Homepage

-

04/07/2022

Alteration Earth is seeking an acquisition in the clean technology or energy sectors. The plan is to do this within 24 months of admission and the deal would need to make the enlarged group worth a minimum of £30m.
There was a seed round and a subscription, so the average issue price is 7p. Pro forma net assets are 6.1p a share. The share price ended the first day of trading at 30p, but the bid offer spread was 10p/50p. According to investegate.co.uk there were 570 shares traded.
The lack of liquidity in the shares means that they are not an attractive investment for the time being.
==========...

Aquis weekly movers: Chapel Down marketing boss leaves

AQUIS
Shares

-

04/07/2022

1

Aquis weekly movers: Chapel Down marketing boss leaves

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.

==========

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.

AIM weekly movers: MySale share price nearly trebles on Fraser stake buy

Shares

-

03/07/2022

AIM weekly movers: MySale share price nearly trebles on Fraser stake buy

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.

==========

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.

FTSE 100 trades sideways after dismal June

Shares

-

02/07/2022

FTSE 100 trades sideways after dismal June

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.

The best and worst performing stocks in the S&P 500 this year…

Data via @ycharts pic.twitter.com/tLi5KCGyBx
— Charlie Bilello (@charliebilello) June 30, 2022

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.

AIM movers: Gyllenhammar buys Rurelec stake, plus MySale, Itaconix, BlueRock Diamonds

Shares

-

01/07/2022

AIM movers: Gyllenhammar buys Rurelec stake, plus MySale, Itaconix, BlueRock Diamonds

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 agrees 3-year extension to AstraZeneca Covid-19 vaccine deal

News
Shares

-

01/07/2022

Oxford BioMedica agrees 3-year extension to AstraZeneca Covid-19 vaccine deal

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 completes £667m businesses divestment to Cargill

News
Shares

-

01/07/2022

Croda completes £667m businesses divestment to Cargill

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.”

Block Energy narrows losses on enlarged assets portfolio

Shares

-

01/07/2022

Block Energy narrows losses on enlarged assets portfolio

Block Energy shares were up 0.6% to 1.5p in early morning trading on Friday after the firm announced a revenue growth to $6.1 million from $1.2 million in FY 2021.

The group reported a swing back to gross profit of $231,000 compared to a loss of $3.2 million in the previous financial year, alongside an operating loss of $4.7 million against $5.6 million.

Block Energy highlighted a pre-tax loss for the year of $4.7 million from $5.5 million year-on-year, and a narrowed diluted loss per share of 0.7c from 1.3c the year before.

The company mentioned its successful integration of its SRCL assets acquired from Schlumberger and its definition of an asset wide field development and production enhancement plan in its highlights for the financial period.

The firm confirmed it completed several objectives on its FY 2021 roster, including fully integrating its technical database, following its completed acquisition of SRCL, and the completion of a risking and ranking process focused on short-term drilling and production enhancement opportunities across its enlarged portfolio.

It further defined a two-well drilling programme consisting of a new horizontal well, which was designed to appraise areas of low fracture density in the XIF license and a side track of an existing well in the newly acquired XIB license.

Block Energy also noted its simultaneous execution of a workover programme to reverse the natural decline of its baseline production.

“The Company swiftly integrated and advanced the appraisal and development opportunities throughout its enlarged portfolio in 2021. It also delivered on a key milestones, including commencing gas sales and execution of a multi well drilling campaign,” said Block Energy CEO Paul Haywood.

“This relentless drive to advance the Company and maintain consistent momentum has placed it in a stronger position to continue to create value for all shareholders in the current year. The planned three project strategy is designed to efficiently deploy existing cash reserves into further development drilling, throughout the XIF and XIB licenses.”

“This, combined with our enhanced understanding of the subsurface and the Company being profitable, sets the stage for what we forecast to be a rewarding year and we look forward to updating shareholders on short and medium term milestones as we advance.”

Zanaga Iron Ore records $1.8m loss in FY 2021

Shares

-

01/07/2022