Juices maker Essentially Group has floated so that it can use shares to make acquisitions and investments and potentially raise further cash to finance growth. Capital investment and greater scale will improve margins.
The manufacturing facility is in Dubai, and another is planned for Saudi Arabia. Management believes that the high levels of overweightness in the Middle East will lead to a move to more healthy eating. There are also taxes on sugar-based drinks.
The current share price is 52.5p (50p/55p). There do not appear to have been any trades.
It is difficult to work out why this company ...
Marula Mining (LON: MARU) has appointed additional advisers for the proposed move to AIM. This includes MSA Group as technical consultant and it will complete a competent persons report on the portfolio of battery metals projects in Africa. The share price jumped 16.4% to 8.875p.
Fuel additives company SulNOx Group (LON: SNOX) chief executive Ben Richardson is stepping down from the board. He is staying with the business and will focus on sales and business development. The share price is 8.7% higher at 5p, which represents a recovery from its recent low.
SuperSeed Capital Ltd (LON: WWW) managing director Mads Jensen acquired 14,491 shares at an average price of 82p. The share price rose 2.94% to 87.5p.
Selling of Quantum Exponential Group (LON: QBIT) shares late in the week led to a share price fall of 25.5p to 1.75p. That is still above the all-time low. Management confirmed that it is still trying to set up a private limited partnership and raise £100m.
NFT Investment (LON: NFT) plans to return cash to shareholders, but not until the Bitcoin halving that is likely to take place in April 2024. Every four years the rate of Bitcoin creation halves and that tends to spark an increase in the price. This cash return would be via a tender offer to help to reduce the discount to NAV. The liquid crypto portfolio is currently worth 2.87p a share and NAV is 3.61p a share. Quarterly updates on holdings are promised. After last week’s rise, the share price has fallen back 13.8% to 1.4p.
Mike Cuthbert has been appointed chairman of Oberon Investments (LON: OBE), having previously worked at Zeus and Canaccord Genuity. Former Sanlam chief investment officer Phil Smeaton has been appointed head of investments. The share price declined by 13.3% to 3.25p.
Crypto app company Tap Global Group (LON: TAP) says registered users were near to 140,000 by the end of February and revenues are growing. The share price slipped 11.4% to 3.9p.
Adverse economic conditions meant that the NAV of EPE Special Opportunities (LON: EO.P) fell from 456p a share to 328p a share in the 12 months to January 2023. This included £24.5m in cash after share buy backs. There are loan notes of £4m and £20.7m in zero dividend preference shares. New investments are being reviewed. The share price fell 5.56% to 170p.
Brewer Shepherd Neame (LON: SHEP) reported a 8% increase in interim revenue to £85.3m. Pre-tax profit recovered from £3m to £3.5m despite inflationary pressures. The interim dividend has been raised by 14% to 4p a share. Like-for-like own beer volume was 12.7% ahead, although total volumes were slightly lower. There was a small operating loss in this division. Like-for-like retail sales were 11.9% ahead even though food sales fell. Tenanted income was 7% higher. Retail sales and tenanted income continued to grow in the 12 weeks to 18 March, but own beer volumes have declined. Following the results, director George Barnes acquired 6,000 shares at 605p each. The share price slipped 1.65% to 595p.
Verici Dx (LON: VRCI) bounced back from its low last week, rising 27.3% to 7p. The developer of clinical diagnostics for organ transplants published an operational update. Post kidney transplant rejection assessment product Tutiva has been launched and pre-transplant product Clarava should be launched before the end of 2023. The Medicare reimbursement pricing for Tutiva should be secured by the end of June.
Cote d’Ivoire-based Dekel Agri-Vision (LON: DKL) increased palm oil production in February, but there was little response to the news when it was released on 13 March. However, buying early last week pushed up the share price by 23.7% to 2.35p. That is around six times prospective earnings. The share price is still lower than at the start of the year. February volumes are still low in comparison with last year, but they should continue to build up in March and could be higher than the same month in 2022.
Zinnwald Lithium (LON: ZNWD) rose on the back of its successful share issue at a premium to the previous market price. A total of £18.75m was raised at 10.41p a share and the price increased by 19% to 10.1p on the week. German critical metals company Advanced Metallurgical Group (Euronext: AMG) subscribed for a 25.1% stake. The cash will fund the definitive feasibility study of the Zinnwald lithium project in Saxony, which can supply battery markets. It is currently estimated to have a NPV8 of $1.6bn and a payback period of 3.3 years. The output could reach 17,000t/year LiOH. AMG has Europe’s first lithium hydroxide refinery at Bitterfield-Wolfen.
Promotional retail company SpaceandPeople (LON: SAL) achieved 2022 revenues of £5.5m and momentum has continued into 2023 in Germany and the UK despite UK rail strikes. Net cash is £400,000. The full year results will be announced in early May. The share price rose 18.4% to 80.5p.
==========
Fallers
Africa-focused agriculture company Agriterra (LON: AGTA) raised £250,000 at 1p a share. Magister Investments is converting £206,000 of debt at the same price. The share price slumped by 52.8% to 1.25p. The cash will be spent on purchasing cattle and working capital for operations.
In The Style (LON: ITS) voted in favour of the sale of its online retail business for £1.2m, but not enough voted for the cancellation of AIM quotation. The purchaser is Baaj Capital, which has other fashion-related investments, including Officers Club. There was 58.9% in favour of the AIM cancellation, but it required 75%. The company will change its name to Itsum and become a cash shell. However, there are still plans to wind up the company and shareholders will be distributed less than £500,000 after expenses. The share price fell a further 46.7% to 0.6p, which capitalises the company at £300,000.
Late on Friday, leather processor Pittards (LON: PTD) raised £255,000 in a placing at 25p and directors loaned £85,000, which will be converted into shares at 25p each following a general meeting. The share price slumped 42.7% to 21.5p. Management warns that it may have to raise a further £3m. Pittards has been operating near to the peak of its bank facility and Lloyds has agreed to increase this facility by £340,000. As well as extend the facility to June. Pittards has been hit by the weak pound.
Cyber security company Osirium Technologies (LON: OSI) reported a slightly higher loss of £3.59m in 2022 and cash levels are declining. Management believes that it has enough cash for its requirements, but it has to stem the outflow. Management is securing £1m of annualised savings. The switch of focus to partners should accelerate customer acquisition and help to increase revenues. The share price slumped 41.5% to 1.55p, which is a new low.
Cloud video editing technology developer Blackbird (LON: BIRD) shares recovered following the purchases of a total of 126,427 shares by chief operating and financial officer Stephen White in two tranches at 7.85p and 8p. That takes his stake to 0.15%. The share price improved 5% to 8.4p. Earlier this week, Blackbird reported increased annual revenues by 38% to £2.85m. There are £3.43m of contracted revenues with £1.6m to be recognised this year. There was still £10m in the bank at the end of 2022. This means that there are no concerns about Blackbird having to raise additional cash. The new self-service SaaS platform aimed at creators will be launched in the fourth quarter of 2022. There will be four tiers starting at $12/month.
Cosmetics supplier Warpaint London (LON: W7L) says that last year’s strong trading momentum has continued this year. First quarter sales are expected to be at record levels with revenues of more than £16m already and 2023 revenues should be better than expected. There is cash of £7.6m. The 2022 results will be published on 26 April. The share price is 2.03% to 201.5p.
Shares in Journeo (LON: JNEO) continue to rise following the five-year software and support services contract with Gatwick Airport valued at £500,000. Journeo has been working with Gatwick Airport on real-time passenger information systems since 2017. The share price is 3.7% higher at 154p.
Six directors of product life cycle software Sopheon (LON: SPE) have each bought 3,500 shares at prices between 665p and 700p. The 2022 results were in line with the January trading statement. Recurring revenues were 61% of the total. The share price rose 3.5% to 665p.
Phoenix Copper (LON: PXC) is finalising discussions concerning a placing of up to $80m of corporate copper bond and the coupon will be the higher of a copper price coupon or an interest rate option. The copper price coupon will be a minimum of 8.5% at $3.60 per pound and every additional $0.10 per pound would raise the coupon by 0.15%. The maximum coupon is 20%. A short-term loan facility of $2m has been secured and two million warrants exercisable at 42p have been issued to the lender. The share price slumped 21.7% to 20.75p.
Cyber security company Osirium Technologies (LON: OSI) shares continue to fall after yesterday’s full year figures showing a slightly higher loss of £3.59m and declining cash levels. Since then, £1m of annualised savings have been secured. The switch of focus to partners should accelerate customer acquisition. The decline was 14.6% to 1.75p.
Caledonia Mining Corporation (LON: CMCL) has raised £8.7m at 1115p a share with £2.4m more to come from a placing in Zimbabwe. The share price slipped 11.3% to 1140p. The cash will be spent on accelerating work on three new gold projects in Zimbabwe. Last year, net cash generated from operating activities was $42.6m, but cash fell to $1.5m at the end of 2022 because of significant capital investment. The total dividend was increased from 50 cents a share to 56 cents a share.
In the year to November 2022, printed circuit board materials supplier Holders Technology (LON: HDT) fell into loss as it poured investment into lighting and wireless control solutions. Trading improved in the second half. There is cash of £2.27m. There will be continuing investment in broadening the product range. The share price fell 7.88% to 76p.
The FTSE 100 fell sharply on Friday as investors mulled the implications of this week’s central bank action and the possibility of additional rate hikes.
Both the UK and US central banks hiked interest rates by 25bps this week and left the door open for further increases in interest rates to fight high levels of inflation.
New concerns about additional rate hikes added to lingering worries about the health of the global banking system.
Declines in US stocks overnight led to a weaker start for European indices on Friday.
“Markets across the pond are still trying to iron out the full impact of the banking situation, as well as what tightening monetary conditions mean for future earnings,” said Sophie Lund-Yates, Lead Equity Analyst at Hargreaves Lansdown.
“For the main indices, things moved from gains to losses throughout trading as Treasury Secretary Janet Yellen said authorities are prepared to take more action if needed to stabilise US banks.”
The FTSE 100 was down nearly 2% to 7,354 at the time of writing.
Bank woes
The selling of European bank shares picked after the price of Deutsche Bank credit default swaps (CDS) soared.
Credit default swaps are an insurance against default and the rising price indicates investors about the health of Deutsche Bank.
Deutsche Bank were down as much as 14% on Friday and dragged the European banking sector with them.
FTSE 100 banks hits
The FTSE 100 had started the week on the front foot, but rate hikes and fresh banking concerns quickly halted a recovery in London’s leading index.
All of the gains in banks earlier in the week evaporated on Friday. Barclays was down over 6% to 130p, the lowest level since the pandemic.
NatWest was 5% lower while Standard Chartered shed over 5%.
There were few gainers on Friday. Endeavour Mining was again enjoying the safe haven trade and investors sought safety in defensive names such as Diageo and Reckitt Benckiser.
In the face of economic uncertainty, Wetherspoons have carved out respectable sales growth in recent months and sales are now higher than before the pandemic.
In a material improvement in trading, Whetherspoons sales 9.1% grew in the seven weeks to 19th March 2023 compared to FY19.
Sales grew to 5% in the first half end January 2023, compared to 2019.
Higher food sales and revenue from slot machines were a significant element in their sales growth.
“This is a solid performance from Wetherspoons set against an exceptionally challenging trading backdrop. Like-for-like sales have proved robust and have strengthened in the last 7 weeks, despite cost of living pressures on consumers,” said Wealth Club’s Charlie Huggins.
As has become customary with Wetherspoon trading updates, Tim Martin, the Chairman of J D Wetherspoon, took the opportunity to provide his views on Brexit and the impact on the UK economy.
“As reported last year, the company has a full complement of staff, although the labour market is competitive, with unemployment, in spite of economic problems, at approximately its lowest level in the last 50 or so years,” said Tim Martin.
“Supply or delivery issues have largely disappeared, for now, and were probably a phenomenon of the stresses induced by the worldwide reopening after the pandemic, rather than a consequence of Brexit, as many commentators have argued.”
“Inflationary pressures in the pub industry, as many companies have said, have been ferocious, particularly in respect of energy, food and labour. The Bank of England, and other authorities, believe that inflation is on the wane, which will certainly be of great benefit, if correct.”
GreenRoc has released results for the year to 30th November 2022 in which the company confirmed the maiden resource estimate for the Amitsoq Project and pursued further evaluation of the project.
In March 2022, the maiden resource estimate of 8.28Mt at 19.75% graphitic carbon was declared for the Amitsoq Project.
In addition, the company has undertaken a 19 hole drill programme totalling of 2,844m – the company said every hole intersected significant graphite layers.
The drill programme culminated in the trebling of the resource to 23.05 Mt at a grade of 20.41% graphitic carbon.
Despite the year of ‘enormous progress’, GreenRoc shares are down 50% over the past year.
“Enormous progress has been made, in particular, at Amitsoq, where we have built up a substantial graphite resource and have done so without any sacrifice to grade, with Amitsoq now firmly established among a very select grouping worldwide of graphite deposits with resource grades averaging more than 20%,” said GreenRoc’s Chairman, George Frangeskides.
“At the same time, we have greatly advanced our metallurgical test work programme in order to demonstrate the amenability of our graphite to the production of high purity spherical graphite which is in such demand for electric vehicles.”
“These achievements mean that we can now focus our efforts for the rest of this year on our ongoing development work and furthering our discussions with potential strategic partners, putting us in a very strong position as we seek to accelerate Amitsoq along the path to production.”
The FTSE 100 has felt the pressure of tightening monetary policy in the last 24 hours after the Federal Reserve hiked rates last night and the Bank of England followed suit today.
US stocks were down heavily overnight and the selling spilled over into the European session.
The Federal Reserve hiked rates by 25bps to 4.75% while the Bank of England hiked 25bps to 4.25%.
The Bank of England had little choice but to hike rate after UK inflation accelerated to 10.4% as in February the costs of salads helped push up benchmark CPI.
“The UK is in an economic danger zone,” said Charles White Thomson, CEO at Saxo UK.
Despite the weakness at the beginning of the session, the FTSE 100 edged off the lows as the session progressed. The BoE decision to hike 25bps saw the FTSE 100 back above 7,500.
There is consensus building major central banks are nearing the end of their hiking cycles and this helped the FTSE 100 of the worst levels of the session.
“We understand why there is a growing chorus of commentators calling for a pause here,” said Jonathan Moyes, Head of Investment Research, Wealth Club.
“The US and Europe have come very close to a banking crisis over the previous two weeks and monetary conditions will tighten significantly as a result, placing further strain on the sector.”
HSBC and Standard Chartered were among the top fallers as a stronger GBP/USD hit dollar earners.
NatWest was up 1.4% while Endeavour Mining was the best performer. Gold has been edging towards $2,000 since the start of the SVB saga.
Federal Reserve disappointment?
The selling of equities began last night after the Federal Reserve hiked rates by 25bps despite concerns recent banking failures at SVB and Credit Suisse were a result of higher interest rates.
Although economist consensus expectations were for a 25bps, some thought the Fed may take a break from rate hikes after disruption in the financial system tightened conditions. Not so.
The Fed choose to continue the fight against inflation with higher rates.
“My colleagues and I are acutely aware that high inflation imposes significant hardship as it erodes purchasing power, especially for those least able to meet the higher cost of essentials like food, housing, and transportation,” said Fed chairman Jerome Powell in a press conference following the rate decision
Many now expect the US will enter a recession this year and a pivot looks a long way off.
Zinnwald Lithium (LON: ZNWD) is the highest riser today after its successful share issue at a premium to the previous market price. A total of £18.75m was raised at 10.41p a share and the price has risen by 24.4% to 10.25p. German critical metals company Advanced Metallurgical Group (Euronext: AMG) subscribed for a 25.1% stake, while a Primary Bid offer enabled other investors to participate at the same price. The cash will fund the definitive feasibility study of the Zinnwald lithium project in Saxony, which can supply battery markets. It is currently estimated to have a NPV8 of $1.6bn and a payback period of 3.3 years. The output could reach 17,000t/year LiOH. AMG has Europe’s first lithium hydroxide refinery at Bitterfield-Wolfen. Tamesis Partners has a target share price of 40p.
Full year results from product life cycle software Sopheon (LON: SPE) were in line with the January trading statement with new companies signing up for a SaaS contracts. Recurring revenues were 61% of the total. The share price is 14.8% higher at 660p.
Eco Animal Health (LON: EAH) had a strong fourth quarter and demand for pig treatment Aivlosin was lightly higher than expected in China. This means that full year results will be marginally better than expected. A pre-tax profit of £3.81m was forecast. The share price rose 11.7% to 109.5p.
SRT Marine Systems (LON: SRT) has won a £145m project to provide marine detection systems to a foreign coast guard customer. The UK government is providing a loan to finance the contract and once that is agreed the contract will start. The validated sales pipeline is worth £535m. However, this year’s systems revenues will be lower than expected with projects delayed until the next financial year. Forecast revenues for the year to March 2023 have been slashed from £56.6m to £30m and there will be a loss. Even so, the share price improved by 11.8% to 42.5p.
Cyber security company Osirium Technologies (LON: OSI) reported a slightly higher loss of £3.59m in 2022 and cash levels are declining. Since then, £1mm of annualised savings have been secured. The switch of focus to partners should accelerate customer acquisition. The share price slumped 17.3% to 2.15p, which is just above the all-time low.
Safestyle UK (LON: SFE) reported 2022 results showing a £4.4m underlying loss. The replacement windows company could return to profit this year, but there are still underlying economic concerns, high interest rates and pressure on consumer spending. This year’s pre-tax profit forecast has been cut from £3.6m to £2m. The share price has fallen 15.3% to 24.55p.
An independent report has been commission to look into related party issues at Inland Homes (LON: INL). The shares will be suspended on 3 April until the accounts are published. A £5m fundraising at 10p a share is being considered. Matthew Robinson and Trevor Sawyer have been appointed as non-execs. The shares are down by 13.8% to 6.25p.
Ex-dividends
Craneware (LON: CRW) is paying a dividend of 12.5p a share and the share price is 40p lower at 1260p.
Finsbury Food (LON: FIF) is paying an interim dividend of 0.87p a share and the share price is unchanged at 94p.
Fonix Mobile (LON: FNX) is paying an interim dividend of 2.36p a share and the share price is down 4p to 198.5p.
Hargreaves Services (LON: HSP) is paying an interim dividend of 3p a share and the share price fell 2p to 399.5p.
i3 Energy (LON: I3E) is paying a dividend of 0.17p a share and the share price is 0.18p lower at 17.1p.
MTI Wireless Edge (LON: MWE) is paying a final dividend of 3 cents a share and the share price fell 3p to 51p.
Nichols (LON: NICL) is paying a final dividend of 15.3p a share and the share price is down by 12.5p to 1047.5p.
FW Thorpe (LON: TFW) is paying an interim dividend of 1.62p a share and the share price reduced by 8p to 354p.
Viritech, the leading developer of high-performance hydrogen powertrain solutions for the automotive, aerospace, marine, and distributed power industries, has announced that Phil Wild will join as Associate Director board member from 1st April to help develop its commercial scale-up plan for 2024 onwards.
Viritech is a cleantech technology company which develops advanced hydrogen powertrain technology for licensing to vehicle manufacturers and major component suppliers.
Following two years of R&D, Viritech is focussed on a development pipeline of 24 products for hydrogen powertrains, including hydrogen storage, advanced battery systems and power electronics. It will introduce these over the next 24-months, with sales revenues expected to commence by Q4 this year.
In addition to its ambitious product development pipeline, Viritech has also recently announced two major partnerships. The first is with the Anand Group in India to establish a manufacturing JV in 2024. The second is with Horiba MIRA, a leading European automotive engineering and testing consultancy, and Intelligent Energy, the leading British fuel cell manufacturer, to develop hydrogen fuel cell powertrain solutions suitable for 40-tonne Heavy Goods Vehicles (HGVs). Further high-profile projects in partnership with major manufacturers are expected to be announced in the near future.
With the company demonstrating commercial engagement with major global manufactures over the next six months, Mr Wild will work with Viritech’s CEO & Founder, Timothy Lyons to develop the company’s long-term scale-up strategy for implementation in 2024.
To support this plan, the company will be seeking a £5m equity raise later this year, targeting Venture Capital investors, Strategic Investors and Family Offices.
