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Quoted Micro 24 October 2022

AQUIS STOCK EXCHANGE

Chapel Down Group (CDGP) had a bumper grape crop in terms of quality and yield. Chapel Down has 750 acres of vines and the harvest was more than 2,000 tonnes, up from 1,400 tonnes last year, with a particularly good crop for sparkling wines. The English sparkling wine market grew by 29% in 2021More than two million bottles of many types of wine can be made from the harvest. A further 38 acres of vines were planted this year with 118 acres planned. More land is being sought. Management wants to double the size of the business by 2026.

Property investor Ace Liberty & Stone (ALSP) launched an open offer to raise £4.56m at 25p a share, which is a big discount to the market price. The share price fell 25.8% to 47.5p. The open offer closes on 14 November and enables existing shareholders to finance the strategy to buy additional properties. Management believes that economic uncertainty will provide opportunities to acquire high yielding properties.

Ananda Developments (ANA) has changed the acquisition terms for the 50% not owned in DJT Plants. The purchase price has been cut from £7.3m to £3.2m, which is payable in shares at 0.925p a share giving the seller Anglia Salads 29.9% of the enlarged share capital. That is double the current share price. The chairman’s £2.3m loan to Ananda will be swapped for convertible loan notes and warrants. DJT is analysing its 2022 field trial crops to determine the amounts of cannabinoids and terpenes contained in the cannabis flowers. This will help the company to decide which cultivars to use. There are international growers interested in purchasing seeds from DJT.

Love Hemp (LIFE) says it will sell all LH Botanicals products and LH Botanicals Ltd, which is owned by Love Hemp chief executive Tony Calamita, does not sell these products and has never traded. An application has been filed to strike the company off the company register.

Hydrogen Utopia International (HUI) has secured a convertible loan facility with Conrad Griffiths, owner of 9.45% of the company. The €650,000 facility is interest free until the beginning of 2023 when the annual interest charge is 5%. The repayment date is 31 December 2025. The conversion price is 20p – based on the exchange rate of €1.14/£.

Invinity Energy Systems (IES) has secured the sales contract for a 10MWh VS3 flow battery system for a solar microgrid in southern California.

Goodbody Health Ltd (GDBY) has signed an agreement with Allied Pharmacies that will add 17 clinics to its network offering diagnostic testing and adds services such as ear wax micro suction.

SulNOx Group (SNOX) has signed up South Africa-based bus company Lowveld Bus Service, which will use SulNOxEco fuel conditioner in its fleet of more than 170 buses.

VVV Resources (LON: VVV) has appointed Jim Williams as an executive director. He was previously a chief executive of AIM-quoted Arian Silver Corporation, which is now known as Alien Metals (UFO). David Rigoll and Simon Clarke have left the board.

Chris Akers has upped his stake in Quetzal Capital (QTZ) from 22% to 23.4%. Investee company Tap Global has added GBPT stablecoin to its cryptocurrency trading platform.

Harry Hyman has increased his stake in Oberon Investments Group (OBE) from 3.08% to 4.15%. Phoenix Asset Management Partners has taken a 16.5% stake in Silverwood Brands (SLWD).

AIM

Semiconductors designer EnSilica (ENSI) generated more than 50% of its revenues from its design and supply division for the first time last year. Revenues increased from £8.61m to £15.3m with design and supply’s contribution jumping from £2.82m to £8.02m. This is down to contracts starting to move from the design to supply stage. A loss was turned into a pre-exceptional profit of £165,000. That is before R&D tax credits of £683,000. EnSilica capitalised £2.2m of development spending last year.

Latest new AIM admission Sondrel (SND) raised £20m at 55p a share and the price rose to 58p in early dealings. The semiconductor designer will spend the money on employing more engineers and accelerate sales. There are more than £300m of revenue opportunities for designing semiconductors. If selected, Sondrel can expect to supply the semiconductor for five years plus. The medium-term target revenues are in excess of £100m.

Revolution Bars (RBG) is acquiring Peach Pubs for £16.5m. Peach Pubs has 21 food-led pubs in the south of England and the Midlands. There should be £1.5m of cost savings from combining the businesses at a minimal cost, but they will not be fully achieved until 2024-25. finnCap has adjusted its 2022-23 forecast for Revolution Bars due to higher energy costs, so the earnings estimate has been reduced by 69% to 0.5p.

Affimer technology developer Avacta (AVCT) is acquiring in vitro diagnostics distributor Launch Diagnostics for £24m, plus up to £13m in performance related earn outs. This acquisition is part of the strategy to build up a European distribution business. Kent-based Launch Diagnostics is a profitable business that supplies diagnostic reagents and instrumentation for pathology applications. A placing at 95p a share will raise £7m and a three-for-365 open offer could raise up to £2m more. A £55m convertible bond issued at 95% of par could raise £52.5m and it is convertible at a 25% premium to the 95p a share placing price.

Gear4Music (G4M) edged up interim revenues by 2% with the growth coming from Europe and the rest of the world. The musical instruments retailer is upgrading its websites and trading is improving, although gross margins are lower.

Tatton Asset Management (TAM) generated inflows of £907m in the six months to September 2022. Assets under management have reached £11.3bn, with a further £1bn of assets under influence. There was an 11% improvement in earnings to 9.8p a share and the interim dividend 10% ahead at 4.4p a share. Inflows are expected to slow and full year expectations have been trimmed, but earnings should improve from 18.6p a share to 19.8p a share.

Logistics Development Group (LDG) has raised its stake in cakes maker Finsbury Food (FIF) from 4.4% to 6.77%. A further £4.17 has been invested at an average of 81p a share. The previous investment was at 69.5p a share, which was just above the low for 2022. Richard Griffiths increased his stake in Logistics Development Group from 7.04% to 8.71%. Logistics Development Group should have received more than £31m for its stake in CareTech.

Learning and development products and services provider Mind Gym (MIND) generated interim revenues 11% ahead at £26.8m with the majority coming from the US. Net cash is £4.5m. The interims will be published on 2 December. A full year pre-tax profit of £2.87m is forecast.

Advanced Oncotherapy (AVO) has raised £6m at 25p a share from Odey Asset Management. The subscription was at a 12% premium to the market price.

Mattress supplier eve Sleep (EVE) has appointed an administrator.

Anthony Laiker has left the Vela Technologies (VELA) board and sold his 6% stake. He was reappointed to the board in July having been a director between 2013 and 2020.

MAIN MARKET

Kitchenware retailer ProCook Group (PROC) says revenues continued to decline in the second quarter, but the rate slowed and there has been growth in early October. Freight costs are falling offsetting the change in exchange rates. Fackelmann Gmbh owns a 9% stake.

LED lighting and wiring accessories supplier Luceco (LUCE) says destocking has happened faster than expected, so the 2022 profit outcome will be lower than anticipated. Underlying operating profit is expected to be £20m-£22m in 2022. Net debt was £46.5m at the end of September 2022.

Carclo (CAR) says interim sales were ahead of the same period last year and slightly better than expectations. However, operating profit is slightly lower than previously. The life sciences division has grown even though two product launches were delayed. There was also increased demand from the aerospace sector.

Motor dealer Lookers (LOOK) outperformed the UK car market in the third quarter and pre-tax guidance has been increased to no less than £75m. Last year’s pre-tax profit was £90.7m, but that benefited from government assistance and a strong used vehicle market. However, a lack of available new cars to sell is holding back the performance of all motor dealers.

An administrator has been appointed to Toople (TOOP) after it failed to secure financing for a proposed acquisition.

Andrew Hore

Quoted Micro 17 October 2022

AQUIS STOCK EXCHANGE

Invinity Energy Systems (IES) is having a good week. Early in the week it announced a sale of a a 0.8MWh Invinity VS3 flow battery system to Equans Belux and then it won a California Energy Commission project as part of a consortium developing a large solar-plus-storage microgrid. Invinity Energy Systems will provide a 10MWh vanadium flow battery system. Delivery is expected in 2023. There is also a new relationship with US Vanadium, which could lead to a joint venture.

Vulcan Industries (VULC) is acquiring Peregrine X, which has developed diagnostic technology and the initial market will be oil well-head analysis. There are also medical uses. The initial consideration will be £1m of zero-coupon convertible loan notes with a further four tranches of £1m depending on progress. The total number of loan notes would be converted int a 46.2% stake in the company. The seller will also receive 500 million warrants exercisable at 1p a share. They will also receive 70% of post-tax earnings generated by Peregrine up until 2,000 tests have been contracted and 200 delivered. There are currently no revenues. This deal marks a move away from the engineering sector.

British Honey Company (BHC) has launched a strategic review of the business and sources of finance. A sale of the company is an alternative. Management expects to publish its 2021 results and 2022 interims before the end of October. More cash is required for working capital by the end of November.

Consumer businesses operator Silverwood Brands (SLWD) has announced a loss of £300,000 for the period to August 2022. The UK consumer market is tough and Silverwood is trying to increase its sales overseas.

Semper Fortis Esprit (SEMP) has ended all its contracts with esports players, and it is seeking other ways to exploit the market.

Capital for Colleagues (CFCP) has sold its holding of A shares in Hire and Supplies Ltd for £970,000 and reinvested £1.21m in new ordinary shares, giving it a 20.8% stake.

Hydrogen Utopia International (HUI) has signed a memorandum of understanding with Poland-based Elkard in relation to a plastic waste processing plant producing energy. They will start looking for a suitable site and the two companies will share the costs.

Arbuthnot Banking Group (ARBB) has completed the sale of Arbuthnot Latham’s West End office. The offer was previously indicated as £60m. Chairman and chief executive Sir Henry Angest bought 25,000 shares at 820p each.

Igraine (KING) has bought a 10.2% stake in Oscillate (MUSH) and its executive director Stephen Winfield has joined the Oscillate board.

MiLOC Group Ltd (ML.P) has raised nearly £40,000 at 20p a share. BWA Holdings (BWAP) has been unable to raise up to £500,000 via share issue and it may have to sell assets or issue more loan notes. A holder of £516,000 of RentGuarrantor Holdings (RGG) loan notes has converted them into 312,495 shares, which is just short of 3% of the enlarged share capital.

EPE Special Opportunities Ltd (EO.P) had net assets of 242.3p a share at the end of September 2022.

Valereum (VLRM) has appointed First Sentinel Corporate Finance as corporate adviser.

AIM

Energy and water efficiency equipment provider Eneraqua Technologies (ETP) grew its interim revenues from a combination of organic growth and a contribution from recent acquisition Welltherm, which provides drilling services for heat pump installation. Revenues were 92% higher at £24.2m, while underlying pre-tax profit was £3m. Full year expectations are covered by contracted orders as are nearly three-quarters of next year’s forecast revenues. A full year pre-tax profit of £10.6m is forecast. There are plans to move into the consumer market, but that will not make a meaningful contribution until next year – although there will be £500,000 of marketing costs.

Drug developer Evgen (EVG) is partnering with Swiss biotech Stalicia for the potential use of SFX-01 for the treatment of autism spectrum disorder and other CNS disorders. This deal could generate up to $160.5m in milestone payments and double-digit royalties, although that is a long way away. The upfront payment is $500,000 with a further $500,000 once a volunteer study is completed in the first half of 2023. If the FDA approves an investigational new drug admission that will spark a $5m payment – possibly next year. Evgen is also undertaking an additional early-stage study for the treatment of glioblastoma using SFX-01.

Interior design and furnishings supplier Sanderson Design Group (SDG) improved its interim profit, but trading was weaker in August. In the six months to July 2022, revenues edged up by 0.7% to £57.9m, although that does reflect the ending of business in Russia. Underlying pre-tax profit improved from £5.6m to £6.3m, helped by additional high margin licence fee income. The interim dividend is maintained at 0.75p a share.

Faron Pharmaceuticals (FARN) completed a placing raising €8.4m at €1.85 each. The cash will be used for the acceleration of the bexmarilimab, which is an immunotherapy treatment for difficult-to-treat cancers, clinical development programme and manufacturing.

Data analysis software provider WANdisco (WAND) has generated bookings of $61.2m so far this year with the majority coming in the third quarter. This is already higher than expectations for the full year and there is more to come. There was $26.3m in the bank at the end of September 2022, helped by upfront cash payments on contracts. Losses continue, though.

Property lending platform operator Lendinvest (LINV) reported platform assets under management one-third higher at £2.4bn, but finnCap has downgraded its full year forecast. Interest rate volatility is hampering margins. Chief executive Rod Lockhart bought 27,111 shares at 67.5p each and the chief investment officer bought 60,000 shares at 63.75p each.

Coral Products (CRU) has acquired Ecodeck Grids, which supplies building and landscape products for driveways and shed bases. There is an initial payment of £3.35m in cash and shares, with up to £1.25m more potentially payable. The products use 100% recycled plastic.

Beeks Financial Cloud (BKS) reported an improvement in full year underlying pre-tax profit from £1.6m to £2.1m. It is forecast to increase to £3.2m this year.

Sierra Oncology Inc is returning the rights to SRA737, which was jointly developed by Sareum Holdings (SAR) and the Institute of Cancer Research, to the CRT Pioneer Fund.

Investment publisher Bonhill (BONH) has commenced a strategic review that could lead to the sale of the company or separate businesses. Trading remains difficult and shareholder Rockwood Strategic (RKW) is providing a £800,000 loan facility.

MAIN MARKET

OTAQ (OTAQ) is raising £2m via a placing at 4p a share, while a four-for-five open offer could raise up to £1.2m more. It is also moving from the standard list to the Access segment of the Aquis Stock Exchange. There is also a broker option that could raise up to £400,000 if there is enough demand. In order to raise the cash, the nominal value of the shares is being reduced from 15p to 1p. Every four new shares taken up will come with a warrant exercisable at 12p. The fundraising is dependent on shareholders agreeing the move to Aquis, which is planned for 9 November. In aquaculture, OTAQ has developed sonar technology that scans shrimps, live plankton analysis systems and water quality monitoring software. The geotracking operations have developed a rail personnel and asset safety and sports trackers.

Raj Unnikandeth is stepping down as a director of Zamaz (ZAMZ) six weeks after it floated. Zamaz believes that its technology platform can help to efficiently build brands via e-commerce. Earlier in the week, Zamaz acquired 70% of Italy-based food and wine retailer Eccellenze through its existing food platform subsidiary Bella Dispensa. This follows the purchase of Italian meat products supplier Ecocarni.

HeiQ (HEIQ) has filed a complaint in the US against ICP Industrial Inc for breaching exclusive agreement terms. The agreement relates to the use of HeiQ Viroblock in printing processes. ICP has failed to pay royalties or minimum fee payments, as well as not providing timely reports.

Andrew Hore

Quoted Micro 27 June 2022

good,

AQUIS STOCK EXCHANGE

Resolutions 8-12 were not passed at the Good Energy (GOOD) AGM, which were mainly enabling the company to issue new shares or buy back existing shares. Resolution 12 would have amended the articles of association to permit hybrid meetings.

Cadence Minerals (KDNC) has agreed to sell its 30% working interest in the Yangibana project tenements for £5.1m in shares of the ASX-listed operator Hastings Technology Metals. Cadence reported an outflow of cash from operating activities of £751,000 in 2021, down from £1.36m the previous year.

Blockchain and cryptocurrency investor Coinsilium Group Ltd (COIN) increased 2021 revenues by 130% to £530,000. Net fair value loss on financial assets was £407,000, compared with a gain of £566,000, but realised gains increased from £199,000 to £1.52m. Overall pre-tax profit fell from £310,000 to £14,000. There is £1.51m in the bank at the end of 2021, while NAV is £5.84m. Coinsilium has entered a simple agreement for future tokens (SAFT) with potential Latin America- focused blockchain gaming hub GGs.io for $100,000 of its future tokens and is a strategic adviser.

Pluto Digital has repaid the loan, plus interest, of £5.18m owed to NFT Investments (NFT).

All Star Minerals (ASMO) is raising £200,000 at 0.02p a share and every two shares come with a warrant to subscribe for a share at 0.04p. The cash will be used to finance investment in the company’s exploration projects. A further share issue at 0.02p pays £102,000 owed to GMI, where the All Star Minerals chief executive is a substantial shareholder. Management says that it is planning a much bigger cash raise.

Gunsynd (GUN) has agreed binding heads of terms with Metals One to farm into the Black Schist nickel zinc copper cobalt projects in Finland. In return for £1m, Gunsynd will earn 25% of the company owning the projects.

In 2021, Startup Giants (SUG) moved from a loss of £188,000 to a profit of £44,000. Current trading is in line with expectations.

Gowin New Energy (GWIN) had cash of RMB2.33m at the end of 2021, but it also had net liabilities. There are plans to trade agarwood products.

Wishbone Gold (WSBN) says that drilling at the Halo project in north Queensland has discovered copper mineralisation in the majority of holes drilled. The 21 hole is apparently the most promising.

Western Selection (WESP) has taken advantage of the Northbridge Industrial Services share price rise to sell 35,500 shares at 200.87p a share. It retains a 3.86% stake in the loadbanks manufacturer and renter, which changed its name to Crestchic (LOAD) later in the week.

Bondholders have approved the plan by Eight Capital Partners (ECP) to modify the terms and conditions of its 7% bonds.

Vulcan Industries (VULC) has raised £74,000 at 1p a share and issued additional shares for the acquisition of Aftech Ltd.

The wife of DXS International (DXSP) chief executive David Immelman has acquired 845,000 shares at 10p each, taking their interests to 11.85%.

Mark Horrocks has increased his stake in Quetzal Capital (QTZ) from below 3% to 5.3%. Chris Akers has raised his shareholding in Oscillate (MUSH) from 11.4% to 12.45%. Dowgate Wealth has a 4.9% stake in Silverwood Brands (SLWD).

AIM

Springfield Properties (SPR) has acquired the housebuilding business of Mactaggart and Mickel Group for a total cost of £46.3m. The initial payment is £10.5m and the rest will be paid over the next five years as homes are built on the sites acquired and sold. This way the deal should be self-financing. Six existing sites are being acquired as part of the deal and eleven will transfer as more payments are made. These sites have a gross development value of £230m.

Springfield is also acquiring a timber frame factory as part of the deal. It already owns a timber frame factory and 90% of the homes it builds have timber frames. Springfield’s capacity will double to 2,000 timber frames a year, which is more than enough for existing building plans, so outside suppliers will not be required any more.

In the six months to March 2022, Team (TEAM) revenues improved from £610,000 to £999,000, although there was an increased loss. The wealth management and financial services company acquired financial adviser Omega Financial Services in the first half and bought investment consulting business Concentric after the period end. There are other acquisition opportunities. There are opportunities to win new clients, but weak markets are holding back growth. Executive chairman Mark Clubb bought 5,004 shares at 63.9p each.

Property investor and fund manager First Property (FPO) returned to profit last year. In the year to March 2022, revenues reduced from £12.1m to £8.65m. That was mainly down to the loss of rental income from the Gdynia property. Asset management fees edged up from £3.35m to £3.46m and performance related fees jumped from £40,000 to £578,000.

There was a reduction of £7.81m in the amount owed to ING Bank, relating to the Gdynia property, and this was taken as a gain. Last year, there was a £7m write down on the property. That is why a loss of £5.09m was turned into a £7.98m profit. First Property is set to sell its properties in Romania and its supermarket properties in Poland. That will reduce net debt, which was £17.2m at the end of March 2022.

Insolvency litigation funder Manolete Partners (MANO) expects that the rising level of insolvencies will provide additional potential cases. In the year to March 2022, revenues declined from £27.8m to £20.4m. The realised revenues fell more sharply from £24.4m to £15.2m, with the main reason behind this being the large case with realised revenues of £9.3m in the previous year. Unrealised revenues increased from £3.41m to £5.2m. Pre-tax profit fell from £6.99m to £4.51m. Cash generated from operations before tax and investment in cases increased from £2.79m to £4.42m, due to a small reduction working capital. Investment in cases moved up from £5.89m to £6.47m. Peel Hunt has reduced its pre-tax profit forecast for this year from £7m to £5m.

Restaurants operator Tasty (TAST) has repaid its £1.1m bank loan, leaving it with net cash of £8.6m. Annualised interest rate savings will be £57,000 and there was no early repayment penalty. There are plans to open five or six more restaurants this year.

Premier African Minerals (PREM) has signed a deal that can get the Zulu lithium project pilot plant up and running. The pilot plant has target annual production of 50,000-ton SC6 and there are binding heads of terms with Suzhou TA&A Ultra Clean Technology to take all of this production starting from the first quarter of 2023.

Shares in 4D Pharma (DDDD) declined 28.5% to 16.66p before trading was suspended ahead of administrators being appointed. 4d Pharma says Oxford Finance has demanded immediate repayment of the $13.86m it is owed. The company cannot afford this.

Paper and specialist fibres maker James Cropper (CRPR) reported a full year, underlying pre-tax profit of £4m. The paper making business is cyclical and it made an increased loss. The TFP Hydrogen division, which makes products for fuel cells, accounts for around 30% of revenues and its operating profit before group overheads increased from £6.48m to £8.68m. James Cropper has reinstated the dividend this year with a 7.5p a share final dividend taking the total to 10p a share.

Cancer diagnostics developer ANGLE (AGL) has signed another contract with its first large pharma services customer. The Parsortix system will be used to monitor patients with unresectable solid tumours in a new phase Ib dose escalation study using the pharma company’s drug in combination with immuno-oncology agents.

Provexis (PXS) has signed two agreements with DSM relating to Fruitflow, an ingredient that helps normal blood flow and circulation. DSM customers for Fruitflow will become direct customers of Provexis at the beginning of 2023. DSM will still receive a royalty on the gross profit of Fruitflow sales to customers it transfers to Provexis for four years. The deal means that, assuming like-for-like sales and margins, Provexis would make a higher net profit in 2023 and it would increase in subsequent years. There should also be new direct customers. Provexis is also partnering with DSM on a gut microbiome patent.

Investment management company Forward Partners (FWD) says that weak stockmarkets have hit the valuations of technology companies and thereby the valuations of its investments. This means that there is likely to be a mid-to-high teens percentage decline from the interim NAV of £108m.

Argentina-focused oil and gas company Phoenix Global Resources (PGR) says that it is in discussions with 84% shareholder Mercuria Energy Group concerning a cancellation of its AIM quotation and a cash offer to purchase shares from independent shareholders at 7.5p each.

Asia-focused investment company Jade Road Investments (JADE) is selling part of its stake in China-based wind turbine blade manufacturer Meize Energy Industries. It has a 7.2% stake and will receive $1.2m in cash in three tranches, leaving it with a 6.3% stake valued at $10m. The company has already received $400,000 with the rest due for payment in July and August.

Solid State (SOLI) has been awarded a contract by Transport for London for a new one person operation CCTV system for the Piccadilly line upgrade.

MAIN MARKET

Oil services provider Lamprell (LAM) has received a non-binding indicative cash offer from 25.1% shareholder Blofeld Investment Management. Lamprell requires funding of $75m over the next two months and that is making the board seriously consider the offer even though it is at a large discount to the previous closing price. Financing opportunities are being explored. An attempt to raise $150m via a share issue did not meet with approval by all the institutional shareholders.

Roquefort Therapeutics (ROQ) has announced its second acquisition in seven months. Cancer medicines company Oncogeni Ltd is being acquired for the issue of 50 million shares and there is a placing to raise £1.01m at 14p a share. Two pre-clinical families of innovative cell and RNA oncology medicines come with Oncogeni, as well as a laboratory facility in Stratford-upon-Avon

CYBA (CYBA) is changing its name to NARF Industries. Steve Bassi will become chief executive.

Fackelmann Gmbh has increased its stake in cookware retailer Procook (PROC) from 3.83% to 4.63%.

Slovenia-based Graft Polymer (GPL) has reached cash flow positive in its core business. New equipment has been ordered in order to double capacity.

OTHER MARKETS

Pacific Road Resources Fund II is making a 0.01p a share cash bid for former AIM company Firestone Diamonds (FDI), which values the company at £79,000. Pacific Road also owns all the Firestone bonds and hopes to restart production at the Liqhobong open cast diamond mine. Firestone originally joined AIM in August 1998 at 114p a share. Since 2020, the shares have been traded by JP Jenkins and the latest price is 0.2p. The bidder owns 30.4% with a further 4.25% owned by affiliated funds. Resource Capital, which owns 34.7%, intends to accept.

Andrew Hore

Quoted Micro 20 June 2022

AQUIS STOCK EXCHANGE

A fall in market capitalisation to below £10m means that Coinsilium Group Ltd (COIN) will move from the Apex segment to the Access segment on 20 June.

Visum Technologies, which operates an on-ride photo camera system used by theme parks and other leisure operators, plans to join Aquis on 30 June.

Revenues recovered from £32.2m to £96m at brewer Daniel Thwaites (THW) and it also returned to profit. A loss of £12.4m was turned into a pre-tax profit of £12.7m. The pension deficit has become a pension asset worth £10.1m. A final dividend of 2.2p a share is recommended. Staffing pubs remains a problem. Prices have been increased and are set to be raised again because of rising costs. There has been a disjointed recovery this year. but sales are growing year-on-year.

Valereum (VLRM) intends to launch a global open marketplace platform for Non-Fungible tokens (NFTs). It has also appointed Z/Yen Group Ltd as strategic adviser to review the business plans for the Gibraltar Stock Exchange and help prepare a prospectus for a listing for Valereum on a major stock exchange.

All Star Minerals (ASMO) is proceeding with investments in advanced battery metals projects. Due diligence has been completed on the Blesberg lithium and tantalum project in South Africa and the Nkombwa Hill tantalum, rare earths and phosphate project in Zambia. An initial 30% stake in Blesberg can be acquired by the issue of £337,500 of shares and £237,500 in cash. An initial 25% stake in Nkombwa Hill can be purchase for a staged cash investment of $150,000. A general meeting will be held to approve a name change to Marula Mining and a proposed 100-for-one share consolidation.

Silverwood Brands (SLWD) has been readmitted to Aquis following the acquisition of Balmonds Skincare.

Gunsynd (GUN) says ASX-listed investee company Pacific Nickel Mines Ltd has secured an offtake agreement for all the production of Kolosori, as well as a $22m pre-export finance facility, with Glencore.

Triad Endeavour Sports and Entertainment has signed up with the platform run by ChallengerX (CXS). Triad is an event promoter and talent manager involved in the Ultimate Fight League.

Lekoil Ltd (LEK) has successfully challenged the jurisdiction of the New Jersey court in litigation undertaken by its former chief executive. The Otakikpo field oil production was 4,230 bopd during May.

MiLOC Group (ML.P) is restructuring its business and focusing on the distribution of designer products with partner, CRUSHMETRIC Ltd.

Wishbone Gold (WSBN) says initial tests confirm copper is present in the drilling at the Halo copper gold project in northern Queensland. Drilling is underway at the Red Setter project in Western Australia.

The Care Quality Commission has granted registration to the diagnostic and screening services offered by Goodbody Health Inc (GDBY).

ProBiotix Health (PBX) has appointed Steen Andersen as chief executive. He has more than three decades of experience in the probiotics sector.

S-Ventures (SVEN) has capped future consideration for plant-based products supplier Pulsin at £400,000 and effectively lowered the total cost from £6.7m to £5.5m.

Chris Akers took a 4.96% stake in Recent Aquis admission Psych Capital (PSY). He has also increased his stake in Quetzal Capital (QTZ) from 20.1% to 21%.

Ananda Developments (ANA) has raised £38,000 from the exercise of warrants at 0.45p each.

AIM

IDOX (IDOX) increased revenues by 7% to £33.2m in the six months to April 2022 and recurring revenues account for three-fifths of the total. Public sector software sales were 10% ahead, while engineering information management revenues declined although they should recover in the second half. Net debt was reduced by 54% to £3.8m, which leaves plenty of funds to make acquisitions.

Tatton Asset Management (TAM) is growing assets under management at more than £100m a month and they reached £11.3bn at the end of March 2022. In the year to March 2022, group revenues improved from £23.4m to £29.4m, while pre-tax profit grew from £11.2m to £14.5m. The dividend is 13% higher at 12.5p a share. Higher mortgage activity meant that there was growth in the Paradigm division and, although new mortgage activity is lower, management believes that revenues can be maintained this year. Weaker financial markets could affect this year’s group performance, but the inflow of funds should offset that.

Xeros Technology Group (XSG) was the best AIM performer last week with a 46.2% gain to 47.5p. Germany-based washing machine pumps and drives manufacturer Hanning has signed a ten-year global licence to manufacture and sell the XFilter washing machine filter technology developed by Xeros. XFilter enables microfibres and microplastics released during washing to be captured and safely disposed of. Hanning is estimated to supply components for 8.5 million washing machines each year – around one-third of those made in Europe. The royalty is undisclosed, but it could be around £1 per filter.

Subsea cable protection services provider Tekmar Group (TGP) lost more than three-quarters of its value last week after it announced that it was seeking a strategic partner or bidder. Interim revenues fell from £13.9m to £13m and Tekmar remains loss making. The order book has improved from £9.7m to £20.1m over the six months to March 2022.

Shares in US-based video game publisher Devolver Digital Inc (LON: DEVO) more than halved after it lowered its revenues and profit guidance for this year. Revenues are expected to between $130m and $140m. Zeus has cut its earnings forecast from 7.2 cents a share to 6 cents a share.

The M&C Saatchi (SAA) board has withdrawn its recommendation of the bid by the marketing services company Next Fifteen Communications (NFC), the value of which has fallen due to the slump in the share price of the bidder.

Revolution Bars Group (RBG) trading is strong and a trading statement sparked a forecast upgrade by finnCap for the vodka bars operator. Refurbished bars have done particularly well, and two new bars should open by the end of June. Forecast pre-tax profit for 2021-22 has been raised from £500,000 to £2.7m.

Oil and gas explorer Rockhopper Exploration (RKH) announced a £5.75m placing and subscription at 7p a unit (one share and of a warrant exercisable at 9p a share). The Sea Lion project in the Falkland Islands is the main focus of Rockhopper.

Wynnstay Properties (WSP) is planning to obtain shareholder approval for buying back shares. NAV increased by 19% to 1090p a share in 2021-22. The total dividend was raised from 21p a share to 22.5p a share.

Actual Experience (ACT) says that due to a change in requirements a channel partner has terminated a contract that generated £200,000 out of group revenues of £1.74m in 2020-21.

Competitions organiser Best of the Best (BOTB) reported better than forecast figures and a 66.7p a share return of capital via a tender offer. Net cash was £10.8m at the end of April 2022 and there is a 6p a share final dividend on top of the tender offer. The total cash cost of these payments is £6.84m.

In the year to April 2022, the pre-tax profit fell from £14.1m, for what was an unusually strong year due to Covid restrictions, to £5.1m.

Hong Kong-based CCTV technology company UniVision Engineering Ltd (UVEL) has received notice of the termination of a contract with MTR Corporation for the replacement of CCTV systems on Hong Kong railway lines.

MAIN MARKET

Castings (CGS) generated a 29.5% increase in full year revenues to £148.6m. Profit and margins are still improving and there is more to go for as business levels get back to the pre-Covid position. Zeus forecasts a further improvement in underlying pre-tax profit from £12.1m to £15.5m in 2022-23.

Structural steel supplier Severfield (SFR) continues to win new business and higher steel prices are being passed onto clients. In the year to March 2022, revenues increased from £363.3m to £403.6m, while pre-tax profit improved £24.3m to £27.1m. The final dividend is increased from 1.8p a share to 1.9p a share, taking the total to the year to 3.1p a share. Severfield has a record order book worth £486m.

Palace Capital (PCA) has increased its NAV to 390p a share and the loan-to-value declined from 42% to 28% following property sales at a premium to book value. The total dividend is 13.3p a share.

Graft Polymer (UK) (GPL) says that MGC Pharmaceuticals (MXC) is using its IP for the nano delivery system in the pre-clinical research study for the use of cannabinoids to treat Glioblastoma multiforme cells (a form of brain cancer).

Contango Holdings (CGO) has agreed to acquire 10,000 tonnes of washed coking coal from Lubu each month. The current market price is $120/tonne. Up to $10m of earnings could be generated from this deal each year.

Funeral directors Dignity (DTY) says FCA has confirmed it is intending to authorise Dignity Funerals LTD as a regulated entity under the new regulations for pre-paid funeral plans.

Andrew Hore

Quoted Micro 30 May 2022

AQUIS STOCK EXCHANGE

Silverwood Brands (SLWD) has secured a deal to buy Balmonds Skincare, which manufactures products for people with skin conditions, such as eczema, psoriasis and dermatitis. The total cost of the acquisition will be up to £8m, all in shares, depending on achievement of performance criteria. A shareholder loan will also be acquired by Silverwood Brands for 1.4 million shares. Last year, Balmonds Skincare revenues were £1.41m and the loss was £297,000 after an R&D tax credit of £35,000. The current manufacturing facility could quadruple capacity, although it would require additional storage facilities.

Arbuthnot Banking (ARBB) maintained assets under management at £1.35bn at the end of April 2022, while loan balances were 3% higher than the end of 2021 at £2.06bn. Interest rate rises will improve income.

CBD products supplier and diagnostics testing company Goodbody Health Inc (GDBY) increased first quarter revenues by 276% to £5.2m, although it was still loss making due to foreign exchange movements. Net cash was £5.5m at the end of March 2022. A small profit is still expected for the full year, although that is a sharp downgrade from previous expectations as Covid testing levels reduce.

St Marks Homes (SMAP) made another loss last year. In 2021, revenues increased from £216,000 to £259,000 and the loss reduced from £170,000 to £106,000 even though there was a loss from joint ventures. Cash in the bank fell from £709,000 to £131,000. Net assets are £5.23m and the shares are trading at a discount to this figure.

Hydrogen Future Industries (HFI) subsidiary company HFI Energy Systems has advanced a wind-based hydrogen production system combined with electrolyser technology. The aim is to generate hydrogen at $2/kilo, which is a lower cost than existing technologies. The hydrogen can be generated from waste water or saline. The group intends to invest $1m on development and it will own 51% of an IP developed with the rest owned by inventor Timothy Blake.

British Honey Company (BHC) has terminated its joint venture with Tusmore Park Farms, which was going to set up a new whisky distillery. British Honey will get back £450,000 of its original £750,000 investment.

Watchstone Group (WTG) still had £13m in the bank at the end of 2021. That was after a £3.67m cash outflow from operations. Net asset are 29p a share. There is a £63m plus interest and costs claim against PwC and another claim against former auditor KPMG. Watchstone is appealing against a recent VAT decision by the courts in favour of HMRC.

Eight Capital Partners (ECP) is satisfying a loan of €5m via the issued of the same amount of 7% fixed rate bonds, which are traded in Vienna and mature on 26 July 2022. Major shareholder IWEP will be converting its €20m of loans into shares. There could be a fundraising after this happens.

Evrima (EVA) has decided to maintain its interest in Kalahari Key and not accept the Power Metal Resources (POW) offer, which means that the latter could own 87.7%. Kalahari Key owns the Molopo Farms complex project, which has nickel, copper and platinum group metals deposits.

Shareholders of Lekoil Ltd (LEK) have voted in favour of the appointment of Bright Grahame Murray as auditor and to authorise the directors to set the remuneration.

Altona Rare Earths (ANR) has adjourned a general meeting that was seeking shareholder approval to reprice warrants exercisable at 20p a share. The new plan is to offer to swap them for warrants exercisable exercisable at 12p a share.

AIM

EnSilica (LON: ENSI) raised £6m at 50p a share when it joined aim on 24 May. The share price ended the week at 50.5p. EnSilica designs application specific integrated circuits (ASICs), which are in increasing demand in areas, such as Internet of Things, satellite communications, wearable health devices and 5G. EnSilica has successfully managed the current shortage in semiconductors because it has managed to pass on price rises. The cash raised will help to fund growth and could finance suitable acquisitions and the quotation will raise the profile of the company. The ASICs market is expected to be worth $27.6bn in 2026.

Scientifics instruments manufacturer Judges Scientific (JDG) is making its largest ever acquisition, which is expected to be sharply earnings enhancing. Judges Scientific is paying an initial £45m in cash for Geotek, a developer and manufacturer of instruments used to measure and log characteristics of geological cores and related services. There could be further payments of up to £35m (50% cash and 50% shares). A minimum operating profit of £6.4m needs to be achieved in 2022 to spark any payment. The maximum payment will be made if operating profit of £11.4m is achieved. WH Ireland believes that the deal will enhance earnings by 17% this year – with a 7-month contribution from Geotek – and by 30% next year. Pre-tax profit is set to improve from £18.1m to £22.4m in 2022, and then rise further to £25.5m in 2023.

The FDA has given approval for the Parsortix liquid biopsy test developed by ANGLE (AGL) for its use with metastatic breast cancer patients. Parsortix is the first system that harvests circulating cancer cells from a blood sample for analysis that has been approved. By obtaining the approval for breast cancer diagnostics, this provides a route map for gaining approvals for other cancers.

Credit hire and legal services company Anexo Group (ANX) could receive a significant income boost after the out of court settlement by VW because of its manipulation of air pollution tests. VW has agreed to pay £193m plus costs to more than 91,000 claimants in England and Wales. That is just over £2,000 each. This is a separate case to that being put forward by Anexo for its 13,000 claimants, although a similar settlement can be anticipated. House broker Arden Partners believes that the company will receive 50% of the compensation plus legal costs. Both Arden and WH Ireland are suggesting a pre-tax profit contribution of £20m-£25m after some additional costs. The timing of this is uncertain. Net debt is expected to be more than £70m by the end of this year, some of which is litigation funding related to the VW cases, and that would be much lower if the VW cash is received.

Demand for vehicles and equipment from television programmes and films means that Facilities by ADF (ADF) is benefitting from high utilisation rates. There were 39 productions serviced in 2021. TV series tend to book well ahead of the start of production, so visibility is good for the current year. The company is already investing in new trailers, although there could be delays in their arrival. Utilisation rates are expected to be around 85% this year.

Floorcoverings distributor Likewise (LIKE) reported full year figures in line with previous indications and it continues to gain market share. Acquisitions and organic growth in double digits are expected to enable Likewise to grow revenues from £60.5m to £114.9m in 2022, while underlying pre-tax profit is forecast to jump from £1.6m to £4.2m. New distribution capacity has been added and a distribution centre is on course to open in the first quarter of 2023.

Pennant International (PEN) continued to lose money in 2021, but the software and training company is already on course for a return to profit this year. Recurring revenues are running at £9m a year, helped by additional software contracts. The total order book is worth more than £32m with more potential orders in the pipeline. WH Ireland forecasts a 2022 pre-tax profit of £600,000 with most of the expected revenues of £17m covered by the order book.

Belvoir Group (BLV) has acquired TIME Group, another appointed representative of the Mortgage Advice Bureau predominantly based in northern England and the Midlands for an initial £3.7m. This is earnings enhancing. In the year to July 2021, TIME generated revenues of £4.2m and pre-tax profit of £600,000. Belvoir revenues are in the line with expectations in the four months to April 2022. Higher lettings income offset a decline in property sales income.

MTI Wireless Edge (MWE) First quarter revenues were 12% ahead at $11.2m, helped by a strong performance by the distribution business and a contribution from recent acquisition PSK Wind Technologies. There was a 3% decline in antenna revenues because customers could not get their hands on other components. The orders are there for antenna, particularly for 5G. The acquisition and dividends led to a fall in net cash to $6.5m, but it should improve by the end of 2022.

Tortilla Mexican Grill (MEX) is acquiring rival fast-casual Mexican restaurants operator Chilango. Investment firm RDCP currently owns Chilango. Tortilla Mexican Grill will pay up to £2.75m for the restaurant chain. In 2021, Chilango generated revenues of £7.3m and made a small loss. Chilango has eight sites in the London and Manchester.

Medical imaging technology provider IXICO (LON: IXI) reported interim revenues fell from £4.9m to £3.9m. That was not a surprise because it was flagged that there would be a decline this year, which was exacerbated by the early closing of a study. Pre-tax profit fell from £635,000 to £201,000. The order book was worth £12.6m at the end of March 2022, including £3.8m secured in the period. At least one more contract has been added since then.

Trinidad-focused Trinity Exploration and Production (TRIN) revenues improved from £44.1m to £66.3m in 2021 even though oil and gas production was lower. A new drilling programme will start in the second half of 2022, and this will help to increase production. A deeper appraisal well, with an estimated probability of success of 55%, could substantially increase reserves.

Purplebricks (PURP) has admitted that it made a higher than expected loss in the year to April 2022. There was still £43.2m in the bank.

MAIN MARKET

Motor vehicle lender S and U (SUS) is trading ahead of expectations. Group net receivables have increased by more than 5% since the beginning of the financial year. The fastest growth was at property lender Aspen where net receivables were 12.5% higher. The much larger Advantage car lending business grew its receivables by 3.5%, while credit quality has been maintained. Defaults remain low. The forecast yield is 5.8%.

Associated British Engineering (ASBE) kept its overheads to a minimum in the six months to March 2022 and still had £470,000 in cash and available for sale financial assets of £154,000. Net assets are £610,000, which is double the current market capitalisation.

Publisher National World (NWOR) says revenues are 4% ahead so far this year, although the rate of growth has slowed. Digital revenues are 38% higher year on year, while print revenues have declined due to lower circulation.

Zotefoams (ZTF) has made a good start to the year with revenues 13% ahead. Prices have been increased to offset higher costs. Polyolefin foams sales were 20% ahead with 5% relating to volume increases. Full year pre-tax profit could recover from £7.2m to £8.7m this year with a much bigger improvement expected next year.

Andrew Hore

Quoted Micro 16 May 2022

AQUIS STOCK EXCHANGE

Brewer Adnams (ADB) says that trading is in line with expectation in the first four months of the year. The retail side is trading ahead of the same period in 2019. Sidney Sussex College in Cambridge has reduced its shareholding from 5.27% to 4.22%., while Michael Heald increased his stake from 18.2% to 19.3% by acquiring 3,200 B shares at 8870p each.

Silverwood Brands (SLWD) has made its first investment since joining Aquis last year. Ginger Teleporter is licenced to operate e-scooters and e-bikes in England. Silverwood Brands has subscribed for a convertible loan note of £200,000 with an interest rate of 15%. The conversion price is £28.94. Silverwood Brands directors Paul Hodgins and Andrew Gerrie are also directors of Ginger. Along with another shareholder in Ginger they have agreed to sell shares to Silverwood Brands at a nominal cost if the target valuation is less than two times the original investment.

National Milk Records (NMRP) says third quarter revenues were 4% higher at £5.63m, with all main parts of the business increasing their contribution. Health testing is growing fastest, but it is still less than one-quarter of the total. Milk purchase prices have been increased to cover higher farm costs.

Talent management and livestreaming company All Things Considered (ATC) invested $6m in a new company focused on music digitisation and blockchain technology, which has announced the acquisition of Napster.

Gunsynd (GUN) has sold 175,000 shares in Charger Metals NL, raising £93,000. It still owns 2.825 million shares.

ChallengerX (CXS) has signed a digital asset monetisation agreement with US-based online TV network FOXD. This is a five-year deal.

Hydrogen Utopia International (HUI) says it is in talks with Powerhouse Energy (PHE) about a project in Ireland.

Peterhouse Capital resigned as corporate adviser to Love Hemp (LIFE) prior to the announcement that an investor had not made the promised £1.2m subscription. A new corporate adviser is required for trading in the shares to recommence. A strategic review is ongoing, and a finance director is being sought.

AQRU (AQRU) says that its decentralised finance subsidiary has more than $50m of assets under management five months after the launch of the AQRU.io platform.

SuperSeed Capital Ltd (WWW) managing director sold 50,000 shares at 100p each. He still owns 79.6%.

EPE Special Opportunities Ltd (ESO) had net assets of 355.46p a share.

AIM

There have not been any large contract wins for telecoms billing software provider Cerillion (CER) this year, but the interims show the benefit of previous wins. In the six months to March 2022, revenues increased from £12.8m to £16.1m. Annualised recurring revenues are £9.8m. Underlying pre-tax profit jumped from £3.8m to £6.3m. The business is highly cash generative and net cash has reached £16.5m. There are no borrowings. The dividend has been raised by 24% to 2.6p a share. Although the order book has dipped from £42.1m to £39.7m it is still well above previous years. There is a weighted pipeline of prospective customer business of £35m and there is a good chance that some deals could be secured before the end of September.

Motor dealer Vertu Motors (VTU) had an exceptionally strong 2021-22 due to the delayed demand for cars due to lockdowns in the previous year. The figures were ahead of expectations. Revenues were £3.62bn, which is 18% higher than in 2019-20. Pre-tax profit jumped from £24.6m to £80.7m. The profit should more than halve this year. Supply shortages are continuing, although used car prices are set to come down over the rest of the year.

Omnichannel retail software provider itim Group (ITIM) has annual recurring revenues were £11.1m in 2021 and it has already reached £13m this year. Clients pay a monthly fee. There was a £1m pre-tax profit in 2021 and investment in growing the business means that it could halve this year. The company raised cash so that it could finance the replacement of an existing system with its own software without charging an upfront fee.

Healthcare technology investor and adviser Netscientific (NSCI) increased net assets to £18.5m at the end of 2021. There are 22 investments in the portfolio. WH Ireland has a sum of the parts valuation of 180p a share.

Trellus Health (TRLS) has changed its strategy to focus on the direct-to-consumer model and is broadening the market by including irritable bowel syndrome (IBS). Trellus Health can provide personalised care for people with chronic conditions with the initial focus inflammatory bowel disease (IBD). There should be initial revenues in 2022. Net cash is $32m and this should last more than two years as revenues build up.

Plug-in cards developer Concurrent Technologies (CNC) says component shortages held back revenues and they dipped from £21.1m to £20.5m in 2021. Even so, pre-tax profit improved from £3.7m to £4.1m thanks to lower operating expenses. Chief executive Miles Adcock joined the AIM-quoted company last June. He has reviewed strategy plans to launch new products more quickly. This year there should be eight new products – double the previous level. A manufacturing partner in the US will help the group win more business. Although there was an increased interim dividend, the total dividend for the year was unchanged at 2.55p a share.

Advanced coatings provider Hardide (HDD) is recovering but it is still some way from profit. Interim revenues were 50% ahead at £2.7m and while the loss was nearly halved it was still £771,000. Revenues for the year to September 2022 could be double the interim level, but so could the loss. Net debt was £335,000 at the end of March 2022. Overheads have fallen following the completion of the move to a new factory in the UK. Variable gross margin is 70%, so additional revenues will rapidly reduce the loss.

Further good news from NWF (NWF) thanks to the fuels business due to short-term volatility. Trading in the year to May 2022 will be significantly ahead of expectations.

Credit hire and legal services firm Anexo (ANX) increased 2021 revenues by 36% to £118.2m, while pre-tax profit was 50% ahead at £24.1m. The new housing disrepair business made a contribution, and the credit hire business is running at high levels. There is still potential upside from the VW emissions case. The total dividend is 1.5p a share.

Iodine producer Iofina (IOF) increased 2021 revenues from $29.7m to $39m and underlying pre-tax profit from $1.3m to $4.9m, even though iodine production was lower. Net debt was $3m at the end of 2021. Iodine prices remain above $60/kg. Plans are being made for additional production capacity.

Duke Royalty (DUKE) has raised a further £20m via a placing and PrimaryBid offer at 35p a share. The additional cash should enable Duke to increase its debt facility by £25m. Cenkos forecasts royalty revenues of £21.3m in the year to March 2023. That should generate enough cash for a 3p a share dividend.

Immedia Group (IME) has completed the disposal of its operating business and it is changing its name to Immediate Acquisition.

Sweden-based investor AB Traction has increased its stake ceramics and fragrance products manufacturer Portmeirion (PMP) to 5.08%.

MAIN MARKET

GS Chain (GSC) is a shell seeking a technology acquisition. It was introduced to the standard list at 1p a share. The share price opened on 13 May at 3p before ending the day at 3.625p (3.5p/4p). There is nearly £1m in cash that should last 12 months. The pro forma asset value is less than 0.18p a share.

Macfarlane (MACF) says first quarter sales and profit are ahead of the same period last year. Better packaging sales to industrial and hospitality sectors has offset weaker sales for e-commerce.

Flavours supplier Treatt (TET) grew revenues by 9% to £66.3m, although underlying pre-tax profit fell to £6.3m. Forecast revenues have been upgraded, but the profit estimate is the same due to lower margins. Orange oil prices have risen.

Andrew Hore

Quoted Micro 29 November 2021

AQUIS STOCK EXCHANGE

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

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

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

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

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

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

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

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

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

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

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

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

AIM

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

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

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

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

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

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

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

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

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

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

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

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

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

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

MAIN MARKET

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

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

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

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

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

Andrew Hore

Quoted Micro 22 November 2021

AQUIS STOCK EXCHANGE

Globe Capital (GCAP) has reported its 2020 and latest interim results and undergone board changes. Simon Grant-Rennick becomes executive chairman and Burns Singh Tennent-Bhohi an executive director. They are advancing £100,000 via a convertible, which will convert at 0.04p a share following the upcoming AGM. More cash will be raised, and a new corporate strategy announced. There was £23,000 in the bank at the end of June 2021. There were net liabilities. Peterhouse has been appointed as corporate adviser.

Voyager Life (VOY) interim revenues were £59,000 and it remains loss making. There was £1.74m in cash at the middle of November 2021 and monthly overheads are below £50,000. The CBD products supplier is getting its products stocked in retailers and has opened its third store.

Helium Ventures (HEV) has made its maiden investment in Blue Star Helium, which has the Voyager prospect at Las Animas County Colorado. There are indications that it could have one of the highest helium concentrations in the US. A maiden well could be drilled in December.

Sativa Wellness Inc (SWEL) is offering a range of blood tests through 40 Superdrug sites.

Tectonic Gold (TTAU) has completed the Specimen Hill drilling campaign. Initial results for Goldsmith’s Reef, which was mined 100 years ago, has had some positive drilling results and there are more results to come. This will help to secure a partner.

Wishbone Gold (WSBN) is preparing to drill at Red Setter in Western Australia. Four high priority zones have been identified. Wishbone raised £126,000 at 14p a share.

EPE Special Opportunities Ltd (ESO) plans to issue up to 25 million zero dividend preference shares at 100p each.

Pioneer Media Holdings Inc (PNER) has raised C$1.1m at C$1 per unit (one share and one warrant exercisable at C$1.50). Investee company Leaf Mobile Inc is raising cash ahead of a proposed standard listing.

IamFire (FIRE) has an option to subscribe up to $4.5m into convertible loan notes of former Aquis company Boanerges. They convert into shares at 75p each.

Coinsilium Group Ltd (COIN) sold 4.58 million treasury shares at 10p each to raise £458,000.

Omni Egis (OMNI) is leaving Aquis on 24 November.

Scott Livingston has taken a 5.16% stake in Silverwood Brands (SLWD).

AIM

Acoustic and thermal insulation material manufacturer Autins Group (AUTG) has raised £3m at 20p a share, which was a significant discount to the market price. The cash will be used to develop the Neptune acoustic material manufacturing facilities and in product development for electric vehicles.

Steel structures supplier Billington (BILN) has been hit by short-term delays to contracts, which has knocked £3.5m off forecast 2021 revenues. That has led to a halving of the 2021 forecast pre-tax profit to £1.1m. The order book is still strong.

Microbiome-based products developer Optibiotix Health (OPTI) has sold 3.64 million shares in SkinBioTerapeutics (SBTX) at 55p each and raised £2m. Optibiotix still owns 20.7% of the company and that stake is valued at £18m.

Managed IT and networking services provider AdEPT Technology (ADT) increased interim revenues by one-fifth to £34.3m. Underlying pre-tax profit was 16% higher at £3.5m and earnings per share were 30% ahead at 13.2p due to a lower tax charge. Net debt was £31.2m at the end of September 2021, which was after spending £9m on acquiring Datrix.

Ilika (IKA) says that its Stereax and Goliath battery technologies remain on track. Commercial revenues from the smaller Stereax batteries should commence in 2022. Once lithium-ion equivalence is achieved Ilika will seek a partner for Goliath.

Health services provider Totally (TLY) had a strong interim period as insourcing and planned care revenues improved. Organic revenue growth was 14%, while the underlying pre-tax profit was £2.1m. There was £18.3m in cash at the end of September 2021, which provides plenty of fire power for making acquisitions in the out of hospital care sector. The urgent care business has been winning contracts and extensions to existing ones. Full year pre-tax profit could improve from £2.5m to £4.1m with more growth to come from the existing operations as demand returns to more normal levels.

Arden has updated its forecast for Dekel Agri-Vision (DKL) due to shipping delays holding up the start of production at the cashew plant. Palm oil production and revenues continue to grow. This means that the company will not make a pre-tax profit in 2021, but it should still make a substantial 2022 profit.

Trakm8 (TRAK) has not done well in recent years but the latest statement from the telemetry equipment and services provider has sparked an upgrade. The company should breakeven this year and make a significant profit in 2022-23.

MAIN MARKET

Technology-focused shell Red Capital (REDC) raised £4m at 10p a share and after expenses it has total cash of £725,000. The shares certainly jumped when trading commenced and closed at 25.5p. This is the latest vehicle floated by Marwyn Capital founder David Williams.

PYX Resources Ltd (PYX) was already quoted on the NSX in Australia before joining the standard list. PYX is in a strong position as the second largest resources of zircon in the world with zircon prices increasing and demand remaining strong. It has two mineral sands projects in Central Kalimantan in Indonesia with one already in production. No new money was raised. Trading started at 94p a share and ended the week at 92.8p a share. There was solid trading in the shares all week.

Technology Minerals (TM1) was set up as investment company after Stranger Holdings (STPH) decided not to proceed with the acquisition of Technology Minerals and related assets. It has acquired these assets and is building a business that covers the battery cycle from exploration and mining to recycling. The main focus is on the Emperium project in Idaho, where £100,000 will be spent over up to 18 months. The company raised £1.5m at 2.25p a share and issued 786.2 million shares to acquire the assets. The share price opened at 2.6p and ended the first day at 3.25p. It ended the week at 3.5875p.

A general meeting has been requisitioned at East Imperial (EISB) by Andrew Regan of Corvus Capital. He wants to remove two directors and replace them with his picks. The board criticises the experience of his choices.

Andrew Hore

Quoted Micro 15 November 2021

AQUIS STOCK EXCHANGE

Brewer and pubs operator Shepherd Neame (SHEP) is starting to recover from lockdowns. Pubs started to reopen outdoors on 12 April, while indoor trading recommenced on 17 May. From that point pubs achieved 97% of 2019 trading levels. Since June, drinks sales have been down on the 2019 level, but food and room revenues were higher. In the year to 26 June 2021, revenues fell from £118.2m to £86.9m with both periods hampered by Covid-19 lockdowns. There was a swing from a pre-tax profit of £1.5m to a loss of £4.2m. A revaluation of licenced pubs shows a surplus over book value of £35.9m, which is a 13% uplift not reflected in the NAV of 1140p a share.

Silverwood Brands (SLWD) is a shell focused on food and lifestyle acquisitions. It raised £1.03m at 40p a share. The share price ended the week at 43.75p. NAV is 35p a share. The strategy is to build up a portfolio of consumer brands. The cash raised in the flotation and prior to the admission will help to identify targets and carry out due diligence. Directors Andrew Gerrie and Andrew Tone were both involved in building up the Lush handmade cosmetics business.

In the first quarter National Milk Records (NMRP) revenues increased by 8% to £5.72m. There was a small decline in revenues for testing for Johne’s disease, while the core milk testing business increased revenues, although the comparatives were for a weak period when lockdown was ending. The launch of genomic services under the GeneEze brand is planned for this winter. UK milk prices are exceeding 40p a litre, although the costs for farmers are increasing.

SulNOx Group (SNOX) has 600 potential customers and 130 trials proposed or underway. This includes vehicle and marine clients for the fuel emulsification additive.

Pharma C Investments (PCIL) has made its first cannabis-related investment in Product Earth Expo UK, which runs an annual CBD trade show in Coventry. A £275,000 investment gives Pharma C a 7.5% stake. Product Earth also offers a digital marketing service. Tom Toumazis, the former boss of European newspapers publisher Mecom, is chairman of Product Earth and Pharma C investment strategy director Gavin Sathianathan is also a director. At the end of October, Pharma C had cash of £608,000.

Sativa Wellness Inc (SWEL) increased revenues in the nine months to September 2021 by 724% to £9.88m. This enabled Sativa to move into profit, although it is a modest one. Trading has been boosted by demand for Covid tests and the range of tests is being broadened.

Rutherford Health (RUTH) is partnering with BUPA, which will open clinics within the company’s sites and refer patients if they have symptoms of cancer. The first clinic will be opened at Rutherford’s Liverpool cancer centre and the second in Northumberland.

Spirits company Rogue Baron (SHNJ) has raised £200,000 at 7p a share, which is just above the market price. Each of the placing shares comes with a warrant exercisable at 7p. The cash will be used to acquire additional stocks of Shinju whisky.

Valereum Blockchain (VLRM) has raised £197,500 from the exercise of warrants.

David Evans has increased its stake in Oberon Investments Group (OBE) from 7.61% to 8.15% and Rodger Sargent has a 3.14% shareholding.

EPE Special Opportunities Ltd (ESO) had net assets of 536.19p a share at the end of October 2021.

AIM

Firering Strategic Minerals (FRG) has a 51% stake in the Atex lithium and coltan project and has the option to increase it. Firering raised £4m at 13p a share and expenses were £516,000. The money raised will finance the £1.55m cost of the exploration spending for Atex for the next two years. There is also potential to generate revenues from tantalum production within 18 months, which will help to finance further development.

The Life Science REIT PrimaryBid offer closes on 15 November, and investors can apply for shares in the intermediaries offer via Interactive Investor and other firms by 16 November. A 4% yield is being targeted, based on the issue price of 100p a share, with annual growth of 5%. Life Science REIT will be the first London-quoted REIT focusing on life science properties. The types of properties will include laboratories, offices and manufacturing facilities and they will be situated in Oxford, Cambridge and London. There is strong demand for these properties from companies and organisations and a lack of supply. It is estimated that up to 20 million square feet of additional office and laboratory space will be required over the next two decades. The target for the offer and placing is up to £300 million.

Parcel and freight delivery company DX (DX.) continues to make a rapid recovery despite the uncertainties of the past year. Group pre-tax profit improved from £200,000 to £12m with freight’s improvement offsetting the decline in profit in the rest of the group. Net cash was £16.8m at the end of June 2021 and there could be a dividend this year. finnCap maintained its 2021-22 pre-tax profit forecast at £16.5m.

Tracsis (TRCS) has shown the solidity of its rail technology and services revenues and the more volatile data and events business has started to recover. Revenues edged up from £48m to £50.2m, with most of the growth coming from acquisitions. Rail technology revenues grew, but the data and events division reported a small decline. According to finnCap, adjusted pre-tax profit improved from £8.3m to £10.9m. Since the end of July, Tracsis has acquired Dublin-based Icon Group, which made a pre-tax profit of £800,000 in 2020, and this will be integrated with the similar UK data analysis operations.

Chain and transmission equipment manufacturer Renold (RNO) is managing to pass on higher materials prices and the chain division revenues have recovered. Group interim revenues were 17% ahead at £95.3m, while pre-tax profit was 52% higher at £5m. Order intake was 55% higher at £113m. Net debt is £13.9m. Forecast full year earnings are 3.2p a share.

Media localisation and post-production services provider Zoo Digital (ZOO) is growing revenues on the back of the international expansion of streaming platforms and broadening the range of services that it offers. New production projects are starting to ramp up and that provides further growth opportunities. Interim revenues jumped from $16.4m to $26.9m and there was a small operating profit.

Insolvency litigation financer Manolete Partners (MANO) continued to generate cash before investment in new cases during the six months to September 2021. Revenues were lower than the first half of 2019-20 when there was a large case settlement, but they were higher than the second half. Interim profit fell and that is why the interim dividend has been reduced from 1.17p a share to 0.39p a share. New case enquiries are rising.

Maestrano (MNO) has won a new contract for surveying an electricity transmission line in Australia. The 700km line goes from Wagga Wagga to the South Australian and the contract runs between 2022 and 2025. This shows there is demand for the surveying technology outside of the rail sector.

MAIN MARKET

Property investor Town Centre Securities (TOWN) says that the latest valuation shows a 0.3% increase over the June 2020 valuation. Since then, a London property has been sold for £3.85m, which is 6% above the 2020 valuation. Rent collections are back to pre-pandemic levels. The full year results will be published on 24 November.

Cookware supplier Procook (PROC) joined the premium list at a valuation of £158m at the placing price of 145p a share. Procook ended the week at 159.75p.

Andrew Hore

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