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Quoted Micro 28 February 2022

AQUIS STOCK EXCHANGE

Good Energy (GOOD) has finalised the sale price of its electricity generation assets. There was deferred consideration of up to £8.1m. The deferred payment has been set at £4.8m, taking the total payment to £21.2m. The rest of the cash was not paid due to a third-party yield assessment and other due diligence.

Samarkand Group (SMK) has signed a three-year agreement with Revolution Beauty Group (REVB) and it will incorporate the cosmetics company’s existing Tmall Global Flagship store via the Nomad technology, which will make it easier to sell in China. Samarkand will be exclusive ecommerce partner for China. Revolution Beauty has bought the assets of US cosmetics brand BH Cosmetics for $3.9m. Badass with Heart (BH) Cosmetics are vegan and cruelty-free.

Hydrogen Utopia International (HUI) says that it has been advised to apply for a loan under a new programme launched by the Poland authorities. The share price has slumped to 7.5p since the flotation at the beginning of the year.

KR1 (KR1) is participating in the HydraDX crowdloan and Polkadot parachain auction. KR1 contributed 350,000 DOT to secure a parachain slot in the ongoing round and these will be held for 96 days before being returned and KR1 will also receive HydraDX tokens. KR1 is already due to receive 45 million HydraDX tokens due to previous backing of a seed funding round. HydraDX is a protocol to enable frictionless liquidity for crypto assets. All assets can be put into one shared liquidity pool.

Cadence Minerals (KDNC) says that its joint venture rare earths project Yangibana in Western Australia has a NPV8 of $1.01bn, which is an 84% increase on the previous estimate. The $20m project to build the core infrastructure has begun. There was a 48.9% take-up of the recent open offer, which raised £745,000.

Forbes Ventures (FOR) is considering re-domiciling from the Cayman Islands to the UK. This could reduce costs. The medium-term focus includes the potential launch of a blockchain-focused venture fund.

Valereum (VLRM) has exercised its option to take its stake in the Gibraltar Stock Exchange from 80% to 90%.

SuperSeed Capital (WWW) managing director Mads Jensen has bought 24.200 shares at 98p each, taking his stake to 82.1%.

AIM

Hargreaves Services (HSP) has secured a deal for the development and sale of two large distribution units, which will be 191,000 square feet and 375,000 square feet respectively, at the 50%-owned Unity site. Detailed planning permissions are required for the sites and that should be obtained by the end of the year. The deal will be fully completed within 12 months of construction. The total revenues should be more than £50m for the joint venture and Hargreaves should have all or most of its 50% distributed to it, depending on the requirements of the joint venture. On top of this, another 4.6 acres at Blindwells is being sold to Ogilvie Homes. There will be 77 homes built and the deal should generate minimum revenues of £3.5m. The contracts are conditional, and they will not have an immediate effect on the figures.

Synairgen (SNG) announced disappointing phase III data for the SPRINTER trial for SNG001 use in hospitalised Covid-19 patients. The headline data for the trial did not meet primary or secondary endpoints. There is still an ACTIV-2 phase III trail being carried out in mild to moderate Covid-19 patients and other studies where SNG001 could be included.

Sylvania Platinum (SLP) plans to spend some of its cash pile on further increases in production. First half production of platinum group metals was 32,376 ounces, down from 36,335 ounces, and full year production should be between 66,000 and 68,000 ounces. Interim revenues fell from $84.9m to $69.1m, while pre-tax profit slumped from $57.4m to $34.9m. The decline in the Rand exchange rate exacerbated cost increases. A dividend of 2.25p a share will be paid. Short-term investment focus is on additional capacity and extending the life of the chrome recovery operations. In the next three years Sylvania will decide whether to construct new plants on the eastern and/or western limbs of the Bushveld complex.

Transense Technologies (TRT) moved into profit in the six months to December 2021 thanks to growing royalty income from iTrack tyre pressure monitors. Interim revenues improved from £895,000 to £1.2m with a loss of £53,000 turned into a pre-tax profit of £82,000. That is before any tax credits. There are more than £23m of tax losses available to offset against corporation tax. There is £1.07m in the bank and that is set to rise to £1.34m in June 2022.

Seeing Machines (SEE) says interim revenues are 19% ahead at A$21.7m. Revenues of A$56.1m, up from A$46.6m, are forecast for the year to June 2022. There are nine vehicle models that have commenced production that are installing the company’s driver monitoring system. Seeing Machines has also deployed a pilot fatigue detection system for Air Ambulance Victoria. This deal could be worth A$1m over a ten-year period.

Avingtrans (AVG) reported a small decline in interim revenues to £45.1m following the ending of lower margin work in the medical imaging business. Improved margins meant that there was little change in the pre-tax profit, which was £3.6m. The interim dividend is 1.6p a share.

Analysts have raised their full year pre-tax profit forecast for Netcall (NET) following the interim figures. Annualised contract value was £19.8m at the end of 2021. The 2021-22 earnings forecast was increased by 6% to 1.7p a share.

Outsourcing services provider iEnergizer Ltd (IBPO) says it will have another record financial year in 2021-22. The forecast yield is 4.9%.

Tristel (TSTL) is exiting non-core activities to focus on its medical device decontamination and surface cleaning products. In the six months to December 2021, revenues from continuing activities fell 7% to £13.6m. That was due to a large one-off order in the corresponding period. There is underlying growth. There is a £2.4m impairment charge for the discontinued activities. Underlying earnings fell 28% to 4.3p a share. The plans for FDA filings for the company’s products are on course.

Ventilation and door components supplier Titon (TON) warns that supply problems and higher costs are hampering sales and margins. Titon is trying to increase prices to cover higher costs. Overall revenues are slightly higher than in the first four months of the previous financial year, but the overseas operations are loss-making. There is still £4.2m in cash on the balance sheet. A new chief executive is being recruited.

Orchard Funding (ORCH) has raised £2.59m after expenses from its bond offer.

MAIN MARKET

Packaging manufacturer and distributor Macfarlane Group (MACF) increased revenues from continuing operations by 26% to £264.5m in 2021. Pre-tax profit is 50% ahead at £18.7m. The labels division was sold at the end of 2021, and it made a loss. Net cash is £2.5m and the pension scheme surplus is £8.3m. The total dividend is one-quarter higher at 3.2p a share. There is continuing inflationary pressure and supply problems.

Maternity wear brand Seraphine Group (BUMP) says that sales grew in the seventeen weeks to the end of January 2022, although February has been tougher. That means revenues will be below expectations, while lower margins mean that there will be little in the way of profit for the full year. The problems include an underestimation of sales tax and duties in newer markets. This is not the first profit warning. Last July, Seraphine floated at 295p, and the share price has fallen to 58.5p.

Seraphim Space Investment Trust (SSIT) has performed strongly since it floated and there is more to come. The original fundraising was at 100p a share and the NAV at the end of 2021 was 104.7p a share. That is before the announcement of the reversal of Italy-based space logistics company D-Orbit into Nasdaq-listed Breeze Holdings Acquisition Corp, which should be completed by the autumn. There was still £70m in the bank at the end of 2021, although more investments have been agreed since then.

Fasteners supplier Trifast (TRI) says that there is consistent year-on-year growth in monthly revenues. Higher cost are being passed on and there are signs that supply chain costs are stabilising.

Alkemy Capital Investments (ALK) plans to enter into a lease at a Teesside chemical engineering park and the land will be used to build a lithium hydroxide processing facility through a new subsidiary called Tees Valley Lithium. The facility is anticipated to produce 24,000 tonnes a year of lithium hydroxide monohydrate for energy storage markets. This is a reverse takeover and trading in the shares has been suspended.

Kanabo Group (KNB) has acquired The GP Service, a telemedicine provider, for £13.5m in shares at 12.65p each. The business provides NHS video and online consultations and can electronically deliver prescriptions. Consultation services are also offered to corporate clients. GP Service will provide a way of marketing Kanabo’s CBD products. Kanabo raised £2.25m at 8p a share.

Cannabis-based drug developer Oxford Cannabinoid Technologies (OCTP) still had £12m in the bank at the end of November 2021. Cost savings worth £130,000 a year have been made so the cash can last longer. Two compounds are expected to enter phase 1 clinical trials in the next 12 months. Two The year end is being changed from May to April.

Andrew Hore

Quoted Micro 14 February 2022

AQUIS STOCK EXCHANGE

Good Energy (GOOD) has repelled the latest attempt by major shareholder Ecotricity to influence decisions. It wanted to remove the chairman and stop the sale of generation assets without shareholder approval. Both resolutions were defeated.

Dominique Einhorn has resigned as chief executive of ChallengerX (CXS) following his arrest in France for tax and other offences. ChallengerX joined Aquis in December after it acquired SportsX, which provides marketing services to rugby and football clubs. Sarlat Rugby, which is 100%-owned by Dominique Einhorn, is one of the first clients. The share price was unchanged at 2.4p (2.2p/2.6p).

Hydro Hotel Eastbourne (HYDP) increased revenues from £2.23m to £2.79m in the year to October 2021 and that enabled it to move from a loss of £174,000 to £457,000. This was helped by government assistance. Trading is still not back to pre-pandemic levels. There is £1.33m in the bank.

EPE Special Opportunities (ESO) had net assets of 455.66p a share at the end of January 2022. There was £27.6m of available funds at the end of January. Directors and managing partners bought shares, but more were sold by others.

Cadence Minerals (KDNC) has completed the purchase of a 20% stake in the Amapa iron ore project.

Gowin New Energy (GWIN) is considering trading in agarwood products, including incense and oils in Taiwan. A trial is being launched ahead of the Quingming festival.

Quantum Exponential (QBIT) investee company Arqit Quantum has signed a research and development agreement with the United States Air Force. This could lead to a quantum encryption service for the Department of Defense.

SulNOx (SNOX) plans to gain an OTC quotation in the US so that Americans can invest.

SuperSeed Capital Ltd (WWW) managing director Mads Jensen has bought 3,000 shares at an average price of 83.9p. SuperSeed raised £2m at 100p a share at the end of January. The share price ended the first week at 70p (65p/75p) and it remained at that quoted price last week with limited trading volumes.

Samarkand (SMK) non-exec Phil Smiley acquired 28,777 shares at 139p a share. Daniel Thwaites (THW) director RAJ Bailey bought 15,000 shares at 102.25p a share. Chris Akers has increased his stake in Quetzal Capital (QTZ) from 17.2% to 18.3%.

Alfred Henry has resigned as corporate adviser to Lombard Capital (LCAP).

AIM

Building products supplier Alumasc (ALU) reported that interim pre-tax profit fell 12% to £5.1m on revenues 2% ahead at £46.3m. The profit fell because shading business Levolux fell back into a loss of £1m. Roofing did well but the Levolux business held that division back. The water management division sales were nearly one-fifth higher, and profit improved. Housebuilding product sales increased but margins fell. However, the second half should be stronger.

Self-storage sites operator Lok’nStore (LOK) says that first half trading was strong. Interim revenues are one-third higher, helped by higher occupancy and prices.

Orchard Funding Group (ORCH) has launched a bond offer and it is guaranteeing 10% of face value of outstanding bonds. The Orchard Bond Finance bond offers an annual interest rate of 6.25% payable twice a year. The repayment date is 2027. The cash from the bonds will help to finance growth. The offer is open until 23 February. The offer is available through PriamryBid and intermediaries, such as Interactive Investor and AJ Bell. The minimum subscription is £2,000. The bonds will be issued on 2 March and trade on the Official List.

Sustainable investments company i(x) Net Zero (IX.) raised £10.7m at 76p a share. The share price ended the week at 77p, which is a premium to pro forma net assets.

ASX-listed Artemis Resources (ARV) joined AIM and raised £5m at 3.75p a share on 7 February. It owns 100% of the Greater Carlow gold copper cobalt project and the Paterson Central gold copper exploration project in Western Australia. Exploration commenced at Paterson Central in November 2021, and it is expected to resume in March. The Paterson Central project is adjacent to the Havieron project that is being developed by Newcrest Mining and Greatland Gold (GGP). Greater Carlow has a JORC complied mineral resources estimate for its Carlow Castle deposit of 14.3Mt @ 0.7g/t gold, 0.4% copper and 0.05% cobalt. An update is expected by the summer. The share price ended the week at 3.875p.

Filtronic (FTC) grew ongoing interim revenues by 12% to £8m and the telecoms components manufacturer moved back into profit. The full year pre-tax profit forecast is being maintained at £1m even though revenues have been edged up to £18m because the improvement is from lower margin products. Defence spending is boosting demand.

Omega Diagnostics (ODX) is raising £5m and could raise a further £2m from an open offer. It is also selling its manufacturing facility in Alva for £1m after it failed to win a Covid diagnostics contract. Even so, Omega is expected to continue to lose money. The CD4 diagnostics operations will be transferred to the Ely site and sales are building up, Health and nutrition business continues to grow.

Kitwave (KITW) has acquired West Country-based MJ Baker, which distributes ambient, chilled and frozen food. This is the first acquisition since flotation and Kitwave is paying £24.5m in cash. This deal includes own branded Bakers Best Buy products and should be earnings enhancing.

Recent new admission Facilities by ADF (ADF) has already sparked a forecast upgrade from a trading statement. The film and TV hire services provider is expected to make earnings of 4.5p a share for 2021.

Dekel Agri-Vision (DKL) continues to generate increasing revenues from crude palm oil, but it is taking longer than expected for cashew revenues to grow. January was a record month for production and extraction rates improved, while prices rising. The cashew plant is using 15% of capacity and waiting for additional components.

Mergers and tax adviser K3 Capital (K3C) increased interim revenues from £17.6m to £31.2m providing a significant boost to profitability. The interim dividend is 4p a share. K3 is on course for a full year pre-tax profit of £17.7m, up from £13.6m, providing the ability to potentially pay a total dividend of 12.1p a share.

MAIN MARKET

S and U (SUS) is paying a second interim dividend of 36p a share. Group debt is £114m out of possible facilities of £180m. There was a reduced level of bad debts in the year to January 2022 and pre-tax profit will be more than double last year’s £17.2m. Advantage has started to finance electric vehicles. Net loan advances are £140m. Property bridging has a loan book of £64m.

Anglesey Mining (AYM) plans to move to AIM. A general meeting will be held on 8 March to gain shareholder approval.

Sure Ventures (SURE) has net assets of 118.34p a share.

Andrew Hore

Quoted Micro 7 February 2022

AQUIS STOCK EXCHANGE

SuperSeed Capital Ltd (WWW) raised £2m at 100p a share in order to invest in UK based seed technology companies alongside a related fund. The share price ended the week at 70p (65p/75p). The directors can issue up to 50 million additional shares up until 27 January 2027.

Samarkand Global (SMK) says that trading conditions in China will hamper progress for the rest of this financial year. Covid restrictions have hit trading during the Chinese New Year period. Revenues will be lower than expected and higher investment will increase the expected loss. Recent deals will help Samarkand grow in the longer-term, but there are also forecast reductions for the next two years. VSA no longer expects Samarkand to make a pre-tax profit in 2022-23.

Gunsynd (GUN) investee company Low6 has raised $5m and the sports betting platform company agreed to reverse into a Canadian shell, which will list on the TSX Venture Exchange. Gunsynd has raised A$493,000 (£260,000) from the sale of part of its stake in ASX-listed Charger Metals Ltd. This has raised the initial investment and left Gunsynd holding three million shares.

Capital for Colleagues (CFCP) is selling its A ordinary shares in The Homebuilding Centre back to the company in five tranches. There will be a minimum payment of £50,000 a year. This guarantees Capital for Colleagues will receive its initial investment of £250,000. It still owns 15% of the ordinary shares.

Cadence Minerals (KDNC) has raised £4.2m at 20.5p a share via a placing and subscription. A one-for-20 open offer could raise up to £1.52m. Cadence has to invest $6m in two stages to take a 27% stake in the Amapa iron ore project in Brazil.

CBD products supplier Love Hemp Group (LIFE) is attempting to raise £2m at 1p a share and still plans to move to the Main Market in the first quarter of 2022. There are also plans to swap shares for debt. The company is moving to a new facility consolidating all the activities. Chairman Andrew Male and chief executive Tony Calamita, along with others, will accept their remuneration in shares until June 2022. This reduces the cash outflow.

Property investor Ace Liberty and Stone (ALSP) increased its interim pre-tax profit from £674,000 to £755,000. That is after a loss on disposal of £315,000, although fair value losses reduced from £200,000 to £100,000. Rental income fell 3% to £2.89m. There are £3.05m of assets held for sale. Net assets were 333.1m at the end of October 2021, while net debt is £50.4m.

AQRU (AQRU) has acquired Bison Exchange UAB for €30,000. The acquisition has changed its name to Accru Finance. The company can provide virtual currency exchange and wallet custody operations in Lithuania.

KR1 (KR1) has invested $5m in Starry Night Capital, which is building a portfolio of high-profile non-fungible tokens.

Pioneer Media Holdings (PNER) has completed the acquisition of Bark Ventures, a NFT play-to-earn game developer, for 2.86 million shares.

Western Selection (WESP) has cut its stake in Northbridge Industrial Services (NBI) from 6.21% to 4.74% while Harwood Capital has increased its holding from 20.4% to 22.56%.

Helium Ventures (HEV) had £704,000 in cash at the end of October 2021. That is after a A$400,000 investment in Blue Star Helium, which has exploration projects in North America.

Quantum Exponential (QBIT) is still talking to potential investee companies. It owns 199,993 shares in Arqit Quantum, which has a contract with Virgin Orbit that covers two satellite launches.

Minerals explorer Altona Rare Earths (ANR) plans to continue to develop its rare earths projects Mozambique and Malawi to bankable feasibility study stage, as well as reviewing another acquisition that could be completed by the summer.

BWA Group (BWAP) reports that exploration of the 90%-owned mineral sands projects in Cameroon shows promising returns of rutile, ilmenite, kyanite and zircon over continuous zones.

Valereum (VLRM) has secured a $10m funding facility and this will help to finance the acquisition of the Gibraltar Stock Exchange. It has drawn down $3m which has to be repaid in six months of it can be converted into shares at 36.82p each, which is just below the current share price of 38p. There were also 663,302 warrants issued exercisable at 33.47p.

Clean Invest Africa (CIA) has raised £100,000 at 0.5p a share, with each two shares granted one warrant exercisable at 1.5p each.

AIM

NWF (NWF) reported a jump in interim profit. The fuel and food distribution businesses traded strongly with the former benefiting from concerns about supply shortages last autumn. The feeds business fell into loss, partly due to the loss of a distributor, and there was a £8.4m asset write down. Stripping out that exceptional, underlying pre-tax profit jumped from £2.5m to £4.3m. NWF maintained its interim dividend at 1p a share. Net debt was £7.4m at the end of November 2021. Management is seeking fuel distribution acquisitions to add to the regional network.

Wynnstay Group (WYN) has continued its record of increasing its dividend with an 18th consecutive rise. The total dividend improved from 14.6p a share to 15.5p a share. In the year to October 2021, underlying pre-tax profit was 37% higher at £11.4m. NAV is 525p a share. Wynnstay has increased market share in the feeds market, particularly for dairy and egg production. Agricultural merchanting operations benefited from the improved spending power of farmers. There could be a dip in profit this year.

Piling contractor Van Elle (VANL) improved its interim results and this led to an upgrade in full year forecasts. First half revenues were 57% ahead at £60m and it moved back into profit. Equipment usage levels have risen sharply. Net cash is £3.5m and this is enabling an increase in investment in new equipment. Van Elle had an order book of £39m at the end of 2021. Peel Hunt has increased its full year pre-tax profit forecast from £3m to £3.3m.

Hercules Site Services (HERC) originally raised £4m at 50.5p a share. The existing shareholder also raised £4m. Cirencester-based Hercules Site Services provides construction workers with a wide range of skills including carpenters, bricklayers, ground workers, security and site engineers. It also hires out suction excavators and sometimes there are cross selling opportunities with the labour supply business. More suction excavators are being acquired this year and there should be 20 following this fundraising. Demand for staff for infrastructure projects is increasing.

Electra Private Equity has sold all but one of its core investments, changed its name to Unbound Group (UBG) and moved to AIM. The remaining core business is footwear business Hotter. This is a direct to consumer business, although there are still 23 retail stores, down from 78 three years ago. One of Unbound’s main assets is its customer database. It hopes that selling additional products to that customer base will significantly improve profitability. The first sales of third-party products through the company’s website will be in the second quarter of 2022. The plan is to generate 50% of profit from these products.

Franchised lettings and estate agency business Belvoir Group (BLV) enjoyed a strong end to the year even though the stamp duty holiday ended in the autumn. The 2021 pre-tax profit forecast has been raised from £9.6m to £10m, while the £8.9m forecast for 2022 is maintained at £8.9m.

The Property Franchise Group (TPFG) continued to make strong progress in the fourth quarter despite the ending of the stamp duty holiday. There was a like-for-like increase of 26% in revenues, while the acquisition of Hunters Property meant that they more than doubled to £24.1m.

Freight forwarder and logistics company Xpediator (XPD) achieved 2021 revenues of more than £300m, compared with forecasts of £250m. The pre-tax profit will be much more than £8.5m.

MAIN MARKET

Shipbroker Braemar Shipping Services (BMS) says that 2021-22 revenues will be at least £101m because the strong first half trading has continued into the second six months to February 2022. Operating profit should be at least £9.8m, up from £7.7m. Talks continue about the disposal of Cory Brothers.

Constellation Automotive has taken a 19.9% stake in motor dealer Lookers (LOOK) at the same time as it is completing its takeover of Marshall Motor. This will put Constellation in a strong position if there is a takeover battle for Lookers.

Hiro Metaverse Acquisitions 1 (HMA1) is a SPAC seeking acquisitions in video games, esports and other related areas. It raised £115m at £10 a unit (one share and 0.5 of a warrant).

Andrew Hore

Quoted Micro 31 January 2022

AQUIS STOCK EXCHANGE

NFT Investments (NFT) plans to acquire Pluto Digital Assets. NFT Investments has a non-binding letter of intent relating to the acquisition, which is valued at £96m – based on the issue of 2.4 billion NFT Investments shares at a nominal valuation of 4p each. That is equivalent to 9.3p a share. However, NFT Investments shares have been suspended at 2.475p (2.35p/2.6p). NFT Investments is lending £5m to Pluto, which is a crypto technology and operations company involved in decentralised finance and NFTs.

SuperSeed Capital Ltd (WWW) is set to join Aquis on 31 January, having raised £2m at 100p a share. SuperSeed is a Guernsey-based closed-ended collective investment scheme operating a fund of funds. Investments will primarily be in unquoted funds managed by SuperSeed Ventures. The initial funds will invest as a limited partner of SuperSeed Ventures II LP.

Capital for Colleagues (CFCP) has redeemed its A shares in investee company Bright Ascension and received the book value of £250,000. It still owns ordinary shares in the space software technology company worth £1.75m. Capital for Colleagues NAV was 70.9p a share.

Valereum (VLRM) has accelerated its purchase of the Gibraltar Stock Exchange. An option will be exercised to take the stake from 10% to 50%. Once change of control is allowed, Valereum will take its stake to 90%. The plan is to make the stock exchange one of the world’s first regulated integrated fiat and digital exchanges.

Samarkand Group (SMK) has become a FedEx alliance partner. FedEx clients will be able to use Samarkand’s Nomad ecommerce platform.

MiLOC Group (ML.P) says that one of its subsidiaries has received a claim for £202,000 that it says it is owed.

AIM

Hargreaves Services (HSP) reported a jump in profit thanks to a large contribution from German joint venture HRMS. In the six months to November 2021, revenues fell from £92m to £76.1m partly due to the past sale of the coal stocks to HRMS, although operating profit improved from £868,000 to £1.06m. Pre-tax profit was £10.4m, up from £1.08m, which includes a share of HRMS profit of £9.27m, up from £944,000. The interim dividend has been raised from 2.7p a share to 2.8p a share. Net assets are 462p a share.

Compliance and energy saving services provider Sureserve (SUR) is not paying a dividend even though net cash is £16.5m. The cash will be invested in acquisitions to grow the business. In the year to September 2021, revenues increased by one-quarter to £244m, while pre-tax profit was 77% higher at £13.8m. There was an improved profit contribution from compliance services, particularly the gas business, and energy services contribution recovered.

Acoustic and thermal insulation material manufacturer Autins Group (AUTG) continues to be hampered by electronic component shortages that have slowed car production. Demand from the automotive sector will return when these components are available. In 2020-21, revenues increased 9% to £23.4m. That is better than it appears because there was a £1m plus reduction in short-term PPE revenues. The main growth came in flooring sales.

Real Estate Investors (RLE) says occupancy is 85.75% and this could move to over 86% if expected lettings are secured. The total dividend for 2021 will be at least 3p a share, which is a yield of more than 7.5%.

Digital advertising services provider Dianomi (DNM) grew revenues by more than one-quarter in 2021. Growth is being supplemented by newer elements such as video and lifestyle. Underlying EBITDA will be slightly ahead of expectations and cash increased to £10.3m.

Velocity Composites (VEL) reported a slump in revenues in the year to October 2021, but the supplier of engineered kits for the aerospace sector is experiencing a recovery in demand. Airbus is likely to ramp up production and this could help revenues improve from £9.8m to £11.7m. It will still be loss making at that level. Longer-term, Velocity Composites has its sights on moving into the US aerospace model using the same model as in the UK.

Redx Pharma (REDX) is set to have three phase II clinical trials in process later in 2022. A 2mg dose has been selected for the RXC004 study for colorectal cancer and the other RXC004 study for pancreatic cancer and unselected biliary cancer. Both these studies have already commenced. There is also a phase II study for use of RXC007 as a treatment for idiopathic pulmonary fibrosis (IPF) starting later this year.  These studies mean that costs will increase. There was £29.6m in the bank at the end of September 2021 and a further $19m in milestone payments have been received since then.

M and C Saatchi (SAA) independent directors have rejected a revised offer from AdvancedAdvT (ADVT). The offer was 2.245 AdvancedAdvT shares for each Saatchi share or an alternative of 1.633 AdvancedAdvT shares plus 40p in cash for each share. The alternative is worth less than the all share offer. AdvancedAdvT says that it would move to AIM.

MAIN MARKET

ACP Energy (ACPE) is a standard listed cash shell seeking oil and gas acquisitions. It raised £830,000 at 5p a share. The share price ended the first day at 6.5p (5p/8p). The focus is the upstream oil and gas industry, particularly projects where oil and/or gas has already been discovered, which may be producing assets or ones where there has been some development spending. A minimum market capitalisation of £30m after the first acquisition is being targeted.

Air Partner (AIR) is recommending a 125p a share cash bid by Wheels Up Experience Inc, a provider of on demand private aviation in the US. This values the aviation services provider at £84.8m.

Associated British Engineering (ASBE) did not generate any revenues in the year to September 2021. NAV is 43p a share, including £489,000 in cash, although a Nasdaq investment has subsequently fallen in value. The trading business was sold in 2020.

Sivota (SIV) has entered into a conditional deal to acquire a majority stake in digital marketing platform Apester. There has been $36m invested in the technology and revenues were $9.2m in 2021.

OTHER MARKETS

FOS Holdings (FOS) has switched its listing from Vienna to the Cyprus Emerging Companies Market. FOS has decided to build film studios in Cyprus as part of a joint venture with Dias Media. The company’s subsidiary FOS Film Studios will have a 75% stake in the joint venture. The plan is to build a complex of three film and TV studios, plus additional facilities. There are plans to seek a loan from the EU and the Cyprus government is keen to have film infrastructure on the island. The first studio could be finished by the end of 2022. FOS has three films in early-stage development.

IPSX-listed building owner Mailbox REIT (MBOX) has declared a dividend of 1.75p a share for the fourth quarter of 2021. This is the first step in paying an annual dividend total of 7p a share. Mailbox REIT owns a single building in Birmingham and plans to switch 50,000 square feet of retail space into office accommodation. NAV is 101.9p a share.

Andrew Hore

Quoted Micro 24 January 2022

AQUIS STOCK EXCHANGE

Good Energy (GOOD) has agreed the sale of its generating assets ahead of the 11 February general meeting called by Ecotricity where it wanted shareholders to vote on any disposal. The initial payment by Bluefield Solar Income Fund is £16.4m, less a distribution of £700,000 since the lockbox date. Deferred consideration of up to £8.1m based on the performance of the assets. The book value was £17.7m. This will leave Good Energy substantially debt free with cash in the bank. This will enable further investment in Zap-Map and other transport and decentralised energy businesses.

Broker Arden has initiated research on CBD products and testing company Goodbody Health (GDBY) and set a 10p a share target price. The growth is coming from testing services and Goodbody Health is expected to move into profit this year. Currently 94% of testing revenues relate to Covid, but other blood tests are set to be in the majority by 2023.

Brewer Adnams (ADB) has decided to announce an interim dividend having not paid a dividend for more than two years. The A shares will receive 39p a share and B shares 156p a share. The ex-dividend date is 27 January.

Hydrogen Utopia International (HUI) has signed a letter of intent with Mitsubishi Heavy Industries, which will review the waste plastic to hydrogen technologies.

Cross border e-commerce technology provider Samarkand Group (SMK) has agreed a three-year contract extension with TEMPLESPA.

Cadence Minerals (KDNC) says that investee company European Metals Holdings has published an update to its 2019 pre-feasibility study for the 49%-owned Cinovec lithium mine in the Czech Republic. The post-tax NPV8 has increased to $3.09bn, although the upfront cost has also increased to $644m.

Recent new admission Kasei Holdings (KASH) has made $3.65m of cryptocurrency investments since joining Aquis. It has also made a $25,000 initial investment in Game-fi ecosystem company ZONE. Kasei had £3.7m available for investment.

Investment company Gledhow Investments (GDH) had cash of £525,000 at the end of September 2021, having raised £850,000 in a placing during the year. Net assets increased from £1.3m to £2.78m.

IamFire (FIRE) reduced its interim loss from £162,000 to £86,000. Since the half year end, IamFire has raised a further £4.75m.

NQ Minerals remains in administration and has been withdrawn from Aquis.

AIM

Pawnbroker and foreign currency exchange services company Ramsdens (RFX) reported a £600,000 pre-tax profit on revenues of £40.7m in the year to September 2021. Jewellery sales were strong both online and in stores. The foreign exchange division was hit by the lack of travel. This year the foreign exchange business should recover although it is difficult to assess by how much. Even so, there should be a jump in profit this year as Covid restrictions are removed.

Interim figures from small company finance provider Time Finance (TIME) reported flat interim revenues of £11.8m and pre-tax profit of £1.2m. Full year profit could improve from £2m to £2.9m, although earnings per share could be flat, but a much bigger jump is expected next year. NAV remains above the market capitalisation and there is a conservative provisioning policy.

Pressure Technologies (PRES) reported flat full year revenues, but the underlying loss was reduced. A good performance from the Chesterfield Special Cylinders, helped by defence orders, was offset by weak oil and gas demand for precision machined components. Net debt was £4.9m. There should be a return to profit this year. Demand for cylinders for hydrogen refuelling is building up and should become significant over the next few years. Oil and gas demand is also improving.

Ilika (IKA) expects to start to build up production at its new Stereax battery plant in Chandler’s Ford by the beginning of the next financial year. The production lines have been installed and the process and product qualification is underway. Revenues were £195,000 in the six months to October 2021. These came from grants relating to the Goliath technology. The Goliath battery technology is at an early stage and is suitable for uses where larger batteries are required, such as electric vehicles and consumer appliances. There will be minimal group revenues in the second half with the growth coming in 2022-23. Cash outflows will continue but there will still be cash going into 2024.

Kromek (KMK) had a tough first half due to component supply problems, but the imaging and detection technology company expects to have a much stronger second half. Interim revenue edged up to £4.71m, while full year revenues are expected to be £15m. There is 96% visibility based on current second half orders. Kromek continues to be loss-making, but it is still expected to have net cash at the end of April 2022. That is despite increasing component stocks. Kromek has won a seven-year imaging contract worth $17m.

Credit hire and legal services firm Anexo (ANX) says that 2021 revenues and profit have exceeded expectations. There were 2,300 credit hire vehicles on the road at the end of 2021. Progressive has upgraded its underlying pre-tax profit forecast from £20m to £24.5m.

Boku (BOKU) has sold its identity division to Twilio for up to $32.3m. This will stop those losses and help group profit to increase. In 2021, the payments division increased its revenues by one-fifth to $61.9m, while EBITDA rose by a similar proportion to $22.9m. Stripping out the identity division loss means that the 2022 pre-tax profit has been upgraded from $15.3m to $16.8m.

Growth is accelerating at domain name and online marketing services provider CentralNic (CNIC). The 2021 full year growth in revenues of 37%, was better than expected and higher than the 29% growth in the first nine months of 2021.

MAIN MARKET

LED lighting and wiring accessories supplier Luceco (LUCE) says that 2021 operating profit will be £39m as expected. There was strong growth last year, but this year will have tougher comparatives. Price rises have offset cost inflation but 2022 may be second half weighted in performance terms.

Tibergest is making a mandatory offer for Photo-Me International (PHTM) after acquiring 7.7% and taking its stake to 36.5%. It has to offer the 75p a share it paid for the latest stake. Tibergest is associated with Photo-Me chief executive Serge Crasnianski. There are no plans to cancel the listing.

CYBA (CYBA) is still in talks concerning the acquisition of PolySwarm, which has issued the Nectar (NCT) cryptocurrency token. The NCT price has increased to 17.34 cents and PolySwarm owns 339 million NCT.

Rockpool Acquisitions (ROC) has terminated the acquisition of Greenview Gas. Rockpool should get £1.25m back from Greenview.

GSTechnologies (GST) has acquired a Lithuanian crypto exchange licence through the acquisition of UAB Glindala. Change of control has to be approved. There are plans to open a crypto exchange in the second quarter of 2022.

Executive chairman John Rigg has bought more shares in IT services company Triad (TRD). He acquired 35,000 shares at 164.3p each and 50,000 shares at 133.5p. He owns 27.8% of Triad.

Toople (TOOP) has opened a second contract centre, which is supported by BT. The south Cheshire centre is up and running and will focus on new small business customers gained through BT. The company’s other contact centre is in South Africa.

Oxford Cannabinoid Technologies (OCTP) had cash of £12m at the end of November 2021. Phase I clinical trials for OCT461201 for the treatment of neuropathic and visceral pain could commence in the first quarter of 2023.

Andrew Hore

Quoted Micro 17 January 2022

AQUIS STOCK EXCHANGE

Failed bidder Ecotricity has requisitioned a general meeting at Good Energy (GOOD) in order to remove Will Whitehorn as a director and to stop the company selling generating assets without shareholder approval. The meeting will be held on 11 February. Ecotricity owns 25% of Good Energy. The sale of the generating assets is an important part of the company’s strategy. The cash would be used to reduce borrowings and invest in newer businesses, such as Zap-Map and other digital businesses.

Samarkand Group (SMK) has signed an exclusive distribution agreement with AIM-quoted Venture Life (VLG). The e-commerce technology platform will be the exclusive distributor of mouthwash Dentyl Dual Action and halitosis mouthwash Ultradex in China for an initial term of five years.

Hydrogen Utopia International (HUI) has signed a letter of intent with RZZO, which is a regional municipal waste management company in Ostrow Wielkopolski in Poland. RZZO will provide a plot of land where a HUI waste plastic to hydrogen plant can be sited and also source the plastic waste. They will seek funding from the EU as well as Polish grants. The heat would be fed into a district heating system.

Eastinco Mining and Exploration (EM.P) has identified 11 new pegmatite zones at its HCK joint venture in Rwanda. These are potential tantalum-niobium bearing zones. The sampling should be completed in February.

Apollon Formularies (APOL) has signed agreements with more than a dozen cannabis cultivators. They all have the appropriate licences. It has also set up the Apollon Kannabiz Cooperative to work with local Jamaican farmers.  Rod McIllree has been appointed as a non-exec director. He owns 29.1% of Apollon.

Western Selection (WESP) cut its stake in Northbridge Industrial Services (NBI) from 9.65% to 6.21%, while Harwood Capital has raised its stake to 16.9% to 20.4%. Western Selection raised £1.7m from the disposal.

EPE Special Opportunities Ltd (ESO) had net assets of 510.95p a share at the end of 2021.

Sativa Wellness Group Inc is changing its name to Goodbody Health Inc (GBDY).

Dispersion Holdings has changed its name to AQRU (AQRU), which is aligned with the brand of its retail online platform for lending cryptocurrencies.

Rutherford Health (RUTH) will leave Aquis on 25 January.

AIM

Frontier IP (FIPP) says the increase in the value of tis stake in the Nasdaq-listed Exscientia will be an important component of the rise in NAV at the end of 2021. NAV was 69.8p a share at the end of June 2021. A small portion of the shareholding has been sold and further sales are likely. This cash can be ploughed back into Frontier IP and help with new investments.

Legal services provider Gateley (GTLY) reported organic growth of 23% in the six months to October 2021. That partly reflects the weak comparative figures as well as underlying growth. All four divisions grew revenues with only the property division having a small contribution from an acquisition. Utilisation levels improved from 79% to 84%. Underlying pre-tax profit increased from £7.5m to £8.5m. The interim dividend was one-fifth higher at 3p a share. Management is seeking acquisitions to add to organic growth. There is normally a second half weighting to the figures.

Strong trading at Metro Rod and Metro Plumb is the major factor behind the growth at Franchise Brands (FRAN) and the B2C franchise brands are recruiting more franchisees. Full year pre-tax profit is expected to increase from £4.8m to £6.4m. Net cash was £8.6m at the end of 2021.

Corporation Financeiere Europeenne acquired shares in CIP Merchant Capital (CIP) taking its stake to 31.8%. This has sparked a mandatory bid at 55p a share. This is a substantial discount to net assets of 87.6p a share. The plan is to save the costs of being a quoted company.

Cornerstone FS (CSFS) has come to an agreement with Robert Lee concerning the £100,000 convertible loan facility he had promised. Instead of being convertible at a fixed price of 61p a share the convertible could be converted at the average mid-market price of the shares for the five dealing days prior to the drawdown of the loan if this is lower. This will mean that it is much more dilutive unless there is a sharp rise in the share price. The international payments company says 2021 revenues should be £2.3m with more generated by direct sales.

Specialist IFA Frenkel Topping (FEN) is paying up to £10m for Cardinal Management, which provides patient support at hospitals following traumatic events. This provides access to potential clients at an early stage.

Heart disease risk assessment technology developer GENinCode (GENI) has filed a pre-submission for its Cardio inCode-SCORE test with the FDA in the US. This will provide information ahead of a future marketing application. The test combines genetic risk with clinical risk to assess an overall risk of heart problems for a patient.

Oil palm plantations operator Dekel Agri-Vision (DKL) generated record figures in 2021. December crude palm oil production more than doubled and the total production for the year was 39,953 tonnes, up 17.5% on the previous year. Extraction rates are starting to improve. The average crude palm oil price was $868/tonne, which is 44% higher than in 2021. The crude palm oil price is currently more than $1,000/ tonne

Minds + Machines (MMX) decided to return the remaining cash to shareholders and cancel the AIM quotation. There will be 10.4p a share tender offer.

Vector Capital (VCAP) has increased its debt facilities by £5m to £35m. In 2021, the total loan book rose by 27% to £46.3m. This is ahead of expectations.

Capital equipment supplier Mpac Group (MPAC) says it traded in line with expectations in 2021. A pre-tax profit of £8.2m is forecast. The closing order book was £77m. The 2021 results will be published on 14 March.

Holders Technology (HDT) is paying a special dividend of 2p a share on 28 January in addition to a final dividend which will be announced with the 2021 figures. The interim dividend was 0.5p a share. This follows the disposal of some of the company’s PCB assets for around £1.7m.

Mosman Oil and Gas (MSMN) has dropped its plans for a 100-for-one share consolidation after negative feedback from shareholders.

MJ Hudson (MJH) has gained a multimillion contract to advise the ACCESS local government pension scheme over a seven-year period. This covers eleven local authority pension schemes. They have £35bn in pooled assets.

MAIN MARKET

Cash shell Electric Guitar (ELEG) joined the standard list on 11 January. It raised £1.2m at 3p a share and the share price has risen to 3.7p. The current NAV is 1.78p a share, which is effectively all cash. Electric Guitar is a shell seeking acquisitions in the digital advertising sector. There could be opportunities to consolidate smaller agencies. A suitable target will be run by management with a good record, be involved in growth areas, have good quality clients, an existing IT platform and be scalable. It should be near to cash generation. The company acquired would have an enterprise value of at least £5m.

East Star Resources (EST) has gained readmission to the standard list following the acquisition of Discovery Ventures Kazakhstan. A placing raised £3.1m at 5p a share.

Canadian Overseas Petroleum (COPL) has made a significant oil discovery in Wyoming. The discovery has between 1.5 billion and 1.9 billion barrels of oil in place.

PYX Resources Ltd (PYX) has begun sales of rutile from its Mandiri deposit in Indonesia with production of ilmenite and leucoxene starting later in the year.

One Heritage Group (OHG) is acquiring Seaton House in Stockport for £675,000. This is an office building, and the plan would be to convert it into up to 30 apartments. The gross development value is £5.6m.

Andrew Hore

Quoted Micro 20 December 2021

AQUIS STOCK EXCHANGE

The ecommerce technology and brands retailer Samarkand Group (SMK) reported lower interim revenues because of a one-off PPE contract in the previous period. There was a small underlying dip in revenues to £7.17m as the wholesaling business is being run down to a less important level of operations. The two core parts of the business grew revenues. The company’s brands generated £2.25m and the NOMAD ecommerce technology business generated just over £3m. Samarkand remains loss-making. Net cash was £8.8m at the end of September 2021, but Samarkand subsequently acquired Napiers the Herbalists for an initial consideration of £1.7m in cash. Revenues continue to grow at an accelerating rate. The current focus is organic growth through adding new clients.

Rural Broadband Solutions (RBBS) is acquiring Cadence Networks for £80,000 in cash and the issue of two million shares at a notional price of 7p each. Cadence is an internet service provider with revenues of £145,000. It has three data centres in London that Rural Broadband Solutions can use to build its national data network to replace third party providers. This will help to improve gross margins. There are 2,733 premises connected to the fixed wireless network of Rural Broadband Solutions. A placing is raising £1.675m at 3p a share. Directors are subscribing for 18.3 million shares. Investec Bank will advise on infrastructure funding.

VSA Capital (VSA) reported interim revenues of £1.16m and a loss of £235,000. This reflects the delay in the flotation of Tungsten West, which subsequently generated revenues of more than £1m.

Walls and Futures REIT (WAFR) has sold its residential property in Southfields for £662,500, which is a 2% premium to its valuation. This is the final private rental property in the portfolio.

Love Hemp Group (LIFE) generated revenues of £4.33m in the year to June 2021 and revenues from major retailers are increasing. Plans to move to the Main Market are progressing.

Apollon Formularies (APOL) has completed its high-volume processing laboratory. Processing capacity has increased to 20 litres of medicinal cannabis oil a day.

BWA Group (BWAP) says that the independent expert review of the two 90%-owned mineral sands projects in Cameroon supports the potential for significant mineralisation. BWA intends to drill 2,500 metres at Nkoteng and 1,500 metres in Dehane in the first quarter of 2022. An initial mineral resource estimate is expected by next summer.

Igraine (KING) says 2%-owned investee company Excalibur Medicines has completed the ARCADIA phase II clinical trial to assess a potential treatment for diabetics with Covid-19. The trial shows that AZD1656 reduced mortality in patients in combination with other medication. There are no safety concerns

S-Ventures (SVEN) has raised £3m at 70p a share and it will spend the cash on growing its food and wellness businesses. Clean Invest Africa (CIA) has raised £102,000 at 0.5p a share. IamFire (IAF) has raised £4.75m at 3p a share. EPE Special Opportunities (ESO) has raised £20m from a zero dividend preference share offer. EPE has spent £1.1m and £175,000 buying back ordinary shares at 330p each and 350p each respectively.

Rutherford Health (RUTH) has arranged an £8m loan at an annual interest rate of 15%. Schroder UK Public Private Trust and other shareholders will provide the loan in two tranches of £4m. There is also a convertible loan of £2m from LF Equity Income Fund – the conversion price is 176p. This will provide the working capital needed and a longer-term financing will be arranged next year. The cash is required because the cash for the £12.35m placing with SDI Holding has not been received. The acquisition of Proton Partners International has also not been completed.

Western Selection (WESP) has reduced its stake in AIM-quoted Northbridge Industrial Services (NBI) from 11.35% to 9.65%. The sale, at 159.7p a share, raised £791,000. That is a gain on the balance sheet value of £216,000. Harwood Capital has increased its stake from 15.1% to 16.9%, including an unchanged 13.4% held by Gresham House Strategic (GHS).

New chief executive Andrew Carter has bought 66,079 shares in Chapel Down Group (CDGP) at 45.4p each. He owns 99,699 shares. Voyager Life (VOY) chief executive Nick Tulloch bought 537,776 shares at 18p each and chairman Eric Boyle acquired 519,112 shares at the same price. They own 14.3% and 9.1% respectively. Burns Singh-Tennent has bought one million shares in Oscillate (MUSH) at 2p each. He owns 5.22%.

AIM

NWF (NWF) had a successful first half even though feed volumes were disappointing and group figures will be much better than the previous year. Actions taken to retain drivers have helped the fuels and food distribution divisions. Fuels has done better than expected with a short-term boost from fuel shortages, which NWF did not suffer from, in the autumn. The food distribution business is benefiting from increased capacity. Net debt has fallen providing further scope for fuels acquisitions.

Totally (TLY) is acquiring Energy Fitness Professionals (Energy Fit-Pro), which provides workplace fitness services. The total cost will be up to £1.3m and Totally still has plenty of cash to finance further acquisitions. In the year to March 2021, Energy Fit-Pro made a pre-tax profit of £445,000 on revenues of £984,000. There will be cross-selling opportunities.

Digital transformation services provider Made Tech Group (MTEC) grew interim revenues by 131% to £11.7m thanks to the focus on the public sector. Hiring continues ahead of anticipated growth. Short-term gross margin was reduced due to the increased use of contractors.

Multi-utility connections and electric vehicle charging installer Fulcrum Utility Services Ltd (FCRM) is raising £19.5m at 12p a share and it could raise up to £6m more via an open offer. The placing and open offer price is below the underlying NAV of 15.4p a share, although more than 50% of that figure relates to intangible assets. The order book was £80.9m at the end of September 2021.The cash will be used to invest in the smart energy infrastructure sector as meter asset provider (MAP).

Acquisitions and tax adviser K3 Capital (K3C) expects to report a 30% increase in interim revenues to £30m through a combination of like-for-like growth and acquisitions. The diversification into additional services provides a stronger base for the group.

Hurricane Energy (HUR) could make a $54m write-off on its activities in the Greater Warwick area (GWA) of the North Sea because it does not want to fund the drilling obligations under the licence.

Tungsten Corporation (TUNG) founder Edmund Truell and his associates are backing a possible bid of 40p a share by Kofax Inc. California-based Kofax is an automated software provider that simplifies the handling of data. The board says that the bid significantly undervalues the digital invoicing business. Cloud-based automation technology provider Jaggaer LLC has decided not to make a rival bid but venture capital firms Accel-KKR, could still make an offer.

Deepmatter Group (DMTR) is seeking more cash, but it will take until early next year to secure additional investment for the digital chemistry data company. At the end of June 2021, Deepmatter had £1.8m in cash and that has fallen to £400,000. Deepmatter is loss-making.

Printed circuit technology developer Trackwise Designs (TWD) is raising £6m at 80p a share, which is a significant discount to the market price at the time of the announcement. An open offer could raise up to £1m. Capital equipment deliveries were delayed, although the EV contract will start next year.

Sovereign Metals Ltd (SVML) was listed on the ASX and obtained a secondary quotation on AIM. A scoping study for the Kasiya rutile project confirms that it is a significant deposit. The NPV8 after tax is $861m with a mine life of 25 years. The capital cost is estimated at $332m.

Youth-focused digital media company LBG Media (LBG) joined AIM in order to build a cash pile on the balance sheet so that organic and acquisitive growth can be achieved. It raised £30m at 175p each, leaving pro forma net cash of £27.1m. The share price ended the first day at 200p and the week at 193.45p.

DSW Capital (DSW) licences its brand to professionals involved in corporate finance and accounting services and provides them with back office support. Many individuals become licensees after working with major accountancy firms. Warrington-based DSW believes that the flotation will boost the profile of the business and enable it to grow geographically and broaden the services provided. DSW raised £5m at 100p a share and the price ended the week at 123.5p.

In the six months to October 2021, Begbies Traynor (BEG) revenues were 39% ahead at £52.3m. Underlying pre-tax profit jumped 60% to £8m thanks to an improvement in operating margin from 14.4% to 16%. Net cash was £1.2 million at the end of April 2021.

Public Policy Holding Company Inc (PPHC) provides public affairs, crisis management and lobbying services in the US. It has three subsidiaries in the top 20 US lobbying firms. A placing raised £11.1m at 135p a share. Although the company has reported losses, a change in bonus arrangements will make it profitable.

Problems at the CHESS naval systems subsidiary led to a slump in interim profit at defence firm Cohort (CHRT), but it still increased the interim dividend by 10% to 3.85p a share. The group order book remains strong and includes some large orders. A new managing director has been appointed at CHESS.

Jade Road Investments Ltd (JADE) says that the structure of restaurants group Fook Lam Moon has changed, and it may no longer own 71%. This could lead to a partial or full provision of the $29.1m valuation in the balance sheet.

MAIN MARKET

Anemoi International (AMOI) has completed the acquisition of id4 AG for £5.33m, with an initial payment in shares with 50% deferred and dependent on achieving targets over the next five years. The SaaS-based business provides anti-money laundering and know your client software products. A placing raised £2.175m at 4p a share.

Spinnaker Acquisitions (SPAQ) is planning to acquire leak detection technology developer HomeServe Labs, from fully listed HomeServe (HSV) for a mixture of cash and shares. The business trades under the name LeakBot and it helps insurers to reduce claims costs. Insurers can provide LeakBot to homeowners free of charge. The company would be renamed Ondo InsureTech.

Marine technology products developer OTAQ (OTAQ) is raising £1.38m at 22p a share. Interim revenues fell from £2m to £1.8m. Net debt was £800,000 at the end of September 2021. The regulatory review in Scotland has held back progress and it continues to do so. There are plans for new product launches.

Publisher National World (NWOR) says full year revenues will be around 85%, following the purchase of JPI Media, with growth in digital income and a slowing in the rate of decline of print revenues. There should be cash of £23m at the end of 2021.

Andrew Hore

Quoted Micro 8 November 2021

AQUIS STOCK EXCHANGE

There are three companies on the shortlist of the AQSE company of the year award at the Small Cap Awards 2021. They are medical IT provider DXS International (DXSP), oncology and dermatology treatments developer Incanthera (INC) and Kent-based wine maker Chapel Down Group (CDGP).

Brewer Daniel Thwaites (THW) was hampered by lockdowns in the six months to September 2021, but they were not as bad as in the first half of the previous year. Revenues increased from £221.8m to £47.8m, while the business returned to profit with £7.5m before tax. Net debt was £61.4m at the end of September 2021. Government support has come to an end and there are inflationary pressures, only partly offset by beer duty changes.

Quantum Exponential (QBIT) is a shell focused on quantum technology and predominantly companies in NATO countries. There are no other quoted companies offering a potential investment in this sector. The plan is to put together a portfolio of quantum technology company investments, which are most likely to be at the seed or early stage. Quantum computing uses the laws of quantum physics to increase the speed of computation. Nearly £2.5m was raised after expenses at 5p and the share price ended the week at 6.625p (6.25p/7p). The NAV is 1.65p a share, so the current share price is more than four times that level. Helium Special Situations has taken a 4.57% stake.

Kashei Holdings (KASH) intends to build up a portfolio of investments in cryptocurrencies and blockchain. The portfolio will include digital assets, listed investments, venture capital opportunities and staking digital assets into liquidity smart contracts and perform staking services. There should be around £3.7m available for investment, although 10% of that will be required for working capital, following the placing at 16p a share. The current mid-price is 20.25p (19.5p/21p). Pro forma NAV is 13.1p a share.

Samarkand Group (SMK) is acquiring Napiers the Herbalists, which it has been trading with for three years. The initial consideration is £1.7m in cash with deferred consideration of £100,000. There is also contingent consideration of up to $700,000. In the year to March 2021, revenues were £1m and EBITDA was £240,000.

All Star Minerals (ASMO) signed exclusive heads of terms with a company with gemstone assets and another company with diamond assets. It has terminated the gemstone deal and extended the potential diamond deal. The potential acquisition has white and coloured diamonds and an off-take and financing agreement. Ian Harebottle, the interim chief executive of All Star Minerals, owns 25% of the diamond company.

Vulcan Industries (VULC) has signed heads of terms to acquire Aftech, which is a sheet metal fabrication company that fits in with existing subsidiaries. Aftech has net assets of £780,000 and net debt of £90,000. Full year revenues are estimated to be £1m with EBITDA of £175,000. Vulcan will pay £1.55m in shares and this may represent 21.5% of the enlarged share capital.

TruSpine Technologies (TSP) has submitted a request to the FDA to consider the Cervi-LOK system as a breakthrough device technology. That would enable the device to generate higher margins.

Coinsilium Group Ltd (COIN) had crypto assets of $4.22m at the beginning of November 2021. That is more than double the value at the end of June.

Rutherford Health (RUTH) increased interim revenues by 36% to £4.85m in the six months to August 2021. September revenues were more than £1m. More oncologists have been trained to use the company’s technology. Rutherford Health will continue to lose money.

Pioneer Media Inc (PNER) has acquired CryptoPunk 8869 for $433,700.

Asia Wealth Group Holdings (AWLP) increased interim revenues from $894,000 to $940,000, while pre-tax profit improved from $117,000 to $123,000. There was $1.36m in the bank at the end of August 2021.

AIM

Online electrical retailer Marks Electrical (MRK) specialises in kitchen appliance, audio visual products and small electrical appliances and has been growing its share of the market. Since 2014, Marks Electrical has increased its market share from 0.41% to 1.22%. A placing raised £2.63m after expenses at 110p each and shareholders sold shares worth £25m. The company’s warehouse has enough capacity to cope with revenues of £180m, more than treble last year’s level. The shares ended the first day at 110.5p.

Devolver Digital Inc (DEVO) is the latest video games publisher to join AIM. The Delaware-based company’s original focus has been indie games produced by third parties, but more recently it has been acquiring companies with their own IP. The cash raised by the company in the placing will be used to acquire strategic partners and finance the development of third party and in-house games. Nearly £30m was raised after expenses and the price has risen from the placing price of 157p to 187.5p. The overall video games market is forecast to grow from $177.8bn to $218.7bn in 2024.

Escape rooms operator Escape Hunt (ESC) is acquiring Boom Battle Bars, which offers competitive socialising activities along with drinks and food. The total cost is £17.38m, with £9.88m in cash and deferred consideration of up to 25 million shares. The shares are subject to an earn-out based on revenues number of sites open. Escape Hunt raised £15m at 30p a share and could raise up to £2.2m from a one-for-12 open offer at the same share price. The acceptance date is 19 November. The enlarged group will be renamed XP Factory.

Self-storage sites operator Lok’nStore (LOK) had a much more significant than forecast uplift in its NAV at the end of July 2021. It increased from 555.5p a share to 731.1p a share. This year the dividend has been raised by 2p a share to 15p a share. The additional sites in progress will add 38% to space over the next few years.

Bleepa communications technology developer Feedback (FDBK) is raising £10m in a placing at 0.7p a share to take advantage of opportunities and finally build up revenues. There is also a one-for-15 open offer to existing shareholders that can raise up to £500,000 more. The CareLocker technology that is being piloted in Sussex could be a game changer. Combined with Bleepa it can store patient records individually in the cloud instead of in one place where it is easier to hack.

Gensource Potash (GSP) was already quoted on the Toronto Venture Exchange before joining AIM, and its focus is the Tugaske potash project in Canada. Gensource owns 67% of the vehicle that owns the project and has arranged finance to cover the C$352m cost of building the mine. The Tugaske project’s proven and probable mineral reserve is 14.1 million tonnes and there is a likely minimum expected mine life of more than 56 years, based on annual production of 250,000 tonnes of saleable muriate of potash. The share price ended the first day at 27.5p.

Remote tracking and monitoring technology provider Starcom (STAR) is changing its name to t42 IoT Tracking Solutions and rebranding its products. There will also be an eight-for-one share consolidation.

MAIN MARKET

In the six months to August 2021, Braemar Shipping Services (BMS) revenues grew by 11% to £47.4m, while pre-tax profit improved from £4.47m to £4.92m. The order book is 28% ahead at $55.5m. Net debt has fallen to £14.7m. There is a 2p a share interim dividend.

IT services provider Triad Group (TRD) reported a decline in interim revenues, but pre-tax profit jumped from £1,000 to £670,000. There is a 2p a share interim dividend. There is cash of £5.34m. high utilisation levels are continuing.

Andrew Hore

Andrew Hore – Quoted Micro 9 August 2021

AQUIS STOCK EXCHANGE

Chapel Down (CDGP) has announced Andrew Carter as successor to chief executive Frazer Thompson in September 2021.

National Milk Records (NMRP) increased its fourth quarter revenues by 7% to £5.72m. Milk recording revenues grew by 9%. The corresponding period did cover the initial lockdown. Milk prices are holding up at levels where dairy farmers will be profitable. The first phase of IT investment will be up and running later this year.

Boanerges Ltd (BNRG) has paid £25,000 for an option to invest £2m for a 14.3% stake in Fintech Digital Platforms, which owns property search internet portals.

Samarkand (SMK) has secured an extension to its distribution contract with skincare brand 111SKIN until the end of July 2023. Non-exec Keith Higgins has bought 21,739 shares at 146p a share.

Inqo Investments (INQO) had significant write-offs and bad debt provisions in the year to February 2021. This contributed to the more than doubled loss of R13.4m as revenues slumped from R24.4m to R4.2m. The total cash outflow was R14.7m and cash fell below R1m. Kuzuko Private Game Reserve will reopen in September. Uganda-based Four One Financial Services and Kenya-based South Lake Medical Centre both made higher interest payments to Inqo.

S-Ventures (SVEN) has taken a 50% stake in Vegan Punk Ventures and invested up to £100,000 in loans. The brand is PlantPunk and it has a range of ZeroBeef meat alternatives. Dave Ahern will be managing director and third-party investors will provide loans of up to £50,000.

Altona Rare Earths (ANR) had cash of £436,000 at the end of June 2021.

Helium Ventures (HEV) continues to trade at a premium to its 10p placing price. The share price is currently 32.5p (31p/34p). James Sheehan has increased his stake from 8,5% to 9.47%.

Eight Capital Partners (ECP) has sold its stake in Finance Partners Group for €2.15m and €1.57m of this has been received. The original cost was €1.9m. The investment focus will be fintech.

Vulcan Industries (VULC) has raised £223,000 at 1.46p a share and issued £48,000 worth of shares at 2p each.

Veni Vid Vici has changed its name to VVV Resources (VVV). Angelfish Investments has changed its name to Igraine (KING). DicovORE has changed its name to Oscillate (MUSH).

Trading in First Sentinel, which has changed its name to Omni Egis (OMNI) and NQ Minerals (NQMI) shares has been suspended ahead of publication of their respective accounts. Freyherr International (FRYR) has withdrawn from Aquis.

AIM

In 2020-21, NWF (NWF) did not manage to match the previous year’s profit performance of the fuels division, but the cold winter and home working meant that the performance was better than expected. Management is keen to make further acquisitions to broaden the geographic spread of the fuels business. Overall, group pre-tax profit was 10% lower at £11.9m. The efficiency improvement in the food warehousing division meant that its profit contribution was higher. The feeds division reported a lower profit but with milk prices over 30p per litre the outlook is positive for dairy feed.

Higher second half sales and improved efficiency helped Filtronic (FTC) maintain profitability at £200,000 even though full year revenues fell 9% to £15.6m. The telecoms and RF components and equipment supplier generated cash and net cash improved to £2.8m at the end of May 2021. 5G investment and moves into newer markets, such as space, provide a positive outlook for the future and profit should build from now on. Revenues are expected to grow by 16% this year and pre-tax profit of £500,000 is forecast.

The latest trading statement from Belvoir (BLV) confirms a strong first half with revenues growing by two-fifths, due to buoyant house sales. The steadier lettings income has grown by 13% – 10% organically, which is much faster than the market.

Maestrano (MNO) has secured a five-month proof of concept contract with Network Rail for HS1, the high speed line that goes to the channel tunnel. This will monitor overhead lines, vegetation, track and passing clearances. HS1 is the same specification as European tracks so it could provide a way into the European market.

Microbiome-based products developer Optibiotix Health (OPTI) generated a 44% increase in interim revenues to £1.07m with LP LDL probiotic cholesterol-reducing products and Slimbiome products accounting for most of the revenues.

Seeing Machines (SEE) 2020-21 revenues were 2% ahead of expectations at A$47.3m. There was $47.7m in the bank at the end of June.

Xpediator (XPD) has formed a strategic partnership with e-commerce fulfilment company Synergy Retail Support and is providing space at its Braintree warehouse.

MAIN MARKET

Argo Blockchain (ARB) generated July revenues of £5.6m, up from £4.36m in June, even though the average bitcoin price fell. A Nasdaq listing is being considered.

Challenger Acquisitions has changed its name to Cindrigo Holdings (CINH) following the completion of the acquisition of the renewable energy products business.

Kanabo (KNB) has a stake in medical cannabis cultivation company Hellenic Dynamics, which is being acquired by AIM-quoted UK SPAC (SPC) for £45.2m in shares at a minimum price of 0.472p a share. The £750,000 investment in Hellenic will be converted into shares at a minimum 30% discount to the prospective. UK SPAC intends to move to the standard list.

Starcrest Education (OBOR) has signed heads of terms to acquire 80% of National Training Company. Starcrest is not going ahead with the acquisition of The London School of Science and Technology and costs of £1.2m have been written off. There was £700,000 in cash left at the end of June 2021.

Andrew Hore

Andrew Hore – Quoted Micro 2 August 2021

AQUIS STOCK EXCHANGE

Brewer Shepherd Neame (SHEP) says trading has picked up since 12 April and was even better from 17 May. Beer volumes are good, but the company lost money in the year to June 2021. Between 12 April and 26 June managed pub revenues were 84% of the same time in 2019, while tenanted pubs achieved 77% of the volume in 2019. Tenanted pubs return to paying normal rent on 2 August. Net debt is £89.8m.

Brands owner and ecommerce technology platform operator Samarkand (SMK) increased its revenues by 201% in the year to March 2021, but that was flattered by one-off personal protective equipment revenues. Since the year end a Tokyo office has been opened. The latest technology, Nomad Checkout is being piloted.

Oberon Investments (OBE) more than trebled its revenues to £3.8m in the year to March 2021. Assets under administration increased by 340% to more than £550m and more investment management firms were acquired after the year end. The broking operation has already started to win clients and has raised £30m since June 2020. There were record first quarter revenues. Chris Akers has taken a 3.58% stake.

CBD and hemp products supplier Love Hemp (LIFE) has increased its full year revenues by 60% to £4.31m, although second half revenues were lower than those in the first half, which benefitted from large orders by Boots and Holland and Barrett. This year online revenues are expected to increase significantly.

NQ Minerals (NQMI) has requested that trading of the shares on Aquis should cease. There are problems with the company’s 2020 accounts. Begbies Traynor has been appointed to advise on restructuring, but the board is unsure whether the company can continue trading.

KR1 (KR1) has invested $100,000 in the Redstone project, which will be changed for tokens at a later date. Redstone is a cross-chain data oracle technology that provides fast access to data and historic audit trail. A further $269,892 was invested in Interlay for 1,224 series seed shares.

S-Ventures (SVEN) has acquired plant-based nutrition products supplier Pulsin for £2m in cash, £2m in loan notes and 15.18 million shares. The issue of three million of the shares is deferred and dependent on sales in 2021. Pulsin has net debt of £1.2m and generated sales of 37.05m in the year to April 2021. S-Ventures already owns Ohso Chocolate and snacks firm We Love Purely.

EPE Special Opportunities (ESO) has invested £22.5m for a majority stake in a company that owns homeware brands, including Kilner, Viners, Typhoon and Ravenhead. In 2020, revenues were £35.6m.

Dispersion Holdings (DEFI) had net cash of £8.8m at the end of July 2021. It has also invested £910,000 in decentralised finance investments.

Black Sea Property (BSP) is selling a property in Cyprus for €1.06m, compared with a valuation of €830,000.

Coinsilium (COIN) has moved to the Apex segment.

AIM

Big Technologies (BIG) provides remote and personal monitoring services, predominantly to the criminal justice market, and the technology has been developed over more than a decade. The company raised £14.7m after expenses at 200p a share. There was also £185.6m raised by existing shareholders, which sold around one-third of the shares in issue. In three days of trading the share price soared to 355p, which values the company at £1bn. Revenues increased from £19.3m in 2019 to £29.6m in 2020 thanks to new contracts and additional revenues from existing customers. Pre-tax profit jumped from £5.53m to £12.7m.

Tracsis (TRCS) has won a multi-year contract for its RailHub planning software. The deal is worth several million pounds, and this will make an initial high margin contribution to the financial year to July 2021. It sparked a £1m uplift in the 2021 profit forecast to £10.5m.

The Property Franchise Group (TPFG) has doubled interim revenues, helped by the Hunters acquisition early this year. Organic growth was 35%.

Hostels operator Safestay (SSTY) had a tough 2020 and has just published its 2020 figures. It achieved 38% occupancy in its hostels when they were open. The loss was £10m. NAV is £28.5m. Leasehold sales have helped to reduce bank debt to £18m in July 2021. There are 16 hostels currently trading and the other two are set to reopen.

Seed Innovations (SEED) has a 5.1% stake in Canadian Stock Exchange listed CDD and health products supplier Yooma Wellness Inc, which is joining Aquis on 10 August.

MAIN MARKET

Spinnaker Acquisitions (SPAQ) is a new cash shell that has been brought to the market by the same team that floated Spinnaker Opportunities, which eventually acquired cannabis products supplier Kanabo (KNB). It raised £2.08m at 10p a share. The share price has risen to 12.5p, but there is a wide spread of 10p/15p. Spinnaker is seeking to acquire a business in the sustainability and energy transition services markets.

Motor dealer Lookers (LOOK) outperformed the market in the first half of 2021 with a like-for-like increase in vehicle sales of 45%. The interim profit will be around £50m, which is one-fifth higher than previous expectations.

Andrew Hore

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