AIM movers: Jaywing loss reduced and Indus Gas wating for PSC extension

Andrew Hore
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AIM movers: Jaywing loss reduced and Indus Gas wating for PSC extension

Data and marketing services provider Jaywing (LON: JWNG) reduced its full year loss from £12.5m to £2.4m. Revenues were reduced by 3% to £21.5m with an adverse effect from the A$/£ exchange rate. The full benefits of cost reductions will show through this year. The share price increased 22.2% to 2.75p.

Primorus Investment (LON: PRIM) is subscribing 18.1 million shares in Pri0r1ty AI for £300,460 to help fund a software roll out. Standard list shell Alteration Earth (LON: ALTE) has non-binding heads of terms to acquire Pri0r1ty AI and move to AIM. Primorus Investment directors Rupert Labrum and Matthew Beardmore own 45.8% of Alteration Earth. The Primorus Investments share price improved 11.5% to 3.4p.

Eco (Atlantic) Oil & Gas (LON: ECO) had cash of $1.19m at the end of June 2024. Following the completion of the farm-out agreement for Block 3B/4B in South Africa, the company will receive $8.3m. It has also sold a further 1% interest in the block, leaving it with 5.25%, to Africa Oil in return for the Eco shares and warrants its owns, which is equivalent to 15% of the company. The share price is 8% ahead at 13.5p.

Alba Mineral Resources (LON: ALBA) has completed the first underground blast on No. 4.5 level in the Llechfraith section of the Clogau St David’s mine in Wales. There will be further blasts on level 5. The share price rose 5.88% to 0.045p.

Antenna technology developer Filtronic (LON: FTC) is trading ahead of expectations and has secured a follow-up order from SpaceX for E-band solid-state power amplifier modules for Starlink satellites. The new order is worth £6.4m and SpaceX has been issued 10.9 million warrants. Cavendish has raised its 2024-25 pre-tax profit forecast from £6.4m to £7.7m.  The share price is 5.26% higher at 80p.

FALLERS

Indus Gas Ltd (LON: INDI) says the extension of the PSC for Block RJ-ON/6 for a period of ten years is under consideration. The current period ended on 20 August. The maintenance of the customer’s power plant continues so there is a reduced offtake of gas. The share price slumped 18.5% to 10.025p.

Fire safety products developer Zenova Group (LON: ZED) revenues dipped from £108,000 to £51,000, although the loss was reduced from £709,000 to £617,000. Product certifications were delayed and that reduced income. The certifications have been received and this will boost second half revenues. The share price dipped 6.52% to 1.075p.

Mkango Resources (LON: MKA) increased its interim loss from $1.6m to $1.7m and there are plans to reduce operating costs by 36%. Net debt was $3.4m, including deferred consideration, although $1.25m is being raised following the balance sheet date. The share price fell 3.1% to 6.25p.

Andrada Mining (LON: ATM) generated revenues of £18m for the year to February 2024. Tin concentrate produced rose 54% to 1,500 tonnes, while all in sustaining costs increased from $24,939/tonne to $26,223/tonne. There is £10m in the bank. The share price slipped 1.45% to 3.4p.

GetBusy – Growth In Its ARR Will Push The Bottom Line, Interims Due Next Tuesday, Brokers Look For Shares To More Than Double 

Mark Watson-Mitchell
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GetBusy – Growth In Its ARR Will Push The Bottom Line, Interims Due Next Tuesday, Brokers Look For Shares To More Than Double 

Next Tuesday morning, 3rd September, GetBusy (LON:GETB), the productivity software group, will announce its Interim Results for the six months to the end of June. 

Although they will continue to indicate the possibility of an adjusted pre-tax loss for the year, I am not put off from following this company. 

That is because it is progressing in the build-up of its Annual Recurring Revenues, which are well over 90% currently. 

And, as for that loss, it will only be slight by the end of this year, perhaps just £0.2m against break-even last year. 

However, the next year is expected to see that loss wiped out as the £35m capitalised group turns into profitability. 

The Business 

Set up in 2017, the Cambridge-based group develops and sells document and task management software products in the UK, the US, Australia, and New Zealand.  

It has over 73,000 paying users and over 3m collaborators across multiple market sectors and jurisdictions. 

The company is an established and fast-growing SaaS business delivering sustained double-digit growth in high-quality recurring subscription revenue over the long term. 

Its specialist productivity software solutions enable growing businesses to work securely and efficiently with their customers, suppliers and teams anytime, anywhere.   

Those solutions can be delivered flexibly across cloud, mobile, hosted and on-premise platforms, while integrating seamlessly with other class-leading core business systems, such as ERP, accounting, tax, policy management and insolvency practice management systems. 

Its software suite includes various tools and end-to-end workflows such as digital asset and document management, tailored templates, quotes/proposal development, form-fill, authentication, e-signatures and approvals, workflow and task management, chat, and complex digital certification. 

The group’s products equip its customers to move away from paper-based processes, reducing waste and eradicating the carbon associated with transporting, storing and destroying paper records. 

Its brand names include Workiro and Virtual Cabinet for document workflow management, client portals, and digital signatures; and SmartVault for enterprise content management. 

AGM Trading Update  

At the end May AGM, the company stated that it had continued to make good operational progress towards its strategic goals.  

It reported that its annualised recurring revenue at the end of April was some £20.8m, up from £20.5m on 31 December 2023.  

It also reconfirmed expectations for the year and remained very encouraged about the long-term value creation and realisation prospects for the group. 

Analyst Views 

Michael Hill and Kimberley Carstens at Cavendish Capital Markets are looking for the group’s shares to hit 160p in due course. 

Their estimates for the current year are for £22.9m (£21.1m) revenues, while its adjusted pre-tax loss could be £0.2m (£0.0m). 

But for 2025 they foresee £24.0m revenues and a break-even position. 

In My View 

Not making any money, profit-wise, helps to put the shares at a disadvantage in valuation terms. 

But what appeals to me is the company’s ability to build up its ARR over the next few years and then further ahead. 

GetBusy is a player in a marketplace offering so much potential to such a young creative, fast-developing company. 

It will only take the announcement of a small handful of corporate wins to get the shares moving ahead from the current 69p. 

Next Tuesday’s announcement may well help that process. 

Nvidia shares key technical levels

UK Investor Magazine
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Nvidia shares key technical levels

Nvidia has undoubtedly been the world’s most closely watched stock this week.

Earnings released on Wednesday produced a disappointing reaction in the stock, but the results themselves were not a disappointment as they confirmed momentum in demand for chips was intact.

Expectations were high going into Nvidia’s earnings update this week, and anything less than a blowout to the upside was going to weigh on shares.

As the stock settles into a trading range, analysts at XS.com have provided technical commentary on the key levels for NVDA shares in the coming trading sessions:

“The better-than-expected report is likely to lead to price fluctuations with an upward bias, but the stock’s decline and breach of the 50-day moving average at $117.70 could result in further weakness,” said Rania Gule Senior Market Analyst at XS.com.

“Looking ahead to the medium and long term, the markets should respect four key technical price levels that may play a role if Nvidia’s shares continue to decline following yesterday’s strong earnings.

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“The first support level is at $116. This area may provide initial support near the trendline connecting the May peak and the counter-trend price surge that occurred in early August. A move below this level could push the stock down to the $107 region, a key demand and reversal area on the daily chart between May and August.

“Further decline may lead to a retest of the crucial $99 level, where Nvidia shares are likely to encounter significant support near the March peaks, with the first of these peaks representing the previous all-time high for the stock.

“Lastly, it’s essential to watch the $91 zone, which is a lower price target for the descending column pattern from July to August, identified from the highest point of the recent price channel formation. Should such a move occur, it would confirm a descending channel pattern in the stock and could potentially lead to a retest of this month’s low at $90.70 in the medium term.”

Filtronic receives another SpaceX order

UK Investor Magazine
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Filtronic receives another SpaceX order

Filtronic plc, a leading designer and manufacturer of products for aerospace, defence, space, and telecoms infrastructure markets, has announced a new production order from SpaceX valued at $8.4 million.

This order continues the demand for Filtronic’s E-band solid state power amplifier (SSPA) modules, crucial components in SpaceX’s Starlink satellite constellation.

The irrevocable order is set to be fulfilled in the calendar year 2025, prompting Filtronic to upgrade trading projections to be ahead of current market expectations for FY2025.

This latest contract win falls under the Strategic Partnership agreement signed in April 2024.

“We are delighted to receive another production order from our partner, SpaceX, as we continue to support the deployment of the Starlink constellation with E-band technology,” said Nat Edington, Chief Executive Officer of Filtronic.

The order has triggered SpaceX’s vesting of an additional 2,171,211 share warrants as part of the long-term partnership established between SpaceX and Filtronic earlier this year.

This brings the total number of vested warrants under the first tranche to 10,856,055, reaching the maximum 5% of the company’s share capital as stipulated in the agreement. With this milestone, Filtronic confirms that future E-band SSPA orders from SpaceX will no longer result in further warrant vestings under this tranche.

ECR Minerals eyes helium bandwagon

UK Investor Magazine
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ECR Minerals eyes helium bandwagon

ECR Minerals looks set to be the latest natural resources junior to add a helium project to its investments.

Citing recent excitement in the share prices of companies that have pivoted towards helium, ECR wants a piece of the action and announced the expansion of its strategy to include US helium projects. 

A number of UK-listed shares that have hit a dead end with existing operations have shifted to helium to revive the company’s prospects.

ECR Mineral’s Chairman and Managing Director, Nick Tulloch has experience reinventing cannabis company Voyager Life as a helium play.

Voyager’s shares collapsed early in 2024 following a failed merger with another cannabis firm, and the company emerged as a helium producer. 

Helium has a wide range of medical and industrial applications and is important for space travel.

ECR Minerals says it sees value in selling and distributing helium in the US and will target only assets in production or with the potential for near-term production.

Comments accompanying today’s announcement highlight the difficulties of extracting helium, and the company made it clear it didn’t want to get involved in helium exploration.

“Although it is often tempting to think that the important part of developing a natural resources play is to find the resource, in fact we consider that it is production and sales that really define a company,” said Nick Tulloch, Chairman of ECR Minerals.

“There are many substantial resource deposits globally that are simply not economic – or possible – to extract and sell. This is particularly the case with helium. Despite its high value, it is not a straightforward element to process or transport.”

“Therefore, as we examine this possible expansion of ECR, it is critical that we source assets that are capable of near term production, and therefore sales, of helium and access to nearby infrastructure, both gathering lines and a processing plant, is a must.”

Touching on the funding of ECR Mineral’s expansion into helium, the company said it wouldn’t conduct a placing at a discount to the current share price.

FTSE 100 shakes off Nvidia wobble, banks rebound

UK Investor Magazine
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FTSE 100 shakes off Nvidia wobble, banks rebound

The FTSE 100 has shaken off any concerns about disappointing Nvidia earnings and pushed higher on Thursday with banking and consumer stocks among the top risers.

Although Nvidia shares fell after the company announced results last night, the drop can be attributed to profit-taking rather than any major concerns with the numbers. There certainly wasn’t anything in the numbers to suggest the AI theme was coming to an end or that there was any slowdown in momentum.

“The FTSE 100 ticked higher despite a technology-led sell-off in the US overnight and a negative after-hours reaction to Nvidia’s results – the lack of tech stocks in the UK index proving a rare boon on Thursday morning,” said AJ Bell investment director Russ Mould.

“Consumer-facing names were getting some love from the market along with resources stocks on a quiet day in London for corporate news.”

We mentioned yesterday that the FTSE 100 has shown remarkable resilience throughout August’s volatility. Although there are many occasions that investors wish they had a greater weighting to US tech than FTSE 100, today’s 0.3% gains for the FTSE 100 is a reminder of the defensive nature of the index and its ability to preserve value when other markets are under the cosh.

Banks rebound

UK banks rebounded a day after a comment in an FT article suggested the Labour government could be eyeing up banking profits in their upcoming tax raid budget.

“UK banking stocks came under some pressure yesterday after reports suggested the new government may be looking at additional taxes on the sector,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“There’s precedent here, the sector already suffers from elevated taxes in the form of the bank levy and corporation tax surcharge. Details are thin on the ground but given any tax would likely be UK focused, this would impact domestic players like Lloyds and NatWest more so than those with a global presence.”

Any concerns about the impact of additional taxes were short-lived, as the government itself is yet to signal that it was planning additional taxes on banks. Lloyds shares rose 1%, and Barclays ticked 1.6% higher. After a strong rally in recent weeks, things could become very interesting for banking stocks should Rachel Reeves drop in any hints to back up yesterday’s jitters.

Diageo was the top faller after one of its peers posted soggy results. Diageo has released a series of disappointing updates, and it appears that peers are experiencing their problems, suggesting that its woes may persist.

AIM movers: Quiz revenues decline and ex-dividends

Andrew Hore
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AIM movers: Quiz revenues decline and ex-dividends

Kazera Global (LON: KZG) says that the on-site inspection of the Whale Head heavy minerals sands project in South Africa by the consultant for the National Nuclear Regulator has been completed. This means that there is consent for mining and processing. The share price is 18.4% higher at 1.125p.

Workplace software provider essensys (LON: ESYS) has completed its transition to a SaaS-based model and its trading is better than expected. Full year revenues were £24m and loss was lower than forecast. There is cash of £3.1m. There should be a further fall in loss this year and a modest decline in cash. The share price is 13.1% ahead at 34.5p.

Seed Innovations (LON: SEED) finance director Lance de Jersey has acquired one million shares at 1.45p each. That takes his stake to 1.4 million shares.  The share price improved 7.14% to 1.5p.

Healthcare services provider Totally (LON: TLY) has won £1.25m of new business. This includes a £1m insourcing award for ophthalmology outpatient clinics in Galway and Sligo via Saolta Group. There is also a £250,000 contract for physiotherapy services in England. There are also two contract extensions worth £2.75m. The share price rose 5.41% to 9.75p.

FALLERS

Retailer Quiz (LON: QUIZ) reported a 11% decline in revenues to £82m in the year to March 2024. There was a swing from a pre-tax profit of £2.3m to a loss of £6.7m after exceptional costs of £1.5m. Sheraz Ramzan was appointed chief executive at the end of the period. He is targeting the core customer based and updating the brand. He is also improving service. Talks are ongoing with founder Tarak Ramzan for the provision of a £1m loan. Revenues in the first four months of the current year are 11% lower at £27.3m. Trading remains difficult. The share price declined 14.4% to 4.34p.

Specialist IFA and expert witness services Frenkel Topping (LON: FEN) expects a decline in profit in 2024 even though revenues should be higher. This is due to delays in winning business by the legal services business Partners in Costs after adding additional staff. Cavendish forecasts a fall in pre-tax profit from £7.2m to £6.8m this year. The share price slipped 5.1% to 46.5p.  

Zenova Group (LON: ZED) has received an inaugural order for 1,500 Zenova FX500 extinguishers with UK fire and safety distributor O. Heap & Son. This small fire extinguisher fits a gap in the distributor’s product range. The share price fell 4.17% to 1.15p.

Security systems supplier Synectics (LON: SNX) says that chief executive Paul Webb has died. He has been in the position for nine years. Amanda Larnder will become interim chief executive. The share price dipped 3.94% to 195p.

Ex-dividends

Brickability (LON: BRCK) is paying a final dividend of 2.28p/share and the share price declined 3p to 66.5p.

Knights Group Holdings (LON: KGH) is paying a final dividend of 2.79p/share and the share price is 0.25p higher at 130p.

Northern Bear (LON: NTBR) is paying an interim dividend of 2p/share and the share price fell 1.5p to 59.5p.

PetroTal Corp (LON: PTAL) is paying a dividend of 1.5 cents/share and the share price is 0.25p lower at 40p.

Quartix Holdings (LON: QTX) is paying an interim dividend of 1.5p/share and the share price is unchanged at 185p.

Team Internet Group (LON: TIG) is paying an interim dividend of 1p/share and the share price slipped 2.7p to 132.7p.

The opportunity in e-waste recycling and the circular economy with Majestic Corporation

UK Investor Magazine
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The opportunity in e-waste recycling and the circular economy with Majestic Corporation

The UK Investor Magazine was delighted to welcome Peter Lai, CEO of Majestic Corporation, to the podcast for a deep dive into the emerging leader in sustainable circular economy solutions.

Aquis-listed Majestic Corporation specialises in recycling and recovering precious and base metals from everyday materials that societies routinely discard. This includes electronics, catalytic converters, solar and battery materials.

CEO Peter Lai outlines the benefits of recycling metals as opposed to mining, both from an environmental perspective, and from an economic perspective.

Majestic Corporation has recently posted strong results for FY2023. Highlights include a 25% increase in revenue to US$29.4m and a 149% surge in profit before tax.

Peter details Majestic’s growth strategy and what excites him the most about future developments for the company.

Lloyds shares: investors must contend with further pressure amid tax raid speculation

UK Investor Magazine
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Lloyds shares: investors must contend with further pressure amid tax raid speculation

Lloyds shares were higher on Thursday after falling in the prior session, as investors considered the merits of holding the UK bank’s shares near 52-week highs.

In an article recently published by the UK Investor Magazine, we explained that the end of rising interest rates made the UK banking sector less attractive, and key profitability metrics are set to come under pressure in the coming periods.

Lower interest rates will ultimately result in lower net interest margins and lower income for banks unless they experience a material increase in lending activity, which doesn’t seem likely.

However, Lloyds investors now have a fresh threat to the share price—the new Labour government. 

Keir Starmer has made it clear he and Rachel Reeves will announce plans for a tax raid in the upcoming budget, and banks are in the firing line. 

Along with speculation around changes to inheritance tax and capital gains tax, Labour are thought to be eyeing up banking profits to boost the public coffers.

As Dan Coatsworth, an investment analyst at AJ Bell, explains, banks are easy targets for the treasury, as they can generate billions in extra tax receipts with little public backlash.

“Keir Starmer and Rachel Reeves have made it perfectly clear they will leave no stone unturned in the search to find ways to boost public finances. That also means being creative with where they impose tax and it seems the banking sector could be in their sights,” Dan Coatsworth said.

“It’s about as easy a target as you can get. No-one is going to shed any tears if the banks are forced to hand over more of their profits.

“Banks have made big money from higher interest rates, profiting when the rest of the country has struggled through a cost-of-living crisis. If the oil and gas industry can be slapped with a windfall tax as a result of a spike in energy prices, so can the banks as a result of higher rates.”

The double whammy of falling interest rates impacting the top line and additional taxes eroding what’s left on the bottom line must be carefully considered by Lloyds investors.

Tekcapital’s Innovative Eyewear secures Target.com listing

UK Investor Magazine
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Tekcapital’s Innovative Eyewear secures Target.com listing

In a significant move to broaden its market presence, Tekcapital portfolio company Innovative Eyewear (NASDAQ:LUCY) has announced the availability of its Lucyd Lyte frames on Target.com.

Tekcapital has made a number of announcements regarding developments for Innovative Eyewear in 2024; today’s may just be the most important one, both in terms of potential revenue generation and the delivery on Innovative Eyewear’s strategy to focus distribution through retail outlets.

The partnership with Target.com brings Lucyd ChatGPT-enabled smart eyewear to one of the largest retail platforms in the United States. Target Corporation, with its vast network of nearly 2,000 stores across the country and a robust online presence, serves millions of US customers daily.

By securing a place on Target.com, Innovative Eyewear gains access to a massive customer base, potentially exposing its smart eyewear products to millions of new consumers nationwide.

“Target is a long-time favourite retailer of mine, as well as millions of loyal customers in the US,” said Harrison Gross, CEO of Innovative Eyewear

“Their focus on product quality, style and accessibility makes Target.com an ideal channel partner for our smart frames. We look forward to upgrading Target guests’ eyewear.”

Innovative Eyewear, which develops and retails smart eyewear under well-known brands such as Lucyd®, Nautica®, Eddie Bauer®, and very shortly, Reebok®, has achieved a step-change in revenue generation this year.

The company has outlined a growth strategy to focus on retail distribution in order to reach millions of consumers. Securing a listing on Target.com does just that.

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