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Quoted Micro 17 July 2023

  • BY: Andrew Hore |
  • POSTED: 16/07/2023 |

AQUIS STOCK EXCHANGE

Equipmake Holdings (EQIP) expects full year revenues of £5.1m, up from £3.7m. This is from commercial and production contracts. There was £7m in the bank at the end of May 2023. Equipmake is helping to electrify existing diesel buses. The contracted order book is worth £5.5m. Equipmake has supplied an e-drivetrain for a long-range electric flying boat.

Guanajuato Silver Company (GSVR) produced 941,338 silver equivalent ounces in the second quarter of 2023. This is the sixth consecutive quarter of increased production, although it is only slightly higher than the previous quarter, and the trend should continue.

Ananda Developments (ANA) released its figures for the year to January 2023 showing an increased loss of £1.29m. The medicinal cannabis company had cash of £19,000 at the end of January 2023. Since then, £427,000 was raised at 0.3p/share and £2.92m of loan notes were converted into shares. Cannabis medicines developer MRX Global was acquired after the year end. Costs will reduce when commercial cultivation and manufacturing commence. There was a mixture of buys and sells during the week, but by far the largest deal was a sell worth £5,200 at 0.52p/share.

In the six months to April 2023, Hydro Hotel, Eastbourne (HYDP) reported flat turnover of £1.8m. Gross margins fell, and overheads increased which meant that the hotel operator swung from a £22,000 profit to a loss of £171,000.

CRUSMETRIC Group (CUSH) more than doubled 2022 revenues to HK$10.8m and a restructuring of the business helped to reduce the loss to HK$5.79m. There is HK$129,000 left in the bank at the end of 2022.

SuperSeed Capital (WWW) has agreed an admission facility with the Aquis Stock Exchange. VSA Capital (VSA) has 100,000 warrants exercisable at 112p and any of these warrants exercised will be announced at the end of each month rather than on the day of issue. The exercise price is much higher than the market price of 82.5p.

EPE Special Opportunities Ltd (EO.P) had an NAV of 312.08p/share at the end of June 2023.

Personalised treatments developer EDX Medical Group (EDX) has appointed Erik Jensen as commercial director, UK and Northern Europe. He has worked with multinational diagnostics firms.

Independent directors Peter Green and Jonathan Lutz have resigned from the board of PanGenomic Health (NARA).

AIM

Healthcare investment company Intuitive Investments Group (IIG) is calling a general meeting and publishing a prospectus to enable a move from AIM to the Specialist Funds Segment of the London Stock Exchange. Existing shareholders are being offered the chance to realise some or all of their shareholding through a tender offer for 17.4% of the share capital at 5.25p/share. This could cost up to £675,000. The investment strategy will be adapted.

Fiinu (BANK) has been unable to raise the cash it requires to reapply for a banking licence. Fiinu has completed the development of the Plugin Overdraft. Costs will be reduced in the company’s subsidiaries. There was cash of £4.3m at the end of June 2023. This is enough to scale down the operations and meet financial obligations. Fiinu will try to secure the finance it requires but it may end up selling the underlying business.

Zoo Digital (ZOO) has been hit by the screenwriters’ strike in Hollywood in the first quarter. They went on strike during the period and the film actors started a strike at the end of the week. On top of this, major streaming clients have been reducing spending because of the losses being made by the services. This has cut demand for translation and other services. Zoo did better than expected in 2022-23 because of a change in accounting policy, but the pre-tax profit forecast for the year to March 2024, has been slashed from $10m to $3.3m.

Chain and transmission equipment Renold (RNO) reported better than expected 2022-23 results after a strong fourth quarter and this year’s forecast was upgraded. In the year to March 2023, revenues improved from £195.2m to £247.1m, while underlying pre-tax profit jumped from £11.5m to £18.6m. a higher tax charge held back earnings growth. This year’s profit forecast has been raised from £14.6m to £16.1m to reflect some destocking as supply chains get back to normal. Debt has been refinanced.

Refurbished technology supplier musicMagpie (MMAG) reported a reduction in interim revenues from £61.9m to £71.3m with books and media making a lower percentage of the total. Rental business is growing and helping to improve gross margin. The loss increased to £3.18m, partly due to higher exceptional charges and amortisation. Net debt rose to £13.6m because of investment in rental assets, which will generate £4m over 18 months. That investment will continue. There is a £30m debt facility, so there are enough funds available. The fourth quarter is important for the full year outcome.

Eco Animal Health (EAH) reported full year figures ahead of expectations. Revenues were 4% higher at £85.3m and pre-tax profit was flat at £3.9m. Net cash was £21.7m at the end of March 2023. Two poultry vaccines are near to submission for approvals. R&D exploration will be increased to £10.4m this year. The new products will reduce the dependence on pig treatment Aivlosin. A 2023-24 pre-tax profit of £4.3m is forecast.

Totally (TLY) increased full year pre-tax profit from £1.3m to £1.8m but the healthcare services provider warns that this year will be tougher. The total dividend has been cut from 1p/share to 0.625p/share. The main growth is coming from elective care services, where Totally is helping the NHS to reduce waiting lists. The loss of four contracts hit urgent care revenues and a lack of new tenders means that it will be difficult to rebuild them.

STM Group (STM) has received a potential cash offer of 70p/share from pensions company PSF Capital GP II Ltd. The cross border financial services provider has agreed in principle to this offer. The share price has not been that high for five years. There are a number of regulatory hurdles that will have to be negotiated before the bid can be completed, so even if a bid is announced it may take a while to go unconditional.

Helium One Global (HE1) has bought an Epiroc Predator 220 drilling rig so that it can start drilling the Tai-C well at the Rukwa site in Tanzania by September. An experienced crew will be required for this. Costs will be higher as they will no longer be shared with Noble, which has made its own arrangements.

Legal services provider RBG Holdings (RBGP) is selling its non-core litigation finance provider LionFish to Blackmead Infrastructure for up to £3.07m. The initial payment is £1.07m with the rest dependent on the cases taken on. This represents a book loss of £980,000. Four cases are retained, and they have a book value of £2.23m.

Battery technology developer Ilika (IKA) is near to signing a production deal with US-based Cirtec, which could be producing the Stereax battery by the end of the year. There are already orders from medical devices developers for this battery. Limited production is underway from the UK pilot plant, but large volumes will not be produced yet. Cash of £15.9m should cover requirements over the next two years.

Business recovery services provider Begbies Traynor (BEG) improved full year revenues by 11% to £121.8m with 6% organic growth. The company has a 11% market share in UK insolvencies. Pre-tax profit was 16% ahead at £20.7m. This year has started strongly. Net cash was £3m at the end of April 2023. The total dividend is 3.8p/share.

Compliance and renewables are propelling Kinovo (KINO) with 18% organic growth in revenues in the year to March 2023. Revenues improved from £53.3m to £62.7m, while pre-tax profit rose from £3.8m to £4.9m. Kinovo has already secured revenues of £64m for this year compared with forecast full year revenues of £72m. Kinovo has moved into net cash, but there will be a significant outflow this year due to the funding of provisions for contracts being completed by DCB, which have been guaranteed by the company.

Cyber security provider Corero Network Security (CNS) has returned to growth in the first half. Interim revenues were one-fifth higher at $10.6m. Annual recurring revenues grew 13% to $15.3m.

MAIN MARKET

Cleaning products manufacturer McBride (MCB) is benefiting from consumers saving money and switching from brands to lower priced own brands. The fourth quarter was particularly strong and full year figures will be ahead of expectations. There was 13% growth in volumes in the fourth quarter and the figure for the year to June 2023 was 5.4%. The full year results will be reported on 19 September.

Legal services provider DWF (DWF) has received a bid approach from Inflexion Private Equity Partners. The offer is 97p/share. Shareholders would also receive a 3p/share special dividend if the bid goes ahead. Shareholders would also be given the option to receive a partial loan note alternative with 65% in loan notes and/or preference shares and 35% in cash. There is also an option to reinvest 40% of the cash proceeds in loan notes or preference shares.

Great Southern Copper (GSCU) has found rock chip samples at Teresita in Chile that have up to 5.97% copper and 13.7g/t gold. This will help to yield drill targets. Terestia is on the Especularita copper gold project area in northern Chile. There were 160 rock chip samples. There is high grade copper gold mineralisation in outcropping quartz-carbonate vein-breccias. There will be further results from rock chip samples and soil sampling.

Aptitude Software (APTD) grew annualised recurring revenues organically by 3% in the first half of 2023. Demand has been softening. Cost savings are offsetting the impact on profit. Chief executive Jeremy Suddards is leaving, and the US boss is taking over on an interim basis. The pre-tax profit is still expected to rise from £7.7m to £10.6m.

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