Kier Group (KIE), an infrastructure services, construction and property group, announced that it will commence a share buyback programme to purchase up to a maximum consideration of £20 million.
Comment: With an order book of over £10bn, and being part of the Big State Gravy train, it is quite understandable that KIE is able to spend £20m on a share buyback. The company is famous for its prison work (at a time when the life-threatening ones are being released en masse), and via Kier Highways for fixing potholes via workers dancing on them.
https://www.bbc.co.uk/news/articles/c2egxrrj0zgo
Premier Foods (PFD) provides its Quarter 3 trading update for the thirteen weeks ended 28 December 2024. PFD said it was pleased to report another very good quarter of volume led branded revenue growth, accompanied by further market share gains, as its branded growth model continues to deliver well. Its Sweet Treats business had a particularly strong Christmas with branded sales up 8.9%; Mr Kipling sold 20% more mince pies this year, delivering its biggest ever quarter. Earlier this year, it said that consumers are starting to trade up and treat themselves more. This has continued over Christmas with its premium ranges such as Ambrosia Deluxe desserts, Bisto Best gravy and Mr Kipling Signature Brownie Bites performing strongly and its more than doubled the sales of our Mr Kipling Signature mince pies.
Comment: The star of the show here is clearly the Mr Kipling Signature mince pies providing much needed festive cheer. But at the same time the contribution of Ambrosia porridge oats should not be underestimated, with a 38% rise in sales in this new category. Presumably Quaker Oats will not be please at this new upstart, and can be expected to retaliate, perhaps via a price war.
Predator Oil & Gas Holdings (PRD), the Jersey-based Oil and Gas Company with near-term hydrocarbon operations and production focussed on Morocco and Trinidad is announce the completion by T-Rex Resources (Trinidad) Limited, a wholly owned subsidiary of Predator Oil & Gas Holdings Plc, of a strategic investment to acquire 51% of the issued share capital of CRL. CRL’S sole asset is a 100% interest in and operatorship of the Bonasse Field in the SW Peninsular, Trinidad.
Comment: Decent news for PRD fans today, although it has to be said that it is the big reveal regarding MOU-5 that should be the big catalyst for share price gains this quarter.
Serica Energy (SQZ) issued a trading and operations update in respect of the year ending 31 December 2024. Serica will issue 2024 full-year results on Tuesday 1 April 2025. The company said the outlook for 2025 is promising, with ongoing work to increase asset reliability and further positive results from the Triton drilling programme expected to boost production and help deliver material free cash flow. We demonstrated our commitment to shareholder distributions in 2024 and we expect substantial cash generation in 2025 to allow us to continue delivering material direct returns to our shareholders, while simultaneously continuing investment in our portfolio to unlock further value.
Comment: Shares of SQZ have already bounced well from their September lows, and today’s update looks strong enough for them to hold the 50% recovery we have seen. Indeed, above the 150p zone, a 200p target for the end of 2025 seems realistic.
Rome Resources (RMR), the DRC-focused tin explorer, is pleased to announce laboratory results from the latest drilling campaign at its Mont Agoma tin prospect located in the North Kivu province the Democratic Republic of Congo. RMR said it was extremely encouraged by the widths and grades of tin mineralisation intersected in holes MADD016A and MADD017 which confirms tin, copper and zinc mineralisation within the upper levels of the mineralised zonation model where lower grade tin is expected in association with high grade copper. The results from these last two holes significantly increases our confidence in finding high-grade tin mineralisation as new drilling moves to deeper levels.
Comment: The market continues to be ridiculously hard on RMR, despite the recent investment de-risking the company, along with grades and drilling where a very positive result looks baked in, and in short order.
Nostra Terra (NTOG), an international oil and gas exploration and production company focused on its Pine Mills producing asset in Texas, USA, said it has received notification from Bono Energy Group Ltd, has increased its shareholding to 157,750,000 shares (3.38%) as of 12 December 2024 from 87,750,000 as of 25 January 2024. Company total oil production is currently averaging approximately 120 bopd net. Production in Pine Mills averaged over 80 bopd in December 2024, confirming the 60% or 30 bopd increase in production first achieved in November of 2024.
Comment: NTOG has been a byword over the years for a company going nowhere in a hurry, and now and again raising cash from shareholders. The fact that it has finally found a small sugar daddy investor helps. However, your local Esso still has more of a turnaround that NTOG’s bopd.
SulNOx (AQSE:SNOX), the green decarbonisation company helping industry reduce emissions, lower fuel costs and meet sustainability targets, is pleased to announce that it has secured an important patent in Nigeria, its first in the significant fuel oil reclamation market. SNOX said this new patent and its different scope mark three important advances for SulNOx: its first intellectual property gained in fuel reclamation; an opportunity in the global maritime industry for tackling the specific area of slops; and greater recognition in Nigeria.
Comment: As well as greater recognition in Nigeria, which I am sure we are all jealous of, SNOX continues to demonstrate that it is one of the star companies on Aquis. While this may not be quite as flattering as it should be, with a £120m market cap, the shares up 10x in two years, and excellent, frequent newsflow, this could very well be a £1bn company in the not too distant future.
Coinsilium Group (AQUIS: COIN), the Web3 investor, advisor, and venture builder, is announced the appointment of James Van Straten and Clement Hecquet as strategic advisors to the Company. Their expertise will play a pivotal role in shaping and enhancing Coinsilium’s cryptocurrency treasury strategy, ensuring the Company maximises the potential of its crypto-treasury holdings and capitalises on emerging trends and opportunities in this dynamic market phase.
Comment: Companies like MicroStrategy (NASDAQ: MSTR), Semler Scientific (NASDAQ: SMLR) and Metaplanet (TYO:3350), have gone ballistic in the US off the back of a Bitcoin focused treasury strategy. With BTC now stable at $100k, and set to go higher in the new administration, COIN looks to be getting on the bandwagon at the right time.
Argo Blockchain (ARB) announced that Thomas Chippas is stepping down from his positions as Chief Executive Officer and Director effective 28 February 2025. Argo intends to engage an executive search firm to assist with the process of selecting a new Chief Executive Officer and will update the market in due course. In the interim, the Board has appointed Jim MacCallum, current Chief Financial Officer, as interim-Chief Executive Officer.
Comment: Given the recent slings and arrows at the company it is perhaps not too much of a shock that our Thomas is stepping down. That said, one would imagine that there are dozens of former Tory MPs, extreme sports enthusiasts, or those with hypophobia might consider sending in their CVs. One presumes that should BTC go high enough this would eventually turn ARB around.
Nativo Resources (NTVO), which has interests in gold mines in Peru, announced that it has entered into an agreement with Spartan Fund Limited to cancel the Company’s £1.0 million loan facility with the Lenders. In doing so, the Company has removed a substantial repayment pressure which would have fallen due next year, at a time when Nativo expects to be directing cash flows from gold mining activities in Peru into the planned gold processing plant and tailings cleaning activities. NTVO said this is an important development in improving the Company’s balance sheet and in doing so bringing on a supportive new shareholder. The willingness of the Lender to switch into a convertible loan format reflects their confidence in our business plan.
Comment: The shares continue to bounce off the bottom, and the company even has the odd die hard fan on X. Perhaps today’s news will finally mark the floor for NTVO…
Cooks Coffee (AQUIS:COOK), the international coffee focused café chain, provided a trading update, covering the Company’s Esquires (The Organic Coffee Company) branded franchised coffee focused systemwide stores in the UK & Ireland for the three months ended 31 December 2024, alongside an update for the nine months of the financial year to the same date. Nine Months to 31 December 2024: Group store sales up +26.2% at £25.5m. UK store sales up 33.8%, at £17.7m and Ireland store sales up 11.9% at £7.8m. Like-for-like sales: UK +2.8%, Ireland +5.1%.
Comment: The franchise model is great, the ability to flourish in a cost of living crisis also top notch. The only thing missing here is stock market engagement, and one or two people buying the stock.
Gulf Marine Services (GMS), a leading provider of self-propelled, self-elevating support vessels for the offshore energy sector, is pleased to announce a 171-day extension to an existing contract for one of its large-class vessels operating in the GCC. Following the award of this contract extension, the backlog stands at $483 million.
Comment: In terms of its order book GMS looks to be very much in the transition of going from being a small cap to a fully fledged player. The market cap of £150m is starting to look a little mean.
Premier African Minerals (PREM) announces that the proposed fundraising of £3.5 million through the issue of new Ordinary Shares by way of a placing and retail offer as announced on 16 January 2025 will not now proceed. The Board is considering a restructuring of the fundraising which might include a variation to the issue size along with alternative funding options and a further announcement will be made in due course. The Company’s financial position remains as previously disclosed.
Comment: After marching up the hill like the Grand Old Duke of York with the punchy £3.5m fundraise, we have a retreat worthy of the current Duke of York. It will be interesting to see how Mr Roach digs himself out of this one, as he now appears neither half way up or down.
BSF Enterprise (BSFA), through its 3D Bio-Tissues (3DBT) subsidiary, and Sartorius, a global leader in bioprocess solutions, have entered into a MoU. This strategic partnership aims to leverage the combined strengths of both companies, driving innovation and efficiency in the development of sustainable production methods. BSF said that combined with its innovative macromolecular crowder additives, this opens the door to cost-effective, sustainable production solutions for the alternative protein and lab-grown leather industries. This partnership has the potential to be a game-changer in achieving scalability at reduced costs.
Comment: Having been something of a stock market darling just a couple of years ago, it was disappointing to see the company drop the ball in an area which captures the imagination. Today’s news is solid enough to finally turn the tide for the company, and its share price.
Yü Group (YU.), the independent supplier of gas, electricity, meter asset owner and installer of smart meters to the UK corporate sector, is pleased to provide an update on trading for the financial year ended 31 December 2024. FY24 revenues grew c.40% and are expected to be approaching £650m (FY23: £460m). Delivery of FY24 EBITDA margin forecasted above expectations driven by strong contract profitability in H2 24, robust hedging policy and tightly managed bad debt. Net cash position of £80.2m (FY23: £32.1m).
Comment: A stunning update, and all the more so given the disdain that smart meters have acquired in recent years. However, it would appear that its chosen space in the utilities area is a massive gravy train, with great pricing power, and government net zero mumbo jumbo backing.
Jubilee (JLP), a diversified metals producer with operations in South Africa and Zambia, announce that regulatory approval has been granted for its new power supply agreement in Zambia, with power delivery commencing on 20 January 2025. This important milestone enables the Company to restart the Roan concentrator and ensures a stable power supply going forward.
Comment: After a period of when the company was apparently keen on oversharing negative news, the newsflow has turned around of late, something which should allow for the recent share price recovery off ultra low levels to continue.
Elementis (ELM), a global specialty chemicals company, issued its scheduled trading update for the three months and year ended 31 December 2024. Elementis will publish its results for the financial year to 31 December 2024 on 6th March 2025. The Group has delivered a strong fourth quarter performance, with continued revenue growth and double-digit profit growth across Coatings and Personal Care, compared with Q4 2023. As a result, adjusted operating profit for the financial year 2024 is expected to be in the range of $126-128 million, ahead of expectations, and significantly higher compared with the prior year (2023: $104 million).
Comments: Like many shares on the London market, even the blue chip ones, there was a Budget time related dip from which they are still recovering. Today’s update is just what the doctor orders for ELM shares to bounce back towards year highs through 165p.
KEFI (KEFI), the gold and copper exploration and development company focused on the Arabian-Nubian Shield, reported that the English High Court of Justice, King’s Bench, has handed down its judgement in relation to a case against the Company, detailed in the Company’s 2023 Annual Report, that dismisses all claims against KEFI and awards to KEFI all of its counterclaims. This was the last outstanding attempt in a string of threats of interference against KEFI, all of which have now been successfully dismissed.
Comment: Good news in court, but the bigger picture here is that the shares are still struggling and that funding news and project development are key here.
The MISSION Group (TMG), the Brand Performance Group, comprising of digital marketing and specialist communications Agencies, provides a trading update for the financial year ended 31 December 2024. The Group continued to see a resilient trading performance in the second half of the financial year across all segments. The Board therefore expects to report FY2024 revenue (operating income) of £88m (FY2023 +2%). The Group’s diligent cost control over the course of the year underpinned profitable growth with headline operating profit expected to be between £9.0m – £9.2m; up approximately 38% on the prior year and in line with market expectations.
Comment: Shares of TMG have already rocketed since the autumn, and quite rightly so, given the revelation in today’s stellar update. The market cap still under £30m appears humble to say the least.
SAE (SAE) announced it has received the final payment of £1.25m under its agreement with EL (Uskmouth) Limited, a subsidiary of FPC Electric Land. SAE said it would like to congratulate all those involved in getting this project to this significant milestone. We have been absolutely focused on achieving this milestone, as this will help us to unlock one of the most exciting battery storage sites in the UK and deliver on our strategy.
Comment: Given how much energy storage is supposed to be the new rock and roll, it is perhaps surprising that shares of SAE have cooled off since their brief summer spurt. Perhaps there is a new upswing due.
Gear4music (GFM), the largest UK based online retailer of musical instruments and music equipment, announced a trading update for the three months to 31 December 2024. 6% revenue growth represents further positive momentum in a challenging consumer environment. Strong gross margin at 28.1% (FY24 Q3: 28.2%; FY23 Q3: 25.6%) reflects continued pricing discipline. Gross profit of £13.7m (FY24 Q3: £13.1m) was £0.6m higher than FY24 Q3. FY25 EBITDA in-line with consensus market expectations.
Comment: It would appear that GFM has consolidated well since the bump it had during the pandemic, when everyone wanted to be Jimmy Page or Dua Lipa, or both. The strong margins are the highlight here.
hVIVO (HVO), a fast-growing specialist contract research organisation (CRO) and world leader in testing infectious and respiratory disease products using human challenge clinical trials, announces that hLAB, the Group’s standalone virology and immunology laboratory service provider, has signed a new £2.7m contract with a US-based biotechnology client bringing the total value of this project to date to £3.2m.
Comment: Given the stellar newsflow, such as today, as consistent buying by Octopus Investments, the sharp decline in the shares since the autumn remains something of a mystery. Perhaps a re-think on the market comms is due?
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.
