News blog

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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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Impax Asset Management (IPX) edged up assets under management to £39.2m at the end of 2023.
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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.
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FD Technologies (FDP) finance director Ryan Preston has acquired 1,735 shares at 1200p each.

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