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Quoted Micro 29 May 2023

  • BY: Andrew Hore |
  • POSTED: 29/05/2023 |

AQUIS STOCK EXCHANGE

Shore Capital has updated its forecasts for Arbuthnot Banking Group (ARBB) following the recent fundraising and AGM trading statement. The benefits of interest rate rises have helped in the first four months of 2023. Loan balances are 1% higher at £2.2bn. The pre-tax profit forecast has been raised from £45m to £48.5m.

Cadence Minerals (KDNC) investee company European Metal Holdings (EMH) has gained EU approval for potential grant funding from the Just Transition Fund of €1.6bn for the 49%-owned Cinovec lithium tin project in the Czech Republic. The maximum grant could be €49m. WH Ireland estimates a fair value of 184p a share. Investee company Evergreen Lithium has identified rare earth elements at the Kenny project in Western Australia. Savings of around $28m have been identified on port refurbishment costs for the Amapa iron ore project. A loan facility has been secured for the project. The stake in Amapa will increase to 33%.

Share trading in Oscillate (MUSH) shares restarted after the suspension ended on Monday 22 May. Shareholders will be given the opportunity to vote on whether the company should continue for a further 12 months. If shareholders vote against the proposal, then they will be distributed assets. Currently cash is £1.17m and there are stakes in two Aquis companies Psych Capital (PSY) and Igraine (KING).

Hydrogen Future Industries (HFI) is buying the 49% it does not already own of HFI IP for an initial 14 million shares, with up to 20 million more shares that could be issued if milestones are achieved. The company is about to start the third phase of testing of an upgraded version of the one metre diameter wind turbine. The data will be used in the design of larger diameter wind turbines. Testing of an electrolyser has also started. Daniel Maling has become executive chairman, while David Ormerod has stepped down to a non-executive role.

Valereum (LON: VLRM) has signed an option agreement to purchase Sparta, which provides company services in Gibraltar. The services will be extended to include trust formation. The deal requires approval of the Gibraltar authorities. The consideration is £100,000.

Helium Ventures (HEV) has conditionally agreed to acquire Vestigo Technologies, which owns and distributes advanced tracking software product Trackimo. Final terms should be agreed shortly. As part of the acquisition process, Helium Ventures plans to move to the standard list and may also move to the Aquis Main Market. Trackimo has launched the NickWatch with Nickleodeon and this will help 2023 revenues grow in double digits.

Capital for Colleagues (CFCP) had an NAV of 77.78p a share at the end of February 2023, up from 68.38p a share one year earlier. There was a £1.06m gain on investments.

Seerave Enterprises has made a £350,000 strategic investment in EDX Medical (EDX) at 8p a share. The cash will be spent on cancer genomics.

Marula Mining (MARU) says the 75%-owned Kinusi copper project in Tanzania is moving towards copper ore processing activities in the second half of 2023. Final design work and costings are underway. Marula Mining is establishing a copper and graphite mining subsidiary in Kenya.

Gunsynd (GUN) investee company Omega Oil and Gas says the Canyon 1 well encountered significant gas shows from 3,506 metres down. The formation was thicker than for Canyon 2. Canyon 1 has intersected 424 metres of gas-rich zone. Gunsynd owns 450,000 shares in Omega.

IamFire (FIRE) has subscribed for a further £150,000 of convertible loan notes in WeShop Holdings. This takes the total investment to £2.85m. The conversion date has been extended to 18 May 2024.

Guanajuato Silver (GSVR) produced more than 938,000 ounces of silver equivalent in the first quarter of 2023. That was a record and the net loss declined to $8.7m.

Lift Global Ventures (LFT) says subsidiary Miriad has launched the Zaks Traders Café online channel, which broadens its investor relations services.

Tap Global Group (TAP) has appointed David Hunter as chairman. He will receive 500,000 options, exercisable at 4.5p, vesting on achievement of revenues of £4.2m by June 2024. A further 500,000 options are exercisable at the nominal share price if revenues reach £8m by June 2024. Oberon Investments (OBE) has appointed Galin Ganchev, who was formerly with Octopus Investments, as finance director.

Foresight, through Thames Ventures VCT1, has a 11.7% stake in DXS International (DXSP). This follows the recent fundraising where chairman Bob Sutcliffe raised his stake to 1.33% and chief executive David Immelman took his stake to 10.2%.

AIM

Calnex Solutions (CLX) had already warned that orders were delayed, and the full year figures were as expected. The telecoms testing equipment supplier reported a one-fifth improvement in pre-tax profit to £7.2m. There is a £19.1m cash pile even after capitalised development spending and the acquisition of iTrinegy. Pre-tax profit could fall to £4m, but cash generation remains strong. Investors were reassured.

BP Marsh (BPM) is selling its 18.7% stake in Kentro Capita, formerly Nexus Underwriting, to Brown & Brown for £51.5m, having more than quadrupled its investment. That is in line with the July 2022 valuation of the stake. That means that BP Marsh will have £55.2m of cash, which is more than two-fifths of the market capitalisation.

Eneraqua Technologies (ETP) had a bumper year to January 2023, helped by higher margin projects being moved to the fourth quarter. However, this year is set to be dominated by lower margin work for the energy and water efficiency business as social housing spending is held back. This year, pre-tax profit could fall from £10.1m to £7m, even though revenues will be higher. Margins should subsequently recover.

Oncimmune Holdings (ONC) is selling its IVD EarlyCDT Lung blood test antibody technology to US biotech Freenome for £13m. Part of the proceeds will pay down around 50% of the company’s debt and the rest will be refinanced. This enables Oncimmune to focus on the ImmunoINSIGHTS autoantibody profiling service business, where revenues are expected to double this year.

Cleaner energy technology developer Quadrise (QED) has completed the first phase of engine testing of bioMSAR fuel with biorefinery specialist Vertoro. Quadrise produced blends of bioMSAR including up to 40% of Vertoro’s crude sugar oil. When tested this fuel improved energy efficiency by 7% compared to normal diesel, reducing fuel consumption and emissions. Nitrogen oxides were reduced by up to 16% and carbon monoxide by more than 50%. Further trials are planned.

Pelatro (PTRO) reported an increased loss for 2022. The marketing business still made a bigger losds if the asset write down is excluded. Revenues fell by one-quarter to $5.4m, although it should recover to $8m this year.

Comparatives for XPFactory (XPF) are difficult because of past lockdowns. The 2022 figures were relatively free of disruption and revenues were £22.8m with a loss of £5.7m. Revenues are expected to grow to £42.6m with a pre-tax profit of £1.1m this year. Both the Escape Hunt escape room business and the Boom Battle Bar chain are trading strongly with new outlets opening. As scale grows the profit should continue to improve.

Full year figures were in line with expectations at Engage XR (EXR) and the extended reality company has already said that first quarter revenues were 40% ahead. There was Euro10.3m in the bank at the end of April. That should last well into 2025.

4basebio (4BB) announced a clinical material supply agreement with Italy-based Neomatrix to develop personalised cancer therapy utilising its hpDNA technology.  4basebio supplies synthetic DNA products and these will be provided for a neoantigen cancer vaccine programme.

MAIN MARKET

Finance provider S and U (SUS) improved profit in the first quarter. There was a small decline in receivables in the period, but they should start to build up again. There is funding headroom of £100m. The biggest profit improvement came from the Aspen property bridging loans business. Full year pre-tax profit is set to improve from £41.4m to £42.3m.

CBD products supplier Chill Brands (CHLL) has signed a deal with The Vaping Group to launch nicotine-free vapour products. UK sales of Chill Zero vapour products are expected to start in the summer. The Vaping Group has access to specialist and independent convenience stores in the UK. The UK vaping market is expected to grow to £4.5bn in 2027.

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