News blog
AIM 50 Digest 27 September 2024
- BY: Andrew Hore |
- POSTED: 30/09/2024 |
Groceries and catering distributor Kitwave Group (KITW) is buying foodservice wholesaler Creed Catering Supplies for £60m plus an earn-out of up to £10m. Creed has been trading for five decades and has three sites in Cheltenham, Derbyshire and Buckinghamshire. The business made an operating profit of £8.3m in the year to May 2024. The freeholds are worth £3.4m and Creed has cash of £7m. A placing and retail offer raised £31.5m at 305p/share. Net debt is likely to be £62m by the end of October 2024.
Canaccord Genuity has slightly upgraded its pre-tax profit forecast for the year to October 2024, but the 2024-25 figure has been raised from £31m to £35.9m. There is a 3% upgrade in earnings to 33p/share despite the large share issue.
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Marketing services provider Next Fifteen Group (NFG) released a profit warning ahead of its interims because of the loss of a major customer. In the six months to July 2024, revenues were flat at £286.8m, while underlying pre-tax profit was 18% lower at £45.7m. There is general weakness in spending by technology customers, where spending was 13% lower in the first half. UK government spending fell by 28% due to the General Election. Consumer and retail are stronger markets. The interim dividend was maintained at 4.75p/share. Net debt was £74.8m at the end of July 2024. The 2024-25 pre-tax profit forecast is £106.7m and this is set to drop to £87.4m in 2025-26.
Chief executive Tim Dyson bought 10,791 shares at 461p each, while finance director Peter Harris also bought 10,791 shares at the same price. Chief operating officer Jonathan Peachey acquired 11,019 shares at 454p each. Chairman Panny Ladkin-Brand bought 1,083 shares at 460p each and 5,415 shares at 462p each. Non-exec Helen Hunter purchased 3,235 shares at 461p each.
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AB Dynamics (ABDP) says it will outperform expectations this year and it is acquiring Bolab Systems for £4.2m. Bolab is a Germany-based automotive power electronics testing business and the maximum payment could be £9.3m. The deal will be earnings enhancing in 2024-25. Founder Tony Best sold shares at 1950p each, but still owns 23.9%.
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Learning Technologies Group (LTG) has received a conditional bid approach from GASC APF and related funds at 100p/share. The board considers that this could be an appropriate level of cash bid. There would also be an unlisted equity alternative. Interim revenues fell 12% to £250.3m, but operating margins rose from 15.1% to 17.3% enabling a small improvement in operating profit.
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Brooks Macdonald (BRK) has sold its international business to Canaccord Genuity for £28m and up to £22.9m after two years depending on the achievement of revenue targets. That could reduce pre-tax profit by £2m this year. New outflows will also hit revenues. Pre-tax profit is forecast to fall from £34.1m to just above £30m.
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Asthma diagnosis devices developer Niox Group (NIOX) has launched a tender offer of up to £21m at 80p/share, which was a 21% premium to the share price. Interim revenues were 12% ahead at £21m and pre-tax profit improved from £2.9m to £4.4m. There was cash of £21.5m at the end of June.
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Oil palm plantations operator MP Evans (MPE) increased its interim dividend by 20% to 15p/share. In the six months to June 2024, revenues increased from $134.5m to $163.7m, while pre-tax profit jumped from $23.4m to $41.6m. There was a 5% increase in crop processed to 759,700 tonnes, while crude palm oil production was 6% higher at 177,000 tonnes. The mill-gate price improved from $755/tonne to $771/tonne. July and August production was more disappointing, but full year earnings expectations have been raised by 11% to 122.6 cents/share.
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accesso Technology (ACSO) raised interim revenues 5% to £69.2m, thanks to a rise in income from ticketing and distribution offsetting reductions elsewhere due to project delays.
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Advanced Medical Solutions (AMS) has reiterated its full year expectations after reporting an 8% increase in pre-tax profit to £14.8m even though gross margins declined. Net cash is £55.6m.
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Vets practices operator CVS Group (CVSG) increased annual revenues from continuing activities by 10% to £647.3m. Like-for-like sales were 2.9% higher, which was held back by the cyber attack on the company. Pre-tax profit fell 37% to £38.2m due to a combination of one-off costs and higher interest costs. That was before a £20m loss on disposals.
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Intermediaries services provider Fintel (FNTL) grew interim revenues from £31.7m to £35.7m, helped by acquisitions. The core operations are growing their contributions. Zeus has updated its forecasts for the most recent acquisition ThreeSixty Services. The 2024 forecast revenues have been raised from £74.3m to £77.5m, while pre-tax profit has been reduced from £18.4m to £17.2m.
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Defence equipment and services supplier Cohort (CHRT) says first half trading will be significantly ahead of the previous year. The order book is worth £575m.
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Mortgage Advice Bureau (MAB1) improved interim revenues by 5% to £123.9m, while underlying pre-tax profit was two-fifths ahead to £12.3m. The interim dividend is maintained at 13.4p/share. The market share for new mortgage lending edged up from 8.2%. Revenue per adviser was 9% higher. After a weak second quarter there are signs of demand gradually building. New case numbers are 11% ahead in July and August.
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Big Technologies (BIG) managed to offset some of the lost business from the Colombia contract, but interim revenues were still 3% lower at £26.5m. Zeus has downgraded. Full year revenues are expected to decline from £55.2m to £50.1m, while pre-tax profit could decline from £30.8m to £24.6m.
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LBG Media (LBG) increased interim revenues by 55% to £42.3m and pre-tax profit was 353% ahead at £7.2m, helped by the acquisition of Betches. Organic growth is ahead of expectations. The current financial period will be nine months to September 2024.
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M and C Saatchi (SAA) improved interim pre-tax profit from £11.3m to £14.2m on a 4% increase in revenues to £211.5m. Net cash is £12.9m. Third quarter trading has been solid despite market volatility.
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