AIM movers: Shoe Zone beats expectations again and i-nexus Global loses client

Andrew Hore
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AIM movers: Shoe Zone beats expectations again and i-nexus Global loses client

Craven House Capital (LON: CRV) investee companies Garimon and Honeydog – it has 29.9% of each company – are planning to reverse into the Amigo Holdings shell on the Main Market. These are music streaming and digital publishing businesses. The Craven House share price jumped 34.5% to 19.5 cents.

Further positive data for antimicrobial drug XF-73 has boosted the Destiny Pharma (LON: DEST) share price. This showed that it was effective against all known antibiotic resistance mechanisms. XF-73 nasal is ready for phase III. The signing of a licence deal will enable this to go ahead. The share price improved 22.9% to 59p.

Video games publisher Frontier Developments (LON: FDEV) says it is comfortable with 2023-24 expectations of revenues of £108m and EBITDA loss of £9m. A review will reduce operating costs by one-fifth by next year. Further news about the reorganisation will be announced with the interims in January. The share price recovered 14.4% to 220.75p.

Infectious disease treatments developer Poolbeg Pharma (LON: POLB) is collaborating with a Nasdaq pharma company, which will use Poolbeg Pharma’s oral drug delivery technology to develop a drug for the treatment of a metabolic condition. Poolbeg Pharma will receive funding for the development. This should provide a validation of the oral drug delivery technology. The share price rose 8.66% to 7.65p.

Shoe Zone (LON: SHOE) has sparked another upgrade with its latest trading statement. The shoe retailer’s sales were slightly ahead of expectations and pre-tax profit will be at least £16m, which is 19% higher than forecast. Lower freight rates improved margins. The dividend estimate has been raised from 9p/share to 10.5p/share on the back of the profit growth. Zeus has increased its 2023-24 pre-tax profit forecast from £12.5m to £15.2m. To put this in perspective, one year ago Zeus forecast a 2022-23 pre-tax profit of £8.5m, not much more than 50% of the outcome. It would be wrong to expect similar upgrades this year, but it indicates that forecasts are conservative. The share price increased 5.88% to 225p.

FALLERS

Trading in Ethernity Networks (LON: ENET) shares recommenced at 3pm on Monday and the share price fell from 0.95p to 0.325p. It fell a further 23.1% to 0.25p. The company has been granted a 21-day temporary suspension of proceedings order and a decision will be made by the court on extending the time period. Problems with components supply and in obtaining payment from clients has hurt Ethernity Networks.

Software company i-nexus Global (LON: INX) has lost a customer generating annual revenues of £648,000. In the year to September 2022, revenues were £3.1m. i-nexus Global recently raised £500,000 from a convertible loan and it says it has enough cash for at least 12 months. Costs will be reduced. The share price slumped 16.7% to 3.75p.

Abingdon Health (LON: ABDX) reported strong recovery in revenues in the second half. Management says that no additional funding is likely to be required. There was £3.2m in the bank at the end of June 2023 and cash burn is being reduced. The share price is 11.5% lower at 11.5p.

Helium One Global (LON: HE1) lost some of yesterday’s gains following drilling restarting at the Tai-3 well in Tanzania. The share price slipped 10% to 5.4p.

Tekcapital announces launch of new Innovative Eyewear XL range

UK Investor Magazine
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Tekcapital announces launch of new Innovative Eyewear XL range

To deliver their Generative AI-enabled smart eyewear to a broader market, Innovative Eyewear rhas eleased a new range with several improvements and new features.

Tekcapital’s portfolio company Innovative Eyewear has launched the Lucyd Lyte XL range of glasses addressing customer feedback, including demand for more varied sizes.

The range also encompasses Lucyd’s patent-pending spring hinges and enhanced audio and call quality.

Tekcapital said the Lyte XL collection will be launched on Lucyd.co and Amazon.com today.

“The Lyte XL collection is the culmination of years of smart eyewear R&D, and addresses several key points of consumer feedback on our products. We are very pleased to present our most comfortable, best-sounding and most durable smart eyewear yet,” said Harrison Gross, CEO of Innovative Eyewear Inc.

“We are continuing to enhance the Lucyd line to deliver the most comfortable, functional, and fashionable smart eyewear. Be sure to download our free Lucyd app to access the power of ChatGPT on our smart eyewear.”

Tekcapital investors will also be looking forward to the launch of Nautica, Eddie Bauer and Reebok licensed smart eyewear in the coming months.

Poolbeg Pharma shares rise after announcing oral technology agreement

UK Investor Magazine
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Poolbeg Pharma shares rise after announcing oral technology agreement

Poolbeg Pharma has signed a strategic collaboration agreement with a Nasdaq-listed biopharmaceutical company to develop an optimised oral drug for a metabolic condition using Poolbeg’s licensed oral delivery technology, the companies announced Tuesday.

Poolbeg Pharma shares were 8% higher at the time of writing on Tuesday.

The companies will work together to produce a prototype drug utilising Poolbeg’s technology to optimise the delivery of the Nasdaq company’s novel drug to its ideal therapeutic site.

Poolbeg believes the collaboration could expand to a full licensing agreement allowing the Nasdaq company to integrate the oral delivery technology into its pipeline.

Poolbeg said the agreement marks a milestone and represents a step toward early revenues and advances the company’s commitment to developing treatments for metabolic conditions.

Under the deal, Poolbeg will receive funding to collaborate on producing the prototype oral drug.

Jeremy Skillington, PhD, Chief Executive Officer of Poolbeg Pharma, said: 

“Our partner recognises the benefits of Poolbeg’s licensed oral delivery technology and we look forward to optimising the development of this innovative drug for patients in an area where there is a clear unmet need. We are optimistic that this strategic collaboration has the potential to progress to a full licensing agreement.”

Has the Bens Creek share price fallen far enough?

Andrew Hore
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0
Has the Bens Creek share price fallen far enough?

Metallurgical coal producer Bens Creek Group (LON: BEN) reported a significant loss for the year to March 2023. Production is increasing and it should help the company move into profit, but there is still a lot to prove.
Bens Creek has a coal mine in West Virginia that produces coal for steel production. There were delays in ramping up production that hit the figures last year.
Last year’s revenues were $42.2m, while the pre-tax loss was $24.7m. In its initial research published in January, WH Ireland forecast revenues of $48m and a pre-tax profit of $1.4m.
There is a difference in the revenue...

AIM movers: Scirocco Energy completes disposal and disappointing third quarter for Audioboom

Andrew Hore
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0
AIM movers: Scirocco Energy completes disposal and disappointing third quarter for Audioboom

Scirocco Energy (LON: SCIR) has completed the disposal of its 25% stake in the Ruvuma project and it has received the $2.54m completion payment. A further $3m is payable on final investment decision, up to $8m net revenue share and contingent consideration of $2m based on production levels. The share price jumped 26.7% to 0.475p.

Mosman Oil & Gas (LON: MSMN) has signed a farm-in agreement with Greenvale Gold to fund seismic and drilling on the EP 145 project in the Northern Territory of Australia. Mosman will retain a 25% interest if a four-year work programme is completed. There is an initial payment to Mosman of A$160,000. The share price increased 34.9% to 0.029p.

Drilling has been restarted at the Tai-3 well in Tanzania after Helium One Global (LON: HE1) sourced a replacement rig component from the US. The share price improved 16.3% to 5.7p.

Telecoms billing software provider Cerillion (LON: CER) has beaten forecasts again. There has been buoyant demand from existing customers, even though there have not been any large contracts signed recently. A pre-tax profit of £15.3m is forecast for the year to September 2023. The share price has fallen in recent weeks, but it recovered 9.43% to 1160p.

FALLERS

Two executives of T42 IoT Tracking Solutions (LON: TRAC) have subscribed £12,600 for shares at 3.5p each. Two other directors have taken shares in lieu of salary. This provides additional working capital for the tracking products company. Even so, the share price fell 10.1% to 2.75p.

Crossword Cybersecurity (LON: CCS) is raising £230,000 from unsecured, convertible loans, taking the total loans raised to £2.245m out of an authorised £2.5m. The share price slipped 8.57% to 8p.

Audioboom (LON: BOOM) reports third quarter revenues of $14m and made a loss because of weak advertising demand. The podcast platform operator is expected to generate revenues of $19m and a positive EBITDA in the fourth quarter. Cavendish had expected a 2023 profit, but it has downgraded to a £1.9m loss, compared with a £3.2m pre-tax profit in 2022. A return to profit is expected in 2024. The share price dipped 5.56% to 170p.

Anglo Asian Mining (LON: AAZ) produced 5,300 gold equivalent ounces in the third quarter, down from 14,300 ounces in the same period last year due to the suspending of flotation and agitation leaching operations. Full year production guidance is 30,000-34,000 ounces. Discussions continue for the restart of production at Gedabek. Net cash declined to $1.6m. The share price fell 3.88% to 49.5p.

FTSE 100 edges higher ahead of US earnings season

UK Investor Magazine
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FTSE 100 edges higher ahead of US earnings season

The FTSE 100 edged higher on Monday in tentative trade as investors awaited further geopolitical developments and geared up for the US earnings season.

The FTSE 100 was up 0.3% to 7,624 at the time of writing on Monday.

“A mute start to the week for European indices suggests a sense of nervousness, particularly as the US reporting season gets underway and investors worry about a cautious tone in corporate outlooks,” said Russ Mould, investment director at AJ Bell.

“The FTSE 100 was flat…with strength in retail and mining stocks offset by weakness in pharmaceuticals amid negative read-across from Pfizer’s weak update.”

Investors are preparing for earnings updates from US companies including Tesla, Netflix, Goldman Sachs and Morgan Stanley this week.

Geopolitical risks

Natural resources companies were among the FTSE 100 top gainers on Monday as the human tragedy in the Middle East supported commodity prices.

“As risk-off sentiment has been spreading, investors have been seeking more defensive positions amid fears of conflict escalating in the Middle East,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.

“Investors are braced for volatility ahead amid fears that Hezbollah militants could attack Israel over its operations in Gaza as forces ready for invasion.”

BP and Shell added a significant number of points to the FTSE 100.

St James’s Place was the top riser, up 3%, with a small bounce back from Friday’s crash.

Ocado shares were down 5.3% at the time of writing on Monday and were the biggest faller.

“Ocado fell after a broker downgrade on the stock, citing concerns about delays to rolling out new fulfilment centres and competition for warehouse automation systems intensifying,” said Mould.

North American promise for Tristel

Andrew Hore
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0
North American promise for Tristel

Disinfection products supplier Tristel (LON: TSTL) was more profitable than forecast and there is little contribution from North America yet.

NHS activity recovered so UK growth was fastest, but overseas sales were 17% ahead. In the year to June 2023, revenues were 16% higher at £36m, while adjusted pre-tax profit improved from £4.5m to £6.2m. Net cash was £9.5m at the end of June 2023. The dividend was raised by 10% to 10.5p/share.  

Tristel is still awaiting regulatory approvals for newer Cache hospital surface disinfection products, so most of the growth was in the hospital medical device decontamination division.

Manufacturing capacity has been validated in the US and sales have commenced for the products that have FDA approval. The initial focus in the US is the ultrasound probes market and further product approvals will expand the potential market into ophthalmic and ear, nose and throat devices.

Cavendish forecasts a 2023-24 pre-tax profit of £7.6m, and then £10m the following year. The share price rose 5.06% to 415p, which puts the shares on 30 times prospective earnings, falling to 25.

BP shares are a ‘hold’ offering little value above 550p

UK Investor Magazine
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BP shares are a ‘hold’ offering little value above 550p

Trading in close proximity to 52-week highs, the BP share price provides few attractions for new investors although current holders should be satisfied with the dividend yield.
BP shares have ticked higher in line with oil prices as a tragedy unfolds in the Middle East. There is a lack of enthusiasm for the move in BP shares and the company offers minimal value above 550p.
Tensions in the Middle East and oil prices have a predetermined playbook that sees oil prices rise before falling back. The recent move in BP almost feels as though it's being driven entirely by robots programmed to buy oil...

Are Bidstack shares a buy at current levels?

UK Investor Magazine
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Are Bidstack shares a buy at current levels?

Bidstack shares have been a disaster in 2023. The native in-game advertising technology company's shares are down 91% year-to-date.
A failed distribution agreement and slow uptake of their products saw revenue fall to £1.96m in the six months to June 2023.
This is hardly the growth rate expected of an up-and-coming technology company. Yet, with a market cap of just £3.3m, is the company now worth considering despite the setbacks and disappointing performance?
This is a high-risk share and presents a risk/reward profile reserved for adventurous investors.
The company has developed revolutionary...

Premier African Minerals investors await key production figures and lithium grades

UK Investor Magazine
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Premier African Minerals investors await key production figures and lithium grades

Premier African Minerals has been very quiet when it comes to the grades of lithium at their Zulu project in Zimbabwe. Under the terms of the offtake agreement with their Chinese partner Canmax, Premier African Minerals is required to supply lithium with a grade close to 6%.

Throughout the Canmax saga, attention was focused entirely on contract negotiations and whether Premier African Minerals would be forced to repay the prepayment amount.

Canmax proved to be supportive of Premier African Minerals and was forthcoming with renegotiating their offtake agreement. The terms, however, leave Premier African Minerals little room for error.

The company must achieve 1,000-tonne production per month by the end of November or face penalties including cash payments – and even the transfer of an interest in the Zulu project to Canmax.

While the focus has been on the production figures, we are yet to hear anything material on the grade of the offtake since operations recommenced at Zulu.

Earlier in 2023, Premier African Minerals said they were unable to produce the required lithium grades above 6% at Zulu without the use of reagents.

Premier must produce lithium with grades close to 6% under the terms of their offtake agreement. Failure to do so at the specified quantity will trigger penalties.

Grades can be released alongside shipment announcements and any upcoming announcement will be crucial for Premier African Minerals shares.

For example, Core Lithium announced its first lithium shipment from the Finnis project had a 5.6% grade shortly before the shipment was made in May this year. Core Lithium shares reacted positively in the immediate period.

Sayona Mining enjoyed a pop after announcing the production of 30,000 tonnes of saleable lithium concentrate at 5.5% before shipments commenced over the summer.

Premier African Minerals shares have been stuck in a tight range since the new agreement was inked with Canmax. The announcement of lithium grades will likely be a catalyst for PREM shares to break out of this range.

Expect a sharp decline in PREM shares if the Zulu grades are less than 5%. However, if this is the case, it is unlikely Premier African Minerals will reveal the exact grades.

Premier African Minerals shares are down 52% over the past six months.

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