Metals explorer Power Metal Resources (LON: POW) announced a positive update for its Molopo Farms complex project in Botswana. This made it the biggest riser on the week with the share price jumping 82.9% to 1.6p. Two ground-based electromagnetic geophysics surveys highlighted a large shallow dipping magnetic conductor at a hole drilled in 2020-21. Further drilling of the nickel copper platinum has been brought forward.
Elast-Eon biostable polymer technology developer RUA Life Sciences (LON: RUA) perked up last week after a positive AGM statement. Revenues grew by 50% in the first four months of the financial year, although this rate is not likely to continue. This year’s loss is currently expected to be similar to the £2.36m made in the year to March 2022 – although there is scope for an upgrade. That would lead to most of the company’s cash running out, so a fundraising could be likely in the next six to nine months. If the current progress continues there could be a lower cash outflow. RUA is close to agreeing a clinical trial design for vascular grafts with the FDA. The shares are 43.3% higher at 48p.
Property services provider Kinovo (LON: KINO) nearly doubled its operating profit in the year to March 2022 and this helped to push up the share price by 43.1% to 37.2p. Net debt was reduced to £340,000. First quarter revenues have risen by 28% to £14m and Kinovo has moved into a net cash position. However, there are still liabilities relating to the disposal of DCB, which is in administration. The latest estimate is that it will cost £4m plus expenses to complete work, which is lower than previous estimates. Management believes this can be funded out of cash flow.
Mobile Streams (LON: MOS) secured a contract to be exclusive global producer and provider of collectible trading card Non-Fungible Tokens for the Mexican national football team. There is a small upfront payment by Mobile Streams, and it will generate royalties of 5%-10% of the sale price. The share price rose throughout the week and ended up 30% to 0.325p.
The Sopheon (LON: SPE) share price rose 23.8% to 650p on the back of securing a five-year contract with the US Navy worth $11.2m. This is for a range of submarine programmes. The product life cycle management software supplier gained certification as a supplier to the US Navy during June.
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Fallers
Fashion brand Joules (LON: JOUL) was the worst performer of the week, falling 36.4% to 26.7p. Trading has deteriorated in recent weeks, although wholesale sales are higher. This means that it will not make a profit this year, even if second half trading improves. Peel Hunt has downgraded its forecast for 20222-23 from a profit of £4m to a loss of £4.2m. Jonathan Brown becomes Joules chief executive at the end of September, and he will have a lot to do to turnaround the business. Discussions with Next (LON: NEXT) about a cash injection continue. The retailer is considering a £15m investment in Joules, which was previously likely to be at a share price of at least 33p.
Yacht painting and services provider GYG (LON: GYG) shares fell 32.7% to 18.5p ahead of the general meeting on 31 August for shareholders to vote on the cancelation of the AIM quotation. The share price was 31.5p before this was announced. If the vote is passed, then the quotation will be cancelled on 8 September. Earlier this month, Harwood Capital increased its stake from 20.5% to 22.2%.
Flexible electrical connectors manufacturer Strip Tinning (LON: STG) surprised the market by revealing that a Croatian customer is terminating a contract from 1 October. This contract for cell management systems for electric vehicles was supposed to be worth €2m a year once peak volumes were hit in a couple of years. The shares fell by 30% to 70p during the week. That is well below the 185p placing price when Strip Tinning joined AIM in February. Finance director Adam Le Van bought 2,700 shares at 105p in July.
Security services and products provider Westminster Group (LON: WSG) grew interim revenues by 13% to £3.9m and the loss was reduced from £929,000 to £787,000. There was a larger reduction in the cash outflow. The year is expected to be heavily second half weighted. Arden Partners is retaining its 2022 forecast pre-tax profit of £1.1m, compared to a loss of £1.9m in the previous year. The share price fell 24.1% to 1.025p, which suggests that there is a lack of confidence in Westminster’s ability to achieve the forecast.
A poor trading statement from Gooch & Housego (LON: GHH) meant that forecasts were slashed by up to one-third and the chief executive is retiring. The share price slumped 23.9% to 649p on the week. Demand for photonics technology remains strong, but a lack of skilled labour in the US and UK and supply chain constraints have hampered the company’s ability to increase capacity. There has been high demand for lasers for semiconductor manufacture. Analysts have reduced their 2021-22 pre-tax profit forecasts to £7.5m-£8m, while a pre-tax profit of around £12m is expected for 2022-23. A 12.5p a share dividend is still expected this year. Mark Webster is retiring as chief executive after eight years. Charlie Peppiatt will succeed him after joining from TT Electronics, which acquired former AIM company Stadium Group, where he was chief executive.
