News blog

Quoted Micro 26 March 2018

BY: Andrew Hore |
POSTED: 19/06/2018 |

NEX EXCHANGE

Continuing revenues from renewable energy supplier Good Energy (GOOD) increased from £89.7m to £104.5m but underlying pre-tax profit was nearly two-thirds lower at £734,000 due to higher admin and interest costs. There was also a decline in gross margin. An increase in working capital meant that there was a £4.92m cash outflow from operating activities. There was a decline in NAV due to the loss on discontinued generation development activities. Net debt was £53.1m at the end of 2017.
Brewer Adnams (ADB) reported a 9% increase in beer volumes in 2017, even though cash sales fell by 5%. Overall sales were 6% ahead at £74.8m despite losing £1m in revenues from the closure of the Swan Hotel for refurbishment. Even if the exceptional expenses of £721,000 for removing asbestos from the Swan Hotel, are added back, the pre-tax profit, excluding disposal gains, fell from £3.59m to £1.6m. Capital investment continues with the IT system being upgraded. The full year dividend was edged up from 226p a share to 228p a share. There plans to produce an alcohol-free version of Ghost Ship.
MetalNRG (MNRG) is selling its 15.4% stake in US Cobalt to ASX-listed Tyranna Resources, which is acquiring the whole of the company. MetalNRG will receive 21.7 million shares in Tyranna at a valuation of A$0.017 a share. The shares are trading at A$0.025, which would value the deal at £300,000. First Sentinel has raised £45,000 at 13p a share and issued a further £25,000 worth of shares at the same price to market maker Winterflood.
Coinsilium Group Ltd (COIN) has exercised its option to take its stake in Indorse to 10%. The additional 3.5% of the company is being bought for £97,000, taking the total investment to £246,000. Singapore-based Indorse has tested its blockchain-based social network for professionals and moved to the Mainnet. A new feature will enable token issuers to verify their advisory board. Coinsilium is advising Bundle Network on its token generating event. Bundle enables people to trade across unconnected cryptocurrency without needing to open individual accounts.
Imperial Minerals (IMPP) has raised £20,000 at 2p a share. There was just over £37,000 in the bank at the end of 2017, following a £35,000 cash outflow in the previous six months. Imperial is still seeking an opportunity in metals, such as gold, lithium, cobalt and zinc.
First Sentinel (FSBN) has appointed Colin Maltby to the board and invested £43,500 in the Union Jack Oil (UJO) placing raising £1.25m at 0.085p a share.
Baron Bloom has stepped down from the board of Etaireia Investments (ETIP) after the publishing of criticism by a judge, who said that he had been dishonest during divorce proceedings with his ex-wife.
Block Commodities (BLOC) has entered into a strategic partnership with blockchain-based financial services platform Wala and token issuer Dala. The businesses will be working together to establish the blockchain-based agricultural commodity trading initiative that Block has been developing. Dala would be used as the token for the food commodities trading ecosystem. Block’s existing joint venture will supply $10m of Dala token loans to 50,000 small farmers in sub-Saharan Africa.
Dana Group International Investments Ltd (DANA) increased its net assets from $0.31 a share to $0.36 a share in 2017. There was a $4.15m increase in the valuation of the investment in Bonyan International Investment.

AIM

New management at social video content developer and owner Brave Bison (BBSN) will be judged on this year’s figures rather than the 2017 results. In 2017, revenues fell 48% to £9.1m and cost cutting helped to reduce the underlying operating loss before the restructuring costs and write-offs of acquired intangibles. The cash outflow from operations fell by two-thirds to £1.53m. There is £4.82m in the bank so that provides time for further improvement in performance. Collecting ad revenues for third party content on social platforms remains a significant revenue generator but commissioned sponsored content is becoming an increasingly important fee earner.
Cambridge Cognition (COG) reported a small decline in revenues because of lumpy contract wins in the previous year and the delays to two clinical trials. A small loss was reported but the neuroscience health company is expected to bounce back this year to a profit of £500,000.
Utilitywise (UTW) has finally published its figures for the year to July 2017. More conservative accounting policies mean that an under consumption of energy increased the loss to £8.5m. The utility cost management adviser had a £6.18m cash outflow from operating activities. Net debt rose from £5.5m to £19m and banking covenant breaches have been waived by the bank. The debt increase was partly down to dividend payments but there is no final dividend. The interim results will be published on 23 April.
Energy procurement business Inspired Energy (INSE) increased its underlying pre-tax profit from £7m to £9.7m, while earnings per share were one-quarter higher at 1.57p. Inspired has bought SystemsLink 2000, whose software Inspired uses, for £3.875m and Energy Cost Management, which specialises in water management services, for up to £2m.
Rose Petroleum (ROSE) is confident that the 3D seismic data that has been acquired over the Gunnison Valley Unit on the Paradox oil and gas acreage in Utah provides the information required to decide a drill site for the fourth quarter and attract a farm-in partner to help finance the drilling. There are ongoing discussions with prospective partners and this should ensure that the current cash in the bank will last longer. Last September, £3m was raised at 4p a share.
Immupharma (IMM) says that it expects results from its phase III trial for Lupuzor by mid-April. The Lupus treatment has generated the required data and this will be analysed.
Wynnstay Group (WYN) continues to benefit from improved sentiment in the farming sector. Feed demand is above last year’s levels and grain volumes are improving, although margins are squeezed. Like-for-like retail sales are higher and an outlet has been acquired in mid-Wales.
Trading in Green and Smart Holdings (GSH) shares has been suspended because it will not publish its 2016-17 accounts by the end of March. The audit should be completed by the end of April.
CloudCall Group (CALL) grew revenues by two-fifths last year. The underlying loss was £2.6m and further investment in sales and marketing means that even though revenue growth could be near to last year’s level the loss will be similar. The recurring cloud-based software and telecoms services revenues that will be generated from the investment will reduce the loss and move the business into profit in the following two or three years.
James Latham (LTHM) says that its figures for the year to March 2018 will be in line with expectations. This reflects an improvement in the second half. The Wigston timber depot has been moved to a new site.
Parity Group (PTY) has signed a managed services deal with Primark Stores and, along with other extensions, this takes annual revenues from this area to £5m plus. Primark is important because most of the clients on this side of the business are in the public sector. Parity can generate £2m of cash a year.
Gama Aviation (GMAA) reported a 28% rise in underlying operating profit to $18.7m. The main growth has come from the aircraft management business, which was boosted by acquisition in the US. There were also improvements in Europe and Middle East. Gama is investing in two new ground maintenance sites in the US and this continued investment is holding back short-term profit for this division.
KCR Residential REIT (KCR) has raised £1.56m at 70p a share and capitalised loans of £1.59m. The cash will be invested in the private rental portfolio. Debt has been reduced to 45% of investment property value. Energiser Investments (ENGI) has taken a 24.7% in KCR by subscribing for shares and capitalising its £494,000 loan.
There was a cash outflow of £738,000 at Botswana Diamonds (BOD) in the six months to December 2017. That was before the £865,000 raised in a share issue. There is £230,000 left in the bank. A scoping study is being undertaken at the Thorny River project in South Africa. Drilling continues at the Ontevreden project.
Golden Saint Resources (GSR) is asking for shareholder backing for leaving AIM on 24 April. It still plans to acquire EMS Wiring Systems but it wants to join the standard list after the deal goes through.
OKYO Pharma Corporation left AIM on 23 March and the company has migrated to Guernsey. A special dividend payment is planned.
NWF has received bid acceptances for the equivalent of 42.6% of the share capital of Stellar Diamonds (STEL).
Directa Plus (DCTA) has entered into an agreement with Sartec to develop a system to treat contaminated water in the oil and gas sector by using the Grafysorber technology. Directa Plus provides the technology and support while the partner will finance the development of the first plant, starting in the second quarter of 2018.
Noel Collett is stepping down as chief executive of retail butcher Crawshaw Group (CRAW) but he will remain while a replacement is found. Finance director Alan Richardson plans to move to a new job in May. Crawshaw is estimated to have lost £2m in the year to January 2018, Trading has been poor in the first six weeks of the new financial year. There was £5m in the bank at the end of January 2018, which is similar to the company’s market capitalisation.
Grafenia (GRA) says trading has been mixed. Volumes and margins in the printing business have been below budget in recent months. Grafenia is trying to replace these revenues with licence fees, signage and website sales. Full year revenues will be two-fifths higher at nearly £15m and the loss will be similar. Net debt will be around £2.85m.
Gaming Realms (GMR) has sold two affiliate businesses for up to £2.4m. Their revenues have been declining. In 2017, group revenues were flat at £31.6m but continuing operations made a positive underlying EBITDA. Real money gaming revenues were 5% higher but social revenues were lower. New licensing deals have been signed with the likes of 888 and Golden Nugget Casino this year.
Vipera (VIP) says that 12.5% shareholder Sella Open Fintech Platform is contemplating making a bid for the mobile financial software developer.
Gatemore has taken its stake in TLA Worldwide (TLA) to 7%. Gatemore took its initial stake just after trading in TLA, which is most famous for publishing a profit warning after trading had finished prior to Christmas 2016, recommenced after it published its 2016 figures last November.
Harwood Wealth Management (HW.) is paying £4.6m, plus £1.54m for cash balances, for Southampton-based AE Financial Services. The business generated a profit of £500,000 last year.
Altona Energy (ANR) has reviewed the data for the Westfield tenement and put together a three phase drilling programme. This will cost A$1.5m in total, with the first phase costing A$230,000. The second phase will help to define a JORC resource. The final phase will be part of the preparation of a bankable feasibility study. The drilling is targeting shallow coal seams.
More bad news from toilet tissue manufacturer Accrol Group Holdings (ACRL) and the share price has fallen by three-quarters. The loss is going to be higher than expected. Net debt will be £34m by the end of April.

MAIN MARKET

London and Associated Properties (LAS) says that the tenant of Brixton Markets has exercised its pre-emption rights to acquire the markets. Market Village will pay £37.25m for assets that have a book value of £24.5m.
Bluebird Merchant Ventures Ltd (BMV) says it has made swift progress at the Kochang mine and sampling of the underground workings is ongoing. This has cost $65,000 so far. Feasibility studies at Kochang and Gubong should be completed in the third quarter of 2018. Bluebird has to spend $500,000 on each project to earn 50% in a joint venture for each project with Southern Gold.

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