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I've bought back in here this morning after a while away. It's one of those ideal situations where broader market sentiment has caused the share price to fall to levels which don't reflect the rosy health of the company.

Great to see:

- terrific results to Feb, with forecasts being raised once again
- almost £7m net cash
- confident outlook with this year having "started well"
- a 12p dividend, 33% up on last year. BMS are clearly confident since they wouldn't raise the divi by this much only to have to drop it back later

The forecast to Feb'23 has been raised to 51.4p EPS by Cenkos - a historic P/E of only 5.9.

With various short and long-term trends (environmental, scrapping of vessels, supply/demand trends, longer shipping routes etc) supporting BMS's core activities I can see the current rate of growth continuing for quite a while yet.

Interesting that in their new presentation ro analysts on Research Tree the CEO talks about international partnerships in Austria and Germany - I was unaware of (or had forgotten!) the latter.

And in addition to the two "tier 1" clients who've now gone live in Ireland, one more should go live in the next 12-18 months which would leave FNX "dominant in that space".

RNWH's J Browne are one of the winners of this new 5 year wastewater framework award:

Https://www.constructionenquirer.com/2023/03/17/winners-named-for-139m-wastewater-framework/

"Thames Water has appointed six contractors on the first lot of winners made public under its Waste Network Services framework.

The £139m Lot 5 deal covers high value proactive and reactive emergency repairs on both the gravity and pressurised wastewater network across the Thames Water Utilities operations area.

The six winners are Barhale, Cappagh Contractors, Clancy Docwra, J Browne, McAllister Bros and Morrison Utility Services."

APH's prelims today indicate an extremely strong 2023 coming for Kelo-Cote, which should be good news for VLG:

"As indicated in the January trading update Kelo-Cote revenues are expected to build through the year, supported by strong end-consumer demand. The China Cross-border e-Commerce ("CBEC") B2B market for Kelo-Cote has shown early signs of recovery with in-market demand and sales orders increasing over the first two months of the year, and we expect total revenue growth for the entire Kelo-Cote franchise to be above 20% in 2023"

The key statement is:

"This positive contract win momentum has continued, with good sales growth in all three divisions of the business"

The much larger LaddersFree appears to be booming, whilst Fidelis is now trading well and the smaller reactive business is "steady".

Overall then REAT appear to be nicely on course for the forecast 0.14p EPS and a P/E of only 7.7.

It's worth noting all the various tax breaks being introduced as they're not all mentioned in the articles I featured:

- film and TV tax relief has increased by 0.5% and been reformed in structure (instead of being reduced as feared)
- in addition, the animation and children’s TV sector will receive a new 39% expenditure credit
- soon the minimum episode length of a TV show that can qualify for tax relief is likely to be reduced from 30 minutes to 20 minutes
- and the high-end TV tax relief minimum expenditure threshold is being maintained at £1m (again allaying producer fears that it may be raised)
- plus the government also plans to allow high-end documentaries to claim for relief

Which is a pretty decent package of measures, and boosts confidence in the sector for the long-term.

Https://www.sharecast.com/equity/Centralnic_Group/broker-views

There's a new note on FIPP on Research Tree from VSA Capital. It concludes "The current discount to NAV represents an ideal opportunity to gain exposure to technology companies that are approaching commercialisation and, if they are successful, this would see distinct appreciation in FIPP’s NAV."

There's a nice summary of progress at Pulsiv and Alucid which are highlighted as being at commercialisation inflection points:

"Pulsiv (stake 18.3%) has developed patented, high energy efficiency, power conversion technology that converts electricity from AC to DC and vice versa. Products have been developed for mains powered products, battery chargers,
lighting applications, DC motors, and solar panels. The valuation of the Group’s investment at 1H23 close was £9.5m. FIPP notes that during 1H23, Pulsiv made solid technical and commercial progress, securing strategic distribution agreements with Astute Electronics, Digikey Electronics, the (world's fifth largest electronic components distributor), ISMOsys and Pankaj Electronics. Pulsiv, also entered a collaboration with U.S. based Salom, a major manufacturer of power supplies whose customers include Dyson, Lenovo, Motorola, Panasonic and Philips. As we have previously noted, the market opportunity for Pulsiv is global and significant. Market research house ReportLinker estimates that the micro inverter electronics market, which Pulsiv addresses, has a market size which is expected to reach US$7.4 billion by 2028, rising at a market growth of 17.8% CAGR from 2022.

Alusid (stake 38.9%) produces premium-quality tiles, tabletops and other surfaces by recycling industrial waste, ceramics and glass, much of which would otherwise go to landfill. The company has developed patented formulations and processes that use less energy and water than conventional tile manufacturing. Post FIPP’s 1H23 end, Alusid successfully collaborated with Imerys, a leader in speciality minerals, to make hard-wearing floor tiles. The result of this collaboration saw Alusid named a winner from 65 companies participating from around the world in the inaugural Imerys Start-Up Innovation Factory competition. During 1H23, Alusid also started supplying a major tile retailer with wall tiles and, according to FIPP, a further announcement is expected soon."

I've just come across this MWE news wire item which hasn't been posted before and introduces the new patented ABS antenna system for 5G etc - note again the field trials with three tier-1 customers:

Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/Expanding-E-Band-MTI-Wireless-Edge-LTD-Launches/90294179

"MTI Wireless Edge Ltd. (AIM: MWE). is proud to announce the launch of its newest patented product, the ABS®. This innovative E-band antenna system is specifically designed to provide robust communication solutions in harsh weather conditions, such as high winds and pole vibrations.

The ABS® compensates for tower vibrations and sway, ensuring stable communication even in the most challenging environments. This makes it an ideal solution for 5G backhaul in particular allowing an extended range for E Band links.

The ABS® is currently in field trials with 3 Tier 1 customers and is already operating for several months providing a stable E Band link of over 12 kilometers.

"We are excited to introduce the ABS® to the market," said Dov Feiner, General Manager of MTI's Antenna Division. "It's a game-changer for companies that require reliable communication in harsh conditions and allows faster penetration of 5G networks where fiber isn't readily available. We are confident that our patented ABS® will be a valuable asset to our customers."

Excellent news for SDI in yesterday's Budget, particularly since they're based around Cambridge:

Https://www.standard.co.uk/business/budget-2023-life-sciences-lab-space-jeremy-hunt-b1067705.html

Https://citywire.com/funds-insider/news/spring-budget-hunt-offers-life-sciences-a-hand-after-svb-collapse/a2411884

Extracts:

"According to real estate consultancy CBRE, life sciences firms last year signed for around 800,000 square feet of office and lab space in the golden triangle of London, Oxford and Cambridge. It said conditions are in place for that to increase in 2023."

"The government hopes to boost the UK’s life sciences sector with the offer of tax relief for companies that spend 40% or more of total expenditure on research and development, chancellor Jeremy Hunt said in today’s Budget.

The relief is aimed at high-growth, loss-making companies, mostly based across the UK’s ‘golden triangle’ of Oxford and Cambridge universities and the Crick Institute in London."

"Hunt’s other initiatives announced today include providing an extra £10m in funding over the next two years for the medicines and healthcare products regulatory agency to accelerate patient access to treatments."

"The government also plans to boost the supply of commercial development, in particular lab space, to support the needs of research and development and drive investment into high-value industries across England. It also plans to re-establish a railway line between Oxford and Cambridge and in May, a line between Bedford and Cambridge to boost productivity and innovation."

There had been fears that tax allowances etc would be reduced (I wonder if this had to some extent held back the share price?) - in fact tax breaks for film and TV investment have been INCREASED:

Https://www.hollywoodreporter.com/business/business-news/britain-film-tv-tax-credit-increase-raise-1235353030/

Https://deadline.com/2023/03/uk-film-and-tv-tax-credit-raised-1235300050/

"Ben Roberts, CEO of the BFI, said the reformed incentives are “a testament to how crucial they are to the U.K.’s economy and growth.” He added: “Combined with our extraordinary talent, infrastructure and technical and creative expertise the screen sector Tax Reliefs, now remodeled as expenditure credits, have super-charged our industry on an unprecedented scale.” His conclusion: “The news today will ensure the U.K. remains a truly globally competitive production hub, giving us economic recovery and growth, creating thousands of jobs for people up and down the country and enabling creative talent and storytelling to thrive.”

Tamesis's update today reiterates their Buy and 160p target:

Https://www.tamesispartners.com/research-portal

Extracts:

"it is impressive that this is the third consecutive year Capital has delivered material growth in revenue, with full year sales increasing 28%, following
68% YoY growth in 2021 and 18% YoY growth in 2020. Moreover the company is guiding to $320-340m for FY23 (140% higher than 2020) and we see no reason for this growth not to repeat in 2024. One day the market will accord the valuation metrics the
company deserves for this increasingly high quality growth. EBITDA has followed with a 19% growth to $86.4m and margins remain intact at 30% vs last year of 32%. The investment portfolio valuation fell but excluding that net income rose 16%. In recognition of this the company has awarded a dividend of 3.9cps (final div of 2.6cps) equivalent to a yield of 3% which will grow in 23/24. We remain very comfortable with our 160p Price Target."

"MSALABS segment growth coming through. The company is guiding to 21 PhotonAssay units by 2025 and has six units commissioned across Africa and Canada. Each Chrysos unit is expected to generate annual revenues of US$3-5 million so with full roll out there is the potential for more than $80m of annual revenues from MSALABS versus just $3m in 2019. As noted above we expect EBITDA margins to strengthen as this segment matures and utilisations of the units increases."

"Investment Case

As has been the case for nearly every announcement in the last three years these results are strong and point to further strength and growth. With activity in the mining sector still strong and long-term contracts locked in, we believe revenue growth is assured into the medium term (5yrs) and margins likely to remain firm. The Chrysos business in particular adds heightened impetus.

Meanwhile the shares are trading on EV/EBITDA and PER multiples for 2023 of 2.9x and 6.5x respectively and a dividend yield of 3.1%. We see the current share price as an attractive entry point and maintain our price target of 160p."

Looks like the usual early traders on results have been skewered by the MMs once again in CAPD's usual results day scenario.

The share price has quickly jumped back up now and is now almost breakeven - by rights it should be well up given the terrific forecast-beating results, bullish short and long-term outlook and extremely cheap P/E.

Cheers, good to see. I swear ST's following me around my portfolio - that's MWE, FNX and FIPP all tipped on successive days this week :o))

Also just noticed adjusted EBITDA is also well ahead of Tamesis' expectations.

Tamesis forecast $86.1m EBITDA, whereas CAPD achieved $90.1m EBITDA - a substantial beat.

Great to see Slater Investments buying more and raising their already large stake - they now own over 10% of CNIC, with 28.7m shares:

Https://uk.advfn.com/stock-market/london/centralnic-CNIC/share-news/CentralNic-Group-PLC-Holdings-in-Company/90518015

The results are out and are as flagged, except the adjusted EPS, which we now know is 21.9c or 17.9p (before paper investment losses) - a P/E of 5.8.

Most importantly, guidance for this year is set at $320m-$340m revenues, which at midpoint is well ahead of Tamesis' current forecast of $319.4m.

Upgrades are in order methinks.

Net debt is also better than Tamesis' forecast at $47.2m.

Chyrsos revenues are surging ahead, expected to grow another 60%-70% ths year to $40m-$50m. Mining services as at Sukari has also been an outstanding initial success, overdelivering on performance. And the core drill business continues to thrive, with no major contracts due to renew this year, so continued security of long-term revenues.

With the gold price now above $1,900 mining budgets should remain generous for some time to come. CAPD really should be seriously re-rated from here.

The Amati AIM VCT have just released their February factsheet.

ITX are a new investment for them having taken part in the placing:

Https://www.amatiglobal.com/storage/1170/VCT-Factsheet-February-2023.pdf

"We made a new qualifying investment into Itaconix, via a secondary fund raising on AIM. Itaconix is a US based developer of plant-based polymers used to replace carbon-based acrylic acid and styrene in cleaning, hygiene and beauty products. The polymers are based on itaconic acid, which is made from the fermentation of plant-based sugars. Itaconix is the only global supplier of these polymers. This not only has environmental benefits (replaced carbon, plus carbon plant capture), but also reduces the need for a number of other expensive ingredients with up to a 25% cost and 33% volume benefit. The breakthrough product was in dishwasher detergent, and now 150 consumer products use Itaconix’s ingredients, selling through Walmart, Aldi and Tesco."

Investors Champion are also very keen on FNX - subscription only though:

Https://www.investorschampion.com/channel/portfolio/an-exciting-new-fast-growing-arrival-on-aim

"Mobile payments specialist continues to impress
13/03/2023
Fonix Mobile (FNX)

This fast growing mobile payments specialist has announced excellent interim results. This business has delivered fabulous returns since arraiving on AIM in 2020. With an enticing dividend yield, on top of the strong growth potential, it remains an exciting one to follow as you can discover below.

Founded in 2006, with a track record of strong growth and profitability, Fonix Mobile (LON:FNX) is a UK focused mobile payments and messaging company.

For its last full financial year ending June 2022 (over a period when many businesses struggled) its small team of 40 or so talented individuals based in London grew revenues 12% to £53.6m and profits by 16% to £9.7m, resulting in an attractive operating margin of 18% and an even more compelling 120% return on equity. It has the added attraction of an extremely cash generative operating model, which we cover in more detail below....."

Singer reiterate their Buy and 125p target price after today's interims .

The CEO's quote about strong upcoming news flow is particularly good to see:

"We expect this progress to be reflected by strong positive news flow in the months to come."

There are so many exciting developments in the portfolio. Quite apart from the many investees at or beyong inflection points and commercialisation, there are now three graphene tech portfolio companies spun out from Cambridge which could be incredibly exciting.

Pulsiv, Nandi, Alucid, CamGraPhIC, Vaccine Group and Celerum all seem to be making excellent progress.

Singer summarise as follows:

"A maturing portfolio

Frontier IP has reported interim results (H1’23) that reflect a period of strong technical progress but without the large revaluations of previous periods. Net assets per share decreased to 88.2p (FY22: 88.5p) while Net Cash increased to £5.8m providing the Group with a multi-year cash runway. H1’23 saw a number of important commercial and technical developments with FIPP’s management highlighting Pulsiv and Alusid as moving beyond inflection points. A £0.5m pre-tax loss reflects no major net revaluations but Pulsiv and CamGraPhIC raised money in the period and FIPP hosted a well-attended CMD that demonstrated the strength and increasing maturity, of its portfolio. FIPP shares trade at a 22% discount to NAV, we remain at a Buy."

"BUY recommendation

We view FIPP’s NAV as a lagging indicator given multiple milestones are often achieved between mark-to-market valuations. FIPP shares already trade at a 22% discount to NAV before we factor in the potential upside from the Group’s maturing portfolio. We maintain our BUY recommendation and 125p target price."