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Quoted Micro 4 April 2022

AQUIS STOCK EXCHANGE

In 2021, Good Energy (GOOD) revenues were 12% higher at £146m, while underlying pre-tax profit recovered from £500,000 to £2.6m. Since the year end the sale of the generating assets has boosted the balance sheet making it debt free. A final dividend of 1.8p a share takes the total for the year to 2.55p a share. Investment in billing platforms will help improve efficiency. The Zap-Map EV charging services business remains a focus of growth, along with an accelerating smart meter roll out. Even though trading conditions are tough, Good Energy could improve its profit this year.

Brewer Shepherd Neame (SHEP) is returned to profit at the interim stage, and it is paying an interim dividend of 3.5p a share. In the six months to December 2021, revenues increased by 55% to £78.7m, which is similar to the six months to December 2019. A loss of £7.2m was turned into a profit of £5.4m. Net debt is £82.4m after paying delayed VAT liabilities. Net assets are 1176p a share, excluding property revaluations. In the 13 weeks to 26 March 2022, like-for-like managed pub sales are 10% ahead, but it is a weak comparative. Costs are increasing and Peel Hunt has trimmed its full year pre-tax profit forecast from £8.6m to £7.2m.

ProBiotix Health (PBX) started trading on the Access segment having raised £2.5m at 21p a share. The share price ended the week at 21.5p, valuing the company at £26.2m. The company has been spun-off by OptiBiotix Health (OPTI), which retains a 44% stake after issuing ProBiotix shares to its own shareholders. They will not be able to deal in the shares for nine months. The core product developed by ProBiotix is LP-LDL ®. Studies have shown that the product can reduce cholesterol levels.

AIM-quoted European equities exchange operator Aquis Exchange (AQX) joined the Apex segment of the Aquis Stock Exchange on the same day as it reported full year figures. In 2021, revenues were 42% ahead at £16.2m, while pre-tax profit jumped from £470,000 to £3.22m. Net cash is £14.1m, after spending £1.1m on buying back shares. The company’s market share of pan-European trading improved from 4.7% to 5.2% and the purchase of the non-displayed matching pool of UBS could add a further 0.6% of market share. Liberum forecasts further growth in pre-tax profit to £4.2m this year.

Oberon Investments (OBE) is raising £3.4m at 6p a share in a significantly oversubscribed placing. The broker and investment manager wants to spend the cash on expanding its corporate finance and wealth management operations.

Pharma C Investments (PCIL) invested £100,000 in AIM-quoted Celadon Pharmaceuticals (CEL), formerly Summerway Capital, at 165p a share. Trading started on 28 March and the share price subsequently fell to 130p. Vertigrow, which was established in 2018, reversed into Celadon and it grows indoor hydroponic, high THC cannabis, which will be used for medicines to treat chronic pain. A Home Office licence to legally grow medicinal cannabis was received in July 2021 and it has been renewed until January 2023.

KR1 (KR1) has invested $1.5m in Subspace Labs Inc and it will receive a yet-to-be determined number of tokens. Subspace Network is an eco-friendly blockchain that enables scalable chain storage and computing.

Gunsynd (GUN) owns 1.25 million shares in Media Tech SPAC, which is acquiring Scandinavia-based Drylab A/S, which has developed a subscription-based film and TV production platform. The technology allows reviewing and sharing of filmed takes in real-time, uploads those filmed takes to a cloud-based platform and saves time and costs. The service is designed to work without internet access.

Vulcan Industries (VULC) has sold M and G Olympic Products, which manufactures architectural metalwork, for £1. This is part of refocusing on fabrication businesses.

Cadence minerals (KDNC) has agreed to sell its 31.5% stake in Lithium Technologies and Lithium Supplies in return for £3.72m.

The attempt to remove the chairman and the other resolution put forward at a requisitioned general meeting of Love Hemp (LIFE) were heavily defeated.

Pioneer Holdings Inc (PNER) has acquired Crowdform, which creates apps and websites for brands and start-ups.

Trading in Hot Rocks Investments (HRIP) shares was restored after it reported 2020-21 results and interims to September 2021. There was cash of £93,000 and net assets were £788,000 at the end of September 2021.

Tectonic Gold (TTAU) had £396,000 in the bank at the end of 2021 and management says that it is well funded even though there have been delays to exploration.

Lombard Capital (LCAP) had net liabilities of £2.29m at the end of 2021. The directors are trying to refinance the company.

Hydrogen Future Industries (HFI) has incorporated a subsidiary to develop wind and water-based hydrogen production systems.

Evrima (EVA) has replaced corporate adviser Keith Bayley Rogers with Novum Securities.

Kasei Holdings (KASH) says that its chair Jane Thomason Abigail subscribed £150,000 for new shares at 20p each.

AIM

Digital payments business Boku (BOKU) improved its underlying pre-tax profit from $8.8m to $11.8m in 2021. Longer-term, eWallet activity will help to accelerate growth. Monthly average cash balances are running at $50.8m. Boku will be hit by the loss of Russian revenues that were likely to be around $1.5m.

NWF (NWF) says that its fuels business is making a profit of 2p a litre, compared with 1p a litre under normal circumstances. This will boost cash flow, but it is not likely to be repeatable. Full year profit will be much better than expected.

Artisanal Spirits (ART) achieved strong growth in the UK, China and the US last year. Member lifetime value increased from £932 to £1,445, helped by retention rates improving to 77%. The investment in casks of whisky is paying off with the value of the stocks increasing by 26%. Current year revenues are growing by 30%.

EKF Diagnostics (EKF) increased 2021 revenues by 25% to £81.8m. Even stripping out one-off Covid business, the growth was 14%. Pre-tax profit improved from £15.4m to £21.4m. Net cash was £19.6m at the end of 2021, although that was prior to an additional investment in Verici Dx (VRCI). Some of the cash pile is being invested in expanding the fermentation capacity in Indiana. There are plans to buy back up to nine million shares.

Employee benefits services and insurance provider Personal Group (LSE: PGH) beat expectations with 2021 even though pre-tax profit declined from £8.8m to £4.7m as the effects of the original lockdown showed through in the figures. There will also be a delay in the recovery coming through in better profit. The total dividend was reduced from 18.4p a share to 10.6p a share. Net cash is £20.3m.

Brand Architekts (BAR) is making a recommended bid for fully listed InnovaDerma (IDP), which has regularly disappointed investors. The offer is 7p in cash and 0.3818 of a Brand Architekts share for each InnovaDerma share, which values the skincare company at £13.6m. Brand Architekts has a strong balance sheet and will be able to improve the marketing for the combined group’s products.

Windward (WNWD), which supplies AI-based software for real-time marine and shipping information, doubled its customer base last year. There is an increased need for information to stop breaches of sanctions following the Russian invasion of Ukraine, as well as the ongoing requirement to track sea cargos. Windward is loss-making, but revenues should build up significantly as marine compliance requirements become more stringent. Net cash is $39m and this will provide the funds for Windward to achieve its growth forecasts.

SIPPs admin services provider Curtis Banks (CBP) improved pre-tax profit from £13.4m to £14m in 2021. The growth was held back by delays in technology projects. The dividend is maintained at 9p a share. This was achieved despite a decline in interest income. The higher interest rates will not make a significant difference until 2023. Investment in systems will improve efficiency.

Construction and building software supplier Eleco (ELCO) grew revenues from £25.2m to £27.3m, while pre-tax profit improved from £4.9m to £5.3m. Eleco is transitioning to a SaaS-based model and that will hold back short-term revenues growth. Eleco increased its full year dividend from 0.4p a share to 0.6p a share.

Great Western Mining (GWMO) has completed the road to its Mineral Jackpot properties in Nevada and that will help it to exploit spoil heaps. There are also plans to drill five shallow exploration holes in the area.

MAIN MARKET

Repair and maintenance services provider Mears (MER) reported a 2021 pre-tax profit of £25.6m on revenues of £878m as local authority repair and maintenance activity returned to normal levels. Mears made a loss in 2020. The order book is worth £2.4bn.

Beacon Rise Holdings (BRS) joined the standard list with nine shareholders owning most of the shares. Prior to flotation £1.07m was raised at 100p a share. The current bid/offer spread is 100p/400p. Beacon Rise Holdings is seeking acquisitions involved in primary and secondary related education technology. This could be software or hardware that facilitates active learning. Pro forma net assets equals the cash of £744,000.

Rockpool Acquisitions (ROC) has terminated its proposed acquisition of Greenview Gas. Another party will acquire the business. Rockpool has received £1.2m from Greenview, which is a small premium on the loan provided plus interest.

Telecoms services provider Toople (TOOP) says first quarter revenues are 9% ahead of the previous fourth quarter, while gross profit is 17% higher.

Andrew Hore

Quoted Micro 14 March 2022

AQUIS STOCK EXCHANGE

Aquis Exchange (AQX) has announced that it will be joining the Aquis Apex segment with VSA as its corporate adviser. Aquis Exchange will retain its AIM quotation. This follows Invinity Energy Systems (IES), which joined the Aquis Apex segment on 9 March. This includes the ordinary shares that are quoted on AIM, as well as quotations for short-term warrants and long-term warrants that are not traded on any other markets. VSA also plans to create an index that includes all the companies on the Aquis Apex segment called the VSA Capital AQSE Apex Index.

Majestic Corporation (MCJ) is a recycler of electronic waste with a focus on extracting the precious metals from the equipment and it was introduced to the Aquis access segment on Thursday. The share price opened at 30p and then fell back to the introduction price of 25p (20p/30p). The reason for the flotation is to gain access to potential funding via share issues. Gold, silver, copper and other metals can be extracted from the electronic waste. Most of the materials that the company recycles are sent to Japan for processing and re-use in manufacturing. In the six months to June 2021, revenues increased from $14.4m to $15.5m, while pre-tax profit improved from $312,000 to $766,000. There was $1.89m in the bank at the end of June 2021 and an additional $233,000 owed by the chief executive. There are also import loans of $2.11m.

Good Energy (GOOD) investee company Zap-Map has linked up with the RAC so that it can be better placed to help electric vehicle drivers. Zap-Map will be used by 1,600 RAC patrols. The 2021 figures will be published on 29 March.

Goodbody Health Inc (GDBY) says 2021 revenues are expected to be around £17m, helped by PCR testing. That will drop off, but the revenues in the first two months of 2020 were £3.8m. There is likely to be a dip in interim revenues, but new products and services will help growth in the second half. Blood testing services have been launched in the clinic network.

Ananda Developments (ANA) says five seeds of each of 13 strains of cannabis have been planted by DJT Plants. Nine cuttings will be taken from each plant and then replanted. The shareholder circular for the acquisition of the 50% of DJT that is not owned by Ananda should soon be completed.

BWA Group (BWAP) has raised up to £500,000 at 0.6p a share. The cash will be used for exploration programmes at the Nkoteng and Dehane heavy mineral sands areas in Cameroon. This should produce initial mineral resources.

KR1 (KR1) is participating in the Interlay crowdloan and Polkadot (DOT) parachain auction. Interlay is building interBTC a Bitcoin-backed asset that enables interoperability between multiple blockchains while being resistant to censorship. KR1 contributed 250,000 DOT and this will be returned after 96 days. INTR tokens will then be issued.  KR1 has also invested $509,224 in Interlay Seed-2 shares. It already owns 1,060 Seed-1 shares.

Altona Rare Earths (ANR) is not going ahead with the Malawi-based Chambre rare earths project joint venture and the potential partner’s representative on the Altona board Hilton Banda has resigned.

Walls and Futures REIT (WAFR) has launched Pax Homes, which provides homes for people with autism and their families.

AIM

Destiny Pharma (DEST) has raised £6m, with a possible £1m more to come from an open offer, at 50p a share. The companies c.diff prevention treatment NTCD-M3 addresses a market worth more than $1bn. There is a good chance that a partner can be secured this year. There is more than one pharma company that is interested. The XF-73 treatment for the prevention of post-surgical infections requires further feedback from the FDA for its phase 3 trial in the US.

MTI Wireless Edge (MWE) is closing its Russian business and that will slow progress this year, but profit should still grow. In 2021, revenues increased 6% to $43.2m, while higher transport costs and exchange rate movements meant that pre-tax profit was flat at $4.04m. Russia accounted for 6% of revenues and 5% of profit. In 2022, pre-tax profit is expected to be $4.55m.

Delivered ready meals company Parsley Box (MEAL) is raising raised £5.9m at 20p a share – 90% of the original placing price less than one year ago. An open offer could raise up to £1.1m. Revenues are expected to be flat this year, but if the cash is invested successfully then growth could accelerate.

Restaurants and bars operator Various Eateries (VARE) says trading continues to follow an improving trend following lockdowns in the past two years. In the year to 3 October 2021, revenues were 36% ahead at £22.3m and the total loss was £3.7m. That was after £2.5m of insurance proceeds. One consequence of the Covid lockdowns is that there are more potential sites available at lower rents than in the past. Coppa Clubs are hybrids that offer a bar, restaurant, event space and, on some sites, hotel rooms and more sites are being opened. As yet, Italian restaurants brand Tavolino has not opened any more sites. A new pasta restaurant concept called Noci is being launched in Islington and the prospects will be assessed.

Harvest Minerals (HMI) says that it had fertiliser orders totalling 30,161 tonnes by the end of February 2022. That is one-fifth of the sales target for the whole of 2022. There are plans to increase capacity to 200,000 tonnes a year.

Managed IT services provider CloudCoCo (CLCO) reported flat revenues of £8.1m in the year to September 2021 and reduced the loss. Contributions from recent acquisitions and organic growth will help the figures to improve this year. Monthly profitability is targeted by the end of the current financial year. A contract worth £3m over three years has been secured. Further acquisitions should supplement growth.

ThinkSmart (TSL) reported a small underlying profit in 2021. Net cash is £7m, although the main asset is 618,750 shares in Block Inc following its takeover of Afterpay. The legacy lending business is being wound down and there is still income from operating a call centre for Afterpay. Net assets were equal to 75p a share, but in recent months the Block share price has been in decline, so the NAV is lower.

Concrete levelling equipment supplier Somero Enterprises Inc (SOM) reported profit in line with expectations. Revenues increased from $88.6m to $133.3m with strong growth in North America. The supplemental dividend is 22 cents a share and the total dividend for the year is 50.7 cents a share. Growth is likely to slow this year.

NWF (NWF) is benefiting from the volatility of the oil price and additional demand for the fuels division. There have been no supply problems. Feeds price rises are covering cost increases and raw materials have been forward purchased, while the food distribution business is performing as planned. Full year figures will be significantly ahead of expectations.

MAIN MARKET

Gresham Technologies (GHT) increased full year revenues from £24.8m to £37m in 2021, including a £5.6m contribution from last year’s acquisition Electra. Underlying pre-tax profit improved from £1.8m to £4m. The final dividend was maintained at 0.75p a share. There is cash of £9.1m. The core Clareti financial control and data integrity software generated organic growth of 28%. New customers and existing clients spending more is combining to enable strong increases in Clareti revenues. Contracted revenues for 2022 have already reached £37m compared with a full year forecast of £42m. A 2022 pre-tax profit of £5.1m is forecast.

Codex Acquisitions (CODX) did not get off to a good start when it joined the standard list on Wednesday because its website was not working. Codex raised £850,000 at 10p a share. The share price did go to a premium, but the bid/offer spread was 10p/20p. It appears that there were 50 shares traded during the week. The cash shell has effectively been set up by Codex Capital and most of the shares are owned by eight shareholders, including one of the non-exec directors. The NAV is 8.2p a share. The focus of the cash shell is clean and renewable energy assets, particularly infrastructure assets.

Online furniture and housewares retailer Made.com (MADE) increased full year gross revenues by 38% but it still lost money. A 2022-23 pre-tax profit of £8.3m is forecast, even though revenues growth is likely to be slower than previously thought.

Cloudbreak Discovery (CDL) has secured an option on the Icefall project in British Columbia with 1311516 BC Ltd, which will spend C$700,000 over three years to secure a 75% interest in the project. It will also pay Cloudbreak a total of C$120,000 in cash and issue two million shares.

Fragrant Prosperity Holdings (FPP) is not going ahead with the proposed acquisition of cannabis company CiiTECH.

Andrew Hore

Quoted Micro 28 February 2022

AQUIS STOCK EXCHANGE

Good Energy (GOOD) has finalised the sale price of its electricity generation assets. There was deferred consideration of up to £8.1m. The deferred payment has been set at £4.8m, taking the total payment to £21.2m. The rest of the cash was not paid due to a third-party yield assessment and other due diligence.

Samarkand Group (SMK) has signed a three-year agreement with Revolution Beauty Group (REVB) and it will incorporate the cosmetics company’s existing Tmall Global Flagship store via the Nomad technology, which will make it easier to sell in China. Samarkand will be exclusive ecommerce partner for China. Revolution Beauty has bought the assets of US cosmetics brand BH Cosmetics for $3.9m. Badass with Heart (BH) Cosmetics are vegan and cruelty-free.

Hydrogen Utopia International (HUI) says that it has been advised to apply for a loan under a new programme launched by the Poland authorities. The share price has slumped to 7.5p since the flotation at the beginning of the year.

KR1 (KR1) is participating in the HydraDX crowdloan and Polkadot parachain auction. KR1 contributed 350,000 DOT to secure a parachain slot in the ongoing round and these will be held for 96 days before being returned and KR1 will also receive HydraDX tokens. KR1 is already due to receive 45 million HydraDX tokens due to previous backing of a seed funding round. HydraDX is a protocol to enable frictionless liquidity for crypto assets. All assets can be put into one shared liquidity pool.

Cadence Minerals (KDNC) says that its joint venture rare earths project Yangibana in Western Australia has a NPV8 of $1.01bn, which is an 84% increase on the previous estimate. The $20m project to build the core infrastructure has begun. There was a 48.9% take-up of the recent open offer, which raised £745,000.

Forbes Ventures (FOR) is considering re-domiciling from the Cayman Islands to the UK. This could reduce costs. The medium-term focus includes the potential launch of a blockchain-focused venture fund.

Valereum (VLRM) has exercised its option to take its stake in the Gibraltar Stock Exchange from 80% to 90%.

SuperSeed Capital (WWW) managing director Mads Jensen has bought 24.200 shares at 98p each, taking his stake to 82.1%.

AIM

Hargreaves Services (HSP) has secured a deal for the development and sale of two large distribution units, which will be 191,000 square feet and 375,000 square feet respectively, at the 50%-owned Unity site. Detailed planning permissions are required for the sites and that should be obtained by the end of the year. The deal will be fully completed within 12 months of construction. The total revenues should be more than £50m for the joint venture and Hargreaves should have all or most of its 50% distributed to it, depending on the requirements of the joint venture. On top of this, another 4.6 acres at Blindwells is being sold to Ogilvie Homes. There will be 77 homes built and the deal should generate minimum revenues of £3.5m. The contracts are conditional, and they will not have an immediate effect on the figures.

Synairgen (SNG) announced disappointing phase III data for the SPRINTER trial for SNG001 use in hospitalised Covid-19 patients. The headline data for the trial did not meet primary or secondary endpoints. There is still an ACTIV-2 phase III trail being carried out in mild to moderate Covid-19 patients and other studies where SNG001 could be included.

Sylvania Platinum (SLP) plans to spend some of its cash pile on further increases in production. First half production of platinum group metals was 32,376 ounces, down from 36,335 ounces, and full year production should be between 66,000 and 68,000 ounces. Interim revenues fell from $84.9m to $69.1m, while pre-tax profit slumped from $57.4m to $34.9m. The decline in the Rand exchange rate exacerbated cost increases. A dividend of 2.25p a share will be paid. Short-term investment focus is on additional capacity and extending the life of the chrome recovery operations. In the next three years Sylvania will decide whether to construct new plants on the eastern and/or western limbs of the Bushveld complex.

Transense Technologies (TRT) moved into profit in the six months to December 2021 thanks to growing royalty income from iTrack tyre pressure monitors. Interim revenues improved from £895,000 to £1.2m with a loss of £53,000 turned into a pre-tax profit of £82,000. That is before any tax credits. There are more than £23m of tax losses available to offset against corporation tax. There is £1.07m in the bank and that is set to rise to £1.34m in June 2022.

Seeing Machines (SEE) says interim revenues are 19% ahead at A$21.7m. Revenues of A$56.1m, up from A$46.6m, are forecast for the year to June 2022. There are nine vehicle models that have commenced production that are installing the company’s driver monitoring system. Seeing Machines has also deployed a pilot fatigue detection system for Air Ambulance Victoria. This deal could be worth A$1m over a ten-year period.

Avingtrans (AVG) reported a small decline in interim revenues to £45.1m following the ending of lower margin work in the medical imaging business. Improved margins meant that there was little change in the pre-tax profit, which was £3.6m. The interim dividend is 1.6p a share.

Analysts have raised their full year pre-tax profit forecast for Netcall (NET) following the interim figures. Annualised contract value was £19.8m at the end of 2021. The 2021-22 earnings forecast was increased by 6% to 1.7p a share.

Outsourcing services provider iEnergizer Ltd (IBPO) says it will have another record financial year in 2021-22. The forecast yield is 4.9%.

Tristel (TSTL) is exiting non-core activities to focus on its medical device decontamination and surface cleaning products. In the six months to December 2021, revenues from continuing activities fell 7% to £13.6m. That was due to a large one-off order in the corresponding period. There is underlying growth. There is a £2.4m impairment charge for the discontinued activities. Underlying earnings fell 28% to 4.3p a share. The plans for FDA filings for the company’s products are on course.

Ventilation and door components supplier Titon (TON) warns that supply problems and higher costs are hampering sales and margins. Titon is trying to increase prices to cover higher costs. Overall revenues are slightly higher than in the first four months of the previous financial year, but the overseas operations are loss-making. There is still £4.2m in cash on the balance sheet. A new chief executive is being recruited.

Orchard Funding (ORCH) has raised £2.59m after expenses from its bond offer.

MAIN MARKET

Packaging manufacturer and distributor Macfarlane Group (MACF) increased revenues from continuing operations by 26% to £264.5m in 2021. Pre-tax profit is 50% ahead at £18.7m. The labels division was sold at the end of 2021, and it made a loss. Net cash is £2.5m and the pension scheme surplus is £8.3m. The total dividend is one-quarter higher at 3.2p a share. There is continuing inflationary pressure and supply problems.

Maternity wear brand Seraphine Group (BUMP) says that sales grew in the seventeen weeks to the end of January 2022, although February has been tougher. That means revenues will be below expectations, while lower margins mean that there will be little in the way of profit for the full year. The problems include an underestimation of sales tax and duties in newer markets. This is not the first profit warning. Last July, Seraphine floated at 295p, and the share price has fallen to 58.5p.

Seraphim Space Investment Trust (SSIT) has performed strongly since it floated and there is more to come. The original fundraising was at 100p a share and the NAV at the end of 2021 was 104.7p a share. That is before the announcement of the reversal of Italy-based space logistics company D-Orbit into Nasdaq-listed Breeze Holdings Acquisition Corp, which should be completed by the autumn. There was still £70m in the bank at the end of 2021, although more investments have been agreed since then.

Fasteners supplier Trifast (TRI) says that there is consistent year-on-year growth in monthly revenues. Higher cost are being passed on and there are signs that supply chain costs are stabilising.

Alkemy Capital Investments (ALK) plans to enter into a lease at a Teesside chemical engineering park and the land will be used to build a lithium hydroxide processing facility through a new subsidiary called Tees Valley Lithium. The facility is anticipated to produce 24,000 tonnes a year of lithium hydroxide monohydrate for energy storage markets. This is a reverse takeover and trading in the shares has been suspended.

Kanabo Group (KNB) has acquired The GP Service, a telemedicine provider, for £13.5m in shares at 12.65p each. The business provides NHS video and online consultations and can electronically deliver prescriptions. Consultation services are also offered to corporate clients. GP Service will provide a way of marketing Kanabo’s CBD products. Kanabo raised £2.25m at 8p a share.

Cannabis-based drug developer Oxford Cannabinoid Technologies (OCTP) still had £12m in the bank at the end of November 2021. Cost savings worth £130,000 a year have been made so the cash can last longer. Two compounds are expected to enter phase 1 clinical trials in the next 12 months. Two The year end is being changed from May to April.

Andrew Hore

Quoted Micro 14 February 2022

AQUIS STOCK EXCHANGE

Good Energy (GOOD) has repelled the latest attempt by major shareholder Ecotricity to influence decisions. It wanted to remove the chairman and stop the sale of generation assets without shareholder approval. Both resolutions were defeated.

Dominique Einhorn has resigned as chief executive of ChallengerX (CXS) following his arrest in France for tax and other offences. ChallengerX joined Aquis in December after it acquired SportsX, which provides marketing services to rugby and football clubs. Sarlat Rugby, which is 100%-owned by Dominique Einhorn, is one of the first clients. The share price was unchanged at 2.4p (2.2p/2.6p).

Hydro Hotel Eastbourne (HYDP) increased revenues from £2.23m to £2.79m in the year to October 2021 and that enabled it to move from a loss of £174,000 to £457,000. This was helped by government assistance. Trading is still not back to pre-pandemic levels. There is £1.33m in the bank.

EPE Special Opportunities (ESO) had net assets of 455.66p a share at the end of January 2022. There was £27.6m of available funds at the end of January. Directors and managing partners bought shares, but more were sold by others.

Cadence Minerals (KDNC) has completed the purchase of a 20% stake in the Amapa iron ore project.

Gowin New Energy (GWIN) is considering trading in agarwood products, including incense and oils in Taiwan. A trial is being launched ahead of the Quingming festival.

Quantum Exponential (QBIT) investee company Arqit Quantum has signed a research and development agreement with the United States Air Force. This could lead to a quantum encryption service for the Department of Defense.

SulNOx (SNOX) plans to gain an OTC quotation in the US so that Americans can invest.

SuperSeed Capital Ltd (WWW) managing director Mads Jensen has bought 3,000 shares at an average price of 83.9p. SuperSeed raised £2m at 100p a share at the end of January. The share price ended the first week at 70p (65p/75p) and it remained at that quoted price last week with limited trading volumes.

Samarkand (SMK) non-exec Phil Smiley acquired 28,777 shares at 139p a share. Daniel Thwaites (THW) director RAJ Bailey bought 15,000 shares at 102.25p a share. Chris Akers has increased his stake in Quetzal Capital (QTZ) from 17.2% to 18.3%.

Alfred Henry has resigned as corporate adviser to Lombard Capital (LCAP).

AIM

Building products supplier Alumasc (ALU) reported that interim pre-tax profit fell 12% to £5.1m on revenues 2% ahead at £46.3m. The profit fell because shading business Levolux fell back into a loss of £1m. Roofing did well but the Levolux business held that division back. The water management division sales were nearly one-fifth higher, and profit improved. Housebuilding product sales increased but margins fell. However, the second half should be stronger.

Self-storage sites operator Lok’nStore (LOK) says that first half trading was strong. Interim revenues are one-third higher, helped by higher occupancy and prices.

Orchard Funding Group (ORCH) has launched a bond offer and it is guaranteeing 10% of face value of outstanding bonds. The Orchard Bond Finance bond offers an annual interest rate of 6.25% payable twice a year. The repayment date is 2027. The cash from the bonds will help to finance growth. The offer is open until 23 February. The offer is available through PriamryBid and intermediaries, such as Interactive Investor and AJ Bell. The minimum subscription is £2,000. The bonds will be issued on 2 March and trade on the Official List.

Sustainable investments company i(x) Net Zero (IX.) raised £10.7m at 76p a share. The share price ended the week at 77p, which is a premium to pro forma net assets.

ASX-listed Artemis Resources (ARV) joined AIM and raised £5m at 3.75p a share on 7 February. It owns 100% of the Greater Carlow gold copper cobalt project and the Paterson Central gold copper exploration project in Western Australia. Exploration commenced at Paterson Central in November 2021, and it is expected to resume in March. The Paterson Central project is adjacent to the Havieron project that is being developed by Newcrest Mining and Greatland Gold (GGP). Greater Carlow has a JORC complied mineral resources estimate for its Carlow Castle deposit of 14.3Mt @ 0.7g/t gold, 0.4% copper and 0.05% cobalt. An update is expected by the summer. The share price ended the week at 3.875p.

Filtronic (FTC) grew ongoing interim revenues by 12% to £8m and the telecoms components manufacturer moved back into profit. The full year pre-tax profit forecast is being maintained at £1m even though revenues have been edged up to £18m because the improvement is from lower margin products. Defence spending is boosting demand.

Omega Diagnostics (ODX) is raising £5m and could raise a further £2m from an open offer. It is also selling its manufacturing facility in Alva for £1m after it failed to win a Covid diagnostics contract. Even so, Omega is expected to continue to lose money. The CD4 diagnostics operations will be transferred to the Ely site and sales are building up, Health and nutrition business continues to grow.

Kitwave (KITW) has acquired West Country-based MJ Baker, which distributes ambient, chilled and frozen food. This is the first acquisition since flotation and Kitwave is paying £24.5m in cash. This deal includes own branded Bakers Best Buy products and should be earnings enhancing.

Recent new admission Facilities by ADF (ADF) has already sparked a forecast upgrade from a trading statement. The film and TV hire services provider is expected to make earnings of 4.5p a share for 2021.

Dekel Agri-Vision (DKL) continues to generate increasing revenues from crude palm oil, but it is taking longer than expected for cashew revenues to grow. January was a record month for production and extraction rates improved, while prices rising. The cashew plant is using 15% of capacity and waiting for additional components.

Mergers and tax adviser K3 Capital (K3C) increased interim revenues from £17.6m to £31.2m providing a significant boost to profitability. The interim dividend is 4p a share. K3 is on course for a full year pre-tax profit of £17.7m, up from £13.6m, providing the ability to potentially pay a total dividend of 12.1p a share.

MAIN MARKET

S and U (SUS) is paying a second interim dividend of 36p a share. Group debt is £114m out of possible facilities of £180m. There was a reduced level of bad debts in the year to January 2022 and pre-tax profit will be more than double last year’s £17.2m. Advantage has started to finance electric vehicles. Net loan advances are £140m. Property bridging has a loan book of £64m.

Anglesey Mining (AYM) plans to move to AIM. A general meeting will be held on 8 March to gain shareholder approval.

Sure Ventures (SURE) has net assets of 118.34p a share.

Andrew Hore

Quoted Micro 24 January 2022

AQUIS STOCK EXCHANGE

Good Energy (GOOD) has agreed the sale of its generating assets ahead of the 11 February general meeting called by Ecotricity where it wanted shareholders to vote on any disposal. The initial payment by Bluefield Solar Income Fund is £16.4m, less a distribution of £700,000 since the lockbox date. Deferred consideration of up to £8.1m based on the performance of the assets. The book value was £17.7m. This will leave Good Energy substantially debt free with cash in the bank. This will enable further investment in Zap-Map and other transport and decentralised energy businesses.

Broker Arden has initiated research on CBD products and testing company Goodbody Health (GDBY) and set a 10p a share target price. The growth is coming from testing services and Goodbody Health is expected to move into profit this year. Currently 94% of testing revenues relate to Covid, but other blood tests are set to be in the majority by 2023.

Brewer Adnams (ADB) has decided to announce an interim dividend having not paid a dividend for more than two years. The A shares will receive 39p a share and B shares 156p a share. The ex-dividend date is 27 January.

Hydrogen Utopia International (HUI) has signed a letter of intent with Mitsubishi Heavy Industries, which will review the waste plastic to hydrogen technologies.

Cross border e-commerce technology provider Samarkand Group (SMK) has agreed a three-year contract extension with TEMPLESPA.

Cadence Minerals (KDNC) says that investee company European Metals Holdings has published an update to its 2019 pre-feasibility study for the 49%-owned Cinovec lithium mine in the Czech Republic. The post-tax NPV8 has increased to $3.09bn, although the upfront cost has also increased to $644m.

Recent new admission Kasei Holdings (KASH) has made $3.65m of cryptocurrency investments since joining Aquis. It has also made a $25,000 initial investment in Game-fi ecosystem company ZONE. Kasei had £3.7m available for investment.

Investment company Gledhow Investments (GDH) had cash of £525,000 at the end of September 2021, having raised £850,000 in a placing during the year. Net assets increased from £1.3m to £2.78m.

IamFire (FIRE) reduced its interim loss from £162,000 to £86,000. Since the half year end, IamFire has raised a further £4.75m.

NQ Minerals remains in administration and has been withdrawn from Aquis.

AIM

Pawnbroker and foreign currency exchange services company Ramsdens (RFX) reported a £600,000 pre-tax profit on revenues of £40.7m in the year to September 2021. Jewellery sales were strong both online and in stores. The foreign exchange division was hit by the lack of travel. This year the foreign exchange business should recover although it is difficult to assess by how much. Even so, there should be a jump in profit this year as Covid restrictions are removed.

Interim figures from small company finance provider Time Finance (TIME) reported flat interim revenues of £11.8m and pre-tax profit of £1.2m. Full year profit could improve from £2m to £2.9m, although earnings per share could be flat, but a much bigger jump is expected next year. NAV remains above the market capitalisation and there is a conservative provisioning policy.

Pressure Technologies (PRES) reported flat full year revenues, but the underlying loss was reduced. A good performance from the Chesterfield Special Cylinders, helped by defence orders, was offset by weak oil and gas demand for precision machined components. Net debt was £4.9m. There should be a return to profit this year. Demand for cylinders for hydrogen refuelling is building up and should become significant over the next few years. Oil and gas demand is also improving.

Ilika (IKA) expects to start to build up production at its new Stereax battery plant in Chandler’s Ford by the beginning of the next financial year. The production lines have been installed and the process and product qualification is underway. Revenues were £195,000 in the six months to October 2021. These came from grants relating to the Goliath technology. The Goliath battery technology is at an early stage and is suitable for uses where larger batteries are required, such as electric vehicles and consumer appliances. There will be minimal group revenues in the second half with the growth coming in 2022-23. Cash outflows will continue but there will still be cash going into 2024.

Kromek (KMK) had a tough first half due to component supply problems, but the imaging and detection technology company expects to have a much stronger second half. Interim revenue edged up to £4.71m, while full year revenues are expected to be £15m. There is 96% visibility based on current second half orders. Kromek continues to be loss-making, but it is still expected to have net cash at the end of April 2022. That is despite increasing component stocks. Kromek has won a seven-year imaging contract worth $17m.

Credit hire and legal services firm Anexo (ANX) says that 2021 revenues and profit have exceeded expectations. There were 2,300 credit hire vehicles on the road at the end of 2021. Progressive has upgraded its underlying pre-tax profit forecast from £20m to £24.5m.

Boku (BOKU) has sold its identity division to Twilio for up to $32.3m. This will stop those losses and help group profit to increase. In 2021, the payments division increased its revenues by one-fifth to $61.9m, while EBITDA rose by a similar proportion to $22.9m. Stripping out the identity division loss means that the 2022 pre-tax profit has been upgraded from $15.3m to $16.8m.

Growth is accelerating at domain name and online marketing services provider CentralNic (CNIC). The 2021 full year growth in revenues of 37%, was better than expected and higher than the 29% growth in the first nine months of 2021.

MAIN MARKET

LED lighting and wiring accessories supplier Luceco (LUCE) says that 2021 operating profit will be £39m as expected. There was strong growth last year, but this year will have tougher comparatives. Price rises have offset cost inflation but 2022 may be second half weighted in performance terms.

Tibergest is making a mandatory offer for Photo-Me International (PHTM) after acquiring 7.7% and taking its stake to 36.5%. It has to offer the 75p a share it paid for the latest stake. Tibergest is associated with Photo-Me chief executive Serge Crasnianski. There are no plans to cancel the listing.

CYBA (CYBA) is still in talks concerning the acquisition of PolySwarm, which has issued the Nectar (NCT) cryptocurrency token. The NCT price has increased to 17.34 cents and PolySwarm owns 339 million NCT.

Rockpool Acquisitions (ROC) has terminated the acquisition of Greenview Gas. Rockpool should get £1.25m back from Greenview.

GSTechnologies (GST) has acquired a Lithuanian crypto exchange licence through the acquisition of UAB Glindala. Change of control has to be approved. There are plans to open a crypto exchange in the second quarter of 2022.

Executive chairman John Rigg has bought more shares in IT services company Triad (TRD). He acquired 35,000 shares at 164.3p each and 50,000 shares at 133.5p. He owns 27.8% of Triad.

Toople (TOOP) has opened a second contract centre, which is supported by BT. The south Cheshire centre is up and running and will focus on new small business customers gained through BT. The company’s other contact centre is in South Africa.

Oxford Cannabinoid Technologies (OCTP) had cash of £12m at the end of November 2021. Phase I clinical trials for OCT461201 for the treatment of neuropathic and visceral pain could commence in the first quarter of 2023.

Andrew Hore

Quoted Micro 17 January 2022

AQUIS STOCK EXCHANGE

Failed bidder Ecotricity has requisitioned a general meeting at Good Energy (GOOD) in order to remove Will Whitehorn as a director and to stop the company selling generating assets without shareholder approval. The meeting will be held on 11 February. Ecotricity owns 25% of Good Energy. The sale of the generating assets is an important part of the company’s strategy. The cash would be used to reduce borrowings and invest in newer businesses, such as Zap-Map and other digital businesses.

Samarkand Group (SMK) has signed an exclusive distribution agreement with AIM-quoted Venture Life (VLG). The e-commerce technology platform will be the exclusive distributor of mouthwash Dentyl Dual Action and halitosis mouthwash Ultradex in China for an initial term of five years.

Hydrogen Utopia International (HUI) has signed a letter of intent with RZZO, which is a regional municipal waste management company in Ostrow Wielkopolski in Poland. RZZO will provide a plot of land where a HUI waste plastic to hydrogen plant can be sited and also source the plastic waste. They will seek funding from the EU as well as Polish grants. The heat would be fed into a district heating system.

Eastinco Mining and Exploration (EM.P) has identified 11 new pegmatite zones at its HCK joint venture in Rwanda. These are potential tantalum-niobium bearing zones. The sampling should be completed in February.

Apollon Formularies (APOL) has signed agreements with more than a dozen cannabis cultivators. They all have the appropriate licences. It has also set up the Apollon Kannabiz Cooperative to work with local Jamaican farmers.  Rod McIllree has been appointed as a non-exec director. He owns 29.1% of Apollon.

Western Selection (WESP) cut its stake in Northbridge Industrial Services (NBI) from 9.65% to 6.21%, while Harwood Capital has raised its stake to 16.9% to 20.4%. Western Selection raised £1.7m from the disposal.

EPE Special Opportunities Ltd (ESO) had net assets of 510.95p a share at the end of 2021.

Sativa Wellness Group Inc is changing its name to Goodbody Health Inc (GBDY).

Dispersion Holdings has changed its name to AQRU (AQRU), which is aligned with the brand of its retail online platform for lending cryptocurrencies.

Rutherford Health (RUTH) will leave Aquis on 25 January.

AIM

Frontier IP (FIPP) says the increase in the value of tis stake in the Nasdaq-listed Exscientia will be an important component of the rise in NAV at the end of 2021. NAV was 69.8p a share at the end of June 2021. A small portion of the shareholding has been sold and further sales are likely. This cash can be ploughed back into Frontier IP and help with new investments.

Legal services provider Gateley (GTLY) reported organic growth of 23% in the six months to October 2021. That partly reflects the weak comparative figures as well as underlying growth. All four divisions grew revenues with only the property division having a small contribution from an acquisition. Utilisation levels improved from 79% to 84%. Underlying pre-tax profit increased from £7.5m to £8.5m. The interim dividend was one-fifth higher at 3p a share. Management is seeking acquisitions to add to organic growth. There is normally a second half weighting to the figures.

Strong trading at Metro Rod and Metro Plumb is the major factor behind the growth at Franchise Brands (FRAN) and the B2C franchise brands are recruiting more franchisees. Full year pre-tax profit is expected to increase from £4.8m to £6.4m. Net cash was £8.6m at the end of 2021.

Corporation Financeiere Europeenne acquired shares in CIP Merchant Capital (CIP) taking its stake to 31.8%. This has sparked a mandatory bid at 55p a share. This is a substantial discount to net assets of 87.6p a share. The plan is to save the costs of being a quoted company.

Cornerstone FS (CSFS) has come to an agreement with Robert Lee concerning the £100,000 convertible loan facility he had promised. Instead of being convertible at a fixed price of 61p a share the convertible could be converted at the average mid-market price of the shares for the five dealing days prior to the drawdown of the loan if this is lower. This will mean that it is much more dilutive unless there is a sharp rise in the share price. The international payments company says 2021 revenues should be £2.3m with more generated by direct sales.

Specialist IFA Frenkel Topping (FEN) is paying up to £10m for Cardinal Management, which provides patient support at hospitals following traumatic events. This provides access to potential clients at an early stage.

Heart disease risk assessment technology developer GENinCode (GENI) has filed a pre-submission for its Cardio inCode-SCORE test with the FDA in the US. This will provide information ahead of a future marketing application. The test combines genetic risk with clinical risk to assess an overall risk of heart problems for a patient.

Oil palm plantations operator Dekel Agri-Vision (DKL) generated record figures in 2021. December crude palm oil production more than doubled and the total production for the year was 39,953 tonnes, up 17.5% on the previous year. Extraction rates are starting to improve. The average crude palm oil price was $868/tonne, which is 44% higher than in 2021. The crude palm oil price is currently more than $1,000/ tonne

Minds + Machines (MMX) decided to return the remaining cash to shareholders and cancel the AIM quotation. There will be 10.4p a share tender offer.

Vector Capital (VCAP) has increased its debt facilities by £5m to £35m. In 2021, the total loan book rose by 27% to £46.3m. This is ahead of expectations.

Capital equipment supplier Mpac Group (MPAC) says it traded in line with expectations in 2021. A pre-tax profit of £8.2m is forecast. The closing order book was £77m. The 2021 results will be published on 14 March.

Holders Technology (HDT) is paying a special dividend of 2p a share on 28 January in addition to a final dividend which will be announced with the 2021 figures. The interim dividend was 0.5p a share. This follows the disposal of some of the company’s PCB assets for around £1.7m.

Mosman Oil and Gas (MSMN) has dropped its plans for a 100-for-one share consolidation after negative feedback from shareholders.

MJ Hudson (MJH) has gained a multimillion contract to advise the ACCESS local government pension scheme over a seven-year period. This covers eleven local authority pension schemes. They have £35bn in pooled assets.

MAIN MARKET

Cash shell Electric Guitar (ELEG) joined the standard list on 11 January. It raised £1.2m at 3p a share and the share price has risen to 3.7p. The current NAV is 1.78p a share, which is effectively all cash. Electric Guitar is a shell seeking acquisitions in the digital advertising sector. There could be opportunities to consolidate smaller agencies. A suitable target will be run by management with a good record, be involved in growth areas, have good quality clients, an existing IT platform and be scalable. It should be near to cash generation. The company acquired would have an enterprise value of at least £5m.

East Star Resources (EST) has gained readmission to the standard list following the acquisition of Discovery Ventures Kazakhstan. A placing raised £3.1m at 5p a share.

Canadian Overseas Petroleum (COPL) has made a significant oil discovery in Wyoming. The discovery has between 1.5 billion and 1.9 billion barrels of oil in place.

PYX Resources Ltd (PYX) has begun sales of rutile from its Mandiri deposit in Indonesia with production of ilmenite and leucoxene starting later in the year.

One Heritage Group (OHG) is acquiring Seaton House in Stockport for £675,000. This is an office building, and the plan would be to convert it into up to 30 apartments. The gross development value is £5.6m.

Andrew Hore

Andrew Hore – Quoted Micro 27 December 2021

aquis stock exchangeAQUIS STOCK EXCHANGE

All Things Considered Group (ATC) is a music artist management and services provider that branched out into live streaming events due to Covid-19. There was £4.13m raised at 153p a share, and the share price rose to 155p, valuing the company at £15m. In the six months to June 2021, revenues jumped from a sharply reduced figure of £1.39m to £5.04m, including £3.31m from live streamed events. ATC is loss making. The cash and valuation of the stake in livestreaming company Driift appear to provide an underpinning for the valuation, but there is a significant amount of accruals relating to unpaid performing rights fees on live streaming.

ChallengerX (CXS) was used as a holding company to acquire SportsX prior to joining the Access segment of Aquis. The core business is providing marketing services to rugby and football clubs. Smaller clubs need ways of generating additional income, so the services should be attractive to them. ChallengerX will earn income through revenue sharing agreements and by retaining a 10% to 30% reserve position in any club’s social tokens, that it will help the clubs to issue. ChallengerX raised £752,000 at 2p a share. The bid/offer spread at the end of the first day was 2p/3p and the mid-price was still 2.5p on Christmas Eve.

Fellow Aquis company Dispersion Holdings (DEFI) had invested £216,000 in SportsX in May, which was its first investment after flotation, and then swapped this stake for shares in ChallengerX that were worth £1.25m at the subscription price.

Good Energy (GOOD) says that November trading was in line with expectations. Domestic price tariffs were raised at the beginning of November, and this offset the lack of win generation during the month. Power prices continue to rise, though, and wind generation remains low, which means that 2021 profit will be £3m lower than expectations. Good Energy requires more cash for working capital because of the higher prices.

Rutherford Health (RUTH) intends to leave Aquis. A general meeting will be held on 11 January and if the shareholders are in agreement, then the company will cancel the quotation on 25 January. Rutherford Health has found it difficult to raise additional cash and does not want the distraction of being quoted.

CBD products supplier Voyager Life (VOY) has acquired Cannafull, a manufacturer of CBD skincare products, including under its own Ascend Skincare brand. Voyager Life paid the liquidator of the company £9,000 for the brands and assets.

Hydro Hotel Eastbourne (HYDP) is paying a 20p a share dividend to shareholders on the register on 31 December.

Tectonic Gold (TTAU) had £542,000 in the bank at the end of June 2021, although there are also borrowings of £322,000. The operating cash outflow was £210,000 with a further £401,000 spent on exploration during the year. The subsequent sale of Kazera Global shares raised more cash. A $275,000 tax refund relating to the Specimen Hill gold project is due to be received.

IamFire (FIRE) is subscribing £2m for WeShop Holdings Ltd convertibles and has the option to invest a further £2.5m. The conversion price is 75p a share and the shares trade on JP Jenkins. The social media retail platform will be fully launched in the first quarter of 2022.

Lombard Capital (LCAP) has sold its property in Preston for £2.075m. The total cost of the property was nearer £3m.

Love Hemp Group (LIFE) has allotted 65 million shares at 1.5p each in final deferred consideration for Love Hemp Ltd. Chief executive Tony Calamita has an 8.87% stake. A Love Hemp virtual store has been set up with Deliveroo.

Trading in Igraine (KING) shares recommence after its full year and interim figures were published. This period pre-dates the move into medical technology investment.

AIM

CT Automotive (CTA) is a supplier of interior components to the automotive sector and it already has a strong relationship with Nissan. The top three customers account for two-thirds of revenues. CT Automotive raised £33.6m at 147p a share and this will go towards reducing debt. The shares ended the week at 160p. Electronic component shortages have hit the second half of 2021, after a strong first half’s trading. Trading will be disrupted well into 2022.

Libertine Holdings (LIB) raised £9m at 20p a share to finance the opportunity to become an important part of the move towards vehicles being able to use cleaner fuels via its own powertrain technology can extend the range of battery-powered electric trucks. Large commercial vehicles are the main market, but there are other uses for the technology. The cash will be used to take on more commercial and development people, as fund further development of technology and facilities. The share price jumped to 37.5p by the end of the week.

York-based Aptamer Group provides contract research services with longer-term potential for royalties and licence revenues when the client uses the reagents in commercial applications. Three-quarters of the top 20 global pharma companies are clients. Raising £10.8m at 117p enables it to scale up its operations. In the 15 months to June 2021, Aptamer Group revenues were £1.6m and the loss was £2.91m. The share price ended the week at 136p.

Surveying and Corridor.ai analysis platform operator Cordel (CRDL) has won a 6.5 year contract with Network Rail that starts at the beginning of 2022. This is worth £500,000 a year and covers storing and processing of gauge and clearance information for the whole network.

Delivered ready meals company Parsley Box (LSE: MEAL) says that trading improved at the end of the year and supply problems are easing. Net cash is £2.2m, but significant cash outflows mean more money is required, possibly as much as £6m. A large discount to the market price may be required to raise that much.

Deepmatter Group (DMTR) managed to secure £2.55m of funding ahead of the Christmas break. It was at a heavily discounted 0.1p a share. Existing shareholders are being given the chance to invest at the same price via a one-for-3.7 open offer that could raise up to £250,000. The digital chemistry data company is still in discussions with South Korea-based drug discovery company Standigm Inc, but the deal will not be done this year, so 2021 revenues will be lower than the company’s previous expectations.

Anglo Asian Mining (AAZ) has taken a 19.9% stake in TSX Venture Exchange Libero Copper and Gold Corporation for $4.9m. This is the first step in the diversification outside of Azerbaijan. Libero has the option to acquire copper exploration properties in Colombia, Argentina and Canada.

Redx Pharma (REDX) will receive a $9m milestone payment following the start of a phase 1 trial of AZD5055, a porcupine inhibitor targeting fibrotic diseases. There are up to $360m of additional payments depending on successful development.

Primorus Investments (PRIM) says that investee company Alteration Earth will not be joining the standard list until 2022. The prospectus has been submitted for a second reading by the UKLA. Primorus invested £350,000 for five million shares in the shell. Primorus is electing to take Bushveld Minerals (BMN) shares in return for its Mustang Energy loan notes, because of ongoing litigation.

Lekoil Ltd (LEK) has formally rejected the 1.9p a share bid from Lekoil Nigeria. It points out that the offer does not take account of the potential cancelation of $350m of intercompany debt.

MAIN MARKET

Great Southern Copper (GSCU) has options over potential copper gold projects in northern Chile and news of a new left wing president in Chile hit the early trading in the shares on the standard list. Great Southern Copper raised £3.52m at 5p a share and ended the first day at 4.55p before recovering to 4.9p at the end of the week. The assets under option are the San Lorenzo copper gold project northeast of coastal town La Serena in northern Chile and the Especularita copper gold project, which is south of the other project. Initial exploration should help the company to understand the prospects in the two areas before spending a more significant amount of money.

House broker finncap still expects personal care products supplier Innovaderma (IDP) to make a small profit on the back of a recovery in revenues in the year to June 2022. Cash should be maintained at £2.3m.

Cash shell Hawkwing (HNG) wanted share trading to recommence after the proposed acquisition of ecommerce aggregator Internet Fusion Group. The FCA says that the £13.7m loan to Internet Fusion Group is a transaction under the definition of a reverse takeover so trading cannot recommence. Hawkwing is trying to unwind the loan.

Andrew Hore

 

Quoted Micro 29 November 2021

AQUIS STOCK EXCHANGE

Good Energy (GOOD) is selling its 47.5MW of renewable generation capacity and then reinvest the cash. The portfolio is valued at £56.8m, with £39.1m of related debt, and could be sold in the first quarter of 2022. Good Energy is investing in the latest funding round for Zap Map and the disposal cash may be received at around the same time. The company is investing in its decentralised energy services platform, and this will be rolled out next year. There will be further investments in these areas. Competition has fallen away in the domestic energy supply market and management believes that more normal conditions could return next spring. There will be £2.5m of additional costs to cope with the knock-on effect of higher prices and the exit of rivals. There is still a possibility of achieving full year expectations.

Oberon Investments (OBE) nearly trebled revenues in the first half with the growth coming from the broking business. In the six months to September 2021, revenues improved from £1.2m to £3.4m, while funds under management were £765m at the end of the period. Investment management fees doubled, but corporate finance income jumped from £89,000 to £1.56m. Oberon moved from a loss of £514,000 to a pre-tax profit of £128,000. New product launches should enhance growth in funds under management, while the broking side remains busy.

Non-fungible tokens (NFTs) investor NFT Investments (NFT) is investing $250,000 in Afterparty Inc, a platform where creators generate revenues from music events. This was set up by former Disney executive David Fields.

Eastinco Mining and Exploration (EM.P) plans to acquire battery metals explorer Aterian Resources and move to the standard list. There will be a ten-for-one share consolidation and the company’s name will change to Aterian. AIM-quoted Altus Strategies (ALS) will become a major shareholder. A fundraising has raised £850,000 from convertible loans and £100,000 from shares at 1.5p each, which is the conversion price of the convertible loans. Aterian Resources has a portfolio of 15 exploration projects.

Investment company Gunsynd (GUN) had net assets of £6.3m, including £1.07m of cash, at the end of July 2021. Investee company Low6 still intends to float.

KR1 (KR1) has contributed 350,000 Polkadot tokens to the Acala Network auction. It already has more than 10.2 million Acala tokens and more will be received after 96 weeks, when the Polkadot tokens will be returned. A further 350,000 Polkadot tokens were contributed in the auction of smart contract platform Moonbeam Network. Again, these will be locked up for 96 weeks and a undecided number of Moonbeam tokens will also be received.

Newly crowned Aquis company of the year DXS International (DXSP) reported a small dip in interim revenues from £1.72m to £1.62m, while pre-tax profit fell from £151,000 to £21,000. The second half is expected to be stronger, although additional costs will hold back profit. The healthcare IT provider continues to develop its cloud-based product and it is accelerating the development of products aimed at long-term conditions, such as diabetes.

Rogue Baron (SHNJ) is closing its Bin 1301 bar in Washington DC and concentrate on the bigger De Rhum Spot site.

Pioneer Media Holdings (PNER) is planning to acquire NGMI Labs Inc in return for four million shares. Pioneer has 45 days to undertake due diligence. NGMI was founded by three people with significant experience in the decentralised autonomous organisation (DAO) tokens sector.

Tectonic Gold (TTAU) expects to receive a tax rebate of $275,000 by the year end.

Yooma Wellness Inc (YOOM) has persuaded ASDA to stock 17 of its Vitality CBD products.

Scott Livingston has taken a 5.54%, not 5.16%, stake in Silverwood Brands (SLWD).

AIM

Marshall Motor Holdings (MMH) says that 64.4% shareholder Marshalls of Cambridge is thinking about selling its stake. Constellation Automotive has made it clear that it is interested.

Alien Metals (UFO) has acquired 30% of the Munni Munni project in Western Australia from ASX-listed Platina Resources for A$2.23m in shares and cash. This is one of the largest platinum group resources in Australia and it is near to the Elizabeth Hill project, which has platinum, silver, copper and nickel potential. Munni Munni has a historic non-compliant JORC resource estimate that suggests that there is 1.14 million ounces of palladium, 830,000 ounces of platinum, 152,000 ounces of gold and 76,000 ounces of rhodium. Artemis Resources owns the other 70%.

Telecoms billing and customer relationship management software provider Cerillion (CER) more than doubled its full year pre-tax profit from £3.7m to £8.5m, helped by much higher software revenues. New orders are building up and the order book is at record levels. The dividend was raised from 5.5p a share to 7.1p a share.

Driving safety technology developer Seeing Machines (SEE) has won its largest ever driver monitoring systems (DMS) order and raised £30.4m at 11p a share on the back of this announcement. The cash will be used for technology development and boost sales resources. The DMS deal, which has come through Magna International, is worth A$120m. In the year to June 2021, revenues improved from A$39.9m to $46.6m, while the loss was substantially reduced to A$16.7m.

Credit hire and legal services firm Anexo (ANX) has won a new contract with MCE Insurance to provide claims services for non-fault motorcycle accidents, which tends to be higher margin business. This will boost market share.

Appreciate (APPS) made the expected, although lower, loss in the first half, but the 50% increase in the interim dividend to 0.6p a share suggests confidence in the future. Revenues were 50% ahead at £41m with the faster growth coming in the consumer business even though the Christmas savings order book is lower. Appreciate has withdrawn from lower margin corporate business and there is volatility in bookings in recent months.

Asset management services provider MJ Hudson (MJH) achieved organic revenue growth of 14% and it is on course to grow full year revenues from £25.5m to £31m, helped by acquisitions, which would produce a pre-tax profit of £4m. Demand for ESG services is growing rapidly. On top of that, there is increasing outsourcing of the services provided by MJ Hudson.

Ashtead Technology (AT.) provides services and rents equipment to the offshore oil and gas and offshore wind markets. Services can be provided for installation, ongoing maintenance and decommissioning. It raised £15.5m at 162p a share to help it to grow internationally. The offshore wind services market is set to grow at 19% a year up until 2025. The shares ended the week at 162p.

Eneraqua Technologies (ETP) is well positioned to take advantage of the increasing focus on energy and water efficiency. It raised £12m at 277p a share and the shares ended the week at 285p. Eneraqua Technologies supplies and installs technology that improves energy and water efficiency in multiple occupancy social housing and commercial projects. The systems installed include the company’s Control Flow HL2024 technology, which will be manufactured in Spain. The order book for between August 2021 and January 2022 includes £22m of contracted revenues and there a further £21.3m of contracted revenues for the following two years.

Brickability (BRCK) is paying an initial £3.3m for HBS NE, which takes it into the renewable energy products market. It supplies and maintains solar, battery storage and electric vehicle charging. Brickability has relationships with housebuilders, which are being required to install EV charging points in new homes. Even before cross-selling, the deal is earnings enhancing.

Cyber security services provider Shearwater (SWG) reported a small decline in interim revenues due to lower services sales. Software revenues were flat, but margins improved. There is 50% visibility for second quarter revenues.

Treated sustainable wood producer Accsys Technologies (AXS) increased interim revenues by 31% in the first half. Accoya production remains limited because the new reactor will not go into service until next year. The Hull Tricoya plant will should commence production next July. The plans for the potential US Accoya plant are also progressing with a final investment decision expected in the next few months.

Omega Diagnostics (ODX) grew its health and nutrition revenues to pre-pandemic levels. Sales of the global health division also grew but Covid-19 test sales were disappointing. DAM Health has ordered £750,000 of tests since the end of the half year. Net cash was £3.9m at the end of September 2021. Omega remains loss making, and it is difficult to predict how quickly revenues will grow. There are some orders coming in for the VISITECT CD4 test.

Workflow technology provider ActiveOps (AOM) has improved gross margin and interim revenues grew by one-fifth. Annual recurring revenues are running at £19.8m.

MAIN MARKET

Packaging manufacturer and distributor Macfarlane (MACF) is trading ahead of expectations. Revenues are 25% higher than last year and the pre-tax profit is ahead of 2020. There are cost pressures and some customers have had supply problems elsewhere so their demand for packaging has reduced. Net debt was £2m at the end of October 2021.

BATM Advanced Communications (BVC) has announced a dividend of 0.74p a share.

JLEN Environmental (JLEN) is targeting a dividend of 6.8p a share in the year to March 2022. The interim dividend is more than covered by earnings. The portfolio of renewable energy and environmental assets has been diversified in recent years and that means that the company is not as dependent on revenues from wind power, which were hampered by low wind speeds in the period. Other assets performed well and there are plenty of investment opportunities in Europe. NAV is 98.4p a share.

Marine technology developer OTAQ (OTAQ) has secured a multi-year contract with Minnowtech. It will supply sonar technology for the jointly developed shrimp farming technology. Commercial launch is planned in Asia and the initial order will be more than $200,000. OTAQ owns 15.2% of Minnowtech. A major customer has given notice and OTAQ is seeking additional sources of funding.

Oxford Cannabinoid Technologies (OCTP) has signed an agreement with Dalriada Drug Discovery Inc of Canada, which will provide research and development services on compounds that Oxford Cannabinoid has access to via the Canopy Growth Corporation agreement.

Andrew Hore

Quoted Micro 1 November 2021

AQUIS STOCK EXCHANGE

Good Energy (GOOD) is partnering with Barrow Green Gas for gas shipping services. This should help the company to grow the amount of biomethane that it supplies to domestic customers. Founder Juliet Davenport has sold 50,000 shares at 317.6245p each, while finance director Rupert Sanderson has sold 17,680 at 341p each.

Decentralised finance investor Dispersion Holdings (DEFI) is acquiring platform developer Defi Yield Technologies Inc in return for 348.7 million shares. Dispersion already owned a 6.1% interest that cost C$1m.

Omni-Egis (OMNI), which was formerly known as First Sentinel, has decided to leave Aquis. Trading has already been suspended because of the lack of 2020 accounts and management believes it can save £200,000 a year. If shareholders agree the cancellation will happen on 24 November.

Valereum Blockchain (VLRM) has raised £2m at 40p a share with a warrant attached that is exercisable at 80p. Valereum has an option to acquire 80% of the Gibraltar Stock Exchange. No details have been revealed but the transaction will require the approval of the Gibraltar authorities. The idea is that the Gibraltar Stock Exchange will introduce mainstream trading in cryptocurrencies.

Pioneer Media Holdings (PNER) is raising C$1.5m at C$1 per unit, which is one share and one warrant exercisable at C$1.50. Pioneer Media has agreed to acquire Kodoku Studios, which is involved in NFT-gaming and developing a platform called The Pit, which will enable creators to host their own NFT arenas. The acquisition will cost C$850,000 in cash and eight million Pioneer Media shares at C$1 each. Pioneer Media says that it will be the only quoted investment company focused on NFT gaming.

Helium Ventures (HEV) is making its first investment since joining Aquis. Helium Ventures is investing A$400,000 in ASX-listed Blue Star Helium at A$0.056 cents a share. Blue Star has exploration projects in North America and the A$15m it has raised will be used to drill ten wells over the next 15 months.

In the year to April 2021, IamFire (FIRE) had net assets of £919,000, Since then £369,000 has been raised in a share issue.

Rutherford Health (RUTH) has treated the first prostate cancer patient with a combination of its technology and a treatment developed by Panthera. This is part of a phase II study to determine the optimum dose for the Panthera drug.

Black Sea Property (BSP) had net assets of €21.8m at the end of June 2021, down from €22.4m at the end of 2020. Net debt was €16.4m.

AIM

Smaller companies broker Arden Partners (ARDN) is being acquired by legal services firm Ince (INCE), one of its own clients, in an all-share offer. Ince is offering seven shares for every 12 Arden shares in a bid recommended by the board of the broker. Assuming an Ince share price of 53p, this values each Arden share at 31p and the total share capital at £10m. Arden shareholders will own just over one-fifth of the enlarged share capital of the group. Irrevocable acceptances equate to 44.5% of the Arden share capital. This merger will enable a full range of professional services to be offered to clients. The deal is expected to be earnings enhancing and there should be a continuation of Ince’s policy to distribute one-fifth of post-tax profit in dividends.

IG Design Group (IGR) is generating the expected revenues this year, but it its warning that margins are coming under pressure from increased costs and supply problems. Progressive Research has slashed its underlying operating margin forecast from last year’s figure of 4.8% to 2.8%. Previously, a 2021-22 operating margin of 6.1% was forecast. Forecast revenues are being maintained at $934.3m, compared with $873.2m last year. There will be a full 12-month contribution from the CSS acquisition. The slump in margin means that forecast underlying pre-tax profit has been more than halved to $21.3m, down from $37m last year.

Norish (NSH) has completed the sale of its cold stores and intends to pay a 166p a share dividend out of the cash. The company will be renamed Roebuck Food Group and will have food products sourcing and dairy farming operations.

Arrow Exploration (AXL) is traded on the TSX Venture Exchange and has gained a second quotation on AIM. Arrow raised £7.6m after expenses at 6.25p a share and this will be spent on the drilling of five wells on the Tapir block in Colombia. Arden partners forecasts 2022 sales of $20m and EBITDA of $10m, based on successful drilling. Management believes that if the wells are successful then production could average more than 2,000 barrels of oil equivalent/day, rising to 3,000 barrels/day by March 2023. The share price ended the week at 7.875p.

Specialist cleaning services provider React Group (REAT) admitted that its full year trading was disappointing, and the pre-tax profit forecast has been reduced by £100,000 to £684,000. Covid-19 decontamination work was not as buoyant later in the year and reactive work was also weak. New contract wins are building up the recurring revenues base.

MAIN MARKET

Building supplies retailer Wickes (WIX) says third quarter like-for-like sales fell by 1.6%. the 2021 pre-tax profit is expected to be between £67m and £75m. The share price has fallen since the demerger from Travis Perkins.

Dukemount Capital (DKE) improved full year revenues from £2.39m to £3.3m, but the loss increased from £332,000 to £914,000. That was mainly due to much higher professional fees. The revenues come form the property management business and the newer flexible power joint venture is still in development.

Digital transformation business Kin and Carta (KCT) increased full year revenues by 12.5% to £141.4m, while adjusted pre-tax profit improved from £8.1m to £13m, although that is before pension and acquisition charges. The order book is worth £70m. The plan is to organically double revenues over four years.

Andrew Hore

Quoted Micro 18 October 2021

AQUIS STOCK EXCHANGE

Good Energy (GOOD) has followed the lapsed Ecotricity bid with a nine-month trading statement saying that the renewable energy supplier is on course to meet full year expectations. Good Energy is more than 90% hedged for the next 12 months, so there is limited exposure to the current price volatility. Price rises have been implemented. The 0.75p a share interim dividend is payable on 29 November and the ex-dividend date is 21 October. Finance director Rupert Sanderson has sold 14,800 shares at 335p each, while chief executive Nigel Pocklington bought 7,500 shares at 351.666p each.

Walls and Future REIT (WAFR) is engaging with new investors so that there are buyers for the 10% of the share capital where investors are not long-term holders. This is holding back the share price and causing the high discount to NAV, according to management. The company has completed the design of its autism friendly housing.

CBD products supplier Voyager Life (VOY) generated revenues of £65,000 from incorporation to the end of September 2021. Monthly overheads are less than £50,000. There is £1.8m in the bank. New stores are opening in Edinburgh and Dundee.

Yooma Wellness Inc (YOOM) has acquired CBD products manufacturer N8 Essentials for 1.17 million shares issued at 67.3 cents a share. N8 has a 14,000 square foot manufacturing facility in Kansas. This will enable more group production to be brought in house.

Sativa Wellness (SWEL) has launched an online telemedicine service. This enables patients to follow up tests with a virtual medical consultation.

KR1 (KR1) is participating in the Kintsugi crowdloan and Kusama (KSM) parachain auction. KR1 contributed 5,000 KSM to the crowdloan.

Altona Natural Resources (ANR) has started drilling at the Monte Muambe project in Mozambique. This will improve the understanding of the geological model and test four newly identified targets.

The requisition for a general meeting at British Honey (BHC) has been withdrawn. Richard Day has been reappointed chairman and Mark Gamble as an executive director. Alex Maurice has stepped down from the board but continues to be employed by the company.

Hydro Hotel Eastbourne (HYDP) non-exec director CP Freeman has bought 800 shares at 884p each. David Evans has a 7.61% stake in Oberon Investments (OBE).

The SFO has ended its investigation into people associated with Watchstone Group (WTG) when it was known as Quindell.

AIM

Light Science Technologies (LST) is a contract electronics manufacturer and a developer of controlled environment agriculture technology, which joined AIM on 15 October. The agricultural technology being developed helps farmers to maximise crop productivity and monitor the growing environment. The company’s LED lighting range is called nurturGrow Luminaire and the nurturGROW sensor is being developed. There was £5m raised at 10p a share and the price ended the first day at 11.5p. The cash raised in the flotation will be used to expand facilities and increase marketing.

Floorcoverings manufacturer Victoria (VCP) has achieved record interim earnings. The UK has been a strong market, but Australia has been tougher. The full year outcome is likely to be ahead of expectations. Peel Hunt has upgraded its full year pre-tax profit forecast from £58.3m to £65m.

Branded furnishings and wallcoverings supplier Sanderson Design Group (SDG) improved interim pre-tax profit by 22% to £6m on a 48% increase in revenues. North American and UK sales were strong, and the manufacturing business bounced back. Management plans to generate more income from the archive of past patterns and designs. Net cash is £15.4m. Sanderson is on course to achieve an increase in full year pre-tax profit from £7.1m to £10.9m.

Eqtec (EQT) plans to acquire a 5MW project in Drama, Greece, which will generate energy from forestry waste. Financial close should be achieved for the project in the third quarter of 2022. There is also an additional £2.1m of investment in the North Fork project in California, which increases the stake from 10% to 49%. The 2MW biomass to energy project has been delayed due to fires and Covid. A $4.5m convertible loan facility has been provided to the development.

CyanConnode (CYAN) says interim revenues were £4.1m and it is well on the way to £9.4m of revenues for the full year. The narrowband radio frequency networks company continues to lose money, but cash levels should improve.

Motor dealer Vertu Motors (VTU) recorded record first half results despite supply problems for new vehicles. Used car prices have been rising because of the shortage of new vehicles. In the six months to August 2021, revenues increased from £1.2bn to £1.92bn. Underlying pre-tax profit soared from £4.7m to £51.8m, which is more than treble the first half of 2019-20. Net cash is £57.3m. The interim dividend has been re-established at 0.65p a share. The net tangible asset value is 61.5p a share.

High street sales recovered at fishing tackle retailer Angling Direct (ANG) despite being closed in the first ten weeks of the first half and online sales continued to grow. In the six months to July 2021, revenues improved from £32.1m to £38.4m with high street sales increasing by two-fifths. Online sales were 2% ahead. Pre-tax profit jumped from £1.36m to £3.72m, which includes government lockdown support. Full year pre-tax profit is expected to increase from £2.6m to £3.5m.

Driving safety technology developer Seeing Machines (SEE) has signed a framework agreement with Shell Global Solutions for its Guardian driver distraction and fatigue technology. Deployments should start later this year. Shell has 20,000 vehicles, compared with the total number of 31,771 vehicles using Guardian technology. Seeing Machines has also set up an EU sales team with a headquarters in Amsterdam.

Gresham House Strategic (GHS) has decided to change its investment manager from Gresham House Asset Management to Harwood Capital, where its previous investment manager Richard Staveley moved earlier this year, and Gresham House (GHE) has requisitioned a general meeting in order to have the company’s cash distributed to shareholders and the portfolio of investments liquidated over a 24-month period. Gresham House has a 23.3% stake in Gresham House Strategic and claims the backing of 40% of the share capital. The opposition to the move owns 30% of the company. Harwood intends to invest in the company, and it will generate lower fees, which will save the company £270,000.

Iodine company Iofina (IOF) produced 142.7 MT of crystalline iodine in the third quarter of 2021 and that underpins full year forecasts. Iodine prices continue to rise and recently hit $40/kg.

MAIN MARKET

LED lighting and wiring accessories supplier Luceco (LUCE) has acquired DW Windsor, an exterior lighting business, for £16.9m in cash. In the year to September 2021, operating profit was £1.9m.

Highway Capital (HWC) has finally found a suitable reverse takeover target, although there is no firm agreement. There will be a fundraising alongside the purchase of esports adviser and investor Guinevere Capital Esports & Entertainment. No purchase price has been announced

Oxford Cannabinoid Technologies (OCTP) has acquired medical assets from Canopy Growth Corporation, which provides access to cannabinoid derivatives and will help the company to develop additional drug projects. The lead compound OCT461201, which is a potential neuropathic pain treatment, is progressing towards clinical trials in the third quarter of 2022.

Andrew Hore

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