Aquis weekly movers: Coinsilium share price recovery

Andrew Hore
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Aquis weekly movers: Coinsilium share price recovery

Coinsilium Group Ltd (LON: COIN) reported a reduction in revenues from £530,000 to £212,000 in 2012. The impairment charge increased from £148,000 to £273,000, but there was no loss on financial assets, compared to a £407,000 loss in 2021. There was a swing from a realised profit on assets of £1.52m to a loss of £1.29m. The reported loss was £2.06m, compared to a profit of £14,000. Net cash outflow from operations increased from £602,000 to £789,000. NAV is £3.94m, including cash of £668,000. Digital asset markets have recovered since the beginning of the year. The share price recovered 43.5% to 1.65p. That is the highest it has been since March.

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Fallers

The latest medicinal cannabis research roundup from Ananda Developments (LON: ANA) highlights that CBD can be beneficial for behavioural symptoms of dementia. The level of behavioural disturbance fell from an average of 60 to 15 over a six-month trial period. There is also a study showing that cannabis-based medicinal products improve the quality of life scores for Fibromyalgia. The share price declined 16.2% to 0.44p.

Barry Hersh cut his stake in Global Connectivity (LON: GCON) from 8.95% to 7.96%. The share price is 14.3% lower at 1.35p.

EDX Medical Group (LON: EDX) has appointed Oberon Capital as corporate adviser and broker. The diagnostic products developer also appointed Dr Keti Zeka as head of R&D and director of laboratories and Dr Liam Dower as head of quality, regulatory affairs and compliance. The share price fell 13.3% to 3.25p.

Pubs operator Daniel Thwaites (LON: THW) had a tougher second half and Christmas trading was poor. In the year to March 2023, revenues improved from £96m to £108.8m, while pre-tax profit rose from £12.7m to £15.1m, mainly due to a higher gain on interest rate swaps. Operating profit before property disposals was lower, although that is predominantly because of the lack of government assistance in the most recent year. NAV is £242m, including a pension asset of £32.2m due to higher interest rates, while net debt is £66.7m. The final dividend was raised from 2.2p/share to 2.4p/share. At 93.5p, the share price fell 2.6%, and that values Daniel Thwaites at £55m.

Ukraine’s counteroffensive: it will be arduous and major results yet to come

Valérie Proschenko
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Ukraine’s counteroffensive: it will be arduous and major results yet to come

KYIV, Ukraine – Ukraine’s widely anticipated counteroffensive has probably begun. Ukrainian forces have stepped up activities along the frontline in Zaporizhzhia region in south of country. And at the same time, Ukraine is conducting offensive and defensive actions in the east.

According to the information from the Ministry of Defence of Ukraine on June 12, in the Donetsk and Tavriia operational areas, the Ukrainian Armed Forces have liberated seven settlements over the week: Lobkove, Levadne, Novodarivka, Neskuchne, Storozheve, Makarivka, Blahodatne.

https://twitter.com/NOELreports/status/1668173843989446656
https://twitter.com/DefenceU/status/1670145056014049286

It is worth noting that the village of Novodarivka in Zaporizhzhia region is situated on the right flank of the so-called the Vremivsky ledge, Blahodatne, Neskuchne, Storozheve, Makarivka are on the left flank of the ledge in Donetsk region.

https://twitter.com/bayraktar_1love/status/1667919144535171072

On June 19, the Ministry of Defence of Ukraine announced the de-occupation of Piatykhatky in the Zaporizhzhia region. As of now, the units on the Tavriia front had advanced into the depths of the Russian forces by up to 7 kilometers, and the liberated area in the south is 113 square kilometers. Ukraine thus confirmed the liberation of 8 settlements over the past two weeks.

https://twitter.com/Deepstate_UA/status/1670750349479534593
https://twitter.com/StratCom_AFU/status/1670757112887103488

Furthermore, Ukrainian military officials and international analysts claim some ‘successes’ in Bakhmut direction, a major hotspot for the last 10 months. Commander of the Ground Forces of the Armed Forces of Ukraine (AFU) Oleksandr Syrsky said that the enemy continues to move some of the most combat-capable units to the Bakhmut direction, combining these actions with powerful artillery fire and strikes by assault and army aircraft on the positions of Ukrainian troops.

The UK Defence Intelligence also states that “Russia has highly likely started relocating elements of its Dnipro Group of Forces (DGF) from the eastern bank of the Dnipro River to reinforce the Zaporizhzhia and Bakhmut sectors”.

The last update of DeepStateMap.Live (open-source intelligence online map) shows that Ukrainian forces made some advances north west of Klishchiivka and in the area of Orichovo-Vasylivka.

https://twitter.com/visegrad24/status/1670720494130155522

And yet the enemy continues to focus its main efforts on the Lymansk, Avdiivka, Maryinka directions alongside Bakhmut. According to Hanna Maliar, Deputy Minister of Defense of Ukraine, Russians are launching an active attack on the Lymansk and Kupyansk front, trying to get the initiative.

“The Russians have not given up their plans to advance up to the administrative borders of Donetsk and Luhansk region – at the moment this is the main direction of the Russian offensive”, Maliar said.

Despite the progress, the Ukrainian forces have to break through an elaborate network of Russian fortifications running hundreds of miles across the country, The Telegraph reported. As UK intelligence have claimed, since summer 2022 “Russia has constructed some of the most extensive systems of military defensive works seen anywhere in the world for many decades”. Moreover, Ukrainians face huge minefields and ongoing artillery work, thereby there will be no rapid but meticulous and careful liberation of territories. And there is still a big threat because Europe’s largest nuclear power plant (Zaporizhzhia NPP) is in an area controlled by Russian forces.

US Secretary of Defence Lloyd Austin considers that “Ukraine stands well-positioned for the challenges ahead” and called the Ukrainians’ fight a “marathon and not a sprint”. There is no doubt that the counteroffensive is going to be tough, bloody and exhausting but even at an early stage Ukraine has not lost any position.

As commander-in-Chief of the Armed Forces of Ukraine Valerii Zaluzhniy has assured recently that “the operation continues according to the plan”. And his words inspire confidence since ‘Iron General‘ has never let Ukrainians down before

AIM weekly movers: Strip Tinning share buying

Andrew Hore
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AIM weekly movers: Strip Tinning share buying

Share buying by the wife of chief executive Richard Barton made flexible automotive connectors supplier Strip Tinning (LON: STG) the highest riser on the week with a 60% gain to 60p. She bought 15,000 shares at 70p each, taking the couple’s combined stake to 55.2%. This follows director share buying in the previous week at 39p/share.  Strip Tinning is expected to reduce its loss this year.

Quadrise (LON: QED) says that parts and spares have been delivered to Morocco and it is ready to recommence the demonstration test that was paused in May. The share price increased 38.2% to 2.145p.

Offshore services provider Tekmar Group (LON: TGP) increased interim revenues by 36% to £17.7m and the loss was reduced. Management believes the company can reach EBITDA breakeven for the full year. That is based on forecast revenues of £40m, which is 90% covered by existing revenues and orders. The share price is 28.4% ahead at 11.875p.  

Avacta Group (LON: AVCT) says that following the fifth dose escalation cohort in a phase I clinical study of AVA6000 for tumour targeted chemotherapy. There has been a marked reduction in frequency and severity of toxicities associated with doxorubicin chemotherapy. The sixth dose will be increased as Avacta tries to identify the maximum tolerated dose. The share price improved 23.2% to 122p.

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Fallers

Allergy Therapeutics (LON: AGY) has returned from suspension following the publication of full year accounts and the subsequent interim results. The interim revenues declined by 18% to £39.9m and there was a swing from operating profit of £7.4m to a loss of £8m. Net cash was £13.2m at the end of 2022. Additional cash will be required by September. The share price slumped 83.2% to 1.05p. The most recent fundraising was at 1p.

Battery technology developer AMTE Power (LON: AMTE) is one of the poorer performers for the second week running. The company requires a financing within three weeks. The cash will provide more time for the company, but it needs significant funds to finance the building of a battery plant.  It is not certain that enough money can be raised and that means that shareholders may end up with nothing. The share price slumped 73.2% in the previous week. The latest decline is 49.9% to 6.64p. The March 2021 placing price was 175p.

Capital Metals (LON: CMET) raised £500,000 at 1p/share and following this announcement the chief executive Michael Frayne stepped down. A further £250,000 will be raised. The market price slumped 48.9% to 1.15p. The cash is required for working capital while Capital Metals attempts to end the suspension of its mineral sands licences in Sri Lanka. A general meeting is being held on 12 July to gain authority to issue the new shares.

Costs at in-video advertising company Bidstack (LON: BIDS) doubled to £5.3m in 2022, but the loss still increased from £7.96m to £8.77m. There was £8.7m in cash at the end of 2022, similar to the cash outflow from operations last year. The dispute with Azerion, which terminated its reseller contract, continues. The share price dived 47.1% to 0.925p.

Non-Standard Finance shareholders set to get nothing

Andrew Hore
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Non-Standard Finance shareholders set to get nothing

Non-Standard Finance (LON: NSF) says the proposed scheme of arrangement has been approved and the company will leave the standard list. The share price slumped 38.2% to 0.1081p and it has fallen by 78% so far this year. There appears no likelihood of shareholders getting anything if the company is wound up.

The scheme of arrangement makes £14m available to satisfy claims by borrowers about loans made by Everyday Loans prior to 31 March 2021, as well as fees owed to the Financial Ombudsman Service arising from complaints.

There was a proposed recapitalisation, but major shareholder Alchemy did not want to back a fundraising. Instead, the business will be transferred to secured lenders.

Everyday Loans was acquired for £235m in December 2015, having earlier that year acquired S&U’s home credit division for £82.5m. Non-Standard Finance joined the standard list on 19 February 2015 when it raised £102m at 100p/share. One of its backers was Woodford Investment Management. At the end of 2015, £160m was raised at 85p/share.

FTSE 100 falls as housebuilders downgraded

UK Investor Magazine
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FTSE 100 falls as housebuilders downgraded

The FTSE 100 showed signs of a hangover from yesterday’s surprise 0.5% rate hike on Friday, led lower by housebuilders and Ocado.

The Bank of England’s decision to hike rates by 0.5% will have implications for the FTSE 100’s UK-focused contingent, who were trading down heavily again on Friday.

“Yesterday’s super-hike to UK interest rates, and the fact there’s likely more to come, continue to play on investors’ minds as they weigh up the impact on corporate earnings,” said Matt Britzman, equity analyst at Hargreaves Lansdown.

HSBC equity analysts took an axe to their housebuilder ratings on Friday, cutting Taylor Wimpey, Barrat Developments and Persimmon to a hold. Berekely Group was cut to reduce.

Housebuilders were among the worst performers, with Persimmon shares crumbling over 3%.

GSK was the FTSE 100 top riser after announcing the settlement of a Zantac court case in the US. GSK shares were over 5% higher.

US Tech shares

Even a strong showing from US tech names overnight failed to ignite enthusiasm in UK shares on Friday. Yesterday, Fed chair Jerome Powell provided reassuring tones to the market, saying future US rate hikes would be more considered and hinted there may not be too many more this year.

“Federal Reserve chairman Jerome Powell gave the market the message it wanted to hear – while US rates have not hit the top of the current cycle, the central bank will proceed with caution. That was enough to convince investors to keep bidding up shares in the mega cap tech names, which in turn gave a near 1% lift to the Nasdaq last night,” said Danni Hewson, head of financial analysis at AJ Bell.

Ocado

Ocado shares were the FTSE 100’s top faller after soaring on takeover speculation yesterday. The Times yesterday reported Amazon could be considering an 800p per share offer for Ocado, sending shares in food retailer and technology company over 30% higher.

The absence of any announcement today from either party saw Ocado shares down over 8% at the time of writing.

Two UK-centric shares to buy on weakness

UK Investor Magazine
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Two UK-centric shares to buy on weakness

The economic outlook for the rest of 2023 is increasingly pessimistic. Mortgage costs are set to rise further and dent sentiment.
The Bank of England has hiked rates to 5%, and inflation is killing discretionary spending. All we need is a deterioration in the jobs market, and the UK is in a recession.
This, however, should be seen as an opportunity for long-term investors. The possible downside in equities will present prices only available every few years. These two companies have consistently bounced back from sell-offs and provided investors with handsome returns.
We look at two FTSE 100 ...

Ocado takeover: Davy Research ‘sceptical that a deal will happen now’

UK Investor Magazine
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Ocado takeover: Davy Research ‘sceptical that a deal will happen now’

Ocado shares soared yesterday after reports by the Times suggested Amazon could be lining up a bid for the embattled food retailer and technology company.

An approach from Amazon would make sense as Ocado’s technology would bolster its distribution efficiencies as it ramps up grocery deliveries. Amazon is reportedly considering an 800p per share offer with Goldman Sachs and JP Morgan working on the deal.

Ocado’s tech solution business is expected to achieve 25% market penetration, and its warehouses provide attractive returns.

However, in the absence of any announcement from Ocado and Reuters reporting Amazon declined their approach for comment, the headlines yesterday may be no more than speculation.

Davy Research analyst James Musker has noted the conditions in which other UK tech companies have been acquired this year, and the difference with Ocado’s current situation.

Made.com, InTheStyle and Purplebricks were all acquired when they had run out of cash and were nearing administration.

Ocado will need cash to scale its solutions business, but Musker highlights the crunch point will not be reached until 2025. Musker suggests Ocado could indeed raise further funds without a buyer stepping in.

Amazon or any other acquirer may wait for Ocado to become cash-strapped and secure a better valuation.

For this reason, Davy Research says they are “sceptical that a deal will happen now.”

After a 30% rally yesterday, Ocado shares were down around 8% at the time of writing on Friday.

AIM movers: Pelatro contract success and weak advertising at Audioboom

Andrew Hore
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0
AIM movers: Pelatro contract success and weak advertising at Audioboom

Pelatro (LON: PTRO) says in its AGM statement that it has won new customers taking its annual recurring revenues to more than $7m, plus additional revenues of $1.7m from existing customers for this year. There is a pipeline worth $23m, including $5m for non-telecoms companies. The share price recovered 9.68% to 8.5p.

Telecoms components and systems supplier Filtronic (LON: FTC) says the low earth orbit contract won earlier this year has exceeded expectations and prospects for further contracts are positive. There are also prospects in the 5G market. Development contracts have been won for electronic warfare projects. Supply chain constraints are easing. The results for the year to May 2023 will be published on 1 August. The share price improved 5.36% to 14.75p.

Yesterday, Chamberlin (LON: CMH) revealed it has secured a €7.3m contract with a European automotive industry components supplier. This involves supplying turbocharger castings over eight years. Tooling starts next month and full production in July 2024. The share price rose 1.59% to 3.2p.

Mineral and Financial Investments Ltd (LON: MAFL) has agreed an extension to the delivery date of the feasibility study on the Lagoa Salgada project with its joint venture partner Ascendant Resources. In return Mineral and Financial Investments will receive 500,000 warrants from Ascendant Resources, exercisable at $0.20/share. The final delivery date is 3 August. The share price is 2.86% higher at 18p.

Podcast platform operator Audioboom (LON: BOOM) has been hit by poor advertising markets and it will not meet 2023 expectations. There were record monthly downloads in May. finnCap has suspended forecasts and is waiting for the interim results. The share price slumped 26.6% to 207.5p.

Following today’s trading statement by Hotel Chocolat (LON: HOTC), Liberum has downgraded its forecast for 2022-23 and it expects a £1.5m loss rather than a £800,000 profit. The 2023-24 pre-tax profit forecast has been slashed from £20.3m to £6m. This follows weaker fourth quarter trading and problems with the availability of Easter ranges. Inflation will hit future profitability. Guidance by the management is becoming more prudent. The share price is 12.2% lower at 121.5p.

Maritime surveillance systems supplier SRT Marine Systems (LON: SRT) is raising £3.2m through a placing at 50p and could raise up to £750,000 from a PrimaryBid offer. The share price fell 11.2% to 51.5p. The cash is required to fund growth. Revenues are expected to more than double to £70.9m and SRT is expected to move back into profit – £7.3m pre-tax profit is forecast.

Investment company RiverFort Global Opportunities (LON: RGO) made a loss in 2022 because of a reduction in the fair value of investments of £1.8m. The final dividend is maintained at 0.038p a share, which is more than covered by investment income. NAV fell by 10% to £10.6m (1.35p/share). The share price is 7.41% lower at 0.625p.

GSK shares rise after reaching Zantac settlement

UK Investor Magazine
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GSK shares rise after reaching Zantac settlement

GSK shares rose on Friday after announcing a settlement with James Goetz, who alleged Zantac caused cancer.

James Goetz filed a case with California state court claiming that using GSK’s Zantac heartburn medicine had resulted in cancer.

GSK and previous owners of Zantac have been gearing up for a series of court cases because the medicine contains NDMA, which is known to cause cancer when too much enters the body. Humans regularly consume NDMA in small amounts.

The case would have been potentially damaging for GSK, who said:

“The settlement reflects the Company’s desire to avoid distraction related to protracted litigation in this case.”

GSK shares were over 5% higher at the time of writing.

Sterling whipsaws and FTSE 100 falls as Bank of England makes surprise 0.5% rate hike

UK Investor Magazine
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Sterling whipsaws and FTSE 100 falls as Bank of England makes surprise 0.5% rate hike

The Bank of England has voted to make a surprise 0.5% increase in benchmark interest rates to 5%. Consensus estimates were for a 0.25% rate hike.

The Bank of England voted 7-2 in favour of a 50bps rate hike citing concerns about stubbornly high levels of inflation.

“With inflation holding firm at 8.7%, the Bank of England had little choice but to press ahead with another interest rate rise,” said Rachel Winter, Partner at Killik & Co.

“This decision will lead to more pain for those on variable rate mortgages or with fixed deals about to expire, and disappointment for those hoping to borrow to buy a new property. Shares in housebuilders sagged on Wednesday as investors feared that further interest rate rises would reduce demand for homes.”

Some economists now predict the impact of higher mortgage rates and other borrowing costs will push the UK into recession.

In the immediate market, the FTSE 100 fell towards session lows and GBP/USD whipsawed as traders weighed the consequences for the UK economy.

FTSE 100 movers

Ocado was the standout performer on Thursday after The Times reported Amazon could be lining up a bid for the premium food retailer. Ocado shares were over 30% higher at the time of writing.

Concerns about the implications for the UK economy battered the FTSE 100’s domestically facing sectors.

Housebuilders were down heavily, as were the UK banks. Persimmon was off around 3% while NatWest, Lloyds and Barclays fell between 1%-3%.

A plethora of FTSE 350 traded ex-dividend and Airtel Africa was the FTSE 100’s biggest faller, down 6%, as the stock traded without the rights to a 3.27 cents dividend.

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