Member Info for Costi

Berenberg Bank 22/04/2026 270p Hold

For the financial year, the Group recorded a loss of £7.02 million (2024: £3.04 million), reflecting the rapid scale-up of oil and gas activities, expansion of the technical, operational and corporate teams, and the write-down of legacy non-core assets, including assets held for sale. Administrative expenses rose modestly to £3.12 million (2024: £2.57 million), in line with the Company's growth, while project expenses remained stable at £0.12 million (2024: £0.14 million) due to disciplined capital deployment and the capitalisation of most technical work in Angola.

As part of the rationalisation of its legacy portfolio, the Group recognised a £0.179 million impairment on the Mt Weld project in Australia. Finance costs decreased to £0.11 million (2024: £0.13 million). Discontinued operations, relating solely to the Mambare Nickel joint venture, resulted in a £3.20 million loss (2024: £0.03 million), driven by the impairment of the asset following disputes with the joint venture partner and confirmation that the underlying exploration licence had not been renewed.

Https://www.motortrader.com/blogs/guest-blog/mils-blog-hopcraft-v-close-brothers-and-the-remedy-riddle-11-04-2025

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Final results from Jack Stockopedia

Highlights (Covid disrupted):

Revenue stable at £12.8m (2019: £13m),
Orthopaedics and Dental revenue of £7.4m, +11%
Joint venture GBM-v sales level at £2.1m,
DermaPure® sales decreased by 22% to £3.3m,
Gross Profit down from £6m to £5.9m, gross margin level at 46%,
Operating Loss of £9.8m (2019: £7.2m) driven largely by a non-cash impairment charge of £6.1m arising from the annual impairment test on the CellRight Technologies,
Overhead cost base reduced by £400,000,
Cash balance at 31 December 2020 £9.6m (2019: £2.4m) following an equity fundraise raising net proceeds of £13.8m in June 2020.
So at present, TRX has about £6.76m of net cash and an enterprise value of £34m on annual revenue of around £13m, with good growth potential but ongoing substantial net losses.

The group reports a sizable net cash outflow from operations of £5.2m, plus a net cash outflow from investing activities of £1.4m.

There’s no doubt cash burn and potential equity dilution remain key concerns here. Depending on market conditions, another placing is not out of the question. The Covid pandemic was beyond the company’s control but the group still either has to reach profitability fairly quickly or further dilute shareholders.

See the net cash outflow from operations below. The FY20 results show a further £5.2m outflow.