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Quoted Micro 11 April 2022

AQUIS STOCK EXCHANGE

NFT Investments (NFT) is not going ahead with the acquisition of crypto tech and operations company Pluto Digital Assets and trading in the shares has recommenced. NFT had cash of £21.9m, having made seven investments, and net assets of £34.4m, 3.43p a share, at the end of 2021.

National Milk Records (NMRP) is linking up with another former Milk Marketing Board business Genus (GNS). National Milk Records will provide the fully listed animal breeding company with multi-panel genomic testing and evaluations. The two firms have been part of a process to map the DNA of the worst cows and bulls in terms of environmental impact. Farmers will be able to choose to breed cows with lower impact and highest milk yields. The initial contract lasts for five years.

Asimilar Group (ASLR) has joined the Access segment of the Aquis Stock Exchange. The technology investment company hopes that this will improve share liquidity. The AIM-quotation is being maintained but may be terminated to save money if the new quotation is successful.

Rogue Baron (SHNJ) has signed two new distribution deals. Oak and Still will distribute Shinju whisky in the UK from April 2022. Beverage Hunters will be the distributor in Spain from May.

Vanadium flow batteries technology developer Invinity Energy Systems (IES) has successfully concluded a validation programme by Korea-based Hyosung Heavy Industries and signed a non-binding memorandum of understanding for a global partnership and exclusivity in Korea.

Talent management and livestreaming company All Things Considered (ATC) increased revenues and other operating income by 23% to £9.9m in 2021. The loss is likely to be £2.8m. There was £4.4m in cash at the end of 2021. The live music market continues to recover. All Things Considered has invested $6m from a short-term promissory note into a new company focused on music digitisation and blockchain technology. This is a minority investment out of a total of $80m. The full year figures should be published in May.

Chapel Down Group (CDGP) has been appointed as the official sparkling wine supplier to the English Cricket Board. The company’s sparkling wines will be given to the winners of internationals and domestic finals.

Cadence Minerals (KDNC) says that iron ore stockpile shipments have started from the Amapa project in Brazil.

Eastinco Mining (EM.P) has discovered 16 new pegmatite zones following geochemical sampling at its HCK joint venture in southern Rwanda. This takes the total to 18.Surface geological exploration is underway at Musasa.

Clean Invest Africa (CIA) has renegotiated its loan facility and the £5m deemed to be outstanding has been changed into convertible loan stock that is convertible into shares at 1p each. There will be immediate conversion of £4.47m of loan notes.

Gunsynd (GUN) invested £75,000 into First Tin (1SN) at the placing price of 30p, having already invested £125,000 at 15p a share. The share price ended the first day at 30p.

AIM-quoted Vela Technologies (VELA) has acquired a 28.8% stake in healthcare and medtech firm Igraine (KING) for £404,000 or 1.8p a share. Richard Edwards had previously sold his 10.3% stake.

Giles Brand has increased his stake in EPE Special Opportunities (ESO) from 32.1% to 33.4%.

Aquis Exchange (AQX) non-exec chairman Glenn Collinson has bought an initial stake of 12,003 shares at 512p each. Shepherd Neame (SHEP) director Richard Oldfield has bought 25,000 shares at 837.4p each and 15,000 shares at 835.35p each. Hot Rocks investments (HRIP) non-exec chairman Brian Rowbotham bought 715,000 shares at 0.7p each and he owns 3.5%. Non-exec director Charles Vaughan has taken his stake to 2.53% after purchasing 1.5 million shares at 0.65p each.

AIM

The London Stock Exchange says that Arden Partners (ARDN) will lose its nominated adviser status if the merger with legal services provider Ince (INCE) goes ahead.

The Property Franchise Group (TPFG) revenues more than doubled to £24m, while pre-tax profit jumped from £4.77m to £6.42m thanks to the acquisition of rival Hunters Property. There is more to come. More financial advisers are being recruited and more of the franchisees are taking advantage of the services. The total dividend of 11.6p a share was higher than expected.

Belvoir Group (BLV) generated organic revenue growth of 25% last year. In 2021, pre-tax profit jumped from £7.5m to £10.3m, while the dividend is 8.5p a share. Management expects the residential sales part of the business to return to normal levels following the ending of incentives, while the lettings and financials businesses continue to grow.

Gaming machine monitors and consoles supplier Quixant (QXT) generated 2021 revenues of $87.1m, while pre-tax profit was $5.4m. Net cash is $17.6m. Screens supplier Densitron achieved the highest sales since it was acquired. Revenues are increasing from higher value added products.

Trading levels of most of the businesses of Tracsis (TRCS) have got back to previous levels, although the traffic data division recovery was delayed. In the six months to January 2022, group revenues were 31% ahead at £29.2m, while underlying pre-tax profit improved from £4.1m to £5m. The interim dividend is 0.9p a share. The recent US acquisition provides a customer base in the US, which is not as far advanced in terms of rail optimisation software as the UK.

Freight forwarding and transport services both improved their profit contribution to Xpediator (LSE: XPD) in 2021. The warehousing and logistics profit slumped due to problems in the UK. Pre-tax profit rose by one-quarter to £9.1m in 2021. The total dividend was reduced to 1.1p a share. A special dividend is a possibility this year, though. A new chief executive is still being sought.

Ecommerce technology provider Attraqt (ATQT) increased full year revenues by 9% to £22.9m but continued to lose money. There was £3.5m in the bank at the end of 2021 and management hopes to be cash neutral in 2022.

SourceBio International (SBI) grew Covid-19 testing revenues and core divisions also improved revenues during 2021. Group revenues grew from £50m to £92.5m, but they are expected to decline to £39.5m in 2022. That masks sharply higher core revenues partly due to a recent acquisition. The Covid testing labs can be converted to other uses.

Floorcoverings supplier Likewise (LIKE) says that first quarter of 2022 is ahead of budget. The Birmingham logistics site is up and running. The latest acquisition is Delta Carpets, which is earnings enhancing.

Anglesey Mining (AYM) has made the switch from the Main Market to AIM. It had been listed since May 1988. The company’s main asset is the 100%-owned Parys Mountain copper lead zinc deposit in Anglesey, north Wales. Other assets include a 20% interest in the Grangesberg iron project in Sweden. There is a right of first refusal to increase the stake to 70%. The share price moved up by 0.01p to 4.06p on the first day of trading on AIM.

MAIN MARKET

First Tin (1SN) raised £20m at 30p a share and ended the first day of trading at 30p (29p/31p). First Tin issued 60 million shares to acquire Taronga Mines, which owns Australian tin mining assets. The company already owned German tin projects. The cash raised should last for 18-24 months.

Radiology services provider Medica Group (MGP) had a much stronger second half to 2021. Revenues from elective surgery where slightly lower in the first half because of the effect of lockdowns and restrictions. The 2021 group revenues improved from £12.5m to £17.3m as surgery activity built back to previous levels. In 2021, group revenues improved from £36.8m to £61.9m, while underlying pre-tax profit increased from £4.74m to £11.5m. That excludes £4.13m of non-underlying costs, including amortisation, share based payments and one-off professional fees of £555,000. Net cash was £3.88m at the end of 2021. There is potential contingent consideration of £6.89m. The total dividend is 5% higher at 2.68p a share.

DG Innovate (DGI) completed its reversal into Path Investments. The company was acquired for £32.4m in shares issued at 0.6p each and has two operations. The first is developing electric drive technology and the other is developing sodium-ion batteries. The £2.55m raised at 0.5p a share, plus the £2.08m raised from warrants exercised at 0.25p each, will help to commercialise these technologies. The share price ended the first day at 0.34p, which is higher than the suspension price.

Ajax Resources (AJAX) is a shell seeking energy and natural resources assets and it raised £1.34m at 4p a share. The shares ended the week at 4.75p. The pro forma net assets are 2.6p a share. Management is seeking production that provides cash flow and/or strong exploration potential in known resources areas.

Aura Renewable Acquisitions (ARA) is a new shell seeking acquisitions in the renewable energy sector and it raised £1m at 10p a share. It ended the first day of trading at 17p. Pro forma cash is 8.4p a share. The founder shareholder is Harmony Capital Investments, which is behind the management of AIM-quoted, Asia-focused investment company Jade Road Investments Ltd (JADE), where Aura chairman John Croft is executive chairman. Aura is targeting is a range of businesses in areas such as wind, solar, biomass, hydro, carbon capture, waste management, smart grids and hydrogen supply.

OTHER MARKETS

Cyprus listed FOS Holdings has appointed Nick Kounoupias as chief executive. He is a solicitor with his own intellectual property consultancy. The film and entertainment company is planning a complex of five studios in Cyprus between Limassol and Larnaca, plus studios in other locations around the world. EU grants will help the funding of the studio complex, but other funding will need to be secured. FOS also plans to make three films a year.

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

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

Andrew Hore – Quoted Micro 7 December 2020

AQUIS STOCK EXCHANGE

Newbury Racecourse (NYR) has completed the sale of 1.2 acres of land on the northern perimeter of the racecourse for £1.5m. That is equal to book value.

NQ Minerals (NQMI) is able to draw down from its recently arranged $55m loan facility between its subsidiary Hellyer Gold Mines with ING. The cash is being used to pay off previous debt.

Wheelsure Holdings (WHLP) improved revenues from £178,000 to £235,000 in the year to August 2020, but there remain potential delays to sales. That is particularly true of Transport for London because of its financial problems. The loss was slightly reduced from £224,000 to £203,000. Wheelsure has moved from net liabilities to net assets of £7,000.

Four new directors have been appointed to the board of SulNOx (SNOX) following a general meeting and they have replaced the previous directors. Radu Florescu had previously been a director of the company. Shareholders have also given them permission to issue shares.

Trading has recommenced in Altona Energy (ANR) shares after £138,000 was raised at 6.5p a share. Further cash will be required in the next four months. Indications have been received from investors that a move to AIM or the standard list could enable Altona to raise £1m. Due diligence is being completed on the two rare earth acquisition targets in Malawi and Uganda. Christian Taylor-Wilkinson has been appointed chief executive.

Quetzal Capital (WENP) made a pre-tax profit of £276,000 in the year to June 2020. That was due to creditors accepting 7.5p in each £1 they were owed. Business opportunities are being assessed.

Wishbone Gold (WSBN) has applied for a new exploration licence in northern Queensland, which is 15km north west of the Ravenswood gold mine.

IOV Labs Ltd is investing £330,000 in Coinsilium Group (COIN) at 3p a share. One warrant will be issued for each two shares and the exercise price is 4.5p a share. IOV can appoint a director to the board, having increased its stake to 13.9%. Coinsilium says that it has enough cash until January 2022.

BWA (BWAP) reported an interim loss of £2.91m, which reduced net assets to £2.43m. The Cameroon business has marked out two licence areas and the first sampling has been undertaken with the lab results expected. BWA had written off its stake in the Prego prepaid debit card business, but there is a potential takeover by a Canadian listed company.

Belvedere Leisure (BELV) has issued £872,000 of 6.25% secured bonds, September 2025. This takes the number in issue to £979,000.

AIM

Floorcoverings manufacturer Victoria (VCP) produced better than expected interims. Peel Hunt increased its full year pre-tax profit forecast from £9.4m to £28.7m, while earnings are set to improve from 5.6p a share to 17.4p a share. There should be further significant recovery next year, but by then further acquisitions will have been made so the group will be different.

Springfield Properties (SPR) has gained planning approval for its first private rental development in Scotland. It is for 75 family homes at the company’s Bertha Park Village. Springfield will build the homes under a fixed cost contract and hand them to the PRS provider. This provides additional, predictable cash flow.

Online fashion retailer Sosandar (SOS) increased interim revenues by 52% to £4.3m even though marketing spending was reduced. Conversion rates are improving. Sales through John Lewis and Next started in August. The loss was reduced from £2.79m to £1.1m. Marketing has been stepped up and there has been further growth in revenues during the autumn. There was still £4m in the bank at the end of November 2020.

Digital TV software Mirada (MIRA) reported a 5% reduction in interim revenues to $5.5m due to Covid-19 related delays. Allenby forecasts a decline in full year revenues from $13.2m to $11.5m and the loss is expected to increase from $1.42m to $3.26m. Net debt could rise to $8.45m by the end of March 2021. Next year, the loss should be lower and Mirada should be cash generative so net debt would reduce by March 2022.

AssetCo (ASTO) has launched a tender offer for 6.53 million shares at 411p each. That will return £26.9m to shareholders. Following payment from former auditor Grant Thornton, AssetCo should have cash of around £55m.

Tavistock Investments (TAVI) has postponed a general meeting designed to pass a new long-term incentive plan for executive directors Brian Raven and Oliver Cooke. There has been unfavourable feedback from shareholders.

The Property Franchise Group (TPFG) has made a bid approach to fellow residential lettings business Hunters Property (HUNT).

Nucleus Financial (NUC) has received a bid approach from IntegraFin Holdings (IHP) and the offer is likely to be in cash. Aquiline Capital and Allfunds (UK) are also considering offers. Sanlam UK owns 52% of Nucleus.

DBAY Advisers has acquired shares in Telit Communications (TCM) at 194.8p each, so any potential bid will have to be at least at this price.

Invinity Energy Systems (IES) is raising £20.5m via a placing at 175p a share and up to £2m more could be raised through a one-for-64 open offer. The cash will help to scale up production of its vanadium flow batteries.

Pires Investments (PIRI) is subscribing for a 15% stake in decentralised finance company DeTech Studio and it will also be issued four million YOP tokens. YOP is the decentralised finance platform that DeTech is developing. The plan is to make it easier for non-experts to use. The yop token will facilitate engagement with smart contracts on the Ethereum network.

MAIN MARKET

Tirupati Graphite has launched its fundraising ahead of a standard listing on 11 December. It is raising £6m at 45p a share, which would capitalise the company at £33.6m. The cash will be invested in mining and processing of graphite.

Marwyn has launched three new shells on the standard list. Marwyn Acquisition Co I Ltd (MAC1), Marwyn Acquisition Co II Ltd (MAC2) and Marwyn Acquisition Co III Ltd (MAC3) are all seeking acquisition targets in media, technology and healthcare that can take advantage of digitalisation. Directors of past Marwyn shells are investors in the new shells. Each company has issued 700,000 shares at 100p each.

Standard list shell Mining Minerals (MMM) is in discussions with a potential strategic investor.

Andrew Hore

Andrew Hore – Quoted Micro 14 September 2020

AQUIS STOCK EXCHANGE

Investment company S-Ventures is set to join the market on 16 September. The strategy is to make investments in consumer health and organic food businesses in the UK and Europe. The S-Ventures management will use their expertise to help smaller brands grow faster and achieve greater scale. Up to three acquisitions are planned each year and they are likely to have values of between £150,000 and £2m.

Evrima (EVA) has secured an option to acquire a 17.2% stake in Kalahari Key Mineral Exploration (KKME), which would increase its investment in the Botswana-focused nickel, copper and platinum explorer to 19.6%. The former Sport Capital Group has 60 days to acquire the stake for $183,000 in the form of 2.3 million shares at 6p each. The same number of warrants will be issued, and they are exercisable at 12p each. AIM-quoted Power Metals has a

Block Commodities (BLCC) has been fined £7,000 by the Aquis Stock Exchange. Block failed to make sure that it provided accurate and fully up to date information to investors about fundraisings. It also failed to consult with its corporate adviser. Trading in the shares remains suspended.

All Star Minerals (ASMO) is assessing potential gemstones opportunities in Africa.

Lombard Capital (LCAP) has sold a 29.5% stake in LCP Financial for £275,000 in order to provide funds to develop the waste and recycling operations.

Early Equity (EEQP) has appointed Novum Securities as its corporate adviser and trading has recommenced in the shares.

Gold explorer Tectonic Gold (TTAU) has raised £403,000 at 0.275p a share. Each new share has a warrant attached that is exercisable at 0.7p each after the results of the exploration drilling are released. The cash will finance drilling.

AIM

Michelmersh Brick (MBH) has restarted production following lockdown despatches have recovered more quickly than the sector. Interim revenues fell by 17% and underlying pre-tax profit was halved, but full year expectations have been upgraded. The bricks manufacturer is operating at normal levels and June 2020 revenues were better than those in June 2019. Canaccord Genuity has upgraded its full year profit forecast from £5.3m to £6.5m, down from £9.7m in 2019. Limited UK brick production capacity means that Michelmersh is in a strong position and it has demonstrated its resilience this year. 

Internet domain name registry and services provider CentralNic (CNIC) is paying $36m for the Codewise businesses, which provide monetisation services and online marketing tools. This fits with Team Internet and will be significantly earnings enhancing from day one. A placing raised £30m at 75p a share.

Synairgen (SNG) has published interim data for its SNG001 treatment that suggests that it could be effective for COVID-19 patients, particularly those suffering with more severe symptoms.

Belvoir Group (BLV) weathered the COVID-19 lockdown well. Financial services increased their contribution in the first half and lettings income held up. Underlying pre-tax profit improved by 7% to £3.16m, helped by the Lovelle acquisition. Earnings per share were 16% higher at 7.3p. The interim dividend is 3.4p and a further 2p is payable in lieu of the final dividend that was not paid. The former boss sold shares at 150p each.

The Property Franchise Group (TPFG) reported an unchanged interim pre-tax profit of £2m and an interim dividend of 2.1p a share is being paid. Cash has risen to £6.1m. Lettings income held up and trading was strong in June. The core business and online operation EweMove both performed strongly in July.

Arden has initiated research on Dekel Agri-Vision (DKL) and it believes that the palm oil and cashew nut processer is worth 7.6p a share. The broker believes that Dekel could make an operating profit next year. Profit should build up over the next few years as cashew nuts processing activities grow.

Concrete levelling equipment supplier Somero Enterprises (SOM) is resuming dividends and paying a deferred final dividend of 20.7 cents a share as well as an interim of 4 cents a share. That will cost $14m. North American interim sales held up best with European sales falling by one-quarter. Pre-tax profit is still expected to fall from $28m to $17.6m, but net cash should be $20m at the end of 2020.

Digital invoicing services provider Tungsten Corporation (TUNG) is on course to move into profit in the current financial year. The loss per share was reduced from 3.5p to 1.4p in the year to April 2020 and there was cash generated from operations.

Irrigation products supplier Amiad Water Systems (AFS) reported a decline in revenues but profit increased as margins improved. Amiad was already reducing its cost base when COVID-19 started to hamper the business. This led Stifel to increase its full year pre-tax profit forecast to $4.5m. Further growth could come from new products and potential acquisitions.

Building and construction products supplier Alumasc (ALU) has realigned its cost base but pre-tax profit was still one-third down at £3.7m as full year revenues declined by 16% to £76m. A 2p a share dividend was declared. Trading has been recovering since the June year end. Further cost saving benefits will help profit to recover this year. finnCap forecasts £6.4m pre-tax profit for 2020-21.

New SIPP business has been slow for STM (STM) but the recurring revenue base means that interim revenues were maintained at £11.8m. Additional personnel costs reduced pre-tax profit by nearly one-third to £1.1m. There is £17.6m in the bank and that enables STM to pay an interim dividend of 0.55p a share, which should be one-third of the total for the year. A full year pre-tax profit of £2.5m is forecast, with a rebound to £4.5m in 2021.

Recruitment firm Hydrogen (HYDG) plans to cancel the AIM quotation. A tender offer of 40p a share provides investors with a way to sell their shares prior to the cancelation.

MAIN MARKET

LED lighting and wiring accessories supplier Luceco (LUCE) has realigned costs so that they are more in line with revenues. In the first half of 2020, revenues fell by 13% to £71.6m, but operating profit was one-quarter higher at £9m. Gross margins continue to increase, and overheads have been kept down. Operating profit margin of 12.3% was higher than ever before.

Andrew Hore

Andrew Hore – Quoted Micro 20 January 2020

NEX EXCHANGE

NQ Minerals (NQMI) generated gross revenues of A$15.5m and gross profit of A$7.4m from Hellyer gold mine in the fourth quarter. Full year revenues were A$53.9m and operating profit was A$12.2m. The profit grew steadily quarter by quarter. NQ has raised £311,000 at 7p a share. In December, £300,000 was raised at 6.5p a share.

Clean Invest Africa (CIA) says that is subsidiary Coaltech has signed a memorandum of understanding with the Uzbekistan ministry of innovation and development and Uzbekistan Railway. The coal fines project could have an initial value of $16m. A plant would be built to process coal fines into coal pellets. Coal mining is an important industry in Uzbekistan. There will be feasibility studies and the development of a business plan. This deal comes via the joint venture with Creon Investments, which is focused on Russia and former Soviet Union countries.

Ganapati (GANP) says that its Malta-based subsidiary has signed a two-year endorsement agreement with Welljam, which owns the rights to Usain Bolt’s services and image rights. Ganapati has is launching the first official Usain Bolt online slot game when the Tokyo Olympics are held during the summer. Usain Bolt will be attending the ICE London iGaming event in February. There are initial licence payments for image rights during the development of the slot game and a share of future revenues.

Ananda Developments (ANA) says that its investee company iCAN Israel-Cannabis has raised money via a convertible that places a pre-money valuation of $20m on the company. Ananda invested $200,000 in a convertible loan in August 2018 and $100,000 of the loan has been converted into 120 shares worth $200,000 at the latest valuation. DJT Plants, which is 50%-owned by Ananda, has received planning permission for the construction of a facility for cannabis plant breeding and propagation.

Property investor Ace Liberty and Stone (ALSP) reported a dip in pre-tax profit from £334,000 to £306,000 in the six months to October 2019. The NAV improved from £21.2m to £21.9m over the six month period, even though £349,000 was paid in dividends.

Imperial X (IMPP) has switched its investing strategy back from medicinal cannabis to energy-related businesses. The focus is building a royalty stream from oil and gas interests.

Mark Leigh is taking over from Claire Spencer as finance director of Newbury Racecourse (NYR).

Broadband-focused shell SAPO (SAPO) has raised £27,500 at 2.75p a share.

Diverse Income Trust has reduced its stake in TechFinancials (TECH) to below 3%.

AIM

Lawyer Gateley (GTLY) generated organic growth of 10.5% in the first half and it is on course to meet analyst expectations for the full year. The main first half growth was in the corporate and pensions businesses. The most recent acquisition will take annualised non-legal revenues to 12% of the group total. A full year pre-tax profit of £21.3m is forecast.

Regional legal business Knights Group (KGH) increased interim revenues by one-third to £32m through a combination of acquired and organic growth. Underlying earnings were 9% ahead at 5.95p a share. Net debt was £17.1m at the end of October 2019. The interim dividend was raised by 83% to 1.1p a share, although Knights was not quoted for all the comparative period. Two Birmingham-based firms have been acquired since the period end.

Legal firm Ince Group (INCE) raised £12m at 45p a share. The share price has more than halved since the beginning of the year. The January 2019 placing was at 140p a share. There are plans to raise £2m by a one-for-8.398 open offer and £2m via an offer to staff. The cash will enable the working capital facility to be reduced and finance investment in building up staff numbers. Net debt was £10.4m at the end of September 2019.

Pharmaceutical services provider Ergomed (ERGO) has acquired Ashfield Pharmacovigilance Inc for $10m and this will be earnings enhancing in 2020. The deal boosts Ergomed’s position in pharmacovigilance services and gives it a stronger position in the US. Ashfield has annual revenues of $11.6m and contracted future revenues of $9.8m.

Dekel Agri-Vision (DKL) has established a 50/50 renewable energy joint venture with Green Enesys that will operate a 36MW hybrid power (solar and biomass) project in Ivory Coast. This should reduce costs at the palm oil project in Ayenouan. There could be other potential power projects in the region. Dekel is benefiting from the recovery in the crude palm oil price. It produced 37,649 tonnes of crude palm oil in 2019, even though poor weather led to disappointing fourth quarter production. Later this year processing of cashew nuts should commence.

Biopesticides developer Eden Research (EDEN) generated revenues of £2m in 2019, down from £2.8m, and an operating loss of £1.4m. Product revenues grew even though the summer weather restricted usage of Botrytis.

Lettings agency The Property Franchise Group (TPFG) is setting up a financial services division. Acquisitions are planned and the first is a 72.25% stake in Auxilium Partnership, which is the business of newly appointed financial services director Mark Graves. This has been a source of growth for rival Belvoir (BLV).

D4T4 Solutions (D4T4) has confirmed that its second half trading is much stronger than the first half thanks to the contracts won by the Celebrus data analysis software business. The financials sector has been a productive customer base for Celebrus. D4T4 is increasingly winning SaaS business and this could hold back short-term growth, which could lead to the trimming of 2019-20 forecasts.

Instem (INS) continues to increase its recurring revenues. The pharma software company generated organic revenues growth of 12% in 2019. Pre-tax profit is expected to be £3.3m. Net cash was £5.9m. A jump in profit to £4.7m is forecast for 2020.

Estate agency Winkworth (WINK) says 2019 profit was modestly ahead of expectations and a total dividend of 7.8p a share is proposed, which is higher than forecast.

Telit Communications (TCM) did better than expected in 2019 and excluding the former automotive activities revenues grew by 8%. The internet of things technology developer is forecast to make a 2020 pre-tax profit of £20.1m.

Pharma data analytics firm Diaceutics (DXRX) generated more cash tan expected last year and made a small profit. Thee was cash of £11.7m at the end of 2019. The 2020 pre-tax profit could be £800,000.

Barkby Group (BARK) has exchanged contracts on a development site in Huntingdon, which has a gross development value of £10.7m.

Risk management software developer KRM22 (KRM) says 2019 revenues were slightly lower than expected at £4m. Delayed contracts are expected to be signed soon.

Telematics firm Quartix (QTX) managed to maintain revenues at £25.6m in 2019 and a small increase is expected in 2020. The mix of revenues has changed with fleet generating 80%, up from 73%, thanks to growth in the US and France. Insurance revenues fell as expected as low margin business was shed. Pre-tax profit is still expected to decline from £8.2m to £6.6m in 2019, with a further fall to £6.3m forecast for 2020. The dividend is expected to be reduced from 12.4p a share to 12.1p a share, although it will not be fully covered by earnings.

Base Resources (BSE) has increased production guidance for the Kwale mine with midpoints of 78,000t for rutile, 345,000t for ilmenite and 30,500t for zircon. There is a lack of supply of rutile and ilmenite, so this is good news. This should provide a strong boost to profit.

Pressure Technologies (PRES) has been fined £700,000 and will have to pay prosecution costs of £169,000 following the guilty verdict relating to a fatal accident at one of its sites in 2015. The first instalment of £215,000 is due in April with a further six equal instalments payable every six months between July 2020 and January 2023.

Oil and gas explorer and producer Empyrean Energy (EME) is raising £420,000 at 9p a share and chief executive Tom Kelly has contributed £200,000 of that cash. The placing was at a 9% premium to the market price. The cash will be spent on drilling offshore of Indonesia. There is a potential resource upgrade for the Mako gas discovery in Indonesia.

Mereo BioPharma (MPH) says that there have been positive results from the phase 2b study of Setrusumab in adults with osteogenesis imperfecta. They show that it is helping to build bone. A study with children is planned. A meeting with the FDA is due in the coming weeks. Earlier this year, Mereo signed a licence agreement for the use of Navicixizumab in ovarian cancer with Oncologie Inc. An upfront payment of $4m is due.

Nutrition provider Science in Sport (SIS) expects to report 2019 sales of £50.5m with underlying growth of nearly one-quarter. The fastest growth is outside of the UK. River and Mercantile has taken a 5.5% stake.

MAIN MARKET

Shareholders in AIM-quoted Anglo African Oil and Gas (AAOG) have agreed to the sale of 80% of its Congo subsidiary to Zenith Energy (ZEN) and it is waiting for government approval. There is a put and call option over the other 20%. If the call option is exercised Zenith will pay £1m in shares. If the production at the Tilapia oilfield averages at least 4,000 barrels of oil per day for 30 consecutive days, the put option can be exercised and Zenith would pay £2.5m in shares.

Endeavour Mining Corporation has ended its merger discussions with gold miner Centamin (CEY) blaming a lack of information. Endeavour still believes that a combination would be positive. Centamin is raising its final dividend to 6 cents a share, taking the 2019 total to 10 cents a share, up from 5.5 cents a share. Net cash was $348m at the end of 2019. The higher gold price will further boost cash generation. A new chief executive still has to be appointed.

Standard list cash shell Trident Resources (TRR) has £3.29m in cash at the end of October 2019, which is similar to NAV. Management is assessing a few mining project acquisition opportunities.

Stevia sweeteners producer PureCircle Ltd (PURE) says that shareholders owning more than 10% of the share capital have put forward three proposed directors to be voted on at the AGM on 10 February. The company is happy for Sridhar Krishnan, Lai Hock Meng, a former PureCircle director, and Oliver Maes, who was previously a PureCircle director, to be appointed to the board.

Books publisher Quarto (QRT) is raising £13.9m at 68p each. The open offer is underwritten and it will help to reduce the debt burden.

Menswear retailer and hirer Moss Bros (MOSB) Total sales were 3% lower in the 24 weeks to 11 January, but gross margin improved. Hire revenues fell by 17.7%. Cash is £12m.

OTHER MARKETS

Pallets manufacturer RM2 International (RM2) intends to move from AIM to matched bargains market Asset Match (www.assetmatch.com).

Andrew Hore

Andrew Hore – Quoted Micro 5 August 2019

NEX EXCHANGE

Netalogue Technologies (NTLP) increased its revenues by 26% to £1.35m in the year to March 2019. Pre-tax profit jumped from £82,000 to £300,000 thanks to the ecommerce technology provider keeping overheads flat. There is £770,000 in the bank. Netalogue will consider paying a dividend when it reports its interim results. Netalogue focuses on the B2B market and it continues to win new customers.

European Lithium Ltd (EUR) has secured a A$10m finance facility in the form of convertibles from Winance Investment, which replaces the existing facility. The company is still seeking a strategic investor to help finance the development of the Wolfsburg lithium project.

None of the three Morgan Ashley extra care schemes that Ashley House (ASH) was expecting have closed. They could close over the next couple of months, but Ashley House was hoping to get the cash and it is investigating additional funding.  

Trading in the shares of Equatorial Mining and Exploration (EM.P) was restored after the annual report was published. There was a £221,000 loss in 2018 but the business is very different now. A placing has raised £400,000 at 0.01p a share. The date for completing the acquisition of tantalum business Eastinco has been extended until the end of September. This is a part of the strategy to consolidate mining operations in Rwanda. Align Research believes that Equatorial could generate revenues of £1.19m this year, rising to £9.19m in 2020, which would enable it to make a pre-tax profit of £1.77m.

Social impact company Inqo Investments Ltd (INQO) increased its revenues from R23m to R23.8m in the year to February 2019, while additional finance income and fair value adjustments meant that the loss was cut from R5.99m to R2.5m. There was also an increased share of revenue from Bee Sweet Honey in Zambia. Trading is improving at Kuzuko Lodge with room rates and occupancy rising thanks to the weak Rand.

Coinsilium Group (COIN) says that its Gibraltar-based blockchain consultancy has signed a new advisory agreement with IOV Labs Ltd. This involves supporting the RSK Smart Contract Network and RSK Infrastructure Framework blockchain services. These are focused on Asia.

Eight Capital Partners (ECP) has launched a bond to raise up to €5m and it will be traded on the Vienna Stock Exchange. The interest rate is 7% and the redemption date is 26 July 2022.

AIM  

Transport services provider Xpediator (XPT) has not performed as well as hoped this year and earnings estimates have been cut by one-quarter. There has also been some additional investment in the business, which will double central costs.

Information management software provider IDOX (IDOX) has raised £7m via a placing at 28.5p a share, which will be used to finance the acquisition of Northern Ireland-based Tascomi for up to £7.15m. Tascomi is a cloud-based software supplier to local authorities.

Beximco Pharmaceuticals (BXP) has launched a fifth product in the US. Blood pressure drug Nadolol is the generic equivalent of Corgard tablets. The market is worth $63m.

Elektron Technology (EKT) is selling its original Bulgin electricals business for £105m, £94m after costs, and intends to return a substantial amount of the cash to shareholders. Net cash will be £95m after the transaction. The company will change its name to Checkit and become a Software-as-a-Service business.

The Property Franchise Group (TPFG) says that its lettings brands grew revenues by 3% in the first half. Online estate agency EweMove increased revenues by 11%. Group revenues were £5.5m in the first half. Net cash was £2.8m at the end of June 2019. Ian Wilson will step down as chief executive at the end of 2020.

Property adviser Fletcher King (FLK) reported an improvement in full year pre-tax profit from £274,000 to £282,000 on slightly lower revenues. Management says that market conditions will make it difficult to maintain profitability, although there are substantial funds available for investment when the uncertainty ends. The total dividend is maintained at 1.75p a share. There is £2m in the bank.

Digitalbox (DBOX) subsidiary Daily Mash will publish video content from NextUp on its site. This will enable the company to generate advertising on the back of the videos.

MAIN MARKET

A US customer has released Nanoco (NANO) from the obligation to pay back £4.25m of capital funding. This relates to the investment in the Runcorn facility where demand for nanomaterials has not come through from the customer. The book value of the facility, after depreciation, is £3.7m and may be written down further, along with the value of some materials. The facility is available if Nanoco can secure demand from customers.

BATM (BVC) has completed the sale of its stake in a new fibre optic network being developed in Israel. This should generate cash of $3.4m and add $3m to profit. Net cash could be $38m bythe end of 2019.

Oil and gas company Zenith Energy (ZEN) has secured the financing it requires for its drilling programme. A placing in Canada has raised the equivalent of £1.2m at C0.04 a share.

Trading in the shares of Associated British Engineering (ASBE) has been suspended because it has not published its accounts. This should happen this week.

Standard list shell Landscape Acquisition Holdings (LAHL) still has more than $496m in cash and it has done well to preserve the cash it raised when it floated at the end of 2017. There is a broad remit, but the main focus is a property-related/backed business in Europe or North America.

Stranger Holdings (STHP) is still seeking to close a reverse takeover after its first deal fell through. The shell is in talks to acquire local government supplier HCS. There is no cash in the bank and Stranger has net liabilities.

Andrew Hore

Andrew Hore: Quoted Micro 17 September 2018

NEX EXCHANGE        

Renewable energy supplier Good Energy (GOOD) reported a 19% increase in interim revenues to £61.8m. Pre-tax profit has more than trebled to £2.4m, if discontinued activities, including the investment in the proposed Swansea Bay Tidal Lagoon, are excluded. The interim dividend is unchanged at 1p a share. A brand relaunch is planned for the second half.

Eight Capital Partners (MORE) has made its first investment in the financial services sector. It is acquiring €111,100 worth of 8% corporate bonds 2020 in Italian financial services company Finance Partners Group. Management believes the link up with the Italian company will fit well with other potential investments.

EPE Special Opportunities (ESO) has completed its migration from the Isle of Man to Bermuda. Trading in the shares has been suspended. Trading should be restored by 21 September.

KR1 (KR1) continues to invest in new token issues. A $200,000 investment has been made in Foamspace Corp for 3.63 million FOAM tokens. This business intends to develop a protocol for a network of beacons providing location services. A further $100,000 has been invested in the Althea Mesh project tokens. This enables decentralised internet service providers to be set up. There has been $100,000 invested in Etherisc tokens. Etherisc is developing a blockchain service for the insurance sector.

Sandal (SAND) has launched an installer service for its MiHome smart home range. The service will be provided by Icon Heating Solutions.

Tectonic Gold (TTAU) has initiated a ten hole drilling campaign at the Specimen Hill discovery in Queensland. Four holes have been completed. The drilling should be complete in four weeks.

Panther Metals (PALM) has acquired the Bear Lake project, which is a package of gold and base metal prospects in north wester Ontario. The consideration is C$133,000 (£77,000) in cash and shares.

AIM  

Manx Telecom (MANX) reported relatively flat interim figures but a deal by one of its developing investments could mean that the business could become significant in a couple of years time. The interim dividend was raised by 5% to 4.1p a share. Full year pre-tax profit is expected to edge up to £15.2m with a similar increase in the final dividend. Investee company Goshawk has developed a hearing loss product and signed up BT’s mobile subsidiary EE, which could provide a potential market of 3 million people.

Property Franchise Group (TPFG) grew all its letting brands in the first half of 2018 and its online estate agency eweMove went from loss to profit in the period. Full year profit is expected to increase from £4.3m to £4.6m.

Anexo Group (ANX) has reported growth in interim revenues and profit although the cash raised in the recent flotation has yet to be put to use. The legal services and credit hire provider is expected to increase full year pre-tax profit from £13.8m to £14.7m in 2018, and then to £16.4m in 2019.

STM Group (STM) increased interim revenues by 6% to £10.8m and pre-tax profit by 11% to £2.1m. The interim dividend was increased by 17% to 0.7p a share. The main growth has come from the pensions business.

K3 Capital Group (K3C) continues to go from strength to strength. The mergers and acquisition adviser increased revenues by 53% to £16.5m and net cash more than doubled to £7.5m by the end of May 2018. Pre-tax profit could dip from £7.3m to £7m, which would lead to a small reduction in dividend from 11.2p a share, but there is scope for upgrades in expectations.

Gatemore continues to build up its stake in TLA Worldwide (TLA) by taking advantage of the share price decline following TLA’s latest profit warning, which was released in the morning for a change, but there is no news about a replacement nominated adviser. The shareholding has been increased from 12.2% to 13.7%. No news about a new nominated adviser.

Audio visual equipment distributor Midwich Group (MIDW) increased its interim, constant currency, revenues by 24% to £264.1m. Organic growth was around 9%. Underlying pre-tax profit was 22% higher at £9.78m. A full year pre-tax profit of £28.4m is forecast.

Potatoes producer Produce Investments (PIL) is recommending a 193p a share cash bid by Promethean Investments. This values the company at £53m.

Orosur Mining (OMI) has secured a $2m investment from Newmont Mining at more than treble the pre-deal market share price. This will provide investment for the Anza project in Colombia. Orosur had been profitable and cash generative but it fell into loss in the year to May 2018 as gold production costs were in excess of the selling price.

Education services provider Malvern International (MLVN) made a small first half loss but it is on course to move into profit in the full year. The number of students signing up for courses means that enough revenues should have been secured for a full year pre-tax profit of £300,000. There will also be a second half contribution from the recent Manchester acquisition.

MAIN MARKET  

Photovoltaic silicon wafers supplier PV Crystalox Solar (PVCS) had net cash of €39.6m at the end of June 2018. This could be returned to shareholders or used to finance an acquisition. The decision will be made before the end of this year. Multicrystalline silicon wafer production ceased in April 2018 and the focus is cutting of quartz and glass. Interim revenues more than halved to €6.2m.

Toople (TOOP) is raising £2.2m at 0.3p a share, following its recent contract news. This is no surprise, but the share price has fallen back from just over 0.9p near the end of August.

Contango Holdings (CGO) continues to undertake due diligence on a near-term producing asset in Zimbabwe. This potential deal was announced last December. There was nearly £638,000 in the bank at the end of May 2018.

Standard list cash shell Auctus Growth (AUCT) had £962,000 in the bank at the end of June 2018. The NAV is 35.5p a share.

Andrew Hore

Andrew Hore – Quoted Micro 6 August 2018

NEX EXCHANGE        

Veni Vidi Vici Ltd (VVV) joined NEX on 2 August. The minerals investment company has net cash of £513,000, following a £490,000 subscription at 50p a share. The focus will be precious metals and base metals opportunities in Australia, Western Europe and North America. Management will concentrate on capital appreciation.

EPE Special Opportunities (ESO) is changing its domicile from the Isle of Man to Bermuda. The private equity investment company will have to be readmitted to NEX and AIM. EPE has invested £2m in Main Market-listed LED lighting company Luceco at 39.74p a share. That takes EPE’s stake in Luceco to 27.4%. Poor trading has meant that the Luceco share price has slumped to well below its 2016 flotation level. EPE has redeemed 50% of its unsecured loan notes.

Etaireia (ETIP) has appointed Dennis Rogers as chief executive. He has more than three decades of experience in property development.

Equatorial Mining and Exploration (EM.P) has issued 2.685 billion shares, around one-quarter of the enlarged share capital, to wipe out the convertible loan note debt and other creditors. Twenty three year old Devon Marais, who works with ARQ Minerals, which is helping Equatorial to extract coal from the St Leonard’s mine in Nigeria, has been appointed as a non-executive director of Equatorial.

Asia Wealth Group Holdings (AWLP) reported a profit last year. In the year to February 2018, revenues increased from $1.52m to $2.16m, while a pre-tax loss of $110,000 was turned into a pre-tax profit of $150,000. That figure was helped by a $114,000 currency gain, compared with a $19,000 loss. There was still a small net loss from operations before other income.

AIM   

Petrol stations operator Applegreen (APGN) intends to take a majority stake in UK Motorway services operator Welcome Break. The purchase of a 55% stake for €361.8m would be a reverse takeover. The deal would make Applegreen market leader in the UK as well as Ireland.

A subsidiary of Stride Gaming (STR) has been issued a notice by the Gambling Commission, which intends to levy a significant financial penalty because of the manner in which it carried on its trading. This is not final and there might be room to appeal but it has hit the share price of the online bingo operator.

The Property Franchise Group (TPFG) increased interim revenues by 11% to £5.3m. Most of the growth came from management service fees from the property lettings franchisees. The EweMove estate agency business was profitable.

Goldplat (GDP) says that gold production fell by 17% to 35,400 ounces, which is lower than anticipated, but pre-tax profit will be in line with expectations because of a higher margin per ounce. There was 39,400 ounces of gold sold during the year.

Beximco Pharmaceuticals (BXP) has received abbreviated new drug application approval from the FDA to sell Nadolol tablets, which are a generic form of Corgard and used for managing high blood pressure. This is the fifth approval in the US. A pre-tax profit of £33.3m is forecast for the year to June 2018.

Tough UK trading and higher costs held back the results of security and facilities management services provider Mortice Ltd (MORT) in the year to March 2018. Revenues were 21% higher at $219m, but underlying pre-tax profit was down by 16% to $3.9m. Net debt was $18.4m.

Precision marketing software supplier Pelatro (PTRO) is acquiring assets from the Danateq Group for an initial $7m. The deal will take the group into central Europe and adds to the recurring revenues base. A placing has raised £6m at 73p a share.

GetBusy (GETB) grew its interim revenues from £4.5m to £5.2m, with £4.5m of that figure recurring revenues. Annualised recurring revenues are running at £9.4m. Profit generated from document management software sales is being ploughed back into developing the existing product and the new GetBusy software. There is £2.37m in the back.

Starcom (STAR) says that interim revenues have improved from $1.92m to $3m and the loss will be lower. Most of the revenue increase came from two large clients. Growth is starting to come from higher margin security products. The 2018 loss is expected to be much lower than last year’s.

Kosovo-based quarry operator Fox Marble Holdings (FOX) increased interim sales from €329,000 to €614,000 and the second half has started strongly. The benefits of investment in capital equipment are beginning to show through.

MAIN MARKET    

Argo Blockchain (ARB) has joined the standard list after raising £25m at 16p a share, which values the company at £47m. However, the share price fell to 12.5p by the end of the first day of trading on 3 August. Argo is developing a global datacentre management business facilitating cryptocurrency Mining-as-a-Service. It currently covers four cryptocurrencies. AIM-quoted Vela Technologies (VELA) owns 2.5 million shares, which were acquired for 8p a share.

Motor finance provider S&U (SUS) achieved record first half profit as the second hand car market continues to grow. Quality standards have been tightened with 25% of applications accepted, but net receivables have reached £263m. The property bridging loan book has risen from £11m to £16m over six months. The interims will be announced on 25 September.

BigDish (DISH) was originally going to reverse into AIM shell Nyota Minerals Ltd but instead it has joined the standard list. The company operates an online and mobile restaurant reservation platform, which is in operation in the Philippines, Indonesia and Hong Kong. The purchase of Pouncer, takes the company into the UK. Revenues come from booking fees per diner. BigDish raised £2.22m at 4.5p a share.

Path Investments (PATH) is raising £10m to complete the farm-in agreement with 5P Energy for the proposed acquisition of a 50% participating interest in the Alfeld-Elze II licence and gas field. This will make Path cash generative. The new shares will be eligible for EIS and VCT relief because Path is moving to AIM.

Dave Brieth has sold his stake in telecoms services provider Toople (TOOP).

Associated British Engineering (ASBE) reported a sharp increase in full year revenues from £1.04m to £1.6m in the year to March 2018. The loss fell from £962,000 to £582,000. This includes investment in developing new diesel engines. The NAV is £976,000, as the loss was partly offset by a £600,000 property revaluation gain. The oil and gas-related operations are still depressed.

Mila Resources (MILA) plans to acquire Capital Metals, which owns 100% of a high-grade mineral sands project in southern Asia. The reverse takeover will be subject to due diligence and shareholder approval.

Fandango Holdings (FHP) has ended bid discussions with Corporate Commercial Collections and Vatbridge following initial due diligence.

Andrew Hore

Andrew Hore – Quoted Micro 16 April 2018

NEX EXCHANGE   

London Nusantara Plantations has become Panther Metals (PALM) and it has sent out notice of a general meeting on 1 May to enable directors to issue up to one billion shares. This power will expire after 15 months. The company is issuing 17 million shares at 0.1p a share to pay a £17,000 bill from an adviser.

Early Equity (EEQP) had £429,000 in the bank at the end of February 2018. The company raised £705,000 during the year and this has helped to increase the value of the investment portfolio from £594,000 to £1.01m. The NAV has increased from £639,000 to £1.54m. There are plans to raise more cash if its is required for additional investments.

Forbes Ventures (FOR) says that investee company Civilised Bank Ltd has released the banking licence it was granted by the Bank of England because it will not meet the mobilisation deadline. There have been delays in developing the IT needed by the bank so the intention is to reapply when the IT development is further advanced.

AIM

Oil palm plantations operator MP Evans (MPE) is starting to enjoy the benefits of its investment in planting oil palm but there is plenty more to come. The 2017 profit was boosted by a gain on discontinued operations of $68m. The underlying dividend improved from 15p a share to 17.75p a share and there should be continued growth as the plantations mature. The value of the business is estimated at £11 a share.

The Property Franchise Group (TPFG) increased revenues by 23% to £10.2m and this led to a one-third improvement in pre-tax profit to £4.3m. This was despite the loss by online estate agency EweMove, where new management has been put in place. The total dividend is 7.5p a share and there was a modest year-end net cash position. The tenant fee ban could hit the business in 2019 but there is time to mitigate the impact.

Parity (PTY) has completed its turnaround and from now on profit growth will come from growing the revenues. The IT recruitment side was hit by changes in tax treatment for freelancers working for government departments but underlying pre-tax profit was still improved from £1.4m to £1.7m. The recently announced Primark contract will help this year. The higher margin consultancy business continues to grow. Cash generation was better than expected with net debt falling from £4.4m to £1.6m. There should be net cash at the end of 2018. There is also the prospect of a dividend in the medium-term.

D4T4 Solutions (D4T4) had a strong fourth quarter and this strength is set to continue into the first few months of this financial year.

Rose Petroleum (ROSE) boss Matthew Idiens has nearly doubled his stake in the oil and gas company through the acquisition of 800,000 shares at an average price of 2.5p each. Finance director Christopher Eadie has bought 424,715 shares at an average of 2.35p each. Rose recently added to its land position in the Paradox Basin in Utah. Rose acquired a 75% working interest in 3,320 gross acres for $120,000. There has already been a 3D seismic survey of the acreage.

Frontier IP (FIPP) has increased its stake in Fieldwork Robotics by offering additional engineering and development support. That will help to develop a prototype for harvesting vegetables. The stake will rise from 21% to 27.5%.

Boku Inc (BOKU) is growing its revenues and the relatively stable cost base means that it could be on course for a profit in 2018. The direct mobile carrier billing company is expected to grow revenues from $24.4m to $32.7m in 2018 and that would be enough to make a profit. Additional services could further boost long-term revenues.

Starcom (STAR) published a positive AGM statement. First quarter revenues were much higher than expected at $1.5m, which is nearly double the first quarter of 2017. This should help to reduce the loss this year.

RedT Energy (RED) is raising £3.85m at 5.9p a share and this will be invested in growing its energy storage technology business.

MAIN MARKET    

Cadmium-free quantum dots developer Nanoco (NANO) had £8.7m in the bank at the end of January 2018, thanks to the £8m raised in November. The reported interim loss declined from £6.4m to £4.8m. There could be additional revenues in the second half from initial payments by the US partner funding the development of nano-particles for electronic devices. There should also be product revenues from the launch of gaming-focused computer displays in the second half. There should be £5.7m in the bank at the end of July 2018.

Dukemount Capital (DKE) says that it intends to increase the number of rooms and add office space in its second development. This will increase the rental income. These changes have been sparked by the potential housing association buyer of the assisted housing development. The architect will have to make changes to the plans and a two-month extension to the option period for the purchase from the current owner of the building.

China-focused health food products supplier World Trade Systems (WTS) increased its revenues from £8.7m to £19.6m in 2017. There reported profit more than doubled from £906,000 to £1.98m. There is £2.17m in the bank offset by £1.26m of borrowings.

Standard list shell AIQ Ltd (AIQ) has raised £115,000 at 20p a share. This should help to improve the limited liquidity of the shares. A one-for-40 open offer at the same share price could raise up to £253,000 more. The suspension of trading in the shares should be lifted on 19 April. The suspension price was 125p a share. In January, £4m was raised at 8p a share and the limited liquidity led to a ridiculous rise in the share price.

Andrew Hore

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