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Quoted Micro 25 July 2022

  • BY: Andrew Hore |
  • POSTED: 24/07/2022 |

AQUIS STOCK EXCHANGE

In the six months to March 2022, S-Ventures (SVEN) reported an increase in revenues from £1.5m to £4.1m, although it remains loss making. The full benefits of acquisitions and the consolidation of warehousing has yet to show through. Even so, VSA has cut its 2021-22 revenues forecast from £11m to £9.4m S-Ventures will continue to lose money.

Arbuthnot Banking Group (ARBB) improved interim underlying pre-tax profit from £6.5m to £10.7m. NAV is 1300p a share.  The interim dividend is 17p a share. Customer loans increased by 5% to £2.1bn. Assets under management dipped to £1.3bn after the decline in stockmarkets. A West End long leasehold property has been sold at a value of £60m and a yield of 3.75%.

Shepherd Neame (SHEP) has acquired Bournemouth seaside bar and restaurant Urban Reef. This takes the total number of pubs owned by the Faversham-based brewer to 300.

Psych Capital (PSY) says that investee company Awakn Life Sciences has received C$2.5m of UK government funding for the phase III trial for a ketamine-assisted therapy for alcohol use disorder. Awakn will finance the other C$1.25m cost of the trial.

Vulcan Industries (VULC) is selling Orca Doors for £1. That gets rid of net liabilities of £751,000 and continued cash outflows. The fire door supplier has been hit by lockdowns and requires additional investment.

Ananda Developments (ANA) subsidiary DJT Plants has successfully self-crossed the first generation of cannabis plants. This will continue for six generations. The performance of various cannabis cultivars is being assessed.

AQRU (AQRU) subsidiary Accru Finance is partnering with Quickbit, a Sweden-based fintech, which will offer the Accru yield generating products to its customers.

Black Sea Property (BSP) has completed the purchase of Star Mil EOOD for a total consideration of Euro5.15m. The company owns a Black Sea hotel complex. A loan of Euro4.2m helped to finance the purchase.

Rogue Baron (SHNJ) has made its first sales of Shinju Japanese whisky to Austria and Switzerland.

Lombard Odier has reduced its stake in Chapel Down Group (CDGP) from 9.97% to 4.99%. Mark Horrocks has increased his stake in Quetzal Capital (QTZ) from 5.3% to 6%. A company related to Marula Mining (MARU) chief executive Jason Brewer has acquired 100,000 shares at 2.75p each.

Oscillate (MUSH) has acquired 2.5 million warrants in fully listed Dev Clever (DEV) for £250,000. The warrants are exercisable at 1p each up until 21 January 2024. Dev Clever is currently undertaking a reverse takeover.

AIM

Business restructuring business Begbies Traynor (BEG) increased underlying pre-tax profit from £11.5m to £17.8m in the year to April 2022. This was a combination of acquisitions and organic growth. The dividend has been increased from 3p a share to 3.5p a share. Net cash improved from £3m to £4.7m. Insolvencies are increasing, although the higher margin administrations are still relatively low. This could change over the next year or so, making the outlook positive.

Credit provider Morses Club (MCL) says an increasing level of customer redress claims means that it is considering a scheme of arrangement. This could provide certainty about the potential total level of claims over a set period. Management is talking with the FCA. The scheme would have to be approved by the majority of claimants. There will be an additional provision of £45m in the 2021-22 accounts and underlying pre-tax profit could be below £3.5m. Tighter controls mean that sales are declining, and Morses Club won’t make a profit in 2022-23. Fewer competitors could help Morses Club recover in the following year.

Disinfection products supplier Tristel (TSTL) announced a special dividend of 3p a share on top of a final dividend of 3.93p a share. Full year revenues are 4% ahead at £28.4m and adjusted pre-tax profit is 12% higher at £4.5m. The second half was stronger as more patient procedures have been undertaken. FDA approval for the Duo ULT could be achieved next year.

Footwear supplier Unbound Group (UBG) announced a fundraising generating £3.3m at a heavily discounted 15p a share. An open offer, which closes on 8 August, could raise up to £1m more. The footwear supplier is launching an online platform to sell third party branded products to a database of 4.6 million individuals. The cash will help to finance the expansion.

Stanley Gibbons (SGI) intends to cancel its AIM quotation. Graham Shircore is stepping down as chief executive in September and he will be replaced by Tom Pickford. The largest shareholder Phoenix SG believes it is better to cancel the quotation considering the limited free float and additional costs. The 58% shareholder also says that it would reconsider its financial support if shareholders do not agree to the cancelation. Stanley Gibbons remains loss making.

In-content advertising company Mirriad Advertising (MIRI) expects flat revenues in 2022 because of weak market conditions in China. The Chinese operations will be closed next year and that will save annualised costs of £1m. That is on top of the £2.5m of annualised savings expected for the business as a whole. Interim revenues have halved, although US revenues increased. There is £17.7m in the bank and cash should be higher than previously expected at the end of 2022. Cash outflows are still significant, though.

Window fittings supplier Titon (TON) says that supply problems with raw materials and components exacerbated by cost inflation have led to a reduction in margins. There have also been problems with IT, so this year’s figures will be lower than expectations. South Korea sales are disappointing but there should be a small profit contribution.

Restructuring services provider FRP Advisory (FRP) increased revenues from £79m to £95.2m in the year to April 2022, with 11% organic growth. Pre-tax profit improved from £21.2m to £23.1m. There are signs that administrations are starting to increase and that will boost demand for services.

Cambridge Cognition (COG) directors are buying shares following yesterday’s trading update. Chief executive Matthew Stork and finance chief Stephen Symonds each bought 22.950 shares at 113p each. The latter did not previously own shares. The digital brain health products developer increased interim revenues by 31% to £5.9m. The order book is worth £18.6m. There was a small profit and £8.6m in the bank at the end of June 2022.

The merger between Tern (TERN) and Pires Investments (PIRI) is not going ahead because not enough of the latter’s shareholders voted for it. Tern wants to generate cash from exiting one or more of its investments as soon as it is feasible. There will not be any new investments until there is a realisation of an investment, although there are likely to be commitments to existing investments that may mean a fundraising will be required.

An independent decision means that Newcrest Mining can pay $60m to Greatland Gold (GGP) to take up an option to acquire a further 5% stake in the Havieron project. Given the progress that has been made on the project over the past year this is an attractive price, and it is likely to take up the option. The cash will pay off the $50m loan facility from Newcrest and leave money for further investment. Greatland Gold will still own 25% of Havieron.

MAIN MARKET

Palace Capital (PCA) is changing its strategy. It was originally going to reinvest the cash from the sale of its industrial property assets into new regional office investments. Shareholder feedback means that the potential £46.5m raised from the disposal of the industrial portfolio and other non-core assets, after repayment of related debt, will be distributed in dividends or paid back via a tender offer. Three non-exec directors have resigned.

Kin + Carta (KCT) says revenues grew 48% in the year to July 2022. Peel Hunt has upped its 2021-22 pre-tax profit forecast from £16.6m to £16.9m. Net debt is estimated at £2.5m. Kelly Manthey will be taking over as chief executive.

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