Home » Posts tagged 'mcc'
Tag Archives: mcc
This month marks the 22nd anniversary of the launch of NEX Exchange, although it was then originally called Ofex. A number of companies have gone on to bigger things, including Genus, which is in the FTSE250 index and accesso Technology, which is one of the top 50 companies on AIM. Further information can be found at http://www.hubinvest.com/AIMPDFOctober2017_97.pdf
MetalNRG (MNRG) has applied for two cobalt licences at Palomino and north Palomino in Western Australia but a rival has applied for the latter licence. There has also been interest from potential acquirers of this interest. A report has been received about the company’s US cobalt interests and this is being reviewed. A potential uranium project has been brought to the company and it is considering the opportunity.
Indigo Holdings (INGO) has invested £10,000 in 3sootjobs, a job search platform in Iran, giving it a 1.53% stake. Turquoise, which owns 32.1% of Indigo, and related parties, including Indigo directors, own around two-thirds of 3sootjobs.
Ecovista (EVTP) has bought a 80% stake in a company that owns a four bedroom property near Stanstead and it has paid £10,000 for an option on the next door property. The properties cover 1.72 acres.
Parcel delivery company DX (Group (DX.) is raising £24m from an issue of convertible loan notes. The conversion price will be 10p a share and the interest rate 8%. There is potential to issue a further £2m of loan notes. Lloyd Dunn has been appointed as chief executive but he is not on the board. Along with three directors, he is subscribing for £5.25m of loan notes.
Angle (AGL) has further positive indications of the effectiveness of its Parsortix liquid biopsy technology and it has also raised a further £2.8m, taking the total raised at 37.5p a share to £15m. Heinrich Heine University researchers has been able to able to continue to grow circulating tumour cells harvested using a Parsortix device.
Fashion retailer Quiz (QUIZ) performed strongly in the first half and online sales have increased to one-quarter of the total. This was before the launch of a website focused on Spain and there are plans for other international websites. The UK stores grew sales by 15%. Overall revenues were 35% ahead at £56.1m.
Orogen (ORE) is acquiring Thread 35 Ltd and changing its name to Sosandar (SOS), which is the acquisition’s online womenswear brand. The brand was launched on 19 September 2016 by the founders of fashion magazine Look and is aimed at the affluent professional woman. Orogen is paying £6.3m in cash and shares for the acquisition. Ten Orogen shares are being consolidated into one new share. A placing at 15.1p a share will raise £4.8m net to cover the cash portion of the acquisition cost.
Toilet tissue supplier Accrol Group Holdings (ACRL) expects to pay between£550,000 and £2.9m and because of its guilty plea the amount will be discounted by one-third. The figure will be announced early next year. Talks continue with major shareholders and the bank.
Wynnstay Group (WYN) has appointed administrators to Just for pets and 18 of the stores have been sold to PSR Ltd. The other seven have been closed. The loss-making pet products retailer had net assets of £2.2m.
Crop enhancement products supplier Plant Impact (PIM) increased its full year revenues by 17% to £8.5m even though sales in Brazil were disappointing. Higher research and development spending meant that there was a £3m loss. There was £7.2m in the bank at the end of July 2017. Plant Impact is moving into new geographic markets as well as building share in its existing markets.
Motor dealer Vertu Motors (VTU) intends to use some of its cash to buy back up to £3m worth of shares. There was net cash of £20.8m at the end of August 2017. Interim revenues were flat at £1.45bn buy underlying pre-tax profit was 7% higher at £20.9m.
Patrick O’Sullivan, who failed to gain a board seat at Conroy Gold and Natural Resources (CGNR), has reduced his stake in the Irish gold explorer to three million shares (24.6%). Conroy was awarded costs of the court proceedings made by Patrick O’Sullivan and the level is still to be assessed. Conroy has decided to cancel its quotation on the Dublin-based Enterprise Securities Market on 6 November. Conroy will still be quoted on AIM so shareholder approval is not required. Andrea Gonella currently owns less than 3% of Conroy, having owned more than 6% in July. Conroy has raised €240,000 via a €0.30 a share placing and a further €167,000 was raised from warrants taken up by directors Professor Richard Conroy and Maureen Jones.
Digital Barriers (DGB) has decided to sell its video business for up to £27.5m. It will concentrate on its Thruvision people screening business.
InterQuest Group (ITQ) has appointed Allenby as its nominated adviser and Peterhouse as its broker so trading in the shares has recommenced. Chisbridge Ltd ended up with 58.3% of InterQuest after its bid. It still wants to ditch the AIM quotation and it can buy shares in the market in order to increase the stake.
Patient monitoring device developer LiDCO (LID) has gained its first long-term high use programme contract with a US customer but that did not contribute in the first half. In the six months to July 2017, revenues were 4% higher at £3.9m and the loss was £1m. That was due to higher sales and marketing costs without the benefits of higher sales yet showing through.
1Spatial (SPA) has sold its non-core assets so that it can focus on geospatial data. There is particular potential in the US market. Although interim revenues were flat at £12.1m but a greater proportion were from the geospatial business. The operating loss was reduced from £1.9m to £1.2m and the cash outflow in the period was minimal. Claire Milverton has been confirmed as chief executive.
Two graphene-related companies are raising cash. Applied Graphene (AGM) has raised £9m at 36p a share and existing shareholders are being given the chance to subscribe for up to £1m via a one-for-eight open offer. There was £4.7m in the bank at the end of July 2017. The cash is being used to finance joint development activity for the strategic ink programme, which uses 2D inkjet printing to deliver graphene-based inks. Other potential uses are also being explored. Haydale Graphene Industries (HAYD) is raising £10m via a placing and offer at 120p a share, which was a 32% discount to the market price. Haydale recently changed broker to Arden. The cash will be used to provide working capital for existing orders and to develop new uses for graphene, including cookware.
SaaS-based accounting software supplier FreeAgent Holdings (FREE) says that it generated interim revenues of £4.6m, compared with £3.6m. There was a smaller first half loss and had net cash of £3.4m at the end of September 2017.
Top level domain names owner and distributor Minds + Machines (MMX) has received approval from the authorities in China to sell .law, .work, .beer and the Chinese equivalent of .shopping. Four more extensions are going through the approvals progress. So far, revenues from China for .vip have been a significant contributor to group revenues.
A consortium led by former chief executive Peter Earl is in early discussions with Rurelec (RUR) about a bid that could be backed by Rurelec’s joint venture Patagonia Energy Ltd.
An application to enable Redx Pharma (REDX) to get back control of its main subsidiary will be heard on 26 October. If approved, the subsidiary will come out of administration and the suspension of trading in Redx shares could be lifted.
Realm Therapeutics (RLM) has completed the £19.3m placing at 29p a unit (one unit is one share and a warrant for 0.4 of a share). The warrants provide an opportunity to subscribe for a share at 58p each. The initial focus of the cash will be the treatments PR022 for atopic dermatitis and PR013 for allergic conjunctivitis. There are also plans for a phase II trial for the PR023 treatment for acne vulgaris.
PipeHawk (PIP) has sold its 28.4% stake in south east England-based survey practice SUMO Ltd to its own executive chairman Gordon Watt for £197,499. That is the equivalent of the investment in loss-making SUMO and is more than its value in the books.
Dr Cliff Holloway has been appointed as chief executive of Scancell Holdings (SCLP) and he will push forward the immunotherapy platforms being developed by the company. His predecessor Dr Richard Goodfellow is remaining on the board. Scancell had £2.67m in the bank at the end of April 2017, which was less than the cash outflow in the previous 12 months.
Ashanti Gold Corp says that the Anumso gold project, where Goldplat (GDP) is earning up to 75% through a $3m investment in exploration, has broader and new mineralised zones. Soil sampling has produced good results and suggests high gold recovery rates.
Former AIM company Zenith Hygiene has agreed a cash bid from BCPE Diamond UK. The deal values Zenith at £100m, based on its enterprise value, although the final amount depends on performance.
Cash shell J2 Acquisition Ltd (JTWO) commenced trading on the standard list on 10 October, having raised $1.25bn. The shell is seeking a company with a strong market share and proven track record. If an acquisition is not made within two years, shareholder approval will be required for a further 12 months of operation.
Levrett (LVRT) has completed the acquisition of Nuformix Ltd for £12m in shares at 4p each and it has changed its name to Nuformix. A further £2.3m has been raised at 4p a share. Trading will recommence on 16 September.
Sealand Capital Galaxy (SCGL) has signed a memorandum of understanding with AIM-quoted MySQUAR (MYSQ) that will enable the two companies to distribute each other’s mobile games.
Monchhichi (MCC) still intends to follow Pembridge Resources (PERE) from AIM to the standard list but the move has been delayed until mid-November. This will follow shareholder approval for the €10m investment in artificial intelligence, machine learning and behavioural data science company Sentiance and the approval of the prospectus by the UKLA. Sentiance lost more than €2m on revenues of €1.4m in 2016.
WideCells Group (WDC) plans to launch its CellPlan insurance for stem cell treatment in Spain before the end of the year. A partner has been secured for the expansion of stem cell services in the Middle East, north Africa and Asia Pacific. White Apex General Trading will be exclusive strategic partner for three years.
Investment vehicle Indigo Holdings (INGO) is seeking acquisitions in the consumer, financial and technology sectors in the Middle East and it joined NEX on 10 February. An initial 15 million shares were issued at 1p each and in January a further 26.5 million shares were placed at 3p each. The market capitalisation is £1.24m at 3p a share. There was net cash of £818,000 at the time of flotation. Indigo can issue a further 218.5 million shares. There has been one trade of 4,000 shares at 5p each but the bid/offer spread is 3p/5p.
Equatorial Mining & Exploration (EM.P) has signed a conditional option agreement to acquire a Mexican mining and exploration project. The option lasts 90 days and the acquisition will be funded by the issue of £10.4m worth of shares. Equatorial will need to raise at least £2m to finance the Tango project which includes copper, gold and molybdenum interests. This is an area with historic workings. An initial fundraising of £250,000 at 0.00125p a share will finance the current interests in Nigeria. There are plans to consolidate the Equatorial shares on the basis of 0ne new share for 650 shares and then switch to a standard listing.
A new investment in blockchain technology company Factom Inc means that the stake owned by investment company Coinsilium Group Ltd (COIN) has increased by 236.5% since the initial investment. The 1.5678% stake in the developer of audit and accountability tools using blockchain technology is valued at $473,000.
Western Selection (WESP) says that its NAV has increased by 6% to 84p a share in the six months to December 2016 but this had increased to 91p a share by the end of January. Gains have been made on the disposal of shares in Swallowfield (SWL) with some of the cash used to buy shares in Bilby (BILB), which has been hit by a profit warning. The interim dividend has been increased from 1.05p a share to 1.1p a share.
Milamber Ventures (MLVP) has removed Barney Battles from the board but he wants to convene a general meeting to get himself reappointed to the board. Milamber says that there are concerns about the League of Angels business that he sold to the company.
African Potash Ltd (AFPO) has raised £126,000 at 0.045p a share and issued 55.2 million shares to pay liabilities. The new shares account for 22.7% of the enlarged share capital.
FT8 (GFT) is still trying to secure payments from Billyst Holdings, which has defaulted on its agreement to provide monthly payments. This means that FT8 is short of cash.
Staunton Holdings Ltd has launched a recommended offer of 300p a share for FIH Group (FIH). The deal values the Falkland Islands trader and transportation company at £37.1m. The bidder is controlled by The Rowland Purpose Trust 2001he bid is at a significant premium to the market price prior to the announcement but it is below the level of the share price two years ago. FIH has net cash of nearly £10m. The bid values FIH at 15 times 2015-16 earnings but profit is likely to fall this year making the prospective rating 26 times. When the interim figures were published in November, house broker WH Ireland estimated a sum of the parts valuation of 320p a share but this was subsequently reduced to 300p a share.
Ascent Resources (AST) launched a £3m fundraising via PrimaryBid.com, which closed at 5pm on Sunday 12 January. The offer at 1.85p a share is underwritten. The cash will be spent on the Petisovci project in Slovenia, where there has been positive news on flow rates at Pg-10. Ascent has risen money via PrimaryBid.com a number of times in the past.
Strategic Minerals (SML) has exercised the option to take a 50% stake in the Redmoor tin/tungsten project in Cornwall. The £844,000 payment to take the stake to 50% will provide the joint venture with funds for the 2017 drilling programme. The rights to sell the stockpile of magnetite from the Cobre mine in New Mexico have been renewed for a further 12 months to the end of February 2018 and there is still a possibility to come to agreement over a contract lasting a number of years, which would provide more certainty about future revenues. Strategic Minerals moved into profit in 2016 thanks to strong sales of magnetite and it has enough cash to push ahead with the development of its other interests. Strategic Minerals is also interested in the CARE nickel project in Australia.
Billington (BILN) has confirmed that its 2016 figures will be in line with expectations, which ended had been increased by 26% over the past year. A pre-tax profit of £3.5m is forecast. The structural steel supplier will publish the figures on 21 March.
Thor Mining (THR) says that it should receive the final payment for the disposal of its Spring Hill gold project before the end of February. Heavy snow has delayed the commencement of drilling at Pilot Mountain. The cash received will help to finance the drilling.
TechFinancials Inc (TECH) says that its 2016 figures will be better than expected but the loss of a client (24Option.com) will hit the 2017 figures. The client will end the agreement on 1 April. The 2016 EBITDA of $2.8m is well above the forecast of $1.6m. However, any dividend will be put off until there is more clarity about future trading.
Spend management platform developer blur Group (BLUR) has signed up the first large customer for its 12 month group buyer plan. The subscription is paid upfront which is good for blur’s cash flow. The attraction is the potential cost savings by the customer, which is a law firm, and it could be followed by other large customers signing up for the package which provides access to 65,000 suppliers and covers up to $2m of purchases in a year. There is a higher subscription rate for annual purchases of more than $2m. By focusing on larger customers blur has been able to reduce costs and it has been jettisoning unprofitable small customers. Cash burn has been reduced in each of the past five quarters and 2017 will see the full benefits of the cost cutting. The costs in the fourth quarter of 2016 were 43% down on the fourth quarter of 2016. There was £2m in the bank at the end of 2016. This will not last long if the cash burn is not reduced further.
Monchhichi (MCC), formerly Mercom Capital, is raising £2.1m at 35p a share in order to finance the company’s new investing policy focused on technology, media and internet sectors. Each of the new shares comes with a warrant that is exercisable at 80p a share. Shares have been issued at 40p each to cover £200,000 of professional fees.
Crystal Amber Fund Ltd (CRS) has increased its stake in medical devices developer GI Dyamics Inc from 22.65% to 38.73%. Other shareholders in the developer of the EndoBarrier minimally invasive device for treating type 2 diabetes and obesity, include Johnson & Johnson. EndoBarrier is in use in Europe and other countries outside of the EU but an FDA trial was terminated. More than 3,500 patients have been treated through the placing of a temporary bypass sleeve in the intestine – equivalent to a gastric bypass–type treatment. Although GI is based in Boston, Massachusetts but it is quoted on the ASX. The share price has slumped since GI joined the ASX in 2011 and Crystal Amber believes that this is an opportunity to invest in a treatment for significant clinical need at a depressed valuation.
Pebble Beach Systems (PEB), or Vislink as it was known up until the beginning of February, has warned that its 2016 figures will be even worse than expected. The poor performance of the former Vislink hardware activities is not great surprise and the additional write-offs were obviously required given the price it was sold for. However, the remaining software business has also disappointed, although order levels have been good. That suggests a better 2017. Debt remains high and the £8m deferred payment due in mid-March is important if Pebble Beach is to have anything like a stable financial position. Kestrel still believes in the business and it has taken its stake to 14.4%.
React Energy has changed its name to EQTEC (EQT) following the issue of shares to EBIOSS Energy taking its stake to 51%. The share issue covers the €5.15m debt that was due from 50.02%-owned subsidiary Newry Biomass. The 5.53p issue price was a premium to the market price at the time the deal was announced but it subsequently rose above the issue price. Newry should be on course to produce electricity by March 2018. The main revenue generating asset is a wind turbine in County Cork.
Mattioli Woods (MTW) has acquired a 49% stake in profitable small company-focused fund manager Amati Global Investors for £3.33m in cash and shares and has an option, lasting two years from February 2019, to buy the other 51% for cash and shares. The wealth management and employee benefits business reported interim earnings per share nearly one-quarter higher at 11.7p and an interim dividend per share 22% higher at 4.7p. Net cash was £22.6m at the end of November 2016.
PowerHouse Energy Group (PHE) has signed a memorandum of understanding with Peel Environmental to develop and operate an energy from waste plant at Peel subsidiary Protos’ Chester facility. This would be PowerHouse’s first commercial project and Peel has a number of other potential sites if this is successful. The deal is a positive result of the previously announced joint development agreement with Waste2Tricity.
Former Hydro International boss Michael Jennings has taken over as interim chief executive of Autins Group (AUTG). Jennings has been appointed for six months following the departure of the previous chief executive of the acoustic and thermal insulation supplier. The strategy is to take Autins products into new sectors so that it is not so dependent on a limited number of automotive customers. Earlier in the month, a major customer reduced orders leading to a profit warning.
A slow build-up of occupancy levels at the new Holland Park site meant that hostels operator Safestay (SSTY) performed disappointingly last year. Even so, EBITDA increased from £600,000 to £2.2m.
Botswana Diamonds (BOD) has entered into an option to acquire kimberlite projects in South Africa. Botswana Diamonds has the option to acquire a 72% interest in the projects in return for £942,000 in cash and 100 million shares. This is payable in stages. An exclusivity and option fee of £122,000 is payable equally in cash and shares at 1.9p each. Then £215,000 has to be spent on exploration in 12 months to earn a 15% stake and then a further £215,000 in the next 12 months to take the stake to 40%. There is then nine days in which to issue 96.8 million shares and pay £300,000 of shareholder loans in order to reach 72%. The main asset is the Frishgewaagt project in Limpopo province and there are nine other prospecting rights.
Connemara Mining Company (CON) has confirmed the presence of lead, zinc and silver within a 2 metre wide bed at the former silver mine at Glentogher in Donegal but there are no signs of gold. Connemara Mining had previously found gold 8km away and the structural model will have to be revised. Teck has spent enough on exploration to take its stake in the Oldcastle block on the Cavan/Meath border to 65%. The latest drill hole has found trace mineralisation (zinc and lead).
Savannah Resources (SAV) says that initial metallurgical results suggest that there should by 90% plus recoveries at the Oman copper gold project.
BATM Advanced Communications Ltd (BVC) is paying £580,000 to buy Zer Laboratories, the largest private diagnostics laboratory in Israel. Zer’s expertise fits well with BATM’s move into non-invasive pre-natal tests. In 2015, Zer made a profit of $27,000 on revenues of $2.4m. There are potential deferred payments dependent on sales increases.
PRE-IPO / OTHER TRADING FACILITIES
Integumen, which bought the Innovenn healthcare product development business of Venn Life Sciences (VENN), is raising £2.16m ahead of a flotation. EIS relief is available for this investment. The offer equates to 23.6% of the enlarged share capital. Integumen has made three other acquisitions and its interests include skincare, wound care and oral care. It also includes the Labskin product developed by AIM-quoted Evocutis before it was sold to Venn. The offer is available via the Crowd for Angels crowdfunding site (www.crowdforangels.com/integumen)
Former GXG-quoted company US Oil & Gas is trying to raise up to £2.18m via a ten-for-63 open offer at 27p a share. A placing has already raised £470,000 at the same price. Revised resource estimates in the area of the Eblana#1 well in Nevada show a 20% recovery factor suggesting a low case of 57 million recoverable barrels of oil and a best case of 207 million recoverable barrels of oil.
ISDX / NEX
Diversified Gas & Oil (DOIL) has offered to repurchase its bonds for 105p each or, if the bondholders are outside of the US, they can receive ordinary shares at a discount of 20% to the AIM placing price. The AIM flotation has been delayed until late January and Diversified Gas & Oil plans to raise $40m – it had previously been $40m. The closing date for the offers is 13 January. This means that bondholders will receive interest until the end of 2016. So far, holders of 74% of the bonds have opted for the cash alternative and 1% the share alternative.
Western Selection (WESP) has increased its stake in AIM-quoted Bilby, following a profit warning and accounting adjustment announcement by the gas and electrical installation services provider. Western Selection bought 62,192 shares at 51.18p each, taking the stake to 6.04%. There is still £451,000 in the bank
Netalogue Technologies (NTLP) slipped into loss in the six months to September 2016. Revenues slumped from £552,000 to £317,000 and the ecommerce technology developer swung from a profit of £38,000 to a loss of £232,000. There is still £451,000 in the bank despite a cash outflow. Andrew Robathan has been appointed as chief executive. Deal activity has picked up but markets’ are still uncertain and business may take longer to come through than in the past.
Chinese medicines supplier MiLOC Group Ltd (ML.P) has extended its agreement with its skincare products distributor in Taiwan. The agreement will continue until the end of March 2017. The launch of a range of hair care products. Has been delayed until April. MiLOC has paid the first instalment of £320,513 as part of the endorsement agreement with BrandKing, while the same amount is payable by April.
Forbes Ventures (FOR) has taken an option over a potential investment in Primus Care (www.primuscareplc.com), which manages residential care services for children and the elderly. Forbes has the right to acquire £500,000 of convertible loan notes with a conversion price of 0.3p a share, lasting 18 months. The option expires on 30 December 2016.
CyberOwl, a spin-off from Crossword Cybersecurity (CCS), has raised an additional £510,000. The cash will fund further development of an early warning system for network security for uses such as the internet of things.
The award for the latest pre-Christmas warning announcement goes to TLA Worldwide (TLA). The sports agent and marketing business sneakily put out its announcement at 6.26pm on 23 December, having sadly been denied the chance to put it out on Christmas Eve because that is a Saturday. Poor ticket sales for the Australian 2016 International Champions Cup football tournament in July means that the agreement to promote the tournament has been ended. There is talk of another football event to replace this. Second half trading in the US sports management business was not as good as expected. This means that EBITDA will be 15% below previous expectations. That appears to mean that it will be lower than last year. The fact that, in September, the bid from AAPC fell through because it found it difficult to raise money, is less surprising given the trading. That bid cost the company $1m.
Kuala Lumpur Kepong has allowed its bid for MP Evans (MPE) to lapse after it receives acceptances equivalent to 13.2% of the oil palm plantations operator.
Price volatility in the energy trading market has made the autumn a tough trading period for Good Energy (GOOD) and it means that 2016 figures will be at the bottom end of market expectations. Trading has been more favourable in the past couple of weeks. Good Energy is recycling the investment in its 5MW solar site in Dorset, which is being sold to Eneco UK for £5.78m, while retaining an option over the power generated. There will be a disposal gain of more than £340,000, which will be recognised in 2017. The cash will fund further solar sites prior to the end of March, after which the current renewable obligation certificate subsidy will no longer be available.
Facilities management and security services provider Mortice Ltd (MORT) is raising £2.3m at 75p a share to help it to reduce dependence on working capital facilities. Some of these facilities have an annual interest rate of more than 9%. Mortice intends to spend more on the marketing of its Soteria remote surveillance services. First half revenues of $80m have been generated, with more than doubled facilities management revenues thanks to the UK business.
Italy-based PR firm SEC Group (SECG) is acquiring 60% of Martis Consulting for around €1m. Poland-based Martis provides public and corporate affairs services and the latest annual revenues were €1.69m and a pre-tax profit of €286,000. SEC is only acquiring the relevant assets and management will own the other 40%, while having the option to exchange these shares for shares in SEC.
Biopharmaceutical products and services developer and provider Abzena (ABZA) has signed a licence agreement with start-up immunomodulatory oncolytic viruses treatments developer Trieza Therapeutics Inc. The exclusive worldwide licence is for an undisclosed antibody sequence that Trieza wants to use with its own viral vector technology to develop oncology treatments. If the development is successful then up to $35m of milestone payments could be generated on top of any royalties from commercial sales. Abzena made an interim loss of £4.27m. Net debt was £9.38m at the end of September 2016.
Share (SHRE) has sold a further 40,000 shares in the London Stock Exchange and raised £1.12m. This takes the money raised from disposals in recent weeks to £1.66m. Share retains 60,000 shares in London Stock Exchange. Share has taken on up to 8,700 customer with more than £200m under management from Invesco Perpetual – which had not previously been named when the deal was announced. These are mainly ISA accounts.
Simon Fry, Jean-Pascal Tranie and Felipe Simonsen have joined the board of investment company Mercom Capital (MCC) and John Zorbas, Patrick Cross and Kyle Appleby have sold their shares and stepped down from the board. The exiting directors sold their shares at 20p each and returned 2p a share to the company. There are plans for Mercom to raise £3m at 30p a share and issue a warrant with each share that is exercisable at 80p a share for 180 days after issue. Existing shareholders will be issued one warrant, on the same terms, for every four shares they own. The placing price is much higher than that suggested in the initial proposals. This depends on resolutions being passed at the AGM in early January. The new investing strategy is to invest in established technology and media businesses. The name will be changed to Monchhichi.
Learning management systems provider NetDimensions (Holdings) Ltd (NETD) says that 2016 revenues will be at least $26m, up from $25.4m, and EBITDA will be $2m, compared with a loss of $500,000 in 2015. Bid discussions are continuing.
Redcentric (RCN) has reported interim figures which should show a real picture of the company‘s position. Internal systems are being improved and this will continue well into 2017. In the six months to September 2016, revenues edged up 2% to £53m, while there was a turnaround from a loss of £2.5m to a profit of £300,000. There was £7.29m generated from operations during the period and £5m came from the disposal of network assets. Net debt was £34.4m at the end of September 2016. Richard Griffiths and Kestrel have been picking up shares in the market.
NWF (NWF) has warned that a weak first quarter means that the interim figures will be lower than the same time last year but the full year outcome is still expected to be in line with expectations. Demand for feed has weakened at a time when ingredient costs have increased, while the fuel division has been hit by warm weather. The food distribution activities The interim figures will be published on 31 January.
Vislink (VLK) will seek shareholder approval for the disposal of its hardware division on 9 January. The acquirer xG Technology Inc will then seek to finalise the funding of the $16m (£13m) acquisition. If the disposal is completed early in 2017, then the forecast earnings per share will reduce from 1.3p a share to 1.2p a share. Trading in the fourth quarter of 2016 has benefited from the normal seasonal uplift but a £1.2m full year underlying loss is still expected. An additional £5.3m write-down will be required to bring down the book valuation of the hardware division. This appears to indicate a group NAV of around £16m., while net debt will be more than £10m
Diversis has posted the offer document for ServicePower Technologies (SVR). Diversis is offering 6p a share, which values ServicePower at £13.7m.
Collagen Solutions (COS) grew its interim revenues by 30% to £1.89m, but the loss quintupled to £418,000. Additional staff have been taken on and more spent on marketing and R&D. There was still £1.66m in the bank at the end of September 2016. House broker Cenkos expects net cash of £230,000 at the end of March 2017, while net debt is forecast at £3m one year later.
Standard list shell Papillon Holdings (PPHP) has come to an agreement with main shareholders and directors to acquire Myclubbetting.com Ltd, where golfer Lee Westwood is a shareholder and ex-England manager Sam Allardyce was a shareholder – he said in August that he was giving up his shares (https://www.thesun.co.uk/sport/1611113/sam-allardyce-drops-footie-betting-job-and-ditches-shares-after-sun-probe-finds-boss-lost-investors-4m/). The target is run by Neil Riches who used to run Worldlink, which was introduced to the standard list on 24 November 2011 at a notional valuation of £55m (at 250p a share), although it never got near that valuation when trading commenced. Worldlink was a mobile applications developer that had a similar business to Myclubbetting.com but fewer than two years later it was in liquidation. In August, The Sun said that Neil Riches claimed Myclubbetting.com would float on the Scandinavian First North market at a valuation of £75m. There is still due diligence and other matters to complete before the deal goes ahead. Papillon floated on 24 June and raised £824,000 at 1p a share.
World Trade Systems (WTS) is aiming to relist on the standard list in the first quarter of 2017 and additional funds will be raised at that time. This follows the establishment of Shimao (Suzhou) Biotechnology, which plans to sell healthcare products to consumers. Net liabilities were £1.12m at the end of June 2016. The loans from Kudrow totalling £800,000 are repayable by the end of July 2017 or when trading in the shares recommences and have a 5% interest charge. Trading in the shares has been suspended for more than eight years.
Aircraft leasing company Avation (AVAP) has acquired and delivered a new Airbus A321-200 to Vietjet, taking the number delivered to six. Avation has also sold its remaining five Fokker aircraft. WH Ireland forecasts a full year profit of $21.5m.
House broker Daniel Stewart expects energy efficiency and home automation products supplier Sandal (SAND) to move into profit this year. In the year to May 2016, Sandal made a loss of £268,000 on revenues of £3.3m and this year the profit is forecast to be £105,000. The Energenie energy efficiency and home control products are expected to nearly double their sales to £1.4m this year and then double them again next year. The revenues of connectors business PowerConnections are expected to be flat.
Rail safety products developer Wheelsure Holdings (WHLP) plans to raise £106,000 at 1p a share and chief executive Gerhard Dodl says he will acquire some of the shares. The cash will be used for working capital.
Mechan Controls (MECP) says that it is still investigating the possible disposal of some of its business and it has received further approaches from potential buyers, including approaches from management teams of some of the subsidiaries. The offers do not appear to be high enough to provide the exit price wanted by the Mechan board. Mechan has gained shareholder approval to buy back up to 10% of its share capital.
Wealth management adviser Asia Wealth Group Holdings (AWLP) is talking to a number of potential acquisitions. In the six months to August 2016, revenues improved from $578,000 to $601,000 and the loss was halved to $11,000, helped by lower expenses. There was a $91,000 cash inflow in the six month period. There is nearly $1.4m in the bank.
EPE Special Opportunities (ESO/EO.P) will be left with a 24.3% stake in LED lighting products and wiring accessories supplier Luceco following its flotation on the Main Market. EPE sold shares worth £38m and had £10m of loans repaid. The cash will be The share price has risen from 130p to 148p. The stake is valued at £57.8m and this is still more than two-fifths of EPE‘s gross asset value.
Vislink (VLK) is selling its original core business to a former AIM-quoted company with an even worse track record. Vislink hopes to complete the $16m sale of the loss-making broadcast and surveillance hardware business to xG Technology Inc by the end of the year. It appears that xG Technology will have to raise cash in order to fund the acquisition. xG Technology left AIM at the end of 2013 after seven years on the junior market when it failed to build up significant revenues from the technology it had developed. The buyer has recently bought another business, which is much smaller than the Vislink business but the acquisition will undoubtedly form the core of the enlarged business. The Vislink hardware business was in the books at £22.7m, before central net liabilities, at the end of June 2016 – nearly £30m lower than six months before thanks to losses and write-downs. That is still well below the stated disposal price. Vislink had net assets of £22.9m at the end of June 2016. Executive chairman John Hawkins was appointed to the board on 1 April 2011 and net assets were £47m at the end of June 2011. There have been further share issues since then. If the disposal does go ahead then Vislink will be left with its profitable broadcast software business and have minimal debt.
Lok’nStore (LOK) has grown its underlying NAV by 28% to 386p a share thanks to the continued investment in the portfolio of self storage sites and strong trading. This year the valuer was changed to Jones Lang LaSalle. Supply is limited compared with the demand for self storage. Occupancy rates increased by 2% last year and prices also increased. There are plans for a further four sites – two managed stores and two owned in Gillingham and Wellingborough – over the next year or so, at a cost of £10m, while the recently opened Chichester, Bristol and Southampton sites are still building up their occupancy. There was also a much better contribution from document storage after a few years of flat performances.
Trading continues to improve at security and facilities management services provider Mortice (MORT). Interim revenues are expected to be 57% ahead at around $80m through a combination of acquisitive and organic growth. The fastest growth has been in facilities management where revenues have more than doubled thanks to the UK business with more to come due to recent contract wins. The Indian operations also continue to grow. This means that Mortice is on course to grow full year revenues from $133.5m to $170m, which should enable pre-tax profit to rise from $2.4m to $4.2m.
Core infection control products have grown fast enough to more than offset a continued decline in older product sales by Tristel (TSTL). In the year to June 2016, revenues grew 12% to £17.1m. Overseas revenues grew by more than one-fifth and they account for nearly two-fifths of group revenues. North America remains a major potential market and the first FDA approvals for products should be next year. There will be additional regulatory costs this year. House broker finnCap forecasts a rise in pre-tax profit from £3.3m to £3.6m.
BP Marsh & Partners (BPM) increased its NAV from 243p a share to 253p a share in the six months to July 2016. There is £7.9m of cash available for new investments after taking account of commitments to existing investee companies. The investment company has plenty of opportunities in the insurance broking and related markets but it is very careful when making a new investment.
Gold producer Orosur Mining Inc (OMI) has reduced its cash operating costs to $693/ounce in the three months to August 2016, which is well below expectations and the figure of $954/ounce in the corresponding period in the previous financial year. This cost reduction was helped by the mining of higher grades and costs will rise in the second quarter. The price received for gold sold was also higher but year-on-year production fell from 12,471 ounces to 9,950 ounces so revenues fell from $14.5m to $12.7m. Even so, Orosur moved from a loss to a profit of $2.76m and there was a $4.8m cash inflow from operations. Net cash was $4.7m at the end of August 2016. Orosur expects to produce between 35,000 and 40,000 ounces of gold and cash operating costs are expected to be between $800/ounce and $900/ounce. Orosur is capitalised at less than £19m.
Kyrgyz Republic-focused Chaarat Gold Holdings Ltd (CGH) has rejected a bid approach, which was at a 30% premium to the then market price. That suggests a bid of 11p a share or more. The bankable feasibility study for the Tulkubash heap leach project.
Prospex Oil and Gas (PXOG) has received government approval to drill the Boleslaw-1 well in the Kolo licence area in Poland and this should happen before the end of the year. The final application for the drilling permit has to be submitted. Well pad construction should begin early in November. The intial target has been identified as having potential for near-term production. Prospex owns 49% of the company that owns the Kolo licence.
Premier African Minerals (PREM) has bought a 4.5% stake in Casa Mining, which in turn owns 71.25% of the Misisi gold project in the Democratic Republic of Congo. For $250,000. This was funded by a £300,000 placing at 0.32p a share. Premier could add a further 30% stake. Premier also owns 2% of Circum Minerals, which expects to be awarded a mining licence for its Danakil potash project in Ethiopia by the end of this year. Morgan Stanley is assessing ways of moving the project forward, including a strategic partner or flotation.
More good news for Thor Mining (THOR) about the Molyhil project. The assay results have confirmed elevated levels of tungsten. More drilling is planned on the three targets that have been identified.
Starcom (STAR) has raised £300,000 for working capital after a $100,000 loan facility failed to be secured. The share placing was at 2.5p a share. The previous placing in March raised £450,000 at 1.5p a share. The cash is needed because some payments will not be received until early next year. There was recently a judgement against a subsidiary and two of the Starcom directors in the ongoing litigation brought by Top-Alpha Capital, although Starcom believes this could be overturned by a higher court. Starcom should at least meet the expectation of improved revenues in 2016.
Investment company Mercom Capital (MCC) is pending £600,000 on a 16% stake in Mexican fintech company Mobile Wireless and Satellite SAPI (MOWISAT). The strategy is to offer lending, payments and e-commerce services to unbanked people as a mobile virtual network operator. There are 109 million mobile users in Mexico and the vast majority are on prepay packages. Meanwhile, Mercom’s 10.2% shareholder Calvet International plans to requisition a general meeting at Mercom to propose board changes and a change in strategy.
Standard list shell Mila Resources (MILA) is seeking to acquire an interest in a resources project, most likely in emerging markets. The ideal target would involve a project that is already well down the line and would benefit from a cash injection to move it towards production. Mila has around £1m in the bank after the costs of the flotation. The share price has risen from 5p to 8.25p in the fortnight since it floated.
McCarthy & Stone MCC is yet another housebuilder hoping that the warning signs of a pending slowdown in the housing market can be ignored and, like all the others it seems to be living in the hope that good times can and will go on for ever. For the year to the 31st August, its first as a public company, it enjoyed robust growth, with a revenue rise of 31%, legal completions up by 20% and £52m cash in the bank at the year end. It credits its success on its continued focus on operational excellence and concentrating its efforts on the demand for retirement homes. Its net average selling price rose by 8% because of what it claims was increased quality.
That is now history and the future presents a more gloomy prospect.
The order book is down some 12% on a year ago. Incentives are back and you have not heard much of those in the house building industry for many a year but in recent weeks their use has become necessary to ensure that the volume growth target can be met. Since the company’s last update as recently as the 29th June, weakness in the secondary housing market has become apparent. Perhaps worst of all, cancellations have risen and there is now a fear that continued market weakness could lead to a failure by the company to achieve its 15% planned growth target.
Eckoh plc ECK has been forced to issue a surprise profit warning as management appears to have bitten off more than it can chew, with the disastrous acquisition of Product Support Solutions which has a significant presence in the US and which has suffered from cost over runs on a large, complex, fixed price contract which is expected to lead to losses of £700,000 for that division alone. PSS is now to be closed down and as it was acquired less than a year ago in November 2015, questions must be raised about the effectiveness of Ecko’s management at the time and the due diligence it performed on PSS. Perhaps not surprisingly, today’s update remains silent on the point.
To add to the damage Eckoh has changed its pricing formula thereby leading to a fall in short and medium term margins. The result of all this, is that pre tax profits for the current year will be below market expectations and probably in line with last years results.
Ryanair RYA happily announces that its great success continues, with August traffic up by 11% or 16% on an annual rolling basis. Load factor again rose, by 1% and customers will be pleased to know that average fares over the next 6 months are expected to fall by some 10 – 12%