of the business.
Town Centre Securities (TOWN) has collected 88% of the billed rent of £4.9m for the quarter to June 2021 with a further 8% that was agreed to be deferred.
Andrew Hore
Andrew Hore – Quoted Micro 8 March 2021
AQUIS STOCK EXCHANGE
Installation services provider and engineer Field Systems Designs Holdings (FSD) reported a dip in interim revenues due to Covid-19 and lack of work in the water sector. In the six months to November 2020, revenues halved from £11.5m to £5.7m and the loss increased to £209,000. Net assets improved from £3.87m to £3.93m with cash increasing from £4.34m to £5.6m. There are signs of water projects being announced.
Gunsynd (GUN) says its investee company Rogue Baron should join the Access segment on around 12 March. Gunsynd will own 28.48% of the drinks company and retain £111,000 of convertible loan notes.
Forbes Ventures (FOR) says that a £40m tranche of two-year notes is expected to take place in Malta in the middle of March. A further £60m should be listed within two months of the first tranche. A subsidiary of Forbes will receive a one-off fee of 2% of the funds raised.
Capital for Colleagues (CFCP) had net assets of 57.96p a share at the end of February 2021. There was cash of £2.68m. It has subsequently sold the investment in Anthesis Consulting for £1.15m. This was previously valued at £705,000.
Upper Thames Holdings (UPPT) is changing its name to Valereum Blockchain. The company has initiated the launch of the first series of securitised derivative tokens on a regulated cryptocurrency exchange, which should happen within two months. This will enable trading in currency and other products.
KR1 (KR1) has raised nearly $256,000 by selling tokens in Stake DAO. KR1 still has the rights to more than 700,000 SDT tokens and these will vest over 23 months. KR1 has spent $75,000 of the cash on a stake in LazyLedger Labs.
Exploration by Wishbone Gold (WSBN) has identified high grade silver and base metals potential at the Cottesloe project in Patersons Range Western Australia.
Coinsilium Group Ltd (COIN) is linking with 10%-owned Indorse to launch a Non-Fungible Token development studio in Gibraltar.
Quetzal Capital (WENP) has appointed Peterhouse as corporate adviser and raised £432,000 at 0.7p a share. Chris Akers will own a 9.4% stake.
Block Commodities (BLCC) has appointed First Sentinel as corporate adviser and trading in the share has recommenced. Altona Rare Earths (ANR) has appointed Optiva Securities as broker, and it hopes to move to the standard list in the second quarter.
World High Life has changed its name to Love Hemp Group (LIFE). It has appointed Hannam and Partners as financial advisor. Chris Cleverly and Elias Pungong have left the board.
AIM
Coral Products (CRU) has completed the sale of two plastic mouldings businesses and acquired Customised Packaging for £1.25m in cash and shares issued at 11p each. If 2021 profit is greater than £250,000 the vendors will receive 30% of the excess profit (capped at £250,000). Customised Packaging generated revenues of £2.3m in 2020. The Manchester-based business designs plastic products using sheet extrusion technology and vacuum forming capability. WH Ireland has been appointed as nominated adviser and broker.
Interims from parcel and freight delivery company DX (LSE:DX.) showed a 7% rise in revenues to £182.7m with strong growth in freight offsetting a fall in the express division. That enabled DX to move from loss to a pre-tax profit of £3.8m. New depots are being opened because of the demand for the company’s services, while the document exchange business is being revamped. Non-executive director Paul Goodson has acquired 176,810 shares at an average price of 28.25p.
In 2020, Franchise Brands (FRAN) improved pre-tax profit from £4.07m to £4.84m, helped by a full contribution from Willow Pumps. The dividend was increased from 0.95p a share to 1.1p a share. Income returned to growth in the fourth quarter and there has been a good start to 2021. That sparked a forecast upgrade for pre-tax profit to £6.1m.
The bid for AFH Financial (AFHP) has been increased from 463p a share to 480p a share.
BlueRock Diamonds (BRD) has raised £1.5m at 40p a share. This cash will be used to complete the weather delayed installation of the new processing plant at the Kareevlei diamond mine so that annual production can be raised to one million tonnes. There have been 29 production days lost to rain. The first two diamond tenders of 2021 have achieved an average diamond price of $423/carat, which is higher than the average price assumed for the full year.
Maestrano (MNO) has taken advantage of its strong share price to raise £2m at 13p a share. This will help to grow revenues of the Corridor.ai digital surveying platform for the rail sector. There is still manual rail survey business that can be done digitally.
In 2020, the revenues of MTI Wireless Edge (MWE) rose by 2% to $40.9m, while pre-tax profit jumped from $3.41m to $4.06m. The net cash position was better than expected at $9.44m. The dividend has been increased by one-quarter to 2.5 cents a share. The antennas business is winning larger 5G orders and the electronic components division is converting design wins into production orders.
Virgin Wines (VINO) ended the week at 225.5p a share, having floated at 197p a share.
Prospex Energy (PXEN) has completed the purchase of a 49.9% stake in the El Romeral gas and power operation in Spain. There is potential to increase production from the three producing gas wells and this could also help increase the amount of electricity generated from the 8.1MW power station, which is running well below capacity. An offshore gas well should start production later this year.
Safestay (SSTY) has sold the smallest of its three hostels in Barcelona for the book value of €900,000. Safestay is due to the final consideration of €1.18m for one of the other Barcelona hostels.
MAIN MARKET
Caerus Mineral is acquiring New Cyprus Copper and joining the standard list. A placing has raised £2.25m at 10p. There is a portfolio of exploration licences in Cyprus. There is potential for near-term mining of resources on closed copper mines and extensions of existing orebodies.
Argo Blockchain (ARB) says from this month chief executive Peter Wall will be paid in Bitcoin and other employees will be given the chance to follow suit. Argo held 599 Bitcoin at the end of February, having mined 129 (equivalent to £4.34m) during the month.
Emmerson (EML) plans to switch from the standard list to AIM ahead of the commencement of construction of its mine at the Khemisset potash project.
HeiQ (HEIQ) is acquiring 51% of Chrisal NV, a profitable industrial biotechnology company that has developed a symbiotic interior cleaner called Synbio with enhanced cleaning performance.
Castillo Copper (CCZ) expects the modelling of a JORC resource for the Big One deposit should be completed shortly. Drilling will resume when the wet season ends.
Boston International Holdings (BIH) is not going ahead with the reverse takeover of invoice factor Alexanders Discount. The shares remain suspended.
Starcrest Education The Belt and Road (OBOR) says that the purchase of 60% of The London School of Science and Technology is unlikely to happen before June.
Andrew Hore
Andrew Hore – Quoted Micro 8 February 2021
AQUIS STOCK EXCHANGE
Clinical IT developer DXS International (DXSP) is encouraged by the initial results from pilots of the ExpertCare system designed to analyse the electronic records of people with hypertension. DXS is awaiting NHS accreditation.
World High Life (LIFE) has appointed Tony Calamita as chief executive. He is a founder of Love Hemp, whose vendors will receive deferred consideration of £2m in shares at 1.5p each. Calamita will hold a 13.5% stake. The company has raised £467,000 at 1p a share.
Juliet Davenport is stepping down as chief executive of Good Energy (GOOD) but will continue as a non-executive. Good Energy company Zap-Map has signed up ESB Energy to its Zap-Pay electric vehicle charging payment service.
Capital For Colleagues (CFCP) has sold its investment in civil engineering materials distributor Civils Store for £1m, which represents a profit of 150% on a £400,000 investment. The initial £500,000 will be received on 15 February and the rest by the end of July.
EPE Special Opportunities (ESO) increased its NAV by 38% to 437.63p a share during the year to January 2021. EPE raised £10m from the sale of LED lighting company Luceco (LUCE) shares and retains a 24.9% stake.
Belvedere Leisure (BELV) reported a loss of £499,000 for the year to June 2020. There were the costs of the flotation of the corporate bonds.
Rutherford Health (RUTH) has approval to treat patients at its North West cancer centre. The first patients should be treated in 2022.
Tectonic Gold (TTAU) has been promoted to the Apex segment of the AQSE Growth Market.
Eastinco Mining (EM.P) has appointed Novum Securities as its corporate adviser.
AIM
A higher interim profit contribution from fuels partly offset lower contributions from the rest of the NWF (NWF) businesses. Group revenues fell from £348.9m to £309.4m, while underlying pre-tax profit declined from £3m to £2.5m. The main decline was in food distribution where volatile demand hampered profitability. The cold weather will boost demand for heating oil in the second half.
Document management services provider IDOX (IDOX) improved revenues from £65.5m to £68m and pre-tax profit from £7.7m to £10.5m. There is further potential to improve margins. The order book at the end of October was £15.9m. Having sorted out the business, management is considering returning to the acquisition trail.
Mattioli Woods (MTW) is paying up to £2.34m for wealth management adviser Montagu. There are £80m of assets under advice.
STM Group (STM) expects to report a £2m pre-tax profit on revenues of £24m in 2020. There was net cash of £15.5m. Therese Neish is stepping down as finance director.
BlueRock Diamonds (LON: BRD) has revealed a significantly increased resource at the Kareevlei diamond mine in South Africa. There was a 49% increase in resource to 10.4 million net tonnes and a 53% increase in net carats to 516,200. The overall grade has edged up to 5 carats per tonne. There was 19% of the resource upgraded to indicated resources. BlueRock plans to mine one million tonnes per annum.
Strong first half trading at parcel and freight delivery company DX (DX.) has prompted finnCap to increase its forecast pre-tax profit for the year to June 2021 by £2m to £8.7m. The business continues to recover with profitability building up in the freight division.
Open Orphan (ORPH) has opened a new challenge study quarantine facility across the road from its existing centre in east London, which is already booked up for this year. This adds a further 19 beds.
Compliance and energy saving services provider Sureserve (SUR) has doubled its dividend to 1p a share. Less traffic on the road during the original lockdown helped to improve efficiency and margins. Shore has increased its 2020-21 pre-tax profit forecast by 16% from £9.4m to £11.9m.
Lexington Gold (LEX) has received environmental approvals for drilling at the JKL project in the US. Drilling should commence later in February. Pure Ice Ltd has increased its stake from 14.3% to 15.1%.
Advanced surface coatings provider Hardide (HDD) has raised £790,000 at 30.9p a share and secured a CBILS loan of £250,000. This will boost the cash position while the company waits for delayed work to come through.
Seeing Machines (SEE) says interim revenues will improve by 15% to A$18.1m. The driver safety systems developer’s annualised recurring revenues are A$15.5m.
Real-time software provider Checkit (CKT) has acquired its US distributor Tutela Monitoring Systems for £850,000.
Lok’nStore (LOK) acquired its Chichester self-storage site has been acquired for £4.2m, with the cash outflow offset by the £1.5m disposal of the Wolverhampton freehold and £1.7m sale of the vacant Southampton site – around £300,000 lower than book value. Contracts have been exchanged for a new site in Staines. Self-storage has proved to be resilient during Covid-19 lockdowns. Occupancy rates are rising, and prices have been stable at Lok’nStore.
Filtronic (FTC) made a small first half loss but the outlook for the full year is better. New defence contracts and increasing 5G-related demand will help the second half and the defence orders are at higher margins. Full year revenues are set to fall but pre-tax profit could treble to £300,000. Capex requirements are low so the business should be cash generative.
Bacanora Lithium (BCN) has raised £48.1m from a placing and retail offer at 45p a share. Ganfeng has also subscribed for £24m worth of shares. This will finance the development of the Sonora lithium project. It will pay for the 50% share of the cost of bringing stage one into production.
Evgen Pharma (EVG) has launched a placing and open offer to raise up to £11m at 8p a share. This will fund preclinical work on metastatic breast cancer and two other potential treatments, including glioma where there could be a clinical trial. The cash should last until the middle of 2023.
MAIN MARKET
Thalassa Holdings (THAL) is making a £2.5m investment in London Medical Laboratory. Thalassa will lend the company £2.5m to finance the opening of a phlebotomy clinic and increase capacity at existing facilities. The loan would be converted into shares if London Medical Laboratory floats on AIM. Thalassa also has warrants to subscribe for an 8% stake in the fully diluted share capital.
French Connection (FCCN) says Spotlight Brands and Go Global Retail are potential bidders for the clothing retailer.
Personal products supplier InnovaDerma (IDP) has rebuffed an all-share offer from Creighton (CRL) although the potential bidder is still interested in making an offer and has sent a letter to InnovaDerma. This suggests an offer of two share for every three InnovaDerma shares, which is equivalent to around 44p a share.
BATM Advanced Communications (BVC) says full year revenues were at least $180m, which is 45% ahead of the previous year. The diagnostics business is the main impetus behind the growth.
Argo Blockchain (ARB) has taken a 25% stake in Pluto Digital Assets. This cost £1m at 3p a share and there are also warrants exercisable at 6p a share. Pluto is a crypto venture capital and technology company.
Andrew Hore