Further good news from Great Western Mining Corporation (LON: GWMO) with positive soil and grab results at the West Huntoon copper project in Nevada. Management describes “strong gold and copper grades and bonanza silver grades”. There are also elevated molybdenum levels. Drilling targets are being chosen. The share price is two-fifths higher at 0.07p.
Trading has recommenced in Location Sciences (LON: LSAI) shares after the publication of readmission document for the proposed acquisition of Sorted Holdings for nominal consideration and the assumption of £4.7m of debt. Sorted Group has developed delivery software for ecommerce businesses. There will be a one-for-625 share consolidation and £2m will be raised at 87.5p/share. The company’s name will be changed to Sorted Group Holdings. The pre-consolidation share price rose 21.4% to 0.17p – the placing price is the equivalent of 0.14p.
Transport management software provider Microlise (LON: SAAS) did better than expected in 2023 and this has sparked upgrades for 2024. Full year revenues were 13% higher at £71.6m with annualised recurring revenues 11% ahead at £47.2m – churn rates are low. Pre-tax profit is estimated to have improved from £4.9m to £5.5m. In 2024, it could reach £6.7m. Microlise completed the acquisition of Enterprise Software Systems earlier this month. The share price has been in decline, but it recovered 20.1% to 122.5p.
Tekcapital (LON: TEK) shares have risen on the back of the AIM flotation of investee company MicroSalt on Thursday. MicroSalt should have a market capitalisation of £18.5m at 43p/share. Tekcapital is currently majority shareholder in MicroSalt and it will retain a large stake after participating in the placing prior to the flotation. The share price improved 21.9% to 9.75p, which is the highest it has been since October.
FALLERS
Currency and payment services provider Argentex (LON: AGFX) will report lower than expected revenues and operating profit for 2023. The figures were expected to be similar to 2022, but revenues are down from £50.4m to approximately £49.8m, while operating profit will be around 30% lower at a minimum of £8m. Additional costs were in place to take advantage of anticipated growth that did not happen. Guy Rudolph has been appointed interim finance director and he will be seeking to reduce costs and improve efficiency. The share price has fallen 17.3% to a new low of 57.9p.
Allergy Therapeutics (LON: AGY) shares returned from suspension following the publication of the latest accounts for the year to June 2023. Revenues have been reduced by £1.4m to £59.6m since the preliminary results due to a reduction in expected statutory rebates in Germany. An £11.3m exceptional charge has been removed following the share issue after the year end. The share price slid 16% to 2.1p. ZQ Capital Management made a mandatory offer of 1p/share last year.
Shares in eyewear manufacturer Inspecs (LON: SPEC) continues to decline following the trading statement on Monday admitting that the improvement in profit in 2023 was not as great as expected because of weak December trading. EBITDA is likely to rise from £15.5m to £18m, whereas £20m was the consensus forecast. The full year results will be published on 17 April. The share price dipped a further 7.32% to 57p.
Engineering products distributor Flowtech Fluidpower (LON: FLO) says 2023 trading was as expected, but it is cautious about the current year. Operating profit fell from £8.6m to £6m in 2023. Although a recovery is anticipated this year it will be much less than previously thought. Liberum has cut its operating profit forecast from £9.8m to £7.1m even though the revenues figure is being maintained. A greater recovery is expected in 2025 as margins continue to improve. The share price slipped 4.68% to 75.3p, although that is higher than earlier in the day.
