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UK EARNINGS SUMMARY: Hydrodec Forms Joint Venture As Refinancing Nears

Thu, 1st Oct 2020 16:25

(Alliance News) - The following is a round-up of earnings updates by London-listed companies, issued on Wednesday and Thursday and not separately reported by Alliance News:



Hydrodec Group PLC - cleantech industrial oil re-refining - Shares suspended from trading Thursday after fails to publish 2019 results by Wednesday. Says travel restrictions between US and UK have hindered audit but hopes to publish results for 18 months ended June 30 by end of December. Says trading conditions remain challenging, amid working capital constraints, with cost cut being made in response. After months of talks with a number of potential funders, says has agreed outline terms with one party for a refinancing package, with the expectation of this being completed in the near future. Until then, remains dependent for funds on major shareholder Andrew Black, who has lend USD3 million in cash since June 2019. "COVID-19 has brought unique challenges to our operating environments and, in addition, working capital constraints, by necessity, have had a material impact on our ability to source feedstock, which in turn drives volume, margin and overall financial performance," explains Chief Executive Officer Chris Ellis. More positively, agrees joint venture with a US industrial recycling company with the aim "to create a market leading re-refining business in the US". The JV will use part of Hydrodec's Canton, Ohio facility and take advantage of the unnamed partner's access to utilities.



M&C Saatchi PLC - London-based ad agency - Shares suspended from trading Thursday after fails to publish 2019 results by Wednesday. Says audit process is in final stages and is expected to be complete in "a matter of weeks". Also expects issue half-year results to June 30 before end of October.



Windar Photonics PLC - Denmark-based technologies that optimise the energy output of wind turbines - Shares suspended from trading Thursday after fails to publish 2019 results by Wednesday. Says attempting to complete audit and publish accounts as soon as possible. Separately, says signed exclusivity agreement in China with unnamed distributor and has received an initial order from this for 50 WindEye sensors for wind turbines. Says agreement with distributor is for 12 months with a non-binding sales target of 400 WindEye systems. Says Covid-19 has caused delivery postponements, but 2020 has been a good year for order intake, with order value for 2020 delivery already more than double that of 2019 revenue.



Malvern International PLC - London-based learning and skills development - Shares suspended from trading Thursday after fails to publish 2019 results by Wednesday. Says aiming to issue accounts next week. Also is using one-month extension for interim 2020 results, with the new deadline October 31.



Tri-Star Resources PLC - minerals processing - Shares suspended from trading Thursday after fails to publish 2019 results by Wednesday. Said in early September it would take advantage of a one-month extension for its 2020 half-year results, with the new deadline being October 30.



Clear Leisure PLC - investment company - Shares suspended from trading Thursday after fails to publish 2019 results by Wednesday.



Arc Minerals Ltd - exploring for copper and cobalt in Africa - Gets extension for filing accounts for financial year that ended March 31 to December 31. Says cash position at end of September was GBP1.3 million. Says maiden diamond drilling programme at the Fwiji target in north west Zambia continuing as planned. Assay results from soil samples from Zamsort and Zaco license areas are expected shortly.



Downing Two VCT PLC - venture capital trust - Reports results for half year ended June 30. Total return per 'F' share 90.8 pence, down from 97.6p year before. Net asset value 18.8p, down from 21.6 on March 31. Total return per 'G' share 87.6p, down from 100.7p year before. NAV 34.1p, down from 36.0p on March 31. Total return per 'K' share 44.1p, down from 72.9p year before. NAV 36.6p, down from 50.3p on March 31. Interim dividend per K share will be 2.5p. "With significant exposure to the hospitality sector, the coronavirus pandemic has unfortunately further impacted a number of the portfolio companies," Chair Hugh Gillespie says, adding: "The further losses of value on all pools since the valuation at 31 March 2020 are extremely disappointing. Although there is the possibility of recoveries in value, the recent increase in coronavirus infections in the UK may further harm the sectors in which many of the portfolio companies operate and could result in further losses." Says considering putting forward proposals to wind up as does not expect to raise any new funds.



Downing Three VCT PLC - Reports results for half year ended June 30. Total return per 'F' share 90.5 pence, down from 97.3p year before. Net asset value 18.5p, down from 21.3 on March 31. Total return per 'H' share 58.3p, down from 73.5p year before. NAV 23.3p, up from 22.3p on March 31. Total return per 'J' share 45.1p, down from 70.8p year before. NAV 37.6p, down from 43.8p on March 31. Interim dividend per H share will be 4.5p and 10.0p per J share. Like Downing Two, hurt by exposure to hospitality sector and also considering winding up as won't be raising new funds.



Catena Group PLC - asset management - Total comprehensive loss GBP272,204 in six months ended June 30, widened from GBP15,258 loss year before, as lockdown and school closures in UK create "extreme conditions" for investees Pantheon Leisure PLC and Sport in Schools Ltd. Will pay no dividend.



Aminex PLC - Tanzania focused gas project developer - Pretax loss narrows to USD1.2 million in half year to June 30 from USD2.2 million a year before, thanks to more than halving of administrative expenses to USD610,000 from USD1.8 million, while revenue rises to USD300,000 from USD142,000. Ruvuma farm-out partner ARA Petroleum Tanzania agrees to extend long stop date to October 15 from September 30 but says will not extend again. Despite Aminex paying USD2.2 million in capital gains tax and APT paying USD330,000 in stamp duty, still awaiting Tanzania government approval for the farm-out and transfer of operatorship. "Aminex remains hopeful and looks to the Tanzanian authorities for a prompt resolution as the window of opportunity to complete the farm-out is clearly closing," says Chief Executive Robert Ambrose.



Golden Rock Global PLC - Jersey incorporated special purpose acquisition vehicle in fintech sector - Pretax loss narrows to GBP83,248 in first half of 2020 from GBP187,820 a year ago, all due to reduced costs, as company makes no revenue. "As the company is a non-trading entity the board does not believe that COVID 19 will have a material impact on its financial position but will continue to keep the matter under review," Chair Ross Andrews says. "However, the board do expect that the continuance of COVID 19, and the associated restriction on travel both in the UK and overseas, may make the search for a suitable acquisition opportunity more difficult."



Cobra Resources PLC - Wudinna gold project in South Australia - Pretax loss narrows to GBP296,424 in six months to June 30 from GBP361,284 a year before, due to lack of GBP62,000 in initial public offering costs booked in year-earlier period. No revenue in either period. In strong cash position after GBP677,145 equity raise in May, GBP1.5 million placing of zero coupon convertible loan notes in August.



Wishbone Gold PLC - precious metals trading and exploration in Hong Kong, UAE, Honduras and Queensland, Australia - Says well funded after financial restructuring and raises and warrant exercises in June, August and September. Granted extension for publishing 2020 half year results to end of October. Revenue in 2019 was USD10.8 million, stable on USD10.9 million in 2018. After-tax loss was USD1.7 million, narrowed from USD1.8 million.



Pennpetro Energy PLC - oil production in Gonzales oil field in US state of Texas - Pretax loss for half-year to June 30 USD592,000, narrowed from USD1.1 million, all due to reduced operating expenses and finance costs as no revenue reported either period. "For 2020, our main City of Gonzales objectives were to commence full production of the COG 1-H well, acquire additional land leases, and basis a review of legacy 2D seismic to carry out a 3-D seismic survey of our land interests. With the Covid-19 pandemic, these objectives were thrown into total disarray," says Executive Director Thomas Evans, adding: "We still anticipate that we will be able to recommence work-over operations on the Austin Chalk formation in late 2020 to activate production."



Merchants Trust PLC - invests mainly in higher-yielding large UK companies - NAV total return for six months ended July 31 was negative 31.4%, with a negative share price return of 34.3%. Underlying portfolio return was negative 25.5%, versus negative 17.8% for the FTSE All-Share index. NAV on July 31 was 352.3p, down 34% during the period. Declares half-year dividend of 13.6p, up 0.7% on year before. "While the board shares shareholders' disappointment in this recent performance, it does follow a period of very strong outperformance in our previous financial year," comments Chair Colin Clark. The trust's "value" stock strategy suffered during the Covid-19 pandemic as "growth" and "quality" stocks were in greater favour, he notes.



GLI Finance Ltd - focused property-backed and small and medium enterprise lending via Sancus BMS business - Pretax loss in half year that ended June 30 widens to GBP6.4 million from GBP6.0 million a year before. Revenue down 22% to GBP5.5 million from GBP7.1 million. "Covid-19 has negatively affected our results for the first half of the year, but we do see a lot of opportunities for alternative lenders such as ourselves and expect to see improvements in the second half of this year," says CEO Andrew Whelan.



Marwyn Value Investors Ltd - investment manager - In six months to June 30, NAV total return per ordinary share negative 2.2% and negative 3.5% per realisation share, compared to negative 18% for FTSE All-Share index. Decrease primarily due to lower share price for portfolio firm Safe Harbour, following announcement of liquidation, offset by gain for London-listed Zegona Communications PLC. Notes Zegona benefited from the impact of lockdowns on communications and data usage, while fellow portfolio holding, luxury boot maker Le Chameau, saw growth in its online business. "Our collective experience, through multiple recessions and times of economic distress, supports the board's and the manager's view that this period has the potential to offer up significant opportunities but also that, in the interests of shareholders, this must be done with patience," says Chair Robert Ware.



Attraqt Group PLC - London-based software for online shopping - Pretax loss narrows to GBP1.3 million in half year to June 30 from GBP1.9 million a year before, as revenue rises 13% to GBP10.2 million from GBP9.0 million. Looking ahead, CEO Mark Adams says: "Following a softness in new business as a consequence of Covid-19 in Q1 and early Q2, new win conversion, existing customer renewals and upsells have all picked up momentum in Q3." Attraqt Group also says it has acquired Aleph Search, while announcing a GBP4 million subscription to fund the deal and accelerate growth. Aleph Search is an artificial intelligence powered search technology.



Eurasia Mining PLC - Russia-focused gold and platinum group metals miner - Loss before tax widens to GBP1.3 million in six months to June 30 from GBP796,268 a year before. Revenue drops to just GBP48,012 from GBP1.1 million but cost of sales falls mostly in line and administrative costs halved to GBP585,537 from GBP1.4 million. Notes is in offer period, having appointed investment bankers at UBS back in July for a sale process. Says financial position is strong following USD10 million equity placing in August.



Pollen Street Secured Lending PLC - seeks dividend income through exposure to investments in alternative finance - NAV per share with income 948.5p on June 30, down from 965.4p on December 31. Interim dividends paid 24.0p, unchanged on year before. Formally appoints new investment manager Waterfall Asset Management LLC and signs early termination agreement with PSC Credit Holdings LLP. Says Waterfall's appointment "materially increases the likelihood that a firm all-cash offer" will be made for the company. If not, the board will recommend an orderly run-off.



BiON PLC - Malaysian wastewater treatment and renewable energy solutions formerly known as Green & Smart Holdings - Pretax profit MYR1.1 million, about GBP208,000, in 2019, swung from MYR13.7 million loss year before on revenue of MYR24.1 million, about GBP4.5 million, up from MYR1.9 million. "We ended 2019 in a stronger position than when we entered it, despite the challenges faced during the year," says CEO Syed Nazim bin Syed Faisal. "We achieved an important milestone when our Malpom biogas power plant began providing power to the national grid at the full tariff rate." Says Covid-19 is causing significant disruption to business, but restrictions have eased and activity is resuming.



Zenith Energy Ltd - Africa-focused oil and gas producer - Reports pretax profit of CAD11.7 million in financial year that ended March 31, swung from CAD9.8 million loss year before. Revenue falls to CAD781,000 from CAD6.6 million but books CAD20.1 million gain on business combinations, related to its acquisition of Anglo African Oil & Gas Congo SAU from AIM-listed Anglo African Oil & Gas PLC.



By Tom Waite; thomaslwaite@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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