AIM movers: Tialis Essential IT contract wins and Yu Group profit taking

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Managed services provider Tialis Essential IT (LON: TIA) has made a good start to 2025 with preferred partner and contract extensions totalling £17.8m. Some of these are five-year contracts and are higher margin lifecycle management contracts. The 2024 pre-tax profit is expected to be flat at £1.1m, but earnings are forecast to treble to 3.6p/share. The share price has been falling since the beginning of 2024. The share price recovered 18.6% to 25.5p.

Nostra Terra Oil & Gas (LON: NTOG) is averaging total production of 120 barrels of oil/day net. This means that the company is cash flow positive. Production from Pine Mills in Texas averaged more than 80 barrels of oil/day. The phase 2 workover programme started at the end of 2024 and the first well started production on 20 January. Bono Energy has doubled its stake to 3.38%. The share price improved 11.1% to 0.035p.

Christie Group (LON: CTG) says 2024 operating profit will be above the upper end of guidance at £1.4m, having made a loss in the first half. There will be a pre-tax profit of £300,000. The advisory business profitability recovered. The Venners hospitality stock audit business doubled profit. Net cash is £4.9m. The share price rose 10% to 110p.

Currency services provider Argentex (LON: AGFX) second half trading was better than expected with 2024 revenues of £50.3m. Client activity was more consistent in the second half. This means that the loss will be lower than expected at £3.7m. The Alternative Transaction Banking platform should be launched in the second half of 2025. The investment related to this means that there will be another loss in 2025. The share price increased 9.12% to 39.5p.

FALLERS

Yu Group (LON: YU.) increased energy supplied by 78% in 2024 and margins are better than expected. Revenues did not grow as rapidly because of lower prices, but they are two-fifths higher at approaching £650m. That is lower than the Panmure Liberum estimate of £680m. Managing bad debts and the hedging policy means that the pre-tax profit has edged up from £46m to £48.3m. The share price dipped 11.3% to 1645p.

Shoe retailer Shoe Zone (LON: SHOE) had already warned about the results for the year to September 2024. Pre-tax profit fell from £16.5m to £10m, which was slightly higher than forecast. There is no final dividend – the interim was 2.5p/share. Net cash is £3.6m. Several loss-making stores are being closed. The 2024-25 pre-tax profit is expected to halve to £5m. There was a further share price decline of 10% to 90p.

DRC-focused tin exploration company Rome Resources (LON: RMR) says laboratory results from drilling at the Mont Agoma tin prospect show significant tin widths from two of the holes. It appears that tin mineralisation increases and copper decreases at depths closer to the granitic source. This is similar to the tin mineralisation transition zone at San Rafael in Peru. Drilling will be focused on deeper depths. The share price slid 8.82% to 0.31p.

Premier African Minerals (LON: PREM) is not proceeding with the fundraising at 0.0275p/share because the retail offer did not raise enough to reach a total raising of £3.5m. The board is considering a change to the fundraising and alternative funding options. The share price fell 3.7% to 0.026p.

Tekcapital shares rise after Guident strengthens patent coverage

Tekcapital portfolio company, Guident, has achieved a significant milestone in autonomous vehicle safety technology with the validation of a new European patent across 20 countries.

The patent provides protection for Guident’s innovative Remote Monitoring and Control Centre (RMCC) technology at the centre of its AV offering.

Tekcapital shares were 4% higher at the time of writing.

The newly validated patent covers an artificial intelligence-based system that enhances the safety of autonomous vehicles through advanced monitoring and control capabilities. At its core, the technology employs distributed sensor fusion and AI techniques to monitor multiple autonomous vehicles simultaneously, even those not directly under RMCC control.

Guident believes this breakthrough system can assess incident risk levels in real-time, implement necessary safety measures, and, when required, take control of vehicles operating at unsafe risk levels, returning control once safety is assured.

In a parallel development, Guident has also received a Notice of Allowance from the United States Patent and Trademark Office for a complementary technology.

This pending US patent, Application No. 17/579,203, focuses on near real-time data and video streaming systems for autonomous vehicles, robots, and drones. The technology enables remote monitoring devices to receive and process video and image data from various collection devices, including camera sensors, further enhancing operational safety. The company expects the US patent to be issued once the required fees are paid.

“We believe our successful validation of European Patent Grant No. 4097550 across 20 countries marks a significant milestone in advancing Guident’s mission to enhance the safety of autonomous vehicles through innovative AI and sensor fusion technology of our remote monitoring and control IP portfolio,” Harald Braun, Executive Chairman of Guident.

“Coupled with the anticipated forthcoming issuance of our U.S. Patent for near real-time data and video streaming systems, we believe we are setting new standards for the safety and reliability of autonomous vehicles, robots, and drones. These achievements exemplify Guident’s commitment to driving the future of smarter and safer mobility solutions.”

Rome Resources shares tumble on underwhelming tin grades

Rome Resources has announced laboratory results from its latest drilling campaign at the Mont Agoma tin prospect in the Democratic Republic of Congo’s North Kivu province. 

The results reveal substantial widths of tin mineralisation, but shares fell with tin grades underwhelming the market. Rome Resources shares were down 17% at the time of writing.

The first two completed diamond core drill holes have unveiled three distinct mineralisation zones, with combined widths of 38.4 metres in MADD016A and 32.1 metres in MADD017.

However, the drilling programme yielded questionable tin grades, with MADD016A returning intervals of 20.5 metres at 0.18% tin from 57.5 metres depth and 14.9 metres at 0.45% tin from 99 metres. 

For context, Cornish Metals encountered grades as high as 3.24% and 4.66% at its South Crofty mine in 2023. 

Copper and zinc were encountered by Rome at Mount Agoma, including 7.2 metres at 1.32% copper and a 31-metre section grading 4.02% zinc.

MADD017 demonstrated equally encouraging results, with multiple tin-bearing zones, including 8 metres at 0.49% tin from 154 metres depth. The hole also intersected exceptional zinc mineralisation, returning 25.35 metres at 13.97% zinc from 110.1 metres.

Investors seemed to have little interest in the copper and zinc mineralisation on Tuesday. 

The company draws parallels between Mont Agoma’s mineralisation pattern and the renowned San Rafael deposit in Peru, noting similar transitions from copper to tin mineralisation at depth. The project also shares characteristics with Alphamin’s Mpama South deposit, particularly in its zinc mineralisation patterns.

Rome Resourceswill advance its exploration programme throughout 2025, supported by recent funding secured through Stanvic Mining.

The company has already completed 1,657 metres of drilling across eight holes since the programme’s commencement in August 2024, with three holes currently ongoing.​​​​​​​​​​​​​​​​

“Following our successful £4.2 million fundraising with Stanvic Mining, we are in a strong position to continue drilling at the Mont Agoma and Kalayi prospects, particularly targeting deeper levels on both prospects where there are clear signposts that mineralisation increases at depth,” said Paul Barrett, Chief Executive Officer of Rome Resources.

Share Tip: SRT Marine Systems – 2025 selection already up over 20%, with so much more to come

This coming Thursday, 23rd January, SRT Marine Systems (LON:SRT) will be holding its AGM and an Open Day at its premises near Bath. 
The group, which is one of the UK Investor Shares Of 2025 selected on 30th December 2024, has seen its price increase from a then 42p up to 53p at one time yesterday, before closing at 50.50p. 
Now could be an opportune time to pick up more stock before the meeting and subsequent market action on any subsequent corporate news. 
The Business 
The company is an established leader in the growing global market for maritime domain awareness. &...

Tritax Big Box REIT enters data centre power market to capture AI and cloud opportunity

Tritax Big Box REIT has announced its entry into the data centre market with the acquisition of a 74-acre site near Heathrow Airport, marking a significant strategic expansion beyond its traditional logistics portfolio. The company plans to develop what is expected to become one of the UK’s largest data centres, capitalising on growing demand driven by cloud computing and artificial intelligence adoption.

The ambitious project, located within the Slough Availability Zone, will deliver up to 147 megawatts (MW) of power capacity across two phases. The initial phase, targeting completion in the second half of 2027, will comprise a 107MW facility spanning 448,000 square feet of data halls across three floors. A potential second phase could add another 40MW of capacity to the site.

To accelerate power delivery to the site, Tritax has formed a joint venture with a leading European renewable energy generator, circumventing the typical decade-long wait for grid connections. The company expects the first phase to cost approximately £365 million, including land acquisition, construction, and power infrastructure costs.

This is a decisive and exciting first step for the Company in the very attractive data centre market which the Manager has unlocked with its power and real estate capabilities,” said Aubrey Adams, Chairman of Tritax Big Box.

“This gives the Company a considerable competitive advantage in capturing the growing demand for data centre infrastructure. The combination of Manor Farm’s prime London location and accelerated access to critical grid connection agreements creates the opportunity to develop quickly one of the UK’s largest data centres and deliver exceptional returns for our shareholders.”

In addition to this initial project, Tritax Management has a pipeline of additional opportunities across the UK with potential power capacity of around one gigawatt, highlighting the scale of its ambitions in the sector. These additional projects could begin delivery from 2028 onwards.

Global demand for data centres is projected to grow between 19-22% annually until 2030. Tritax’s entry into this market presents a fascinating opportunity for investors seeking exposure to the UK’s AI industry.

The development is expected to generate attractive returns, with Tritax targeting a 9.3% yield on cost for the first phase. This significantly exceeds the typical 6-8% yield target for its logistics developments, reflecting both the prime London location and the scarcity of powered land suitable for data centre development in the area.

Construction of the first phase is scheduled to begin in the first half of 2026, subject to planning permission and securing a pre-let agreement. The planning decision is expected in the second half of 2025.

Adsure Services bolsters leadership team amid social housing growth opportunity

Internal audit and business assurance specialist Adsure Services has announced its operating subsidiary TIAA Ltd has appointed Angela Ward as Director of Housing, bringing over 20 years of audit and consulting expertise to the firm.

In her new role, Ward will head TIAA’s social housing unit and spearhead the company’s expansion plans in the division. She will focus on developing innovative services for existing clients in the social housing sector and targeting new markets.

The appointment comes as part of Adsure Services’ broader growth strategy in the social housing market, which is set to benefit from the government’s support for the sector and a 1.5m homebuilding target.

“We’re delighted to welcome Angela to TIAA’s leadership team,” said Kevin Limn, CEO of Adsure Services.

“Her track record of delivering business assurance solutions to a range of clients will further strengthen our housing business unit. Angela’s appointment reflects our commitment to growth across all of TIAA’s industry groups and our focus on meeting our clients’ requirements.”

Adsure Services recently announced a 19% increase in revenue and 232% jump in EBITDA for the half-year to 30th September. Such was the strength in financial performance that Adsure hiked its interim dividend by 60% for the period.

FTSE 100 extends winning streak with fresh record high

Last week’s rally continued on Monday as with FTSE 100 on course to set a fresh all-time record closing high amid rising optimism around interest rates.

London’s leading index touched 8,533, matching Friday’s peak before easing back to trade at 8,514.

“The FTSE 100 has opened the week buoyed by positive winds and renewed investor enthusiasm. It is close to clinching a fresh intraday record,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.

“After reaching an all-time high on Friday there seems little to spark a pull-back, with US markets shut for Martin Luther King Day. However, all eyes will be on Donald Trump’s inauguration later as the 47th President of the United States and his comments are likely to hold sway on markets.”

Reports suggest Trump has dozens of executive orders prepared for his first days of presidency. These orders will set the tone for his second term as US President and produce trading opportunities across a broad range of asset classes.

“Markets are eagerly awaiting Trump’s first batch of executive orders as this will provide clarity on the lay of the land. Immigration, energy and trade will be high up the list and, as always, the devil will be in the detail. Trump has had a lot to say on these issues but he also has a reputation of not always following what he’s promised to do to the letter,” said Russ Mould, investment director at AJ Bell.

“Markets want to know which countries and industry sectors will be targeted and the relevant tariff rates to price in any risks or opportunities to equities, currencies and bonds around the world.”

Cryptocurrency markets ushered Trump in with a fresh record high in Bitcoin. Trump has promised to bring crypto mainstream, making the asset class the biggest beneficiary of his victory to date.

In London, there was a wait-and-see feel to markets. The FTSE 100 carved out minor gains supported by banks and oil majors. UK-centric stocks enjoyed marginal gains as the good feeling around the UK after UK inflation data last week continued. Kingfisher and Rightmove rose on the hope that home purchases and DIY will pick up as 2025 develops.

Hedge fund Pershing Square was the top riser after increasing dividends by 13% for 2025.

Reach digital income beats expectations

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Newspaper and online publisher Reach (LON: RCH) is the best performer in the FTSE Small Cap index with a 23.9% jump to 89.2p. That more than claws back the previous loss this year. Fourth quarter trading was stronger than anticipated.

The Daily Mirror owner benefited from a stronger digital advertising market. Black Friday was positive this year. Fourth quarter growth was around 7% and that improved the second half growth rate to 5%. Digital is still less than one-quarter of revenues, but that will change as it continues to grow and print revenues decline.

Newspaper trading was in line with expectations. There have also been additional cost savings. Net debt is £22m.

There will be a one-off pension cost of £5m in 2025 due to a past error. There has been refinancing with a £145m revolving credit facility lasting four years.

Panmure Liberum has increased its 2024 pre-tax profit forecast from £94.6m to £98.1m. However, it is maintaining its 2025 figure at £93.2m, which reflects the added costs of the National Insurance rises. The dividend is expected to continue at 7.34p/share. The shares are trading on four times prospective earnings and yield 8.2%.

AIM movers: Enteq Technologies up for sale and Getech misses forecast

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Downhole oil and gas technology developer Enteq Technologies (LON: NTQ) directors have decided to commence a formal sale process, which will be handled by Gneiss Energy. The company has already contacted some interested parties and is in discussions with two of them. There should be enough cash to last to June. The share price rebounded 45% to 1.45p.

Ground engineer Van Elle (LON: VANL) has signed an eight-year agreement with Wood Transmission and Distribution for piling and foundations for transmission schemes to connect offshore power to the grid in Scotland. This could be worth more than £30m. The recent acquisition of Albion Drilling will provide a base in Scotland for Van Elle. The share price rose 7.69% to 42p.

Tertiary Minerals (LON: TYM) has published drill results for four holes at the Mushima North project in Zambia. One hole shows a silver-in-soil geochemical anomaly that extends over a 1.3km long trend and is open ended to the northeast and southwest.  There are further assays of holes to come. The share price is 7.14% to 0.075p.

Automated transport analytics technology provider Cordel (LON: CRDL) is entering the continental Europe market through a partnership with rail infrastructure services provider VRSD. This is a £200bn market. There will be a proof of concept contract. The share price improved 6.9% to 7.75p.

FALLERS

Natural resources data and information provider Getech Group (LON: GTC) says 2024 revenues were 17% ahead at £4.7m – slightly below forecast. Although £2m of annualised costs have been cut they have not yet all come through, so the pre-tax loss is £1.3m, down from £3.6m in 2023. Net cash is £900,000. There is further cost cutting. The order book is worth £4.1m. Cavendish believes that Getech can be profitable this year. The share price slipped by one-fifth to 1.6p.

Fuel cell technology developer Proton Motor Power Systems (LON: PPS) is sending the circular to shareholders to gain approval for the departure from AIM. The share price fell a further 17.7% to 0.35p.

There was a short-term trading improvement in December for Sanderson Design Group (LON: SDG), but this has not continued, and profit expectations have been reduced. Band sales are 9% lower. Revenues are expected to decline from £108.6m to £101m, while pre-tax profit could slump from £12.2m to £4.2m – previously £7.2m was forecast. There has been less high margin work for the manufacturing division, which hit overall profitability. The share price slid 15.7% to 45.5p.

AI-technology services provider Pri0r1ty Intelligence (LON: PR1) shares have continued to decline since it joined AIM at the end of 2024. The fundraising for the reversal of the business into the previously listed shell Alteration Earth was done at 13.5p. Rupert Labrum, one of the original shareholders in the shell, has reduced his stake from 3.4% to 2.34%. The share price declined 6.25% to 7.5p.

Cerillion shares jump after major contract win

Cerillion shares jumped on Monday after the telecom software provided announced a ‘major’ new contract win.

Cerillion has secured a significant $11.4 million contract with a national telecommunications operator in the Caucasus region. The five-year agreement will see the company provide its billing, charging and customer relationship management software solutions to support more than one million business and consumer customers across multiple services, including fixed-line, mobile, broadband and television.

The contract involves implementing Cerillion’s BSS/OSS software platform, which offers an out-of-the-box solution that can be configured to support the full range of telecommunications services. Unlike traditional bespoke systems, which typically require years of implementation and carry higher costs and risks, Cerillion’s platform operates on a Software-as-a-Service (SaaS) basis with regular upgrades and industry-standard APIs throughout the suite.

Implementation work has already begun, with revenue expected to contribute significantly to the company’s financial performance in the second half of the current financial year. The contract has potential for further expansion beyond its initial scope, and aligns with existing market expectations.

“After a rigorous tender process, we are delighted to have been awarded this contract.  It is another demonstration that our SaaS-based, productised approach is highly attractive, both financially and operationally, when compared to traditional bespoke solutions,” said Louis Hall, Chief Executive Officer of Cerillion.

“The decision over what approach to take for the enterprise software layer is a critical one. Our solution enables telcos to monetise their network infrastructure assets, increase revenue from their assets, enhance efficiencies and drive the customer experience at lower cost and more simply than other solutions.”