Tekmar Group (TGP) a second and more significant new contract is announced in as many months. A £3.5m contract for its flagship Generation 10 cable protection system (CPS) with associated ancillaries to be installed in an emerging region for offshore wind farm development. TGP is an established global market leader in the ‘mission-critical niche’, of protection systems for subsea cable, umbilical and flexible pipes bring used in wind-power. It seems the record order book reported at the Interims in June is being converted with 172 systems for the Dogger Bank Offshore wind farm as well as a $10m contract for a major subsea customer in the Middle East. For the six months to March revenue increased 36% to £17.7m with reduced losses to £1.8m from £3.2m. At the EBITDA level the management anticipate breaking even for the September year-end with Revenue at cir.£40m. It raised £5.2m in April 23 at 9p leaving net cash of circa £1.8m.
Comment: It has been a tough shareholder journey down from 60p in the last few years but at 10.25p and a Mkt Cap of £14m it seems to be wind powering forward.
RegTech Open Project (RTOP), the technology business specialised in the automation, management, and optimisation of regulatory compliance operations, provides the following financial and business updates. As at 31 December 2023 the Company had received £1,046,000 in funds from RegTech Open Project S.p.A. (a corporate entity ultimately beneficially wholly-owned by Alessandro Zamboni). RTOP said the Board continues to review and monitor the cashflow and working capital requirements of the Group on a prudent basis and is continuing to work on the mitigation of risks relating to delays in receipt of the outstanding sums under the Shareholder Loan Agreement. The Board continues to actively explore alternative financing options for RTOP should there be continued delays in receipt of outstanding principal under the Shareholder Loan Agreement.
Comment: It would appear that Mr Zamboni is front and centre at RTOP in terms of financing is concerned. More information on the business model / strategy of the company would be helpful in addition to the “mitigation of risks.”
Arrow Exploration (AXL), the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, an update on operations and provide guidance moving into 2024. The Company exited 2023 with a production rate exceeding 3,200 boe/d net. Arrow’s Board of Directors has approved the 2024 work program, which includes 15 wells and a $45 million net capital budget. The entire capex budget will be financed by current cash reserves and operating cash flow. AXL said its fully funded, low risk drilling program for 2024 continues to build momentum across its extensive portfolio. Arrow is poised to achieve significantly higher production and commensurate cash flow through the 2024 calendar year.
Comment: A very well written RNS today from AXL, reminding the market that it is on 3,200 barrels a day, and will be able to fund future expansion through cash reserves and operating cash flow. It is a shame the company has not so far been able to get the message out to the market, especially with the shares at a bargain basement 17p.
Inspiration Healthcare (IHC), the global medical technology company, announces the acquisition of Airon Corporation a specialist respiratory device company based in Florida, USA for a maximum consideration of $2.5m. The consideration includes an initial upfront cash payment of $1.5m plus an earn out of up to $1.0m dependent on the delivery of future revenues. IHC said the acquisition of Airon is an important strategic milestone for Inspiration Healthcare. The potential approval of the SLE6000 represents a significant commercial opportunity and Airon gives the Group an established direct presence and expertise in the USA, which will accelerate and de-risk its commercial strategy.
Comment: It is almost worth including IHC in today’s Hotlist, just because it will not exactly be high profile in terms of the RNS’s of the day. But the expansion into the USA does look at though it could move the dial on a fundamental basis, and for this to cause the shares to rebound back towards the summer’s 55p zone.
ANGLE (AGL), a liquid biopsy company was delighted to announce breakthrough results from DNA molecular analysis of cancer patient blood samples that provide a unique insight into the progression of each patient’s cancer and how this may be treated. AGL said today’s breakthrough is the critical next step post the FDA clearance to show in a sample-to-answer format the potential clinical value of NGS molecular analysis on a repeat basis of living cancer cells harvested from patient blood samples. ANGLE is committed to delivering transformational benefits to cancer patients through a simple blood test. This is a major step in this process.
Comment: The newsflow is certainly kicking in at Angle, something which the share price rebound has been hinting at over the recent past. The technical have been suggesting a journey for the stock towards 25p early in 2024.
Landore Resources (LND) announced that it has conditionally raised £600,000 before expenses by way of a placing at 2.4 pence per share. The company said despite a period of significant challenges and difficult market conditions, it believes the opportunity exists for the Company to reset its goals and restore value for shareholders. The Board of Directors are confident that it will have a year of progress in 2024, with its operational focus being on the Company’s highly prospective BAM Gold Deposit, seeking to bring the Resource to the development stage.
Comment: It is impressive that our friends at Novum have managed to get away a £600k fundraise in current stock market conditions, and for Landore, which did not have a great 2023. However, for 2024 with a board changes and the focus on BAM, shareholders may finally see a turnaround.
Destiny Pharma (DEST), a clinical stage biotechnology company, provided a year end business update. DEST said it was extremely excited by the potential of our products to reduce the emergence and impact of drug-resistant pathogens. Having successfully completed a deal with Sebela Pharmaceuticals for NTCD-M3 during 2023, it is continuing to progress its partnering activities, and discussions with multiple interested parties are ongoing.
Comment: Shares f DEST were up over 30% last year, all the more of an achievement given the state of the market, and London’s traditional aversion to biotechs. One would imagine the shares will d even better these year if today’s RNS is anything to go by.
i3 Energy (I3E), an independent oil and gas company, announced the publication of its 2022 ESG report on its website (www.i3.energy). The company said since 2021, during which period the scope and scale of its operations grew significantly and its production by over 23%, it is very proud to say that multiple initiatives and Company-wide efforts have managed to reduce its Scope 1 and 2 emissions intensity by 4%, and our emissions intensity remains below the average of our peers operating in Alberta on a CO2e/boe basis.
Comment: The green lobby may continue to bark re emissions and climate change, however, they are of course as reliant as much as anyone else on fossil fuels. Update like today from i3 at least underlines how much effort is being made on the ESG front.