AQUIS STOCK EXCHANGE

Shepherd Neame (SHEP) grew annual revenues by 10% to £166.3m, while underlying pre-tax profit was 4% ahead £7.6m. The full year dividend has been increased from 18.5p/share to 20p/share. NAV is 1205p/share. Like-for-like owned pub sales were 13% higher. Drink sales were particularly strong with food sales more modestly ahead. Within the M25 the growth is even higher at 31%. Tenanted pubs like-for-like income grew a more modest 4%. Brewing volumes fell and this decline has accelerated in the early weeks of the new financial year.

Global Connectivity (GCON) still owns 15% of Rural Broadband Solutions. There was £33,000 in the bank at the end of June 2023 and the repayment of an intercompany loan should bring in £550,000 over the next 18 months. Running costs have been reduced by more than one-third. Investments will be sought for the holding company.

EDX Medical (EDX) is acquiring Hutano Diagnostics for an initial 9.09 million shares at 11p each. This will increase the number of diagnostic tests that can be offered by the group. The tests are better than their lateral flow equivalents.

Chapel Down (CDGP) increased interim revenues by 21% to £8.4m and the momentum has continued. Net cash was £1.2m at the end of June 2023. A good grape harvest is expected. Full year revenues are expected to rise from £15.6m to £18m, but pre-tax profit would be flat at £1.7m. Management is considering a move to AIM. NAV is 60p/share.

Music artist representation and services company All Things Considered (ATC) increased underlying revenues by two-fifths to £3.39m. The main growth came from the management and live events businesses. The underlying loss was slightly lower at £700,000. The figures exclude one-off services revenues in 2022. Net cash was £890,000 at the end of June 2023. Since then, £4.18m was raised to fund the purchase of 60% of Sandbag, which added additional clients.

St Mark Homes (SMAP) increased its interim loss from £171,000 to £1.2m, mainly due to a large loss at a joint venture. The housebuilder has been hit by supply delays and inflation. Subcontractor insolvency has further delayed projects in London.

KR1 (KR1) had net assets of 51.12p/share at the end of June 2023, but this fell to 42.5p/share at the end of August.

Bitcoin miner Vinanz Ltd (BTC) has increased its bitcoin holding from 5.01 BTC to 7.84 BTC since flotation in April.

Vanadium flow batteries supplier Invinity Energy Systems (IES) reported a higher than forecast interim loss as gross margins fell. The full year forecast loss has been increased to £27.4m. An order from the US Department of the Environment is for six installations totalling 84MWh, but the installation will not be until 2025. Cash is flowing out of the business and more may need to be raised next year.

Cooks Coffee (COOK) is appointing administrators to its Triple Two coffee shop franchise business. There are currently eleven stores, which are trading poorly. The Esquires chain is trading well.

Wishbone Gold (WSBN) had cash of £428,000 at the end of June 2023. Since then, £1.42m was raised at 2.4p/share. Further results from the drill programme will be released in the second half.

Cadence Minerals (KDNC) reduced its interim loss from £5m to £2m. There was £577,000 in the bank at the end of June 2023.

Gowin New Energy (GWIN) still has no revenues and the interim loss increased. A director has loaned £15,000 to the company.

Marula Mining (MARU) has agreed to acquire a 75% stake in ten graphite licences in Tanzania. Net debt was £3m at the end of June 2023.

Coinsilium (COIN) group revenues fell by nearly three-fifths, but the loss reduced from £1.2m to £104,000. There is £1.07m of crypto assets and cash of £608,000.

Guanajuato Silver (GSVR) revealed an upgraded mineral resource estimate for the San Ignacio mine. The estimate is 790,000 tonnes at 123g/tonne silver and 2.1g/tonne gold. The silver equivalent of estimated resources is increased by 35%.

SulNOx Group (SNOX) has secured a Eurasian patent for a range of formulisations of its emulsifiers. Lord Nicholas Fairfax acquired 28,000 shares at 20.44p each.

NFT Investment (NFT) had net assets of 3.04p/share at the end of September 2023. That includes £400,000 of cash, £3.9m of investments and £26.3m of cryptocurrency and tokens.

Walls and Futures REIT (WAFR) had net assets of 89p/share at the end of March 2023. The value of investment property fell by 9%.

Equipmake (EQIP) has been awarded a £1.75m contract by Big Bus Tours to repower its fleet of London buses using its zero emission drivetrain system.

ProBiotix Health (PBX) improved interim revenues from £302,000 to £552,000, while the loss doubled to £512,000. There was £1.95m in the bank at the end of June 2023.

Quantum Exponential Group (QBIT) has opened a European office in Copenhagen. Denmark is major player in quantum technology and will provide more opportunities for investment.  The company has also been awarded a six month advisory contract to examine private investment in quantum technology by the UK Department of Science, Innovation and Technology.

Looking Glass Labs (NFTX) is consolidating 75 shares into one new share.

AIM

Floorcoverings distributor Likewise (LIKE) grew interim revenues by 17% to £66.6m in a declining market. However, the cost of increasing capacity meant that the profit was lower. The focus is organic growth and there is warehouse capacity in place to achieve the company’s annual revenues target of £200m. Full year pre-tax profit is expected to slip from £2.6m to £2.5m before recovering to £3.5m next year.

Cannabis-based ingredients and medicines developer Celadon Pharmaceuticals (CEL) says that it will start supplying its two major customers before the end of the year. It also hopes to sign up a partner to finance the trial of a cannabis-based alternative to opiates. The LVL pain relief trial will cover up to 5,000 patients and could take up to three years, although it should not be that long. Canaccord Genuity expects the trial to last 12-18 months from its launch, which could be in the first half of next year. The interim cash out flow from operating activities was £3m. Cash was £1.6m at the end of June 2023.

In the year to June 2023, Transense Technologies (TRT) revenues were one-third higher at £3.5m, while pre-tax profit jumped from £268,000 to £1.09m. This indicates the operational gearing of the business. All three parts of the business increased revenues with the iTrack tyre pressure sensors still generating the most revenues. The profit was achieved after a £662,000 operating loss, down from £821,000, by SAWSense, which is still developing products and partnerships with potential customers. Net cash declined from £1.06m to £978,000 by the end of June 2023. That was due to share buy backs and these are going to continue as an alternative to dividends.

PCI-Pal (PCIP) has defeated the UK patent infringement suit brought by Sycurio. The UK High Court ruled that Sycrio’s patent was invalid and PCI-Pal’s Agent Assist product would not infringe the patent if it were valid. The US case is continuing. This will help to reassure investors who have been cautious about the secure payments company because of the legal uncertainty. The company is on course to move into profit in the year to June 2024.

In-game advertising platform Bidstack (BIDS) have licenced technology to a new company called VST, so that it can raise cash for its funding requirements. Bidstack chief executive James Draper and executive director Lisa Hau have set up VST, which is paying Bidstack a licence fee of £1.5m for the provision of technology for worldwide use for sports leagues and teams in virtual stadiums. Camila Franklin has stepped down from the Bidstack board after 12 months. Bidstack had £2.08m in cash at the end of June 2023. Revenues will fall short of expectations this year.

MS International (MSI) has won a contract with the US Navy through its US-based subsidiary. The $23.5m contract is for the supply of Mk38 MOD4 gun mounts, which will be delivered by the end of 2024. This follows another longer-term US Navy contract announced at the beginning of September.

Cameroon-focused oil and gas company Bowleven (BLVN) is still awaiting completion of the sale of a 37.5% interest in the Etinde project by New Age. Regulatory approval is required, and it is uncertain if the deal will go ahead and this means greater uncertainty for Bowleven, which has an interest in the project. Bowleven has $1.25m in cash and will need to raise more by the first quarter of 2024.

Bradda Head (BHL) has updated its mineral resource estimated for the Basin sedimentary lithium project in Arizona. It has been raised by 192% to total contained lithium carbonate equivalent of 1,085kt. The grade has increased by 30% to 990ppm. This triggers a $2.5m royalty payment from Lithium Royalty Corp.

ZOO Digital (ZOO) has been hit by industrial action in the film and TV sector and changing spending patterns by clients. This means that 2023-24 revenues are likely to more than halve to $44m and the loss could be $13.8m. Net cash would reduce to $8m. Cost reductions should help the company to move back to profit next year.

Shield Therapeutics (STX) has secured $20m of debt and it is raising $6.1m from a share issue with up to $1.4m to come from a REX retail offer. The shares are being issued at 8p each and the offer closes on 4 October. Accrufer prescriptions numbers are growing, but it will take until late 2024 at the earliest for the company to reach cash breakeven. Monthly cash burn is currently $3.3m.

Although restaurants operator Tasty (TAST) improved like-for-like revenues by 1.4%, cost inflation meant that the pre-tax loss increased from £2.66m to £6.24m. There was also the loss of Covid relief and the provision for poorly performing sites was £4m, compared with £1.6m last time. This led to a cash outflow and net cash reducing to £2.8m.

A strong performance in Brazil offset delayed demand in the US for Plant Health Care (PHC) with interim revenues 1% ahead. Management believes that US demand will recover in the second half. A small loss is expected for 2023, based on a stronger second half, and Cavendish still expects a move into profit in 2024.

Inland Homes (INL) has been placed in administration with FRP Advisory.

MAIN MARKET

There is a bid battle for motor dealer Pendragon (PDG) and the latest entrant into the field is AutoNation Inc, which is offering 32p/share. It appears that the deal to sell the core motor business to North American automotive retailer Lithia Motors for £250m and concentrate on the software business may need to be improved if it is to go ahead. Management is considering the AutoNation Inc offer, as well as a revised offer of 32p/share from Hedin Mobility and PAG International – the original offer of 28p/shares was rejected.

Andrew Hore