Petro Matad (MATD), the AIM quoted Mongolian oil company provided an operational update. MATD said, “As we prepare for the 2025 operational season, our priority is securing revenue from the sale of Block XX oil. We were pleased to be informed today that the oil sales agreement negotiated with our neighbouring operator in Block XIX is approved and being prepared for sign off.
We are looking at the potential to sell cargoes ourselves in case of further delay but the oil sales agreement remains our preference.”
Comment: Although MATD is making positive noises, it is still the case that the company needs the kind of newsflow that will stop the shares being an ongoing sell into strength.
Deliveroo (ROO) published its preliminary full year results for the year ended 31 December 2024. GTV up 6% and revenue up 3% in constant currency (5% and 2%, respectively, in reported currency), with orders up 2% marking a return to growth; revenue growth lagged GTV growth as we made targeted CVP investments while keeping gross profit margin stable. ROO said “Over the past year, we have been relentlessly focused on making the Deliveroo experience even better. The robust results we’ve announced today, with our first full year profit and positive free cash flow as well as GTV growth across our verticals, demonstrate that our strategy is working.”
Comment: It seems to be the case that the market regards ROO as a company which is running to stand still, and that meaningful growth from current levels will be hard to achieve in the current environment.
Zenith Energy (ZEN), the listed international energy production and development company, confirmed that the Final Hearing in respect of the legal claim brought before the Paris Commercial Court by its fully owned subsidiary, Anglo African Oil & Gas Congo S.A.U against SMP Energies the rig contractor that performed drilling services in wells TLP-103 and TLP-103C of the Tilapia oilfield during 2018-2019, is due to take place on Friday March 14, 2025. ZEN said “It should be underlined for the sake of historical record that the fate of AAOG, a company once commanding a market valuation of circa £30 million and having AAOGC as its sole asset, was impacted in a determining way by these failures. We are hopeful that the Court will recognise the scale of the damages suffered by AAOGC.”
Comment: ZEN is firing on all cylinders as far as the legal claims it is fighting, something that it is carrying out rather more efficiently, and quickly than the handful of small caps on the London market in the same boat.
CAB Payments (CABP), a specialist in B2B FX and cross-border payments in hard-to-reach markets, announced its audited results for the twelve months ended 31 December 2024. The Group continues to execute on its four pillar strategy with early evidence of delivery coming through. CABP said “We have made solid strategic progress in our transformation journey with active client numbers growing 7%, volumes growing 7% while generating £16m in adjusted profit after tax for the year, in line with market expectations.”
Comment: CABP has been one of the more famous falling knives on the stock market, with false dawns all the way down from 150p plus. 35 years of stock market experience suggest that the “final” low will be just below 50p. That said, the “four pillar” strategy really sounds as naff as something from David Brent in The Office.
Arrow Exploration (AXL) announced the results of its 2024 year-end reserves evaluation by Boury Global Energy Consultants Ltd. AXL said “Arrow’s prospect inventory is multifaceted and demonstrates the hydrocarbon density of the Tapir block in the fertile Llanos Basin. Over the rest of 2025, we look forward to a successful drilling campaign on a fully funded $50MM capital budget that is balanced between development and low risk exploratory wells”.
Comment: It remains the case that AXL gets everything right apart from its share price, even as reserves soar and it is awash with cash. This was and is a difficult thing to do, but somehow the company has managed it. But at least at 17p the stock appears to be in bargain basement territory.
Savills (SVS) – Final Results. Group revenue up 7% (10% in constant currency), with operational leverage, principally in the Transactional Advisory business, driving 38% underlying profit growth (40% in constant currency). SVS said “Savills remains well positioned to deliver against the Group’s strategic objectives of broadening our offering to clients across geographies and service lines, supported by a strong balance sheet and thus driving profitability as market recovery continues.”
Comment: Although not quite as sizzling as the recent update from fellow smug estate agents Foxtons, SVS does remind us that rain or shine, this sector keeps those revenues coming in.
Georgina Energy (GEX), a helium, hydrogen and natural resources development company in Australia, advised that the team successfully arrived on site at EP513 Hussar on 11th March to complete the updated Environmental Impact Survey “EIS2″ and Heritage Reports to secure drilling approval. GEX said “The successful arrival on site of the Georgina team is a welcome development following the unforeseen weather-related delays. The completed EIS2 and cultural heritage survey will be lodged as soon as practical to secure drilling approval at EP513 Hussar.”
Comment: Ahead of today’s news it was the case yesterday that shares of GEX made their first proper foray above their 50 day moving average since listing. This suggests that the slack is finally out of the stock, as the company continues to announce operational progress.
Thor Energy (THR) announced that Go Exploration Pty Ltd, in which Thor has an 80.2% interest has successfully applied to convert the petroleum exploration licence (PEL 120) into a regulated substance exploration licence (RSEL 802) offered by the Department for Energy and Mining in South Australia.
Comment: Although still under the radar, THR is clearly moving itself along in terms of being a project developer, something which is at odds with the current market cap / share price.
Sovereign Metals (SVML) was notified that Sprott Inc. having increased its shareholding in the Company from 6.70% to 7.71% of the Company’s issued share capital, via on market trades between 6 September 2024 – 6 March 2025.
Comment: Shares of SVML were up 40% last year, and are already up 20% year to date, something which is likely to continue with news like today’s. If nothing else an entity of the kudos of Sprott reminds us how SVML really is a top class opportunity.
Hornby (HRN), the international hobby products group, announced the proposed voluntary cancellation of its shares from trading on AIM, and re-registration of the Company as a private limited company.
Comment: So how well are the authorities doing in terms of encouraging companies to get listed, and to remain listed? Despite all the talk, it would appear not very well. For Gen X, the departure of losing HRN from the stock market, is nearly as bad as going bald / having a pot belly.
GenIP (GNIP), a technology business providing Generative Artificial Intelligence (GenAI) services to help research organisations and corporations commercialise their innovations, provided a corporate update and outlook for the year ahead. GNIP said “I’m delighted to see GenIP’s solid commercial progress and global reach, which is a testament to the value our AI-enhanced solutions bring to the technology transfer market.”
Comment: Although relative newcomer GNIP is right on the money as far as being in the tech space of the moment, it will probably take rather more evidence of orders turning into cashflow to really get the share price moving.
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.
