News blog

Quoted Micro 15 April 2024

• BY: Andrew Hore |
• POSTED: 14/04/2024 |

AQUIS STOCK EXCHANGE

Voyager Life (VOY) has terminated its merger with Northern Leaf following a decline in its share price making it difficult to fund the transaction. The cannabis products supplier says that there are other potential partners. Additional finance is required to automate production.

Supernova Digital (SOL) says NAV was 0.36p/share on 3 April 2024. A tender offer is planned when there are additional liquid funds. Director Nicholas Lyth bought two million shares at 0.19p each.

Capital for Colleagues (CFCP) has sold shares in Computer Application Services for £257,000 and it retains a 28.9% stake.

Marula Mining (MARU) issued 2.8 million shares to pay for its stakes in the Nyoriinyori and NyoriGreen graphite projects The total consideration is £350,000. This follows assay results that confirm high-grade and broad graphite mineralisation on each of the projects. Marula Mining is also about to start supplying columbite-tantalite and feldspar from the Blesberg mine in South Africa to Fujax UK.

Substrate AI (SAI) is forecasting 2024 revenues of $20.6m and pre-tax profit of $1m. This is due to organic growth.

Business assurance provider Adsure Services (ADS) has announced a maiden dividend of 0.49p/share and the shares go ex-dividend on 18 April. Trading has been strong in the second half.

KR1 (KR1) has announced a general meeting on 29 April to seek authority to acquire up to 14.9% of its share capital.

Hydrogen Future Industries (HFI) has raised £60,000 at 5p/share. This is on top of the £552,000 raised earlier in the year.  Inqo Investments (INQO) raised £1.3m at 70p/share. Dermatological technology developer Incanthera (INC) raised £174,000 from the exercise of warrants at 10p. Crushmetric (CUSH) placed shares raising £54,000 at 12.5p each.

Valereum (VLRM) has appointed Stanford Capital Partners as broker. Spirits company Rogue Baron (SHNJ) has appointed New York-based MD Global Partners as joint broker.

Rikki Devlin has increased his stake in Oscillate (MUSH) from 3.04% to 4.21%. Michael Prior sold 645 shares in brewer Shepherd Neame (SHEP) at 695p each.

AIM

Self-storage operator Lok’nStore (LOK) has agreed a 1,100p/share cash bid from Belgium-based Shurgard Self Storage. That values the company at £370m. The share price has risen above the level of the bid.

Churchill China (CHH) still managed to increase its profit in 2023 even though the third quarter trading was weak, and revenues fell. Europe was the bright spot, with growth in ceramics sales to hospitality customers in the main markets. The UK was flat, and the rest of the world sales were lower. The dividend has been raised from 31.5p/share to 36p/share. Capital investment will improve efficiency and margins. Investec forecasts flat 2024 pre-tax profit of £10.8m and that assumes an upturn in the UK.

There were no additional negatives in the Bango (BGO) 2023 figures following its disappointing trading statement earlier in the year. In fact, the previously announced foreign exchange loss was not taken through the income statement. Revenues grew from $28.5m to $46.1m with a full contribution from DOCOMO. The reported loss jumped from $4.8m to $10.2m. The NewDeep joint venture is being wound down so that stop the losses from it, while the technology can be used in the core business. Net debt is $3.9m. Capex continues at a high level and there is an unused overdraft facility of £3m that can be used. First quarter revenues are up by one-fifth and cost savings will help Bango achieve the anticipated move into profit this year. Annualised recurring revenues are $11m.

CleanTech Lithium (CTL) chief executive Aldo Boitano has resigned, although he will be a consultant, and Steve Kesler has taken over on an interim basis. This follows the revelation he entered into a loan agreement with his shareholding in the company as security in August 2023, but this was not revealed at the time. He transferred his 9.4 million shares to a custodian account nominated by the lender. It is unclear if any of the shares have been sold.

Cosmetics supplier Warpaint London (W7L) says trading continues to outperform expectations. First quarter sales are 28% higher at £23.5m. This has been achieved by adding stores and broadening the range and there has been no price rise since early 2022. Margins have also improved. Shore believes that its current pre-tax profit forecast of £19.1m for 2024 is likely to be 10% too low. The broker will not upgrade its forecast until the 2023 results are published on 24 April.

Coal miner Bens Creek (BEN) is laying off workers at its mine in West Verginia, which will be operated on a care and maintenance basis. There are 44 employees being laid off and that is described as “a substantial number” of the employees at the mine. Management is in discussions with largest shareholder and offtake partner Avani Resources to provide further finance. Earlier in the week, the company said it had secured a one-off sale of 20,000 tons of coal to Avani Resources for $1.2m, of which $1m has been received in advance of delivery. This is lower quality coal, and the deal is separate to the offtake agreement. This did not prove enough to alleviate the poor financial position of the US-based metallurgical coal miner.

European Green Transition (EGT) is seeking to build up a portfolio of mining and processing projects that can help to progress the move to cleaner energy in Europe. There is potential for grant income from the EU for European critical minerals assets, as well as looking at non-dilutive ways of raising money for individual projects. A placing and offer raised £6.46m at 10p/share. Trading commenced on 8 April. The share price ended the week at 12p. Pro forma net assets are £7.29m, which includes cash of £5.95m. The Olserum rare earth element project in Sweden is the core asset.

Fulcrum Metals (FMET) has acquired the Sylvanite gold tailings project in Ontario. This is a former producing mine, and it is near to the previous tailings investment the Teck-Hughes gold tailings project. There are plans to create a tailings hub. The historic tailings resource estimate at Sylvanite is 67,051 ounces.

First quarter revenues at carbon brake technology developer Surface Transforms (SCE) were £3m, which was lower than target. However, production yields improved in March when revenues were £1.5m. Revised delivery schedules have been agreed. Cavendish has raised its 2024 forecast loss to £3m because of higher scrappage costs and there are likely to be higher working capital requirements. There should still be net cash at the end of 2024.

Drug developer e-therapeutics (ETX) is raising £28.9m at 15p/share from M and G and Richard Griffiths. It is also the latest company to decide to leave AIM. In the future, a Nasdaq listing may be possible.

Active Energy Group (AEG) has been reviewing its operations and how to secure funding. It believes it cannot raise the cash it requires to construct a CoalSwitch biomass fuel plant and commence production. A buyer is being sought for the CoalSwitch assets. If that happens, then the company would become a shell.

Oracle Power (ORCP) has secured an option to acquire 100% of the Blue Rock Valley copper and silver project in Western Australia. The option cost £30,000 in shares. If the option is exercised there will be 913.2 million shares issued – valued at £200,000.

Weak third quarter demand at castings company Chamberlin (CMH) hit profitability. Some new programmes were delayed, and other demand was lower than forecast. The renewable offshore energy sector remained strong. There has been some recovery in the fourth quarter and costs are being reduced. Prices increases have been made.

Harvest Minerals (HMI) has made a rare earth elements discovery at its Arapua fertiliser project in Brazil. Rock samples analysis shows rare earth elements and further work will be done to firm up the opportunity by assessing previous drilling. There has been a better start to the year for sales of fertiliser.

Contract research and infectious disease study services provider hVIVO (HVO) reported 2023 results broadly in line with the trading statement. The order book covers 90% of the forecast revenues of £62m, with a strong first half expected.

MAIN MARKET

Kitchenware retailer ProCook Group (PROC) reported fourth quarter trading showing 4.8% year-on-year growth in revenues to £13.2m with the decline in ecommerce revenues slowing. Like-for-like growth was 1.5% ahead. Full year revenues were flat at £62.6m, although retail revenues were 9% higher. Net debt is £700,000.

Critical Metals (CRTM) has issued £1.6m of convertible loan notes. This will help to finance the road to the Molulu copper cobalt project in the Democratic Republic of Congo and fund initial drilling to establish a JORC resource. Management is also near to securing an $11m loan guaranteed by the US government. This will fund construction of the mine and leave additional cash for investment in other projects. Production at Molulu could start before the end of this year. The plan is to produce 10,000 tonnes of copper each month.

Standard list shell Aura Renewable Acquisitions (ARA) had £661,000 in the bank at the end of 2023. It raised £1m in April 2022. The company is still seeking an acquisition in the renewable energy sector.

Narf Industries (NARF) has won a $500,000 cybersecurity contract with the US Department of Energy. This is part of a project to strengthen the resilience of energy infrastructure.

Quoted Micro 8 April 2024

• BY: Andrew Hore |
• POSTED: 08/04/2024 |

AQUIS STOCK EXCHANGE

Phoenix Digital (PNIX) is benefiting from the rise in cryptocurrency values. At the end of March 2024, NAV was £74.5m, equivalent to 7.38p/share. The NAV was 4.67p/share at the end of 2023. The NAV could be reduced by up to 1.1p/share due to a tax charge.

Gunsynd (GUN) has raised A$453,000 from selling shares in Charger Metals, Pacific Nickel Mines and Rincon Resources. It retains small stakes in each of the companies.

Capital for Colleagues (CFCP) investee company Bright Ascension has received £2.25m in the latest funding round. The company’s original £750,000 loan investment in the space software developer will generate interest of 10%/year.

In the six months to December 2023, video technology company Visum Technologies (VIS) lost £342,000 on revenues of £85,000. There are plans to secure further funding. Several new installations are planned, including in the US.

Cadence Minerals (KDNC) has raised £500,000 at 3p/share. The new shares come with a warrant exercisable at 5p. The cash will be invested in the Amapa iron ore project in Brazil.

Tectonic Gold (TTAU) generated an initial £84,000 in revenues in the six months to December 2023. The cash outflow from operations was reduced from £95,000 to £75,000. Net debt was £43,000. An acquisition target has been identified in Ghana.

Coinsilium Group (COIN) has launched a new series of Web3 industry reports. These will provide a greater understanding of the Web3 space and the blockchain technology underpinning it.

Brewer Adnams (ADB) says it continues to explore ways of raising funds, including a share issue or sale of freehold assets.

First York has put 12 new buses into services that feature the Equipmake (EQIP) electric powertrain. This follows a trial with a convertible prototype vehicle.

William Potts has resigned as chief investment officer of drug-based mental health treatments developer Psych Capital (PSY) but will remain as an adviser.

Tap Global Group (TAP) chairman David Hunter bought an initial 148,347 shares at 1.35p each.

AIM

Video games publisher Frontier Developments (FDEV) is trading in line with expectations before the benefit of the profit from the sale of RollerCoaster Tycoon 3 publishing rights. Those rights returned to Frontier Developments in 2018 under the original publishing agreement. The game has been generating $1.5m profit/year. Atari has acquired the rights for $7m with an initial payment of $3m. There was no value in the books for the game. This has boosted the cash position to £23.4m.

Xeros Technology (XSG) announced a fundraising late on Thursday. There has been £4.5m raised at 1.5p/share and up to £1m more could be raised via a retail offer that closes on 19 April. This will strengthen the balance sheet and provide cash to finance current contracts and commercialise the laundry technologies developer. The first royalty income could be received in the second half of 2024. EBITDA breakeven could be achieved before the end of the year.

Online gaming firm Gaming Realms (LSE: GMR) is growing revenues in Europe and North America. In 2023, revenues were 26% ahead at £23.4m with content licencing growth of 30%. Brand licencing revenues more than doubled to £1.3m, while social gaming revenues were lower despite additional spending on this part of the business. Pre-tax profit improved from £3.5m to £5.2m. There was £9.28m generated from operating activities and that more than covered the £4.63m of capitalised spending on new games and the technology platform. Net cash is £7.46m.

Strong second half trading at Cavendish Financial (CAV) meant that full year pro forma revenues grew from £50.5m to £54m. Private and public M&A activity was buoyant. There was cash of £20.8m at the end of March 2024. Annualised savings of £7m have been made with more to come.

Diagnostic tests developer genedrive (GDR) benefited from NICE’s recommendation of the CYP2C19-ID test for genotype-guided clopidogrel treatment in the NHS. It is the preferred platform for UK point-of-care testing for the management of ischemic stroke and transient ischaemic attack patients. It is advised that these patients should have a genetic test before antiplatelet treatment.

Gelion (GELN) syas the energy density testing of its lithium-sulphur battery technology shows that it far exceeds lithium-ion batteries. The 9.5 Ah pouch cell achieved an energy density of 395 Wh/kg, which 60% higher than lithium-ion batteries. This means that the batteries could be lighter and cheaper than rival technologies, as well as being made from more abundant materials, but there is some way to go to get to commercialisation. Gelion has cash of £7.5m. The share price is back above last November’s £4.4m fundraising price of 24p/share.

Redx Pharma (REDX) is the latest AIM company that has decided to leave the junior market. A plan to reverse into a Nasdaq shell fell through last year and there is limited liquidity because two shareholders own more than 84% of the company. There are already enough votes to guarantee that the proposal is passed at the general meeting on 19 April. Last October, £14.1m was raised at 26p/share. Management believes that it will be easier to raise money as a private company.

Portable oxygen technology developer Belluscura (BELL) has suffered from the distraction and delays in the acquisition of standard list shell TMT Acquisition. This delayed the launch of the DISCOV-R product until June and the acquisition of components. Manufacturing is being moved to InnoMax in China. Cash flow breakeven has been delayed until the first quarter of 2025. A line of credit is being sought to cover non-recurring expenses. There is $3m in cash at the end of March 2024. The 2024 revenues will be lower than the previous range of $16m-$19m. There will be impairment charges in the 2023 accounts.

Steppe Cement (STCM) plans to return 1.5p/share after a capital reduction is agreed by shareholders. That did not offset the disappointing trading statement from the Kazakhstan cement supplier. First quarter revenues fell from $10.8m to $8.4m due to a combination of lower sales and reduced selling price. The market decreased by 12%, but Steppe Cements market share fell from 12.7% to 11.5%.

MAIN MARKET

Pinewood Technologies (PINE) has confirmed details of the £358m cash return to shareholders. A general meeting will be held on 22 April to gain shareholder agreement to the 24.5p/share dividend and a 20-for-one share consolidation. The company retains a motor dealer software business.

Picton Property Income (PCTN) is selling Angel Gate, London for £29.6m. That is 5% higher than the valuation. This is the second largest asset in the portfolio. The cash will be used pay off a credit facility that has a higher interest rate than others. The occupancy of the remaining portfolio is 91%.

AIM 50 Digest 5 April 2024

• BY: Andrew Hore |
• POSTED: 08/04/2024 |

Grocery distributor Kitwave Group (KITW) has made another earnings enhancing acquisition. Total Foodservice Solutions is a food wholesaler with two depots based in the north of England. The customer base includes pubs, restaurants, universities and care homes. The gross cost is £21m and that is reduced to £17m when cash in the business is taken into account. This business made a pre-tax profit of £2m last year. Canaccord Genuity upgraded 2023-24 pre-tax profit estimates from £28.5m to £29m with a larger upgrade for next year.
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Fevertree Drinks (FEVR) revenues rose 6% to $364.4m in 2023 despite a mixed performance around the world. The biggest increase was in the US. EBITDA fell from £39.7m to £30.5m. Net cash fell from £95.3m to £59.9m. This year revenues are expected to grow by 10% and there will be a sharp improvement in EBITDA margin to 15%.
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Floorcoverings supplier James Halstead (JHD) reported lower interim revenues, but pre-tax profit was 18% higher at £27.4m. The full year forecast has been raised from £52.6m to £54m.
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Central Asia Metals (CAML) reported a fall in 2023 revenues to $195.3m, from $220.8m, but net income improved from $33.7m to $37.4m, although there was an impairment charge in the previous year. The total dividend was 18p/share, down from 20p/share. Central Asia Metals has made a £3m investment in Aberdeen Minerals for a 28.7% stake. It has a potential nickel and copper project in Scotland.
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Niox Group (NIOX) is paying a maiden final dividend of 1p/share and a special dividend of 2.5p/share. Net cash is £18.8m and it should continue to rise so there is scope for further special dividends. Pre-tax profit is expected to increased from £8.7m to £10.7m in 2024.
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Financial services support provider Fintel (FNTL) has paid £1.5m for a 5.8% stake in Mortgage Brain and signed a new distribution agreement with it. A 70% stake has been taken in ifaDASH, which assists intermediaries with running an efficient and compliant business. This will cost up to £1.5m.
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M and C Saatchi (SAA) has re-entered the AIM 50 and it has sold its investments in loss-making French associate companies for Euro1m.
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Big Technologies (BIG) improved full year revenues from £50.2m to £55.2m. The underlying operating profit edged up to £28.2m even though there were higher inventory provisions. Net cash soared to £85.9m. A contract ends in Colombia this year and that will hold back performance.
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Gamma Communications (GAMA) increased its pre-tax profit from £87.8m to ££97.9m. Year-end cash was £134.8m and there will be a £35m share buy back programme.
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Cohort (CHRT) has been awarded a £135m Royal Navy countermeasures contract. Chief executive Andrew Thomis sold 2,944 shares at 679.55p each.
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IDOX (IDOX) expects revenues to grow in double digits this year. That is before any acquisitions are made.
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Pantheon Resources (PANR) is in advanced discussions about a gas offtake agreement with Alaska Gasline Development Corp. There are also talks with potential providers of oilfield services. 
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Renew Holdings (RNWH) says interim trading is in line with expectations and the order book is being maintained.
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Tatton Asset Management (TAM) chief executive raised £1.1m by selling 200,000 shares at 561p each. Impax Asset Management (IPX) non-exec Simon O’Regan bought 13,000 shares at 450.668p each and non-exec purchased 5,500 shares at 433.875p each.

Quoted Micro 1 April 2024

• BY: Andrew Hore |
• POSTED: 01/04/2024 |

AQUIS STOCK EXCHANGE

Incanthera (INC) has published an update on its distribution deal with Marionnaud. The first order for Skin + CELL products will generate revenues of £2m with 50,000 bottles of skin cream to be supplied for sale in Austria and Switzerland. A second order will be even bigger. The management projects revenues of £10m for the year to March 2025 and this would make it profitable. The range is being increased to five products and they are all part of the initial launch.  Revenues could grow to £33m the following year. There is potential for licence deals in other countries.

Watchstone Group (WTG) says a subsidiary’s VAT appeal was dismissed even though it satisfied four out of five elements. A decision will be made on whether to appeal the judgement.

TruSpine Technologies (TSP) intends to issue a conversion notice to loan note holders. The conversion price is a 130% premium to the share price prior to the convertible loan note approval by the directors. A £200,000 debenture has been used to subscribe for convertible loan notes. Geoffrey Miller has increased his stake from 6.88% to 7.24%.

Quantum Exponential Group (QBIT) has announced a further adjournment of its a general meeting to gain shareholder approval for leaving Aquis. Investors have approached the quantum technology investment company and offered to make a substantial investment. Stuart Woods has stepped down from the board.

Cadence Minerals (KDNC) investee company European Metals Holdings (EMH) says that the Cinovec project in the Czech Republic is in the process of completing a definitive feasibility study, but it will not be completed in the first quarter. There is potential to improve the lithium processing. Cadence Minerals has increased its stake in the Amapa iron ore project in Brazil to 34%. A study should reduce costs and improve productivity of the proposed mine.

S-Ventures (SVEN) increased interim revenues from £8.4m to £9.6m but reported a higher loss from continuing operations. The bakery business was profitable, but this did not offset losses and impairment costs for other businesses. There is no further news on the proposed sale of operations to AIM-quoted Riverfort Global Opportunities.

KR1 (KR1) had net assets of 134.6p/share at the end of February 2024. There was income generated of £1.63m.

Arbuthnot Banking Group (ARBB) increased its pre-tax profit from £20m to £47.1m and the total dividend was raised from 42p/share to 46p/share. Bad debts were lower than forecast. NAV is 1547p/share. The profit is likely to fall this year.

Global Connectivity (GCON) is amending the terms of warrants issued when it floated and extending them by two years to 20 April 2026. The exercise price is being reduced to 1.5p. Management is exploring potential investments.

Marula Mining (MARU) has commenced exploration at the Larisoro manganese mine in Kenya.

Valereum (LON: VLRM) has raised £300,000 at 6p/share from its chairman and is planning a larger fundraising in the third quarter of 2024.

Jenny Hanlon has been appointed as chief executive of brewer Adnams (ADB). She is currently finance director.

Tap Global Group (TAP) generated trading payment volumes of £181.6m in 2023. That generated revenues of £2.02m, but the loss was still £1.07m.

EPE Special Opportunities (EO.P) had net assets of 324p/share at the end of January 2024. There was £15.3m in cash offset by £4m in loan notes repayable on 23 July.

Gunsynd (GUN) investee company Aberdeen Minerals is raising £3m at 8.5p/share from Central Asia Metals with a further £2m that could be raised from the exercise of warrants at 11p/share. This deal requires regulatory approval.

Lift Global Ventures (LFT) investee company Trans-Africa Energy has received funding of £12m from an African investor. The first energy infrastructure investment is in Ghana. Lift Global Ventures’ core investor relations business generated cash in the first half, although there was a cash outflow for the group as a whole.

Aiden Keegan has been appointed chief executive of Cooks Coffee Company (COOK).

Philip Blows reduced his stake in Supernova Digital Assets (SOL) from 10.6% to 7.98%. There was £68,000 in the bank and £1.95m in investments at the end of October 2023. NAV was £2.93m.

Daniel Thwaites (THW) director RAJ Bailey bought 15,000 shares at 71p each.

AIM

Marine technology developer Windward (WNWD) has cut its loss and is heading towards profitability. The 2023 revenues were $28.3m, up from $21.6m. Windward started 2023 with an annual contract value of $25.5m and that has risen to $34.5m, while the 2024 forecast revenues have been edged up from $34.5m to $35.1m. Requirements for tracking cargo and ensuring that sanctions are complied with are helping to increase demand, particularly from commercial clients. Commercial revenues increased to 30% of the total for 2023, but government revenues are also growing.

Grocery distributor Kitwave Group (KITW) has made its latest acquisition, and this will be earnings enhancing. Total Foodservice Solutions is a food wholesaler with two depots based in the north of England. The customer base includes pubs, restaurants, universities and care homes. The gross cost is £21m and that is reduced to £17m when cash in the business is taken into account.

Strong growth at the Billi filtration systems helped Strix (KETL) have a better second half, but the limited recovery in kettle controls and lower consumer goods sales meant that pre-tax profit was slightly lower at £21.9m. There is no dividend. There should be an improvement in profit this year, but it will still be well down on the 2021 figure. Net debt was £83.7m and could fall below £79m by the end of 2024.

Good Energy (GOOD) had a strong performance in 2023 due to high energy prices, but 2024 will not get that benefit and energy supply profit will fall sharply. In 2023, pre-tax profit doubled to £5.7m, but the 2024 forecast has been downgraded from £8.4m to £6.7m. The energy services business, including solar and heat pump installation, is being built up and it will become a more significant profit contributor over the next couple of years making the group performance less volatile.

Floorcoverings manufacturer Airea (AEIA) increased sales of its Burmatex-branded product by 14% to £21.1m. Pre-tax profit was flat at £1.4m, although it included a small valuation gain in the latest year. Higher finance costs relate to the pension scheme and operating profit increased. The net asset value is £14.9m, including net cash of £3.4m. Strong cash generation can cover the £5m investment in new capacity and a 10% increase in the dividend to 0.55p/share. The new capacity should be ready in early 2025 and will enable Airea to take advantage of own brand opportunities for clients.

Revolution Bars Group (RBG) is assessing its options that include restructuring the business or selling all or part of the operations. There are currently no bidders. Luke Johnson is involved in talks concerning a fundraising.

Semiconductor designer CML Microsystems (CML) is being hampered by lower than expected shipments as clients reduce stocks and this is continuing into the new financial year. In the year to March 2024, revenues will be slightly lower than expectations at £23m and underlying EBITDA will be £6.4m, compared with a forecast £6.8m, due to more sales of lower margin products. Full year pre-tax profit will be just under £3m. The balance sheet remains strong with net cash of nearly £18m. The full benefits of the Microwave Technology acquisition, which has performed well, will show through over the next couple of years.

Horizonte Minerals (HZM) published the latest financing estimate for the Araguaia nickel project. The cost to complete is $454m, but the full funding required is $567m-$592m, including pre-production and transaction costs. Existing liabilities are $418, and they require restructuring. More cash will be required by mid-April. Interest payments are being deferred. Existing shareholders are not in a strong position.

A more positive trading statement from film and video translation services provider ZOO Digital (ZOO) as management believes that demand should recover following the disruption of recent strikes in Hollywood. Revenues of $40m are now expected for the year to March 2024.  A new film and TV distribution client has been won and there is greater visibility of work. The company still might not move back into profit in 2024-25, though. There is potential disruption from a craft workers strike in Hollywood.

Boilers developer Inspirit Energy (INSP) is near to completing the four electronic updates for its waste heat recovery system. The team is relocating back to the UK. The cash outflow was stemmed in the six months to December 2023.

Infrastructure India (IIP) shares returned from suspension when the interims to September 2023 were published. The board is proposing a winding-up of the company as it disposes of its assets and the share quotation will be cancelled if the proposals are passed at the AGM. Net liabilities are £217.4m.

Drug discovery company C4X Discovery (C4XD) also plans to cancel its AIM quotation and re-register as a private limited company if it gains shareholder approval at a general meeting on 15 April. Shareholders owning 57% of the shares are in favour. Management believes that it will be easier to raise funds as a private company and it will save money. C4X Discovery has raised £63m on AIM. In August 2022, £5.7m was raised at 25p/share. There is still £20.8m in the bank. In the six months to January 2024, revenues were £24.6m, due to milestone payments, compared with £1.7m in the first half of the previous year. The company is generally loss-making without substantial milestone payments.

Oil and gas producer Molecular Energies (MEN) is cancelling its AIM quotation because it does not believe it is worth the cost. The company should save £500,000/year. Chairman Peter Levine, who owns 29.2%, suggests that he may offer to buy shares of some other investors in the future, but there are no immediate plans to offer an exit prior to the cancellation. Green House Capital will no longer be spun off on AIM.

Infection protection technology developer Byotrol (BYOT) has been quoted for nearly 19 years and it has decided to leave AIM. Revenues from continuing products could improve from £3.7m to £3.9m this year. No further IP revenues are expected this year. Some IP was sold to Tristel (TSTL) and along with an early termination of another licence generated cash of £800,000, but minimum guaranteed royalties will be written down by £550,000 in the balance sheet. Even before that, there will be a higher loss in 2023-24. The business needs to be restructured and reduce costs and believes there will be more flexibility as a private company.

MAIN MARKET

Quantum dots developer Nanoco (NANO) generated interim revenues of £4m, including the recognition of £3m of Samsung licence income, up from £1.6m. Net cash was £54.5m at the end of January 2024. Second half non-Samsung revenues should be higher.

First Tin (1SN) had a cash outflow from operations of more than £2m in 2023. There was also £6.4m spent on exploration activities. There is £4.66m left in the bank.

Cizzle Biotechnology (CIZ) has raised £620,000 via a placing at 2p/share. This will fund the first proposed commercial test for its lung cancer test. The £500,000 loan facility with E3 Fund will be terminated.

Quoted Micro 25 March 2024

• BY: Andrew Hore |
• POSTED: 24/03/2024 |

AQUIS STOCK EXCHANGE

S-Ventures (SVEN) has agreed to sell its food and snacks business in return for shares in AIM-quoted RiverFort Global Opportunities worth £3.5m. That would leave S-Ventures as an investment company with shares in the acquirer. Sales for the 12 months to September 2023 were £17.4m, rising to the £21.6m in the 15 months to the end of 2023. Net debt was £7.1m at the end of September 2023. An additional £3m of loans have been agreed, including £1m from RiverFort Global Opportunities.

Marula Mining (MARU) has signed a long-term offtake agreement with Fujax UK for the Blesberg lithium and tantalum mine in South Africa. This an agreement for 100% of production until the end of 2026, with a minimum of 50,000 tonnes at a grade of 6% lithium. There is an option for a further three years. A mining right has been received from the authorities for the plans to expand the stockpile reprocessing operations.

Brewer Shepherd Neame (SHEP) improved like-for-like retail sales by 6.2%, although beer volumes fell 10.5% with own beer volumes down 16.7%. Overall, interim revenues grew 4% to £89m and underlying pre-tax profit was 10% ahead at £3.8m. The brewing division returned to profit. The interim dividend was 5% ahead at 4.2p/share. Beer volumes continue to decline, while the retail sales growth rate has slowed.

Gunsynd (GUN) shares rose 17.9% to 0.165p on the back of an institutional investor investing $1m ($750,000 in cash and $250,000 in support services) in the US spirits subsidiary of Rogue Baron (SHNJ), where it currently has a 17.45% stake. Rogue Baron has also raised £20,000 at 0.5p/share.

Aquis Stock Exchange owner Aquis Exchange (AQX) increased revenues from £19.9m to £23.7m, while pre-tax profit rose from £4.5m to £5.2m. The Aquis Stock Exchange revenues improved from £1.6m to £1.8m. The main growth came from technologies and data. Panmure Gordon forecasts 2024 pre-tax profit of £6.2m.

Macaulay Capital (MCAP) reported a fall in net assets from £1.44m to £1.36m at the end of 2023. There was an exit from the investment in Qualification Check which reduced the reported loss. There are seven portfolio companies. There is a pipeline of potential transactions.

Cadence Minerals (KDNC) says that the capital spending optimisation programme has been completed at the Amapa iron ore project. Savings of $63.2m have been identified and production could be 5% higher at 5.5 Mtpa of iron ore concentrate.

Supernova Digital Assets (SOL) has completed the acquisition of Hyperslot PTE for £225,000 in shares at 0.15p each. Andrew Offit increased his shareholding from 14.1% to 15.2%.

Arsen Torosian has replaced David Carr as chief executive of Tap Global Group (TAP). He is the largest shareholder and was previously chief strategy director. Steven Borg will become finance director.

KR1 (KR1) has invested $600,000 in Moondance Labs, which is building Tanssi, which helps appchain deployment.

Substrate Artificial Intelligence (SAI) has signed up FINRA-registered California-based bank GT Securities to identify potential partners for its Subgen AI subsidiary, which has launched Serenity Star, an ecosystem for scaling generative AI. The company has raised Euro500,000 from a convertible bond issue.

Secured Property Developments (SPD) is changing its name to Mollyroe and it is adopting s new investment strategy focused on the technology sector. There will also be a 20-for-one share consolidation.

Steve Hutchinson has taken his Oscillate (MUSH) stake above 3%. TruSpine Technologies (TSP) chairman Geoffrey Miller has increased his shareholding to 7.24%, while Oberon Investments raised its stake to 12.6%.

Good Life Plus (GDLF) has appointed Tennyson Securities as corporate broker.

AIM

Capital equipment manufacturer Mpac (MPAC) had a stronger second half and revenues improved from £98m to £114m, while pre-tax profit recovered from £3.5m to £7.1m. There was growth in parts and services revenues. The order book was worth £72.5m at the end of the year. The customer base is being broadened. There should be further recovery this year.

Educational software and services provider Tribal Group (TRB) is still hampered by its dispute with NTU, which is currently in mediation. The failed bid for the company also held back sales to potential clients. Even so, annualised recurring revenues grew 13% to £15.1m. Full year revenues moved from £83.6m to £85.8m, while pre-tax profit recovered from £3.7m to £10.7m.

Roadside Real Estate (ROAD) shares soared 129% to 8p after it sold part of its stake in Cambridge Sleep Sciences to CGV Ventures 1 for £6m. The total stake cost £2.7m and Roadside Real Estate still owns 65%, having sold a 10% stake, so it still has to be consolidated. Management is considering selling the rest or demerging the company so that it can concentrate on its core property interests.

Digital media company XLMedia (XLM) is selling European and Canadian gaming assets to Gambling.com for an initial $37.5m with potential deferred consideration of $5m. Some of this cash may be paid out to shareholders. These assets generated 2023 revenues $21.4m and underlying EBITDA of $6.6m out of estimated group 2023 revenues of $50m and EBITDA of $12m. Pro forma net cash is likely to be around $35m, after taking account of deferred consideration of $4m payable for past acquisitions. Cavendish estimates that XL Media is worth £48m, including the cash.

Biodegradable and antimicrobial plastic additives developer Symphony Environmental Technologies (SYM) has raised £1.4m at 3.5p/share and will raise up to £500,000 more through a PrimaryBid retail offer. The issue price was well above the market price. Chief executive Michael Laurier is subscribing £105,000. Net debt was £740,000 at the end of February. The additional cash will fund the scale-up of the business and provide working capital during trials by potential customers.

Blue Star Capital (BLU) reported a slump in NAV from £11.4m to £5.33m at the end of 2023. That includes cash of £63,000. Writing down the valuations of Dynasty Media & Gaming and Sthaler were a large part of the decline in NAV. Another investee company, SatoshiPay, is undertaking a formal sales process. This stake is valued at £4.65m.

Live Company Group (LVCG) returned from suspension following the announcement of a planned refinancing and sale of majority interest in StartArt. Creditors are being settled in shares and a £1.77m convertible loan provided by the chairman, as well as converting some of his loan notes. A placing raised £352,000 at 1p/share. There could be more cash to come from strategic investors.

Digital payments business Boku (BOKU) increased 2023 revenues by 30% to $82.7m and they are expected to increase to $95m this year. The wallets business grew 153%, albeit from a lower base. The local payments network is being built up and will be a major factor in growth, especially as margins are better. The direct carrier billings business continues to grow and remains the main generator revenues for the time being. The company has more than $70m in cash.

Employee benefits and insurance provider Personal Group Holdings (PGH) reported slightly better 2023 figures than expected with revenues of £49.7m and pre-tax profit recovering to £5.9m. The dividend was raised from 10.6p/share to 11.7p/share. That is well covered by cash generation. Cash was £20.1m at the end of 2023. The insurance business did particularly well.

Three rail clients delaying orders has hit prospects for LPA Group (LPA) and it is unlikely to do any better than breakeven this year – a pre-tax profit of £800,000 was previously forecast on a 6% reduction in forecast revenues.

Light Science Technologies (LST) has received a grant worth £188,000 for a project involving the company’s SensorGROW technology.

Saturn Resources has increased its bid for Shanta Gold (SHG) to 14.85p/share, up from 13.5p/share, valuing the miner at £156.1m. Eligible shareholders will receive a dividend of 0.15p/share on 26 April.

Stem cell-based treatments developer ReNeuron (RENE) has failed to come to an agreement with creditors and the financial uncertain means that it has appointed administrators from Cork Gully. Negotiations continue with creditors and potential providers of finance.

MAIN MARKET

Higher losses from the ReZorce recyclable packaging business masked progress at foams manufacturer Zotefoams (ZTF), where pre-tax profit moved up from £12.5m to £13.1m on flat revenues. That included an operating loss of £4.36m, up from £1.89m, from the MuCell Extrusion division that includes ReZorce. The total dividend is 7.18p/share.

Property investor Town Centre Securities (LSE: TOWN) managed to edge up its net tangible asset value to 286p/share at the end of 2023, due to the 150p/share tender offer last year. There was a 4% decline in property values. Loan to value has risen to 50.3%. The interim dividend is maintained at 2.5p/share.

TheWorks.co.uk (WRKS) is moving from the Main Market to AIM. The plan is to gain shareholder approval to move on 3 May. This should help to reduce costs.

Esken Ltd (ESKN) has appointed administrators from AlixPartners because its restructuring plan was no longer commercially viable. The restructuring of London Southend Airport will continue.

First Tin (1SN) says regional exploration confirmed upside potential at Pound Flat and Battery Hill prospects in the Taronga tin project.

AIM 50 Digest 22 March 2024

• BY: Andrew Hore |
• POSTED: 24/03/2024 |

Advanced Medical Solutions (AMS) is acquiring tissue repair and skin closure company Peters Surgical for up to £120.8m and the deal should be earnings enhancing in the first full year. In 2023, revenues were Euro84m and EBITDA of Euro10.6m. There is a portfolio of products that are complementary to the existing product range in areas such as cardiovascular and gynaecological. The deal should go through in June.
In 2023, Advanced Medial Solutions revenues improved 2% to £126.2m, but pre-tax profit declined from £28.5m to £25.9m. Net cash was £60.2m at the end of 2023. The dividend is 10% higher at 2.36p/share. Directors Chris Meredith bought 23,300 shares at 191.56p each and Eddie Johnson 27,051 shares at 192.2p each. 
=====
Online marketing and domain name services provider Team Internet (TIG) growth was predominantly organic in 2023. In 2023, revenues were 15% ahead at $836.9m, which includes organic growth of 13%. Underlying pre-tax profit improved from $70m to $77.2m. The doubled dividend of 2p/share was higher than anticipated. Net debt increased to $95.3m.
That is before the $41.8m acquisition of Sinez, which creates and promotes content across social media and search engines. This will broaden the range of revenues from online marketing and increases exposure to food, lifestyle and travel sectors.  Last year, EBITDA was $10.4m. Up to $12.3m of additional consideration could be paid if targets are met in the next two years.
=====
In 2023, building materials supplier SigmaRoc (SRC) generated revenues 8% higher at £580.3m, even though like-for-like volumes declined, and underlying pre-tax profit increased from £62.7m to £71.2m. This is before the latest and largest acquisition of lime assets from CRH, with Germany, Ireland and Czech Republic assets bought at the beginning of this financial year and the UK assets acquired more recently with Poland to follow. Net debt was £182.4m, rising to £579.5m after all the CRH assets are paid for.
=====
The Competition and Markets Authority’s announcement that it has concerns about the pet market knocked CVS Group (CVSG) shares. Concerns include, lack of information, weak competition in certain areas and actions by large groups like vet practices operator CVS Group.  A package of possible remedies has been suggested by CVS Group and its peers and they believe these could be implemented more quickly than an 18-month investigation.
=====
Oil palm plantations operator MP Evans (MPE) reported a dip in revenues from $326.9m to $307.4m in 2023. That was due to lower palm oil prices and a weaker crop, although the second half crop was better. Pre-tax profit fell more sharply from $105.1m to $73.5m. The company moved into net debt, but it should return to net cash by the end of 2024. Pre-tax profit could recover to $75.2m, even if the palm oil price does not stay at the current level, with further increases to come as newer planted areas start to mature.
=====
Video games services provider Keywords Studios (KWS) was resilient in 2023 despite the tough video games market. Adjusted pre-tax profit was 2% ahead at €114.7m on revenues 13% higher at €780.4m. Broader media business was hit by the writers’ strike in Hollywood and that knocked €20m off revenues. 
=====
Sienna Bidco’s bid for Smart Metering Systems (SMS) has gone unconditional with the major shareholders holding out deciding to accept because of the lack of a rival bid. Instead of a scheme of arrangement the bid was changed to a takeover offer that required the majority of the shares to accept for the bid to go unconditional.
=====
Lighting and electrical accessories supplier FW Thorpe (TFW) reported flat interim revenues of £82.6m and pre-tax profit was maintained at £10.7m. There was £14m generated from operating activities. The interim dividend was increased by 5% to 1.7p/share. There should be a better second half.
=====
Floorcoverings supplier Victoria (VCP) warns that demand has fallen, and margins are under pressure. Europe is particularly weak. Peel Hunt cut its pre-tax profit forecast from £58.1m to £33.1m, with a similar percentage decrease to £40.1m for the year to March 2025. Disposals will provide cash for acquiring loan notes and share buy backs.
=====
Financial services and software provider Fintel (FNTL) revealed a dip in 2023 revenues from £66.5m to £64.9m, but that was all down to non-core businesses. Pre-tax profit improved from £15.9m to £16.4m – slightly below forecast. Fintech software revenues are growing, but housing-related income is under pressure although the mortgage market is recovering. Zeus has maintained its 2024 pre-tax profit forecast at £18.4m.
=====
In 2023, Mortgage Advice Bureau (MAB1) increased revenues by 4% to £239.5m, but pre-tax profit fell 15% to £23.2m. Mortgage completions declined during the year. The number of advisers is 4% lower at 2,158. This year activity has picked up and could be the early stages of a market recovery.
=====
Audio visual products distributor Midwich Group (MIDW) improved revenues by 7% to £1.29bn, while pre-tax profit increased from £34.1m to £38.5m. Organic growth was 1%. Technical products sales rose and improved margins. The full year dividend was 10% higher at 16.5p/share.
=====
Pantheon Resources (PANR) had $9.2m in cash at the end of 2023 and this has subsequently fallen to $8.7m. More cash will be required by the third quarter of 2024. Debt was $29.4m at the end of 2023. The latest $2.45m of quarterly debt repayment and replated interest of $294,000 through the issue of 8.82 million shares. Michael Spencer’s stake has declined from 7.11% to 6.97%. There are plans for a US listing in 2025.
=====
Impax Asset Management (IPX) edged up assets under management to £39.2m at the end of 2023.
=====
Defence company Cohort (HRT) has won a £15.7m contract for Sea Eagle surveillance systems for the Royal Australian Navy and it lasts until 2031.
=====
FD Technologies (FDP) finance director Ryan Preston has acquired 1,735 shares at 1200p each.

Quoted Micro 18 March 2024

• BY: Andrew Hore |
• POSTED: 17/03/2024 |

AQUIS STOCK EXCHANGE

Aquis-quoted cannabidiol products supplier Voyager Life (VOY) has revealed plans to merge with Northern Leaf, which wanted to float on AIM but is running out of money. The deal should value the combined group at £5m – the Voyager Life share price is unchanged at 11p – if deferred consideration is paid in full. That requires Northern Leaf to generate revenues of more than £5m by March 2025. Jersey-based medical cannabis supplier Northern Leaf was the second company to be awarded a UK commercial high THC licence – the other was former AIM company GW Pharmaceuticals. Prior to 2023, the company had raised £16m over three years. Northern Leaf raised £3m in pre-IPO cash via a preference share issue in April 2023, followed by at least £1m raised via a convertible loan note.

Aquis Exchange (AQX) is working with Richard Croft of Martley Capital to establish a new segment of the Aquis Growth Market that focused on real asset backed investments. This could launch in the second half. The Aram segment will be open to commercial property, infrastructure and forestry asset owners. Richard Croft ran a company that was quoted on the International Property Securities Exchange (IPSX), which closed last year. Aquis Exchange has also secured a contract with the Central Bank of Colombia with technology for the operation of the government bond market. This should go live in 2026.

Wishbone Gold (WSBN) says drilling at the 100%-owned Cottesloe project in Western Australia indicates a large sediment hosted base metal mineralised system. These base metals can be used in lithium-ion batteries. There are highly anomalous lead-zinc and silver levels. The drilling has been in the south of the prospect area and drilling will switch to the northern area.

Quantum Exponential Group (QBIT) has adjourned a general meeting to gain shareholder approval for leaving Aquis. Investors have approached the company and offered to make a substantial investment.

Cadence Minerals (KDNC) investee company Evergreen Lithium has identified large lithium targets from soil sampling at the Bynoe project in the Northern Territory, Australia. Cadence Minerals has a 8.7% stake in Evergreen Lithium.

Greece-based dry bulk shipping company Seaenergy is piloting the SulNOxEco fuel conditioner made by SulNOx Group (SNOX).

Marula Mining (MARU) says its partner NyoriGreen has applied for eight graphite mining licences and one prospecting licence in Tanzania. This could be granted in the second quarter.

Substrate AI (SAI) has completed the acquisition of 21% of software developers BINIT and DELTANOVA for a total outlay of Euro2.1m.

Vinanz (BTC) has acquired ten Bitmain Antminer S21 200TH/s miners for North America. They should be operational within four weeks.

SuperSeed Capital (WWW) says the NAV was maintained at 113p/share at the end of 2023. Management expects to make two new investments in the first quarter. Cash was more than £99,000 at the end of 2023.

TruSpine Technologies (TSP) has raised £427,000 through a share placing at 1.5p each and convertible loan note issue. More cash can be raised through further convertible issues. The board is reviewing the business plan.

Cooks Coffee Company (COOK) intends to raise cash to invest in its Esquire chain, digital technology, acquire independent cafes and repay debt. It wants to raise up to NZ$1.76m at the equivalent of 9.55p/share.

Chris Akers continues to build his stake in Asimilar (ASLR) ahead of the exit from the Aquis Stock Exchange. The shareholding rose from 13.4% to 14.1%. Gunsynd (GUN) has sold its 4.75% stake in Oscillate (MUSH). Inteliqo finance director Raymond Smart has acquired 104,126 shares at 15p each.

Martin Walton has stepped down from the board of MaxRets Ventures (MAX) and Luciano Maranzana has been appointed as a director.

AIM

Cloud telephony provider LoopUp Group (LOOP) did reasonably well during Covid lockdowns, but it has found trading difficult since then. Management says it wants to leave AIM because it is difficult to raise cash. LoopUp needs to rise £9m, which management feels it cannot raise on AIM, but it four investors are willing to subscribe £6.2m if LoopUp goes private. In August 2016, the original placing price was 100p when £8.5m. Including that cash, LoopUp has raised more than £70m since joining AIM.

A 90p/share bid for SmartSpace Software (SMRT) has been announced. The bid approach for smart building technology company from Sign In Solutions Inc was revealed earlier this year and the rival bidder pulled out. This recommended offer values SmartSpace Software at £28.4m.

Gaming machines hardware and displays supplier Nexteq (NXQ) reported a 5% drop in 2023 revenues to $114.3m, but improving margins enabled pre-tax profit to rise 45% to $14.7m. The final dividend is 3p/share. The cash pile has increased to $27.9m. Mid-range gaming platform sales grew the most last year, while Densitron has benefited from sales of its newer broadcast equipment. The underlying gaming computer market is growing.

Pawnbroker H&T (HAT) reported strong growth in profit and the trading statement was reassuring for the current year. The pawnbroking book grew 28% to £128.9m. Group 2023 revenues were 27% ahead at £220.8m. Retail and other services were the only parts of the business making a lower profit contribution. Pre-tax profit was up from £19m to £26.4m. This enabled a rise in the dividend from 15p/share to 17p/share.

MTI Wireless Edge (LSE: MWE) was hit by a decline in the Israeli shekel against the US dollar and that meant that 2023 revenues were slightly lower at $45.6m. Pre-tax profit increased from $4.59m to $4.65m. There was a reduction in potential contingent consideration for the remaining shares in PSK, partly offset by a goodwill write down. There is a positive outlook for government demand for PSK services. The balance sheet remains strong with cash of $8.1m. The final dividend has been raised by 3% to 3.1 cents/share.

Ondine Biomedical (OBI) is making faster progress than expected. The Steriwave sterilisation technology is deploying in a further eight healthcare facilities. Ottawa hospital is expanding the use of Steriwave to combat hospital acquired infections in spine surgery patients. A study estimated a net saving of C$2,600 per surgery and infection rate dropped by two-thirds. Discussions continue with potential distributors.

Horizonte Minerals (HZM) revealed that the subsidiary that holds the Araguaia project has been granted an injunction which provides 60 days to work on restructuring and negotiate indebtedness. This provides additional time to deal with creditors. Horizonte Minerals continues to try to negotiate a financing.

Symphony Environmental Technologies (SYM) has been boosted by a positive report from the US Environmental Protection Agency that pro-oxidant masterbatches “could significantly reduce the persistence of plastic pollution without creating undesired by-products”. This is based on a scientific evaluation and is a positive thing for the company’s d2w technology.

Renalytix (RENX) has raised £7.8m at 20p/share and this should be enough to fund the company until the fourth quarter of 2024. This will give time for the formal sale process to make progress. A large diagnostics company has made a bid approach to kidney disease diagnostics developer Renalytix. This sparked the formal sale process, so that the company can assess whether there are other potential bidders. It is also possible that there could be a decision to stay independent.

MAIN MARKET

Packaging manufacturer and distributor Macfarlane Group (MACF) has acquired Allpack Packaging Supplies for up to £3.25m. It manufactures protective packaging, and it will extend the range of the group.

Cybersecurity company Narf Industries (NARF) has won a contract the Intelligence Advanced Research Projects Agency. The $1.3m contract is for the ReSCIND programme to better understand cyber attackers’ decisions. This should eventually lead to additional revenues from related SaaS business with government departments.

R8 Capital Investments (MODE) says that the proposed acquisition of Redwood Financial Partners could take until the end of August.

Quoted Micro 11 March 2024

• BY: Andrew Hore |
• POSTED: 11/03/2024 |

AQUIS STOCK EXCHANGE

Luxury prize draw operator Good Life Plus (GDLF) raised £2.03m via a subscription at 2.25p/share, which is a premium to the market price of 1.875p. The subscriber is Winforton Investments, which is associated with Sportingbet founder Mark Blandford, which will have a 17.9% stake. The cash will be spent on marketing to accelerate growth and subscription numbers. Options have been granted to management at the subscription price. The reverse takeover of Semper Fortis Esports was done at 2p/share.

Cadence Minerals (KDNC) says the capital expenditure requirements for Amapa iron project have been reduced. Project financing talks continue with parties interested in taking a stake in the project. Cadence Minerals has invested $12.1m in Amapa and owns 32.6% of the project. The stake in Hastings Technology Metals has been sold. Cadence Minerals expects to leave the Aquis Stock Exchange on 5 April.

Food company Essentially Group (ESSN) is acquiring Best of Latin Foodstuff Trading for £1.95m. The company sources food from growers in Latin America and supplies hotels and restaurants in the UAE, where Essentially Group already supplies juices and other drinks. The deal will triple the revenues of Essentially Group. The former owner Catalina Onate will become an executive director of Essentially Group.

RentGuarantor Holdings (RGG) has raised £430,000 at 274p/share. The cash will finance the hiring of additional staff. Chief executive Paul Foy is converting £250,000 of convertible loan notes at 210p/share. He still has £250,000 of convertible loan notes.

Investment Evolution (IEC) is expanding into Spain, and it will grant subsidiary MRAL Spain non-exclusive recurring rights to the Mr Amazing Loans brand. Spanish company Investment Evolution Credit, not part of the group, will provide lending technology for a 49% stake in MRAL Spain.

Coinsilium Group Ltd (COIN) has raised £472,500 at 2.5p/share with executive directors subscribing £40,000. There have also been creditor payments of £83,900 in shares. Each new share comes with a warrant exercisable at 3.75p/share. The cash will be invested in Web3 and AI technology and provide working capital.

Marula Mining (MARU) has added to its team in Kenya. Gilbert Kibet is project geologist and Joy Chebet will be graduate geologist. Exploration work will commence on the Larisoro manganese mine in northern Kenya.

Flex Labs (FLEX) says Supernova Digital Assets (SOL), which is associated with its executive chairman, has sold 1.24 million shares and raised £81,425. These sales were between December and February. Supernova Digital Assets plans to return cash to shareholders via a tender offer after Phoenix Digital Assets (PNIX), in which it owns 30 million shares, completes its tender offer. There will have to be a capital reorganisation to enable the tender offer to happen and £242,000 has been raised at 0.1p/share for working capital while the capital changes are arranged.

Kasei Holdings has changed its name to Kasei Digital Assets (KASH). Non-executive director Bryan Coyne bought 75,000 shares at 9.75p each. Gunsynd (GUN) executive director Donald Strang bought three million shares at 0.148p/share.

AIM

Wealth management company Mattioli Woods (MTW) is recommending an 804p/share bid from a company owned by Pollen Street Capital. That values Mattioli Woods at £432m and shareholders will still receive the interim dividend of 9p/share. The 2203-24 prospective multiple at the bid price is less than 17, falling below 15 the following year. When it joined AIM in November 2015 at 132p/share Mattioli Woods was valued at £22.5m.

Challenger Energy (CEG) has secured a farm out deal for the OFF-1 exploration asset, offshore Uruguay with Chevron. Challenger Energy will retain a 40% interest. The oil and gas explorer will receive a cash payment of $12.5m on completion, plus a carry of up to $15m on 3D seismic and 50% of the cost of an exploration well up to a $20m share. However, a well could cost between $50m and $100m according to Zeus, so Challenger Energy could still have to make a cash contribution. Regulatory approvals will take months.

A large diagnostics company has made a bid approach to kidney disease diagnostics developer, Renalytix (RENX). This has sparked a formal sale process, so that the company can assess whether there are other potential bidders. It is also possible that there could be a decision to stay independent. Funding options are being reviewed. Costs have been reduced, but there is currently cash and securities of $3.7m and the cash outflows remain significant so this will only last until the end of April. A share issue and/or debt financing will be required.

Empire Metals (EEE) says study results for the Pitfield project in Western Australia show favourable mineralogy and metallurgy in the high-grade titanium samples. This should simplify processing. Around two-thirds of the contained titanium is titanite, which can be processed at low temperatures. The overall end product would be ideal for a titanium dioxide pigment producer.

Kinovo (KINO) estimates that the costs of the guarantees to complete work on projects taken on by ex-subsidiary DCB will be £2.9m higher than previously expected. Cash flow from the continuing operations will help to fund this but Kinovo will move into net debt by the end of March. This will not affect the pre-exceptional pre-tax profit forecast of £5.8m, up from £4.9m.

LungLife AI (LLAI) raised £1.8m at 35p/share. The lung cancer diagnostics developer is starting the commercialisation process for its diagnostic technology. The cash will fund the evidence generating activities, including an early access programme and clinical utility studies. There should be enough cash until April 2025.

Controlled environment agriculture technology developer Light Science Technologies (LST) has appointed former ITM Power (ITM) boss Dr Graham Cooley as non-executive chairman. He bought a 7.5% stake last year and has been awarded 6.66 million options exercisable at 5p each. Richard Mills, who is boss of the growing systems division of Haygrove and has helped to develop global partnerships, has also joined the board. Myles Halley and Robert Naylor have stepped down. The company has been broadening its activities into fire protection.

Performance nutrition products provider Science in Sport (SIS) is focusing on improving margins rather than growing revenues. This strategy change was in the fourth quarter of 2023, so there was not much time to affect trading. In 2023, revenue dipped from £63.8m to £62.8m due to lower online sales. The Science in Sport brand grew sales by 17%. Liberum trimmed its 2023 revenues estimate, but it also reduced the forecast loss to £4.8m. The 2024 forecast revenues have been cut, but the loss is still forecast to be £3.1m with a move to breakeven in 2025.

Duke Capital (DUKE) has exited another investment with a total return on invested capital of 2.1 times. Street lighting columns manufacturer Fabrikat has been acquired by Metalogalva. Duke Capital has already received £2.7m from Fabrikat and will receive a further £10m after the takeover. There is potential performance-related deferred consideration.

Netcall (NET) continues to build its annual contract values and they have reached £30m. Recurring revenues were three-quarters of the interim revenues. There is rapid growth in cloud business and the cash in the balance sheet enables consistent investment in research and development. Full year pre-tax profit will edge up to £6.7m.

Nexus Infrastructure (NEXS) has focused on its Tamdown civil engineering business and the remaining cash from disposals has come in handy in a tough time for the housebuilding sector. Revenues fell from £98.4m to £88.7m. There is still £14.6m in cash. The final dividend is 2p/share. The order book is recovering and was £57.2m at the end of January 2024. There should be a recovery in the housebuilding sector over the next year, but the timing is uncertain.

Strategic Minerals (SML) sold 4,898 tons from the Cobre magnetite stockpile during February. That is the highest monthly figure since March 2021. Quarterly sales should be around 13,000 tons and annual revenues from Cobre should be around $3.5m.

Floor levelling equipment supplier Somero Enterprises (SOM) reported a 10% dip in revenues to $120.7m because of the weak North American market. Europe and Australia performed better. Pre-tax profit fell from $42.3m to $34.5m and the dividend was reduced from 35.5p/share to 30.6p/share. This year’s revenues are likely to be flat, but additional investment in a new facility in Belgium means that there will be a further decline in pre-tax profit.

Saietta Group (SED) has appointed administrators and following the resignation of Canaccord Genuity as nominated adviser the AIM quotation will be cancelled at the beginning of April. The electric drivetrain technology developer company has failed to secure additional cash and although there is interest in the business no firm buyer has been found.

MAIN MARKET

Ground engineering and piling business Keller (KLR) reported flat revenues of £2.97bn, but operating profit was two-thirds higher at £180.9m - £150m was expected before the recent trading statement. Pre-tax profit jumped from £93.5m to £153.4m. Net debt was one-third lower at £146.2m. The dividend is one-fifth ahead at 45.2p/share. Non-core businesses are being exited. The year-end order book was worth £1.5bn.

Standard list shell Spiritus Mundi (SPMU) has entered into heads of terms for the purchase of InReste, which has developed clinical diagnostic tests and operates a laboratory in Singapore. Spiritus Mundi chairman Zaccheus Peh is the controlling shareholder of InReste and will be the controlling shareholder of the holding company after the acquisition.

IT services provider Triad Group (TRD) is winning new business and it returned to profit in November. There will be initial costs of contracts in the fourth quarter. That means that there will be a greater benefit in the first quarter of the next financial year.

AIM 50 Digest 8 March 2024

• BY: Andrew Hore |
• POSTED: 10/03/2024 |

FD Technologies (FDP) has completed its structural review, and it is splitting into three businesses. The first move is the all-share merger of the MRP business with CONTENTgine, which provides buyer insights and lead generation, and FD Technologies will own 49% of the combined group. MRP generated revenues of £41.5m in 2022-23. The medium-term plan is to divest First Derivative and concentrate on software company KX. In the year to February 2024, group revenues were £247m and EBITDA was at least £22.5m. That excludes MRP. KX has grown annualised recurring revenues more slowly than expected because of longer sales cycles.
=====
Digital marketing technology and services provider Dotdigital (DOTD) continues to make strong progress with the North American business improving its performance following management changes. In the six months to December 2023, revenues rose from £33.8m to £38.7m, while pre-tax profit improved from £7.7m to £8.9m. There was an initial contribution from the Fresh Relevance acquisition, which is being integrated.
The average spend per customer is still rising as larger companies become clients. The fastest growth was in Asia Pacific, although that is still a relatively small part of the business. Even after acquiring, Fresh Relevance, net cash could be £40m at the end of June 2024. Full year pre-tax profit is expected to improve from £15.4m to £16.3m.
=====
Soft drinks maker Nichols (NICL) grew 2023 pre-tax profit by 9% to £27.2m despite inflationary cost pressures. There was strong growth in international sales, while UK sales were slightly higher. There was a strong recovery by the out of home division. The full year dividend is 28.2p/share. Net cash is £67m and there could be scope for a special dividend in the future.
=====
Workwear and catering linen hirer Johnson Service Group (JSG) reported annual figures in line with the previous trading statement. Organic revenues were 16% higher with total revenues 21% ahead at £465.3m. Pre-tax profit rose from £38.2m to £44.5m. The full year dividend has been raised from 2.4p/share to 2.8p/share. The main trading improvement was in the hotel and catering operations, which continued to recover. Acquisitions have increased exposure to healthcare. Chief executive Peter Egan’s wife acquired 65,000 shares at 136.9077p/share. The new Crawley facility is opening later in 2024. This year’s pre-tax profit is forecast to rise to more than £50m.
=====
Grocery distributor Kitwave Group (KITW) continues to grow organically, as well as via acquisition. In the year to October 2023, revenues grew from £503.1m to £602.2m, while underlying pre-tax profit moved up from £18.9m to £27.5m. The acquisition of Wilds of Oldham, where integration will be completed in April, came too late to make a contribution last year. Food service is becoming increasingly important with 30% of revenues last year, up from 25% the year before. It also contributed 43% of EBITDA before central overheads. The total dividend was increased by 21% to 11.2p/share.
=====
CVS Group (CVSG) interims were in line with the trading statement at the beginning of the year. In the six months to December 2023, revenues were 11% ahead at £329.9m, with like-for-like growth of 5.9% and the rest from acquisitions. Profitability was hit by higher wage and other costs. Increased interest charges and a rise in the corporation tax rate held back earnings, which dipped 2% to 44.5p/share. The interim dividend is raised from 7p/share to 7.5p/share.
=====
Brooks Macdonald (BRK) improved interim underlying pre-tax profit from £14.5m to £17.1m thanks to higher profit margins. The interim dividend has been raised from 28p/share to 29p/share. Funds under management increased from £16.8bn to £17.6bn in the six months to December 2023. 
=====
Business recovery services provider Begbies Traynor (BEG) says trading continues to be in line with expectations. Full year pre-tax profit could be £22.5m. A new debt facility has been secured to replace the HSBC facility that matures in August 2025. There is an unchanged revolving credit facility of £25m and a doubled accordion facility of £10m. This last until February 2027. The cost of the facility is similar to the previous one.
=====
Motor distributor Vertu Motors (VTU) says UK used vehicle values have stabilised since October and inventory has been reduced. Fleet and commercial sales grew. The retail market for new vehicles has declined. Overall, like-for-like revenues were 7.8% higher. The full year figures will be published on 15 May and pre-tax profit is expected to be in line with expectations. Net debt will be below £65m. Planned property disposals are at levels above book value. Stifel Nicolaus has been appointed as nominated adviser and broker.
=====
Serica Energy (SQZ) has net proved plus probable reserves of 140 million barrels of oil equivalent. There is an even split of oil and gas reserves. Average net production in January and February was around 45,500 barrels of oil/day. The annual production guidance is between 41,000-48,000 barrels of oil/day. Chairman David Latin bought 20,462 shares at 180.04p each and finance director Martin Copeland has bought an initial 19,000 shares at 179.2p each.
=====
Bathroom retailer Victorian Plumbing (VIC) says customers continue to seek value and average order values have fallen by 3%, but it is gaining market share. Overall revenues are 1% ahead and greater own brand sales are improving gross margins.  A new distribution warehouse will be open in the second half of 2024.
=====
Pantheon Resources (PANR) is in discussions about potentially supplying natural gas to consumers in south central Alaska.
=====
SigmaRoc (SRC) has exercised its option over the UK lime operations of CRH for £133m. Deutsche Numis has been appointed as joint broker. 
=====
Sienna Bidco has received acceptances of 29.8% for its 955p/share bid for Smart Metering Systems (SMS).
=====
Steve Brown, chief executive of accesso Technology (ACSO) sold 55,977 shares at 535p each. Robert Gurner has reduced his stake in Polar Capital (POLR) from 6.98% to 5.96%.

Quoted Micro 4 March 2024

• BY: Andrew Hore |
• POSTED: 03/03/2024 |

AQUIS STOCK EXCHANGE

Marula Mining (MARU) is investing in the established Larisoro manganese mining operation in Kenya by securing a 60% commercial interest with an option to increase it to 70%. There are three shallow open pits and there has been mining for 12 years. The purchase price is £300,000 satisfied by the issue of 2.4 million shares. Marula Mining will provide investment of $1.5m for equipment to enable increased production. Once there is a final agreement another £200,000 will be paid with £300,000 payable after the completion of an exploration programme. The final payment will be £750,000 when 50,000 tonnes of manganese ore is sold. A further £1.25m will be paid if the stake is raised to 70%.

Flow battery storage technology developer Invinity Energy Systems (IES) has secured a new deal with Taiwan-based Everdura, where it will supply the cell stacks and Everdura will handle manufacturing and sales. Performance testing of the first Mistral prototype has been successful and the agreement sets a target of 255MWh of Mistral sales over three years. Additional strategic partners could be announced within six weeks.

Aquis Exchange (AQX), the owner of the Aquis Stock Exchange, has launched conditional order functionality on the Aquis UK and Aquis EU platforms. This enables members to post the same liquidity on multiple venues without the risk of over-trading. This extends the Aquis dark pool, which was launched in 2022. The 2023 results will be published on 21 March. Pre-tax profit is expected to be 16% higher at £5.2m.

Ananda Developments (ANA) says that its subsidiary MRX Medical has signed a drug supply agreement with the University of Edinburgh and NHS Lothian for the provision of MRX1 cannabidiol oil. This will be used in an endometriosis clinical trial, ENDOCAN-1. MRX will have a licence over all IP generated from the trial for development purposes. It could also licence the IP for commercial purposes.

Digital diagnostic products developer EDX Medical Group (EDX) has raised £1.56m at 12p/share, taking the total raised in February to £5.7m. This will be spent on product development. A WRAP retail offer could raise up to £500,000. This closes on 5 March.

Field Systems Design Holdings (FSD) improved interim revenues from £6.7m to £8.8m, while pre-tax profit rose from £57,000 to £84,000. There has been additional work from the water sector and investment is accelerating. There are secured orders of more than £14m, but there is still pressure on margins. There is £2.18m in the bank.

Quantum technology investment company Quantum Exponential Group (QBIT) is seeking shareholder approval to leave the Aquis Stock Exchange. Apparently potential investors in a fund are not happy that the company is publicly traded. There will also be cost savings from leaving the market. Management is considering potential trading platforms for the shares.

KR1 (KR1) had a NAV of 122.97p/share at the end of January. There was £1.8m of income generated from digital assets during the month.

Gunsynd (GUN) investee company Low 6 has traded profitably in the past seven months and 2023-24 revenues are expected to be £4.5m, up from £855,000 the previous year. Debt is being paid off.

Substrate Artificial (SAI) has increased revenues but the loss has more than doubled due to AI development spending.

Silverwood Brands (SLWD) is acquiring Japanese beauty products manufacturer Cosme Science Corporation. It owns skincare brand Dr Baeltz. No purchase price is mentioned.

Mortgage Chat (MCAI) has entered into a software development agreement with Accru Finance. This is for the design of a web-based application for mortgage queries. The payment for development is £15,000 and 200,000 warrants with an exercise price of 5p. California Two Pizza Ventures Inc has cut its stake from 8.05% to 7.54%.

ProBiotix Health (PBX) has entered a partnership with SymbioPharm. The Germany-based microbiome research company and has an established distribution network. It will use ProBiotix Health’s CholBiome CH formulation in branded consumer products.

BWA Group (BWAP) says reconnaissance drilling at the Dehane 2 heavy mineral sands project in Cameroon has been encouraging. Heavy mineral sands have been observed and analysis is awaited. A further £50,000 has been raised.

Edison has initiated research on prize draw operator Good Life Plus (GDLF). Former Tote boss David Craven is chairman.

Investment company Asimilar Group (ASLR) is holding a general meeting on 27 March to gain shareholder approval to leave the Aquis Stock Exchange. Cost savings will help to prevent the need to sell investments.

Chris Akers has reduced his stake in Tap Global Group (TAP) from 3.7% to below 3%. Andrew Offit increased his shareholding in Supernova Digital (SOL) from 11.9% to 14.1%. Nigel Pope has raised his stake in Phoenix Digital Assets (PNIX) from 3.2% to 4.04%. Steven Bennett increased his stake in Oscillate (MUSH) from 4.75% to 7.12%.

AIM

Grocery distributor Kitwave Group (KITW) continues to grow organically, as well as via acquisition. In the year to October 2023, revenues grew from £503.1m to £602.2m, while underlying pre-tax profit moved up from £18.9m to £27.5m. The acquisition of Wilds of Oldham, where integration will be completed in April, came too late to make a contribution last year. Food service is becoming increasingly important with 30% of revenues last year, up from 25% the year before. It also contributed 43% of EBITDA before central overheads. The total dividend was increased by 21% to 11.2p/share.

eEnergy Group (EAAS) has secured a funding facility from National Westminster of up to £40m. This can be used to fund public sector energy transition projects and lasts 12 years. This will lower the cost of capital. Group continuing revenues were £46m in the 18 months to December 2023. EBITDA was between £5.1m to £5.3m.

Avacta (AVCT) initially wanted to raise £20m via a placing at 50p/share and raise a further £6.8m via a retail offer. The total fundraise has been increased from up to £26.8m to up to £32.5m. Even so, the share price slumped 36.6% to 54.5p. There is already £16.6m in the bank and the rate of cash outflow appears to be declining. The cash will fund further progress with dose expansion and the phase 2 efficacy studies for its main clinical programme AVA6000 and additional working capital up until late 2025 / early 2026. Anything raised in excess of £20m will be spent on AVA3996 and further potential Affimer drug development platforms. There are plans to sell the diagnostics division and for a possible Nasdaq listing.

Horizonte Minerals (HZM) says lenders have extended the deferral of interest payments to 29 March. Management is working with lenders and shareholders on full funding for its Araguaia project. The talks could be finalised by June, but additional funding will be required before that. The $24.8m in the bank should last until the middle of April, depending on any cost savings achieved. The Brazilian subsidiary may need to resort to protective measures to protect its cash position. Horizonte Minerals is a guarantor of the subsidiary’s debt, and it may also need to apply for protective measures if the refinancing is not agreed.

Retail software supplier itim Group (ITIM) has released a trading statement following its contract announcement earlier in the week. Revenues of £16.1m were in line with expectations and annualised recurring revenues were steady at £13.2m. Services revenues were higher. The 2023 loss forecast has been trimmed from £1.3m to £1.1m. itim has won a five-year, multi-million pound contract with fashion retailer QUIZ Clothing. This deal provides an opportunity to attract other fashion retailers. The Retail Suite product will be rebranded as UNIFY.

Semiconductors designer EnSilica (ENSI) reported interim revenues 11.5% ahead at £9.6m, but there was a higher pre-tax loss of £309,000. There has been a strong start to the second half and the latest contract with a US electronics manufacturer is worth $20m, which is fully funding engineering fees. Last December’s placing raised £1.56m at 40p/share. The latest placing raised £1.1m at 50p/share and it has received the R&D tax credit for 2023.

Renalytix (RENX) has broadened the US government coverage for kidneyintelX.dkd testing. This is a FDA de Novo marketing authorised test and the status has enabled it to be added to the 10-year Governmentwide acquisition contract for early stage kidney disease bioprognostic testing services. The fee is $950 per reportable result.

Sustainable polymers developer Itaconix (ITX) is continuing its positive momentum in the cleaning sector and developing more products that will fuel growth. Overall revenues were 41% higher at $7.9m, with strong growth in Europe. Cleaning sector revenues were $7.2m. There is $10m in the bank and that should last long enough to reach cash breakeven.

Video editing technology developer Blackbird (BIRD) is raising £1.05m at 6p/share. The cash will help fund the full launch of content creation tool elevate.io. There was £5.9m in cash prior to the fundraising and the company says that there was interest from investors wanting to buy shares.

Verditek (VDTK) has entered into a conditional sale agreement for its solar business for £528,340, which will be satisfied by the surrender of loan notes plus interest. Shareholder approval is required. Bob Holt and John Charlton are joining the board and the existing directors resigning. Both of them were involved in turning around Sureserve. There is £300,000 being raised at 0.075p/share and Bob Holt will loan the company up to £300,000, which is convertible at 0.075p/share. There are plans to raise a further £1.5m and change the name to Net Zero.

MAIN MARKET

Hydrogen Utopia International (HUI) has secured a reverse takeover candidate. British Virgin Islands based Helmond Holding Group, which is changing its name to Essential Energy Holding Group, is a bio-energy company. This expertise could be usefully combined with Hydrogen Utopia International’s waste plastic to hydrogen technology. The deal could be worth £500m.

Aircraft leasing company Avation (AVAP) increased underlying leasing revenues in the six months to December 2023, but operating profit halved from $35.4m to $17.5m, although the difference is mainly down to one-off gains and losses.

Quoted Micro 26 February 2024

• BY: Andrew Hore |
• POSTED: 25/02/2024 |

AQUIS STOCK EXCHANGE

Music manager and promoter All Things Considered (ATC) has raised £2.3m at 105p/share. The company raised £4.15m at 153p/share when it joined Aquis in December 2021. The latest proceeds will be used to develop the artist representation and direct to consumer divisions, plus fund acquisitions. A potential artist management company acquisition has been identified. A new festival is being developed.

Trading was in line with expectations at Arbuthnot Banking Group (ARBB). Shore Capital believes the recovery in profitability due to higher interest charges has broadly already happened. Even so, the broker believes that the current valuation is undemanding.

Visum Technologies (VIS) is planning to acquire Socrates Imaging for Euro2m in cash and shares. Visum has exclusivity until the end of March 2024. Socrates Imaging has developed photo and video capture souvenirs. A final agreement needs to be made and shareholders have to agree to the purchase.

US focused lender Investment Evolution Credit (IEC) generated revenues of £441,000 and pre-tax profit of £268,000 in the six months to November 2023. Cash was £659,000. Consumer lending operations could start in the UK in 2025.

Hydro Hotel Eastbourne (HYDP) reported flat annual revenues of £4.4m, while pre-tax profit fell from £445,000 to £310,000 due to higher cost of sales. Cash is £1.63m. a lower dividend of 12p/share has been announced. Management is trying to secure more direct bookings.

Inteliqo (IQO) has launched the full Langaroo app on Google Play and the App store. Langaroo enables users to understand, speak, message and share information in 130 languages.

Coinsilium (COIN) will be providing global trade exchange platform LC Lite, which has been acquired by Incomlend. Coinsilium will advise on project token economics ahead of a launch later this year. Fees are paid in cryptocurrencies.

Valereum (VLRM) is getting near to completing a blockchain-based digital financial markets infrastructure and this should happen this year. After phase 1 is launched there will be further phases developing on-chain Centralised Securities Depositary. Investment company VLRM Capital will invest in principal trading of equities and cryptocurrencies, as well as staking digital assets. The first fund should be launched by the summer. Valereum chairman James Formoli will provide seed capital of £500,000 to the investment vehicle. Valereum itself wants to raise up to £4m and firm commitments have been received for £2.5m at 6p/share.

Phoenix Digital (PNIX) director Nicholas Lyth bought 1.26 million shares at 3.1p each.

TruSpine Technologies (TSP) has submitted additional documentation to the FDA for the 510(k) application for its Cervi-LOK medical device product. A shareholder requisition notice has been deemed to be invalid.

Hydrogen Future Industries (HFI) has raised £552,000 at 5p/share. The cash will further develop technology and fund a feasibility study for use in the mining sector. Rogue Baron (SHNJ) has issued 7.2 million shares to a service provider for services over a 12-month period.

PanGenomic Health (NARA) intends to withdraw from the Aquis Stock Exchange.

AIM

Safety and compliance services provider Marlowe (MRL) is selling part of its governance, risk and compliance software and service business to Inflexion for an enterprise value of £430m. That will pay off debt and enable £150m plus to be paid to shareholders. That could leave £60m of cash in the business. This could fund acquisitions in the remaining business areas of testing, inspection and certification, and occupational health. Marlowe chief executive Alex Dacre is leaving with the disposal.

Horizonte Minerals (HZM) estimates that it will cost $454m to complete construction and deliver first metal at the Araguaia nickel project. This means that the estimate of overall cost is currently 87% higher than before at $1bn. The company is in talks with shareholders and lenders to secure full funding in the second quarter of 2024. The increased investment requirement means that existing debt facilities will have to be restructured. Short-term funding will be required will the discussions continue. Heikon Investments slashed its shareholding from 7.99% to 0.33%.

Shield Therapeutics (STX) is making progress with Accrufer iron deficiency treatment sales, but a third party overstated the number of prescriptions in 2023. There would have been 90,500 on the previous methodology, which was lower than expected, but the revised figure is 77,000. Year-end cash was $13.9m. Costs are being controlled, but there is no guarantee that there is enough cash to reach breakeven. Shield Therapeutics expects to be cash flow positive in the second half of 2025 instead of later this year.

Electric drivetrain developer Saietta Group (SED) it needs more cash by the end of March, or it will have to find a bidder and that made it the top faller on AIM for the second week in a row. Cash payments have been delayed.

Retail and promotional business Spaceandpeople (SAL) did slightly better than expected in 2023 with revenue of £5.8m, up from £4.7m. The company has changed its revenue recognition policy in the UK and revenues will be recognised on a net rather than gross basis. Without the change the 2023 revenues would have been more than £6.5m. The German business is recovering, and its revenues will still be recognised on a gross basis. There is no change to pre-tax profit - £90,000 is forecast.

Fertiliser producer Harvest Minerals (LON: HMI) says 2023 orders totalled 34,880 tonnes and 28,707 tonnes were invoiced and cash received for 27,024 tonnes. The 2024 orders have reached 7,067 tonnes. Management believe that orders could reach 70,000 tonnes this year, even though the market remains difficult. There was $630,000 in the bank at the end of 2023.

Frasers Group has acquired a 8.9% stake in models and collectibles supplier Hornby (HRN).

Empire Metals (EEE) is focusing on the Pitfield titanium project and is not extending the Gindalbie tribute agreement.

Chamberlin (CMH) has sold its profitable Petrel business for £3m and an exceptional gain of £2m. The cash will be invested in its foundry and machining business. There is £250,00 deferred until repairs are undertaken for the facility that is being sub-let to the purchaser by Chamberlin.

RBG Holdings (RBGP) has raised £2.8m at 9p/share, compared with a market price of 9.25p. This will provide a more solid base from which to grow the remaining legal services and M&A business. New legal partners have been recruited to grow the core operations. There is a £24m HSBC facility, but there will be increased headroom after the cash call. There is enough cash for at least 12 months. It is possible that M&A adviser Convex Capital will be sold to its management.

MAIN MARKET

Aquila Services Group (AQSG) intends to leave the standard list. The housing consultancy business reversed into shell company General Industries in August 2015. The share price is well below the level it was at the time of that deal. Management says that it has missed out on chances to acquire businesses because of a lack of liquidity in the shares. Leaving will save £100,000/year.

Newtyn Management has reduced its stake in Pinewood Technologies (PINE) from 10% to 8.56%. Chief executive William Berman sold 1.46 million shares at 34.85p each.

AIM 50 Digest 23 February 2024

• BY: Andrew Hore |
• POSTED: 25/02/2024 |

Airline and tour operator Jet2 (JET2) edged up its pre-tax profit guidance for the year to March 2024 to £510m-£5125m. There was seat growth of one-fifth in the winter period and higher margins achieved. There should be further growth in seats booked in the summer. Cost pressures could hold back profit next year.
=====
Self-storage sites operator Lok’nStore (LOK) increased first half revenues by 4.9%, helped by higher prices. The balance sheet remains strong. Loan-to-value was 3.7% at the end of July 2023 and it not expected to peak at much more than 13.3% after the investment in new capacity. Part of the debt has been fixed at a lower interest charge and the outlook remains positive for the growing market. Forecast net assets are 1021.4p/share, rising to 1091.9p/share. If interest rates are reduced there could be a further boost to NAV.
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Technology-based IP services provider RWS (RWS) has closed its share repurchase programme having spent £49.7m buying back 5.33% of the share capital at 239.2263p/share. All the shares will be cancelled. The outlook for the business remains the same as before with flat pre-tax profit of £120m the consensus forecast, but a small increase in earnings because of the share buy backs. RGM Capital has reduced its stake to below 3%.
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Pan African Resources (PAF) produced 98,458 ounces of gold in the six months to December 2023. All-in sustaining costs were slightly lower at $1,287/ounce, but the full year figure is likely to be higher. Interim pre-tax profit increased 47% to $42.4m. Net debt rose from $53.7m to $64.3m. The Mogale tailings retreatment project should be up and running by the end of 2024 with annual production of 50,000 ounces at a lower cost than current projects.
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HSBC argues that profit warnings from other electrical and power products suppliers should not be seen as bad for Volex (VLX). Destocking in medical and industrial markets has hit other companies as lead times get back to normal, but Volex has a broader spread of activities. The consumer and electric vehicles have already gone through the destocking phase and data centre demand remains strong. Medical business is mainly based on contract manufacturing, and this is backed by client orders. HSBC maintains its 2023-24 pre-tax profit forecast at $74m, rising to $90m next year. The movement in the US dollar against the pound has hit the share price and the target price has been cut by 4% to 480p, leaving plenty of upside from 289p.
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Panmure Gordon initiated research on soft drinks maker Nichols (NICL) with a buy recommendation and a target price of 1260p.

Quoted Micro 19 February 2024

• BY: Andrew Hore |
• POSTED: 18/02/2024 |

AQUIS STOCK EXCHANGE

Vehicle electrification technology developer Equipmake (EQIP) has raised £4m at 6p/share and a further £110,000 from a retail offer. This will fund research and development for the international market and finding opportunities in the US. There is also grant funding of up to £4.57m. The order book is valued at £13.1m and mainly relates to the bus market. The cash will last at least 12 months.

Coinsilium (COIN) says that the SalitaFinance AI-driven platform, where it has a 6.7% stake, has received investment from a top ten global infrastructure bank. Another investee company, crypto friendly payments company Greengage Global has secured an agreement with a new regulated partner and this will enable the earlier launch of Greengage’s US dollar currency accounts along with forex and SWIFT payments services for clients.

Investment Evolution Credit (IEC) has appointed Axis Capital Markets as corporate broker to help to raise up to £100m via the previously announced bond offering. The share price rose by 50% on the week to 60p. The December 2023 admission price was 4.5p.

RentGuarantor (RGG) has entered a three-year marketing deal with student letting company University Living. The rent guarantee service will be promoted to residential tenants. This will broaden access to the market.

Mortgage Chat (MCAI) has raised £105,000 at 0.05p each. The strategy is moving towards the development of an artificial intelligence platform called Mortgage Chat connecting borrowers and lenders.

Brewer Adnams (ADB) has asked advisers to explore options for funding growth plans.

Marula Mining (MARU) has published a shareholder circular to gain approval for a subscription by AUO Commercial Brokerage. The first subscription will raise £3.75m at 3.75p/share with further subscriptions potentially raising £4.78m at 10p/share. The general meeting is on 8 March.

BWA Group (BWAP) has come to a settlement with St-Georges Eco-Mining Corp, which will convert some loan notes into 146.2 million shares and cancel £1.42m of convertible notes.  Connected parties will also be encouraged to rerun up to £1.8m of convertible notes.

TruSpine Technologies (TSP) has entered into a £50,000 loan note agreement with Martin Armstrong, a former chairman. This can be converted into shares at 2.5p each.

Lord Nicholas Monson has increased his stake in Lift Global Ventures (LFT) from 4.96% to 5.33%.

AIM

Katoro Gold (KAT) has raised £750,000 at 0.1p/share, along with warrants exercisable at 0.2p/share that could raise up to £1.5m, and it is planning board changes. Executive chairman Louis Coetzee is stepping down. Outstanding board fees of £91,000 have been reduced to £63,600. A new strategy will involve maximising value from existing interests and seeking new opportunities in critical metals, including uranium. Paul Johnson, who has previously run Power Metal Resources and Metal Tiger has been appointed strategic consultant. The company plans to change its name to Katoro Global Resources.

Good Energy (GOOD) is building on its energy efficiency services business through the acquisition of Maidstone-based JPS Renewable Energy, which is a solar and storage installation business. The initial consideration is £7m in cash and shares with deferred consideration of up to £6.75m over two years. The vendors placed 842,000 of the 1.32 million shares issued at 250p each. JPS generated revenues of £12.4m and pre-tax profit of £600,000 in the year to April 2023 and pre-tax profit could increase to £1.3m this year.

Neometals (NMT) says a review of the Spargos project in Western Australia indicates low potential for lithium-bearing pegmatites. Sampling did not produce any significant results. There will be field mapping to investigate two potassium anomalies and a strategic review of the project.

Gattaca (GATC) is still finding the permanent staffing market difficult, and first half net fee income is expected to decline 16% to £18.9m. This has led to downgrades for full year net fee income, but cost cutting has meant that the full year pre-tax profit forecast is maintained at £3m. The figures will be second half weighted.

Harvest Minerals (HMI) received fertiliser orders for 34,880 tonnes, of which 28,707 tonnes were invoiced in 2023. There have been 1,250 tonnes invoiced so far in 2024. Sales guidance is 70,000 tonnes for 2024. Cash was $630,000 at the end of 2023. Cost are being reduced.

Trading in Artemis Resources (ARV) shares has resumed on ASX. Trading was halted on 8 February although it continued on AIM. Artemis Resources published an update on the West Pilbara project exploration. This shows potential sub vertical orientation of pegmatites at Kobe and Osborne. The first drill hole potentially stopped short of the Osborne target. A drilling programme to test Osborne is planned for March to test near surface lithium rich zones.

M&A activity remains weak at professional services network operator DSW Capital (DSW) and that will hit this year’s profit. There appeared to be an improving trend, but January was poor and that hit network revenues. February is also set to be disappointing. The other activities are trading well. The 2023-24 pre-tax profit will be between £600,000 and £700,000. There was cash of £2.7m at the end of January 2024.

Baron Oil (BOIL) has raised £3m at 0.05p/share, while the retail offer generated £260,000. This will fund drilling preparations for the Chuditch-2 appraisal well south of Timor-Leste, which is planned for the fourth quarter. Shell discovered the Chuditch-1 gas field in the Chuditch production sharing contract in 1998. Timor-Leste authorities recently approved the farm-up agreement with TIMOR GAP Chuditch Unipessoal relating to the production sharing contract. Baron Oil’s subsidiary will retain 60% of the production sharing contract and the partner, which has increased its interest from 25% to 40%, will be responsible for 20% of all costs, including the Chuditch-2 appraisal well.

Beowulf Mining (BEM) is raising cash to invest in Kallak iron ore project in northern Sweden and the graphite anode materials plant in Finland. There will be a rights issue and a PrimaryBid retail offer in the UK raising up to £7.5m in total. A formal decision on the fundraising and pricing will be made on 7 March. A capital reorganisation will reduce the par value of the shares from 1p to 0.1p. The cash will be spent on the Kallak pre-feasibility study and environmental studies, which will enable the application for an environmental permit.

Bushveld Minerals (BMN) has received a $4m payment from Southern Point Resources, which will be repaid when the $12.5m subscription is finally received. This takes the interest free loans to $6m, which have been paid to a South African subsidiary. Southern Point Resources says that the subscription will be paid by 28 February. The financial position of the company is being managed so that vanadium production, which has restarted, can continue until the rest of the cash is received.

Coal miner MC Mining (MCM) advises shareholders not to accept the A$0.16/ share bid from a company controlled by the majority shareholders. One condition is the acceptance by 50.1% of the shares not owned by the bidder.

Crossword Cybersecurity (CCS) has entered a partnership agreement with IT distributor TD SYNNEX, which will sell Crossword’s Trillion threat intelligence platform.

MAIN MARKET

Pendragon has completed the sale of its motor distributor business and will focus on its motor dealer software. The name has changed to Pinewood Technologies (PINE).

Better contract news from data integrity and banking integration software provider Gresham Technologies (GHT), which has secured a $1.5m contract for its Claretti software. The customer is described as a cash management and retail digital services provider. The deal covers the US and is for five years.

HeiQ (HEIQ) is acquiring a manufacturing facility in Portugal to commercialise the AeoniQ synthetic filament yarns technology. Commercial production could start by 2026. Capacity will be 3,000 tons.

HeiQ wants to raise £2.44m. A placing raised £685,000 at 8.7p/share and there is a retail offer of up to £75,000 closing on 22 February. The rest of the cash will come from an issue of non-interest bearing convertible loan notes with a conversion price of 8.7p/share. Revenues were $41m in 2023, but EBITDA will be lower than expected. Net debt is $2m. The year end is being changed from December to June 2024.

XP Power (XPP) says that weak demand meant that 2023 figures will be well below expectations. The 2024 results will be second half weighted. Net debt was £112.7m at the end of 2023.

Carclo (CAR) is closing its Tucson facility and manufacturing will be moved to Pennsylvania.

BSF Enterprise (BSFA) is setting up a separate subsidiary to develop a cultivated leather business.

Dispensa (DISP), originally known as Zamaz, is calling a general meeting on 14 March to gain shareholder approval for the delisting from the standard list.

Quoted Micro 12 February 2024

• BY: Andrew Hore |
• POSTED: 11/02/2024 |

AQUIS STOCK EXCHANGE

RentGuarantor (RCG) 2023 revenues were 3% ahead of Zeus forecasts and expects to upgrade its 2024 forecast in April after the accounts are released. The 2023 revenues were 73% higher at £742,000. There was a 57% increase in tenant contracts to 1,124. A new insurance partner has increased insurance cover for rent arrears at a lower cost. Zeus has an estimated discounted cash flow valuation of 303p/share. The current 2024 forecast is revenues of £3.6m and breakeven.

All Things Considered (ATC) has acquired a 50% stake in Mckeown Asset, which has concert and festival management interests, as well as 40% of Something Records and 10% of Brighton venue Concorde 2 (it has an option to increase the stake to up to 70%). The initial payment is £475,000 in cash and James Mckeown intends to spend £25,000 in All Things Considered shares. There is potential deferred consideration of £200,000. Mckeown Assets NAV was £243,000 at the end of April 2023, including investments valued at £125,000.

EPE Special Opportunities (EO.P) had an NAV of 324p/share. Holdings in Atlantic Credit Opportunities Fund and Prelude Structured Alternatives Master Fund have been sold and EPIC Acquisition Corp is being wound up because it failed to find a suitable acquisition. There was cash of £15.3m at the end of January 2024. The £4m of unsecured loan notes has been extended to 23 July 2024. There are 12.5 million ZDP shares in issue that mature at the end of 2026.

VSA Capital (VSA) and Andrew Gerrie and Alison Hawksley have settled their legal dispute with Silverwood Brands (SLWD) that relates to 2.28 million shares that were transferred from the two individuals to VSA Capital. The agreement should enable the transaction to sell Lush shares to Silverwood Brands to be unwound.

Investment Evolution Credit (IEC) says that it should take between ten and twelve months to gain FCA authorisation to provide consumer loans. It previously thought that it would take up to 18 months. The loans will be offered at annual percentage rates of between 19.9% and 59.9%. This is expected to improve revenues and profit. Investment Evolution Credit has launched an offering of up to £100m of 15% fixed rate unsecured bonds that last five years. This will fund the US loan portfolio and then UK loans when approvals are granted.

The NAV of Gledhow Investments (GDH) fell from £1.7m to £1.41m at the end of September 2023, including £174,000 in cash. The cash figure has increased to £280,000. There is 51% of the investment portfolio invested in AIM, one-third in Aquis and the rest in pre-IPO investments.

Diagnostic products developer EDX Medical Group (EDX) is raising £4.01m via a subscription at 12p/share, which is a premium to the market price. Founder Professor Chris Evans subscribed for 6.25 million shares. The other investors were high net worth individuals.

Oscillate (MUSH) has a 12.75% stake in Psych Capital (PSY). The investment company is pleased about the news that Psych Capital has been awarded a grant for a phase 1 POC study in Israel of psilocybin-assisted therapy for anorexia nervosa patients.

Marula Mining (MARU) has amended the terms of the Q Global Commodities subscription of up to £3.75m at 3.75p/share so that the money can be subscribed by another affiliate. This cash will be invested in battery metals mining projects in Africa. There is an option to subscribe up to a further £4.78m at 10p/share.

Substrate Artificial Intelligence (SAI) has an investment agreement with Indico Investments and Management, which can provide up to Euro2m with shares issued at a discount of 10% to the relevant share price. There is 2% commission on the total amount, plus 15% commission for each capital increase.

Newbury Racecourse (NYR) non-executive director Dominic J Burke bought 3,000 shares at 700p each, taking his stake to 6.51%. Arbuthnot Banking Group (ARBB) chairman and chief executive Sir Henry Angest acquired 100,000 shares at 990p each, taking his stake to 57.3% of the voting shares.

Clean Invest Africa (CIA) has raised £200,000 at 0.35p each.

Alex Albertini has been appointed as a non-executive director of SulNOx Group (SNOX). He has experience in the shipping industry.

AIM

Adam Wilson is stepping down as chief executive of coal supplier Bens Creek (BEN) once a replacement has been found. Lower metallurgical coal prices led to a shortage of cash last year and $13 of convertible loan notes were issued to 29.9% shareholder Avani Resources. That cash should have lasted until the end of 2024. The company blames poor weather in West Virginia for interrupting production and delaying trains transporting coal. Avani Resources has offered another $5m as a working capital facility. While details are worked out Avani has advanced $1.25m. A 12-month offtake agreement for 40,000 short tons of coal is being negotiated with Avani Resources.

Futura Medical (FUM) says 2023 product revenues were around £3.1m following the launch of erectile dysfunction treatment Eroxon in the UK and Belgium. It has already built up a 20% market share. A $4m upfront payment from Haleon for US rights will be recognised in 2024. There was cash of £7.7m at the end of 2023.

Redx Pharma (REDX) is selling global rights to the preclinical-stage KRAS (Kirsten rat sarcoma virus) inhibitor programme to Jazz Pharmaceuticals for an upfront payment of $10m and potential milestone payments of up to $870m. Redx Pharmaceuticals should have enough cash to get into 2025.

In-game advertising technology provider Bidstack (BIDS) has issued additional convertible loan notes to Irdeto because it has not been able to provide information to Bidstack to publish a shareholder circular. Shareholder approval is required for the convertible issue. Bidstack had drawn down £600,000 from the convertible loan note facility but does not expect to make any more draw downs. The €3m payment from commercial partner Azerion is running out with cash of £1.4m at the end of January and this will run out by the end of March. A strategic review has been initiated.

Building products supplier Alumasc (ALU) has traded strongly, even though the underlying markets, particularly housebuilding, have been weak. Interim revenues increased 6% to £47.8m and pre-tax profit was 14% higher at £6.3m. Water Management increased its profit contribution with recent acquisition ARP only becoming part of the group late in the period. New products helped the housebuilding division. Additional costs on sales meant that the building envelope division profit was lower. A major export order has been delayed, but full year pre-tax profit could still improve from £11.2m to £12.1m.

Cleaning services provider React (REAT) increased its pre-tax profit from £700,000 to £1.8m in the year to September 2023. Revenues grew by 43% and there was a full contribution from the LaddersFree acquisition. Net cash is £1.3m. Current trading is at record levels. Pre-tax profit is expected to grow to £2.1m this year. This has been trimmed because of additional investment in systems to cope with further growth. Tax losses are running out, so the reported earnings will be lower despite the underlying progress.

Semiconductors developer Sondrel (SND) revealed that it had received £1.5m form the customer where payments had been delayed. This has enabled deferred payments to be made by Sondrel. New business opportunities are being negotiated. Even so, Sondrel needs to raise more cash before the end of March to put it on a sound financial footing.

Bushveld Minerals (BMN) has suspended full year guidance until it receives funds from Southern Point Resources relating to last year’s fundraising. Full year production fell 3% to 3,714mt, but sales rose 13% to 4,051mt. However, production has been affected by the lack of cash and it fell to 267mt in January. Southern Point Resources owes more than $10m and claims processing delays and the default of a funding partner have delayed the payment. The payment should be made by the end of February.

Cloud computing services provider Beeks Financial Cloud (BKS) has secured a significant multi-year contract with one of the world’s largest global exchange groups. The contract requires regulatory approval so it may not make a contribution in the year to June 2024. The value of the deal was not disclosed but it could be worth £3m or more each year. Another contract has been increased in size. Canaccord Genuity is maintaining its 2023-24 pre-tax profit forecast at £4.1m and increasing the 2024-25 figure from £5.3m to £6m.

Verditek (VDTK) has agreed terms to sell its solar business and become a shell. The buyers are the holders of secured convertible loan notes in return for the surrender of £528,340 loan notes and £50,000 in cash. The company will transfer the shareholder loan to the new company for nominal consideration. The bondholders are providing Verditek with a loan facility of up to €100,000 to fund the operating costs of the solar business. If the deal does not go ahead by the end of February Verditek will be running out of cash. A new management team is interested in joining Verditek and there are plans to raise £300,000.

RF components and systems developer Filtronic (FTC) has won a £7.8m contract for ground station antenna amplifiers for a leading global supplier of LEO satellite communications equipment. It also released interims with revenues 1% ahead at £8.5m. The cost base has been increased to cope with future growth, so there was a swing from profit to loss. Cavendish has raised its full year revenues expectations from £20.5m to £23.5m and pre-tax profit estimate has more than trebled from £800,000 to £2.5m.

Helium One Global (HE1) says Itumbula West-1 has flowed a high concentration of helium to surface. A measured helium concentration of up to 4.7% equates to nearly 9,000 times normal background levels. The well results will be evaluated. The company raised £4.7m at 1.5p, which is still a 650% premium to the share price prior to positive drilling news.

Artemis Resources (ARV) has discovered spodumene bearing pegmatites with Li2O grades of up to 1.82% at the Mount Marie prospect in the Greater Carlow project. This is the first tangible proof of spodumene bearing pegmatites and it could be part of a lithium corridor according to WH Ireland. Assay information is being assessed and should be published on 13 February.

MAIN MARKET

S and U (SUS) says tough trading conditions are hampering trading. Advances by motor finance provider Advantage were 7% lower than last year. In the second half of 2023-24 90% of due payments were made, down from 94% in the previous period. This means that pre-tax profit will be 10%-15% below expectations of £38m. Net receivables for Aspen Bridging have increased from £114m to £130m. The second interim dividend will be raised from 35p/share to 38p/share.

A new African investor has invested $500,000 in Blencowe Resources (BRES) at 5p/share and a further $2.5m has been conditionally raised at the same price.

First Tin (1SN) says sampling at the Taronga tin project confirms extensions to known mineralisation to the northeast and southwest and identified other potential targets.

AIM 50 Digest 9 February 2024

• BY: Andrew Hore |
• POSTED: 11/02/2024 |

Online marketing and domain name services provider Team Internet (TIG) continues to beat expectations. Both divisions are growing in double digits and the full year trading statement reveals that EBITDA was $96m in 2023, up from $86m the previous year. Net debt was $74m after $40m of share buy backs and $22m of contingent consideration. The new year has started well, but Zeus has not changed its 2024 forecast ahead of the full 2023 figures, which will be published on 18 March. Share buy backs will help earnings grow faster than profit and the 2024 forecast is 25.1 cents/share, up from 22.4 cents/share. Net debt is expected to fall to $21.8m.
=====
Shares in Serica Energy (SQZ) set 2024 production guidance at between 41,000 and 48,000 barrels of oil equivalent/day. Last year’s proforma production was 40,121boe/day. The Erskine field has been shut in since 25 January because of a compressor problem and production is not expected to restart until March. Mitch Flegg is stepping down as chief executive after the publication of the 2023 results. Even so, he bought 75,000 shares at 190p each. Sian Rees acquired 2,114 shares at 187p each, David Latin 117,255 shares at 184p each and Malcolm Webb 16,367 shares at 183p each.
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Fintel (FNTL) is acquiring Owen James Events, which provides strategic engagement events for the UK financial services sector. The upfront cash payment is £700,000. Net cash was £1.7m before the acquisition. SaaS and subscription revenues generated £37.6m out of core revenues of £56.6m. Zeus forecasts 2023 pre-tax profit of £16.9m, rising to £18.4m in 2024. The results will be published on 19 March.
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Electrolyser technology developer ITM Power (ITM) increased interim revenues from £2m to £8.9m, while the loss was reduced by more than two-thirds to £18.2m partly due to additional interest income. There was a £27.5m outflow from operating activities and cash was £253.7m at the end of October 2023. Management says that short-term economic concerns are slowing down the growth of the green hydrogen market.
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Digital marketing technology and services provider Dotdigital (DOTD) grew organically by 11% in the six months to December 2023. This is faster than the market and is helped by broadening the services on offer. Overall sales were 15% ahead at £38.7m. Pre-tax profit is in line with expectations. Full year pre-tax profit is expected to improve from £15.4m to £16m and there is potential for this to be beaten.
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Pan African Resources (PAF) says headline 2023 earnings will be between 2.14 cents/share and 2.3 cents/share. Revenues were 24% higher at $193.9m.
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Engineering services provider Renew Holdings (RNWH) is continuing its momentum from last year. First quarter trading is in line with expectations. The order book is worth £874m, with engineering services contribution £795m and building the rest.
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Alliance Pharma (APH) improved underlying 2023 revenues by 6% to £182.7m. Kelo-Cote revenues were much higher in the second half, although Amberen sales were lower partly due to the loss of a discount retailer. Free cash flow was one-third higher at £21.1m. Net debt reduced to £92.4m.
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Flooring supplier James Halstead (JHD) expected to report Improved interim figures. A 15%-20% increase is anticipated. The full year dividend should continue to increase.
=====
accesso Technology (ACSO) grew 2023 revenues by 6% to $148.5m and profit will be in line with expectations. This year’s revenues are expected to grow by 9%, helped by the recent ticketing acquisition, and margins should improve.
=====
Big Technologies (BIG) has denied claims that chief executive Sara Murray has undisclosed interests in certain shareholders of the company. This related to a claim by former shareholders of Buddi. Finance director Daren Morris bought 24,000 shares at 130p each and then sold 13,000 at 127p each. 
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Defence equipment and services supplier Cohort (CHRT) has won a £15.1m contract for lightweight Torpedo Launch Systems for a major vessel programme.
=====
Dev Dhiman has taken up the role of chief executive of identity services provider GB Group (GBG). Third quarter trading is in line with expectations.
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Vets practices operator CVS Group (CVSG) non-exec Joanne Shaw bought an initial 589 shares at 1696.1p each. Impax Asset Management (IPX) chief executive Ian Simm sold 16,667 shares at 521.5p each in order to pay tax liabilities. Polar Capital (POLR) finance director Samir Ayub sold 6,786 shares at 442.1375p each. Michael Spencer has increased his stake in Pantheon Resources (PANR) from 6.06% to 7.11%.

Quoted Micro 5 February 2024

• BY: Andrew Hore |
• POSTED: 05/02/2024 |

AQUIS STOCK EXCHANGE

Interim figures from DXS International (DXSP) show a 2.5% improvement in revenues to £1.69m, while higher amortisation charges led to an increased loss of £258,000. The healthcare IT company hade £386,000 in cash at the end of October 2023. Hybridan has trimmed its full year revenues forecast to £3.8m and expects a 2023-24 loss.

Silverwood Brands (SLWD) reported revenues of £5.85m for the first half of 2023. The loss was reduced from £299,000 to £189,000. The Lush transaction is still being unwound. Net debt was £8.6m. Chief executive Andrew Gerrie is subscribing £1m for shares at 54p each. The unsecured loan of £4.4m will be converted at the same price and the accrued interest will also be converted at the lower of 54p and the average closing price for five days prior to conversion. The share price is suspended at 30p.

Helium Ventures (HEV) had cash of £116,000 and net assets of £229,000 at the end of October 2023. There were costs relating to the cancelled acquisition of Trackimo. There is still an investment in Trackimo, which is expected to float on AIM.

Hydrogen Future Industries (HFI) had a cash outflow from operations of £963,000 in the year to July 2023. Cash was reduced to £262,000. The company is making progress with the testing of wind turbine technology and its electrolyser technology. The wind turbine technology has better performance, so far, than existing rivals. A mining sector feasibility study for hydrogen and clean water production has commenced.

Capital for Companies (CFCP) increased revenues from £492,000 to £887,000 in the year to August 2023. NAV was 81.99p/share. It was 81.67p/share at the end of November 2023. There was cash of £1.99m and loan receivables of £2.43m at the end of August 2023. A final dividend of 2p/share is payable on 8 March.

KR1 (KR1) had NAV of 109.91p/share at the end of 2023. Income from digital assets was £1.58m in December.

Shaun Hinds will become chief executive of Newbury Racecourse (NYR) on 3 June. Julian Thick has stepped down as chief executive. Mark Leigh will be interim chief executive.

Cadence Minerals (KNDR) investee company Hastings Technology Metals has signed an agreement with the investment agency of Estonia to collaborate on a joint scoping study for the potential development of downstream rare earth processing opportunities. The main focus is the Yangibana project.

Voyager Life (VOY) has acquired CBD brand Amphora Health for £50,000 in shares at 12p each. This payment could double if Amphora product sales exceed £100,000 over 24 months. In the year to July 2022, revenues were £69,000. No increase in group overheads will be required and manufacturing will be brought in house.

Quantum Exponential (QBIT) had net assets of £3.11m at the end of October 2023, including £831,000 in cash. There are seven portfolio investments. A European headquarters has been established in Copenhagen.

Psych Capital (PSY) had £133,000 in cash after a £254,000 cash outflow from operations in the six months to October 2023.

Valereum (VLRM) has completed the acquisition of GSX Group.

Digby Try has cut his stake in Supernova Digital Assets (SOL) from 5.1% to 0.36%.

AIM

Tekcapital (TEK) investee company MicroSalt (LON: SALT) raised £3.14m at 43p/share when it joined AIM on 1 February and immediately went to a significant premium with the share price ending the week at 55p, valuing the company at £31.4m. That values the Tekcapital’s 77.2% stake at £24.2m, which is more than its market capitalisation.

Trading has recommenced in Location Sciences (LSAI) shares after the publication of readmission document for the proposed acquisition of Sorted Holdings for nominal consideration and the assumption of £4.7m of debt. Sorted Group has developed delivery software for ecommerce businesses. There will be a one-for-625 share consolidation and £2m will be raised at 87.5p/share. The company’s name will be changed to Sorted Group Holdings. The pre-consolidation share price recovered 35.7% to 0.19p – the placing price is the pre-consolidation equivalent of 0.14p.

Eyewear manufacturer Inspecs (SPEC) says the improvement in profit in 2023 was not as great as expected because of weak December trading. EBITDA is likely to rise from £15.5m to £18m, whereas £20m was the consensus forecast. Revenues were flat. Net debt was £24.3m. The results will be published on 17 April. A Norwegian distributor has been acquired and the new Vietnam factory opens in the first half of 2024.

Symphony Environmental Technologies (SYM) has failed to get the EU court to declare EU legislation invalid. This legislation relates to the d2w biodegradable technology, which is not included in the single-use plastic directive and the company says that this has hampered the take-up of the technology.

Respiration equipment supplier Inspiration Healthcare (IHC) had a poor fourth quarter and full year revenues will be £6m lower than expected at £37m, down from £41m the previous year. That will result in a full year loss. Net debt is higher than anticipated at £6.4m. There were contract delays for neonatal products. This business should happen in 2024-25 and a rebound to a pre-tax profit of £2.9m is forecast, although that is lower than the previous estimate of £4.7m.

Midlands-based property investor Real Estate Investors (RLE) has reduced net debt to £46.3m after property sales. Even so, NAV has fallen to 58.4p/share. There remains demand from buyers for smaller properties that are of no interest to institutions. Loan-to-value is currently a comfortable 31%. Executive pay is being cut by one-third.

Potash project developer Emmerson (EML) says the scoping study of the Khemisset potash project in Morocco has enhanced economic returns and reduced the environmental impact. This is based on a ground-breaking processing method, which reduces water consumption by 50%. It also increases the recovery rate. Post-tax NPV8 is increased by 120% to $2.2bn. Annual EBITDA could be $440m and all0in sustaining cost is $163/tonne. Project capex is $525m.

Education administration software and services provider Tribal Group (TRB) says 2023 revenues will be marginally ahead of expectations. Overall annual recurring revenues are 9% ahead at £54.5m. The dispute with Nanyang Technology University continues. Net debt was £7.2m at the end of 2023. Cost savings should help profit to improve. The 74p/share offer from Ellucian lapsed.

Transport management software provider Microlise (SAAS) did better than expected in 2023 and this has sparked upgrades for 2024. Full year revenues were 13% higher at £71.6m with annualised recurring revenues 11% ahead at £47.2m – churn rates are low. Pre-tax profit is estimated to have improved from £4.9m to £5.5m. In 2024, it could reach £6.7m. Microlise completed the acquisition of Enterprise Software Systems earlier this month.

Online gaming company B90 Holdings (B90) spent more on marketing than expected in 2023. Zeus has raised its estimated loss from €2.7m to €2.9m, but it has maintained its forecast 2024 pre-tax profit at €400,000.

MAIN MARKET

LED lighting and wiring accessories supplier Luceco (LUCE) did better than expected in the fourth quarter. Underlying 2023 pre-tax profit should be between £23.5m and £24m, up from £22m in 2022. The repair and maintenance market is still relatively weak, but Luceco is in a good position to benefit from an upturn.

Shell company Associated British Engineering (ASBE) had net assets of £469,000 at the end of September 2023, including £433,000 of cash.

Pendragon (PDG) has completed the sale of its motor dealerships, and it is concentrating on its software business.

Quoted Micro 29 January 2024

• BY: Andrew Hore |
• POSTED: 28/01/2024 |

AQUIS STOCK EXCHANGE

Aquis Exchange (AQX), the owner of the Aquis Stock Exchange, reported a 12% increase in revenues to £22.6m in 2023. All four divisions raised their contribution with the Aquis Stock Exchange revenues rising from £1.6m to £1.7m. Group pre-tax profit improved 16% to £5.2m. Cash is £14.8m. The full figures will be published on 21 March.

Property investor Ace Liberty and Stone (ALSP) edged up rental income to £2.71m in the six months to October 2023. Higher finance costs meant that the company slipped into loss even though admin costs were lower. NAV is £35.2m.

Fibre optic cables materials supplier Unigel (UNX) is acquiring 40% of Unigel (UK) for £1.3m payable in three instalments. That will take the stake to 100%.

Fenikso Ltd (FNK) has received a further $806,299 for partial repayment of a loan to Lekoil. This leaves $44.4m owed. Finkso owes $13.9m to Savannah Energy Investments.

Bitcoin miner Vinanz Ltd (BTC) is deploying Luxor Firmware in Labrador, Canada. These bitcoin mining machines are improving their productivity, and this firmware will further boost productivity.

Marula Mining (MARU) has commissioned the Rados Ore Sorter at the Blesberg lithium and tantalum mine. First production and bulk testing has commenced. This method of processing does not use chemical reagents.

Rogue Baron (SHNJ) has issued 3.93 million share to pay consultants and creditors.

Ananda Developments (ANA) has appointed Professor Cherry Wainwright and Dr Katie Sykes as scientific advisers.

Western Selection left Aquis on 26 January.

Pharma C Investments has changed its name to Mortgage Chat (MCAI). AQRU has changed its name to Supernova Digital Assets (SOL). NFT Investments has changed its name to Phoenix Digital Assets (PNIX).

AIM

SmartSpace Software (SMRT) has received a bid approach from Sign In Solutions Inc at an offer price of 90p/share. Management says that it would back this offer, which values SmartSpace Software at £26m. This bid is subject to due diligence. Late last year, venue management software supplier Skedda Inc proposed an 82p/share offer for the smart building technology. JO Hambro, which owns 8.3% of the company, was supportive of the Skedda offer.

Legal service provider NAHL Group (NAH) performed in line with expectations in 2023 and pre-tax profit is estimated to be around £1.5m. National Accident Law is maturing and cash generation increasing. Critical care remains the main profit generator and National Accident Helpline personal injury leads remain subdued. Debt is declining. Allenby forecasts a 2024 pre-tax profit of £4.2m.

Energy supplier Yu Group (YU.) has sparked another upgrade with its latest trading statement, which reveals 2023 trading was well above previous estimates. Liberum raised its pre-tax profit estimate from £32.9m to £41m. Cost reductions, hedging and operating leverage all helped to boost margins. The dividend estimate has jumped from 6.4p/share to 17.2p/share.

Revolution Bars Group (RBG) interims were hit by reduced student spending at its eponymous bar chain, while costs are increasing. The Peach outlets are performing in line with expectations. Cavendish has cut full year revenues estimates from £174m to £150m. The loss is likely to be £5.8m and losses are set to continue for the following two years. Net debt is £20.3m and could reach £25.7m by the end of June 2024. The debt facilities total £30m and capital investment is likely to be reduced.

Film localisation services provider Zoo Digital (ZOO) says that delays in film and television productions mean that there will be a higher than expected loss in 2023-24. This is because there was a slower than expected pick up in work after the writers’ strike ended. There should be an improvement in workflow after the end of the financial year.

The Swedish government is backing the Kallak iron ore project of Beowulf Mining (BEM) share price by 53.8% to 2p. The local indigenous community had objected to the development of the project because of potential harm to reindeer husbandry, but the government says the original award of the licence is politically and commercially important for Sweden and Europe. The community still has an outstanding legal action against the government.

Radiation and bio-detection systems supplier Kromek (KMK) has received an order of ore than £1.4m to supply D3M detectors and associated networkable services and this will be fulfilled in the current financial year. The detectors are for the rescEU stockpile that the European Commission is building up to respond to chemical and nuclear risks.

CT Automotive (CTA), which supplies interior components to the automotive sector, returned to profit last year and trading was ahead of expectations. Liberum has upgraded its 2023 forecast from $135m to $140.7m, while pre-tax profit has been reduced from $8.7m to $8.2m. Even so, margins are improving. Net debt is much lower than previously forecast at $6.1m.

Watkin Jones (WJG) reported full year results in line with expectations. There was a loss including £38m of provisions predominantly for replacing cladding. Net cash was £43m at the end of September 2023. There are signs of an improving investment outlook for student accommodation and rental homes, but any major improvement is likely to require a reduction in interest rates. Watkin Jones is assessing other ways to generate revenues that make use of its assets and expertise. A pre-tax profit of £15m is forecast for the year to September 2024.

Piling contractor Van Elle (VANL) reported a 16% decline in interim revenues to £68.2m, while operating profit declined from £3.5m to £2.7m. There is potential for an improvement in the second half even though the housebuilding and rail markets are still challenging. Net cash has improved to £8.9m and the interim dividend has been maintained at 0.4p/share.

Netcall (NET) is using some of its cash pile to acquire cloud-based process improvement software provider Skore Labs. The initial payment is £2m with contingent consideration of up to £4.225m. This will broaden the range of software in the group and provide cross-selling opportunities. Skore Labs was loss making on revenues of £449,000 in 2023. However, annual recurring revenues are £651,000. Netcall interim figures are in line with expectations.

MAIN MARKET

Flavourings supplier Treatt (TET) says revenues declined in the first quarter, although this is a quiet period for the business. This was due to destocking, which appears to be coming to an end. Second quarter demand should be at normal levels.

Neil Sinclair is moving to chairman of More Acquisitions (TMOR) and Stanley Davis has been appointed to the board. Roderick McIllree is stepping down. A placing raised £312,000 at 1p/share, which is higher than the market price of 0.675p.

AIM 50 Digest 26 January 2024

• BY: Andrew Hore |
• POSTED: 27/01/2024 |

Fevertree Drinks (FEVR) increased revenues by 6% to £364.4m. Most of that growth came in the US where revenues were 22% ahead helped by a new can format. Fevertree Drinks is number one brand in tonic and ginger beer. There was a small dip in UK revenues, but the outcome was better than expected. European revenues improved, but rest of the world sales were hit by a new set-up in Australia. In 2024, Fevertree Drinks says its branded mixer drinks should grow revenues by 10%, but sales of non-core brands will decline so the group revenues should grow by 8% this year. EBITDA margin should be 15% in 2024. The 2023 figures will be published on 26 March. Chairman Domenic De Lorenzo bought 45,000 shares at 973.8p each.
=====
Zeus has cut its 2024 and 2025 forecasts for Big Technologies (BIG) after the monitoring technology company’s trading statement. The 2023 figures were in line with expectations, but Big Technologies expects its Colombia contract to end in the first half of this year. The Colombia contract was lost before, but the rival could not provide the service, so Big Technologies carried on supplying the client. This could knock £4m off revenues. Also, investment in growth in the US will hold back short-term profit. This year’s revenues are expected to fall to £51m and the operating profit estimate from £31,7m to £23.9m, down from £28.9m in 2023. The 2025 operating profit is expected to be £27m. Directors have been buying following trading statement. Chief executive Sara Murray bought 300,000 shares at 107p each, taking her stake to 25.3%. Daren Morris and Charles Lewinton also bought shares.
=====
Sienna Bidco has changed the format of its bid for Smart Metering Systems (SMS). Instead of a scheme of arrangement it will be a takeover offer that required a lower level of acceptances. A majority of the shares have to accept for the bid to go unconditional.
=====
Public sector and engineering software provider IDOX (IDOX) grew 2022-23 revenues by 11% to £73.3m, while pre-tax profit improved from £13.5m to £15.8m. The main growth came from the land, property and public protection division, while there was a decline in the communities division, where cloud revenues are becoming increasingly important, because of a lack of election activity.
=====
SigmaRoc (SRC) traded ahead of expectations in 2023 and Liberum has increased its 2023 pre-tax profit forecast from £65.1m to £70.1m. Net debt was slightly higher than expected at £183.8m. Industrial and infrastructure markets offset the weakness in the residential market. This is before the acquisition of lime assets from CRH. The UK will be less than one-quarter of revenues.
=====
Fourt quarter trading was better than expected at Mortgage Advice Bureau (MAB1) and 2023 pre-tax profit is slightly better than expected. Volumes this January are higher than last January. Lucy Tilley is stepping down as finance director. The results will be published on 19 March.
=====
Young and Co’s (YNGA) says managed revenues over the five weeks of Christmas and New Year were 9% ahead with 7.2% like-for-like growth. Third quarter growth was 7%. The City Pub Group acquisition is expected to complete at the beginning of March.
=====
Workwear and catering linen hirer Johnson Service Group (JSG) says 2023 underlying operating profit will be in line with expectations, which were raised at the time of the interims. Revenues improved from £385.7m to £464m with organic growth of 16%. New garment services and client wins are helping workwear to continue to grow in a tough market. Bank debt has increased to £62m after share buy backs, acquisitions and capital investment. There will be additional capacity opening during 2024.
=====
Vets practices operator CVS Group (CVSG) increased first half revenues by 11% to £329.9m with like-for-like growth of 6%. Margins are being maintained. There have been four more acquisitions in the UK and four in Australia. The Healthy Pet Club has 500,000 members. Net debt is £129.2m. The interims will be reported on 29 February.
=====
Marketing services provider Next 15 Group (NFG) continues to trade in line with expectations as it comes up to its January 2024 year end. Growth is expected to accelerate in 2024-25.
=====
Palm oil plantations operator MP Evans (MPE) intends to continue its three decade record of increasing dividends. Oil palm crops increased by 2%, while more was bought from outside sources meaning that there was an overall increase of 7% to 1.62 million tonnes. Crude palm oil production rose 11% to 378,500 tonnes due to increased extraction rates. However, the mill gate price fell 15% to $729/tonne and the price remains above $700/tonne.
=====
Keywords Studios (KWS) generated a 13% increase in 2023 revenues to Euro780m and organic growth was 6%. US strikes reduced revenues by Euro20m. Operating profit was Euro122m. Organic growth is expected to improve this year.
=====
Video games publisher Frontier Developments (FDEV) reported an expected decline in interim revenues and move from a £6.7m pre-tax profit to a loss of £33.1m. Full year revenues guidance is unchanged at £80m-£95m.
=====
Audio visual products supplier Midwich Group (MIDW) estimates 2023 revenues improved 7% to £1.3bn and margins were better than in 2019. Pre-tax profit should be £50m. Net debt is £90m. The results will be published on 19 March.
=====
Learning Technologies Group (LTG) generated revenues of at least £560m in 2023, a decline of 2%. Underlying operating profit is £98m, down from £99.9m. Net debt has reduced from £119.8m to £78.6m and since then $21.4m was raised from selling non-core operations.
=====
Wealth management services provider Brooks Macdonald (BRK) reported net outflows of £100m in the second quarter, but positive investment performance increased funds under management by 4% to £17.6bn. Annualised cost savings of £4m have been achieved. Singer has been appointed as nominated adviser and joint broker, while Investec is joint broker.
=====
Diagnostics company NIOX Group (NIOX) says revenues grew 18% to £36.8m and underlying EBITDA improved from £7.3m to £11.4m. Net cash is £19.9m. Investec has been appointed as joint broker.
=====
Gamma Communications (GAMA) says 2023 figures will be in line with market consensus. The UK business remains strong, and the European operations have improved their performance. Net cash is £134.8m. The 2023 results are being published on 25 March.
=====
First half gold production at Pan African Resources (PAF) increased by 7% to 98,458 ounces, while all in sustaining costs of $1,300/ounce were below full year guidance. The gold price was 14% higher. The MTR project should be commissioned in the next financial year and that could add 50,000 ounces/year.
=====
Cinch has increased its stake in motor dealer Vertu Motors (VTU) from 8.14% to 9.04%. FIL has increased its stake in Central Asia Metals (CAML) from 5.84% to 11.1%.
=====
Tatton Asset Management (TAM) chief executive Paul Hogarth has raised more than £1.7bn by selling shares at 529p each. Cohort (CHRT) non-exec Peter Lynas acquired an initial 15,000 shares at 545.3p each. Impax Asset Management (IPX) non-exec Julia Bond bought 6,500 shares at 500.855p each.

Quoted Micro 22 January 2024

• BY: Andrew Hore |
• POSTED: 22/01/2024 |

AQUIS STOCK EXCHANGE

Standard listed Mustang Energy (MUST) has entered into non-binding heads of terms for the acquisition of Cykel AI (CYK). The offer is 1.844 Mustang Energy shares for each Cykel AI share. The Mustang Energy share price is 30.6p, having risen from 25.5p prior to the announcement of the deal. Cykel AI is developing artificial intelligence software, which will be marketed via a Software as a Service (SaaS) model, and it joined Aquis on 25 October 2023 at 3p/share. Trading in Cykel AI shares has been suspended at 9.25p, valuing the company at £19m. Mustang Energy previously tried to do a deal with Bushveld Minerals (BMN), involving one of its subsidiaries but that fell through. A prospectus for the acquisitions is expected in the second quarter of 2024.

Fuel additives developer SulNOx Group (SNOX) generated third quarter revenues of £98,400, up from £53,500 in the second quarter. Nine months revenues were doubled. There is £2.68m in the bank. Fourth quarter invoiced sales are already £64,500.

Global Connectivity (GCON) says 15%-owned investee company Rural Broadband Holdings has increased its stake in UK broadband provider Voneus from 32% to 36% as part of a £25m financing.

Cooks Coffee Company (COOK) has increased the number of coffee shops and revenues in the 12 months to December 2023 were 16% higher at £26.9m. Like-for-like UK sales were 6% ahead and in Ireland it was 6.8%. December was a record month and there was positive operating cash flow. The year-end is being changed to March.

Electric motors and drivetrains developer Equipmake Holdings (EQIP) has gained a contract for the next stage of its electric motor development with aerospace company H55 for electric aircraft. There will be £315,000 of work deliverable by the end of May 2024 with a further £400,000 after that. Aircraft production could commence in 2025. Dr Nicholas Moelders has been appointed as chief operating officer. Interim revenues rose from £1.05m to £2.07m, while the loss increased from £2.79m to £2.96m because of higher admin expenses.

Hydrogen production systems developer Hydrogen Future Industries (HFI) has commenced its first mining sector feasibility study in the US. The idea is to use wastewater from tailings as a way of generating hydrogen. Management is discussing a potential deal with a partner in Australia for the deployment of renewable energy microgrids.

Marula Mining (MARU) subsidiaries have been issued seven new graphite mining licences for Takela and NyoriGreen projects in Tanzania. The licences last seven years. Marula Mining owns 75% of the licence owners and it is paying $25,000/licence, as well as issuing 1.05 million shares at 13.5p each as additional consideration for the investments. Marula Mining has approved a $6.38m exploration budget for its projects in Tanzania.

Igraine (KING) investee company Fixit Medical, which has developed the Cingo drainage catheter fixation device, expects to produce the first production prototypes in the first quarter of 2024. Fixit Medical is preparing a technical dossier for the ISO 13485 application.

Looking Glass Laboratories (NFTX) has decided to withdraw from the Aquis Stock Exchange, having joined in November 2022.

WeCap (WCAP) has invested a further £900,000 in WeShop convertibles, taking the total investment to £3.75m. The conversion price is 200p/share. WeCap has also invested in £4m of convertibles with a conversion price of 300p/share. Including an investment in a company owning shares, WeCap owns 15.3% of the diluted share capital of WeShop. This is valued at £24.6m at the latest fundraising price.

A purchase of 4,250 shares in Investment Evolution Credit (IEC) at 50p each led to a 125% jump in the share price to 45p. There were four other trades during the week, and they were at 24p/share and 25p/share. The online consumer loans company joined Aquis on 14 December 2023 when it raised £508,000 at 4.5p/share. There is no reason for the share price to have risen so far other than the limited liquidity of the shares.

Valereum (VLRM) has restarted talks with Vinay Gupta of Mattereum and they are exploring potential opportunities.

Chief executive Dr Michael Hudson has acquired 50,000 EDX Medical Group (EDX) shares at an average price of 8.89p each, taking his stake to 6.77%.

Michael Edwards has bought one million shares in Aqru (AQRU) at 0.12p each.

AIM

Tissue converter Accrol (ACRL) has acquired wet wipes and tumble dryer sheet manufacturer Severn Delta for around three times EBITDA. There is a factory in Somerset with four production lines. Revenues are £5m and this will take Accrol into new markets.

Scientific instruments manufacturer Judges Scientific (JDG) generated organic sales growth of 15% in 2023. Profit should be in line with expectations. Liberum expects pre-tax profit to rise from £28.3m to £31.4m. Increased stocks have held back cash generation. Net debt is forecast to be £44.9m.

Paper and technical fibres maker James Cropper (CRPR) has been hit by weak trading in the paper business and slower growth in sales to hydrogen companies in advanced materials. As a highly operationally geared business this has led to a slashing of current year pre-tax profit forecast from £5.9m to £500,000. Employee numbers have been reduced in the paper division, completing the restructuring. Higher capacity utilisation will improve the profit contribution.

Trading in scientific instruments developer Microsaic Systems (MSYS) has recommenced after a 625-for-one share consolidation and a placing raising £2.1m at 1.25p. The consolidated share price was 4.0625p and it fell to 1.4p in initial dealings and stayed at that level, which is a 65.5% decline. Cash will be used to acquire assets from DeepVerge. Full year results for 2022 and interims for 2023 were published to enable the shares to recommence trading after suspension.

Growth at payments technology company Bango (BGO) was held back by contract delays. Moving into profit for the full year was always going to be a tough and Bango has fallen well short. Revenues grew 62%, which is 6% below forecasts. Bango did move into profit in the second half, but it was not enough to make the full year profitable, and the loss is likely to be around $3.7m. That is due to the high margin, lower sales, increased costs and negative foreign exchange movements. Bango should still move into profit in 2024 and start to generate cash.

Hercules Site Services (HERC) did well in the year to September 2023 with underlying pre-tax profit better than expected at £900,000. HS2 work is building up. The construction workers provider is opening its own training centre. That will help the business in the longer-term, but initial costs will hold back profit this year.

XP Factory (XPF) says Boom Bars generated like-for-like growth of 29% and Escape Hunt grew 17% in the past 12 months. This is much faster growth than the market. Group revenues were 95% ahead at £44.5m and this underpins the current forecast for the 15 months to March 2024. XP Factory is on course to move into profit in 2024-25.

Third quarter trading was in line with expectations at Naked Wines (WINE) with the decline in constant currency sales of 10% lower than in the previous quarter. This was the peak trading time. Quarterly operating profit is likely to be £3m-£5m. Annual costs have been reduced by £7m. Net cash is £3m and the business should become cash generative by 2025.

Zeus has cut its 2024 and 2025 forecasts for Big Technologies (LON: BIG) after the monitoring technology company’s trading statement. The 2023 figures were in line with expectations, but Big Technologies expects its Colombia prison service contract to end in the first half of this year. This year’s revenues are expected to fall to £51m and the operating profit estimate is reduced from £31,7m to £23.9m, down from £28.9m in 2023. The 2025 operating profit is expected to be £27m.

A trading statement from utility infrastructure platform IQGeo (IQG) shows 2023 revenues 6% ahead of forecast and a much higher cash figure of £11m. Annualised recurring revenues are 50% higher at £21.1m. This has sparked an upgrade of 2024 estimates by Cavendish with revenues of £49.8m and pre-tax profit of £5.5m, up from £3.4m in 2023.

Strategic Minerals (SML) says that the Cobre magnetite operation has regained a major client that has ordered 30,000 tons. There could be a second contract of a similar size. This follows a halving of sales volumes in 2023.

There were positive drilling results from Thor Energy (THR). The drilling at the Wedding Bell and Radium Mountain uranium prospects in Colorado intersected high-grade uranium. Grades were up to 0.69%. This follows positive results from the Groundhog prospect. The assay results should be received in February. There are plans to drill other prospects in the region. The uranium price has moved above $100/lb.

Prospex Energy (PXEN) says that the Podere Malar-1 well in the Selva field is producing gas at the expected levels. Prospex Energy owns a 37% working interest in the Selva Malvezzi production concessions. Operator Po Valley Energy is determining the optimal flow rate for the longer-term. There are plans for further drilling on the concession.

MAIN MARKET

Foams manufacturer Zotefoams (ZTF) had a strong end to 2023 with revenues in line and pre-tax profit slightly better than forecast at £13.1m – a small increase on 2022. The foam business did particularly well and should continue to as new Nike shoe designs are launched. The ReZorce recyclable carton business remains loss-making and trials with customers will happen in the next few months. Net debt is £31.9m and capital investment will lead this to increase in 2024.

Gulf Marine Services (GMS) has updated guidance for 2023. The offshore energy vessels provider says underlying EBITDA will be around $86m, which is one-fifth higher than in 2022. The 2024 EBITDA range is $87m to $95m.

Quoted Micro 15 January 2024

• BY: Andrew Hore |
• POSTED: 14/01/2024 |

AQUIS STOCK EXCHANGE

Electric motors and drivetrains developer Equipmake Holdings (EQIP) has won an extension of its contract from sightseeing tours operator Big Bus Tours, and it has doubled in size to cover 20 buses. The contract is worth £3.5m. The buses will be delivered by the end of the third quarter of 2024. Full year revenues are expected to be £13.4m, although Equipmake will still be loss making. The share price slipped 8.57% to 8p, but it has risen by one-fifth over the past year.

Silverwood Brands (SLWD), whose shares are suspended at 30p. has come to a conditional settlement with the vendors of the 19.8% Lush stake, which was never transferred to the company by Lush. The deal was cancelled. The vendors are paying £300,000 to Silverwood Brands to cover deal costs.

Capital for Colleagues (CFCP) had 14 investments in the quarter to November 2023 and the NAV was £15.1m or 81.67p/share, down from 81.99p/share at the end of August.

Tyndall Investment Management increased its stake in skin treatments developer Incanthera (INC) from 6.85% to 11.8%.

Tony Wilson has increased his stake in Oscillate (MUSH) from 3% to 3.66%, while Rikki Devlin has taken a 3.04% shareholding.

Bitcoin mining company Vinanz Ltd (BTC) says that the SEC in the US has approved Bitcoin ETFs, which will provide investors with a way to access cryptocurrency. This should be positive for Vinanz. David Lenigas has bought 80,000 shares at an average share price of 9.2p.

NFT Investments (NFT) is changing its name to Phoenix Digital Assets. The share price rose 18.5% to 3.2p. NAV is 4.67p/share.

EDX Medical Group (EDX) sent shareholders a letter that stated it is pursuing nine different projects for point of care and laboratory testing services. The reverse takeover of TECC Capital means that there has been selling by legacy shareholders holding back the share price, but it has started to rally rising 17.2% % to 8.5p.

AQRU (AQRU) is changing its name to Supernova Digital Assets and it is focusing on becoming a value provider for the Solara ecosystem. Net assets are 0.297p/share, including crypto assets of 0.166p/share.

Kasei Holdings (KASH) non-exec director Bryan Coyne has acquired 125,000 shares at an average price of 8.14p each.

Valereum (VLRM) says that the general meeting to approve the acquisition of GSX Group will be held on 30 January and there will be a shareholder update meeting the next day. Nick Cowan has joined the board as chief executive, as has former AIM and Plus Markets boss Simon Brickles. Gary Cottle has also joined as a non-exec.

EPE Special Opportunities (EO.P) had net assets of 301.9p/share at the end of 2023.

PanGenomic Health (NARA) has entered into a non-binding letter of intent with Crescita Capital for a $5m drawdown facility. This will last three years and can be used for working capital and acquisitions. The facility involves the issue of shares at a discount to the market price at the time of issue. There will be a $300,000 commitment fee payable in cash or shares.

Tony Wilson has increased his stake in Oscillate (MUSH) from 3% to 3.66%, while Rikki Devlin has taken a 3.04% shareholding.

AIM

The Property Franchise Group (TPFG) has made an agreed bid for rival franchised lettings company Belvoir (BLV). The agreed offer of 0.806377 TPFG shares for each Belvoir share values Belvoir at 277.4p/share based on a TPFG share price of 344p, but it has subsequently fallen to 307.5p valuing Belvoir at 248p/share. TPFG shareholders will own 51.75% of the enlarged group.

Capital equipment supplier Mpac (MPAC) had a strong second half in 2023 and there was a record order intake during the year. Margins improved in the second half and full year pre-tax profit was £6.9m, up from £3.5m in 2022. The higher second half margins should continue in 2024, enabling a further improvement in profit.

NWF (NWF) has signed a 15-year lease on a third food distribution warehouse in Newcastle-under-Lyme. This will add 52,000 pallets to capacity. The site should be open in the autumn after capital expenditure of £8.5m. This site could add £1.2m to pre-tax profit in 2025-26.

Another positive trading statement from payments services provider Cornerstone FS (CSFS) has led to an upgrade of December’s previous upgrade. A maiden pre-tax profit of £800,000 on doubled revenues of £9.6m is forecast for 2023. Revenues per customer increased by around two-thirds to more than £10,000. The company moved from net debt to net cash.

AdvancedAdvT (ADVT) switched from the standard list to AIM on 10 January. Last year, five businesses were acquired from Capita and one of these is being sold. The remaining companies operate in business solutions and human capital management.

Online builders’ merchant CMO Group (CMO) had a tough fourth quarter. Online traffic rates declined, but conversion rates improved. Overall orders were flat. Home improvement and DIY spending is declining. The overall repair, maintenance and improvement sector is still relatively strong, but it weakened in the second half of 2023. Market share has grown, and costs have been cut. Liberum has increased its 2023 pre-tax loss forecast from £800,000 to £1.2m and forecasts a 2024 loss.

Consultancy Elixirr International (ELIX) confirmed 2023 results are in line with expectations and it will pay two dividends each year. Pre-tax profit is expected to improve from £19.3m to £23.9m. The shares will go ex-dividend for the 5.3p/share interim on 19 January.

Plant monitoring technology developer Light Science Technologies (LST) published a positive 2023 trading statement. Cost savings have helped to halve the pre-tax loss of £1.3m on revenues rising from £8.2m to £9.3m. Contract electronic manufacturing remains the largest sales contributor, although controlled environment agriculture products are growing in importance.

Touch sensors manufacturer Zytronic (ZYT) reports a 30% decline in full year revenues to £8.6m and it fell back into loss. Gross margins were hit by higher raw material costs and product mix. Sales continue to decline this year. There are signs that there could be improvement in the second half. Net cash is £4.7m.

Palm oil producer Dekel Agri-Vision (DKL) says 2023 revenues were at record levels, but there are problems with ramping up the cashew operation. Investment is required to replace parts of the machinery used in cashew production. Production should improve in the second quarter. The 2024 pre-tax profit forecast has been cut from €1.5m to €600,000.

Mercantile Ports and Logistics (MPL) says some trading activity was deferred last December. Cavendish reduced its 2023 revenues forecast from £6.9m to £5.4m. Coal import to the Karanja port were lower because of destocking. The loss will be higher. Management hopes to replace the current debt facilities with a new facility with lower interest charges. Buying by directors did not help the share price. Non-exec John Fitzgerald acquired 624,419 shares at 1.5725p each and Dmitri Tsvetkov bought 617,360 shares at 1.62p each.

Oriole Resources (ORR) has confirmed receipt of the payment of $450,000 related to the earn-in agreement with BCM International for the Bibemi gold exploration project in Cameroon. BCM will spend $4m on exploration to earn 50% of the project. Drilling should resume in the first quarter.

Semiconductors designer EnSilica (ENSI) has released a range of Post-Quantum Cryptography accelerators. These are cryptographic algorithms that can withstand cyber-attacks from quantum computers.

MAIN MARKET

Tertre Rouge Assets (TRA) has entered into a purchase agreement for a 1972 Lamborghini Miura P400 SV for £2.8m, which means that there are purchase agreements for six cars valued at £32m. Formal marketing of a fundraising has commenced, and the issue price should be 105p. Approval of the prospectus by the FCA is still awaited.

Kelso Group Holdings (KLSO) plans to raise up to £1.88m at 3p/share. The cash will be used for further investments in UK listed companies. Previous fundraisings were at 2p/share and 2.5p/share.

Standard list shell Sivota (SIV) has identified a potential acquisition that operates a technology platform in the travel sector, subject to due diligence and other conditions. The plan is to acquire up to 51% of the company for $15m. Sivota will raise £2.5m to provide the target with a convertible loan for working capital.

Quantum dots developer Nanoco (NANO) has signed a joint development agreement with STMicroelectronics. This two-year programme will optimise a second generation sensing material. This will boost non-licence fee income in 2024 and sales of test materials in 2024 and 2025.

AIM 50 Digest 12 January 2024

• BY: Andrew Hore |
• POSTED: 14/01/2024 |

Smart Metering Systems (SMS) adjourned the planned 9 January general meeting to gain shareholder approval for the scheme of arrangement relating to the takeover of the smart meters and battery storage company because of shareholder opposition. Funds advised by Kohlberg Kravis Roberts are bidding 955p/share in cash for Smart Metering Systems, which values it at £1.3bn. Smart Metering Systems founders Alan Foy and Steve Timoney and Primestone Capital believe that the bid does not represent a full valuation. These shareholders own 17.8% of SMS and intend to vote against the offer. The adjourned general meeting is rescheduled for 22 January.
=====
Soft drinks maker Nichols (NICL) did better than expected in 2023 and Singer has upgraded its pre-tax profit forecast from £26m to £28m. The benefits of restructuring out of home operations have come through earlier than expected. Growth has been led by the international business. Net cash is £67m. The 2024 pre-tax profit forecast is £28.5m as inflationary pressures ease.
=====
Cinch has increased its stake in motor dealer Vertu Motors (VTU) from 7.08% to 8.14%, taking advantage of the share price fall from the trading statement in December. 
=====
Impax Asset Management (IPX) increased assets under management by nearly 5% to £39.1bn in the quarter to December 2023. Market growth offset net outflows. Impax Asset Management is acquiring the assets of Absalon Corporate Credit, which has fixed income assets under management of £391m. A team of four will join the group. Polar Capital (POLR) grew its assets under management by 2% to £19.6bn in the third quarter, which is higher than the Equity Development forecast for the end of March 2024. Equity Development upgraded its pre-tax profit forecast by one-fifth to £50.1m after a jump in performance fees. 
=====
Wound care company Advanced Medical Solutions (AMS) says that pre-tax profit will be in the middle of the range of £25m-£27m. Double digit growth is expected in 2024, helped by product launches and the expansion strategy in the US. The plan is to double US market share in five years. 
=====
Central Asia Metals (CAML) says copper production at Kounrad of 13,816 tonnes was at the top of the guidance range and renewable power is being used at the mine. Sasa produced 20,338 tonnes of zinc and 27,794 tonnes of lead concentrate. There was cash of $57.2m at the end of 2023. This year, Kounrad could produce a similar amount of copper, while the guidance ranges for zinc and lead cover last year’s production levels.
=====
MP Evans (MPE) has appointed Cavendish as nominated adviser and broker. Keywords Studios (KWS) has appointed Barclays as joint broker.

Quoted Micro 8 January 2024

• BY: Andrew Hore |
• POSTED: 07/01/2024 |

AQUIS STOCK EXCHANGE

Coinsilium (COIN) was the biggest riser on the week with a 55.3% improvement to 2.95p. This is the highest the share price has been since August 2022. The increased trading levels at the end of December continued into early January. The vast majority of the trades were buys with limited selling.

Professor Trevor Jones bought 150,000 shares in EDX Medical Group (EDX) at 6.25p each and 139,074 shares at 7.35p each. These are his first share purchases, and he owns 0.096% of EDX Medical. The share price is at the highest level since just after the flotation in June 2021

NFT Investments (NFT) reported a 54% increase in NAV to £43.8m at the end of September. Crypto assets rose by 67% and there are plans to liquidate these holdings after April. There will then be a tender offer to shareholders. NAV is 4.67p/share. The share price edged is 2.7p.

All Things Considered (ATC) has opened a new office in Los Angeles, which increases capacity by 30%. There is a ten-year lease.

Founder Paul Ryan reduced his stake in Pharma C Investments (PCIL) from 8.52% to 3.9%, while James Formolli took a 8.05% shareholding.

Ventura Finance has increased its stake in Secured Property Developments (SPD) from 3.66% to 4.28%.

AIM

Cancer diagnostics firm Angle (AGL) reported breakthrough results from DNA molecular analysis of cancer patient blood samples, and this covers many types of cancer. This proves the effectiveness of the Parsortix system combined with DNA analysis. Angle believes that using CTC-DNA testing of living cancer cells alongside ctDNA (DNA fragments released from dead cancer cells into the blood) will improve the way cancer is treated. It may enable doctors to track the clonal evolution of a patient’s cancer. Earlier in the week, a $250,000 pilot study to assess breast cancer patients was secured.

An $11m preclinical milestone payment to C4X Discovery (C4XD) has been triggered by the preclinical progress of C4XD’s NRF2 Activator programme. AstraZeneca is using the programme to develop an oral therapy for treating inflammatory and respiratory diseases. At the end of July 2023, C4XD had £4.22m in the bank after a £6m cash outflow from operating activities.

Plexus Holdings (POS) agreed an IP licence agreement with SLB, which replaces a previous surface production wellhead licence agreement with a subsidiary of SLB. For $5.2m in cash, SLB gets a licence in perpetuity to use POS-GRIP technology in specific markets. The 2023-24 revenues forecast has been upgraded to £14m and pre-tax profit raised by 467% to £1.7m. However, this is a one-off, so Plexus could fall back into loss next year. Plexus was the best AIM performer in 2023.

Real-time oil condition analysis company Tan Delta Systems (TAND) says that progress has been slower than hoped since floating in August. Full year revenues will decline from £1.6m to £1.44m, which is lower than expected. Customer trials have been delayed, but there has been greater interest in the technology. The loss will be in line with expectations at £400,000. Cash was £4.5m at the end of the year.

LungLife AI Inc (LLAI) has successfully validated its LungLB early lung cancer detection test. The positive predictive value was 81% in distinguishing cancer nodules smaller than 15mm. The current standard is 60%. There will be an early access programme offered in the first quarter of 2024. The test will be optimised for additional uses.

Floorcoverings distributor Likewise (LIKE) grew 2023 revenues by 13% to £139.5m, which is better than expected. The overall market declined. Pre-tax profit is forecast to slip from £2.6m to £2.5m. The profit is expected to rise to £3.4m in 2024 because of the operational gearing of the business.

Revolution Bars (RBG) like-for-like sales were 9% ahead in December. However, most of that growth came from Revolucion de Cuba and Peach Pubs with Revolution barely growing even though the previous December’s train strikes meant that comparatives were weak. Eight bars have been closed. That leaves 58 bars and 22 pubs. Net debt is £18.3m. There will be another trading update on 24 January.

Oriole Resources (ORR) has signed a definitive earn-in agreement with BCM International for the Bibemi gold exploration project in Cameroon. That triggers a payment of $450,000. BCM will then spend $4m on exploration to earn 50% of the project. Drilling should start in the first quarter. The Mbe project agreement should be agreed by the end of the month.

LPA Group (LPA) is acquiring Red Box, which enhances the position in ground power products for the aviation sector and reduces dependence on the rail sector. The total cost will be £1.1m. In 2022, Red Box made an operating profit of £81,000 and the deal should be earnings enhancing in 2025.

MAIN MARKET

Hydrogen Utopia International (HUI) is acquiring 49% of medicinal cannabis grower Ohrid Organics and this will generate cash for the group this year. This will help to finance the core waste plastic to hydrogen projects, including a proposed plant in County Longford, Ireland.

Quoted Micro 1 January 2024

• BY: Andrew Hore |
• POSTED: 01/01/2024 |

AQUIS STOCK EXCHANGE

Oberon Investments (OBE) increased interim revenues by 28% to £3.4m, even though capital market revenues fell by one-third. The loss was reduced from £1.67m to £1.59m. Management believes the company could move into profit during 2024. There are plans to add funds management teams. Oberon Investments has a 69.1% stake in Logic and is planning to float Logic on AIM at a valuation of £11m in the first half of 2024.

Broker VSA Capital (VSA) improved interim revenues from £846,000 to £1.05m and the loss jumped from £841,000 to £1.82m with the loss on investments jumping from £355,000 to £1.33m. VSA Capital is unhappy how Silverwood Brands handled the deal to buy a stake in Lush and this has led to a reduction in the value of the stake VSA Capital owns in the company. Deals have been delayed.

Western Selection (WESP) has sold its liquid investments, and it has £14.55m in the bank. It has illiquid investments in Industrial and Commercial Holdings and City Group are in the books for £46,000. The investment company is returning 80.5p/share in cash to shareholders and withdrawing from the Aquis Stock Exchange. The other investments will eventually be sold. Shareholders will be given the option to retain shares until the other investments are sold.

TruSpine Technologies (TSP) reported an interim cash outflow from operating activities of £80,000, down from £508,000 in the corresponding period. There was net debt of £277,000 at the end of September 2023. Discussions continue with Spartan Medical concerning a new redistribution contract.

Marula Mining (MARU) has completed phase 1 exploration activities at Nyorinyori and NyoriGreen projects. An initial report will be received in January. This, combined with assay results, will help to plan phase 2 of the exploration in the first quarter of 2024.

KR1 (KR1) had net assets of 76.56p/share at the end of November 2023. The income from digital assets during the month was £939,000. The share price is 92p.

Tap Global Group (TAP) generated trading revenues of £1.68m, based on trading payment volumes of £181.6m, taking total revenues to £2.02m in the year to June 2023. Revenues for the most recent five-month period were £1m. The company is still losing money. There was £2.3m in the bank at the end of June 2023. Tap Global plans to launch its cryptocurrency app in the US in the first quarter of 2024.

Substrate Artificial Intelligence (SAI.B) increased its 2023 revenues forecast from Euro8.19m to Euro10.5m, while the operating loss has been raised from Euro4m to Euro6.3m. Operating expenditure is much higher than original estimated, partly due to higher development spending.  

Gunsynd (GUN) has invested in £200,000 in 1911 Gold Corporation, which is listed on the TSX Venture Exchange. At C$0.06/share. Each share comes with a warrant exercisable at C$0.10/share. Gunsynd has a 4.3% stake. 1911 Gold Corporation has interest in 63,000 hectares of land adjacent to the Archean Rice Lake greenstone belt in Manitoba.

Hot Rocks Investments (HRIP) had £18,415 in the bank at the end of September 2023. Net assets fell from £526,000 to £433,000.

AIM

Shares in fabless semiconductor developer Sondrel (SND) were hit by a trading warning that flagged delays in development and payments and a subsequent shortage of cash. Sondrel expected a £1.7m payment from an automotive component manufacturer, but this will not be received until next year. Additional resources will be required to complete the project. Directors and staff have agreed to defer salaries because Sondrel cannot afford to pay them. More capital will be required by the end of March or earlier if the delayed payments are not made as early as expected.

Autonomous drilling rig developer Tribe Technology (TRYB) has not completed the latest drill rig due to technical issues and it will be delayed until the first quarter of 2024. It should be shipped to the customer by the summer. This means that revenues may be delayed until the next financial year. A field trial of the sample potting and handling system has been postponed. The 5 September placing price was 10p and the share price has declined to 8.25p. There is £3.34m in cash left.

Harland & Wolff (HARL) is advancing negotiation concerning a proposed £200m guaranteed loan facility with UK Export Finance. In January, an independent party will assess an appropriate interest charge. The bank syndicate is being firmed up. There is enough cash until the facility is secured.

AIM broker WH Ireland (WHI) is seeing signs of improvement with underlying monthly profitability achieved in November 2023 thanks to cost cutting and there was cash of £6.8m. Annualised cost savings of £3.8m have been made. The underlying interim loss doubled to £1.8m with revenues dropping from £14.3m to £10.7m.  

Horizonte Minerals (HZM) has secured a $20m interim funding package provided by major shareholders Orion, Glencore and La Mancha. Interest payments are being deferred by existing senior lenders. Management is reviewing the long-term project funding requirements for the Arafuaia nickel project. Full funding is targeted for the middle of 2024.

Oil and gas company Reabold Resources (RBD) is holding the requisitioned general meeting on 10 January to appoint four directors and remove two others. Requisitioner Kamran Sattar and related parties have a 40% stake in Daybreak Oil & Gas, where Reabold Resources has a 42% holding. Fully listed Zenith Energy (ZEN) boss Andrea Cattaneo is proposed as chief executive, and another proposed director is Zenith Energy chairman. Nominated adviser Strand Hanson is undertaking due diligence on the proposed directors. If they are appointed before this is complete, Strand Hanson says that it would have to resign. That would spark a share suspension and then one month to find a replacement or the quotation would be cancelled.

Shares in coal miner Bens Creek (BEN) has fallen to 11p, just above the original placing price of 10p. The net sales price has declined over the past year, but higher production meant that interim revenues increased from $17.4m to $23.5m although the loss rose from $11.7m to $13.7m. Net debt, including deferred consideration, is more than $38m.

Team (TEAM) is acquiring Homebuyer Financial Services for £2.4m, dependent on approval by the Jersey Financial Services Commission. The company has assets under advice of £135m. The deal will boost Team’s scale in the Channel Islands. The proposed acquisition of Thornton has been cancelled.

Executive vice chairman Dominic Redfern has been suspended by Eco Buildings Group (ECOB). He was one of the vendors and co-founders of the Eco Buildings business that was reversed into the AIM shell Fox Marble seven months ago, so he is important to the business.

MAIN MARKET

Pendragon (PDG) says the takeover of its motor dealer and related finance businesses have been approved by the FCA. The disposal should be completed at the end of January, when Pendragon will be left with its software business. A 24.5p/share dividend will be paid in the first half of 2024.

One Heritage Group (LON: OHG) says that the contract for the sale of Churchgate, Leicester has been rescinded while a claim against the development is sorted out. The Oscar House development in Manchester has been refinanced.

AIM 50 Digest 29 December

• BY: Andrew Hore |
• POSTED: 01/01/2024 |

Smart Metering Systems (SMS) founders Alan Foy and Steve Timoney and Primestone Capital believe that the 955p/share cash bid is not a full valuation of the business. These shareholders own 17.8$ of SMS. 
=====
Video games services provider Keywords Studios (KWS) is acquiring The Multiplayer Group from Improbable Worlds for £76.5m. The acquisition target is one of the largest developers of multiplayer games for major studios. This will be earnings enhancing.
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Oil and gas producer Serica Energy (SQZ) has secured a $525m secured reserves based lending facility and this could potentially be doubled. This lasts until the end of 2029. The existing $271m facility will be repaid.
=====
In the year to June 2023, Alaska-focused oil and gas company Pantheon Resources (PANR) reported a $11.4m cash outflow from operating activities with a further $47.9m investment in exploration. There was cash of $20.7m and convertible debt of $26.8m at the end of June 2023.
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Big Technologies (BIG) finance director Daren Morris bought 5,000 shares at 173p each. Lok’nStore (LOK) non-exec Bridget Barker bought 12,000 shares at 820p each. 
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Gumshoe Capital has acquired a 3% stake in FD Technologies (FDP). Richard Griffiths has reduced his stake in Niox (NIOX) from 26.9% to 23.9%. 

Quoted Micro 25 December 2023

• BY: Andrew Hore |
• POSTED: 24/12/2023 |

AQUIS STOCK EXCHANGE

Good Life Plus (GDLF) completed its reversal into Semper Fortis Esports. There was £1.4m raised at 2p/share. The share price improved 11.1% to 2.5p. The business has been trading for just over two years and it offers members daily prize draws. There are more than 21,000 active members and monthly recurring revenues are £210,000. The company is currently loss-making, partly due to investment in marketing, although the increasing scale means gross profit is improving. The cash will fund further investment in marketing. Sportingbet founder Mark Blandford is one of the new investors.

Kondor AI (KNDR) joined the Access segment of Aquis on 21 September having raised £1.5m at 3p/share and by the end of the week the share price was 8.25p. There was £400,500 raised in November. Kondor AI intends to develop artificial intelligence products in areas such as health diagnostics, search and text recognition. A beta demonstration product is being tested.

Secured Property Developments (SPD) has appointed Paul Ryan as executive director and Noel Lyons as non-exec and they have acquired £150,000 worth of shares at 26.11p each. The existing directors resigned. It appears likely that the focus may change to technology and cleantech. Peterhouse has become corporate adviser. The changes sparked a 60% rise in the share price to 20p.

Incanthera (INC) has secured a commercial deal with a subsidiary of health and beauty company AS Watson for the launch of the Skin + CELL skincare range. This should generate significant revenues in 2024. The plan is to roll out the brand to 1,000 stores in Europe, followed by Asia. Manufacturing has been subcontracted. To fund this, £800,000 was raised at 7p/share and £200,000 of debt owed to the University of Bradford was converted into shares. There was net debt of £199,0090 at the end of September 2023.

Vanadium flow batteries developer Invintiy Energy Systems (IES) says full year revenues will be at least £21.6m, which is below forecast, and the EBIDA loss will be higher than expected at £22m. That means net cash will be around £1m. Forecast revenues for 2024 have been downgraded and the loss raised. This is based on exiting projects. Canaccord Genuity believes that there will be a cash injection from a strategic partner, which will offset the cash outflow in 2024.

Valereum (VLRM) has renegotiated the acquisition of the GSX Group, which is dependent on the approval of shareholders. It is paying five million shares and 10 million warrants exercisable at 1p each. The deal includes GATENet DFMI intellectual property, which puts the group in a strong position in tokenisation. The GATE token will the sole token used. As part of the deal former AIM boss Simon Brickles will become a non-executive director. GSX chief executive Nick Cowan will take up that role in the group.

Coinsilium Group (COIN) says a recovery in cryptocurrency markets is having a positive effect on the company. The expected approval of the first spot Bitcoin ETF should create more opportunities.

Aquaculture technology developer OTAQ (OTAQ) had a strong second half and full year revenues will be £4.4m, which is higher than expected. Oil and gas demand has improved. There was positive EBITDA in the second half. There are opportunities in Geotracking for next year.

Wishbone Gold (WSBN) is exercising the option over the Crescent East lithium and gold project in Western Australia. In return, 18.6 million shares worth around £400,000. Gold mineralisation has been confirmed and there is potential for lithium in the southern area.

Personalised medicine company EDX Medical (EDX) had £1.1m in the bank at the end of September 2023. There was £1.5m outflow from operating activities in the six months to September 2023.

Mydecine Innovations Group Inc (MYIG) is the largest faller on the week with a 70.6% decline to 2.5p, even though it has received notice of allowance from the US patent office for the MYCO-005 compound. It mimics psilocin but without some of the side effects.

ChallengerX (CXS) has moved from net assets of £282,000 to net liabilities of £33,000 at the end of June 2023.

Rogue Baron (SHNJ) has raised £50,000 at 0.35p/share. The spirits company is still performing due diligence on the acquisition of a vodka brand.

Marula Mining (MARU) says dual listings on the Nairobi Stock Exchange and JSE should happen in the first quarter of 2024. Indicative terms have been received indicative terms for an offtake agreement with a European commodity trader for the lithium output of Blesberg lithium and tantalum mine. Transportation of the modular processing plant for the Kinusi copper mine will not happen until early 2024.

Cadence Minerals (KDNC) investee company European Metals Holdings (EMH) says that the definitive feasibility study for the Cinovec lithium project in the Czech Republic has been delayed until the first quarter of 2024. This will allow time to complete capital and operating cost estimation and project implementation scheduling.

SulNOx Group (SNOX) says that its Ghana-based distributor has purchased 3,700 litres of SulNOxEco fuel additive and committed to a minimum of 15,000 litres each year, which is valued at £250,000. SulNOx has raised £1.8m at 23p/share. The share price is down 1.92% to 25.5p.

Walls and Futures REIT (WAFR) had an NAV of 87p/share at the end of September 2023. Property values increased by £60,000.

Capital for Colleagues (CFCP) is involved in a £1.5m fundraising for Rapid Retail, which supplies portable shops and kiosks, and it is investing £100,000 in existing shares and providing a 9% secured convertible loan of £400,000. The rest of the cash is coming from Harrock Investments, which is controlled by Capital for Colleagues non-executive Bill Ainscough.

Trading in Pharma C Investments (PCIL) will resume on 27 December This follows the recent publication of annual results and interim figures. There has been £281,000 raised at 0.01p/share. These shares are 91% of the enlarged share capital. Peter Wall will be executive chairman. The investment strategy has been changed to technology.

Gunsynd (GUN) NAV fell from £3.85m to £2.15m in the year to July 2023, including cash of £164,000.

Oberon Investments (OBE) has received FCA approval for the acquisition of Nexus Investment Management and the Nexus Investments Evergreen EIS Scale-Up Fund. Harry Hyman has increased his stake from 3.82% to 4.98%.

Macaulay Capital (MCAP) is making a £125,000 loan to a subsidiary of investee company Vale Foods. This loan earns 10%/year and provides cash to finance an increase in capacity. Macaulay Capital director David Horner is personally lending £100,000.

Cooks Coffee Company (COOK) is buying back shareholdings of less than 1,125 shares.

Adnams (ADB) director Sacha Berendji acquired 300 A shares at £19 each.

Jared Gurfein has been appointed as chief executive of Looking Glass Labs (NFTX), replacing Dorian Banks.

AIM

Trading has not gone to plan at Hargreaves Services (LON: HSP) but it is able to offer an enhanced dividend pay out. Reduced commodity prices and a slowdown in the German economy have hit the performance of German associate company HRMS, which is expected to make a first half loss. The flipside of the HRMS underperformance is that working capital is unwinding and cash generation has strengthened. Hargreaves Servies has received £8m from HRMS and the two sides have agreed that an annual distribution of £7m can be sustained. This enables Hargreaves Services to pay an annual dividend of 36p/share, compared with previous expectations of 21.9p/share. This will be paid in two equal instalments. The 2024-25 dividend is expected to be maintained.

Filtronic (FTC) has gained two new contracts. There is a £4.8m contract for LEO satellite communications equipment. This is a follow-on contract for second generation Cerus32 solid state power amplifier modules for ground stations. This shows the increasing importance of the satellite market. Filtronic also won a £4.5m defence contract starting in January. Revenues will be recognised in 2024-25 and 2025-26. Interim results will be published on 6 February.

Video games publisher tinyBuild (TBLD) has secured the cash it requires for working capital. The fundraising includes a one-for-six open offer and should raise $14.2m at 5p/share, which is above the current share price. Interactive entertainment company Atari is investing $2m. Chief executive Alex Nichiporchik will underwrite up to $10m of the fundraising. The video games market continues to deteriorate. Full year revenues are likely to be between $40m and $50m with a greater than expected proportion of lower margin games. Cost cutting should reduce cash outflow by up to $10m/year.

Microsaic Systems (MSYS) is negotiating the acquisition of some of the assets of Modern Warter from DeepVerge (DVRG), which is running out of cash, for £100,000. The assets include water testing equipment plus IP and rights to related equipment. It does not include the Australian business. Intercompany debt will be discharged as part of the deal. The exclusivity period lasts until 16 January. Trading in DeepVerge shares will be cancelled on 27 December.

Bidstack (BIDS) has sorted out its problem with Azerion. The in-game advertising technology provider has reached a settlement that means that Azerion will pay €3m to Bidstack. The two parties will form a new non-exclusive commercial partnership in 2024.

Helium One (HE1) announced a placing raising £6.1m at 0.25p/share. This will fund the drilling of the Itumbula West-A well starting in early January. There will also be 25.1 million shares issued in lieu of fees.

SRT Marine Systems (SRT) is raising £10m at 35p/share with up to £500,000 more to come from a retail offer. This includes a £7m investment by Ocean Infinity. There were no revenues from systems in the first half, but they should make a significant contribution as work on contracts reaches points where it can be invoiced. Earlier this year, SRT raised £5.36m from a placing and Primary Bid offer at 50p/share.

Graphene technology developer Versarien (VRS) has found it difficult to complete the disposal of non-core assets. In the year to September 2023, revenues were £5.45m and cash fell to £600,000. There was £450,000 raised since then, but cash has fallen to £420,000. A general meeting will be held to gain shareholder approval for a reduction in share capital and nominal value to make it easier to raise money from share issues.

Bluejay Mining (JAY) has appointed Roderick McIllree, Harry Ansell and Troy Whitaker to the board with the latter becoming chief operating officer. Robert Edwards, Bo Stensgaard and Peter Waugh have stepped down from the board. Roderick McIllree was previously chief executive between 2015 and 2022. The strategy is to focus on the Disko magmatic massive sulphide project in Greenland.

Thor Energy (THR) investee company EnviroCopper has reached agreement with Andromeda Metals to acquire the Alford West property and combine it with Alford East in return for a 5% stake in EnviroCopper and A$50,000 in cash with deferred consideration of a 10% share of any successful mining operations. There will also be a A$150,000 cash payment when a mining lease is granted. Alligator Energy is making a A$900,000 strategic investment in EnviroCopper to help fund its copper projects. That will give it a 7.8% interest and further investments could take the stake to 50.1%. Thor Energy’s stake has been diluted to 26.5%.

MAIN MARKET

A dual listing on the New York Stock Exchange was supposed to give Diversified Energy Company (DEC) a boost, but the share price slumped after Democrats in the US opened an inquiry into the company and questioned its business model. They are concerned about The US oil and gas producer’s methane emissions and abandonment risk.

Bowen Fintech (BWN) plans to acquire 93.49% of the share capital of MINNADEOOYASAN-HANBAI Co (MOH) and the enlarged business is expected to be valued at £42.7m. Japan-based MOH is a crowdfunding platform focused on property. It has been operating since 2007 and raised Y62bn (£378m) during the year to March 2023. Bowen Financial is issuing shares at 15p each and that will value MOH at £34.5m. The share price was suspended at 12p until a prospectus is issued. In October 2022, £2m was raised at 4p/share. At the end of April 2023, there was £1.7m in the bank.

IT services provider Triad (TRD) reported a dip in interim revenues and a more than doubled loss of £990,000. This was worse than expected. Cash has fallen to £2.62m. The interim dividend is maintained at 2p/share. Four new contracts have been won. This should improve the second half figures and next year’s results. Deputy executive chairman Charlotte Rigg has bought 4,444 shares at 135p each.

Quoted Micro 18 December 2023

• BY: Andrew Hore |
• POSTED: 18/12/2023 |

AQUIS STOCK EXCHANGE

Flex Labs Inc (FLEX) joined the Access segment on 15 December. The Canada-registered company is developing AI middleware for natural language processing text generators. There is no product yet. The introduction price was 3p, which valued Flex Labs at £3.42m. The share price ended the week at 6p.

Investment Evolution Credit (IEC) joined the Access segment on 14 December and raised £508,000 at 20p/share, valuing the online consumer loans company at £2.99m. The company currently focuses on the US but plans to move into the UK. In the US, Mr Amazing Loans offers loans of between $2,000 and $10,000 with interest rates of between 19.9% and 29.9%.  Approvals are required to start offering loans in the UK. The core business is loss-making. The share price ended the week at 6p.

Shares in Semper Fortis Esport (SEMP) rose as shareholders agreed to the acquisition of Good Life + and the subsequent reverse takeover that occurs on 18 December.

Yooma Wellness Inc (YOOM) left Aquis on 15 December. The company has been put into voluntary liquidation.

China-focused eCommerce company Samarkand (SMK) reported a 1% dip in interim revenues of £8.1m, while the loss was reduced. There was growth in sales outside of China. Revenues from own brands rose 18%. VSA has downgraded its expectations for the full year because the recovery has not gained the anticipated momentum. Cost savings are helping to reduce the loss. The full year loss is still expected to fall from £4.7m to £3.8m. Samarkand could move near to breakeven next year.

Business assurance provider Adsure Services (ADS) generated revenues of £4.25m in the six months to September, which was prior to joining Aquis. There was an interim loss, but last year the second half was highly profitable. There are plans to diversify the customer base.

Retail carbon trading company Ora Technology (ORA) did not generate revenues in the period to July 2023. There was £1m in the bank at the end of July 2023.

In November, Guanajuato Silver (GSVR) increased month-on-month silver production by 23% to 295,284 ounces equivalent. The production improvement is set to continue into next year.

Marula Mining (MARU) is involved with local partners in applications for graphite mining licences at the Nyorinyori graphite project and the NyoriGreen graphite project in Tanzania. New processing equipment has been installed at the Blesberg lithium and tantalum mine.

Wishbone Gold (LON: WSBN) says visual inspection of core from recent drilling at the Cottesloe project in Western Australia show zones containing base metals while x-ray fluorescence scanning shows elevated base metals readings. Assay results will make things clearer.

Newbury Racecourse (NYR) has appointed Shaun Hinds to replace Julian Thick as chief executive.

IamFire is raising £1m at 1.5p/share and it has changed its name to WeCap (WCAP).

EPE Special Opportunities (EO.P) had net assets of 300.48p/share at the end of November 2023.

Marallo Holding Inc has acquired 1.75 million shares in NFT Investments (NFT) for a total cost of £47,375. Michael Heald has increased his stake in brewer Adnams (ADB) from 21.4% to 23.5%. Oscillate (MUSH) non-exec John Treacy has bought an initial 880,000 shares at 0.54p each.

AIM

Recruitment firm Impellam (IPEL) has finally agreed a takeover offer after months of being in a bid situation. HeadFirst is offering 557.2p/share in cash and 392.8p/shares in loan notes for each Impellam share. Shareholders will also receive the 55.9p/share dividend announced, plus a further cash dividend of 22.4p/share and a in specie dividend of 56.1p/share. This all adds up to 1,084.4p/share and values Impellam at £483.2m. The non-convertible loan notes offer annual interest of 17% and last an initial 3 years. The convertibles have annual interest of 12% and the total loan amount can be converted into 20% of the bid vehicle.

Venue management software supplier Skedda Inc has proposed an 82p/share offer to SmartSpace Software (SMRT) valuing it at £25m. The share price has not been that high since 2021 and it jumped 103% to 70p, still well short of the bid level. JO Hambro, which owns 8.3% of the software developer, is supportive of the offer. Skedda believes that it can provide the financial backing that SmartSpace Software requires. The SmartSpace Software board is considering the offer. The company is currently loss-making.

Dispute resolution services provider Driver Group (DRV) moved back into profit in the year to September 2023, mainly due to higher gross margins. The £1.1m pre-tax profit was still lower than the £2m reported for 2020-21. The cost base has been reduced and additional projects have been won. Net cash is £5.8m. The final dividend is 0.75p/share and management says that there is around £1m of surplus capital that can be used for share buy backs. The core businesses will be rebranded Diales and there are plans to move into other sectors, such as aerospace and IT.

Defence and forgings company MS International (MSI) more than doubled interim pre-tax profit from £3.46m to £7.72m. Revenues improved from £42m to £57m. The defence business returned to profit and generated all the revenue growth. That offset lower contributions from other divisions. Net cash is £50m. There are £57.5m of contract liabilities on long-term contracts and NAV is £43.4m. Deliveries for US navy contracts begin in the second half.

Shore Capital has reduced its 2024 and 2025 forecasts for pawnbroker H&T (HAT). The pledge book is growing faster than expected and an additional £10m of funding was recently secured. That additional profit is offset by increased wage costs following the raising of the National Minimum Wage. There will also be higher interest costs. The dividend is likely to grow by a lower percentage than previously anticipated. The 2024 revenues have been edged up to £261m, while pre-tax profit is reduced from £36.7m to £39.7m. A higher tax rate means that there will be a 10% drop in earnings estimates to 62.8p/share.

There is a continued decline in the share price of energy and water efficiency company Eneraqua Technologies (ETP) after the announcement that two local authorities are delaying spending. There is also a £900,000 exceptional charge relating to defective equipment. A loss of £6m is forecast for 2023-24.

Phase 3 trials of the grass allergy treatment developed by Allergy Therapeutics (AGY) show highly statistically significant reductions in symptoms compared with a placebo. There will be a meeting with the regulators in the first quarter of 2024.

Image Scan (IGE) returned to profit in the year to September 2023 as revenues were 50% ahead at £3m. A further improvement is expected this year. The order book is worth £650,000 with a pipeline of potential work that underpins further growth.

Former ITM Power (ITM) boss Dr Graham Cooley has acquired a 6.6% stake in Distil (DIS). This follows the drinks company’s £765,000 fundraising at 0.35p/share.

MAIN MARKET

RM (RM.) expects 2022-23 revenues from continuing operations to decline from £214.2m to £196m, which includes £19m (£33.6m) from Consortium, which is being closed. The educational technology provider expects to have a significant write-own relating to that business. Management is renegotiating lending facilities.

Kitchenware retailer ProCook Group (PROC) reported an underlying interim pre-tax loss was reduced from £2.8m to £2.2m. Revenues fell, but gross margins have improved, helped by lower freight charges. High street sales are growing, although online revenues have declined due to problems that have been sorted out. In the most recent eight weeks sales were 1.5% ahead

S and U (SUS) says net receivables have grown from £417m to £446m since the half-year end with the growth coming from the car finance and property bridging divisions. Management is cautious about prospects.

AIM 50 Digest 15 December 2023

• BY: Andrew Hore |
• POSTED: 18/12/2023 |

Funds advised by Kohlberg Kravis Roberts are bidding 955p/share in cash for Smart Metering Systems (SMS), which values it at £1.3bn. Shareholders will receive the latest dividend of 8.31875p/share. The board does not believe the progress of SMS has been fully reflected in the market price and they are recommending the bid. In September 2021, the all-time share price high of 1030p.
=====
Language and IP services provider RWS (RWS) is continuing its share price decline this year. It fell a further 9.85% to 223.2p and it is down by two-fifths in 2023. Impairment charges meant that RWS slumped into loss, although the underlying pre-tax profit was 11% lower at £120m. The total dividend is 4% higher at 11.75p/share and that is covered nearly two times by earnings. Reduced costs will benefit this year. The prospective multiple is less than ten.
=====
Business recovery services provider Begbies Traynor (BEG) reported interims in line with expectations. Pre-tax profit was 10% ahead at £9.9m, while the interim dividend was raised 8% to 1.3p/share. Net cash is £1.1m. UK corporate insolvency volumes have risen by two-fifths over the past year. Property services revenues grew faster than insolvency, but organic growth was slower. Following the interims, SDL Auctions was acquired for an initial £2.5m.
=====
Vertu Motors (VTU) says gross profit has been hit by a fall in used car prices because of an increase in supply. Like-for-like used vehicle volumes fell 2% in the quarter to November 2023, which is a lower reduction than in the first half. Lower margin fleet sales are growing strongly. Zeus has reduced its 2023-24 pre-tax profit forecast by 17% to £39.3m. Cinch increased its stake from 6.07% to 7.08%. Two directors also acquired shares and the company’s share buy backs continue.
=====
ITM Power (ITM) says it has signed a deal with Shell enabling it to secure future production capacity of 100MW of Trident electrolyser stacks. Interim revenues will be £7.5m and net cash was £253.7m at the end of October 2023 and there should be more than £175m left by the end of April 2024. The electrolyser technology developer has focused on delivering products to clients and reduced spending. The rate of cash outflow will slow next year.
=====
Iomart (IOM) grew interim revenues from £52.6m to £62m, although organic growth was more modest if higher power costs are excluded. Pre-tax profit edged up from £7.4m to £7.6m. The interim dividend is maintained at 1.9p/share. New chief executive Lucy Dines did not have time to influence these results.
=====
Defence equipment and services provider Cohort (CHRT) reported interim revenues 22% ahead at £94.3m. Pre-tax profit improved from £4.5m to £5.2m. The communications and intelligence division grew fastest. The interim dividend is 10% higher at 4.7p/share. Net cash was £13.3m. The order book is worth £353.9m. This provides an underpinning for further growth over the coming years.
=====
Serica Energy (SQZ) says production has restarted at the Bruce and Titan fields after planned shutdowns. Production rates have been consistently above 50,000 barrels/day in the past month. Even so, because of extended shutdowns production guidance for the full year is unchanged at 40,000-45,000 barrels/day. Work on wells in existing fields will boost production in 2024. The Tailwind integration continues. 
=====
Fintel (FNTL) has acquired financial planning software provider Synaptic Software for £3.5m. It has a customer base of more than 1,600 financial advisers and annual revenues are around £2.3m.
=====
Learning Technologies (LTG) is selling engineering design services provider Lorien Engineering Solutions to NIRAS for $21.4m with completion set for the beginning of 2024. This business will contribute operating profit of $4m in 2023. 
=====
Ashtead Technology (AT.) chief executive Allan Pirie has sold 400,000 shares and Ingrid Stewart 30,000 shares all at 596p each. GB Group (GBG) director David Ward bought 10,000 shares at 230.7p each. Redcentric (RCN) chief executive Peter Brotherton’s son bought 7,020 shares at 128.2p each.

Quoted Micro 11 December 2023

• BY: Andrew Hore |
• POSTED: 11/12/2023 |

AQUIS STOCK EXCHANGE

Watchstone Group (WTG) has £7m in cash, equivalent to 15p/share, and is awaiting the result of attempts to recover VAT payments. Claims and disputes between subsidiaries and Aviva Canada have been resolved and discontinued. The share price jumped 55.6% to 7p.

NHS medical procedures provider One Health Group (OHGR) increased interim revenues by 13% to £11.1m, while underlying earnings improved by one-third to 5.15p/share. The interim dividend has been raised by 22% to 2.03p/share. Demand for the services remains strong and more capacity is being added, including new surgical hubs.

Marula Mining (MARU) is targeting an annual dividend of between 30% and 50% of free cash flow each year. Net cash would have to be £10m after the dividend payment. Phase 1 and 2 drilling has been completed at Blesberg lithium and tantalum project. Further work on mine design and planning will start early in 2024. Martin Westerman has been appointed as chief operating officer.

Tony Wilson has increased his stake in Oscillate (MUSH) to more than 3%, while Steven Bennett has taken his stake to 4.75%. Chris Akers’ shareholding has fallen from 15.6% to 5.9%. Non-exec Stephen Winfield bought an initial one million shares at 0.5p each. Investee company Psych Capital has acquired Short Wave Pharma, which dilutes Oscillate’s stake to 12.75%.

CBD products supplier Voyager Life (VOY) increased interim revenues from £135,000 to £165,000. The loss increased from £511,000 to £528,000. There was cash of £551,000 at the end of September 2023.

Guanajuato Silver (GSVR) has secured a $7.5m gold loan credit facility with Ocean Partners. There will be $4.6m used to pay off a previous loan facility.

Retail carbon trading technology company Ora Technology (ORA) has launched the beta version of Ora Carbon, which is an app that enables investors to become involved in the carbon credit market. The entry point is £1.

Gunsynd (GUN) announced a fundraising yesterday evening. The investment company raised £210,000 at 0.2p/share. This will provide additional cash for investments and fund the running of the company.

Bob Sutcliffe acquired 400,000 DXS International (DXSP) shares at 2.5p each and chief executive David Immelman is deemed to own 40,000 of these shares, taking his stake to 10.25%. After transferring some of the shares to his daughters, Bob Sutcliffe holds 1.3%.

Ormonde Mining (ORM) investee company TRU Precious Metals has confirmed that there is extensive gold mineralisation in the Ryan’s Harmer gold prospect, while sampling of the Mark’s Pond target shows high-grade copper results.

Wishbone Gold (WSBN) says results from the Red Setter project in the Paterson Range in Western Australia confirm a significant gold system with mineralised strike over 3km.

SulNOx Group (SNOX) improved interim revenues from £75,000 to £136,000, while the pre-tax loss edged down from £965,000 to £870,000.

IamFire (LON: FIRE) says investee company WeShop Holdings increased annualised sales by 240% to £28.1m in the three months to November 2023. IamFire has an NAV of 4.9p/share.

Substrate AI (SAI.B) A shares are being admitted to the Access segment of the Aquis Growth Market.

Mark Horrocks has increased his stake in Lift Global Ventures (LFT) from 14.99% to 17.6%.

Arbuthnot Banking Group (ARBB) chairman and chief executive bought 69,941 shares at 975p each.

AIM

Solid State (SOLI) interim revenues were 49% ahead at £88.1m and Custom Power made a full contribution this time. Organic growth was 35%. Pre-tax profit was 39% higher at £7.25p. The interim dividend was raised by 8% to 7p/share. Custom Power will become the overall brand for the group’s power products and the components distribution business has also been rebranded as Solsta.

In 2022-23, Oxford Metrics (OMG) continuing revenues were 53% higher at £44.2m, while pre-tax profit improved from £2.6m to £6.5m. The markerless motion capture technology system is being launched in this financial year. The order book is worth £11.5m. There is still £64.8m in the bank.

English wines maker Chapel Down (CDGP) has switched from Aquis to AIM but not raised any additional cash. The move to AIM triggered the issue of 12.1 million shares to management, which represents dilution of 7%.

Sales have not increased as rapidly as hoped for The Artisanal Spirits Company (ART) and they are expected to be around £23m this year, compared with the previous forecast of £25.2m. The forecast 2023 loss has been raised from £1.7m to £2.7m. A pre-tax profit is no longer expected in 2025. There is potential to improve margins and the value of the whisky cask stocks underpins most of the current market capitalisation, although net debt of £20.4m is forecast for the year end.

Payments services provider Cornerstone FS (CSFS) is the best performer on the day after another positive trading statement. The pre-tax profit forecast has been upgraded from £100,000 to £700,000 with £1.2m forecast for 2024. Cornerstone FS should move to a net cash position during 2024. The number of customers and average value of transactions continues to increase.

Video games company tinyBuild (TBLD) says current trading is below expectations and full year revenues will be between $40m and $50m – a large spread for such a late point in the year. A claim from the vendors of a past acquisition has been settled for $3.5m plus costs. At the end of November, there was cash of $5.7m, which will be lower at the end of the year. There is no debt, but new funding will be required in January. Chief executive Alex Nichiporchik says he will underwrite a fundraising of up to $10m. Other shareholders will be given the opportunity to participate.

Semiconductors developer CML Microsystems (CML) published interims that show modest growth in revenues and flat profit after acquisition costs. The interims to September 2023 cover a period just before the acquisition of Microwave Technology Inc. Revenues improved from £10m to £10.6m, with Asia the strongest region, while pre-tax profit edged up from £1.83m to £1.87m. The semiconductors market is expected to decline this year by a double-digits percentage. The dividend is maintained at 5p/share. Net cash was nearly £21m at the end of September 2023 and since then £1.6m has been paid for the acquisition – with more tranches likely to be paid out of cash flow.

Gooch and Housego (GHH) had a strong second half and full year revenues were 19% ahead at £148.5m, while pre-tax profit was 17% higher at £9.6m. The aerospace and defence division grew revenues most rapidly, but it remains loss making. Management believes that further growth and operating efficiencies can return it to profit. A pre-tax profit of £12.5m is forecast for this year.

The new management team at digitisation services provider TPXimpact (TPX) continues to improve the efficiency of the business and reduce the number of offices. Interim pre-tax profit increased by 50% to £600,000 and TPXimpact is on course for a full year pre-tax profit of £2m. The order book covers a large chunk of the expected second half revenues. Net debt is forecast at £11.3m and it should continue to fall from now on.

Sport-focused data company 4Global (4GBL) increased interim revenues from £1.4m to £1.8m and gross margin improved because of greater scale. The loss was reduced even though overheads increased ahead of expected growth. There is already £3m of revenues booked for the second half.

US-based Spectra Systems (SPSY) is acquiring security printing business Cartor for up to £10.5m in cash and shares, plus £4.5m of low or zero coupon debt. Spectra Systems can use Cartor to help market its Fusion polymer banknote technology. Cartor made a 2022-23 pre-tax profit of £440,000, held back by polymer investment, but it is expected to recover to around £1m this year. The business is well-invested. The Wolverhampton facility is not included in the purchase and a 20-year lease has been taken out with annual rent of £500,000. There are tax losses of £1.9m.

Condor Gold (CNR) says it has five non-binding offers for the La India gold project in Nicaragua. There are advanced discussions with two gold producers. The exercising of warrants has raised £1m at 15p/share and Galloway Ltd, which is controlled by Condor Gold chairman Jim Mellon, owns 25.6%. A placing at the same share price is possible.

Ilika (IKA) says that its Goliath electric vehicle battery has reached lithium-ion energy density parity with existing pouch cells. This justifies the investment in a full pilot facility. Goliath is safer, charges faster and lasts longer.

Future Metals (FME) says a study has indicated the potential for the Panton platinum group minerals project in West Australia. There is an initial nine-year mine life at an average PGM production rate of 117,000 ounces per annum. All-in sustaining costs average $879/ounce. A PFS could be completed by the end of 2024.

MAIN MARKET

Ten Entertainment Group (TEG) has agreed a 412.5p/share cash bid from Neon Buyer, which is owned by funds advised by Trive Capital Partners. It values the ten-pin bowling sites operator at £287m. The takeover should complete in the first quarter of 2023.

Porvair (PRV) is acquiring Belgium-based European Filter Corporation, which produces mist elimination filters. Full year group earnings will be better than expected despite some destocking in certain markets.

The bid for Kin and Carta (KCT) has been raised from 110p/share to 120p/share. That values the company at £220m.

AdvancedAdvT (ADVT) plans to move from the standard list to AIM.

Quoted Micro 4 December 2023

• BY: Andrew Hore |
• POSTED: 04/12/2023 |

AQUIS STOCK EXCHANGE

Valereum (VLRM) shares resumed trading on 27 November. The Gibraltar Stock Exchange acquisition is not going ahead. The convertible loan note funding facility has been terminated. Warrants will be cancelled, and the company will seek to ensure that the shareholder register is accurate. Accounting records will be audited. Karl Moss has been appointed finance director.

Guanajuato Silver (GSVR) is withdrawing from the Aquis Stock Exchange at the end of 2023. It does not believe it can justify the cost of this quotation, which was gained on 25 October 2022, and the TSX Venture Exchange listing. The share price fell 13.5% to 16p. A deal has been signed to terminate the obligation to make contingency payments of $2m to Great Panther in return for offsetting a working capital adjustment owed to the company.

MBH Corporation (M8H) has decided to drop its Aquis quotation on 4 January when it will have been on the market for less than 10 months and concentrate on its Frankfurt quotation. The majority of days there has been no trading on Aquis.

Semper Fortis Esports (SEMP) plans to acquire GL Membership, which trades as Good Life+ and offers prize draws. There are more than 21,000 subscribing members, plus 500,000 email subscribers. A ten-for-one share consolidation will be undertaken and then 500 million shares issued for the acquisition at a price of 2p each. Additional assets are being bought from Chadd Media. A subscription will raise £1.4m at 2p/share. Investors include the family office of Sportingbet founder Mark Blandford.

Marula Mining (MARU) has commenced phase one exploration at the Nyorinyori and NyoriGreen graphite projects in Tanzania. The focus is the high-grade and jumbo flake graphite mineralisation, which is thought into extend in the NyoriGreen licence. The initial findings should be reported in January. Ore commissioning at the new ore sorter at the Blesberg lithium and tantalum project in South Africa should be completed at the end of January. The expanded processing plant should be commissioned in the first quarter of 2024.

Coffee shop owner Cooks Coffee Company (COOK) reported flat continuing revenues of NZ$2.04m and it has gone from a pre-tax profit of NZ$125,000 to NZ$319,000. There was a NZ$5.27m loss on discontinued operations. In October, there were record sales per store. A regional developer has been appointed to increase the number of stores in southwest England. By March, Cooks Coffee expects to have up to 80 Esquires outlets in the UK and Ireland by March. Oberon Capital has been appointed corporate adviser.

Helium Ventures (HEV) plans to change its investment strategy to focus on technology businesses. The name will be changed to Eastwood Capital.

VSA Capital (VSA) says that the owners of a 19.8% stake in Lush Cosmetics and Lush Cosmetic Warriors who agreed to sell the stake to Aquis-quoted Silverwood Brands are asking the broker to help unwind the transaction. Lush blocked the transfer of the shares. The original owners of the stake are threatening legal action if VSA Capital does not comply with the request and return the commission it earned on the transaction. VSA Capital says the claim has no merit.

Quantum Exponential Group (QBIT) investee company Oxford Quantum Circuits is raising $100m and launching OQC Toshiko, the first enterprise ready quantum computing platform. A Japanese venture capital fund. Quantum Exponential currently holds a 0.34% stake, and it will not participate in the fundraising.

Coinsilium Group Ltd (COIN) has signed heads of agreement with Indorse for a strategic share acquisition transaction for an additional 14.76% stake, taking the total stake in Indorse to 24.9%. Coinsilium will issue 65 million new shares for the additional stake.

Vulcan Industries (VULC) has finally published its accounts for the year to March 2023. The loss was £1.02m, although there was also an extraordinary profit of £1.59m on discontinued activities. The loss-making businesses have been sold. The company is moving into renewables.

Pharma C Investments (PCIL) is asking shareholders to agree to a new investing policy covering technology, fintech and AI.

IamFire (FIRE) is changing its name to WeCap and the discounted capital bonds held by Hawk Investment are being extended to 24 November 2024.

Voyager Life (VOY) says some of its CBD-based pet care products are being stocked by Pets at Home.

Aquis Exchange (AQX) says that the Aquis Stock Exchange has become the first recognised investment exchange to run on a cloud-based engine, which determines trades.

DXS International (DXSP) has secured grant funding of £409,000 jointly with Health Innovation East for research and development for AI prescribing system ExpertCare.

KR1 (KR1) had an NAV of 56.14p/share at the end of the November 2023. The digital assets generated income of £395,437.

TruSpine Technologies (TSP) says its working capital position remains weak.

Clean Invest Africa (CIA) has raised £210,000 from a placing at 0.35p/share.

Oscillate (MUSH) says all directors will receive their salaries in shares from the beginning of 2024. They will be issued at the mid-price on the day before the payment. Executive director Steven Xerri bought 6.29 million shares at 0.42p each, taking his stake to 7.8%.

AIM

Safety and regulatory compliance services provider Marlowe (MRL) achieved organic growth of 6% in the first half, but this did not show through in underlying earnings, which fell 15% to 18.9p/share. A strategic review is underway and non-core businesses could be sold. Full year earnings have been downgraded by 7% to 44.3p/share.

Wynnstay Group (WYN) says second half trading conditions are tough. Farm gate prices are weaker and wet weather has also hampered progress. That hit arable and feed business, while the merchanting division also suffered lower volumes. Shore has reduced its full year pre-tax profit forecast from £10.7m to £9.4m.

Siemens has sold its entire 11.2% stake in Sondrel (SND) for £589,000. The placing price was 6p. The semiconductors designer raised £17.5m at 55p/share when it joined AIM in October 2022. Project delays have hit revenues and knocked the share price. Siemens has been a long-term partner and was granted the status of preferred supplier of electronic design automation software for a 36-month period at the time of the flotation.

Film and video services provider Zoo Digital (ZOO) had already warned that interims would be poor with the EBITDA loss of $7.1m, but the ending of the actors’ strike in the US means that the outlook is more positive. Film and TV programme production can get going again providing a flow of work. EBITDA breakeven should be achieved in the fourth quarter and new clients have been won. A pre-tax profit of $1.4m is forecast for 2024-25 as work returns to normal levels and new business comes on stream.

Forward Partners (FWD) has agreed an all-share bid from fellow technology investment company Molten Ventures (GROW), valuing it at £42.1m. Molten Ventures is offering one share for every nine Forward Partners shares, which is equivalent to 31p/share when the bid was announced. At the end of September 2023, Molten Ventures had a NAV of 735p/share, while at the end of June 2023 Forward Partners had a NAV of 67p/share.

Mind Gym (MIND) says clients are delaying hires and related spending. The interim revenues fell from £26.8m to £20.9m and the human resources training and education company fell into loss. Annualised costs have been cut by £8m, with £3m showing through in the second half. A full year pre-tax loss of £2.5m is forecast and Mind Gym may have a small net debt position at the year end in March 2024. The company should return to profit next year as revenues recover and the cost savings kick-in.

Interims from Supreme (SUP) reported record interim revenues of £105.1m and the growth came from all divisions. Branded distribution and vaping were the strongest divisions. Interim underlying pre-tax profit doubled to £12.6m. Investment in stocks meant that net cash became net debt of £4.8m. Full year pre-tax profit of £28.4m is forecast by Zeus.

The second and third diamond drill holes at the Pitfield project owned by Empire Metals (EEE) provided more positive news with the highest grades of titanium so far. The results suggest that the resource is much greater than previously thought. The focus becomes identifying high grades at shallower depth. The additional drilling will lead to mineral resource studies.

Healthcare services provider Totally (TLY) is restructuring its business after a tough first half. Revenues were one-fifth lower at £55.8m due to lower urgent care business levels. Annualised cost savings of £3m have been made and there could be more to come. Share buying by directors has not stopped the share price decline. New chair Simon Stilwell bought one million shares at 6.1p each, while non-exec Michael Rogers acquired 40,000 shares at 5.333p each.

Tintra (TNT) intends to cancel its AIM quotation. A general meeting will be held on 4 January to gain shareholder approval. Management bemoans that the share price is too low and believes that direct costs can be reduced by £505,000 - which is ridiculously high for a company of this size - by leaving AIM. It is strange that the management has let them get out of control. That is before any indirect costs. A Middle East investor may become a partner and one of the conditions of the deal is the AIM cancellation. There is talk of a potential Middle East listing. JP Jenkins will provide a matched bargain facility, although the minimum bid price is apparently going to be set at 150p/share for the first nine months.

Antibody discovery and supply company Fusion Antibodies (FAB) is collaborating with the US-based National Cancer Institute in the use of its OptiMAL technology for the discovery of antibodies for specific cancer targets. Fusion Antibodies will not have to commit significant resources to the collaboration.

RUA Life Sciences (RUA) took advantage of last week’s share price surge to raise £4m at 11p/share. There is also a retail offer that closes on 7 December. That could raise up to £750,000.

Vela Technologies (VELA) has exercised the put option to sell the interest in AZD1656, which relates to a Covid application, to Conduit Pharmaceuticals for £3.75m in shares. In September, Conduit Pharmaceuticals completed its IPO on Nasdaq.

MAIN MARKET

Ondo InsureTech (ONDO) has raised £1.08m at 20.5p/share. This will finance working capital for recent contract wins by the claims prevention technology company.

Kelso Group Holdings (KLSO) has taken a 3% stake in AIM-quoted Angling Direct (ANG) at an average price of 35.1p/share. THG (THG) boss Matthew Moulding has bought a 3.2% stake in Kelso, which owns 0.6% of THG.

Cardiff Property (CDFF) improved its net assets to £28.44/share. That includes cash and deposits of £10.8m, which is more than one-third of the total.

Creightons (CRL) says that managing director Bernard Johnson’s employment has been terminated and he has left the board.

AIM 50 Digest 1 December 2023

• BY: Andrew Hore |
• POSTED: 04/12/2023 |

Electrical connections and accessories supplier Volex (VLX) had a mixed first half but continued to grow. In the six months to September 2023, revenues were 11% ahead at $397.5 million. There was a one-month contribution from the new acquisition. Pre-tax profit was 2% ahead at $22 million. The interim dividend is 8% higher at 1.4p/share. Electric vehicles have been a growth area, but destocking hit the interim figures – this is a temporary downturn in a fast-growing sector. Consumer electricals was also weaker, but better performances in medical and complex industrial technology have offset this decline. Supply chains are improving.
=====
Airline and tour operator Jet2 (JET2) improved interim pre-tax profit from £505m to £665m. The full year expectation is £500m. A second half loss is normal and winter capacity has been increased. However, the consumer is becoming more price conscious and profit could fall next year.
=====
SigmaRoc (SRC) has published the readmission document following the announcement of the purchase of the European lime assets of CRH (CRH). The building materials supplier has raised £200m via a placing at 47.5p/share with a further £1.3m raised from an offer. CRH is taking a 15.4% shareholding. The total consideration for the lime assets is $1.1bn, which is in three phases with the initial acquisition of assets in Germany, Czech Republic and Poland. In 2022, revenues were around $610m and EBITDA was $137m.
=====
Engineering services provider Renew Holdings (RNWH) continues to demonstrate its consistent progress. In the year to September 2023, revenues were 13% ahead at £960.9m, although the operating margin declined. Underlying pre-tax profit improved from £58.3m to £62.8m, which included a £3.9m contribution from other operating income. The specialist building division made a smaller profit contribution. The dividend was raised from 17p/share to 18p/share. Net cash is £35.7m. The order book is worth £860m.
=====
Grocery distributor Kitwave (KITW) has acquired Oldham-based drinks wholesaler Wilds of Oldham. The business has an annual turnover of £10.2m.
=====
Floorcoverings manufacturer Victoria (VCP) reported interims in line with expectations but warned that the second half was likely to be tougher. There was a dip in interim EBITDA from £100.1m to £95.8m on lower revenues. North America was the one region where profitability improved. There are cost savings to come, but the weaker markets will offset some of this benefit. Singer forecasts a decline in full year pre-tax profit from £76.9m to £60.5m.
=====
Vets operator CVS Group (CVSG) says sales were 12% ahead in the first four months of the financial year. Like-for-like sales were 5.8% higher. Margins are being maintained. Up to £50m in capital spending is anticipated for this year. Four acquisitions have been completed in Australia and two in the UK.
=====
Aquaculture company Benchmark (BMK) improved full year revenues by 7.5% to £169.6m and generated net operating cash of £20m through the reduction of the working capital outflow. Genetics and health revenues grew, but that was offset by lower revenues from advanced nutrition.
=====
GB Group (GBG) reported slightly lower interim revenues of £132.4m, while underlying operating profit before forex gains improved from £21.8m to £23.6m. A pre-tax loss was reported after an impairment charge. There will be stronger margins in the second half.
=====
Information management software provider Idox (IDOX) traded in line with expectations last year with revenues rising 11% to £73m and EBITDA 9% ahead at £24.5m. Net debt is £14.7m.
=====
Victorian Plumbing (VIC) is showing signs of recovery with full year revenues 6% higher at £285.1m. Underlying pre-tax profit recovered by 29% to £20.3m, helped by reduced shipping costs and higher own-brand sales. The dividend was raised by 27% to 1.4p/share. Revenues and margins continue to improve.
=====
Managed services provider Redcentric (RCN) improved interim underlying pre-tax profit from £2.5m to £2.9m. Full year pre-tax profit is set to recover from £5.1m to £7.1m as recent acquisitions are integrated. That should be enough to cover an unchanged dividend of 3.6p/share.
=====
Impax Asset Management (IPX) had £37.4bn of assets under management at the end of September 2023, an annual increase of 5%. The growth came from a strong investment performance. The results were slightly better than expected with underlying operating profit falling from £67.4m to £58.1m.
=====
Polar Capital (POLR) had assets under management of £19.2bn at the end of September 2023, which is similar to six months before. They had fallen to £18.9bn by 10 November. Interim core operating profit fell from £25.8m to £22.5m.
=====
Jersey Oil & Gas (JOG) has secured a second farm out agreement for its Greater Buchan Area project in the UK North Sea with Serica Energy (SQZ). The terms of the agreement are similar to the one secured with NEO. Serica Energy will earn up to 30% for a mix of cash and capital investment - $6.8m is payable on completion. Jersey Oil & Gas is fully funded until first oil for the Buchan field redevelopment.
=====
Ashtead Technology (AT.) has acquired ACE Winches for £53.5m. ACE Winches provides equipment to support installation and maintenance of offshore energy infrastructure and it has a significant rental fleet. In the year to March 2023, EBITDA was £10m.
=====
James Halstead (JHD) says that in the first five months of the financial year output and profit are ahead of the same period last year. Cash levels are also much higher.
=====
Pan African Resources (PAF) says that its operations are performing in line with or better than expected. Gold production for the six months to December 2023 will be in the range 94,000-98,000 ounces. It increased production guidance for 2023-24 to 180,000-190,000 ounces.
=====
Next 15 Group (NFG) says revenues were 2.5% ahead in the first quarter. Trading is in line with expectations with improving margins. Net debt levels are modest.
=====
Cinch Holdings has increased its stake in Vertu Motors (VTU) to 6.07% and Nivag Holdings has taken a 3.31% shareholding.
=====
Johnson Service Group (JSG) has completed its £10m share buy back with an average purchase price of 132.1p/share. 

Quoted Micro 27 November 2023

• BY: Andrew Hore |
• POSTED: 26/11/2023 |

AQUIS STOCK EXCHANGE

Guanajuato Silver (GSVR) produced 787,086 ounces of silver equivalent and the loss fell by one-fifth to $7m when compared with the second quarter. The all-in sustaining cost increased to $26.22/ounce due to changes in mining and temporary closures.

SuperSeed Capital (WWW) generated 78% IRR combined from two exits. There were £220,000 of realised gains in the nine months to September 2023. There is £430,000 of cash on the balance sheet. NAV is 112p/share.

Vinanz Ltd (BTC) has teamed up with Luxor Technology Corp to improve its bitcoin mining operating efficiency. Luxor’s firmware improves mining margins when profitability is low and can increase a machine’s hashrate when profitability is higher.

Wishbone Gold (WSBN) has secured an option to acquire 100% of the Crescent East lithium and gold project in the Mosquito Creek area of Western Australia. Shares were issued at 1.25p each to pay the £25,000 option fee.

Fuel additives developer SulNOx Group (SNOX) has successfully demonstrated the effectiveness of drop-in fuel conditioner SulNOxEco in the shipping sector. Monaco-based dry-bulk ship management company Marfin Management trialled the additive onboard a 60,000 MT DWT bulk carrier over a three-month period. This showed improvements in fuel consumption.

Cadence Minerals (KDNC) says investee company Hastings Technology Metals has agreed a $50m equity funding facility for the Yangibana rare earths project. Hastings Technology Metals can draw down up to $50m from Alpha Investment Partners to provide working capital for the development of the mine. Project financing talks are progressing and there have been offers from potential partners and debt providers. Cadence Minerals has a 1.4% stake in the investee company.

Steve Xerri, who owns 4.81%, has been appointed as an executive director of Oscillate (MUSH) and he intends to focus on special situations either through individual investments or via a reverse takeover.

One Health Group (OHG) has gained two new contracts with NHS Trusts. One is to supply orthopaedic services and the other is for orthopaedic and gynaecology services. They will help to reduce waiting lists.

Apollon Formularies (APOL) says Sproutly Canada has completed due diligence on the acquisition of the company’s global cannabis-related assets in return for 49% of the enlarged share capital of Sproutly Canada. The effective valuation is likely to be around £4.2m. Regulatory approvals are required.

Kasei Holdings (KASH) has a digital asset portfolio worth $2.07m at the end of October 2023.

EDX Medical (EDX) has entered into a collaboration with Thermo Fisher Scientific. They will jointly develop and commercialise cancer diagnostics.

Looking Glass Labs (NFTX) has raised $1m at $0.10/unit – one share and one warrant exercisable at $0.10/share. A further ten million units have been swapped for $1m of debt. Further sources of finance are being sought.

Quantum Exponential Group (QBIT) has appointed VSA Capital as corporate adviser, while Pharma C (PCIL) has appointed First Sentinel as its corporate adviser.

Res Privata NV has increased its stake in NFT Investments (NFT) from 3.33% to 4.09%.

AIM

Telecoms enterprise software provider Cerillion (LON:CER) grew strongly last year, while the rate of growth might slow this year it is still likely to make good progress given the recent €12.4m contract win. In the year to September 2023, revenues were one-fifth higher at £39.2m, while underlying pre-tax profit was two-fifths ahead at £16.8m, helped by a reduction in impairment charges from £1.77m to £256,000. The growth has come from software with a dip in services revenues. Net cash reached £24.7m at the end of September 2023. The dividend has been raised from 9.1p/share to 11.3p/share.

Light Science Technologies (LST) is acquiring the Injecta Fire Barrier trade and assets from Fire Barrier International. The Injectaclad product expands when heated and prevents the spread of fire and smoke. There is no initial payment with consideration in the form of a deferred profit share agreement. The deal should be earnings enhancing and generate cash. There are maintenance and installation synergies with the contract electronics subsidiary. The cash generated will help to finance the growth of the group.

Video games developer Team17 Group (TM17) says 2023 trading is slightly better than expected, although some titles are not performing as well as anticipated and that has hit margins. There has also been overspending and delays on some development projects. That means that underlying EBITDA will be around one-sixth lower than forecast at around £40m. Some titles are being reassessed and that is likely to lead to impairment charges of up to £11.5m.

Parity (PTY) announced the sale of its remaining business yesterday afternoon. It will become a cash shell. Parity will receive up to £3m depending on working capital adjustments for recruitment business Parity Professionals. The deal costs will be £240,000. There will be £639,000 including costs spent to settle the pension liability and finance the search for an alternative business. The company will change its name to Partway.

Velocys (VLS) is the worst performer on the day after the sustainable fuels company said that there is a potential bid at 0.25p/share from a consortium including Lightrock and Carbon Direct Capital Management. This would ensure long-term funding of the business. The low share price makes it difficult to finance the sustainable fuels operations. The share price dived 63.7% to 0.25p, which values Velocys at £4.5m. A large multiple of that value needs to be raised to fund development and production. Interim funding will be required.

musicMagpie (MMAG) is in bid talks with BT Group (BT.A) and asset manager Aurelius. The talks are at an early stage.

Cyber software and services provider Shearwater Group (SWG) appears set to return to profit this year. The core software businesses have been integrated, as have two of the three consultancy businesses. In the six months to September 2023, revenues dipped from £10.8m to £10.5m. That was due to much lower software revenues.  Even so, gross profit improved and, stripping out amortisation and exceptionals, the underlying loss reduced £493,000 to £93,000. That is before restructuring costs. The cost savings will show through in the second half.

Telecoms testing instrumentation supplier Calnex Solutions (CLX) has been hit by a reduction in spending by telecoms companies. In the six months to September 2023, revenues slumped from £12.7m to £7.8m and the company moved from a pre-tax profit of £3.1m to a loss of £600,000. Trading did not pick up in September as is normally the case. Non-telecoms revenues make up one-quarter of total revenues. The cost base is being kept steady in expectation of a recovery, even though that may not be until the next financial year. There is £13.5m in the bank.

There were no revenues from systems in the first half at SRT Marine Systems (SRT), but that will change in the second half when transceivers revenues will be well below the systems contribution as work on contracts reaches points where revenues can be invoiced and recognised. Interim revenues fell from £18.8m to £5.5m, although transceivers revenues were higher. Last year’s loss could be turned into a £7.2m profit this year.

Battery technology developer Ilika (IKA) has achieved its D4 development point for the Goliath battery. This is the start of turning the development into a battery product. Ilika will be able to create P1 samples for testing by customers. At the end of the week, Ilika confirmed that its interims will be in line with expectations with revenues of £1.3m and there is £13.2m in cash left.

Neometals (NMT) has completed the A$9m from a placing at 10p/share and wants to raise a further £6.8m from a one-for-eight entitlement offer. The cash will fund the development of the nickel, cobalt, lithium recycling business Primobius, including the delivery of a facility to Mercedes Benz, and potentially to purchase a stake in Canadian licensee Stelco.

Empire Metals (EEE) has released initial results for the first diamond drillhole at the Pitfield project in Western Australia. This shows significant grades of titanium oxide. There will be results from two more diamond drilling holes in the coming weeks. A further 6,000 metres of drilling is planned with more likely early next year. Copper is still potentially in the area as well.

Interim figures from diagnostics company Cambridge Nutritional Sciences (CNSL) showed the benefits of concentrating on its core personalised health and nutrition business. Revenues rose 44% to £4.9m and the loss was reduced. Production problems have been sorted out. There was strong growth in North America as management puts more resources into the region. A small full year loss is expected.

Lifestyle concierge services provider Ten Lifestyle (TENG) has moved into profit for the first time. It swung from a loss of £2.7m to a pre-tax profit of £3.2m thanks to economies of scale. There was also a tax credit recognised due to past tax losses. Investment in its digital platform and the international spread of business is helping Ten Lifestyle. New contract wins will help to increase this year’s pre-tax profit to £3.9m, according to Singer.

Gold explorer Oriole Resources (ORR) has announced heads of terms with contractor BCM International for the development of the Bibemi and Mbe gold projects in Ghana. BCM can earn up to 50% of the Bibemi project by making a cash payment of $500,000 and commit to spend $4m on the project. BCM will pay $1m in cash and spend a further $4m to earn a 50% stake in Mbe project.

Mercia Asset Management (MERC) has exited one of its older investments, raising £30.2m – a 2.7 times return on invested capital. Virtual reality games developer nDreams has been acquired by Aonic for £90.3m. This was Merica Asset Management’s largest investment and £3.8m of the proceeds are being reinvested in Aonic. The consideration was 17.5% ahead of the March 2023 valuation.

Duke Royalty (DUKE) generated a 17% increase in recurring cash revenues to £12.2m with a 35% increase in all cash revenues to £14.1m. During the period, Duke Royalty made one of its biggest initial investments in glass architectural products supplier Glasshouse Products. The $11.5m investment is backing a member of the original founding family buying back the business.

Maritime AI provider Windward (WNWD) has signed a five-year contract with a European national coastguard that is valued at €3.2m. The cash is expected to be paid upfront, while annual contract value will be increased by $700,000/year.

MAIN MARKET

Structural steel supplier Severfield (SFR) reported lower interim revenues, but a higher profit. In the six months to September 2023, revenues were 8% lower at £215.3m, but underlying pre-tax profit improved 17% to £14.2m. This includes an unchanged contribution of £600,000 from the India joint venture, while the modular products business made a maiden profit. The interim dividend was raised 8% to 1.4p/share. The UK and Europe order book is worth £482m, even though the £50m contract for Hertfordshire-based film studio Sunset Studios has been delayed.

Standard list shell Tertre Rouge Assets (TRE) is attempting to raise up to £50m to buy rare cars and acquire cash generative businesses involved in supercar events. Around £30m is set to be invested in a range of cars that have already been identified. They are worth between £1m and £10m. The plan is to generate gains on these investments -15% annual returns are targeted - while hiring them out to photoshoots and other income generating activities to cover overheads. The Run To Group Ltd, which organises supercar adventures to the Monaco Grand Prix, will also be acquired and management will remain with the business. The group’s board of directors includes racing drivers and business men and they can expand this business and others. There will be cash left over to buy other companies.

Packaging manufacturer and distributor Macfarlane Group (MACF) says lower volumes and prices meant that revenues fell 2% in the nine months to September 2023. New customers are being attracted and this will help future volumes. Margins are increasing.

Seraphim Space Investment Trust (SSIT) improved its NAV to 96.5p/share at the end of September 2023. That was helped by positive currency movements and a small uplift in valuations, predominantly due to a fundraising by an investee company.

Quoted Micro 20 November 2023

• BY: Andrew Hore |
• POSTED: 20/11/2023 |

AQUIS STOCK EXCHANGE

Marula Mining (MARU) has completed the phase 1 drilling programme at the Blesberg lithium and tantalum mine. The 21 holes were finished ahead of schedule and assay results are awaited. Phase 2 drilling has started and 15 out of 21 holes have been completed. Financial forecasts for the planned open pit hard rock mining plan.

Valereum (VLRM) says that the Gibraltar Stock Exchange is surrendering its licence and closing its markets. Valereum still wants to acquire the Gibraltar Stock Exchange and holds a fixed charge over a 50% stake. The plan would be to apply for a new licence. Alan Gravitz has left the board.

Ananda Developments (ANA) subsidiary MRX Medical has signed a drug supply agreement with the University of Edinburgh and the Lothian Health Board. The MRX1 cannabidiol oil formulation will be used in a trial for the treatment of chemotherapy induced neuropathic pain.

Gunsynd (GUN) has paid the first tranche of £250,000 for a farm-in agreement with Metals One. Gunsynd will hold Finnaust Mining Northern. Gunsynd has sold 1.24 million shares in Charger Metals for £257,000. It retains 1.3 million shares.

Vinanz Ltd (BTC) has already spent some of the money raised at the beginning of November to acquire 171 bitcoin miners in North America. The plan is to buy a total of 250 bitcoin miners. Vinanz currently holds 9.1 bitcoin.

Cadence Minerals (KDNC) says its subsidiary has issued a request for consultations and negotiations to the Mexican government concerning the possible revocation of the mining concessions for the Sonora lithium project. These concessions are held by joint venture companies, where Cadence Minerals has 30% stakes.

Quantum Exponential (QBIT) has converted its £450,000 investment in Universal Quantum in exchange for 84 million shares at 5319.47p each. A one-for-1,000 share split will happen after the share issue. This means that the subsequent 84,000 shares will be 0.51% of buildable quantum computers developer Universal Quantum.

Wishbone Gold (WSBN) says initial mineralised results from the first half of the Cottesloe project in Western Australia. The company expects full results during next January.

Oberon Investments (OBE) has switched from the Access to Apex segment of the Aquis Stock Exchange.

SuperSeed Capital (WWW) has adjusted its NAV figure for the end of June 2023. It has been reduced from 1.184p/share to 1.121p/share.

Wheelsure Holdings has received potential financing and acquisition approaches, but nothing has been finalised and it is running short of cash. The shares have been suspended and the quotation cancelled on 15 November. Talks continue.

Tunch Kashif reduced his stake in ChallengerX (CXS) from 21.6% to 17.9%. Mark Horrocks has increased his shareholding in Lift Global Ventures (LFT) from 13.3% to 14.99%.

AIM

Hotel Chocolat (HOTC) is recommending a 375p/share bid from Mars, which values the chocolate company at £534m. Mars is keen to help Hotel Chocolat expand into new regions. The track record of the current management when it comes to international expansion has been mixed and it will help to have a larger company with greater resources backing the expansion. Shareholders can accept an alternative offer of one rollover share in the bid vehicle for each share. The value of these shares will be dependent on the performance of the business, and this would be taking a risk.

Verici Dx (VRCI) has entered into an exclusive licence agreement with Thermo Fisher for its pre-transplant prognostics. This will generate staged payments of $5m over the next 12 months, plus future royalties of per test. That means that Verici Dx will have enough cash until the end of 2024. Thermo Fisher has the commercial expertise to roll out the technology and it will further develop the product.

City Pub Group (CPC) is also the subject of an agreed bid. Young & Co’s Brewery (LON: YNGA) is offering 108.75p in cash and 0.032658 of an A share for each City Pub Group share, valuing it at 145p/share or £162m. The share price jumped 52.5% to 136.5p. Young’s has been seeking to grow its managed pubs business and believes it is rare to have the opportunity to acquire such an attractive portfolio of pubs. The deal will increase the number of pubs owned by 50 to 279. A significant amount of City Pub Group’s central overheads of £5.6m could be saved by the combined group and there could be other savings. Young’s shares rose 1.86% to 1095p.

AMTE Power (AMTE) has secured a short-term financing. The battery technology developer will receive £2.5m from a subscription by Pinnacle International Venture Capital at 1.7p/share and it is also providing a £200,000 convertible loan facility. A placing will raise a further £400,000 at 0.5p/share. A general meeting is required to approve the subscription.

Jarvis Securities (JIM) has confirmed it is not paying a fourth quarter dividend. The FCA is planning a further review into the company’s operations, including the approach to uninvested cash and interest retention. This report has to be delivered by the end of February 2024.The voluntary restrictions on the business are continuing and another review is required before they can be lifted. The reviews have cost more than £1.3m this year.

AFC Energy (AFC) is purchasing Octopus Hydrogen’s UK mobile hydrogen storage and distribution assets. These assets can be used to provide a hydrogen fuelling service for H-Power generator units rented by new partner Speedy Hydrogen Solutions and other future users of hydrogen powered equipment.

Celadon Pharmaceuticals (CEL) has secured a new sales contract with a European medicinal cannabis company that could generate up to £26m over a three-year period. The first delivery will be in the second half of 2024. The cannabis grower and drug developer will supply pharmaceutical-grade cannabis. There are other interested buyers.

Autonomous vehicles developer Aurrigo International (AURR) has launched a placing to raise at least £3.5m at 100p/share and there will also be a retail offer at the same price. Coventry-based Aurrigo International won the best newcomer title at the 2023 AIM awards, having floated AIM on 15 September 2022 at 48p/share. Aurrigo International had cash of £2.8m at the end of June 2023 after a £1.9m outflow from operations in the first half. There will be £1.5m spent on customer roll out and £400,000 for additional staff.

Chain and transmission equipment Renold (RNO) reported strong interims with revenues 8% ahead at £125.3m and pre-tax profit 55% higher at £11.3m. The revenues and margins of the transmission business have jumped as the new MoD contract builds up. The chain division also grew revenues and margins. Order intake has slowed, but that is at least partly down to there being more confidence in the supply chain.

Freight and parcel delivery company DX (DX.) is recommending a 47.5p/share bid from HIG European Capital Partners, which values the company at £315m. The shares have gone ex-dividend, and the final dividend of 1p/share will be paid on 7 December. That reduced the level of the bid.

DP Poland (DPP) says third quarter like-for-like sales in Poland were 14.1% higher and they were 34.8% ahead in October. The Croatian business is growing even faster. Singer believes the pizza retailer could move into profit in 2024.

Initial results from drilling at the Wedding Bell and Radium Mountain owned by Thor Energy (THR) confirm the potential of the US uranium projects. More than 50% of the 25-hole drill programme has been completed. The initial results come from downhole gamma logs and handheld pXRF devices to determine anomalous levels of uranium and these will be sent to laboratories for final analysis.

Blue Star Capital (BLU) investee company SatoshiPay has appointed Benchmark International to value the business and seek potential acquirers. Blue Star Capital owns 27.9% of SatoshiPay.

Saietta Group (SED) says that its 49.5% owned Indian joint venture has secured an order for complete eDrives from its main client for a second of its light commercial vehicles. The initial order is worth £106,000 over three months and the first full year of production could generate £12.7m. This is the first significant order for the new radial flux technology.

MAIN MARKET

Data integrity and banking integration software provider Gresham Technologies (GHT) is losing business with ANZ its biggest customer. The company will no longer provide sub-contracting services, but ANZ will still use its Clareti software. This was lower margin work, and the focus is on software.

J Smart (Contractors) (SMJ) reported a higher loss on contracting and did not have any disposal gains in its investment activities. That meant that pre-tax profit fell £8/19m to £105,000. There was an operating loss offset by interest income. A 2.27p/share dividend is payable on 29 January.

AIM 50 Digest 17 November 2023

• BY: Andrew Hore |
• POSTED: 20/11/2023 |

City Pub Group (CPC) is also the subject of an agreed bid. Young & Co’s Brewery (YNGA) is offering 108.75p in cash and 0.032658 of an A share for each City Pub Group share, valuing it at 145p/share or £162m. The share price jumped 37.4% to 136p. Young’s has been seeking to grow its managed pubs business and believes it is rare to have the opportunity to acquire such an attractive portfolio of pubs. The deal will increase the number of pubs owned by 50 to 279. A significant amount of City Pub Group’s central overheads of £5.6m could be saved by the combined group and there could be other savings. Young’s shares fell 0.45% to 1105p. Young’s interims showed a 5% improvement in revenues to £196.5m, while underlying pre-tax profit improved 12% to £28m. The interim dividend is 6% higher at 10.88p/share. Managed pub revenues continue to grow.
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Tatton Asset Management (TAM) continues its impressive growth in assets under management, which have passed £15bn this month. There was a small performance gain in the first half, but the growth has come from net inflows of around £150m/month. The growth has led to improving margins and that more than made up for a dip in profit contribution from the Paradigm mortgage-related business. Earnings grew 6% to 10.52p/share. The dividend is being rebased with a 78% increase in the interim to 8p/share.
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Grocery and catering distributor Kitwave (KITW) confirms it is on track to achieve revenues of £600.9m and pre-tax profit of £27.5m for the year to September 2023, up from £503.1m and £18.9m. That forecast has been raised six times in less than three years.
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Team Internet Group (TIG) reported further growth in its business, but the weaker digital advertising market reduced the rate of growth for the online marketing division. It still grew 15% over nine months, while there was a strong performance by the domain names business. Group revenues were 16% ahead at $611.7m, while lower gross margin meant that EBITDA was 11% ahead at $68.8m.
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Digital marketing technology and services provider Dotdigital (DOTD) grew full year revenues from £62.8m to £69.2m, while pre-tax profit improved from £14.5m to £15.4m. North America is getting back to growth, but Asia Pacific is still growing fastest. This was before the £25m acquisition of Fresh Relevance, which accelerated technology development.
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Zeus has upgraded its forecasts for Fintel (FNTL) following two acquisitions. VouchedFor is a review site for financial advisers, mortgage advisers, solicitors and accountants and many of Fintel’s clients currently subscribe to a rival. AKG is a financial strength ratings consultancy. They will not have a significant effect on 2023, but they should add £3.1m to 2024 revenues. However, there will be a small reduction in forecast earnings to 13.1p/share.
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Business recovery services provider Begbies Traynor (BEG) has acquired Andrew Forbes, which is a chartered surveyor, for up to £1m, with an initial £500,000 paid. This will fit with the property services division and strengthens the business in south west England. It will contribute £250,000 of annul profit.
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Audio visual products distributor Midwich Group (MIDW) has acquired 51% of Germany-based prodyTel Distribution for £7.4m and there are put/call options over the other 49% for a fixed price of £7.1m. Annual revenues are £19.2m and pre-tax profit around £3.5m. The company had net cash of £600,000 on completion. 
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Cinch has increased its stake in motor dealer Vertu Motors (VTU) from 3.1% to 4.15%. Vertu Motors has corrected the Companies House records and obtained an injunction against the person that made the false amendments.
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Light fittings manufacturer FW Thorpe (TFW) says that orders and revenues are marginally ahead of the same period last year, but interim results are likely to be similar to last year.
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Identity services provider GB Group (GBG) chief executive Chris Clark will be replaced by Dev Dhiman, who currently runs the Asia Pacific division, at the end of January 2024.
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Electrolysers developer ITM Power (ITM) has launched its Hybrid Stack, which provides a 10% efficiency improvement.
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Big Technologies (BIG) finance director Daren Morris bought 5,000 shares at 177p each. FD Technologies (FDP) chief executive Seamus Keating has acquired 10,500 shares at 926p each and finance director Ryan Preston bought 2,786 shares at 922p each. 
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Gresham House Asset Management has increased its stake in Iomart (IOM) from 11.2% to 12.8%.

Quoted Micro 13 November 2023

• BY: Andrew Hore |
• POSTED: 12/11/2023 |

AQUIS STOCK EXCHANGE

Shares in wine maker Chapel Down Group (LON: CDGP) revealed firm plans to move to Aim, probably on 7 December. This could lead to an additional 10.8 million shares being issued, which would represent 6.5% dilution, to simplify the share structure. There will be no cash raised at the time of the move. The latest harvest was of 3,811 tonnes of grapes, which is 86% more than in 2022. This should be enough for 3.4 million bottles of wine, including a greater amount of sparkling wine.

Vinanz Ltd (BTC) raised £350,000 at 3p/share at a premium to the then market price. During the week the share price jumped 135% to 6.75p. The cash will be used to buy 250 bitcoin miners, which will triple the bitcoin mining capacity in North America. Vinanz hopes to have the new machines up and running by the end of the year. Vinanz should be able to generate bitcoin worth $1.2m each year.

Field Systems Design (FSD) increased turnover from £8.09m to £13.75m in the year to May 2023, while the mechanical and electrical contractor swung from a loss of £1.9m to a pre-tax profit of £287,000. This was despite the slow build up of water sector work, but this is set to change. Volumes should continue to grow. There was £2.26m in cash at the end of May 2023.

Daniel Thwaites (THW) interim revenues improved from £57.9m to £60.3m. The decline in pre-tax profit from £15.7m was down to a much lower gain on interest rate swaps, reduced gains on property disposals and a higher interest charge. The interim dividend has been raised from 0.75p/share to 0.85p/share. Pubs were hit by wetter weather in the summer, but there was a recovery in September, so volumes were only 1% lower. There was an improved performance from hotels and spas, with weddings demand returning to past levels.

Ananda Developments (ANA) says a subsidiary has lodged a patent application in the UK, which covers cannabinoid formulation based on MRX2 with additional THC. This would be the fifth patent.

Black Sea Property (BSP) has completed the acquisition of Grand Hotel Varna, which includes three hotels and a beach marina resort. There was €10.3m raised through a placing at €0.016/share, plus a further €10.8m from a loan note issue. Elea Capital will own 26.2%. Black Sea Property has also taken its stake in Littoral Invest, which owns other properties in Varna, to 99.4%.

IamFire (FIRE) investee company WeShop has secured a partnership with digital investment management company Spring IM, which means that 200,000 customers will be onboarded to Spring’s digital service. WeShop customers will be able to set up ISAs for no cost and put any shares they have earned in WeShop while shopping into the ISA.

Substrate Artificial (SAI.B) increased interim revenues from €1.25m to €1.8m, while the loss fell from €14.5m to €2.46m, mainly due to a €11.5m impairment charge in the previous period.

S-Ventures (SVEN) has arranged a bridging facility of £1m, which is repayable in six months. The interest rate is 2%/month. There are still plans to raise at least £2.5m.

Castlefield Investment Partners reduced its stake in Capital for Colleagues (CFCP) from 41.9% to just under 39%. Seven of the company’s directors acquired a total of 593,963 shares at 57.5p each.

Psych Capital (PSY) has completed the acquisition of Shortwave Pharma Inc, which is developing therapies to address eating disorders. Rivki Stern is joining as chief executive and Roy Kait is also joining the board as a non-exec. Chairman Joseph Colliver has left the board.

EPE Special Opportunities (EO.P) had net assets of 291.98p/share at the end of October 2023.

AIM

Naked Wines (WINE) chief executive Nick Devlin has stepped down from the board, although he will continue to head up the US business until the end of peak trading, and chairman Rowan Gormley will take an executive role until a successor is identified. Nick Devlin being in charge of the US as well as the group as a whole is identified as the major problem of the group. Trading in the US is weaker than expected and group revenues could fall by up to 16%, while operating profit will be between £2m and £6m, compared with previous guidance of £8m-£12m. Sales have fallen in all the main regional markets with the 11% decline in the UK the best performance. The share price slumped by 37% to 28.65p, which is just above the all-time low from earlier in the week.

Fully listed Luceco (LUCE) is investing £1.75m in energy as a service provider eEnergy Group (EAAS) at 5p/share, which was a premium to the market price. Luceco will have a 9.1% stake. Luceco has been supplying LED lighting to eEnergy Group and some of the cash will go to settling trading balances. The company will continue to spend the same amount on Luceco lighting products, subject to price and availability. eEnergy Group has received approaches for the energy management division and there are exclusive talks with a potential buyer, which could generate more than £30m. This would be reinvested in the energy services business.

Yet another upgrade following a trading statement by cosmetics supplier Warpaint London (W7L). Current trading is better than expected and the company is selling through more retailers. The growth is across all regions. Full year sales should be at least £85m, up from £64m last year. Shore Capital raised its earnings forecast by 11% to 16p/share.

In the first quarter, Bangladesh-based Beximco Pharma (BXP) reported an 11% increase in pre-tax profit to BDT1.57bn with growth in domestic sales and exports. Inflationary pressure meant that gross margins were slightly lower. New production capacity is online and there is plenty of scope for growing sales without significant additional capital investment. This will make the business highly cash generative and it could be in a net cash position by 2026.

Time Finance (TIME) says trading is better than expected and Cavendish has upgraded its 2023-24 pre-tax profit forecast from £5m to £5.4m. That is equivalent to 4.4p/share. The smaller company finance provider increased its gross loan book to £180m. Arrears have remained flat.

Argentex (AGFX) admits that 2023 results will be 15% lower than expectations. This follows the departure of the chief executive and finance director. Revenues and EBITDA will be similar to 2022.

Myanmar Investments (MIL) is asking for shareholder approval to cancel trading on AIM. In 2019, the company took the decision to wind down its investment portfolio and political conditions in Myanmar are unfavourable, which is hampering realisations. There was $476,000 in the bank at the beginning of this week and management wants to conserve as much cash as possible. Leaving AIM will save $115,000/year.

Microsaic Systems (MSYS) has been unable to secure additional working capital and it plans to leave AIM as part of a cost cutting move, which is likely to mean that all staff will be made redundant. External contractors will be used to maintain production of mass spectrometer machines.

The CEPS (CEPS) share price has fallen because Chelverton Growth Trust plans to distribute its 26% shareholding to its own shareholders.

Specialist maintenance and compliance services provider Kinovo (KINO) increased revenues by 2% to £30.3m in the first half and gross margins improved. New regulations for electricals helped to boost higher margin demand. Canaccord Genuity maintains its full year pre-tax profit forecast at £5.8m.

MAIN MARKET

Stranger Holdings has completed the reverse takeover of a 70% interest in the Henkries uranium deposit and prospecting right in South Africa to form the renamed Neo Energy Markets (NEO). Dealings commenced on 9 November 2023 and a further £500,000 was raised at 1.25p each after the admission. Neo Energy Markets has a JORC compliant mineral resource at Henkries Central and Henkries North is 4.7m lbs U3O8 with a JORC compliant exploration target of 1.1-2m lbs at Henkries North. Less than 10% of the area has been fully explored. A 7,000-metre drilling programme is planned. The uranium mineralisation is hosted in shallow sediments, and it is generally within eight metres of the surface. That will keep the costs of mining down. If things go well the mine could be up and running in three years.

Shares in Critical Metals (CRTM) resumed trading after its annual report was published. The share price fell from 17p to 15p. Critical Metals has the funding to develop the Molulu project and a JORC compliant resource is expected to be published in the near future.

XP Power (XPP) raised £45.4m through a placing and offer at 1150p/share. Management has been trying to reduce costs to offset the lower revenues and capital spending cut back. Surplus stocks will be unwound, and the cost reductions could save up to £10m in 2024. There will be no dividends until the end of 2024.

Pineapple Power Corporation (PNPL) has agreed heads of terms for the acquisition of Ilios Hydrogen, which is a Canadian developer of hydrogen production plants.

Milton Capital (MII) continues to seek an acquisition with the focus on the energy sector. The standard list cash shell is assessing light to medium hydrocarbon exploration and natural hydrogen opportunities.

Standard list cash shell More Acquisitions (TMOR) says that it has the backing of 51.45% of the shareholders ahead of the requisitioned general meeting, which will still be held on 1 December.

Quoted Micro 6 November 2023

• BY: Andrew Hore |
• POSTED: 06/11/2023 |

AQUIS STOCK EXCHANGE

Cadence Minerals (KDNC) says that the 36.2%-owned joint venture that owns the Amapa iron ore project in Brazil has signed a memorandum of understanding with Sinoma Tianjin Cement Industry Design, which will provide a final proposal to complete a definitive feasibility study for the project and then submit a fixed price contract to construct the project. It will also attempt to obtain the financing required. Chief executive Kiran Morzaria bought 100,806 shares at 7.4p each.

Adsure Services (LON: ADS) joined the Access segment on 30 October. It did not raise any additional money and was valued at £4.76m at the introduction price of 45p. Fareham-based Adsure Services acquired TIAA in September. It is a specialist business assurance provider that has been operating for two decades. In the year to March 2023, TIAA revenues improved from £8.82m to £9m, while pre-tax profit dipped from £580,000 to £274,000. That is due to higher overheads. TIAA had £1.86m in the bank and net cash of £1.15m. Dividends have been paid by TIAA and the equivalent last year was 1.35p/share.

Substrate Artificial Intelligence (SAI.B) has agreed the acquisition of 70% of BINIT and DELTANOVA for €5.4m and €600,000 respectively, which is payable in shares. They are software development consultancy businesses, and the share issue has to be approved by shareholders.

CBD products supplier Voyager Life (VOY) expects interim revenues to be more than £165,000 and a gross margin of 43%. The manufacturing division is receiving more enquiries. The government has accepted recommendations for standardised cannabinoid testing and there could be a relaxation of the maximum cannabinoid content of products.

Helium Ventures (HEV) had nearly £65,000 in cash at the end of April 2023, plus interests in Blue Star Helium and Trackimo.

Semper Fortis Esports (SEMP) had cash of £160,000 at the end of July 2023. Management is still assessing a potential reverse takeover of GL Membership.

ChallengerX (CXS) generated cash from operations in the quarter to September 2023, although there was an overall outflow of £47,000, leaving £1,000 in the bank. More cash will be required to develop the FlashBet Wheel App.

Wishbone Gold (WSBN) has confirmed the mineralised base metal system at Cottesloe in the Paterson Range, Western Australia. There is copper, zinc, silver, lead and cobalt. This is before the drilling has hit the target mineralisation zone.

KR1 (KR1) holds an allocation of 7.5 million TIA – the digital asset of Celestia – KR1 plans to start staking activities on the Celestia network. At the end of September 2023, NAV was 45.11p/share.

TruSpine Technologies (TSP) says that the FDA 510(k) application for Cervi-LOK has oved to the substantive review stage.

Fuel additives developer SulNOx Group (SNOX) generated second quarter revenues of nearly £54,000, which was lower than the previous year. There was £562,000 in the bank and a further £700,000 has been raised since then.

Ananda Developments (ANA) has signed a MOU with Nottingham Trent University to pursue grant funding for the medicinal cannabis breeding programme. The intention is to develop a formal strategic partnership.

IamFire (FIRE) had cash of £149,000 at the end of April 2023, following a £768,000 cash outflow from operations. Investee company WeShop is making good progress. However, there is material uncertainty as a going concern and more cash is required or bond terms will need to be renegotiated.

NFT technology company Looking Glass Labs (LON: NFTX) had net assets of C$837,000 at the end of July 2023.

Arbuthnot Banking (ARBB) non-exec directors Jayne Almond bought 3,000 shares at an average price of 912.5p each. Shepherd Neame (SHEP) director George Barnes bought 1,000 shares at 735p each. Marula Mining (MARU) chief executive Jason Brewer has exercised 400,000 warrants at 4p each.

BWA Group (BWAP) is raising up to £900,000 at 0.5p/share with one warrant for every two shares exercisable at 0.6p each up until October 2024 and 0.75p after that up until October 2026. The cash will be used for exploration at two heavy mineral sands claim areas.

Mental health treatments developer Mydecine Innovations Group (MYIG) says that it is filing a prospectus supplement so that it can issue 7.36 million shares at 15 cents/share to raise $1.1m.

AIM

Product management software supplier Sopheon (SPE) has received a bid approach from IOps Buyer Inc, which is a subsidiary of Wellspring Worldwide Inc. The two companies have agreed in principle to a 1000p/share bid. Due diligence has been completed and discussions are advanced. Chicago-based Wellspring Worldwide provides software and data systems for managing technology transfer and intellectual property.

Velocys (VLS) is the worst performer today because the conditions for the $15m strategic investment from Carbon Direct have not been met. To receive this cash the sustainable fuel developer needs to raise $40m, including $8m already raised, and management is still trying to secure investors. The $15m cash injection is no longer binding. Velocys needs more cash before the end of the year. There is a significant market opportunity in sustainable aircraft fuel, but Velocys is in a weak position when discussing additional funding.

Carbon ceramic disc brakes developer Surface Transforms (SCE) has reduced revenue guidance for 2023 to £8.6m, having generated £6.3m up until October. The previous forecast for 2023 revenues was £13m. There have been problems ramping up production in the second half and it will not be completed until early next year. A new debt facility is being negotiated to enable an increase in annual capacity to £150m.

MC Mining (MCM) has received a bid approach. Two companies that own a 64.5% stake in the South African coal miner say they intend to acquire the shares they do not own, and the indicative offer is A$0.2 to A$0.23 for each share. Independent directors are assessing the indicative offer.

Cerillion (CER) has secured a five-year software deal with a European telecoms company. The deal is worth €12.4m and there is potential for selling other software modules. This deal helps to underpin forecasts.

OptiBiotix Health (OPTI) says that restructuring the management has improved account management and the focus of commercial discussions. The microbiome company has improved its online operation. There are ongoing discussions over potential large contracts.

Roebuck Food Group (RFG) is acquiring Motherwell-based food ingredients supplier Moorhead & McGavin for £2.225m in cash and shares. A placing will raise up to £2.5m at 13.5p/share. Moorhead & McGavin supplies cereals, pasta and rise to the catering sector and generated revenues of £7.26m and EBITDA of £377,000 in 2022. Roebuck Food Group sold its cold storage division, and it has been seeking an acquisition to scale up the business.

In October, podcast company Audioboom (BOOM) generated more than one billion advertising impressions in a month for the first time. The removal of old adverts after 90 days and replacing them with a new focused advert is helping advertising impressions to continue to grow. Fourth quarter revenues are still expected to be at least $19m.

Thor Energy (THR) has completed the stage 2 earn-in spending required to acquire a further 29% of the Alford East copper-gold-real earths project in South Australia. This takes the stake to 80%. Thor Energy has issued 9.26 million shares at A$0.027 each, plus 18.5 million warrants exercisable at A$0.03 each, to Spencer Metals as consideration for the stake.

Seaweed-based animal feed producer Ocean Harvest Technology (OHT) has conducted a successful trial in Georgia for its poultry feed. Mortality rates for the poultry with necrotic enteritis with the company’s feed in their diet fell from 49% to 33%. It also enhances weight gain. Necrotic enteritis costs the poultry sector up to $6bn/year.

Technology businesses developer Frontier IP (FIPP) moved into loss last year because of realised and unrealised losses on its portfolio against a large gain in the previous year. The value of the portfolio fell 17% to £33m, although there were net disposals of nearly £5m. There was a £3.25m cash outflow from operations offset by disposals, leaving £4.6m in cash at the end of June 2023.

Neometals (NMT) has decided not to progress with vanadium tailings retreatment project in Finland because of difficulty in financing. The price of vanadium has been falling in recent months. Neometals will concentrate on licensing its vanadium recovery process. There was cash of A$14.2m at the end of the first quarter.

Real Good Food (RGD) says first half revenues were 2% ahead at £16.1m, although volumes fell by 10%. October revenues appear set to be 6% higher. The cake decorations supplier has significantly reduced its loss due to higher margins. A shortage of cash has held back growth, but the company could be profitable for the full year. Talks continue concerning the extension of the loan agreement with Hilco Private Capital. Interim results will be published in December.

Reconstruction Capital II Ltd (RC2) plans to ask shareholder approval for leaving AIM so that costs can be reduced. It is taking longer than expected to sell investments, so the investment company also intends to extend its life. A matched bargain facility will be arranged.

MAIN MARKET

Esken (ESKN) is selling Esken Renewables to Pioneer Balmoral for £77.6m, plus loan reimbursement of £6.9m. The portfolio of renewable assets has been built up by investing small amounts in equity in businesses. The deal requires shareholder approval. Net proceeds will be £78.5m and £70.6m will be used to repay the committed funding. There are plans to sell Southend Airport. Esken will move from the premium list to the standard list.

Mike Whitlow has requisitioned a general meeting at standard list cash shell More Acquisitions (LON: TMOR) to get Nicholas Tulloch and Jeremy Woodgate to the board and remove the existing directors Charles Goodfellow and Roderick McIllree. The board believes it has enough backing to defeat the resolutions.

AIM 50 Digest 3 November 2023

• BY: Andrew Hore |
• POSTED: 06/11/2023 |

Wealth management services provider Brooks Macdonald (BRK) is reducing its staff numbers by 10%. The restructuring will cost £3m and will yield £4m of annualised cost savings. The 2024-25 revenues have been trimmed by £3.8m to £130.4m, but the cost savings lead to a £200,000 increase in the pre-tax profit forecast to £33.5m. The dividend is expected to be maintained at 75p/share for the next two years. 
=====
IP and language services provider RWS (RWS) has a strong long-term track record, but it has been finding trading more difficult over the past year. There have been lower levels of activity in some markets. The launch of the Unitary Patent on 1 June meant that IP work volumes recovered in the second half. Costs are being reduced. Adjusted pre-tax profit will be within the range of expectations of £116.5m-£129m with revenues declining by 2%. Net cash was £23m at the end of September 2023. The full year results will be published on 12 December.
=====
FD Technologies (FDP) says that it expects a small decrease in revenue in the year to February 2024. Previous consensus was an 8% increase to £320m. Pre-tax profit was already expected to decline, but it will fall further than those expectations. Investment in KX is being accelerated to improve longer-term growth. This will be funded by group cash and debt. Annual recurring revenues of £180m are targeted for 2025-26. They are currently £69.3m.
=====
Self-storage sites operator Lok’nStore (LOK) reported that NAV was 1% ahead at 986p/share at the end of July 2023. Overall full year revenues were slightly higher at £27.1m, because of the sale of sites last year and one-off fees of £1.5m. Profit declined, but there was still £13.9m of cash generated from operating activities. The total dividend was raised 10% to 19p/share. Net debt was £12.3m, leaving plenty of room in the existing bank facilities to fund additional openings. NAV could rise to 1021p/share by July 2024, and it will consistently improve over the next few years even without any reduction in interest rates.
=====
Vertu Motors (VTU) has bought four outlets in south west England and this extends the relationship with Honda. The deal will be earnings enhancing in the first full financial year, but there will be a loss in the four months to February 2024. Management says that Companies House records have been falsely amended and it is seeking to rectify this.
=====
Volex (VLX) is on course to meet full year expectations with organic growth of interim revenues was 4%. Medical and industrial demand offset weaker demand in electric vehicles and consumer electricals, although some destocking appears to be coming to an end. Recent acquisition Murat Ticaret is being integrated. The cost of the cyber incident is likely to be around $2m, which will be an exceptional charge in the second half. The interims are on 23 November.
=====
Advanced Medical Solutions (AMS) has signed three hospital distribution agreements for LiquiBand. They are five-year agreements.
=====
Serica Energy (SQZ) has been awarded block 29/2a in the North Sea. This block contains the decommissioned Kyle field. 
=====
Engineering services provider Renew Holdings (RNWH) has bought nuclear manufacturing and fabrication company TIS Cumbria for £4.7m. There is no deferred consideration. No figures for TIS Cumbria were revealed in the announcement. 
=====
Big Technologies (BIG) chief operating officer Charles Lewinton sold 90,000 shares at 194p each, while finance director Daren Morris bought 7,000 shares at 192p each and 3,000 shares at 187p each. Fevertree Drinks (FEVR) non-exec director Kevin Havelock bought 41,194 shares at 1019.4p each. Midwich Group (MIDW) managing director Stephen Fenby acquired 50,000 shares at 375.8p each. Pan African Resources (PAF) chief executive Cobus Loots bought 136,000 shares and finance director Deon Louw 134,748 shares.
=====
Slater Investments has a 4.87% stake in Dotdigital (DOTD).
=====
Kitwave Group (KITW) was chosen as the AIM growth business of the year at the 2023 AIM awards, while SigmaRoc (SRC) won the best use of AIM award.

Quoted Micro 30 October 2023

• BY: Andrew Hore |
• POSTED: 29/10/2023 |

AQUIS STOCK EXCHANGE

Natural language processing company Cykel AI (CYK) joined the Aquis Stock Exchange on Wednesday. It raised £1m at 3p/share and the shares ended the week at 10.25p. There was initially significant buying of the shares, but trading levels dwindled over the week so there was only one sale of 100,000 shares at 10p each on Friday.

Healthcare provider One Health Group (OHGR) generated 12% higher revenues of more than £11m in the first half. There was £3.6m in the bank at the end of September 2023. There is additional surgical capacity, and two new contracts were awarded in the first half. A new surgical hub could open in 2025. The second half is normally stronger.

Valereum (VLRM) says that US funding it secured in August is no longer available. The talks with the Gibraltar Financial Services Commission concerning the purchase of the Gibraltar Stock Exchange are dragging on. Richard Poulden, Jack Sun, Patrick Young and Alan Gravett have resigned from the board. James Formolli, who has links with Gibraltar, has been appointed chairman. Patrick Lyle Young has rejoined the board as chief executive. These changes may make it easier to gain regulatory clearance for the acquisition.

Gunsynd (GUN) investee company Omega Oil and Gas estimates maiden gross 2C contingent resources of 1.73 trillion cubic feet of gas in its area in Queensland’s Taroom Trough. The next phase of exploration includes a horizontal well. The $21m raised in August will finance this next stage of exploration.

Vulcan Industries (VULC) has sold 49.9% of Lithium battery storage project developer Forepower Lincoln (250) Ltd for £1.5m, which is payable on the sale of the project or on the fifth anniversary of the agreement. The buyer will loan £500,000 and this will be offset against the consideration when it is due. This will be drawn down as the project progresses.

Ananda Developments (ANA) made an interim loss of £990,000. There was cash of nearly £12,000 at the end of July 2023. Since the end of the period, operations at the cannabis cultivation facility were paused to reduce cash burn.

Cadence Minerals (KDNC) reported a reduction in loss from £5.05m to £1.95m. Net cash was £580,000 at the end of June 2023, while NAV was £19.5m.

Cooks Coffee (COOK) has appointed RSM as administrator to its Triple Two coffee shop franchise business. There are currently eleven stores, which are trading poorly. The Esquires chain is trading well and will not be affected.

SulNOx Group (SNOX) says that fuel savings of more than 5% have been verified for seagoing vessels with a two-stroke engine when fuel conditioner SulNOxEco. This will help to increase interest from shipping companies.

Arbuthnot Banking Group (ARBB) non-exec Jayne Almond has acquired 3,000 shares at 895p each and her husband bought 5,617 shares at 890p each.

AIM

After the market closed on Friday evening, SafeStyle (SFE) said that it intends to appoint administrators to three subsidiaries. Potential buyers of the replacement windows operations have withdrawn their interest and management already revealed it would not be able to raise additional finance. This means there is unlikely to be anything left for shareholders.

Fire Angel Safety Technology (FA.) has agreed a 7.4p/share bid from fire safety products manufacturer Siterwell Electronics, which already owns 17.5%. The share price has not been at that level for six months. The offer values FireAngel Safety Technology at £27.7m.

Mining investment company Starvest (SVE) plans to cancel the AIM quotation and commence a voluntary liquidation. This would involve the distribution of stakes in Greatland Gold (GGP) and Ariana Resources (AAU) to shareholders, while the other stakes will be sold. The share price improved by 77.8% to 8p, valuing Starvest at £4.7m. This is still a discount to the March 2023 NAV of £6.75m, although for one the Ariana Resources share price has fallen since then. Shareholder approval will be sought on 21 November and the AIM cancelation could happen on 29 November.

Northern Bear (NTBR) intends to launch a tender offer to buy up to five million shares (26.7% of share capital) at 62p each. The building services provider will ask for authorisation at a general meeting on 15 November and the tender will be funded by the company’s cash and an additional £1m of debt. This will be earnings enhancing. Some shareholders say they will not tender shares, which means that other shareholders can tender at least 35.6% of their holding. Shares have to be tendered by 22 November. Jeff Baryshnik will retire as chairman after the general meeting. Trading is ahead of the previous year and a trading update will be published in the next few days.

Angling Direct (ANG) improved UK sales and European online sales recovered. The fishing tackle retailer has plans to open its first store in Europe. Interim revenues rose 11% to £43.3m, while pre-tax profit recovered from £1.1m to £1.7m. Like-for-like store sales were 4.9% ahead. Net cash reached £17.6m at the end of July 2023, helped by a reduction in working capital. August and September sales were 14% higher than the same time last year, although the comparative was a weak period. Market share is still growing.

Argentex (AGFX) has appointed Jim Ormonde as interim chief executive. He replaces previous chief executive Harry Adams, who is the second largest shareholder with 12.3%. A strategic review has identified areas of the payments sector to focus on. Jim Ormonde was boss of Cardsave, which was bought by WorldPay, and he has been a consultant to Argentex. Current trading is in line with expectations even though activity levels have been lower.

Security products supplier Thruvision (THRU) has raised £3.2m at 23.5p/share. The money has been invested by Pentland Capital, which has taken a 10% stake, and existing shareholders. The cash will be invested in sales and marketing. Earlier this month, Thruvision revealed that it had not received the expected order from US Customs and Border Protection due to budgetary problems. Forecast revenues for 2023-24 were slashed by two-fifths to £8.1m - £3.5m has been generated in the first half. A full year loss of £3.2m is expected.

Bradda Head Lithium (BHL) interims show a $6.24m cash outflow leaving $1.5m in the bank at the end of August 2023. Since the year end, an updated mineral resource showing contained metal of more than one million tonnes triggered a Lithium Royalty Company payment of $2.5m to Bradda Head Lithium, which was received in October.

Fourth quarter trading at The Mission Group (TMG) has got tougher with clients spending less. This follows a relatively upbeat trading statement at the time of the interims. The cost base was raised in anticipation of additional demand and cost cutting will not be done until next year. Canaccord Genuity slashed its pre-tax profit forecast from £7.9m to £3.1m and net debt is set to rise to £24m, which contravenes debt limits. The interim dividend is cancelled. Interest will be covered just over two times.

Sustainable fuels technology developer Velocys (VLS) has launched its new technology facility in Ohio. Velocys contributed $2m of the $10m capital investment with the rest invested by a subsidiary of The Pagura Company. The equipment will be fully up and running by mid-2024. There should be enough capacity for projected orders stretching out to 2028.

Piling contractor Van Elle (VANL) has Rock and Alluvium for an initial £1.8m and agreed a new five-year trading deal with Galliford Try, which could add more than £10m/year to revenues. This increases the group’s presence in the residential market in Greater London.

MAIN MARKET

BATM Advanced Communications (BVC) investee company ADOR Diagnostics has secured funding of $7.5m and BATM is providing $3.5m of this cash. This is payable in two tranches, one immediately and the other after the achievement of milestones over the next six months.

First Tin (1SN) has published a definitive feasibility study (DFS) update for the Taronga project in Australia. The DFS should be completed in the first quarter of next year. It is already clear that the resource is significantly larger than previously estimated due to additional mineralisation and lower cut-off grade and that means processing capacity will need to be larger. The additional capital investment should improve recovery rates.

Cash shell Mining, Minerals and Metals (MMM) has entered into heads of terms with Georgina Energy, which is exploring for helium, hydrogen and hydrocarbon the Amadeus and Officer Basins in Australia. The transaction to acquire Narnia Mauritius Gas will not go ahead until the renewal of the company’s licences.

Intuitive Investments Group (IIG), which recently moved from AIM to the Specialist Fund Segment, is issuing 1.91 billion shares to acquire Hui10, a Chinese company that owns 33% of Beijing Huishi Dehua IT, which has a digital payment platform for the Chinese lottery and 60% of Lucky World, which has developed a platform that enables China’s lottery shops to access a wider range of consumer goods. The businesses are losing money. Hui10 will not be consolidated in the company’s figures. Investments Group currently has 86.9 million shares currently in issue and, at 11p/share, it is valued at £9.6m. A ten-for-one share consolidation is planned. There is already permission to issue more shares. Chief executive Rob Naylor bought 100,000 shares at 9.5p each.

BSF Enterprise (BSFA) has formed a separate subsidiary called Kerato to develop lab-grown corneas. This company can focus on advancing clinical trials.

Quoted Micro 23 October 2023

• BY: Andrew Hore |
• POSTED: 22/10/2023 |

AQUIS STOCK EXCHANGE

Healthy snack foods supplier S-Ventures (SVEN) plans to raise at least £2.5m to pay deferred consideration and provide working capital. The fundraising has been announced ahead of time so that more investors can become involved. In the year to September 2023, gross revenues improved from £8.6m to £16.9m, while net debt is £6.8m. The main growth came from an initial contribution by gluten-free products company Juvela and technology platform Market Rocket. S-Ventures was loss making and the level is likely to depend on impairment charges.

Arbuthnot Banking Group (ARBB) continues to benefit from higher interest rates. Customer deposits grew 7% to £3.5bn, while wealth management assets under management increased from £1.38bn to £1.43bn. The new London office at 20 Finsbury Circus has increased space by 45% to 75,000 square feet. This will increase annual costs by £5m and there will be dual costs until October 2024 when the existing office lease expires.

Technology marketing business Inteliqo Ltd (IQO) generated initial revenues of $558,000 in the year to September 2023 and it moved from a loss of $428,000 to a pre-tax profit of $185,000. There is $384,000 in the bank, after a cash inflow of $195,000. Inteliqo should continue to be profitable this year as it builds up sales of smart translation Ipedia earbuds and the Langaroo language app.

Aquis Exchange (AQX) chief executive Alasdair Haynes bought 10,000 shares at 325p each, while non-exec chairman Glenn Collinson acquired 7,500 shares at 326.5p.

Shepherd Neame (SHEP) director George Barnes bought 1,000 shares at 800p each. Premier Miton has taken a 5.05% stake in Global Connectivity (GCON). Oberon Investments (OBE) chief executive Simon McGivern has sold 11.6 million shares and Joanna McGivern sold 650,000 shares at 3.6p each. Chairman Mike Cuthbert bought 140,000 shares at 3.6p each and finance director Galin Ganchev acquired an initial 138,888 shares at 3.6p/share. Simon McGivern still has a 6.78% stake. Shepherd Neame (SHEP) director George Barnes bought 1,000 shares at 800p each. Premier Miton has taken a 5.05% stake in Global Connectivity (GCON). Andrew Offit has increased his stake in AQRU (AQRU) from 4.77% to 11.9%.

Tap Global Group (TAP) has appointed Tennyson Securities as its broker.

AIM

Shoe Zone (SHOE) has sparked another upgrade with its latest trading statement. The shoe retailer’s sales were slightly ahead of expectations and pre-tax profit will be at least £16m, which is 19% higher than forecast. Lower freight rates improved margins. The dividend estimate has been raised from 9p/share to 10.5p/share on the back of the profit growth. Zeus has increased its 2023-24 pre-tax profit forecast from £12.5m to £15.2m. To put this in perspective, one year ago Zeus forecast a 2022-23 pre-tax profit of £8.5m, not much more than 50% of the outcome. It would be wrong to expect similar upgrades this year, but it indicates that forecasts are generally conservative.

Gama Aviation (GMAA) is selling its Jet East business for $131m. Adjusting for debt and transaction costs the net amount is $100m, which is equivalent to 125p/share. That could allow a 55p/share dividend. The rest of the cash can be reinvested in the remaining aviation services businesses. Gama Aviation recently won air ambulance and offshore helicopter contracts.

CoStar Group Inc is bidding 110p/share for On The Market (OTMP), which values the property listings company at £99m. The February 2018 placing price was 165p. CoStar Group Inc says that On The Market provides a good entry point to the UK residential property market. The purchaser owns US-based Homes.com.

Litigation finance provider Manolete Partners (MANO) is benefiting from the UK government removing Covid-era protections against insolvency. In the six months to September 2023, the number of case investments jumped from 83 to 146. Bounce back loan cases separately increased from 83 to 179.

Craven House Capital (CRV) investee companies Garimon and Honeydog – it has 29.9% of each company – are planning to reverse into the Amigo Holdings shell on the Main Market. These are music streaming and digital publishing businesses.

eDrive systems developer Saietta (SED) shares returned from suspension on Thursday afternoon after it published results to the year to March 2023. There were problems with the accounting for the new agreements with Consolidated Metco Inc, which included an upfront payment of €3.3m and an inventory write-down of £2.1m. Revenues from continuing operations more than doubled to £4.8m, but the group loss was higher. Orders are in place to build up revenues. There was cash of £7.2m left at the end of March 2023, but by September this was down to £400,000. More cash will be required to finance the delivery of orders.

Fashion retailer Sosandar (SOS) has decided to reduce promotional and discounting activity on its website and open retail stores. There will be four shops by next spring. This will hold back short-term revenues but could accelerate progress in 2026-27. Singer has cut its full year revenues forecast by 19% to £46.8m. This means that having made a profit last year, this year Sosandar will be back to breakeven, and it will take two years to beat the £1.6m profit made last year.

Revolution Bars Group (RBG) reported full year figures broadly in line with expectations. The Peach Pubs business is trading well with like-for-like sales 14% ahead, but the Revolution bars have been hit be train strikes. Cavendish retained its flat 2023-24 pre-tax loss forecast of £2m, even though trading has been tough.

WH Ireland has produced its updated research for metallurgical coal producer Bens Creek Group (BEN) suggesting a move into profit this year. This year’s pre-tax profit forecast is slashed from £108m to £7.2m, with the following year’s estimate reduced from £96.2m to £33.4m. This is a scenario rather than a proper forecast. A 3.6 cents/share (3p) dividend is possible in 2024-25.

Cirata (CRTA), formerly known as WANdisco, is trading in line with expectations with bookings of $1.7m in the latest quarter. They are expected to be higher in the fourth quarter and the software company’s management is confident that the prospects are genuine. Cash should be at least $16m at the year end and Cirata could be cash breakeven in 2024.

R&Q Insurance Holdings (RQIH) is selling its program management business, and this should generate $300m of net proceeds. This will be used to pay down debt. The group chief executive and finance director will leave with the disposal.

ECR Minerals (ECR) has terminated its option to acquire the Hurricane project, following the changes in the board. Management does not believe the potential of the project warrants the acquisition cost.

Karelian Diamond Resources (KDR) is raising £250,000 at 2.5p/share and the cash will be used for exploration for nickel, copper, platinum group metals in Northern Ireland and diamonds in Finland. Peterhouse has been appointed as broker.

MAIN MARKET

Cadmium-free quantum dots developer Nanoco (NANO) has concluded its litigation with Samsung, and it has funds to move towards commercial production. The net litigation proceeds are $90m. The second tranche will be received next February. There are plans to return £33m-£40m (10p-12p/share) to shareholders after this. Contract terms are under discussion for the first commercial order, and they should conclude by the end of 2023. In the year to July 2023, revenues jumped from £2.5m to £5.6m with the main growth coming from recognising licence fees related to the Samsung litigation.

Apax Partners is bidding 110p/share for Kin & Carta (KCT), which is a 41% increase on the pre-bid share price. The share price has not been this high since March, but the bid is less than 50% of the 2023 high ahead of the February profit warning. The bid values Kin & Carta at £203m.

Online travel agency Hostelworld (HSW) increased full year guidance in its third quarter trading statement. Nine months revenues are 38% ahead at Euro75.2m. The EBITDA guidance range has been raised from Euro16.5m-Euro17m to Euro17.5m-Euro18m, up from Euro1.3m last year.

Property investor Town Centre Securities (TOWN) announced net tangible assets falling by 15% to 284p in the year to June 2023. It outperformed the benchmark property index. The greatest value declines in the portfolio related to car parks and offices. The loan-to-value has declined to 45.8% following disposals. The total dividend for the year is 5p/share.

Kitchenware retailer ProCook Group (PROC) says revenues fell 4% to £26.3m in the first half. This was helped by a good summer performance, but trading has been tougher in September and October.

AIM 50 Digest 20 October 2023

• BY: Andrew Hore |
• POSTED: 22/10/2023 |

A trading update from GB Group (GBG) shows improved operating margins before foreign exchange gains in the first half. Location services revenues grew, but this was offset by lower identity services income. Revenues fell by 1% to £132.4m, while operating profit improved from £21.9m to £23.4m. That excludes net gains on foreign exchange of £300,000, down from £6.2m last time. Net debt was £104.8m at the end of September 2023. The interims will be published on 28 November.
=====
Video games publisher Frontier Developments (FDEV) says it is comfortable with 2023-24 expectations of revenues of £108m and EBITDA loss of £9m. A review will reduce operating costs by one-fifth by next year. Further news about the reorganisation will be announced with the interims in January.
=====
Building materials supplier SigmaRoc (SRC) continues to trade in line with expectations with stable third quarter revenues and improved margins. Nine months revenues improved from £394m to £435.9m, while EBITDA rose from £77m to £87.1m. Infrastructure spending has offset residential weakness.
=====
FW Thorpe (TFW) grew full year revenues by 23% to £176.7m through a combination of acquisitions and organic growth. Pre-tax profit was 12% ahead at £26.9m. Net cash is £33.1m. Total dividends were 5% higher at 6.46p/share. Trading in the new year is in line with the same period last year. 
=====
Impax Asset Management (IPX) increased assets under management by 5% to £37.4bn in the year to September 2023, even though there was a net outflow of £893m in the fourth quarter. That was mainly due to retail investors withdrawing cash from the markets. Polar Capital Holdings (POLR) assets under management were slightly lower at £19.1bn on 30 September. Net redemptions were higher than the fund performance gains. Tatton Asset Management (TAM) is adding £152m/month to assets under management and, including £100m of performance gains, they reached £13.7bn at the end of September 2023. Interim figures will be reported on 16 November.
=====
Wealth management services provider Brooks Macdonald (BRK) has appointed investment bank Raymond James, which acquired
Charles Stanley in 2022, to advise on potential takeover interest in the company. It is unclear if there have been any bid approaches. At the end of September 2023, funds under management were slightly higher at £16.9bn.
=====
Central Asia Metals (CAML) says that third quarter production is in line with guidance. Copper production was 3,661t, while zinc production was 8% down at 14,891t and lead output was flat at 20,773t.
=====
Vertu Motors (VTU) is going to spend up to £4m on buying back shares, having already spent £5m.
=====
Benchmark (BMK) has been granted two new salmon broodstock licences in Norway. One for sea production and one for land production.
=====
Online marketing and domain name services provider CentralNic has changed its name to Team Internet (TIG).
=====
ITM Power (ITM) is beginning to bid on projects in the US, so that it can benefit from government funds put aside for cleantech projects. There will be an asset light entry to the market by the electrolyser developer.
=====
Volex (VLX) has been hit by a cyber attack but there was minimal disruption to production. The financial impact is not expected to be material.
=====
Big Technologies (BIG) chief executive Sara Murray has taken her stake to 25% by purchasing 100,000 shares at 195p/share. The July 2021 placing price was 200p. Sara Murray sold 5.86 million shares at that time. New Keywords Studios (KWS) chief executive Bertrand Bodson acquired 3,799 shares at 1316p each, which is just above a four-year low. Midwich Group (MIDW) managing director Stephen Fenby has bought 24,170 shares at 409.79p each, taking his stake to 16.8%. The share price is not far off its three-year low.

Quoted Micro 16 October 2023

• BY: Andrew Hore |
• POSTED: 15/10/2023 |

AQUIS STOCK EXCHANGE

Mydecine Innovations (MYIG) has added an Aquis quotation to is listing on the Canadian Stock Exchange. The biotech and life sciences company believes that coming to Aquis will increase exposure in the UK and Europe. The main focus is addiction, PTSD and other mental conditions. There have been no trades in the shares on Aquis since the introduction last Tuesday. The share price has stayed at 10p. The lack of liquidity is a concern.

Substrate AI (SA.B) joined the access segment of Aquis on Tuesday. Class B shares are traded, and they are also quoted on the Bolsas y Mercados Espanole Growth Market. These shares do not have voting rights. The Spanish company offers artificial intelligence technology that can be used to reduce costs and optimise decisions. There do not appear to have been any trades. The shares have no votes, but they can receive dividends. The share price is 22.5p (20p/25p).

The suspension of trading of shares in Helium Ventures (HEV) was lifted last Tuesday and the share price slipped 13.5% to 5.625p. This follows the termination of the acquisition of Vestigo Technologies by the cash shell. Instead, the target company intends to float on AIM. Helium Ventures will end up with £1.55m of shares in the company, or a price determined by independent valuation if the flotation does not go ahead. This is payment for management time and professional costs. Helium Ventures is also subscribing for £250,000 worth of shares to support working capital and it will be issued by £100,000 worth of shares for assistance on the flotation. The total stake will be capped at 9.99%.

Ormonde Mining (ORM) investee company TRU Precious Metals has published a technical report for the Golden Rose project in Newfoundland. An exploration programme has commenced.

VVV Resources (VVV) has signed an unconditional agreement to acquire the Mitterberg copper project in Austria for £350,000 minus a previous loan of £20,000 - £297,000 in shares and £33,000 in cash. This takes over from the previous agreement. The area was previously mined between 1830 and 1977.

RentGuarantor (RGG) says revenues and tenant contracts have doubled in the latest quarter.

Global Connectivity (GCON) has received the full disposal proceeds of £550,000 from Tiger Infrastructure earlier than expected.

SulNOx Group (SNOX) has raised £700,000 from a share subscription by Nistadgruppen AS at 22.5p/share. That takes the Nistad stake to 14.4%. The cash will be used for working capital. Spring Marine Group is adopting SulNOX fuel consumption reduction additives for its tankers and the initial order is worth $45,000.

Trading in Silverwood Brands (SLVD) shares continues to be suspended. The company has filed its defence in legal proceedings brought by Lush Cosmetics, and it is no longer trying to get Lush to register the shares it was buying. The purchase is being unwound. Castlenau has extended the repayment date for the £4.4m loan facility it provided to the company to 12 April 2024.

TruSpine Technologies (TSP) has submitted additional documentation and clarification relating to questions from the US FDA and the 510(k) application for Cervi-LOK.

Gunsynd (GUN) investee company Aberdeen Minerals has been awarded a grant of £294,000 by the UK government. This will meet around two-thirds of the cost of a feasibility study into processing minerals at the Arthrath nickel cobalt copper project. This relates to the use of cathode raw materials in Scotland for UK battery manufacturing. Investee company Low 6 generated revenues of nearly £1m in the quarter to September 2023.

Equipmake (EQIP) is joining with Perkins Engines and Loughborough University to develop e-powertrain technology for an off-highway hybrid system project. This is being funded by a £11m government grant and £3.24m of this will come to Equipmake, which will get potential access to the off-highway market.

Capital for Colleagues (CFCP) has invested a further £750,000 in space software company Bright Ascension as part of a £1.5m cash injection.

Chris Akers has reduced his stake in Tap Global Group (TAP) from 5.9% to 3.7%, while chief executive David Carr and chief strategy director Arsen Torosian bought 220,798 shares at 2.26p each and 4.735 million shares at 2.31p/share respectively. Res Privata NV has acquired a 3.33% shareholding in NFT Investments (NFT), having sold its 3.83% stake in March. Newbury Racecourse (NYR) chairman Dominic Burke bought 300 shares at 755p each. Watchstone Group (WTG) chief executive Stefan Borson bought 100,000 shares at 2.9p each. Watchstone lost its appeal in its court action against PwC.

EPE Special Opportunities (EO.P) had net assets of 295.98p/share at the end of September 2023.

AIM

Sanderson Design Group (SDG) is growing strongly outside of the UK, particularly in North America. The 8% improvement in interim pre-tax profit to £6.8m was better than expected and it was helped by higher licence income. Net cash is £15.9m.

Netcall (NET) grew full year revenues by 18% to £36m, leading to a jump in pre-tax profit from £3.9m to £6.5m. Next year’s forecast has been upgraded from £6.3m to £6.8m. Cloud software growth is accelerating with existing clients spending more.

Pension SuperFund Capital has made an agreed bid of 60p/share for STM Group (STM), which values the financial services company at £35.6m. Shareholders also receive a deferred consideration unit worth up to 7p/share based on the net attrition rate of customers between now and when the bid gains full regulatory approvals and becomes effective.

Marine transport tracking and data technology developer Winward (WNWD) has renewed important contracts with the US government and won two additional contracts. It has also won additional contracts in the rest of the world and renewed a $1m contract in Nigeria. This underpins the 2023 and 2024 forecasts.

Hotel Chocolat (HOTC) is starting to see the benefits of the reduction in costs and changes to the range of products. Full year revenues declined from £226.1m to £204.5m and the chocolate products retailer fell into loss. Improved cash flow means that there was net cash of £11m. In the first quarter of the new financial year UK store revenues are 14% higher. Further annualised cost savings of £800,000 have been achieved.

Cambridge Cognition (COG) has won a major contract using its core services combined with the recently acquired Winterlight services. The initial contract for providing the services to a clinical trial and training is worth £1m. Revenues will start to be recognised in 2023 and will last two years. If the trial goes well then there is potential for a larger contract.

It was a week of profit warnings, and the worst hit was Eneraqua Technologies (ETP) with a 61% slump to 38p to a new low. This is not the first warning this year. Further delays in energy efficiency spending by social housing companies have led to more downgrades for the energy and water efficiency technology company. Uncertainty about water standards for new housebuilding has hit demand for the water efficiency technology. The full year pre-tax profit forecast has been further reduced by 69% to £1.6m, with £2.4m expected next year. There continues to be underlying demand for the company’s products, but a significant recovery could be a year or more away.

Telecoms and network testing instrumentation supplier Calnex Solutions (CLX) is uncertain about the timing of telecoms customer orders. Revenues will be up to 30% lower than previous expectations. Cavendish has slashed its 2023-24 pre-tax profit forecast from £4m to £100,000, down from £7.2m last year. The balance sheet remains strong even though net cash is set to fall to £13.9m. The market capitalisation is £41.6m.

Versarien (VRS) has sent a general meeting notice to shareholders to gain approval to reduce the 1p par value of the share capital so that new shares can be issued.

Shares in Mind Gym (MIND) will report a first half loss. Results will be well below expectations in the year to March 2024. Clients are restructuring and delaying training programmes and the US has been particularly weak. A full year loss of £6.2m is forecast, compared with a pre-tax profit of £600,000 last year. When the company floated in June 2018 it was valued at £145m and the market valuation has slumped to £35.1m.

Market research firm YouGov (YOU) reported a 61% underlying improvement in pre-tax profit to £56.4m. Net cash was £107.2m at the end of July 2023, although this is before the proposed acquisition of the GfK consumer panels business. Custom research is growing fastest. The US has been a tougher region.

Cornish Metals (CUSN) says the feasibility study for South Crofty tin mine is progressing well. The successful test work confirms that there is potential for a resource upgrade. Process design optimisation should reduce capital and operating costs.

Ondine Biomedical (OBI) says that its Steriwave nasal photodisinfection technology is available across Canada, having recently come into use at Nova Scotia’s largest hospital. One-in-nine hospital patients in Canada get a hospital-related infection. Steriwave is an alternative to antibiotics.

Zenova Group (ZED) says that its 6 and 9 litre fire extinguishers have completed the EN3-7 tests for European certification. This will allow the extinguishers to retail and industrial customers. The first order for the FX6 litre fire extinguishers has been received.

MAIN MARKET

Heavy trucks demand remains strong, and Castings (CGS) is a company that is doing well out of this. Zeus forecasts an improvement in full year pre-tax profit from £16.7m to £19.4m. Net cash was £35.6m at the end of March 2023 and it could be more than £40m by next March.

Critical Metals (CRTM) has entered into an offtake agreement with OM Metal and Resources for the sale of 20,000 tonnes of copper oxide ore, at an average minimum grade of 1.5%, from the 70%-owned Molulu copper/cobalt project in the DRC. The agreement lasts until the end of 2023. The first delivery has been made. An existing processing plant will be rented and subsequently acquired.

Quoted Micro 8 October 2023

• BY: Andrew Hore |
• POSTED: 09/10/2023 |

AQUIS STOCK EXCHANGE

Trading in Silverwood Brands (SLWD) shares have been suspended. The company has mutually agreed with Lush that there can be another extension to 9 October for the timetable to serve its defence in the litigation concerning the acquisition of a stake in Lush. Tanith Dodge has resigned as a non-exec director.

Dermatological treatments developer Incanthera (INC) had £3,000 in the bank at the end of March 2023. There has been £32,000 raised since then. Commercial deal discussions continue. The technology continues to be enhanced.

Electric drivetrain technology developer Equipmake (EQIP) increased revenues from £3.7m to £5.1m in the year to May 2023. The cash outflow from operations was £9m and £1.2m was spent on capital investment. There is £7m in the bank.

Guanajuato Silver (GSVR) provided updated production guidance for its four silver mines. The focus will be on mining higher grade areas. The silver equivalent production will range from 3.4 million to 3.6 million in 2023.

Clean Invest Africa (CIA) is the best performer on the week following its interim results. Management says that there are potentially exciting prospects, but more funds will be required. Securing a partner for a CoalTech coal fines processing plant would involve a project worth more than $10m.

Invinity Energy Systems (IES) has sold a 1.1MWh vanadium flow battery to NARLabs in Taiwan. The flow battery will be installed in the company’s building.

Yooma Wellness Inc (YOOM) has sold Vitality CBD for $2m to Psilobrain Therapeutics, a Canadian biotech company. The cash is payable in three instalments over 210 days. The shares remain suspended. The company is still short of cash and it has no operating business.

Gunsynd (GUN) has a 0.66% stake in Pacific Nickel Mines, which has commenced the mining of saprolite nickel ore at the Kolosori nickel project in the Solomon Islands. The first shipment should be in November.

EDX Medical (EDX) has signed an agreement with Guardant Health to distribute its cancer genomic liquid biopsy tests in the UK and Nordic countries. EDX Medical made a £3.7m loss in the period to March 2023. The share price declined 12.5% to 2.625p.

Marulu Mining (MARU) says that assay results confirm high-grade copper at the Sasimo prospect at the Kinusi copper mine in Tanzania. The average copper grade was 2.68%. The target is estimated to be 10-15 million tonnes of copper. Drilling at the Blesberg lithium and tantalum mine in South Africa is nearing completion.

Tap Global Group (TAP) has reached an agreement to launch its cryptocurrency app in conjunction with Chicago-based Zero Hash, which has regulatory approvals. This service should launch in the fourth quarter.

Looking Glass Labs (NFTX) has consolidated 75 shares into one new shares.

Tunch Kashif has increased his stake in ChallengerX (CXS) to 21.6%.

AIM

Educational services provider Tribal Group (TRB) is recommending a 74p/share cash bid from Ellucian Company. The share price has not been at the bid level since September 2022, following disappointing interim figures. The bid values Tribal at £172m and it will create an international supplier of technology to education and public sectors.

A firm bid for online home moving services provider Smoove (SMV) was announced at the end of trading on Wednesday. The original approach was revealed in April. PEXA Group is offering 54p/share in cash, valuing Smoove at £30.8m. The share price has not been high for just over one year. The company joined AIM as ULS Technology on 28 July 2014, when it was valued at £25.9m at the placing price of 40p.

Inspiration Healthcare (IHC) interim figures should mark the bottom for the company and there should be a profit improvement in the second half. In the six months to July 2023, revenues were flat at £20.4m, but there was underlying growth excluding the medical device that is still awaiting UK approval. Pre-tax profit nearly halved to £700,000. The interim dividend is unchanged at 0.205p/share. A full year pre-tax profit of £2.4m, up from £2m the previous year, is forecast.

Telematics company Quartix Technologies (QTX) admitted that revenues and gross margins would be lower than expected. Progress in the UK and US has been disappointing, and these markets will be focused on. Quartix has acquired Konetik, which provides the technology for its Evolve product, for €2.5m, with up to €1.4m more payable depending on the sale of Evolve licences. Around 50,000 tracking systems will have to be replaced in France when 2G networks are switched off and this could cost Quartix £4.1m over three years. EBITDA could be £1.1mm lower than forecast this year and £2.4m lower next year. The dividend may be reduced.

Neometals (NMT) says that the new lithium recovery process has led to more than 93% lithium recovery from batteries in the form of lithium fluoride. This should reduce operating costs and capital investment. The proposed offtake agreement with Jiuxing Titanium Minerals for the Barrambie titanium project in Australia was not agreed and other partners are being considered. Cavendish values Neometals at 140p/share.

Horizonte Minerals (HZM) is changing the design of the Araguia nickel project in Brazil, which will increase capital investment and delay production until the third quarter of 2024. Management is in talks about additional financing. A review of operating costs should be completed by the end of the year.

Resources projects developer Oracle Power (ORCP) is raising £350,000 at 0.035p/share with one warrant exercisable at 0.07p attached to every two shares. A capital reorganisation to reduce the nominal value of the shares to 0.001p is required, or the new shares could not be issued. The cash will be spent on the company’s green hydrogen project in Pakistan, which will have a 400MW capacity.

Autonomous vehicle developer Aurrigo International (AURR) has signed a deal with International Airlines Group to deploy its vehicles at a major UK airport. A small number of vehicles should be deployed in early 2025.

The latest budget from the Trinidad and Tobago government should ensure than Trinity Exploration and Production (TRIN) will not pay any supplemental petroleum tax in 2024. The threshold price for offshore assets has been raised by 50% to $75/barrel, while the sustainability incentive has been raised from 20% to 25% to encourage investment. There will be a review of the capital expenditure write-off regime.

Secure payments technology developer PCI-Pal (PCIP) is seeking maximum recovery of costs from the company that filed the UK patent dispute that was resolved in PCI-Pal’s favour last week. In the first quarter of the new financial year, 57 new contracts have been signed. However, Cavendish has reduced its expectations for growth in 2023-24 revenues from 34% to 28% following the latest guidance from the company. PCI-Pal is still expected to move into profit this year, but it is a more modest £100,000.

MAIN MARKET

S and U (SUS) reported a small improvement in pre-tax profit from £20.9m to £21.4m. The profit from the Advantage Finance car finance business with the main improvement coming from Aspen Bridging, which provides property finance. The interim dividend is maintained at 35p/share.

XP Power (LON: XPP) says weaker demand has hit customer orders for power products have hit third quarter revenues. Dividends are being temporarily halted and the previously announced second quarter dividend will not be paid. Analysts had been expecting a flat 2023 pre-tax profit of around £38m, but expectations have been cut to £32m. Net debt had been expected to fall this year, but it had risen to £163m by the end of September and it will be even higher at the end of the year.

Rival bids for Pendragon (LON: PDG) have pushed Lithia Motors to increase its offer for the motor dealer business from £250m to £367m. That is equivalent to 24.5p/share and in this deal shareholders will retain majority ownership of the Pinewood dealer management software. The total value of the deal and retained interest is estimated at 35.4p/share. Hedin Mobility is no longer considering a bid.

Packaging manufacturer and distributor Macfarlane Group (MACF) has acquired B&D 2010 Group for up to £3.85m in cash, depending on performance. The bid target produces protective packaging, and the customer base is in defence, space and aerospace.

AIM 50 Digest 6 October 2023

• BY: Andrew Hore |
• POSTED: 09/10/2023 |

WH Ireland has downgraded its 2023-24 revenues forecast for James Halstead (JHD) following the 2022-23 results. However, the pre-tax profit forecast has been maintained. A small improvement from £52.1m to £52.6m is expected, but the higher tax rate will mean earnings will dip to 9.7p/share. The focus is on higher margin business.
=
In the six months to August 2023, Vertu Motors (VTU) revenues were 21% ahead at £2.42bn. There was a small dip in gross margin to 11%, but operating profit was one-third higher at £41.4m. The Helston acquisition pushed Vertu Motors net debt to £90.7m, and that meant that the interest charge was higher, so pre-tax profit grew 12% to £31.5m. The interim dividend is 21% higher at 0.85p/share. Net tangible assets of 70.9p/share.
=
Next 15 Group (NFG) interims show a 5% increase in revenues to £286.4m, but pre-tax profit dipped 8% to £55.6m. The interim dividend was raised 5% to 4.75p/share. There are plans to buy back up to £30m of shares. AI will provide long-term opportunities.
=
Mortgage Advice Bureau (MAB1) increased interim revenues by 22% to £117.5m, thanks to the acquisition of Fluent, but underlying pre-tax profit was one-quarter lower at £8.8m because the cost base has been built up for expected growth. The interim dividend is maintained at 13.4p/share. Market conditions have got tougher in the third quarter. A full year pre-tax profit of at least £22m is expected.
=
Defence company Cohort (CHRT) says first quarter revenues and profit are in line with expectations and the order book is worth £370m, which covers 93% of forecast revenues.
=
RWS (RWS) has acquired South Africa-based STComs Language Specialists. This is the first foothold for RWS in Africa.
=
Medical devices developer Niox Group (NIOX) increased interim revenues by 21% to £18.8m, while operating profit improved from £600,000 to £2.9m. Cash was £23.8m at the end of June 2023. Since then, a second payment of $3.5m has been made by partner Beyond Air.
=
Victorian Plumbing (VIC) increased full year revenues by 6% and profitability has improved. The new warehouse is on course to be opened in 2024.
=
Floorcoverings supplier Victoria (VCP) has stressed that there has been no wrong-doing at its small subsidiary Hanover Flooring, which has incomplete accounting records. Controls have subsequently been improved and all money accounted for. Integration projects should add more than £20m to annualised profit. Demand is stable and margins are improving. The group credit rating is maintained at BB-.
=
Engineering services provider Renew Holdings (RNWH) says full year figures will be ahead of expectations. Analysts edged up pre-tax profit to £62m. Net cash should be above £24m at the end of September 2023.
=
Alliance Pharma (APH) improved interim revenues from £81.6m to £82.4m, but pre-tax profit fell from £19.7m to £10.3m, partly down to higher interest costs. Destocking in China and manufacturing problems hampered progress in the first half. The second half should be much better.
=
Learning Technologies Group (LTG) has been hit by one-off integration issues in the first half, but these are resolved. Interim revenues were 2% ahead at £284.6m, while operating profit was 1% lower at £43.1m. Net debt was £108.4m at the end of June 2023. The interim dividend is maintained at 0.45p/share.

Young and Co’s Brewery (YNGA) says like-for-like revenues were 6.8% higher in the first 13 weeks of the financial year.
=
accesso Technology (ACSO) is spending up to £4m on buying back shares.
=
New chair Liz Shanahan and her husband have bought 50,341 shares in Advanced Medical Solutions (AMS) at 198.64p each. Smart Metering Systems (SMS) director Tim Mortlock acquired 8,169 shares at 612p each.

Quoted Micro 2 October 2023

• BY: Andrew Hore |
• POSTED: 01/10/2023 |

AQUIS STOCK EXCHANGE

Shepherd Neame (SHEP) grew annual revenues by 10% to £166.3m, while underlying pre-tax profit was 4% ahead £7.6m. The full year dividend has been increased from 18.5p/share to 20p/share. NAV is 1205p/share. Like-for-like owned pub sales were 13% higher. Drink sales were particularly strong with food sales more modestly ahead. Within the M25 the growth is even higher at 31%. Tenanted pubs like-for-like income grew a more modest 4%. Brewing volumes fell and this decline has accelerated in the early weeks of the new financial year.

Global Connectivity (GCON) still owns 15% of Rural Broadband Solutions. There was £33,000 in the bank at the end of June 2023 and the repayment of an intercompany loan should bring in £550,000 over the next 18 months. Running costs have been reduced by more than one-third. Investments will be sought for the holding company.

EDX Medical (EDX) is acquiring Hutano Diagnostics for an initial 9.09 million shares at 11p each. This will increase the number of diagnostic tests that can be offered by the group. The tests are better than their lateral flow equivalents.

Chapel Down (CDGP) increased interim revenues by 21% to £8.4m and the momentum has continued. Net cash was £1.2m at the end of June 2023. A good grape harvest is expected. Full year revenues are expected to rise from £15.6m to £18m, but pre-tax profit would be flat at £1.7m. Management is considering a move to AIM. NAV is 60p/share.

Music artist representation and services company All Things Considered (ATC) increased underlying revenues by two-fifths to £3.39m. The main growth came from the management and live events businesses. The underlying loss was slightly lower at £700,000. The figures exclude one-off services revenues in 2022. Net cash was £890,000 at the end of June 2023. Since then, £4.18m was raised to fund the purchase of 60% of Sandbag, which added additional clients.

St Mark Homes (SMAP) increased its interim loss from £171,000 to £1.2m, mainly due to a large loss at a joint venture. The housebuilder has been hit by supply delays and inflation. Subcontractor insolvency has further delayed projects in London.

KR1 (KR1) had net assets of 51.12p/share at the end of June 2023, but this fell to 42.5p/share at the end of August.

Bitcoin miner Vinanz Ltd (BTC) has increased its bitcoin holding from 5.01 BTC to 7.84 BTC since flotation in April.

Vanadium flow batteries supplier Invinity Energy Systems (IES) reported a higher than forecast interim loss as gross margins fell. The full year forecast loss has been increased to £27.4m. An order from the US Department of the Environment is for six installations totalling 84MWh, but the installation will not be until 2025. Cash is flowing out of the business and more may need to be raised next year.

Cooks Coffee (COOK) is appointing administrators to its Triple Two coffee shop franchise business. There are currently eleven stores, which are trading poorly. The Esquires chain is trading well.

Wishbone Gold (WSBN) had cash of £428,000 at the end of June 2023. Since then, £1.42m was raised at 2.4p/share. Further results from the drill programme will be released in the second half.

Cadence Minerals (KDNC) reduced its interim loss from £5m to £2m. There was £577,000 in the bank at the end of June 2023.

Gowin New Energy (GWIN) still has no revenues and the interim loss increased. A director has loaned £15,000 to the company.

Marula Mining (MARU) has agreed to acquire a 75% stake in ten graphite licences in Tanzania. Net debt was £3m at the end of June 2023.

Coinsilium (COIN) group revenues fell by nearly three-fifths, but the loss reduced from £1.2m to £104,000. There is £1.07m of crypto assets and cash of £608,000.

Guanajuato Silver (GSVR) revealed an upgraded mineral resource estimate for the San Ignacio mine. The estimate is 790,000 tonnes at 123g/tonne silver and 2.1g/tonne gold. The silver equivalent of estimated resources is increased by 35%.

SulNOx Group (SNOX) has secured a Eurasian patent for a range of formulisations of its emulsifiers. Lord Nicholas Fairfax acquired 28,000 shares at 20.44p each.

NFT Investment (NFT) had net assets of 3.04p/share at the end of September 2023. That includes £400,000 of cash, £3.9m of investments and £26.3m of cryptocurrency and tokens.

Walls and Futures REIT (WAFR) had net assets of 89p/share at the end of March 2023. The value of investment property fell by 9%.

Equipmake (EQIP) has been awarded a £1.75m contract by Big Bus Tours to repower its fleet of London buses using its zero emission drivetrain system.

ProBiotix Health (PBX) improved interim revenues from £302,000 to £552,000, while the loss doubled to £512,000. There was £1.95m in the bank at the end of June 2023.

Quantum Exponential Group (QBIT) has opened a European office in Copenhagen. Denmark is major player in quantum technology and will provide more opportunities for investment.  The company has also been awarded a six month advisory contract to examine private investment in quantum technology by the UK Department of Science, Innovation and Technology.

Looking Glass Labs (NFTX) is consolidating 75 shares into one new share.

AIM

Floorcoverings distributor Likewise (LIKE) grew interim revenues by 17% to £66.6m in a declining market. However, the cost of increasing capacity meant that the profit was lower. The focus is organic growth and there is warehouse capacity in place to achieve the company’s annual revenues target of £200m. Full year pre-tax profit is expected to slip from £2.6m to £2.5m before recovering to £3.5m next year.

Cannabis-based ingredients and medicines developer Celadon Pharmaceuticals (CEL) says that it will start supplying its two major customers before the end of the year. It also hopes to sign up a partner to finance the trial of a cannabis-based alternative to opiates. The LVL pain relief trial will cover up to 5,000 patients and could take up to three years, although it should not be that long. Canaccord Genuity expects the trial to last 12-18 months from its launch, which could be in the first half of next year. The interim cash out flow from operating activities was £3m. Cash was £1.6m at the end of June 2023.

In the year to June 2023, Transense Technologies (TRT) revenues were one-third higher at £3.5m, while pre-tax profit jumped from £268,000 to £1.09m. This indicates the operational gearing of the business. All three parts of the business increased revenues with the iTrack tyre pressure sensors still generating the most revenues. The profit was achieved after a £662,000 operating loss, down from £821,000, by SAWSense, which is still developing products and partnerships with potential customers. Net cash declined from £1.06m to £978,000 by the end of June 2023. That was due to share buy backs and these are going to continue as an alternative to dividends.

PCI-Pal (PCIP) has defeated the UK patent infringement suit brought by Sycurio. The UK High Court ruled that Sycrio’s patent was invalid and PCI-Pal’s Agent Assist product would not infringe the patent if it were valid. The US case is continuing. This will help to reassure investors who have been cautious about the secure payments company because of the legal uncertainty. The company is on course to move into profit in the year to June 2024.

In-game advertising platform Bidstack (BIDS) have licenced technology to a new company called VST, so that it can raise cash for its funding requirements. Bidstack chief executive James Draper and executive director Lisa Hau have set up VST, which is paying Bidstack a licence fee of £1.5m for the provision of technology for worldwide use for sports leagues and teams in virtual stadiums. Camila Franklin has stepped down from the Bidstack board after 12 months. Bidstack had £2.08m in cash at the end of June 2023. Revenues will fall short of expectations this year.

MS International (MSI) has won a contract with the US Navy through its US-based subsidiary. The $23.5m contract is for the supply of Mk38 MOD4 gun mounts, which will be delivered by the end of 2024. This follows another longer-term US Navy contract announced at the beginning of September.

Cameroon-focused oil and gas company Bowleven (BLVN) is still awaiting completion of the sale of a 37.5% interest in the Etinde project by New Age. Regulatory approval is required, and it is uncertain if the deal will go ahead and this means greater uncertainty for Bowleven, which has an interest in the project. Bowleven has $1.25m in cash and will need to raise more by the first quarter of 2024.

Bradda Head (BHL) has updated its mineral resource estimated for the Basin sedimentary lithium project in Arizona. It has been raised by 192% to total contained lithium carbonate equivalent of 1,085kt. The grade has increased by 30% to 990ppm. This triggers a $2.5m royalty payment from Lithium Royalty Corp.

ZOO Digital (ZOO) has been hit by industrial action in the film and TV sector and changing spending patterns by clients. This means that 2023-24 revenues are likely to more than halve to $44m and the loss could be $13.8m. Net cash would reduce to $8m. Cost reductions should help the company to move back to profit next year.

Shield Therapeutics (STX) has secured $20m of debt and it is raising $6.1m from a share issue with up to $1.4m to come from a REX retail offer. The shares are being issued at 8p each and the offer closes on 4 October. Accrufer prescriptions numbers are growing, but it will take until late 2024 at the earliest for the company to reach cash breakeven. Monthly cash burn is currently $3.3m.

Although restaurants operator Tasty (TAST) improved like-for-like revenues by 1.4%, cost inflation meant that the pre-tax loss increased from £2.66m to £6.24m. There was also the loss of Covid relief and the provision for poorly performing sites was £4m, compared with £1.6m last time. This led to a cash outflow and net cash reducing to £2.8m.

A strong performance in Brazil offset delayed demand in the US for Plant Health Care (PHC) with interim revenues 1% ahead. Management believes that US demand will recover in the second half. A small loss is expected for 2023, based on a stronger second half, and Cavendish still expects a move into profit in 2024.

Inland Homes (INL) has been placed in administration with FRP Advisory.

MAIN MARKET

There is a bid battle for motor dealer Pendragon (PDG) and the latest entrant into the field is AutoNation Inc, which is offering 32p/share. It appears that the deal to sell the core motor business to North American automotive retailer Lithia Motors for £250m and concentrate on the software business may need to be improved if it is to go ahead. Management is considering the AutoNation Inc offer, as well as a revised offer of 32p/share from Hedin Mobility and PAG International – the original offer of 28p/shares was rejected.

Quoted Micro 25 September 2023

• BY: Andrew Hore |
• POSTED: 24/09/2023 |

AQUIS STOCK EXCHANGE

Aquis Stock Exchange owner Aquis Exchange (AQX) reported interims showing growth in all four divisions of the group and the Aquis Stock Exchange remains profitable. Group revenues improved from £7.85m to £9.34m, while pre-tax profit rose from £699,000 to £1.15m. Net cash is £13.9m.

Brewer Adnams (ADB) says trading improved in the second quarter and cost savings started to kick in. This partly offset the decline in revenues in the first quarter, but the interim revenues were still slightly lower at £30m. Operating costs and interest charges increased, and the loss trebled to £3.13m. Adnams is taking on new customers, but the average order size has reduced. Trading conditions are uncertain, but the new customer sand listings will help to boost the second half.

Africa-focused battery metals company Marula Mining (MARU) is considering moving to the standard list as an alternative to AIM. Management believes that this would not add any additional time to the process, and it believes that the proposed investment by Q Global Commodities will make Marula Mining large enough to be eligible for the standard list. It is also planning listings on the Nairobi Securities Exchange and the Johannesburg Stock Exchange. Warrants exercised at 4p/share raised £50,000. A shipment of 27.5 tonne high-grade material processed from stockpiles at the Blesberg lithium and tantalum mine in South Africa has been delayed. The offtake agreement with Southern Jade Resources has been terminated and an alternative agreement is being finalised. Additional drilling at Blesberg is progressing and initial assay results should be published in late October.

Apollon Formularies (APOL) has executed a binding letter of intent with Sproutly Canada Inc, who will acquire the assets of the cannabis-based drug discovery company. After completion of due diligence, the assets will be acquired in return for shares equivalent to 49% of Sproutly. The effective valuation is C$7m (£4.2m). Sproutly has to go through audits and other regulatory requirements to become active and trading on the Canadian Stock Exchange.

Fuel additives SulNOx Group (SNOX) says it requires new equity investment from existing and new investors in order to achieve faster and sustainable revenue growth. There would additional industry hires for the board and sales personnel. There will also be increases in stock levels and new products will be developed. The board is seeking shareholder authority to issue new shares. Mohanned Nawaz Haq does not agree with the new strategy and the board recommends voting against his appointment at the AGM on 26 September.

Newbury Racecourse (NYR) improved interim turnover by 3% to £8.03m, but the company fell into loss because gross margins slumped. The nursery increased its contribution, but there were lower attendances at races. An event in July had the highest attendance for four years. Next year will get the full benefits of the media rights deal.

Broker and wealth management company Oberon Investments (OBE) has raised £2.5m via a placing at 3.6p/share and a retail offer could raise a further £500,000. The share price dipped 2.78% to 3.5p. The cash will fund expansion, including the recruitment of revenue generating teams. The Winterflood Retail Access Platform offer has a minimum subscription of £50. Investors can apply for shares via their broker or intermediary and the closing date is 4.30pm on 25 September.

Silverwood Brands (SLWD) has been given an extension of the time to deliver its defence to the legal action by Lush and VSA resigning as corporate adviser and being replaced by Peterhouse. Lush is refusing to recognise the transfer of a 20% stake to Silverwood Brands. VSA Capital (VSA) owns 0.88% of Silverwood Brands and says that the share price slump will hit its interim results to September 2023. It will make the loss larger than expected.

Property investor Ace Liberty and Stone (ALSP) increased net assets by 1% to £34.4m at the end of April 2023. Disposals meant that full year revenues fell 2.5% to £5.56m. There is £6.23m in cash available for investment. No final dividend is declared, partly due to the lack of distributable reserves.

Cadence Minerals (KDNC) investee company Evergreen Lithium has completed the final analysis of its EXOSPHERE BY FLEET Ambient Noise Tomography geophysics survey at Bynoe. Nine pegmatite targets have been identified. Approvals are required for drilling.

Watchstone Group (WTG) had net assets of £7.6m at the end of June 2023, including cash of £8.3m. By 19 September, cash had fallen to £7.6m. The claim against PwC was dismissed by the High Court and Watchstone had to settle legal costs. Canadian legal action continues.

Helium Ventures (HEV) has raised £250,000 at 4p/share. There are plans to move to AIM rather than the standard list, while maintaining the Aquis quotation. It hopes to do this by the end of this year. The potential acquisition of tracking technology company Trackimo is progressing, and Mark Notton has been appointed as its chief executive.

MBH Corporation (M8H) has acquired caravan and motorhome retailers Lincoln Leisure Vehicles and Golden Castle Caravans for an initial £400,000 in cash and £2.58m in loan notes. There will also be share issues totalling £2.24m over the next two years. The companies made an operating profit of £660,000 last year. These businesses will be integrated with the existing caravan and motorhomes operations.

Pharma C investments (PCIL) says that the general meeting scheduled for 27 September will not go ahead because the requisition has been withdrawn. The proposals were to remove Gavin Hilary Sathianathan and appoint Paul Ryan and Noel Lyons to the board.

Medical device developer TruSpine Technologies (TSP) has appointed Victoria Sena and Samuel Ogunsalu to the board. The company is not appealing the disciplinary notice from the Aquis Stock Exchange and the new appointments will improve corporate governance.

SuperSeed Capital (WWW) says that the SuperSeed II LP has sold Garvis, a SaaS company offering language model technology and AI-native demand forecasting. The original investment was in September last year. There was a triple digit IRR on the investment.

Lift Global Ventures (LFT) subsidiary Miriad has been appointed as corporate communications agency to Imperial Diagnostix Laboratories, which plans to float next year. Imperial Diagnostix Laboratories provides point of care testing products and has been granted access to the NHS supply chain.

Wishbone Gold (WSBN) says drilling has started at the Red Setter project in Western Australia. Initial targets are at a shallow depth and the company is seeking broad spreads of mineralisation. Drilling at the Cottesloe prospect reinforces previous findings. Additional drilling will be 50% funded by the Western Australian government’s EIS scheme up to a total of A$220,000.

Invinity Energy Systems (IES) says that Canadian company Elemental Energy has commenced operation of the company’s 8.4MWh Invinity VS3 vanadium flow battery. This is the largest operation so far.

Majestic Corporation (MCJ) reported flat revenues of $13m, while pre-tax profit dipped from $980,000 to $862,000. There was $680,000 generated from operating activities. The metals recycler has $1m in the bank. Rising interest rates have had a negative impact on commodity prices.

EPE Special Opportunities (EO.P) directors and the managing partner of EPIC Investment Partners bought a total of 16,837 shares at 160p each.

Kasei Holdings (KASH) has switched its corporate adviser to VSA.

AIM

International retailer Mothercare (LON: MTC) reported a decline in full year revenues from £82.5m to £73.1m. A fall in admin expenses and interest costs, partly offset this decline, but underlying pre-tax profit still slumped from £8m to £3.4m before restructuring costs. The lack of contribution from Russia was a factor in the lower revenues – this is part of the Alshaya franchise area. Middle East demand remains subdued since Covid. Net debt rose from £9.9m to £12.4m. The loan facility is being renegotiated. The current interest rate is 19.2%. Since the year end, a reduction in pension contributions has been agreed. In the ten years to March 2033 the total contributions will be £34.9m, down from £73.7m in the previous ten years. The revaluation of the pension fund shows a deficit of £35m.

Finsbury Food (FIF) is recommending a 110p/share bid by a company backed by DBAY Advisors valuing the cake maker at £143.4m. There is a non-voting share alternative to the cash bid for eligible investors. The bid is less than ten times prospective earnings. The share price has not been at this level since early 2019.

Renewable electricity supplier Good Energy (GOOD) had a strong first half due to higher tariffs and lower supply costs, but the second half will be tougher. Interim revenues were 46% ahead at £156.1m and the company swung from a loss to a pre-tax profit of £13.1m. The energy services business is losing money as it is being built up. The interim dividend has been raised by one-third to 1p/share. Tariff reductions are happening ahead of falls in supply costs for the company and that will lead to a second half loss, but Good Energy will still be profitable for the full year.

Orcadian Energy (ORCA) announced that it has entered non-binding heads of agreement with a North Sea operator to farm out the Pilot project for a full carry until first oil. Orcadian Energy would retain a 18.75% working interest. The agreement includes the drilling of five subsea wells. Orcadian Energy will receive $100,000 when the agreement is completed, plus $100,000 if it is awarded an additional licence. Field development plan approval would trigger a payment of $3m.

Trading has deteriorated since August at replacement windows supplier Safestyle (SFE) and it is expected to lose £10m in 2023. Order levels are falling short of budget. Net debt could reach £6m at the end of 2023 – the credit facility is £7.5m. Management wants to strengthen the balance sheet.

Harvest Minerals (HMI) reported interims showing a near-doubled loss as demand for fertiliser fell and pricing was lower in the period. The second half sales are normally much greater than in the first half, but they continue to be disappointing. Low crop prices mean that farmers are not investing to boost production. Cash has declined and the company has moved into net debt of £1.4m, partly due to a jump in inventories.

Eqtec (EQT) announced that the Billingham waste-to-energy project is not going ahead. Potential customers have closed facilities and the project is behind schedule. So far, £4m has been invested. There is a possibility of getting some of this cash back. Eqtec is also taking legal action against its partner in the Deeside project, seeking repayment of £4m of loans. The focus is other European markets. Forecast 2023 revenues have been slashed by more than three-quarters.

Scancell (SCLP) reports that early data from the phase II SCOPE study of SCIB1 in combination with checkpoint inhibitors as a treatment for advanced melanoma are positive. Tumour reduction at 13 weeks is 31-94%. This is for a relatively small number of patients, but it does indicate that there is strong potential for the treatment. The second stage of the study has a strong probability of success. This data will be available in the first half of 2024. Potential partners are likely to be interested.

Firering Strategic Minerals (FRG) raised £756,000 at 6.5p/share. This cash will be used to define identified pegmatite targets through a drilling campaign at the Atex lithium-tantalum project in Cote d’Ivoire. Firering Strategic Minerals holds 90% of the company that owns the Atex project. Firering Strategic Minerals also owns 75% of Bri Coltan, which owns the coltan rights for the Atex area. Coltan is composed of tantalum, niobium, iron and manganese. Nine target areas have been identified, including the six newer ones. The latest drilling is planned for the fourth quarter of 2023.

Alien Metals (UFO) says the latest drilling results from the 90% owned Hancock Iron Ore project in Western Australia indicate the potential for the project. There is high-grade mineralisation. The resource estimate will be upgraded.

Digital coupons and loyalty technology provider Eagle Eye (EYE) reported organic growth of 29% last year. International revenues grew strongly as new retailers were added to the service and when they sign up retailers tend to stay with the company. This year, pre-tax profit could improve from £4.3m to £6.2m. The cash pile reached £9.3m at the end of June 2023.

Cosmetics supplier Warpaint London (W7L) is bucking the trend of the consumer sector, where many other companies selling to the public are performing poorly. That is down to the fact that Warpaint London is in the value end of the cosmetics market. It is also adding retailers and benefiting from the international spread of the business. UK interim revenues were 28% ahead, while group revenues were 46% higher.

Structural steel supplier Billington (BILN) significantly improved margins in the first half and it still has a strong order book despite the contraction of the construction sector. This reflects the broad spread of projects being supplied. Revenues were 30% higher at £60.1m and pre-tax profit jumped from £1.3m to £4.59m.

There is not going to be a bid for Kinovo (KINO), which was not going to recommend the 56p/share offer and there was no increase tabled.

MAIN MARKET

Motor dealer Pendragon (PDG) plans to sell its entire core business to North American automotive retailer Lithia Motors for £250m. This would turn Pendragon into a software business and there could be a £240m payout to shareholders, equivalent to 16.5p/share. Lithia Motors would also subscribe £30m for 279.4 million shares and will roll out Pendragon’s Pinewood dealer management software to its existing 50 UK sites. However, there has been a bid approach for the whole company from Sweden-based Hedin Mobile and US transportation company PAG International. The initial 28p/share offer was turned down, but a higher bid of 32p/share is being considered.

First Tin (1SN) still has cash of £7.9m and that is enough to fund the DFS for the Taronga tin project in Australia. The cost of the project could be reduced by using solar power and more efficient processing. The mineral resource estimate has been increased by more than 240% to 133 million tonnes. The Tellerhauser project in Germany hopes to gain a mine permit in the third quarter of 2024.

Shipbroker Braemar (BMS) has reaffirmed that it will make an underlying pre-tax profit of at least £20m for the delayed results for the year to February 2023. The investigation into transactions between 2006 and 2013 is nearing completion. There may be adjustments to previous accounts.

AIM 50 Digest 22 September 2023

• BY: Andrew Hore |
• POSTED: 23/09/2023 |

Mixer drinks supplier Fevertree Drinks (FEVR) grew interim revenues by 9% to £175.6m. UK sales were flat, and the fastest growth was in North America. Underlying pre-tax profit slumped from £19.4m to £6.9m as staff costs increased by one-fifth. There was a £3.3m US stock provision. There are plans to reduce costs so profit recovers. The interim dividend was raised by 2% to 5.74p/share. There is £75.8m in cash. Non-exec Kevin Havelock bought 10,243 shares at 1269p each.
=====
Video game services provider Keywords Studios (KWS) grew interim revenues from Euro321.1m to Euro383.5m, but underlying earnings were flat at €0.556/share. Acquisitions left net debt at Euro11.4m. The revolving credit facility has been increased to $400m. The interim dividend is 10% ahead at 0.85p/share. The writer and actor strikes are having a negative effect on second half growth.
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Woundcare products supplier Advanced Medical Solutions (AMS) has signed a US commercialisation agreement for LiquiBandFix8 with TELA Bio Inc and it will be launched under the LIQUIFIX brand. Interim revenues rose 8% to £63.1m, as US destocking hold back growth, while pre-tax profit was flat at £13.8m. New distribution agreements will help to accelerate growth from the end of the year.
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Veterinary company CVS Group (CVSG) increased full year revenues by 10% to £608.3m, while underlying pre-tax profit was 13% higher at £85.4m. Net debt is £74m and the borrowing facilities have been raised from £170m to £350m. The Healthy Pet Club membership grew to 494,000 by the end of August. Five acquisitions have been made in Australia. 
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Oil palm plantations operator MP Evans (MPE) increased fresh fruit bunch production by 2% to 721,100 tonnes and production levels have improved since then. Costs are being controlled and fertiliser prices have fallen. The crude palm oil price has fallen back from $1,090/tonne to around $970/tonne, although it has been much lower. The average price achieved in the first eight months was $755/tonne. Dry weather has hit the US soybean crop so this should be a positive for the crude palm oil price. Cash generated from operations could be slightly lower in 2023, but net cash should end the year higher at $46.9m even following recent land acquisitions.
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Central Asia Metals (CAML) reported an 18% decline in revenues to $93.6m, while pre-tax profit halved to $32.9m and the tax rate is higher. Capex has increased and the dividend cut by 10% to 9p/share. Zinc production was lower and, although copper production was slightly higher the cash cost went up. Net cash was $50.4m at the end of June 2023. Additional projects are still being sought in Europe and Kazakhstan.
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Brooks Macdonald (BRK) ended June 2023 with funds under management 7.5% higher at £16.8bn. Net inflows generated the majority of the increase. Underlying 2022-23 pre-tax profit was 12% lower at £30.3m, which was better than forecast. Net cash is £53.4m and dividends were raised 6% to 75p/share. There could be a partial recovery in pre-tax profit this year. 
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Interim figures from accesso Technology (ACSO) show a 3% increase in revenues to $65.8m. Operating profit halved to £1.67m before acquisition and integration costs. Acquisitions have reduced net cash to $9.18m. The second half is much more important and cash generative. Non-exec chairman Bill Russell bought 6,500 shares at 634p each and chief executive acquired 12,500 shares at 630p each.
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Fintel (FNTL) reported a small decline in interim revenues because a fall in income for the non-core surveying business. Like-for-like core interim revenues grew 3% to £27.6m. Fintel continues to add to its technology and research operations and that is the fastest growing division. Further acquisitions are likely. The interim dividend was raised 10% to 1.1p/share. Full year earnings are expected to grow 4% to 12p/share.
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Full year figures from floorcoverings manufacturer Victoria (VCP) show revenues 43% ahead at £1.46bn and underlying pre-tax profit edging up from £73.8m to £76.9m. Following acquisitions net debt is £658.3m. Cash generation will reduce this debt. The integration of acquisitions will help to improve margins.
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Smart Metering Systems (SMS) increased index linked annualised recurring revenues by 13% to £110m in the first half of 2023. Underlying pre-tax profit moved ahead from $10.3m to £11.2m. Net cash of £187.2m was forecast for the end of the year. Annual dividend growth continues at 10%/year.
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Tracking technology company Big Technologies (BIG) grew interim revenues by 19% to £27.3m, even though foreign exchange movements held back progress. A currency revaluation gain had enhanced profit in the first half of the previous year. Underlying pre-tax profit improved from £11.9m to £14.5m. Net cash was £75.4m at the end of June 2023. Zeus upgraded its full year earnings forecast by 8% to 8.8p/share.
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In the year to June 2023, Pan African Resources (PAF) reported a reduced pre-tax profit of $92.9m and the dividend was cut from 1.04 cents/share to 0.95 cents/share. Net debt was $22.1m at the end of June 2023. Edison expects a sharp improvement in pre-tax profit to $136.7m this year due to higher metals production.
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Oil and gas producer Serica Energy (SQZ) says that first half production was 85% ahead at 49,400 barrels of oil equivalent. That generated revenues of £341m and £266m of operating cash flow. The interim dividend is 9p/share. Capital investment will offset the Energy Profits Levy.
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Johnson Service Group (JSG) has launched a share buy back of up to £10m. Slater Investments has taken a 10% stake in Alliance Pharma (APH). ITM Power (ITM) chief executive bought 5,800 shares at 79.56p each and fellow executive director Dr Simon Bourne acquired 6,329 shares at 78.99p each.

Quoted Micro 18 September 2023

• BY: Andrew Hore |
• POSTED: 17/09/2023 |

AQUIS STOCK EXCHANGE

An update on the Amapa iron ore project in Brazil from Cadence Minerals (LON: KDNC) says permitting times for the mine and related logistics should be reduced to 12-16 months. An environmental control plan is required to obtain the permits. This will enable a funding decision for the project. Investee company Hastings Technology Metals has expanded its offtake agreement with thyssenkrupp Materials Trading, which will take two-thirds of production from the Yangibana rare earths project.

Invinity Energy Systems (IES) has converted an existing order from Taiwan to its next generation Mistral flow battery. This is a higher margin product targeted at large wind and solar applications. Management is securing additional production capacity with Taiwan partner Everdura.

EPE Special Opportunities (ESO) had net assets of 308p/share at the end of July 2023. Investee company Rayware’s sales have been hit by weak consumer demand. Pharmacy2U continues to grow. Two investments have been sold. Ther was cash of £16.3m at the end of July 2023.

Financial services company Eight Capital Partners (ECP) says its 2021 figures have been restated because of a change in the accounting treatment of the bonds. Non-cash transactions have been removed from the cash flow statement. The book value of the bonds has been changed to fair value and a modified loss recognised on loan liabilities. Net liabilities were £11.4m. The 2022 results show net assets of £25.3m after a debt conversion to equity. A partial reversal of previous fair value adjustments also helped.

Coinsilium Group Ltd (COIN) is providing a convertible loan of $50,000 and has a 12-month option to subscribe for $500,000 for shares in Silta at a pre-money valuation of $7.5m. This means that it could end up with 6.7% of Silta. Last year, Coinsilium entered into an early contribution agreement to buy $75,000 of SILTA tokens. Silta is developing an advanced AI platform for sustainable infrastructure financing.

Hydro Hotel, Eastbourne (HYDP) is paying an interim dividend of 12p/share.

Rod Weinberg has reduced his stake in SulNOx Group (SNOX) from 6.35% to 2.49%. Macaulay Capital (MCAP) managing director David Horner has bought 200,000 shares at 22.5p each. Nigel Pope has taken a 3% stake in NFT Investments (NFT). Gathoni Muchai Investments has trimmed its stake in Marula Mining (MARU) from 12.2% to 11.26%. A warrants subscription at 4p each raised £30,500.

Black Sea Property (BSP) has raised €4.44m from a loan note issue, which is being used to pay for the recent acquisition of a majority stake in Grand Hotel Varna, which owns three hotels and a beach marina resort, plus a mutual fund portfolio. There is still €15.5m to pay.

AIM

Parcel delivery and logistics company DX (DX.) has received a bid approach from private equity firm HIG European Capital Partners. Gatemore Capital Management, which owns 16.8%, says it is willing to support the proposal of 48.5p/share. Management had rejected lower bids, but it would be minded to recommend this one. Due diligence will be required.

Online gaming firm Gaming Realms (GMR) reported interim revenues 35% higher at £11.5m and a 74% increase in pre-tax profit to £2.4m. The licensing business drove the growth. North American revenues increased by 47% and there are more states likely to ease restrictions on online gaming. Growth is coming from moving into new markets and adding new games. There are upfront costs to the expansion, holding back short-term profit. Net cash is expected to be £8m at the year end

Iodine producer Iofina (IOF) increased interim revenues by 27% to $24.3m, while pre-tax profit improved from $2.6m to $4.7m. First half iodine production was 242Mt. Iofina commenced production at its IO#9 plant in Oklahoma at the end of the half year. This is the sixth plant in operation and will help boost second half production to 325-350Mt.

Contract research and infectious disease study services provider hVIVO (HVO) is moving into larger London premises in Canary Wharf. The latest interims have led to an upgrade of guidance for the full year and hVIVO intends to pay a nominal dividend for 2023. Interim revenues were £27.3m, up from £18m, and the full year outcome is expected to be £55.1m with most of the rest of the revenues already contracted.

Construction and property software supplier Eleco (ELCO) increased like-for-like interim revenues by 5% to £13.5m. More importantly, recurring revenues were 18% ahead at £9.7m. This indicates the success of the move to SaaS-based revenues which has held back progress in the short-term. Net cash could reach £10.8m by the end of 2023.

Mkango Resources (MKA) subsidiary HyProMag, which is a short loop rare earth magnet recycler, is participating in a grant funded project called RE-RE Wind, which is designed to provide a circular supply chain for rare earth magnets for wind turbines. The first generation of wind turbines are coming up to the end of their life and a decommissioning programme is required.

Payments services provider Cornerstone FS (CSFS) made a small maiden interim profit. The move into profit was earlier than expected. Interim revenues were 90% ahead at £3.6m and most of this is direct business rather than through third parties. The overheads were held down enabling more of the additional revenues to flow through to profit. Cash is being generated from operations.

Online gaming company B90 Holdings (B90) has raised £2m at 5.44491p/share. The cash will go towards funding acquisitions and further investment in existing assets. The company is also converting £4.73m of loan notes and interest into 86.8 million shares. Enwys, which acquires customers for online gaming companies, has been bought. There are more than 20 other acquisition targets.

Keystone Law (KEYS) is paying a special dividend of 12.5p/share on top of the interim of 5.8p/share. Underlying pre-tax profit was one-quarter ahead at £5.7m, while net cash was £11.3m at the end of July 2023. Interest from new principal lawyers is increasing and 25 offers were accepted in the first half. There is plenty of back office capacity for additional lawyers.

Communications technology developer Feedback (FDBK) is taking time to secure new deals, but they should be on the horizon. The community diagnostic centres contract with the Queen Victoria Hospital has been delayed, but hopefully it should be secured by the end of the year. Feedback is still loss making, even though full year revenues were 74% ahead at £1.02m. The cash outflow, including capitalised development costs, was £3m and the £7.3m in the bank should last more than two years.

North Sea oil and gas producer IOG (IOG) has been told by the authorities that the Nailsworth P2342 and P130 licences are not going to be extended and this could have a negative commercial impact on the potential for the Elland licence. Bondholder discussions continue and the waiver lasts until 29 September. There was £14.5m in cash at the end of August, including £7.3m of restricted cash. There was stable production from Blythe H2, but the realised gas price was lower.

The Property Franchise Group (TPFG) has offset lower revenues from property sales by increasing lettings revenues. Overall interim revenues were 1% ahead at £13.2m. The higher tax rate meant that earnings slipped 2% to 13.8p/share despite an increased profit. The interim dividend was increased by 10% to 4.6p/share.

US-focused betting company Sportech (SPO) plans to leave AIM. It says the burden of time and money is too great. A circular will be sent out to gain shareholder approval at a general meeting.

Bushveld Minerals (BMN) has signed a binding term sheet for a potential $69.5m-$77.5m investment by Southern Point Resources. This includes the acquisition of 50% of Vanchem and 64% of the Mokopane project, plus a $12.5m investment in Bushveld Minerals. There will also be a working capital facility provided. Southern Point Resources will take over marketing and sales of vanadium and other products. The stake disposals will lead to a book loss of $59.6m.

Animal feed ingredients supplier Ocean Harvest Technologies (OHT) raised interim revenues by 43% to €1.8m and gross margins jumped to 36%. Investment in marketing and other aspects of the business meant that the loss was flat at €1.3m. These additional costs should help to generate further sales growth of its seaweed-based feed. Field trials could add up to €13m to annual revenues. However, delays in these trials mean that full year revenues have been downgraded from €4.3m to €3.4m. There should be net cash of €2.9m at the end of 2023.

MAIN MARKET

The FCA has approved the takeover of Lookers (LOOK) by Alpha Auto Group. The bid is 130p/share.

On The Beach (OTB) says its full year results will show record revenues and the holiday company says pre-tax profit will be at the top end of expectations. In the year to September 2022, revenues were £144.1m, which was slightly higher than the pre-Covid level of £140.4m, and underlying pre-tax profit was £14.1m. Consensus forecasts for 2022-23 were revenues of £179.5m and pre-tax profit of £22.6m. The guidance suggests that profit should be slightly higher than that. Even so, underlying pre-tax profit in 2017-18 was higher at £27.6m.

Quoted Micro 11 September 2023

• BY: Andrew Hore |
• POSTED: 11/09/2023 |

AQUIS STOCK EXCHANGE

Ormonde Mining (ORM) has switched from AIM to the Access segment of the Aquis Stock Exchange. Ormonde Mining owns 36.2% of gold and copper explorer. TRU Precious Metals Corp and 20% of battery metals explorer Peak Nickel.

SulNOx Group (SNOX) increased revenues from £34,000 to £203,000 in 2022-23, while the loss was slightly lower at £1.91m. The net cash outflow was £1.2m. Note 3 of the accounts points out the financial position, but management believes that sales will come through to generate cash to fund the business after a reduction in costs. If not, a share issue will be the alternative way of obtaining the cash required. Stephen Bamford and Constantine Logothetis have increased their stakes to 8% and 22.5% respectively.

Aquis Stock Exchange owner Aquis Exchange (AQX) has appointed Investec as nominated adviser and joint broker alongside Canaccord Genuity. It replaces Liberum. The company, which is also quoted on AIM, will report interims on 21 September.

Ananda Developments (ANA) has issued £600,000 of convertibles at 100p each. Two existing shareholders have invested a total of £300,000 and Charles Morgan has converted £300,000 of debt. Unsecured debt will fall to £709,000 and Charles Morgan has agreed not to task for repayment until the end of January 2025. The interest rate is 15% and the conversion price is the lower of a 20% discount to the share price of the next capital raising of at least £1m of 0.4p/share, with a minimum of 0.2p/share. The loans will automatically be converted on 30 November 2025 or earlier.

Pharma C investments (PCIL) will hold the requisitioned general meeting on 27 September. The proposals are to remove Gavin Hilary Sathianathan and appoint Paul Ryan and Noel Lyons to the board.

Investment company Macaulay Capital (MCAP) has seven investments in its portfolio. The NAV dipped from £1.44m to £1.33m at the end of June 2023. There is £368,000.

Capital for Colleagues (CFCP) has received the second tranche of the disposal proceeds of investee company The Homebuilding Centre, which provides homebuilding advice. Successful trading means that the second tranche is £108,000 rather than the expected £50,000.

Cannabis-based products supplier Voyager Life (VOY) improved revenues from £178,000 to £284,000. There was cash of £990,000.

AIM

Controlled environmental agriculture technology developer Light Science Technologies (LST) is acquiring Tomtech for £500,000 with an initial cash payment of £75,000. Tomtech, which supplies and installs monitoring and control systems for greenhouses, has £284,000 in cash and there could be additional cash payments if it is above £185,000 on completion. This deal is immediately earnings enhancing – Tomtech reported a pre-tax profit of £79,000 on revenues of £680,000. There is a complementary product range and cross selling opportunities to Tomtech’s 160 customers.

AMTE Power (AMTE) is raising £2.1m at 1.7p/share at 1.7p/share, plus an additional retail offer to raise £250,000. The share price slumped 78.4% to 2.05p. The battery technology developer is raising the cash to keep going until the proposed cash injection of £2.5m is completed. Due diligence by the potential investor could continue until the end of October and it believes that it can introduce potential offtake customers to AMTE.

Molecular Energies (MEN) plans to sell its Argentinian oil and gas business for up to $40m to its chairman Peter Levine. Argentina is economically and politically volatile and exchange controls mean that the business is hampered. There is a lack of investor interest and there are capital investment requirements that need to be funded. There will be an initial payment of $2m plus repayment of $13m of debt. The rest of the purchase price is based on up to 20% of net free cash flow over the next five years. The Paraguay oil and gas assets and other operations are not included in the sale.

Software supplier GetBusy (GETB) made a slightly lower underlying loss in the first half as it continues to invest in sales and product development. Annual recurring revenues grew 14% to £20.1m. and there is £1.7m in the bank. finnCap maintains its expectation of a small 2023 loss.

Satellite communications equipment supplier Global Invacom (GINV) is seeking shareholder approval to leave AIM and maintain the listing on the Mainboard of the Singapore stock market. There is a lack of liquidity on AIM, and this makes it difficult to raise cash. There is also the cost and management time taken up with being on AIM and another market. A subsidiary signed a multi-year contract with Eutelsat Communications. The July 2014 placing price was 19.75p. The shares have been trading below that price for more than eight years.

Video editing technology developer Blackbird (BIRD) reported a 36% dip in interim revenues to £985,000 after the loss of a contract with A+E and additional development fees in the previous period. The cash outflow was £1.92m, but there is still £8.18m in the bank. Even so, investors want to see progress with the new product for creators and other new business to replace what has been lost.

Capital equipment supplier 600 Group (SIXH) has reconvened its AGM for 29 September. However, the audit for the accounts for the year to March 2023 will not be completed by the end of September. Trading in the shares will be suspended on 2 October. Trading conditions continue to be difficult and there will be a further interim loss. That will lead to impairment adjustments in the 2022-23 accounts. Debt facilities expire at the end of November 2023. Peter Gyllenhammar increased his stake from 9.88% to 10.2%.

Capital equipment manufacturer Mpac (MPAC) increased interim revenues by 4% to £52.8m and pre-tax recovered from £1.1m to £1.9m. Order intake soared in the period. Services generated one-third of revenues in the first half, but the mix will change as recent order wins are satisfied in the second quarter. The order book has risen 15% to £77.5m since the end of 2022 and includes higher margin healthcare machinery. This helps to underpin forecasts of a better second half. The battery cell assembly plant business remains a significant longer-term opportunity. Net cash is £2.2m. Shore forecasts a near doubling of underlying pre-tax profit to £6.9m in 2023.

Builders’ merchant Lords Group Trading (LORD) is outperforming its rivals. But trading is getting tougher because of higher interest rates and lower construction activity. Interim revenues improved 4% to £222.6m, helped by acquisitions, but pre-tax profit fell from £8.4m to £7.7m. The interim dividend is maintained at 0.67p/share. Cenkos has reduced its 2023 pre-tax profit forecast from £17.8m to £13.2m.

Infrastructure India (IIP) announced the conditional sale of the 99.99% stake in transportation company Distribution Logistics Infrastructure to Pristine Malwa Logistics Park, which is part of logistics group Pristine. The consideration will be $10m in cash and 33% of Pristine Malwa the purchaser. There are conditions that are required to be satisfied before the deal can go ahead and it will be subject to adjustment. The transaction could close before the end of the year. Infrastructure India is expected to exit the investment within three years. At the end of September 2022, net liabilities were £85.7m. It is difficult to assess how much of the Infrastructure India borrowings will go with the disposal.

STM Group (LON: STM) has reached agreement with PSF Capital GP II over a 67p a share cash bid for the pensions and financial services provider. The bidder is securing a new credit facility to fund the bid. Originally, it was stated the offer could be as high as 70p/share, but the share price shows that investors were not counting on it being that high. This is conditional on STM boss Alan Kentish acquiring the UK SIPP business and those related to the Master Trust.

Property bridging loans provider Vector Capital (VCAP) reported a decline in interim revenues and profit. The loan book has fallen from £53.2m to £48.8m over six months as management is cautious about new lending. The bad provision has been raised by £167,000 to £367,000, but it is still relatively low. Pre-tax profit fell 18% to £1.3m, partly due to the higher provision.

MAIN MARKET

Round Hill Music Royalty Fund (RHMP) is being acquired by Alchemy Copyrights for $1.15/share, which values the company at $468.8m. That was a premium of 67% to the previous market price. Shareholders will still receive the quarterly dividend of 1.125 cents/share and a special dividend of 0.5 cents/share.

AIM 50 Digest 8 September

• BY: Andrew Hore |
• POSTED: 11/09/2023 |

Shares in CVS Group (CVSG) slumped because of a CMA review of the veterinary market. It is assessing business practices for household pets because costs have risen faster than inflation. CVS says a shortage of vets is pushing up costs. The full year results will be published on 21 September.
=====
Ergomed (ERGO) is recommending a £700m takeover by Permira Advisers. The cash bid is 1350p/share. This is still below the high at the end of 2021. The pharmaceutical services provider says that the next phase of growth will require additional cash for expansion and acquisitions.
=====
Dotdigital (DOTD) is improving its personalisation capability through the acquisition of Fresh Relevance for £25m. This will add around £6m, mainly recurring, revenues and the two firms already have a relationship. The EBITDA margin is 10%, but the real benefits will show through in 2024-25 when earnings have been upgraded by around 5% to 4.6p. The consideration is partly shares issued at 88.7p each with cash of £18.9m. That does not put much of a dent in the cash pile, while adding earnings. Net cash should still be £38.9m at the end of June 2024.
=====
Canaccord Genuity has upgraded its Jet2 (JET2) 2022-23 pre-tax profit from £462.8m to £499.9m, with £487.9m expected next year. Summer trading is strong thanks to late bookings. Jet2 s also benefiting from higher interest income on its cash pile, including customer payments.
=====
Building materials supplier Sigmaroc (SRC) continued to trade strongly despite the weakening construction and housebuilding markets. Pre-tax profit improved 13% to £33m. Three disposals are expected to generate £11m, rather than the £9m anticipated. Acquisitions have been made to provide the promised £10m of annual EBITDA while spending £10m less than expected. Conditions remain tough, but the geographic spread of activities helps.
=====
Workwear and catering linen hirer Johnson Service Group (JSG) says that it expects its 2023 results will be slightly better than the forecasts previously upgraded in July. Interim revenues were 22% ahead at £215m and pre-tax profit jumped from £11.2m to £16.4m as margins continue to improve. Even so, there is some way to go to rebuild margins to past levels. JSG recently acquired Republic of Ireland-based healthcare and catering line hirer Celtic Linen. This increases the exposure to the healthcare linen market.
=====
Motor dealer Vertu Motors (VTU) says new vehicle supply is improving and costs are being controlled, so this year’s profit is expected to be in line with expectations. Used car prices have fallen 2% in August. Share buy backs will enhance earnings.
=====
Advanced Medical Solutions (AMS) has downgraded 2023 expectations. Revenues are expected to be £124m-£127m and underlying pre-tax profit of £25m-£27m. The wound care company says royalty revenues from Organogenesis are uncertain because of US government changes to reimbursement for diabetic foot ulcers. This could knock £2m off second half profit. AMS has also been hit by destocking of LiquiBand in the US as it tries to make new partnership agreements.
=====
Ashtead Technology (AT.) reported a 57% rise in interim revenues to £49.8m, while pre-tax profit is 88% higher at £14.3m. Acquisitions helped to boost the figures.
=====
Oil and gas company i3 Energy (I3E) announced better than expected interims. Production was around the level forecast, but lower costs meant that pre-tax profit improved from £9.9m to £14.5m. However, lower gas prices have led WH Ireland to reduce its fair value from 22.3p/share to 21.1p/share, although the broker believes that oil prices may rise over the next six months and that could reverse the fair value reduction.
=====
Audio visual products distributor Midwich Group (MIDW) increased interim revenues by 7% to £610.4m, while underlying pre-tax profit was 10% ahead at £21.8m. The interim dividend is 22% higher at 5.5p/share. Five acquisitions have been made in the US. UK and Spain since the end of June. They cost £18m. Trading is in line with expectations. 
=====
EMIS (EMIS) is paying an interim dividend of 21.3p/share ahead of the completion of the bid for the healthcare IT company. Interim revenues rose 2% to £88.8m and operating profit improved.
=====
Gamma Communications (GAMA) improved revenues by 9% to £256.2m, while pre-tax profit was 12% higher at £48.3m. Growth is expected to continue in the second half and the full year outcome should be at the top of the range of market expectations.
=====
Pan African Resources (PAF) says headline earnings are expected to be between 2.95 cents/share and 3.35 cents/share. This is lower than last year because of currency movements.
=====
MP Evans (MPE) has acquired new planted land in East Kalimantan for $60m, or $9,000/hectare. The value should increase as productivity improves and fruit is sent for milling at the company’s mill.
=====
DBAY Advisers has increased its stake in Alliance Pharma (APH) from 18.5% to 21.1%, which includes 10.5% held by AIM-quoted Logistics Development Group (LDG). 

Quoted Micro 4 September 2023

• BY: Andrew Hore |
• POSTED: 03/09/2023 |

AQUIS STOCK EXCHANGE

Valereum (VLRM) says the takeover of the Gibraltar Stock Exchange will go ahead in September. In the middle of September, a US fund is due to provide funding of £5m-£8m in two tranches. Trading in the shares has been suspended ahead of the publication of an admission document, which is likely to be in early October.

Fibre optic cables materials supplier Unigel Group (UNX) reported a dip in interim revenues from £18.8m to £18m, even so pre-tax profit jumped from £442,000 to £852,000 due to lower overheads. There was a £244,000 cash inflow from operating activities. The market declined by 3% during the period because of a slowdown in 5G investment.

Marula Mining (MARU) has acquired ore sorters to expand processing capacity at the Blesberg lithium and tantalum mine. Two ore sorters will cost £1.74m in total. The target production is up to 50 tonnes/day of lithium spodumene product from existing stockpiles. An agreement has been signed for an initial sale of 27.5 tonnes of high-grade material from Blesberg. The sale price is $3/000/tonne, based on a minimum grade of 6%. The company is negotiating to cancel a previous offtake agreement with Southern Jade Resources.

Cadence Minerals (KDNC) has warned that the Sonora lithium project licences, where it owns 30% of the entity that owns them, could be cancelled by the Mexican government because of minimum investment obligations between 2017 and 2021. Evidence of the spending may not have been submitted when required. This is subject to appeal. WH Ireland has already put a cautious value on the asset because of this uncertainty.

Psychedelic substances investment company Clarify Pharma (PSYC) had net assets of £1.1m at the end of May 2023. Cash had fallen to £183,000 at the end of August.

AQRU (AQRU) continues to reduce the number of employees and streamlined its investment pipeline. The main digital asset businesses have been injected into Langland Software Solutions in return for a 30% stake. Three directors are leaving the board, including Phil Blows who controls Langland. AQRU retains individual stakes, plus cash and crypto tokens.

KR1 (KR1) had net assets of 48.13p/share at the end of July 2023. There was income of £572,000 generated during the month.

Shareholders of Oscillate (MUSH) voted against voluntary liquidation. Net assets were £2.95m at the end of May 2023, including £1.17m in cash.

PanGenomic Health Inc (NARA) had net liabilities of $1.45m at the end of June 2023.

Clean Invest Africa (CIA) has received £200,000 from the convertible loan note issue. This will provide additional working capital. Pascal Portmann has become a non-exec director.

Black Sea Property (BSP) has raised €7.56m through a loan note issue.

Andrew Offit has taken a 4.8% stake in NFT Investments (NFT).

AIM

Pharma IT systems supplier Instem (INS) is recommending an 833p/share cash bid by Ichor Management, which is controlled by funds managed by Archimed SAS. The bid is still below the share price peak of 905p in September 2021. Instem is valued at £203m. The board believes that private ownership will provide greater access to capital to fund acquisitions and growth.

SailPoint Technologies UK is bidding 2.35p/share for Osirium Technologies (OSI), which may be nearly double the previous market price, which was an all-time low, but it is well below the share price peak of 201p during the 4 May 2016, less than one month after it joined AIM. The bid values the cyber security company at £3.11m. SailPoint Technologies believes that the business will fit well with the SailPoint Identity Security Platform. A unified platform will be developed for securing privileged and non-privileged identities for customers and there will be enhanced regional opportunities.

Frasers Group (FRAS) continues to build up its stake in online fashion retailer boohoo (BOO) from 9.1 to 10.4%. Frasers has also edged up its interest in ASOS (ASC) from 19.3% to 19.8%, although 9.2% is held through financial instruments.

Sustainable wood products supplier Accsys Technologies (AXS) made a strong start to the financial year, but it warns that demand from the construction market is declining. Sales volumes for the year to March 2024 will be worse than expected and profit will be much lower than anticipated. Operating costs are being reduced.

Revolution Beauty (REVB) has appointed Lauren Brinley as chief executive. The beauty and cosmetics products supplier also published its 2022-23 accounts. Lauren Brindley was until recently head of American retailer Walgreen’s beauty and personal care operations across its stores and online. Prior to that she worked at Boots and Tesco. Revolution Beauty has new distribution agreements with Walgreens and Boots. In the year to February 2023, revenues edged up 2% to £187.8m, while the loss reduced from £45.9m to £33.9m. That masks improved trading in the second half. First quarter sales were 60% higher, but there was destocking in the corresponding period last year. EBITDA was £3.5m in the period. Net debt increased to £21.5m.

Rosslyn Data Technologies (RDT) raised £2.7m from a placing and subscription at 0.5p/share and a retail offer to existing shareholders could raise up to £500,000 more. On top of the share issue, there is a proposed issue of 10% convertible loan notes to raise £600,000 from Hargrave Hale AIM VCT, Octopus AIM VCT and Octopus AIM VCT2. The conversion price is the lower of 0.5p or the issue price of another fundraise. There are also plans for a 50-for-one share consolidation. There will be a resolution at the general meeting on 18 September to gain shareholder approval.

Summary results for the phase II dose ranging study assessing Orenetide for hypoactive sexual desire disorder were disappointing and that has hit the Ovoca Bio (OVB) share price, which slumped 78.7% to an all-time low of 2.4p. The results of the study in Australia and New Zealand show that the treatment was not statistically significantly better than placebo. The company will have to decide how to move forward with the product and whether it should continue development. Ovoca Bio had €2.6m in the bank at the end of July.

Kinovo (KINO) says that it would not recommend a 56p/share bid from Rx3.

Linear Generator technology developer Libertine Holdings (LIB) says fees expected from Hyliion may not be recognised this year. This means that the loss would be higher than the £2.6m forecast. The first phase of development is complete and Hyliion has a six-month option period to negotiate IP rights. Work on the MAHLE powertrain was completed later than scheduled. There is £1.2m in the bank, which should last until May.

Application specific integrated circuits designer Sondrel Holdings (SND) has been hit by contract delays. Three major customers have delayed development for 6-12 months because of economic uncertainty and concerns about consumer confidence. Interim revenues will be 17% higher at £9.3m, but the full year forecast has been cut from £28.4m to £13m. Sondrel is likely to move into a net debt position by the end of 2023, but this should be temporary.

EnSilica (ENSI) has secured a $2.4m contract with an existing European customer for the development of an advanced networking ASIC. Most of this revenue will be recognised in the year to May 2024, which underpins forecasts. It has also won a €2.5m contract for its satellite broadband chip.

Pelatro (PTRO) will ask shareholders to vote to cancel the AIM quotation because of the cost and the inability to raise cash. The general meeting will be held on 21 September. Finance director Nic Hellyer is leaving the board. A matched bargain facility will be put in place.

Star Energy (STAR) is moving into geothermal project development in Croatia. This is part of the company’s move to refocus from gas to geothermal energy. A 51% interest in A14 Energy is being acquired for €1.3m in cash plus €300,000 back costs. A14 owns the Ernestinovo licence in the Pannonian Basin in Croatia. Bids have been placed for further licences. Up to €1.5m more is payable if the licences are granted.

MAIN MARKET

Networking and biomedical technology company BATM (BVC) grew interim revenues by 5% to $60.2m and gross margin improved. Pre-tax profit improved from $1m to $2.3m. Cash declined to $41.9m at the end of June 2023.

RegTech Open Project (RTOP) was the biggest riser in the Main Market last week. The share price rose 55.4% to 172.5p, having joined the market on 25 August at 100p. This values the business and operational resilience software company at £103.5m. The underlying business generated revenues of £1.1m in 2022, down from £1.31m in 2021, due to a fall in operational resilience fees. The operating loss increased from £930,000 to £2m. RegTech Italy, which is part of a group that owns 65% of RegTech Open Project, is providing a shareholder facility of up to £8m with an initial cash drawdown of £2m that will help to pay the expenses of the listing. The company estimates total directors’ remuneration of £505,000 over the next 12 months.

Quoted Micro 28 August 2023

• BY: Andrew Hore |
• POSTED: 28/08/2023 |

AQUIS STOCK EXCHANGE

Pharma C Investments (PCIL) has received a general meeting requisition from one of its shareholders. The directors are reviewing the request.

Technology marketing start-up Inteliqo (IQO) generated income of more than $400,000 and pre-tax profit of $250,000 from the distribution rights of the Langaroo app, which has still to be launched on Google Play and the Apple app store.

Macaulay Capital (MCAP) has realised one of the five investments it took on from Chelverton Asset Management. Qualification Check B shares were bought by a trade buyer, and this will generate fees that will be shared by Macaulay Capital and Chelverton Asset Management. The net amount receivable by Macaulay Capital is £212,000.

Guanajuato Silver Company (GSVR) generated record production of 941,338 silver equivalent ounces in the second quarter and all-in sustaining cost was $22.47/ounce. Realised prices improved on the previous quarter. There was a small dip in net loss of $8.5m. Drill results from the Topia mine in Durango, Mexico have been promising.

Capital for Colleagues (LON: CFCP) investee company Bright Ascension provides software for the space sector, and it has been selected to lead onboard and ground software development for the three-year OS2-VOLT mission. This OS2-VOLT mission is being led by another investee company, Craft Prospect.

Marula Mining (MARU) has moved to the Apex section of the market. The construction of the initial modular processing plant for the Kinusi copper mine has been completed and is ready for transportation and commissioning.

Rogue Baron (SHNJ) raised £50,000 at 0.75p/share.

Coinsilium Group Ltd (COIN) chief executive Eddy Travia bought 1.5 million shares at 1.25p each.

Andrew Offit has taken a 4.77% stake in AQRU (AQRU).

AIM

Education software and services provider Tribal (TRB) reported a 2% increase in interim revenues even though the NTU project has been cancelled. Annualised recurring revenues are 3% ahead at £51.9m. The NTU project is still the subject of dispute, but there will be no more non-legal costs. The second half is expected to be better and pre-tax profit is forecast to recover from £3.7m to £9.1m.

Loyalty technology provider Eagle Eye (EYE) has revealed that a previously announced three-year contract is with department stores operator Hudson Bay Company, which was formed in the seventeenth century and who’s backers included Prince Rupert. Hudson Bay Company will relaunch its digital loyalty programme using Eagle Eye technology.

Fulcrum Utility Services (FCRM) intends to seek shareholder approval to leave AIM. This announcement followed the release of full year figures showing an increased loss. The utility infrastructure business reported a £25.7m loss on a 18% decrease in revenues to £50.6m. Even excluding write-downs and restructuring charges there was a loss.

Compliance and maintenance services provider Kinovo (KINO) revealed a non-binding bid approach from Rx3 Holdings, which the bid target said was at 56p/share. Management says that the offer is at the lower end of board expectations. Rx3 has confirmed that the offer price will be at least 40p/share, because 29.9% shareholder Tipacs2 Ltd recently bought shares at that price from Western Selection (WESP).

Wellhead equipment supplier Plexus Holdings (POS) says a £5m rental contract for POS-GROP HG wellhead equipment and sealing technology announced in March has been increased in value to £8m. These revenues will be recognised in the year to June 2024, which should enable Plexus to move into profit. The 2021-22 revenues were £2.31m and they are expected to decline in 2022-23.

Bivictrix Therapeutics (BVX) has been granted a US patent for lead asset BVX001 and it expects to gain a Japanese patent in a few weeks. BVX001 is an antibody drug conjugate than targets leukaemia.

Cake Box (CBOX) reported like-for-like sales growth of 6.8% in the first 17 weeks of the financial year. That represents an acceleration of growth in recent weeks as marketing is stepped up. There are 212 outlets with scope for more. After paying the final dividend there is £6m in the bank.

Redx Pharma (REDX) says zelasudil (RXC007), an oral, selective Rho Associated Coiled-Coil Containing Protein Kinase 2 (ROCK2) inhibitor, has received Orphan Drug Designation from the FDA for the potential treatment of Idiopathic Pulmonary Fibrosis (IPF). The treatment is being used in a phase 2a clinical study for IPF and data is expected in the first quarter of next year. IPF is a disease of the lungs which progressively causes scarring and a reduction in lung function.

Neometals (NMT) says battery recycling joint venture Primobius has received an order for 10 tonne/day of lithium-ion battery recycling spoke with Mercedes. The facility will recover lithium, cobalt, nickel, manganese and other materials and feed them back into production of 50,000 batteries for new Mercedes vehicles. This is important because it will help the joint venture to gain credibility and win more business.

Cybersecurity firm Shearwater Group (SWG) has delayed publication of its full year results due to audit delays. They are set to be published on 5 September. On a brighter note, delayed contracts have been received in the first quarter of the new financial year. Market conditions are becoming more favourable.

Coro Energy (CORO) has sold its 18.76% stake in ion Ventures for £1.25m in cash, of which £250,000 is deferred until March 2024. The book value was $259,000.

MAIN MARKET

Graft Polymer (UK) (GPL) signed a manufacturing services agreement for production of haemostatic wound care products. The partner is in the Israel pharma market and the Graft Bio facility will provide manufacturing services for the partner’s patented haemostatic powder. This changes from a self-emulsifying powder to a gel when coming into contact with blood, thereby helping to clot the blood effectively.

Ferro-Alloy Resources (FAR) warns that problems with the delivery of concentrate material to its secondary processing facility will hit third quarter results. This follows record second quarter vanadium, molybdenum and nickel production.

Zamaz (ZAMZ) is changing its name to Dispensa, although the strategy remains the same. It will acquire growing, speciality food brands.

Ashington Innovation (ASHI) has signed heads of terms for the acquisition of Calon Cardio-Technology. Calon is developing a left ventricular asset device, an implantable heart pump for patients with severe heart failure.

Mode Group Holdings (MODE) is changing its name to R8 Capital.

Quoted Micro 14 August 2023

• BY: Andrew Hore |
• POSTED: 28/08/2023 |

AQUIS STOCK EXCHANGE

Ecommerce technology company Samarkand (SMK) increased full year revenues from £16.6m to £17.5m, while cutting the loss from £7.9m to £4.7m. Samarkand could move near to breakeven this year. Growth has been held back by Covid restrictions in China, although these have been eased. Own brands have been generating growth.

Marula Mining (MARU) shares were restored to trading on 7 August after it published 2022 full year results. A movement in deferred income meant that there was an operating cash inflow of £888,000, although there was an outflow after investing activities. Assay results at the Blesberg lithium and tantalum mine show high grade spodumene at a grade of 6.5% lithium oxide. There are plans to spend £1.1m on exploration. Assay results from the Bagamoyo graphite project in Tanzania have shown an average grade of 10% graphite. The mineralisation extends for two kilometres and is 200 metres wide.

Technology developer Inteliqo Ltd (IQO) lost $684,000 in the period to March 2023. There was $189,000 in the bank following an outflow of $622,000 from operating activities. This reflects the setting up of the company. Since April, the business has been operating profitably. Inteliqo has the rights to distribute Ipedia earbuds and rights to sell the Langaroo messaging App around the world. The rights last 20 years.

Newbury Racecourse (NYR) chief executive Julian Thick has resigned but he will stay on until March 2024. He has been chief executive for a decade.

Asia Wealth Group Holdings Ltd (AWLP) made a full year loss mainly down to currency losses from Japanese yen holdings. Management is seeking ways of expanding the business in South East Asia. The auditor says that it was unable to ascertain whether a $42,000 private investment was included in the balance sheet at its true value. NAV was $1.39m at the end of February 2023, including cash of $1.14m.

RentGuarantor Holdings (RGG) has entered into an agreement enabling refinancing provider The Lettings Hub to use its service. Zeus and Oberon have been appointed joint brokers.

Aquis Exchange (AQX) has acquired a minority stake in new venture OptimX Markets for $750,000. OptimX Markets is developing technology to help find additional matches for deal flow and this can be combined with the existing dealing technology developed by Aquis Exchange.

Pharma C Investments (PCIL) has been censured and fined £30,000, with £15,000 suspended. The medicinal cannabis company did not advise investors that the £200,000 it said that it was raising was not received until more than four months after it was due. The company failed to act with integrity.

Clean Invest Africa (CIA) is working with ISS International in Italy. The plan is to recover coal dust and turn it into pellets. The CoalTech subsidiary will generate Euro1m in revenues during the project, which lasts 24 months.

Coinsilium Group Ltd (COIN) has issued 3.25 million shares at 3p each to complete the acquisition of the Tokenomi Wb3 advisory business.

Non-executive director CP Freeman bought 1,000 shares in Hydro Hotel Eastbourne (HYDP) at 1024.5p each, taking his stake to 1.5%.

National Milk Records has withdrawn from the market following its takeover.

AIM

Electrical appliances retailer Marks Electrical (MRK) continues to grow rapidly. Revenues were 31% ahead in the first four months of the financial year. The overall market has declined. The highest growth was in televisions and washer/dryers. Installation orders trebled. Online market share has grown to 5.7%, helped by the installation offer.

Digital marketing company Silver Bullet Data Services (SBDS) has disappointed since it joined AIM, but the latest interim trading statement shows a 76% increase in revenues to £4.1m. That growth and reduced costs have helped to reduce the interim loss. The company is benefiting from the move to customer privacy-based marketing services. The share price recovered 33.9% to 37.5p, compared with a June 2021 placing price of 257p.

Health and safety services provider PHSC (PHSC) returned to profit in the year to March 2023, although the previous year’s loss was due to write-downs of goodwill. Even excluding those write-downs there was an improvement from £216,000 to £305,000. Revenues fell from £3.57m to £3.44m and gross margins improved. NAV is just over 30p/share, although nearly two-thirds of that is goodwill.

It appears Silvercorp Metals Inc is unlikely to go ahead with its bid for Celsius Resources (CLA) due to shareholders being unhappy with the proposed 0.16p/share bid. The recent award of the environmental licence for the MCB copper gold project has raised the value of the project. Silvercorp Metals Inc recently sold 60 million shares at a gain on the original subscription price, reducing its stake to 12.1%. New approaches will be considered.

Hargreaves Services (HSP) continues to make progress with its underlying business although it is slightly masked by the contribution from German associate HRMS, where the profit contribution is falling. In the year to May 2023, revenues increased from £177.9m to £211.5m, while underlying pre-tax profit dipped from £30.4m to £27.3m. That is due to the reduction in HMRS contribution from £25m to £15.5m. The mineral trader’s contribution will continue to fall, but it will not fall back to the previous levels because of greater trading activity than in the past due to the addition of the carbon pulverisation and metals recycling operations.

Allergy Therapeutics (AGY) expects a 16% reduction in revenues for the year to June 2023. This was due to the pause in production during the year. The underlying loss before R&D and exceptionals is £13.3m, while it is £33.4m including R&D costs. There is £14.8m in cash after drawing down £26m of the loan facility. Sales are expected to be slightly lower this year as capacity is used for product for clinical trials.

Sylvania Platinum (SLP) has entered into a joint venture agreement with a subsidiary of ChromeTech Mining Company. The Thaba joint venture will process platinum group metals and chrome ore from existing tailings from the Limberg chrome mine. This should increase Sylvania Platinum’s platinum group metals production by 9% - it does not currently produce chrome. The AIM company will fund the capital costs of $32m and provide a $5m working capital facility. Cash payback should be within three years of commissioning – based on long-term price estimates. First production will be in the second half of 2025.

MAIN MARKET

Educational supplies company RM (RM.) says that its Consortium school supplies operations are likely to hold back profitability and the full year outcome will be below expectations. Sales are not recovering as quickly as hoped due to restricted school budgets. Consortium is part of the RM Resources division, which swung from a profit of £1.24m to a loss of £4.5m. In the six months to June 2023, revenues fell from £97.9m to £87.6m, while and underlying pre-tax profit of £3.72m was turned into a loss of £6.74m. Net debt is £52m. There is a £70m bank facility that lasts until July 2025.

Minerals sands supplier PYX Resources Ltd (PYX) will benefit from the announcement by the Indonesian Ministry of Trade that it is easing export restrictions on ilmenite and rutile with minimum grades of titanium dioxide. Management expects to be awarded an export licence for titanium dioxide, imminently. In the first quarter, 2,500t was produced (1,900t zircon and 600t titanium dioxide), although less was sold in the period. The titanium dioxide concentrate inventory was increased to 7,400t so that PYX is ready to export when it gets its licence.

Online travel agency Hostelworld (HSW) increased net interim revenues by 64% to €45.8m with net bookings up a similar percentage to 3.4 million. There was a reduction in direct marketing costs to 51% of revenues. There was a first half loss as management continues to invest in growth. Net debt is €16.2m and the interest charges has been reduced.

Foams manufacturer Zotefoams (ZTF) did well in the first half of 2023, but destocking may hit the second half. Interim profit was higher, but the second half will be tougher and that will hit profit in the period. Full year pre-tax profit is expected to edge up to £12.6m before rising rapidly over the next two years. Next year £14.8m is forecast rising to £19.4m in 2025.

AIM 50 Digest 25 August 2023

• BY: Andrew Hore |
• POSTED: 26/08/2023 |

Online marketing and domain name services provider CentralNic (CNIC) is continuing its record of organic growth. In the six months to June 2023, revenues improved from $334.6m to $396.4m. Organic growth over the past 12 months is 31%. The equivalent figure at the end of 2022 was 60%, but this is still strong growth. Profit before amortisation rose from $29.8m to $31.8m. Net debt rose from $56.6m to $68.2m over the period after paying $15.2m in deferred consideration, share buy backs and the $3.6m cost of the dividend. Further buy backs could push up the net debt figure by the end of 2023, but there could be net cash in 2025.
=====
IDOX (IDOX) is acquiring geospatial data provider Emapsite for up to £15.75m, including £1m deferred. IDOX will dip into its £35m bank facility to fund the deal. Farnborough-based Emapsite supplies geospatial data to UK energy, infrastructure telecoms and construction sectors. This offers cross-selling opportunities. Geospatial is one-fifth of enlarged group revenues.
=====
The full year figures of Victoria (VCP) have been delayed, but the floorcoverings manufacturer has published a comprehensive set of unaudited figures. EBITDA was at the bottom end of expectations at £196m, up from £162.8m. The inclusion of rug maker Balta reduced margins, but restructuring will improve these. The period was hit by higher polypropylene and gas prices, but these have subsequently eased. There was capital spending on restructuring the business that should pay off this year, although it is not likely to be until the second half. Although net debt is £658.3m, the major capital investment has been made and around £100m of cash could be generated this year.
=====
Self-storage sites operator Lok’nStore (LOK) has grown same store revenues by 12%. The sale of sites last year means that overall revenues are 5% ahead. Loan-to-value is estimated at 9%, providing spare funds to invest in new sites. Three new sites should open this year.
=====
Watkin Jones (WJG) has sold three non-core private rental developments to L1 Capital. The initial cash inflow is £9m with £2m deferred into the first half of 2023-24. There is a loss on disposal.
=====
Aquaculture company Benchmark (BMK) says that it has been hit by a decline in demand for shrimps and third quarter profit was lower. There was also an increase in third party costs for the salmon business, but that should only hamper the third quarter.
=====
ITM Power (ITM) had £283m of cash left at the end of April 2023, which was more than expected. Last year, revenues were £5.2m, compared with guidance of £2m, and this year could rise to between £10m and £18m. Net cash should be more than £170m at the end of April 2024. 
=====
DBAY Advisers has increased its stake in Alliance Pharma (APH) from 16.2% to 17.2%, which includes 10.5% held by AIM-quoted Logistics Development Group (LDG). 

Quoted Micro 21 August 2023

• BY: Andrew Hore |
• POSTED: 20/08/2023 |

AQUIS STOCK EXCHANGE

ChallengerX (CXS) has acquired a 13-month renewable licence over the rights of FlashBet Wheel Apps design and technology in the UK and Europe. This cost 80 million shares issued at 0.55p each. The licence can be renewed for a royalty fee based on 10% of ChallengerX’s yearly revenues. ChallengerX also has the right to buy the IP in return for 900 million shares. The app is a parlay/accumulator betting product.

TruSpine Technologies (TSP) intends to appeal a disciplinary notice and fine of £215,000, although £165,000 of this is only payable if the company fails to comply with market rules at any point in the next three years. The fine relates to the failure to initially report that a loan agreement included a charge of assets and a failure of corporate governance. The company has raised £50,000 at 2.5p/share.

SuperSeed Capital Ltd (WWW) increased NAV by 21.7% to 118p/share at the end of the first half. The share price is 87.5p. Portfolio companies are making progress. Revenues analytics and forecast platform provider Kluster Enterprises raised additional cash in a Series A financing.

Oscillate (MUSH) is planning to ask shareholders to approve a members voluntary liquidation and investee company LaunchMyCareer Holdings, formerly Dev Clever, is presenting a winding-up petition to the courts. Oscillate bought 2.5 million warrants at an exercise price of 1p/share. Asimilar Group (ASLR) owned 72.3 million shares in LaunchMyCareer and they were valued at 2p each.

Ananda Developments (ANA) says NHS Scotland will fund a MRX1 endometriosis trial. It will provide £300,000 for the cannabis-based oil treatment trial.

Crypto app operator Tap Global Group (TAP) increased full year revenues from £900,000 to £2.52m, helped by the inclusion of Tap Global Ltd since January 2023. There are 44 cryptocurrencies on the platform.

Marula Mining (MARU) reported results from the phase 1 exploration programme at the Kinusi copper mine. This identifies a copper mineralised corridor for over one km in length and more than 300 metres in width with grades of up to 30%.

Aquis-quoted NFT Investment (NFT) had net assets of 3.37p/share at the end of June 2023. There was a £10m increase in the value of digital assets over the six-month period. There was £2.78m in cash. Crypto prices are starting to rise and that should benefit net assets. The share price is 1.65p so the discount to NAV is more than 50%.

Coinsilium Group Ltd (COIN) has agreed to wind up the Singapore-based joint venture with IOV Labs after the companies could not reach an agreement.

RentGuarantor (RGG) has raised £200,000 from an issue of 6% unsecured convertible loan notes.

Schroders trimmed its stake in Invinity Energy Systems (LON: IES) from 22.3% to 21.97%.

AIM

Tribe Technology has raised £4.5m at 10p/share ahead of its AIM admission and small investors are being given the chance to apply for shares via a retail offer. They can subscribe for up to £400,000 of additional shares in the Northern Ireland-based manufacturer of mining equipment. Nominated adviser and broker Allenby is acting as coordinator of the offer. The minimum subscription is £50 and the offer closes at 12pm on 25 August – although it could close early if oversubscribed. Tribe Technology was founded in Perth, Western Australia in 2019 by chief executive Charlie King prior to setting up a factory in Northern Ireland. It is developing autonomous drilling rigs. These rigs will help to improve safety and increase productivity.

Tan Delta Systems (TAND) joined AIM on 18 August and the shares went to a premium to the placing and offer price of 26p. Tan Delta Systems has developed technology for real-time oil condition analysis. Oil condition monitoring is part of predictive maintenance and involves analysis of lubricant and fuels for contamination and chemical content. This indicates how performance and reliability can be affected. The information can be used to reduce breakdowns and oil consumption, thereby saving money.

Online marketing and domain name services provider CentralNic (CNIC) is continuing its record of organic growth. In the six months to June 2023, revenues improved from $334.6m to $396.4m. Organic growth over the past 12 months is 31%. Profit before amortisation rose from $29.8m to $31.8m. Net debt rose from $56.6m to $68.2m over the period after paying $15.2m in deferred consideration, share buy backs and the $3.6m cost of the dividend.

Glantus (GLAN) is recommending a 33.42p/share bid from Basware Oy, which values the software company at £17.8m. This compares with the May 2021 placing price of 102p/share, which indicates the extremely poor performance of Glantus since it floated. Initial investors will get less than one-third of their money back.

Harvest Minerals (HMI) has been hit by weaker fertiliser demand, which has continued in July. So far this year, 36,000t has been supplied. On top of this there are advanced sales of 33,000t that were not recognised in 2022. The second half should be the busiest for the Brazil-based company, but fertiliser orders are still being delayed because of low crop prices. The 2023 invoiced sales target has been cut from 120,000t to 70,000t.

Tremor International (TRMR) increased second quarter revenues by 13% to $80.2m in a tough AdTech market and $65m of annualised cost savings have been achieved. However, the second quarter revenues were 10% lower than forecast. The operational gearing of the business means that finnCap has slashed its 2023 earnings forecast from 45.4 cents/share to 18.9 cents/share.

Serinus Energy (SENX) reports that lower oil and gas prices mean that interim revenues slumped from $29.3m to $8.9m. There was a $400,000 cash inflow. Net cash was $2.5m at the end of June 2023. A full year loss is forecast. Chief executive Jeffrey Auld bought 250,000 shares at 1.95p each and 250,000 shares at an average price of 2.1p, while James Causgrove acquired 250,000 shares at an average price of 2.2p.

MAIN MARKET

Golden Rock Global (LON: GCG) has agreed to acquire 2Mee for an estimated £6m to £8m in shares. The existing shares in Golden Rock Global will be worth the higher of £1m or 15% of the group’s enlarged market capitalisation. 2Mee has developed a platform that delivers influencers as on-screen web and app messages.

Ashington Innovation (LON: ASHI) has entered into non-binding terms for the acquisition of Cell Therapy for £135m in shares. There will also be up to £3m in cash raised at the time of the deal. Cell Therapy has a portfolio of patented cellular medicines, and the main potential drug has completed an early-stage human trial in heart failure.

AIM 50 Digest 12 August 2023

• BY: Andrew Hore |
• POSTED: 13/08/2023 |

The bid for EMIS (EMIS) has been provisionally cleared by the UK competition authorities and the share price has recovered to near the bid value of 1925p. The data collected by EMIS is used by the bidder Optum and EMIS has a large proportion of the GP IT market, but the merger is not expected to harm competition or adversely affect patients. 
=====
Floorcoverings distributor James Halstead (JHD) is growing sales in its major territories, although central European sales declined. Higher margin commercial flooring is a bigger percentage of sales. WH Ireland has increased its margin expectation and the pre-tax profit forecast to £52m, which is similar to last year.
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Gamma Communications (GAMA) is trading in line with expectations with the UK business growing well and a more settled performance from the European operations. Net cash has risen to £121.5m. The divisional spit has been changed to enterprise and business. The interims will be the first time that the figures will be reported in this way.
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Keyword Studios (KWS) says interim revenues were €383m with organic growth of 10%. Chief executive Betrand Bodson bought 3,125 shares at 1600p each.
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Pan African Minerals (PAF) produced 175,209 ounces of gold in the year to June 2023 and it could be slightly higher this year. Net debt has fallen to $18.9m.
=====
Floorcoverings supplier Victoria (VCP) says first quarter trading is in line with expectations and margins are improving. The integration of recent acquisitions is progressing. The results for the year to 1 April 2023 will be published on 15 August.
=====
Volex (VLX) has gained regulatory approval from the Turkish authorities for the acquisition of Murat Ticaret. It has also become a licensed partner of Tesla for the North American charging standard. Volex is global manufacturer of the coupler.
=====
Big Technologies (BIG) says that legal proceedings have commenced against the company concerning a small number of former shareholders of subsidiary Buddi Ltd. This relates to the acquisition of the subsidiary. Management is confident that the claim will fail. 
=====
Online marketing and domains company CentralNic (CNIC) has secured deals with Booking.com and Klarna among others.

Quoted Micro 7 August 2023

• BY: Andrew Hore |
• POSTED: 06/08/2023 |

AQUIS STOCK EXCHANGE

Aquaculture and geotracking technology developer OTAQ (OTAQ) reported interim revenues one-third lower at £1.8m, but they were higher than the second half of last year. There was an interim loss, and it will not get near breakeven until it generates more than £5m in annual revenues. Net debt is £510,000. Two large order will be delivered in the second half and revenues could hit £4m this year.

Equipmake Holdings (EQIP) has been awarded a £1.475m contract to repower eight double decker buses to electric for the Newport area in South Wales.

Brewer Adnams (ADB) chief executive Andy Wood intends to step down at the end of 2024. Michael Heald increased his stake from 20.4% to 21.4%, while Sidney Sussex College cut its stake from 3.17% to 2.12%.

Wishbone Gold (WSBN) has raised £1.42m at 2.4p/share. That compares with the initial target of £1m. The cash will be used to fund exploration at Red Setter and Cottesloe in Australia.

Vulcan Industries (VULC) lost £210,000 in the quarter to June 2023, while net liabilities were £9,000. Net debt is £3.1m. The company has moved into the battery storage sector.

KR1 (KR1) had a net asset value of 51.09p/share at the end of June 2023. The share price fell 9.76% to 55.5p.

Cadence Minerals (KDNC) investee company Hastings Technology Metals has executed an EPC contract with GR Engineering Services for the Yangibana beneficiation plant and infrastructure. The contract is worth $210m.

RentGuarantor (RGG) increased interim revenues by 79% to £305,000, but the loss increased from £353,000 to £408,000. Net liabilities increased from £347,000 to £798,000.

ProBiotix Health (PBX) has signed an exclusive distribution agreement with Trans Chem covering the probiotics markets in Australia and New Zealand.

SulNOx Group (SNOX) generated revenues of £82,000 in the three months to June 2023, which is similar to the previous quarter. There was cash of £839,000. Costs have been reduced.

Semper Fortis Esports (SEMP) had £528,000 in cash at the end of January 2023. That was before the £100,000 raised at 1p/share and subsequent £250,000 investment in convertible loan notes in GL Membership, which offers daily prize draws. The plan is to acquire the business and due diligence is ongoing.

MaxRets Ventures (MAX) still has two legacy cannabis sector investments, but the new focus is life sciences, fintech, environmental and retail. There was cash of £204,000 at the end of April 2023.

Apollon Formularies (APOL) is not proceeding with the proposed deal with Global Hemp Group. Nick Ingrassia has resigned from the board.

Oscillate (MUSH) is seeking approval for the members voluntary liquidation of the company. Cash and assets will be distributed to shareholders.

AIM

Francisco Partners II is making a recommended cash offer for e-waste and data erasure company Blancco Technology Group (BLTG). The bid is 223p/share. The share price has not been as high as the bid for 18 months. Blancco management believe the help of a backer with cash to invest and experience of growing technology companies will help to expand the business.

Battery technology developer Ilika (IKA) has agreed a contract with contract manufacturer Cirtec Medical. The licence to manufacture agreement for Stereax batteries lasts for ten years and is exclusive in the medical devices sector. Initially there will be profit sharing before moving to royalties based on battery volumes. Ilika is transferring machinery to Cirtec Medical to operate on loan. Ilika retains the manufacturing of the cathode.

Shareholders in Celsius Resources Ltd (CLA) have persuaded the board to have further discussions with Silvercorp Metals over some commercial aspects of the proposed bid.

Food allergy and health products supplier Omega Diagnostics (ODX) reported a reduction in full year revenues from £8.5m to £7.5m and a higher loss. Non-core operations have been sold and production problems resolved. Capital investment in new production machinery is being considered. A smaller loss is expected this year but there should still be net cash of £3.2m at the end of March 2023.

Video games producer Devolver Digital (DEVO) does not expect to make a profit this year because of delays in games releases and weaker than expected back catalogue revenues. Revenue forecasts have been cut by more than one-fifth to $90.4m. Four months ago, the forecast revenues were $127.7m, so this is the second downgrade in recent months. In contrast, Team17 (TM17) says that trading is in line with expectations, which contrasts with many of its rivals. Interim figures will be reported on 19 September.

Although revenues fell at Filtronic (FTC) it is winning new orders and diversifying its customer base. There was a greater proportion of lower margin 5G equipment revenues with component shortages hitting some areas of the business. There were also initial revenues from space. Full year revenues dipped from £17.1m to £16.3m, while underlying pre-tax fell from £1.5m to around £100,000. Contracts won will increase revenues this year and pre-tax profit is expected to recover to £800,000. The share price has risen strongly in recent weeks on the back of contract news, so it is not a surprise that there has been some profit-taking.

Aptamer Group (APTA) is raising £3.6m at the heavily discounted share price of 1p/share to provide working capital to cover losses. The annual costs will be reduced from £6.4m to £3.5m. Cash breakeven is anticipated in the year to June 2025. Four directors have resigned, and four new directors appointed, including the return to the board of former chief executive Dr Arron Tolley. Dr David Bunka will switch to chief scientific officer on lower pay. A new chief executive will be appointed. The formal sale process has been ended.

Flowtech Fluidpower (FLO) had a mixed first half with the revenues of the higher margin Flowtech distribution business falling, while growth elsewhere led to an overall increase of 2.6% to £59m. The full year results will not be as good as expected because demand is weakening. Net debt is £15.6m and this will reduce further in the second half. The new chief executive will report on the measures being taken to improve the performance of Flowtech with the interim results announcement on 30 August.

CyanConnode (CYAN) has won a contract for 300,000 mesh communication modules for smart meters in India. Deliveries should commence by December. This is part of the strategic framework agreement with IntelliSmart Infrastructure, taking the total orders generated from this deal to 900,000. This could help CyanConnode move into profit in the year to March 2024.

Extended reality company EngageXR (EXR) grew interim revenues by 18%. Net cash is €9.4m and that should be enough to enable the company to achieve cash generation in 2025.

MAIN MARKET

Mears (MER) generated interim revenues of £525.6m, up 8%, and it is on course for full year revenues of £1bn and pre-tax profit of £40m. The company has secured the main contracts it was bidding for. There has been growth in non-maintenance revenues, but management does not expect them to be maintained over the medium-term.

Quoted Micro 31 July 2023

• BY: Andrew Hore |
• POSTED: 30/07/2023 |

AQUIS STOCK EXCHANGE

Oberon Investments (OBE) reported a decline from £6.7m to £5m because of lower share dealing and capital markets income. The loss increased from £581,000 to £3.9m, which was predominantly down to one-off reorganisation and transaction costs. Management is confident that acquisitions and new teams will enable revenues to grow to more than £8m this year.

VSA Capital (VSA) says it had a better than expected first quarter to June 2023, but it still expects an interim loss. VSA Capital owns 0.85% of Silverwood Brands (SLWD), which is being sued by cosmetics company Lush concerning the acquisition of shares by Silverwood Brands and whether the transfer of ownership is valid.

TruSpine Technologies (TSP) has made th4e FDA 510k submission for the Cervi-Lok spinal stabilisation device. The FDA will take up to 90 days to make a decision. If clearance is received, then marketing can commence. The medical devices company has limited working capital.

Gunsynd (GUN) is providing funding of £1m in Metals One in return for a 25% stake in Finnaust Mining Northern. This investment is dependent on Metals One joining AIM and the simultaneous acquisition of Finnaust and will be provided in four tranches over 18 months. Gunsynd has sold 440,000 shares in Charger Metals, raising £100,000. It retains 2.54 million shares. Gunsynd will also receive 1.5 million warrants in Metals One.

Healthcare IT provider DXS International (DXSP) increased full year revenues by 3% to £3.4m. There was a pre-tax loss, but that was more than covered by R&D tax credits. There was £372,000 in the bank at the end of April 2023 and £500,000, before expenses, has been raised since then. Full year revenues expectations have been reduced to £3.8m and another loss is forecast.

Wheelsure Holdngs (WHLP) has finally reported it figures for the year to August 2022. Revenues improved from £144,000 to £197,000, while the loss reduced from £224,000 to £202,000. Trading in the hares remains suspended until the latest interims are published. Wheelsure needs to raise additional working capital. The Tracksure digital fastener and Tracksure dual thread technology products have been developed.

Marula Mining (MARU) has appointed Angeline Greenwood and Richard Lloyd ahead of the proposed move to AIM. The latter will be an executive director. Quinton van der Burgh will be joining as chairman. Hannah Wang’Ombe and Munyaradzi Murape will be appointed as directors after regulatory clearance. Assay results from the Kinusi copper mine have been delayed until early August.

Invinity Energy Systems (IES) is selling a 0.2MWh Invinity VS3 flow battery system to VSUN Energy, a subsidiary of Australian Vanadium Ltd. The system will be used by power provider Horizon Power in Western Australia. There will be a trial to assess how the system works within the regional energy system.

Ananda Developments (ANA) has launched its first two cannabinoid medicines to the unlicensed market. Three private pain and medical cannabis clinics will offer the products. MRX1 will be used in two double blind randomised control trials run by the University of Edinburgh.

Apollon Formularies (APOL) has signed an exclusive licence agreement with South Africa-based medical cannabis company PureCann, which will produce and distribute the Apollon product range. There is a one-off licence fee of £100,000 and an ongoing royalty of 6% of profit on sales during the licence term. The roll out should be in the fourth quarter. There could be sub-licensing revenues.

KR1 (KR1) revealed an investment of $300,000 in Side Protocol as part of a pre-seed funding round. According to KR1, “Side Protocol is a distributed mesh liquidity system that utilises innovative inter-blockchain asset exchange application protocols. Unlike liquidity hubs, Side Protocol aims to decentralise liquidity between diverse blockchain networks in a bridgeless manner while maintaining interconnectivity”.

Decentralised finance technology investor AQRU (AQRU) generated interim revenues of £106,000 and lost £1.26m. Net cash was £7.4m at the end of April 2023, including £5.8m of customer deposits. The business has been streamlined and customers have to deposit at least $250,000. NAV is £5.43m. Digital asset prices are recovering. There are investments worth £3.59m, including a stake in fully listed Streaks Gaming worth £2.21m.

Eight Capital Partners (ECP) intends to give holders of the Euro 10m of outstanding 4.8% loan notes into shares at the weighted volume average price in the ten trading days prior to the implementation day. This could represent 10.4% of the nelarg4ed share capital. A general meeting will be held on 10 August.

Black Sea Property (BSP) had a NAV of 1.59 cents/share, while net debt was Euro19.7m. This is before the agreement to acquire 98.3% of Grand Hotel Varna.

ChallengerX (CXS) continues to lose money and had £48,000 in cash at the end of June 2023. Additional funds will be required to develop its marketing platform. NAV is £170,000.

ProBiotix Health (PBX) is appointing Niels Peter Bak as technical project manager. He has nearly three decades experience in the probiotics sector.

AIM

Safestyle UK (SFE) says interim trading is in line with forecasts, but the loss is much higher. Demand has been hit by increasing interest rates and that means that the second half will be poor. The windows supplier has been hit by a lower number of installations and a decline in the average number of frames for each installation. Costs savings have helped to offset the decline, but Zeus has downgraded its 2023 forecast from a pre-tax profit of £2m to a loss of £5.5m.

Wandisco (WAND) shares slumped 93.1% to 90p after the data software company returned from suspension. Wandisco recently raised £23.8m at 50p/share. The share suspension came about because of fraudulent irregularities in its accounts. There were $115.5m of false orders in 2022 and $14.9m of this was recognised as revenues. The additional cash raised will help to boost sales and marketing. The interim chief executive is in place and two non-execs have been appointed.

Battery technology developer AMTE Power (AMTE) announced it has secured a £1m loan facility from Arena Investors, which has relinquished conversion rights on the £3.75m convertible bond in return for warrants over 2% of the enlarged share capital. This latest loan will provide time to complete a £2.5m subscription by an unnamed investor at an indicative price of 1.7p/share, subject to due diligence. The new investor would own 80% of AMTE Power and there will be enough cash until September.

David Craven and Jean-Paul Rohan are joining the board of Itsarm (ITS) and the winding-up petition has been withdrawn. James Sharp and Richard Monaghan are stepping down without compensation and are not being paid fees for July. A new proposal reduces liabilities to around £140,000 and current cash is £223,000. The company is a shell and trading in the shares will be suspended if it does not find a takeover candidate by 27 September.

WH Ireland (WHI) has raised £5m at 3p/share because of a lack of regulatory capital. The broker is loss making and it does not believe that trading is going to improve this year. Cash outflows meant that WH Ireland did not have the required regulatory capital and the FCA may have required a solvent wind down of the business if cash were not raised. This is why the placing discount to the market price was high. There are plans to reduce annual overheads by up to £4m.

SRT Marine Systems (SRT) reported lower than expected 2022-23 loss of £200,000 and it is set to return to profit this year. Large contracts for systems and steady growth of tranceiver shares mean that revenues should jump from £30.5m to £70.9m and a pre-tax profit of £7.4m is forecast with further growth to come next year.

Franchise Brands (FRAN) combined organic growth and a ten-week contribution from Pirtek, which was acquired during the first half, to grow interim revenues 57% to £69.8m. In the six months to June 2023, underlying pre-tax profit rose 45% to £8.6m, although a higher tax charge and the additional shares in issue to fund the Pirtek acquisition meant that earnings were 4% ahead at 4.24p/share. The interim dividend is 11% ahead at 1p/share. Net debt was £79.1m at the end of June 2023. The consumer franchise business is no longer being marketed for sale.

Piling contractor Van Elle (VANL) reported full year figures in line with expectations with revenues increasing from £124.9m to £148.7m, while pre-tax profit jumped from £3.6m to £5.4m. Margins improved in general piling and ground engineering services. The total dividend is 1.2p /share. However, as previously flagged this year’s profit could be slightly lower and the tax charge higher. Some markets remain strong and there is a new Canadian rail business, but residential is weak.

Software training company Northcoders Group (CODE) has reassured investors about trading in the first half. Revenues grew by more than 50%. A further £4.5m of DfE funding has been secured, which helps to boost the order book. Northcoders is on course to achieve 2023 revenues of £9.5m and doubled pre-tax profit of £1.2m. The revenues are 70% covered by the order book.

BlueRock Diamonds (BRD) is being wound up administrators and any cash in the business will be distributed for preferential creditors. A party connected to the company is set to buy the assets.

RBG Holdings (RBGP) is writing off the value of £13.3m of its remaining litigation cases, including an unsuccessful case valued at £9.3m. Any return from the cases will be treated as revenues. The core business is taking longer to complete transactions. This has led to a reduction in the underlying 2023 pre-tax profit forecast to £5.9m and RBG has decided to reduce debt rather than paying dividends.

Sports consultancy and data services 4Global (4GBL) more than doubled its underlying pre-tax profit from £573,000 to £1.23m. There was strong trading at the end of the year and that meant that there was a sharp increase in work done that has not been invoiced. That led to a cash outflow in the period. Strategic partnerships with gym software company Jonas Fitness Inc and digital health provider Technogym will help to diversify revenues. First quarter trading has been strong.

MAIN MARKET

Data integrity and banking integration software provider Gresham Technologies (GHT) generated organic growth of 5% in the first half thanks to Clareti software wins. Clareti annualised recurring revenues are 10% higher at £28.6m and the rate of growth could accelerate in the second half. This will more than offset the loss of legacy product revenues.

Polymer and biopolymer solutions provider Graft Polymer (GPL) has secured a distribution agreement with US veterinary products supplier Inter-Technologies Inc, relating to the GraftBio self-nano emulsifying drug delivery system products. This is the first move into the US.

Vanquis Banking (VANQ) reported an underlying loss of £5.5m in the first half, compared with a profit of £54.3m, according to Shore Capital. The net interest margin fell from 21% to 18%, while the impairment charge increased from £38.5m to £85.6m. The interim dividend has been maintained at 5p/share.

AIM 50 Digest 28 July 2023

• BY: Andrew Hore |
• POSTED: 30/07/2023 |

CVS Group (CVSG) is acquiring six vets practices in Australia and the total cost will be £16.8m. These will provide the base for entering the Australian market with more acquisitions in the coming months. Three vets practices have been acquired in the UK for £20m. CVS increased like-for-like revenues by 7.3% last year. The results will be announced on 21 September.
=====
Dotdigital (DOTD) increased full year revenues by 10% to £69.1m, which was better than expected. This shows the benefit of recent investment and the appointment of new management in the US. There was an increased level of transactional income, which may not be repeated, but 94% of revenues were recurring or repeating. Pre-tax profit will be flat in 2022-23and then grow in 2023-24.
=====
Soft drinks maker Nichols (NICL) increased interim revenues by nearly 7%. The international business raised revenues by one-quarter. The Out of Home business is recovering. Net cash is £56.1m. Singer has upgraded its 2023 pre-tax profit forecast by 3% to £26m.
=====
A first half trading statement from CentralNic (CNIC) says gross revenues were 31% ahead. Margins are declining because more of the revenues are coming from the lower margin online marketing operations. Share buybacks have increased net debt, but it would have fallen without these outgoings and contingent consideration. Further share buybacks are likely to further increase net debt to $76m by the end of 2023. This will enhance earnings per share.
=====
The timing of transactions remains a concern for Watkin Jones (WJG) and full year profit will be lower than expected even before impairment charges. Institutional investment in student accommodation and build-to-rent properties has slowed. Transactions that were expected to be completed by September may fall into next year. Non-core assets may be sold and that is why there is a £10m impairment charge. Watkin Jones was forecast to make a pre-tax profit of £25.1m this year, but this has been downgraded to breakeven. There could also be a £35m provision for remedial work on past properties. Chief executive Richard Simpson has stepped down.
=====
Smart Metering Systems (SMS) is benefiting from automatic indexation of most of it income and it is trading in line with expectations. Cenkos has estimated a long-term discounted cash flow valuation of 1497p/share.
=====
Peel Hunt is upgrading its forecast for Niox Group (NIOX) a few weeks after the previous upgrade. Costs have been reduced faster than expected according to the first half trading statement. The pharma company is also generating more revenues from the higher margin clinical division.
=====
IQE (IQE) is trading in line with expectations with interim revenues of more than £52m and management believes the worst is behind the semiconductor wafer business. The sector is showing signs of improvement, but a full year loss of around £20m is forecast. 
=====
Learning Technologies Group (LTG) has been hit by disruption due to integrating operations and there has been weaker demand for transactional and project-based work. SaaS-based and long-term contracts are 71% of revenues. Interim operating profit should be £43m. Operating profit guidance has been cut to £98m-£103m, so it could be lower than in 2022. Peel Hunt had been expecting £109m. The integration improvements should start to show through in the second half.
=====
Alliance Pharma (APH) edged up underlying interim revenues to £82.4m. Manufacturing delays due to regulatory issues hampered progress. Demand for scar treatment Kelo-Cote increased as destocking in China came to an end. Growth should accelerate in the second half. Nizoral revenues also grew strongly. Net debt decreased by £7.5m to £94.5m. Chief executive Peter Butterfield is back working full time.
=====
Mortgage Advice Bureau (MAB1) says trading is in line with expectations even though mortgage volumes are weaker than expected. Revenue per adviser is increasing and market share is heading for 8% and could reach 9% next year. 
=====
MP Evans (MPE) increased its crop by 2% in the first six months to 2023, but millgate prices have fallen by one-quarter, although they remain relatively high. Profit will fall this year and Peel Hunt estimates that the shares are trading on around a 50% discount to NAV.
=====
Interim revenues were 17% ahead at SigmaRoc (SRC) with infrastructure demand offsetting weaker residential business. Volumes were down but price rises more than offset this. Trading conditions are likely to remain tough in some markets in the second half. Full year expectations are unchanged with a pre-tax profit of £65m expected.
=====
Lok’nStore (LOK) recently acquired a freehold site for £5.5m in Eastbourne. That will eventually replace a leasehold site. This means that there are eleven stores in the pipeline and three of those are due to open in the next 12 months. The NAV is expected to fall from 972p/share to 917p/ share at the end of July 2023 before recovering next year.
=====
Ergomed (ERGO) increased interim revenues by 10% to £76.7m and it has an order book worth £310m. The pharma services company is debt-free and considering acquisitions. Trading is in line with expectations.
=====
Audio visual products distributor Midwich Group (MIDW) expects interim revenues to be 7.5% ahead at more than £610m. Organic growth was 2%. Margins improved and they are back to pre-2020 levels. Pre-tax profit should be 14% higher at £21.5m. The momentum is expected to continue.
=====
GB Group (GBG) says that trading is still difficult but there could some improvement in the latter part of the financial year. The focus is reducing debt.
=====
ITM Power (ITM) is collaborating with materials science company WL Gore, which supplies the type of membranes used in ITM electrolysers. The two companies will work on PEM technology.
=====
Volex (VLX) generated constant currency organic growth of 6.5% in the first quarter of 2023-24. Supply chain constraints have eased.
=====
Keyword Studios (KWS) has secured a new $400m multicurrency revolving credit facility. This is more than double the size of the previous facility and will finance further acquisitions.

Quoted Micro 24 July 2023

• BY: Andrew Hore |
• POSTED: 24/07/2023 |

AQUIS STOCK EXCHANGE

Ora Technology (LON: ORA) raised £835,000 at 2p/share when it joined Aquis. The share price has doubled to 4p. Ora Technology is developing a carbon credits trading platform called Ora Carbon. This will trade carbon credits on the voluntary carbon markets. The carbon credits will be bought, sold and retired. This will be offered to retail and institutional investors. Revenues will come from transaction fees and project introduction fees. There are plans to offer a white label B2B version for fintech companies, which would not compete with Ora Technology. Additional products and services will be developed.

Chapel Down Group (CDGP) says interim sales grew 21% to £8.37m with particularly strong growth for sparkling wine. Market share is being gained and there should be a strong harvest this year.

Arbuthnot Banking Group (ARBB) says that higher interest rates and focus on specialist lending are helping with the profit improvement. Credit risk is being tightened and loan growth has been slower than expected. Pre-tax profit improved from £3.4m to £26.4m, which is more than three-fifths of the full year forecast of £43m. Rises in deposit interest rates will catch up with lending rates in the second half. The interim dividend is raised from 17p/share to 19p/share.

Western Selection (WESP) has sold its stake in AIM-quoted Kinovo (LON: KINO). There were 3.68 million shares sold at 40p each.

Valereum (VLRM) has agreed a revised timetable for the acquisition of the Gibraltar Stock Exchange. The payment for the second tranche will be £750,00 and the extended closure date is 31 August.

SulNOx Group (SNOX) has secured a new shipping trial with Teekay and Forecast Technologies, which is owned by a New York Stock Exchange listed company, for its SulNOxEco Fuel Conditioner.

Invinity Energy Systems (IES) expects to recognise income of at least £13m in the first half of 2023. There is a significant order book.

Wishbone Gold (WSBN) says that the gravity survey of the Cottesloe project has defined a base metal anomaly of 2.5km with anomalous rockchip and soil results extending the strike to 8km.

NFT Investments (NFT) has cancelled its share premium, and this will enable the proposed tenders offer to go ahead.

Oberon Investments (OBE) is acquiring Nexus Investment Management, the manager of Nexus Investments Evergreen EIS Scale-Up Fund. This is subject to FCA approval. The payment is 7.5 million Oberon shares. This business will make a profit contribution.

Black Sea Property (BSP) is acquiring a majority stake in Grand Hotel Varna, which owns three hotels and a beach marina resort, plus a mutual fund portfolio. The final payment for ECDC has been received. The cost of the acquisition is €28m in cash and more money will be raised.

Quantum Exponential (QBIT) has built up a portfolio of seven quantum computing technology investments. There is a strong pipeline of potential investments.

AIM

Revolution Beauty (LON: REVB) has confirmed the withdrawal of general meeting requisition by boohoo (LON: BOO). Bob Holt and Derek Zissman have left the board, but Elizabeth Lake will remain as finance director – boohoo was trying to remove her. Alistair McGeorge (as executive chairman), Neil Catto, Rachel Horsefield and Peter Hallett. That takes the number of board members to eight. Bob Holt, who will continue to run the business until the end of August, and Elizabeth Lake have exercised options. Bob Holt acquired 5.68 million shares and sold 2.56 million to boohoo, while Elizabeth Lake bought exercised 2.84 million options and sold 1.34 million to boohoo – the selling price is 32.625p/share. The audit of the 2022-23 results should be achieved by the end of August.

Pelatro (LON: PTRO) says a customer owing $550,000 will not be paying on time. There are other receivables which are delayed, and the total is $1.1m out of group receivables of $4.2m. For some customers this is due to waiting for government approval for payments to a foreign entity, but there are disputes with firms in Nepal and Myanmar that owe $375,000. There was $700,00 in the bank at the end of June 2023, but more finance is likely to be required before the end of the year.

Asset manager Gresham House (GHE) is recommending a 1105p/share cash bid from financial services business Searchlight Capital Partners. That values the company at £440.6m. When it moved from the Main Market on 1 December 2014, Gresham House was valued at £26.5m at 227.5p/share. Gresham House’s sustainable asset investment expertise is an attraction to the bidder, as is the management team.

Sportech (SPO) completed a one-for-10,000 share consolidation followed by a 1,000 for one share split - which reduces the number of shareholders by 97%. Sportech is paying a 35p/share special dividend to shareholders out of the proceeds of disposals. The shares go ex-dividend on 27 July. Sportech runs sports bars and other betting venues in Connecticut, US, and has an agreement with the Connecticut Lottery Corporation to provide retail sports betting.

Seaweed-based animal feed supplements producer Ocean Harvest Technology (LON: OHT) increased interim revenues to €1.6m and says it is on course for 2023 revenues of €4.3m. New customers are trialling the OceanFeed supplements with large potential customers that could individually generate more than €3m in revenues. More than 20 potential customers are trialling the products, which augurs well for future growth. New sources of seaweed varieties are being secured to satisfy demand. Gross margins are improving. The April flotation price was 16p and after going to a premium the share price has drifted downwards.

The timing of transactions remains a concern for Watkin Jones (WJG) and full year profit will be lower than expected even before impairment charges. Institutional investment in student accommodation and build-to-rent properties has slowed. Transactions that were expected to be completed by September may fall into next year. Non-core assets may be sold and that is why there is a £10m impairment charge. Watkin Jones was forecast to make a pre-tax profit of £25.1m this year, but this has been downgraded to breakeven. There could also be a £35m provision for remedial work on past properties.

OptiBiotix Health (OPTI) updated the market on its SweetBiotix sweeteners products, which do not have the health concerns of rival sweeteners. They have a low glycemic index and enhance the gut microbiome. Manufacturing is being scaled up and product is being tested for consistency and shelf life. OptiBiotix Health says that well-known consumer brands like Kellogg’s, Nestle and Coca Cola are interested in SweetBiotix. These multinational brands would not allow themselves to be mentioned if they were not strongly considering the use of SweetBiotix.

Telecoms equipment manufacturer Filtronic (FTC) has secured a low earth orbit satellite communications market contract worth £3.2m for a European Space Agency programme for 5G/6G sustainable connectivity. Filtronic will develop mmWave products to enable connection between satellite to receiving ground stations.

Battery technology developer AMTE Power (LON: AMTE) shares continue to fall. Discussions with finance providers and investors continue, but there needs to be additional debt or equity finance in the next few days. If no cash is raised, then the company will have to go into administration and there is unlikely to be anything left for shareholders.

Main Market

Babcock International (BAB) increased its full year revenues by 10% and sharply improved its margins. There are still plenty of exceptionals and provisions in the figures of the marine and aerospace company, though. In the year to March 2023, revenues improved from £4.1bn to £4.44bn. Underlying operating profit declined from £237.7m to £177.9m, which includes a £100m provision for the loss on the construction of Type 31 navy ships.

It appears that the bid for motor dealer Lookers (LOOK) will not go ahead because some shareholders have withdrawn their intention to vote in favour on 27 July. There are enough shareholders to block the scheme of arrangement, so Lookers will then remain independent.

Quoted Micro 17 July 2023

• BY: Andrew Hore |
• POSTED: 16/07/2023 |

AQUIS STOCK EXCHANGE

Equipmake Holdings (EQIP) expects full year revenues of £5.1m, up from £3.7m. This is from commercial and production contracts. There was £7m in the bank at the end of May 2023. Equipmake is helping to electrify existing diesel buses. The contracted order book is worth £5.5m. Equipmake has supplied an e-drivetrain for a long-range electric flying boat.

Guanajuato Silver Company (GSVR) produced 941,338 silver equivalent ounces in the second quarter of 2023. This is the sixth consecutive quarter of increased production, although it is only slightly higher than the previous quarter, and the trend should continue.

Ananda Developments (ANA) released its figures for the year to January 2023 showing an increased loss of £1.29m. The medicinal cannabis company had cash of £19,000 at the end of January 2023. Since then, £427,000 was raised at 0.3p/share and £2.92m of loan notes were converted into shares. Cannabis medicines developer MRX Global was acquired after the year end. Costs will reduce when commercial cultivation and manufacturing commence. There was a mixture of buys and sells during the week, but by far the largest deal was a sell worth £5,200 at 0.52p/share.

In the six months to April 2023, Hydro Hotel, Eastbourne (HYDP) reported flat turnover of £1.8m. Gross margins fell, and overheads increased which meant that the hotel operator swung from a £22,000 profit to a loss of £171,000.

CRUSMETRIC Group (CUSH) more than doubled 2022 revenues to HK$10.8m and a restructuring of the business helped to reduce the loss to HK$5.79m. There is HK$129,000 left in the bank at the end of 2022.

SuperSeed Capital (WWW) has agreed an admission facility with the Aquis Stock Exchange. VSA Capital (VSA) has 100,000 warrants exercisable at 112p and any of these warrants exercised will be announced at the end of each month rather than on the day of issue. The exercise price is much higher than the market price of 82.5p.

EPE Special Opportunities Ltd (EO.P) had an NAV of 312.08p/share at the end of June 2023.

Personalised treatments developer EDX Medical Group (EDX) has appointed Erik Jensen as commercial director, UK and Northern Europe. He has worked with multinational diagnostics firms.

Independent directors Peter Green and Jonathan Lutz have resigned from the board of PanGenomic Health (NARA).

AIM

Healthcare investment company Intuitive Investments Group (IIG) is calling a general meeting and publishing a prospectus to enable a move from AIM to the Specialist Funds Segment of the London Stock Exchange. Existing shareholders are being offered the chance to realise some or all of their shareholding through a tender offer for 17.4% of the share capital at 5.25p/share. This could cost up to £675,000. The investment strategy will be adapted.

Fiinu (BANK) has been unable to raise the cash it requires to reapply for a banking licence. Fiinu has completed the development of the Plugin Overdraft. Costs will be reduced in the company’s subsidiaries. There was cash of £4.3m at the end of June 2023. This is enough to scale down the operations and meet financial obligations. Fiinu will try to secure the finance it requires but it may end up selling the underlying business.

Zoo Digital (ZOO) has been hit by the screenwriters’ strike in Hollywood in the first quarter. They went on strike during the period and the film actors started a strike at the end of the week. On top of this, major streaming clients have been reducing spending because of the losses being made by the services. This has cut demand for translation and other services. Zoo did better than expected in 2022-23 because of a change in accounting policy, but the pre-tax profit forecast for the year to March 2024, has been slashed from $10m to $3.3m.

Chain and transmission equipment Renold (RNO) reported better than expected 2022-23 results after a strong fourth quarter and this year’s forecast was upgraded. In the year to March 2023, revenues improved from £195.2m to £247.1m, while underlying pre-tax profit jumped from £11.5m to £18.6m. a higher tax charge held back earnings growth. This year’s profit forecast has been raised from £14.6m to £16.1m to reflect some destocking as supply chains get back to normal. Debt has been refinanced.

Refurbished technology supplier musicMagpie (MMAG) reported a reduction in interim revenues from £61.9m to £71.3m with books and media making a lower percentage of the total. Rental business is growing and helping to improve gross margin. The loss increased to £3.18m, partly due to higher exceptional charges and amortisation. Net debt rose to £13.6m because of investment in rental assets, which will generate £4m over 18 months. That investment will continue. There is a £30m debt facility, so there are enough funds available. The fourth quarter is important for the full year outcome.

Eco Animal Health (EAH) reported full year figures ahead of expectations. Revenues were 4% higher at £85.3m and pre-tax profit was flat at £3.9m. Net cash was £21.7m at the end of March 2023. Two poultry vaccines are near to submission for approvals. R&D exploration will be increased to £10.4m this year. The new products will reduce the dependence on pig treatment Aivlosin. A 2023-24 pre-tax profit of £4.3m is forecast.

Totally (TLY) increased full year pre-tax profit from £1.3m to £1.8m but the healthcare services provider warns that this year will be tougher. The total dividend has been cut from 1p/share to 0.625p/share. The main growth is coming from elective care services, where Totally is helping the NHS to reduce waiting lists. The loss of four contracts hit urgent care revenues and a lack of new tenders means that it will be difficult to rebuild them.

STM Group (STM) has received a potential cash offer of 70p/share from pensions company PSF Capital GP II Ltd. The cross border financial services provider has agreed in principle to this offer. The share price has not been that high for five years. There are a number of regulatory hurdles that will have to be negotiated before the bid can be completed, so even if a bid is announced it may take a while to go unconditional.

Helium One Global (HE1) has bought an Epiroc Predator 220 drilling rig so that it can start drilling the Tai-C well at the Rukwa site in Tanzania by September. An experienced crew will be required for this. Costs will be higher as they will no longer be shared with Noble, which has made its own arrangements.

Legal services provider RBG Holdings (RBGP) is selling its non-core litigation finance provider LionFish to Blackmead Infrastructure for up to £3.07m. The initial payment is £1.07m with the rest dependent on the cases taken on. This represents a book loss of £980,000. Four cases are retained, and they have a book value of £2.23m.

Battery technology developer Ilika (IKA) is near to signing a production deal with US-based Cirtec, which could be producing the Stereax battery by the end of the year. There are already orders from medical devices developers for this battery. Limited production is underway from the UK pilot plant, but large volumes will not be produced yet. Cash of £15.9m should cover requirements over the next two years.

Business recovery services provider Begbies Traynor (BEG) improved full year revenues by 11% to £121.8m with 6% organic growth. The company has a 11% market share in UK insolvencies. Pre-tax profit was 16% ahead at £20.7m. This year has started strongly. Net cash was £3m at the end of April 2023. The total dividend is 3.8p/share.

Compliance and renewables are propelling Kinovo (KINO) with 18% organic growth in revenues in the year to March 2023. Revenues improved from £53.3m to £62.7m, while pre-tax profit rose from £3.8m to £4.9m. Kinovo has already secured revenues of £64m for this year compared with forecast full year revenues of £72m. Kinovo has moved into net cash, but there will be a significant outflow this year due to the funding of provisions for contracts being completed by DCB, which have been guaranteed by the company.

Cyber security provider Corero Network Security (CNS) has returned to growth in the first half. Interim revenues were one-fifth higher at $10.6m. Annual recurring revenues grew 13% to $15.3m.

MAIN MARKET

Cleaning products manufacturer McBride (MCB) is benefiting from consumers saving money and switching from brands to lower priced own brands. The fourth quarter was particularly strong and full year figures will be ahead of expectations. There was 13% growth in volumes in the fourth quarter and the figure for the year to June 2023 was 5.4%. The full year results will be reported on 19 September.

Legal services provider DWF (DWF) has received a bid approach from Inflexion Private Equity Partners. The offer is 97p/share. Shareholders would also receive a 3p/share special dividend if the bid goes ahead. Shareholders would also be given the option to receive a partial loan note alternative with 65% in loan notes and/or preference shares and 35% in cash. There is also an option to reinvest 40% of the cash proceeds in loan notes or preference shares.

Great Southern Copper (GSCU) has found rock chip samples at Teresita in Chile that have up to 5.97% copper and 13.7g/t gold. This will help to yield drill targets. Terestia is on the Especularita copper gold project area in northern Chile. There were 160 rock chip samples. There is high grade copper gold mineralisation in outcropping quartz-carbonate vein-breccias. There will be further results from rock chip samples and soil sampling.

Aptitude Software (APTD) grew annualised recurring revenues organically by 3% in the first half of 2023. Demand has been softening. Cost savings are offsetting the impact on profit. Chief executive Jeremy Suddards is leaving, and the US boss is taking over on an interim basis. The pre-tax profit is still expected to rise from £7.7m to £10.6m.

AIM 50 Digest 14 July 2023

• BY: Andrew Hore |
• POSTED: 16/07/2023 |

Airline and tour operator Jet2 (JET2) returned to profit last year and Canaccord Genuity increased its 2023-24 pre-tax profit forecast from £423m to £463m as margins continue to improve. Capacity is being increased as Jet2 seeks an improved market share. Executive chairman Philip Meeson is stepping down from the board when a successor is found, even so he acquired 15,000 shares at 1124p each.
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Marketing services provider Next 15 Group (NFG) continues to achieve organic growth, although delays by clients have led to small downgrades. Revenues are expected to grow by 5%-8% and operating margins should improve. The share price has declined since the failed M&C Saatchi bid. The weak area of the business is customer engagement and revenues are expected to decline in this area, while growing elsewhere. Peel Hunt trimmed its revenues estimate by 5%, with earnings 3% down at 94.7p/share. Net cash is expected to be £44m at the end of January 2023.
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Self-storage sites operator Lok’nStore (LOK) has raised £20.5m at 765p/share. This cash will replace debt funding for building new sites because interest rates are increasing. Prior to the share issue, net debt of £44.7m was forecast for the end of July 2023, and expected to rise to £53.6m one year later. Debt will not be that high and interest charges will be lower than expected.
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Brooks Macdonald (BRK) had assets under management of £16.9bn at the end of June 2023, which is 7.5% higher over 12 months. Impax Asset Management (IPX) had assets under management of £39.7bn at the end of June 2023, down 1% on the quarter. In contrast, in the same quarter Polar Capital (POLR) increased assets under management by 3% to £19.7bn thanks to a positive investment performance.
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Central Asia Metals (CAML) has downgraded its 2023 estimates following the second quarter production update. There was better copper and lead production, but zinc production was lower. Peel Hunt has trimmed its pre-tax profit forecast to $86m, up from $55m last year. The dividend is still expected to be 25.1 cents/share.
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Advanced Medical Solutions (AMS) expects interim revenues to be 8% ahead at around £63m, but margins declined. Volumes should increase in the second half as new products are launched and build up sales. Profit will be second half weighted. 
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RWS Holdings (RWS) has acquired Dublin-based Propylon Holdings for an initial Euro30.1m. Propylon content management system is used by governments, standards bodies and legal publishers to help to update legal and regulatory content.
=====
Healthcare IT supplier EMIS (EMIS) says interim trading is in line with expectations with a stronger second half anticipated. The analytics and community pharmacy software operations are growing. Net cash was £48.5m at the end of June 2023.
=====
Johnson Service Group (JSG) continues to beat expectations. The workwear rental business is starting to win new business and the hotel linen business continues to recover. Organic growth was 20% in the first half – partly due to continued post-Covid recovery. Capital investment has improved efficiency and the cost base is stabilising. A new site opens in Crawley next year. Interim figures will be published on 5 September. Investec upgraded the 2023 pre-tax profit forecast from £39.5m to £41.8m.
=====
Young & Co Brewery (YNGA) increased revenues by 8% in the first 13 months of the financial year, including 6.8% organic growth.
=====
Broker Numis Corporation (NUM) reported third quarter revenues at below the first half run-rate because of a deteriorating capital market background. No improvement is anticipated. The bright spot is M&A revenues, which have improved.
=====
ITM Power (ITM) is partnering with Mott Corporation to further develop porous transport layers for proton membrane exchange electrolysis. ITM Power has also opened a new facility in Germany.
=====
SigmaRoc (SRC) has entered a strategic partnership with Material Evolution, which produces low carbon cement from industrial waste. They will develop low carbon concrete products.
=====
CentralNic (CNIC) non-exec Horst Siffrin has sold 2.4 million shares at 114.8p each. He still owns 32 million shares. i3 Energy (I3E) chief executive acquired 196,318 shares at 12.7p each. Victorian Plumbing (VIC) chairman Philip Bowcock sold 185,000 shares at 71.3p each. He still owns 1.26 million shares.

Quoted Micro 10 July 2023

• BY: Andrew Hore |
• POSTED: 09/07/2023 |

AQUIS STOCK EXCHANGE

Apollon Formularies (APOL) reported 2022 results after the market closed on 30 June. Revenues rose 45% to £286,000, but the medical cannabis company continues to lose money. The company warns that it does not have enough cash for its current requirements, and it will have to raise money through a share issue or by selling assets.

Voyager Life (VOY) has ended the deal to acquire the CBD extraction and manufacturing facility in Poland from Goodbody Health. It took longer than expected to gain the approval for the change in ownership. Voyager Life has obtained a manufacturing order from a client and has already supplied another order worth £25,000, which was made in Scotland where the facility is being upgraded. There is £787,000 in cash and that should last 12 months. The £1m of convertible loan notes will not be issued as the acquisition is not going ahead.

S-Ventures (SVEN) returned from suspension following the publication of full year results and the latest interim figures. They were delayed because of the liquidation of Lizza. Group revenues for the healthy snacks supplier were £7.8m in the year to September 2022. The latest interim revenues were £7.7m, including £800,000 from discontinued activities, but it remains loss-making. However, S-Ventures is currently achieving a positive EBITDA. There was £400,000 in the bank at the end of March 2023. Sales momentum is improving.

KR1 (KR1) reported an NAV of 55.01p/share at the end of May 2023. The digital assets generated income of £385,000 during May. KR1 is extending its services agreement with Reflexivity and adding a 12 months notice period. Two KR1 directors own Reflexivity.

Quantum Exponential (QBIT) has made its seventh investment. Delta g is a gravity sensing hardware and technology developer spun out of the UK Quantum Technology Hub Sensors and Timing at the University of Birmingham. Delta g has developed an underground imaging system that leverages quantum technology to measure gravity gradients. This can be used to monitor national infrastructure and ground movement. It could also be used to discover natural resources. Quantum Exponential invested £300,000 as part of the £1.5m pre-seed funding round.

Capital for Colleagues (CFCP) has agreed to convert £250,000 out of £412,000 of loans to investee company South Cerney Outdoor Ltd into 250,000 A shares, which have preferential rights. These will be bought back by the outdoor experiences company in five annual tranches of £50,000. Capital for Colleagues is also transferring 4% of the share capital to the employee ownership trust, leaving it with 31%. The trust has a call option over a further 4% of the company.

VVV Resources (VVV) continues to seek mineral projects. There was £208,000 in the bank at the end of 2022 following a £170,000 cash outflow during the year.

A subsidiary of PanGenomic Health (NARA) has started a vitamin D health assessment service.

John Byfield and Jonathan Wearing have joined the board of BWA (BWAP) and James Hogg has stepped down to concentrate on the heavy mineral sands interests in Cameroon.

PS Allen has a 3.08% stake in Hydro Hotel, Eastbourne (HYDP).

Trading in the shares of Eight Capital Partners (ECP) and Marula Mining (MARU) was suspended at the beginning of the week because they have not published 2022 accounts.

AIM

Grocery and catering distributor Kitwave (KITW) is negotiating the inflationary environment successfully and going from strength to strength. Even stripping out the latest acquisition, organic growth is 17%. In the six months to April 2023, group revenues were 23% higher at £275m, while underlying operating profit jumped from £7.3m to £11.7m – reflecting an improved operating margin of 4.3%. Pre-tax profit improved from £5.6m to £8.3m. The interim results have sparked a pre-tax profit forecast upgrade from £23.6m to £27.5m.

Agricultural products supplier Wynnstay Group (WYN) increased interim revenues but could not repeat the previous level of profit which was boosted by high commodity prices. The figures were hit by a £1.5m fertiliser stock write-down because of a rapid fall in the fertiliser price. In six months to April 2023, group revenues grew by 22% to £409.1m but underlying pre-tax nearly halved from £10.2m to £5.25m. The dividend was increased by 2% to 5.5p/share - continuing the record of annual increases. Net debt was £10.7m at the end of April 2023. Fertiliser demand has recovered due to the lower prices and poultry numbers are rising following avian flu related reductions. Shore Capital forecasts a fall in full year pre-tax profit from £22.6m to £10.7m.

Yourgene Health (YGEN) is recommending a 0.522p/share cash bid from fellow diagnostics company Novacyt (NCYT). This values Yourgene Health at £16.7m. Last December, Yourgene Health raised £6m at 0.3p/share. Novacyt is spending some of the cash it generated during Covid as it seeks to replace those testing revenues.

Restore (RST) chief executive Charles Bligh has stepped down and first half trading has been mixed. Records management remains a steady growth business with the relocation business also trading well. It has been tougher for the technology and shredding operations. Pre-tax profit guidance has been cut from £41m-£43m to £31m. Jamie Hopkins has taken over as interim chief executive.

Emmerson (EML) has referred the Environmental & Social Impact Assessment (ESIA) for its Khemisset potash project to a ministerial committee in Morocco. The regional authority decided it was unable to approve the ESIA. The use of water is a key factor in the decision. A bankable feasibility study will take six months to complete after environmental approval. Emmerson is expected to move into net debt in 2024.

Duke Royalty (DUKE) reported cash revenues of £21.9m in the year to March 2023. Pre-tax profit including gains was £20.4m. The NAV of 39.3p/share includes the value of investee company Instor at the recent sale price. The dividend is 2.8p/share.

Bens Creek (BEN) has raised £5.1m through an issue of loan notes to Avani Resources. The loan notes last 18 months and interest will be added to the principal. Bens Creek will pay $2/tonne of coal sold and this will reduce the principal owed.

MAIN MARKET

Standard list shell Electric Guitar (ELEG) has secured a potential reverse takeover candidate in the form of 3radical, which is run by one of the founders of marketing software company Alterian, which was quoted on the Main Market for more than one decade before being acquired by SDL International for £68.4m. David Eldridge was boss of Alterian when it floated in 2000 but left one year before it was taken over in 2011. He formed audience capture and consented data capture company 3radical at the end of 2011. 3radical collates data and gets permission to use it through gamification software called Voco. The deal places an initial valuation of £3m on 3radical. Trading in the shares has been suspended at 2.1p, which values Electric Guitar at £1.2m. At the end of September 2022, there was £659,000 in cash. If the acquisition goes ahead, Electric Guitar plans to move to AIM once the transaction is completed.

Medcaw Investments (MCI) is considering acquiring a company with a lithium project in Southern Ethiopia. This is a change to the original plan for the standard list shell, which was going to acquire a life sciences business. Abyssinian Metals Ltd (AML) has a 51% stake in the Kenticha lithium caesium tantalum project with the other 49% owned by the Oromia state. The project has a JORC, open-pit, inferred resource of 87.7mt at 0.78% Li2O with upside of up to 51mt. Production could commence at the end of 2023. Due diligence will commence, and the two companies will work together to agree a potential offer for 100% of AML.

Quoted Micro 3 July 2023

• BY: Andrew Hore |
• POSTED: 02/07/2023 |

AQUIS STOCK EXCHANGE

Music and livestreaming services All Things Considered (ATC) is acquiring a 60% stake in merchandise company Sandbag for an initial £2.42m. This grows the direct to consumer operations and provides cross-selling opportunities. Sandbag generated revenues of £39.6m in 2022-23 and underlying profit was £1.27m. All Things Considered will be able to use the services for its own artists. The company raised £4.18m at 92.5p/share.

In the year to March 2023, VSA Capital (VSA) turnover improved from £3.61m to £4.36m and the pre-tax profit increased from £281,000 to £612,000. That profit is after an increased loss on investments from £443,000 to £860,000. The intangible assets will be fully amortised by March 2026. There was a £540,000 cash outflow from operating activities, compared with a cash inflow of £229,000 in the previous year. The reason for the cash outflow is that £2.28m of revenues were settled in shares. This is due to the payment in shares for advice relating to the Aquis-quoted Silverwood Brands acquisition of a 19.8% stake in skincare products supplier Lush. This transaction has run into problems with the registration of the shares and that hit the Silverwood brands share price. Net cash was £740,000 at the end of March 2023, while the value of investments rose from £692,000 to £2.14m. NAV was £4.37m at the year end. VSA Capital chief executive Andrew Monk bought 514,200 shares at 5p each.

Cooks Coffee Company (COOK) revenues fell 10% to £3.4m last year. Gross margins did improve, though. Five more stores have been opened this year. Oberon has been appointed broker.

Western Selection (WSP) has reduced its stake in Kinovo (KINO) by selling 3.76 million shares at 40p each. It retains 3.7 million Kinovo shares. Western Selection has an estimated NAV of 80p/share, including 72p/share in cash and gilts.

NFT Investments (NFT) had net assets of £25m at the end of 2022, including £5.85m in cash. By June, the crypto, cash and equity investments of 3.34p/share before creditors.

Japanese whisky supplier Rogue Baron (SHNJ) reported an improvement in full year revenues from $66,000 to $164,000, while the loss reduced from $361,000 to $264,000. Low inventory levels have held back growth. Second half sales are set to grow.

Precious metals recycler Majestic Corporation (MCJ) reported a decline in full year revenues from $29.7m to $23.4m, while pre-tax profit excluding float costs fell from $854,000 to $769,000.

Ananda Developments (ANA) says that MRX1 cannabidiol based medical oil is on track for a commercial launch in July. The latest season of medical cannabis flowers trials are exceeding expectations.

Invinity Energy Systems (IES) reduced its full year loss from £21.3m to £19m and expects a jump in revenues this year. There was £15.3m in the bank at the end of May 2023 and the Riverfort loan facility has been repaid. The revenues backlog is £23.7m.

Dan Bower purchased 25,000 shares in SuperSeed Capital (WWW) at 94p each. SuperSeed Capital has issued 100,000 investor warrants to VSA Capital exercisable over six months at 112p each in order to help liquidity.

There was £787,000 of cash used in operations at Wishbone Gold (WSBN) in 2022. There was still £1.23m in the bank at the end of the year.

Probiotix Health (PBX), which was spun out of AIM-quoted OptiBiotix Health (OPTI), grew full year revenues by 19% to £1.3m. Confirmed orders for 2023 have already reached £1.1m. Plans for line extensions should help to grow sales. There was £1.74m in the bank at the end of 2022.

Global Connectivity (GCON) reported a 2022 profit of £360,000 because of a £616,000 write back of an intercompany loan. There was £75,000 in cash on 16 June and £550,000 will be received in repayments of intercompany loans over 18 months. Management is seeking opportunities to invest in.

Cadence Minerals (KDNC) reported a dip in net assets from £22.2m to £21.3m. There was an unrealised loss on investments of £4.59m in 2022, but that was partly offset by the money raised in a share issue.

Valereum (VLRM) is still waiting for regulatory permission for the acquisition of the Gibraltar Stock Exchange. The plan is to focus on growth companies in the Middle East, Africa and India.

TruSpine Technologies (TSP) has repaid a £100,000 loan from Annabel Schild out of a £200,000 R&D tax credit payment.

Adnams (ADB) says trading improved in June, but the outlook for the rest of the year is uncertain.

Guanajuato Silver Company (GSVR) reported an upgraded mineral resource for the El Cubo mines complex and there are 5.8 million ounces equivalent of silver indicated and nearly 20 million ounces inferred. A resource estimate for the San Ignacio mine will be completed later in the year.

Capital for Colleagues (CFCP) is selling part of its largest stake. The stake in case management software provider Computer Application Services is valued at £2.5m and a shareholding worth £754,000 is being sold. Capital for Colleagues still owns 33.33% of the company.

KR1 (KR1) reported a 62% fall in net assets to £70m at the end of 2022, which is 39.47p/share.

Boru Ltd has made a £500,000 investment in EDX Medical (EDX) at 8p/share.

Constantine Logothetis is investing £266,000 in SulNOx Group (SNOX) at 9.5p/share and his company has become a consultant and been granted 3.765 million options at 10p each.

Marula Mining (MARU) is planning to apply for a listing on the Johannesburg Stock Exchange.

Black Sea Property (BSP) has not published 2022 accounts and share trading will be suspended on 3 July.

AIM

Automotive acoustics products supplier Autins Group (AUTG) has cut costs, but revenues still have to be more significant for breakeven to be achieved. Interim revenues increased by 15% to £10.8m and the loss was reduced. There is cash headroom of £3.5m on current bank facilities and this is enough for the current requirements. Autins does have to start to pay back the CBILS loan.

Cleaning services provider React (REAT) confirmed the expected improvement in interim figures following last year’s acquisition of LaddersFree. Pre-tax profit jumped from £90,000 to £770,000. Tax losses are running out, but prospective earnings put the shares on a single figure multiple.

Video games producer tinyBuild (TBLD) expects 2023 to be a financial low point with the first half performance below expectations. New games have underperformed and the values of some of the back catalogue titles may be impaired. Higher amortisation of development costs and increased royalties mean that EBITDA will fall more sharply than revenues. The cash position is much weaker than expected and it could fall below $10m by the end of the year. Finance director Tony Assenza has left the board.

On Thursday, Revolution Beauty (REVB) shares recommenced trading following the AGM. It was suspended on 1 September 2022 because of the inability to publish accounts and concerns about the previous financial reporting. The AGM was eventful with an attempt to adjourn the meeting until the general meeting requisitioned by 27% shareholder boohoo failing. The three directors that boohoo (BOO) wanted to remove, including chief executive Bob Holt, were not re-elected with most of the votes against re-election coming from boohoo. That left the company with one director, and he reappointed the three directors plus two new non-executive directors. The share suspension would not have ended if there were only one director. This upset boohoo, but trading would not have recommenced without directors being appointed.

The FDA has granted De Novo marketing authorisation for KidneyIntelX.dkd, the AI-enabled test for patients with Type 2 diabetes and kidney disease that has been developed by Renalytix (RENX). This will help to accelerate revenues. The test stratifies patients based on the risk of progressive kidney function decline over five years. Renalytix estimates that 14 million people could be eligible for testing.

AMTE Power (AMTE) was awarded a £389,000 grant by the UK Battery Industrialisation Centre yesterday. The company anticipates UN certification of its Ultra High Power Cells in the third quarter of 2023, but the financial future of the company remains uncertain.

IOG (IOG) has successfully improved gas production rates at the Blythe H2 well in the North Sea. There had been a blockage that hampered flow rates and a downhole valve has been adjusted. Drilling of appraisal wells is being deferred. This is to maximise cash generation ahead of bond repayments. Two wells have to be drilled by March 2024, though, due to licence requirements.

MAIN MARKET

CAB Payments has announced the offer price of 335p. This offer is one of the few that has happened this summer. The shares should be eligible for inclusion in the FTSE 250 index. The flotation was expected to value the payments company at up to £1bn and the valuation at the offer price is £851.4m. That is after raising up to £333m in the offer and it assumes no exercising of the over-allotment option, which could be up to an additional 15% of the offer shares. Existing investors are selling all the shares on offer. CAB Payments has developed technology and global networks for foreign exchange and cross-border payments. This means that there are high barriers to entry. The underlying business is Crown Agents Bank, which has a UK banking licence.

Shipbroker Braemar (BMS) has identified a transaction worth $3m that originated in 2013 and finally paid in 2017. There are concerns about reporting and the remaining liability in the balance sheet. An investigation will delay the accounts. The share price slumped after the announcement. Trading in the shares will be suspended, at 233p, on 3 July.

AIM 50 Digest 30 June 2023

• BY: Andrew Hore |
• POSTED: 02/07/2023 |

Electrical connections and accessories manufacturer Volex (VLX) is making its largest ever acquisition. The €178m acquisition of Turkey-based Murat Ticaret diversifies the business geographically as well as taking it into the off-highway vehicle market. Murat Ticaret manufactures complex wire harnesses and battery cables for international clients. The largest market is agricultural vehicles. The acquisition should add 14% to earnings in the year to March 2025. The related fundraising generated £60m at 275p/share.
In the year to March 2023, Volex revenues improved from $615m to $723m, while underlying pre-tax profit increased from $51.4m to $59.3m. That was slightly better than expected with organic revenue growth of 11%. Underlying operating margin improved to 9.3% and it could move higher depending on the mix of revenues. The total dividend was raised from 3.6p/share to 3.9p/share.
=====
accesso Technology (ACSO) is acquiring ticketing and visitor management technology company VGS, which will help to update the group technology. VGS has more than 100 clients. The net purchase price is $38.5m. 
=====
Polar Capital (POLR) is not immune to the underlying markets. In the year to March 2023, group revenues declined from £224.1m to £182.9m. Management fees slipped from £210m to £176.2m, while performance fees more than halved to £6.7m. Pre-tax profit slumped from £62.1m to £45.2m. Lower core costs helped to reduce the decline in profit. Assets under management fell from £22.1bn to £19.2bn. The dividend was maintained at 46p/share.
=====
Motor dealer Vertu Motors (VTU) confirmed a good first quarter of trading in its AGM statement. Volume growth was ahead of the market. Vertu Motors had net tangible assets of 65.3p a share at the end of February 2023 and this could rise to 73.6p a share by February 2024. Used car prices are resilient.
=====
Self-storage sites operator Lok’nStore (LOK) says second half trading has been strong and it is on course for a 10.5% increase in revenues during the period. The annual increase is likely to be 6% to £25.6m. A new store in Peterborough has just opened and this will help to boost NAV at the end of July.
=====
North Sea oil and gas producer i3 Energy (I3E) has revised its 2023 production guidance from 22,250-23,000 barrels of oil equivalent/day to 20,000-21,000 barrels of oil equivalent/day, which is lower than first quarter production, while oil and gas prices have fallen. This has led WH Ireland to cut its cash flow generation expectations from £67.3m to £55.7m and lowered its fair value estimate from 27p/share to 23p/share.
=====
Serica Energy (SQZ) has maintained production guidance at 40,000-47,000 barrels of oil equivalent/day. The cost of production is $17/barrel.
=====
Former Churchill China (CHH) finance director David Taylor is taking over as interim finance director of soft drinks maker Nichols (NICL). Andrea Montague is taking over as finance chief at Brooks Macdonald (BRK). Gresham House has taken a 5.58% stake in the wealth management company. Non-exec James Rawlingson bought 500 shares at 2022p.
=====
Tatton Asset Management (TAM) sales partner Anthony Murrell sold 15,000 shares at 460p/share and 85,000 shares at 440p each.  Gresham House has taken a 6.53% stake in Watkin Jones (WJG).

Quoted Micro 26 June 2023

• BY: Andrew Hore |
• POSTED: 25/06/2023 |

AQUIS STOCK EXCHANGE

NHS funded medical services provider One Health Group (OHGR) increased full year revenues by 17% to £20.5m and operating income was £1.5m –ahead of forecasts. The full year dividend is 6p/share. Seal Advisers forecasts 2023-24 earnings of 11.7p/share. At 174p, the shares are trading on 15 times prospective earnings.

Pubs operator Daniel Thwaites (THW) had a tougher second half and Christmas trading was poor. In the year to March 2023, revenues improved from £96m to £108.8m, while pre-tax profit rose from £12.7m to £15.1m, mainly due to a higher gain on interest rate swaps. Operating profit before property disposals was lower, although that is predominantly because of the lack of government assistance in the most recent year. NAV is £242m, including a pension asset of £32.2m due to higher interest rates, while net debt is £66.7m. The final dividend was raised from 2.2p/share to 2.4p/share.

Coinsilium Group Ltd (COIN) reported a reduction in revenues from £530,000 to £212,000 in 2012. The impairment charge increased from £148,000 to £273,000, but there was no loss on financial assets, compared to a £407,000 loss in 2021. There was a swing from a realised profit on assets of £1.52m to a loss of £1.29m. The reported loss was £2.06m, compared to a profit of £14,000. Net cash outflow from operations increased from £602,000 to £789,000. NAV is £3.94m, including cash of £668,000. Digital asset markets have recovered since the beginning of the year.

Psych Capital (PSY) has acquired Short Wave Pharma for £3.5m in shares with the initial issue at 4p a share. Short Wave Pharma is an Ontario company with operations in Israel. It is developing a therapy for anorexia nervosa. Psych Capital is also developing a delivery method and drug combination for anorexia nervosa.

Capital for Colleagues (CFCP) had net assets of 82.1p/share at the end of May 2023, up from 77.8p/share three months earlier. There is cash of £1.92m.

IamFire (FIRE) investee company WeShop has raised money at 476p/share. The IamFire stake in WeShop is valued at £22.5m.

The latest medicinal cannabis research roundup from Ananda Developments (ANA) highlights that CBD can be beneficial for behavioural symptoms of dementia. The level of behavioural disturbance fell from an average of 60 to 15 over a six-month trial period. There is also a study showing that cannabis-based medicinal products improve the quality of life scores for Fibromyalgia.

EDX Medical Group (EDX) has appointed Oberon Capital as corporate adviser and broker. The diagnostic products developer also appointed Dr Keti Zeka as head of R&D and director of laboratories and Dr Liam Dower as head of quality, regulatory affairs and compliance.

Barry Hersh cut his stake in Global Connectivity (GCON) from 8.95% to 7.96%.

AIM

Online retailer boohoo (BOO) is attempting to remove three directors from the board of Revolution Beauty (REVB). In the first three months of 2023-24, the cosmetic company’s revenues were three-fifths higher, and the cosmetics business made a positive EBITDA. Management says this indicates the turnaround of the business and that growth is returning – something boohoo has focused on. The board is against the boohoo general meeting requisition.

Best of the Best (BOTB) is recommending a £45.3m takeover bid by Globe Invest. The 535p offer compares with the 400p at which the initial 29.9% stake was acquired last September.

Expectations have been reduced for concrete levelling equipment supplier Somero Enterprises (SOM) following delays in project starts this year. Production of a new machine is being increased to satisfy demand, which will help the second half. US revenues are likely to be lower, but they will grow in other markets around the world. The forecast revenues have been reduced by 10%, while earnings have been cut from 53.2 cents a share to 44 cents a share.

Following today’s trading statement by Hotel Chocolat (HOTC), Liberum has downgraded its forecast for 2022-23 and it expects a £1.5m loss rather than a £800,000 profit. The 2023-24 pre-tax profit forecast has been slashed from £20.3m to £6m. This follows weaker fourth quarter trading and problems with the availability of Easter ranges. Inflation will hit future profitability. Guidance by the management is becoming more prudent.

Telecoms components and systems supplier Filtronic (FTC) says the low earth orbit contract won earlier this year has exceeded expectations and prospects for further contracts are positive. There are also prospects in the 5G market. Development contracts have been won for electronic warfare projects. Supply chain constraints are easing. The results for the year to May 2023 will be published on 1 August.

Battery technology developer AMTE Power (AMTE) is one of the poorer performers for the second week running. The company requires a financing within three weeks. The cash will provide more time for the company, but it needs significant funds to finance the building of a battery plant.  It is not certain that enough money can be raised and that means that shareholders may end up with nothing.

Allergy Therapeutics (AGY) has returned from suspension following the publication of full year accounts and the subsequent interim results. The interim revenues declined by 18% to £39.9m and there was a swing from operating profit of £7.4m to a loss of £8m. Net cash was £13.2m at the end of 2022. Additional cash will be required by September.

Avacta Group (AVCT) says that following the fifth dose escalation cohort in a phase I clinical study of AVA6000 for tumour targeted chemotherapy. There has been a marked reduction in frequency and severity of toxicities associated with doxorubicin chemotherapy. The sixth dose will be increased as Avacta tries to identify the maximum tolerated dose.

Energy projects developer Oracle Power (ORCP) is raising £363,000 at 0.1p a share. This will finance the development of the company’s joint venture green hydrogen project. Global Investment Strategy has been appointed joint broker.

MAIN MARKET

Canada-owned Global Auto Holdings is bidding 120p a share for motor dealer Lookers (LOOK), valuing the company at £465.4m. That is more than one-third higher than the previous closing price.

Aviation and renewables company Esken (ESKN) is set to sell its operations over the next few years and there should be significant break up value. In the year to February 2023, revenues increased from £104.6m to £130m, while the underlying loss reduced from £35.7m to £27.7m. However, the loss is expected to increase this year on lower revenues following disposals. The forecasts loss ranges from £43m to £53.7m. Net debt jumped from £88.1m to £166.7m at the end of February 2023. That was before the announcement of the £9m disposal of Mersey Biomass. The strategy is to dispose of the main businesses when there are realistic selling prices. The renewables business is likely to be sold first with the timing of a sale of the aviation business depending on the rate of recovery in operations.

Non-Standard Finance (NSF) says the proposed scheme of arrangement has been approved and the company will leave the standard list and be wound up. The scheme of arrangement makes £14m available to satisfy claims by borrowers about loans made by Everyday Loans prior to 31 March 2021, as well as fees owed to the Financial Ombudsman Service arising from complaints. There was a proposed recapitalisation, but major shareholder Alchemy did not want to back a fundraising. Instead, the business will be transferred to secured lenders.

Quoted Micro 19 June 2023

• BY: Andrew Hore |
• POSTED: 18/06/2023 |

AQUIS STOCK EXCHANGE

Energy storage technology company Invinity Energy Systems (IES) has reassured the market that its 2022 accounts will be published by the end of June and there is likely to be a reduction in provisions for contract losses. That means the overall loss will be lower. Revenues will be around £3.6m. There was cash of £15.4m at the end of May.

Newbury Racecourse (NYR) is investing 40% of its media income into prize money this year. A new betting office retail rights agreement started on 1 April. An annual dividend is planned this year.

Mark Horrocks has increased his stake in Lift Global Ventures (LFT) from 12.3% to 13.3%. Investee company Trans-Africa Energy has entered a joint development agreement with Ghana Natural Gas, which gives the company majority stakes in four projects processing and transporting natural gas.

Annable Schild has been removed as a director of TruSpine Technologies (TSP).

Coinsilium Group Ltd (COIN) has converted a £200,000 loan note into Greengage Global Holding Ltd shares and warrants. It has also invested £25,000, at a 9.9% share price increase on the initial investment in the digital merchant banking technology developer, in the latest £1m fundraising. This increases Coinsilium’ stake to 27,133 A shares and 8,370 warrants.

Cadence Minerals (KDNC) investee company Hastings Technology Metals has signed non-binding heads of agreement with Neo Performance Materials Inc relating to a potential offtake agreement for rare earth concentrate from stage one of the Yangibana rare earths project. This could cover up to 25,000 tonnes per annum.

RentGuarantor (RGG) has secured an agreement with InsureStreet Ltd (Canopy) for the use of its rent guarantee services.  Canopy completes 120,000 references each year and 12% of these require a guarantor. The initial term is three years.

SulNOx Group (SNOX) has been granted a US patent for a range of formulations including the Berol 6446 Heavy Fuel Oils emulsifiers and SulNOxEco Fuel Conditioners for diesel and petrol. This will help to generate revenues in the US.

EPE Special Opportunities Ltd (EO.P) had net assets of 313.17p a share at the end of May 2023.

SuperSeed Capital (WWW) managing partner Mads Jensen bought 3,000 shares at 85p each.

AIM

Professional services provider Driver Group (DVR) is back in profit in the first half after a second half loss in the previous financial year. The £700,000 pre-tax profit was achieved even though there was a small fall in revenues because of the restructuring of the Middle East and Asia divisions. Utilisation rates improved from 69.6% to 75.6%. The interim dividend is maintained at 0.75p a share. Further cost savings will help second half performance.

Mind Gym (MIND) moved back into profit in the year to March 2023. Revenues improved 13% to £55m, while a loss of £500,000 was turned into a pre-tax profit of £3m. The human capital services provider continues to invest in digital products, so cash fell to £7.6m. A £10m debt facility remains undrawn. The purchase of a diagnostics platform has brought forward the launch date for a full client diagnostics platform by 18 months and less will have to spent on the development.

Consumer appliances retailer Marks Electrical (MRK) reported maintained pre-tax profit for last year despite higher costs and the overall weakness of the economy. In the year to March 2023, revenues improved from £97.8m to £112.4m, while underlying pre-tax profit was flat at £6.4m. Gross margins edged down. Overheads were higher partly due to the lack of Covid business rate relief, building up capacity and the costs of being quoted. Net cash rose from £3.9m to £10m. The total dividend is 0.96p a share. Marks Electrical increased its domestic appliances market share from 2% to 2.5% and raised its share of the consumer electronics market, which it entered more recently, from 0.4% to 0.6%.

Battery technology developer AMTE Power (AMTE) says it needs to complete a financing within four weeks. There is no certainty that any money will be raised and that means that shareholders may end up with nothing. The cash will provide more time for the company, but it needs significant funds to finance the building of a battery plant.

The FDA has granted marketing authorisation for the Futura Medical (FUM) erectile dysfunction treatment MED3000. It can be sold over the counter without a prescription. It takes ten minutes to take effect, which is faster than rival treatments. A US commercial partner is required. The treatment is branded as Eroxon in Europe and the roll out has already commenced in the UK and Belgium. Lombard Odier has exercised 10.9 million warrants at 40p each, bringing in nearly £4.4m in cash.

Sound Energy (SOU) believes it has secured a deal that will provide funding for the Tendrara exploitation concession and the Grand Tendrara exploration permit. The deal with Calvalley Petroleum would involve the divestment of a 40% working interest in the concession and permit. Sound Energy retains a 35% interest and remains the operator. Calvalley would fund the first $48m of development costs and 100% of the TE-4 well costs up to a maximum of $7m. There will also be $8m of funding for 40% of other costs, including back costs. Calvalley may also advance Sound Energy cash to cover costs and this would be paid back out of future revenues. Sound Energy is also raising up to £4m through a convertible loan note.

The Aptamer (APTA) share price recovered on the back of a successful development of a lateral flow test to diagnose early Alzheimer’s disease. This was developed in collaboration with Neuro-Bio using Optimer binders. The share price is back to around the level it was last month before Aptamer said that deals are slow in converting and it will require more cash.

Challenger Energy (CEG) says that it expects to be awarded a new onshore licence in Trinidad. This covers a block that surrounds Challenger Energy’s producing Goudron field. The block is also highly prospective, as well as having existing non-producing wells. The Trinidad operations can finance themself and potentially provide cash for the core Uruguay exploration operations.

Sustainable biopesticides developer Eden Research (EDEN) has appointed a new product distributor in Colombia. Anasac Colombia will be exclusive distributor of Mevalone and it will seek regulatory approval for its use on freshly cut flowers to prevent Botrytis cinerea. Colombia exported $1.73bn worth of cut flowers in 2021.

Mirada (MIRA) fell a further 48.3% to 1.55p ahead of the cancellation of the AIM quotation on Monday.

MAIN MARKET

Social housing maintenance provider Mears (MER) has traded strongly in the first five months of the year leading to a profit upgrade. Peel Hunt has increased its 2023 pre-tax profit forecast by 10% to £3.8m.

Castings (CGS) is paying a 15p a share special dividend and the total dividend for the year is 32.35p a share. In the year to March 2023, net foundry output was the highest since 2014 due to increasing heavy truck production. Revenues were 35% ahead at £201m and pre-tax profit was 38% higher at £16.7m.

In the year to March 2023, structural steel supplier Severfield (SFR) revenues were 22% ahead at £491.8m, with underlying pre-tax profit one-fifth higher at £32.5m. The total dividend is 10% higher at 3.4p a share. Net cash was £2.7m, although the purchase of steel fabrication company Voortman Steel Construction Holding for €24m will move the company back into net debt.

AIM 50 Digest 16 June 2023

• BY: Andrew Hore |
• POSTED: 18/06/2023 |

Audio visual products distributor Midwich Group (MIDW) is acquiring SF Marketing Inc, which has a similar business in Canada for £26.7m. Midwich raised £51m via a placing and retail offer at 425p a share. The cash will help to reduce debt, which had risen to £119.4m by the end of 2022, although that includes £23.4m of lease liabilities. That is before the acquisition of SF Marketing.  Further earnings enhancing acquisitions are likely.
Midwich already has a North American operation called Starin. Last year, revenues increased by 78% to £123.1m, but gross margin declined to 14%. Adjusted operating profit rose 41% to £6.4m. That is around 12% of group operating profit. The majority of profit is currently generated by European activities with the UK and Ireland the biggest contributor.
In the year to May 2022, SF Marketing generated revenues of C$94.7m and adjusted operating profit of C$6.1m, so it will be a significant boost to the North American operations.  There is £1 to C$1.66. The deal should be earnings enhancing in the first full year.
=====
In the second half of the financial year there were average monthly asset inflows of £148m for Tatton Asset Management (TAM). The year-on-year growth in assets under management was 12% to £12.7bn. The 8AM Global acquisition took assets under management/influence to £13.9bn. In the year to March 2023, revenues improved from £29.4m to £32.3m, while pre-tax profit increased from £14.1m to £16m. The dividend is 14.4p a share, which is 70% of earnings. 
There are two parts to the group. The investment management division, which is branded Tatton, and the lower margin Paradigm mortgage support services business. The investment management business is the larger profit contributor with Paradigm profit flat last year. There is £26.4m in cash in the balance sheet and it will continue to rise even after paying dividends.
=====
MP Evans (MPE) increased crude palm oil production by 3% to 134,000 tonnes in the first five months of 2023, with more being processed by its own mills. Prices have fallen from the high levels last year.
=====
IDOX (IDOX) interim revenues rose 8% to £35.8m and good visibility for the second half means the software company is on course to improve pre-tax profit from £13.5m to £15.8m for the full year. 
=====
At its AGM, Learning Technologies Group (LTG) says business momentum has been moderate so far this year. The strong balance sheet will enable acquisitions. A trading statement is planned for 27 July.
=====
Watkin Jones Group (WJG) has pre-sold the Loft Lines project in the Titanic Quarter of Belfast to Legal & General and Clanmil Housing Association. The development comprises 627 build to rent homes and 81 social housing units. The total payment will be £155m. There will be a small 2022-23 profit on the land transaction with construction starting in 2023-24. Project delivery will be in 2026.
=====
Translation and IP services provider RWS Holdings (RWS) improved interim revenues by 2.5% to £366.3m, but underlying pre-tax profit fell 10% to £54.4m. The interim dividend is 7% higher at 2.4p. This year will be second half weighted. Full year pre-tax profit is expected to be around £126m, down from £135.7m. Additional cost reductions should cut annual overheads by £25m. There are plans for a £50m share buy back.
=====
GB Group (GBG) reported a loss for the year to March 2023. That was mainly due to a non-cash goodwill impairment charge. Excluding one-offs, the identity services provider was still profitable, but it was hit by weak demand from cryptocurrency and fintech customers. The total dividend was raised by 5% to 4p a share.
=====
i3 Energy (I3E) more than doubled pre-tax profit from £25.7m to £55.8m in 2022. Daily production averaged 20,317 barrels of oil equivalent. A drilling programme in Canada should increase production. There are plans to cancel the £51m share premium account to provide distributable reserves for dividends.
=====
Advanced Medical Solutions (AMS) has gained pre-market approval in the US for LiquiBandFix8 earlier than expected.
=====
IQE (IQE) finance director Tim Pullen is leaving after just over four years.
=====
Impax Asset Management (IPX) non-executive director Annette Wilson bought 2,964 shares at 674.68p each and 9.036 shares at 638.2p each. JCB Research has cut its stake in ITM Power (ITM) from 6.98% to 5.96%. Smart Metering Systems (SMS) director Tim Mortlock bought 6,820 shares at 733.13p each, while fellow director Gail Blain acquired 2,717 shares at 735.5p each.

Quoted Micro 12 June 2023

• BY: Andrew Hore |
• POSTED: 11/06/2023 |

AQUIS STOCK EXCHANGE

Fully listed Associated British Foods (ABF) has launched a recommended bid for National Milk Records (LNMRP). The 215p a share bid values the milk payment testing company at £48m. The share price jumped 77.4% to 204p. has not been as high as this since 2009. The previous peak was in 2019. The business will be integrated with AB Agri.

Brewer and pubs operator Adnams (ADB) grew beer volumes by 2.7% in 2022. The low and no alcohol sector is growing in importance. Revenues improved from £57.4m to £64.2m, but the loss increased from £1.39m to £2.29m. NAV improved to £25.5m because there is no longer a pension liability. Net debt is £13.9m.

Invinity Energy Systems (IES) is deploying a 1.2MWh first prototype of next generation vanadium flow battery product called Mistral in Canada. Mistral is being jointly developed with Gamesa.

House builder St Mark Homes (SMAP) reported an increased loss in 2022. Revenues jumped from £259,000 to £559,000, but admin expenses more than trebled. The loss from joint ventures soared from £37,000 to £731,000. The pre-tax loss increased from £105,000 to £1.47m. Net assets fell to £3.7m. The focus is completing the projects in Sutton and Finchley. Future developments are likely to be family housing rather than apartments.

In the year to March 2023, Gledhow Investments (GDH) made a £94,000 loss due to significant reductions in the value of investments in its portfolio. There was net cash of £339,000 at the end of March 2023. NAV fell from £2.37m to £1.6m.

Unigel Group (UNX) has declared a 2.5p a share final dividend. In the period to the end of 2022, revenues were £18.8m and pre-tax profit was £442,000.

Secured Property Developments (SPD) reported interim and full year results for 2022. NAV was £369,000 at the end of the year, including £383,000 in cash.

Gunsynd (GUN) investee company Aberdeen Minerals has completed the first phase of drilling at the Arthrath nickel, copper and cobalt project in Aberdeenshire. The results validate previous data from 50 years ago. All the holes intersected nickel, copper and cobalt. Gunsynd invested £150,000 at 7.5p a share.

Marula Mining (MARU) has appointed Tokkas Van Heerden as chief operating officer ahead of a move to AIM. He has been working at the company for one year and will manage the operations in Africa.

Fenikso Ltd (FNK) has received a further $644,000 of the money owed as part of the Fenikso restructuring. At the end of 2022, NAV was $19.5m.

SuperSeed Capital (WWW) managing partner Mads Jensen bought 39,000 shares at an average price of 74p each.

AIM

Footwear retailer Shoe Zone (SHOE) says trading was strong in May and early June and it expects to exceed expectations this year. There was early demand for summer products, which could just be a change in timing of buying. There were also lower transport costs that helped to improve margins. The profit for the year to 2 October 2023 should be at least £10.5m.

The latest trading statement from NWF (NWF) sparked a 9% upgrade in 2022-23 pre-tax profit forecast to £19m, which is 42% higher than the figure in March. That is still lower than the £20.9m made in the previous year, but that was boosted by the sharp rise in oil prices. Even so, the fuels business had a strong second half.

Mineral sands project developer Capital Metals (CMET) was sent a notice of cancellation for the Industrial Mining Licences for the Eastern Minerals project by the Sri Lankan Geological Survey and Mines Bureau (GSMB), which claims that certain licence conditions have not been complied with. The licences were suspended in December and all mining activities were halted. The GSMB is currently being investigated by a Sri Lankan parliamentary committee because of criticism of its actions and inaccurate guidance.

Barryroe Offshore Energy (BEY) warns that has around three weeks of working capital left after announcing it is no longer proceeding with the previously announced placing and open offer following the Irish government’s refusal to grant the lease for the SEL 1/11. The company is seeking additional cash for working capital, but if it is unsuccessful then it will probably have to go into liquidation. Trading in the shares is likely to be suspended on 3 July because the 2022 accounts will not be published by then.

Indian port operator Mercantile Ports and Logistics Ltd (MPL) raised £8.9m from a placing and subscription at 3p a share from investors including existing substantial shareholder Hunch Ventures and Investment Private Ltd. A retail offer could raise up to £1.2m at 3p a share and will be open until 4.30pm on 12 June. The minimum subscription is £250. This cash will strengthen the balance sheet and put management in a stronger position when it is renegotiating its debt facilities.

Graphene technology developer Versarien (VRS) reported a higher interim loss of £3.4m on lower revenues. There was cash of £760,000 at the end of March 2023 with £530,000 added since then. However, the cash outflow from operating activities in the past six months was £1.83m, so that needs to be stemmed. Total Carbide and AAC Cyroma could be sold. The share price slipped 29.3% to 3.325p.

Barkby (BARK) investee company Cambridge Sleep Sciences has granted a five-year licence to Sleep Sense International, which will use the SleepEngine platform to manufacture a Smart Pillow. SleepEngine is an audio product that retrains the brain to restore healthy sleep patterns. The exclusive rights to the pillow market is based on a minimum order quantity of 25,000 units in the first 12 months, which should generate £1.25m. Revenues could reach £3m in the second year.

Fire safety products developer LifeSafe Holdings (LIFS) continues to outperform revenue expectations. In the first four months sales are treble the same time last year and 15% ahead of management estimates. The 5 in 1 consumer extinguisher product has helped to accelerate growth in the US. LifeSafe could be cash flow positive by the end of the year.

MAIN MARKET

Galliford Try (GFRD) has settled a long-running contract dispute and this is enabling the construction company to pay a special dividend of 12p a share. The settlement covers three contracts with an infrastructure fund, and it means that Galliford Try will receive £26m in cash. However, there will be a £3m non-cash write-off relating to the settlement.

Pay day loans company Amigo Holdings (AMGO) has received an approach from financier and shareholder Michael Fleming. He wants to attempt to explore possible debt funding for the business. There is no certainty that the search for new funding will be successful. Amigo will continue to sell assets.

Quoted Micro 5 June 2023

• BY: Andrew Hore |
• POSTED: 04/06/2023 |

AQUIS STOCK EXCHANGE

Spinal medical devices developer TruSpine Technologies (TSP) has held the requisitioned general meeting where all the motions were rejected, other than for the re-convening of the AGM. Norman Lott was close to being removed with 47.5% voting for the resolution, while 45.9% voted to remove Laurence Strauss. The other two directors had much lower votes to remove them. There were three potential new appointments with Anthony Swoboda nearest to joining the board with 44.1% voting in favour.

Wishbone Gold (WSBN) has been granted A$220,000 by the Australian government to help fund the drilling programme for the Cottesloe project in Western Australia. There have been eight priority targets identified.

In the first quarter, technology investment company SuperSeed Capital (WWW) grew its NAV by 8% to 105p a share. The share price is 80p. There is available cash of £310,000. Lower technology company valuations mean that there are plenty of opportunities for investment. Portfolio companies have raised cash at higher valuations, though. The most recent investment was in Kluster Enterprises, which is a revenue analytics and forecasting platform for scaling B2B SaaS companies.

Cadence Minerals (KDNC) ASX-listed investee company Hastings Technology Metals says that a model review supports a staged development of the Yangibana rare earths project. That will reduce upfront capital spending and provide a way to reach positive cash flow in the first quarter of 2025. Stage one investment is around $470m. The stage one post-tax NPV11 is $538m. Investee company Evergreen Lithium, which is listed on ASX and Cadence Minerals owns 8.74%, has announced the results of a geochemical programme at the Bynoe lithium project. This has extended the lithium anomalies. There are also indications of other elements.

Clarify Pharma (LON: PSYC) reported a reduced annual loss of £1.01m, due to lower admin expenses. There was £435,000 in cash at the end of November 2022, following a cash outflow of £581,000 and net investments of £508,000.

Invinity Energy Systems (IES) is supplying nine Invinity VS3 vanadium flow batteries to Orcas Power and Light in the US. Delivery is expected in the first half of 2024.

Blockchain assets investor KR1 (KR1) announced net assets of £101.2m at the end of April 2023, which is 57.03p a share. There was more than £400,000 of income generated during April. At the end of May, KR1 invested $1m in Aroma, as part of a $25m financing. Aroma is developing technology for building decentralised infrastructure and a related new operating system.

Singer Capital Markets published a new analyst report on wines producer Chapel Down Group (CDGP) and it says that it believes the recent share price decline has been due to a lack of news and it has been overdone. The broker has an estimated NAV of 38p. This year’s growing season got off to a good start. A trading update is due in July.

Cooks Coffee Company (COOK) franchise store sales were 24% ahead at £27.6m in the year to March 2023. The fastest like-for-like growth is in Ireland. Group revenues were 10% lower at £3.4m, while the net loss was £1.7m, which was due to a write down relating to the Triple Two brand cafe business. There are 91 café sites in the UK and Ireland.

Precision health company Pangenomic Health (NARA) has signed a non-binding letter of intent for a licence of the CyberPatient AI Medical Education platform. The licence will cost C$5.25m in cash and shares. This will be a perpetual special purpose licence for public health, consumer and alternative medicine.

Capital for Colleagues (CFCP) says investee company Craft Prospect has been appointed to lead the OPS-SAT Versatile Optical Laboratory for Telecoms Mission with the European Space Agency.

Oscillate (MUSH) net assets increased from £3.12m to £3.46m at the end of November 2022. There were gains of £951,000, offset by the costs of running the company and tax.

Castlenau Group has converted its £1.5m loan into Silverwood Brands (SLWD) shares at 70p each.

IamFire (FIRE) has converted £4.5m of loan notes in Community Social Investments, formerly WeShop Ltd, into 2.45 million shares, equivalent to 23.5% of the enlarged share capital. The WeShop business was sold to WeShop Holdings. Community Social Investments is effectively a shell with 8.33 million shares in WeShop Holdings.

Hydrogen Future Industries (HFI) chairman Daniel Maling bought 200,000 shares at 6.5p each, taking his stake to 2.51%.

AIM

Fox Marble Holdings (FOX) has been readmitted to AIM following the reverse takeover of Eco Buildings. The company’s name will be changed to Eco Buildings Group. The new business supplies prefabricated modular housing. The main geographic focus is the Balkans, where Fox Marble operates. North Eco, a third party, is licensing the IP for the UK market. As part of the deal there was £2.7m raised at 55p a share.

First quarter revenues of Duke Royalty (DUKE) were at a record level. Total cash revenues are around £7.5m, including the buyout premium for investee company Instor. The 0.7p a share quarterly dividend is covered by free cash flow. Net assets could be more than £155m by the end of September 2023.

Empire Metals (EEE) has confirmed that there is a giant-scale hydrothermal titanium and copper mineral system at its Pitfield project in Western Australia. The maiden drilling programme indicated a metal-rich 40km by 8km system. Titanium mineralisation is between 4% and 10% titanium oxide. There are also anomalous copper values. So far, 2% of the system has been drilled.

Energy supplier Yu Group (YU.) is trading well above expectations and Liberum has upgraded its earnings expectations by 42% to 61.1p a share – double the previous year. That is similar to the previous 2024 forecast which has been upgraded by 10% to 68.4p a share. Net cash could reach £34.9m by the end of 2023.

Cannabis-based medicines developer Celadon Pharmaceuticals (CEL) has secured a £7m credit facility. The facility lasts for two years and is being provided by a shareholder with a stake below 3%. The interest rate is 10% on the amount drawn down. Celadon Pharmaceuticals has agreed to supply £3m worth of product over three years and has expressions of interest from other potential customers – another customer could be worth more than £7m.

Oil and gas company Challenger Energy Group (CEG) has updated the market on its OFF-1 licence offshore of Uruguay and the related prospects. The prospective recoverable resources for three prospects based on the mean have been increased to 1,986mmbls. A discovery of 150-200mmbls is required to be economic. Each of the three prospects has the potential for this. Cash generated from producing wells in Trinidad can cover ongoing costs.

DP Poland (DPP) like-for-like growth has been strong in the four months to April 2023 and cost inflation is abating. Total Dominos Pizza system sales in Poland are 15% ahead with takeaway growth particularly rapid. The group loss is forecast to fall by around one-third to £900,000.

Legal services provider Gateley (GTLY) says that full year figures are in line with expectations with revenues 17% ahead. Net cash is expected to be £4.3m at the end of April 2023. Profit is expected to improve but earnings will be flat.

Digital marketing service provider Silver Bullet Data Services (SBDS) grew revenues by 53% to £5,82m in 2022, but there was a flat underlying loss before tax. The cash outflow from operating activities did fall from £7.22m to £5.14m and capitalised development spending was reduced from £1.46m to £1.1m. This meant that Silver Bullet Data Services moved into net debt of £487,000. A convertible loan note issue raised £500,000 last week. There is an 8% cash interest payment with a 4% payment in additional loan notes. The conversion price is 50p.

Origin Enterprises (OGN) is acquiring British Hardwood Tree Nursery, a supplier of bare root plants and shrubs. This enhances the environmental operations of Origin Enterprises.

Amur Minerals Corporation (AMC) went ex-dividend last Thursday ahead of the payment of the 1.8p a share special dividend. Ascent Resources (AST) subsequently bid one share for every 21 Amur Minerals shares. At an Ascent Resources share price of 3.55p, each Amur Minerals share is valued at 0.17p. Amur Minerals is considering the offer.

Edenville Energy (EDL) is raising £1.47m at 5p a share from Q Global Commodities Group, which will take its stake to 29.95%, and Gathoni Muchai Investments, which will own 20.1%. The two shareholders will also receive warrants exercisable at 35p until 25 May 2024. The cash will fund reviews of potential new and strategically complimentary projects in Africa. Jason Brewer of Gathoni Muchai Investments has been appointed as an executive director.

MAIN MARKET

Critical Minerals (CRTM) has raised £600,000 at 25p, which was a premium to the market price. Two new anomalies have been identified at the Molulu copper cobalt project in the DRC. Drilling will begin in the middle of June.

Carclo (CAR) has gained a compensation award for the cancelled healthcare order. The ten-year contract was expected to generate between £10m and £15m. The settlement is expected to “largely offset” the company’s financial exposure from early termination.

Trading in the shares of Net Zero Infrastructure (NZI) has been suspended pending the potential acquisition of LINE Hydrogen. The Australian business is a hydrogen producer.

AIM 50 Digest 2 June 2023

• BY: Andrew Hore |
• POSTED: 04/06/2023 |

Fevertree Drinks (FEVR) continues to lose market share in the UK on-trade, but US sales are growing. Profit forecasts have been trimmed, although Fevertree has reiterated its guidance of revenues between £390m and £405m. EBITDA guidance is maintained at between £36m and £42m, but the forecasts are moving towards the lower end of the range. Cost inflation remains a problem. The full year pre-tax profit forecast has been cut from £28m to £26.8m, down from £31m last year, which would mean that profit has more than halved over two years. The dividend forecast is still 16.9p a share, which is only just covered by forecast earnings.
=====
Watkin Jones (WJG) says that although institutional interest in investment in development projects is improving the company is cautious about the outcome for the year. The second half will be better than the first half, where there was a small profit, but full year pre-tax profit forecasts have been cut from £48m to £26m. There are five potential forward-fund deals, but they may not all be signed this year. The funding of the deals is also changing meaning that more of the cash will be paid at a later stage of development.
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There are signs of improvement at Victorian Plumbing (VIC). Interim revenues were 10% ahead and gross margins improved. Lower marketing spending helped to improve pre-tax profit. Own brands are becoming increasingly important. Peel Hunt forecasts a full year pre-tax profit recovery from £15.7m to £17.9m.
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Young and Co Brewery (YNGA) generated 4.8% like-for-like sales growth in the past seven weeks with the strongest growth in the most recent weeks. Trading has been particularly strong in London. In the 53 weeks to 3 April 2023, revenues rose 19% to £368.9m, while pre-tax profit was 8% higher at £45.2m. Net debt was £165.2m. Chief executive Simon Dodd bought 3,087 non-voting shares at 809.46p each.
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Impax Asset Management (IPX) interim profit was slightly below expectations and operating profit was one-fifth lower at £27.3m. Even so, the interim dividend has been held at 4.7p a share. Assets under management increased by 14% over the period to £40.1bn.
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All three divisions of aquaculture company Benchmark (BMK) improved their performance in the first half. The fastest growth was in the health division helped by growth in Ectosan Vet and Clean Treat sales. Group revenues were one-quarter ahead at £98.9m, while the underlying pre-tax profit was £9.46m.
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Mortgage markets remain tough, but Mortgage Advice Bureau (MAB1) is outperforming with maintained levels of mortgage completions. Adviser numbers have stabilised. Market share could reach 10% this year.
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Peel Hunt expects annualised recurring revenues of FD Technologies (FDP) to grow in 2023-24 by more than one-third this year. The growth is coming from the KX software business. This should enable the company to return to profit.
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ITM Power (ITM) says full year revenues will be ahead of guidance of £2m, while the EBITDA loss will be between £90m and £95m. Net cash was £281m at the end of April 2023. That is better than expected.
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Ceres Power (CWR) has set in motion its move to the premium list. The move is planned for the end of June and the company could be eligible for the FTSE 250 index. Ceres Power joined AIM on 25 November 2004 and the issue price was 120p (1200p after a ten-for-one share consolidation in August 2018)
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Pan African Resources (PAF) lowered its gold output guidance - due to power availability problems and a slower production ramp up at Barberton Mines - to around 175,000 ounces. The 2022 production was 205,459 ounces. A rise in the gold price and positive currency movements have offset some of this production disappointment. The dividend will be maintained, while debt continues to be reduced.
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In the quarter to April, self-storage sites operator Lok’nStore (LOK) improved like-for-like revenues by 13.2%. That is better than the first half figure of 11.2%. The new Bedford store has traded well. The lease of the Eastbourne store has been extended. A new managed store in Wirral has been added to the pipeline and that will open later next year.
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Big Technologies (BIG) says trading in the first four months of the financial year and Zeus believes that the tracking technology company can meet the 2023 pre-tax profit of £28.9m without signing up significant new customers. There is a potentially large contract that could lead to an upgrade to 2024 forecasts.
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Alliance Pharma (APH) is trading in line in the first four months of the year. Kelo-Cote sales are building up and growth is expected to be 20% this year. The comparatives are relatively weak.
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Ticketing technology company accesso Technology (ACSO) has agreed a $40m revolving credit facility up until May 2027. This replaces a$18m undrawn facility. The facility could fund acquisitions.
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Pantheon Resources (PANR) has still to receive the cash from the recent subscription of 8.78 million new shares at 17p each. The Alaska-focused oil and gas explorer has been awarded 39,540 acres, some of which is near to existing company acreage. 
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Central Asia Metals (CAML) non-exec Dr Gillian Davidson acquired 10,119 shares 197.5p each and fellow non-exec David Swan bought 5,000 shares at 201p each. Keywords Studios (KWS) non-exec Marion Sears acquired 1,000 shares at 2132.94p each. MP Evans (MPE) non-exec Michael Sherwin acquired 2,500 shares at 816p each. Nichols (NICL) executive chair Liz McMeikan purchased 3,000 shares at 983p each. 

Quoted Micro 29 May 2023

• BY: Andrew Hore |
• POSTED: 29/05/2023 |

AQUIS STOCK EXCHANGE

Shore Capital has updated its forecasts for Arbuthnot Banking Group (ARBB) following the recent fundraising and AGM trading statement. The benefits of interest rate rises have helped in the first four months of 2023. Loan balances are 1% higher at £2.2bn. The pre-tax profit forecast has been raised from £45m to £48.5m.

Cadence Minerals (KDNC) investee company European Metal Holdings (EMH) has gained EU approval for potential grant funding from the Just Transition Fund of €1.6bn for the 49%-owned Cinovec lithium tin project in the Czech Republic. The maximum grant could be €49m. WH Ireland estimates a fair value of 184p a share. Investee company Evergreen Lithium has identified rare earth elements at the Kenny project in Western Australia. Savings of around $28m have been identified on port refurbishment costs for the Amapa iron ore project. A loan facility has been secured for the project. The stake in Amapa will increase to 33%.

Share trading in Oscillate (MUSH) shares restarted after the suspension ended on Monday 22 May. Shareholders will be given the opportunity to vote on whether the company should continue for a further 12 months. If shareholders vote against the proposal, then they will be distributed assets. Currently cash is £1.17m and there are stakes in two Aquis companies Psych Capital (PSY) and Igraine (KING).

Hydrogen Future Industries (HFI) is buying the 49% it does not already own of HFI IP for an initial 14 million shares, with up to 20 million more shares that could be issued if milestones are achieved. The company is about to start the third phase of testing of an upgraded version of the one metre diameter wind turbine. The data will be used in the design of larger diameter wind turbines. Testing of an electrolyser has also started. Daniel Maling has become executive chairman, while David Ormerod has stepped down to a non-executive role.

Valereum (LON: VLRM) has signed an option agreement to purchase Sparta, which provides company services in Gibraltar. The services will be extended to include trust formation. The deal requires approval of the Gibraltar authorities. The consideration is £100,000.

Helium Ventures (HEV) has conditionally agreed to acquire Vestigo Technologies, which owns and distributes advanced tracking software product Trackimo. Final terms should be agreed shortly. As part of the acquisition process, Helium Ventures plans to move to the standard list and may also move to the Aquis Main Market. Trackimo has launched the NickWatch with Nickleodeon and this will help 2023 revenues grow in double digits.

Capital for Colleagues (CFCP) had an NAV of 77.78p a share at the end of February 2023, up from 68.38p a share one year earlier. There was a £1.06m gain on investments.

Seerave Enterprises has made a £350,000 strategic investment in EDX Medical (EDX) at 8p a share. The cash will be spent on cancer genomics.

Marula Mining (MARU) says the 75%-owned Kinusi copper project in Tanzania is moving towards copper ore processing activities in the second half of 2023. Final design work and costings are underway. Marula Mining is establishing a copper and graphite mining subsidiary in Kenya.

Gunsynd (GUN) investee company Omega Oil and Gas says the Canyon 1 well encountered significant gas shows from 3,506 metres down. The formation was thicker than for Canyon 2. Canyon 1 has intersected 424 metres of gas-rich zone. Gunsynd owns 450,000 shares in Omega.

IamFire (FIRE) has subscribed for a further £150,000 of convertible loan notes in WeShop Holdings. This takes the total investment to £2.85m. The conversion date has been extended to 18 May 2024.

Guanajuato Silver (GSVR) produced more than 938,000 ounces of silver equivalent in the first quarter of 2023. That was a record and the net loss declined to $8.7m.

Lift Global Ventures (LFT) says subsidiary Miriad has launched the Zaks Traders Café online channel, which broadens its investor relations services.

Tap Global Group (TAP) has appointed David Hunter as chairman. He will receive 500,000 options, exercisable at 4.5p, vesting on achievement of revenues of £4.2m by June 2024. A further 500,000 options are exercisable at the nominal share price if revenues reach £8m by June 2024. Oberon Investments (OBE) has appointed Galin Ganchev, who was formerly with Octopus Investments, as finance director.

Foresight, through Thames Ventures VCT1, has a 11.7% stake in DXS International (DXSP). This follows the recent fundraising where chairman Bob Sutcliffe raised his stake to 1.33% and chief executive David Immelman took his stake to 10.2%.

AIM

Calnex Solutions (CLX) had already warned that orders were delayed, and the full year figures were as expected. The telecoms testing equipment supplier reported a one-fifth improvement in pre-tax profit to £7.2m. There is a £19.1m cash pile even after capitalised development spending and the acquisition of iTrinegy. Pre-tax profit could fall to £4m, but cash generation remains strong. Investors were reassured.

BP Marsh (BPM) is selling its 18.7% stake in Kentro Capita, formerly Nexus Underwriting, to Brown & Brown for £51.5m, having more than quadrupled its investment. That is in line with the July 2022 valuation of the stake. That means that BP Marsh will have £55.2m of cash, which is more than two-fifths of the market capitalisation.

Eneraqua Technologies (ETP) had a bumper year to January 2023, helped by higher margin projects being moved to the fourth quarter. However, this year is set to be dominated by lower margin work for the energy and water efficiency business as social housing spending is held back. This year, pre-tax profit could fall from £10.1m to £7m, even though revenues will be higher. Margins should subsequently recover.

Oncimmune Holdings (ONC) is selling its IVD EarlyCDT Lung blood test antibody technology to US biotech Freenome for £13m. Part of the proceeds will pay down around 50% of the company’s debt and the rest will be refinanced. This enables Oncimmune to focus on the ImmunoINSIGHTS autoantibody profiling service business, where revenues are expected to double this year.

Cleaner energy technology developer Quadrise (QED) has completed the first phase of engine testing of bioMSAR fuel with biorefinery specialist Vertoro. Quadrise produced blends of bioMSAR including up to 40% of Vertoro’s crude sugar oil. When tested this fuel improved energy efficiency by 7% compared to normal diesel, reducing fuel consumption and emissions. Nitrogen oxides were reduced by up to 16% and carbon monoxide by more than 50%. Further trials are planned.

Pelatro (PTRO) reported an increased loss for 2022. The marketing business still made a bigger losds if the asset write down is excluded. Revenues fell by one-quarter to $5.4m, although it should recover to $8m this year.

Comparatives for XPFactory (XPF) are difficult because of past lockdowns. The 2022 figures were relatively free of disruption and revenues were £22.8m with a loss of £5.7m. Revenues are expected to grow to £42.6m with a pre-tax profit of £1.1m this year. Both the Escape Hunt escape room business and the Boom Battle Bar chain are trading strongly with new outlets opening. As scale grows the profit should continue to improve.

Full year figures were in line with expectations at Engage XR (EXR) and the extended reality company has already said that first quarter revenues were 40% ahead. There was Euro10.3m in the bank at the end of April. That should last well into 2025.

4basebio (4BB) announced a clinical material supply agreement with Italy-based Neomatrix to develop personalised cancer therapy utilising its hpDNA technology.  4basebio supplies synthetic DNA products and these will be provided for a neoantigen cancer vaccine programme.

MAIN MARKET

Finance provider S and U (SUS) improved profit in the first quarter. There was a small decline in receivables in the period, but they should start to build up again. There is funding headroom of £100m. The biggest profit improvement came from the Aspen property bridging loans business. Full year pre-tax profit is set to improve from £41.4m to £42.3m.

CBD products supplier Chill Brands (CHLL) has signed a deal with The Vaping Group to launch nicotine-free vapour products. UK sales of Chill Zero vapour products are expected to start in the summer. The Vaping Group has access to specialist and independent convenience stores in the UK. The UK vaping market is expected to grow to £4.5bn in 2027.

Quoted Micro 22 May 2023

• BY: Andrew Hore |
• POSTED: 21/05/2023 |

AQUIS STOCK EXCHANGE

DXS International (DXSP) says full year revenues will be slightly higher at £3.3m and there was a very small profit after tax. That is likely to be after a research and development tax credit, so there could be a pre-tax loss. Management believes that revenues can be increased substantially in the medium-term. Cash has been raised to market the newly developed software products. DXS International has raised £500,000 at 4p a share, while £131,000 of debt has been swapped for shares at the same price, which is above the market price.

Technology investment company SuperSeed Capital (WWW) had net assets of 101p a share at the end of 2022. Last year’s flotation enabled the company says there are opportunities in the software sector. The company’s fund performed well, but there are unlikely to be significant increases in investment valuations this year. However, revenues from the existing portfolio are expected to double.

Macaulay Capital (MCAP) had net assets of £1.44m, including cash of £1.19m, at the end of 2022. There was a cash outflow of £428,000. The first investment was in cakes and cereal bars maker Devonvale. There was a subsequent investment in precision engineer Camloc Motion Control. The initial investment of £700,000 will be reduced to £200,000 by selling to third parties. There are other investment opportunities.

Semper Fortis Esports (SEMP) is subscribing £250,000 for convertible loan notes in GL Membership, which trades as GoodLife+ and has Victor Chandler as one of its backers. The investee company offers monthly memberships with access to daily prize draws, plus discounts on products. There are 14,500 active members.

Asimilar Group (ASLR) is leaving AIM on 26 May and retaining the Aquis quotation. The Aquis share price rose by one-quarter to 0.75p. Chris Akers increased his stake in the technology investment company from 10.3% to 11.1%.

Equipmake Holdings (EQIP) has signed a licensing agreement with Sona Comstar, covering some of its range of drive motors and powertrains for their use in electric cars, buses and other vehicles in India and other south Asian countries. The two companies may jointly address other markets. Equipmake receives a one-off licence fee plus royalties. Production will commence in 2025.

MBH Corporation (M8H) has acquired White Arches, which supplies caravans and motorhomes, for between £7m and £8m. It already owns Robinson Caravans. White Arches generates annual revenues of £25.1m.

Guanajuato Silver (GSVR) reported drilling results from San Ignacio and Topia. Drilling at the former has shown an extension of the existing high grade area. There are also narrow veins with high grades at the Topia mine.

In the nine months to December 2022, aquaculture and offshore products company OTAQ (OTAQ) generated revenues of £2.56m and lost £2.51m. there were initial sales of geotracking technology. Net cash is £758,000.

Cannabidiol products supplier Voyager Life (VOY) increased full year revenues by 73% to £307,000. There was gross cash of £1m at the end of March 2023 with £500,000 set aside for the Polish acquisition. The full accounts should be published in August.

Vulcan Industries (VULC) has raised £25,000 at 0.75p a share.

Ananda Developments (ANA) has appointed SP Angel as corporate adviser. Four patent applications have been filed by the cannabinoid-based medicines developer.

AIM

Purplebricks (PURP) is selling its business and assets to Strike Ltd for £1 and cancelling its AIM quotation. That should leave £5.5m in cash in Purplebricks. The cash remaining after costs, which could be £2m, will be distributed to shareholders, but that won’t happen until early next year.

Canadian miner SilverCorp Metals Inc is bidding A$0.03 (1.6p) a share in cash and shares for Celsius Resources Ltd (CLA). This values the company at £30.2m. SilverCorp Metals is interested in the Makilala-Caigutan-Biyog (MCB) copper gold project in the Philippines. As part of the deal, Celsius shareholders will receive shares in a spin-off that owns the Sagay and Opuwo cobalt projects. This will be on the basis of one share in the new company for every ten Celsius shares. The new company will be quoted on ASX or AIM. Celsius joined AIM in January when it raised £2.4m at 0.8p a share.

Shoe Zone (SHOE) increased interim revenues by 8% to £75.4m even though there are fewer stores, but margins declined. Pre-tax profit fell from £3.1m to £2.5m. The interim dividend is unchanged at 2.5p a share. Net cash was still £12.9m, even after dividends and share buybacks. Full year pre-tax profit is forecast to slip from £11.2m to £8.5m.

Sustainable fuels developer Velocys (LON: VLS) intends to raise £6m in a placing at 2.5p a share and a retail offer could raise up to £500,000. An open offer could raise up to £2m more. Carbon Direct Capital is subscribing for a minimum of £12m of convertible loan stock – the conversion price is 2.5p or it could be lower if more shares are issued at a lower price. The structure of the convertible incentivises a US listing within 21 months. The cash raised will be invested in fuels projects in the UK and US and the commissioning of an Ohio manufacturing facility.

Egdon Resources (EDR) is recommending a 4.5p a share cash bid from Petrichor Partners. This values the UK-focused oil and gas company at £26.6m. Petrichor is owned by HEYCO, which provides services and capital to oil and gas projects in the US and Europe.

Xeros Technology Group (XSG) has signed a ten-year technology licence and distribution agreement with KRM Tekstil Boya, which will distribute denim processing equipment. Denim processing uses lots of water and energy and this will be reduced by this equipment. Xeros will receive a royalty on each machine sold and will supply XOrbs for the machine. The launch will be later this year.

Rurelec (RUR) is selling its Argentinian power generation interests for $5m (£4m), which will leave it as a shell. The assets had a book value of $4.76m. Sterling Trust, which owns 54% of Rurelec is in favour of the deal. There is an initial payment of £2.4m on completion. This deal will enable a 0.2p a share dividend to be paid and leave £1.14m in the company.

ImmuPharma (IMM) says that there was positive feedback from a consultation with the US FDA. This will help with the design of the phase 2/3 clinical study of the P140 treatment in chronic idiopathic demyelinating polyneuropathy. The trial could begin in the second half of 2023 and a Lupus trial could also start later in the year.

Mirada (MIRA) has set out plans to cancel its AIM quotations. The IPTV technology provider has been quoted for more than two decades, but a large shareholder with a 87.2% stake has limited liquidity and investor interest in the shares. The major lender to Mirada is also related to the main shareholder. This means that the cancellation will happen, and the shares will then be traded by JP Jenkins. That should save costs of $470,000/year.

Antibody discovery company Fusion Antibodies (FAB) has raised £1.56m at 5p a share and a REX retail offer could raise more. The retail offer closes on 22 May. The cash and cost saving measures will provide enough funds to enable Fusion Antibodies to offer its Integrated Therapeutic Antibody Service, as well as further developing the OptiMAL therapeutic antibody discovery platform.

Prospex Energy (PXEN) says the gas plant and connection to the grid have been completed for the Selva gas project in Italy. Prospex Energy has a 37% interest in Selva. There is a small increase in cost over budget. The first revenues from Selva should be generated in the near future.

MAIN MARKET

Financial management software provider Aptitude Software (APTD) is on track for a sharp rise in full year profit from £7.7m to £10.6m in 2023 thanks to higher revenues and improving margins. More clients have been signed up and there is a pipeline of potential new customers.

Ground engineering and piling business Keller (KLR) has started the year stronger than expected. A full year pre-tax profit of £100m is forecast, but there is potential for a better outcome. Weakness in US housing is being offset by growth elsewhere.

Breedon (BREE) has moved from AIM to the Main Market.

AIM 50 Digest 19 May 2023

• BY: Andrew Hore |
• POSTED: 21/05/2023 |

IQE (IQE) raised £30m at 20p a share via placing and a retail offer brought in a further £1.1m. The semiconductor wafers manufacturer is also trying to raise up to £3m more from a REX retail offer that closes at 5pm today. In 2022, group revenues grew by 9% to £167.5m, while the loss jumped from £22.2m to £75.4m. That includes £68.5m of impairment charges, up from £7.4m the previous year. Costs are being reduced and the cash will provide working capital and fund development spending on newer markets, such as power electronics and MicroLED display.
=====
CentralNic (CNIC) increased first quarter revenues to $194.9m, which is an organic growth rate of 46%. A partnership with Bing should provide further growth later this year.
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Engineering services provider Renew Holdings (RNWH) raised interim revenues by 14% to £471.8m, while earnings were 5% ahead at 27.4p a share. The interim dividend is 6% higher at 6p a share. The group order book is worth £890m.
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Keywords Solutions (KWS) is acquiring US-based Hardsuit Labs, which offers video games development services. Last year’s revenues were $11m and the maximum consideration is $15m, with $6.75m based on growth targets over two years. The company’s chairman Ross Graham died earlier this month. 
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Gamma Communications (GAMA) continues to grow in all three business areas and trading is in line with expectations. A new product focused on smaller businesses will help to convert legacy public switched telephone network data and voice services to up dated technology.
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Pantheon Resources (PANR) has raised $22m at 17p a share. This will fund the flow testing of the Alkaid#2 well in Alaska, a competent person report on the company’s oil discoveries and further development and exploration.
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Pan African Resources (PAF) believes that it can save $1.4m in year one once the Fairview solar facility at Baberton mines. Further investment in solar is planned. The company has also entered into a power purchasing agreement with Sturdee Energy. Allan Gray Proprietary has reduced its stake from 23.65% to below 21%.
=====
Jet2 (JET2) has increased its limit on non-UK national shareholders from 35% to 45%. It is currently 37%.
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Buckthorn Partners and nominee director Joe Connolly sold 7.2 million shares in Ashtead Technology (AT.) at 360p each. The remaining shareholding is 0.2%. BlackRock holds 5.16%.
=====
Ceres Power (CWR) withdrew the AGM resolutions relating to the partial disapplication of pre-emption rights for share issues because of investor concerns.
=====
Volex (VLX) has appointed Peel Hunt as nominated adviser and joint broker.

Quoted Micro 15 May 2023

• BY: Andrew Hore |
• POSTED: 14/05/2023 |

AQUIS STOCK EXCHANGE

Third quarter revenues of National Milk Records (NMR) were 15% higher at £6.5m. The core milk testing revenues were 14% ahead, helped by price rises. Genomic testing revenues more than doubled. Milk prices have fallen, but they are still relatively high. Canaccord Genuity still expects a dip in 2023 pre-tax profit from £2.4m to £1.9m.

Watchstone Group (WTG) has been unsuccessful in its £63m claim against PricewaterhouseCoopers concerning a breach of confidentiality. It is considering an appeal.

TruSpine Technologies (TSP) admitted that it failed to inform shareholders that a loan announced in February included a fixed and floating charge over the company’s IP.

KR1 (KR1) has invested $500,000 into Web3 venture studio Code and State through a Simple Agreement for Future Equity.

Cadence Minerals (KDNC) investee company Evergreen Lithium, where it owns 15.8 million shares (8.74%), has identified significant and widespread lithium at the Kenny project. A further £1.86m worth of shares could be issued to Cadence Minerals.

Goodbody Health (GDBY) shareholders have agreed to the cancellation of the Aquis quotation on 16 May. The shares will then be traded on the JP Jenkins platform.

TAP Global Group (TAP) has appointed Kriya Patel as chief executive of its main subsidiary. He is an experienced executive of e-money and financial technology businesses. He will receive five million LTIP options, plus a further 10 million LTIP options which will vest when certain milestones are achieved.

Ananda Developments (ANA) says a study suggests that cannabidiol plus terpenes has a more positive effect on acne than cannabidiol on its own.

Mark Horrocks has taken a 5.8% stake in Semper Fortis Esports (SEMP), while Chris Akers increased its stake from 19.5% to 19.6%.

Trading in Yooma Wellness Inc (YOOM) shares has been suspended until account are filed and the cease trade order is revoked.

AIM

Power Metal Resources (POW) has spun-off its Nevada mining interests into Golden Metal Resources (GMET). Power Metal Resources has retained a 62.1% stake. There was £1.98m raised at 8.5p when the company joined AIM. Trading started at 8.75p and ended the first day at 8.125p. There were 1.12 million shares traded on the first day and a total of 488,000 shares in the following two days. The share price ended the week at 8.125p. There are four assets: three wholly owned plus an earn-in option over a fourth.

Purplebricks (PURP) says that the number of new instructions did not increase in the fourth quarter and that means revenues and EBITDA will be worse than expected in the year to April 2024. The company’s payment processor is withholding a portion of remittances and cash was £9.1m at the end of April 2023, compared with previous expectations of £15m. The formal sale process continues, and management says that it wants to conclude this as soon as possible so the future of the business is clarified. Strike Ltd has decided not to make an offer.

Online builders’ merchants CMO Group (CMO) increased like-for-like 2022 revenues by 2%, but the market remains tough. In 2022, revenues increased from £76.3m to £83.1m, helped by acquisitions. Gross margins held up at 19.9% as sales of higher margin products offset the decline at Total Tiles, where there were problems with pricing. Overheads were increased following flotation on AIM and that is why operating margin dived from 3.5% to 1.5%. There was a boost of around £200,000 to operating profit due to a reduction in deferred consideration for a past acquisition. Pre-exceptionals profit fell from £1.5m to £800,000. Overheads are being reduced. Employee numbers are 15% lower than the peak last year and delivery costs are being controlled.

A&E Television Network is cancelling its contract with video editing technology developer Blackbird (BIRD) at the end of June. Last year, this contract contributed less than 10% of 2022 revenues of £2.85m. Blackbird is growing its revenues, including from licensing, but this contract loss will hold back the overall rate of growth. Blackbird has £9m in cash, down from £10m at the end of 2022.

Fulcrum Metals (FMET) is ranking targets for its Big Bear property on the Schreiber-Hemlo project in Ontario. Additional mining claims have been acquired at Winston Lake, Ontario. Results from the magnetic surveying at Tocheri Lake, Ontario, should be available early in the third quarter.

Credit hire company Anexo (ANX) reported flat 2022 pre-tax profit of £23.9m even though housing disrepair work helping to improve revenues. There were additional costs for vehicle emissions litigation against VW, which has some way to go before it is settled. A decline in pre-tax profit to £18.1m is forecast for 2023 as new credit hire business is reduced. That should help to improve cash collection and reduce debt.

Marwyn Investment Management has decided not to invest in footwear retailer Unbound Group (UBG) because of concerns about current trading. Marwyn had planned to inject £10m into the business at a placing price of 10.5p. That was the same level as the withdrawn offer from WoolOvers Group. Unbound has admitted that trading has worsened in the first quarter of the current year. Cash flow has to be carefully managed and banking covenants may have to be waived. Additional funds will be required.

Mineral sands project developer Capital Metals (CMET) has signed a potential 100% offtake and investment agreement with LB Group, which is the largest manufacturer of titanium dioxide pigments and sponge. LB Group will fully fund the Eastern Minerals project in Sri Lanka up to the estimated cost of $81m in the preliminary economic assessment. After that the joint venture will fund additional costs on a 50/50 basis. The plan is to build up production to 1.65 million tonnes per annum. Most of the due diligence for the deal has already been done.

Coal miner Bens Creek (BEN) says shareholder MBU Capital has sold a 29.9% stake at 18p a share to Singapore-based Avani Resources, which trades raw materials for steel and power production.

Brazil-focused gold producer Serabi Gold (SRB) has signed a strategic exploration alliance with Vale, which will assess large scale copper projects on the Palito Complex. There are four phases during which Vale can earn up to 90% of the project. Serabi would have a put option to sell the other 19% for $10m and a 1.5% net smelter royalty. There will be an initial $5m investment in exploration.

MAIN MARKET

Packaging manufacturer and distributor Macfarlane Group (MACF) published an AGM statement Manufacturing revenues are 14% ahead in the first quarter and distribution revenues 4% higher. There are bank facilities to finance further expansion.

LED lighting and wiring accessories supplier Luceco (LUCE) says first quarter revenues were 5% lower. There is still some destocking in the current period. Lower freight costs will help margins. Finance director Will Hoy and related parties have been acquiring shares at up to 110p each.

Quoted Micro 8 May 2023

• BY: Andrew Hore |
• POSTED: 08/05/2023 |

AQUIS STOCK EXCHANGE

Four shareholders owning a 19.4% stake have requisitioned a general meeting at TruSpine Technologies (TSP) on 31 May. They want four directors to be removed: Norman Lott, Nikunj Patel, Annabel Schild and Laurence Strauss. The only director they are not seeking to remove is Timothy Evans. They also want three nominees to be voted onto the board, which includes two of the requisitioners Peter Houghton and Todd Michael Cramer, as well as Anthony Swoboda. The board recommends voting against the resolutions. There are also disputes with the inventor of the company’s main technologies and the requisitioners talk about negotiating a new licence.

Music artist management and services provider All Things Considered Group (ATC) reported better than expected 2022 figures and managed to make a £10,000 pre-tax profit. A £300,000 loss had been expected. Stripping the deconsolidated Driift out of the figures, continuing revenues more than doubled from £4.5m to £9.45m. The share of the Driift loss will continue to hold back profit, but Canaccord Genuity forecasts a 2023 pre-tax profit of £200,00. That is on reduced revenues of £7.7m because of the deconsolidation of Driift and the one-off commission for facilitating the Napster reversal deal in 2022.

One Health Group (OHGR), which provides funded medical procedures, says results will be ahead of expectations. There was a 16% increase in patient referrals from the NHS and additional capacity is being brought on stream for weekend operations. New surgical hubs are being planned. Net cash was £3.3m at the end of March 2023.

SulNOx Group (SNOX) has diversified into the demulsification market through developing a product with Cleaner Fuel Solutions in South Africa. The new product reduces the time taken to separate water and oil from toxic waste oil.

Ananda Developments (ANA) says that the highlight of last month was the quality of the cannabis plants grown from second-generation seed genetics. They are better than the plants developed from clones. MRX1 unlicensed medicinal cannabis oil is set to be listed in three medicinal cannabis clinics.

Cadence Minerals (KDNC) says investee company Hastings Technology Metals has hired GR Engineering Services as engineering, procurement and construction contractor for the Yangibana rare earth project. The overall cost is $210m, which is lower than previously estimated. First concentrate delivery should be in the first quarter of 2025.

KR1 (KR1) had net assets of 61.29p a share at the end of March 2023. The income from digital assets was £583,000 during March.

Vulcan Industries (VULC) generated first quarter revenues of £197,000 and the loss was £383,000. The original businesses have been sold and a battery project acquired during March.

Fenikso Ltd (FNK) has received the latest payment of $614,000, which leaves the remaining loan at $49.9m. The next payment is at the beginning of June.

Semper Fortis Esports (SEMP) has changed its corporate adviser and broker to Novum Securities.

AIM

Japan Petroleum Exploration is acquiring a 49.9% stake in the Norway-based subsidiary of Longboat Energy (LBE) in return for a cash injection of $16m, plus a finance facility of $100m. There is a further contingent cash payment of $4m linked to an acquisition. If there is a discovery at Velocette then up to $30m more cash could be injected by the new partner.

Retailer Mothercare (MTC) beat the finnCap EBITDA forecast with an outcome of £6.5m-£7m in the year to March 2023. Excluding Russia, sales improved during the year. There is still destocking going on. The pension deficit has fallen to £39m and there is a full review in the autumn.

Cambridge Cognition (COG) made a small loss in 2022, but the recently acquired Winterlight Labs, which develops machine-learning based voice assessment using free-speech inputs, will significantly increase the loss this year. However, the deal enhances the company’s voice-based technology and provides cross-selling opportunities. Organic revenues are expected to grow by 10% in 2023.

Building and plumbing products distributor Lords Group Trading (LORD) reported better than forecast figures even though they were upgraded in January. The merchanting division grew like-for-like sales by 17%, more than offsetting a like-for-like dip in plumbing and heating revenues due to boiler component shortages. On top of this acquisitions helped revenues grow by 24% to £450m, while pre-tax profit improved from £12.3m to £17.4m. Profit growth is likely to be more modest this year.

Life sciences company Aptamer Group (APTA) says that potential deals are slow in converting into commercial projects and it will require more cash. In the ten months to April 2023, revenues were £1.4m and Liberum has slashed its full year forecast from £5m to £1.8m, down from £4m last year. The monthly cash outflow is £500,000 and costs are being cut. That could cut the cost base to £4.5m. Net debt is expected to be £1m at the end of June 2023 and £2.5m is estimated to be required to be raised to get the company to June 2024.

Supercapacitors designer CAP-XX (CPX) has raised £2.5m at 1.3p a share. Anthony Kongats is stepping down as chief executive, although he has subscribed for new shares. A retail offer that could have raised up to £500,000 generated £180,000. The cash will fund product development and marketing.

Graphite technology developer Versarien (VRS) is raising £532,000 at 1.25p. The cash will pay for commercialisation of products and fund working capital. More cash will be required and the fall in the share price will not help. A new strategic plan will be published in a few weeks and the mature cutting tools business may be sold.

Solgenics (SGN), formerly known as Ncondezi Energy, intends to leave AIM. Management does not feel that the quotation is effective for such a small company with a lack of liquidity, and it wants to focus on the Tete solar project. A working capital loan has been agreed in principle with directors. This represents a recovery on the initial share price decline after non-exec director Scott Fletcher acquired 31.4 million shares, taking his stake to 27.3%.

Argos Resources (ARG) also plans to leave AIM. JHI Associates will acquire the PL001 production licences in the North Falkland Basin in return for 8.47 million shares and £303,500 in cash. This would turn Argos Resources into a cash shell and requires shareholder approval. After settling with creditors, there should be eight million JHI shares to distribute to Argos Resources shareholders. Westmount Energy (WTE) owns 7.2% of JHI and it also owns one million shares in Argos Resources.

The NHS is funding the accelerated implementation of Lipid inCode, which has been developed by GENinCode (GENI). This follows a pilot programme. The funding is part of a strategy to identify one-quarter of patients with familial hypercholesterolaemia. Lipid in Code is faster than existing tests and provides additional data.

MAIN MARKET

Engineer Goodwin (GWIN) is making a tender offer for up to 180,000 shares at £48 each, which is a 25% premium to the previous market price. Qualified shareholders have a guaranteed entitlement to tender 2.34% of their shareholding if they wish to accept the tender.

Lookers (LOOK) is acquiring Chelmsford-based motor dealer Waterhouse Cars. This adds a Volvo dealership in Chelmsford and £2m will be invested in this site. Lookers also plans to invest £2.3m in its existing Colchester Volvo dealership.

National World (NWOR) has bought business information provider Insider Media. It has also acquired the Rotherham Advertiser.

AIM 50 Digest 5 May 2023

• BY: Andrew Hore |
• POSTED: 07/05/2023 |

Deutsche Bank is making a recommended bid of 339p a share for Numis Corporation (NUM), which values the AIM nominated adviser at £410m. On top of the cash bid there will be an interim dividend of 6p a share for the six months to March 2023, plus an additional dividend of 5p a share. The first dividend will be paid in June and the second dividend will be paid after the effective date of the takeover.
=====
Self-storage sites operator Lok’nStore (LOK) improved same store revenues by 11% in the six months to January 2023 through a combination of increased prices and higher occupancy rates. The interim dividend has been raised by 15% to 5.75p a share. The total dividend for the year is expected to be 19.25p a share. The sale of four sites last year has reduced the profit, but cash generation is still strong and spare borrowing facilities to finance the capital investment. There was a reduction in NAV after a revaluation where newer store growth partly offset the general market decline leaving the figure at 915p.
=====
Soft drinks maker Nichols (NICL) reported a 4.2% increase in first quarter revenues with international growth having the greatest momentum. Sales in Africa are growing. There is a continued decline in OutofHome revenues as Nichols sheds unprofitable accounts. Net cash is £55.7m. 
=====
Next 15 Group (NFG) reported better than expected results for the year to January 2023. Organic revenue growth was 21%. Underlying pre-tax profit improved from £79.3m to £112.5m.
=====
Johnson Service Group (JSG) is positive about the potential for 2023 and the AGM statement sparked a forecast upgrade. In the first four months, revenues were 22% higher at £135m. Investec has raised its 2023 pre-tax profit forecast by 4% to £39.5m as operational gearing benefits show through.
=====
Ticketing technology company accesso Technology (ACSO) has acquired Paradocs, which provides management technology for 50 ski resorts, for $10m in cash and shares. There are cross selling opportunities for existing ski resort clients. 
=====
Floorcoverings supplier Victoria (VCP) says 2022-23 figures are in line with expectations. Pre-tax profit is forecast to improve from £73.8m to £80.1m. Cost savings from acquisitions and price increases should offset the weak consumer market and net debt should be reduced from the current level of £827.5m.
=====
Subsea equipment rental company Ashtead Technology (AT.) reported maiden full year figures as a quoted company. Revenues were 31% ahead at £73.1m, including organic growth of 24%. Order levels remain strong with pricing and utilisation levels rising. That will offset inflationary pressures and the 2023 outcome is expected to be ahead of previous forecasts of pre-tax profit of £24.1m.
=====
It was always going to be difficult for CentralNic (CNIC) to continue to grow at previous rapid levels and growth is slowing. First quarter revenues were still 24% ahead and EBITDA was 15% higher at $21.3m.
=====
Construction materials supplier SigmaRoc (SRC) says that first quarter EBITDA is ahead of expectations on revenues 23% ahead. Three acquisitions have been completed this year, but the recent share issue will hold back earnings.
=====
Translation services provider RWS (RWS) grew interim revenues by 2.5% to £366.3m but underlying pre-tax profit will fall from £60.7m to £54m. Organic growth should accelerate in the second half, reflecting the additional investment in the first half that held back profit. Even so, full year profit is likely to be lower than expected. Chief executive Ian El-Mokadem bought 10,000 shares at 238.2p each and 40,000 shares at 253.8p each. Finance director Candida Davies bought an initial 20,000 shares at 241.93p each, while non-exec Frances Earl acquired an initial 3,000 shares at 251.4p each. Non-exec Christopher Lewey bought 7,885 shares at 254.88p each.
=====
Learning Technologies Group (LTG) has been hit by profit taking after another set of figures showing strong growth in revenues and profit through a combination of acquisitions and organic growth. High single digit growth in operating profit is expected, but that is lower than analyst forecasts. Finance director Kath Kearney-Croft purchased 22,932 shares at 108.91p each and her daughter bought 9,004 shares at and average of 111.4p each.
=====
Volex (VLX) has gained an order for electric vehicle power products to an automotive manufacturer. Annualised revenues from the contract should be more than $30m with full production starting in 2024.
=====
DBAY Advisers has increased its stake, which includes the Logistics Development Group (LDG) holding of 10.2%, in Alliance Pharma (APH) from 15% to 16.2%. GB Group (GBG) finance director David Ward purchased 10,000 shares at 305p each.

Quoted Micro 1 May 2023

• BY: Andrew Hore |
• POSTED: 01/05/2023 |

AQUIS STOCK EXCHANGE

Technology investment company Asimilar (ASLR) is leaving AIM, but it will retain its Aquis quotation. Trading in the shares recommenced following the publication of the latest accounts. Chris Akers raised his shareholding from 9.13% to 10.3% and that helped the share price to recover from its low during the week. At the end of September 2022, net assets were 5.53p a share. A general meeting will be held on 18 May and the AIM cancelation should happen on 26 May.

Fuel additives supplier SulNOx Group (SNOX) has received a general meeting requisition from RemNOx Ltd, which wants to remove chairman Radu Florescu and appoint three new directors. It also wants to remove chief executive Ben Richardson. RemNOx is controlled by Angela Bravo.

Four shareholders are requisitioning a general meeting at TruSpine Technologies (TSP) and they want four directors to be removed. They also want three nominees to be voted onto the board, which includes two of the requisitioners: Peter Houghton and Todd Michael Cramer.

OTAQ (OTAQ) published a nine-month update showing revenues of £2.6m up until the new year end of December 2022. There was a £300,000 EBITDA loss. There are a range of aquaculture products that are becoming ready for commercialisation. First quarter 2023 trading was in line with expectations and the outlook for the second quarter is better.

MBH Corporation (M8H) increased 2022 revenues by 31% to £142.8m, while operating profit was £3.4m, down from £5.16m. There was organic growth from all the main operating sectors.

Hydrogen Future Industries (HFI) had an interim cash outflow from operating activities of £548,000. There is £736,000 in the bank at the end of January 2023. The company has commenced prototype testing of the wind element of its hydrogen production system.

BWA Group (BWA) has appointed John Byfield and Jonathan Wearing to the board, while Alex Borelli has stepped down. High levels of rutile have been identified in samples from the Dehane 2 rutile sands project in Cameroon.

Investment company MaxRets Ventures (MAX) had net assets of £497,000 at the end of October 2022, including £411,000 in cash. Annualised running costs are £280,00. There are two cannabis-related investments and no new investments have been made in the past year.

SuperSeed Capital (WWW) has made a new investment in Kluster, an AI platform that helps clients to generate revenues.

EDX Medical (EDX) has raised £1,725m at 6p a share. Bridgemere has become the second largest shareholder with 11.6%.

PanGenomic Health (NARA) says a subsidiary has signed a definitive master service agreement with Psy Integrated Health. Patient biomarker data will be collected to assist in optimising treatments. Psy will be paid $45,000 for the initial work.

Equipmake Holdings (EQIP) has been awarded a £1.6m grant, on a matched funding basis, to help it further develop its electrification technology for electric vehicles.

Wishbone Gold (WSBN) has published exploration data for the Cottesloe project in Western Australia. This shows high grades of silver, cobalt, lead and zinc.

Marula Mining (MARU) published its quarterly activities update. This was an active quarter. There is an increasing focus on battery metals. The company is debt free.

At the end of January 2023, Kasei Holdings (KASH) had net assets of £2.05m, including cash of £473,000. Since then, £164,000 has been raised from Aalto Capital at 12p a share. However, this is less than the £500,000 expected.

Semper Fortis Esports (SEMP) raised £100,000 at 0.1p a share. This will take the cash pile up to £500,000. Costs have been brought down to a minimum.

Convertible loan notes worth £161,000 were converted into Valereum (VLRM) shares at 4.7112p a share.

AIM

Deutsche Bank is bidding 339p a share for Numis Corporation (NUM), which values the AIM nominated adviser at £410m. On top of the cash bid there will be an interim dividend of 6p a share for the six months to March 2023, plus an additional dividend of 5p a share. The first dividend will be paid in June and the second dividend will be paid after the effective date of the takeover.

Zoo Digital (ZOO) has raised £12.5m at 160p a share and a retail offer could raise up to £500,000 at the same price – it closes on 5 May. The cash will help to finance the acquisition of one of its Japanese media localisation partners from a leading technology company. This should be earnings enhancing. Management says that full year revenues will be $90m, which is lower than expected. This disappointment is due to lower margin dubbing revenues.

Fiinu Group (BANK) says a lack of money has slowed progress in gaining a full banking licence. A decision has been taken to withdraw the fintech’s licence application and reapply in a few months. Management will then focus on securing between £34m and £42m of cash. Once this is obtained the application process will be resumed. Fiinu has developed the Plugin Overdraft, which provides customers with an overdraft facility without the requirement to switch banks.

Trading conditions were tougher for Focusrite (TUNE) in the content creation market and that was only partly offset by a bounce back in the audio reproduction sector as live events returned to past levels. Group interim revenues fell from £92.9m to £86.2m, even after the inclusion of recent acquisitions. A fall in freight charges helped gross margin edge up to 47.1%. Even so, pre-tax profit fell from £16.3m to £10.9m. Net debt was £13.2m after the cost of acquisitions. The dividend was still raised from 1.85p a share to 2.1p a share.

IT training provider Northcoders (CODE) reported an 86% increase in revenues to £5.6m in 2022 and pre-tax profit jumped from £100,000 to £600,000. There was net cash of £1.7m at the end of 2022. Revenues of £6.1m are already in the order book for 2023 and the full year forecast is £9.5m. The pre-tax profit should double to £1.2m.

Management process automation software provider ActiveOps (AOM) made better gross margins on forecast revenues of £25m and a positive EBITDA in the year to March 2023. A £500,000 loss was forecast. There was £15.4m in cash at the year-end. The newly launched CaseWorkIQ software is starting to gain momentum. The full year figures will be published in July.

Smoove (SMV) says it is in bid discussions with PEXA Group. These are at an early stage but could lead to a cash bid for the online residential property services provider. Australia-based PEXA Group offers online property services through the Property Now content hub that are similar to those offered by Smoove. There is no indication of bid price.

WoolOvers Group announced on Tuesday afternoon that it will not be making a 10.5p a share bid for footwear retailer Unbound Group (UBG).

Parkmead Group (PMG) produced more condensate than expected from the LDS-01 well in the Netherlands, so the well has been temporarily shut-in to enable work to handle the greater volume. This will mean that 2022-23 pre-tax profit will be lower than expected, but still doubled at £15.1m. Longer term, the prospects appear brighter. Gas reserves appear to be greater than anticipated and the high gas price is prompting greater exploration activity.

Fire Angel Safety Technology (FA.) has been hit by supply problems and that particularly hampered sales of higher margin products. A delayed contract also held back progress. Costs have fallen but EBITDA will be below expectations in 2023. Price increases will help revenues from the second quarter onwards. Shore Capital has withdrawn its forecasts.

Iodine producer Iofina (IOF) has an increasingly attractive outlook for 2023. The iodine price remains relatively high at near to $70/kg and the new IO#9 facility should be up and running before the end of June. There are more potential sites for plants. Iodine derivatives sales are also increasing. Net income was $7.2m in 2022 and it is expected to improve to $8.1m this year.

MAIN MARKET

Mears (MER) reported 2022 pre-tax profit of £35.2m and higher than expected average net cash of £42.9m. The dividend has been increased by 31% and a £20m share buy back has been launched. The order book covers 98% of 2023 forecast revenues – pre-tax profit is likely to be flat.

Castings (CGS) has beaten forecasts for the year to March 2023. Pre-tax profit will be 8% ahead of the estimate at £16.8m. Demand from HGV manufacturers is still improving, and production inefficiencies resolved, helping the second half to be much better than expected.

Quoted Micro 24 April 2023

• BY: Andrew Hore |
• POSTED: 24/04/2023 |

AQUIS STOCK EXCHANGE

Valereum (VLRM) has sold Bitcoin mining assets to Aquis new entrant Vinanz (BTC) in return for 27.3 million shares at 3p each. This gives Valereum a 23.5% stake in Vinanz, which plans to become a Bitcoin mining company with facilities operated by third parties in the US and Canada. The company will also consider mining other cryptocurrencies. The Vinanz share price ended the week at 3.5p. There was one trade of 30,000 shares at 3.26p a share.

E-commerce technology provider Samarkand (SMK) says 2022-23 revenues will be around £17m and the loss has been reduced. VSA forecasts a small positive EBITDA in 2023-24.

SulNOx Group (SNOX) says 2022-23 revenues more than quintupled to £203,000. There was £525,000 in cash at the end of March 2023.

Equipmake Holdings (EQIP) has agreed a partnership with H55 to develop electric aircraft technology. Switzerland-based H55 will use the company’s electric motors in its two-seater electric trainer for pilot training.

In the first three months of 2023, Guanajuato Silver (GSVR) reported record quarterly silver production of 938,000 ounces equivalent. VSA forecasts full year production of 4.7 million ounces of silver equivalent.

Goodbody Health Inc (GDBY) has decided to leave Aquis and the share price slumped 44.6% to 0.9p. It also reported a fall in full year revenues from £17.1m to £10m and an increased loss of £4.9m.

Tap Global Group (TAP) has increased revenues and users since reversing into an Aquis shell earlier this year. First quarter revenues were £1.2m, compared with £250,000 in the corresponding period last year. The regulated cryptocurrency app company increased users by 30% to 144,305.

Coinsilium Group (COIN) has raised £258,000 at 1.5p a share, with warrants attached that have an exercise price of 3p.

Chris Akers has raised his stake in Semper Fortis Esports (SEMP) from 4.57% to 19.5%. The share price jumped by one-fifth to 0.15p. The April 2021 floatation price was 1p. Chapel Down Group (CDGP) finance director Rob Smith bought 407,462 shares at an average price of 34.7p, taking his stake to two million shares. Hadron Capital, which was founded by Fenikso (FNK) non-exec director Marco D’Attanasio, has acquired 1.2 million shares at 0.6p each in Fenikso.

AIM

Sureserve (SUR) is recommending a bid from Cap10 4NetZero Bidco, which is a vehicle for private equity company Cap10 Partners. The 125p a share bid values Sureserve at £214m and that is the highest share price since the company floated as Lakehouse in 2015. Cap10 believes that taking the compliance and energy services provider company private will make it easier to focus on long-term goals.

Proton therapy cancer treatment developer Advanced Oncotherapy (AVO) announced a strategic review. A Nasdaq listing is being considered, which could involve selling the business to an existing Nasdaq company. There are no current discussions and cash is running out. Management hopes to obtain additional working capital by issuing more loan notes. That could extend the company’s cash until the end of May.

Pizza restaurants franchiser DP Poland (DPP) increased first quarter like-for-like sales in Poland by 19% and in Croatia by 16%. There are signs that food inflation is easing. However, additional investment in TV marketing will mean that the company will continue to lose money in 2023.

Business process outsourcing firm iEnergizer (IBPO) plans to cancel is AIM quotation and a general meeting will be held on 16 May to gain shareholder approval. As EICR (Cyprus) owns 82.7% that is a formality. The lack of free float has hampered liquidity and the costs of the quotation outweigh any benefits. Management expects to leave AIM on 26 May. There are plans for a matched bargain facility.

Unikmind has increased its bid for cyber security software provider Kape Technologies (KAPE) from 285p to 290p ($3.60) a share and some of the vendors of past acquisitions have agreed to accept.

Property bridging loans provider Vector Capital (VCAP) reported a slightly better than expected pre-tax profit for 2022. Management, though, is being cautious about lending this year. There was a £200,000 provision for doubtful debts, but the pre-tax profit was still £100,000 better than forecast at £2.8m. The total dividend is 2.53p a share. The average loan book was 27% higher than the previous year. This year the loan book could fall because of higher standards for new lending.

Woodbois (WBI) says that the lender to its Denmark-based Woodgroup timber trading subsidiary has given notice on a $6m lending facility. The facility provided by Sydbank is fully drawn, but there is also $3.1m in cash deposits with Sydbank, which wants a refinance plan by the end of May. Premier Miton subsequently sold its 9.96% stake.

Environmental and life sciences technology company DeepVerge (DVRG) says that revenues have been incorrectly recognised. That means that the 2022 figure will be 45%-50% lower than the £17.2m previously flagged. Some of the expected revenues have been delayed while others will not be recognised. The order book is more than £10m and this will be recognised in 2023 and 2024. There is £1m in the bank and more funding will be required.

Xeros Technology (XSG) is winning new business, but cash is declining. The 2022 figures were in line with expectations and cash was £6.5m. finnCap believes that the cash should last until the second quarter of 2024. That is despite the 2023 loss forecast being increased to £4.8m. The progress of the launch of a domestic washing machine using Xeros filtration technology by a partner has been slower than hoped. Breakeven could still be achieved late in 2024.

Dekel Agri-Vision (DKL) says that the quantity and quality of raw cashew nuts acquired for its new facility are in line with expectations and the pricing is better than anticipated. Average production rates have increased to 10 tonnes/day.

Tertiary Minerals (TYM) has commenced its latest exploration programme for the Lubuila copper project in Zambia following the ending of seasonal rains.

MAIN MARKET

Interim revenues at J Smart (Contractors) (SMJ) slumped from £5.16m to £2.12m, while pre-tax profit dived from £6.33m to £260,000, although the corresponding period included a £6.06m disposal gain. The interim dividend is 0.96p. Net assets are £123.7m, but this would have been lower if there had been a property revaluation at the end of the period.

Fourth quarter revenues for kitchenware retailer ProCook Group (PROC) were 10% lower than the same time last year, with high street sales flat – a new store was opened in Kingston-upon-Thames. There was a 65% increase on the previous quarter. Full year revenues were 10% lower at £62.3m and ProCook will breakeven.

AIM 50 Digest 21 April 2023

• BY: Andrew Hore |
• POSTED: 24/04/2023 |

Revenues and profit are ahead of expectations at electricals and power connectors supplier Volex (VLX) and supply chains are getting back to normal. Cash generation has improved. Singer expects pre-tax profit to improve from $51.4m to $58.4m in the year to March 2023. A weakened US dollar means that revenues growth this year will not be fully reflected in the improvement in profit – a 2023-24 pre-tax profit of $62.7m is forecast. The share price has recovered from a 12-month low.
=====
GB Group (GBG) says that full year figures will be in line with guidance despite tougher trading conditions. Operating profit is expected to edge up to £59.8m.
=====
Watkin Jones Group (WJG) says Institutional interest in student accommodation and private rental developments is improving, but this is not happening early enough to affect the interim figures, which means that the results will be second half weighted. The interim profit could be less than one-fifth of the forecast 2023-24 pre-tax profit of £50m. Net cash is £44m.
=====
Jet2 (JET2) expects to report a profit before foreign exchange and tax of between £387m to £392m. Forward bookings remain encouraging and average load factors are expected to improve this summer. Canaccord Genuity has increased its 2023-24 pre-tax profit forecast from £334.3m to £423m. 
=====
Polar Capital (POLR) has increased total assets under management declined from £22.1bn to £19.22m, due to redemptions and market performance. During the second quarter, Impax Asset Management (IPX) improved assets under management by 6% to £40.1bn. Brooks Macdonald (BRK) increased funds under management from £16.2bn to £16.8bn in the three months to March 2023. Chief executive Richard Hughes sold 2,104 shares at 1840p each.
=====
In the year to March 2023, Tatton Asset Management (TAM) increased assets under management by 22% to £13.9bn, even though market performance reduced the figure by £400m. Net inflows averaged £148m/month during the second half.
=====
In the first quarter, Central Asia Metals (CAML) produced 3,336 tonnes of copper from the Kounrad mine, plus 4,917 tonnes of zinc concentrate and 6,618 tonnes of lead concentrate from the Sasa mine.
=====
Alaska-focused oil explorer Pantheon Resources (PANR) says that well results announced by 88Energy (88E) have confirmed its pre-drill interpretation of its own licence area. There is a data exchange between the two companies.
=====
RWS (RWS) says there was unauthorised access to a project management application. The financial impact should be minimal.
=====
Richard Griffiths has reduced his stake in IQE (IQE) from 4.47% to 3.96%. Octopus Investments has increased its stake in Ergomed (ERGO) from 9.13% to 11.5%. Serica Energy (SQZ) non-exec Jerome Schmitt bought an initial 9,100 shares at 231.4p each. Fellow non-exec David Latin acquired 15,000 shares at an average price of 236.463p each.

Quoted Micro 17 April 2023

• BY: Andrew Hore |
• POSTED: 16/04/2023 |

AQUIS STOCK EXCHANGE

PanGenomic Health (NARA) joined the Access segment on 12 April. The shares were already listed on the Canadian Stock Exchange. No new money was raised. The share price has stayed at 4.5p during the week and no trades have been reported. The Canadian share price is C$0.07 and it has fallen from C$0.25 since trading commenced last July. PanGenomic Health has three digital health platforms. NaraApp is a mobile app provides information tailored to an individual and their treatment regimen. Mindleap.com provides holistic mental wellness information and access to professional services. Mujn Diagnostics is a digital therapeutics platform. This is used by professional to access individual information from the Nara App to monitor a patient’s treatment.

After the market closed on Friday Arbuthnot Banking (ARBB) announced a £12m share issue at 925p a share. Chairman and chief executive Henry Angest will invest £6.75m of that money. The cash will be used to grow the loan book.

Goodbody Health (GDBY) is asking shareholders permission for cancelling the Aquis quotation. It has already delisted from the Canadian Stock Exchange. Management wants to reduce costs and complains that the market valuation is below NAV. The quotation on OTC QB will also not be retained.

Guanajuato Silver Company Ltd (GSVR) announced positive drilling results at the San Ignacio mine Some of the drilling has encountered high grades. There could be a new area of thick mineralisation. This will help to extend the mine life.

Invinity Energy Systems (IES) has been awarded an £11m grant from the UK government under phase 2 of the Longer Duration Storage Demonstration competition. This will deploy a 30MWh vanadium flow battery.

Cannabis supplier Ananda Developments (ANA) says preparations are underway for a medicinal cannabis flower processing facility. The MRX1 cannabidiol medical cannabis oil will be launched commercially in June and it may be used in two randomised controlled trials.

NFT Investment (NFT) has announced a general meeting on 26 May to gain shareholder approval for a proposed tender offer by April 2024. The tender will be for up to 857.1 million shares and the price will be the greater of 3.5p a share or NAV for each share.

Gunsynd (GUN) investee company Omega Oil and Gas (ASX: OMA) says initial results from the Canyon-2 well in Queensland have exceeded expectations. Cadence Minerals (KDNC) investee company Evergreen Lithium joined the ASX on 11 September. Cadence Minerals has a 8.74% stake in Evergreen Lithium and the share price nearly doubled to A$0.57 during the week.

Watchstone Group (WTG) had £11.5m in cash at the end of March 2023. NAV was 29p a share at the end of 2022.

S-Ventures (SVEN) has filed for insolvency of Lizza in Germany. Lizza was losing money when it was acquired last September. The losses are continuing, and sales have dropped. Alternative European distribution partners will need to be found. There will be a Euro1m write-off.

EPE Special Opportunities (EO.P) had an NAV of 309.57p a share at the end of March 2023.

Mark Horrocks has increased his stake in Lift Global Ventures (LFT) from 11% to 12.3%.

AIM

Spectral MD (SMD) is merging with Nasdaq-listed SPAC Rosecliff Acquisition Corp 1. The share price improved to 44p. The deal values Spectral MD at $170m, or 101p a share. In June 2021, the AIM flotation price was 59p. The AIM quotation will be cancelled. There is likely to be a $15m placing. This will provide additional cash to finance the commercialisation of the DeepView woundcare analysis technology. The transaction should complete in the third quarter.

Consumer electronic and electrical appliances retailer Marks Electrical (MRK) has beaten expectations in the fourth quarter and the full year forecast has been upgraded along with those for the following two years. Revenues in the fourth quarter to March 2023 were one-fifth higher at £24.8m and this means that full year revenues are 21% ahead at £97.8m. This has led to a 2022-23 pre-tax profit upgrade from £5.8m to £6.2m, which is still below the £6.4m reported for the previous year. Net cash is £10m.

Footwear retailer Unbound Group (UBG) has received a proposal from Marwyn Investment Management, which wants to inject £10m into the business at a placing price of 10.5p. That is the same level as the potential offer from WoolOvers Group (the offer also includes a contingent value right relating to the proceeds of an insurance claim). The shareholders would get an opportunity to invest at the same price and Unbound says it prefers the new proposal.

Womenswear retailer Sosandar (SOS) reported improving revenues and margins, although pre-tax was lower than expected in March. Full year pre-tax profit is still expected to be £1.6m and it could be more than £3m in 2023-24. More partnerships with other retailers are likely to be secured.

Currency and payment services provider Argentex (AGFX) says nine months revenues were 63% ahead at £41m, although the underlying operating profit fell from £11m to £9m. # Net cash is £26.2m. The final dividend will be 2.25p a share. The year end is being changed from March to December.

Legal services provider Ince (INCE) is appointing Quantuma as administrator after a major creditor will no longer support the business.

It does not appear that there will be anything left for shareholders when the sales of the remaining subsidiaries of MJ Hudson (MJH) are completed.

MAIN MARKET

Property investor Town Centre Securities (TOWN) has sold part of the Whitehall Riverside development in Leeds and reinvested some of the cash to acquire the 50% it does not own in build to rent company Belgravia Living. The disposal raised £13m, compared with a book value of £10m. There was £3.5m spent to acquire the rest of Belgravia Living. Along with the initial investment, the book value of Belgravia Living is £10m and the net annual rental income is £920,000.

First Tin (LON: 1SN) still had £13.8m in the bank at the end of 2022 and this is enough to pursue the development activities at the two main tin projects until the end of 2023. Progress is being made with the definitive feasibility study at Taronga in Australia. A resource statement is expected in the next couple of months. There should be a resource update for Tellerhauser in Germany by July. This project is eligible to move straight to construction and the operational permitting process. This will reduce the development timeframe by up to 18 months.

A CVA has been approved for Mode Global Holdings (MODE) subsidiary Mode Global. The winding down of trading operations is progressing.

Quoted Micro 10 April 2023

• BY: Andrew Hore |
• POSTED: 10/04/2023 |

AQUIS STOCK EXCHANGE

Aquis Exchange (AQX) has launched Aquis Equinox, which is a regulated market-grade 24/7 matching engine. Rival exchange models need to be shut down to perform resets and maintenance. Aquis Equinox will be offered via the cloud or on-premise. Chairman Glenn Collinson bought 7,500 shares at 400p each and 5,000 shares at 412p each. Chief executive Alasdair Haynes acquired 10,000 shares at 390p each.

Marula Mining (MARU) has observed high grade graphite mineralisation at Nyorinyori project in Tanzania. Results from sampling are expected in the second quarter of 2023. There have also been two major graphite prospects observed at the Bagamoyo project. Further mining licences could be added to the project. Site works at the 75%-owned Kinusi copper project are just starting and there are plans to install a copper processing plant. Brahma Finance has converted £265,000 of loan notes at 2p a share.

Invinity Energy Systems (IES) says it has delivered more than 11.4 MWh of batteries so far in 2023. There are more batteries due to be delivered to projects in Australia and California.

Gunsynd (GUN) reported a realised and unrealised loss of £305,000 in the six months to January 2023. Net assets were £3.28m, including cash of £304,000.

RentGuarantor Holdings (RGG) increased revenues by 92% in the three months to March 2023.

NFT Investments (NFT) says that its crypto assets are worth 2.77p a share at 2 April. The majority is in Bitcoin and Ethereum.

Walls and Futures REIT (WAFR) has sold Pax Homes to chief executive Joe McTaggart for £1. Pax Homes has acquired IP by issuing Walls and Futures REIT 100,000 5% preference shares redeemable on 1 April 2029. This IP was valued at £118,000.

Decentralised finance business incubator AQRU (AQRU) lost £5.94m last year and net assets fell from £12.2m to £6.56m by the end of October 2022. That includes cash of £4.84m. That was before the £2.3m invested in Streaks Gaming. The annualised cost base has been reduced by two-thirds.

TruSpine Technologies (TSP) has terminated a consultancy agreement with a company that provided the services of Frank Boehm, who was the inventor of some of the company’s spinal stabilisation systems technology. He is challenging the company’s ownership of the IP.

Several SunNOx Group (SNOX) shareholders have entered into option agreements with RemNOx over 24 million shares at 30p each. The option lasts until 29 September. That could take the RemNOx stake to 29.8%.

KR1 (KR1) says NAV was 68.22p a share at the end of February 2023, up from 30.6p a share at the end of June 2022.

Wishbone Gold (WSBN) says that it appears that the Red Setter project is a potential analogue of the 26 million plus ounce Telfer deposit 15kn north east of the project.

Oberon Investments (OBE) is raising £450,000 at 3.5p a share.

Six Capital for Colleagues (CFCP) directors and people closely associated with them have bought a total of 709,064 shares.

Trading in the shares of S-Ventures (SVEN) has been suspended because its accounts have not been published.

AIM

Reading-based Ocean Harvest Technology Group (OHT) joined AIM last week. The company produces ingredients for animal feed using seaweed. Although the business started in Ireland, the main trading business is in Vietnam. The brand name of the products is OceanFeed and there are different products for different animals. Management believes it has spent €20m on developing and commercialising these ingredient products. A placing raised £6m, or £4.5m after expenses, at 16p. That valued the company at £20.1m. In 2022, revenues grew from €2m to €3m and the loss increased from €1.46m to €2.9m.

Fadel Partners Inc (FADL) joined AIM last week and raised £7.55m at 144p a share. It provides rights and royalty management and brand compliance services. There is £4.6m set aside for boosting sales and marketing and services supporting them. There will also be funding for research and development.

Franchise Brands (FRAN) is making its largest ever acquisition and raised £92m from a share placing at 180p. This will help to finance the £200m purchase price for Pirtek Europe, plus working capital adjustment of £12.2m. Pirtek Europe provides on-site hydraulic hose replacement and other services through 213 service centres and 838 mobile service vans. There are 70 franchisees in eight countries and the company has the right to enter eight other European countries. Franchise Brands will have operations in ten countries. Forecast 2023 group revenues are £155m or £168m on a pro forma basis. Forecast 2023 group EBITDA is £29m.

Restaurants operator Fulham Shore (FUL) is recommending a 14.15p a share cash bid by Tokyo-based TORIDOLL Holdings. TThe bidder has revenues of around £1bn and already has European interests. It works with specialist private equity firm Capdesia in Europe. The takeover will enable greater expansion of the Franco Manca and The Real Greek brands.

Logistics firm Xpediator (XPD) has recommended the 42p a share bid that was initially proposed last year. The shareholders will also receive a special dividend of 2p a share.

Floorcoverings distributor Likewise Group (LIKE) continues to gain share in a tough market. First quarter revenues were 19.7% higher. Last April’s acquisition Delta Carpets was not included in the comparative period, but it is not a big business. Higher prices helped but there was significant underlying growth.

Linear generator technology developer Libertine Holdings (LIB) shares declined after management revealed delays in development work that mean that 2022-23 revenues could be up to £400,000 lower than the expected £1.32m.

Saietta Group (SED) won the largest ever order for its eDrive systems. The £5m order is for 3,000 bespoke systems based on the AFT140 motor from Nasdaq-listed urban delivery vehicles manufacturer AYRO. Saietta is exclusive supplier for the Vanish vehicle launched in February. First deliveries will be in the autumn and the full number delivered by the end of 2024.

Tungsten West (TUN) is restructuring the operations of its Hemerdon tungsten and tin project in Devon. Costs will be cut, and surplus assets sold. Concentrate already on the site will be sold. Project funding is being discussed. A convertible note issue raised £7m and an open offer could raise up to £2m.

Block Energy (BLOE) has improved its financial position, and the salary sacrifice scheme started in April 2020 has come to an end. Cash generation in building from the WR-B01Za, which is producing 274 barrels of oil/day. There is optimism about further wells.

MAIN MARKET

World Chess (CHSS) has been seeking to join the stockmarket since the end of 2019, when the business was starting to build up. It has arrived on the standard list having raised £3.04m at 6.25p a share. The share price ended the first day of trading at 6.5p (5p/8p). There were no trades reported.  World Chess has the commercial rights to chess governing body FIDE’s online chess gaming platform, the Grand Prix series, the Candidates Tournament and the FIDE World Chess Championship. The Russia-based business was sold last year.

Aura Renewable Acquisitions (ARA) got had £809,000 in cash following a £236,000 loss in 2022 – mainly down to the expenses of the flotation. That means there is around 8p a share in cash, which is a premium to the market price. The flotation price was 10p. Cash shell Aura Renewable Acquisitions is still considering its first acquisition. The directors are not taking any fees and the ongoing expenses are minimal.

AIM 50 Digest 7 April 2023

• BY: Andrew Hore |
• POSTED: 10/04/2023 |

Floorcoverings supplier James Halstead (JHD) could be a beneficiary of the UK joining the Trans-Pacific Partnership. This should reduce floorcovering tariffs to zero instead of 5%-20%. Interim revenues were 10% ahead at £149.6m, but margins fell due to delays in price increases. Pre-tax profit fell £2.2m to £23.2m, but second half profit is expected to be flat.
=====
SigmaRoc (SRC) reported better than expected 2022 figures. Pre-tax profit more than doubled to £62.7m, with revenues 98% ahead at £538m. Net debt was £194m. That was before the recent fundraising, although some of the cash has been spent. Peel Hunt increased its 2023 pre-tax profit forecast by 10% to £65m. The Swedish government has appealed against the ruling concerning a piece of land owned by SigmaRoc subsidiary Nordkalk was designated as environmentally protected. The award was £17m, adjusted for inflation and interest at the time of payment.
=====
FD Technologies (FDP) will report full year results on 23 May. Both revenues and EBITDA are ahead of expectations at £296m and £35m respectively. Net cash was £400,000 at the end of February 2023. Annualised recurring revenues of Kx software are £65m.
=====
The UK Competitions & Markets Authority is launching a phase 2 investigation into the UnitedHealth Group Inc bid for healthcare IT provider EMIS Group (EMIS). UnitedHealth had offered to sell a part of its existing business to offset the risk of investigation, but this was not deemed to solve the concerns. The two companies felt that the offer should have addressed the problems and they are considering their options.
=====
Central Asia Metals (CAML) maintained its dividend at 20p a share during 2022, even though profit fell. Cash generation is strong and there was $60.6m in the bank at the end of 2022, having repaid all debt. Net assets were reduced by a $55.1m impairment charge on the Sasa mine in North Macedonia. This year’s production guidance is 13,000-14,000 tonnes of copper, 19,000-21,000 tonnes of zinc concentrate and 27,000-29,000 tonnes of lead concentrate. That means that copper and zinc production will be lower. Non-exec director Dr Mike Armitage purchased 8,334 shares at 240p each.
=====
Big Technologies (BIG) generated organic growth of 30% in 2022. Revenues increased to £50.2m and pre-tax profit jumped from £13.7m to £21m. Net cash is £66.8m. Although revenues are forecast to increase this year, higher admin expenses mean that profit is likely to be lower.
=====
Broker Numis Corporation (NUM) says interim revenues will be 14% lower at around £64m. The advisory business had a record first half, but investment banking revenues were lower. There is no sign of a significant pick up in flotations. Trading revenues are lower.
=====
Ticketing technology company accesso Technology (ACSO) beat 2022 expectations with pre-tax profit of $12.4m, but higher costs mean that even through revenues are set to increase, pre-tax profit may fall this year.
=====
Serica Energy (SQZ) says the enlarged group’s pro forma oil and gas reserves are 130.4mmboe, up from 104mmboe at the end of 2021. There is a broadly even split between gas and oil.
=====
Mortgage Advice Bureau (MAB1) reported 2022 revenues up from £189m to £221m, while pre-tax profit improved to £27m. Market share has increased from 6.4% to 7.5% and it is continuing to rise with a 2022 exit market share of 9%. Profit is likely to be flat this year.
=====
Alaska-focused oil exploration company Pantheon Resources (PANR) says cash has fallen from $16.3m to $10.8m in the first quarter of 20923. Net debt was $16.4m at the end of 2022 and NAV was $248.2m.
=====
ITM Power (ITM) is expanding facilities at Bessemmer Park and the fitting out of laboratories will start at the end of 2023.
=====
Video games services provider Keywords Studios (KWS) is acquiring Digital Media Management for up to $100m. This business provides social media marketing services and it generated EBITDA of $8.5m in 2022.
=====
Trading is in line with expectations at engineering services provider Renew Holdings (RNWH) and it is on course to make pre-tax profit of £61.5m in the year to September 2023. The order book is still worth around £861m.
=====
DBAY Advisers has increased its stake, which includes the Logistics Development Group (LDG) holding of 9.06%, in Alliance Pharma (APH) from 9.88% to 15%. CentralNic (CNIC) non-exec Samuel Dayani reduced his shareholding by 137,168 shares at an average of just over 130p each. He still owns 5.42%. Three Smart Metering Systems (SMS) directors bought shares. Tim Mortlock bought 16,114 shares at 744.7p each, Jamie Richards acquired 3,357 shares at 744.62p each and Miriam Greenwood bought 2,728 shares at 751p each. FW Thorpe (TFW) executive director David Taylor sold 6,759 shares at 363p each.

Quoted Micro 3 April 2023

• BY: Andrew Hore |
• POSTED: 02/04/2023 |

AQUIS STOCK EXCHANGE

Aquis Stock Exchange owner Aquis Exchange (AQX) reported an increase in revenues from £17.2m to £19.9m in 2022. The pre-tax profit improved from £3.6m to £4.5m. that reflects the operational gearing. All three parts of the business were profitable. In the cash of the Aquis Stock Exchange this was probably the first time it has made a profit in any of its incarnations. This was on the back of a 48% increase in issuer fees because of the 22 new companies joining the market.

Wine maker Chapel Down Group (CDGP) increased underlying pre-tax profit by 22% to £1.7m in 2022. Singer expects this profit level to be maintained in 2023 before more than doubling to £4m by 2026. Net cash is £3.3m.  NAV is 38p a share.

Arbuthnot Banking Group (ARBB) reported better than expected 2022 results. Pre-tax profit jumped from £4.6m to £20m and the dividend was raised by 11% to 42p a share. The loan book increased by 11% to £2.2bn. NAV is 1411p a share.

Good Energy (GOOD) 2022 revenues jumped from £146m to £248.7m as energy prices increased, while the energy supplier returned to profit. There was net cash of £19m at the end of 2022. The book value of Zap-Map is £13m. Management is seeking to expand its energy efficiency services operations.

Ananda Developments (ANA) published a medicinal cannabis research round-up. The sublingual spray shows promising results in diabetes type 2 patients. There has also been progress in explaining the mechanisms of action of CBD alleviating bladder pain syndrome. Shareholders voted for the acquisition of MRX Global.

A £289,000 interim cash outflow at Tectonic Gold (TTAU) was partly offset by the £101,000 of proceeds of the sale of shares in Kazera. There was net cash of £46,000 at the end of 2022.

Visum Technologies (VIS) made an interim loss of £457,000 on revenues of £120,000. The first US location for its theme park video technology was opened in November. Debt financing has been secured for rides and attractions. Existing sites in Europa Park and Linnanmaki will reopen in April. The financial position is expected to improve.

Valereum (VLRM) has sold shares in subsidiary Valereum Collections raising £70,500 at 625p a share. Valereum retains a 99.8% stake in the company, which will operate the group’s NFT programme.  The Valereum share price dived 23.6% to 5.25p, which is a new low for the year.

KR1 (KR1) has invested $500,000 in Hydra Ventures, which supports and incubates decentralised autonomous organisations, in return for 5,000 HYDRA tokens. This is part of a $10m fundraising.

Capital for Colleagues (CFCP) had net assets of 77.78p a share at the end of February 2023. There are 13 companies in the investment portfolio. Castlefield Investment Partners has reduced its stake from 45.9% to 42.1%.

Invinity Energy Systems (IES) has made a sale of a 1.5MWh energy storage system to STS Group for a solar storage project in Hungary.

ChallengerX (CXS) had £92,000 in cash at the end of 2022, and a £250,000 subscription announced in February has yet to be received. The development of the company’s marketing platform requires more money.

RentGuarantor Holdings (RGG) has entered into an agreement with Vorensys for the use of the RentGuarantor services. Vorensys provides tenant referencing services.

CRUSHMETRIC Group Ltd (CUSH) has issued an unsecured convertible bond with a principal of S$250,000 (£151,000), which has a coupon of 10% and matures in February 2026.

SuperSeed Capital (WWW) boss Mads Jensen bought 3,000 shares at an average price of 83p each.

Shares in Asimilar (ASLR) fell ahead of the trading suspension on 3 April due to the accounts not being published in time.

AIM

Scottish gold producer Scotgold Resources (SGZ) has been hit by falling ore grades at the Cononish gold mine. The average gold grade in January was 5.65g/t. compared with an estimated grade of 7.35g/t. A different part of the mine is being developed and the production process is being changed. Shore has its forecasts under review because of concerns about the financial position of the company.

Daisy Group is making an agreed bid for ECSC (ECSC), which values the cyber security services provider at £5.4m. The bid is 54.02p for each share in cash. ECSC joined AIM at the end of 2016, when it raised £5m at 167p a share.

Cameroon-focused oil and gas company Bowleven (BLVN) had $2.45m in cash and investments at the end of 2022 and it is considering its options for raising more money. Bowleven will need cash to invest in the Etinde project, although there will not be progress there until Perenco completes the purchase of New Age’s operating interest. Bowleven’s interest in Etinde is estimated to be worth more than $150m.

Footwear retailer Unbound Group (UBG) has received a 10.5p a share potential offer from WoolOvers Group. There would also be a contingent value right that would give shareholders the proceeds of any insurance claim related to business interruptions due to Covid lockdowns. Unbound management says it would be likely to accept this offer. The recent fundraising was at 15p.

Building and architecture software supplier Eleco (ELCO) reported 2022 results that were the first 12 months of an 18-month period where the switch to a focus on SaaS is holding back revenues, which dipped 3% to £26.6m. Pre-tax profit was better than expected at £3.6m and net cash was £12.5m. The final dividend is 0.5p a share with a special dividend of 0.58p a share on top. This year’s pre-tax profit is expected to be £3.8m.

Sustainable fuels developer Velocys (VLS) has risen on the back of the latest UK government consultation paper on sustainable aviation fuel, which identifies the Fischer Tropsch process as part of the main technology. This can be supplied by Velocys, which has active projects in the UK and US.

Video games developer tinyBuild (TBLD) is investing in new games, so there has been a reduction in net cash. However, the strong back catalogue means that the business is resilient and not dependent on one game becoming a hit.

MAIN MARKET

Used car finance and property bridging loans provider S&U (SUS) reported full year results in line with expectations. In the year to January 2023, underlying pre-tax profit dipped from £47m to £41.4m, after higher bad debt provisions of £13.9m. Even so, the provision is still relatively low. Used car prices continue to rise, but at a lower rate than early last year. Net debt was £192.4m at the end of January 2023, compared with committed facilities of £210m. The dividend was raised to 133p a share.

Standard list shell Marwyn Acquisition Company II (MAC2) has appointed former Curtis Banks Group chief executive Will Self as the chief executive – pensions division. This year, AIM-quoted Curtis Banks was acquired for 350p a share in cash by Nucleus Financial Platforms, which valued the SIPP administrator at £242m. Will Self will lead the search for suitable financial services acquisitions. The strategy has been further refined to include themes including changing population demographics, intergenerational wealth transfer, social and family support and concentration of wealth.

Quoted Micro 27 March 2023

• BY: Andrew Hore |
• POSTED: 26/03/2023 |

AQUIS STOCK EXCHANGE

Brewer Shepherd Neame (SHEP) reported a 8% increase in interim revenue to £85.3m. Pre-tax profit recovered from £3m to £3.5m despite inflationary pressures. The interim dividend has been raised by 14% to 4p a share. Like-for-like own beer volume was 12.7% ahead, although total volumes were slightly lower. There was a small operating loss in this division. Like-for-like retail sales were 11.9% ahead even though food sales fell. Tenanted income was 7% higher. Retail sales and tenanted income continued to grow in the 12 weeks to 18 March, but own beer volumes have declined. Following the results, director George Barnes acquired 6,000 shares at 605p each.
British Honey Corporation (BHC) has been unable to secure additional funding and FRP Advisory has been appointed as administrator. Trading in the shares has been suspended.
Marula Mining (MARU) has appointed additional advisers for the proposed move to AIM. This includes MSA Group as technical consultant, and it will complete a competent persons report on the portfolio of battery metals projects in Africa.
NFT Investment (NFT) plans to return cash to shareholders, but not until the Bitcoin halving that is likely to take place in April 2024. Every four years the rate of Bitcoin creation halves and that tends to spark an increase in the price. This cash return would be via a tender offer to help to reduce the discount to NAV. The liquid crypto portfolio is currently worth 2.87p a share and NAV is 3.61p a share. Quarterly updates on holdings are promised.
Oscillate (MUSH) is no longer going to acquire Hi55 Ventures. There are plans to end the suspension of trading in the shares.
Macaulay Capital (MCAP) was involved in a £1.55m investment in engineering business HC 1340 Ltd in return for a 52.7% and £1.5m in loan notes redeemable in March 2029. Macaulay Capital invested £700,000, compared with the normal investment level of £200,000, and two directors also invested. There are plans to sell on £500,000 of the investment at cost. 
Crypto app company Tap Global Group (TAP) says registered users were near to 140,000 by the end of February and revenues are growing.
Adverse economic conditions meant that the NAV of EPE Special Opportunities (EO.P) fell from 456p a share to 328p a share in the 12 months to January 2023. This included £24.5m in cash after share buy backs. There are loan notes of £4m and £20.7m in zero dividend preference shares. New investments are being reviewed.
Lift Global Ventures (LFT) generated interim revenues of £150,000 and the loss was £220,000 after directors fees of £146,000. There was £1.2m in the bank and £750,000 of this was invested in Trans-Africa Energy.
Looking Glass Labs (NFTX) is selling GenZeroes Productions Inc for a promissory note for C$800,000 plus a 50% royalty on net proceeds generated by the assets. Looking Glass Labs reported a slump in interim revenues.
Fenikso Ltd (FNK), formerly Lekoil, has received a further $692,000 as partial repayment of a $51.9m loan.
Inqo Investments Ltd (INQO) has raised $1m via a convertible loan note. Up until 28 February 2024 the conversion price is a 5% discount to the market price and then a 10% discount up until 28 February 2025.
Mike Cuthbert has been appointed chairman of Oberon Investments (OBE), having previously worked at Zeus and Canaccord Genuity. Former Sanlam chief investment officer Phil Smeaton has been appointed head of investments. Fuel additives company SulNOx Group (SNOX) chief executive Ben Richardson is stepping down from the board. He is staying with the business and will focus on sales and business development. Jassem Osseiran has stepped down from the board of Semper Fortis Esports (SEMP). Lord Howard and David Young have left the board of Watchstone Group (WTG), which leaves two directors.
SuperSeed Capital Ltd (WWW) managing director Mads Jensen acquired 14,491 shares at an average price of 82p.

AIM

Zinnwald Lithium (ZNWD) rose on the back of its successful share issue at a premium to the previous market price. A total of £18.75m was raised at 10.41p a share and the share price remains lower than that. German critical metals company Advanced Metallurgical Group subscribed for a 25.1% stake. The cash will fund the definitive feasibility study of the Zinnwald lithium project in Saxony, which can supply battery markets. It is currently estimated to have a NPV8 of $1.6bn and a payback period of 3.3 years. The output could reach 17,000t/year LiOH. AMG has Europe’s first lithium hydroxide refinery at Bitterfield-Wolfen.
Cloud video editing technology developer Blackbird (BIRD) reported annual revenues increased by 38% to £2.85m. There are £3.43m of contracted revenues with £1.6m to be recognised this year. There was still £10m in the bank at the end of 2022. This means that there are no concerns about Blackbird having to raise additional cash. As long as there is no significant increase in cash outflow the cash will last for many years. The new self-service SaaS platform aimed at creators will be launched in the fourth quarter of 2022. There will be four tiers starting at $12/month. There were a total of 126,427 shares bought by chief operating and financial officer Stephen White in two tranches at 7.85p and 8p. That takes his stake to 0.15%.
Capital equipment supplier Mpac Group (MPAC) reported a fall in pre-tax profit from £8.6m to £3.5m, but this was expected. There are signs that trading is recovering and the order book of £67.2m covers nearly two-thirds of forecast revenues for 2023. Pre-tax profit could recover to £7m this year. Adam Holland will succeed Tony Steels as chief executive.
Caledonia Mining Corporation (CMCL) has raised £8.7m at 1115p a share with £2.4m more to come from a placing in Zimbabwe. The cash will be spent on accelerating work on three new gold projects in Zimbabwe. Last year, net cash generated from operating activities was $42.6m, but cash fell to $1.5m at the end of 2022 because of significant capital investment. The total dividend was increased from 50 cents a share to 56 cents a share.
Waste-to-energy technology developer and operator Eqtec (EQT) is raising £3.5m at 0.22p, with potential for a further £550,000 to be added to the total. The cash will be used on market development centres (MDC), which are used to demonstrate the company’s technology. The first MDC should open in Croatia later this year. This is part of the process to move to a licensing model. There will also be some spending on developing sustainable aviation fuel.
Financial support services provider Fintel (FNTL) improved full year revenues from £63.9m to £66.5m with the greatest growth coming in the fintech part of the business. This year has started strongly.
Safestyle UK (SFE) reported 2022 results showing a £4.4m underlying loss. The replacement windows company could return to profit this year, but there are still underlying economic concerns, high interest rates and pressure on consumer spending. This year’s pre-tax profit forecast has been cut from £3.6m to £2m.
Homeware and gifts company Portmeirion (PMP) is showing its resilience given the dependence on consumer spending. Last year, pre-tax profit improved from £7.2m to £8m. The dividend has been raised from 13p a share to 15.5p a share – three times covered by earnings - and the increase will continue to be in double digits. Shipping costs are falling and production efficiency improving, which should help to improve margins. This year pre-tax profit should exceed £9m with potential to do even better.
In The Style (ITS) shareholders voted in favour of the sale of its online retail business for £1.2m, but not enough voted for the cancellation of AIM quotation. There was 58.9% in favour of the AIM cancellation, but it required 75%. The company will change its name to Itsum and become a cash shell. However, there are still plans to wind up the company and shareholders will be distributed less than £500,000 after expenses.
Oil and gas producer Egdon Resources (EDR) increased first half production by 27% to 46,465 barrels of oil equivalent per day, while interim revenues were 47% higher at £3.73m. There was £5.52m in the bank. The full interim figures will be published on 24 April.
Galileo Resources (GLR) has received approval from South African authorities for the acquisition of Glenover Phosphate. Soil sampling at Bulawayo has highlighted a 1.5km gold anomaly. Drilling will be deferred until more sampling is completed. New discoveries have been made in the Kamativi licence area.
Africa-focused agriculture company Agriterra (LON: AGTA) raised £250,000 at 1p a share. Magister Investments is converting £206,000 of debt at the same price. The cash will be spent on purchasing cattle and working capital for operations.

MAIN MARKET

Shipbroker Braemar (BMS) had a strong year to February 2023 with revenues of at least £150m and operating profit doubled to £20m – helped by currency movements. Net cash was £6.9m at the end of February 2023 and the total dividend will be higher than expected at 12p a share.
In 2022, finance digitalisation and subscription management software provider Aptitude Software (APTD) increased revenues from £59.3m to £74.4m, but pre-tax profit declined from £9.7m to £7m due to increasing investment. Recurring revenues were £50.5m. Profit should recover this year as margins are rebuilt.
Hydrogen Utopia International (HUI) has agreed payment and terms with AIM-quoted Powerhouse Energy (PHE) for a 50/50 joint venture to develop a waste-to-heat project in Longford, Ireland. Powerhouse Energy will pay £400,000.

AIM 50 Digest 24 March 2023

• BY: Andrew Hore |
• POSTED: 26/03/2023 |

Oil palm plantations operator MP Evans (MPE) continued to benefit from a high palm oil price, although it has fallen back from its high, and increasing crops in 2022. Revenues grew from $276.6m to $326.9m, while pre-tax profit improved from $97.6m to $105.1m. The dividend of 57.4 cents a share was higher than expected. Net cash was $33.5m before the recent land acquisition. Assuming a lower average oil palm price this year, revenues and profit are likely to fall.
=====
Alliance Pharma (APH) reported a 28% decline in underlying pre-tax profit to £30.3m, but new marketing initiatives and a recovery in China augur well for 2023. There will be higher marketing costs this year and pre-tax profit is expected to bounce back to £37.1m. The focus will be on the current portfolio of consumer and prescription products. Cash generation should help net debt reduce to around £90m.
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Smart Metering Systems (SMS) increased index linked annualised recurring revenues by 13% to £97.1m, while full year group revenues increased from £108.5m to £135.5m. Underlying pre-tax profit were 21% ahead at £24.5m. Capital investment in battery projects means that SMS has moved from net cash to net debt to £31.2m.
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Fevertree Drinks (FEVR) reported a 11% rise in full year revenues to £344m. Underlying EBITDA was £39.7m and the guidance for this year is between £36m and £42m. US and European revenues increased, but UK revenues were lower even after raising selling prices.
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Keywords Studios (KWS) has a 6% market share of the video games services market. In 2022, revenues improved from Euro512m to Euro691m, while underlying pre-tax profit jumped from Euro86m to Euro112m. This year pre-tax profit is expected to grow to Euro123m.
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The bid for healthcare IT provider EMIS (EMIS) could be referred for investigation by the CMA unless undertakings can be provided to prevent the problems with competition levels.
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Pharma services provider Ergomed (ERGO) increased 2022 revenues by 22.5% to £145.3m and the order book has risen to £295m. Underlying earnings were 4% ahead at 42.6p a share. Revenues in clinical research services and pharmacovigilance both grew strongly. 
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Light fittings manufacturer FW Thorpe (TFW) increased interim revenues from £63.5m to £81.9m, including organic growth of 12%. Pre-tax profit improved from £8.5m to £10.6m. Net cash is £18.4m. The banning of the sale of fluorescent lamps will boost demand for other lighting, although second half growth will be slower because of the strong second half last year.
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Gamma Communications (GAMA) increased full year revenues by 8% to £484.6m, while pre-tax profit improved from £77.2m to £87.8m. UK and German trading was strong, although Spain was a tougher market. Net cash reached £81.3m at the end of 2022. The total dividend is 15p a share. Investment in technology and products continues. This year’s pre-tax profit is expected to be £92.5m.
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The AGM trading up date by Idox (IDOX) says that there is good visibility for 2022-23 revenues. There is also a pipeline of potential acquisitions.
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Audio visual products distributor Midwich Group (MIDW) increased revenues by 41% to £1.2bn and pre-tax profit by 42% to £45.2m as the impact of lockdowns eased. The company raised the dividend by 35% to 15p a share, although that excludes the 3p a share special dividend in the previous year. Bank facilities have been increased from £80m to £175m. Growth is expected to be faster than the market.
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Construction materials supplier SigmaRoc (SRC) subsidiary Nordkalk has succeeded in claiming compensation from the Swedish government. A piece of land was designated as environmentally protected and an award of £17m, adjusted for inflation and interest at the time of payment, as compensation for economic loss. There could be an appeal.
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Woundcare company Advanced Medical Solutions (AMS) improved revenues from £108.6m to £124.3m, helped by currency movements, but margins declined. Pre-tax profit still grew from £22m to £25.9m. The dividend was raise by 10% to 2.15p a share. This year will benefit from a contribution from Connexicon Medical.
=====
Pan African Resources (PAF) has put in place the final component of the funding package for the Mintails project. Engineering optimisation studies are being finalised and construction could start in June.
=====
Ceres Power (CWR) reported lower full year revenues of £22.1m and there was a £51.5m cash outflow from operating activities. There is still cash of £182.3m. Agreements have been signed with Bosch and Linde to validate the company’s technology. A move to a premium listing is planned.
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ITM Power (ITM) is quadrupling power supply at Bessemer Park to 30 MVA by the end of 2024. This will provide additional capacity for product testing. Three executive directors acquired more than 63,000 shares at prices between 74.86p and 79.48p.

Quoted Micro 20 March 2023

• BY: Andrew Hore |
• POSTED: 19/03/2023 |

AQUIS STOCK EXCHANGE

MBH Corporation (LON: MBH) joined the Access segment of the Aquis Stock Exchange on 13 March. The shares have previously been traded on the Frankfurt Stock Exchange and the Dusseldorf Stock Exchange. Trading started on Aquis at 7p (5p/9p) and it stayed at that price all week. There were no trades. MBH has subsidiaries in a wide variety of sectors. They include, education, construction, transport, health, engineering, property, leisure and food.

Capital for Colleagues (CFCP) is investing £1m in A ordinary shares in automotive engineering and manufacturing start-up Morris Commercial, as part of an £8m investment round. The investment is in three tranches with an initial outlay of £500,000. The full investment will be made by the end of 2023. The initial product is the Morris JE electric van, which is based on the design of the Morris J-Type van.

Quantum technology investment company Quantum Exponential Group (QBIT) welcomes the Chancellor of the Exchequer’s plan for quantum technology. There will be investment of £2.5bn over ten years. This should help to increase investor interest in quantum.

Chapel Down Group (CDGP) believes that changes to UK duties are positive, because of the support for English sparkling wine producers. Chapel Down, along with Shepherd Neame (SHEP) have signed a partnership deal with The Boat Race, which happens on 26 March.

Macaulay Capital (MCAP) has taken over the management of the unquoted portfolio of Chelverton Asset Management.

Kasei Holdings (KASH) is still waiting for £350,000 from the February 2023 fundraising. Management hopes that this cash will be received in the next few days.

Coinsilium Group (COIN) is acquiring the advisory business and certain intellectual property assets of Tokenomi for £116,500 in cash and shares. There are four retained Web3 blockchain project clients with a further ten prospective clients. Revenues could be £551,000 over the next 12 months.

IamFire (FIRE) has subscribed a further £200,000 for convertible loan notes in WeShop, taking the total invested to £2.7m. The total amount invested in WeShop is £6.7m and there is the right to subscribe for a further £1.05m of loan notes. The conversion price is 200p. John Lewis and Sports Direct have recently become affiliated to WeShop.

Altona Rare Earths (ANR) has ended trading on Aquis. Trading starts on the standard list on 20 March. Forbes Ventures left Aquis on Friday, although it intends to acquire a litigation financing business and return to the quoted arena.

Silverwood Brands (SLWD) is still experiencing opposition to the transfer of shares in skincare products supplier Lush. Silverwood Brands holds the rights to the shares even if ownership is not registered.

Ananda Developments (ANA) has raised additional subscription funds at 0.3p a share, taking the total to £427,000.

Res Privata NV has sold its 3.83% stake in NFT Investments (NFT). Mark Horrocks has increased his shareholding in Lift Global Ventures (LIFT) from 7.1% to 11%.

EDX Medical (EDX) non-executive chairman Jason Holt bought 400,000 shares at 3025p each. Incanthera (INC) chief executive Dr Simon Ward has subscribed £115,000 for shares at 6.95p each.

Guanajuato Silver Company Ltd (GSVR) has secured a $5m silver and gold pre-payment facility, which replaces the current facility.

Snacks manufacturer S-Ventures (SVEN) says the audit for its figures for the year to September 2022 will last until the end of April, so trading in the shares will be suspended on 3 April.

Essentially Group (ESSN) joined Aquis on 17 March. The brief announcement claims that the prospectus is on the company’s website, but it is impossible to find.

AIM

Hurricane Energy (HUR) has agreed a bid from Prax Exploration & Production, which values the oil and gas producer at up to £249m. There will initially be a 3.32p a share transaction dividend and cash consideration of 0.83p a share, totalling 4.15p a share. There is then a supplementary dividend of 1.87p a share. Shareholders will also receive a deferred consideration unit worth up to 6.48p a share. The deferred consideration is based on 17.5% of future net revenues earned by Hurricane between 1 March 2023 and 31 December 2026. The deferred consideration will be paid twice a year in arrears.

MTI Wireless Edge (MWE) grew revenues of each of its three divisions and two of them made a higher profit contribution. An initial contribution from communication and monitoring systems developer PSK WIND Technologies, offset the loss of Russian distribution business. In 2022, group revenues improved from $43.2m to $46.3m, while underlying pre-tax profit rose from $4.04m to $4.32m. The total dividend is 3 cents a share. Net cash was $8.14m at the end of the year. The profitability of the Antennas division is recovering.

Cloud-based secure payments technology provider PCI-PAL (PCIP) grew interim revenues by one-third to £7.3m. North American growth was particularly strong. Total annualised contract value is £14.7m. The full year loss is likely to be around £2.2m. Legal costs due to the patent dispute meant that net cash fell to £1.9m, but it has risen since December. There should be no problem with the accounts at Silicon Valley Bank.

Digital coupons and loyalty technology provider Eagle Eye (EYE) reported the expected interims and says that full year results will be better than expected. The pre-tax profit forecast has been edged up from £3.5m to £3.8m and the 2023-24 figure has been edged up to £5m. Net cash could reach £5.3m at the end of June 2023. There should not be any problems arising from the Silicon Valley Bank collapse, although there are still cash deposits in the bank.

Verditek (VDTK) has signed an exclusive supply agreement to supply solar panels to building and roofing products supplier Lindab Profil AB. They will be sold in the Nordic and eastern European markets. The exclusivity depends on the sale of panels of 850kw in 2023.

Cordel (CRDL) has won an important contract with Amtrak in the US. The six-and-a-half year contract is valued at $6.7m. There will be $1m recognised in 2022-23 and $2m in 2023-24, with rest coming in the remaining time of the contract. Cordel’s technology will be used to capture and manage data on clearances of surrounding rail infrastructure.

Redx Pharma (REDX) merger partner Jounce Therapeutics has received an unsolicited offer from Concentra Biosciences. Cancer treatments developer Redx Pharma recently announced the merger with Jounce Therapeutics and the AIM company’s shareholders would own 63% of the enlarged group.

Purplebricks (PURP) has received a possible offer from Strike Ltd, although it is not yet part of the formal sale process and has not entered into a non-disclosure agreement.

Reabold Resources (RBD) has been approached by Kamran Sattar on behalf of an affiliate of Portillion Capital which could lead to a bid at a 10% premium to the previous day’s closing price of 0.2035p. The board believes this offer undervalues the oil and gas investment company. It recently sold the Victory gas discovery to Shell and intends to return £4m to shareholders.

Circle Property (CRC) announced a return of capital through a B share issue with a second distribution to follow. The company has nearly completed the sale of its property portfolio. The first distribution of 158p a share (£46.2m) will be on 21 March. A second distribution of 58p a share should be made in April. There will be a much smaller distribution when the final disposal is completed. An incentive payment of £620,000 is being paid to each executive.

Digital mental health company Kooth (KOO) has won a significant contract in California covering 13-25 year olds. Services will be provided to the Behavioural Health Virtual Services Platform, and they will launch in January 2024. Specific terms are still to be finalised, but there should be a material impact on annualised recurring revenues from 2024.

Condor Gold (CNR) is entering the end of the first phase of the process to sell the La India gold project in Nicaragua. There are three formal expressions of interest, including two non-binding offers, with more likely to be received. The project requires $105.5m of investment and has an estimated NPV (5%) of $86.9m.

MAIN MARKET

Structural steel supplier Severfield (SFR) is expanding in Europe through the acquisition of steel fabrication company Voortman Steel Construction Holding for €24m. The Netherlands-based company will provide greater access to the northern European market.

Data integrity and banking integration software provider Gresham Technologies (GHT) is accelerating the growth of its Clareti software. Group revenues grew from £37m to £48.7m in 2022. That was helped by currency movements and a full year contribution from post-trade processing software supplier Electra, but there was still strong organic growth. The fastest growth was in the US. Pre-tax profit improved from £4m to £6.9m. Singers forecasts a 2023 pre-tax profit of £7.4m. with flat earnings due the corporation tax rate rise, increasing to £9.6m next year.

Harwood Capital has increased its stake in RM (RM.) from 8.88% to 10.4%, including 9.18% held by Rockwood Strategic (RKW). Theodore W King’s stake has risen from 7.36% to 8.25%.

Quoted Micro 13 March 2023

• BY: Andrew Hore |
• POSTED: 13/03/2023 |

AQUIS STOCK EXCHANGE

Ananda Developments (ANA) is acquiring MRX Global, which has invented a method to formulate cannabis medicines, for £2.02m in shares at 0.3p each. The first formulation is MRX1, which will be used in two phase II randomised controlled trials to investigate the effectiveness of cannabidiol in chemotherapy induced peripheral neuropathy and in patients with endometriosis. These trials have £1.55m of grant funding. Directors of Ananda are shareholders in MRX, so the deal requires shareholder approval. These directors will a 3% royalty on net sales of any commercial products sold by MRX. Ananda has raised £326,000 through a subscription at 0.3p a share and there is a broker option that could lead to the issue of 33.3 million shares at the same price. Charles Morgan has converted convertible loan notes into 747.3 million shares at 0.3p each. Charles Morgan and Melissa Sturgess will own 53.8% of the company.

Altona Rare Earths (ANR) has raised £2m at 5p a share, which is more than the £1.25m it was initially seeking. This is part of the move to the standard list on 20 March. A maiden JORC compliant mineral resource estimate and a scoping study for the Monte Muambe rare earths project in Mozambique. Altona is increasing its stake in the project from 20% to 51%.

Vulcan Industries (LON: VULC) is acquiring Forepower Lincoln (250) Ltd, which has a 240MW lithium-ion battery storage project, for £2.6m in shares at 1p each. This means that Britt Foreman of Forepower Lincoln (250) Ltd has a 29.9% stake in Vulcan. The two companies have been working together for the past year and Vulcan can help to raise the finance for the project. There are plans to raise more cash to settle liabilities of £250,000 and continue to develop the project.

Invinity Energy Systems (IES) has sold a 220KWh VS3 flow battery to Dawsongroup, following a sale earlier in the year. STS Group and project partner Ideona have been appointed to deploy Invinity Energy batteries in Hungary, primarily for co-located solar and grid support projects.

Hot Rocks Investments (HRIP) published 2021-22 figures and interim figures to September 2022 and trading in the shares was restored. Net assets are £526,000. On 3 March, cash was £70,000. Optiva has been appointed as corporate adviser.

CBD products supplier Yooma Wellness Inc (YOOM) continues to restructure its operations, but it is still trying to find a way of moving the business forward. Following the exit from many businesses, the remaining businesses are in Europe. Yooma Wellness may have to sell other businesses if additional funds are not secured.

EPE Special Opportunities (EO.P) had an NAV of 334p a share at the end of January, which was a 27% decline. The decline in the Luceco (LUCE) share price was a major factor even though this stake has been reduced in recent years. Rayware was another poor performer. Quoted shell company Epic Acquisition Corp is reviewing acquisitions. An investment in dog snacks company Denzel’s was completed in October. Investments in Atlantic Credit Opportunities Fund and Prelude Structured Alternatives Master Fund.

Guanajuato Silver Company Ltd (GSVR) says a US institutional investor has acquired 24 million shares from Great Panther Mining and its other shares were bought by other investors.

Rogue Baron (SHNJ) says Shinju premium Japanese whisky won a gold medal at the 2023 LA Invitational Wine and Spirits Challenge.

Pioneer Media (PNER) has left the Aquis Stock Exchange.

Marula Mining (MARU) has appointed Peterhouse as broker, replacing OvalX.

Music artists and events company All Things Considered (ATC) won the agent of the year award at the International Live Music Conference Gala Dinner.

Begbies Traynor has been appointed administrator to Love Hemp.

AIM

A positive trading statement by NWF (NWF) has led to a forecast upgrade for 2022-23. Peel Hunt increased its pre-tax profit forecast by 42% to £17.5m, compared with £20.9m last year thanks to a bumper year for fuel distribution. The expected downturn in fuels profitability has not been as sharp as previously thought and the food distribution and feeds divisions are also doing better than expected. Net cash of £5.5m is anticipated at the end of May 2023 and there are borrowing facilities of £65m. This leaves plenty of scope for further add-on acquisitions of fuel businesses.

Franchise Brands (FRAN) reported better than expected 2022 pre-tax profit up from £6.5m and £12.8m and it plans to sell its B2C franchise businesses. The Filta business made a 10-month contribution last year. Net cash was £8m at the end of 2022 and the B2C businesses, which could be sold separately or in one disposal, will generate more cash. The next acquisition will be in the B2B area, and it is likely to be significant.

Gelion (GELN) is acquiring Johnson Matthey’s lithium sulfur and silicon anode patent portfolio for £4.25m. This will help Gelion to increase gravimetric energy density for its batteries and enable faster commercialisation of lithium sulfur technology. Gelion plans to sell the silicon anode patents and could receive around £1.25m for them.

Data analysis technology provider WANdisco (WAND) was considering a US listing, but it has discovered accounting problems leading to a suspension of share trading.

Steel structures supplier Billington (BILN) sparked a forecast upgrade with its trading statement. Not only were 2022 profit and cash better than expected, 2023 momentum is ahead of estimates. The 2022 pre-tax profit has been upgraded from £5.3m to £5.8m, while the 2023 figure is increased by £1m to £8m. The 2022 dividend is expected to be 15p a share.

In The Style (ITS) has completed a strategic review and is proposing the sale of its operating business for £1.2m and the cancellation of the AIM quotation. The online retailer is losing money and running out of cash. The purchaser is Baaj Capital, which has other fashion-related investments, including Officers Club. Chief executive and founder Adam Frisby will continue to run the business and take a stake. The company will change its name to Itsum.

Aferian (AFRN) says customer destocking of streaming devices has hit sales and they will be significantly lower than expected for this part of the business. Streaming video services provider 24i continues to grow. There should still be a positive EBITDA this year. The annualised cost base is being reduced by $5m. Annual results to November 2022 will be delayed while discussions with banks continue over future covenant compliance. At the end of 2021, Aferian secured a $50m loan facility from three banks, including Silicon Valley Bank, which lasts until 23 December 2024. BLOE

Gold explorer Panthera Resources (PAT) has entered into a conditional arbitration funding agreement with a subsidiary of Litigation Capital Management (LIT) for the damages claim against the Republic of India for breaches of its obligations under the Australia-India bilateral investment treaty. Up to $10.5m will be provided to cover the costs of the claim.

Amur Minerals (AMC) has completed the sale of the AO Kun-Manie project in Russia to Bering Metals. The $35m consideration should be received soon. A 1.8p a share dividend is planned, and Amur Minerals will become a cash shell.

Purplebricks (PURP) has received approaches for the acquisition of the company, or its businesses and the ongoing strategic review has been widened to include a formal sale process.

MAIN MARKET

Networking and biomedical company BATM (BVC) reported a dip in full year revenues from $132.8m to $116.1m, partly due to a slump in Covid-related diagnostics income. Operating profit slumped from $11.3m to $3.7m. This was slightly better than expected. The networking and cyber division made a lower loss in 2022. There should be a recovery in revenues and profit this year. Moti Nagar has become chief executive.

Lookers (LOOK) has acquired vehicle hire and brokerage business Fourways Vehicle Solutions, which had revenues of £3.8m last year. This business could provide Lookers own rental requirements at lower cost.

Bluebird Merchant Ventures (BMV) has raised £1.22m at 2p a share to finance proof-of-concept funding at the Kochang gold and silver mine in South Korea. That is the same price as the previous placing. Production could eventually reach 5,000 ounces per annum. SI Capital has been appointed broker.

AIM 50 Digest 10 March 2023

• BY: Andrew Hore |
• POSTED: 13/03/2023 |

Soft drinks maker Nichols (NICL) revealed that Vimto International grew by 16% in 2022. The updated strategy will mean that the OutofHome division will be slimmed down, and the focus will be the packaged drinks business. In 2022, group revenues grew by 14% to £164.9m and pre-tax profit grew by a similar percentage to £25m. The dividend was increased by one-fifth to 27.7p a share. The core UK business increased revenues by 3% on the back of the strength of the Vimto brand. The benefits of the OutofHome business restructuring will show through in 2024. Singer forecasts flat 2023 pre-tax profit of £25.2m. Net cash could be £63.6m by the end of 2023. 
=====
Semiconductor wafers manufacturer IQE (IQE) says 2022 figures are in line with expectations, but weaker demand for end products means that inventory is being built up leading to reduced customer orders. Revenues are expected to decline by £30m in the first half of 2023, which is more than one-third of the total in the first half of 2022. This is a highly geared business, so there will be a large increase in the reported loss. This is a cyclical business, and the problem relates to stock levels. Longer-term prospects remain good.
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Victorian Plumbing (VIC) says revenues have grown by 10% in the first five months of the current financial year. Margins are also improving. The plumbing supplies retailer is one of the poorer preforming AIM flotations from 2021.That was because it floated at the peak of the lockdown DIY market. Ever since then, trading has been disappointing. The latest news suggests that a recovery has commenced. Victorian Plumbing’s market share is around 19%. A 20-year lease has been agreed on a new distribution centre in Lancashire. Peel Hunt forecasts a recovery in pre-tax profit from £15.7m to £17.9m, which is still well below the 2020-21 level. The interim figures will be published on 23 May.
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Digital marketing technology and services provider Dotdigital (DOTD) revenue growth accelerated in the first half, helped by currency movements. In the six months to December 2022, revenues were 9% ahead at £33.8m, but pre-tax profit fell from £8.9m to £7.7m, with investment in the team and additional marketing holding back short-term profitability. There was a slight dip in margins because of the growth in lower margin SMS. Contracted annualised recurring revenues are £51.9m, so this underpins second half revenues. Professional services income has been weaker. Average revenues per client improved from £1,422 to £1,573. Net cash reached £49.6m by the end of 2022.
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Brooks Macdonald (BRK) increased funds under management by 4% to £16.2bn through a combination of inflows and performance. Interim revenues were 5% down at £59.8m and underlying pre-tax profit was 18% lower at £14.5m. The interim dividend is 28p a share. Net cash is £38m.
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Johnson Service Group (JSG) full year figures were in line with expectations. The hotel and catering linen management business is nearly back to pre-Covid levels and workwear rental has been resilient. Revenues were 42% higher at £385.7m, while pre-tax profit improved from £9.4m to £38.2m. Cost increases have been passed on. The dividend is 2.4p a share. Regency Laundry, which focuses on four and five star hotels, was acquired for £5.75m after the year end and a new facility is planned in the South East. Chief executive Peter Egan bought 25,000 shares at 117.0659p each following the results.
=====
Benchmark (BMK) increased first quarter revenues by 36% to £54.5m with increased adoption of EctosanVet and CleanTreat health products helping. There was a small profit, compared with a loss in the first quarter of the previous year. There was an £8m cash inflow. Non-exec Yngve Myhre bought 200,000 shares at 38.35p each.
=====
Oil palm plantations operator MP Evans (MPE) has acquired additional land near to its Simpang Kiri estate at a cost of $14.3m, or $6,800/hectare. This will scale up the estate and provides scope for a new mill once yields build up. finnCap assumes a value of $20,000/hectare for the group plantations. The 2022 results will be published on 21 March.
=====
Alaska-focused oil and gas explorer Pantheon Resources (PANR) says flow rates from the Alkaid #2 well were 505 barrels/day of liquids and 2,300mcf/day of gas. The rates improved only slightly after cleaning out the well. There are investor doubts about how commercial the reservoir can be. This could hamper the terms for any farm-out. Further geological work is required.
=====
Construction materials supplier SigmaRoc (SRC) has used the cash from the recent fundraising to make two acquisitions for £12m. Belgium-based concrete plants operator Goijens Concrete Group was acquired for five times recurring average EBITDA for the years to 2020 to 2022 before cost savings. Finland-based limestone supplier Juuan Dolomiittikalkki was acquired for six times recurring average EBITDA for the years to 2020 to 2022 before cost savings.
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CentralNic (CNIC) full year results were slightly better than expected even after all of the upgrades in the past year. Revenues were $728m, while EBITDA was $86m. A maiden dividend of 1p a share was announced.
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DBAY Advisers has increased its stake, which includes the Logistics Development Group (LDG) holding, in Alliance Pharma (APH) from 8.03% to 9.88%.

Quoted Micro 6 March 2023

• BY: Andrew Hore |
• POSTED: 06/03/2023 |

AQUIS STOCK EXCHANGE

Invinity Energy Systems (IES) is repaying the remaining $2.1m of its $2.5m convertible loan facility provided by RiverFort Global Opportunities out of the proceeds of the recent placing. There is a 10% redemption premium, making the total cost £1.92m. That stops dilution by the issue of six million shares. Related warrants can be exercised at 32p a share. There are 1.35 million warrants in issue with a further 499,980 warrants to be issued.

Cadence Minerals (KDNC) says the Hastings Technology Metals share price has fallen thereby reducing the value of the stake received when Cadence Minerals swapped its 30% stake in mineral concessions in the Yangibana rare earths project. Even so, Hastings is making progress in developing the mine and ore reserves increased by one-quarter to 20.93Mt at 0.9% total rare earth oxide grade. That increases the mine life to 17 years and production could start in 2024. Shipping of iron ore concentrate from the Amapa iron ore project should recommence in the next six months.

KR1 (KR1) had a net asset value of 60.6p a share at the end of January 2023.

SuperSeed Capital Ltd (WWW) had earnings of 6p a share for the fourth quarter and NAV was 102p a share at the end of 2022.

BWA Group (BWAP) is still seeking a cash injection. Some mineral licences may become the subject of joint ventures or be sold. An issue of 5.76 million shares at 0.5p a share to directors partly settles their fees.

Good Energy (GOOD) has started a rooftop solar installation operation.

Fuel additives supplier SulNOx Group (SNOX) says RemNOx Ltd has not taken up the option to acquire a total of 24.08 million shares at 30p each from directors between 6 February and 28 February.

Quantum technology investment company Quantum Exponential Group (QBIT) appointed Stuart Woods as chief operating and strategy officer.

Fenikso Ltd (FNK), formerly Lekoil, received $665,000 as partial repayment of the loan of $51.9m. Creditors are currently more than $2m. The next payment will be out of the February oil production proceeds.

TruSpine Technologies (TSP) has still not received the promised bridge loan facility or a share subscription. A £200,000 loan has been received from a third party. This will provide working capital.

Trading in Wheelsure Holdings (WHLP) shares is suspended because the accounts for the year to August 2022 have not been issued. Talks continue concerning a cash injection.

RentGuarantor Holdings (RGG) has moved to the Apex segment of the Aquis Stock Exchange.

Phoenix Asset Management has slashed its stake in Silverwood Brands (SLWD) from 16.5% to 1%. Miton UK MicroCap Trust increased its stake in IamFire (FIRE) from 8.69% to 9.27%. William Black has taken a 6.11% stake in Western Selection (WESP).

AIM

Accrol (ACRL) has signed a licensing agreement with Unilever, which will enable the tissue products manufacturer to sell a kitchen towel product under the Lifebuoy brand. This is a brand with strong recognition among consumers. This will be a higher priced product than the products currently produced by Accrol. A new paper mill is being built.

AB Traction increased its stake in construction dispute services provider Driver (DRV) from 20.6% to 27.5%. Ruffer has sold its stake.

WH Ireland has upgraded its 2023 forecasts for LifeSafe Holdings (LIFS) after the fire safety products supplier published a full year trading statement. The 2022 revenues were £3.9m, having been £1.3m at the interim stage. US sales are accelerating. The 2023 forecast revenues have been raised from £5.5m to £6.5m with a slight reduction in the loss to £400,000.

Non-executive directors of Inland Homes (INL) have all resigned because of related party issues that they were not informed about at the relevant times. That would leave the residential property developer with one director, so Simon Bennet is staying on for a fortnight so another director can be appointed – if not the shares will be suspended. Founder Stephen Wicks is likely to return to the board. There will be further announcements about the related party issues.

Gold explorer Panthera Resources (PAT) has entered into a conditional arbitration funding agreement with a subsidiary of Litigation Capital Management (LIT) for the damages claim against the Republic of India for breaches of its obligations under the Australia-India bilateral investment treaty. Up to $10.5m will be provided to cover the costs of the claim.

Purplebricks (PURP) has received approaches for the acquisition of the company, or its businesses and the ongoing strategic review has been widened to include a formal sale process.

Hostels operator Safestay (SSTY) generated higher than expected revenues in 2022 as occupancy levels continue to rebuild and reaching 63%. Revenues were £19m, compared with a forecast of £17.9m. A small pre-tax loss is forecast with a move back to profit expected this year.

Proton therapy technology developer Advanced Oncotherapy (AVO) has secured a convertible loan note facility of £4.95m. In return, the lenders will receive a portion of the revenues generated by the proton therapy machine installed in the Harley Street Centre, capped at £2.5m each year over a ten-year period.

Healthcare services provider Totally (TLY) warns that although full year revenues will be in line with expectations increasing costs means that profit will be below forecasts. Canaccord Genuity has cut its 2022-23 pre-tax profit forecast from £5.8m to £3.8m, down from £4m the previous year. Net cash is expected to be £5.5m at the end of March 2023.

Metal Tiger (MTR) is proposing the cancellation of its AIM quotation so that it has more flexibility with its new investment strategy. A general meeting will be held on 20 March for shareholders to vote on the cancellation and the new investing policy. The company will remain listed on ASX.

MAIN MARKET

URA Holdings (URAH) has completed the acquisition of the Gravelotte emerald mine in South Africa. This used to be the largest emerald mine in the world. The mineral resource estimate is 29 million carats and there are 12 other potential targets. The consideration was £100,000 in shares at 2.5p each.

Mass Energy Developments (MED) announced successful capacity market bids from the 9MW Pyebridge synchronous gas-powered flexible generation facility of £60/Kw and £64/Kw per annum.

IQ-AI Ltd (IQAI) says that the FDA has granted orphan drug designation status for gallium maltolate for the treatment of glioblastoma multiforme brain cancer. Enrolment has started on a phase I clinical trail to evaluate safety and dosage.

Quoted Micro 27 February 2023

• BY: Andrew Hore |
• POSTED: 26/02/2023 |

AQUIS STOCK EXCHANGE

National Milk Records (NMRP) increased interim revenues by 5% to £12m, while pre-tax profit improved from £750,000 to £790,000. A tax credit meant that earnings increased by a higher percentage. Net debt is £900,000. The main growth was in the core milk testing services, although genomics revenues rose from £173,000 to £336,000. Price increases will help margins in the second half. Full year pre-tax profit is expected to decline from £2.4m to £1.9m. Managing director Andy Warne is taking leave due to illness and the finance director is assuming operational control.

There are problems with the acquisition of a 19.8% stake in skincare products supplier Lush by Silverwood Brands (SLWD) because Lush is refusing to register the change of ownership of the shares. Silverwood Brands is paying £216.8m for the stake and no reason was given for the refusal to record the transfer of the shares.

Samarkand (SMK) has benefitted from the easing of Covid restrictions in China. Although there was a short-term rise in infections, consumer confidence is improving since Chinese New Year. The Chinese government is keen to boost consumption. Partner brands using the company’s Nomad software platform are planning for growth this year and more premium beauty brands have been added to the platform. Samarkand could be profitable in the next financial year.

Invinity Energy Systems (IES) raised £21.5m at 32p a share with up for £4m more to come from a two-for-19 open offer. Taiwan-based Everbrite Technology is investing £2.5m in the placing. The cash will be used for working capital, which is expected to last until the middle of 2024. At that time the next generation Mistral grid scale vanadium battery will be ready for launch. The company will not need to draw down the $10m convertible loan facility.

In the year to October 2022, Hydro Hotel Eastbourne (HYDP) turnover improved from £2.79m to £4.4m, but pre-tax profit dipped from £457,000 to £445,000 because of the lack of government assistance. Trading remains tough. Cash improved to £1.59m.

Shore has upgraded its forecasts for Arbuthnot Banking Group (ARBB) with 2022 earnings increased by 11%. This reflects the benefits of higher interest rates with deposit rates lagging base rates. The 2022 pre-tax profit forecast is £29.5m and the 2023 forecast has been increased £28.5m to £40m. Estimated tangible NAV is 1194p a share.

Shareholders in Walls & Futures REIT (WAFR) have voted in favour of the resolutions enabling strategic investor Vengrove to raise cash for the company through a share issue. The number of shares in issue will be ten times as many as currently in issue. This will help Walls and Futures REIT scale up. Investments will be made in affordable rental housing, education property, service stations and car parks and community buildings. Pax Homes will be sold to Joseph McTaggart, so the group will no longer be a developer. The company’s name will be changed to Social Infrastructure REIT.

In the six months to November 2022, installation and engineering group Field Systems Designs Holdings (FSD) increased revenues from £2.6m to £6.7m and returned to profit in the period. Cash declined from £3.71m to £3.15m. Water companies are accelerating their spending under the current five-year programme and this provides a positive outlook for the business.

Marula Mining (MARU) has increased its stake in the Kinusi copper project in Tanzania from 49% to 75% for up to $550.000. The initial payment is $150,000 in cash and shares. There is high-grade copper mineralisation at the project.

Guanajuato Silver Company Ltd (GSVR) announced drilling results from the San Ignacio mine. There are some high-grade silver intersections plus gold. A new area of thick mineralisation may have been found. This should lead to a significant increase in resources.

Peterhouse has resigned as corporate adviser to Hot Rocks Investments (HRIP) and terms are being agreed with a replacement.

Harry Hyman increased his stake in Oberon Investments (OBE) from 3.75% to 4.23%.

Pharma C Investments (PCIL) has appointed broker Jeremy Woodgate to its board.

AIM

Cancer treatments developer Redx Pharma (REDX) is merging with Jounce Therapeutics and the AIM company’s shareholders will own 63% of the enlarged group. They will receive 0.2105 of a Jounce share for each Redx share. Jounce will be renamed Redx Inc and retain its Nasdaq listing.

Cleantech Lithium (CTL) plans a listing on the Australian Stock Exchange (ASX). Canaccord Genuity (Australia) and Fox Davies are joint lead managers to the listing, which is expected to happen in the third quarter of 2023. The Chile-focused lithium projects developer has 31% of its shareholders linked to Australia while other potential shareholders are not able to invest in other markets. The AIM quotation will be retained.

Medical disinfection products supplier Tristel (TSTL) is back to past growth rates, helped by price increases. The UK was the fastest growing market. In the six months to December 2022, revenues were 15% ahead at £17.5m and the growth rate was greater if discontinued products are excluded. Pre-tax profit improved from £2.13m to £3.08m. The tax charge is higher, so earnings growth was slower. The interim dividend is maintained at 2.62p a share. Net cash is £8.42m. Progress is being made with the FDA approval for medical device decontamination product DUO ULT. Tristel is spending £3m on FDA approval. To reflect that it has renegotiated the US distribution agreement with Parker Labs.

Engineering business Avingtrans (AVG) increased revenues from £44.5m to £50m in the six months to November 2022 and profit improved. The engineering operations have been hit by supply problems, but there is growth in nuclear and North Sea demand. There is 90% cover for the full year revenues forecast. The medical division is progressing towards the launch of a new imaging product by the end of 2023.

ZOO Digital (ZOO) has signed up a second major Hollywood studio to its cloud-based ZOOstudio ERP service offering subtitling, dubbing and other video services. ZOOstudio will be embedded in the client’s own internal technology platform. Tougher markets in the US mean that film studios and streaming platforms are seeking to grow in international markets, thereby increasing demand for the services offered by ZOO Digital.

Digital services provider Made Tech Group (MTEC) increased interim revenues by 76% to £20.6m, but pre-tax profit fell from £1m to £300,000. Singer still expects full year pre-tax profit to improve from £2.3m to £3.4m. Fewer contractors are being used and margins should rise in the second half. More than £60m of additional bookings have been gained so far in 2022-23.

Circle Property (CRC) has conditionally disposed of Concorde Park in Maidenhead for £12.3m. Somerset House in Birmingham is being sold for £15.2m and Victory House in Northampton is being sold for £2.75m That leaves one property to sell. There is already £32.6m in the bank prior to these disposals. B share issues are planned March and April to return cash to shareholders. The AIM quotation is likely to be cancelled in May.

ECR Minerals (ECR) has published drilling data from the Blue Moon prospect at Bailieston, Victoria with one of the holes at 84.9 metres depth reporting a composite grade of 6.35 metres at 4.56g/t. The rig is moving to the Brewery Lane property at Creswick.

Conroy Gold & Natural Resources (CGNR) made a high-grade gold discovery in a new area of the Longford-Down Massif. Visible gold is present. The grades are between 12.8g/t and 123g/t at the Mines Royal option area in Northern Ireland. Exploration is being carried out with joint venture partner Demir Export.

Snowfall has hit production at the Pakrut gold mine operated by China Nonferrous Gold (CNG). The Tajikistan mine has been hit by avalanches and landslides that have damaged power supply. Operations will be suspended for at least one month.

MAIN MARKET

Roquefort Therapeutics (ROQ) has signed an exclusive licence and royalty agreement with Randox Laboratories for its Midkine antibody portfolio. The ten-year licence excludes Japan and enables Randox to use the Midkine portfolio for medical diagnostics. The two firms will collaborate on potential cancer uses. Roquefort could generate more than £5m over the length of the agreement.

Trifast (TRI) chief executive Mark Belton has resigned after a disappointing trading statement. The fasteners supplier has been hit by Asian destocking. The forecast earnings for 2022-23 have been reduced by 38% to 5.1p a share.

Providence Equity is interested in making a 105p a share offer for Hyve Group (HYVE), which is a small fraction of the flotation share price.

AIM 50 Digest 24 February 2023

• BY: Andrew Hore |
• POSTED: 26/02/2023 |

Construction materials supplier SigmaRoc (SRC) raised £30m from a placing and retail offer at 54p a share, which was a premium to the then market price. Selling three assets will raise a further £9m. Management says that the money will be invested in acquisitions projects that could produce annualised pre-tax profit of £6m. Overall, the fundraising and the deals should be slightly earnings enhancing. Net debt remains high but could fall below £170m by the end of the year. The chief executive of the Nordkalk subsidiary bought 27,500 shares at 57.797p each after the placing was announced.
=====
Vet practices owner CVS Group (CVSG) grew like-for-like interim revenues by 7.5% and the pace of acquisitions has increased. Margins also increased. In the six months to December 2022, revenues increased from £273.7m to £296.3m, while underlying pre-tax profit improved from £36.2m to £41.1m. Net debt was £57.6m at the end of 2022. The new £350m bank facility leaves plenty of cash to fund other acquisitions, which may not all be in the UK. Five practices were acquired in the first half and a further three since then. Peel Hunt forecasts that full year pre-tax profit will improve from £75.2m to £82.6m.
=====
Logistics Development Group (LDG) has bought a further 5.84 million shares in Alliance Pharma (APH) at an average price of 59.11p each – a total cost of £3.45m. Logistics Development Group has a 3.46% stake. The previous purchase cost £5.92m at an average share price of 46.11p. Alliance Pharma shares at 68.3p value the stake at nearly £12.8m – a gain of £3.5m.
=====
Verification services provider GB Group (GBG) says revenues will be lower than expected in the year to March 2023. Demand has been weak in North America, particularly from cryptocurrency customers, where revenues are £15m lower. Underlying operating profit should be £60m, including a £3m foreign exchange gain. Chair Richard Longdon acquired an initial 29,876 shares at 333.3721p each. A closing statement will be published in April.
=====
Pan African Resources (PAF) reported a fall in gold production in the six months to December 2022. Production was 92,307 ounces, but full year guidance remains between 195,000 ounces and 205,000 ounces. Costs of production/ounce increased because of the lower volume.
=====
MP Evans (MPE) has commissioned a new palm oil mill at Musi Rawas, which is the sixth operated by the palm oil plantations company. This will help to improve extraction rates. Harvesting started at Musi Rawas in 2017 and the trees are maturing. 
=====
Aquaculture company Benchmark Holdings (BMK) has acquired the 10.5% minority stake in Benchmark Genetics Iceland, which supplies salmon eggs. At the AGM. shareholders voted against eliminating pre-emption rights to share issues.
=====
The GannetGE-04 well in the North Sea has commenced production at initial rates of 100,000 barrels of oil per day. This is an asset acquired by Serica Energy (SQZ) through the acquisition of Tailwind.
=====
Pantheon Resources (PANR) has cleared out the sand blockage in the Alkaid #2 well in Alaska and flow testing has recommenced.
=====
RWS Holdings (RWS) says client wins underpin the full year expectations. Some projects are due to start in the second half. The new Unitary Patent should come into operation in June.
=====
Ceres Power (CWR) says Weichai Power has launched solid oxide fuel cell using Ceres Power technology. This has been operated for more than 30,000 hours.
=====
Peel Hunt has initiated coverage of Victorian Plumbing Group (VIC) and the broker believes that the plumbing products retailer will benefit from the move to online, particularly by the trade. One-fifth of the revenues currently come from the trade. Peel Hunt forecasts mid-teens earnings growth.
=====
Polar Capital (POLR) non-exec Laura Ahto bought 500 shares at 540.16p a share. Watkin Jones (WJG) non-exec Rachel Addison acquired an initial stake of 49,693 shares at 100.1139p each.

Quoted Micro 20 February 2023

• BY: Andrew Hore |
• POSTED: 19/02/2023 |

AQUIS STOCK EXCHANGE

EDX Medical Group (EDX) acquired Torax Biosciences for the issue of 1.67 million shares at a notional 6p each. Torax provides development and pilot scale fabrication of immunochemistry-based assays and diagnostic testing services. The experienced team at Torax was an attraction.

Marula Mining (MARU) signed a co-development and relationship agreement with a subsidiary of South African mining and investment company Q Global Commodities, which had already agreed to subscribe £3.75m for shares. Q Global chief executive will become Marula Mining chairman, subject to regulatory approval and admission to AIM. Marula Mining is expanding its graphite interests through the proposed purchase of a 75% stake in ten licences comprising the Nyorinyori graphite project in Tanzania.

Electric vehicle drivetrains developer Equipmake (EQIP) reported more than halved interim revenues from £2.32m to £1.05m and the loss increased to £2.76m. There was cash of £7.44m at the end of November 2022. The contracted order book is worth £9.1m. That includes 100% of second half expected revenues as well. There have been delays in delivering vehicles to First Group, so these will be in the 2023-24 figures.

Energy supplier Good Energy (GOOD) has launched a new smart export product for Feed-in Tariff for FiT customers, which could help them to earn more from electricity they generate. There are plans for a new domestic export tariff for households in the next few months.

AQRU (AQRU) has incorporated the London Carbon Exchange and it has a wating list of investors interested in using the platform when it is launched later this year. The platform allows trading in the voluntary carbon market.

RentGuarantor Holdings (RGG) has entered a three-year agreement with X1 Property Management, a residential and student letting company, which hopes to generate secure tenants.

Digital asset investor Kasei Holdings (KASH) raised £500,000 at 12p a share from Aalto Capital. This is a 12.5% stake. ChallengerX (LON: CXS) raised £250,000 through a share issue to Aalto Capital at 0.45p a share. An equal number of warrants exercisable at 0.45p each were also issued.

Spirits company Rogue Baron (SHNJ) non-exec Charlie Wood acquired an initial 600,000 shares at 0.846p each. He also has an interest in the 1.1 million shares owned by Orana Corporate, where he owns 25%.

Hikmat El Rousstom has resigned as non-exec director of Ace Liberty & Stone (ALSP), while at British Honey Company (BHC) Sophie Guifang Luo stepped down from the board to pursue other interests.

Love Hemp (LIFE) has withdrawn from trading on the Aquis Stock Exchange as of 14 February. Trading in Pioneer Media Holdings Inc (PNER) will end on the Aquis Stock Exchange on 9 March.

AIM

Purplebricks (PURP) is launching a strategic review because the board believes the company is undervalued. The share price slumped to 7.86p, which is a new low. Changes to the estate agency business have disrupted the third quarter performance. Instruction numbers were lower than expected. Management has identified an additional £4m of annualised cost savings. There will be £1.2m of one-off costs in the second half. The full year adjusted EBITDA loss will be between £15m and £20m. It was previously expected to be around £10m.

Semiconductors designer EnSilica (ENSI) moved into operating profit in the first half and momentum has continued in the second half. A €5m contract has been won to develop a chip for the satellite communications market, which will start generating revenues in 2023-24. Interim revenues are nearly one-quarter higher at £8.59m. The growth came from design and supply. There was a pre-tax loss of £202,000, but R&D tax credits meant that there was a £322,000 profit after tax. A small full year pre-tax loss is forecast for the full year with a £844,000 post-tax profit.

Semiconductors designer Sondrel Holdings (SND) says the project design for a customer in the automotive sector has been delayed because project design will not be completed until the first quarter of this year. The payment for the first milestone was in January and the second will not be until May. The 2022 loss is higher than forecast and there will still be a small loss in 2023.

Esports company Gfinity (GFIN) raised £2m at 0.15p a share, having originally sought £1.5m. The cash should last for 12 months. Technology platform Athlos still requires a strategic partner and there is enough funding for this for around four months. If not, then it could affect the restructuring and other plans for the rest of the business. At 0.1575p, down 33%, the current share capital is valued at Gfinity at £2.1m. Each placing share comes with a warrant to subscribe for one share at 0.15p and these warrants are exercisable between six and 18 months after the placing shares are admitted to AIM.

Fertiliser producer Harvest Minerals (HMI) had cash of A$2.72m at the end of 2022. Sales of KPFertil are growing and that has enabled the repayment of A$1.2m of debt. A court ruling requires Agrocerrado to pay $463,000, because it failed to acquire the minimum tonnes of KPFertil required by the agreement between the companies.

Medical devices developer Creo Medical (CREO) raised £28.5m from the placing at 20p a share, which was more than the £25m initially targeted. The cash will be used for further development and commercialisation of Creo Medical’s minimally invasive electrosurgical devices. With up to £5.2m more to come from the open offer, Cenkos believe that this is enough cash to fully commercialise the current product portfolio. Revenues of £100m are forecast by 2027.

Clontarf Energy (CLON) is forming a joint venture with US-based NEXT-ChemX Corporation, which covers the deployment and marketing of the latter’s direct lithium ion extraction technology in Bolivia. There is limited water and energy consumption with this technology. The share price soared by 129% to 0.172p. Pilot testing and extraction starts in March. Clontarf Energy will contribute $500,000 towards the pilot plant for exclusive use of the technology. There will also be share issues to NEXT-ChemX.

Promotional goods supplier software platform provider Altitude (ALT) says results for the year to March 2023 will be much better than expected. Zeus has upgraded its pre-tax profit forecast from £500,000 to £800,000 and that is the second upgrade in three months.

Deferral of contracts by clients has led to forecast downgrades for Jaywing (JWNG) and 2022-23 pre-tax profit expectations have been more than halved to £1m, while next year’s forecast has been slashed from £3.7m to £2m. The digital marketing services provider won an Australian online education services contract which will help to offset some of the decline in forecast revenues in 2023-24.

Mkango Resources (MKA) raised £3.5m at 12.5p and this will fund further development of the Songwe Hill rare earths project. Talks with potential funders for the project continue. Mkango Resources will also provide a €2.5m loan facility in HyProMag, which is developing a rare earth recycling production facility in Baden-Wurttemberg. The company’s stake in HyProMag could increase to 66.8%. Chief executive William Dawes acquired 400,000 shares at 12.95p each and 400,000 shares at 12.75p each. He owns 4.42%

WH Ireland has reduced its forecasts for SaaS-based retail software provider itim Group (ITIM) because of contract delays. Revenues for 2022 will be slightly below previous forecasts and that increases the loss by £200,000 to £1.1m. The 2023 loss is expected to be the same. Annualised recurring revenues are £13m, which is lower than expected. Net cash is £3.9m.

Mark Horrocks has increased his stake in cloud-based international payments services provider Cornerstone FS (CSFS) from 8.66% to 13.4%.

Dekel Agri-Vision (DKL) achieved record local process for its crude palm oil in January and there were strong extraction rates from the fruit bunches. However, there were disappointing volumes because of aggressive rival bidding for fruit bunches, although this has eased this month. There no changes to 2023 expectations of a sharp rise in profit.

MAIN MARKET

The ignominious life of Hawkwing (HNG) as a quoted company appears to be coming to an end. Kroll Advisory has been appointed administrator to the company. Hanover Investment Management demanded repayment of £2.2m relating to a convertible loan note. Hawkwing is owed £13.7m plus interest and add-ons by IFG (SPP), where liquidators have been appointed. This is secured on two subsidiaries and their assets, but it is uncertain how much can be clawed back. The cash shell was formerly sports representation and marketing company TLA Worldwide, a past AIM embarrassment which released a profit warning after the market had closed for Christmas.

Zamaz (ZAMZ) has acquired Dallatte Italia, a manufacturer of dairy products. This fits with the Bella Dispensa subsidiary and its Made in Italy ecommerce service. Management wants to change the terms of its bonds by extending their life and increasing the interest rate.

Trading in Net Zero Infrastructure (NZI) shares recommenced last week following publication of accounts and interim figures. The share price fell from 2.2p to 1.55p.

RC365 Holding (RCGH) intends to issue 18 million shares to Hatcher Group Ltd and in return it will receive 38.64 million shares in Hatcher Group. The two firms will collaborate in research and development of smart algorithm technology and other fintech services.

Quoted Micro 13 February 2023

• BY: Andrew Hore |
• POSTED: 13/02/2023 |

AQUIS STOCK EXCHANGE

Hemp and cannabinoid products supplier Yooma Wellness (YOOM) is restructuring its business due to the depressed market conditions. Unprofitable activities have been wound down and management is still trying to come up with a new strategy. The 2021 Vertex acquisition is being handed back to the sellers and $1.2m in receivables has been assigned to them. The subsidiary in France is filing for a bankruptcy procedure. Yooma Wellness requires more cash and other operations may need to be sold. If not, then there could be insolvency proceedings.

Love Hemp (LIFE) has appointed administrators. Secured creditors have issued a notice of default requiring repayment of the £1.92m debt facility. Sales have slumped and a dispute with former managing director Philip Small has not helped.

Walls and Futures REIT (WAFR) is holding a general meeting on 23 February so that strategic investor Vengrove can raise cash for the company through a share issue. The number of shares in issue will be ten times as many as currently in issue. This will help Walls and Futures REIT scale up. Vengrove SI-REIT Advisors will become manager of the portfolio of assets. Pax Homes will be sold to Joseph McTaggart, so the group will no longer be a developer. Investments will be made in affordable rental housing, education property, service stations and car parks and community buildings. A portfolio of assets has been identified. The company’s name will be changed to Social Infrastructure REIT.

Music artist management and services provider All Things Considered (ATC) is estimated to have generated revenues of £11m in 2022 and the loss should be slashed from £2.7m to £300,000. Increased touring by music artists helped the business to recover. The company could breakeven in 2023.

Emissions reducing fuel ingredients supplier SulNOx Group (SNOX) finance director Steven Cowin has given notice and will leave the board at the end of March 2023. Four directors have option agreements with 6% shareholder RemNOx Ltd, which would enable it to acquire a total of 24.08 million shares at 30p each between 6 February and 28 February. That would mean that RemNOx would own 29.9% of SulNOx.

EPE Special Opportunities Ltd (EO.P) had cash of £24.5m at the end of January 2023. NAV was 334p a share, down from 456p a share. The share price recovered 5.71% to 185p. The Luceco (LUCE) share price decline was part of the reason. The company bought back 5.4% of its share capital at an average price of 139p/share. A £2m investment was made in premium dog snacks maker Denzel’s Ltd.

There are further delays in the provision of the £200,000 bridge loan to TruSpine Technologies (LON: TSP).

Newbury Racecourse (NYR) is raising its prize money by 16% to £6.06m in the 2023 season. Chairman Dominic Burke bought 6,250 shares at 815p each, taking his stake to 6.42%.

Res Privata NV took a 3.83% stake in NFT Investments (NFT).

Oberon Investments (OBE) appointed Paul Sheehan to its investment management team.

Greencare Capital has changed its name to MaxRets Ventures (MAX).

Marula Mining (MARU) appointed PWC Kenya as advisor to its East Africa activities.

AIM

Managed IT and networking services provider AdEPT Technology (ADT) is being acquired by a private equity backed Wavenet, which also provides telecom services. The 201p a share bid is a 75% premium to the previous market price it is still well below past levels. However, shareholders will not get the 2.5p a share interim dividend. The bid values AdEPT Technology at £50.3m.

Hardide (HDD) revenues grew 39% to £5m with the prospect of another sharp increase this year. The advanced coatings company continues to broaden its sector and customer base in areas such as renewable energy. Hardide is expected to continue to be loss making but the cash outflow will reduce. There is enough cash following the sale and leaseback of the US facility for the immediate requirements of Hardide.

Communications sub-systems manufacturer Filtronic (FTC) has been hit by component shortages that held back progress in the first half and this will continue in the second half. The order book is worth £17m, which is more than the 2022-23 forecast revenues of £16.5m. A small pre-tax profit is expected for the full year and there should be a sharp recovery in profit as supply problems ease next year.

Alumasc (ALU) interim revenues were 5% ahead at £45 million, pre-tax profit fell 11% to £5.6 million. The corresponding period included high margin Chap Lap Kok airport project work for the water management division and the phasing of projects hit the latest figures. The figures exclude the loss making Levolux business, which has been sold. Management indicated its confidence in the future with the 1.5% increase in the interim dividend to 3.4p a share. The second half will be stronger than the first half, but pre-tax profit is expected to decline from £12.7m to £11.3m.

Songtradr Inc launched an agreed bid for music streaming technology developer 7digital Group (7DIG) and the 0.695p a share offer values the company at £19.4m. The share has not been at this level since September 2021. Songtradr is a music licensing company with a platform and technology that connects music rights holders to brands and content creators.

Clinical communications technology developer Feedback (FDBK) revenues are still modest, but they increased by 222% to £576,000. The £450,000 contract with a Sussex community diagnostic centre made a contribution to these revenues and is up for renewal. The new contract should be worth much more when it is renewed. This pilot project will help to show other potential clients that the technology works. Other NHS trusts are showing interest in the company’s services. There was cash of £9.23m at the end of November 2022, so Feedback can finance further development and cover losses.

WH Ireland cut its forecast for SaaS-based retail software provider itim Group (ITIM) because contract delays mean that revenues will be slower coming through. Annualised recurring revenues are £13m, which is lower than expected. Revenues recognised for 2022 will be slightly below previous forecasts and that increases the loss by £200,000 to £1.1m. The 2023 loss is expected to be the same. Net cash is £3.9m. The share price slumped by 24.8% to 37.5p. The June 2021 placing was at 154p.

The share price of credit provider Morses Club (MCL) fell a further 52.6% to a new low of 0.21p ahead of the cancellation of the AIM quotation. Asset Match will provide a matched bargains facility for the shares.

esports company Gfinity (GFIN) requires more cash by the end of March so management wants to raise £1.5m via a share issue. That will finance a corporate restructuring, invest in the Athlos technology platform and help the company to move towards breakeven. Gfinity has a market capitalisation of £3.1m, so the proposed share issue will be highly dilutive.

MAIN MARKET

Used car finance and property bridging loans provider S&U (SUS) continues to do well despite weak consumer confidence. Group net receivables have risen from £370m to around £420m in the six months to January 2023. Full year figures will be published on 28 March. Full year pre-tax profit is forecast to decline from £47m – due to low bad debt provisions – to £41.2m. Net debt was £192m at the end of January 2023, compared with committed facilities of £210m. The second interim dividend is 38p a share. The full year dividend total is expected to be 132p a share.

Hamak Gold Ltd (HAMA) has commissioned a geophysical survey for the Ziatoyah gold prospect in Liberia. This will map the mineralised sulphide bearing metadolerite units where high grades of gold have been intersected.

AIM 50 Digest 10 February 2023

• BY: Andrew Hore |
• POSTED: 13/02/2023 |

North Sea oil and gas producer Serica Energy (SQZ) generated average net production of 26,182 barrels of oil equivalent. Production guidance for 2023 following the Tailwind Energy acquisition is between 40,000-47,000 barrels of oil equivalent – the current production rate is 43,300 barrels of oil equivalent. The Tailwind Energy acquisition should be completed in March.
=====
Mortgage Advice Bureau (MAB1) reassured investors that current trading is in line with expectations. Peel Hunt forecasts a 2022 pre-tax profit of £27m and the 2023 figure is expected to be similar. There are signs of recovery in the mortgage market, while Mortgage Advice Bureau is gaining market share.
=====
New ITM Power (ITM) chief executive believes that the company’s PEM electrolyser technology is amongst the best in the industry. He intends to focus on a smaller product range, improve production efficiency and cut costs. Interim revenues fell from £4.2m to £2m. Net cash is £317.7m and should be more than £245m by the end of April 2023.
=====
CentralNic (CNIC) has sparked the regular upgrade with its fourth quarter figures. Full year revenues were better than expected at $728m. Pre-tax profit was upgraded from $69.2m to $72.4m. CentralNic is partnering with automated hosting resellers platform WHMCS. This will enable customers to consolidate domains with different registrars.
=====
Advanced Medical Solutions (AMS) has bought Connexicon Medical, which develops tissue adhesives. Dublin-based Connexicon was spun out of Henkel AG and products are sold under the brand name Flexifuze.
=====
In the six months to December 2022, Pan African Resources (PAF) earnings will be between 1.4 cents a share and 1.64 cents a share, down from 2.39 cents a share. Gold sold declined by 16% to 90,439 ounces and the price was slightly lower.
=====
Video games services provider Keywords Studios (KWS) has acquired US-based PR agency 47 Communications, which generated revenues of $11m last year. 
=====
Results from construction materials supplier Sigmaroc (SRC) were modestly ahead of expectations in 2022 and 2023 has started well as energy costs are lower and demand is strong. Organic growth in revenues was 19% last year. Pre-tax profit is forecast to improve from £47.2m to £57m in 2023.
=====
Engineering services provider Renew Holdings (RNWH) is trading in line with expectations and is on course for a full year pre-tax profit of £61m, while net cash should be £30m. The order book was £861m at the end of December 2022. 
=====
Numis Corporation (NUM) says that the first four months of the financial year have been subdued. Revenues were at a similar level to the run-rate in the second half of last year, although a recovery in smaller company share prices means that the equities business is slightly ahead of its run-rate in the same period.
=====
Floorcoverings supplier James Halstead (JHD) says interim revenues grew by 8-9% in the first half, which was held back by shipping problems. International freight availability is improving so the outlook is better. Supply concerns have eased, and stocks have been reduced. WH Ireland is maintaining its 2022-23 pre-tax profit forecast at £50.1m, down from £52.1m because of higher costs.
=====
Pantheon Resources (PANR) is on course to clear out the sand blockage in the Alkaid #2 well in Alaska. This will enable preparations for long-term production testing. 
=====
DBAY Advisers has increased its stake in Alliance Pharma (APH) from 7.97% to 8.03%.
=====
Next Fifteen Communications (NFC) chief executive Tim Dyson sold 300,000 shares at 1050p each leaving him with 4.74 million shares. Watkin Jones (WJG) non-exec Francis Salway bought an initial stake of 45,500 shares at 110.16p each. Learning Technologies Group (LTG) non-exec Aimie Chapple purchased an initial stake of 15,200 shares at 151p each. 

Quoted Micro 6 February 2023

• BY: Andrew Hore |
• POSTED: 06/02/2023 |

AQUIS STOCK EXCHANGE

Altona Rare Earths (ANR) is raising £275,000 via a convertible issued to clients of Optiva Securities. This is convertible at the upcoming £1.25m placing at the time of the move to the standard list and will fund an increase in the shareholding in the owner of the Monte Muambe rare earths project. Align Research has extended its £150,000 loan and with interest £189,750 will be payable on 30 April.

Marula Mining (MARU) is seeking to move to AIM. Cairn has been appointed as nominated adviser and a joint broker with Monecor will be appointed. A competent persons report on the portfolio of assets in Africa will be commissioned. At 6.1p, down 5.43% on the week, the battery metals company is valued at £1.6m. That is low for an AIM company.

Cadence Minerals (KDNC) investee company European Metals Holdings (EMH) says the Cinovec project has been classified as a strategic project for the Usti region in the Czech Republic. This means it can receive grants from the Just Transition Fund. The Cinovec project could receive a up to €49m.

The latest investment by Quantum Exponential (QBIT) is in Oxford Quantum Circuits. The £299,997 investment, for a 0.34% stake, is part of a £869,000 funding round. Oxford Quantum Circuits designs super conducting circuits and plans to expand in Asia.

A company owned by NFT Investments (NFT) executive chairman Jonathan Bixby bought 10 million shares at 0.855p each, taking his stake to 6.43%. NFT investments has secured a temporary restraining order in Delaware that freezes the online warrant holding assets secured in the cybersecurity incident.

Coinsilium Group Ltd (COIN) says that it invested $575,000 in crypto currencies and also entered into advisory work with the issuers. The company says that the crypto currency markets are recovering in 2023. Despite that, Web3 projects have more realistic valuations making them attractive to investors.

KR1 (KR1) has made four new investments in HydraDX and related Basilisk tokens, Superchain, Argent and Metaprime. HydraDX and Argent were existing investments.  The total investment is just over $1m.

There have been delays in the provision of the £200,000 bridge loan to TruSpine Technologies (LON: TSP) and it should be received shortly followed by the first tranche of the subscription.

Lift Global Ventures (LFT) has invested £750,000 in convertible loan notes issued by Trans-Africa Energy Ltd, which develops energy infrastructure projects in Sub-Sharan Africa. It has a joint development agreement with Ghana National Gas Company. This covers four projects for processing and transporting natural gas, where Trans-Africa will have a majority stake. The financial close for the first project could be later this year.

Emissions reducing fuel ingredients supplier SulNOx Group (SNOX) grew third quarter revenues by 9% quarter-on-quarter to £45,720. Pro forma cash is £790,000 and cash outflow is being reduced. The fourth quarter has started well, and sales staff are being recruited.

Evrima (EVA) has recovered more than the cost of its $234,000 investment in Premium Nickel Resources through a series of sales raising $299,000. The residual stake is valued at $1.63m. Guy Miller has resigned from the board.

Vulcan Industries (VULC) generated revenues of £968,000 from continuing operations in the nine months to December 2022. The loss was £697,000. Acquisition opportunities have been identified.

Craft spirits producer British Honey (BHC) says revenues fell from £8m to £6m and management is cautious about trading. The review of strategy continues.

Love Hemp (LIFE) refutes comments made by former managing director Philip Small. It has asked for proof of the validity of invoices for money he is claiming. Al his comments are being investigated by the company’s advisors.

Goodbody Health (GBDY) has signed four phlebotomy contracts. This service will be offered through its network of 90 clinics.

Igraine (KING) has invested £100,000 for a 20% stake in Fixit Medical, which has designed the Cingo drainage catheter fixation device. This protects catheters from twisting and kinking.

Gledhow Investments (GDH) had net assets of £1.7m at the end of September 2022, including £112,000 in cash. Net assets fell because of a reduction in the value of the investment portfolio.

In the fourth quarter, RentGuarantor (RGG) increased the number guarantees made by 11%. Over 2022, the demand for services increased by 71% and further growth is expected this year.

ChallengerX (CXS) had £236,000 in cash at the end of September 2022. Developing the company’s platform will require more investment. ChallengerX is also assessing reverse takeovers.

Luciano Maranzana has been appointed chief executive of Eight Capital Partners (ECP). He has been a non-exec for seven months.

Chris Akers continues to build up his stake in Asimilar Group (ASLR) and it has reached 9.13%.

Cooks Coffee Company (COOK) has raised an additional £42,000 at 18p a share. Director Michael Ambrose bought 200,000 of these shares, taking his stake to 1.6%.

Three directors bought shares in S-Ventures (SVEN). Scott Livingston acquired 104,539 shares at 11.1p each, taking his stake to 36.7%. Robert Hewitt bought 44,247 shares at 11.3p each and Alexander Phillips acquired 89,954 shares at 11.1p each. Exercised warrants at 25p each raised £350,000. Head of risk and compliance Simon Mathisen acquired 120,168 shares at 3.5p each in Oberon Investments (OBE), while non-exec Gemma Godfrey bought 200,000 shares at 3.5p each.

AIM

ASX-listed Celsius Resources (CLA) raised £2.4m at 0.8p a share when it joined AIM on 30 January. That valued the minerals explorer at £14.8m. The share price opened at 0.88p and ended the week at 1.025p. The main interest is the Makilala-Caigutan-Biyog (MCB) copper gold project in the Philippines. This is 320km north of Manila. The authorities are apparently fast-tracking the project permitting approvals and mine development. The cash will help to finance further development, but management needs to secure additional debt and/or an offtake agreement to generate the funding required to get the project to bankable feasibility. Celsius Resources owns 100% of the project

All three divisions of NWF (NWF) did better than expected in the first half and the second half has started well. In the six months to November 2022, revenues were 35% higher at £541.8m, while underlying pre-tax profit improved by 44% to £6.2m. The interim dividend is unchanged at 1p a share, although there will be an increase in the final dividend. Net cash was £1.2m at the end of November 2022.

Agricultural products supplier and retailer Wynnstay Group beat expectations that had already been upgraded a number of times in the past year. In the year to October 2022, revenues were 42% ahead at £713m, while pre-tax profit almost doubled to £22.6m. The dividend has been raised for the nineteenth year in a row. The total dividend is 17p a share. High milk prices have boosted feed demand from farmers - with like-for-like growth of 6% - enabling Wynnstay to increase its market share.

Digital transformation services provider TPXimpact Holdings (TPX) downgraded 2022-23 guidance with revenues expected to be £80m rather than £90m. EBITDA falls more sharply and could be around £2m. Third quarter like-for-like revenues were 15% lower and there was a sharp reduction in margins. Net debt was £17.5m at the end of December 2022 and management warns it is likely to breach debt covenants. Director share buying sparked a small recovery in the share price. Finance director Steve Winters acquired 220,000 shares at 21.34p each and former chief executive Neal Ghandhi bought 196,986 shares at 22.45p each.

Morses Club (MCL) gained 75.17% backing to approve the cancellation of the quotation on AIM. This resolution required 75% of the vote so it only just succeeded. Shareholders owning 61.7% of the share capital voted. The last day of dealings will be 10 February. After that, there will be a matched bargain facility on Asset Match.

Immotion (IMMO) is selling its location-based entertainment business for $25.1m, having raised £100,000 from disposing of Uvisan. Shareholders are likely to receive 3p a share out of the sale proceeds with £6.5m retained for the remaining business after buying back shares from management leaving with the location-based entertainment business. Immotion will concentrate on the home-based entertainment business Let’s Explore Media. This will be expanded via acquisitions. The share price was below the proposed dividend level, and it rose to 3.35p. Immotion joined AIM in July 2018 at a placing price of 10p a share.

Parcel delivery and logistics company DX (DX.) has appointed the boss of the Freight division, Paul Ibbetson, as chief executive. He has been with the company since 2017. Interim revenues grew by 15%

Employee benefits services and insurance provider Personal Group (PGH) did well last year with recurring revenues growing but progress was held back by Let’s Connect electronic products provider. Cenkos trimmed its 2022 pre-tax profit forecast from £4.5m to £4m. Net cash is more than £18m.

Sustainable polymers developer Itaconix (ITX) is raising £10.3m at 5.1p a share, while an open offer could raise up to £400,000 more. The cash will fund product development, capital investment and working capital.

CentralNic (CNIC) has sparked the regular upgrade with its fourth quarter figures. Full year revenues were better than expected at $728m. Pre-tax profit was upgraded from $69.2m to $72.4m. CentralNic is partnering with automated hosting resellers platform WHMCS.

MAIN MARKET

Thungela Resources (TGA) is acquiring an effective interest of 63.75% in the Ensham coal mine in Australia for A$267m. This is via 85%-owned Sungela Holdings. Ensham produced 3.2 million tonnes of coal in 2022. The mine life is 16 years. The deal should close in the middle of 2023.

Associated British Engineering (ASBE) made a £5,000 profit thanks to an exchange gain in the year to September 2022. Net assets are £657,000, including £497,000 in cash and £182,000 in investments.

Kelso Group (KLSO) has acquired five million shares in THG (THG) at an average price of 54.5p.

Quoted Micro 30 January 2023

• BY: Andrew Hore |
• POSTED: 30/01/2023 |

AQUIS STOCK EXCHANGE

Aquis Stock Exchange owner Aquis Exchange (AQX) says 2022 trading was in line with expectations. The 2022 results will be published on 30 March.

Electric vehicle drivetrain technology developer Equipmake Holdings (EQIP) has raised £6.235m at 5p a share. That was slightly more than initially indicated. A lease is being secured on additional premises. The contracted order book is worth £8.6m. Interim revenues were £1.05m and the full results will be announced on 15 February.

Invinity Energy Systems (IES) says existing contracts underpin growth in in 2023. There are £22m of vanadium flow battery systems due for delivery in 2023 and a further £7.4m order book for 2024. There was £5.1m of cash in the bank at the end of 2022. Pilot projects with Siemens Gamesa should begin in the summer and a next generation product should be available in the first half of 2024.

Cadence Minerals (KDNC) has completed the sale of its joint venture interest in Yangibana rare earths project for A$9m of shares in ASX-listed Hastings, which is equivalent to 1.9%. Evergreen Lithium is expected to list on the ASX on 10 March – Cadence Minerals owns 15.8 million shares, which are expected to be valued at A$3.96m.

A full year update from Chapel Down Group (CDGP) shows string growth in sparkling wine sales. Group revenues were 10% ahead at £15.6m with momentum increasing in the second half. Margins should have improved.

Ace Liberty & Stone (ALSP) reported a small dip in interim pre-tax profit to £731,000, partly due to additional charges relating to a property in Sunderland. There is available cash of £9.5m for further property investments and contracts have been exchanged on a Dorchester property.

Helium Ventures (HEV) had £157,000 in cash at the end of October 2022. The proposed acquisition of Vestigo Technologies, which supplies tracking software, continues to be progressed.

Goodbody Health (GDBY) is partnering with Datar Cancer Genetics to offer the Trucheck circulating tumour cell screening service.

Tap Global (TAP) has signed up its first client for its crypto app. Global cryptocurrency exchange Bitfinex will use the service to offer clients a prepaid Mastercard and convert cryptocurrency to Euros.

SuperSeed Capital (WWW) says the SuperSeed II LP has invested in eight SaaS companies and a further investment should be made in the first quarter of 2023.

RentGuarantor Holdings (LON: RGG) is licencing its software to Clever Student Lets to use on its student letting platform.

Guanajuato Silver Company Ltd (GSVR) has published fourth quarter production figures. Silver output was 401,000 ounces in the period, while gold output was 4,000 ounces. Full year production was one million ounces of silver and 11,000 ounces of gold.

AQRU (AQRU) has launched its lending pool via subsidiary Accru Finance. This allows investors to generate yield from tax credit receivables originating from the IRS in the US. Annual returns of up to 10% are indicated.

Good Energy (GOOD) was one of three energy suppliers criticised for not providing enough help to their prepayment customers to claim the £400 of support vouchers from the government.

Marula Mining (MARU) says that initial deliveries of 1,000 tonnes of high-grade lithium ore from the Blesberg mine will commence shortly and take four weeks. Processing of existing stockpiles is ongoing, while site infrastructure is upgraded.

Chris Akers continues to build up his stake in Asimilar Group (ASLR) and it has reached 8.01%.

AIM

Spectacles supplier Inspecs (SPEC) is expected to report slightly better than expected full year figures. The figures are still much worse than expected prior to the previous warning, where destocking and poorly performing businesses led to a significant downgrade. Sales were flat at $246m, although there was growth before currency movements. Pre-tax profit is set to more than halve from $17.9m to $7.7m.

Battery technology developer Ilika (IKA) has been awarded a UK government grant of £2.8m for taking a leading role on a 24-month Faraday Battery Challenge in collaboration with BMW and Williams. This will further the development of Ilika’s Goliath battery, which is designed to be cost-effective and recyclable. There were no surprises in the interims earlier in the week. In the six months to October 2022, revenues improved from £179,000 to £204,000, which all came from UK grants. Net cash outflow from operating activities increased from £2.19m to £3.84m. Net cash is £17.8m. The Stereax M300 miniature battery should be launched by the summer.

Results from aerospace composites kits supplier Velocity Composites (LON: VEL) were as expected following the trading statement at the end of 2022. In the year to October 2022, revenues were 22% higher at £12m, while the loss was flat at £1.5m. A further loss is forecast for this year, while the US deal with GKN Aerospace builds up later in the year. A full year contribution from the US GKN business should push the company into profit.

Fire Angel Technology (FA.) reduced its loss last year, even after higher procurement costs, and it expects significantly enhanced margins this year. The home safety products supplier increased 2022 revenues by nearly one-third to £57.5m. A further reduction in loss is expected this year with helpful currency movements providing potential for further upside.

Healthcare data analysis provider Diaceutics (DXRX) beat expectations with revenues 44% higher at £20m, helped by currency movements, and margins are being maintained despite inflationary pressures. Diaceutics has secured two agreements with top ten global pharma companies. The order book is worth £15.6m. Investment in data and technology is being increased.

Following the departure of the recently appointed chief executive Inland Homes (INL) has sold its greenfield strategic land portfolio. There was a £3.5m profit on the sale that raised £9.5m in cash. There will also be fees generated for assisting the purchaser. Despite the disposal, net debt has risen to £100m and trading conditions have deteriorated. The 2021-22 loss is expected to be £91m and NAV has fallen to 40p a share.

Fiinu (BANK), which offers the Plugin overdraft to individuals with accounts with other banks, has completed the core banking platform configuration and its testing. General testing of the service is continuing. There is £35m-£40m required to fund the bank and a staged fundraising will commence before Easter.

Piling contractor Van Elle (VANL) had already flagged the interims, but the pre-tax profit was still slightly higher than expected at £3.3m. The interim dividend is 0.4p a share. Full year pre-tax profit forecasts have been maintained at £5.2m, although next year’s figures has been trimmed to £6m.

Gaming Realms (GMR) has signed a brand licensing deal with Tetris Inc, the holder of the rights to the eponymous falling blocks game. Tetris Slngo mobile will be launched globally before the end of 2023.

MAIN MARKET

Oxford Cannabinoid Technologies (OCTP) is due to commence a phase 1 clinical trial for its lead programme OCT461201 for the treatment of chemotherapy induced peripheral neuropathy with the interim results due in the second quarter. Management says it has enough cash to get it into the first quarter of 2024. GHS Capital has reduced its stake to below 3%.

Motor dealer Pendragon (PDG) says fourth quarter trading is slightly ahead of expectations and this has offset inflationary pressures. Underlying full year pre-tax profit should be more than £57m, down from £83m for the previous year. Net debt is around £23m. There continue to be constraints in the supply of new vehicles.

One Heritage Group (OHG) expects a further impairment charge of between £750,000 and £1.25m. Martin Crews is being replaced as development director by Paul Westhead on an interim basis. The major shareholder loan facility has been raised from £9.5m to £11m.

Mode Global Holdings (MODE) is winding down its operations because it was unable to raise the cash it required to grow the business.

AIM 50 Digest 27 January 2023

• BY: Andrew Hore |
• POSTED: 30/01/2023 |

Smart Metering Systems (SMS) has sparked another upgrade for 2022. The forecast pre-tax profit has been raised from £21.7m to £24.5m. Total dividends will be 30.25p a share. Net debt has fallen to £30.2m.  A significant increase in capital spending, particularly on battery storage projects, means that there will be a large increase in net debt in 2023 and 2024.
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Mixer drinks supplier Fevertree Drinks (FEVR) surprised the market with full year revenues 3% below expectations. This led to EBITDA guidance being cut to £36m- £42m. Taking the mid-point of the range that is a reduction of more than one-fifth on the previous consensus forecasts. Costs are continuing to rise, and profit could be flat in 2023.
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IQE (IQE) says 2022 revenues were 8% ahead at around £166m. There were some contract delays. Higher photonics revenues offset weak wireless business for the semiconductor wafers manufacturer. There will be destocking in the first half of 2023.
Next Fifteen (NFC) is growing organically at 20% this year and Peel Hunt forecasts organic growth of 12% for the marketing services provider in 2023-24. Each of the business divisions is growing with business transformation producing the fastest improvement. 
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Video games company Frontier Developments (FDEV) had already flagged its interim results. Revenues were £57.1m and there was an operating profit of £6.9m. Net cash was £42.6m. The new F1 game has not done as well as hoped, but the back catalogue continues to be a significant income generator. There are no changes to full year forecasts – pre-tax profit of £900,000.
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Residential rental and student accommodation properties developer Watkin Jones (WJG) believes that investor confidence is beginning to improve, but that may not show through in the figures until the second half of the current financial year. In 2021-22, group revenues were 5% lower, as was pre-tax profit at £48.8m. That was helped by an £18m gain on the disposal of two student accommodation assets. A small improvement in pre-tax profit to £50m-£55m is expected in 2022-23.
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Electrolyser technology developer ITM Power (ITM) expects lower full year results and a higher loss. There will higher costs - particularly hitting contracts near to completion - increased warranty provisions and inventory write-downs. The new chief executive is reviewing strategy. There was £318m in the bank at the end of October 2022. This should last into 2025.
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Fuel cell developer Ceres Power (CWR) says 2022 revenues will be slightly better than expected at £21m. Net cash is £182m. There have been positive results of electrolyser module testing. Talks continue with potential partners.
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Video services provider Keywords Studios (KWS) is confident of meeting 2022 expectations. Second half organic growth was 22%. This is despite reports that the video games sector declined last year.
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Dotdigital (DOTD) revealed interim revenues of £38m, while net cash was £49.6m at the end of December 2022. The US operations have stabilised, and it should grow in the year to June 2023.
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A major shareholder in Ashtead Technology (AT.) has taken advantage of the rise in the share price since flotation in November 2021 to sell shares. Buckthorn Partners sold 18.8% of the subsea equipment supplier at 310p each, raising £46.5m. The chief executive and finance director sold 425,000 and 35,000 shares respectively. The flotation price was 162p. Full year revenues were 30% higher at £72.5m.
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Vet practices operator CVS Group (CVSG) interim revenues were 8% ahead, with like-for-like growth of 7.5%. The underlying EBITDA margin was 19%. Overall trading is in line with expectations.
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Learning Technologies Group (LTG) says 2022 revenues are ahead of expectations and margins have improved. Operating profit will nearly double to at least £100m, helped by the contribution from the acquisition of GP Strategies. Net debt was reduced to £119.8m at the end of the year.
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Ticketing technology services provider accesso Technology (ACSO) has signed up 18 new clients in the past year, some of them using more than one product.
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Ergomed (ERGO) trading was in line with expectations in 2022 and the order book has grown by 23% to £295m. The life sciences services provider had cash of £19.1m at the end of 2022.
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Audio visual products distributor Midwich Group (MIDW) generated 2022 revenues of £1.2bn, up by 40%. Organic growth was 20%. This means that profit will be better than expected – consensus was £40.9m.
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Alliance Pharma (APH) generated revenues of £172m in 2022, while underlying pre-tax profit will be slightly higher than £30m, and 2023 has started well.
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Growth in the public sector helped IDOX (IDOX) to improve full year revenues by 6% to £66.2m. Engineering software and services revenues were stable. Underlying earnings grew by 7% to 2.44p a share. Acquisitions have broadened the rage of services offered and more of these services are being accessed via the Cloud.
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Tracking technology company Big Technologies (BIG) says 2022 results were ahead of expectations. This was following an upgrade last September. Revenues are expected to be £50m and EBITDA more than £30m.
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Jet2 (JET2) says winter bookings continue to strengthen and average load factors are back above 2018-19 levels. This means that 2022-23 results will be ahead of expectations with pre-tax profit before forex changes of between £370m and £385m. Summer seat capacity has been increased.
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MP Evans (MPE) produced 341,700 tonnes of crude palm oil and 73,800 tonnes of palm kernels in 2022. The average mill gate price for crude palm oil was $854/tonne, up from $810/tonne the previous year. The sixth palm oil mill is near to completion.

Quoted Micro 23 January 2023

• BY: Andrew Hore |
• POSTED: 22/01/2023 |

AQUIS STOCK EXCHANGE

Oberon Investments Group (OBE) is acquiring 63% of Logic Investments Ltd, which provides back office services to investment managers. Logic has funds under management and administration of more than £275m and Oberon Investments will merge its own back office operations with Logic. A placing raised £1.75m at 3.5p a share. Chairman Alex Hambro subscribed for 1.14 million of the shares, taking his stake to 1.64 million shares. The cash will be used to accelerate growth.

GP IT systems supplier DXS International (LON: DXSP) reported a 2% improvement in interim revenues to £1.65m, while the loss was £131,000 due to higher depreciation and operating costs. There was £399,000 in the bank at the end of October 2022. Management options can be exercised if annual turnover reaches £5m in the next three years. Hybridan forecasts revenues 2022-23 revenues of £3.61m with a pre-tax profit of £86,000.

Cooks Coffee Company (COOK) says UK sales were 41% higher in 2022, while sales in Ireland were 91% ahead. The focus is generating better returns from existing café sites, although there will be some new openings.

Healthy snacks supplier S-Ventures (SVEN) says full year revenues were £8.7m, but the inability to obtain ingredients hampered sales income. The operating loss is £2.6m. The revenues were one-fifth down on initial expectations for the year to September 2022. Supply problems have eased, and price rises have helped to offset higher costs.

Marula Mining (MARU) has appointed Geofields Tanzania to commence copper exploration at the Kinusi copper project, where Marula Mining owns a 49% interest, and £80,000 has been raised from a warrant exercise. Initial exploration results should be published in the second quarter of 2023.

Hydrogen Future Industries (HFI) is investing in hydrogen production facilities developer Tower Green. It has spent £100,000 in cash and shares on a 20% stake and has the right to invest a further £50,000 for another 10% stake. Tower has an agreement with Element 2 to supply hydrogen fuel to fleet operators. Hydrogen Future Industries has developed wind-based hydrogen production systems.

Tap Global (TAP) continues to rise following the previous week’s completion of its reversal into Quetzal Capital last week. There was £3.1m raised at 4.5p at the same time, even though the market price had not been that high since May last year. Chief executive David Carr acquired 190,000 shares at 4.1p each and finance director Anthony Quirke bought 135,135 shares at 4.4p each.

Newbury Racecourse (NYR) lost money on the Great Christmas Carnival and the company is likely to make a small profit in 2022. The other parts of the business traded in line with expectations.

Quantum Exponential (QBIT) had £2.48m in cash out of net assets of £4.85m at the end of October 2022. There was a cash outflow of £313,000 in the previous six months.

Guanajuato Silver Company Ltd (GSVR) has restarted processing at the Cata mill at the Valenciana mine. The initial processing rate is around 8,000 tonnes/month.

Invinity Energy Systems (IES) says that its VFB technology has passed phase 1 requirements for UK government’s LODES competition, and it is submitting the application for phase 2. The competition offers £11m of funding to the winner.

AQRU (AQRU) says that Accru Finance is raising the threshold for minimum account deposits on its app to $250,000. This will reduce assets on the app, but hardly affect revenues. There will also be further cost cutting.

Rogue Baron (SHNJ) sold 930 cases of Shinju whisky in the fourth quarter of 2022. Revenues were $120,000.

Gunsynd (GUN) has raised £194,000 from partial disposals of stakes in three companies. Gunsynd has invested £150,000 in Strategic Minerals Europe, the holding company of Aberdeen Minerals, which is exploring for nickel-copper-cobalt deposits in north east Scotland. Shares were acquired at 2.5p each and Gunsynd has a 2.7% stake.

Hydro Hotel Eastbourne (HYDP) is paying a dividend of 23p a share, up from 21p a share last year.

AIM

Pawnbroker Ramsdens Holdings (RFX) did much better than expected in the year to September 2022. Group revenues increased by 62% to £66.1m, while pre-tax profit jumped from £564,000 to £8.27m. Net cash is £8.84m. The total dividend is 9p a share. Earnings forecasts for 2022-23 were upgraded by 5% following a 6% upgrade in October.

Regional legal firm consolidator Knights Group Holdings (KGH) reported a 19% increase in interim revenues to £71.2m and underlying pre-tax profit was also 19% ahead at £9m. This was achieved in a flat market. Net debt was £35.6m at the end of October 2022. The interim dividend is 153p a share.

China-based Hainan Mining is funding the Bougouni lithium project that is wholly owned by Kodal Minerals (KOD). A $100m investment will be made into a joint venture providing Hainan Mining with a 51% stake. The work on the construction of the mine will be overseen by Kodal Minerals. Hainan Mining is also subscribing $17.75m for a 14.8% stake in Kodal Minerals and that money will be spent on other projects.

Mirriad Advertising (MIRI) is launching a strategic review and potentially putting itself up for sale. The board of the programmatic advertising business believes that Mirriad Advertising is undervalued even though it continues to make heavy losses. Revenues were £1.51m in 2022 and there was £11.3m in cash, which should last until the third quarter of 2023. The strategic review will consider how the business should be funded from then on. In-content advertising is set to grow significantly, but Mirriad Advertising has to have the funding to take advantage.

Legal services provider Gateley (GTLY) generated organic growth of 10% and improved profit by 12% in the first half. In the six months to October 2022, group revenues were 22% ahead at £76.1m, helped by contributions from the new patent activities, while pre-tax profit improved from £8.5m to £9.6m. The dividend has been raised by 10% to 3.3p a share.

Musical instruments retailer Gear4Music (G4M) grew revenues by 5% in the third quarter despite strikes and weak consumer spending. UK sales were flat, and the growth was in Europe. Gross margins declined. A full year pre-tax profit of £1.1m, down from £5m, is forecast.

Inland Homes (INL) chief executive Donagh O’Sullivan has resigned after little more than one month in the job.

Panther Securities (PNS) is paying a special interim dividend of 10p a share. The property investor says that it expects net assets to increase by £19m in 2022, mainly due to the removal of two derivatives liabilities relating to interest rates on debt. Loan-to-value is less than 40%. Debt refinancing discussions will begin later this year.

Online women’s fashion retailer In The Style (ITS) was hit in December by price cutting by rivals and difficulties in delivering orders. Revenues in the quarter to December 2022 fell by 22%. Full year revenues are expected to be £46m, which is not much more than the £44.7m generated in the year before flotation. The EBITDA outcome is likely to be a loss of between £4.25m and £4.75m. There was £3.2m in cash at the end of 2022. On 8 December, In The Style launched a strategic review and that continues.

Rockfire Resources (ROCK) has entered into a joint venture with Sunshine Gold for the Plateau gold deposit in Queensland. Sunshine Gold will fund all exploration for three years. Rockfire Resources will focus on the Molaoi zinc deposit in Greece.

Circle Property (CRC) intends to return at least £30m to shareholders by March 2023. Three-fifths of the portfolio has been sold in 14 months. At 220p, the shares are trading on a discount to NAV of around 18%.

Upgrades for Equals Group (EQLS) continue to push the share price higher. The forecasts had already been upgraded in December and earnings per share have been increased by a further 4% to 4.8p, up from 2.8p in 2021. There was £15m in the bank at the end of 2022.

Crimson Tide (TIDE) revenues were better than expected and that reduced the forecast loss. The mobile as a service technology developer is still on course to breakeven next year. Annualised recurring revenues are £5.8m, which is more than generated in 2022. The US provides additional potential.

Shanta Gold (SHG) produced 65,209 ounces of gold at an all-in sustaining cost of $1,270 at the New Luika gold mine in Tasmania, which is just below guidance. Capital investment means that it could produce 66,000-72,000 ounces of gold at an all-in costs of $1,200-$1,300/ounce.

MAIN MARKET

LED lighting and wiring accessories supplier Luceco (LUCE) as 2022 revenues and profit are at the upper end of guidance. Strong cash flow reduced borrowings with net debt one-third lower than expected at £24m. The finance director is leaving and being replaced with non-exec Will Hoy.

Medica Group (MGP) revenues and profit for 2022 should be in line with expectations. Improved radiologist capacity helped revenues improve from £61.9m to £77m, while pre-tax profit is set to improve from £7.4m to £13m. Acquisition opportunities are being evaluated.

Quoted Micro 16 January 2023

• BY: Andrew Hore |
• POSTED: 16/01/2023 |

AQUIS STOCK EXCHANGE

Tap Global (TAP) completed its reversal into Quetzal Capital last week. The share price ended the week up 29.4% to 4.4p. There was £3.1m raised at 4.5p, even though the market price had not been that high since May last year. Tap Global was valued at £20.5m in the reversal and it is a crypto-fiat exchange service provider with a neo banking platform. It has gained Mastercard approval. The regulator is the Gibraltar Stock Exchange. The cash raised will be used for marketing and to grow internationally.

Cannabis company Apollon Formularies (APOL) is selling IP assets to Canada-listed Global Hemp Group for $250,000 in cash and 10 million shares in the acquiror at C$0.015 each. The first tranche of $100,000 has been paid with the rest of the cash due by the end of January. Global Hemp Group has an option to acquire the other assets of Apollon in return for 771.2 million shares. The Apollon share priced dived 14.8% to 0.66p.

NFT Investment (NFT) has been hit by a cyber incident that resulted in a loss of $250,000 of assets. That is less than 1% of NAV. Further technical precautions are being investigated. The share price slumped by 10.8% to 0.825p, which values the company at £9.3m.

Wishbone Gold (WSBN) has acquired a tenement covering 19 blocks in the Paterson Range in Western Australia. This cost A$50,000.

Marula Mining (MARU) says graphite exploration activities have commenced at the Bagamoyo project in Tanzania. This involves mapping, sampling and trenching and should be completed in the first quarter. Marula has secured a 73% interest in the project.

Olivia Edwards, Nicholas Lyth and Misha Sher have resigned from the board of ChallengerX (CXS), while Lucas Caneda will take over as chief executive. Stuart Adam is joining the company as finance director.

Chris Akers has increased his stake in Asimilar (ASLR) from 6.63% to 7.41%.

Guanajuato Silver Company Ltd (GSVR) has completed the C$8.5m fundraising.

EPE Special Opportunities Ltd (ESO) had net assets of 255.42p a share at the end of 2022.

AIM

Marks Electrical (MRK) continues to outperform its electrical retail rivals. Revenues in the third quarter to December 2022 were one-third ahead at £29.8m and margins are improving. More customers are taking advantage of the installation service offered by the company. Nine-month revenues are 22% higher at £72.9m. The interim growth rate was 15%. Profit is still likely to be lower this year and earnings certainly will be because of the additional shares in issue after the 2021 flotation. Full year pre-tax profit is expected to decline from £6.44m to £5.67m, but the strength of the third quarter revenues means that there is a chance that this figure could be beaten.

Floorcoverings distributor Likewise Group (LIKE) finished 2022 strongly with more than doubled revenues. Acquisitions were behind most of the growth in revenues to £124.4m, but like-for-like sales were still 26% higher. That is impressive considering that the market probably contracted last year. The sales team has been expanded and this is starting to pay off. Margins have declined and pre-tax profit should improve from £1.6m to £2.5m.

Devolver Digital (DEVO) sales were also disappointing at the end of 2022. Although revenues were within the guidance range, Zeus has cut its underlying 2022 EBITDA forecast by 28% to $21.7m. There will also be an impairment of capitalised development spending on video games. The 2023 forecast EBITDA has been cut by one-third to $22.8m.

Virgin Wines (VINO) was hampered by problems with its new warehouse management system, which led to lost revenues and higher costs. There was also lower spending by clients. There were 60,000 additional customers in the first half. Forecast full year revenues have been cut from £69.1m to £63m, while pre-tax profit estimates have been slashed from £4.3m to £1.8m.

Trading is ahead of expectations at Cornerstone FS (CSFS) and 2022 revenues were £4.8m – more than double the 2021 figure. Direct sales increased from 56% to 78%, helping gross margins increase from 52% to 61%.

Forward Partners (FWD) has invested £1m in hospitality management platform Dines. Clients already include Delfont Mackintosh Theatres and the Shard’s skyline bar.

Supreme (SUP) had a better than expected Christmas trading period. Vaping revenues continue to grow, while lighting revenues are recovering. The other products are trading steadily. The consumer products supplier is on course for market expectations of 2022-23 earnings of 9.6p a share.

Credit provider Morses Club (MCL) says it intends to leave AIM and will hold a general meeting. JO Hambro sold its shareholding of 8.8 million shares. It previously said it intended to vote for the proposed AIM cancelation.

Parkmead Group (PMG) says a gas discovery has been made at the LDS-01 well on the Drenthe VI concession – Parkmead has a 7.5% interest. A second well is being drilled and after that the discovery will go into production. First gas production should be before the end of the first quarter.

Physiomics (PYC) signed a further contract with Cancer Research UK to provide mathematical modelling for a clinical trial of a candidate for the treatment of blood cancers developed by Aleta Biotherapeutics. The project will be completed in the first quarter of 2023. The company completed an observational trial run by the University of Portsmouth that collected data from prostate cancer patients treated with docetaxel. The data will help clinicians make decisions about dosage.

Customer engagement software provider Pelatro (PTRO) shares fell sharply after it revealed that delayed contracts will reduce 2022 revenues. Dowgate reduced its 2022 revenues forecast by $2.4m to $5.8m, which means that there will be a loss of $2.6m. One licence contract is being changed to a managed services contract and revenues from another contract will be taken in 2023. Pelatro may withdraw from another contract and that would mean a $300,000 provision.

Arkle Resources (ARK) has discovered lithium bearing pegmatites on the Mine River licences in Ireland. Six assayed rock chip samples show grades of more than 0.02% lithium. Enriched levels of caesium, rubidium and tantalum were also identified.

Tertiary Minerals (TYM) has been boosted by the news of a $150m investment in the Mingomba copper deposit, which is near to the company’s Konkola West copper project in Zambia.

MAIN MARKET

Hydrogen Utopia International (HUI) has made its move from the Aquis Stock Exchange to the standard list. The waste-to-energy facilities developer started the day at 16.625p and closed at 16.75p (16.5p/17p) with nearly 765,000 shares dealt in 21 trades on the standard list. The share price ended the week at 16.7p. Hydrogen Utopia raised £3m at 7.5p when it joined the Access segment of Aquis on 6 January 2021, so last Friday was its first anniversary and its last day of trading on the Access Segment. However, it is now listed on the Aquis Main Market. Hydrogen Utopia has an exclusive, non-transferrable licence for the distributed modular gasification technology developed by AIM-quoted Powerhouse Energy (PHE).

Nanoco (NANO) says that the litigation settlement with Samsung will be at the lower end of the range of expectations for a successful jury trial. There is likely to be a one-off payment.

BATM Advanced Communications (BVC) has received a $26m cyber security order from a defence customer, which will be delivered over five years.

AIM 50 Digest 13 January 2023

• BY: Andrew Hore |
• POSTED: 16/01/2023 |

Soft drinks maker Nichols (NICL) says Vimto sales were 3.4% ahead in the UK last year. Group revenues were 14% to £164.9m. Pre-tax profit of £25.2m is expected. Next year profit could be flat because of higher sugar, energy and packaging costs. The Out of Home division strategic review should be completed by the time of the final results in March. The performance of the division needs to be improved and it may be reduced in size and refocused.
=====
Serica Energy (SQZ) has published combined pro forma production guidance after the acquisition of Tailwind Energy of 40,000-47,000 barrels of oil equivalent/day in 2023, rising to 41,000-48,000 barrels of oil equivalent/day. The deal will be immediately earnings enhancing and the enlarged group is better placed to invest in long-term development projects.
=====
Video games publisher Frontier Developments (FDEV) had a poor end to 2022 and it has downgraded guidance for the year to May 2023. This is down to a poor performance by F1 Manager 2022. Full year revenues guidance has been reduced from £135m to £100m-£114m. Interim revenues will be 16% higher at £57m and second half revenues will be lower than the corresponding period last year. Cash was £42.6m at the end of November 2022. Management is considering the future of the Frontier Foundry games label.
=====
Johnson Service Group (JSG) continued its recovery in the second half and 2022 revenues were 2.6% ahead of pre-Covid levels. Pre-tax profit should be at least £36m. Management has fixed energy prices for more than 50% of its usage of electricity and gas in 2023.
=====
Central Asia Metals (CAML) copper sales were higher than expected and the copper price improved in the fourth quarter. Pre-tax profit is forecast at $107m in 2022. A small decline in pre-tax profit is expected in 2023. 
=====
Sustainable assets investors Impax Asset Management (IPX) increased assets under management by 6% to £37.9bn in the first quarter, although December was weaker. Net inflows were £797m during the quarter. This is helped by the move towards investment in sustainable assets. The management also has strong relationships with investors that take a long-term view and do not get spooked by short-term volatility in the markets. Growth in assets under management should accelerate as investor confidence returns. Peel Hunt forecasts that assets under management will reach £40.3bn by the end of September 2023. Full year pre-tax profit is expected to fall from £68.4m to £63.5m. Peel Hunt has set a share price target price of 1050p.
=====
Polar Capital (POLR) had assets under management of £18.5bn at the end of 2022, down from £22.1bn on 1 April. Performance fees are down from £4.3m to £1.9m in the nine months to December 2022.
=====
Wealth manager Brooks Macdonald (BRK) says funds under management were 4.5% ahead at £16.2bn in the quarter to December 2022. The company’s funds have outperformed their market benchmark in the six months to December 2022, although in the latest quarter it was in line. Underlying profit is in line with expectations.
=====
Woundcare products supplier Advanced Medical Solutions (AMS) should be on course to make a pre-tax profit of £25.7m in 2022. This reflects the management of the inflationary pressures. Changes to EU regulations for medical devices are set to be delayed.
=====
Gamma Communications (GAMA) says 2022 results were in line with expectations and net cash was £92.2m at the end of the year. Hardware supply problems have been resolved.
=====
Alliance Pharma (APH) chief executive Peter Butterfield is expected to return to the business on a phased basis starting in the first quarter. An interim chief executive will be recruited to take on the burden of the business and cover the Competition Appeal Tribunal due to start in June.

Quoted Micro 9 January 2023

• BY: Andrew Hore |
• POSTED: 08/01/2023 |

AQUIS STOCK EXCHANGE

The pre-feasibility study for the Amapa iron ore project in Brazil, where Cadence Minerals (KDNC) has a 30% stake in a joint venture that can be increased to 49%, indicates a capital cost of $399m to bring the mine back into production. Based on the cost estimates in the study, WH Ireland believes that at full production the mine could generate a profit contribution of $292m a year – based on iron ore prices of $100/t and $120/t depending on the grade. It believes the project could breakeven at an iron price of $85/t. The price is currently around $115/t. Chief executive Kiran Morzaria bought 45,454 shares at 11p each.

Steen Andersen became chief executive of probiotics products developer ProBiotix Health (PBX) at the beginning of 2023. Revenues are improving and a trading statement will be published in the next few months. Product ranges are expanding and being launched in new countries. ProBiotix e-commerce revenues could be between £250,000 and £500,000 in 2023.

Hydrogen Utopia International (HUI) confirmed that the FCA has approved its admission to the standard list, and this is set to happen on 9 January.

Spinal stabilisation devices developer TruSpine Technologies (TSP) has secured a bridge loan of £200,000 at an 8% interest rate and has a letter of intent from a UK investment group to invest £2.4m. The first tranche of £800,000 will be issued at 4p a share with two other tranches issued at 6p a share and 8p a share respectively. One of the conditions is that Dr Timothy Evans takes on an executive role. Due diligence is being carried out. There was a £786,000 cash outflow from operations and investment in the six months to September 2022.

Inqo Investments (INQO) is collaborating with Belmont University, Nashville on its project to use enterprise to tackle environmental and social issues around the Budongo Forest in Uganda via $4m grant.

Fenikso Ltd (FNK), which was previously called Lekoil, has completed the settlement agreements with Lekoil Nigeria Ltd and its former chief executive, as well as terminating arrangements with Savannah Energy (SAVE). However, Lekoil Nigeria has been given additional time to surrender the 107.7 million shares it holds in Fenikso, which has no operating assets.

Guanajuato Silver Company Ltd (GSVR) has increased its proposed fundraising from C$7.5m to C$8.5m via an issue of units at C$0.425 each. The unit comprises one share and 0.5 of a warrant exercisable at C$0.60. A first tranche of C$6.8m has been issued and the rest should be issued by 10 January.

Mark Horrocks has acquired 5% of IamFire (FIRE). Saagar Ruaparell has taken a 3.21% stake in Quetzal Capital (QTZ).

AIM

One Media IP (OMIP) expects revenues to be £5.1m and EBITDA of £1.8m in the year to October 2022. Revenues are better than forecast, but EBITDA is in line. The music and video IP rights owner has net cash of around £1.4m. Anti-piracy subsidiary TCAT is winning new contracts and One Media IP is no longer considering outside funding for the subsidiary. The annual results will be published in March and the company says that it will pay a final dividend.

Embedded computer products developer Concurrent Technologies (CNC) says 2022 revenues will be 10% ahead of expectations, although pre-tax profit is maintained at around £100,000. Order intake was more than one-quarter ahead at £31m. Double shifts have commenced at the company’s factory. Pre-tax profit is expected to recover to £2.7m in 2023.

Helium One Global (HE1) will not be able to procure the Exalo drilling rig as it had expected because the current user has taken up a 12-month option on its operation. This will delay exploration drilling, which was due to start in the first quarter of 2023.

Cancer diagnostic test developer Angle (AGL) warned that revenues are lower than expected. Revenues will be just above £1m in 2022 after contract delays, while 2023 revenues have been downgraded from £5m to £3.9m. Market conditions have hampered the cancer diagnostics company in securing partnerships and building the commercial use of the Parsortix cancer cells capture technology.

hVIVO (HVO) has secured a £5.2m contract with an Asia Pacific-based biotech company to test a vaccine in a Phase IIa study. This uses the company’s respiratory syncytial virus human challenge study expertise, and the study will be conducted in Whitechapel from the third quarter of 2023.

Cleaning services provider React Group (REAT) has won a two-year contract with a high street fast food chain and it should generate revenues of £800,000 in the year to September 2023. It was an existing client of window cleaning business LaddersFree, which was bought last May.

DeepMatter (DMTR) left AIM on 5 January.

MAIN MARKET

Conversational gaming company Streaks Gaming (STK) has joined the standard list and raised £3m at 3p a share to develop its platform. The initial games will be knowledge-based and be played between AI-generated digital personalities. Initial income will be generated from introducing people to sports betting firms. Aquis-quoted AQRU (AQRU) invested £2.3m of that cash, which should last for two years even with limited revenues. Much of that cash will go on social media platform fees and directors pay. The share price ended the week at 3.5p (3p/4p). There were no shares traded on 5 January with four trades of 122,000 shares the following day.

Cadmium-free quantum dots developer Nanoco (NANO) has come to a settlement agreement in its litigation with Samsung relating to the infringement of Nanoco’s patents. The two companies have 30 days to secure a binding agreement. The US court proceedings were due to start on 6 January.

Funeral director Dignity (DTY) believes the latest offer from a consortium involving major shareholder Phoenix Asset Management could be acceptable. The initial offer was 475p a share, while the latest revised proposal is 525p a share in cash. Phoenix Asset Management owns 29.7% of Dignity. The bid vehicle is Yellow (SPC) Bidco Ltd, which is a joint venture between Phoenix Asset Management backed investment company Castelnau, which is managed by former Dignity chief executive Gary Channon, and a company established by Sir Peter Wood.

Antimicrobial and textile odour control materials developer HeiQ (HEIQ) says trading conditions have worsened because of weak consumer spending. There are also high levels of inventory in the market, which has hit reorder levels and customers are hesitant to invest in product innovation. HeiQ is acquiring Tarn-Pure for £850,000 in cash and shares. Tarn-Pure has IP relating to regulatory registrations to sell elemental copper and elemental silver for use in disinfecting hygiene applications.

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