Home » Posts tagged 'lsai'

Tag Archives: lsai

Andrew Hore – Quoted Micro 28 June 2021

AQUIS STOCK EXCHANGE

Good Energy (GOOD) says it is perming better this year than in the same period last year which included the start of the lockdown. Forward buying has improved margins. The smart meter rollout is accelerating.

Dispersion Holdings (DEFI) has invested C$200,000 at 18 cents a share in Defi Yield Technologies Inc. This gives it a 3.5% shareholding in the company that is developing a platform for decentralised financial services.

Altona Rare Earths (ANR) has raised £178,000 at 12p a share, which was a premium to the market price. Altona subsequently acquired up to 70% of the Monte Muambe rare earths project. It will take a 1% stake on signing the deal and increase it to 20% in phase 1 when £40,000 in cash is paid and one million shares are issued. In order to take a 70% stake a total of £240,000 in cash will be paid and three million Altona shares have to be issued. On top of this there are minimum expenditure commitments over three phases of the project.

Rogue Baron (SHNJ) says its bar in Washington DC increased sales by 38% to $225,000 in the three months to May 2021 even though capacity has halved. Trading in the shares has started on OTCQB.

Tectonic Gold (TTAU) is preparing to drill the Specimen Hill project in Queensland. There have been positive results from sampling and the structural modelling of the site has been completed.

Capital for Colleagues (CFCP) had net assets of 64.06p a share at the end of May 2021. It sold his investment in Anthesis Consulting for £1.15m during the period. There was cash of £2.65m at the end of May 2021.

DiscovOre (ORE) is changing its name to Oscillate. and it will focus on the medical psychedelic industry. This includes treatments for drug-resistant depression, anxiety, addiction and post-traumatic stress disorder.

Ananda Developments (ANA) expects to begin construction of a research facility in July. Strains of medicinal cannabis have been selected for research. Liberty Herbal Technologies has received a US patent for its vaping device.

CBD products supplier Sativa Wellness Group Inc (SWEL) has opened its 40th testing clinic for travellers and has introduced blood testing for Covid-19 immune response through some clinics. The clinics will be listed on the NHS Patient Access service.

Valereum Blockchain (VLRM) has raised £1m at 70p a share.

Virgata Services has extended its offer for Walls & Futures REIT (WAFR).

Tim and Charlotte Syder have increased their stake in Newbury Racecourse (NYR) from 4.5% to 8.7% and they appear to have been bought from Andy and Judith Stewart.

AIM

Printed circuit technology developer and supplier Trackwise Designs (TWD) has disappointed the market due to electric vehicle contract delays. Interim revenues more than doubled from £2.91m to £6.07m thanks to the initial contribution from Stevenage Circuits. A pre-tax profit of £200,000 in 2019 was turned into a loss of £400,000. There is currently net cash of £2.87m. The new factory should open later in the year.

Demand for Accoya wood continues to be strong, but Accsys Technologies (AXS) will not be able to increase production capacity until a new reactor is installed in the Netherlands later in the year to March 2022. In 2020-21, Accsys moved into profit and cash generation improved. A decision is awaited about how Accsys will make progress with the Hull Tricoya plant, where the contractor has resigned. Cash was raised in May to finance the US joint venture, but more cash may be required.

First Property (FPO) had to reduce the valuations of its owned Polish properties last year and that hit net assets. Management says that some of that valuation reduction should be reversed following a restructuring of the finance lease on one of the properties. NAV fell 22% to 42.8p a share at the end of March 2021 and it could improve to 48.8p next March. Loan to value is 45.3%. There is no final dividend.

In 2020, Dekel Agri-Vision (DKL) reported revenues of €22.5m and a reduced loss. The palm oil supplier will benefit from the higher palm oil price this year, enabling it to move into profit. The cashew plant will also make a contribution.

Musical instruments retailer Gear4Music (G4M) performed strongly last year, and revenues improved from £120.3m to £157.5m, while pre-tax profit jumped from £3.1m to £14.6m. This year will be tough, though. Pre-tax profit is forecast to fall back to £7.5m even though current trading is better than expected. The company has started buying existing brands. Premier is a drums brand and Eden is a bass amp supplier. Further acquisitions are likely.

Packaging manufacturer Robinson (RBN) says that revenues in the first five months of 2021 are 17% ahead of the same time last year. This is mainly due to an initial contribution from the Schela acquisition and passing on raw material costs – volumes are 1% ahead.

Jade Road Investments (JADE) had a net asset value of 67p a share at the end of 2020. There was an improved valuation of quarry company Future Metal Holdings. The three-year mining licence has been renewed and an independent assessment of the business will be published later this year.

Tristel (TSTL) has gained approval for foam-based surface disinfectant Jet from the EPA in the US. This will enable approvals to be sought with individual states. Tristel Duo, the disinfectant for ultrasound devices, has been approved in Canada and South Korea.

Vector Capital (VCAP) has raised £1.5m at 47p a share and this will be used for marketing and increasing the loan book. The cash raised at the end of 2020 has been deployed.

Location Sciences (LSAI) has given 12 months notice to its chief executive and finance director. They are continuing to work in the business.

MAIN MARKET

Nottinghamshire-based construction and infrastructure services provider NMCN (NMCN) has secured a highly dilutive rescue fundraising after falling into financial difficulties The company continues to lose money and the terms reflect the dire financial position. A £14m subscription is proposed, with a up to £5m more to come from an open offer. There is also a £10m convertible bridging loan – convertible at 20p a share and with fees and interest it equates to 62.4 million shares. Svella, which is run by former Stobart boss Andrew Tinkler, will subscribe for up to £7.4m of the subscription shares and provide the loan.

Fasteners supplier Trifast (TRI) reported slightly better than expected 2020-21 figures. Industrial activity is recovering. This year pre-tax profit is expected to improve from £11m to £12.9m.

Tirupati Graphite (TGR) has increased sales of its graphite products CarboflameX and GrafEN 45545 with trial and sample orders received. Land has been secured for a dedicated product development facility.

Cizzle Biotechnology (CIZ) has signed a deal to develop a companion diagnostic with St George Street Capital for certain of its potential autoimmune treatment assets that it has licensed. This deal takes Cizzle into a new area, but lung cancer remains the focus.

Zegona Communications (ZEG) is paying an interim divided of 2.6p a share. That is based on the dividend from Euskaltel and does not reflect the proceeds from the telecoms company’s takeover.

Andrew Hore

Andrew Hore – Quoted Micro 4 February 2019

NEX EXCHANGE

Property investor Ace Liberty and Stone (ALSP) increased its rental income by one-third to £1.95m in the six months to October 2018. Profit from continuing operations improved from £218,000 to £271,000 and a dividend of 0.83p a share has been announced. Four properties have been purchased since April 2018 and Hume House was sold.

Capital for Colleagues (CFCP) increased its NAV from 42.69p a share to 43.35p a share in the year to August 2018. The strategic focus is to make larger investments in bigger employee-owned businesses. There was £175,000 in the bank at the end of August 2018, so there appear to be limited funds available for further investments, although there are £1.3m of loans to investee companies.

Health and community care properties developer and modular buildings supplier Ashley House (ASH) was hit by delays in projects planned by its Morgan Ashley joint venture in the six months to October 2018. Only one scheme reached financial close during the period and a loss was reported for the period. Modular buildings demand is strong with a good pipeline of potential projects. A profit is still expected for the 14 months to June 2019, but this still depends on the timing of projects.

Hydro Hotel, Eastbourne (HYDP) increased its full year profit from £127,000 to £153,000 on turnover 4% higher at £3.66m. There is £1.09m in the bank at the end of October 2018. The dividend was maintained at 21p a share, which is covered 1.2 times by earnings. The strategy is to encourage more direct bookings with the hotel and an online booking system was launched last September. The completion of refurbishment activities has enabled an increase in bookings for weddings. Bedroom refurbishments continue.

Formation Group (FRM) reported an improvement in revenues from £37m to £38.6m in the year to August 2018, but the operating loss nearly quadrupled to £416,000. There was a gain on financial asset of £450,000 and an exceptional cost of £318,000 relating to an accident in 2015. Management is cautious about taking on new property developments under the current economic conditions.

Karoo Energy (KEP) is still trying to raise cash to enable it to move to AIM. Management is confident that it will be able to raise the funds in the near future.

Formerly AIM-quoted Altona Energy (ANR) did not managed to obtain a replacement nominated adviser for Northland and it has moved to NEX on 1 February. Sino-Aus Energy Group is subscribing for £500,000 of 7% convertible loan notes July 2020. The conversion price depends on the market price in the 2o days prior to conversion although the minimum is 10p a share.

Sport Capital Group (SCG) has appointed Epsion Capital to help it raise up to £20m from a share issue at a price of at least 0.5p a share. There will be a warrant issued with every four shares. A circular is being prepared to gain shareholder approval. Early Equity (EEQP) has raised £187,500 at 0.75p a share.

Ananda Developments (ANA) says that 15%-owned LHT has launched its hapac medicinal cannabis inhaling technology in Milan, Italy. The initial reaction has been positive.

VI Mining (VIM) has completed the acquisition of the Cushuro gold project for $27.5m in shares.

Nuclear notes linked to guaranteed contingent value rights relating to the takeover of British Energy will mature and stop being traded on 7 February.

Dealings in the shares of Wheelsure (WHLP) and Ecovista (EVTP) have been suspended because they have not published their results for the year to August 2018.

AIM  

Recruitment and training company Staffline (STAF) has delayed the publishing of its accounts because of concerns about invoicing. Trading in the shares has been suspended.

Electronic and battery products supplier Solid State (SOLI) says trading is significantly better than previously expected. Gross margins are continuing to improve. finnCap upgraded its 2018-19 earnings per share forecast by 26% and the 2019-20 figure by 21%.

Filtronic (FTC) fell into loss in the first half even before the write-off of £500,000 of capitalised development costs. Massive MIMO antennas sales will not build up as quickly as initially expected. There is £2.2m in the bank so the antennas and telecoms hardware supplier has a strong cash position while it waits for orders to come through. There is expected to be a full year loss but cash should still be £1.8m. A focus on defence and public safety markets will help to diversify the customer base and provide new opportunities.

A court has ordered Grant Thornton to pay £21m relating to its failures in the auditing of AssetCo (ASTO) accounts in the financial years to March 2009 and March 2010. AssetCo had been seeking £40m from Grant Thornton and there is still interest to be calculated on the award.

Location Sciences (LSAI) says that 2018 trading was in line with expectations and 2019 has started well. There has been a soft launch of the Verify product that ensures that responses to advertising from mobiles are genuine. Paid for trials in the US will provide further evidence of effectiveness.

Begbies Traynor (BEG) has acquired Manchester-based Croft Transport Planning and Design, which provides highways and traffic advice to property developers, for an initial £1.5m in cash and shares. This widens the range of services offered by the property services division.

Utilitywise (UTW) has not published its accounts and trading in the shares has been suspended. The utility cost management consultancy has also effectively put itself up for sale as part of its strategic review. This was sparked by the failure to raise cash required from a share issue. The £25m bank facility expires in April.

MAIN MARKET  

BATM Advanced Communications (BVC) has secured an investment of up to $30m to fund the commercialisation of molecular biology products being developed by Ador Diagnostics, a joint venture with Gamida for Life, that is valued at $30m prior to the investment. The first $14.5m should be invested by the end of March and the rest will be invested at a 33.3% premium to the enterprise valuation after the initial investment by the end of 2020. Most of the cash will come from medical sector investors and Puma Brandenburg. BATM and Gamida will each invest $2m and after the initial investment BATM will own 38.2% of the company. Shore Capital will reinvest its total fees of $1m into Ador.

Rainbow Rare Earths (RBW) is obtaining a $750,000 convertible security investment and a 24 month equity facility of up to $7m from an entity managed by The Lind Partners, which will get an initial commitment fee of $75,000. Between $100,000 and $300,000 can be drawn down each month. The shares will be issued at prices that are linked to market prices at the time. Rare earths production at the Gakara project in Burundi is expected to build up over 2019 as two further areas are opened up. Production costs were higher than sales revenues in the three months to December 2018.

Sportech (SPO) has acquired digital gaming technology business LOT.TO Systems, which has developed the iLottery platform.

Path Investments (PATH) has sold its Turkish oil and gas interests for £400,000. The focus is the acquisition of ARC Marlborough. The plan is to acquire ARC, which has a nickel and cobalt project in Queensland, via a share issue.

Dukemount Capital (DKE) has agreed a forward funding and assignment of the contract of the Wavertree property in Liverpool. This is the second project that has reached this stage. Dukemount will continue to manage the redevelopment of the property and a development profit will be received on completion. Executive chairman Geoffrey Dart has been awarded a bonus of £80,000 for the completion of the first two transactions and it will be received in shares at 0.3p each.

Andrew Hore

Andrew Hore – Quoted Micro 10 September 2018

NEX EXCHANGE        

Ananda Developments (ANA) is acquiring 15% of UK-based Liberty Herbal Technologies Ltd, which is the owner and developer of hapac, a technology for vaping cannabis. The investment cost £460,000 and Ananda has the right of first refusal for any further fundraisings in the next two years. The technology can be used to provide a measured medicinal dose. A commercial launch is planned in Italy before the end of the year and in Canada next year. Ananda is holding a general meeting to extend its geographical focus to the UK and Italy.

Chapel Down Group (CDGP) is leasing 388 acres of land adjoining its existing vineyards on the North Downs. This site will be vined between 2019 and 2021 and with the rest of the land that has already been planted it will be the largest vineyard in England.

DagangHalal (DGHL) intends to leave NEX after less than three years on the market. Trading in the shares has been limited but this is not surprising given the problems the company has had. Shareholders owning 84.7% of the company are in favour of the withdrawal from NEX and this will happen on 1 October.

Trading in Etaireia (ETIP) shares was suspended because the annual report for the year to March 2018 was not published by the end of August. The results were released on 5 September and trading was restored. The loss was increased from £622,000 to £857,000, following a £434,000 write down on the value of land at Dalry. The NAV was £1.81m at the end of March 2018.

Milamber Ventures (MLVP) remains suspended with full year results due to be published by the middle of September. The audit of Essential Learning still needs to be completed.

Hot Rocks Investments (HRIP) had nearly £17,000 in the bank at the end of March 2018. The NAV was £722,000. The majority of the loss of £219,000 in the year was due to share-based payments. Hot Rocks has a stake in Minergy Ltd, which has floated on the Botswana Stock Exchange and has been granted a mining licence for the Masama coal project. Production could start by next February. Another investee company, Block Energy (BLOK) has floated on AIM and more than two million shares have been acquired in standard list flotation Predator Oil and Gas.

Ecovista (EVTP) has raised £550,000 from a convertible loan note issue, which has to be repaid or converted (at 0.0005p a share) by the end of August 2019.

AIM  

Bilby (BILB) founder Phil Copolo and his son Leigh have left the board of the building and gas maintenance services provider and sold more than 31% of the company to institutional investors at a discount of around 6% to the then market price. Janet Copolo still owns 7.2% of Bilby and cannot sell until 3 September 2019, according to an agreement with Stanford Capital Partners, which was sole book runner of the placing. Miton has increased its stake from 15.1% to 19.8%, while MI Discretionary Fund has bought 8.19% and Ruffer has acquired 8%.

TLA Worldwide (TLA) published its latest profit warning at 10.35am on 4 September. At least it was while the markets were still trading rather than after they had closed for Christmas. Numis has had enough and resigned as nominated adviser. Trading is weak and TLA is set to breach banking covenants. TLA needs to raise cash.

Microsaic Systems (MSYS) is still building he base from which it can grow over the next few years. The interim figures do not reflect the progress that is being made. Revenues doubled from a low base, but higher costs meant that there was a flat loss of £1.5m. There is £6.96m in the bank at the end of June 2018 so the mass spectrometry technology developer has plenty of time to build up its revenues. The venture with a global bioprocessing partner is progressing and is in an integration phase. Commercialisation should be completed by early 2020. New agreements with two manufacturers and four distributors augur well for growth over the next 18 months. The target is revenues of more than £17m in 2022.

A full first half contribution from the Carlton acquisition helped Michelmersh Brick (MBH) to increase interim revenues by 43% to £23.1m and underlying pre-tax profit by 57% to £3.8m. The interim dividend has been raised by 51% to 1.06p a share. Demand for bricks remains strong and there is limited production capacity.

Tax Systems (TAX) continues to reduce its net debt, putting it in a good position to make further acquisitions. Net debt was reduced by 15% to £17.5m over a six month period. Interim revenues grew by 14% to £8m and order intake is 22% higher. The corporation tax software provider is broadening its range of software in order to make the most of the move to a digital tax system in the UK.

Filtration systems supplier Amiad Water Systems (AFS) grew its interim profit even though growth in revenues was modest. Stifel Nicolaus expects a stronger second half with full year revenues improving from $112.3m to $116.8m and then a further acceleration in growth to $123.4m. Although underlying pre-tax profit is expected to be flat at $5.1m, it is forecast to jump to $6.8m in 2019. A jump in 2018 dividend to 6.5p a share is forecast, despite relatively flat earnings per share. The dividend would still be more than twice covered.

Performance-based mobile marketing services provider Taptica International Ltd (TAP) continues to grow internationally and, via a combination of acquisitions and organic growth, interim revenues were 119% higher at $144m. Underlying pre-tax profit improved from $12.3m to $18m. An interim dividend of 3.98 cents a share is being paid.  Net cash was $42.1m at the end of June 2018.

Mobile location data services provider Location Sciences (LSAI) increased revenues from £49,000 to £234,000 in the first half of 2018 but there is a lot more to come. New products have been launched and it will take time for them to make a significant contribution. Even so, 2018 revenues of £702,000 are forecast, rising to £2.2m in 2019. The loss will reduce but a profit is not forecast until 2020. There was £720,000 in the bank at the end of June 2018 and more funding will be required to achieve the expected growth in sales.

Finsbury Food (FIF) is acquiring Free From bakery manufacturer Ultrapharm for an initial £17m with more dependent on performance. The business made a pre-tax profit of £800,000 in 2017. The acquisition is earnings enhancing.

Safestyle UK (SFE) has settled litigation with former employees who set up in competition. They will change their brand name from SafeGlaze and promise not to use confidential information.

IFA Lighthouse (LGT) continues to prosper. Interim revenues were 5% ahead at £26.9m and pre-tax profit 12% higher at £1.26m. Net cash was £9.6m.  and the interim dividend is two-thirds higher at 0.2p a share. Growth has been coming from the affinity business.

MAIN MARKET  

Commercial aircraft lessor Avation (AVAP) reported a 16% increase in revenues to $109.1m in the year to June 2018.  However, pre-tax profit dipped by 6% due to a gain on aircraft sales in the corresponding period. The dividend was increased by one-fifth to 7.25 cents a share. The NAV was equivalent to 283p a share. Cannacord Genuity forecasts a rise in pre-tax profit from $18.9m to $23.8m this year.

Dukemount Capital (DKE) has entered into a 50/50 joint venture with Rascasse Developments in order to expand into the Midlands.

Kavango Resources (KAV) has received a permit for an airborne electromagnetic geophysical survey of the Kalahari Suture Zone area, which covers 12 prospecting licences.

Haynes Publishing (HYNS) increased full year revenues by 13% to £33.8m and underlying pre-tax profit by a similar percentage to £2.9m. The total dividend is unchanged at 7.5p a share. Net cash was £2.5m at the end of May 2018. Growth in the sales of digital products is faster than the decline in other revenues.

Andrew Hore

I would like to receive Brand Communications updates and news...
Free Stock Updates & News
I agree to have my personal information transfered to MailChimp ( more information )
Join over 3.000 visitors who are receiving our newsletter and learn how to optimize your blog for search engines, find free traffic, and monetize your website.
We hate spam. Your email address will not be sold or shared with anyone else.