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Quoted Micro 10 October 2022

  • BY: Andrew Hore |
  • POSTED: 09/10/2022 |

AQUIS STOCK EXCHANGE

Arbuthnot Banking Group (ARBB) says full results should be ahead of market expectations of a £13m pre-tax profit. The third quarter trading statement says Arbuthnot Latham deposits exceed £3bn, although costs of deposits are rising. Base rate rises have a positive effect on results as changes to deposit rates lag the rises in interest rates. Credit criteria are being tightened, particularly for property. Assets under management are £1.35bn. Non-exec Sir Nigel Boardman acquired 9.749 shares at 810p each.

Helium Ventures (HEV) has conditionally agreed to acquire Vestigo Technologies, which has developed tracking product Trackimo. Shares will be issued at 10p each and the existing share capital prior to the deal would be valued at £1.68m. Helium Ventures plans to move to the standard list after the reverse takeover. In 2021, Vestigo had revenues of $28.1m and has partnerships with Vodafone and Paramount. Trading in the shares has been suspended.

Quantum Exponential (QBIT) had net assets of £5.6m at the end of April 2022, following an increase in the value of its option in cyber security business Arqit Inc. Since then, two new quantum technology investments have been made. There is still cash for further investments and there are plans to set up a fund that will raise further funds to invest in quantum technology.

Hydrogen Future Industries (HFI) has acquired a suite of international patents through a joint venture. The patents are relevant for the company’s wind-based hydrogen production system, plus other systems. The patents were issued to the vendor when it employed the boss of HFI’s development subsidiary. The payment will be £33,000 in cash, 5.2 million shares and 2.5 warrants exercisable at 12p each, with the second tranche of the payment dependent on the achievement of development milestones.

National Milk Records (NMRP) generated a 6% increase in 2021-22 revenues to £23.2m, while pre-tax profit improved from £1.65m to £2.22m. The dividend was raised by one-third to 2p a share. The milk recording and testing services increased revenues. The biggest increase was in genomics which rose from £292,000 to £488,000 and there is a potential launch in the US during 2023.

EPE Special Opportunities Ltd (ESO) has invested £2m in Denzel’s Ltd, a premium dog snacks brand, which raised £3m in total. Denzil’s has listings in major supermarkets and has launched its own website. It is part of the Tesco Incubator Programme.

There has been a mineral resource upgrade at the Amapa iron project in Brazil, where Cadence Minerals (KDR) owns 27%. The updated resource at Amapa is 276Mt grading 38.33% Fe, up from 177Mt. The measured resource is 55Mt grading 39.26% Fe.

Capital for Colleagues (CFCP) had net assets of £13.8m at the end of May 2022, equivalent to 74.5p a share.

S-Ventures (SVEN) has gained new contracts for its natural food businesses with ASDA, Holland Barrett, Co-op, WH Smith and easyJet. Two retailers in Finland have started stocking company products.

Marula Mining (MARU) has taken a 49% interest in the Kinusi copper mining project in Tanzania. The licences last seven years. In return for the interest, Marula has reimbursed $50,000 of costs incurred by Takela Mining and issued it with 4.5 million shares at 2p each.

Quetzal Capital (QTZ) had £1.07m in the bank out of net assets of £2.86m at the end of June 2022.

Goodbody Health (GDBY) secured a distribution agreement with blood collection services provider Tasso Inc, which supplies virtually painless medical devices to draw a blood sample with no needles. Goodbody’s clinics will be able to extract more blood than from a finger prick.

Hydro Hotel, Eastbourne (HYDP) reinstated the interim dividend at the rate of 14p a share.

Director buying at Kent-based brewer Shepherd Neame (SHEP) pushed the share price 0.4% higher at 672.5p. Richard Oldfield bought 6,000 shares at 675p a share and George Barnes acquired 3,200 shares at 672p each. The final dividend is 15p a share and the shares go ex-dividend on 13 October. Coinsilium (COIN) chairman Malcolm Palle acquired 500,000 shares at 1.9p each, while chief executive Eddy Travia bought 500,000 shares at 1.95p each. The share price rose 8.11% to 2p.

Global Smollan has increased its stake in Samarkand Group (SMK) from 14.8% to 17.6%.

Pioneer Media Holdings Inc (PNER) has raised $1m through a sale of units at 10 cents each. They include one share and one-half of a warrant exercisable at 25 cents. This cash will be spent on technology development and expanding the web3 gaming business.

Invinity Energy Systems (IES) has sold a 1.3MWh VS3 flow battery system for use in a datacentre in Arizona. Amati reduced its stake from 5.87% to 4.92%.

Trading in the shares of Vulcan Industries (VUL), Hot Rock Investments (HRIP) and VVV Resources Ltd (VVV) has been suspended due to failure to publish results.

AIM

Peter Gyllenhammar has taken a 11.2% stake in Pressure Technologies (PRES) following the share price slump after last week’s trading statement. Pressure Technologies had a disappointing second half. There will be a full year loss and the engineering company will also breach covenants on its bank facility. More cash is required. Net debt was £5.4m at the interim stage and it could be £3.9m at year-end. The finance could come from a share issue or a convertible issue or another form of funding. Management is talking to Lloyds about the bank facility. Forecast net assets are £15.4m, including the company’s main factory, which is nearly double the market capitalisation.

Former broker analyst Bill Currie has taken a 4.15% stake in online retailer In The Style (ITS). He is a non-executive director of retail loyalty technology developer Eagle Eye (EYE) and he owns 12.9% of the company. Lombard Odier has cut its stake from 20.1% to 19.8% and Ameriprise Financial has reduced its stake from 5% to 4.39%.

Gateley (GTLY) has acquired patent attorney Symbiosis IP for up to £2.5m. The business made a pre-tax profit of £300,000 in the year to March 2022. This business fits with Adamson Jones.

In video game advertising technology developer Bidstack (BIDS) raised £10.5m at 2.85p a share. Irdeto subscribed for £5m worth of shares. There are plans to develop a platform for sports bodies to control content that appears in their licenced IP. The rest will go on working capital and commercial development.

Public Policy Holding Company Inc (PPHC) is acquiring California-based KP Public Affairs in an earnings enhancing deal. Public Policy Holding Company provides public affairs, crisis management and lobbying services in the US. The acquisition enhances earnings by 2% in 2022 and 9% in 2023.

NWF (NWF) continues to perform strongly with the feed division recovering, helped by higher milk prices, and food distribution trading better than expected. Fuel distribution volumes are lower than in the previous year as people delay refilling their tanks, although margins have improved.

Seeing Machines (SEE) has an exclusive collaboration deal with Magna International for rear view mirror occupant monitoring applications in vehicles. Magan is paying $17.5m in cash ($10m immediately and $7.5m over two years) and investing $47.5m via a convertible note, which is convertible at 11p a share. This should be enough cash to get the driver monitoring technology business to profitability.

Oxford Biodynamics (OBD) is raising £9.1m via a placing at 20p a share and up to a further £2.95m could be raised through a one-for-6.81644 open offer. The share price rose 56.3% to 17.975p, which is still well below the placing price. This cash will help to fund the commercial development of the EpiSwitch CiRT test for cancer, which has been issued with a US reimbursement code earlier in the week.

Parcel and freight delivery company DX (DX.) has published interim figures and it intends to recommence dividend payments. A total dividend of 1.5p a share is expected for 2022-23 and that provides a base for further growth. Cash could still grow steadily. Trading in the shares remains suspended.

PCF Group (PCF) has suspended new lending by PCF Bank while it is trying to raise additional finance. Castle Trust Capital decided not to bid for PCF. Sales of assets and other options to raise money are being considered. There will be further cost cutting.

Battery cells developer AMTE Power (AMTE) has signed a framework deal with the UK Battery Industrialisation Centre to produce up to 60,000 Ultra High Power cells annually. The cells are fast charging and have high power delivery. Production commences in three months and the cells will be used for in-vehicle trials by potential customers – the initial focus is high performance electric vehicles – ahead of the opening of AMTE’s own factory in Dundee in a few years.

Horizonte Mining (HZM) announced a fundraising on Tuesday evening and the size of the placing was increased from £61.7m to £70.5m at 90.5p a share. This larger fundraising has also reduced the contribution from major shareholder La Mancha from £23.8m to £22m. The cash will help to complete the construction of the Araguaia nickel project in Brazil. Total capital cost has increased from $477m to $537m. First production is scheduled for the first quarter of 2023.

Gold miner Chaarat Group Holdings (CGH) has extended the convertible loan notes from 31 October 2022 to 31 July 2023. Interest will be capitalised until the end of October and then the principal of $28.7m plus accrued interest will incur an annual interest rate of 12%. There is also a fee of 1%. If converted there will be 77 million shares issued.

MAIN MARKET

Shell company Milton Capital (MII) floated on the standard list on 4 October. There was £1m raised at 1p a share. The share price ended the week at 1.1p. The initial focus is acquisition targets in the technology sector. Total flotation costs were capped at £50,000 and Peterhouse paid additional costs of £5,955. The first year’s operating costs will also be £50,000.

Data integrity software supplier Gresham Technologies (GHT) has won a £1m plus contract for Clareti Control from a major European financial and banking group. There is also A$19m of work for ANZ in the year to September 2023, which is 15% higher than last year on a constant currency basis. Full year revenues and profit will be ahead of expectations.

Golden Nice International has subscribed £650,000 worth of shares in Anglo African Agriculture (AAAP) at 5p a share. That is a 28.2% stake. There are also 13 million warrants exercisable at 5p each. Golden Nice International has also acquired 65% of convertible loan notes in issue at a 15% discount to face value. They convert into 13.7 million shares at 5p each. The other loan notes will be converted into 7.37 million shares with associated warrants. Andrew Monk and Matt Bonner have resigned and replaced by Andy Sui and Simon Grant-Rennick. The company is changing its name to Everest Global.

Shell company Insight Business Support (IBSU) had net assets of £530,000 at the end of June 2022, including cash of £440,000.

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