All Things Considered Group Plc (AQSE: ATC), the independent music company, announced audited results for the year ended 31 December 2022. The company said profitability achieved, was ahead of expectations and materially ahead of prior year, with PBT of £0.01m (FY21: loss of £2.69m before IPO and related costs). The company said it was delighted with the progress made in its first year as a PLC, delivering 33% top line growth and profitability earlier than expected, whilst also investing in a number of important strategic developments for the Group.
Comment: If there were awards for companies under the radar on the stock market, ATC would certainly be a leading contender. But at least for those who have spotted this situation, 33% top line growth, and profitability earlier than expected is a decent one two punch to grab the attention.
TPXimpact Holdings (TPX), the technology-enabled services company, provided an update on its Q4 and full year trading for the year ended 31 March 2023 and to provide guidance for the full years ending 31 March 2024 and 2025. The company said trading for the fourth quarter of the year was at the higher end of previous guidance. With respect to FY25, management are targeting organic revenue growth of 10-15% and a further improvement in Adjusted EBITDA margin of 2-3% on top of that targeted for FY24.
Comment: We have a positive and punchy update from TPX, something one would assume could go a long way to reversing some of the post 2022 declines for the shares. Not many companies in the small cap space can place themselves at the higher end of guidance, or in particular call organic revenue growth of 10-15%.
Corcel (CRCL), the extractive industries exploration and development company, announced that it has agreed the sale of a 20% interest in its Mt. Weld Rare Earth Element project to Extraction Srl, an Italian private company controlled by Mr Antoine Karam, for cash consideration of AUD$1,000,000 payable by 31 May 2023. CRCL said it was delighted to announce this partial de-risking of its Mt Weld asset ahead of drilling results at the project. The company will now focus on its first transaction following its recent pivot to oil and gas.
Comment: Shares of CRCL have delivered a cautious recovery since the turn of the year, something which the latest de-risking news should help to underpin.
CleanTech Lithium (CTL), an exploration and development company advancing next-generation sustainable lithium projects in Chile for the EV transition, announced its audited Final Results for the twelve months to 31 December 2022. The company said it has advanced considerably in the past year, with the CEO, Aldo Boitano, looking to accelerate the path to commercial lithium production.
Comment: CTL has put a brave face on the potential headwinds in Chile, and it is interesting that even with this in the fundamental mix, the stock trading no worse than it was at the beginning of this year.
Alba Mineral Resources (ALBA) announced its Final Results for the year ended 30 November 2022. The company said it continues to be very bullish about the prospects for our 100% owned Welsh gold assets. Although the ongoing hiatus in the planned in-mine work activities at Clogau has been frustrating, it believes that it is finally approaching a conclusion to the current ecological permitting process and that the HRA, once concluded, can provide a framework for a more streamlined and efficient process for future permitting applications.
Comment: While the company may be bullish regarding its Welsh gold assets, the market apparently needs a little more convincing, something which may happen after the current permitting phase is over.
Cellular Goods (CBX), a UK-based skincare and wellness company providing premium consumer products formulated with lab-produced cannabinoids, announced its unaudited half-year results to 28 February 2023. Despite industry headwinds, it has benefitted from a positive sales momentum in the first half that has continued into the second half. In combination with a significant rationalisation of our cost base and cash burn, it has defined a path to drive its brand business forward.
Comment: One can almost feel the pain the company has been through since it listed in the heady days of the pandemic bubble. It would appear that the story is still all about improving sales and cutting costs.
Alien Metals (UFO), a global minerals exploration and development company, announced it has renegotiated its agreement, with Mallina Exploration Pty Ltd, to fast track the acquisition of the E 47/3752 tenement that adjoins its flagship Hancock Iron Ore Project and provides direct strategic access to the Great Northern Highway. The company said it was pleased to announce that it has successfully brought forward and concluded the acquisition of the Mallina tenement consolidating our tenement holding in and around Hancock. Fast tracking this provides it with a strategic advantage in progressing its project timeline and additionally provides further exploration upside, allowing it to expand the footprint of known targets.
Comment: Shares of UFO have been pushing higher in recent days, ahead of the latest news, which should be regarded as solid enough to continue the improvement we have seen.
Bens Creek Group (BEN), the owner of a metallurgical coal mine in North America, confirm that a second highwall miner has arrived, been assembled and has commenced operating. The company said that while it is obviously disappointed that it wasted considerable time with a highwall miner which proved to be unusable, it is delighted at the speed with which Mega HWM have moved to correct the problem. It is now in the position to advance quickly to full production and deliver on our commitment to our shareholders.
Comment: Fans of Bens Creek will be hoping that the now clear path to full production will be a catalyst to turn the share price around after its year on the back foot.
Kavango Resources (KAV), the Southern Africa focussed metals exploration company, provided a corporate update. Kavango confirmed it is in late-stage discussions for a potential exclusive 2-year option to acquire a gold exploration and development project in Zimbabwe. It also said In parallel to the new acquisition discussions, it has been in discussions with a single investor concerning a possible £6,000,000 conditional equity investment into the company via a non-brokered direct subscription.
Comment: Judging by the share price trajectory of the past 18 months, KAV shareholders are looking for the company to deliver a decent fundamental inflection point, something which may come in the wake of the latest update from the group.
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.