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Quoted Micro 25 September 2023
AQUIS STOCK EXCHANGE
Aquis Stock Exchange owner Aquis Exchange (AQX) reported interims showing growth in all four divisions of the group and the Aquis Stock Exchange remains profitable. Group revenues improved from £7.85m to £9.34m, while pre-tax profit rose from £699,000 to £1.15m. Net cash is £13.9m.
Brewer Adnams (ADB) says trading improved in the second quarter and cost savings started to kick in. This partly offset the decline in revenues in the first quarter, but the interim revenues were still slightly lower at £30m. Operating costs and interest charges increased, and the loss trebled to £3.13m. Adnams is taking on new customers, but the average order size has reduced. Trading conditions are uncertain, but the new customer sand listings will help to boost the second half.
Africa-focused battery metals company Marula Mining (MARU) is considering moving to the standard list as an alternative to AIM. Management believes that this would not add any additional time to the process, and it believes that the proposed investment by Q Global Commodities will make Marula Mining large enough to be eligible for the standard list. It is also planning listings on the Nairobi Securities Exchange and the Johannesburg Stock Exchange. Warrants exercised at 4p/share raised £50,000. A shipment of 27.5 tonne high-grade material processed from stockpiles at the Blesberg lithium and tantalum mine in South Africa has been delayed. The offtake agreement with Southern Jade Resources has been terminated and an alternative agreement is being finalised. Additional drilling at Blesberg is progressing and initial assay results should be published in late October.
Apollon Formularies (APOL) has executed a binding letter of intent with Sproutly Canada Inc, who will acquire the assets of the cannabis-based drug discovery company. After completion of due diligence, the assets will be acquired in return for shares equivalent to 49% of Sproutly. The effective valuation is C$7m (£4.2m). Sproutly has to go through audits and other regulatory requirements to become active and trading on the Canadian Stock Exchange.
Fuel additives SulNOx Group (SNOX) says it requires new equity investment from existing and new investors in order to achieve faster and sustainable revenue growth. There would additional industry hires for the board and sales personnel. There will also be increases in stock levels and new products will be developed. The board is seeking shareholder authority to issue new shares. Mohanned Nawaz Haq does not agree with the new strategy and the board recommends voting against his appointment at the AGM on 26 September.
Newbury Racecourse (NYR) improved interim turnover by 3% to £8.03m, but the company fell into loss because gross margins slumped. The nursery increased its contribution, but there were lower attendances at races. An event in July had the highest attendance for four years. Next year will get the full benefits of the media rights deal.
Broker and wealth management company Oberon Investments (OBE) has raised £2.5m via a placing at 3.6p/share and a retail offer could raise a further £500,000. The share price dipped 2.78% to 3.5p. The cash will fund expansion, including the recruitment of revenue generating teams. The Winterflood Retail Access Platform offer has a minimum subscription of £50. Investors can apply for shares via their broker or intermediary and the closing date is 4.30pm on 25 September.
Silverwood Brands (SLWD) has been given an extension of the time to deliver its defence to the legal action by Lush and VSA resigning as corporate adviser and being replaced by Peterhouse. Lush is refusing to recognise the transfer of a 20% stake to Silverwood Brands. VSA Capital (VSA) owns 0.88% of Silverwood Brands and says that the share price slump will hit its interim results to September 2023. It will make the loss larger than expected.
Property investor Ace Liberty and Stone (ALSP) increased net assets by 1% to £34.4m at the end of April 2023. Disposals meant that full year revenues fell 2.5% to £5.56m. There is £6.23m in cash available for investment. No final dividend is declared, partly due to the lack of distributable reserves.
Cadence Minerals (KDNC) investee company Evergreen Lithium has completed the final analysis of its EXOSPHERE BY FLEET Ambient Noise Tomography geophysics survey at Bynoe. Nine pegmatite targets have been identified. Approvals are required for drilling.
Watchstone Group (WTG) had net assets of £7.6m at the end of June 2023, including cash of £8.3m. By 19 September, cash had fallen to £7.6m. The claim against PwC was dismissed by the High Court and Watchstone had to settle legal costs. Canadian legal action continues.
Helium Ventures (HEV) has raised £250,000 at 4p/share. There are plans to move to AIM rather than the standard list, while maintaining the Aquis quotation. It hopes to do this by the end of this year. The potential acquisition of tracking technology company Trackimo is progressing, and Mark Notton has been appointed as its chief executive.
MBH Corporation (M8H) has acquired caravan and motorhome retailers Lincoln Leisure Vehicles and Golden Castle Caravans for an initial £400,000 in cash and £2.58m in loan notes. There will also be share issues totalling £2.24m over the next two years. The companies made an operating profit of £660,000 last year. These businesses will be integrated with the existing caravan and motorhomes operations.
Pharma C investments (PCIL) says that the general meeting scheduled for 27 September will not go ahead because the requisition has been withdrawn. The proposals were to remove Gavin Hilary Sathianathan and appoint Paul Ryan and Noel Lyons to the board.
Medical device developer TruSpine Technologies (TSP) has appointed Victoria Sena and Samuel Ogunsalu to the board. The company is not appealing the disciplinary notice from the Aquis Stock Exchange and the new appointments will improve corporate governance.
SuperSeed Capital (WWW) says that the SuperSeed II LP has sold Garvis, a SaaS company offering language model technology and AI-native demand forecasting. The original investment was in September last year. There was a triple digit IRR on the investment.
Lift Global Ventures (LFT) subsidiary Miriad has been appointed as corporate communications agency to Imperial Diagnostix Laboratories, which plans to float next year. Imperial Diagnostix Laboratories provides point of care testing products and has been granted access to the NHS supply chain.
Wishbone Gold (WSBN) says drilling has started at the Red Setter project in Western Australia. Initial targets are at a shallow depth and the company is seeking broad spreads of mineralisation. Drilling at the Cottesloe prospect reinforces previous findings. Additional drilling will be 50% funded by the Western Australian government’s EIS scheme up to a total of A$220,000.
Invinity Energy Systems (IES) says that Canadian company Elemental Energy has commenced operation of the company’s 8.4MWh Invinity VS3 vanadium flow battery. This is the largest operation so far.
Majestic Corporation (MCJ) reported flat revenues of $13m, while pre-tax profit dipped from $980,000 to $862,000. There was $680,000 generated from operating activities. The metals recycler has $1m in the bank. Rising interest rates have had a negative impact on commodity prices.
EPE Special Opportunities (EO.P) directors and the managing partner of EPIC Investment Partners bought a total of 16,837 shares at 160p each.
Kasei Holdings (KASH) has switched its corporate adviser to VSA.
AIM
International retailer Mothercare (LON: MTC) reported a decline in full year revenues from £82.5m to £73.1m. A fall in admin expenses and interest costs, partly offset this decline, but underlying pre-tax profit still slumped from £8m to £3.4m before restructuring costs. The lack of contribution from Russia was a factor in the lower revenues – this is part of the Alshaya franchise area. Middle East demand remains subdued since Covid. Net debt rose from £9.9m to £12.4m. The loan facility is being renegotiated. The current interest rate is 19.2%. Since the year end, a reduction in pension contributions has been agreed. In the ten years to March 2033 the total contributions will be £34.9m, down from £73.7m in the previous ten years. The revaluation of the pension fund shows a deficit of £35m.
Finsbury Food (FIF) is recommending a 110p/share bid by a company backed by DBAY Advisors valuing the cake maker at £143.4m. There is a non-voting share alternative to the cash bid for eligible investors. The bid is less than ten times prospective earnings. The share price has not been at this level since early 2019.
Renewable electricity supplier Good Energy (GOOD) had a strong first half due to higher tariffs and lower supply costs, but the second half will be tougher. Interim revenues were 46% ahead at £156.1m and the company swung from a loss to a pre-tax profit of £13.1m. The energy services business is losing money as it is being built up. The interim dividend has been raised by one-third to 1p/share. Tariff reductions are happening ahead of falls in supply costs for the company and that will lead to a second half loss, but Good Energy will still be profitable for the full year.
Orcadian Energy (ORCA) announced that it has entered non-binding heads of agreement with a North Sea operator to farm out the Pilot project for a full carry until first oil. Orcadian Energy would retain a 18.75% working interest. The agreement includes the drilling of five subsea wells. Orcadian Energy will receive $100,000 when the agreement is completed, plus $100,000 if it is awarded an additional licence. Field development plan approval would trigger a payment of $3m.
Trading has deteriorated since August at replacement windows supplier Safestyle (SFE) and it is expected to lose £10m in 2023. Order levels are falling short of budget. Net debt could reach £6m at the end of 2023 – the credit facility is £7.5m. Management wants to strengthen the balance sheet.
Harvest Minerals (HMI) reported interims showing a near-doubled loss as demand for fertiliser fell and pricing was lower in the period. The second half sales are normally much greater than in the first half, but they continue to be disappointing. Low crop prices mean that farmers are not investing to boost production. Cash has declined and the company has moved into net debt of £1.4m, partly due to a jump in inventories.
Eqtec (EQT) announced that the Billingham waste-to-energy project is not going ahead. Potential customers have closed facilities and the project is behind schedule. So far, £4m has been invested. There is a possibility of getting some of this cash back. Eqtec is also taking legal action against its partner in the Deeside project, seeking repayment of £4m of loans. The focus is other European markets. Forecast 2023 revenues have been slashed by more than three-quarters.
Scancell (SCLP) reports that early data from the phase II SCOPE study of SCIB1 in combination with checkpoint inhibitors as a treatment for advanced melanoma are positive. Tumour reduction at 13 weeks is 31-94%. This is for a relatively small number of patients, but it does indicate that there is strong potential for the treatment. The second stage of the study has a strong probability of success. This data will be available in the first half of 2024. Potential partners are likely to be interested.
Firering Strategic Minerals (FRG) raised £756,000 at 6.5p/share. This cash will be used to define identified pegmatite targets through a drilling campaign at the Atex lithium-tantalum project in Cote d’Ivoire. Firering Strategic Minerals holds 90% of the company that owns the Atex project. Firering Strategic Minerals also owns 75% of Bri Coltan, which owns the coltan rights for the Atex area. Coltan is composed of tantalum, niobium, iron and manganese. Nine target areas have been identified, including the six newer ones. The latest drilling is planned for the fourth quarter of 2023.
Alien Metals (UFO) says the latest drilling results from the 90% owned Hancock Iron Ore project in Western Australia indicate the potential for the project. There is high-grade mineralisation. The resource estimate will be upgraded.
Digital coupons and loyalty technology provider Eagle Eye (EYE) reported organic growth of 29% last year. International revenues grew strongly as new retailers were added to the service and when they sign up retailers tend to stay with the company. This year, pre-tax profit could improve from £4.3m to £6.2m. The cash pile reached £9.3m at the end of June 2023.
Cosmetics supplier Warpaint London (W7L) is bucking the trend of the consumer sector, where many other companies selling to the public are performing poorly. That is down to the fact that Warpaint London is in the value end of the cosmetics market. It is also adding retailers and benefiting from the international spread of the business. UK interim revenues were 28% ahead, while group revenues were 46% higher.
Structural steel supplier Billington (BILN) significantly improved margins in the first half and it still has a strong order book despite the contraction of the construction sector. This reflects the broad spread of projects being supplied. Revenues were 30% higher at £60.1m and pre-tax profit jumped from £1.3m to £4.59m.
There is not going to be a bid for Kinovo (KINO), which was not going to recommend the 56p/share offer and there was no increase tabled.
MAIN MARKET
Motor dealer Pendragon (PDG) plans to sell its entire core business to North American automotive retailer Lithia Motors for £250m. This would turn Pendragon into a software business and there could be a £240m payout to shareholders, equivalent to 16.5p/share. Lithia Motors would also subscribe £30m for 279.4 million shares and will roll out Pendragon’s Pinewood dealer management software to its existing 50 UK sites. However, there has been a bid approach for the whole company from Sweden-based Hedin Mobile and US transportation company PAG International. The initial 28p/share offer was turned down, but a higher bid of 32p/share is being considered.
First Tin (1SN) still has cash of £7.9m and that is enough to fund the DFS for the Taronga tin project in Australia. The cost of the project could be reduced by using solar power and more efficient processing. The mineral resource estimate has been increased by more than 240% to 133 million tonnes. The Tellerhauser project in Germany hopes to gain a mine permit in the third quarter of 2024.
Shipbroker Braemar (BMS) has reaffirmed that it will make an underlying pre-tax profit of at least £20m for the delayed results for the year to February 2023. The investigation into transactions between 2006 and 2013 is nearing completion. There may be adjustments to previous accounts.
Andrew Hore
Quoted Micro 18 September 2023
AQUIS STOCK EXCHANGE
An update on the Amapa iron ore project in Brazil from Cadence Minerals (LON: KDNC) says permitting times for the mine and related logistics should be reduced to 12-16 months. An environmental control plan is required to obtain the permits. This will enable a funding decision for the project. Investee company Hastings Technology Metals has expanded its offtake agreement with thyssenkrupp Materials Trading, which will take two-thirds of production from the Yangibana rare earths project.
Invinity Energy Systems (IES) has converted an existing order from Taiwan to its next generation Mistral flow battery. This is a higher margin product targeted at large wind and solar applications. Management is securing additional production capacity with Taiwan partner Everdura.
EPE Special Opportunities (ESO) had net assets of 308p/share at the end of July 2023. Investee company Rayware’s sales have been hit by weak consumer demand. Pharmacy2U continues to grow. Two investments have been sold. Ther was cash of £16.3m at the end of July 2023.
Financial services company Eight Capital Partners (ECP) says its 2021 figures have been restated because of a change in the accounting treatment of the bonds. Non-cash transactions have been removed from the cash flow statement. The book value of the bonds has been changed to fair value and a modified loss recognised on loan liabilities. Net liabilities were £11.4m. The 2022 results show net assets of £25.3m after a debt conversion to equity. A partial reversal of previous fair value adjustments also helped.
Coinsilium Group Ltd (COIN) is providing a convertible loan of $50,000 and has a 12-month option to subscribe for $500,000 for shares in Silta at a pre-money valuation of $7.5m. This means that it could end up with 6.7% of Silta. Last year, Coinsilium entered into an early contribution agreement to buy $75,000 of SILTA tokens. Silta is developing an advanced AI platform for sustainable infrastructure financing.
Hydro Hotel, Eastbourne (HYDP) is paying an interim dividend of 12p/share.
Rod Weinberg has reduced his stake in SulNOx Group (SNOX) from 6.35% to 2.49%. Macaulay Capital (MCAP) managing director David Horner has bought 200,000 shares at 22.5p each. Nigel Pope has taken a 3% stake in NFT Investments (NFT). Gathoni Muchai Investments has trimmed its stake in Marula Mining (MARU) from 12.2% to 11.26%. A warrants subscription at 4p each raised £30,500.
Black Sea Property (BSP) has raised €4.44m from a loan note issue, which is being used to pay for the recent acquisition of a majority stake in Grand Hotel Varna, which owns three hotels and a beach marina resort, plus a mutual fund portfolio. There is still €15.5m to pay.
AIM
Parcel delivery and logistics company DX (DX.) has received a bid approach from private equity firm HIG European Capital Partners. Gatemore Capital Management, which owns 16.8%, says it is willing to support the proposal of 48.5p/share. Management had rejected lower bids, but it would be minded to recommend this one. Due diligence will be required.
Online gaming firm Gaming Realms (GMR) reported interim revenues 35% higher at £11.5m and a 74% increase in pre-tax profit to £2.4m. The licensing business drove the growth. North American revenues increased by 47% and there are more states likely to ease restrictions on online gaming. Growth is coming from moving into new markets and adding new games. There are upfront costs to the expansion, holding back short-term profit. Net cash is expected to be £8m at the year end
Iodine producer Iofina (IOF) increased interim revenues by 27% to $24.3m, while pre-tax profit improved from $2.6m to $4.7m. First half iodine production was 242Mt. Iofina commenced production at its IO#9 plant in Oklahoma at the end of the half year. This is the sixth plant in operation and will help boost second half production to 325-350Mt.
Contract research and infectious disease study services provider hVIVO (HVO) is moving into larger London premises in Canary Wharf. The latest interims have led to an upgrade of guidance for the full year and hVIVO intends to pay a nominal dividend for 2023. Interim revenues were £27.3m, up from £18m, and the full year outcome is expected to be £55.1m with most of the rest of the revenues already contracted.
Construction and property software supplier Eleco (ELCO) increased like-for-like interim revenues by 5% to £13.5m. More importantly, recurring revenues were 18% ahead at £9.7m. This indicates the success of the move to SaaS-based revenues which has held back progress in the short-term. Net cash could reach £10.8m by the end of 2023.
Mkango Resources (MKA) subsidiary HyProMag, which is a short loop rare earth magnet recycler, is participating in a grant funded project called RE-RE Wind, which is designed to provide a circular supply chain for rare earth magnets for wind turbines. The first generation of wind turbines are coming up to the end of their life and a decommissioning programme is required.
Payments services provider Cornerstone FS (CSFS) made a small maiden interim profit. The move into profit was earlier than expected. Interim revenues were 90% ahead at £3.6m and most of this is direct business rather than through third parties. The overheads were held down enabling more of the additional revenues to flow through to profit. Cash is being generated from operations.
Online gaming company B90 Holdings (B90) has raised £2m at 5.44491p/share. The cash will go towards funding acquisitions and further investment in existing assets. The company is also converting £4.73m of loan notes and interest into 86.8 million shares. Enwys, which acquires customers for online gaming companies, has been bought. There are more than 20 other acquisition targets.
Keystone Law (KEYS) is paying a special dividend of 12.5p/share on top of the interim of 5.8p/share. Underlying pre-tax profit was one-quarter ahead at £5.7m, while net cash was £11.3m at the end of July 2023. Interest from new principal lawyers is increasing and 25 offers were accepted in the first half. There is plenty of back office capacity for additional lawyers.
Communications technology developer Feedback (FDBK) is taking time to secure new deals, but they should be on the horizon. The community diagnostic centres contract with the Queen Victoria Hospital has been delayed, but hopefully it should be secured by the end of the year. Feedback is still loss making, even though full year revenues were 74% ahead at £1.02m. The cash outflow, including capitalised development costs, was £3m and the £7.3m in the bank should last more than two years.
North Sea oil and gas producer IOG (IOG) has been told by the authorities that the Nailsworth P2342 and P130 licences are not going to be extended and this could have a negative commercial impact on the potential for the Elland licence. Bondholder discussions continue and the waiver lasts until 29 September. There was £14.5m in cash at the end of August, including £7.3m of restricted cash. There was stable production from Blythe H2, but the realised gas price was lower.
The Property Franchise Group (TPFG) has offset lower revenues from property sales by increasing lettings revenues. Overall interim revenues were 1% ahead at £13.2m. The higher tax rate meant that earnings slipped 2% to 13.8p/share despite an increased profit. The interim dividend was increased by 10% to 4.6p/share.
US-focused betting company Sportech (SPO) plans to leave AIM. It says the burden of time and money is too great. A circular will be sent out to gain shareholder approval at a general meeting.
Bushveld Minerals (BMN) has signed a binding term sheet for a potential $69.5m-$77.5m investment by Southern Point Resources. This includes the acquisition of 50% of Vanchem and 64% of the Mokopane project, plus a $12.5m investment in Bushveld Minerals. There will also be a working capital facility provided. Southern Point Resources will take over marketing and sales of vanadium and other products. The stake disposals will lead to a book loss of $59.6m.
Animal feed ingredients supplier Ocean Harvest Technologies (OHT) raised interim revenues by 43% to €1.8m and gross margins jumped to 36%. Investment in marketing and other aspects of the business meant that the loss was flat at €1.3m. These additional costs should help to generate further sales growth of its seaweed-based feed. Field trials could add up to €13m to annual revenues. However, delays in these trials mean that full year revenues have been downgraded from €4.3m to €3.4m. There should be net cash of €2.9m at the end of 2023.
MAIN MARKET
The FCA has approved the takeover of Lookers (LOOK) by Alpha Auto Group. The bid is 130p/share.
On The Beach (OTB) says its full year results will show record revenues and the holiday company says pre-tax profit will be at the top end of expectations. In the year to September 2022, revenues were £144.1m, which was slightly higher than the pre-Covid level of £140.4m, and underlying pre-tax profit was £14.1m. Consensus forecasts for 2022-23 were revenues of £179.5m and pre-tax profit of £22.6m. The guidance suggests that profit should be slightly higher than that. Even so, underlying pre-tax profit in 2017-18 was higher at £27.6m.
Andrew Hore
Quoted Micro 17 April 2023
AQUIS STOCK EXCHANGE
PanGenomic Health (NARA) joined the Access segment on 12 April. The shares were already listed on the Canadian Stock Exchange. No new money was raised. The share price has stayed at 4.5p during the week and no trades have been reported. The Canadian share price is C$0.07 and it has fallen from C$0.25 since trading commenced last July. PanGenomic Health has three digital health platforms. NaraApp is a mobile app provides information tailored to an individual and their treatment regimen. Mindleap.com provides holistic mental wellness information and access to professional services. Mujn Diagnostics is a digital therapeutics platform. This is used by professional to access individual information from the Nara App to monitor a patient’s treatment.
After the market closed on Friday Arbuthnot Banking (ARBB) announced a £12m share issue at 925p a share. Chairman and chief executive Henry Angest will invest £6.75m of that money. The cash will be used to grow the loan book.
Goodbody Health (GDBY) is asking shareholders permission for cancelling the Aquis quotation. It has already delisted from the Canadian Stock Exchange. Management wants to reduce costs and complains that the market valuation is below NAV. The quotation on OTC QB will also not be retained.
Guanajuato Silver Company Ltd (GSVR) announced positive drilling results at the San Ignacio mine Some of the drilling has encountered high grades. There could be a new area of thick mineralisation. This will help to extend the mine life.
Invinity Energy Systems (IES) has been awarded an £11m grant from the UK government under phase 2 of the Longer Duration Storage Demonstration competition. This will deploy a 30MWh vanadium flow battery.
Cannabis supplier Ananda Developments (ANA) says preparations are underway for a medicinal cannabis flower processing facility. The MRX1 cannabidiol medical cannabis oil will be launched commercially in June and it may be used in two randomised controlled trials.
NFT Investment (NFT) has announced a general meeting on 26 May to gain shareholder approval for a proposed tender offer by April 2024. The tender will be for up to 857.1 million shares and the price will be the greater of 3.5p a share or NAV for each share.
Gunsynd (GUN) investee company Omega Oil and Gas (ASX: OMA) says initial results from the Canyon-2 well in Queensland have exceeded expectations. Cadence Minerals (KDNC) investee company Evergreen Lithium joined the ASX on 11 September. Cadence Minerals has a 8.74% stake in Evergreen Lithium and the share price nearly doubled to A$0.57 during the week.
Watchstone Group (WTG) had £11.5m in cash at the end of March 2023. NAV was 29p a share at the end of 2022.
S-Ventures (SVEN) has filed for insolvency of Lizza in Germany. Lizza was losing money when it was acquired last September. The losses are continuing, and sales have dropped. Alternative European distribution partners will need to be found. There will be a Euro1m write-off.
EPE Special Opportunities (EO.P) had an NAV of 309.57p a share at the end of March 2023.
Mark Horrocks has increased his stake in Lift Global Ventures (LFT) from 11% to 12.3%.
AIM
Spectral MD (SMD) is merging with Nasdaq-listed SPAC Rosecliff Acquisition Corp 1. The share price improved to 44p. The deal values Spectral MD at $170m, or 101p a share. In June 2021, the AIM flotation price was 59p. The AIM quotation will be cancelled. There is likely to be a $15m placing. This will provide additional cash to finance the commercialisation of the DeepView woundcare analysis technology. The transaction should complete in the third quarter.
Consumer electronic and electrical appliances retailer Marks Electrical (MRK) has beaten expectations in the fourth quarter and the full year forecast has been upgraded along with those for the following two years. Revenues in the fourth quarter to March 2023 were one-fifth higher at £24.8m and this means that full year revenues are 21% ahead at £97.8m. This has led to a 2022-23 pre-tax profit upgrade from £5.8m to £6.2m, which is still below the £6.4m reported for the previous year. Net cash is £10m.
Footwear retailer Unbound Group (UBG) has received a proposal from Marwyn Investment Management, which wants to inject £10m into the business at a placing price of 10.5p. That is the same level as the potential offer from WoolOvers Group (the offer also includes a contingent value right relating to the proceeds of an insurance claim). The shareholders would get an opportunity to invest at the same price and Unbound says it prefers the new proposal.
Womenswear retailer Sosandar (SOS) reported improving revenues and margins, although pre-tax was lower than expected in March. Full year pre-tax profit is still expected to be £1.6m and it could be more than £3m in 2023-24. More partnerships with other retailers are likely to be secured.
Currency and payment services provider Argentex (AGFX) says nine months revenues were 63% ahead at £41m, although the underlying operating profit fell from £11m to £9m. # Net cash is £26.2m. The final dividend will be 2.25p a share. The year end is being changed from March to December.
Legal services provider Ince (INCE) is appointing Quantuma as administrator after a major creditor will no longer support the business.
It does not appear that there will be anything left for shareholders when the sales of the remaining subsidiaries of MJ Hudson (MJH) are completed.
MAIN MARKET
Property investor Town Centre Securities (TOWN) has sold part of the Whitehall Riverside development in Leeds and reinvested some of the cash to acquire the 50% it does not own in build to rent company Belgravia Living. The disposal raised £13m, compared with a book value of £10m. There was £3.5m spent to acquire the rest of Belgravia Living. Along with the initial investment, the book value of Belgravia Living is £10m and the net annual rental income is £920,000.
First Tin (LON: 1SN) still had £13.8m in the bank at the end of 2022 and this is enough to pursue the development activities at the two main tin projects until the end of 2023. Progress is being made with the definitive feasibility study at Taronga in Australia. A resource statement is expected in the next couple of months. There should be a resource update for Tellerhauser in Germany by July. This project is eligible to move straight to construction and the operational permitting process. This will reduce the development timeframe by up to 18 months.
A CVA has been approved for Mode Global Holdings (MODE) subsidiary Mode Global. The winding down of trading operations is progressing.
Andrew Hore
Quoted Micro 11 April 2023
AQUIS STOCK EXCHANGE
Aquis Exchange (AQX) has launched Aquis Equinox, which is a regulated market-grade 24/7 matching engine. Rival exchange models need to be shut down to perform resets and maintenance. Aquis Equinox will be offered via the cloud or on-premise. Chairman Glenn Collinson bought 7,500 shares at 400p each and 5,000 shares at 412p each. Chief executive Alasdair Haynes acquired 10,000 shares at 390p each.
Marula Mining (MARU) has observed high grade graphite mineralisation at Nyorinyori project in Tanzania. Results from sampling are expected in the second quarter of 2023. There have also been two major graphite prospects observed at the Bagamoyo project. Further mining licences could be added to the project. Site works at the 75%-owned Kinusi copper project are just starting and there are plans to install a copper processing plant. Brahma Finance has converted £265,000 of loan notes at 2p a share.
Invinity Energy Systems (IES) says it has delivered more than 11.4 MWh of batteries so far in 2023. There are more batteries due to be delivered to projects in Australia and California.
Gunsynd (GUN) reported a realised and unrealised loss of £305,000 in the six months to January 2023. Net assets were £3.28m, including cash of £304,000.
RentGuarantor Holdings (RGG) increased revenues by 92% in the three months to March 2023.
NFT Investments (NFT) says that its crypto assets are worth 2.77p a share at 2 April. The majority is in Bitcoin and Ethereum.
Walls and Futures REIT (WAFR) has sold Pax Homes to chief executive Joe McTaggart for £1. Pax Homes has acquired IP by issuing Walls and Futures REIT 100,000 5% preference shares redeemable on 1 April 2029. This IP was valued at £118,000.
Decentralised finance business incubator AQRU (AQRU) lost £5.94m last year and net assets fell from £12.2m to £6.56m by the end of October 2022. That includes cash of £4.84m. That was before the £2.3m invested in Streaks Gaming. The annualised cost base has been reduced by two-thirds.
TruSpine Technologies (TSP) has terminated a consultancy agreement with a company that provided the services of Frank Boehm, who was the inventor of some of the company’s spinal stabilisation systems technology. He is challenging the company’s ownership of the IP.
Several SunNOx Group (SNOX) shareholders have entered into option agreements with RemNOx over 24 million shares at 30p each. The option lasts until 29 September. That could take the RemNOx stake to 29.8%.
KR1 (KR1) says NAV was 68.22p a share at the end of February 2023, up from 30.6p a share at the end of June 2022.
Wishbone Gold (WSBN) says that it appears that the Red Setter project is a potential analogue of the 26 million plus ounce Telfer deposit 15kn north east of the project.
Oberon Investments (OBE) is raising £450,000 at 3.5p a share.
Six Capital for Colleagues (CFCP) directors and people closely associated with them have bought a total of 709,064 shares.
Trading in the shares of S-Ventures (SVEN) has been suspended because its accounts have not been published.
AIM
Reading-based Ocean Harvest Technology Group (OHT) joined AIM last week. The company produces ingredients for animal feed using seaweed. Although the business started in Ireland, the main trading business is in Vietnam. The brand name of the products is OceanFeed and there are different products for different animals. Management believes it has spent €20m on developing and commercialising these ingredient products. A placing raised £6m, or £4.5m after expenses, at 16p. That valued the company at £20.1m. In 2022, revenues grew from €2m to €3m and the loss increased from €1.46m to €2.9m.
Fadel Partners Inc (FADL) joined AIM last week and raised £7.55m at 144p a share. It provides rights and royalty management and brand compliance services. There is £4.6m set aside for boosting sales and marketing and services supporting them. There will also be funding for research and development.
Franchise Brands (FRAN) is making its largest ever acquisition and raised £92m from a share placing at 180p. This will help to finance the £200m purchase price for Pirtek Europe, plus working capital adjustment of £12.2m. Pirtek Europe provides on-site hydraulic hose replacement and other services through 213 service centres and 838 mobile service vans. There are 70 franchisees in eight countries and the company has the right to enter eight other European countries. Franchise Brands will have operations in ten countries. Forecast 2023 group revenues are £155m or £168m on a pro forma basis. Forecast 2023 group EBITDA is £29m.
Restaurants operator Fulham Shore (FUL) is recommending a 14.15p a share cash bid by Tokyo-based TORIDOLL Holdings. TThe bidder has revenues of around £1bn and already has European interests. It works with specialist private equity firm Capdesia in Europe. The takeover will enable greater expansion of the Franco Manca and The Real Greek brands.
Logistics firm Xpediator (XPD) has recommended the 42p a share bid that was initially proposed last year. The shareholders will also receive a special dividend of 2p a share.
Floorcoverings distributor Likewise Group (LIKE) continues to gain share in a tough market. First quarter revenues were 19.7% higher. Last April’s acquisition Delta Carpets was not included in the comparative period, but it is not a big business. Higher prices helped but there was significant underlying growth.
Linear generator technology developer Libertine Holdings (LIB) shares declined after management revealed delays in development work that mean that 2022-23 revenues could be up to £400,000 lower than the expected £1.32m.
Saietta Group (SED) won the largest ever order for its eDrive systems. The £5m order is for 3,000 bespoke systems based on the AFT140 motor from Nasdaq-listed urban delivery vehicles manufacturer AYRO. Saietta is exclusive supplier for the Vanish vehicle launched in February. First deliveries will be in the autumn and the full number delivered by the end of 2024.
Tungsten West (TUN) is restructuring the operations of its Hemerdon tungsten and tin project in Devon. Costs will be cut, and surplus assets sold. Concentrate already on the site will be sold. Project funding is being discussed. A convertible note issue raised £7m and an open offer could raise up to £2m.
Block Energy (BLOE) has improved its financial position, and the salary sacrifice scheme started in April 2020 has come to an end. Cash generation in building from the WR-B01Za, which is producing 274 barrels of oil/day. There is optimism about further wells.
MAIN MARKET
World Chess (CHSS) has been seeking to join the stockmarket since the end of 2019, when the business was starting to build up. It has arrived on the standard list having raised £3.04m at 6.25p a share. The share price ended the first day of trading at 6.5p (5p/8p). There were no trades reported. World Chess has the commercial rights to chess governing body FIDE’s online chess gaming platform, the Grand Prix series, the Candidates Tournament and the FIDE World Chess Championship. The Russia-based business was sold last year.
Aura Renewable Acquisitions (ARA) got had £809,000 in cash following a £236,000 loss in 2022 – mainly down to the expenses of the flotation. That means there is around 8p a share in cash, which is a premium to the market price. The flotation price was 10p. Cash shell Aura Renewable Acquisitions is still considering its first acquisition. The directors are not taking any fees and the ongoing expenses are minimal.
Andrew Hore
Quoted Micro 3 April 2023
AQUIS STOCK EXCHANGE
Aquis Stock Exchange owner Aquis Exchange (AQX) reported an increase in revenues from £17.2m to £19.9m in 2022. The pre-tax profit improved from £3.6m to £4.5m. that reflects the operational gearing. All three parts of the business were profitable. In the cash of the Aquis Stock Exchange this was probably the first time it has made a profit in any of its incarnations. This was on the back of a 48% increase in issuer fees because of the 22 new companies joining the market.
Wine maker Chapel Down Group (CDGP) increased underlying pre-tax profit by 22% to £1.7m in 2022. Singer expects this profit level to be maintained in 2023 before more than doubling to £4m by 2026. Net cash is £3.3m. NAV is 38p a share.
Arbuthnot Banking Group (ARBB) reported better than expected 2022 results. Pre-tax profit jumped from £4.6m to £20m and the dividend was raised by 11% to 42p a share. The loan book increased by 11% to £2.2bn. NAV is 1411p a share.
Good Energy (GOOD) 2022 revenues jumped from £146m to £248.7m as energy prices increased, while the energy supplier returned to profit. There was net cash of £19m at the end of 2022. The book value of Zap-Map is £13m. Management is seeking to expand its energy efficiency services operations.
Ananda Developments (ANA) published a medicinal cannabis research round-up. The sublingual spray shows promising results in diabetes type 2 patients. There has also been progress in explaining the mechanisms of action of CBD alleviating bladder pain syndrome. Shareholders voted for the acquisition of MRX Global.
A £289,000 interim cash outflow at Tectonic Gold (TTAU) was partly offset by the £101,000 of proceeds of the sale of shares in Kazera. There was net cash of £46,000 at the end of 2022.
Visum Technologies (VIS) made an interim loss of £457,000 on revenues of £120,000. The first US location for its theme park video technology was opened in November. Debt financing has been secured for rides and attractions. Existing sites in Europa Park and Linnanmaki will reopen in April. The financial position is expected to improve.
Valereum (VLRM) has sold shares in subsidiary Valereum Collections raising £70,500 at 625p a share. Valereum retains a 99.8% stake in the company, which will operate the group’s NFT programme. The Valereum share price dived 23.6% to 5.25p, which is a new low for the year.
KR1 (KR1) has invested $500,000 in Hydra Ventures, which supports and incubates decentralised autonomous organisations, in return for 5,000 HYDRA tokens. This is part of a $10m fundraising.
Capital for Colleagues (CFCP) had net assets of 77.78p a share at the end of February 2023. There are 13 companies in the investment portfolio. Castlefield Investment Partners has reduced its stake from 45.9% to 42.1%.
Invinity Energy Systems (IES) has made a sale of a 1.5MWh energy storage system to STS Group for a solar storage project in Hungary.
ChallengerX (CXS) had £92,000 in cash at the end of 2022, and a £250,000 subscription announced in February has yet to be received. The development of the company’s marketing platform requires more money.
RentGuarantor Holdings (RGG) has entered into an agreement with Vorensys for the use of the RentGuarantor services. Vorensys provides tenant referencing services.
CRUSHMETRIC Group Ltd (CUSH) has issued an unsecured convertible bond with a principal of S$250,000 (£151,000), which has a coupon of 10% and matures in February 2026.
SuperSeed Capital (WWW) boss Mads Jensen bought 3,000 shares at an average price of 83p each.
Shares in Asimilar (ASLR) fell ahead of the trading suspension on 3 April due to the accounts not being published in time.
AIM
Scottish gold producer Scotgold Resources (SGZ) has been hit by falling ore grades at the Cononish gold mine. The average gold grade in January was 5.65g/t. compared with an estimated grade of 7.35g/t. A different part of the mine is being developed and the production process is being changed. Shore has its forecasts under review because of concerns about the financial position of the company.
Daisy Group is making an agreed bid for ECSC (ECSC), which values the cyber security services provider at £5.4m. The bid is 54.02p for each share in cash. ECSC joined AIM at the end of 2016, when it raised £5m at 167p a share.
Cameroon-focused oil and gas company Bowleven (BLVN) had $2.45m in cash and investments at the end of 2022 and it is considering its options for raising more money. Bowleven will need cash to invest in the Etinde project, although there will not be progress there until Perenco completes the purchase of New Age’s operating interest. Bowleven’s interest in Etinde is estimated to be worth more than $150m.
Footwear retailer Unbound Group (UBG) has received a 10.5p a share potential offer from WoolOvers Group. There would also be a contingent value right that would give shareholders the proceeds of any insurance claim related to business interruptions due to Covid lockdowns. Unbound management says it would be likely to accept this offer. The recent fundraising was at 15p.
Building and architecture software supplier Eleco (ELCO) reported 2022 results that were the first 12 months of an 18-month period where the switch to a focus on SaaS is holding back revenues, which dipped 3% to £26.6m. Pre-tax profit was better than expected at £3.6m and net cash was £12.5m. The final dividend is 0.5p a share with a special dividend of 0.58p a share on top. This year’s pre-tax profit is expected to be £3.8m.
Sustainable fuels developer Velocys (VLS) has risen on the back of the latest UK government consultation paper on sustainable aviation fuel, which identifies the Fischer Tropsch process as part of the main technology. This can be supplied by Velocys, which has active projects in the UK and US.
Video games developer tinyBuild (TBLD) is investing in new games, so there has been a reduction in net cash. However, the strong back catalogue means that the business is resilient and not dependent on one game becoming a hit.
MAIN MARKET
Used car finance and property bridging loans provider S&U (SUS) reported full year results in line with expectations. In the year to January 2023, underlying pre-tax profit dipped from £47m to £41.4m, after higher bad debt provisions of £13.9m. Even so, the provision is still relatively low. Used car prices continue to rise, but at a lower rate than early last year. Net debt was £192.4m at the end of January 2023, compared with committed facilities of £210m. The dividend was raised to 133p a share.
Standard list shell Marwyn Acquisition Company II (MAC2) has appointed former Curtis Banks Group chief executive Will Self as the chief executive – pensions division. This year, AIM-quoted Curtis Banks was acquired for 350p a share in cash by Nucleus Financial Platforms, which valued the SIPP administrator at £242m. Will Self will lead the search for suitable financial services acquisitions. The strategy has been further refined to include themes including changing population demographics, intergenerational wealth transfer, social and family support and concentration of wealth.
Andrew Hore
Quoted Micro 13 March 2023
AQUIS STOCK EXCHANGE
Ananda Developments (ANA) is acquiring MRX Global, which has invented a method to formulate cannabis medicines, for £2.02m in shares at 0.3p each. The first formulation is MRX1, which will be used in two phase II randomised controlled trials to investigate the effectiveness of cannabidiol in chemotherapy induced peripheral neuropathy and in patients with endometriosis. These trials have £1.55m of grant funding. Directors of Ananda are shareholders in MRX, so the deal requires shareholder approval. These directors will a 3% royalty on net sales of any commercial products sold by MRX. Ananda has raised £326,000 through a subscription at 0.3p a share and there is a broker option that could lead to the issue of 33.3 million shares at the same price. Charles Morgan has converted convertible loan notes into 747.3 million shares at 0.3p each. Charles Morgan and Melissa Sturgess will own 53.8% of the company.
Altona Rare Earths (ANR) has raised £2m at 5p a share, which is more than the £1.25m it was initially seeking. This is part of the move to the standard list on 20 March. A maiden JORC compliant mineral resource estimate and a scoping study for the Monte Muambe rare earths project in Mozambique. Altona is increasing its stake in the project from 20% to 51%.
Vulcan Industries (LON: VULC) is acquiring Forepower Lincoln (250) Ltd, which has a 240MW lithium-ion battery storage project, for £2.6m in shares at 1p each. This means that Britt Foreman of Forepower Lincoln (250) Ltd has a 29.9% stake in Vulcan. The two companies have been working together for the past year and Vulcan can help to raise the finance for the project. There are plans to raise more cash to settle liabilities of £250,000 and continue to develop the project.
Invinity Energy Systems (IES) has sold a 220KWh VS3 flow battery to Dawsongroup, following a sale earlier in the year. STS Group and project partner Ideona have been appointed to deploy Invinity Energy batteries in Hungary, primarily for co-located solar and grid support projects.
Hot Rocks Investments (HRIP) published 2021-22 figures and interim figures to September 2022 and trading in the shares was restored. Net assets are £526,000. On 3 March, cash was £70,000. Optiva has been appointed as corporate adviser.
CBD products supplier Yooma Wellness Inc (YOOM) continues to restructure its operations, but it is still trying to find a way of moving the business forward. Following the exit from many businesses, the remaining businesses are in Europe. Yooma Wellness may have to sell other businesses if additional funds are not secured.
EPE Special Opportunities (EO.P) had an NAV of 334p a share at the end of January, which was a 27% decline. The decline in the Luceco (LUCE) share price was a major factor even though this stake has been reduced in recent years. Rayware was another poor performer. Quoted shell company Epic Acquisition Corp is reviewing acquisitions. An investment in dog snacks company Denzel’s was completed in October. Investments in Atlantic Credit Opportunities Fund and Prelude Structured Alternatives Master Fund.
Guanajuato Silver Company Ltd (GSVR) says a US institutional investor has acquired 24 million shares from Great Panther Mining and its other shares were bought by other investors.
Rogue Baron (SHNJ) says Shinju premium Japanese whisky won a gold medal at the 2023 LA Invitational Wine and Spirits Challenge.
Pioneer Media (PNER) has left the Aquis Stock Exchange.
Marula Mining (MARU) has appointed Peterhouse as broker, replacing OvalX.
Music artists and events company All Things Considered (ATC) won the agent of the year award at the International Live Music Conference Gala Dinner.
Begbies Traynor has been appointed administrator to Love Hemp.
AIM
A positive trading statement by NWF (NWF) has led to a forecast upgrade for 2022-23. Peel Hunt increased its pre-tax profit forecast by 42% to £17.5m, compared with £20.9m last year thanks to a bumper year for fuel distribution. The expected downturn in fuels profitability has not been as sharp as previously thought and the food distribution and feeds divisions are also doing better than expected. Net cash of £5.5m is anticipated at the end of May 2023 and there are borrowing facilities of £65m. This leaves plenty of scope for further add-on acquisitions of fuel businesses.
Franchise Brands (FRAN) reported better than expected 2022 pre-tax profit up from £6.5m and £12.8m and it plans to sell its B2C franchise businesses. The Filta business made a 10-month contribution last year. Net cash was £8m at the end of 2022 and the B2C businesses, which could be sold separately or in one disposal, will generate more cash. The next acquisition will be in the B2B area, and it is likely to be significant.
Gelion (GELN) is acquiring Johnson Matthey’s lithium sulfur and silicon anode patent portfolio for £4.25m. This will help Gelion to increase gravimetric energy density for its batteries and enable faster commercialisation of lithium sulfur technology. Gelion plans to sell the silicon anode patents and could receive around £1.25m for them.
Data analysis technology provider WANdisco (WAND) was considering a US listing, but it has discovered accounting problems leading to a suspension of share trading.
Steel structures supplier Billington (BILN) sparked a forecast upgrade with its trading statement. Not only were 2022 profit and cash better than expected, 2023 momentum is ahead of estimates. The 2022 pre-tax profit has been upgraded from £5.3m to £5.8m, while the 2023 figure is increased by £1m to £8m. The 2022 dividend is expected to be 15p a share.
In The Style (ITS) has completed a strategic review and is proposing the sale of its operating business for £1.2m and the cancellation of the AIM quotation. The online retailer is losing money and running out of cash. The purchaser is Baaj Capital, which has other fashion-related investments, including Officers Club. Chief executive and founder Adam Frisby will continue to run the business and take a stake. The company will change its name to Itsum.
Aferian (AFRN) says customer destocking of streaming devices has hit sales and they will be significantly lower than expected for this part of the business. Streaming video services provider 24i continues to grow. There should still be a positive EBITDA this year. The annualised cost base is being reduced by $5m. Annual results to November 2022 will be delayed while discussions with banks continue over future covenant compliance. At the end of 2021, Aferian secured a $50m loan facility from three banks, including Silicon Valley Bank, which lasts until 23 December 2024. BLOE
Gold explorer Panthera Resources (PAT) has entered into a conditional arbitration funding agreement with a subsidiary of Litigation Capital Management (LIT) for the damages claim against the Republic of India for breaches of its obligations under the Australia-India bilateral investment treaty. Up to $10.5m will be provided to cover the costs of the claim.
Amur Minerals (AMC) has completed the sale of the AO Kun-Manie project in Russia to Bering Metals. The $35m consideration should be received soon. A 1.8p a share dividend is planned, and Amur Minerals will become a cash shell.
Purplebricks (PURP) has received approaches for the acquisition of the company, or its businesses and the ongoing strategic review has been widened to include a formal sale process.
MAIN MARKET
Networking and biomedical company BATM (BVC) reported a dip in full year revenues from $132.8m to $116.1m, partly due to a slump in Covid-related diagnostics income. Operating profit slumped from $11.3m to $3.7m. This was slightly better than expected. The networking and cyber division made a lower loss in 2022. There should be a recovery in revenues and profit this year. Moti Nagar has become chief executive.
Lookers (LOOK) has acquired vehicle hire and brokerage business Fourways Vehicle Solutions, which had revenues of £3.8m last year. This business could provide Lookers own rental requirements at lower cost.
Bluebird Merchant Ventures (BMV) has raised £1.22m at 2p a share to finance proof-of-concept funding at the Kochang gold and silver mine in South Korea. That is the same price as the previous placing. Production could eventually reach 5,000 ounces per annum. SI Capital has been appointed broker.
Andrew Hore
Quoted Micro 6 March 2023
AQUIS STOCK EXCHANGE
Invinity Energy Systems (IES) is repaying the remaining $2.1m of its $2.5m convertible loan facility provided by RiverFort Global Opportunities out of the proceeds of the recent placing. There is a 10% redemption premium, making the total cost £1.92m. That stops dilution by the issue of six million shares. Related warrants can be exercised at 32p a share. There are 1.35 million warrants in issue with a further 499,980 warrants to be issued.
Cadence Minerals (KDNC) says the Hastings Technology Metals share price has fallen thereby reducing the value of the stake received when Cadence Minerals swapped its 30% stake in mineral concessions in the Yangibana rare earths project. Even so, Hastings is making progress in developing the mine and ore reserves increased by one-quarter to 20.93Mt at 0.9% total rare earth oxide grade. That increases the mine life to 17 years and production could start in 2024. Shipping of iron ore concentrate from the Amapa iron ore project should recommence in the next six months.
KR1 (KR1) had a net asset value of 60.6p a share at the end of January 2023.
SuperSeed Capital Ltd (WWW) had earnings of 6p a share for the fourth quarter and NAV was 102p a share at the end of 2022.
BWA Group (BWAP) is still seeking a cash injection. Some mineral licences may become the subject of joint ventures or be sold. An issue of 5.76 million shares at 0.5p a share to directors partly settles their fees.
Good Energy (GOOD) has started a rooftop solar installation operation.
Fuel additives supplier SulNOx Group (SNOX) says RemNOx Ltd has not taken up the option to acquire a total of 24.08 million shares at 30p each from directors between 6 February and 28 February.
Quantum technology investment company Quantum Exponential Group (QBIT) appointed Stuart Woods as chief operating and strategy officer.
Fenikso Ltd (FNK), formerly Lekoil, received $665,000 as partial repayment of the loan of $51.9m. Creditors are currently more than $2m. The next payment will be out of the February oil production proceeds.
TruSpine Technologies (TSP) has still not received the promised bridge loan facility or a share subscription. A £200,000 loan has been received from a third party. This will provide working capital.
Trading in Wheelsure Holdings (WHLP) shares is suspended because the accounts for the year to August 2022 have not been issued. Talks continue concerning a cash injection.
RentGuarantor Holdings (RGG) has moved to the Apex segment of the Aquis Stock Exchange.
Phoenix Asset Management has slashed its stake in Silverwood Brands (SLWD) from 16.5% to 1%. Miton UK MicroCap Trust increased its stake in IamFire (FIRE) from 8.69% to 9.27%. William Black has taken a 6.11% stake in Western Selection (WESP).
AIM
Accrol (ACRL) has signed a licensing agreement with Unilever, which will enable the tissue products manufacturer to sell a kitchen towel product under the Lifebuoy brand. This is a brand with strong recognition among consumers. This will be a higher priced product than the products currently produced by Accrol. A new paper mill is being built.
AB Traction increased its stake in construction dispute services provider Driver (DRV) from 20.6% to 27.5%. Ruffer has sold its stake.
WH Ireland has upgraded its 2023 forecasts for LifeSafe Holdings (LIFS) after the fire safety products supplier published a full year trading statement. The 2022 revenues were £3.9m, having been £1.3m at the interim stage. US sales are accelerating. The 2023 forecast revenues have been raised from £5.5m to £6.5m with a slight reduction in the loss to £400,000.
Non-executive directors of Inland Homes (INL) have all resigned because of related party issues that they were not informed about at the relevant times. That would leave the residential property developer with one director, so Simon Bennet is staying on for a fortnight so another director can be appointed – if not the shares will be suspended. Founder Stephen Wicks is likely to return to the board. There will be further announcements about the related party issues.
Gold explorer Panthera Resources (PAT) has entered into a conditional arbitration funding agreement with a subsidiary of Litigation Capital Management (LIT) for the damages claim against the Republic of India for breaches of its obligations under the Australia-India bilateral investment treaty. Up to $10.5m will be provided to cover the costs of the claim.
Purplebricks (PURP) has received approaches for the acquisition of the company, or its businesses and the ongoing strategic review has been widened to include a formal sale process.
Hostels operator Safestay (SSTY) generated higher than expected revenues in 2022 as occupancy levels continue to rebuild and reaching 63%. Revenues were £19m, compared with a forecast of £17.9m. A small pre-tax loss is forecast with a move back to profit expected this year.
Proton therapy technology developer Advanced Oncotherapy (AVO) has secured a convertible loan note facility of £4.95m. In return, the lenders will receive a portion of the revenues generated by the proton therapy machine installed in the Harley Street Centre, capped at £2.5m each year over a ten-year period.
Healthcare services provider Totally (TLY) warns that although full year revenues will be in line with expectations increasing costs means that profit will be below forecasts. Canaccord Genuity has cut its 2022-23 pre-tax profit forecast from £5.8m to £3.8m, down from £4m the previous year. Net cash is expected to be £5.5m at the end of March 2023.
Metal Tiger (MTR) is proposing the cancellation of its AIM quotation so that it has more flexibility with its new investment strategy. A general meeting will be held on 20 March for shareholders to vote on the cancellation and the new investing policy. The company will remain listed on ASX.
MAIN MARKET
URA Holdings (URAH) has completed the acquisition of the Gravelotte emerald mine in South Africa. This used to be the largest emerald mine in the world. The mineral resource estimate is 29 million carats and there are 12 other potential targets. The consideration was £100,000 in shares at 2.5p each.
Mass Energy Developments (MED) announced successful capacity market bids from the 9MW Pyebridge synchronous gas-powered flexible generation facility of £60/Kw and £64/Kw per annum.
IQ-AI Ltd (IQAI) says that the FDA has granted orphan drug designation status for gallium maltolate for the treatment of glioblastoma multiforme brain cancer. Enrolment has started on a phase I clinical trail to evaluate safety and dosage.
Andrew Hore
Quoted Micro 27 February 2023
AQUIS STOCK EXCHANGE
National Milk Records (NMRP) increased interim revenues by 5% to £12m, while pre-tax profit improved from £750,000 to £790,000. A tax credit meant that earnings increased by a higher percentage. Net debt is £900,000. The main growth was in the core milk testing services, although genomics revenues rose from £173,000 to £336,000. Price increases will help margins in the second half. Full year pre-tax profit is expected to decline from £2.4m to £1.9m. Managing director Andy Warne is taking leave due to illness and the finance director is assuming operational control.
There are problems with the acquisition of a 19.8% stake in skincare products supplier Lush by Silverwood Brands (SLWD) because Lush is refusing to register the change of ownership of the shares. Silverwood Brands is paying £216.8m for the stake and no reason was given for the refusal to record the transfer of the shares.
Samarkand (SMK) has benefitted from the easing of Covid restrictions in China. Although there was a short-term rise in infections, consumer confidence is improving since Chinese New Year. The Chinese government is keen to boost consumption. Partner brands using the company’s Nomad software platform are planning for growth this year and more premium beauty brands have been added to the platform. Samarkand could be profitable in the next financial year.
Invinity Energy Systems (IES) raised £21.5m at 32p a share with up for £4m more to come from a two-for-19 open offer. Taiwan-based Everbrite Technology is investing £2.5m in the placing. The cash will be used for working capital, which is expected to last until the middle of 2024. At that time the next generation Mistral grid scale vanadium battery will be ready for launch. The company will not need to draw down the $10m convertible loan facility.
In the year to October 2022, Hydro Hotel Eastbourne (HYDP) turnover improved from £2.79m to £4.4m, but pre-tax profit dipped from £457,000 to £445,000 because of the lack of government assistance. Trading remains tough. Cash improved to £1.59m.
Shore has upgraded its forecasts for Arbuthnot Banking Group (ARBB) with 2022 earnings increased by 11%. This reflects the benefits of higher interest rates with deposit rates lagging base rates. The 2022 pre-tax profit forecast is £29.5m and the 2023 forecast has been increased £28.5m to £40m. Estimated tangible NAV is 1194p a share.
Shareholders in Walls & Futures REIT (WAFR) have voted in favour of the resolutions enabling strategic investor Vengrove to raise cash for the company through a share issue. The number of shares in issue will be ten times as many as currently in issue. This will help Walls and Futures REIT scale up. Investments will be made in affordable rental housing, education property, service stations and car parks and community buildings. Pax Homes will be sold to Joseph McTaggart, so the group will no longer be a developer. The company’s name will be changed to Social Infrastructure REIT.
In the six months to November 2022, installation and engineering group Field Systems Designs Holdings (FSD) increased revenues from £2.6m to £6.7m and returned to profit in the period. Cash declined from £3.71m to £3.15m. Water companies are accelerating their spending under the current five-year programme and this provides a positive outlook for the business.
Marula Mining (MARU) has increased its stake in the Kinusi copper project in Tanzania from 49% to 75% for up to $550.000. The initial payment is $150,000 in cash and shares. There is high-grade copper mineralisation at the project.
Guanajuato Silver Company Ltd (GSVR) announced drilling results from the San Ignacio mine. There are some high-grade silver intersections plus gold. A new area of thick mineralisation may have been found. This should lead to a significant increase in resources.
Peterhouse has resigned as corporate adviser to Hot Rocks Investments (HRIP) and terms are being agreed with a replacement.
Harry Hyman increased his stake in Oberon Investments (OBE) from 3.75% to 4.23%.
Pharma C Investments (PCIL) has appointed broker Jeremy Woodgate to its board.
AIM
Cancer treatments developer Redx Pharma (REDX) is merging with Jounce Therapeutics and the AIM company’s shareholders will own 63% of the enlarged group. They will receive 0.2105 of a Jounce share for each Redx share. Jounce will be renamed Redx Inc and retain its Nasdaq listing.
Cleantech Lithium (CTL) plans a listing on the Australian Stock Exchange (ASX). Canaccord Genuity (Australia) and Fox Davies are joint lead managers to the listing, which is expected to happen in the third quarter of 2023. The Chile-focused lithium projects developer has 31% of its shareholders linked to Australia while other potential shareholders are not able to invest in other markets. The AIM quotation will be retained.
Medical disinfection products supplier Tristel (TSTL) is back to past growth rates, helped by price increases. The UK was the fastest growing market. In the six months to December 2022, revenues were 15% ahead at £17.5m and the growth rate was greater if discontinued products are excluded. Pre-tax profit improved from £2.13m to £3.08m. The tax charge is higher, so earnings growth was slower. The interim dividend is maintained at 2.62p a share. Net cash is £8.42m. Progress is being made with the FDA approval for medical device decontamination product DUO ULT. Tristel is spending £3m on FDA approval. To reflect that it has renegotiated the US distribution agreement with Parker Labs.
Engineering business Avingtrans (AVG) increased revenues from £44.5m to £50m in the six months to November 2022 and profit improved. The engineering operations have been hit by supply problems, but there is growth in nuclear and North Sea demand. There is 90% cover for the full year revenues forecast. The medical division is progressing towards the launch of a new imaging product by the end of 2023.
ZOO Digital (ZOO) has signed up a second major Hollywood studio to its cloud-based ZOOstudio ERP service offering subtitling, dubbing and other video services. ZOOstudio will be embedded in the client’s own internal technology platform. Tougher markets in the US mean that film studios and streaming platforms are seeking to grow in international markets, thereby increasing demand for the services offered by ZOO Digital.
Digital services provider Made Tech Group (MTEC) increased interim revenues by 76% to £20.6m, but pre-tax profit fell from £1m to £300,000. Singer still expects full year pre-tax profit to improve from £2.3m to £3.4m. Fewer contractors are being used and margins should rise in the second half. More than £60m of additional bookings have been gained so far in 2022-23.
Circle Property (CRC) has conditionally disposed of Concorde Park in Maidenhead for £12.3m. Somerset House in Birmingham is being sold for £15.2m and Victory House in Northampton is being sold for £2.75m That leaves one property to sell. There is already £32.6m in the bank prior to these disposals. B share issues are planned March and April to return cash to shareholders. The AIM quotation is likely to be cancelled in May.
ECR Minerals (ECR) has published drilling data from the Blue Moon prospect at Bailieston, Victoria with one of the holes at 84.9 metres depth reporting a composite grade of 6.35 metres at 4.56g/t. The rig is moving to the Brewery Lane property at Creswick.
Conroy Gold & Natural Resources (CGNR) made a high-grade gold discovery in a new area of the Longford-Down Massif. Visible gold is present. The grades are between 12.8g/t and 123g/t at the Mines Royal option area in Northern Ireland. Exploration is being carried out with joint venture partner Demir Export.
Snowfall has hit production at the Pakrut gold mine operated by China Nonferrous Gold (CNG). The Tajikistan mine has been hit by avalanches and landslides that have damaged power supply. Operations will be suspended for at least one month.
MAIN MARKET
Roquefort Therapeutics (ROQ) has signed an exclusive licence and royalty agreement with Randox Laboratories for its Midkine antibody portfolio. The ten-year licence excludes Japan and enables Randox to use the Midkine portfolio for medical diagnostics. The two firms will collaborate on potential cancer uses. Roquefort could generate more than £5m over the length of the agreement.
Trifast (TRI) chief executive Mark Belton has resigned after a disappointing trading statement. The fasteners supplier has been hit by Asian destocking. The forecast earnings for 2022-23 have been reduced by 38% to 5.1p a share.
Providence Equity is interested in making a 105p a share offer for Hyve Group (HYVE), which is a small fraction of the flotation share price.
Andrew Hore
Quoted Micro 30 January 2023
AQUIS STOCK EXCHANGE
Aquis Stock Exchange owner Aquis Exchange (AQX) says 2022 trading was in line with expectations. The 2022 results will be published on 30 March.
Electric vehicle drivetrain technology developer Equipmake Holdings (EQIP) has raised £6.235m at 5p a share. That was slightly more than initially indicated. A lease is being secured on additional premises. The contracted order book is worth £8.6m. Interim revenues were £1.05m and the full results will be announced on 15 February.
Invinity Energy Systems (IES) says existing contracts underpin growth in in 2023. There are £22m of vanadium flow battery systems due for delivery in 2023 and a further £7.4m order book for 2024. There was £5.1m of cash in the bank at the end of 2022. Pilot projects with Siemens Gamesa should begin in the summer and a next generation product should be available in the first half of 2024.
Cadence Minerals (KDNC) has completed the sale of its joint venture interest in Yangibana rare earths project for A$9m of shares in ASX-listed Hastings, which is equivalent to 1.9%. Evergreen Lithium is expected to list on the ASX on 10 March – Cadence Minerals owns 15.8 million shares, which are expected to be valued at A$3.96m.
A full year update from Chapel Down Group (CDGP) shows string growth in sparkling wine sales. Group revenues were 10% ahead at £15.6m with momentum increasing in the second half. Margins should have improved.
Ace Liberty & Stone (ALSP) reported a small dip in interim pre-tax profit to £731,000, partly due to additional charges relating to a property in Sunderland. There is available cash of £9.5m for further property investments and contracts have been exchanged on a Dorchester property.
Helium Ventures (HEV) had £157,000 in cash at the end of October 2022. The proposed acquisition of Vestigo Technologies, which supplies tracking software, continues to be progressed.
Goodbody Health (GDBY) is partnering with Datar Cancer Genetics to offer the Trucheck circulating tumour cell screening service.
Tap Global (TAP) has signed up its first client for its crypto app. Global cryptocurrency exchange Bitfinex will use the service to offer clients a prepaid Mastercard and convert cryptocurrency to Euros.
SuperSeed Capital (WWW) says the SuperSeed II LP has invested in eight SaaS companies and a further investment should be made in the first quarter of 2023.
RentGuarantor Holdings (LON: RGG) is licencing its software to Clever Student Lets to use on its student letting platform.
Guanajuato Silver Company Ltd (GSVR) has published fourth quarter production figures. Silver output was 401,000 ounces in the period, while gold output was 4,000 ounces. Full year production was one million ounces of silver and 11,000 ounces of gold.
AQRU (AQRU) has launched its lending pool via subsidiary Accru Finance. This allows investors to generate yield from tax credit receivables originating from the IRS in the US. Annual returns of up to 10% are indicated.
Good Energy (GOOD) was one of three energy suppliers criticised for not providing enough help to their prepayment customers to claim the £400 of support vouchers from the government.
Marula Mining (MARU) says that initial deliveries of 1,000 tonnes of high-grade lithium ore from the Blesberg mine will commence shortly and take four weeks. Processing of existing stockpiles is ongoing, while site infrastructure is upgraded.
Chris Akers continues to build up his stake in Asimilar Group (ASLR) and it has reached 8.01%.
AIM
Spectacles supplier Inspecs (SPEC) is expected to report slightly better than expected full year figures. The figures are still much worse than expected prior to the previous warning, where destocking and poorly performing businesses led to a significant downgrade. Sales were flat at $246m, although there was growth before currency movements. Pre-tax profit is set to more than halve from $17.9m to $7.7m.
Battery technology developer Ilika (IKA) has been awarded a UK government grant of £2.8m for taking a leading role on a 24-month Faraday Battery Challenge in collaboration with BMW and Williams. This will further the development of Ilika’s Goliath battery, which is designed to be cost-effective and recyclable. There were no surprises in the interims earlier in the week. In the six months to October 2022, revenues improved from £179,000 to £204,000, which all came from UK grants. Net cash outflow from operating activities increased from £2.19m to £3.84m. Net cash is £17.8m. The Stereax M300 miniature battery should be launched by the summer.
Results from aerospace composites kits supplier Velocity Composites (LON: VEL) were as expected following the trading statement at the end of 2022. In the year to October 2022, revenues were 22% higher at £12m, while the loss was flat at £1.5m. A further loss is forecast for this year, while the US deal with GKN Aerospace builds up later in the year. A full year contribution from the US GKN business should push the company into profit.
Fire Angel Technology (FA.) reduced its loss last year, even after higher procurement costs, and it expects significantly enhanced margins this year. The home safety products supplier increased 2022 revenues by nearly one-third to £57.5m. A further reduction in loss is expected this year with helpful currency movements providing potential for further upside.
Healthcare data analysis provider Diaceutics (DXRX) beat expectations with revenues 44% higher at £20m, helped by currency movements, and margins are being maintained despite inflationary pressures. Diaceutics has secured two agreements with top ten global pharma companies. The order book is worth £15.6m. Investment in data and technology is being increased.
Following the departure of the recently appointed chief executive Inland Homes (INL) has sold its greenfield strategic land portfolio. There was a £3.5m profit on the sale that raised £9.5m in cash. There will also be fees generated for assisting the purchaser. Despite the disposal, net debt has risen to £100m and trading conditions have deteriorated. The 2021-22 loss is expected to be £91m and NAV has fallen to 40p a share.
Fiinu (BANK), which offers the Plugin overdraft to individuals with accounts with other banks, has completed the core banking platform configuration and its testing. General testing of the service is continuing. There is £35m-£40m required to fund the bank and a staged fundraising will commence before Easter.
Piling contractor Van Elle (VANL) had already flagged the interims, but the pre-tax profit was still slightly higher than expected at £3.3m. The interim dividend is 0.4p a share. Full year pre-tax profit forecasts have been maintained at £5.2m, although next year’s figures has been trimmed to £6m.
Gaming Realms (GMR) has signed a brand licensing deal with Tetris Inc, the holder of the rights to the eponymous falling blocks game. Tetris Slngo mobile will be launched globally before the end of 2023.
MAIN MARKET
Oxford Cannabinoid Technologies (OCTP) is due to commence a phase 1 clinical trial for its lead programme OCT461201 for the treatment of chemotherapy induced peripheral neuropathy with the interim results due in the second quarter. Management says it has enough cash to get it into the first quarter of 2024. GHS Capital has reduced its stake to below 3%.
Motor dealer Pendragon (PDG) says fourth quarter trading is slightly ahead of expectations and this has offset inflationary pressures. Underlying full year pre-tax profit should be more than £57m, down from £83m for the previous year. Net debt is around £23m. There continue to be constraints in the supply of new vehicles.
One Heritage Group (OHG) expects a further impairment charge of between £750,000 and £1.25m. Martin Crews is being replaced as development director by Paul Westhead on an interim basis. The major shareholder loan facility has been raised from £9.5m to £11m.
Mode Global Holdings (MODE) is winding down its operations because it was unable to raise the cash it required to grow the business.
Andrew Hore
Quoted Micro 2 January 2022
AQUIS STOCK EXCHANGE
Invinity Energy Systems (IES) says that 2023 revenues will be better than expected because of the order inflow in recent months and delayed contracts. The 2023 forecast was raised from £20.6m to £23.7 in September. The battery storage technology developer will still make a significant loss even with higher revenues.
Oberon Investments Group (OBE) reported a decline in interim revenues from £3.45m to £2.64m. Corporate broking revenues fell by one-third to £1.03m, although the number of clients increased from 15 to 22. Funds under management rose above £1bn, although investment management revenues also declined. The group moved from profit to a £1.7m loss as additional staff were taken on in corporate broking and investment management. There was net cash of £2.3m at the end of September 2022. The launch of an EIS fund and other new products should boost longer-term revenues.
Supported housing operator Walls & Futures REIT (WAFR) interim loss fell from £201,000 to £37,000, although there was a small increase if exceptional charges are excluded. NAV was 0.5% lower at 97.5p a share at the end of September 2022. There was cash of £829,000. The weaker residential market is helping with the search for suitable sites.
Looking Glass Labs Ltd (NFTX), which operates Web3 platforms for immersive metaverse environments and blockchain, has progressed with the development of its Pocket Dimension metaverse offering. Carl Chow has stepped down from the board and Lucas Russell has replaced him.
Tectonic Gold (TTAU) reported an increased loss of £311,000 in the year to June 2022, while there was a £270,000 cash outflow from operating activities. There was £403,000 in the bank at the end of June 2022, with net cash of £232,000.
Cadence Minerals (KDNC) has completed the pre-feasibility study for the Amapa Iron Ore and an announcement is expected in early 2023. Investee company Evergreen Lithium is awaiting final regulatory approval to join the ASX.
AQRU (AQRU) has invested £2.3m in Streaks Gaming, which is planning to join the standard list on 5 January. Streaks Gaming is creating a global conversational gaming platform.
IamFire (FIRE) has subscribed for a further £500,000 of WeShop convertible loan notes. The conversion price is 200p a share.
Gowin New Energy (GWIN) has borrowed £50,000 from its chief executive.
Geremy Thomas is no longer an executive at Goodbody Health Ltd (GBDY), although he remains as chairman. Anne Tew is stepping down as finance boss, although she will cover the role until a replacement is appointed.
AIM
Nexus Infrastructure (NEXS) is selling its utility connections and charging infrastructure businesses to FitzWalter Capital for £77.7m. That is more than the market capitalisation before the announcement. This is the highest it has been since June. TriConnex and eSmart Networks were the parts of the group with the best growth prospects and Nexus Infrastructure is left with civil engineering business Tamdown, where margins are recovering. In 2021-22, revenues were £98.4m and the operating profit was £2.3m. There will be £10m of disposal proceeds retained for working capital and the £65m left after costs will be distributed to shareholders.
Trading in digital media company Catenae Innovation (CTEA) shares has recommenced after it published its 2020-21 accounts and interims to March 2022. There was a £993,000 cash outflow from operations last year and that was reduced to £283,000 in the latest interims. There was cash of £337,000 and no debt at the end of March 2022. A £250,000 interest-free loan facility has been secured from Sanderson Capital and £125,000 has been drawn down. Shares and warrants will be issued to Sanderson Capital at 0.235p each.
NetScientific (NSCI) investee company PDS Biotech (NASDAQ: PDSB) has revealed median overall survival of 21 months in a phase II study for a PDS0101-based triple combination therapy for advanced HPV+ cancer patients. This is a better outcome than for current treatments. The PDS share price rose on the news and even though it has fallen back it has still risen by around one-third this week. NetScientific’s 4.7% stake is worth around £13.8m.
Catalyst Media Group (CMX) trebled its net assets after unwinding a previous write-down. A 20.5% shareholding in horseracing broadcaster Sports Information Services (SIS) is the only significant asset that Catalyst Media has, and it is valued at £35.4m. That is after a write-back of a previous impairment charge of £23.4m. NAV is £35.5m, or 168.9p a share. Catalyst Media has announced a 3.3p a share dividend.
Cannabis-based medicines developer Celadon Pharmaceuticals (CEL) says its pain clinic subsidiary LVL Health has completed the feasibility study of its non-cancer chronic pain clinical trial. The results are described as positive. The results have been submitted to the research ethics committee, which will make a decision on a larger clinical trial involving up to 5,000 patients. A trial has already been conditionally approved by the MHRA.
Barkby Group (BARK) has increased the debt facility provided by Tarncourt Properties, a company controlled by the family of Barkby chairman Charles Dickson, from £5m to £12m and it expires at the end of June 2024. Net debt was £7.7m on 2 July 2022. There is effectively £7m of cash available at the end of 2022. Net liabilities are £7.7m. Non-core assets are up for sale. The focus will be property and pubs.
Tekcapital (TEK) investee company Innovative Eyewear has signed a global licensing agreement for the outdoor brand Eddie Bauer for smart eyewear.
Allergy Therapeutics (AGY) says that its accounts will not be published by the end of 2022, so trading in the shares will be suspended on 3 January. The audit has been delayed, but there is no indication of any material problem. Management is still assessing funding options. Annual results for Kazera Global (KZG) will not be published until February, so trading in the shares will also be suspended on 3 January.
MAIN MARKET
Gresham Technologies (GHT) software Clareti Connect has won a new $1.3m contract over five years with an existing banking client. The software will replace FIX processing infrastructure and there will be additional recurring usage fees.
Standard list shell Stranger Holdings (STHP) had net debt of £761,000 at the end of September 2022. Due diligence continues on the potential acquisition of mineral rights in Africa.
Andrew Hore
