AQUIS STOCK EXCHANGE
Better news for Incanthera (INC) this week. The dermatology technology developer has an agreement with the entity that claimed patent infringement relating to the Skin + Cell range. The agreement confirms no patent infringement. This had been delaying the launch of products, which are in stock. The focus will be generating cash from this stock. The deal with Limeway Pharma Design has been terminated and the two firms will cross licence patents on a royalty free basis. The development of the treatment for skin solar keratosis and prevention of skin melanoma can be done independently.
Prize draws operator Good Life Plus (GDLF) generated revenues of more than £3.7m in the year to January 2025. Monthly recurring revenues are £420,000. Subscriber numbers exceed 40,000. March 2025 is set to be a record month. Increased costs mean that there will be an operating loss of £4.3m. The Instant Wins product was launched in February 2025.
Residential developer Zentra Group (ZNT) reported a fall in interim revenues from £9.15m to £1.97m. Even so, the loss was reduced from £1.94m to £66,000. Net debt was £11.2m at the end of 2024. This year there is a focus on selling existing developments and plots.
Frozen seafood wholesaler Supersearch Plus (SUP) raised £279,000 at 10p/share ahead of flotation on the Aquis Growth Market on 25 March. The share price rose to 15p. The Hong Kong-based company supplies more than 50 types of fish product.
Marula Mining (MARU) has approved a five-year budget for the 80%-owned Kilifi manganese processing plant. This should generate pre-tax operating project cash flow of $63.5m and $43.4m post-tax. The period starts in April. Environmental authorisation has been obtained for the Blesberg lithium and tantalum mine in South Africa. A deposit of £510,000 and a social labour plan and black economic empowerment transaction are required to receive the ten-year mining right. An environmental assessment is ongoing at the Kinusi copper mine in Tanzania.
Metals recycling services provider Majestic Corporation (MCJ) improved revenues from continuing operations improved by two-thirds to $49m in 2024. There was a 43% increase in recycled metals to 43,000 tonnes. The full results will be published in late May. Growth is continuing into this year.
Arbuthnot Banking (ARBB) increased loans by 2% to £2.4bn in 2024. Trading was tougher last year, and pre-tax profit fell from £47.1m to £35.1m. Total dividend were 69p/share, including a 20p/share special dividend. NAV is 1636p/share.
Investment Evolution Credit (IEC) has withdrawn its offer for Credit Canary. There could still be a collaboration.
Heart health products developer ProBiotix Health (PBX) has signed a new partnership agreement with TopHealth in South Korea. TopHealth has the right to sell consumer products using ProBiotix Health, including the import of CholBiome X3.
Cryptocurrency app developer Tap Global Group (TAP) increased interim revenues by 39% to £1.8m and it moved into a positive EBIDA of £324,000, while practically breaking even after tax. There was £890,000 in the bank at the end of 2024 and another £1m has been raised since then. Third quarter revenues are expected to be £920,000.
In the six months to December 2024, Lift Global Ventures (LFT) reported a dip in revenues from £280,000 to £205,000. There was a swing from a pre-tax profit of £82,000 to a loss of £6,000. The core investor relations business was profitable.
BWA Group (BWAP) has completed preliminary exploration at Nkoteng 2 and Dehane 3 heavy mineral sands prospects in Cameroon. Results are pending on 28 samples.
Richmond Hill Resources (SHNJ) has raised £289,000 at 0.65p/share. This will be spent on due diligence for natural resources projects.
Janus Henderson has taken a 5.04% stake in Invinity Energy Systems (IES).
JP JENKINS
Former AIM companies Biome Technologies (BIOM) and CMO Group (CMO) have both started trading on JP Jenkins.
On Friday, Corre Energy (CORRE) joined JP Jenkins. Corre Energy develops millisecond to multiday long duration energy storage. This business has been built up over more than one decade.
AIM
Wines retailer Naked Wines (WINE) has outlined plans to build up its cash, partly by reducing inventories, and return to annual revenue growth of 5%-10%. Cost cutting and focusing on the core members will help to improve EBITDA to more than £10m. If the strategy is successful, cash could reach £100m by 2030 and some of this could be returned to shareholders. In the short-term revenues will decline as the company focuses on the profitable base rather than chasing revenues.
Financial website operator ADVFN (AFN) plans to cancel its AIM quotation. The board believes that the current share price and poor liquidity mean that it is difficult to make acquisitions. There are plans to organise a matched bargain facility with JP Jenkins. Interim revenues fell from £2.29m to £2.02m, although a reduction in admin expenses meant that the loss was lower at £453,000. There is £3.5m of cash. The share price slumped 57.7% to 5.5p.
Michelmersh Brick (MBH) revenues fell 9% to £70.1m, while pre-tax profit declined from £15.1m to £10.3m. The construction market conditions remain weak, but there should be some recovery this year.
Direct-to-consumer retailer Virgin Wines (VINO) has set out its growth strategy. The focus is gaining more customers and utilising technology to enhance engagement. There will be additional growth from commercial partnerships. The Warehouse Wines brand will be grown following its recent launch. The strategy will lead to higher costs initially. There are plans for share buybacks.
Telematics company Microlise (SAAS) reported an increase in revenues from £71.7m to £79.5m, while pre-tax profit improved from £5.6m to £6.5m. Annualised recurring revenues were 9% ahead at £56.6m. Net cash is £11.4m. There could be further improvements in margins as more rollouts are won.
Floor tiles manufacturer AIREA (AIEA) is on course to open its new facility later this year and that will double capacity. Last year’s revenues were flat at £21.2m following a stronger second half. The reported pre-tax profit slumped from £1.4m to £63,000, after £911,000 of one-off charges. Net cash is £1.16m with additional capital spending for the new facility coming this year. The chairman and finance director both subsequently acquired shares. International growth can be accelerated when there is more capacity.
Time Finance (TIME) continues to grow its loan book and nine months revenues are 14% higher at £27.3m. Pre-tax profit jumped by two-fifths to £5.9m. Net tangible assets are £43m. Bad debts remain low at 1% of the average loan book and net arrears are 5% of the gross lending book.
Cannabis medicines developer Celadon Pharmaceuticals (CEL) chief executive and 39.5% shareholder intended to propose the removal of the chairman and four non-executive directors at a general meeting. This is because they oppose his wish to leave AIM. The four non-executives have resigned and there will be a general meeting to propose the AIM cancellation. If this resolution passes, the chairman will resign, and JP Jenkins is likely to provide a matched bargain facility.
Woodbois Ltd (WBI) has raised £2.65m at 0.05p/share. Every two shares come with a warrant with a subscription share price of 0.125p. There are also two options for a total subscription of £650,000. The timber supplier needs the cash because it had to pause production, and it would have been insolvent. Money will be spent on maintenance and paying overdue creditors. The accounts will be brought up to date so an audit can be completed. Financial systems will be improved, and Jonna Cortez will become finance director and Mark Edworthy joint chief executive as part of the requirements of the providers of the investment. A repayment schedule has been agreed with Nykredit Bank.
Insurance and employee benefits provider Personal Group Holdings (PGH) grew revenues of continuing operations by 13% to £43.8m. Both the insurance and employee benefits divisions made progress with annualised recurring revenues reaching £43.4m. There is cash of £27.4m, which is £17m more than regulatory and group requirements. This enables the dividend to be raised from 11.7p/share to 16.6p/share and Canaccord Genuity has raised its earnings expectation for 2025 from 19p/share to 19.7p/share. Investment in new insurance products and the employee benefits platform hapi will help to drive further growth over the long-term. The deal with Sage has been extended.
Education software and services provider Tribal Group (TRB) had an improved second half, but there is continued uncertainty about the UK education sector and investment. There is also a switch in focus from perpetual licences to a subscription revenues model. In 2024, revenues improved 6% to £90m with cloud revenues increasing by one-quarter to £10.4m. Pre-tax profit dipped from £6.4m to £5.9m. Net debt was reduced to £5.2m. This year’s trading has started positively but it might be difficult to grow revenues in 2025.
Staffing company Empresaria (EMR) is focusing on its core operations in the UK and US, particularly IT and healthcare, and intends to dispose of more non-core operations. Those businesses made just over 50% of operating profit before central overheads and could raise enough to wipe out net debt of £15.3m. In 2024, group revenues dipped 2% to £246.2m and net fee income was down 12% to £50.4m. There was a slump in permanent recruitment income. Underlying pre-tax profit fell from £3.5m to £2.2m. There are no signs of an upturn in the recruitment market.
Diagnostics company Abingdon Health (ABDX) improved interim revenues by 28% to £3.1m, including four months from CS Lifesciences, and second half is stronger than expected. Contract development income was weak in the first half due to deferral of decisions, but new business has been won. Full year revenues are expected to rise from £6.1m to £8.5m, but Zeus has raised its forecast loss from £1.5m to £2.7m. Profitability is not expected until 20262-27.
Ariana Resources (AAU) has raised £1.05m at 1.5p/share, which will provide working capital and to invest in the Dokwe project in Zimbabwe. Ariana Resources is unusual for a small AIM mining company because it rarely issues shares to raise money. This money will last until July when additional should be secured. Developing the Dokwe project, which is estimated to host 1.4 million ounces of gold at a cut off of 0.3g/t, could require $82m of funding.
LifeSafe Holdings (LIFS) has signed a global distribution agreement with Hurst Jaws of Life and Vetter, which are subsidiaries of IDEX Fire & Safety. The initial term is 18 months and covers LifeSafe industrial fire prevention products into the professional fire sector. This could generate more than £6m in revenues over three years though access to new countries and markets. An initial order of £400,000 is anticipated.
Oil and gas producer Parkmead Group (PMG) reported a dip in interim revenues from £3.4m to £2.1m. There was a net cash outflow of £100,000. There is cash equivalent to 6.3p/share. The sale of UK North Sea licences to Serica Energy (SQZ) should complete in the second quarter. That leaves gas production in the Netherlands and an operating wind farm in Scotland. Parkmead is reviewing acquisitions.
MAIN MARKET
LED lighting and wiring accessories supplier Luceco (LUCE) beat expectations for 2024 by a small margin. Like-for-like revenues were 5.8% higher in a declining market. Pe-tax profit improved from £24.9m to £21.2m on revenues of £242.5m. The dividend was edged up to 5p/share. Acquisitions have pushed up net debt to £67.9m. There was also an increase in working capital due to strong sales in December.
Structural steel supplier Severfield (SFR) says chief executive Alan Dunsmore is stepping down at the end of June. Profit is set to decline in the year to March 2025 and fall again next year.
Andrew Hore
