News blog

Quoted Micro 7 August 2023

  • BY: Andrew Hore |
  • POSTED: 06/08/2023 |

AQUIS STOCK EXCHANGE

Aquaculture and geotracking technology developer OTAQ (OTAQ) reported interim revenues one-third lower at £1.8m, but they were higher than the second half of last year. There was an interim loss, and it will not get near breakeven until it generates more than £5m in annual revenues. Net debt is £510,000. Two large order will be delivered in the second half and revenues could hit £4m this year.

Equipmake Holdings (EQIP) has been awarded a £1.475m contract to repower eight double decker buses to electric for the Newport area in South Wales.

Brewer Adnams (ADB) chief executive Andy Wood intends to step down at the end of 2024. Michael Heald increased his stake from 20.4% to 21.4%, while Sidney Sussex College cut its stake from 3.17% to 2.12%.

Wishbone Gold (WSBN) has raised £1.42m at 2.4p/share. That compares with the initial target of £1m. The cash will be used to fund exploration at Red Setter and Cottesloe in Australia.

Vulcan Industries (VULC) lost £210,000 in the quarter to June 2023, while net liabilities were £9,000. Net debt is £3.1m. The company has moved into the battery storage sector.

KR1 (KR1) had a net asset value of 51.09p/share at the end of June 2023. The share price fell 9.76% to 55.5p.

Cadence Minerals (KDNC) investee company Hastings Technology Metals has executed an EPC contract with GR Engineering Services for the Yangibana beneficiation plant and infrastructure. The contract is worth $210m.

RentGuarantor (RGG) increased interim revenues by 79% to £305,000, but the loss increased from £353,000 to £408,000. Net liabilities increased from £347,000 to £798,000.

ProBiotix Health (PBX) has signed an exclusive distribution agreement with Trans Chem covering the probiotics markets in Australia and New Zealand.

SulNOx Group (SNOX) generated revenues of £82,000 in the three months to June 2023, which is similar to the previous quarter. There was cash of £839,000. Costs have been reduced.

Semper Fortis Esports (SEMP) had £528,000 in cash at the end of January 2023. That was before the £100,000 raised at 1p/share and subsequent £250,000 investment in convertible loan notes in GL Membership, which offers daily prize draws. The plan is to acquire the business and due diligence is ongoing.

MaxRets Ventures (MAX) still has two legacy cannabis sector investments, but the new focus is life sciences, fintech, environmental and retail. There was cash of £204,000 at the end of April 2023.

Apollon Formularies (APOL) is not proceeding with the proposed deal with Global Hemp Group. Nick Ingrassia has resigned from the board.

Oscillate (MUSH) is seeking approval for the members voluntary liquidation of the company. Cash and assets will be distributed to shareholders.

AIM

Francisco Partners II is making a recommended cash offer for e-waste and data erasure company Blancco Technology Group (BLTG). The bid is 223p/share. The share price has not been as high as the bid for 18 months. Blancco management believe the help of a backer with cash to invest and experience of growing technology companies will help to expand the business.

Battery technology developer Ilika (IKA) has agreed a contract with contract manufacturer Cirtec Medical. The licence to manufacture agreement for Stereax batteries lasts for ten years and is exclusive in the medical devices sector. Initially there will be profit sharing before moving to royalties based on battery volumes. Ilika is transferring machinery to Cirtec Medical to operate on loan. Ilika retains the manufacturing of the cathode.

Shareholders in Celsius Resources Ltd (CLA) have persuaded the board to have further discussions with Silvercorp Metals over some commercial aspects of the proposed bid.

Food allergy and health products supplier Omega Diagnostics (ODX) reported a reduction in full year revenues from £8.5m to £7.5m and a higher loss. Non-core operations have been sold and production problems resolved. Capital investment in new production machinery is being considered. A smaller loss is expected this year but there should still be net cash of £3.2m at the end of March 2023.

Video games producer Devolver Digital (DEVO) does not expect to make a profit this year because of delays in games releases and weaker than expected back catalogue revenues. Revenue forecasts have been cut by more than one-fifth to $90.4m. Four months ago, the forecast revenues were $127.7m, so this is the second downgrade in recent months. In contrast, Team17 (TM17) says that trading is in line with expectations, which contrasts with many of its rivals. Interim figures will be reported on 19 September.

Although revenues fell at Filtronic (FTC) it is winning new orders and diversifying its customer base. There was a greater proportion of lower margin 5G equipment revenues with component shortages hitting some areas of the business. There were also initial revenues from space. Full year revenues dipped from £17.1m to £16.3m, while underlying pre-tax fell from £1.5m to around £100,000. Contracts won will increase revenues this year and pre-tax profit is expected to recover to £800,000. The share price has risen strongly in recent weeks on the back of contract news, so it is not a surprise that there has been some profit-taking.

Aptamer Group (APTA) is raising £3.6m at the heavily discounted share price of 1p/share to provide working capital to cover losses. The annual costs will be reduced from £6.4m to £3.5m. Cash breakeven is anticipated in the year to June 2025. Four directors have resigned, and four new directors appointed, including the return to the board of former chief executive Dr Arron Tolley. Dr David Bunka will switch to chief scientific officer on lower pay. A new chief executive will be appointed. The formal sale process has been ended.

Flowtech Fluidpower (FLO) had a mixed first half with the revenues of the higher margin Flowtech distribution business falling, while growth elsewhere led to an overall increase of 2.6% to £59m. The full year results will not be as good as expected because demand is weakening. Net debt is £15.6m and this will reduce further in the second half. The new chief executive will report on the measures being taken to improve the performance of Flowtech with the interim results announcement on 30 August.

CyanConnode (CYAN) has won a contract for 300,000 mesh communication modules for smart meters in India. Deliveries should commence by December. This is part of the strategic framework agreement with IntelliSmart Infrastructure, taking the total orders generated from this deal to 900,000. This could help CyanConnode move into profit in the year to March 2024.

Extended reality company EngageXR (EXR) grew interim revenues by 18%. Net cash is €9.4m and that should be enough to enable the company to achieve cash generation in 2025.

MAIN MARKET

Mears (MER) generated interim revenues of £525.6m, up 8%, and it is on course for full year revenues of £1bn and pre-tax profit of £40m. The company has secured the main contracts it was bidding for. There has been growth in non-maintenance revenues, but management does not expect them to be maintained over the medium-term.

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