Aquis weekly movers: Voyager Life plans helium purchase

Andrew Hore
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Aquis weekly movers: Voyager Life plans helium purchase

Voyager Life (LON: VOY) has entered into an option to acquire M3 Helium Corp, which is a Kansas-based helium producer, for 57.6 million shares. Production is from one well and four other wells are being tested. There is also a processing plant. Voyager Life has raised £864,000 at 3p/share to finance the development of operations and fund the readmission document. M3 Helium is loss-making. The share price jumped 36.8% to 3.25p.

Ananda Developments (LON: ANA) announced promising results from cardiac fibrosis studies with CBD-based therapy MRX1. It has potential as a treatment for heart failure with preserved ejection fraction. It mitigates cardiac fibrosis and improves heart health. Next steps are being assessed. The share price improved 22.2% to 0.55p.

Tennyson Securities has published initial research on Good Life Plus (LON: GDLF) the prize-based draw lottery. Investment in the business means that it will continue to lose money for the next two years before moving into profit in 2026-27 when earnings of 0.7p/share are forecast. The 12-month target price is 4.24p/share.  The share price increased 20.7% to 1.75p.

Time to ACT (LON: TTA) subsidiary GreenSpur has received an award of £613,000 from the EU BEETHOVEN project for the development of advanced magnetic materials. This will be used for development of the rare earth-free magnet.  The share price rose 13.6% to 62.5p.

Valereum (LON: VLRM) reported a reduction in loss from £4.25m to £353,000. There was a swing from net liabilities of £758,000 to net assets of £351,000 following an increase in the value of the investment in Vinanz (LON: BTC). That was partly offset by an impairment charge on the GSX investment. The Valereum share price is 4.41% to 3.55p.

Brewer Adnams (LON: ADB) expects to conclude its evaluation of future funding later in the summer. The share price rose 2.38% to 2150p.

FALLERS

Startup Giants (LON: SUG) shares fell 95.9% to 3p prior to the ending of trading on 27 June.  

Housebuilder St Mark Homes (LON: SMAP) reported an increase in loss from £1.47m to £2.93m. Directors are halving their remuneration from the beginning of July. Because of the weakened financial position the board will ask shareholders at the AGM to agree to the departure from the Aquis Stock Exchange. The share price slumped 55% to 22.5p.

Food company Essentially Group (LON: ESSN) lost £960,000 on revenues of £1.59m in the 16 months to the end of 2023. There was £301,000 in the bank at the end of the year. The share price is one-fifth lower at 34p.

Ormonde Mining (LON: ORM) had net assets of €10.5m at the end of 2023, including €2.3m in cash. Management is evaluating investment opportunities. The share price declined 11.1% to 0.2p.

Wishbone Gold (LON: WSBN) reported an increase in cash outflow from operations from £787,000 to £1.62m. Cash fell below £6,000 at the end of 2023. A share issue at 1.2p/share and exercise of warrants raised £550,000 this year. The share price slipped 9.09% to 1p.

Phoenix Digital Assets (LON: PNIX) made a pre-tax profit of £20.1m in 2023 following a fair value gain of £25.3m. This is prior to the recent tender offer. The share price fell 7.59% to 3.65p.

Marula Mining (LON: MARU) believes that the Blesburg lithium and tantalum mine will generate positive cash flow in the second half of 2024. The company has confirmed delivery of manganese ore from the Larisoro manganese mine and they will increase in the second half. The share price dipped 6.35% to 7.375p.

SuperSeed Capital (LON: WWW) has issued 100,000 investor warrants exercisable at 120p/share to VSA Capital. The convertible loan notes will be redeemable on 21 June 2026 instead of September 2024. The share price slid 3.13% to 77.5p.

Invinity Energy Systems (LON: IES) increased revenues from £2.94m to £22m in 2023. The loss rose from £18.5m to £23.2m. The share price slipped 2.5% to 19.5p.

KR1 (LON: KR1) had net assets of 106.3p/share at the end of May 2024. The share price fell 1.47% to 67p.

AIM movers: SIMEC Atlantis Energy cash boost

Andrew Hore
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AIM movers: SIMEC Atlantis Energy cash boost

Renewable energy company SIMEC Atlantis Energy (LON: SAE) generated cash in 2023 due the sale of the Uskmouth energy storage project and ongoing revenues from MeyGen tidal project. Net debt was reduced from £54.1m to £50.6m, with the majority of debt in the MeyGen project, which is set to be expanded. Core company debt was £13.7m, before the subsequent receipt of £7m from a land sale. This puts the company in a strong position make further energy storage project investments. The share price soared 131% to 2.15p.

M Warner has increased his stake in Clontarf Energy (LON: CLON) from 3.13% to 5.98%. The share price rose 62.8% to 0.07p. This means the price has risen by one-third this year.

PI Industries has launched a 9p/share bid for Plant Health Care (LON: PHC) and this is recommended by the board. The bid values the natural crop enhancement products company at £32.8m. The share price jumped by 48.1% to 8.625p. PI is involved in all areas of the agricultural inputs sector in India, and it would be able to provide the finance and distribution to grow the Plant Health Care operations. PI wants to expand into areas such as the US and Brazil where Plant Health Care is already active.  

Mercantile Ports and Logistics (LON: MPL) has released 2023 figures slightly ahead of expectations. There was an impairment charge of £9.9m. The pre-tax loss fell from £12.1m to £11.4m. Debt restructuring discussions continue and this will firm up the financial position of the Indian port facility developer. An operating profit is forecast for 2024, but it would not be enough to generate a post-interest profit. Cavendish has a price target of 4.8p. The share price recovered 37.5% to 2.2p.

FALLERS

Mineral sands project developer Capital Metals (LON: CMET) says Sheffield Resources has placed on hold the transaction to acquire a 50% interest in the Eastern Minerals project in Sri Lanka. Sheffield Resources is prioritising the use of cash on another project. Capital Metals is assessing other sources of finance for the project if it retains a 100% stake. A low-cost drilling programme will be undertaken. The share price slumped 57.1% to 1.63p.

Pubs and bars operator Nightcap (LON: NGHT) has decided to cancel the AIM quotation because of the weak share price and the difficulty to raise additional funds. Trading is challenging and this is expected to continue for the rest of the year. EBITDA for the year to June 2024 is below expectations. Integrating The Piano Works has been more costly than anticipated. A general meeting will be held on 17 July but there is already sufficient support to pass the resolution to leave AIM. The quotation is likely to be cancelled on 29 July. A matched bargain facility will be provided by Asset Match. The share price is 52% lower at 1.8p.

Beacon Energy (LON: BCE) says that the stabilised rate for the Schwarzbach-2 sidetrack is in the range of 50-100 barrels/day, which is much lower than the 900 barrels/day expected. This could be due to reservoir damage in the higher reservoir or poor permeability in the lower reservoir. The expected level of production plus existing production could generate £2m-£3m in gross revenues. Costs are being reduced by more than £1m/year and two directors are leaving the board. The accounts will not be ready by 1 July so trading in the shares will be suspended. The share price declined 51.9% to 0.0065p.

Live Company Group (LON: LVCG) is continuing discussions with a cornerstone investor to provide cash required because of the shortfall at the Brick Live division. A KPOP event in Germany is being promoted alongside the cornerstone investor. The 2023 accounts will not be published by the end of June, so trading in the shares will be suspended 1 July. The share price dipped by two-fifths to 0.3p.

Nightcap announces AIM delisting amid challenging trading conditions

UK Investor Magazine
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Nightcap announces AIM delisting amid challenging trading conditions

Nightcap, the owner and operator of 46 premium bars, has announced plans to delist from London’s AIM market and continue as a private company.

The decision comes as the hospitality sector continues to face significant headwinds and the bar operator said trading throughout 2024 has remained difficult.

Nightcap expects these tough conditions to persist until the end of the calendar year and points to the ongoing cost of living crisis, above-inflation increases in business rates, the impact of higher National Living Wage, and continuing rail strikes as reasons for the slow trading environment.

For the 52-week period ending 30 June 2024, Nightcap anticipates revenues to be in line with current market expectations. However, adjusted EBITDA is projected to fall below market forecasts. This shortfall is attributed to the aforementioned economic pressures, coupled with additional costs associated with the integration of The Piano Works acquisition, which has proven more expensive than initially anticipated.

The company’s financial performance has also been affected by abortive deal costs and expenses related to the proposed AIM delisting.

Nightcap said the current public market valuation does not reflect the company’s underlying potential or achievements to date. Many UK small cap companies will have the same gripe.

However, Nightcap believes this situation is unlikely to change in the short to medium term and is throwing in the towel on its time as a public company.

The company IPO’d in 2021 but hasn’t really embraced life as a public company. Investors have heard little from the company since listing, and the board have done little to communicate with the wider market. The lowly valuation should come as no surprise to management.

To facilitate future share transactions, Nightcap has appointed Asset Match Limited to provide a matched bargain facility, which is set to commence operations from the delisting date. This electronic off-market dealing facility will allow existing shareholders and new investors to trade Nightcap shares through periodic auctions.

Keywords Studios receives updated takeover offer

UK Investor Magazine
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Keywords Studios receives updated takeover offer

Keywords Studios, the global video game services company, has received an updated possible cash offer of 2,450 pence per share from EQT Group.

Keywords Studios share price were higher 5.79% at the time of writing after it announced the updated offer price alongside a trading update.

The company’s board has indicated that it would be inclined to recommend the offer to shareholders. The deadline for EQT to announce a firm intention to make an offer has been extended to 5pm on 3 July 2024.

The company will pay its 2023 final dividend of 1.76 pence on 28 June 2024, as previously announced.

Keywords Studios have had a tough first half of 2024 due to to the deferral or cancellation of large game development projects, softer demand in its Globalise division, and a slow recovery in Hollywood content. Despite the challenges, the company expects revenue is projected to grow by approximately 7% in the first half.

The company anticipates a more robust second half, forecasting organic growth of around 10%. This aligns with Keywords Studios’ medium-term guidance and reflects growing spend from larger clients and an expected stronger recovery from the US entertainment industry strikes.

Clontarf Energy – Hoping For Further Lithium News In AGM Update On Monday 9th July 

Mark Watson-Mitchell
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Clontarf Energy – Hoping For Further Lithium News In AGM Update On Monday 9th July 

Yesterday Bolivia was at the centre of international news, with some military unrest coming to the fore. 

The question now is will there be good Bolivian news evolving at the Hilton London Paddington at Midday on Monday 9th July, which is when Clontarf Energy (LON:CLON) will be holding it AGM covering its 2023 results. 

The Business 

The £5.24m capitalised company is an emerging lithium, and oil & gas Exploration & Production company focused on South America and Africa. 

The last trading year saw the group’s principal activities driving ahead its Lithium business in South America. 

The Report & Accounts note that the group incurred a loss for the year of £870,061 (2022: £4,766,646) and had net current liabilities of £1,277,374 (2022: £2,094,612) at the balance sheet date.  

Going Concern 

It was stated that those conditions represent a material uncertainty that may cast doubt on the group’s ability to continue as a going concern. 

Clontarf has successfully accessed the financial markets when necessary.  

Subject to technical verification of its exploration projects, and permitting, the company is confident of adequate funding, whether in London or Australia, for near to medium term ongoing activities. 

It raised a gross £400,000 in March this year, with the net proceeds being pitched to be used to advance Clontarf’s lithium projects in Bolivia, and neighbouring countries, as well as on petroleum projects in Ghana, Australia, and elsewhere, and for general working capital purposes. 

In late May the company raised another £300,000 gross with a Placing of new shares at 0.035p per share. 

Management Comment 

Chairman David Horgan stated that: 

“There has been rapid progress on developing high-purity, cleanly produced battery-grade Bolivian Lithium for the European market. 

European institutions understand that only brines can produce clean Lithium of the requisite quality for demanding future applications.  

Hard rock sources in Africa and Australia can supply technical grade material for Chinese upgraders, but at an environmental cost.  

Many rock miners are currently high-grading, mining only the richest and best minerology sources.   

This satisfied demand growth but is not sustainable at the expected demand volumes, purity requirements, and especially cleanliness standards.  

Burning rocks in coal-fired furnaces at circa 800ºC for days is not environmentally friendly. 

Clontarf has worked on this opportunity since 2008.   

Progress was slow until establishment of the Bolivian National Lithium Company (YLB) under the 2017 Lithium Law.   

Now, via the current convocatoria, there is a clear route to negotiating contracts with robust legal title. 

The appointment of dynamic experts at both National Lithium Company and Ministry levels has simplified the approvals’ process.   

Bolivia now focuses on boosting investment and exports, mainly targeting the premium markets in EV and grid storage batteries, as well as emerging high-tech applications.” 

The company’s shares have seen a spectacular rise in price since they touched 0.013p on 6th June. 

Today they are trading at around 0.073p, at which level the company is valued at £5.24m. 

Investors will certainly be looking forward to the forthcoming AGM and hoping that boss David Horgan has good news to impart. 

Quanex Building Products offers dividend sweetener in Tyman bid

Andrew Hore
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Quanex Building Products offers dividend sweetener in Tyman bid

Quanex Building Products Corp is offering an additional special dividend of 15p/cash as part of tis bid for fully listed building products supplier Tyman (LON: TYMN). This reflects a reduction in the bid value in recent weeks.

The original Quanex bid was 240p in cash and 0.05715 of a share for each Tyman share. There is also an all-share alternative of 0.14288 of a Quanex share for each Tyman share. This bid was recommended by the Tyman board and the revised offer is also recommended. Tyman shareholders have subsequently received a 9.5p/share final dividend for 2024.

When the original bid was announced the cash and shares bid was valued at 400p/share, but the Quanex share price has declined since then. The price at the time of the original announcement was $34.64 and it has slumped to $28.22. The special dividend would make up some of the reduction in the bid value.

The product ranges appear to be a good fit with a particularly strong presence in North America. Quanex will be able to use Tyman’s international operations as a base to sell its products.

The Tyman share price improved 8p to 358.5p.

AIM movers: Ethernity Networks US contract and I(X) Net Zero leaving AIM

Andrew Hore
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1
AIM movers: Ethernity Networks US contract and I(X) Net Zero leaving AIM

Ethernity Networks (LON: ENET) has won a $1.1m contract in the US. It will supply networking technology and the deal could lead to further business. The project implementation cannot start until the US government provides approval. The share price moved up 31% to 0.95p.

Eurasia Mining (LON: EUA) share trading will be suspended on 1 July because it has not published 2023 accounts. The share price still improved 4.76% to 2.2p.

Directors of Firering Strategic Minerals (LON: FRG) have subscribed £230,000 at 2.9p/share, taking the total raised in the recent fundraising to £2.32m. The share price increased 8.06% to 3.35p.

Tavistock Investments (LON: TAVI) has confirmed it is considering disposals, including part of the group to financial planning and investment services provider Saltus. The share price is 7.35% ahead at 3.65p.

UK Oil & Gas (LON: UKOG) says a competent person report on the Horndean field, where it owns 10%, shows that its share of the net 2P reserve is 106,400 barrels of recoverable oil. The total estimate is slightly higher than previously. This is a steady income producing investment and generated net earnings of £147,000 last year. The share price rose 6.06% to 0.0175p.

FALLERS

Pubs and bars operator Nightcap (LON: NGHT) has decided to cancel the AIM quotation because of the weak share price and the difficulty to raise additional funds. Trading is challenging and this is expected to continue for the rest of the year. EBITDA for the year to June 2024 is below expectations. Integrating The Piano Works has been more costly than anticipated. A general meeting will be held on 17 July but there is already sufficient support to pass the resolution to leave AIM. The quotation is likely to be cancelled on 29 July. A matched bargain facility will be provided by Asset Match. The share price slumped 52.2% to 1.65p.

Renewables investment company I(X) Net Zero (LON: IX.) also plans to cancel its AIM quotation. The share price has slumped since joining AIM, partly because of the timing. Renewables businesses were in favour, but there was a subsequent change in investor sentiment to companies that were not profitable. There has also been a lack of liquidity in the shares. Cash is flowing out of the company and more funds are likely to be required. There were $81.1m of unrealised gains in 2023, mainly due to a rise in valuation for WasteFuel after an investment by BP. NAV is $122.2m. The share price fell 35.4% to 10.5p, which values I(X) Net Zero at £14.2m. There are plans to obtain a matched bargain facility though JP Jenkins.

There has been a poor start to the year for in-game advertising technology company Mirriad Advertising (LON: MIRI), but it hopes the second half will be stronger as newer business commences. First half revenues are likely to fall from £592,000 to £400,000. There were delays to the roll out of connected TV. Cost savings are coming through. The share price dipped 31.8% to 0.675p.

Interim figures from musicMagpie (LON: MMAG) reported a drop in revenues. According to the management this was partly down to changing the US business into a sourcing operation. UK technology sales were slightly higher. Disc and book sales were lower. Costs were reduced and the loss declined from £3.2m to £3m. Net debt was £13.8m at the end of May 2024. The company has diversified into buying branded fashion from people. The share price is down 17.2% to 6p.

FTSE 100 slips ahead of US inflation data, GSK tumbles

UK Investor Magazine
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FTSE 100 slips ahead of US inflation data, GSK tumbles

The FTSE 100 was lower on Thursday as investors prepared for a raft of vital US economic data set for release on Friday.

US PCE – one of the Fed’s key indicators of inflation – is set for release tomorrow alongside spending data. The instalments have the potential to set the tone for trade deep into next week.

There have been jitters in global stocks this week as investors asses just how long it will be until major central banks cut rates and provided a welcome boost to households and businesses.

The FTSE 100 was down 0.25% at the time of writing.

Sophie Lund-Yates, lead equity analyst, Hargreaves Lansdown, says the slow session for the FTSE 100 “follows a relatively choppy trading session in the US, ahead of President Joe Biden and Donald Trump’s closely watched debate in Atlanta later today. There’s also news of a marked slowdown in China’s industrial profits for May, adding fuel to concerns over a protracted slowdown in this important economy.”

Downbeat news from China inevitably weighed on the commodities sector which played a leading part in the weakness on Thursday.

“The FTSE 100 struggled to find direction as strength in energy and banking stocks was offset by weakness in pharmaceuticals, tobacco and mining,” said Russ Mould, investment director at AJ Bell.

GSK was the top faller after the US narrowed its age recommendation for the use of RSV vaccines. The development is the latest blow for investors who have recently been hit by news of cancer litigation in the US.

GSK shares were down over 5% on the day and have nearly erased all its gains for the year.

BP was marginally higher amid reports it was rolling back its push into clean energy by stepping down the pace of hiring.

“Reports suggest BP’s chief executive Murray Auchincloss is set to water down the company’s energy transition further and put a freeze on hiring,” Russ Mould said.

“Having replaced Bernard Looney, who unveiled the company’s net zero strategy to some fanfare at the start of 2020, Auchincloss had some space to make a more aggressive move in this direction.

“Poor recent share price performance had also put him under some pressure to take radical action with a diminished BP at risk of falling prey to a larger predator.”

BP shares were 0.9% at the time of writing.

AIM movers: Mercantile Ports debt restructuring talks continue and ex-dividends

Andrew Hore
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AIM movers: Mercantile Ports debt restructuring talks continue and ex-dividends

Mercantile Ports and Logistics (LON: MPL) has released 2023 figures slightly ahead of expectations. There was an impairment charge of £9.9m. The pre-tax loss fell from £12.1m to £11.4m. Debt restructuring discussions continue and this will firm up the financial position of the Indian port facility developer. An operating profit is forecast for 2024, but it would not be enough to generate a post-interest profit. Cavendish has a price target of 4.8p. The share price jumped 40.6% to 2.25p.

M Warner has increased his stake in Clontarf Energy (LON: CLON) from 3.13% to 5.98%. The share price moved up 29.2% to 0.0775p.

An independent report has confirmed that the Kertang prospect being developed by Longboat Energy (LON: LBE) in Asia has gross unrisked mean prospective resources 9.1tcf of gas plus 146mmbbls of non-gas liquids. Longboat Energy intends to run a farm out process with larger oil and gas companies. Consent has been received from the authorities in Norway for the sale of the joint venture stake in Longboat Japex Norge. The share price rose 17.3% to 23.75p.

Secure payments technology developer PCI-Pal (LON: PCIP) has settled all its patent litigation with Sycurio in the UK and US. The settlement is confidential. The removal of US court costs has led Cavendish to increase its June 2025 net cash figure by £800,000 to £4.8m. The share price increased 13.5% to 63p.

FALLERS

Vast Resources (LON: VAST) has received a notice of acceleration for its outstanding debt of $5.82m to A&T Investments. If it is not repaid by 26 September, then the lender will enforce the security given to it. The lender says that it is protecting its position and there are negotiations concerning debt standstill agreements. Vast Resources hopes to secure restructuring finance to pay the debt. The share price slumped 22.5% to 0.155p.

Sanderson Design (LON: SDG) is still finding the UK consumer market tough. Brand revenues have declined, and UK sales are 14% lower in the initial five months of the financial year. Manufacturing revenues are flat. Singers has downgraded its 2024-25 pre-tax profit forecast from £12m to £7.8m, which is not much higher than the figure for 2020-21. Net cash could fall to £10m. The share price slipped 19.5% to 82.5p.

Respiratory drugs developer Synairgen (LON: SNG) had better than expected net cash of £12m at the end of 2023. The lead asset is SNG001, and management needs to finalise a financing plan for the phase II study in mechanically ventilated patients in hospitals. Cost savings should enable cash to last into 2026. The share price declined 21.7% to 4.345p.

NAHL (LON: NAH) has been hit by reduced demand from lawyers for personal injury cases and the cost of acquiring cases is rising. Critical care trading is in line with expectations. Allenby has halved its 2024 pre-tax forecast to £2.1m, although it believes that this s a short-term matter. Debt will not reduce as rapidly as expected and net borrowings are forecast at £7.85m by the end of 2024. The share price slipped 13.6% to 57p.

Ex-dividends

BP Marsh (LON: BPM) is paying a dividend of 5.36p/share and the share price declined 2.5p to 517.5p.

Concurrent Technologies (LON: CNC) is paying a final dividend of 1p/share and the share price fell 1p to 103.5p.

Duke Capital (LON: DUKE) is paying a dividend of 0.7p/share and the share price dipped 0.25p to 31.25p.

Franchise Brands (LON: FRAN) is paying a final dividend of 1.2p/share and the share price fell 0.5p to 143.5p.

Panther Securities (LON: PNS) is paying a final dividend of 6p/share and the share price is 6p lower at 309p.

Serica Energy (LON: SQZ) is paying a final dividend of 14p/share and the share price slipped 14.95p to 137.15p.

Tatton Asset Management (LON: TAM) is paying a final dividend of 8p/share and the share price declined 14p to 670p.

Vertu Motors (LON: VTU) is paying a final dividend of 1.5p/share and the share price fell 2.25p to 74.25p.

Watches of Switzerland shares soar a demand for luxury watches rebounds

UK Investor Magazine
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Watches of Switzerland shares soar a demand for luxury watches rebounds

Watches of Switzerland shares soar as the company reported a modest increase in group revenue, helping to squash fears about slowing demand.

Sales hit £1,538 million, which represents a 2% growth at constant currency but remained flat at reported rates compared to the previous year.

Watches of Switzerland share price was 10% higher at the time of writing.

Investors have become nervy about demand for luxury watches and today’s results will go along way to dispel these fears.

The luxury watches segment, which accounts for 87% of the group’s revenue, showed resilience with a 3% increase in constant currency terms and a 1% rise in reported figures. This performance was particularly strong in the US market, where the company continued to gain market share.

Demand for key brands, especially products on the Registration of Interest lists, remained robust and outstripped supply.

However, the luxury jewellery segment experienced a decline, with revenue falling by 13% in constant currency and 14% in reported terms. Despite this overall decrease, the company noted an improvement throughout the year, with the fourth quarter of FY24 showing the best performance.

Luxury branded jewellery significantly outperformed non-branded jewellery during this period. This is the main driving force behind the gains in shares today.

The UK market, which has been particularly challenging, showed signs of stabilisation. UK and Europe sales were down 5% for the year, impacted by significant price increases and reduced consumer confidence affecting discretionary spending. The company expects these pressures to ease in the coming financial year.

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