Sustainable household goods ingredients supplier Itaconix (LON: ITX) has reversed its recent decline following Monday’s 2023 results announcement. Management had already warned that 2024 revenues would be lower because it was focusing on improving margins. The 2023 figures were in line with expectations. The large cash pile enables Itaconix to be stricter about the margins of the business it does with merchants and other customers. The share price recovered 16.1% to 155p.
Bradda Head Lithium (LON: BHL) says results on the first four holes drilled on the Basin project in Arizona. This targets an increase in resource from 1.08mt to 2.5mt, which will trigger a $3m payment from Lithium Royalty Company. The rest of the drilling should be completed in early May, and this will be followed by an updated resource estimate in June. The share price improved 9.68% to 1.7p.
Serabi Gold (LON: SRB) produced 9,000 ounces of gold in the first quarter, which is the highest level since the third quarter of 2021, and grades should recover at Palito later this year. The Coringa project is progressing and could produce more than 11,000 ounces of gold this year. Total gold production could be near to 40,000 ounces this year. There was $11.1m in cash at the end of March 2024. The share price increased 8.55% to 63.5p.
Sales and lettings agency M Winkworth (LON: WINK) reported flat revenues and a dip in pre-tax profit from £2.5m to £2.1m. The London-based company continues to grow the dividend at a steady rate, and it is 11.7p/share for 2023. A recovery in pre-tax profit to £2.4m is anticipated this year. The shares rose 7.69% to 175p, which means that the forecast yield is 7% and the prospective multiple 12.
Eyewear supplier Inspecs (LON: SPEC) recovered from a £7.7m loss in 2022 to a £200,000 pre-tax profit in 2023 on revenues 1% ahead at £203.3m. Net debt is £3.4m lower at £24.2m. There was a slow start to 2024, but there are signs of improvement. The share price is 7.45% higher at 50.5p.
FALLERS
The board of Scirocco Energy (LON: SCIR) is proposing that the company should leave AIM. This is part of the process of a planned members’ voluntary liquidation, and it should save £100,000. The shareholder meeting is on 7 May. A matched bargain facility will be arranged. Distributions totalling 1.1p-1.2p/share between 2024 and 2027. The share price declined 14.6% to 0.235p.
Carbon fibre brake technology developer Surface Transforms (LON: SCE) has set out worst case scenarios for this year. Sales are expected to grow by at least 111% and possibly up to 165%. This will depend on the company’s ability to produce and deliver to customers. Scrap is being reduced. Zeus has withdrawn its forecasts until it talks to the company. It had forecast a 177% increase in revenues to £23m. The share price continues to fall to new lows, and it is down 16.7% to 3.25p.
Katoro Gold (LON: KAT) is taking action against Lake Victoria Gold, which is due to pay €792,000 for the joint venture transaction entered into in March 2022. The liability is disputed. The company is undertaking a technical review of the Haneti project and may focus on the potential nickel and copper. Potential acquisitions of development projects have been identified. The selection of a new chief executive is well advance, but there may be additional board restructuring. The share price dipped 13.9% to 0.0775p.
Mobile logistics technology provider Touchstar (LON: TST) shares have fallen today despite WH Ireland increasing its earnings and dividend forecasts for 2024 and 2025. In 2023, revenues were 7% ahead at £7.2m and despite lower gross margins, pre-tax profit was 60% higher at £680,000. Net cash was £3m at the end of 2023 and that enabled a total dividend of 2.5p/share – there was no dividend last year – covered three times by earnings. At 87.5p, down 7.89%, the shares are on a prospective multiple of less than nine.
