AIM movers: Empresaria bid approach and Ocean Harvest Technology has cash until June

Andrew Hore
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AIM movers: Empresaria bid approach and Ocean Harvest Technology has cash until June

In content advertising company Mirriad Advertising (LON: MIRI) continues to recover some of last week’s share price decline and is 60.7% higher at 0.045p, although 86.8% lower on the week.

Staffing company Empresaria Group (LON: EMR) has received a bid approach from a consortium of individuals, including the boss of the offshore services division of the company. The 60p/share indicative offer comprises 10p/share in cash and 50p/share in loan notes to be redeemed on the third anniversary of the acquisition. The Empresaria board believes the offer undervalues the company. However, two major shareholders are keen for options to be explored to realise value in the business and the initial approach may encourage others. The share price jumped by two-fifths to 35p.

Automotive interior components supplier CT Automotive (LON: CTA) improved margins in 2024 through cost reductions and greater efficiency. That enabled pre-tax profit to edge up from $8.3m to $8.7m even though revenues declined. A rise in pre-tax profit to $10.5m is expected this year. There is uncertainty about US tariffs, but the company can move supply from China to Mexico. The share price increased 25.5% to 29.5p.

Paper and advanced materials manufacturer James Cropper (LON: CRPR) expects to report flat EBITDA of £6.7m for the year to March 2025. Growth in advanced materials did not fully offset the lower paper and packaging contribution to revenues, which is set to remain flat this year. The new chief executive is cutting costs to help profitability of the paper and packaging division, and he will provide an update on strategy in June. The share price recovered 13% to 152.5p.

Vast Resources (LON: VAST) says that there were an additional 6,000 carats of gem quality stones in the parcel held by the central bank of Zimbabwe. This takes the total to 135,000 carats. They will be sold in phases. The share price rose 5.95% to 0.445p, having been as high as 0.485p.

FALLERS

Seaweed-based animal feed Ocean Harvest Technology (LON: OHT) says first quarter revenues grew 65%, but it remains loss making. Further funds are being sought from investors, but it has not yet secured any commitments. There is enough cash until mid-June. The share price slumped 76.2% to 1.25p.

Delays in decision making by customers has led to a downgrading of expectations for 1Spatial (LON: SPA). The geospatial software provider is still growing with annualised recurring revenues growing 14% to £19.7m at the end of January 2025. Group full year revenues were 3% ahead at £33.4m with lower services revenues offsetting software growth. Underlying pre-tax profit improved fell from £2.1m to £1.2m. Despite a downgrade, pre-tax profit is still expected to be £2m this year. The share price dipped 12.8% to 44.5p.

Oil and gas producer Angus Energy (LON: ANGS) has deferred the first principal repayment of £1.25m for the Trafigura loan facility. Discussions continue on changes to the repayment schedule. Tests are going on for the new booster compressor at the Saltfleetby field and Angus Energy is assessing ways of boosting production. The share price fell 6.52% to 0.215p.

Zephyr Energy (LON: ZPHR) published positive initial results from the State 36-2 LNW-CC-R well in the Paradox Basin in Utah. During a two day period steady production rates were equivalent to 700-1,066 barrel of oil equivalent/day. This fits with the P50 estimate of reservoir properties. Further results will be announced. The share price declined 9.18% to 4.45p.

FTSE 100 lower as trade concerns creep back in

UK Investor Magazine
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FTSE 100 lower as trade concerns creep back in

The FTSE 100 slipped ok Wednesday as investors erred on the side of caution as trade concerns crept back in ahead of interest rate decisions from the Fed and Bank of England.

After closing higher for 16 consecutive sessions, London’s leading index fell 0.15% in early trade on Wednesday.

“Concerns about how Trump’s tariff wars will play out are still causing jitters, even though the door is open to a deal with China, with talks scheduled for this weekend,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.

“The FTSE 100 is lower in early trade, after its record run of success, having netted higher closes for 16 sessions in a row. There’s a pause for breath for the Footsie ahead of key interest rate decisions from the Fed and the Bank of England, as investors await the take from central bankers about the current risks to the global economy.”

Despite the clear risks to the global economy, the Federal Reserve isn’t expected to cut interest rates this evening amid frosty relations between Donald Trump and Jerome Powell, the head of the Federal Reserve. Trump is pressuring Powell to cut interest rates while Powell is doing his best to remain politically independent and pointing to the risk of inflation if rates are cut too quickly.

Meanwhile, the Bank of England looks set to cut interest rates to 4.25% tomorrow.

China helped provide some support for the FTSE 100 through fresh stimulus measures that sent Glencore, Prudential and Rio Tinto higher.

However, it was the pharma giants AstraZeneca and GSK that dictated trade on an index level on Wednesday as the pair suffered from the latest comments from the US suggestion the introduction of tariffs on pharmaceuticals in the near future.

GSK was the FTSE 100’s top faller, losing 3%, while AstraZeneca gave up 1%.

BAE Systems was flat after saying it had a ‘strong start’ to the year and was sticking with previously issued guidance.

“BAE Systems is a rare beast on the UK stock market in that it is one of the few companies not to be derailed by tariff and economic turmoil,” said AJ Bell investment director Russ Mould.

“Governments in many parts of the world have pledged to increase defence spending, thereby creating a richer backdrop for BAE to bid for contracts. Most of the equipment delivered to US customers is made domestically with parts mostly sourced from American suppliers, so tariffs aren’t applicable in these cases.

“Trading is ticking along as expected and there is no change to earnings guidance. It intends to hire more people, including the training of many individuals to create tomorrow’s skilled workforce.”

BAE Systems is up 53% so far this year and is one of the best-performing FTSE 100 companies in 2025. Today’s update gave no reason for investors to book these gains as reduce exposure to the stock.

Share Tip: Synectics – we should be watching them as they watch everyone else, AGM Update encourages further purchases of its shares

Mark Watson-Mitchell
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Share Tip: Synectics – we should be watching them as they watch everyone else, AGM Update encourages further purchases of its shares

Ahead of today’s AGM Synectics (LON:SNX) has issued a Trading Update stating that its recent wins across all key sectors continue to support the company's solid order book and encouraging sales traction. 
The Business 
This group is a leader in advanced security and surveillance solutions that help protect people, property and assets around the world. 
It transforms customer operations by seamlessly integrating systems, technologies, and data into a unified solution-enhancing safety, improving efficiency, and enabling smarter, faster decision-making and response capabilities.&nb...

Cepro is disrupting both the energy and housing sectors 

UK Investor Magazine
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Cepro is disrupting both the energy and housing sectors 

Cepro, an award-winning Bristol-based renewable energy company, is crowdfunding to scale its mission to decarbonise and decentralise home energy – and disrupt the energy sector.  

Cepro partners with housebuilders to deliver all-electric, future-proof homes at lower cost. They are already operating the UK’s first fully operational residential smart grids and are winning awards for their innovative approach. 

Drawing on expertise in the energy sector, retro-fitting and housing, the Cepro team has established a model that finances and installs solar panels and batteries into new-build properties, then manages the fully renewable smart grid for residents.  

Their aim is to remove the biggest barriers facing house builders when it comes to installing clean energy in new builds. In so doing, they want to pave the way for the UK’s urgent transition away from fossil fuels. Although the UK government has made a legally binding commitment to eliminate fossil fuel reliance by 2050, residential energy use, which accounts for 23% of current emissions, is a major challenge. 

Cepro’s model meets this challenge by benefitting housebuilders, homeowners and occupiers alike.  

For housebuilders, it lowers the upfront cost of installing renewable energy systems, reduces demand on the grid – easing constraints and speeding up development – and supports Scope 3 carbon emission reductions. For homebuyers and occupiers, the model offers both environmental and financial benefits: they avoid emissions from fossil fuel energy sources and receive a guaranteed lifetime discount of at least 15% on their energy costs, compared with grid prices. All of this is delivered at no additional cost to them. 

Cepro is an ambitious company – they also want to disrupt the energy sector by providing a locally sourced and managed solution. Founder and Managing Director Damon Rand says: “having spoken to leaders within most of the major UK housebuilders now, there is a genuine willingness to deliver solar and batteries once presented with cost-neutral ways to do so”. 

Also contributing to Cepro’s momentum is the imminent implementation of the long-delayed Future Homes Standard, which will tighten Part L regulations governing the construction of new homes. By 2030, Cepro aims to capture 18% of the UK residential smart grid market. 

The company’s eight person team is based out of central Bristol and is set to grow rapidly to deliver this exciting work. Damon says “We can and should build both the housing AND the clean energy we need at the same time, in the same place. Help us make this possible for housebuilders creating more affordable and resilient communities.” 

To learn more about Cepro and how to get involved, visit their website.  

Vietnam Holding: Trading Places

Vietnam Holding
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Vietnam Holding: Trading Places

New exchange platform will improve investment environment in Vietnam

The Ho Chi Minh City Stock Exchange (HoSE) reopened yesterday 5 May after the Reunification Holiday with an upgraded trading platform. It’s both a necessary and welcome move which will yield immediate benefits for anyone who wants to invest in one of Asia’s most dynamic economies.

Over the longer term, it will help Vietnam’s bid to gain emerging market status in global indexes,  a designation that would open up the markets to a far larger pool of investors.

A better way to trade

The new system is based on Korea’s KRX platform. The upgrade has been a long-running project, and not everything has gone smoothly. In fact, the exchange conducted trial runs in April last year before announcing it would temporarily suspend plans to transition.

Now that it’s live, investors can expect an immediate improvement. The new exchange will be able to handle 1,000 orders per second (compared with just 400 on the old platform), transaction speed will improve from 25ms to 10ms and traders will now be able to amend an order without cancelling it.

The new system should also help shorten settlement cycles and lay the foundation for a central clearing counterparty system, which would improve market stability and make trading more efficient and secure.

The upgrade is crucial, as the old system was groaning under the weight of increasing volumes. A surge in volume forced the HoSE shut for several days in 2018 and again in 2021. Temporary improvements by local digital champion FPT allowed trading to continue, but the exchange clearly needed an upgrade to handle the growing number of domestic investors. At last count, there were 9.7 million Vietnamese investors, with close to 150,000 signing up for accounts within the last three months alone.

While domestic investors make up the bulk of trading volume on the exchange, the changes will also be better for investors overseas too. The great majority are brokerages or institutional investors. In the short term, it’s unlikely the new platform will enable overseas retail investors to trade Vietnamese stocks directly using an app.

But for brokerages and institutional investors, the new platform will be better suited to buying and selling without prefunding. Previously, overseas investors were required to prefund trades, which required investors to put money into a local account and wait for it to clear.

This rule was an obstacle for passive exchange-traded funds (ETFs), which usually spread their investments across several markets, replicating the constituents of an underlying index. In order to remain fully invested, they might have to sell shares in one market and then wait several days for the funds to clear in Vietnam, impacting how well they track the underlying index.

The regulators dropped the requirement in November, but that created issues too, because it meant brokerages effectively needed to offer credit in order to settle the trade. The new KRX system will be built to handle the removal of prefunding, making the whole process easier.

From frontier to emerging market

The upgrade to the exchange is part of a broader plan. It will help Vietnam make a case to global index compilers FTSE Russell and MSCI that the country should be treated as an emerging market rather than a frontier market.

This reclassification isn’t just academic. If Vietnam were to attain the designation, it would be a significant transformation with far-reaching impacts. Listed Vietnamese companies would be included in a number of emerging market indexes, which would make them available to a far larger pool of investment capital.

Initially, it might push company values higher as more emerging market funds buy into local stocks to reach their quota of Vietnamese stocks. That would certainly be a bonus for those who are already invested.

Vietnam has been on the watch list for FTSE since 2018, and an upgrade could mean $6 billion in capital inflows from passive and active funds. An upgrade on the MSCI would be worth substantially more, but Vietnam isn’t on the watchlist yet.

Frontier markets are often characterized by poor liquidity, low transparency, limited access for foreign investors, potential for corruption, and weaker regulatory and legal frameworks. But sophistication varies hugely within the category.

Some European countries with small exchanges (Iceland, Romania, the Baltics and Croatia) are included in the MSCI Frontier Markets Index. A number of larger Asian economies like Bangladesh and Pakistan are on it too, while minnow markets like Cambodia and Laos don’t make the cut.

Vietnam seems like a prime candidate for inclusion in the emerging markets index. The economy is one of the strongest performers in Southeast Asia, it’s a key manufacturing hub and the stock market has shown impressive growth. Vietnam is by far the largest constituent of the MSCI Frontier Markets Index, making up 24% of the index.

Even so, the institutional investors, brokers and custodians who decide on classifications for MSCI have so far ruled that Vietnam doesn’t meet the 18 criteria for inclusion. The prefunding requirement was one obstacle to achieving emerging market status. The exchange itself was another.

Now that those two obstacles have been removed, the largest remaining impediment is the limit on foreign ownership of key stocks. In fact, currently more than 10% of the market is subject to such restrictions.

The indexing organisations require that each country spend a year on a watchlist before moving into a new category. That means Vietnam is at least a year away from achieving the upgrade on the MSCI index. FTSE Russell has had Vietnam on its emerging markets watch list since 2018, so its reclassification may come as early as September.

Either way, the upgrade is good news. It will strengthen Vietnam’s case for both, while delivering benefits to investors.

JD Wetherspoon sales rise as more franchise pubs open

UK Investor Magazine
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JD Wetherspoon sales rise as more franchise pubs open

JD Wetherspoon has announced a 5.6% increase in like-for-like sales for the 13-week period ending 27th April 2025, compared to the same period last year.

The pub chain also reported year-to-date like-for-like sales growth of 5.1%.

Total sales for the quarter rose by 5.0%, with year-to-date figures showing a 4.2% increase. The slight difference between total and like-for-like sales reflects the company’s disposal of seven pubs during this financial year.

Despite these closures, Wetherspoon continues its expansion plans with two new pubs that have already opened this year. The company intends to launch an additional four or five establishments before the financial year ends, with approximately ten more planned for the following year.

In a significant development, Wetherspoon has expanded its franchise operations, with four new franchise locations opening during the last quarter. All new franchise pubs are operated by Haven Holiday Parks, bringing the total number of franchise establishments to seven.

The company currently operates 795 pubs across the UK and has acquired seven freehold reversions at a total cost of £17 million in locations where it was previously a tenant.

While the headline sales number will be welcomed by investors, it’s Wetherspoon’s costs that are likely to have the biggest impact of the bottom line this year. The market will have to wait until the group’s next set of results for insight into how rising taxes and staffing costs are hitting profits.

“The company’s main ambition, as always, is to improve its appeal to staff and customers,” said the chairman of JD Wetherspoon, Tim Martin.

“In this connection, for example, the company has invested in new staff facilities in 520 pubs (49 in the current year), including staff rooms and changing rooms, with approximately 270 planned for the future. The investment per pub is approximately £100,000.

“The product range for customers continues to evolve. For example, the company has recently introduced, nationwide, the highly regarded Jaipur traditional ale from the Thornbridge Brewery, as well as renowned international beer brands, Kronenbourg 1664 Biere and Poretti.

“As regards the menu, new initiatives include a gourmet burger offer, which has proved extremely popular in the pubs in which it has been trialled.

“Bearing in mind that recent trading has been helped by favourable weather, the company anticipates a reasonable outcome for the financial year, notwithstanding previously reported wage and tax increases of approximately £1.2 million per week.”

FTSE 350 sectors to benefit from Bank of England rate cuts

UK Investor Magazine
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FTSE 350 sectors to benefit from Bank of England rate cuts

The Bank of England looks set to embark on a series of interest rate cuts this year as Donald Trump’s trade policies rock the global economy and hit the UK’s growth rate.

After remaining steadfast in their cautious approach to interest rate cuts in the face of stubbornly higher inflation, the Bank of England is now being forced to act as tariffs threaten the UK economy.

“Donald Trump’s tariffs have caused a massive reappraisal of the future path of UK interest rates,” said Laith Khalaf, head of investment analysis at AJ Bell.

“As things stand markets are focusing on the collateral damage to the UK economy rather than the potential for a trade war to ignite inflation once again. As a result, the market is now assigning a 50% chance to the base rate being 3.5% or lower by the end of this year.”

Interest rates falling below 3.5% will likely be the result of some economic pain, but lower interest rates could provide a base for future growth. Here are the FTSE 350 sectors set to take advantage of any rate cuts this year.

FTSE 350 Housebuilders

Probably the most interest-sensitive FTSE 350 sector, the housebuilders will lap up any reduction in interest rates. 

The sector has been ravaged by the higher interest environment in response to rising inflation, which has increased mortgage rates and eroded consumers’ spending power. 

Lower interest rates, and most importantly, the perception of lower interest rates in the future, will help lift activity in the property market.

It will also encourage more first-time buyers to purchase their first home – the lifeblood of the UK housing market.

“Donald Trump may not have intended to liberate UK mortgage holders from high rates, but his tariff announcements have done just that,” explained Khalaf.

“Since Liberation Day, the swap rates which stand behind mortgage pricing have fallen decidedly below 4%, and we have seen a wave of lenders offering more competitive mortgages.”

Names such as Persimmon, Taylor Wimpey and Vistry are all set to benefit from the Bank of England rate cuts. 

FTSE 350 Supermarkets 

Another heavily UK-centric sector, supermarkets are well placed to capture any improvement in consumer confidence created by lower interest rates.

Companies such as Sainsbury’s and Marks and Spencer should enjoy shoppers allocating savings on interest payments to more premium lines. 

The feel-good factor of falling mortgage rates will likely see a tick up in retail sales, which the supermarket sector and retailers generally will see the impact of in upcoming trading statements. 

Higher spending on premium lines will translate into improved margins and provide some reprieve in the bitter battle with the discounters. 

FTSE 350 Utilities

Utility companies such as National Grid and Severn Trent will enjoy a two fold benefit from lower interest rates. 

First, lower interest rates will help reduce their interest payments and help boost earnings. Utility companies take full advantage of their ability to issue debt to an army of ready, willing and able fixed-income investors, and as a result, incur substantial costs in the form of payments to bondholders. Lower interest rates mean they’ll be able to lower their coupons and reduce these costs. 

The second advantage of falling interest rates for utility stocks is the potential wave of cash coming out of bonds into equities. As interest rates fall, income-seeking investors will seek ‘bond proxy’ stocks such as utility companies that can provide reliable cash flows at a higher dividend yield than can achieve in government bonds. 

Identifying high-quality UK equities and achieving a market-beating dividend yield with Dunedin Income Growth

UK Investor Magazine
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Identifying high-quality UK equities and achieving a market-beating dividend yield with Dunedin Income Growth

The UK Investor Magazine was thrilled to welcome Rebecca Maclean, Co-Manager of Dunedin Income Growth Investment Trust, to the podcast to drill down into the trust’s portfolio and strategy.

Dunedin Income Trust takes a total return approach to UK and European equities to achieve a dividend yield of 4.8%.

Find out more about Dunedin Income Growth

We explore the trust’s stock selection process, and Rebecca provides deep insight into their selection process and how they identify high-quality companies that offer both growth and a sustainable income yield.

The podcast highlights several of Dunedin Income Growth’s portfolio holdings and Rebecca provides a fascinating overview of their investment thesis for holdings such as Assura, Chesnara and M&G.

Rebecca explains the opportunity in the trust’s shares ‘triple discount, which encompasses the attractive valuation of UK equities generally and the trust’s share price discount to NAV.

We discuss the macro influences that could support the trust’s holdings and why Dunedin Income Growth is a good choice to ride out tariff-induced volatility.

AIM movers: Facilities by ADF hit by film tariff fears and Aptamer royalty deal

Andrew Hore
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AIM movers: Facilities by ADF hit by film tariff fears and Aptamer royalty deal

In content advertising company Mirriad Advertising (LON: MIRI) has clawed back some of last week’s share price fall after it said it was running out of money and the business may have to be placed into administration. There has been no positive update since then, but the share price rebounded 8.33% to 0.0325p.

Kefi Gold and Copper (LON: KEFI) says that its partner in the Tulu Kapi gold project, Africa Finance Corporation, has been approved for Ethiopian Country Membership. This will help with project financing. The share price improved 5.47% to 0.675p.

Helium One Global (LON: HE1) has drilled the Jackson-2 well in Colorado has been drilled to 375 metres and free gas has been confirmed. Samples have been sent to the laboratory for analysis of helium and CO2 content. The share price rose 2.78% to 0.925p.  

Aptamer (LON: APTA) says the Optimer-based test for Alzheimer’s disease has been adapted into an Enzyme-Linked Immunosorbent Assay (ELISA), a format widely accepted and used in hospital laboratories. This has enabled a royalty agreement to be finalised with development partner Neuro-Bio. Aptamer will receive a blended royalty rate of 11.1% on the first £166m of sales with 5% after that level of sales is passed. A validated prototype could be developed within 18 months and the be transferred to a distributor. The Alzheimer’s disease testing market could be worth $19.6bn by 2029. The share price is 1.3% ahead at 0.39p, having been 0.42p earlier in the day.

FALLERS

Trading recommenced in Argentix (LON: AGFX) shares following the financial problems due to taking on too much risk on foreign currency transactions and the recommended bid of 2.49p/share from IFX Payments. The share price slumped 91.9% to 3.485p, but remains above the bid price.

Film and TV vehicles and trailer supplier Facilities by ADF (LON: ADF) reported 2024 figures in line with expectations, but the figures were overshadowed by potential US tariffs on non-US movies. This provides additional uncertainty in a market that has been slow to recover from the US writers; strike and concerns that there could have been changes in UK film and TV investment incentives. There was a small 2024 pre-tax profit before exceptionals, including a £2.45m write down of goodwill on the acquisition of Location One, which has not performed to expectations. First quarter group revenues have improved, and pre-tax profit should recover this year. The share price dipped 16% to 14.5p.

Fusion Antibodies (LON: FAB) confirms 2024-25 revenues were £1.96m, up from £1.14m, with £400,000 of cash in the bank. The estimated loss is £1.5m. Gross margins remain well below the 50% achieved in the past. Concerns about US tariffs provides a headwind for the business, which should grow revenues again this year. The share price declined 5.34% to 6.2p.

Excess inventory retailer Huddled (LON: HUD) reported a jump in 2024 revenues from £2.4m to £14.2m through a combination of growth in the original Discount Dragon fast moving consumer products retailer and the acquisitions of cosmetic products retailer Boop Beauty and health products retailer Nutricircle. The legacy Let’s Connect business is being closed down. The 2024 loss increased from £2.28m to £4.05m. First quarter trading has been strong and there is additional warehouse capacity that will enable Huddled to move towards profitability later this year. A £1.1m loss is forecast for 2025 and a move into profit anticipated in 2026. The share price fell 5.88% to 3.2p.

Another upgrade for Filtronic

Andrew Hore
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Another upgrade for Filtronic

RF components and systems developer Filtronic (LON: FTC) has been upgraded yet again after its latest trading statement. Both 2024-25 and 2025-26 figures are going to exceed expectations. The share price is 4.1% higher at 99.5p and just off its recent high despite concerns about tariffs.

Manufacturing capacity has been increased to meet the demand from clients, such as SpaceX.

Cavendish raised the forecast revenues for the year to May 2025 from £50.4m to £55m and increased the pre-tax profit estimate from £11.9m to £14.1m. To put that in perspective, just over one year ago the pre-tax profit forecast was £6.4m – and that was after an upgrade.

The 2025-26 revenues estimate has been raised from £46m to £50m. However, the pre-tax profit forecast is maintained at £8.3m because of investment in engineering capacity. There is potential for further upgrades as the year progresses.

Net cash is expected to be £13m by the end of May 2025 and £16.7m one year later.

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