News blog

AIM 50 Digest 31 January 2025

BY: Andrew Hore |
POSTED: 02/02/2025 |

Fevertree Drinks (FEVR) has signed a strategic partnership with brewer Molson Coors, which will acquire a 7.5% stake in the mixer drinks supplier at 654.2p/share. The £71m raised will be used for share buybacks. The company’s mixer drinks will be sold through Molson Coors’ US distribution network and marketing will be ramped up. There will also be US production of mixer drinks. Three directors subsequently bought shares. Jefferies has been appointed as joint broker.
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Engineering services Renew Holdings (RNWH) has a solid track record, but this has been knocked by the timing of the rail renewal programmes. Rail is nearly two-fifths of revenues. The timing of the renewal spending is uncertain, and Peel Hunt has reduced its 2023-24 earnings forecast by 10% to 63.6p/share, down from 65.9p/share the previous year. The water business has been strong, and the order book is growing. Non-executive director Liz Barber made an initial purchase of 2,830 shares at 709p each and other non-execs also bought shares.
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Mortgage Advice Bureau (MAB1) did slightly better than anticipated in 2024. In 2024, there was 4% growth in UK gross lending, while Mortgage Advice Bureau grew revenues by 11% to £266m. Pre-tax profit recovered 31% to £30.5m before the benefit of £1.5m of capitalised development costs. Average revenues per adviser rose 12% to £138,000. That was partly down to a lower level of new recruits than expected, because they take time to build up their income. However, this is a significant underlying improvement. As the market recovers, there should be an acceleration of recruitment.
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Interim figures from Hargreaves Services (HSP) show growing services revenues and an improved contribution from HRMS. In the six months to November 2024, revenues are 14% ahead at £125.3m. HRMS in Germany made a small profit contribution, compared with a £1.9m loss in the corresponding period. Pre-tax profit nearly doubled to £5.3m. That was despite a higher loss in the property business. The dividend was raised 3% to 18.5p/share.
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Volex (VLX) generated revenues of $789.4m in the nine months to the end of 2024 with organic growth of nearly 10%. Medical sales have weakened in the third quarter, but there is growth in the electric vehicles market. Operating margins are within target range. Net debt is $151m. Jefferies has initiated research and is forecasts an underlying 2024-25 pre-tax profit of $76.5m.
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Information management software provider IDOX (IDOX) grew revenues by one-fifth to £87.6m, while pre-tax profit edged up from £15.8m to £16.1m. Geospatial data operations grew strongly. There was a dip in margins due to the General Election, but the trend still appears to be upward. The dividend was raised from 0.6p/share to 0.7p/share. Net debt was £9.9m at the end of October 2024.
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Semiconductor wafer manufacturer IQE (IQE) is partnering with Quintessent Inc to develop the world’s first large-scale quantum dot laser (QDL) and semiconductor optical amplifier (SOA) epitaxial wafer supply chain. Quintessent Inc has made an initial order of $500,000. This follows the announcement that 2024 revenues were better than expected at £118m. The loss is still likely to be more than £24m.
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Serica Energy (SQZ) generated 2024 revenues of $726m, down from a pro forma figure of $920m in 2023. That was due to lower average production and reduced gas prices. Net debt was $71m at the end of 2024. This year, average production is expected to be around 40,000 barrels of oil equivalent per day with maintenance causing reductions in the second half. A move to the Main Market is planned for 2025.
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Oil palm plantations operator MP Evans (MPE) continues to be a beneficiary of strong palm oil prices. There was a small weather-related dip in production. Cavendish has raised its 2024 earnings forecast by 8% to 152.5 cents/share but maintained 2025 and 2026 forecasts for the time being.
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Leisure and ticketing technology provider accesso Technology (ACSO) says 2024 revenues will be in line with guidance at $152m. Excluding $3.3m of pass-through revenues that were ended, the growth is 4%. EBITDA margins will be above the 13%-14% guidance range at around 15%. Net cash was $28.7m at the end of 2024.
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ITM Power (ITM) reported interims in line with the recent trading statement, but cash expectations have been upgraded. Interim revenues were £15.2m, including £10.8m from one customer, and cash was £203m at the end of October 2024. The cash outflow is slowing, and net cash is expected to be £185m-£195m at the end of April 2025. The contract backlog is £135.3m. ITM Power is jointly developing a design configuration for a 10MW green hydrogen plant with an unnamed European energy company. This will be used in several UK projects. The design involves two 5MW NEPTUNE V electrolyser systems.
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Alaska-focused oil and gas explorer Pantheon Resources (PANR) anticipates a resource upgrade in the Ahpun Eastern Topset area with at least four well tests planned for Megrez-1. The tests will start in the first quarter and should be completed by the end of June. There could be an increase in resources of up to 50% in the four reservoirs, which were estimated at 609 mmbbls prior to drilling. The executive order to proceed with the gas pipeline means that the required infrastructure should be available.
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Learning Technologies Group (LTG) has confirmed the recommendation of a 100p/share cash bid from technology investor General Atlantic despite a delay in the general meeting to gain shareholder approval. That values the company at £802.4m. The company warns that the new US regime will hit revenues for DEI related training this year.
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Alliance Pharma (APH) says 2024 profit will be in line with the 2023 figure on revenues 1% lower. The board is recommending a bid of 62.5p/share by Aegros Bidco, which is owned by DBAY Affiliates and the ERES IV Fund.
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Remote monitoring technology developer Big Technologies (BIG) plans to announce 2024 results on 2 April. Adjusted EBITDA is set to decline from £33m to £27m following the loss of a client in Colombia.
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LBG Media (LBG) says trading was ahead of expectations in 2024. Revenues were 22% higher at £86.1m, while pre-tax profit was one-third ahead at £14.5m. Cash is £27.2m.
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Floorcoverings supplier James Halstead (JHD) says interim revenues will be slightly lower, but pre-tax profit should be similar to the £27.4m made in the corresponding period. There was destocking in the UK in the first half. The Middle East and the Americas were stronger.
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Ashtead Technology (AT.) expects 2024 revenues of £168m and EBITDA will be ahead of consensus. Peel Hunt has been appointed as joint broker.
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Midwich Group (MIDW) 2024 revenues rose slightly to more than £1.3bn, but gross margin was a new record at 17.1%. There was a small dip in organic revenues. Net debt was £130m at the end of 2024. The full year results will be reported on 18 March.
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Marketing services provider Next 15 Group (NFG) admits that full year profit will be at the bottom of the range of expectations. There will be redundancy costs of £15m Annualised savings will be £40m. New business wins will benefit the new year and there should be a recovery in government work. More AI products will be launched. Peter Harris is stepping down as finance director.
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Financial services support activities provider Fintel (FNTL) increased full year revenues by 21% to £78.3m with SaaS and subscription revenues 17% higher at £44.1m. Net debt was £23.7m at the end of 2024. Regulatory approval has been received for the acquisition of Rayner Spencer Mills Research. There will be additional National Insurance costs of £650,000 in 2025, but this should be offset by cost savings.
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Vet practices operator CVS Group (CVSG) increased interim revenues by 7% to £341.8m. Like-for-like sales dipped 1%. EBITDA was slightly higher at £67.4m. Further acquisitions will be made in Australia with £23.3m already spent since June 2024. Net debt is £182.9m. The CMA investigation continues.
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Digital marketing technology and services provider Dotdigital (DOTD) confirmed it is on track to meet full year expectations. First half revenues are 9% ahead at £42.4m. Churn levels have reduced. North America, which had been a problem, grew by one-fifth.
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Redcentric (RCN) appointed Brian Woodford as chief executive. He has worked at Capita and Vodafone. David Senior is stepping down as finance director.
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Cohort (CHRT) has completed the acquisition of Australia-based satellite terminals supplier EM Solutions.
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Brooks Macdonald (BRK) has commenced its share buyback programme of up to £10m.
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Gamma Communications (GAMA) director Colin Lees bought an initial 3,079 shares at 1300p each. Polar Capital (POLR) chief investment officer Alexander Black sold 11,000 shares at 512.6902p/share. SigmaRoc (SRC) chairman David Barrett acquired 85,000 shares at 70.6p each.

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