AIM movers: Poor fourth quarter for CMO and Oriole Resources receives earn-in payment

Andrew Hore
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AIM movers: Poor fourth quarter for CMO and Oriole Resources receives earn-in payment

Oriole Resources (LON: ORR) has confirmed receipt of the payment of $450,000 related to the earn-in agreement with BCM International for the Bibemi gold exploration project in Cameroon. BCM will spend $4m on exploration to earn 50% of the project. Drilling should resume in the first quarter. The share price is 17.1% higher at 0.24p.

Data analysis software and services provider Celebrus Technologies (LON: CLBS), formerly D4T4, won four contracts in the fourth quarter. Two new contracts are for three years and are in the retail and healthcare sectors. The other two are extensions of existing contracts with banks. These contracts help to underpin the expected improvement in pre-tax profit from £3.7m to £5.3m in the year to March 2024. The share price increased 9.77% to 236p.

Verici Dx (LON: VRCI) says that the Medicare national payment rate for post-kidney transplant test Tutivia and pre-kidney transplant test Clarava are effective from 1 January 2024. The rate for both of them is $2,650. The company’s testing laboratory has been accredited by the College of American Pathology. The share price rose 5.77% to 11p.

Mrs Nashida Islam-Bonnier has cut her stake in podcast platform Audioboom (LON: BOOM) from 3.7% to below 3%. The share price moved up 5.74% to 322.5p.

FALLERS

Online builders’ merchant CMO Group (LON: CMO) had a tough fourth quarter. Online traffic rates declined, but conversion rates improved. Overall orders were flat. Home improvement and DIY spending is declining. The overall repair, maintenance and improvement sector is still relatively strong, but it weakened in the second half of 2023. Market share has grown, and costs have been cut. Liberum has increased its 2023 pre-tax loss forecast from £800,000 to £1.2m and forecasts a 2024 loss. The share price fell 12.7% to 24p.

N4 Pharma (LON: N4P) says that its Nuvec silica nanoparticle delivery system for vaccines improved efficacy when mixed with AAV8 vector and used to traduce human-like liver cells. It was 2.5 times better than AAV8 on its own. This means that lower does could be used. Even so, the share price dipped 7.69% to 1.2p although that was from a recent high.

Morocco-based potash project developer Emmerson (LON: EML) is still waiting for government approval of its Environmental and Social Impact Study for the Khemisset potash mine. This requires a ministerial meeting. Debt financing has been extended for 12 months. The share priced declined 6.9% to 1.35p.

On Friday afternoon, Sri Lanka mineral sands project developer Capital Metals (LON: CMET) says that offtake discussions with LB Group are now non-exclusive. There has been additional interest in the Eastern Minerals project. The share price fell on Friday, and it has dropped a further 5.97% to 3.15p.

Consultancy Elixirr International (LON: ELIX) confirmed 2023 results are in line with expectations and it will pay two dividends each year. Pre-tax profit is expected to improve from £19.3m to £23.9m. The shares will go ex-dividend for the 5.3p/share interim on 19 January. Profit-taking knocked 5.65% off the share price leaving it at 585p.  

Marks & Spencer festive trading update preview

UK Investor Magazine
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Marks & Spencer festive trading update preview

There is no doubt that Marks & Spencer had a tremendous year in 2023, and investors will hope for more of the same in the coming year.

Marks & Spencer shares are up 107% over the past year, and this week's trading update is crucial for the continuation of the rally.

Both in terms of profitability and returns for shareholders, M&S made strides forward in 2023. The festive trading period can potentially top off one of the best trading periods for Marks and Spencer in years.

M&S’s food business has long been the main event. Even before the pandemic, growth in the area w...

Aquis weekly movers: Coinsilium share buying

Andrew Hore
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Aquis weekly movers: Coinsilium share buying

Coinsilium (LON: COIN) was the biggest riser on the week with a 55.3% improvement to 2.95p. This is the highest the share price has been since August 2022. The increased trading levels at the end of December continued into early January. The vast majority of the trades were buys with limited selling.

Professor Trevor Jones bought 150,000 shares in EDX Medical Group (LON: EDX) at 6.25p each and 139,074 shares at 7.35p each. These are his first share purchases, and he owns 0.096% of EDX Medical. The share price rose 26.1% to 7.25p. This is the highest level since just after the flotation in June 2021

NFT Investments (LON: NFT) reported a 54% increase in NAV to £43.8m at the end of September. Crypto assets rose by 67% and there are plans to liquidate these holdings after April. There will then be a tender offer to shareholders. NAV is 4.67p/share. Even so, the share price edged up 1.89% to 2.7p, due to concerns about the liquidity and volatility of the crypto holdings.

FALLERS

Founder Paul Ryan reduced his stake in Pharma C Investments (LON: PCIL) from 8.52% to 3.9%, while James Formolli took a 8.05% shareholding. The share price slumped 65.6% to 0.055p. The May 2021 placing price was 0.7p.

SHARE TIP: Is this Lightship showing the way as the shipping sector comes alight 

Mark Watson-Mitchell
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SHARE TIP: Is this Lightship showing the way as the shipping sector comes alight 

Just as the world’s shipping market is starting to suffer from the current turmoil in the Eastern Mediterranean waters around Israel, there is a Lightship clearly showing a preferred route. 

There are now very worrying signs of the significant and persistent disruption in the Red Sea, due to the Iranian-backed Houthi rebels attacking some 24 ships in an effort to close off the straits entering the Suez Canal. 

Some 12% of the world’s seaborne trade uses the canal for transit of cargoes. 

Last week the shipping giant, Maersk, declared that it was re-routing its shipment...

AIM weekly movers: Positive DNA news from Angle

Andrew Hore
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AIM weekly movers: Positive DNA news from Angle

Cancer diagnostics firm Angle (LON: AGL) has made two positive announcements during the week. There are breakthrough results from DNA molecular analysis of cancer patient blood samples, and this covers many types of cancer. This proves the effectiveness of the Parsortix system combined with DNA analysis. Angle believes that using CTC-DNA testing of living cancer cells alongside ctDNA (DNA fragments released from dead cancer cells into the blood) will improve the way cancer is treated. It may enable doctors to track the clonal evolution of a patient’s cancer. Earlier in the week, a $250,000 pilot study to assess breast cancer patients was secured. The share price jumped 121% to 26p.

An $11m preclinical milestone payment to C4X Discovery (LON: C4XD) has been triggered by the preclinical progress of C4XD’s NRF2 Activator programme. AstraZeneca is using the programme to develop an oral therapy for treating inflammatory and respiratory diseases. At the end of July 2023, C4XD had £4.22m in the bank after a £6m cash outflow from operating activities. The share price increased 98.3% to 17.85p.

Trading in Trellus Health (LON: TRLS) shares last Friday was at the second highest level in the past year. At one point the share price moved above 7p, but it ended up 69.2% up on the week at 5.5p. That is the highest price since October. Management is in talks with a large US national health plan which will make digital product Trellus Elevate, which helps people to manage inflammatory bowel disease, more widely available.

Shantonu Kumar Chundur has taken a 5.07% stake in i-nexus Global (LON: INX). The Coventry-based software company is loss making and it lost a major client in October. The share price recovered 51.1% to 3.4p, which is the highest level since early November.

FALLERS

Revolution Bars (LON: RBG) like-for-like sales were 9% ahead in December. However, most of that growth came from Revolucion de Cuba and Peach Pubs with Revolution barely growing even though the previous December’s train strikes meant that comparatives were weak. Eight bars have been closed. That leaves 58 bars and 22 pubs. Net debt is £18.3m. There will be another trading update on 24 January. The share price slumped 24.6% to 4.3p.

Plexus Holdings (LON: POS) shares fell 21.4% to 16.5p, after falling below 14p at one point. Plexus agreed an IP licence agreement with SLB, which replaces a previous surface production wellhead licence agreement with a subsidiary of SLB. For $5.2m in cash, SLB gets a licence in perpetuity to use POS-GRIP technology in specific markets. The 2023-24 revenues forecast has been upgraded to £14m and pre-tax profit raised by 467% to £1.7m. However, this is a one-off, so Plexus could fall back into loss next year. Plexus was the best AIM performer in 2023 and it is still the best performer since the end of 2022.

Landore Resources Ltd (LON: LND) has raised £600,000 at 2.4p/share. This will help to fund the early development of the BAM gold project in Northwestern Ontario. Results from last year’s infill core sampling work will be reported during the first quarter of 2024. There will be a drilling programme this year. The postponement of the TSX Venture Exchange listing and the related fundraising has led to cost savings including the stepping down of chief executive Claude Lemasson and non-exec Larry Strauss. Glenn Featherby becomes interim chief executive. The share price slipped 19% to 2.55p.

Mkango Resources (LON: MKA) has a 79.4% interest in Maginito, which has formed a 50/50 joint venture with CoTec Holdings. HyProMag USA will roll out Hydrogen Processing of Magnet Scrap recycling technology. Maiden revenues are expected in 2025-26. The share price declined 15.2% to 9.75p.

AIM movers: Oriole Resources signs earn-in agreement and Revolution Bars closes eight sites

Andrew Hore
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8
AIM movers: Oriole Resources signs earn-in agreement and Revolution Bars closes eight sites

Oriole Resources (LON: ORR) has signed a definitive earn-in agreement with BCM International for the Bibemi gold exploration project in Cameroon. That triggers a payment of $450,000. BCM will then spend $4m on exploration to earn 50% of the project. Drilling should start in the first quarter. The Mbe project agreement should be agreed by the end of the month. The share price is 13.5% higher at 0.2p.

A company associated with Science in Sport (LON: SIS) executive chairman Dan Wright has acquired one million shares 11p each. Lombard Odier bought more than 9.7 million shares at the same price. Former chief executive Stephen Moon has cut his stake from 5.73% to 3.14%. The share price rose 10% to 13.75p.

Fintech property finance platform Lendinvest (LON: LINV) is selling the Mortimer BTL 2023-1 securitisation for £5m net. The deal will remove £392m of assets from the balance sheet and generate a pre-tax gain of £12m. Even so, Lendinvest is still expected to be loss making in the year to March 2024. The share price increased 7.41% to 29p.

FALLERS

Revolution Bars (LON: RBG) like-for-like sales were 9% ahead in December. However, most of that growth came from Revolucion de Cuba and Peach Pubs with Revoution barely growing even though the previous December’s train strikes meant that comparatives were weak. Eight bars have been closed. That leaves 58 bars and 22 pubs. Net debt is £18.3m. There will be another trading update on 24 January. The share price slumped 19.3% to 4.4p.

Ethernity Networks (LON: ENET) says that a significant majority of guaranteed and priority creditors have approved the proposed settlement plan to enable it to come out of the temporary suspension of proceedings process. Final votes of the general creditors have not all been received, and management is in discussions with them. The share price fell 10.8% to 0.825p.

Minoan (LON: MIN) has extended the expiry dates of options held by directors Grahame Cook and Timothy Hill and other management until the end of 2024. Discussions continue with the authorities in Crete regarding the granting of a 99-year lease for the Cavo Sidero project. Management is keen to accelerate development of the project and says that there is a shortage hotel beds for tourists in the region of Crete. The share price slipped 7.14% to 0.65p.

Phoenix Copper (LON: PXC) says discussions are continuing about the proposed corporate copper bond finance for the Empire open pit copper mine Idaho. Documentation has been finalised. The company hopes to change the current $2m short-term loan facility into a larger facility. The share price declined 6.67% to 17.5p.

Woodbois (LON: WBI) chief executive David Rothschild is stepping down and being replaced by executive chair Guido Theuns. The timber and carbon credits business is being structured in four profit centres. The share price dipped 5.79% to 0.895p.

The Royal Mint achieves record investor numbers as demand for precious metals jumps

Eve Katz
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5
The Royal Mint achieves record investor numbers as demand for precious metals jumps

This week, the Royal Mint reported a surge in the number of investors in precious metals products in 2023, marking a 7% year-on-year (YoY) increase.

This substantial growth is attributed to, firstly, investors adopting a “flight to safety” strategy for their portfolios amidst macroeconomic pressure. Secondly, a large segment of customers (77%) has been drawn to the new investment choices, such as fractional coins and bars and The Royal Mint’s digital platform, DigiGold.

This growth underscores the company’s commitment to making gold accessible across various price points, allowing investments starting at £75.

The ever-so-popular fractional products in particular have “allowed more investors to purchase gold with us, with options to suit all needs,” said Andrew Dickey, the Royal Mint’s Director of Precious Metals.

“It is interesting to note that more customers made gold investments last year than during the lockdown investing boom’ in 2020, highlighting the continued appeal of the asset class,” he highlighted.

The gold Sovereign coin and the silver Britannia maintained their popularity in 2023, with the latter being the flagship bullion product, leading the most popular product list.

Additionally, the Royal Mint witnessed a record number of investors selling their gold investments back to the business in 2023, with a 19% increase year over year. The Mint paid out 46% more than in 2022 to customers selling their bullion, indicating significant profits for many investors.

Stuart O’Reilly, Market Insights Analyst at The Royal Mint, anticipates a potential gain in momentum for precious metals in 2024 amid a cycle of central bank rate cuts.

“The potential for central bank rate cuts in 2024 is boosting the gold and precious metals markets, as the prospect of lower rates boosts demand for non-yielding assets,” O’Reilly stated.

Looking ahead, Andrew Dickey expressed excitement about the opportunities in global markets and the development of new products.

“We are increasingly excited by opportunities around our Gold for Pensions proposition and our gold ETC product on the London Stock Exchange, both of which have grown despite tougher conditions in these markets,” said Mr. Dickey.

abrdn Private Equity Opportunities Trust may be on the brink of a major rerating

UK Investor Magazine
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9
abrdn Private Equity Opportunities Trust may be on the brink of a major rerating

abrdn Private Equity Opportunities Trust is an FTSE 250 Investment Trust trading at a 40% discount. The listed private equity trust sector has suffered as borrowing costs increased over the past two years, but the pressures are easing, and this trust offers investors deep value.

While there may be some variability between the recorded NAV and the NAV achieved if they were to hypothetically liquidate their holdings in the current market, it is doubtful it would equate to 40%.

This type of mispricing is rare historically and represents a significant opportunity for a rerate. Indeed, one could argue the rerate is already underway, albeit steadily. 

The trust’s share price is up around 10% from its 2023 lows, and the discount has narrowed from the widest point.

Rising interest rates have ravaged private equity valuations, in many cases unjustifiably. In the case of abrdn Private Equity Opportunities Trust, the trust’s NAV has grown to an estimated 761.4p as of 31st November, up from 705.2p at the end of 2021. The trust’s share price has declined just shy of 30% during this period.

Private equity exits dried up in 2023 as interest rates rose, raising questions about valuations and making new transactions less attractive.

With the Federal Reserve signalling an end to the hiking cycle and markets pricing up to 150bps in rate cuts in 2024, the headwinds private equity has experienced over the past two years could quickly become a tailwind.

abrdn Private Equity Opportunities portfolio

It is important to look at the trust’s underlying assets in its portfolio to measure just how unjustified the current market pricing is.

Yes, there are questions about private equity valuations. Still, as we mentioned previously, any disparity is unlikely to be as wide as the market is currently pricing, especially for the high-quality companies this trust holds in its portfolio.

The trust invests predominantly in established European companies through management buy-out transactions with the aim of producing shareholder returns through dividends and capital gains.

abrdn Private Equity Opportunities’ underlying portfolio holdings include household names and market leaders in their respective fields that aren’t easily accessible to a large proportion of investors.

The trust has a portfolio of 50 actively managed private equity funds and around 600 underlying companies, including juice brand Tropicana, Spanish grocer Uvesco, and polyethylene film manufacturer Trioplast.

Managers of the trust seek out a balance of both cyclical and counter-cyclical sectors, with the majority of the portfolio invested in Technology, Healthcare, Consumer Staples and Financials.

Investments are made in funds the manager has a long-term relationship with or, in the case of co-investments, directly into underlying companies alongside managers with long-term relationships.

One would think the current value is driven almost exclusively by the external macro environment rather than concerns about the quality of the underlying holdings.

abrdn Private Equity Opportunities has a yield of 3.48% to compensate for any wait for the discount to narrow.

Tesco shares: festive trading statement preview

UK Investor Magazine
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8
Tesco shares: festive trading statement preview

UK retailers ensure traders start the new year with a bang as they report on festive trading and amend their guidance for the full year.

Next and JD Sports kicked things off with differing outcomes. Next again proved to be the retail powerhouse investors have become accustomed to, while JD Sports shares sank over 20% as they reduced profit guidance.

Next week, it is the turn of supermarkets Sainsbury's, Tesco and Marks and Spencer.

We preview Tesco's trading statement - due to be released Thursday 11th January - and what investors should look out for.

We'll start with the ongoi...

Next shares surge on updated 2024 profit forecasts

Eve Katz
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4
Next shares surge on updated 2024 profit forecasts

On Thursday, retailer Next shares jumped almost 4% on the update 2024 profit before tax guidance, which was upped 4% due to better-than-expected festive season sales.

The fifth update to Next’s 2024 forecast was triggered by the news of the brand’s total sales experiencing a 5.7% surge during the 9 weeks ending on December 30, surpassing the initial projection of a 2% increase.

The profit before tax forecast for the fiscal year 2024 was raised by £20 million to £905 million. 

Additionally, the company has provided full-year guidance for fiscal year 2025, anticipating a 6% growth in total sales and a 5% increase in profit before tax.

All of this can help explain “why the shares are reaching new peaks, too, especially as management expects further progress to £941 million in fiscal 2025, including £19 million in brand amortisation costs, which will be excluded from headline profit forecasts and figures going forward,” said Russ Mould, investment director at AJ Bell.

Next’s online sales were especially robust, “reflecting better stock availability and excellent operational execution,” said Charlie Huggins, manager of the ‘Quality Shares Portfolio’ at Wealth Club.

“This stands in stark contrast to other retailers like Superdry, which have struggled in the prevailing economic environment,” he added.

Overall, the positive figures “are a further reminder, as if one were needed, that retailers can thrive, regardless of what the weather does, if they sell the right product at the right price point in the right format for the target customer base. Doing this correctly will improve stock turn and sell through, reduce the need to discount, and in turn help profit margins and cash flow,” once again said Russ Mould.

What is clear here is that “UK consumer spending appears to have defied gravity. A strong employment market and rising wages have helped cushion inflationary cost pressures, meaning consumers have continued to fill their Christmas stockings with Next’s wares, despite the gloomy economic headlines,” said Charlie Huggins.

“Next’s core proposition is clearly resonating with the UK consumer and is being augmented by intelligent acquisitions of brands like Fat Face. With inflation falling and wages rising, the economic picture also looks a lot less bleak than at the start of last year,” he added.

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