AIM movers: Eckoh grows in North America and FireAngel delays

Andrew Hore
-
0
AIM movers: Eckoh grows in North America and FireAngel delays

Growth in North America helped payments security technology company Eckoh (LON: ECK) increase annualised recurring revenues in the region by one-third to $15.9m and group operating margins were higher than expected at 19.5%. There was cash of £5.7m at the end of March 2023. Full year pre-tax profit is estimated to be at least £7.6m and it could rise to £8.3m in 2023-24. The share price rose by one-fifth to 39p.

N4 Pharma (LON: N4P) has risen on news that in vitro studies indicate a similar inhibition of cell growth for either EGFR or BCL-2 loaded on the Nuvec delivery system to two commercial therapies. Further work will be carried out to assess the minimal loading of siRNA on Nuvec. The share price increased 13.2% to 2.15p.

Management process automation software provider ActiveOps (LON: AOM) made better gross margins on forecast revenues of £25m and a positive EBITDA in the year to March 2023. A £500,000 loss was forecast. There was £15.4m in cash at the year-end. The newly launched CaseWorkIQ software is starting to gain momentum. The full year figures will be published in July. The share price is 9.46% higher at 81p, but it is still not much higher than its low for 2023.

IT training provider Northcoders (LON: CODE) reported an 86% increase in revenues to £5.6m in 2022 and pre-tax profit jumped from £100,000 to £600,000. There was net cash of £1.7m at the end of 2022. Revenues of £6.1m are already in the order book for 2023 and the full year forecast is £9.5m. The pre-tax profit should double to £1.2m. The share price is 8.11% ahead at 320p.

Fire Angel Safety Technology (LON: FA.) has been hit by supply problems and that particularly hampered sales of higher margin products. A delayed contract has also held back progress. Costs have fallen but EBITDA will be below expectations in 2023. Price increases will help revenues from the second quarter onwards. Shore Capital has withdrawn its forecasts. The share price dived by 26.7% to 8.25p.

Strategic Minerals (LON: SML) revenues from magnetite sales in New Mexico fell from $663,000 to $415,000. There was cash of $281,000 at the end of March 2023. Jeffreys Henry has been replaced as auditor by Shipleys. Management is finding it difficult to fund the restart of production at the Leigh Creek copper mine. The share price slumped by one-fifth to 0.2p.

Translation services provider RWS (LON: RWS) grew interim revenues by 2.5% to £366.3m but underlying pre-tax profit will fall from £60.7m to £54m. Organic growth should accelerate in the second half, reflecting the additional investment in the first half that held back profit. Even so, full year profit is likely to be lower than expected. The share price declined 15.8% to 240.8p. Trading conditions were tougher for Focusrite (LON: TUNE) in the content creation market and that was only partly offset by a bounce back in the audio reproduction sector as live events returned to past levels. Group interim revenues fell from £92.9m to £86.2m, even after the inclusion of recent acquisitions. A fall in freight charges helped gross margin edge up to 47.1%. Even so, pre-tax profit fell from £16.3m to £10.9m. Net debt was £13.2m after the cost of acquisitions. The dividend was still raised from 1.85p a share to 2.1p a share. The share price fell 8.7% to 525p. That is the lowest level for three years.

Whitbread shares surge as profit surpasses pre-pandemic levels

UK Investor Magazine
-
0
Whitbread shares surge as profit surpasses pre-pandemic levels

Whitbread is an exemplary case of a company heavily hit by the pandemic bouncing back stronger and producing higher profits than before COVID.

Whitbread revenue for the 2023FY was £2,625m – a 27% increase on 2020.

Higher revenue generation drove surging profits as statutory profit after tax rose to £279m vs £218m in 2020.

The group continues to invest in new sites and is ramping up the number of rooms available to customers. Whitbread has a pipeline of 7,400 new rooms in the UK and 7,000 in Germany.

Although the vast majority of Whitbread’s profit was generated in the UK, the group saw strength in their German unit as revenue jumped to £118m in FY23. FY22 revenue was £35m.

Whitbread shares were 6% higher at the time of writing.

“There’s plenty of cheer in Whitbread’s results today. Revenue growth of over 50% has seen Whitbread surpass pre-pandemic levels at both the top and bottom line,” said Derren Nathan, Head of Equity Research at Hargreaves Lansdown.

“Its strong brand in UK midscale hotels sees it consistently outperform the wider market and hoover up market share, while still maintaining price discipline.  

“The Food & Beverage performance was a drag on last year’s numbers but recent initiatives seem to have sewn the seeds of a recovery. Despite inflationary pressures across the cost base and growth in the estate, margins in the UK hotels division were well ahead of last year and only slightly below those seen in 2020. Whitbread has got off to a strong start in the current year and its confidence is reflected in the increase in pay outs to shareholders.”

Whitbread will increase its final dividend by 43% to 49.8p.

AIM reversal: Drumz completes transition into Acuity RM

Andrew Hore
-
6
AIM reversal: Drumz completes transition into Acuity RM

Acuity RM has been formed by the reversal of Acuity Risk Management into AIM shell Drumz, which has been seeking a deal for years. This is a governance risk and compliance software and services provider.
There is a large potential market and Acuity RM is barely scratching the surface at the moment. Monthly recurring revenues are £140,000 and renewal rates are 96%. There are large competitors, but they tend to focus on larger customers.
Drumz ended the last day prior to the completion of the reversal at 0.575p (0.5p/0.65p). That is also before the 2,000-for-one share consolidation and subsequen...

New Aquis admission: Vinanz Ltd

Andrew Hore
-
0
New Aquis admission: Vinanz Ltd

Fellow Aquis company Valereum (LON: VLRM) sold Bitcoin mining assets to Aquis new entrant Vinanz in return for a 23.5% stake. This provides the basis of the Bitcoin mining operations. The company will also consider mining other cryptocurrencies.
The Vinanz share price opened at 3.5p (3.25p/3.75p) and has remained at that level. There was one trade of 30,000 shares at 3.26p a share on the first day of trading. The next day there were two trades of 30,000 shares at 3.18p each and 103,176 shares at 3.15p each.
The Aquis quotation will increase the company’s profile and provide a way of funding ac...

Tekcapital shares 55% undervalued compared to NAV – SP Angel

UK Investor Magazine
-
2
Tekcapital shares 55% undervalued compared to NAV – SP Angel

Following an exciting week of portfolio company updates last week, analysts at SP Angel say Tekcapital’s shares are 55% undervalued compared to their portfolio’s NAV.

SP Angel highlights market conditions and the impact on Tekcapital’s listed portfolio holdings, Innovative Eyewear and Belluscura. Considering the impact of market volatility on Tekcapital’s NAV, SP Angel has worked YTD VWAP prices into Innovative Eyewear and Belluscura NAV and says, “we could expect additional upside in the future.”

Privately held portfolio companies MicroSalt and Guident are valued on third-party valuations and recent funding from Tekcapital.

SP Angel calculates Tekcapital’s NAV to be 31.7p per share, including the recent £2m placing.

SP Angel analysts wrote in a note:

“TEK’s current share price is 15.45p, translating to a market cap of ~£25.5m, ~55% lower than the baseline NAV calculated above. We would also suggest that the current value potential of these portfolio companies, given the additional investment since the last third-party NAV valuation, has increased significantly.”

Tekcapital is set to report full-year results in May.

FTSE 100 flat ahead of a busy week of earnings

UK Investor Magazine
-
1
FTSE 100 flat ahead of a busy week of earnings

The FTSE 100 was broadly flat on Monday as investors prepared for the UK and US earnings seasons to ramp up in the coming days.

The FTSE 100 was trading down by just 2 points at 7,911 at the time of writing.

Analysts suggested today’s slow trade should be enjoyed as several risks persist that have the potential to spark volatility in stocks.

“All said and done, the global macro backdrop remains considerably more uncertain than normal and the tranquillity in equity markets should be enjoyed while it lasts,” said Rupert Thompson, Chief Economist at Kingswood

The first potential market-moving consideration is the increased flow of Q1 UK company trading and earnings updates.

FTSE 100 earnings highlights this week include Associated British Food, Whitbread, Reckitt Benckiser, Unilever, Barclays, Standard Chartered, and NatWest.

Barclays, Standard Chartered and NatWest results will be poured over for any signs of stress from the mini-banking crisis saga.

Major US tech companies will also report earnings this week, with Microsoft, Meta and Amazon set to release Q1 earnings.

“In the US, all eyes are on the big tech names which report earnings throughout the week. Tuesday sees Microsoft, Alphabet and Visa report numbers, with Meta Platforms on Wednesday, and Amazon and Mastercard on Thursday,” said Russ Mould, investment director at AJ Bell.

“Cost-cutting has been a key driver for many of their share prices in recent months, yet investors will want to know that underlying business is still healthy otherwise the recent rally in US tech names could grind to a halt.”

From an economic perspective, the first quarter was not as soft as initially thought, and this may support earnings and provide upside surprises. A number of companies have already warned profits would fall.

US GDP and the Fed

In addition to UK company earnings, markets will digest economic data points ahead of key central bank meetings in the coming weeks.

“In the US Q1 GDP, the employment cost index, core PCE, and consumer confidence are the highlights with us now in the Fed blackout period ahead of next week’s FOMC,” wrote Deutsche Bank Strategist Jim Reid.

“Meanwhile, we will see inflation and growth data in the Eurozone, and the BoJ’s decision in Japan on Friday.”

FTSE 100 risers

UK retail stocks were among the top performers, with JD Sports out in front, gaining 2% and Burberry adding 1.5%. Next was up 1.4%.

abrdn was 1.3% higher as the investment manager bounced off strong support just beneath 200p.

FTSE 100 fallers

Melrose was the top faller – down 3% – after completing the demerger of Dowlais Group last week. Fresnillo was 2% weaker, tracking the downside in gold and silver prices.

Thirty-nine of the FTSE 100’s constituents were down on Monday, with all but four down less than 1%.

AIM movers: Smoove bid approach and iEnergizer continues to fall ahead of cancelation

Andrew Hore
-
0
AIM movers: Smoove bid approach and iEnergizer continues to fall ahead of cancelation

Smoove (LON: SMV) says it is in bid discussions with PEXA Group. These are at an early stage but could lead to a cash bid for the online residential property services provider. Australia-based PEXA Group offers online property services through the Property Now content hub that are similar to those offered by Smoove. There is no indication of bid price, but the shares jumped 44.2% to 46p.

Cleaning services provider React (LON: REAT) says interim revenues improved from £5.1m to £9.3m, while EBITDA soared from £133,000 to £925,000. That is a combination of the acquisition of LaddersFree and organic growth. This underpins the expectation of trebled full year pre-tax profit of £2.1m. The share price rose 6.52% to 1.225p, which is eight times prospective earnings.

Cancer diagnostics company Angle (LON: AGL) shares continue to rise following last Friday’s 2022 results announcement. The price is 9.9% ahead at 27.75p, which is 56% higher than one week ago. There is enough cash to fund the business until the second half of 2024 as Angle seeks to take advantage of the FDA approval of its Parsortix device.

Frasers Group (LON: FRAS) has increased its direct stake in N Brown Group (LON: BWNG) from 12.6% to 17.6%. Previously there was a contract for difference which meant that the total stake was 17.9%. The N Brown share price improved 5.26% to 28p.

Shares in business process outsourcing firm iEnergizer (LON: IBPO) continue to fall ahead of plans to cancel the AIM quotation on 26 May. As EICR (Cyprus) owns 82.7% the shareholder vote is a formality. The lack of free float has hampered liquidity and the costs of the quotation outweigh any benefits. There was a further 51.5% decline to 32.95p.

Technology investment company Asimilar (LON: ASLR) is also leaving AIM and trading in the shares has recommenced following the publication of the latest accounts. The share price fell by one-third to 1.25p. At the end of September 2022, net assets were 5.53p a share. A general meeting will be held on 18 May and the cancelation should happen on 26 May. Asimilar will retain its Aquis quotation.

Cleantech Lithium (LON: CTL) has been hit by uncertainty relating to Chile’s National Lithium Strategy. Cleantech Lithium says that it has been reassured that its lithium assets will not require majority state participation because they are smaller scale. The share price is 15.5% lower at 41p. This is the lowest level since January.

Touchstone Exploration (LON: TXP) has confirmed that there is light crude oil present in the Royston-1X production test but failed to flow oil to surface. This suggests it is a low permeability reservoir. Four more zones will be tested. The share price declined 9.92% to 59p.

FTSE 100 bank earnings preview Q1 2023

UK Investor Magazine
-
0
FTSE 100 bank earnings preview Q1 2023

What to look out for from upcoming Q1 2023 FTSE 100’s banks updates.

The FTSE 100’s banks are set to report Q1 2023 results in the coming days and weeks, with Standard Chartered kicking off on Wednesday.

FTSE 100 bank reporting dates:

  • Standard Chartered (LON:STAN) – Wednesday 26th April
  • Barclays (LON:BARC) – Thursday 27th April
  • Natwest (LON:NWG) – Friday 28th April
  • HSBC (LON:HSBA) – Tuesday 2nd May
  • Lloyds (LON:LLOY) – Wednesday 3rd May

What to watch out for

Deposit inflows/outflows

Q1 banking earnings and commentary will be primarily dominated by the mini-crisis that started in the US with SVB and culminated with UBS’s takeover of Credit Suisse.

The inflows or outflows of deposits will gauge confidence in each UK bank during this period. As panic swept through the banking system over three weeks in March, depositors rushed to move their cash into institutions deemed ‘safer’ than others caught up in the crisis.

The impact on UK bank deposits isn’t expected to be as pronounced as for US and European banks, but any changes in deposits will be a fascinating insight into the perception of each institution.

The FTSE 100 banks are broadly considered high-quality institutions and outflows will be minimal. Indeed, the five FTSE 100 banks mentioned are more likely to have received inflows.

Net interest margin

A key profitability metric, net interest margin (NIM) for the period will dictate banks’ financial performance. Comparisons to the same period a year ago will show dramatically higher NIMs after a series of rate hikes throughout 2022. The Bank of England and the Federal Reserve both hiked rates in Q1, so one would expect an increase in Q1 2023 NIMs compared to Q4 2022.

Any comments on the outlook for NIM will be closely watched after many UK banks said they saw limited improvement in NIM for the 2023 full year compared to the last half of 2022.

Profits for

Bad debt provisions

The outlook for the global economy saw provisions for bad debts increase in the last round of quarterly updates from UK banks. There is an expectation these provisions will be maintained, or even increased.

Provisions will impact profit before tax, and if banks decide to bolster provisions, the benefits of higher NIM could be offset.

There has been a mild improvement in the economic outlook globally so any fresh provisions shouldn’t be overly dramatic.

A consensus of analyst estimates sees Barclays setting aside £563m and NatWest £250m.

Investment banking activity

Investment banking activity considerations are really only reserved for Standard Chartered, HSBC and Barclays, with limited or no contribution to earnings at NatWest or Lloyds.

The poor state of financial markets in Q1 led to a depressed environment for corporate activity, which would have made advisory fees hard to come by.

Equity and fixed-income activities are also likely to be lower than in the same period last year.

Aquis weekly movers: Chris Akers increases stake in Semper Fortis Esports

Andrew Hore
-
4
Aquis weekly movers: Chris Akers increases stake in Semper Fortis Esports

Chris Akers has raised his stake in Semper Fortis Esports (LON: SEMP) from 4.57% to 19.5%. The share price jumped by one-fifth to 0.15p. The April 2021 floatation price was 1p.

Equipmake Holdings (LON: EQIP) has agreed a partnership with H55 to develop electric aircraft technology. Switzerland-based H55 will use the company’s electric motors in its two-seater electric trainer for pilot training.

Hadron Capital, which was founded by Fenikso (LON: FNK) non-exec director Marco D’Attanasio, has acquired 1.2 million shares at 0.6p each in Fenikso. The share price is 8.33% higher at 0.65p.

Valereum (LON: VLRM) has sold Bitcoin mining assets to Aquis new entrant Vinanz (LON: BTC) in return for 27.3 million shares at 3p each. The Valereum share price rose 5.71% to 5.55p. The Vinanz share price ended the week at 3.5p.

Chapel Down Group (LON: CDGP) finance director Rob Smith bought 407,462 shares at an average price of 34.7p, taking his stake to two million shares. The share price is 2.94% higher at 35p.

==========

Fallers

Goodbody Health Inc (LON: GDBY) has decided to leave Aquis and the share price slumped 44.6% to 0.9p. It also reported a fall in revenues from £17.1m to £10m and an increased loss of £4.9m.

Coinsilium Group (LON: COIN) has raised £258,000 at 1.5p a share, with warrants attached that have an exercise price of 3p. The market price fell 9.68% to 1.4p.

Tap Global Group (LON: TAP) has increased revenues and users since reversing into an Aquis shell earlier this year. First quarter revenues were £1.2m, compared with £250,000 in the corresponding period last year. The regulated cryptocurrency app company increased users by 30% to 144,305. The share price slipped 4.55% to 3.15p. That is lower than the market price prior to the reversal.

Arbuthnot Banking (LON: ARBB) announced a £12m share issue at 925p a share at the end of the previous week. The share price subsequently fell 3.63% to 930p.

AIM movers: Advanced Oncotherapy seeks Nasdaq reversal

Andrew Hore
-
5
AIM movers: Advanced Oncotherapy seeks Nasdaq reversal

Proton therapy cancer treatment developer Advanced Oncotherapy (LON: AVO) announced a strategic review. The share price recovered 66.7% to 4.375p – after being around its all-time low. A Nasdaq listing is being considered, which could involve selling the business to an existing Nasdaq company. There are no current discussions and cash is running out. Management hopes to obtain additional working capital by issuing more loan notes. That could extend the company’s cash until the end of May.

Kromek (LON: KMK) has secured an initial seven-year agreement with a manufacturer to develop CZT-based detectors for advanced medical imaging scanners. There will be a short development phase before commercial supply commences. A separate development collaboration with Analogic Corp covers medical imaging and security. Kromek also says its gross margins are improving as third quarter revenues increase and the mix of business changes. The share price increased 54.6% to 8.35p.

Supercapacitors manufacturer CAP-XX Ltd (LON: CPX) has completed the quality audit to supply German automotive components manufacturer Continental Automotive. The supply agreement starts in 2024 and lasts until 2030.  The shares are 46.1% higher at 2.775p.

Intelligent Ultrasound (LON: IUG) shares jumped 44.1% to 10.45p, although that is low the high of 11.1p earlier in the week. Results were in line with expectations, but AI revenues are set to multiply. Intelligent Ultrasound could move into profit in 2024.  

==========

Fallers

Business process outsourcing firm iEnergizer (LON: IBPO) plans to cancel is AIM quotation and a general meeting will be held on 16 May to gain shareholder approval. As EICR (Cyprus) owns 82.7% that is a formality. The lack of free float has hampered liquidity and the costs of the quotation outweigh any benefits. Management expects to leave AIM on 26 May. There are plans for a matched bargain facility. It appears that many smaller shareholders are selling – sometimes just one or two shares – and the share price has plunged 78.7% to 68p.

Woodbois (LON: WBI) slid 64.7% to 0.38p following news that the lender to its Denmark-based Woodgroup timber trading subsidiary has given notice on a $6m lending facility. The facility provided by Sydbank is fully drawn, but there is also $3.1m in cash deposits with Sydbank, which wants a refinance plan by the end of May. Premier Miton subsequently sold its 9.96% stake.

Environmental and life sciences technology company DeepVerge (LON: DVRG) says that revenues have been incorrectly recognised. That means that the 2022 figure will be 45%-50% lower than the £17.2m previously flagged. Some of the expected revenues have been delayed while others will not be recognised. The order book is more than £10m and this will be recognised in 2023 and 2024. There is £1m in the bank and more funding will be required. The share price dived 60.3% to 0.575p, which is a new low.

Echo Energy (LON: ECHO) reported lower gas production in the first quarter of 2023 due to maintenance. Net liquids production and sales was also lower because fuel oil stocks were high in Argentina. This has led to a reduction in cash, and it will be difficult to raise cash from a share issue. The share price slumped 56% to 0.0286p.

1...472473474...1,761Page 473 of 1,761