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Virgata Services is making a 50p a share cash offer for Walls & Futures REIT (WAFR) and that is a 52% discount to net assets at the end of September 2020. It is a premium to the market price prior to the announcement, but management recommends shareholders take no action. The bid values Walls & Futures REIT at £1.9m. Six shareholders own more than 80% of the company. Roy Nominees holds 33.2% and Standard Life Trustee Co Ltd holds 22.9%. Virgata is owned by the family office of the Goetstouwers family, and it has a property portfolio worth €80m, plus stakes in developments in the Netherlands. All the interests are outside of the UK.
Love Hemp (LIFE) plans to move to the Main Market later this year and has raised £5m at 3.5p a share. The cash will finance a global market campaign for its CBD and hemp products.
Sativa Wellness Inc (SWEL) has raised C$3.6m from the first tranche of its private placement. Sativa is offering two and eight day quarantine tests for travellers returning to the UK.
Good Energy (GOOD) is appointing Nigel Pocklington as chief executive. He is the former chief commercial director at Moneysupermarket.com. He starts on 1 May. Good Energy is making a further £1m investment, via a convertible, in electric vehicle mapping services provider Zap-Map’s parent company Next Green Car. Good Energy already owns 50.1% of Next Green Car. Zap-Map covers more than 95% of the UK public electric vehicle charging points.
KR1 (KR1) has invested a further $150,000 in Moonbeam Network for 30,000 GLMR tokens, taking the total owned to 130,000 tokens.
On 6 April, Coinsilium (COIN) $3.13m of cryptocurrency and tokens, up from $1.98m two months earlier.
Gunsynd (GUN) says that investee company Low 6 is on course to float in the second quarter of 2021. The B2B pool betting firm has 122,000 users.
Clean Invest Africa (CIA) has signed a memorandum of understanding Exagogi for the development of opportunities in India for CoalTech. India has high stockpiles of coal fines waste, which CoalTech can clean-up.
A general meeting has been requisitioned by shareholders at Early Equity (EEQP).
Evrensel Capital Partners has not subscribed the £250,000 for shares in Truspine Technologies (TSP) that it promised last September. TruSpine has raised £35,000 at 10p a share, taking the total raised in the latest fundraising to £620,500.
Tectonic Gold (TTAU) has raised £634,000 following the exercise of warrants at 0.7p each. Tectonic has raised A$215,000 from selling part of its holding in VOX Royalty Corp.
EPE Special Opportunities (ESO) had a nav of 448.15p a share at the end of March 2021.
Chris Akers has reduced his stake in Quetzal Capital (QTZ) from 17.2% to 12.3%.
Gowin New Energy (GWIN) has appointed Novum Securities as corporate adviser and trading in the shares has recommenced.
Minds + Machines (LSE: MMX) is selling its business and assets to GoDaddy for $120m (£87m) and this is equivalent to 8.8p a share, after transaction costs. ICANN needs to provide approval for the transfer of the top level domains. The company will become a shell.
Mobile phone and technology recycler and reseller musicMagpie could have an enterprise value of between £180m and £220m when it plans to join AIM later in April. The company buys and resells smartphones, computers, CDs, DVDs, books and other products that might have ended up in landfill. The market for pre-owned technology and media is estimated to be growing at 10% a year. In the year to November 2020, revenues were £153.4m and EBITDA was £13.9m.
Demand remains strong from the rail sector for software and consultancy services from Tracsis (TRCS), although the data and events businesses had a tougher time. Interim profit declined in the first half. finnCap forecasts a recovery in full year pre-tax profit from £8.3m to £9.1m, before a much larger increase in 2021-22 assuming trading is nearer to past levels. The Williams rail review is due to be published and this could provide additional opportunities for Tracsis.
International payment services provider Equals (EQLS) increased business revenues in 2020, but a slump in consumer revenues due to the lack of travel. Total revenues were 4% ahead at £29m and Equals made a small profit. In the first quarter of 2021, revenues were flat at £8m and again this masks business growth, plus the comparatives were strong in this period. Canaccord Genuity has upgraded its 2021 pre-tax profit forecast from £3.8m to £4.2m.
FIH Group (FIH) lost money in the UK last year, but this was more than offset by profits in the Falklands. The art distribution and Portsmouth Ferry operations were hit by Covid-19 lockdowns.
Oil palm plantation operator Dekel Agri-Vision (DKL) produced 71,500MT in the first quarter. Crude palm oil sales were 27% higher at 13,921MT and average realised prices are one-fifth higher. Dekel is on course to make a pre-tax profit in 2021.
Arena Events (ARE) has been successful in its bid for the business and assets of Aztec Schaffer. Arena will pay $3.35m for a 50% stake in a new joint venture owner of the assets and there will be a debt financing package of $18.25m.
Sales of new and used cars by Lookers (LOOK) fell by 10% last year. However, it appears to have gained market share in new cars. Peel Hunt has increased its 2021 pre-tax profit forecast by £11m to £34.8m.
Stranger Holdings (STHP) has signed heads of terms to acquire Technology Minerals, which itself is involved in acquisitions of businesses producing battery raw materials and recycling batteries. These include Recyclus Group, which Stranger has previously considered buying. League of Angels founder Barney Battles has been appointed as a non-executive director.
Caerus Mineral Resources (CMRS) is acquiring PR Ploutonic Resources. This includes the Troulli, Kokkinapetra and St Nicholas copper and gold licences. Caerus is paying £750,000 in shares.
Argo Blockchain (ARB) says March revenues were at a record level of £6.57m. This reflects the installation of additional equipment and a higher bitcoin price.
Tirupati Graphite (TGR) achieved record graphite production in the first quarter of 2021. Work continues on increasing capacity at the Sahamamy project in Madagascar.
Anemoi International (AMOI) has raised £240,000 at 4p per depositary interest.
AQUIS STOCK EXCHANGE
Wine and beer maker Chapel Down (CDGP) made a similar interim loss this year. Wine revenues were one-fifth ahead even though sales were lost in pubs and the company’s own retail site. Online sales offset those declines. Wine stocks have increased by one-third to £11m. Beer and cider sales fell by 38% and gross profit slump by 59%. There was £5.83m in cash at the end of June 2020.
Coinsilium Group Ltd (COIN) reported an increase in interim revenues from £109,000 to £140,000. Reversal of impairments and unrealised gains helped to generate a pre-tax profit of £27,000, down from £242,000 because of lower unrealised gains. NAV was £2.52m, including cash of £129,000, at the end of June 2020. Since then, there has been an increase in the value of cryptocurrency and tokens held by the company.
Western Selection (WESP) has sold its stake in AIM-quoted Brand Architekts (BAR) and raised £1.43m at 109.78p a share. The shares were valued at £1.63m in the recent balance sheet. Peter Gyllenhammr increased his stake in Brand Architekts from 6.1% to 10.5%.
KR1 (KR1) reported an interim pre-tax profit of £522,000, including an unrealised gain of £711,000. The NAV was 6.18p a share at the end of June 2020. The latest digital asset investment is $100,000 in the Moonbeam Network project. This is a smart contract platform and KR1 will receive Glimmer tokens that will power Moonbeam’s blockchain.
Incanthera (INC) has announced positive data for a skin sensitisation study for skin cancer technology Sol. This shows it to be non-irritant. ImmuPharma has subscribed £250,000 for shares at 9.5p each. That takes the stake to 15.3%. A total of £350,000 was raised with directors subscribing for the other £100,000.
Housebuilder St Mark Homes (SMAP) has an NAV of 125p a share, compared with a share price of 87.5p (85p/90p). There was a swing from interim profit to loss.
Gunsynd (GUN) has invested £58,000 in gold explorer Angold Resources, subject to its reversal into ZTR Acquisition, which was formerly Oyster Oil and Gas, where Gunsynd already has a stake.
Property investor Ace Liberty and Stone (ALSP) has completed the £1.43m acquisition of a property in Scarborough leased to Skipton Building Society. It has exchanged contracts on a Carlisle property costing £1.71m.
NQ Minerals (NQMI) says that processing rates at the Hellyer gold mine have increased to 165 tonnes per hour. The average annualised production rate was 1.23Mtpa in July and August.
Gowin New Energy Group (GWIN) says it is near to appointing a new corporate adviser so that trading can resume in the shares. Management is working towards launching a tea business.
Primorus Investments (PRIM) has invested £1m in construction payments software company Zuuse. Thi is part of a £2.2m fundraising to pay for a transaction expected in the next few weeks. Primorus already owned shares and warrants in Zuuse, so it owns 1.7% of fully diluted share capital. Primorus has sold six million Greatland Gold (GGP) shares at an average price of 14.8p each. That leaves Primorus with 20 million Greatland shares.
Capital for Colleagues (CFCP) had an NAV of 51.53p a share at the end of May 2020.
IFA group AFH Financial (AFHP) says that business is recovering and it continues to be profitable and cash generative.
Eurocann International (BUD) is changing its name to DiscovOre (ORE) and the investing strategy broadened to include natural resources as well as cannabis-related activities.
SativaWellness Group Inc (SWEL) has been readmitted to the AQSE growth market following the reverse takeover of the company.
Avingtrans (AVG) improved its 2019-20 pre-tax profit from £5.3m to £5.9m despite loss contributions from recent acquisitions. One of those acquisitions, Booth Industries, has won a £36m doors contract for HS2. finnCap forecasts a 2020-21 pre-tax profit of £7.3m and Avingtrans is likely to reinstate the dividend.
Demand for the type of data erasure and cyber security services provided by Blancco (BLTG) remains strong, although April and May were tough. In the year to June 2020, revenues improved from £30.5m to £33.4m, helped by acquisitions. Pre-tax profit grew from £3m to £3.9m. Investec expects further profit improvement to £4.3m this year, but it will be second half weighted.
Geospatial services provider 1Spatial (SPA) reported an 8% rise in interim revenues to £11.7m, although the core business revenues made up a greater proportion of the total. There was an interim loss but positive operating cashflow of £1.7m. Net cash was £3.4m. 1Spatial could make a small full year profit.
Grant Thornton has decided to settle litigation with AssetCo (ASTO) rather than appeal the court judgement. This means that AssetCo can access the £28.6m lodged with the court plus the balance of money owed by Grant Thornton. Once this is received, AssetCo will have cash of £55m and net assets of around £52m. The market capitalisation already takes this into account.
The FDA has approved adrenal treatment Alkindi in the US and Diurnal (DNL) should receive a $2.5m milestone payment from distributor Eaton pharmaceuticals when sales start next year. That is on top of licence income. That means that Diurnal’s cash will last longer.
New Trend Lifestyle Group (NTLG) changes its name to Conduity Capital (CCAP) on 5 October. The former activities have been sold and Conduity becomes a shell.
Erris Resources (ERIS) plans to buy a 50% stake in Zinnwald lithium project owner Deutsche Lithium from Bacanora Lithium (BCN) in exchange for shares and a net profit royalty.
Yu Group (YU.) reported a decline in first half revenues from £56.6m to £45.9m due to lower energy consumption by its commercial energy customers. There was a lower loss in the period but reduced working capital requirements meant that there was a significant cash inflow from operating activities. There was £17.9m in the bank at the end of June 2020. Management has invested in marketing in order to win new business.
Intelligent Ultrasound (MED) is launching its first AI software product alongside GE Healthcare. GE has 480,000 ultrasound machines in use and the AI software will be integrated in a range of women’s health ultrasound machines. It could be rolled out across other machines in the future.
M and C Saatchi (SAA) has failed to publish its results and trading in the shares has been suspended. Windar Photonics (WHPO), Clear Leisure (CLP), Malvern International (MLVN), Tri-Star Resources (TSTR) and Hydrodec (HYR) have had share trading suspended for the same reason. The acquisition of Bristol Energy customers will boost scale and help Yu to move towards profitability.
Car finance provider S and U (SUS) generated revenues of £42.8m in the six months to July 2020. That was a 3% decline, but the effects of the Covid-19 lockdown will be greater in the second half. Net receivables were down by 6% to £281.9m, but new loan volumes fell by one-third in the first half. Bad debt provisions were increased by £13.8m to £21.7m and this led pre-tax profit to slump from £17.1m to £6.3m. The property bridging loan business made a lower profit contribution, although the market has subsequently inproved. Even so, a dividend of 22p a share was announced, down from 34p a share.
Guild Esports (GILD) raised £20m at 8p a share. The share price ended the first day of trading at 8.15p.
Mining shell Critical Metals (CRTM) joined the standard list on 29 September. The placing price was 5p and the price was 5.5p at the end of the week.
Toople (TOOP) is on course to achieve £1.6m of annualised cost savings from integrating DMSL. The focus is on margin rather than just growing revenues.
Ross Group (RGP) reported a reduced loss of £830,000, down from £3.15m, in the first half of 2020. There were no revenues, but the company is trying to build up supply chain operations.
InnovaDerma (IDP) reported full year figures in line with its trading statement in July. The skincare products supplier slumped into loss due to higher marketing costs. There was cash of £1.2m at the end of June 2020.
Newspaper publishing consolidator National World (NWOR) had £4.31m in the bank at the end of June 2020. It is still evaluating acquisition opportunities.
Fuel emulsification technology developer SulNOx Group (www.sulnoxgroup.com) plans to join NEX. SulNOx has developed an emulsification and condition process for hydrocarbon fuels. This process makes the fuel more efficient and thereby reduces fuel usage and emissions. Nouryon AB will manufacture and distribute the company’s products under the Berol brand. SulNOx will do the sales and marketing. The directors are applying for approval of eligibility of the company for EIS relief.
Arbuthnot Banking (ARBB) has obtained a NEX Growth Market quotation. The shares continue to be traded on AIM.
AfriAg Global (AFRI) has agreed to subscribe for four million shares in Apollon at 25p each, although part of the investment requires shareholder approval. This is equivalent to a 2.34% stake. However, AfriAg needs to raise this £1m in order to make the investment. It had £101,000 in the bank at the end of 2018 and NAV was £1.9m. The plan is to obtain an option to acquire the rest of the company. Apollon is a medicinal cannabis company and it has an affiliate in Jamaica that has a licence to cultivate, process and sell hemp and medicinal cannabis. Specific strains of medicinal cannabis have been developed.
KR1 (KR1) is generating staking yield revenues on the Cosmos Network, which launched on 14 March. The yields will be a minimum 5.6% yield and it could be much higher. This type of revenues could be generated by other networks where KR1 has an investment.
Sativa Investments (SATI) had £3.74m of cash at the end of 2018. This will be used to develop operations in the UK and Germany. Last year’s revenues were £260,000.
Tectonic Gold (TTAU) has taken operational control of the Vast Mineral Sands diamond mining contract. Cash generated will finance gold exploration.
High Growth Capital (HASH) has consolidated 20 shares into one new share. Dealings commenced on 16 May.
Primorus Investors (PRIM) increased its NAV from £4.95m to £5.16m at the end of 2018. This has been achieved even though pre-IPO investments have had their flotations delayed by poor market conditions. There was £408,000 in cash in the balance sheet.
Proton Partners International Ltd (PPI) has raised £10m at 176p a share by issuing shares to Woodford as part of the agreement in the flotation prospectus. NQ Minerals (NQMI) has issued 1.37 million shares at 6.5p each to satisfy a payment for the three month extension of maturing debt.
Gowin New Energy (GWIN) has extended the loan agreements with four shareholders so that the repayment dates are all around the beginning of November. The loans total £500,000.
Software provider Sanderson (SND) prospered in the first half. Revenues improved by 18% to £17.2m and operating profit was one-third higher at £2.8m. Recurring revenues grew by 18% and they are 55% of total revenues. Sanderson has already secured most of the revenues it requires to make the full year revenues forecast of £35.3m, which is expected to generate pre-tax profit of £5.4m.
Block Energy (BLOE) has raised £12m at 11p a share. This comes less than one year after Block joined AIM when the oil and gas company was valued at £10.3m at the placing price of 4p. The cash will be invested in the West Rustavi PSA in the Republic of Georgia. Up to four horizontal sidetracks will be drilled in order to scale up existing production, as ell as drilling one new well. There will also be funds for 3D seismic, appraisal of two existing gas discoveries and increase the capacity of production facilities to up to 5,000 barrels per day. This will all be done over the next 12 months.
Investment and new store opening costs have pushed fishing equipment retailer Angling Direct (ANG) into loss. In the year to January 2019, revenues grew from £30.2m to £42m. International sales more than doubled to £4.7m. IT investment is improving efficiency. Angling Direct will continue to lose money this year as the number of stores is set to be increased from 24 to 34. It takes more than a couple of years for a store to start to mature so the benefits of the current investment will take time to show through in profit terms.
Live events agency Aeorema Communications (AEO) says its revenues reached a new high in the second half and full year revenues will be better than expected. New business has been won but it is lower margin than previous contracts so profit will be in line with expectations. There should be a full year dividend. Last year’s dividend was 0.75p a share, which was an increase of 50%.
TruFin (TRU) is launching a tender offer for up to £5m of shares at 92p each. The tender offer closes on 4 June. TruFin recently £44.5m raised from the sale of its stake in Zopa and demerged Distribution Finance Capital (DFCH). There are plans to return a further £5m by the end of 2019.
Churchill China (CHH) is continuing to trade strongly so far this year. The opening of the Rotterdam distribution facility is supporting European growth. Sales of added value products are growing. The integration of the Dudson brand and products is progressing well.
Online retailer MySale (MYSL) has sold the cocosa.co.uk website. This is part of the plan to exit the UK and concentrate on Australia and New Zealand.
Film completion contracts provider FFI Holdings (FFI) says operating profit will be at the lower end of the range of $7.5m to $11.5m previously reported.
Maistro (MAIS) has decided to leave AIM. The company has gone from a hyped-up online business called blur to cash strapped operation that needs to save as much money as possible. Maistro has raised plenty of cash in its time as a quoted company.
Veltyco Group (VLTY) has generated flat revenues from sportsbook and casino marketing business in the year to April 2019. The revenue mix has changed, and lower margin activities have grown in importance. The company is loss-making and more investment will be required.
The recovery at Safestay UK (SFE) appears to be stalling, even though it is growing revenues faster than the market is growing. The problem is that margins are not improving as quickly as expected.
Ten Lifestyle (TENG) increased revenues by 24% to £21.5m but the loss has risen due to greater investment in the business. The lifestyle and travel platform still has £13.2m in the bank. New contracts are being won and existing ones increased in size.
Blencowe Resources (BRES) has wasted little time in securing a takeover target. It plans to acquire a company which is the owner of the Oram graphite project in Uganda for £2m in shares at 6p each.
nmcn (NMCN), which formerly North Midlands Construction, says first quarter revenues increased by 27% to £94.4m and improved margin meant that profitability increased by 170% to £1.75m. The built environment division moved back into profit and the water division doubled its profit. There is £22m in the bank. The secured workload for the year is £342m.
Packaging manufacturer and distributor Macfarlane Group (MACF) says profit is ahead of last year and in line with expectations. Sales have grown by 7% so far this year and organic growth is 3%. The manufacturing operations have grown fastest.
Highway Capital (HWC) is catching up with its figures having published more than one set this week. The interims to August 2018 show a cash outflow from operations of £9,000. Net liabilities were £614,000.
There was a £949,000 cash outflow from operations at Toople (TOOP) in the six months to March 2019. There is net cash of £546,000.
Flavours supplier Creightons (CRL) says second half sales will be similar to those in the first half. There will be a £350,000 benefit from research and development tax credits.
Argo Blockchain (ARB) has adjourned its general meeting following the resignation of Jonathan Bixby. Mike Edwards become chairman. Another director will be appointed in consultation with First Investments, which requisitioned the general meeting. First Investments is backing the existing business by investing up to $1m as a cryptomining-as-a-service customer.
Blockchain venture builder Coinsilium Group Ltd (COIN) says that RIF Labs is acquiring RSK Labs, where Coinsilium owns 65,000 series Seed-1 preferred shares. The cost of the investment was $83,750. The acquisition is a share for token swap and Coinsilium will end up with 1.95 million RIF tokens, which is the equivalent of 139.4 bitcoins, currently valued at $773,000. However, an initial 12.5% of the consideration will be released six months after the deal is completed and then 2.5% each month for 42 months.
NQ Minerals (NQMI) has entered into an additional marketing and off-take agreement with Traxys Europe. The deal covers the production from the Hellyer project in Tasmania for the first five years. This includes a facility for prepayment.
Tectonic Gold (TTAU) says that its Australian subsidiary has received a A$590,000 tax rebate from the Australian government. A 43.5% rebate is due on qualifying technical expenditure and so far more than A$2m has been received. Spending continues.
Gowin New Energy Group Ltd (GWIN) chief executive Chen Chih-Lung is lending £40,000 to the company for 12 months at an annual interest rate of 2%.
Music and audio equipment supplier Focusrite (TUNE) is continuing to grow internationally although Asia is growing at the fastest rate. Full year revenues grew by 14% to £75.1m, while pre-tax profit improved from £9.51m to £11.3m. The dividend is 22% higher at 3.3p a share. There is £22.8m of cash in the bank and this could be used for add-on acquisitions. Tariffs on Chinese exports are being used as a way of testing out price rises for the US market. Forecast profit growth is modest but there is potential for outperformance.
Tristel (TSTL) is buying its distributor in Benelux and France and this will enhance earnings. The maximum payment for Ecomed will be €6.8m (£6m) with €5m paid up front. The deal also provides an additional warehouse in Europe. A full year contribution in 2019-20 will increase pre-tax profit by £700,000 to £6.5m.
Sustainable timber supplier Accsys Technologies (AXS) has increased its capacity for Accoya production by 50% and this will help production in the second half. Demand for Accoya is strong and sales increased from €28.3m to €31.1m in the six months to September 2018. The development of the Tricoya plant in Hull is progressing. Construction could be completed in the middle of 2019 and it will breakeven at 40% of capacity. Tricoya, which is used in MDF-type panels, is currently produced from Accoya and this plant will free up Accoya production for other customers. Numis forecasts a rise in full year revenues from €60.9m to €73.1m and a decline in loss to €5.1m. Net debt is expected to be €46m at the end of March 2019 and it will continue to rise because of the capital investment programmes. If partners can be secured in the USA and Asia then this could provide a significant boost to the company.
Initial drilling results at the Havieron licence area in Western Australia provided good news for Greatland Gold (GGP) with two wide zones of gold and copper mineralisation intersected. This significantly extends the known mineralisation.
Immunodiagnostic System Holdings (IDH) is up to its old tricks. The interim figures were published at 5.04pm on Friday 23 November. To be fair this is 14 minutes earlier than the half year trading statement so maybe the company is improving. Here’s hoping. Interim revenues were flat at £18.5m but the company fell into loss. There was £27.8m of cash in the bank (net cash of £26.5m) at the end of September 2018. Maybe some of this should be spent on an alarm clock so management can get up in the morning to release its results.
Chris Jagusz has stood down as chief executive of Redcentric (RCN) as revenue growth has been hard to come by. The latest interims have sparked downgrades for 2018-19 with revenues cut by 5% to £94.2m.
SIMEC AtlantisEnergy (SAE) has singed a joint venture with AD Normandie Developpement and this will enable the commencement of tidal energy projects between France and Alderney. A capacity of 3,000MW is being targeted and there is potential for EU grants.
Innovation software provider Imaginatik (IMTK) has achieved annualised cost savings of £1.2m, but the strategic review held back revenues and new orders in the first half. The cash outflow declined. Trading levels are picking up.
There are no competition concerns about the Ebiquity (EBQ) disposal of its advertising intelligence business to Neilsen Media Research. The business has been underperforming because of the uncertainty and this will enable the deal to go ahead. Ebiquity says that 2018 operating profit will be lower than expected.
Positive news about the Wressle oil project, where the planning officer for North Lincolnshire has recommended approval. The original application was refused two years ago. Operator Egdon Resources (EDR) owns a 30% interest in Wressle, Europa Oil and Gas (EOG) has a 30% interest and Union Jack Oil (UJO) has a 27.5% interest. Humber Oil and Gas owns the other 12.5%.
Integumen (SKIN) has raised £355,000 from a placing at 0.44p a share. This cash will support the development and commercialisation of Labskin. Integumen is paying €40,000 and six million shares to former chief executive Declan Service.
Sutton Harbour (SUH) returned to profit in the six months to September 2018, although the corresponding period had a hefty asset write-down, and it is raising cash for pre-construction funding. An open offer of 77-for-786 at 29p a share will raise up to £3m and close on 6 December. Planning approvals have been received for the Sugar Quay and Harbour Arch Quay schemes in Plymouth.
Electronic and battery products supplier Solid State (SOLI) is starting to improve its performance, although there may still be a decline in full year profit. In the six months to September 2018, revenues were 5% ahead at £23.6m and pre-tax profit improved from £1.55m to £1.66m. The interim dividend was 5% higher at 4.2p a share. The order book was worth £29.6m at the end of September 2018.
TomCo Energy (TOM) has appointed Turner Pope to replace SVS as broker and trading in the shares has recommenced.
SEC (SECG) is acquiring France-based public and corporate affairs business CLAI. An initial 10% stake, but with 50.1% of voting rights, will cost €490,000 in cash. A further stake of 40.01% will be acquired in the second half of 2020 and another 10% in the second half of 2023. The shareholders can ask SEC to buy the remaining shares between 30 July 2025 and 30 November 2025. The final payments are based on an earnout although the maximum will be €8.8m. In 2017, CLAI made a pre-tax profit of €551,000 on revenues of €4.49m. The acquisition could be earnings enhancing. CLAI will continue to be run by existing management.
Majestic Wine (WINE) is finding the UK market tough and margins are coming under pressure. Peel Hunt has reduced its 2018-19 pre-tax profit forecast by £2m to £12.8m, partly due to increased investment in Naked.
Kestrel has increased its stake in Pebble Beach Systems (PEB) to 22.2%.
Another disappointing trading statement from Fire Angel Safety (FA.) has led to a 2018 profit downgrade. Stock problems and delays to orders have hit the smoke alarms supplier. Scottish legislation due to be passed next year should provide a boost to demand. Fire Angel will be loss-making in 2018 but should make a small second half profit.
Legal services firm Knights Group (KGH) says that interim figures will be in line with expectations with double digit organic revenue growth. The interims will be announced on 15 January.
Maritime identification systems developer SRT Marine (SRT) had already flagged its 9% increase in interim revenues to £3.2m and increased underlying loss of £1.3m. There was little contribution from the GeoVS analytics system. There are expected to be significant deliveries in the second half, but timing cannot be guaranteed. A full year profit of around £3m is expected if the deliveries do take place. SRT is no longer considering investing in its own satellite constellation for this business.
FIH Group (FIH) reported flat interim profit, although there was a sharp improvement in contribution by the Momart art and museum logistics business. There was a decline in the performance of the Gosport ferry and Falkland Islands activities.
Lawyer Gateley (GTLY) says interim revenues will be one-fifth higher at £46.4m with around 50% of this organic growth. Full year revenues should be at least £102m. EBITDA margins should be maintained suggesting full year EBITDA of more than £19m. That is slightly higher than previous consensus.
Argentina-focused oil and gas producer and explorer President Energy (PPC) says the first Puesto Flores development well is producing at 600 bopd, having peaked at 1,000 bopd. This is as much as was anticipated from all three development wells. The results from the second development well appear positive and testing is about to commence. finnCap believes that the first well could have a post-tax NPV of $20m.
Pallett developer and manufacturer RM2 International (RM2) is raising £13m at 105p a share, following a 200-for-one share consolidation. This replaces the second tranche of a previously announced placing which would have happened at 1p a share (200p a share equivalent) but RM2 did not meet the performance requirements to spark the other placing. All but one of the investors set to buy shares previously will subscribe to the new placing. The cash will be used to fit track and trace devices to existing pallets, produce new pallets and cover admin costs. The cash will last until next April.
finnCap has sharply downgraded its pre-tax profit forecasts for telecoms services provider Maintel Holdings (MAI) due to project delays. The 2018 figure has been cut from £12.9m to £9.8m and the 2019 figure from £16.1m to £12.7m. The 2018 dividend is still expected to be 34.5p a share, although the cover will fall to 1.6 times. There is a move towards recurring revenues which will have a longer-term benefit for Maintel.
Restaurants operator Tasty (TAST) has revised its £7m term loan facility, which will be extended until March 2022. Quarterly repayments will be reduced from July 2019, by which time the amount draw down will be reduced by £1.1m. Net debt is currently £4.3m.
The NAV of value-focused investment vehicle Gresham House Strategic (GHS) has held up well considering the stockmarket decline. It grew to 1264p a share at the end of September 2018 and it was still 1243.2p a share on 16 November. The stake in IMImobile (IMO) has been reduced but it remains a strong performer. Cloud communications software supplier IMImobile improved its interim revenues by one-quarter and organic growth was 15%. The growth came from the European and American operations. Established customers are buying more services from the company and acquisitions are supplementing growth. Liontrust has increased its IMImobile stake to 21.4% but Kestrel has cut its to below 3%.
Payment protection software provider PCI-PAL (PCIP) is paying former boss William Catchpole his contracted entitlements plus £100,100 in settlement of his claims. The board unanimously asked Catchpole to leave in October. The final loan note repayment of £250,000 has been received from the buyer of the contact centre business.
Digital and media recruiter Nakama Group (NAK) reported flat interim net fees of £2.7m, but it managed to return to profit thanks to reduced costs. Further cost cutting is underway. There was a £558,00 cash inflow from operations and net debt was £488,000.
Antennas developer MTI Wireless Edge (LSE: MWE) has completed its merger with Israel-quoted majority shareholder MTI Computers and the initial benefits will show through in the second half. The interim figures show organic growth in revenues of 2%, but that growth should accelerate in the second half. Water management technology provider Mottech is winning new business and there are good prospects for the other divisions. The NAV is 17.8p a share and the full year dividend could be 1.25p a share.
Two directors have invested nearly £230,000 in shares in Condor Gold (CNR) at 22pa share. Non-executive Jim Mellon took his stake to 7%, while executive chairman Mark Child has reached 6%. Condor has been granted an important environmental permit for the development of a processing plant at its La India project in Nicaragua. SRK Consultants is preparing an updated mineral resource.
Juridica Investments Ltd (JIL) plans to leave AIM as part of the process of winding-up the company. The quotation will be cancelled on 21 December after liquidators from KPMG Channel Islands are appointed. Management fees will be reduced.
Online women’s fashion retailer Sosandar (SOS) continues to build up its sales, having been trading for two years, and they reached £1.84m in the six months to September 2018. The loss was nearly £2m. Returns were 52% but that was put down to a high level of dress sales in the period and it can be more difficult to get the right fit. The benefits of the move to the Magento 2 ecommerce platform and the investment in the website are showing through in the second half. October was a record month. A placing raised £3m after the balance sheet date so pro forma cash is £5.56m.
600 Group (SIXH) has rationalised its UK business and sorted out its pension problems. Interim revenues were slightly ahead but underlying margins improved from 5.1% to 6%. The machine tools and laser marking equipment supplier is expected to improve its full year pre-tax profit from $3.05m to $3.9m.
Motor dealer Cambria Automobiles (CAMB) has performed well considering the dip in the new car market. Used vehicles and aftersales offset some of the decline. There was a 2% decline in revenues to £630m and underlying pre-tax profit fell by 13% to £9.8m. The capital investment programme for new sites has peaked and the benefits of that investment are still to come.
Veltyco Group (VLTY) is still finding it difficult to collect the money it is owed. This means that its cash is running low and this will impact its ability to promote its own brands.
Graphene materials supplier Directa Plus (DCTA) is confident that it will achieve 2018 revenues of €2.3m and this figure could double in 2019. Growth is coming from textiles, environmental and elastomers customers.
Ubisense Group (UBI) is selling RTLS SmartSpace for up to £35m, which is around two-thirds of the software company’s current market value. The group had cash of £6.8m in the middle of November 2018. Funds managed by Investcorp Technology Partners will pay an initial £30m. Liabilities of £3.1m and a loan of £1.75m will have to be paid out of the proceeds. The company’s name will be changed to IQGeo and it will focus on the myWorld product, which helps telecom companies to integrate their technology ecosystem. The myWorld business generated interim revenues of £5.7m but £3.2m was geospatial services from third party products. Some of the cash will be distributed to shareholders.
The decline in annual pre-tax profit at Stride Gaming (STR) from £18.9m to £14.8m was no surprise given the impact of regulation and tax. The online bingo and gaming company is likely to report a further fall in profit this year. A special dividend of 8p a share has been announced and in future 50% of net earnings will be paid in dividends.
Packaging and labels supplier Macfarlane Group (MACF) continues to grow revenues organically, supplemented by recent acquisitions. Organic growth has been 5% and overall growth is 13%. The fourth quarter is important, though. Full year pre-tax profit is forecast to improve by 47% to £13.6m and earnings per share by one-third to 7p. Acquisition payments should be offset by cash generated in the second half.
S and U (SUS) has increased its investment in Aspen Bridging from £20m to £30m. Aspen has been trading for less than two years and is already in profit.
Creightons (CRL) increased its interim profit by 44% to £1.38m on revenues one-third ahead at £22.3m. The main growth in sales has come from retailer own brands, while Creightons own brands raised their sales by 11%.
David Brown has sold his 4.55% stake in Associated British Engineering (ASBE).
Sealand Capital (SCGL) has formed a new subsidiary called ePurse (HK) Ltd, which is generating commissions from WeChat Pay activities in Hong Kong. Licences have been obtained in the UK and Dubai.
Good Energy (GOOD) has renewed its offshore wind power deal with Orsted for a further two years. This secures 12% of the output of a North Sea wind farm and this can power more than 26,000 homes. Generation has been ahead of expectations.
KR1 (KR1) has announced its latest investments. An investment of £184,000 has been made in Nexus Mutual Project (NXM) tokens. The number of tokens will be confirmed after the public token sale. KR1 will receive the tokens at a 17.5% discount to the lowest price offered in the public sale. Nexus Mutual will use blockchain technology to recreate insurance mutual. The company has also invested £150,000 in Argent Labs Ltd, which is creating a decentralised banking protocol on the Ethereum blockchain. KR1 has invested €201,000 in the private pre-sale for the Herdius project.
Gibraltar-based TDH Ltd has taken on Coinsilium Group Ltd (COIN) as its adviser for a token generation event. The TrustedHealth platform will create a decentralised global network of doctors and healthcare specialists offering virtual consultations. They will pay with TDH tokens and the token sale started on 27 March and lasts until 27 April. Faruk Saylam has sold 1.5 million shares, which leaves him with a 4.4% stake.
NQ Minerals (NQMI) has been granted a mining lease for the Sunbeam silver mine in northern Queensland. This will enable the processing of 48,000 tonnes of mineral stockpiles, which include gold, silver, copper, lead, zinc and antimony.
MetalNRG (MNRG) says the prospective buyer of the company’s stake in US Cobalt has completed due diligence. MetalNRG will receive 21.7 million shares in ASX-listed Tyranna Resources Ltd for its 15.38% stake in US Cobalt.
Angelfish Investments (ANGP) says that One Media Enterprises has been acquired by OTC-quoted OneLife Technologies Corp but the payment it is due will have to wait until the buyer is allowed to raise cash. That should be later in April. Angelfish will have its original investment repaid along with management fees plus an uplift in the amounts due. The timing of the first instalment is still uncertain.
First Sentinel (FSBN) has raised a further £62,000 from a bond issue. The company plans to issue up to £4m of bonds.
Gowin New Energy Group Ltd (GWIN) says that Mr Chen Chih Lung has converted his loan note into 40 million shares at 1p each. This takes his stake in Gowin to 21.6%.
SimplyBiz Group (SBIZ) joined AIM on 4 April. It was valued at £130m at the placing price of 170p but the share price ended the week at 160.5p. The company provides compliance and business services to financial advisers.
Higher managed services revenues helped AdEPT Telecom (ADT) to make further progress last year. Pre-tax profit is expected to be £7.4m and the dividend will be raised 13% to 8.75p a share. Debt is lower than expected.
Broadcast industry software provider Pebble Beach Systems (PEB) is hopeful that it can secure terms to extend its bank facility until November 2019. Pebble is adding industry experience with the appointment of Graham Pitman as a non-executive director.
Gooch and Housego (GHH) says trading is in line with expectations and the order book is at a record level of £84.7m. Demand for high reliability fibre couplers has been weak but is expected to recover in the second half. The manufacturing sites have been organised into three technical groupings and performance is improving. The interims will be published on 5 June.
Floorcoverings supplier James Halstead (JHD) says it is considering a bid for Airea (AIEA) but it has yet to approach for the Burmatex-branded floorcoverings business. Airea is closing its Ryalux residential carpet business. There is £3.7m in the bank and the pension deficit has been reduced. Eight shareholders own around 48% of Airea.
appScatter (APPS) is adding to its service that enables organisations to publish their apps on multiple stores and platforms by paying £13.5m in cash and shares for data analysis business Priori Data. This should provide a full service for clients. There are plans to raise £15m at 70p a share.
Denial of service online attacks prevention technology developer Corero Network Security (CNS) is still loss-making and it is raising £4m at 5.75p a share, as well as trying to secure a £3m debt facility. One year ago, Corero raised £5.6m at 5p a share.
FairFX (FFX) can issue Mastercard branded cards and is launching a commercial finance offer to business customers.
Mytrah Energy (MYT) has recommended a bid from majority shareholder Raksha Energy Holdings Ltd. Raksha is offering 45p a share in cash to mop up the 42.1% of the wind power producer it does not own. That is higher than the share price has been for 16 months but not much more than 50% of the level it was nearly three years ago. This bid values Mytrah at £78.9m.
Hornby (HRN) says sales improved towards the end of the financial year as European product was delivered. There was net cash of £4m at the end of March 2018 but management says that a larger debt facility is required for seasonal working capital requirements. Barclays will waive a covenant on the existing facility.
1Spatial (1SPA) has won a £1.6m deal with Land and Property Services in Northern Ireland. Most of this will be generated over the next five years. The geospatial data provider is expected to get near to breakeven in the year to January 2019.
Watkin Jones (WJG) says that first half trading is in line with expectations. Student accommodation developments continue to make the largest contribution with a pipeline of 9,800 beds. The build to rent development business has secured planning consents on three sites, covering 700 units. The management business has contracts to manage more than 14,000 beds, even though the sale by a client of student properties covering more than 5,000 beds meant that the new owner took on their management.
Ingredients supplier Treatt (TET) says that interim revenues are 11% higher this year, helped by new business wins. Current full year forecasts predict an increase in revenues from £109.6m to £117.3m so Treatt is well on its way to achieving that. A full year profit of £14.4m is forecast. There will be a small negative foreign exchange charge in the first half but the US tax charge will be lower than previously expected.
Bluebird Merchant Ventures (BMV) has completed the $500,000 farm-in spending on the Gubong mine and following the publication of a feasibility study the expenses will be shared 50/50 with Southern Gold.
Gowin New Energy Group Ltd (GWIN) is moving into the tea market, where its chief executive already has experience. Gowin intends to buy a 15% stake in a Cayman Islands-registered tea business and this new business will link up with experience of the industry that are based in Taiwan. The plan is to raise £5m from a preference share issue at 2p each, with an initial £2m raised, and use part of this cash as a loan to the new business. There will be a fixed annual preference dividend of 2%, while the loan will geerate 3% a year.
Walls & Futures REIT (WAFR) raised £1m when it joined the NEX Exchange Growth Market. There was £843,000 in the bank at the end of March 2017 and since then £475,000 has been spent on a building in Stroud that is being rented to a supported housing operator. The private rented housing portfolio, which is properties in the Wimbledon area, is worth £2.15m and the group NAV is £2.98m, equivalent to just over 90p a share. The focus is supported housing and there are plans to raise more cash from a placing and open offer in order to fund more property purchases.
Lombard Capital (LCAP) is close to finalising a 7.5% 2020 unsecured loan note series 2 issue to raise between £500,000 and £3m. This will be invested so that it provides a fixed income and capital return.
An impairment charge against the book value of the Royston Hill property meant that Etaireia (ETIP) lost £622,000 last year. The company expects to complete the purchase of properties at the Whitehouse Office Park having secured bridging finance. The current portfolio of properties should generate enough income to make the company profitable.
Block Energy (BLOK) has raised £250,000 at 0.85p a share and this cash will be used to finance the proposed move to AIM. Block has also issued 70 million shares to complete the acquisition of the 90% working interest in the Satskhenisi production sharing agreement in Gerogia. This means that Iskander Energy owns 13.3% of Block.
Healthcare recruitment company Positive Healthcare (DOC) reported revenues of £7.8m and a loss of £276,000 between November 2015 and March 2017. The two majority-owned subsidiaries were included for nine months.
Andrew Sparrow is replacing Malcolm Ball as chief executive of WMC Retail Partners (WELL). Crossword Cybersecurity (CCS) has appointed Rob Johnson, a former senior investment director at AIM-quoted Mercia Technologies, as chief operating officer.
Primorous Investments (PRIM) has made six investments in the past month and four of them are seeking to join AIM in 2018. Primorous has invested £400,000 in a £5.25m fundraising for software company Engage Technology Partners and £200,000 in online shopping and rewards firm WeShop. The other two potential AIM flotations are the investee companies Sport:80, where £100,000 was invested, and TruSpine Technologies, where £500,000 was invested to help TruSpine’s minimally invasive spine stabilisation devices to gain FDA clearance.
Doriemus (DOR) has filed a prospectus for an ASX listing. A 400-for-one share consolidation has been completed in advance of the listing. The new investing policy is focusing on oil and gas assets in Asia Pacific.
IT healthcare software and services provider EMIS (EMIS) reported a 1% increase in interim revenues to £79.2m even though the healthcare market is tough, particularly when it comes to hospital services. EMIS’s recurring revenues were 84% of the total. Profit was slightly lower. There could be a small fall in full year profit but the 10% increase in interim dividend to 12.9p a share indicates the strength of cash flow and the longer-term potential. Net cash was £10.5m at the end of June 2017. The newly created patient division is a growth area and the patient.info website is still being developed so that ecommerce revenues can be earned.
Digital TV software provider Mirada (MIRA) has secured a SaaS-based contract with ATN International and four of its cable networks in the Caribbean. In the past Mirada has been paid every time a viewer signs up for the service but this contract is based on recurring subscriber fees. There will still be an initial upfront payment for implementation services but the rest of the revenues will be generated on a monthly basis. Mirada is expected to release its 2016-17 annual report before the end of September so trading in the shares should not have to be suspended. Mirada will require additional working capital facilities and these are being negotiated.
MP Evans (MPE) is acquiring a 10,000 hectare estate in Indonesia for $108m, including the assumption of $20m of debt. This will be funded by the sale of the company’s minority stake in another estate. Infrastructure spending will cost a further $30m over five years. The estate is just starting to build up production and it will become more significant in a couple of years time. NAV is £11 a share and Peel Hunt expects this to rise by more than 5% a year as group production increases.
South America-focused gold miner Orosur Mining Inc (OMI) generated $9.7m from operations in the year to May 2017 thanks to lower operating costs and a higher gold price. There was net cash of $3m at the end of May 2017. Since the year end, Orosur has raised £3.2m at 14.7p a share and two new institutions invested in the placing. This will help to finance drilling at the Anza gold project in Colombia.
The administrator of Fairpoint Group (FRP) is selling off parts of the group but there is no chance that shareholders will get anything. Consumer claims business IVA Assurance is being sold for £450,000 plus cash balances on completion. Allixium, another consumer claims company, has been sold for £53,000. The original Debt Free Direct business has been sold to Aperture Debt Solutions for £1.34m but unlike the rest of the proceeds this cash will pay Debt Free Direct creditors rather than the creditors of the holding company. Legal subsidiary Simpson Millar has sold Simpson Millar Financial Services to its boss for £271,000 plus up to £250,000 over five years. This cash will go back into Simpson Millar.
Stockbroker Share (SHRE) will be paid £900,000 for work carried out relating to a potential partner that is not going ahead with a deal. Trading continues to be strong.
Pawnbroker and foreign currency services provider Ramsdens Holdings (RFX) says that its pre-tax profit will be higher than expected this year. This is thanks to strong foreign exchange trading results and a higher gold price.
Samuel Heath & Co (HSM) has appointed former Zeus Capital director Ross Andrews as a non-executive director.
Real Good Food (RGD) says that EBITDA will be half its previous, already downgraded, expectations at £1m. The company is in discussions with its bankers to change the conditions of its bank facility.
Educational services provider Wey Education (WEY) says revenues will increase from £1.5m to at least £2.4m and this will enable it to make a maiden pre-tax profit. There is still £909,000 in the bank. The figures for the year to August 2017 will be published in October. David Massie has taken his £33,000 annual salary in shares at 3.88p each.
Conroy Gold & Natural Resources (CGNR) has appointed Dr Karl Keegan and Brendan McMorrow as non-executive directors. Another general meeting has been requisitioned by Patrick O’Sullivan, who owns 28% of Conroy, and it will take place on 6 October. He had asked for assurances that new directors would not be appointed. The previous general meeting successfully removed six directors but Conroy said the proposed appointments of Patrick O’Sullivan, Paul Johnson and Gervaise Heddle did not comply with the company’s constitution and they are being proposed as directors again. A hearing will be held at the High Court in Dublin on 14 September and that could affect whether the three people are upheld as directors prior to the new general meeting. The plan is also to remove Professor Richard Conroy and Maureen Jones from the board.
Galileo Resources (GLR) has raised £1.09m at 2p a share to finance a joint venture with BMR Group (BMR) to develop the Star Zinc project in Lusaka, Zambia and also to finance exploration of the gold property in Nevada and the Glenover phosphate project in South Africa. Galileo had £1.1m in the bank at the end of March 2017. Galileo will lend $592,000 to BMR, which will be received once there is a settlement agreement with Bushbuck Resources for the acquisition of Star Zinc. This loan will eventually be swapped for 51% of the joint venture and $100,000 will be placed in escrow. Galileo can then increase that stake to 85% by funding $250,000 of work on the project.
Back office optimisation software provider eg solutions (EGS) has signed a five year master supply agreement that will be worth at least £8.12m. This will kick-in next year and increases the order book of recurring revenues to £22.9m. In the year to July 2017 revenues were at least £10.5m.
Cyber security software provider Defenx (DFX) has raised £1.25m from a convertible bond issue to add to the £1.74m raised from a share issue at 160p each. Defenx was trying to raise up to £2m via a bond auction carried out by UK Bond Network.
Robin Williams has taken over as chairman of FIH Group (FIH) and the company continues to seek acquisitions. There was £15.25m in the bank at the end of August 2017. Trading is expected to be flat this year with modest growth in the UK but quiet trading in the Falkland Islands with additional retail competition. The low oil price is too low to prompt development of oilfields around the islands.
Trading technology provider TechFinancials Inc (TECH) reported a dip in interim revenues from $9.86m to $6.97m mainly due to lower software licencing income. Pre-tax profit fell from $1.33m to $282,000. There was cash of $5.81m in bank at the end of June 2017.
BATM Advanced Communications (BVC) is beginning to reap the benefits from past investment and the second half should show even more progress. Revenues have started to grow even though the corresponding first half included more significant sales of older networking products. Overall group interim revenues were 10% ahead at $49.8m with both divisions increasing their revenues. There was a 17% increase in R&D spending to $4m. There was an interim loss but Shore Capital still believes that BATM can break even this year.
Ross Group (RGP) continues to seek an acquisition that would provide a more significant business for the company. In the six months to June 2017, revenues grew 51% to £93,000, while the pre-tax profit was one-fifth higher at £17,000. The balance sheet is weak with net debt of £6m but the major shareholder is supportive. That level of debt might put off some potential acquisition targets.
Standard list shell Stranger Holdings (STHP) has signed non-binding heads of terms with Irish sustainable utility company Alchemy Utilities. This acquisition would be a reverse takeover. Alchemy is involved in waste to gas production, renewable energy and using waste energy to remove salt from water to produce drinking water (www.alchemyutilities.ie). Trading in the shares was suspended at 1.38p.
Standard list shell Derriston Capital (DERR) had £2.2m left in the bank at the end of June 2017. Derriston has changed its investing strategy from a focus on medtech to technology and high growth sectors.
National Milk Records (NMRP) is raising £7.33m at 65p a share in order to help finance the withdrawal from the Milk Pension Fund. Like Genus, National Milk Records was part of the Milk Marketing Board and that is why it has part responsibility for the Milk Pension Fund. There will be a one-off contribution of £10.1m to the fund and £4.68m will be paid in cash and shares to Genus. National Milk Records is also selling its loss-making generic products reseller Inimex to Genus for a nominal amount and entering a collaboration agreement with the animal genetics company. There would be a requirement to finance the fund up until 2076 if the deal does not go ahead. A New Zealand-based farmer cooperative and Singapore-based fund manager Working Capital Management are among the investors subscribing for the shares.
Contemporary art collector and workspace provider V22 (V22O) moved into profit in 2016. The £1m profit was helped by a £225,000 gain on the sale of half of the option to acquire part of the freehold of its Peckham building and a £225,000 notional gain on the remaining option. There was also other operating income of £621,000. Stripping these items out, there would have been a slightly higher loss. Revenues grew from £822,000 to £1.24m. There was £64,000 in the bank at the end of 2016. NAV, including a valuation of the art portfolio, is 7.31p a share. Demand for studio space is strong at a time when it is become less affordable. This puts V22 in a strong position. V22 has agreed a ten year lease on premises in Shoreditch and is the preferred bidder for a 125 year lease on The Priory in Orpington.
Blockchain-focused investment company Coinsilium Group Ltd (COIN) has raised £250,000 at 2.2p a share to finance further investments. In 2016, Coinsilium increased revenues from £12,000 to £209,000. There was a total loss of £738,000, including a £317,000 loss on disposals and investment impairments of £160,000 – admittedly down from £1.31m the previous year. The NAV was £1.43m at the end of 2016.
Kryptonite 1 (KR1) is also seeking blockchain investments. This includes subscribing for shares in Satoshipay. It has also invested in five initial token offerings and three of them are already being traded and have performed well.
London Nusantara Plantations (PALM) is selling its stake in Next Oasis for £124,000. This was in the 2016 balance sheet at a valuation of £112,000 and the proceeds will boost the 2016 cash pile from £83,000. London Nusantara has been quoted for three years and it is still seeking to acquire plantation assets and it has widened its geographic search to Indonesia, as well as considering the palm oil mill sector and generating income from oil palm waste.
Early Equity (EEQP) has signed a memorandum of understanding with Malaysian multi-level marketing business Early Infinity, which has a distribution agreement with healthcare products supplier Yicom, where Early Equity owns 32.1%. The plan is for Early Equity to buy up to 30% of Early Infinity. Trading in Early Equity shares has been suspended.
Ganapati (GANP) has obtained a class 4 gaming licence in Malta and this should widen the potential market for its games. A tech office has been set up in Romania.
Halal services provider DagangHalal (DGHL) has raised £3.1m at 26.5p a share and this will leave managing director Francis Chong with a 29.9% stake. Revenues fell last year and there were significant asset write downs.
Middle East-focused investment company Indigo Holdings (INGO) had £906,000 in the bank at the end of 2016 and it raised £818,000 in February. Around £650,000 of that cash has been invested in three companies.
Restructuring and slow LED product sales meant that Gowin New Energy Group Ltd (GWIN) reported a slump in revenues from RMB652,000 to RMB28,000, while the loss was RMB6.94m. There is RMB2.08m of cash in the bank but there is more than that figure in shareholder loans because of the significant cash outflow during the year.
MiLOC Group Ltd (ML.P) increased its revenues from HK$8.31m to HK$10.9m in 2016 and the loss fell from HK$17.1m to HK$11.5m. The company’s clinics and traditional Chinese medicines generate the revenues and the TCM PLUS skincare products are expected to make a substantial contribution in the future. Last year, there was a large one-off cost relating to TCM PLUS. A hair care range is planned.
Equatorial Mining & Exploration (EM.P) intends to apply for a small scale mining lease for a coal mining prospect in Nigeria. Equatorial lost £1.55m in 2016 but £1.24m of this was a non-cash share-based payment charge. The cash outflow from operations was £383,000. Brett Clark has stepped down from the board following the failure to secure the acquisition of a Mexican gold project.
Healthcare staff provider Healthperm Resourcing Ltd (HPR) reported a £3.1m loss on revenues of £2,000 for 2016 but the business should generate more significant revenues this year. Steve Howson has become chief executive, while the former incumbent David Sumner became non-executive co-chairman. Two groups of overseas recruits have started work in the UK.
Ecovista (EVTP) has raised £470,000 via an issue of convertible loan notes. The conversion price is 0.05p a share. Any loan notes not converted will be repayable on 30 May 2018. Ace Liberty and Stone (ALSP) has raised £64,500 from a placing at 75p a share with most of the shares bought by Bijan Daneshmand, thereby taking his stake to 5.16%.
NQ Minerals (NQMI) lost £2.39m in 2016 but this was before the acquisition of the Hellyer gold mine in Tasmania. The main asset of All Star Minerals (ASMO) is its stake in NQ Minerals. This stake was valued at £414,000 at the end of 2016. The 2016 loss was £187,000, including a £28,000 write down in the NQ Minerals stake.
Touchstone Innovations (IVO), the former Imperial Innovations, has rejected the bid from rival University-focused technology businesses developer IP Group. The initial approach was made in April and some major shareholders were keen to pursue the merger. The main problems concerned valuation and corporate governance.
It does not appear that Tanfield Group (TAN) is going to be able to sell its 49% stake in access platforms manufacturer Snorkel in the near future because it continues to lose money. The value of the stake in the books is £36.3m – equivalent to 23.2p a share. This value can be achieved if Snorkel makes an annualised trailing EBITDA of $25m in any 12 month period up until September 2018. However, Snorkel is losing money and after September 2018 there is no fixed amount that Tanfield would receive if it sold its stake. Jon Pither has stepped down from the Tanfield board.
Acoustic insulation manufacturer Autins Group (AUTG) has appointed Michael Jennings as chief executive. He has been interim chief executive since February. Interim figures will be published on 13 June.
Draganfly Investments (DRG) has appointed mining engineer Luke Bryan as executive chairman. Edward Bayman will step down as chairman but continue on the board.
Hostels operator Safestay (SSTY) is planning to buy three hostels from Equity Point. The hostels are in Barcelona, Prague and Lisbon and they generate revenues of €1.6m. Safestay is loaning €3.6m to Equity Point and the plan is to swap the hostels for this debt.
Stanley Gibbons Ltd (SGI) has sold its 25% stake in Masterpiece London for £1.4m. The stake was valued in the books at £6,000. This is part of the strategy to focus on stamps and coins.
A general meeting has been requisitioned at Magnolia Petroleum (MAGP) in order to make changes to the board. At the end of May, Nostra Terra Oil & Gas (NTOG) acquired a 10.9% stake in Magnolia from former chief executive Steven Snead but the requisitioner has not been named.
Adams (ADA) has launched an underwritten one-for-one open offer to raise £1.03m at 2.5p a share. The investment focus is the technology and life sciences sectors. Richard Griffiths, who owns 29.9% of Adams, is underwriting the open offer. The announcement says that Adams has four AIM-quoted investments but only one of the companies mentioned, Oxford Pharmascience, is on AIM the others are fully listed.
TLA Worldwide (TLA), which published a profit warning at 6.26pm on 23 December 2016, thinks that it will be able to report its 2016 figures on 30 June. It will need to do this or trading in the shares will be suspended. TLA has warned that it will have to write-off some of the money owed to it.
Pembridge Resources (PERE) plans to move from AIM to the more lightly regulated standard listing. This will enable it to be more flexible in what it invests in and the level of stakes that it acquires. The main hurdle for a standard listing is getting the prospectus approved by the UKLA. Once that is done companies do not have the level of regulation they would if they were on AIM.
Second half trading has been strong for car manuals publisher Haynes Publishing (HYNS). Pre-tax profit is expected to be two-fifths higher than last year. Haynes has benefited from lowering its costs and positive exchange rate movements. The new Haynes OnDemand video service will be launched this year but there will be a write down of the costs of the previous platform in the 2016-17 figures. The full year figures will be published on 13 September.
Telecoms services provider Toople (TOOP) is trying to raise up to £2m because it is running short of cash. Members of the PrimaryBid crowdfunding platform have been offered the chance to subscribe for shares at 2p each. A minimum of £1m needs to be raised. Even if the maximum is raised then the cash is unlikely to last long unless the cash outflow is stemmed in the near future.
Acorn Growth has changed its name to Vordere (VOR). This follows the proposed acquisition of German properties, which will be paid for by a share issue at 17p each. The shell company was originally known as Acorn Minerals when it joined the standard list at a placing price of 20p a share in October 2012.
Capital for Colleagues (CFCP) has invested £770,000 in employee owned businesses in the six months to February 2016. Interim revenues grew from £257,000 to £364,000 but admin costs increased significantly so, excluding unrealised gains, the pre-tax profit dipped from £41,000 to £34,000. Unrealised gains slumped from £47,000 to £6,000. At 62.5p (60p/65p) a share, Capital for Colleagues is valued at £6m. The net asset value was £4.2m at the end of February 2016 and £1.15m has been raised since then. There are still plenty of opportunities for new investments as well as additional investment in existing investee companies.
Blockchain technology investor Coinsilium Group Ltd (COIN) reported a loss of £2.42m in the first 15 months of its existence to December 2015. That includes an investment impairment of £1.31m for an investment in Hive Labs. The investments are all early-stage so it will take time for them to bear fruit. More recently the company has branched out into providing training. The NAV was £2.33m at the end of 2015. At 4.1p (3.6p/4.6p) a share, Coinsilium is valued at £2.9m. There were seven trades in Coinsilium shares last week at prices between 3.2p and 4.25p. Five of these trades were the day before the results were announced. The most recent trade was 100,000 shares at 3.2p each. Coinsillium is one of the more frequently traded ISDX companies and there were seven trades in the previous week.
Contemporary art collector and trader V22 (V22O) says an independent valuation of its collection at the end of 2015 said that it was worth £1.67m, which is triple the amount invested in the collection. V22 also has a property portfolio and in May it paid £250,000 for a 125 year licence on a Grade II listed building in Forest Hill, which will provide exhibition and event space. In 2015, revenues grew from £568,000 to £822,000 and the loss declined from £78,000 to £34,000. Since then, V22 has raised £225,000 from selling half of its option interest in a company that owns the freehold to a building in South Bermondsey. V2 has already received £150,000 with £75,000 payable by the end of June. V22 retains an option over 15% of the holding company that owns the building. At 0.9p (0.85p/0.95p) a share, V22 is valued at £300,000. The NAV including the valuation of the art portfolio is 4.49p a share.
Cairn has resigned as the corporate adviser to Nordic Energy (NORP), whose shares are already suspended because it is unable to bring out its interim figures within the required time. At the end of 2015, Nordic relinquished its Danish oil and gas exploration licence because it was unable to fund the required work programme. Nordic had £42,551 in the bank at the end of May 2015. Former director Rudolf Kleiber has been awarded £14,210 for unfair dismissal and disability discrimination.
Carbon credits adviser China CDM Exchange Centre Ltd (CCEP) reported flat revenues of £1m in 2015 but profit dipped from £29,000 to £6,000. There was a cash inflow of £575,000, taking cash in the bank to £1.59m. The NAV is £46.1m, which is mainly based on carbon-related investments. At 0.25p (0.2p/0.3p) a share, China CDM is valued at £300,000, which is a large discount to the cash pile. There was a small trade of 936 shares at 0.2p each the day after the results were announced.
China-based LED products supplier Gowin New Energy Group Ltd (GWIN) reported a large loss for 2015 because of write-offs relating to the termination of contracts with its former manufacturing partner. The plan is to keep design and sales in-house but outsource production. There may also be opportunities for joint production development with other companies. This will reduce the company’s working capital requirements. There was cash of RMB1.3m in the bank at the end of 2015 but there are also shareholder loans of RMB12.6m.
Diversified Gas & Oil (DOIL) has raised a further £420,000, which is part of the additional £3.5m it wants to raise from the issue of 8.5% unsecured bonds. In 2015, revenues fell from $7.36m to $6.3m due to the lower oil price and there was a cash outflow from operations of $3.93m. The company continues to acquire oil and gas assets.
Constellation Software Inc has made a bid approach to Bond International Software (BDI) following the ending of a standstill agreement late last year. The potential offer price is 105p a share and Bond is still considering its options. Last month, Bond sold Strictly Education for £11.3m – £7m paid immediately and £4.3m to be paid within six months. The cash will be used to pay off borrowings, which were £5.9m. Bond had cash in the bank so this will have gone up following the transaction and there were plans to distribute some of the cash to shareholders. It was after this disposal was announced that Constellation converted non-voting shares and this gave it 29.9% of Bond. Constellation appears to have made the bid approach at this time so that it can retain the cash.
Air filtration and clean air equipment supplier MayAir (MAYA) has secured new contracts worth a total of $22.8m. The majority of this work will come from the installation of clean room equipment for two customers. There is also a contract to supply air filtration equipment for office buildings. The majority of these revenues will be generated this year. This is good news because a large contract was coming to an end. In 2015, MayAir’s revenues were $63.6m. Former broker Mirabaud forecast 2016 revenues of $75.5m. Cantor Fitzgerald has been appointed broker to the company.
Life sciences software provider Instem (INS) has acquired regulatory information management systems supplier Samarind for up to £2.5m and this has led to a profit upgrade. House broker N+1 Singer has increased its 2016 earnings per share forecast by 5% to 10.4p and the 2017 figure by 14% to 13p. Samarind adds post-marketing services to Instem’s existing regulatory reporting software. Two-thirds of Samarind’s revenues of £1.2m are recurring and most of the customer base is new to Instem.
Daily Internet (DAIP) moved into profit in the year to March 2016. Revenues grew by 22% to £4.76m and a loss of £140,000 was turned into a profit of £250,000. The managed hosting and internet services provider has been reducing its cost base and the benefits are yet to show through. There was £650,000 generated from operating activities and net cash was £206,000, although there is still potential contingent consideration of £435,000.
Building services provider Northern Bear (NTBR) says its net debt fell in the year to March 2016 and it intends to increase its dividend. Last year, net debt was £4.5m and the dividend was 1.5p a share, which was well covered by earnings of 8.5p a share. Earnings are set to be flat this year despite problematic weather conditions but the increased dividend should still be well covered. Reduced finance costs offset the effect of lower revenues.
Kefi Minerals (KEFI) says that it has reduced the funding requirements for the Tulu Kapi gold project from $145m to $130m following further refinements to the project and reductions in interest costs. At a gold price of $1,250/ounce, Kefi expects to generate $173m of cash in the first three years of production. All-in sustaining costs are $746/ounce. This is based on contract open pit mining and total production of 980,000 ounces of gold over ten years.
Specialist electronics supplier Acal (ACL) reported underlying revenue growth of 3% in the year to March 2016. Including acquisitions, revenues rose from £271.1m to £297.2m – it would have been higher at constant exchange rates – and improved margins meant that pre-tax profit jumped from £11.8m to £14.4m. Trading conditions are not easy and this is likely to continue to be true for the rest of the first half although an improvement is expected later in the year.
Investment company Western Selection (WESP) reinvested part of the proceeds of its disposal of shares in marketing services firm Creston in gas maintenance services provider Bilby last July and it is already showing a significant gain. This helped offset a further decline in the value of the stake in Northbridge Investment Services. Net cash was £1.09m at the end of 2015. An unchanged interim dividend of 1.05p a share was declared. The NAV was 80p a share at the end of 2015, up from 75p a share six months earlier. The current share price is 47.5p (45p/50p) a share.
National Milk Records (NMRP) says that the move from the retail price index to the consumer price index for the calculation of inflation-related adjustments for the Milk Pension Fund should significantly reduce the overall deficit of the fund. More details will be announced with the results for the year to March 2016. The share price rose 5p to 78.5p (77p/80p). The pension liability was £8.4m at the end of September 2015.
Sutherland Health Group (SHGP) has decided to withdraw from ISDX, pending shareholder approval. Sutherland has been quoted on ISDX for eleven years and in recent years it has been hit by declining turnover. Leaving ISDX will help to reduce costs. Sutherland may seek to obtain a matched bargains quotation. The share price has already fallen significantly but it was unmoved following the withdrawal announcement. The market capitalisation is £700,000.
LED lighting supplier Gowin New Energy Group Ltd (GWIN) claims to have raised £400,000 at 0.2p a share but this is below the nominal value of 1p a share so it appears strange. The new shares equate to more than one-quarter of the enlarged share capital. The market price is 0.45p (0.35p/0.55p).
Ace Liberty & Stone (ALSP) raised the full amount of £3.5m from its open offer at 1p a share. This offer was at a significant discount to the market price. Shareholders applied for 439.6 million shares when there were 350 million offered. The share price rose to 4p (3p/5p) a share after the announcement. The cash will help to build up the property portfolio.
Solid State (SOLI) has lost its high profile Ministry of Justice tagging contract and the share price has fallen by one-third. Technical problems delayed the launch of the new tags and little was expected from the contract in the short-term but this is an embarrassment for the company. Solid State is in discussions on the terms of the termination of the contract. The underlying business and attractive yield should underpin the current share price level.
Disinfection and infection control products supplier Tristel (TSTL) reported slightly better than expected interim figures. The £4.3m cash pile and cash generative nature of the business provides scope for further special dividends in the future. The interim dividend was raised by 95% to 1.14p a share. In the six months to December 2015, underlying pre-tax profit rose from £1.1m to £1.5m as revenues edged up even though sales of lower margin products declined. International growth offset weakness in the UK. Four directors including the chief executive and finance director bought shares after the results announcement. Higher R&D spending will hold back profit growth with flat earnings per share of 5.2p expected this year rising to 5.6p next year.
Nostra Terra Oil & Gas (NTOG) has acquired a 60% working interest in producing assets in the Permian Basin, which straddles Texas and New Mexico, for $3m plus $300,000 in 12 months. Average production was 122 bopd gross – 92 bopd net – during last November and there are plenty of opportunities to increase this. Net proven reserves are 2.7 million boe. In the year to July 2015, the assets made a pre-tax profit of $250,000 on revenues of $1.8m.
CCTV and security systems supplier Synectics (SNX) returned to profit last year. In the year to November 2015, revenues were 6% higher at £68.5m and an underlying loss of £2.38m was turned into a profit of £1.55m. That was before further restructuring costs. The main reason behind the improvement was a swing from loss to profit of the integration and managed services division. The systems division increased its profit contribution despite exposure to the oil and gas sector. Costs have been reduced and the company has moved into a net cash position. The outlook is positive with new orders won in recent months, particularly in gaming. An operating margin of 8%-10% is an achievable longer-term target according to management.
Sunny Hill Ltd has launched a 3p a share cash bid for oil and gas explorer Petroceltic International (PCI). This values the Irish company at £6.42m. The bidder is owned by the Worldview Economic Recovery Fund and it is offering a significant discount to the previous market price because it believes that Petroceltic is in a precarious financial position. Net debt was $184m at the end of June 2015 and payments on the senior bank facility have been waived up until 4 March. This waiver may be extended. Worldview already owns 29.6% of Petroceltic and it has been in dispute with the board for some time.
Immunotherapy technology developer Oxford BioMedica (OXB) has raised £8.1m at 6.3p a share. There was £9.4m in the bank at the end of 2015 although net debt was £17.9m. The cash is required for working capital for the development of treatments and the lentiviral vector manufacturing-related technology, where there are already out-licensing talks. The OXB-102 Parkinson’s disease treatment and corneal graft rejection treatment OXB-202 are set to start phase I/II clinical studies in the next 12 months.
Packaging and labels supplier Macfarlane Group (MACF) increased its pre-tax profit by one-fifth to £6.8m in 2015, helped by recent acquisitions. Revenues were 10% ahead at £169.1m and the dividend was also increased by 10% to 1.82p a share. Glasgow-based Macfarlane generated all of its revenue growth from its core packaging distribution division but profit growth came from both parts of the business. The manufacturing division improved its gross margin because there were higher sales of products with better margins. The market remains stable.