News blog

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.
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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.
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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.
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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.

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