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Quoted Micro 27 July 2026
AQUIS STOCK EXCHANGE
Arbuthnot Banking (ARBB) had a good first half performance and expectations have been upgraded. Interim pre-tax profit was flat and financial headroom remains comfortable. Improved efficiency helped to maintain profit when interest rates were lower. Specialist lending grew 18%. There is growth in the core businesses, but higher technology costs offset this growth. So, although the operating income forecast has been raised 3% to £180.4m, while pre-tax profit is barely changed at £20.7m. Forecast tangible NAV is 1522p/share.
Electric drivetrain developer Equipmake (EQIP) confirms that second half trading improved, and full year revenues rose from £3.5m to £8.2m and on top of this grant income increased from £900,000 to £1.6m. There was a positive EBITDA in the second half. Cash was £2m at the end of May 2026. Momentum has continued in the new financial year. The order book for delivery this year is more than £8m.
Brewer Shepherd Neame (SHEP) grew like-for-like pub sales by 3.4% in the past financial year and that increased to 4.3% in the first three weeks of the new financial year. Beer volumes fell 5.4%, although own beer sales grew in the company’s own pubs. Jonathan Neame will take over as chairman from Richard Oldfield and he remains an executive. Mark Rider will become managing director, and Graham Turner becomes a non-executive director.
AI software provider to industrial businesses IntelliAM AI (INT) doubled annualised recurring revenues to £1.65m. in the year to March 2026, revenues were 64% to £5.26m, while the loss more than doubled to £1.95m. Cash was £100,000 at the end of March 2026 and since then £500,000 has been raised. There are plans to move to AIM before the end of the year.
ProBiotix Health (PBX) has signed a partnership agreement with Belgium-based Nutrisan, which is launching a new cholesterol reducing product including the probiotic strain LP LDL developed by ProBiotix Health.
Residential property developer Zentra Group (ZNT) says that Torsion Construction, the principal contractor of the One Victoria development in Manchester, is appointing an administrator. There is about eight weeks of additional work required. Completion should still be before the end of the year. Zentra has loaned £4.1m to the development.
Tamar Minerals (TMR) says drilling is about to start at the Great Wheal Vor tin and copper project in Cornwall.
Valereum (VLRM) has entered an agreement with Blockchain Digital Assets, which has advisory interests in Africa and the Indian Ocean. These commercial relationships will help to develop real world asset tokenisation, digital payments and digital banking infrastructure. Quorium Global Photonics SPC has issued $VXRUP, a stable coin on the Ripple XRP Ledger.
Ethry (ETHY) has committed £1m to the senior second notes facility issued by York-based Apatura, a UK developer of large-scale battery storage and grid-secured data centre sites. There are quarterly interest payments.
Lift Global Ventures (LFT) is making a strategic investment of £30,000 in LEXcelerate, which is developing an AI conveyancing and remortgage platform, at a £3m pre-money valuation. This will acquire a 0.8% stake in LEXcelerate. Yorkshire AI Labs, where Lift Global Ventures executive chairman David Richards is managing partner, has a 35% stake in LEXcelerate.
Marula Mining (MARU) will not publish its accounts by the end of July.
JP JENKINS
CPP Group (CPP) has left AIM and moved to the JP Jenkins matched bargain facility, and it has promised to keep it for at least 12 months.
ASSET MATCH
Marshall of Cambridge (MCH) is recommending a final dividend of 4p/share. The AGM will be on 22 September.
AIM
Pehlwan Malik Holdings has taken a 3% stake in automotive interior components supplier CT Automotive (CTA). Pehlwan Malik Holdings’ main subsidiary is Green Destinations, which provides passenger transport services. In the year to July 2025, the group’s revenues were £18.1m and pre-tax profit £3.79m. Cash was £7.85m plus investments of £5.49m at the end of July 2025.
Scancell (SCLP) is merging with Nasdaq listed Neuphoria Therapeutics in an all-share deal and the combined entity will be quoted on AIM and Nasdaq. Scancell shareholders will own 85.5% of the company. Neuphoria has £7.5m in cash and a private placement will raise a further £29.2m. A UK placing will raise £9m at 9p/share, which is not dependent on the merger going ahead, and a retail offer could raise up to £2.3m. The pro forma cash balance after the merger would be £59.2m. The cash will last into 2028 and finance the global phase 3 trial for iSCIB1+ active immunotherapy in advanced melanoma. The phase 2 SCOPE study should be published within one year.
Wound healing technology developer AOTI Inc (AOTI) says the Centers for Medicare & Medicaid Services (CMS) has issued a proposed Local Coverage Determination (LCD). This covers the whole of the US and indicates that the AOTI topical oxygen therapy can be used to treat diabetic foot ulcers that have failed to heal with four consecutive weeks of optimized diabetic foot ulcer care. This decision has a 45-day public comment period, but it would significantly increase the addressable market, which in the medium term could be around $400m annually. Broader coverage would further increase the market. A trading statement will be published on 27 July.
Advanced coatings supplier Hardide (HDD) has sparked another forecast upgrade with its latest trading statement. Third quarter trading was strong, and it has grown revenues ahead of plan. Third quarter revenues were £4.1m, taking the total for the year so far to £8.9m. The full year pre-tax profit forecast has been raised from £3.4m to £4.6m. Year-end cash is expected to be £2.3m.
Floorcoverings manufacturer Victoria (VCP) reported a 6% dip in underlying revenues to £1.05bn. Margins declined and the underlying loss increased from £11.5m to £62m. That excludes one-off costs of restructuring and refinancing. Net debt, including leases, was £1.06bn at the end of March 2026. Market conditions were weaker than expected in the second half. First quarter revenues are 7% ahead and profitability is improving. EBITDA is expected to be at least £115m this year, up from £92.3m.
Fertiliser producer Harvest Minerals (HMI) is acquiring a portfolio of eight rare earth projects in Brazil for A$200,000 and 40 million shares, plus a further A$300,000 on achievement of milestones. Harvest Minerals also takes on A$1.5m of previously agreed deferred payments and a 1.5% royalty obligation. Two projects are highly prospective for ionic clay-hosted rare earths mineralisation. The company already has a rare earths prospect at its Arapua project.
Ariana Resources (AAU) says that the Tavsan Mine, where it has a 9.9% interest, has completed its ramp up and ore is being loaded onto heap leach pads at 4,000 tonnes per day. Enhancements are being made to the processing. Kiziltepe interests have been transferred into a separate entity to enable the sale of this stake.
Rent guarantee services provider Rentguarantor (RGG) continues to achieve positive momentum. The trading statement confirms that the business is growing faster than expected. Interim revenues are 250% ahead at £3.39m and the company has moved into profit. Applications more than doubled. The exercise of warrants at 17.5p each has raised a further £189,000. Cavendish has upgraded its full year pre-tax profit from £200,000 to £1.6m and doubled next year’s figure to £4.6m.
Truetide (TRUE) is changing its investing policy to focus on AI. This would proceed in phases, presumably so existing investments can be sold.
Healthy food and snacks supplier Tooru (TOO) says that the OAF range is increasing sales each week, while significant growth is expected from Pulsin thanks to launches in additional retailers.
Construction staff provider Hercules (HERC) non-executive director Martin Tedham bought 110,000 shares at 31p each, 50,000 shares at 32p each and 285,160 shares at 34.75p each. Chief executive Brusk Korkmaz acquired 100,000 shares at 39.75p each.
PACSCo Ltd (PACS) is awaiting one further approval of the sale of its businesses in Mozambique. Management is seeking reverse takeover candidates in any sector. They have to have positive cash generation and growth potential that would be attractive to institutional investors. A strong management team is also required.
Digital health and pharmacy company MedPal AI (MPAL) is acquiring eMARx, a provider of electronic medication administration software for care homes and pharmacies. The initial consideration is £380,000 in cash and shares. Revenues were £740,000 and they have trebled over three years. Pre-tax profit was £110,000.
MAIN MARKET
Motor dealer software provider Pinewood Technologies (PINE) has received a 448p/share cash possible offer from Ridgeview Partners. Management is likely to recommend this if a firm offer is made. There will be a share alternative. Lithia UK owns 31.95% and is supportive, as are other shareholders owning 16.8%. This indicative bid is lower than the Apax Partners offer of 500p/share, which did not go ahead.
Hydrogen Utopia International (HUI) has raised £850,000 at 2p/share and appointed Clear Capital as broker. The cash will fund expansion in Saudi Arabia and extend licence agreements.
Andrew Hore
Quoted Micro 13 July 2026
AQUIS STOCK EXCHANGE
Ajax Resources (AJAX) invested a further £200,000 in Reveille Resources (REV) at the flotation price of 5p/share. Ajax Resources owns 12 million shares and also owns 5.87 million warrants exercisable at 5p each and 10 million warrants exercisable at 10p each. The Reveille Resources share price ended the week at 11.5p. At the end of February 2026, Ajax Resources had cash of £3.13m.
Valereum (VLRM) has updated shareholders on progress with the digital asset and liquidity infrastructure being developed with Quorium Global Photonics. VCORE+ tokens have been issued and are subject to liquidity testing. Operational deliverables have not been completed in the agreed timeframe. Valereum says it reserves its rights under the agreement.
Residential developer Zentra (ZNT) has agreed an extension to its secured loan facility for the New Islington development in Manchester until 9 January 2027. The plan is to move into the construction phase in the first quarter of 2027.
AI-based manufacturing software provider IntelliAM AI (INT) is raising £220,000 at 70p each and £280,000 at from a convertible loan note issue. This will be invested in expanding operations in the US. In the first quarter Chivas brothers, Yeo Valley and Valeo Confectionery have been added to the customer list. Total orders were worth £200,000.
Evrima (EVA) owns 8.93% of Kalahari Key Mineral Exploration Company, which owns the Molopo Farms Complex project. The prospecting licence has been extended by two years and drilling has commenced.
Falconedge (EDGE) generated income of 0.4087 Bitcoin in June, taking the holding to 21.0824 Bitcoin.
Alvar Financial Services has reduced its voting rights in Vaultz Capital (LON: V3TC) from 8.45% to 6.97%.
Bitcoin investor B HODL (HODL) has started a share buyback because of the discount to net asset value. So far, 23,500 shares have been acquired at 4.57p each.
BWA Group (BWAP) chief executive Peter Taylor bought 471,500 shares at 0.424p each, while managing director James Butterfield acquired 350,000 shares at 0.44p each. Newbury Resources (NYR) non-exec James Richardson bought 4,075 shares at 520p each. Cardiogeni (CGNI) executive chairman acquired 1,000,047 shares at 10p each.
EPE Special Opportunities (EO.P) had an NAV of 486.65p/share at the end of June 2026.
JP JENKINS
AI and digital marketing services provider Silver Bullet Data Services Group (SBDS) has left AIM and moved to JP Jenkins.
AIM
Hostels operator Safestay (SSTY) is in talks with Infill Capital Partners concerning a bid that could value the company at £40.9m. That appears to include debt. There could be a cash offer and an unlisted share alternative. NAV was 22.21p/share at the end of 2025. Net debt was £18.6m.
Persistence Gold Group is investing £3.51m in GoldStone Resources (GRL) at 1p/share. This will fund a drilling programme at the Homase mine in Ghana to enhance the JORC mineral resource, plus exploration and mine planning. Persistence Gold can appoint one director while it owns more than 15% – the current stake is 20.96%. Strand Hanson has been appointed broker.
Engineer Avingtrans (AVG) has raised £21m at 630p, which was the previous day’s closing price. This cash will finance increased nuclear in Michigan. The plan is to add around £55m to annual revenues taking them to £90m by 2031. EBITDA could increase by £9.6m-£45m. There is a £5m contingency in the fundraising, so this could also be used for other parts of the business.
Clean Power Hydrogen (CPH2) shares returned from suspension following the finalisation of a fundraising. The retail offer raised the £500,000 target at 1.5p/share. The hydrogen technology company had already raised £2.54m from a placing and a further £4.47m has been raised conditionally. That would take the total to £7.5m. The cash will finance the change in strategy to one involving strategic partnerships, licensing and manufacturing agreements. The cash should last at least until June 2027.
A refinancing by floorcoverings company Victoria (VCP) has reduced debt and cut annual financing costs by £34m. Koch and consenting holders of 2028 loan notes have agreed the terms of a refinancing of the loan notes and Koch agreed to the refinancing of the preferred shares. New loan notes that mature in 2031 will be issued and there will also be ordinary shares swapped at a premium for part of the loan note debt and the majority of the preferred shares. This will reduce liabilities by at least £300m. Trading in 2025-26 was in line with guidance and this year there has been like-for-like growth.
Cleaner fuels developer Quadrise (QED) has raised £12m via a placing at 1p/share and a retail offer that could raise £1.2m is planned. The cash help to increase the scale of MSC/Cargill marine trials, complete other trials, secure supply agreements with refineries and pursue other opportunities. If the full amount is raised in the retail offer there should be enough working capital to get to cash flow positive in 2028-29.
Granicus Holdings, which sold Everfex to Fiinu (BANK), has sent a letter to major shareholders in the Plugin overdraft developer. The writer of the letter is former Everfex boss Karol Oleksa. The letter criticises the Fiinu management for the 2025 loss. A review of the Everfex business identified problems not disclosed at the time of the acquisition. Fiinu is suing the seller due to breaches of restrictive and covenants and seller warranties. The claims are valued at £16m.
Restructuring and property advisory business BTG Consulting (BTG) improved full year pre-tax profit from £23.5m to £25m. There were contributions from acquisitions, but organic revenue growth was 8%. Net debt was £1m at the end of April 2026. Canaccord Genuity upgraded its pre-tax profit forecast to £26.5m.
Outsourced surgery provider One Health Group (OHGR) grew full year revenues 11% to £31.6m and pre-tax profit improved from £1.9m to £2.7m. This year the new surgical hub is being built and that will reduce interest income, so there could be a small dip in profit. This year’s estimated capex is £8.5m, but there should still be net cash by the end of March 2027. Once the new surgical hub is up and running there will be a much higher depreciation charge, but cash generation will improve. Forecasts do not include any contribution from the surgical hub. This provides upside to profit forecasts from 2027-28 onwards.
IT managed services provider SysGroup (SYS) reported full year results in line with forecasts and expectations for 2026-27 have been upgraded. SysGroup increased full year revenues by 8% to £22.1m, following a fall in the first half. Flat overheads offset a higher depreciation charge, so underlying pre-tax profit improved from £300,000 to £400,000. Zeus has edged up its forecast revenues from £24.3m to £24.5m, but pre-tax profit has been upgraded from £1m to £1.5m to reflect the stronger second half margins. Net cash is expected to reach £4m.
Jarvis Securities (JIM) has received £1m in in deferred consideration for the sale of the retail broker business. Another £1m is due in January 2027.
MAIN MARKET
BATM Advanced Communications (BVC) has gained a three-year contract extension with a broadband and cable operator in the US. This worth $1.3m.
Seed Capital Solutions (SCSP) has terminated the potential acquisition of AI company Cuarta Dimension Medica, due to the change of control not being forthcoming from the authorities in Spain. The shares have returned from suspension.
Online travel hostel agency Hostelworld (HSW) is maintaining full year guidance. Interim revenues are 12% ahead at €52.2m. Transaction volumes were 1% higher even though the Middle East conflict held back volumes. The Elevate tool increased income and marketing efficiency improved. The interims will be reported on 29 July.
Andrew Hore
Quoted Micro 18 October 2021
AQUIS STOCK EXCHANGE
Good Energy (GOOD) has followed the lapsed Ecotricity bid with a nine-month trading statement saying that the renewable energy supplier is on course to meet full year expectations. Good Energy is more than 90% hedged for the next 12 months, so there is limited exposure to the current price volatility. Price rises have been implemented. The 0.75p a share interim dividend is payable on 29 November and the ex-dividend date is 21 October. Finance director Rupert Sanderson has sold 14,800 shares at 335p each, while chief executive Nigel Pocklington bought 7,500 shares at 351.666p each.
Walls and Future REIT (WAFR) is engaging with new investors so that there are buyers for the 10% of the share capital where investors are not long-term holders. This is holding back the share price and causing the high discount to NAV, according to management. The company has completed the design of its autism friendly housing.
CBD products supplier Voyager Life (VOY) generated revenues of £65,000 from incorporation to the end of September 2021. Monthly overheads are less than £50,000. There is £1.8m in the bank. New stores are opening in Edinburgh and Dundee.
Yooma Wellness Inc (YOOM) has acquired CBD products manufacturer N8 Essentials for 1.17 million shares issued at 67.3 cents a share. N8 has a 14,000 square foot manufacturing facility in Kansas. This will enable more group production to be brought in house.
Sativa Wellness (SWEL) has launched an online telemedicine service. This enables patients to follow up tests with a virtual medical consultation.
KR1 (KR1) is participating in the Kintsugi crowdloan and Kusama (KSM) parachain auction. KR1 contributed 5,000 KSM to the crowdloan.
Altona Natural Resources (ANR) has started drilling at the Monte Muambe project in Mozambique. This will improve the understanding of the geological model and test four newly identified targets.
The requisition for a general meeting at British Honey (BHC) has been withdrawn. Richard Day has been reappointed chairman and Mark Gamble as an executive director. Alex Maurice has stepped down from the board but continues to be employed by the company.
Hydro Hotel Eastbourne (HYDP) non-exec director CP Freeman has bought 800 shares at 884p each. David Evans has a 7.61% stake in Oberon Investments (OBE).
The SFO has ended its investigation into people associated with Watchstone Group (WTG) when it was known as Quindell.
AIM
Light Science Technologies (LST) is a contract electronics manufacturer and a developer of controlled environment agriculture technology, which joined AIM on 15 October. The agricultural technology being developed helps farmers to maximise crop productivity and monitor the growing environment. The company’s LED lighting range is called nurturGrow Luminaire and the nurturGROW sensor is being developed. There was £5m raised at 10p a share and the price ended the first day at 11.5p. The cash raised in the flotation will be used to expand facilities and increase marketing.
Floorcoverings manufacturer Victoria (VCP) has achieved record interim earnings. The UK has been a strong market, but Australia has been tougher. The full year outcome is likely to be ahead of expectations. Peel Hunt has upgraded its full year pre-tax profit forecast from £58.3m to £65m.
Branded furnishings and wallcoverings supplier Sanderson Design Group (SDG) improved interim pre-tax profit by 22% to £6m on a 48% increase in revenues. North American and UK sales were strong, and the manufacturing business bounced back. Management plans to generate more income from the archive of past patterns and designs. Net cash is £15.4m. Sanderson is on course to achieve an increase in full year pre-tax profit from £7.1m to £10.9m.
Eqtec (EQT) plans to acquire a 5MW project in Drama, Greece, which will generate energy from forestry waste. Financial close should be achieved for the project in the third quarter of 2022. There is also an additional £2.1m of investment in the North Fork project in California, which increases the stake from 10% to 49%. The 2MW biomass to energy project has been delayed due to fires and Covid. A $4.5m convertible loan facility has been provided to the development.
CyanConnode (CYAN) says interim revenues were £4.1m and it is well on the way to £9.4m of revenues for the full year. The narrowband radio frequency networks company continues to lose money, but cash levels should improve.
Motor dealer Vertu Motors (VTU) recorded record first half results despite supply problems for new vehicles. Used car prices have been rising because of the shortage of new vehicles. In the six months to August 2021, revenues increased from £1.2bn to £1.92bn. Underlying pre-tax profit soared from £4.7m to £51.8m, which is more than treble the first half of 2019-20. Net cash is £57.3m. The interim dividend has been re-established at 0.65p a share. The net tangible asset value is 61.5p a share.
High street sales recovered at fishing tackle retailer Angling Direct (ANG) despite being closed in the first ten weeks of the first half and online sales continued to grow. In the six months to July 2021, revenues improved from £32.1m to £38.4m with high street sales increasing by two-fifths. Online sales were 2% ahead. Pre-tax profit jumped from £1.36m to £3.72m, which includes government lockdown support. Full year pre-tax profit is expected to increase from £2.6m to £3.5m.
Driving safety technology developer Seeing Machines (SEE) has signed a framework agreement with Shell Global Solutions for its Guardian driver distraction and fatigue technology. Deployments should start later this year. Shell has 20,000 vehicles, compared with the total number of 31,771 vehicles using Guardian technology. Seeing Machines has also set up an EU sales team with a headquarters in Amsterdam.
Gresham House Strategic (GHS) has decided to change its investment manager from Gresham House Asset Management to Harwood Capital, where its previous investment manager Richard Staveley moved earlier this year, and Gresham House (GHE) has requisitioned a general meeting in order to have the company’s cash distributed to shareholders and the portfolio of investments liquidated over a 24-month period. Gresham House has a 23.3% stake in Gresham House Strategic and claims the backing of 40% of the share capital. The opposition to the move owns 30% of the company. Harwood intends to invest in the company, and it will generate lower fees, which will save the company £270,000.
Iodine company Iofina (IOF) produced 142.7 MT of crystalline iodine in the third quarter of 2021 and that underpins full year forecasts. Iodine prices continue to rise and recently hit $40/kg.
MAIN MARKET
LED lighting and wiring accessories supplier Luceco (LUCE) has acquired DW Windsor, an exterior lighting business, for £16.9m in cash. In the year to September 2021, operating profit was £1.9m.
Highway Capital (HWC) has finally found a suitable reverse takeover target, although there is no firm agreement. There will be a fundraising alongside the purchase of esports adviser and investor Guinevere Capital Esports & Entertainment. No purchase price has been announced
Oxford Cannabinoid Technologies (OCTP) has acquired medical assets from Canopy Growth Corporation, which provides access to cannabinoid derivatives and will help the company to develop additional drug projects. The lead compound OCT461201, which is a potential neuropathic pain treatment, is progressing towards clinical trials in the third quarter of 2022.
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 3 August 2020
AQUIS STOCK EXCHANGE
Newbury Racecourse (NYR) says that it is confident that it has the resources to trade through the current economic difficulties. Significant losses are expected this year and into next year. There was £1.27m in the bank at the end of 2019. Net assets were £50.9m. Newbury increased revenues by 3% to £19.8m in 2019, while underlying pre-tax profit fell by two-thirds to £490,000.
Blockchain technology and tokens investor KR1 (KR1) reported realised gains of £694,000 in 2019, while staking yields and advisory fees generated £422.000 in income. There was also a net unrealised gain on all investments of nearly £1m. Reported pre-tax profit was £1.36m, compared with a large loss the previous year because of a significant unrealised loss. NAV was £7.47m at the end of 2019.
NQ Minerals (NQMI) is raising a further £447,500 at 7p a share. This also helps to extend the shareholder register. The cash will finance the reopening of the Beaconsfield gold mine.
Cadence Minerals (KDNC) says that the capex on the Yangibana rare earths project, where Cadence has a 30% interest, will be reduced by A$68m (13% of the total) due to the relocation of the processing plant.
Clean Invest Africa (CIA) has secured a contract to produce 10,000 tonnes of ilmenite pellets from tailings sludge. This will increase the effectiveness of the ilmenite and get rid of the sludge. This indicates that there is a broader market for the pelleting technology than just coal.
Eight Capital Partners (ECP) is restructuring its investment in Financial Innovations Team because of a disappointing performance. The investment will be unwound, and the funds invested should be recovered. The stake has been returned to the vendors and a vendor loan has been cancelled and Eight Capital bonds returned. That totals €750,000 out of the aggregate consideration of €1.2m, with a further €100,000 to come. A £1 payment has secured an option to take a 60% stake Innovative Finance.
Incanthera (INC) has filed a new patent for its Sol skin cancer technology. This should extend the life of the Sol patents to 2041.
European Lithium Ltd (EUR) has received the A$1m balance of the $10m finance facility with Winance Investment.
AIM
Floorcoverings manufacturer Victoria (VCP) traded strongly in June following a tough three months. There was limited impact on the figures for the year to March 2020 with revenues of £621.5m and like-for-like growth of 0.4%. Higher interest charges held back pre-tax profit to £50.7m. Net debt was £365.9m, with most debt in the form of quoted bonds. There is £174.7m of cash in the balance sheet. This could be used to finance further acquisitions. Pre-tax profit is forecast to decline to £27m this year before improving to £54m next year. The outcomes will depend on the strength and consistency of the recovery.
Peter Gyllenhammar continues to build up his stake in Brand Architekts (BAR) and it has reached 6.1%. He owned less than 3% just over a fortnight ago. This follows the reduction in the stake held by Gresham House Strategic (GHS) to below 3%.
Fortiana Holdings has launched a recommended 300p a share bid for Highland Gold Mining (HGM) and that values the gold miner at £1.09bn. The Highland share price has not hit 300p since 2006.
At the end of March 2020, the NAV of Wynnstay Properties (WSP) was 792p a share. In the first quarter, 100% of rents were received.
Harwood Capital is offering 37.5p a share for property manager HML Holdings (HMLH) and this valued it at £19m.
Goldplat (GDP) says its gold recovery processing operations in South Africa and Ghana have increased profitability in the year to June 2020. South Africa more than doubled its profit contribution and Ghana moved from loss to profit. The higher gold price has offset shutdown periods. here was £3.2m in the bank at the end of June 2020. The loss-making Kilmapesa mine is being sold for an initial payment of $1.5m plus up to $1.5m via a 1% net smelter royalty. An unnamed UK listed company plans to make the acquisition if it raises at least $4m and gains shareholder approval.
Gemfields (GEM) reduced cash operating spending to below $5m in June and that left net cash of $9.3m. There is uncertainty about whether gemstone auctions will be held. If not, more cash is likely to be needed
Coro Energy (CORO) is not going ahead with the disposal of its Italian oil and gas assets Zenith Energy (ZEN) because regulatory approval has not been received.
Shareholders of cash shell Safe Harbour Holdings (SHH) have voted to wind up the company, although one-fifth of the votes were against the resolution. A 74p a share distribution will be made by the end of September and a final distribution is planned by next July.
MAIN MARKET
Tex Holdings (TXH) says it needs additional working capital and is talking to its major shareholder. The plastics division is trading at 70% of expected levels, while engineering is having a difficult year, although orders improved in June. Other parts of the business are suffering delays in orders.
Books publisher Quarto (QRT) reported a slump in revenues from $56.4m to $46.9m, although the underlying loss dipped from $3.7m to $3.3m due to lower interest charges. Cash generated from operating activities was $8.38m. Pre-publication costs fell from $11.9m to $10.3m. Net debt was $36.6m at the end of June 2020.
Spinnaker Opportunities (SOP) says that it believes that the UK review of regulatory requirements for cannabis-related companies is near completion. When this happens Spinnaker should be able to complete the acquisition of Kanabo Research.
A gain on a disposal of an investment by Sure Valley Ventures has helped Sure Ventures (SURE) to increase its NAV to 92.6p a share.
Andrew Hore
Andrew Hore – Quoted Micro 29 June 2020
AQUIS STOCK EXCHANGE
Chapel Down Group (CDGP) increased sales last year, but the loss was also higher. Sales of wine and beer grew and revenues from continuing activities improved from £12.86m to £14.8m, while the loss more than doubled from £850,000 to £2.09m. the Chapel Down Gin Works in Kings Cross has been closed. There was still £2.47m in the bank at the end of 2019, even after the loss and £12m of investment in fixed assets and land. There are 428 acres of planted vineyard. Wine stocks have also increased following a good harvest. The Ashford brewery has been completed and full brewing capacity will be available before the end of the year. Martin Glenn is succeeding John Dunsmore as chairman.
Rutherford Health (RUTH) has entered into a £55m development framework agreement with Equitix, an investor in infrastructure assets. This will finance up to five diagnostic facilities in the UK. Each will be owned by a special purpose vehicle funded by Equitix and operated by Rutherford. An initial agreement has been made with a NHS Trust. Rutherford also announced a collaboration with Panthera Biopartners, which will be able to use Rutherford’s clinics for trials of potential cancer treatments.
Racing recommenced at Newbury Racecourse (NYR) on 11 June. Three race meetings have been held and five more are planned by the end of August. No public are being admitted. Revenues are coming from media rights. The Rocking Horse nursery reopened earlier this month.
Good Energy (GOOD) is increasing its investment in Next Green Car, which owns Zap-Map, to 50.1% through the exercise of a convertible loan.
BWA (BWAP) has spent £120,000 of the initial commitment of £250,000 for two rutile licence areas in Cameroon. Drilling programmes are being designed. COVID-19 has hampered progress with the company’s Canadian interests.
Coinsilium Group Ltd (COIN) says that investee company Factom Inc has filed for Cahpter 11 bankruptcy protection because of its failure to raise more cash. It could exit Chapter 11 protection within three months if things go to plan.The investment was valued at £237,000.
IamFire (FIRE) is reviewing strategies having raised £500,000 at 2.5p a share. Each share comes with two warrants with an exercise price of 10p a share. The investment focus is natural resources, mining and disruptive technology.
SAPO (SAPO) is still seeking a broadband investment and net assets were £1.1m at the end of 2019. At 3.2p a share, SAPO is valued at £6m.
Gunsynd (GUN) has invested £137,750 in Rincon Resources, which gives it a stake of 28.4%. Rincon has the rights to three prospective gold and base metals projects in Western Australia. Gunsynd has sold its stake in United Oil and Gas (UOG).
All Star Minerals (ASMO) has raised a further £200,000 at 0.02p a share, taking the total raised in share issues to £280,000. Convertible loan notes worth £55,000 have been converted into 275 million shares with 34 million shares at 0.01p each to pay liabilities. This means that more than 1.3 billion shares have been issued, which has nearly doubled the shares in issue.
AIM
Recent trading at floorcoverings supplier Victoria (VCP) has exceeded expectations. Manufacturing has restarted in all the company’s plants. All the main countries are doing relatively well considering the disruption due to COVID-19 and in the most recent three weeks revenues were 85% of pre-COVID-19 budget. The UK carpets business is only just getting going again. Net debt is £370m, which is predominantly bonds that last until July 2024. Cash generation can reduce debt, although management is likely to look for potential acquisitions.
Wynnstay Group (WYN) reported a decline in interim revenues but that was due to lower commodity prices. The interim dividend has been maintained at 4.6p a share. The agriculture division maintained its operating profit, but there was an improved profit from the merchanting division. Pre-tax profit edged up from £4.3m to £4.5m. Shore Capital has reinstated forecasts. It expects a pre-tax profit of £6.7m, down from £7.9m. This id a deliberately cautious figure.
MSQ Partners has launched a 0.5p a share bid for Be Heard Group (HRD) and that values the digital media company at £6.2m. The acquirer was the subject of a buyout last year. The combined business will have the backing of Lloyds Development Capital and the greater scale will help to win larger clients.
United Oil and Gas (UOG) says that average production from the Abu Sennan concession in the first two weeks of June was 13,900 boepd, of which its working interest is 3,060 boepd. That is 69% higher than the average daily figure in April. The 2P reserves at Abu Sennan have been increased by 12.55 to 13.5MMboe
Transense Technologies (TRT) has transferred its iTrack tyre monitoring business to a Bridgestone subsidiary for $1m and it will receive quarterly royalty revenues for the next ten years. That royalty would be £150,000/ quarter currently, but growth should be faster under Bridgestone. Two Transense directors are moving with iTrack. This leaves Transense with its SAWsense (wireless tyre sensor technology) and Translogik (tyre test equipment) businesses. Transense could move into profit in 2021-22.
A positive trading statement from allergy vaccines developer Allergy Therapeutics (AGY) led finnCap to increase its 2020 pre-tax profit forecast even though revenue growth is slower than expected. A 2019-20 profit of £2.9m is expected, partly due to the timing of research spending. Allergy is expected to move back into loss in 2020-21.
Beximco Pharmaceuticals (BXP) increased its revenues and pre-tax profit in the nine months to March 2020, with particularly strong growth in the third quarter. There is some disruption to international distribution and supply and full year revenue growth will be lower than originally expected.
Dekel Agri-Vision (DKL) reported flat full year revenues of €20.9m for 2019. The loss was barely changed at €3.29m. There has been a decline in the palm oil price in recent months, which will hamper performance this year. The cashew project is making good progress.
MAIN MARKET
Strong first half trading at BATM Advanced Communication (BVC) has led to broker upgrades for 2020. The biomedical division has done particularly well, but the networks and cyber division has also done better than expected. Stifel is raising its revenues forecast from $138m to $155m, while the EBITDA estimate has been increased by one-third to $13m. Shore Capital expects to increase forecast revenues by 17% to around $154m with a significant improvement in EBITDA expected.
Construction services provider nmcn (NMCN) made a positive start in the first quarter of this year. Revenues were 4% ahead at £97.9m and pre-tax profit 6% higher at £1.8m. This period was hardly affected by the lockdown. Since the end of March, work has been at three-quarters of normal levels. There was £11.8m in cash at the end of March 2020. The interims will be reported on 6 August and there should be guidance for the full year outcome.
Tex Holdings (TXH) expects to make further cost savings and consolidate more of its activities. The plastics division is operating at 70% of expected levels, while the engineering division has suffered delays but not lost business.
Standard list shell Boston International (BIH) had £302,000 in cash at the end of 2019. It is still assessing the proposed acquisition of invoice factoring company Alexanders Discount Ltd
Rainbow Rare Earths (RBW) has raised £1.25m at 3p a share. The cash will accelerate trial mining at the Gakara rare earth project in Burundi.
The 2019 figures of Ross Group (RGP) include pharmaceutical grade Chitin producer Archipelago Aquaculture Group (AAG) for the first time. There were restructuring and impairment costs relating to the acquisition. Pilot production is being implemented and there are joint venture discussions with the company that has developed the Ionic Liquid extraction process licenced by AAG. There was a £3.6m loss in 2019.
SMALL CAP AWARDS 2020
Company of the year: Volex
Technology company of the year: Avacta
Impact company of the year: ITM Power
IPO of the year: Diaceutics
Transaction of the year: Kape acquisition of Private Internet Access
Executive director of the year: David Cicurel (Judges Scientific)
Innovative financing of the year: Yu Group
Journalist of the year: Joanne Hart (Mail on Sunday)
Analyst of the year: Lorne Daniel (finnCap)
VCT manager of the year: Amati
UK smaller companies fund manager of the year: JPM UK Smaller Companies
Lifetime achievement award: Giles Hargreave
Andrew Hore Quoted Micro 22 July 2019
NEX EXCHANGE
Arbuthnot Banking (ARBB) improved its underlying pre-tax profit from £2.7m to £3.4m in the first half of 2019. The interim dividend has been raised from 15p a share to 16p a share. The recent residential mortgage portfolio acquisition was after the end of June. The strategy is to diversify the business and asset-based lending and specialist finance are being built up. Savings platform Arbuthnot Direct has recently been launched. The core private banking operations of Arbuthnot Latham are still growing, though. The shareholding in Secure Trust Bank has been sold down to below 10%, which means it is no longer consolidated. The change from associate led to a write down and NAV declined to £13.21 a share.
VI Mining (VIM) has so far paid $9.1m in cash to the vendors of the Minaspampa and Rosario projects in Peru. There is still $42.2m outstanding 18 months after the acquisition agreement was signed. Majority shareholder Sumner Group Holdings is raising money from a security token offering, which could be completed in the autumn. Some of the proceeds will be used to replace existing facilities and help to pay outstanding acquisition considering, pending renegotiation of the deal. Chief executive David Sumner has provided a $10m term loan, plus a £39m facility of which $3m has been drawn down. There is $1.2m outstanding on the Tassili Jewellery LLC loan facility.
AfriAg Global (AFRI) has completed its acquisition of a 2.325% stake in cannabis company Apollon Formularies. The Jamaican subsidiary has produced its first licensed medical cannabis oils for commercial sale on the island.
MetalNRG (MNRG) has published a prospectus for its move to a standard listing on 23 July. It has raised £193,000 at 0.3p a share.
Clean Invest Africa (CIA) says that its CoalTech subsidiary has signed a joint venture agreement with Creon Capital covering Russia and nearby countries. CoalTech is negotiating with other potential partners to set up operations in Europe, Indonesia and the US.
Tectonic Gold (TTAU) says its mining subsidiary has received approval for the R and D tax incentive scheme in Australia for 2018-19. A claim is being prepared.
Share trading has recommenced in Ganapati (GANP) after it published results for the year to January 2019. There was a cash outflow from operations of £23.8m. Since January, two new games have been generated each month.
AIM
Focusrite (TUNE) has acquired Germany-based studio monitor loudspeakers supplier Pro Audio for £16.2m in cash and it will still have £12m left in the bank. Pro Audio supplies ADAM branded products and made a pre-tax profit of €1m. This is an earnings enhancing acquisition. The businesses will operate separately but work together to develop cross-selling benefits.
Swallowfield (SWL) is selling its manufacturing business to the much larger US manufacturer Knowlton Development Corporation for £35m in order to concentrate on its portfolio of personal care and beauty brands. This should leave net cash of £23m in Swallowfield and this will be used to acquire more brands. The company is changing its name to Brand Architekts Group.
Lawyer Gateley (GTLY) grew all its main operations. Acquisitions helped revenues to increase by one-fifth to £103.5m in the year to April 2019, but there was still organic growth of 9.5%. Pre-tax profit improved from £15.4m to £18.1m. The dividend was raised from 7p a share to 8p a share. Corporate business grew more modestly than other parts of the business, but this was impressive given market conditions for corporate deals. A profit of £21m is forecast for this year.
Victoria (VCP) has raised €330m via an issue of 5.25% senior secured notes 2024. This offer was three times subscribed. The floorcoverings manufacturer is using the money to refinance existing debt and will have £80m of cash after the issue.
Packaging machinery supplier Mpac Group (MPAC) is trading significantly ahead of expectations. Equity Development has increased its 2019 operating profit forecast from £4.6m to £5.5m.
Adamas Finance Asia (ADAM) has completed a co-investment agreement with a Hong Kong-based family office for the investment in Japanese resort business Infinity Capital Group. The family office will pay Adamas $1m of the $2m already drawn by Infinity and the other $2m will be provided 50/50 by the two parties. The facility has a coupon of 17.5% per annum. This deal provides cash to invest in other opportunities. Adamas took advantage of a dip in the share price to buy back £30,400worth of shares at 38p each.
Velocys (VLS) has raised £7m at 3p a share on the back of news that Shell and British Airways will co-fund the development of the Immingham biorefinery project. The cash will be used for further technology development and to progress the Mississippi biorefinery project.
Block Energy (BLOE) has completed the increase from a 71.5% to 100% of its working interest in the West Rustavi field in Georgia. The cash and shares payment means tha Georgia Oil and Gas has increased its stake in Block to 7.7%. Miton has cut its stake from 9.17% to 4.73%.
Mortice (MORT) has decided to cancel its AIM quotation and is offering shareholders the chance to sell their shares for 12p each. A lack of liquidity and a weak share price making it difficult to finance acquisitions are the main reasons for leaving AIM.
Albert Technologies Ltd (ALB) also wants to leave AIM, but it is not offering an exit for shareholders. It believes it can attract investors, but they would prefer to invest in an unquoted company.
Science Group (SAG) has been buying more shares in Frontier Smart Technologies (FST) at the bid price of 35p each and it has built up a 39.9% stake. It also has 3.1% acceptances for its bid.
Mirada (MIRA) has integrated Netflix into its set-top box platform and this will make its technology even more attractive to broadcasters.
Bangladesh has brought in a law that all listed companies have to pay at least 30% of post-tax profit, or an extra 10% tax charge will be levied. Beximco Pharmaceuticals (BXP) is assessing the legislation and will consider how best to manage cash.
Novacyt (NCYT) has sold its loss-making clinical labs business for £400,000 and it will concentrate on diagnostics businesses Primerdesign and Lab21. The first instalment of £100,000 has been paid and £100,000 more is due in September, but the rest will be paid in three equal instalments on the first, second and third anniversaries of the deal.
MAIN MARKET
Spinnaker Opportunities (SOP) has received a commitment to invest up to £1.4m from a single investor conditional on the deal to acquire medicinal cannabis company Kanabo Research. The investment will be for a maximum of 4.99% of the enlarged share capital, although if there is any of the £1.4m left it could be invested in a convertible loan note. The investment underpins the expected acquisition-related fundraising and a fee of 10% of the investment is payable.
General meeting resolutions to wind-up Avocet Mining (AVM) were withdrawn at its general meeting. This comes after discussions with shareholders. There is a few weeks cash left in the business and any potential transaction would have to come with finance to cover the costs of an acquisition process.
Dukemount Capital (DKE) has commenced construction of 17 specially developed apartments and retail space on its West Derby property.
OTHER MARKETS
Fashion On Screen has listed on the Vienna Stock Exchange, which has European Growth Market status by the HMRC. This means that there is no stamp duty. The company had previously considered a listing on the Nasdaq First North market in Copenhagen. Fashion On Screen has raised more than £3m prior to its listing. A film based on the kidnapping of racing driver Juan Fangio in Cuba in 1958 could start before the end of the year (for more about the background to the story listen to https://www.bbc.co.uk/programmes/p055fjfx).
Andrew Hore
Andrew Hore Quoted Micro 25 February 2019
NEX EXCHANGE
Western Selection (WESP) has reported a 22% decrease in NAV to 75p a share, due to the decline in smaller quoted company share prices. The NAV has recovered to 79p a share. The investment in Swallowfield (SWL) declined by nearly one-third and the value of the Bilby (BILB) stake fell by two-fifths in the six months to December 2018. Net debt was £1.25m at the end of 2018. The interim dividend is maintained at 1.1p a share.
Early Equity (EEQP) has acquired a 60% stake in MEI Home, a ecommerce platform for household, health and food products, for £282,000. The Malaysia-based business was profitable in the first financial year. The founder will retain a 40% stake and he also owns 6.12% of Early Equity. He also promises that annual pre-tax profit will be at least £95,000 in each of the next two financial years.
Tectonic Gold (TTAU) has taken a 50% stake in a joint venture with Vast Mineral Sands covering diamond mining concessions at the government-owned Alexkor diamond mine in South Africa. This should generate cash, through planned production of 900 carat per month, to invest in other projects. Tectonic is paying $650,000 in shares at 2.2p each. A year long research study has confirmed that there is an interaction of two styles of mineralisation at Mount Cassidy prospect in Queensland, Australia. There is stratabound copper and zinc, gold and silver mineralisation and epizonal to epithermal gold and silver mineralisation.
MiLOC Group Ltd (ML.P) has extended the life of its convertible bond by one year to 19 January 2020. The annual coupon increases from 6% to 7.2%. The conversion into shares can take place if an alternative quotation on a recognised stock exchange is secured.
First Sentinel (FSEN) has completed a £4m bond issue. These 7% bonds 2023 are due to start trading on NEX.
AIM
Michelmersh Brick (MBH) has made its first acquisition outside of the UK. Michelmersh is paying up to €9.9m (£8.7m) for Antwerp-based Floren and Co in a deal that should be immediately earnings enhancing. A placing raised £5m at 90p a share. In 2018, Floren generated EBITDA of €1.75m on revenues of €5.7m. Michelmersh is planning to increase production levels from 19.5 million bricks a year. The acquisition includes 120 acres of land, of which 60 acres is used in production.
IP legal services provider Murgitroyd Group (MUR) is acquiring Southampton-based Chapman IP for £6.6m and Helga Chapman has been appointed a non-executive director. Net cash was £2.03m at the end of November 2018. Interim pre-tax profit edged up from £1.67m to £1.7m. The interim dividend was increased by 8% to 7p a share. Edward Murgitroyd is retaining his role as chief executive and handing over the role of finance director Keith Young.
Carpets and hard flooring manufacturer Victoria (VCP) continued to sacrifice margins in order to add market share in a declining flooring market in the UK in the second half of the financial year to March 2019. Full year EBITDA should be between £95m-£97m, with underlying pre-tax profit of at least £55m. This is not as much as previously forecast. There are additional inventories ahead of Brexit. Restructuring measures and capital investment should add more than £14m to pre-tax profit for the year to March 2020.
JD Sports Fashion (JD.) has acquired 21.3% of Footasylum (FOOT) and it says it may acquire up to 29.9%. FIL Ltd’s stake has fallen below 5%. Artemis has sold its 5.74% stake.
Angling Direct (ANG) expects to report full year revenues of £42m, up from £30.2m. Three new stores have been added to the group, taking the total to 24. International sales doubled. The full year results will be published on 13 May. Angling Direct is considering the acquisition of Glasgow-based Chapmans Angling Ltd, which is a subsidiary of The Glasgow Angling Centre Ltd.
Egdon Resources (EDR) has competed drilling at Biscathorpe-2 in Lincolnshire. There are signs of an effective petroleum system even though the sands were poorly developed. The reservoir may be better developed to the north of the well. Egdon owns 35.8% of the exploration licence and Union Jack Oil (UJO) owns 22%.
Trinidad-focused oil and gas producer and explorer Touchstone Exploration Inc (TXP) has raised £3.8m at 12p a share in order to finance the 9,000 feet of exploration drilling at Ortoire.
Pelatro (PTRO) has gained a contract to supply its mViva contextual marketing service to Vietnam-based Vinaphone. The deal with the telecoms company should be worth $1.5m over three years. Pelatro gets a fixed monthly fee plus a share of incremental revenues generated. This provides additional confidence that the 2019 revenue forecast of $10.5m can be met. That is expected to generate pre-tax profit of $6m because of the high operational gearing of the business.
SkinBioTherapeutics (SBTX) has raised £1.5m at 16p a share from Seneca Partners. There was £2.52m in the bank at the end of 2018. The cash will be invested in further development of products and commercialise them.
Duke Royalty (DUKE) has provided £10m of royalty finance to recreational vehicle parts wholesaler Miriad Products. The monthly payments are expected to provide a yield the equivalent of 13% a year.
Biopesticide products developer Eden Research (EDEN) has a second approved product thanks to its commercial partner Eastman Chemical Company. Nematicide formulation Cedroz has received authorisation in Malta and Eastman will apply to gain approvals in individual EU member states. The full benefit of these approvals is likely to show through next year.
EKF Diagnostics (EKF) has received US FDA clearance for the use of the Quo-Test glycated haemoglobin analyser in clinical laboratories.
It has been a mixed start to the financial year for Gooch and Housego (GHH) with softer demand in microelectronics, due to trade tariffs, but the second half improvement in subsea cable business has continue. The AGM statement has led to a reduction in the underlying profit forecast for this year from £21.5m to £19m, which is slightly higher than last year’s outcome.
Social housing software provider Castleton Technology (CTP) has acquired its software development partner in India for £350,000 in cash and shares.
eServGlobal (ESG) says that its 35.7%-owned mobile transfer payments joint venture HomeSend increased its average transaction value by 35% in the second half following a change in strategy to focus on account-to-account transactions rather than remittances.
Beximco Pharmaceuticals (BXP) is acquiring eight abbreviated new drug applications in the US from Sandoz Inc. This takes the number of US approved drugs to 14, with four currently being exported to the US.
Haydale Graphene Industries (HAYD) has raised £4m at 2p a share and wants to raise up to £4m more through a seven-for-one open offer closing on 11 March. If these shares are all issued they will account for 93% of the total shares in issue. Haydale needs cash to invest in its inks business as well as to cover continuing losses. Keith Broadbent will become chief executive.
Reach4Entertainment (R4E) has acquired the arts and entertainment advertising agency trading as Sold Out for an initial £3.94m in cash and £250,000 in shares. The total purchase price is dependent on performance in the period from 1 June 2017 to the end of 2021 and is capped at £10m. In the year to May 2018, Sold Out made a pre-tax profit of £1.3m.
Paragon Entertainment (PEL) has sold its current administration offices in York for £550,000. The relocation to other group premises should save £100,000 a year. The cash will pay off the mortgage of £134,000 and reduce the overdraft from £1.04m. The overdraft limit will be cut from £1.2m to £882,000. A creditor owing £168,000 has filed for protection from creditors. Management want to raise additional capital.
Medical devices supplier Inspiration Health (IHC) says revenues for the year to January 2019, will be £15.5m, which is £1m below forecast, and pre-tax profit will be slightly lower than forecast at £1.2m.
Holders Technology (HDT) has more than trebled its full year pre-tax profit of £177,000 thanks to a reduced LED loss and improved profitability at the printed circuit board materials business. There was still a cash outflow from operations. The dividend has been increased by 50% to 0.75p a share.
Arc Minerals Ltd (ARCM) has raised £2.2m at 3p a unit. The unit includes a share and one warrant exercisable at 4.5p each and lasting for 36 months. The cash will finance exploration and development at the Zamsort copper project in Zambia. Arc has also sold its 18.5% stake in Andiamo Exploration for $250,000.
Malvern International (MLVN) has raised £606,000 at 4p a share. This is more than the education services provider originally asked for in order to cover working capital requirements and investment in a new college in Brighton and online course material.
AIM-quoted blockchain and technology investment company Vela Technologies (VELA) is taking advantage of the discount to cash by buying 500,000 shares in cryptocurrency mining services provider Argo Blockchain (ARB) at 3.072p a share. This compares with cash of 5p a share. Vela has 3 million shares in Argo, equivalent to 1.02%. The rest of the shares were bought prior to Argo’s standard listing and cost 8p each, compared with the flotation price of 16p a share. The average cost is 7.17p a share, so the average cost exceeds the value of cash in the business. Argo is refocusing on its own currency mining. Ongoing costs will be cut by one-third, although there will be some one-off cash costs. Net cash is £15m and that is much more than the market capitalisation of Argo.
ReNeuron (RENE) has released early data on three patients in phase I/IIa clinical trial the human retinal progenitor cell product. There have been significant improvements in vision for the patients, but this is a small sample size over a short time. Cash should last until the end of 2019.
Pires Investments (PIRI) has received a requisition notice for a general meeting in order to make changes to the company’s board.
Best of the Best (BOTB) has received tenders for just over 4 million shares, which is 5.6 times the number that it was tendering for. Best of the Best will pay £3.5m for 721,327 shares (485p a share).
FAIRFX Group (FFX) has become a direct participant in the UK faster payments scheme. It is the fourth non-bank to be a direct settling member.
Crossword Cybersecurity (CCS) says Kinnerton Confectionery will be using its Rizikon Assurance secure third party assurance platform.
Former AIM company Lionsgold Ltd (LION) is changing its name to Tally Ltd. Mobile banking app Tally is in beta testing and could be released by the end of February. Once this has been released the company will seek to gain a new quotation. The exercise of warrants, mostly by directors, at 1.2p a share has generated £288,000.
MAIN MARKET
Packaging group Macfarlane Group (MACF) increased its pre-exceptional profit by one-fifth to £11.2m in 2018. Both distribution, helped by acquisitions, and manufacturing divisions increased their profit contributions. Manufacturing sales grew fastest but margins fell. The dividend was increased by nearly 10% to 2.3p a share. Net debt was £13.2m and there are plenty of unused bank facilities to fund any further acquisitions. The pension deficit was reduced by £2m to £9.8m.
In the six months to December 2018, Avation (AVAP) reported doubled earnings per share thanks to the gain on the sale of a A321-200 aircraft. The NAV is 288p. The aircraft fleet continues to increase, particularly turboprop aircraft. Although full year pre-tax profit is set to rise even more than originally forecast, earnings per share are likely to be flat at 31.7 cents. Next year’s profit will be lower, assuming no aircraft disposals.
InnovaDerma (IDP) reported interims in line with expectations and there are plans for a mid-March launch for Skinny Tan in Boots. This will help the second half performance, which is normally stronger. Full year pre-tax profit is expected to more than double to £1.5m, a downgrade of 10%. Net cash was £700,000 at the end of 2018. A cash inflow is expected in the second half, but fluctuations in cash in terms of working capital requirements, such as Boots order levels, during the period could lead to InnovaDerma deciding to raise more money.
Anglo African Agriculture (AAAP) reported a reduction in turnover from £2.13m to £1.74m in the year to October 2018. Even so, gross margins improved and the pre-tax loss edged up from £550,000 to £573,000. Net cash was £856,000. The company is assessing acquisitions outside of the agriculture sector.
Trading in the shares of daVictus (DVT) has been suspended ahead of finalisation of a deal where the standard list shell will buy the rights to a restaurant concept from Typical Dutch NV for £100,000. This is deemed to require a prospectus before the company can be readmitted to the standard list. The Havana Rolled Cigar Music Café concept has been developed at a site in Aruba. daVictus had £431,000 in the bank at the end of June 2018.
Offshore support vessels operator Gulf Marine Services (GMS) has sent out the document for its requisitioned general meeting on 18 March. Rival Seafox International wants to remove the chairman and appoint three new directors. Ithmar Capital Partners wants to appoint another director.
Andrew Hore
Ian Pollard Victoria Plc (VCP) Politely Invites Shareholders To Take A Walk
Victoria plc VCP decided to take advantage of difficult market conditions to pursue market share. The Board now recognises this impacted earnings this year and has unsettled some shareholders. It believes however that the strategy is in the best long-term interests of the Group and its shareholders and appears in effect to have told the shareholders to take a walk and has continued with the strategy. The Board believes markets are down 6-8% in the UK and Australia and flat in Europe but the Group has continued to grow overall like-for-like revenues and gained meaningful market share. The Group expects that the current-year to March 2019 EBITDA is likely to be £95m-£97 million a rise of nearly 50% over the year to March 2018 and the Group’s 2019 underlying pre-tax profits are expected to be around around 35-39% higher than 2018.
Reckitt Benckiser Gp plc RB claims that 2018 was a year of good financial progress, achieved in an environment of challenging market conditions. Pro-forma and LFL growth came in at 3%. plus 2% from volume and +1% from price / mix.The final dividend is being being increased to 100.2p, a rise of 3% and like for like net growth is targeted at 3.4% for 2019. The CEO says that the company is well positioned for long term, sustainable growth.
Angling Direct plc ANG expects to report revenue of £42.0 million,an increase of 38.9% for the 12 months to the 31st January compared to the same period in the previous year.In store sales showed an increase of 50% overall or 6.2% on a like for like basis. whilst online sales grew by 30.3%. International sales surged by 98% to £4.66m and now account for 20.9% of the Group’s online sales. with shipments going to 49 different countries, this success has delighted the board. The business has also now been structured in readiness for Brexit
Xpediator plc XPD confirms that it has achieved its growth objectives and recorded significant increases in sales and profits for the twelve months to 31 December 2018. Total revenues increased by 54% Import Services Logistics and Anglia Forwarding, both of which were acquired during 2018, contributed an additional 18% in revenue and added over 400 new customers. The Company’s Brexit team has been working closely with leading transport associations and port authorities to plan ahead. and will be able to support both exporters and importers post Brexit.
Find beachfront villas & houses for sale in Greece; http://www.hiddengreece.net
Andrew Hore – Quoted Micro 11 February 2019
NEX EXCHANGE
Primorus Investments (PRIM) says that investee company Sport:80 has delayed its flotation because it has been tidying up its shareholder register. Fintech company Engage Technology is also seeking to float later in 2019 following new product launches. Engage raised £2.6m at £22 a share at the end of 2018, whereas the average buying price by Primorus was £20.03 a share. Investee company, AIM-quoted Greatland Gold (GGP) has published results from the second drilling campaign at Havieron in Western Australia. Every drill hole intersected mineralisation and they extend the overall mineralisation. Drilling will recommence in March. Primorus has raised cash by selling most of the stake in UK Oil and Gas (UKOG) and Primorus was debt free at the end of 2018.
NEX has decided not to suspend trading in the shares of VI Mining (VIM) even though its corporate adviser Daniel Stewart is no longer a member of NEX. VI Mining had little or no notice of its adviser’s withdrawal. A new corporate adviser is being sought.
Milamber Ventures (MLVP) has acquired apprenticeship training provider Astara Training for £16,666 in shares at 9p each. Milamber lost £179,000 in the third quarter and there was £30,000 in the bank at the end of 2018.
Panther Metals (PALM) has announced the initial results of exploration activity at the Bear Lake project in Ontario. There was gold in soil anomalies at four of the five areas tested. Four areas have quartz vein sample assays above 5g/t gold. Two samples had large grade samples. The next phase of exploration is being planned and could start in the second quarter of 2019.
Auxico Resources Canada Inc (AUAG) has signed a deal that could enable it to earn a 70% interest in a joint venture that owns the Palha tantalum property in northern Brazil.
AIM (February 2019 AIM Journal available here)
DP Poland (DPP) is running short of cash and is more than doubling its share capital through a heavily discounted placing raising £5.3m at 6p a share, with the possibility of an additional £500,000. The Domino’s Pizza franchisee for Poland has found competition is getting tougher and growth has slowed. The cash is required to cover losses and open more outlets. Peter Shaw is stepping down as chief executive at the end of June, nearly a decade after founding the business.
Ticketing and queueing technology provider Accesso Technology (ACSO) is reviewing its investment priorities although it says that 2018 figures should be broadly in line with expectations. These will be published on 27 March. A deal fell through and this cost $1.7m. Tom Burnet is moving from executive chairman to a non-exec role. The share price is less than one-third of last year’s high. BlackRock has cut its stake below 5%.
Midatech Pharma (MTPH) has launched a placing and 0.318-for-one open offer to raise up to £4.75m at 3.85p a share on top of the £8m subscription by former AIM company China Medical System Holdings, which will licence products for the Chinese market. The clinical trial for cancer treatment MTD201 will cost up to £7m.
Duke Royalty (DUKE) is acquiring its UK rival Capital Step and this will double the size of the portfolio to eleven investments and diversify it in terms of sectors. There is an initial £10m cash payment and the assumption of debt of £11.65m. There is performance related consideration of up to £1.5m. The deal is immediately earnings enhancing.
Visa has increased its bid for Earthport (EPO) from 30p a share to 37p a share, which beats the Mastercard offer of 33p a share. The latest bid values Earthport at £247m.
Taptica (TAP) has launched a recommended bid for RhythmOne (RTHM) and this will create one of the largest video advertising companies in the US. The offer is 28 Taptica shares for every 33 RhythmOne shares. Taptica shareholders will own 50.1% of the enlarged group. A $15m share buyback programme is planned after the merger. Ofer Druker will become chief executive.
Polemos (PLMO) has finalised the details of its reverse takeover of Digitalbox Publishing for £10m in shares and it is also acquiring the owner of the Daily Mash satirical news website for up to £1.2m in cash and shares. The model for the Entertainment Daily website will be used to improve the performance of the Daily Mash. A placing will raise £1.02m at 14p a share. The company will change its name to Digitalbox.
Hardide (HDD) is raising £3.6m at 1.5p a share so that it can move to new premises in the UK and invest in additional equipment. The surface coatings company is experiencing increasing demand from the oil and gas sector and there is potential for orders from aerospace companies. It will take two years to fully equip and move into the new facility. Hardide also intends to consolidate 40 shares into one new share.
finnCap has raised its forecasts for Tracsis (TRCS) following recent acquisitions. There is a 3% increase in earnings per share for this year and an 11% rise to 30.5p next year.
Stride Gaming (STR) has traded in line with previously downgraded expectations. Cost cutting continues to cover higher regulatory and tax costs. The online gaming operator will report a lower profit in 2018 and it is set to fall again in 2019. Net cash was £22.1m at the end of 2018.
Bowmark Capital has offered 110p a share for Tax Systems (TAX) and discussions continue. Tax Systems reduced net debt from £20.5m to £13.9m by the end of 2018. Pre-tax profit of £5.8m is forecast for 2018.
Victoria (VCP) has sold surplus land in Kidderminster for £2m. The land was in the books for £100,000 but it has obtained planning consent for housing.
Starcom (STAR) has renegotiated its agreement with Xplosive in South Africa, having originally announced it in October 2017. Xplosive has signed a 36-month agreement to pay a monthly fee for each of the Kylos units supplied for the monitoring of cattle. The fees are higher in the first six months and then reduce. The agreement should be worth $500,000.
Strix Group (KETL) has offered to acquire most of the assets of HaloSource (HAL) for $1.3m. Strix has provided working capital of $100,000. Due diligence is being carried out on the water filtration technology and if the deal goes through the cash will pay creditors, but there will be nothing for shareholders.
Prospex Oil and Gas (PXOG) has announced that the Selva gas field in northern Italy has net 2P reserves of 13.3bcf and there are 2.26bcf attributable to Prospex, which has a 17% stake. Selva could start production in 2020 at a rate of up to 150,000 cubic metres/day.
Tau Capital (TAU) plans to raise cash via a placing through Peterhouse and then a capital distribution will be made to all shareholders. This will enable Tau to seek an acquisition. It has until 18 April to secure a deal or trading in the shares will be suspended. Armstrong Investments has increased its stake from 11.7% to 15.7%.
Evgen Pharma (EVG) says that the SFX-01 clinical trial for subarachnoid haemorrhage is on course having completed recruitment and the primary endpoints should be available in the second quarter. Partners Investment Company has acquired at 3.15% stake.
Sports Direct International (SPD) made a £15m offer to buy Patisserie Valerie from the administrator, but this was not deemed enough. Even a higher selling price won’t provide anything for Patisserie Holdings shareholders.
MAIN MARKET
Solicitor DWF plans to raise £75m via a March flotation an some of the cash will repay members’ capital contributions as well as invest in the business. Existing shareholders will also sell shares and partners’ remaining stakes will be locked up until April 2024.
Two former AIM-quoted companies are coming together to join the standard list. Daniel Stewart Securities, which is closing its broking business, is making an offer for Atlantic Carbon, which was previously known as Atlantic Coal, where Adam Wilson, who has had connections with Daniel Stewart, is executive chairman. Singapore-based backer Epsilon Investments refused to put more money into the broker and that is why it is closing. Epsilon holds a majority stake in Hyde Park Holdings, which owns broker Novum Securities. Last October, SeeThruEquity research suggested that Atlantic had an equity value of $86.8m and $68m of debt. In 2017, Atlantic was the largest producer of anthracite in the US with a market share of one-third based on 1.18 million tonnes produced. Atlantic is expected to have moved into profit in 2018, although it did generate cash from operations in 2017. The owners of more than 50% of Atlantic shares have agreed to accept the bid of 1.5587 shares for each Atlantic share.
Thalassa Holdings (THAL) is offering 14.64p a share in cash and 0.26 of a share for each share in The Local Shopping REIT. Thalassa already owns 25.5% of the bid target, which is valued at 32.8p a share. The bid is an alternative to the winding up of The Local Shopping REIT.
Blockchain Worldwide (BLOC) is no longer acquiring blockchain technology developer Chorum Group because of political uncertainty affecting the UK equity markets. Former Avanti Communications boss David Williams is the director of Chorum. Blockchain Worldwide has more than £1m in the bank and is also looking at other technology sectors for acquisitions.
Drilling of the Colter appraisal well in Dorset has commenced and United Oil and Gas (UOG) has a 10% interest. The drilling should take three weeks. The Selva gas field in Italy has net 2P reserves of 2.7bcf attributable to United, which has a 20% stake. Selva could start production in 2020. United intends to move to AIM.
Oil and gas producer Zenith Energy (ZEN) has raised £607,000 in Canada and the UK at C$0.05 a share and 3p a share respectively.
Motor finance provider S and U (SUS) has confirmed that its figures for the year to January 2019 will be in line with expectations. The Aspen property bridging loan business had a loan book of £18m at the end of January 2019. Cautious lending criteria means that new business has slowed in recent months and this has led to a 5% 2019-20 earnings downgrade to 230.1p a share.
BATM (BVC) has won a $3.2m cyber security contract and this takes contracted revenues from this government customer to more than $10m. The latest contract will be delivered this year.
Chesterfield Resources (CHF) is expanding its exploration programme in Cyprus. Initial drilling in an area near historic mining has shown gold, copper and zinc mineralisation. Chesterfield is also applying for licences to extend its licence area.
Dev Clever (DEV) has launched pay per play multi-player, virtual reality game Vanguard: Fight for Rudiarius in Harlow shopping centre. The game will be rolled out to other UK sites.
Bluebird Merchant (BMV) has applied for a grant to help finance drilling at the Kochang project in South Korea and there should be news by the end of the month. There has also been a permit application to develop Kochang.
Andrew Hore