Alien Metals Investor Presentation at the UK Investor Magazine Summer Investor Evening June 2022.
Alien Metals CEO Bill Brodie Good provides a comprehensive overview of the Alien Metals portfolio with particular attention paid to the Hancock Iron Ore Project set to begin production in 2023.
Bigblu Broadband shares were down 3.8% to 50p in early morning trading on Monday, after the group reported a total revenue climb of 13.8% in HY1 2022 to £14.9 million compared to £13.1 million in HY1 2021.
The telecommunications firm announced a like-for-like revenue growth on a constant currency basis of 15.1% against 15.6% year-on-year, along with an adjusted EBITDA rise of 1.4% to £2 million from £2 million.
Bigblu Broadband mentioned an adjusted operating cash inflow of £1.3 million, remaining flat since the last year, alongside an adjusted free cash inflow of £400,000 against £300,000.
The company highlighted net cash of £4.5 million on 31 May 2022 from £4.1 million the year before, following the repayment of its debt in full and the return of capital to shareholders in the last financial term.
The firm noted a selection of operational high points, including a rise in total customers to 60,400 compared to 58,300 in the previous year, however it lost 500 customers as a result of a targeted cyber attack on its partnered operations in Ukraine.
Bigblu Broadband further mentioned its Australian business Skymesh had signed a partner agreement with Asia-Pacific broadband satellite operator Kacific Broadband Satellites Group to facilitate high-speed broadband internet service across the region, starting with New Zealand.
The group reported a slate of new customer acquisitions via its purchase of certain assets of Clear Networks in Australia in January 2022, strengthening its Australian presence.
The company also noted its recent distribution agreement with Telenor to provide broadband via wireless 5G delivering speeds up to 500 Mbps, however the operation was confirmed to be running six months behind schedule due to equipment shortages.
Bigblue Broadband reported some problems with its Quickline disposal to Northleaf for a cash consideration of up to £41.2 million, with up to £10.1 million in deferred payment contingent on several performance conditions being met by 22 May 2022.
The transaction included the agreement in PC1, to build 100 gigabit capable 5G masts passing 60,000 homes, and PC2, to secure over £10 million in subsidies.
Quickline said it had experienced supply chain difficulties, with the subsequent backlog resulting in only 41 new FWA masts and £2.6 million in new subsidies, which meant Bigblue Broadband received no deferred consideration from the agreement.
“We are pleased with the continued progress shown by the Group in the Period, and the efforts we have made to improve our offering in the Nordic region provides us with optimism that this region can return to growth. In addition, our Australian business continues to perform strongly,” said Bigblue Broadband CEO Andrew Walwyn.
“The Board’s focus will be on continuing to ensure it can maximise shareholder value from its continuing operations.”
“Overall, the Company continues to trade in line with expectations and, with extensive experience in the sector and a proven track record of building attractive businesses to deliver shareholder value, the Board remains confident in its ability to ensure it can continue to deliver attractive returns for shareholders from its operations in Australasia and the Nordics.”
Spirax-Sacro Engineering shares were up 2.5% to 10,315p in early morning trading on Monday following its announced negotiations to acquire the Vulcanic group of companies from French private equity firm Qualium for £225.5 million on a cash and debt-free basis.
Vulcanic operates as a European industrial electric heating group, and is currently the largest supplier of bespoke industrial heating solutions across the continent.
The company is based in France and holds 10 manufacturing facilities internationally with over 700 employees, of which 90% are situated in Europe, the Middle-East and Africa.
Spirax-Sacro Engineering confirmed Vulcanic would support the delivery of growth in the manufacturing group’s Electric Thermal Solutions (ETS) business through existing customers, products and operational footprints to complement its existing Chromalox business, which is predominantly based in the Americas.
The engineering firm added that Vulcanic would support Spirax Sacro Engineering’s drive to help customers decarbonise their critical industrial processes via electrification, building on high demand already present among European customers.
Spirax-Sacro commented the acquisition of Vulcanic was expected to be accretive to its earnings in FY 2022.
The group noted that the regulatory conditions of the merger were scheduled to close by Q3, with the consideration to be financed through an acquisition bank facility.
Vulcanic reported revenues of £76.8 million in FY 2021, along with an EBITDA of £15.2 million and an EBIT of £13.8 million on an adjusted pro-forma basis for the financial term.
The company confirmed gross assets of £186.8 million for 2021, including goodwill from previous Vulcanic acquisitions.
“We are looking forward to welcoming colleagues from Vulcanic into our Group. We have been following Vulcanic for some time and believe the acquisition represents an excellent opportunity to broaden our addressable market and further deploy our industry leading technologies in Europe,” said Spirax-Sacro Engineering CEO Nicholas Anderson.
“Vulcanic’s existing strength and scale in Europe – with further investment by our Group – will provide a fantastic platform for growth, especially for our recently launched portfolio of TargetZero solutions, which electrify heat generation for industrial processes to support our customers’ decarbonisation objectives.”
The share price of health products and diagnostic services supplier Goodbody Health Inc (LON: GDBY) has recovered by 11.1% to 1.5p during the week. The share price is still 58.3% below the level at the beginning of 2022.
Shepherd Neame (LON: SHEP) issued a full year trading statement and the share price edged up 0.9% to 812.5p. The Kent-based brewer and pubs operator says revenues are recovering and Peel Hunt forecasts a return to profit in 2021-22. Net debt was reduced from £93.2m to £75.3m by the end of June 2022. The estimated 2021-22 pre-tax profit of £7.2m is expected to improve to £9.6m in 2022-23, but that is a £900,000 reduction on the previous forecast prior to the trading statement.
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Fallers
Asimilar (LON: ASLR) is the largest faller on the week with a 20.8% decline to 10.5p. The technology investment company reported its interim figures, which show a £10.6m loss due to a sharp decline in the Dev Clever Holdings share price, which is currently suspended. Net assets were 25.3p a share at the end of March 2022. A relisting of All Active Asset Capital could boost the NAV.
The departure of chief marketing officer Mark Harvey from Chapel Down Group (LON: CDGP) knocked 17.6% off the share price, leaving it at 21.5p. He has been with the wine maker for six years. The share price is well below last July’s fundraising price of 59.5p. There was £9.2m in the bank at the end of 2021, so Chapel Down should not require any more cash to finance further vineyard planting.
Blockchain and digital assets investor KR1 (LON: KR1) has fallen by three-quarters so far this year, including a 16.9% decline to 24.5p this week. Net assets were 423% higher at 122.68p a share at the end of 2021, but that figure is likely to be lower now given the weak cryptocurrency market this year. There was £3.49m in cash on the balance sheet.
There was profit taking in Valereum (LON: VLRM) and the shares fell 15.8% to 24p.
Energy storage technology developer Invinity Energy Systems (LON: IES) generated revenues of £3.2m in 2021. VSA has cut its forecast for 2022 revenues from £26.5m to £14.1m. There are already contracts won valued at £13.8m. The loss is expected to reduce from £21.3m to £17.9m. There should still be net cash of £10m by the end of 2022. The share price fell 15.1% to 45p
S-Ventures (LON: SVEN) shares also fell by 15.1% to 31p. The organic snacks supplier generated interim revenues of £4.1m, while the loss was £815,000. S-Ventures has subsequently acquired Market Rocket Ltd.
Australia-based online fashion retailer MySale Group (LON: MYSL) shares were 186% higher on the week at 3.58p making it the largest riser on the week. Mike Ashley’s Frasers Group has acquired a 28.7% stake. Frasers would like to sell its end of line merchandise through the company’s platform. MySale Group is still 38.3% lower than at the start of the year.
Inspirit Energy Holdings (LON: INSP) shares soared to 0.074p on Monday and settled at 0.06p at the end of the week. That was a 103% increase over the week. Investors were impressed that the company’s waste heat recovery system, where waste heat exhaust is converted to energy, has completed the first phase of development. Further enhancements will be made before there are trials. Cash is limited, though. Inspirit Energy had £348,000 in the bank at the end of 2021 after a £213,000 net cash outflow in the previous six-month period. The company may decide to take advantage of the share price rise to secure more funds.
Oil and gas explorer Providence Resources (LON: PVR) more than recovered the previous week’s share price decline after the announcement of a discounted fund raising of $1.8m at 1.5p a unit (one ordinary share and one warrant exercisable at 1.5p). The shares ended the week 37.8% higher at 3.1p, which is the highest the price has been since the middle of March. Providence Resources has an 80% stake in the Barryroe oil and gas project, offshore of Cork.
Shares in gift wrap, gifting and stationery products supplier IG Design Group (LON: IGR) recovered 30.4% to 90p following its full year figures. The loss was no surprise, but investors appear to be reassured about the steps being taken to improve performance and margins. The US business is the main problem and it fell into loss, while the international business remained profitable. The customers are highly supportive, and the order book is already 71% of this year’s budgeted revenues. Directors have acquired shares at prices between 70p and 83p since the results release on 28 June.
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Fallers
The biggest faller of the week was Cornerstone FS (LON: CSFS), which admitted that its cash was running out when it reported its 2021 figures – just in time to make sure that the shares of the international payments company were not suspended. The share price fell 56.4% to 8.5p. The chairman and the chief technology officer are both leaving. Technology is the key to the business. There was £280,000 in the bank at the time of the financial statement, with a further £450,000 of loan note facilities available. Cash flow estimates show that a share issue will be needed in the coming months.
On Wednesday, LiDAR wind sensor technology supplier Windar Photonics (LON: WPHO) admitted that it would not publish its annual results by the end of June because the audit was not completed and trading in the shares would be suspended on 1 July. Before the suspension the share price fell 43.9% to 8p. Revenues halved in 2021 because of further delays to a contract, which may not go ahead.
North America-based coal miner Bens Creek (LON: BEN) has been hit by profit-taking with a 43.2% slump to 42p. The share price is still well above last year’s placing price of 10p, although it was 104p in April. At the beginning of the week, Bens Creek said that production capacity could increase to up to 80,000 tons a month when another highwall miner is up and running. Non-exec director David Harris bought 44,642 shares at 44.8p each.
Shield Therapeutics (LON: STX) is running short of money because US sales of iron deficiency treatment Accrufer and another downgrade by finnCap. The share price fell 40.4% to 7.75p – that is an 82.6% drop so far this year. Most of the 2021 revenues of £1.5m were generated in Europe. There is progress in US revenues with first quarter prescriptions double the number in the fourth quarter of 2022 at more than 3,900. Having failed to raise money via a share issue, management has obtained a $10m loan, which can be converted into shares, from major shareholder AOP Orphan. That may give Shield Therapeutics enough cash until the end of the year. The loan is secured on the US IP for Accrufer.
The FTSE 100 was down marginally on Friday as the market ended the week on a tepid note, following a 5% drop over June marking the worst month for the FTSE 100 since the first shock of the Covid-19 pandemic in 2020.
US markets also had a dismal June which culminated in the worst quarter for the NASDAQ since 2008.
Meanwhile, the S&P 500 closed up 1% on Friday as bargain hunters stepped into to provide some support.
“We already knew this year’s stock market performance had been miserable but when we see headlines flashing about the worst first-half for US equities since 1970 and the worst month for the FTSE 100 since the pandemic-induced market crash in 2020, the brutal severity of the losses really hits home,” said AJ Bell investment director Russ Mould.
Fears of a global slowdown on recession worries sent commodities groups falling, with Anglo American down 1.4% to 2,894.2p, Antofagasta sliding 1.9% to 1,132p, Endeavor tumbling 2.2% to 1,6645p, Fresnillo falling 2.5% to 747p, Glencore dipping 1.6% to 437.8p and Rio Tinto declining 1.1% to 4,860.5p.
However, analysts sought to find a sliver of light at the end of the tunnel, and assured investors that prices would rise again once the gloomy outlook had cleared.
“Whether you’re paying into a retirement savings pot through your workplace, or running your own personal pension, the drop in the market means your savings are worth that bit less,” said Mould.
“But this is not a time to panic. Stock markets go up and down, businesses go through good and bad cycles, and economic growth certainly does not travel in a straight line. The key is patience and hopefully the current state of despair will fix itself in time.”
The price of oil rose to $111 per barrel for benchmark Brent Crude, after supply fears in Libya and worries of a shutdown in Norway caused the price to rally.
Shell shares gained 1.5% to 2,166p, however BP shares slid 0.4% to 386.5p despite the rise in prices.
Peter Gyllenhammar has acquired a 3.12% stake in South America-focused power generator Rurelec (LON: RUR). The share price was unchanged when the holding was announced yesterday, but it has subsequently risen by 9.5% to 0.575p. Askar Alshinbayev, the founding partner of Meridian Capital Ltd, had previously acquired an 8.6% stake. Rurelec had a net asset value of £11.7m at the end of 2021. It is loss-making, but that is well above its market capitalisation of £2.9m.
Australia-based online fashion retailer MySale Group (LON: MYSL) is the largest riser today, following yesterday’s 0.5p increase on news of Mike Ashley’s Frasers Group holding a 28.7% stake. The share price has risen a further 97% to 3.25p. Frasers would like to sell its end of line merchandise through the company’s platform. Sports Direct, as Frasers was then known, bought a 4.8% just after MySale Group floated in 2014 but that stake was sold in May 2019. MySale Group was planning to cancel its AIM quotation and move to the ASX, but it dropped its plans last autumn. Frasers stake is high enough to block any AIM cancellation.
Plant-based polymers developer Itaconix (LON: ITX) says that first half revenues are substantially ahead of the previous record level. This makes the board confident that Itaconix can meet expectations for this year. Demand is growing from new and existing customers in the detergents and hygiene sectors. Itaconix is still expected to lose money this year, but the cash outflow should be lower. There will be a trading update in the middle of July. The share price, which can be volatile, jumped 29.2% to 5.75p.
BlueRock Diamonds (LON: BRD) more than doubled 2021 revenues from £3.6m to £7.85m, while the loss was reduced from £2.99m to £1.35m. There was a £2.4m cash inflow from operations. The South Africa-based diamond miner has commissioned a new plant at the Kareevlei mine that will more than double capacity to 1 million tonnes per annum. The resource has been upgraded by 49% to nearly 10.4 million net tonnes. Management is positive about the prospects for diamond prices. Even so, the share price has fallen 7.4% to 12.5p.
Oxford Biomedica shares were up 3% to 468p in late morning trading on Friday after the firm announced it had entered into a three-year Master Services and Development Agreement with AstraZeneca.
The Agreement would reportedly facilitate the potential future manufacturing opportunities for the AstraZeneca Covid-19 vaccine.
Oxford Biomedica noted the deal represents an expansion of the original Master Supply and Development Agreement announced between both groups in September 2020.
The working relationship is set to have Oxford Biomedica complete its manufacture of AstraZeneca Covid-19 vaccines in Q4 2022, followed by Oxford Biomedica providing the use of its 84,000 square foot manufacturing facility for AstraZeneca to take advantage of on an as needed basis after 2022.
Oxford Biomedica confirmed an expected recognised revenue of approximately £30 million from AstraZeneca in the current financial year in line with the terms of the original Agreement and inclusive of all batches of vaccine manufactured in HY1 2022.
“I am delighted that our close partnership with AstraZeneca has been extended. I am proud of the work of all our colleagues at Oxford Biomedica that has enabled us to deliver more than 100 million doses of lifesaving COVID-19 vaccine,” said Oxford Biomedica CEO Dr. Roch Doliveux.
“While contributing to the efforts to fight the pandemic, this has also demonstrated Oxford Biomedica’s ability to expand the scope of our innovative process development services and deliver high-performing manufacturing solutions beyond lentiviral vectors.”
“We look forward to continuing to work closely with AstraZeneca and execute on our strategy to become a global leader across all viral vectors, enabling Cell and Gene Therapy companies to deliver their life-changing therapies to patients.”
Croda shares increased 0.6% to 6,512p in late morning trading on Friday after the group announced its completed divestment of its Performance Technologies and Industrial Chemicals businesses to a wholly-owned subsidiary of Cargill.
Croda reported the gross proceeds from the transaction would be approximately £667 million, subject to small adjustments for cash, working capital and debt-like instruments.
The group commented the divestment and the associated proceeds excluded Croda Sipo, a Chinese joint-venture in which Croda holds a 65% stake.
The firm highlighted its continued discussions with its joint-venture partner regarding the acquisition of its holding in Sipo in order to complete a subsequent sale by Croda to Cargill of 100% of the group for a total price of €140m.
“This divestment accelerates Croda’s transition to being a pure-play Consumer Care and Life Sciences company” said Croda CEO Steve Foots.
“We will redeploy capital and resources to scale our consumer, health and crop care technologies, helping to deliver consistent, superior sales growth and even stronger profit margins.”
