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Andrew Hore – Quoted Micro 22 February 2021

AQUIS STOCK EXCHANGE

British Honey Company (BHC) is acquiring Union Distillers for an initial £8m in cash and shares. Leicestershire-based Union Distillers has been trading for more than eight years and has its own still and bonded warehouse. There is a range of gins, vodkas, a spiced rum, an absinthe and an espresso vodka liqueur under the Two Birds brand. There could be up to £2m of earn-out consideration payable in cash and shares depending on the target revenues from the Union products. A share issue raised £4.59m at 110p a share, while a convertible loan note issue added a further £1.63m. Union has £250,000 in cash. The deal should be earnings enhancing and cash generative. In the year to September 2020, Union generated revenues of £4.94m and pre-tax profit £1.13m. NAV was £1.52m.

National Milk Records (NMRP) reported flat interim revenues of £10.8m, but pre-tax profit increased by one-quarter to £500,000. Net debt was reduced to £1.1m despite investment in a genomics lab. An unchanged dividend of 1.25p a share will be paid. The outlook is positive for the dairy sector with UK milk prices expected to be maintained at current levels. Finance director Mark Frankcom has bought 9,974 shares at 101.75p each.

Imperial X (IMPP) is making four acquisitions and continues to move towards a standard listing. The purchases involve the issue of 245.6 million shares. Cloudbreak Discovery Corp, Howson Ventures Inc and Cabox Gold Corp are all being acquired, and certain assets of Anglo African Minerals are being bought. Imperial X has a £10m drawdown agreement with Crescita Capital. This lasts for three years.

Upper Thames Holdings (UPPT) is not going ahead with the proposed acquisition of Sweden-based mobile camera systems technology company Ridercam. Instead, the focus will be on blockchain and the linking of conventional currencies with cryptocurrencies. A placing has raised £516,000 at 1p a share. Peterhouse has been appointed as corporate adviser.

Hydro Hotel Eastbourne (HYDP) fell into loss last year as revenues slumped by two-fifths. The hotel has been closed or under restrictions for the period since the year end in October 2020. There is £1.03m in the bank and the NAV is £3.3m.

S-Ventures (SVEN) has bought a 75.1% stake in Ohso Chocolate for £295,000 in shares at 9p each. The remaining 24.9% stake in Ohso could be sold for nearly 1.1 million shares. Ohso is a probiotic chocolate supplier and it generated revenues of £311,000 during 2020. The S-Ventures chief executive and finance director owned 50.6% in Ohso.

World High Life (LIFE) is changing its name to Love Hemp. A general meeting will be held on 11 March. In the first half, revenues were £2.36m and second quarter revenues were nearly double those in the first quarter, although the gross margin fell. A debt of £2.15m has been settled by the issue of 86.1 million shares.

Sativa Wellness Inc (SWEL) has submitted a novel food application for validation by the Food Standards Agency. This covers a range of CBD products.

Wishbone Gold (WSBN) has identified new gold targets at the Red Setter project in Western Australia. The magnetic survey has discovered targets that are shallower than previously.

Ananda Investments (ANA) has raised £300,000 from two investors. This will finance the first phase of the medicinal cannabis growing facility in Lincolnshire. Vulcan Industries (VULC) has raised a further £330,000 at 4p a share.

AIM

Avacta (AVCT) is starting its first clinical study. This is a phase I study for AVA6000, developed from the pre|CISION platform. This is a treatment for solid tumours, including those for bladder, pancreatic, colorectal and breast cancer. The trial will assess safety and dosage levels. Early data could be published before the end of the year.

Transense Technologies (TRT) should move into profit next year as it receives a full year of royalties following the sale of the iTrack business to Bridgestone. In the year to June 2020, there was a £1.3m loss and this year there could be a much-reduced loss this year. Once Bridgestone has built up iTrack sales the royalties will cover group overheads. This will enable Transense to invest in its surface acoustic wave technology and Translogik tyre probes. A 2021-22 pre-tax profit of £357,000 is forecast.

Strong underlying growth in the mobile division helped Blannco Technology (BLTG) to maintain interim revenues at £17.4m. The previous year included £1.4m of one-off contract income. The fastest growth is in Asia Pacific. The prospects for data erasure operations are good and new partners have been signed up. Data erasure is particularly important while remote working is a major factor in companies.

Chamberlin (CMH) is getting a cash injection from Trevor Brown. The £200,000 loan will, subject to shareholder approval, be converted into shares at 6p each and Brown will have a 29.5% stake. The Scunthorpe foundry is busy and profitable, but management is still trying to win work for the Walsall foundry.

Duke Royalty (DUKE) has secured a new client involved in steel fabrication. There is a £6.2m royalty financing agreement with Meteor HoldCo, which makes steel street lighting and guardrail products.

Telecoms testing systems supplier Calnex Solutions (CLX) says some revenues appear to have been brought forward into 2020-21 and therefore the full year revenues and profit will be ahead of expectations.

Trans-Siberian Gold (TSG) has published details of the Rodnikova project scoping study, which suggests a potential 14-year life for the project. The JORC resource is 6.3Mt at an average grade of 5g/t gold. Post tax NPV10 is $177.6m – based on $1,600/ounce gold price.

MAIN MARKET

Israel-based cannabis-based products supplier Kanabo Research has completed its reversal into standard list shell Spinnaker Opportunities to form Kanabo Group (KNB) two years after the deal was announced. The value of the deal was £15m in shares and the company also raised £6m at a share price of 6.5p. Kanabo was valued at £23.4m when it was admitted to trading. The share price has risen to 31p – having at one point reached 50.75p – and that values Kanabo at £111.7m. One of the investors in Kanabo is AIM-quoted Vela Technologies (VELA) and it invested £150,000 at 6.5p a share.

MGC Pharmaceuticals (MXC) has expanded its research programme into the use of cannabinoids to treat aggressive glioblastoma brain cancer. The expanded study includes the use of a nanoparticle delivery system. MGC has also secured a three-year distribution agreement with Swiss PharmaCan for its product ArtemiC Rescue as a food supplement. The minimum order quantity is 40,000 units per quarter, which has a retail value of $3.4m.

Path Investments (PATH) is not going ahead with the purchase of DT Ultravert from two vendors including Zoetic International (ZOE) following concerns during the preparation of the potential prospectus. Path has raised £3.5m at 0.25p a share.

Rare earths explorer Pensana (PRE) is dropping its listing on the ASX.

Papillon Holdings (PPHP) has submitted a prospectus to the FCA for the proposed reverse takeover of the Kilimapesa gold project.

Andrew Hore

Andrew Hore – Quoted Micro 11 January 2021

AQUIS STOCK EXCHANGE

Standard list shell Baskerville Capital (BASK) plans to switch its quotation to the Access segment of the Aquis Stock Exchange. This move will happen at the time of the reverse takeover of Oberon Investments, the owner of fund manager MD Barnard. The transfer to the Access segment is expected to happen on 5 February, although this depends on completion of the deal.

Walls and Futures REIT (WAFR) increased its NAV to £3.96m at the end of September 2020. The Southfields property has been sold for £660,000, which was a small discount to the previous book value. The remaining residential property will be sold in the next few months. The company will then concentrate on specialist supported housing.

KR1 (KR1) has sold its remaining holding of FunFair tokens for an average price of 2.0207 cents each. That raised $1.28m, which is more than treble the cost.

Wishbone Gold (WSBN) expects the analysis of the aerial magnetic survey of the Red Setter project in Western Australia will be available before the end of the first quarter of 2021.

All Star Minerals (ASMO) continues to review opportunities in the mining sector in Africa. The deal is likely to be funded by a share issue, but more cash will be required.

Arbuthnot Banking (ARBB) non-executive director Nigel boardman has increased his shareholding from 5,020 shares to 11,348 shares. Shepherd Neame (SHEP) director JB Neame has sold 4,000 shares at 690p each and bought back 2,000 shares at 691.5p for an ISA.

Vulcan Industries (VULC) has raised £150,000 in share issues at 5p a share and 5.5p a share. TruSpine Technologies (TSP) is still waiting to receive £250,000 from Evrensel Capital Partners.

Peel Hunt has been approved as an AQSE corporate adviser.

AIM

Capital equipment manufacturer Mpac (MPAC) did better than expected last year although pre-tax profit is still likely to decline from £7.5m to £6.2m. net cash is £5m following the payment of £10m for Switchback last autumn. The order book is worth more than £55m, compared to 2020 revenues of £83m. The focus on healthcare and pharma has helped Mpac.

Judges Scientific (JDG) had a strong second half in 2020 and this has led WH Ireland to increase its 2020 pre-tax profit forecast from £12.1m to £13.5m. The 2021 figure has been maintained at £15.1m. Full year results will be announced on 23 March.

Fashion retailer Joules (JOUL) offset weak high street sales prior to Christmas with strong growth in online sales. Even so, continued uncertainty means that Peel Hunt has reduced its 2020-21 pre-tax profit forecast from £5.4m to £3.5m. Net cash is £13m.

Motor dealer Cambria Automobiles (CAMB) says trading the three months to November 2020 was ahead of the same period last year even though the market remains uncertain.

Wealth management firm Mattioli Woods (MTW) had more than £10bn of client assets by the end of November 2020. Gross discretionary assets under management are £2.9bn. Management is still seeking acquisition opportunities and there is £18m of cash in the bank.

Creo Medical (CREO) has received 510(k) clearance from the FDA for its MicroBlate soft tissue ablation devices. This broadens the range of products with approvals.

AssetCo (ASTO) has acquired a 2.9% stake in investment manager River and Mercantile at 186p a share. This cost £4.7m. There is still around £26m in cash available since the payment from Grant Thornton and after the tender offer to shareholders.

Avingtrans (AVG) is merging its two medical equipment businesses with Australia-based MRI technology developer Magnetica and it will own 59% of the enlarged business after also injecting A$600,000. A further £3.2m investment could increase the stake to 61.2%. The combined business is loss-making but the increased scale will help it to move towards profitability.

Telit Communications (TCM) has ended bid discussions with u-blox, although the potential bidder is still interested in making an offer. An all-share bid of 250p a share was indicated.

Tekmar (TGP) has secured a contract to design and manufacture subsea scour protection for a quay development project, which is worth more than £4m. That will be recognised in this financial year.

IntegraFin has decided not to bid for Nucleus Financial Group (NUC), which increased assets under administration by 8% to £17.4bn in the three months to December 2020. Inflows of funds increased, and outflows fell.

Eqtec (EQT) has signed a memorandum of understanding with Greece-based Nobilis Pro Energy, which will enable Eqtec to be involved in its partner’s pipeline of gasification projects opportunities in Thessalia and central Greece. A joint venture will be formalised.

MAIN MARKET

One Heritage Group (OHG) has acquired a site on Bank Street, Sheffield for £880,000. The final development cost is expected to be £2.9m and gross development value should be £3.6m. The residential developer says that its Burnley development will not be completed until later in the first quarter. Construction of the Waterloo Place development in Salford should commence in the second quarter.

Argo Blockchain (ARB) mined 96 Bitcoin during December. The increase in the bitcoin price means that these are valued at £1.63m. Argo holds 209 Bitcoin. The sharp rise in the share price has led to the exercising of warrants and options. This has raised £1.63m.

Tirupati Graphite (TGR) is on track to commission the Vatomina graphite project in the second quarter and build production to 6,000tpa. Tirupati raised £6m at 45p a share when it floated at the end of last year and the share price has risen to 83p.

Rainbow Rare Earths (RBW) has completed its drilling programme at the Phalaborwa rare earths project under budget and the results are expected before the end of the first quarter.

Pembridge Resources (PERE) has raised £570,000 at 4p each and this should be enough cash to take the company into next year.

Andrew Hore

Andrew Hore – Quoted Micro 14 December 2020

AQUIS STOCK EXCHANGE

Incanthera (INC) says that study results for Sol, a sun cream that prevents skin cancer, have been better than expected. There is significantly greater dermal delivery by Sol compared with four rival products and it was found to be a non-irritant. The cream exceeds bioequivalence compared with oral treatments. A new patent is being filed which will extend the protection until 2041. Incanthera had £433,000 in the bank at the end of September 2020 and outgoings are low. The cash will last well into 2021 Incanthera is seeking a partner to license Sol and launch the product, which could lead to an upfront payment. Incanthera has already licensed potential cancer treatment EP0015 to Ellipses Pharma. There are other earlier stage treatments being developed, including Duo-C, which is a potential treatment for bladder cancer.

Arbuthnot Banking (ARBB) is acquiring vehicle finance provider Asset Alliance, which specialises in coaches and trucks, for £4.1m. Arbuthnot can use its own deposit base to provide finance for the acquisition, which should be earnings enhancing in 2021.

In the year to May 2020, mechanical and engineering services provider Fuel Systems Designs Holdings (FSD) reported a decline in pre-tax profit from £553,000 to £354,000 and a fall in revenues from £21.8m to £19.8m. The decline in revenues came from the power generation division, while water and sewerage revenues were slightly higher. Cash in the bank has improved from £4.8m to £5.96m.

SulNOX (SNOX) has signed a collaboration agreement with Ghana-based Rigworld, which will market the company’s fuel conditioner and heavy fuel emulsifier products in Africa. Rigworld has identified the mining sector as an initial opportunity.

Chris Akers has taken a 4.08% stake in Gunsynd (GUN). Investee company Rincon Resources has had its ASX listing delayed. Pacific Nickel, formerly Malachite, has raised $3.8m for the exploration of nickel projects in the Solomon Islands.

World High Life (LIFE) generated revenues of £1.69m in the year to June 2020. Impairment goodwill of £7.4m increased the full year loss to £12.7m. Management continues to seek further CBD investment opportunities.

Rutherford Health (RUTH) has launched new membership scheme Rutherford Direct. The healthcare plan focuses on cancer cover and provides the cost of treatment and care for people diagnosed with cancer.

Wishbone Gold (WSBN) has raised £1.75m at 10p a share in order to finance exploration at the Red Setter project in Western Australia. There will also be additional exploration in Queensland.

Coinsilium Group Ltd (COIN) has signed an agreement with Vietnam-based RedFOX Labs, which will lead to the development of a range of virtual asset and digital collectible marketplaces. It will also cover the trading of non-fungible tokens.

Cairn has been replaced Turner Pope as broker to Primorus Investments (PRIM) as well as nominated adviser. Primorus is leaving Aquis Stock Exchange on 24 December as part of cost saving measures.

AIM

IMImobile (IMO) has agreed a 595p a share bid from Cisco Systems, which values the communications services company at £543m. This is a good add-on service for Cisco.

ULS Technology (ULS) has sold its CAL subsidiary for £27m, so that it can concentrate on its core eConceyancer platform and its digital investment. In the six months to September 2020, the group market share of purchases and sales was slightly lower but remortgage market share rose from 4.8% to 6.8%. The sale of CAL will reduce the numbers, but the mix of business should not change. ULS managed to make a small interim profit on reduced revenues.

Eqtec (EQT) has signed an agreement to acquire full ownership of the Deeside refuse derived fuel project. Eqtec is talking to the local authority and is pursuing additional planning permissions for the site so the company’s gasification technology can be used. Financing is being secured.

Access Intelligence (ACC) has raised £10m in a heavily oversubscribed placing at 80p a share. This cash will fund international expansion for its SaaS products.

Bion (BION) has entered the solar power market and it has agreed to acquire existing solar assets. The company is purchasing a 77% stake in rooftop solar panels that supply 0.95MW of electricity. The total cost will be RM6m. The assets should generate a profit of RM400,000 a year from 2021.

Housebuilder Abbey (ABBY) has recommended a 1575p a share cash offer from Gallagher Holdings for the minority stake it does not own. The Irish housebuilder is valued at £328.8m and the remaining 4.4% shareholding will cost £14.4m.

Roadside convenience retailer Applegreen (APGN) has been approached by its founders and management team with a €5.75 a share cash offer. The independent directors are considering the offer.

Iron deficiency products developer Shield Therapeutics (STX) says that discussions with potential licensees for the US rights to Accrufer will not be completed by the end of the year as had been hoped. Shield would need up to $40m to launch the treatment in the US if it did it on its own. A loan facility will help Shield to have working capital well into next year.

MAIN MARKET

S and U (SUS) says trading in its car finance and property bridging loans businesses has rebounded since the end of July. A background of higher demand and strong used car price growth means that current net receivables are £253m even though there was poor demand earlier in 2020. Third quarter collection rates were 87.5% of due payments. Aspen Bridging has higher net receivables than one year ago.

Tirupati Graphite (TGR) is set to join the standard list on Monday. It is an integrated graphite mining and processing business. Mining has commenced in Madagascar and the Indian processing facility was opened last year. There are plans to move into the graphene market. Management has decades of experience in the graphite industry.

Textile materials and chemicals company HeiQ (HEIQ) has started trading on the standard list following the reversal into Auctus Growth. A placing and subscription raised £60m at 112p a share. The share price ended the week at 118.5p.

CML Microsystems (CML) is selling its storage division so that it can concentrate on its communications division. The disposal to Swissbit will raise $49m in cash and it should be completed early in 2021. Net cash was £7.35m at the end of September 2020.

BATM (BVC) has delivered the first Celitron instrument for the recovery of protein and oils from insects.

Cyprus-focused explorer Chesterfield Resources (CHF) has raised £2.5m from a share issue at 9p, with £2.1m of the cash coming from Polymetal International.

Andrew Hore

Andrew Hore – Quoted Micro 9 November 2020

AQUIS STOCK EXCHANGE

Kent-based brewer Shepherd Neame (SHEP) lost £2.9m in the year to June 2020. There was a small operating profit, but this was swamped by interest charges. The loss excludes one-off charges of more than £9m, predominantly relating to the impairment of 26 properties and the cost of unlawful actions by an employee. Pub revenues fell due to the original lockdown period, although tenanted pubs remained profitable in the financial year. Trade was slow in July, but it started to build up prior to the latest restrictions.

SulNOx Group (SNOX) is not entering into new contracts and suspending existing contracts. Management is paying amounts owed under existing contracts and says that there will be minimal cash balances. The requisitioners of a general meeting have injected cash in order to keep the company trading and enable it to hold the general meeting on 4 December. The employment contracts of the directors have been terminated and the requisitioners want their own representatives elected to the board. Trading in the shares remains suspended.

There was a slight improvement in first quarter revenues generated by National Milk Records (NMRP) to £5.32m. The specialist services such as the testing of Johne’s disease provided the growth. Milk recording figures were 3% down. The latest lockdown should not have a significant effect on performance.

Gunsynd (GUN) has subscribed A$100,000 for a convertible in gold explorer Rincon Resources that converts at a discount to the flotation price on ASX. Rincon plans to raise at least A$5m prior a listing planned for 10 December.

GP software provider DXS International (DXSP) says that revenues are marginally up on the previous year and it remains profitable. There is around £1m in the bank. However, launches of new products have been delayed by the pandemic.

Primorus Investments (PRIM) has sold its remaining shareholding in Greatland Gold (GGP) and raised £4.6m. That means that Primorus made a total gain of around £5.9m.

Wishbone Gold (WSBN) has identified four shallow targets on its Patersons Range project in Western Australia. Wishbone intends to move to close the acquisition of its interest in the tenements.

Cadence Minerals (KDNC) has agreed in principle to a settlement with secured creditors of the Amapa project. Once this is completed, Cadence will inject $2.5m into the project and take a 20% shareholding. There has been a 21% increase in the mineral resource. The initial mine plan envisages the production of 4.7 million tonnes of iron concentrate a year and the mine life could be nearer to 17 years following the updated resource.

Coinsilium Group Ltd (COIN) expects to complete its relaunch with a new strategy before the end of the year. There will be new corporate branding and a new website.

World High Life (LIFE) has raised £381,000 at 1p a share. This cash will finance due diligence on investment opportunities.

Imperial X (IMPP) has appointed Novum Securities as corporate adviser.

European Lithium has left the Aquis Stock Exchange.

AIM

Trinidad-focused oil and gas producer Touchstone Exploration Inc (TXP) has raised £23.1m at 95p a share. The previous placing in February raised cash at 40p a share. The money will be used to fund further exploration and development of the Ortoire onshore block. Touchstone recently announced its third discovery (Chinook-1) out of three wells drilled. Chinook-1 is thought to be a similar size to Cascadura, which is estimated at around 45mmboe. The current exploration well is Cascadura Deep-1 and that will be completed and tested in the first quarter of 2021. The original discovery, Coho, will soon start producing gas.

Mkango Resources (MKA) has started a drilling and soil sampling programme at the Mchinji rutile licence area. This will help management to identify the areas with the best prospects. The licence initially lasts until 2022 but can be extended. It is next door to a rutile discovery by Sovereign Metals, which makes the chances of a commercial discovery even better. There is already significant infrastructure in the area. Rutile is a white pigment used in paints, plastic and paper. Demand is strong and reserves are declining.

PerkinElmer Inc is offering 185p a share in cash for Horizon Discovery (HZD), which is double the previous market price. The bid is equivalent to the high in the past 12 months, but below the share price three years ago. Horizon is valued at £296m. PerkinElmer is keen to increase the scale of its cell engineering business and add to its gene editing services.

Trading in the shares of NWF (NWF) has been suspended following a cyber attack on the feed and fuels divisions. The businesses continue to operate.

Attis Oil and Gas (AOGL) has agreed an amalgamation with Helium One, which will then gain an AIM quotation and raise at least £5m. Helium One is offering one of its shares for 236 shares in Attis, which values the AIM shell at £1.76m (0.012p a share). The Attis share price has risen to 0.02p. Helium One has a potential helium project in Tanzania and is valued at £6m, which is similar to level of investment put into the project. Drilling is planned early next year. Scirocco Energy (SCIR) subscribed for a 10% stake three years ago and that will probably be diluted to around 4.6%.

AB Traction has increased its stake in construction disputes company Driver (DRV) from 15.6% to 17.3%.  

Empire Metals (EEE) has achieved significant results with its drilling programme at the Eclipse gold project in Western Australia. The results confirm extensions to previously defined mineralisation. Drilling has started at the second potential target called Houdini. The proposed sale of the Bolnisi copper and gold project to TSXV-quoted Candelaria Mining Corporation means that Eclipse is currently the main focus of Empire’s cash investment.  

Nasdaq-quoted Masimo Corporation is making a 12p a share recommended cash bid for non-invasive hemodynamic monitoring technology developer LiDCO (LID). Masimo is a medical technology company.

Surgical endoscopy devices supplier Creo Medical (CREO) has acquired its distributor in Belgium. Creo has also received FDA clearance for MicroBlate Fine, which is thought to be the world’s smallest diameter microwave ablation needle.

Dekel Agri-vision (DKL) has acquired a further 14.2% in the Tiebissou cashew nut processing project in return for 28.55 million shares. This takes the stake to 52%.

Beximco Pharma (BXP) has signed a memorandum of understanding with Serum Institute of India and the Bangladesh government for the supply of 30 million doses of the Oxford University/ AstraZeneca Covid-19 vaccine. Supplies will commence one month after regulatory approval in Bangladesh. This could provide a significant uplift to revenues, although the timing is uncertain.

Toilet tissue manufacturer Accrol (ACRL) is buying rival LTC for up to £41.8m. This will take Accrol’s share of the market to 16% and provide greater geographic coverage of the UK market. LTC has revenues of £28m and is profitable. There could be cost savings of £1m a year. Accrol raised £38.5m at 44p a share to help finance the deal. A one-for-21 open offer could raise up to £4.1m.

MAIN MARKET

Zotefoams (ZTF) says that third quarter revenues were 22% higher year-on-year due to demand for protective equipment and footwear. Management expects continued growth in the fourth quarter. Net debt was £36m at the end of September 2020. The new site in Poland should commence production early next year.

Cryptocurrency miner Argo Blockchain (ARB) generated £1.2m in revenues during October. It held 137 BTC in bitcoin at the end of the month. Argo is leasing 4,500 mining machines for 24 months and they should be up and running in February. It is also managing the mining operations of 4,378 machines for a third party.

Shell company Highway Capital (HWC) had £3,000 in the bank at the end of February 2020 and it has net liabilities of £991,000. There was £327,000 in borrowings.

Andrew Hore

Andrew Hore – Quoted Micro 19 October 2020

AQUIS STOCK EXCHANGE

Arbuthnot Banking (ARBB) remains profitable and loan balances have increased by 3% to £1.6bn. Deposit balances are 14% higher at £2.23bn. Assets under management are 4% ahead.

Wine maker Chapel Down (CDGP) has produced a better quality harvest than 2018 and yields are better than expected. More wine can be released for sale next year.

A general meeting has been requisitioned at SulNOx Group (SNOX) by three shareholders. They want to remove the entire board and appoint four new directors.

KR1 (KR1) has generated just over $1m from the sale of tokens in the Polkadot project at $5.12 each. That is a small proportion of the stake and KR1 still owns more than 3.5 million tokens.

NQ Minerals (NQMI) continues to increase production at the Hellyer mine. In the third quarter lead concentrate production was 11,865 tonnes and zinc concentrate production was 4,585 tonnes. Production rates are still increasing.

Wishbone Gold (WSBN) reported a reduction in interim revenues from $6.56m to $3.64m. There was a $224,000 outflow from operations.

Altona Energy (ANR) has extended its fundraising until 11 November. The plan is to raise up to £500,000 at 6.5p a share.

Trading has been suspended in the shares of medicinal cannabis company Freyherr International (FRYR) because trading has been difficult, and the auditing of last year’s accounts has not been completed.

VI Mining (VIM) is asking shareholders to approve of the withdrawal from the Aquis Stock Exchange.

Eastinco Mining (EM.P) has published full year and interim figures. The company remains loss-making. There was £173,000 in the bank at the end of June 2020.

TechFinancials (TECH) is stopping the development of its Footies ticketing technology because of the uncertainty surrounding events. It has also ended its investment in Cedex due to lack of cash. All B2B brokerage technology activities will end at the beginning of November. New opportunities are being assessed.

AIM

Synairgen (SNG) is raising up to £87m via a placing and open offer at 175p a share. This will finance a phase III trial for SNG001 for the treatment of Covid-19. That will start before the end of the year. Results are expected in the middle of next year. Synairgen will also invest in scaling up its manufacturing.          

More good news from Touchstone Exploration (TXP) which has made another significant gas discovery in Trinidad. The Chinook-1 discovery is the third in a row. This means that Touchstone should be highly cash generative next year enabling it to fund more exploration.

LiDCO (LID) had already outlined its interim figures in a trading statement so the move into profit thanks to high monitor sales to the NHS was not a surprise. There is likely to be a second half loss, but the heart monitoring equipment supplier will still be profitable for the full year. There have been delays in winning hup recurring revenue contracts, but these revenues have reached an annual rate of £3m. There was £3.1m in the bank at the end of July 2020.

BlueRock Diamonds (BRD) increased production in the third quarter from 3,973 carats one year ago to 5,577 carats. Sales were much lower at 3,803 carats because there was one sale during the quarter. The average price realised has fallen from $432/carat to $330/carat. That was expected due to the change in mix of stones with only one high value stone sold during the period. An updated resource estimate is expected in the near future. BlueRock is hosting a shareholder conference call at 7pm on 22 October. Anyone wanting to participate should go to www.facebook.com/valuethemarkets or www.twitter.com/valuethemarkets.

SkinBioTherapeutics (SBTX) is raising money to accelerate the progress of AxisBiotix, which is involved in the development of food supplements for psoriasis treatment. This could be generating revenues in the year to June 2022. A placing at 16p a share raised £4m with up to £500,000 to come from an open offer at the same price. Some cash will be available to fund development of other microbiome-related products. This cash should last until the end of 2022.

Billing and customer relationship management software provider Cerillion (LSE:CER) says that its year-end order book is at a record level and the full year figures will be slightly better than expected.

ThinkSmart (TSL) is returning A$6.5m of cash to shareholders. There will be a 4.575 cents a share capital reduction and a 1.525 cents a share unfranked dividend. ThinkSmart has around £10m in the bank. The current exchange rate is 55p for each A$1. The distribution is worth £3.6m, so around one-third of the available cash.

Seeing Machines (SEE) is increasing its potential market by developing its driver monitoring system into vehicle occupant monitoring system. This is an additional revenue opportunity of A$350m.

Angling Direct (ANG) managed to stay profitable in the first half as online sales helped to offset the closure of retail sites in the period. The fishing products retailer has a strong balance sheet and shop sales bounced back after reopening. A pre-tax profit of £400,000 is forecast for the full year, rising to £1.5m next year.

Netcall (NET) is acquiring robotic process automation technology company Automagica in order to enhance its contact centre products. Automagica has its own technology. Netcall’s full year revenues increased from £22.9m to £25.1m, while pre-tax profit increased from £1.3m to £1.8m. Margins are improving.

MAIN MARKET

Motor dealer Lookers (LOOK) says third quarter trading was better than expected. New and used car volumes increased by 13.6% compared with the same period the previous year. Lookers has outperformed the market. Aftersales revenues were also higher. Net debt was £22.5m at the end of September 2020.  

Electronic products supplier DiscoverIE (DSCV) says that first half sales fell by 6%, but orders were ahead of sales in September. A dividend will be announced with the interims in November.

Construction and infrastructure firm nmcn (NMCN) has reviewed major contracts and this will lead to a loss this year. The main problem has been water contracts and some of the charges may relate to other periods. This follows the departure of the chief executive and finance director.

Nanoco (NANO) has a cash outflow to £300,000 a month. There is net cash of £5.2m and that should last until July 2022.  The non-cadmium quantum dots technology developer lost £4.9m in the year to July 2020.

Andrew Hore

Andrew Hore – Quoted Micro 12 October 2020

AQUIS STOCK EXCHANGE

Kent-based brewer Shepherd Neame (SHEP) has been profitable since the beginning of July when pubs were allowed to reopen. However, like-for-like sales were lower, particularly in city centres. Own brand beer volumes fell by 2%.  Net debt was £82.4m on 26 September, with deferred payments of £6.9m. 

There was a reduction in full year revenues generated by National Milk Records (NMRP) from £22.8m to £21.6m. Earnings per share halved to 4.7p.

Wishbone Gold (WSBN) has an exclusive 45-day option to acquire 100% of mineral tenements in the Patersons Range region of Western Australia. The option payment is £50,000. A dividend of 1.25p a share is proposed.

In the year to April 2020, property investor Ace Liberty and Stone (ALSP) increased revenues by 26% to £6.39m. Pre-tax profit was £9,252, including a lease breakage fee of £173,000. There were £800,000 of fair value reductions. Net cash generated by operating activities was £1.88m. Since the year end, £3.14m has been spent on properties.

British Honey Company (BHC) generated revenues of £1.04m in the five months to August 2020, with £500,000 from sanitiser. More recently alcohol sales have recovered, and sanitiser generates around 10% of sales. There was a £435,000 loss in the period because of higher admin expenses.

VI Mining (VIM) is terminating the Minaspampa and Rosario de Belen project acquisitions. Unpaid deferred consideration of $42.2m has bee cancelled. A joint venture is being discussed for other group projects.

Good Energy (GOOD) has launched the UK’s first dedicated heat pump tariff. There is no standing charge in the winter months.

European Lithium (EUR) intends to leave the Aquis Stock Exchange on 6 November.

Peterhouse has resigned as corporate adviser to Imperial X (IMPP).

Early Equity (EEQP) has raised £94,000 at 0.5p a share.

AIM

Omega Diagnostics (ODX) is involved with the initial UK-RTC order for one million Covid-19 rapid antibody tests. Omega is set to manufacture 175,000 of these tests. This is the first order and Omega plans to increase capacity to 200,000 tests per week by the beginning of November. finnCap believes each test could generate 150p and the gross margin is 50%. The current revenue forecast of £12.6m for the year to March 2021 does not include the Covid-19 tests which could generate a further £5.7m. Omega should be profitable without any contribution from the tests.

Xpediator (XPD) has acquired Yorkshire-based freight business Nidd Transport for £4.6m. The owner is retiring, and the purchase price is covered by Nidd’s cash and property assets -where there is already an agreement for a sale and leaseback. The deal is earnings enhancing. The logistics business does not have a significant presence in northern England and there will be cross-selling opportunities with other parts of the business. Nidd also has operations in France, Spain and Portugal. In the year to April 2020, Nidd made and operating profit of £500,000 on revenues of £11m. 

Hormonal disease treatments developer Diurnal (DNL) has raised £7.5m after expenses at 60p a share and there is an open offer to raise up to £2m.

Plutus PowerGen (PPG) plans to demerge its generation assets and become a cash shell. A placing at 0.02p a share will raise £490,000 after expenses and this will pay money owed to directors and provide working capital. Debt of £266,000 will be capitalised. Plutus tried to sell its co-investee assets but there was no buyer found. Plutus Energy is being demerged and there are plans to demerge the Plutus energy investment portfolio, but this is currently being blocked by Rockpool.  

Vanadium flow batteries developer Invinity Energy Systems (IES) is involved in four energy storage products funded by the California Energy Commission. These total 7.8MWh of batteries and they should be delivered next year. Commercial terms are still be agreed with partners. This follows a £1.1m order during June.

Dekel Agri-Vision (DKL) increased third quarter crude palm oil produced by 10% to 5,280MT, thanks to a higher extraction rate. The cashew nut processing plant should still be commissioned next spring.

Caledonia Mining (CMCL) has increased 2020 guidance following third quarter figures showing gold production of 15,200 ounces and nine-month production of 42,900 ounces. Full year guidance is between 55,000 and 58,000 ounces. Caledonia has secured an agreement with the Zimbabwe government that will enable it to assess other gold projects. A solar plant is being built that will provide 27% of the electricity needs of the Blanket mine.

MAIN MARKET

Fintech firm Mode Global Holdings (MODE) joined the standard list on 5 October. Mode raised £7.5m in a placing at 50p a share. Trading commenced. The share price has fallen back to 48.5p. The cash will help to finance the launch of a payments service powered by Open Banking that would replace the need for cards.

Ingredients supplier Treatt (TET) had net cash of £1m at the end of September 2020 and it intends to pay a final dividend. Pre-tax profit of £14m is in line with pre-Covid-19 expectations. Health and wellness revenues grew by 16%, although total revenues fell by  3% due to the lower orange oil prices.

Argo Blockchain (ARB) plans to acquire the two data centres in Quebec housing its cryptocurrency mining equipment that are owned by GPU.one. September mining revenues were £1.1m.

BATM (BVC) has secured an initial order for its Covid-19 Real-Time PCR diagnostic test kits and they will be delivered in the fourth quarter.

Andrew Hore

Andrew Hore – Quoted Micro 24 August 2020

AQUIS STOCK EXCHANGE

Medical device developer TruSpine Technologies (TSP) ended the week at 34.5p (32p/37p). TruSpine has raised £1.4m at 36p a share with a commitment for a further £250,000. This should provide enough cash until Cervi-Lok, which is one of the three spinal stabilisation devices being developed, starts to generate sales.

Coinsilium Group Ltd (COIN) says that its joint venture with IOV Labs has signed a deal with RedFOX Labs to build fast scaling internet business on the RSK blockchain. Coinsilium has also secured an adviser role to Indorse for a forthcoming initiative to revive the token economics of its IND token through a decentralised finance model. The value of Coinsilium’s cryptocurrency holdings is $575,000, with further tokens worth $105,000 set to vest over the next 12 months.  

KR1 (KR1) has started to generate revenues from staking activities on the Polkadot network, which is KR1’s largest investment. So far, 530.67 DOT have been generated and this has raised $194,802.

Cadence Minerals (KDNC) is raising £1.25m at 12p a share. This will provide working capital and help to pay back loan notes, which are currently valued at £1.7m.

Wishbone Gold (WSBN) is raising £400,000 at 2p a share. Gold exploration is commencing at the Wishbone II project in Queensland. Exploration will also restart at the White Mountains project.

Gunsynd (GUN) owns 4.97 million shares in nickel project developer Sunshine Minerals, which is being acquired by Malachite Resources. Gunsynd will receive 1.26 million shares in Malachite with further deferred consideration of 1.64 million shares.

NQ Minerals (NQMI) has released positive news from surface stockpiles at the Beaconsfield gold mine. The average grade is 3.2g/tonne in 80,000 tonnes of surveyed stockpiles.

World High Life (LIFE) is increasing production capacity by 400%. The new Love Hemp facility will produce 43,000 units of CBD oils, capsules and cosmetics each day. July sales were 57% higher than in June with much higher online sales.

Belvedere Leisure (BELV) has agreed a new strategy with Landal GreenParks UK, which involves delivering lodges for domestic tourism and staycations. The company is in negotiations to acquire the Barncrosh site in Scotland and the company is seeking other sites. Belvedere Leisure Park has been placed in administration and will no longer guarantee the company bonds.

Ian Harebottle and Richard Lloyd have been appointed as directors of All Star Minerals (ASMO).

Capital for Colleagues (CFCP) chief executive Alistair Currie bought 86,419 shares at 25p each and 13,581 at 29.5p each. He has a 3.28% stake.

AIM

Online fashion retailer Sosandar (SOS) doubled its revenues last year. In the year to March 2020, revenues jumped from £4.44m to £9.03m, while the loss more than doubled from £3.55m to £7.81m. First quarter revenues were 54% higher and the lower marketing costs helped to reduce operating costs by 71%. July revenues were 57% higher than the same time last year. Gross margins have improved. There was still £4.4m in cash at the end of June 2020.

Marshall Motor Holdings (MMH) lost £8.9m in the first half of 2020. That is not surprising given that the car showrooms were shut for ten weeks. A small loss is expected for the full year, although this will depend on September demand. Vertu Motors (VTU) says that it lost £5.2m in the March to June period, but made a pre-tax profit of £7.4m in July. Used vehicle sales made a record gross profit last month with volume growth of 13.7%.

Ceramic products manufacturer Churchill China (CHH) managed to make a small profit before exceptional items. Revenues slumped from £31.9m to £18.9m with a strong start to the year offset by COVID-19 in the second quarter. The majority of sales were of hospitality products. Cash improved to £16.3m thanks to the fact that there was no final dividend last year. A potential interim dividend will be reviewed in December when the fourth quarter trading is clearer.

Elypsis Solutions has sold a 3.4% stake in Adamas Finance Asia (ADAM) to Heirloom Investment Management, leaving it with 53.6%. The Adamas share buyback programme is still active. NAV was 75p a share at the end of June 2020, compared to a share price of 26.5p.

Oil and gas producer Hurricane Energy (HUR) admits that it is likely to materially downgrade the resource estimate for the Lancaster early production system and the West of Shetland portfolio of assets. Production is expected to decline from the current 17,000 barrels of oil per day.

Synthetic heavy fuel developer Quadrise Fuels International (QFI) will receive $150,000 for equipment and support supplied to Greenfield Energy for a commercial trial, which will be completed by the end of the year.

Renalytix AI (RENX) has announced a collaboration with AstraZeneca for the use of the KidneyIntelX technology in other chronic diseases.  

EKF Diagnostics (EKF) has made a $5m investment in Trellus Health in return for a 31% stake. Trellus has licenced a platform for the management of inflammatory bowel disease.

Cyber security services provider Shearwater Group (SWG) says positive momentum is continuing. An underlying EBITDA is being made due to higher margin products and efficiencies. There is £4.1m in the bank.

MAIN MARKET

Motor dealer Lookers (LOOK) still has not published its 2019 accounts. Further work is required on the corporate leasing division and vehicle financing arrangements. Net debt was £13.5m at the end of June 2020, helped by delayed government payments. There was a significant first half loss in 2020.

OKYO Pharma (OKYO) is seeking a Nasdaq listing. It has raised £1.44m through additional convertible loan notes to finance clinical development.

BATM (BVC) is on course to increase full year underlying pre-tax profit from $5.2m to $8.8m on a revenues one-third higher. There was cash of $44.3m at the end of June 2020. A resumption of dividend payments is promised at the end of the year. The bio-medical division increased interim revenues by two-thirds to $50m and improved its gross margin. Demand for COVID-19 diagnostic kits remains strong. The networking division improved interim revenues by 3% to $27.4m.

LED lighting and wiring accessories supplier Luceco (LUCE) has upgraded its 2020 underlying operating profit guidance from £18m to at least £23m, helped by improved gross margins. Adjusted earnings per share are expected to be at least 11p a share. The interims will be published on 8 September.

Challenger Acquisitions (CHAL) has entered into a letter of intent to acquire Cindrigo and Cindrigo Energy, which are involved in waste-to-energy and biomass energy projects.

Metal Tiger (MTR) wants to obtain an Australian Stock Exchange listing before the end of the year.

Andrew Hore

Andrew Hore – Quoted Micro 6 July 2020

AQUIS STOCK EXCHANGE

Rutherford Health (RUTH) has secured a diagnostics agreement with Somerset NHS Foundation Trust that is worth £19.1m over ten years, although it is initially for five years. Rutherford will supply imaging services from a facility in Taunton, which will be developed in partnership with Equitix. The service should start in the second half of 2021.

Good Energy (GOOD) says that it remains profitable, although smaller business energy demand was lower in the second quarter. Gross margins have been hit because excess energy had to be resold. Operational efficiencies have offset some of this effect. Cash collection has been strong. Four-fifths of customers have been transferred to the Kraken customer services system. This will help to reduce costs.

Shepherd Neame (SHEP) has negotiated additional bank facilities. Total debt facilities are £132.5m. The brewery has been generating income from increased sales to supermarkets and for export. The majority of the company’s pubs should reopen by the end of July.

Cannabis-focused investment company Greencare Capital (GRE) has raised £1.37m at 50p a share. That is double the original flotation price. Management is hopeful that it will make an initial investment in its favoured acquisition target in the near future.

NQ Minerals (NQMI) says that plant production levels at the Hellyer gold mine increased by 44% to more than 1.3 mtpa. NQ has completed the acquisition of the Beaconsfield gold mine in Tasmania.

British Honey Company (BHC) says sanitiser sales have enabled the company to achieve sales of 240% of budget in the past three months. BHC has swapped 4.5% of its shares for a 10% stake in List Distillery LLC. BHC has an option to buy the rest of the company for £4.5m plus up to £500,000 in contingent consideration.

Capital for Colleagues (CFCP) had an NAV of £7.55m (48.9p a share) at the end of February 2020.

Tectonic Gold (TTAU) has changed its corporate adviser from Peterhouse to VSA. Tectonic has published full year figures to June 2019 and interims to December 2019. NAV was £2.49m at the end of 2019.

Wishbone Gold (WSBN) generated sales of $3.64m of sales in the first quarter of 2020, compared with $3.85m in the same period last year. In 2019, revenues were $10.7m.

Human Brands is selling some of its brands, including Shinju Whisky, to Rogue Baron in return for shares and Gunsynd (GUN) will have its £379,000 convertible loan note novated to Rogue Baron, which has been granted EIS advanced reassurance. Rogue Baron plans to float on a UK market and this could trigger the issue of further shares to Gunsynd.

First Sentinel (FSEN) has supplied a £300,000 loan facility to Vox Markets. This is convertible into shares. So far, £250,000 has been advanced. Loan facilities totalling £500,000 have been provided to Ridercam Systems. A £130,000 investment has been made for a 7.4% stake in investment company Malaika. The company’s Australian subsidiary has provided a loan facility to energy producer Direct Energy Holdings.

Ecovista (EVTP) was withdrawn from the AQSE on 1 July. The day after it published interim figures to February 2020. There was £42,000 in cash and this should cover general running expenses. Management says that being quoted cost £60,000 a year. NAV is £735,000.

Formerly known as Welney, Quetzal Capital (WENP) has been readmitted to the market following a share consolidation of 100 existing shares into one new share and placing raising £22,000.

AIM

Cambridge Cognition (COG) continues to win new contracts and the first half order intake was £4.9m. The digital health business has increased its contracted order book to £7.5m. The company is on course to make a much lower loss in 2020.

Construction disputes and expert witness services provider Driver (DRV) improved its profit in the first half thanks to a good performance from its Asia Pacific businesses. However, the Middle East is still a problem and a strategic review is underway. Net cash was £3.3m at the end of March 2020 and it has increased since then. There is no dividend. The second half will be tougher, though.

Forex provider Equals (EQLS) continues its strong growth record in 2019. Trading levels were hit by the COVID-19 lockdown in April and May, but June’s revenues per day recovered to a similar level to June 2019. The administration of Wirecard has had limited effect on business.

AFC Energy (AFC) is raising £31.6m at 16p a share. This will be used to invest in manufacturing for the H-Power fuel cell systems and employing additional staff for the deployment of the technology in the electric vehicle and construction markets. There will also be cash put into the development of the AlkaMem anion exchange membrane and the HydroX-Cell solid-state membrane fuel cell system.

Telecoms equipment supplier Filtronic (FTC) says it grew revenues from continuing operations in the year to May 2020 and it made a small underlying profit. Delays to deliveries mean that it is difficult to assess the outcome for the current financial year.

Redx Pharma (REDX) is raising $29m through a convertible loan note issue to Redmile and Sofinnova Partners and £812,000 via a share issue to Sofinnova.

Robinson (RBN) is paying an interim dividend of 3.5p a share. The packaging supplier did not pay a final dividend and the interim will be payable on 30 July to make up for that. First half trading was in line with expectations. Full year pre-tax profit is expected to be flat at £2.3m.

MAIN MARKET

Trading in Lookers (LOOK) shares has been suspended because it has not published 2019 results. They should be published in August. An investigation by Grant Thornton suggests that there will be a £4m non-cash write-off relating to fraud with a further £15m non-cash write-off for incorrect or inconsistent accounting, mainly relating to stock.

Andrew Hore

Andrew Hore – Quoted Micro 8 June 2020

AQUIS STOCK EXCHANGE

Sativa Group (SATI) has agreed a merger with Stillcana Inc. The share swap is 0.33507 of a Stillcanna share for every Sativa share. That values the cannabis products company at £10.7m and its shareholders will own 65% of the enlarged group. Trading in Sativa shares restarted on 4 June.

Engineering businesses consolidator Vulcan Industries (VULC) floated on 1 June. It was valued at £6.98m at the 3p a share placing price. Vulcan raised £746,500 via a subscription and placing and £239,000 will be spent on costs. . Vulcan has already completed four acquisitions. They supply automotive components, fire doors and frames, nails and architectural metal work. Trading was weaker than expected last year. Zanete Fergusone sold three businesses to Vulcan and her family interests own 47.7% of the company. A manufacturer of pressed steel bearing housings is set to be the next acquisition.

Adnams (ADB) has put its refinancing negotiations on hold since the COVID-19 lockdown. The long-term facilities have been extended by six months. Adnams is considering the government loan scheme. There will be a substantial interim loss.

IFA group AFH Financial (AFHP) believes that £3m of temporary annualised cost savings will help to offset a decline in gross revenues this year. Interim revenues were 5% ahead at £38.2m but pre-tax profit was flat due to higher interest costs. The interim dividend is 5p a share, instead of the anticipated 7p a share. A further 2p a share may be paid later in the year depending on the prospects at the time. Underlying full year pre-tax profit should improve from £16.9m to £18m, which is a small downgrade on previous forecasts.

Good Energy (GOOD) has seen no significant financial impact from COVID-19. Cash collection has been in line with previous years. The generation assets have produced above average output. The final dividend has been deferred.

Altona Energy (ANR) is assessing the potential acquisition of a majority stake in a rare earths project. The Chambe project is in Southern Malawi. Due diligence will take up to three months.

Tectonic Gold (TTAU) has sold a majority interest in Tectonic South Africa to AIM-quoted Kazera Global. Tectonic will retain a 10% interest in the diamonds project. Tectonic has received £100,000.

Investment company Gledhow Investments (GDH) increased net assets from £735,000 to £907,000 by March 2020. Gledhow had £147,000 in cash at the end of March.

Welney (WENP) has published full year and interim figures. At the end of December 2019, net liabilities were £361,000. A consolidation of 100 shares into one new share will be followed by a £15,000 placing at 0.3p a share. A loan stock issue will raise £35,000. Trading in the shares restarted on 3 June. Keith, Bayley, Rogers has been appointed as corporate adviser. The company’s name will be changed to Quetzal Capital

Black Sea Property (BSP) is renegotiating its credit facilities. Management is uncertain how trading will fair this year.

Lombard Capital (LCAP) is changing its accounting reference date from 31 March to 30 June. Barry Fromson has been appointed as an executive director.

Wishbone Gold (WSBN) has raised £300,000 at 1.35p a share and issued £70,000 worth of share for fees and to convert loans. Peterhouse has replaced Turner Pope as broker.

AIM

Mereo Biopharma (MPH) has raised $70m (£56m) including $19.4m (£15.5m) via a share placing at 17.4p each and $50.6m (£40.5m) through a convertible loan note issue. The cash will be used to reduce debt and fund the company into 2022. Mereo plans a phase 1b study for cancer treatment etigilimab during the fourth quarter.

Life sciences IT services provider Instem (INS) continues to trade strongly and net cash was £8.3m at the end of April 2020. The 2019 figures show a rise in pre-tax profit from £2.8m to £3.2m and a jump to £4.2m is expected in 2020. Existing business continues but new business may take longer to secure, and this led to a small downgrade.

Amryt Pharma (AMYT) has signed a distribution agreement with Swixx BioPharma for leptin deficiency treatment Myalepta in 17 eastern European countries.

Armadale Capital (ACP) says that the definitive feasibility study update has increased the NPV of the Mahenge Liandu graphite project in Tanzania by 20% to $430m. That is based on a 30% rise in average annual production.

Bidstack (BIDS) has raised £5.5m at 4p a share. The in-game advertising technology developer will use the cash to expand internationally and fund marketing and further technology development.

Telematics firm Quartix (QTX) says that subscriptions have held up and installations are recovering after an initial slump in April. Trading in the first four months of 2020 was ahead of the same time last year. Some clients have been allowed payment deferrals. There is £9.5m in the bank.

President Energy (PPC) has raised £2.24m at 1.85p a share via PrimaryBid. A placing raised a further £2.5m. Trafigura is subscribing a further $6m at the same share price. Along with a $4.1m debt for equity swap this will reduce debt to around $15m. There will be a $98.5m write down of assets, particularly the Paraguay exploration activities. Even excluding this, there will be a loss this year. The crude oil reference price in Argentina has been set at $45/barrel until the end of the year, which is higher than the current global price.

MAIN MARKET

Tex Holdings (TXH) improved sales and gross margins last year, but there was still a slightly increased pre-tax loss due to redundancies and professional fees. Revenues increased from £40.1m to £43.1m, and if exceptional costs are stripped out there was a decrease in pre-tax loss to £661,000. The plastics division is profitable, but the engineering division is losing money. The overdraft has been repaid with the proceeds of a shareholder loan. The pension surplus has increased NAV from 127p a share to 134p a share. There are plans to reduce costs by an annualised £1.5m.

LED lighting supplier Luceco (LUCE) says trading has improved in recent weeks and it expects the first half profit and cash generation to be at least as good as the same period last year. That is despite lower revenues.

Motor dealer Lookers (LOOK) is closing 12 more dealership sites. Annual savings of £50m are anticipated. Trading has recommenced at Lookers sites, but activity is still weak. Net debt was £57m at the end of May.

Andrew Hore

Andrew Hore – Quoted Micro 13 January 2020

NEX EXCHANGE

NQ Minerals (NQMI) says that in 2019 the Hellyer mine in Tasmania produced 24,980 tonnes of lead concentrate, 15,646 tonnes of zinc concentrate and 77,853 tonnes of pyrite concentrate. Metal recovery has improved with average lead recoveries of more than 50%. The focus will be on generating lead revenues. Additional high-grade underground resources have been acquired from Bass Metals, which was subleasing the area. The purchase includes 1.175 million tonnes of underground JORC resources.

Inqo Investments Ltd (INQO) is investing natural insecticide developer Kentegra Biotechnology. The Kenya-based company produces pyrethrum, a natural ingredient from the chrysanthemum flower for use in the home, agricultural and pharma markets. There is a shortage of supply of pyrethrum, which can only be produced in a limited number of places around the globe. There is a move away from synthetic versions of the ingredient.

Panther Metals (PALM) has completed its move to the standard list.

Black Sea Property (BSP) has raised €4.79m via a placing at 1.1 cents a share. The cash will be used for property investments. Mamferay Holdings, which is owned by majority shareholder Phoenix Capital Holdings, is swapping €1.4m of debt for shares at the same price.

Equatorial Mining and Exploration has changed its name to Eastinco Mining and Exploration (EM .P).

Wishbone Gold (WSBN) says that the 100p-for-one share consolidation will take effect on 21 January.

EPE Special Opportunities Ltd (ESO) reported a NAV of 273.9p a share for the end of 2019.

AIM

Packaging equipment supplier Mpac (MPAC) says that the 2019 profit is going to be much better than expected. The pension deficit should be eliminated by 2024.

Ultrasound simulation equipment developer Intelligent Ultrasound (MED) expects its 2019 revenues to grow to between £5.7m and £5.9m. There will be a slightly higher loss due to higher development spending. There was £7.3m in the bank at the end of 2019. The agreement signed with FUJIFILM SonoSite Inc will help sales this year in the training market.

Shield Therapeutics (STX) has licenced its Ferracru/ Accrufer iron deficiency treatment to Beijing Aosaikang Pharmaceutical for an upfront payment of $11.4m. This means that there should be net cash of £7.5m at the end of 2020. A further $11.4m payment is due when the treatment gains approval in China, following a clinical trial funded by the licensee, possibly in 2023. There could be further milestone payments of up to $40m depending on sales. Ongoing royalties on sales will be 10% or 15%,

Biopesticide products developer Eden Research (EDEN) says that its three EU-registered active ingredients have been approved for use in organic farming. A one-year exclusive agreement with Corteva Agriscience, will give the company time to evaluate Eden’s Sustaine encapsulation technology for use with seeds. Coreva could be granted exclusive distribution rights in the EU, Turkey, Russia and Ukraine.

Accrol Group (ACRL) management believes it has turned the fortunes of the toilet paper manufacturer around. Even so, it still lost £3m in the six months to October 2019. Net debt was £24.8m and this could fall to £20m by the end of April.

Telecoms services provider Maintel (MAI) has warned that public sector contracts continue to be delayed. finnCap has cut its 2019 pre-tax profit forecast from £10.4m to £8.1m, while the 2020 estimate has been reduced by one-quarter to £8.8m.

Software company CloudBuy (CBUY) wants to leave AIM and it expects to save £100,000 a year in overheads. Lyn and Ronald Duncan subsequently sold 11.1 million shares at 0.414p each. The share price has fallen but it is still 0.6p.

Promotional products software supplier Altitude Group (ALT) has signed a strategic alliance with the Advertising Speciality Institute, which will use its software platform.

Surface Transforms (SCE) expects more contract announcements with OEMs this year. In the seven months to December 2019, revenues were £1.45m, nearly treble the same period in the previous year, but lower than expected due to delays. The new financial year end is March. There was £768,000 in the bank at the end of 2019 and a further £425,000 has already been received.

Asimilar Group (ASLR) has raised £6.8m at 40p each. This will be received in two tranches. Formerly known as YOLO, the company will invest the cash big data, machine learning, telematics and internet of things businesses.

MAIN MARKET

Avation (AVAP) has started a strategic review, which could include the sale of the aircraft leasing business. Avation has 49 aircraft with an average fleet age of 3.7 years. It has also purchased a spare engine that can be leased.

InnovaDerma (IDP) grew interim revenues by 28% to £5m. This represents a slowdown in growth in the later part of the period and is slightly lower than expected. Skinny Tan was responsible for most of the growth. The second half will benefit from the launch of new skincare products in Superdrug.

Pembridge Resources (PERE) says its Minto Explorations business has received a $5.4m payment for copper concentrate produced during December. The Minto mine produced 2,247dmt of copper concentrate in the fourth quarter 2019.

BATM Advanced Communications (BVC) says that its molecular diagnostics business Ador Diagnostics has received its first commercial order from an Italian customer for meningitis testing.

Andrew Hore

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