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This week: Marble quarries for FOX; OMPP gets some soul; Autos see sense in UBI

Last updated: 11:11 05 Sep 2012 BST, First published: 10:11 05 Sep 2012 BST

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August was a reasonable month for the indices, though in the week to Friday, the FTSE 100 fell 80 points to 5,708 points, and the AIM All share fell 10 points to 672 but recovered to close the week at 682. The Olympics effect perhaps wasn’t quite as one might have thought it could be- news this week hinted at retail sales being some 0.4 per cent lower in August compared to last year, whilst further afield Moody’s lowered its outlook for the EU’s AAA credit rating to negative. The UK construction sector was announced as contracting at a faster pace (the CIPS construction Purchasing Managers Index dropped to 49.0 in August from 50.9 in July). The week ahead sees all eyes falling on the European Central Bank who meet on Thursday to make their rates decision, and where they are expected to announce that it will buy bonds in the market to help lower borrowing costs for Spain and Italy. Also, the MPC announce their interest rate decision, together with announcements for industrial production and BoE inflation expectations in the UK. 

African Medical Investments (LON:AMEI

AMI continued its progress merging existing specialist hospital facilities in Maputo, Dar es Salaam, and Harare. AMI is now able to capitalise on the growing demand for quality healthcare, particularly from the emerging middle class, foreign business investors, governments and health insurers in Africa. AMI has experience increased revenues by 124 per cent to $12.1m and reduced loss before tax to $15,021,000, by $3,000,000 from 2011. Although there have been improvements in its financials, they have not yet reached levels adequate to generate cash from operating activities. Continuing financial support of Harbinger Capital Partners Master Fund I Ltd, who subscribed for $1,825,000 of further loan notes post year end finalisation of its cost reduction programme, will position the Group to significantly improve its financial results. There is an expansion strategy in place in Tete, Mozambique and Lusaka, Zambia to capitalise on growing demand for quality healthcare, where AMI are working with a major resource company to establish a medical clinic, including the establishment of a polyclinic, and ultimately a fully-fledged hospital, in this growing mining community. 

Alumasc (LON:ALU

Alumasc, the building and engineering group, has announced revenues of £111m for the year to June 2012, marginally above the previous year. Underlying earnings per share fell by 64 per cent to 3p. The Building Products revenues were up 5 per cent to £75m with operating profit up 12 per cent to £4.4m, despite a decline in UK construction activity, reflecting growth in export, roofing & walling, and construction product sales. Engineering Products revenues were maintained at £36m but an operating loss of £0.8m reflected a number of operational issues at Alumasc Precision Components which led to lower gross margins in that business during the year. A profit recovery plan is underway following the appointment of a new management team and divisional board, chaired by Keith Walden who joins the Alumasc Group plc board as a non-executive director. 

Angel Biotechnology Holdings (LON:ABH)* 

Angel Biotechnology announced the signing of a framework agreement with arGentis Pharmaceuticals LLC which establishes the parameters of future contracts for the development and manufacture of their collagen product, ARG201, a treatment for the life-threatening autoimmune disease, systemic sclerosis. Dr Stewart White, ABH Commercial Director and Acting CEO said: "We are very pleased to be able to assist arGentis by providing material for this serious clinical indication. This demonstrates not only the commercial demand for the collagen products that Angel can offer, but the value Angel can offer customers towards accelerating clinical supply." 

Auhua Clean Energy (LON:ACE

Auhua Clean Energy, the specialist split-unit solar water heater system products group based in the Shandong province of China, has reported that trading for the first half year has been in line with expectations. It has also announced further milestones including the establishment and implementation of industry standards for the split-unit solar water heater industry in Shandong, which Auhua has been a key adviser to. The Company has signed memorandums of understanding with four large conglomerates for use of Auhua's split-unit solar water heaters for their property projects. The Company has also been awarded the "Official Recommended Building and Engineering Product" by the Building Materials Department from the China Association for Engineering Construction Standardisation. Auhua is currently the only official recommended supplier of split-unit solar water heaters in the whole of China. Management believes that this recognition will further enhance its sales and marketing efforts going forward. 

Biome Technologies (LON:BIOM

Biome Technologies announced that its Stanelco RF Technologies division has successfully delivered the first prototype portable welding device to Durapipe UK Ltd as required under the development contract announced on 10 January 2012. This innovative portable welding unit is designed to work with Durapipe's new plastic pipe system which contains a steel layer and consequently allows induction heating technology to be used. The innovative welding equipment, developed by Stanelco RF, will allow installers in the field to join pipes and fittings quickly, cleanly and without the use of adhesives. The project has now progressed to an advanced phase, with a quantity of pre-production equipment due for delivery in the fourth quarter of this year. The development contract is expected to lead to a multi-year manufacture and supply contract between Stanelco RF and Durapipe, which the Company expects to generate revenues in excess of £2m over a three to four year period. The Company also reported, in its interims, that actions to reduce costs by £600k per annum were now effective. 

Bullabulling Gold Limited (LON:BGL

Infill drilling was completed at Bullabulling’s Gold project in Western Australia at Bacchus East, Hobbit, Dickson and Bonecrusher. In total, 26 reverse circulation (RC) holes were drilled for 3,837 metres. Results successfully demonstrate improved continuity of mineralisation in areas with previously low drilling density. An increase in resource tonnage and contained ounces of gold is anticipated, with no material impact on grade. A new resource estimate is to be prepared with a moderate increase in contained ounces of gold anticipated. 

Cathay International (LON:CTI

Cathay International Holdings Ltd., an investment holding company and an investor in the growing healthcare sector in China, has announced that revenues in the six months ending 30 June 2012 increased by 25.6 per cent to $48.4m, while gross profit increased by 21.4 per cent to $24.4m. The top-line growth was achieved despite the slow growth seen across China's economy. Growth was largely driven by Lansen's core rheumatoid drug sales, the positive results of the repositioning of the hotel and a carefully managed cost base across the group. The performance was dragged by Haotian, which is going into the pre-operating phase of the inositol project, preparing for the full-scale operation. Botai is working towards the market launch of its collagen injectable filler. 

China Food Company (LON:CFC

China Food Company, the Chinese manufacturer of cooking and dipping sauces, has announced that due diligence by Wisehand Planning Co. the potential buyer of the Group's animal feed business has been completed to its satisfaction. Regulatory approval for the purchaser is still awaited at which time the first stage payment of US$4.5m should be received. As previously announced, this approval is taking longer than anticipated. 

Churchill China (LON:CHH

Churchill China, a manufacturer and distributor of ceramic and related products announced interim results for the six months to 30 June 2012 in which the Company saw pre tax profits increase by 22 per cent to £0.8m (2011: £0.7m), whilst the interim dividend was maintained at the same level of 4.8p. Despite the difficult economic conditions, the Company has seen an increase in margins in the retail business, with an operating profit of £0.4m (2011: £0.2m) on the back of an increased focus on more profitable sectors and continued cost reduction- new product ranges for 2012 have also helped to increase sales in this area. 

Corin Group (LON:CRG

Manufacturer and supplier of orthopaedic devices reported interim results, which saw revenue of £25m (2011: £21.8m) and pre tax profits of £0.86m (2011: £0.22m). Hip product sales saw healthy growth during the period to £15.9m (2011: £11.5m). Whilst steady sales growth has been seen across a number of territories, there has been a degree of negativity around the Metal-on-Metal product market which poses some potential difficulty for the Company. A number of Corin’s competitors have withdrawn some of their products, and the Company itself has seen an increase in the number of litigation claims and potential claims concerning its MoM products during the first half. However, the Company has insurance on commercial terms in place against product liability claims which should help protect it somewhat. 

Enegi Oil (LON:ENEG

Enegi provided an update on the work programme relating to its Onshore Petroleum Licensing Option covering areas of interest within the Clare Basin in Southern Ireland. The Option was awarded to the Company by the Department of Communications, Energy and Natural Resources in Ireland, as announced in the news release dated 14 February 2011. Field studies have been conducted as part of a prospecting programme to assess the Clare Shale for its shale gas potential. The results of sample analysis undertaken to date have been extremely encouraging, indicating a higher prospectivity than was previously anticipated. Fugro Robertson have been engaged to undertake further testing in order to gain a fuller understanding of the prospectivity of the region, and to prepare an independent estimate of the in-place resources within the acreage covered by the Option. 

Fox Marble (LON:FOX

The UK Holding Company with licences over five marbles quarries in Kosovo commenced trading and raised £9.65m at 20p per share, valuing the Company at £21.4m. Fox intends to commence quarrying operations initially at two of the Group's quarries, build a processing plant and develop a sales network for the marble and intends to open two subsequent quarries in the first half of 2014. A recently completed competent persons report explains the Group has indicated marble resources of 91.4m m3 and inferred marble resources of 235m m3. A strong introduction for the Company having raised a decent amount. 

Global Market Group (LON:GMC

Global Market Group, a B2B e-commerce service provider dedicated to connecting manufacturers in China with buyers all over the world, has announced its maiden unaudited interim results for the six months ending June 2012. Revenues were up 27.9 per cent year-on-year to US$20.3m, with operating income up 35 per cent to US$5.44m. Customer numbers increased from 3,712 at end-December 2011 to 4,543 at end-June 2012 on www.globalmarket.com. 

Green Dragon Gas (LON:GDG

Green Dragon Gas, one of the largest independent companies involved in the production of CBM (coal bed methane) gas and the distribution and sale of wholesale gas in China, has announced that sales at its existing gas refueling stations increased by 58 per cent year-on-year to 151.1 MMcf (million cubic feet) for the six months to June 2012. Upstream gas production at the GSS Production Block was 832.4 MMcf in the period, a 31 per cent increase year-on-year. Gas sales volume through the distribution stations in ZPH (Zhengzhou Petro-China Hengran) and APH (Anhui Petro-China Hengran) increased 1 per cent from 1.38 in H1 2011 to 1.39 Bcf in H1 2012. Downstream sales of gas at BHY (Beijing Huayou) decreased to 6.3 Bcf in H1 2012 from 6.57 Bcf in H1 2011 representing a 4 per cent decrease over the same period last year due to a large BHY customer temporarily closing a power facility for an upgrade which is now back on line. 

IPPlus (LON:IPP

IPPlus has experienced improvements to profit after taxation as it rose to £408,096 up from £66,914 and in the year ended 30 June 2012. Group revenues have increased by 29 per cent (£1.5m) to £6,784,159. During the current financial year the Board proposes to invest a further £120,000 to develop IP3 Telecom's offerings, providing bespoke automated Interactive Voice Response (IVR) solutions to the banking and financial sectors. CallScripter, an enhanced customer interaction software suite specifically developed for contact centres, telesales and telemarketing operations, increased its overall revenue by 24 per cent in the year and securing a new international distribution agreement. Ansaback the company’s 24 hours telephone service has been productive with revenues increasing by 25 per cent and gaining a 3 year contract to provide emergency help desk cover for a major utility company. IPPlus is reliant on intellectual property rights surrounding its internally generated and licensed-in software. However, it may be possible for third parties to obtain and use the Group's intellectual property without its authorisation. The firm has enforced a Disaster Recovery and Data Centre facility at an office 5 miles away from the main building to reduce operational risk. 

LiDCO Group (LON:LID

LiDCO has reported results of revenue increasing by 4 percent to £3.3m, alongside product sales increasing by 18 percent. With the UK sales rising, export sales for LiDCO have decreased due to the recurrence of licence fees. Progressions for the monitor integration and parameter convergence project are developing well, incorporating a depth of anaesthesia function and a non-invasive blood pressure module and LiDCO aims to launch the product by the final quarter of 2012. The Company also announced that John Barry has resigned as Sales and Marketing Director after 11 years at LiDCO. 

MDM Engineering Group Limited (LON:MDM

MDM Engineering Group Ltd, providers of a wide range of services from preliminary and final feasibility studies, through to plant design, construction and commissioning, was awarded the Definitive Feasibility Study for Witwatersrand Consolidated Gold Resources Limited (Wits Gold) DeBron Merriespruit South project (DBM) in South Africa. Wits Gold is the mineral rights holder of the DeBron and Merriespruit prospects in the Free State gold field. The two prospects are being considered together as a single entity and have been named the DBM Project. The scope of work is the implementation of engineering design and costing for the process plant and associated infrastructure, to produce a DFS for Wits Gold DBM project. MDM also announced separately today that it has been contracted to complete a Pre-Feasibility Study for GoGold Resources, a Parral Tailings Project in Chihuahua, Mexico. The project consists of dry land tailings deposited from the Mina la Prieta silver and base metal mine in separate areas. 

Microsaic Systems (LON:MSYS

Microsaic Systems today announced that Biotage AB, a leading global supplier of laboratory equipment, will be presenting its fully integrated solution for ‘Mass Directed Flash’ purification at JASIS 2012 (Japan Analytical Scientific Instruments Show) in Makuhari Messe, Japan (5-7 September). This is the first time Biotage has presented the new system, which incorporates Microsaic’s novel miniature mass spectrometer – the Microsaic MiD. Microsaic entered an agreement in May 2012 with Biotage, previously identified in announcements as ‘an international supplier of laboratory equipment’, to provide its MiD chip-based scientific instrument as an Original Equipment Manufacturer (OEM). Since then, Microsaic has further developed the MiD and the companies are at an advanced stage of integrating it with Biotage’s flagship Flash purification system Isolera™. The new integrated system is expected to be commercially available in early 2013. Mass directed flash purification is a powerful technique for collecting compounds based on mass allowing the chemist to purify and analyse compounds at the same time. 

NetDimensions (LON:NETD

NetDimensions, the provider of performance, knowledge and learning management systems, announced results for the six months to 30th June 2012. Revenue grew by 34 per cent to $5.9m (H1 2011: $4.4m) and a 32 per cent increase in the Company’s net cash position to $7.8m (H1 2011: $5.9m) was recorded. 42 new clients were added during the period, with Asia Pacific in particular seeing a 40 per cent increase in revenues, and China an impressive 159 per cent. Post period end the Company has started to trade in the OTCQX in the US and is looking to release an iPad/Android mobile app before the end of the 3rd quarter. 

Nostra Terra Oil & Gas (LON:NTOG

Nostra Terra, the oil and gas producer with projects in the USA, announced that it has entered into an agreement with Ward Petroleum Corporation to acquire a 20 per cent working interest in the Chisholm Trail Prospect, located in Oklahoma. The Area of Mutual Interest within the prospect covers a non-contiguous area of over 1,420 acres. The acquisition further enhances Nostra Terra's portfolio of wells in areas where proven horizontal drilling and completion technologies are being applied to known reservoirs. The leasehold also includes working interests in 4 additional wells, to be drilled by other operators. Leasing and permitting for the initial wells has been completed and they are ready for drilling. A 20 per cent net, non-operated interest in the initial well planned to be drilled by Ward plus smaller interests in four more non-operated wells have been secured. Nostra Terra's total estimated cost of lease-hold activities is US$300,000 and drilling for the first three wells is estimated to cost US$720,000, the significant majority of which is related to the 20 per cent working interest well. 

One Media Publishing Group (LON:OMPP)* 

PLUS quoted consolidators and acquirers of music and video rights announced that it has acquired the content exploited via the 'YouTube' channels featuring all of the Motor City, High Energy & Northern Soul videos produced by legendary producer Ian Levine. The 'Levine' YouTube channel has had in excess of over 15 million views to date. One Media has now annexed this acquisition to the deal it originally completed with him on the 7th April 2010. Featured on the channel are 550 exclusive videos of Disco, High-Energy, Motown and Northern Soul videos, including Evelyn Thomas performing 'High Energy' and The Trammps performing 'Hold Back The Night' which together have achieved over 2 million views. As a YouTube Premier Partner, One Media is able to monetise its content viewed on YouTube through advertisements and subscription accounts. Michael Infante, Chairman and CEO said, "YouTube is already a dominant force in the digital video broadcasting sector and we anticipate that with the market penetration of 'Smart TVs' increasing within the home, more consumers will be using this medium over the coming years. This deal is very important for One Media as it demonstrates our intention to build greater market share in the music video content sector." 

Oracle Coalfields (LON:ORCP

Oracle Coalfields, the coal developer of a lignite mineral property located in the south-eastern desert of the Sindh Province in Pakistan, has released details of its Implementation Plan to demonstrate the capital and operating costs for the development of a lignite coal mine to supply a 300MW power plant at the mine site. The plan has been prepared by Dargo Associates Ltd., a UK based independent coal consultant. According to this plan, the total investment to bring the mine into full production is $463m. The cost of mining equipment and infrastructure has been reduced by $434m largely due to a reduction in planned mine production from 5m wet tonnes per annum to 2.4mn wet tonnes per annum. It targets an IRR of 20.5 per cent as part of fiscal incentives offered by the Government of Pakistan. 

Scancell Holdings (LON:SCLP

Scancell Holdings announced the development of a new platform technology (ModitopeÔ) that stimulates the production of killer CD4 T cells with powerful anti-tumour activity. The Directors believe that this new discovery could have a profound effect on the way that cancer vaccines are developed. CD4 responses to cancer associated antigens have been notoriously difficult to generate whether presented as peptides, proteins or DNA. CD4 cells are vital for effective anti-tumour immunity. Scancell has identified and patented a series of modified epitopes that overcome this limitation. Scancell's ModitopeÔ technology produces killer CD4 T cells that destroy tumours without toxicity. David Evans, Chairman of Scancell Holdings, commented: "This highly innovative discovery opens up a new approach to the development of cancer vaccines. Whilst currently at an early stage, we are aware that the opportunities could be considerable in addition to Scancell's existing platform technology. As a result, the Board is actively evaluating its strategic options for this new technology platform and will be consulting with key shareholders in this regard. We are excited by the potential and are resolute in our aim of creating the greatest value for shareholders. The Board will update the market in due course." 

Transense Technologies (LON:TRT)* 

Transense Technologies announced that its trading division, Translogik has received an initial order for its iTrack Tyre Temperature and Pressure Monitoring Systems for mining and off-the-road vehicles (iTrack) from its Indonesian distributor, AutoRFID Solutions Sdn Bhd. (AutoRFID). The iTrack system will be installed as part of a pilot scheme on three of the 168 vehicles at the ADARO mine in Indonesia, one of AutoRFID's clients. The ADARO mine is expanding its operations and expects to be running more than 300 vehicles by the end of 2014. Transense separately announced that its trading division, IntelliSAW, a leading provider of next generation wireless sensor systems for smart grid applications, has continued to see strong demand for its innovative wireless/passive temperature monitoring solutions. This has resulted in the recent commissioning of three new pilot installations of its IS485 electrical switchgear monitoring systems with major industrial companies. The pilot systems were installed at sites owned by Petrobras in Brazil, currently the fifth largest energy company in the world, Southern China Grid, a major regional power company supplying 230 million people, and the Gujarat State Electricity Corporation (GSECL) in India, which runs twelve power stations. Until now all pilot installations have been carried out by the IntelliSAW technical team, however the new pilot at the Southern China Grid site was carried out by a regional partner. As more of IntelliSAW's channel partners gain expertise in the product this will allow for significant scaling in the rate at which new sites can be added. Previously announced pilots are continuing and the Company looks forward to these leading to full deployments as customer testing programmes are successfully concluded. 

Ubisense (LON:UBI

Ubisense Group, a market leader in location based smart technology, announced that it has been awarded two contracts for real-time location projects by two of the world's largest automotive manufacturers. The first project involves an installation of Ubisense and Atlas Copco's Tools on a large scale assembly line in Germany and represents the third major German automotive manufacturing Group that Ubisense has been contracted to supply with its location solutions. Ubisense has also been awarded a contract with another major automaker to support the continuous improvement (or kaizen) of their manufacturing processes through the adoption of Ubisense's e-Kaizen solution at a North American plant. 

Verona Pharma (LON:VRP

Verona Pharma, the drug discovery and development company with first-in-class drugs to treat respiratory diseases, today announced the completion and reporting of data from a clinical trial with its lead drug candidate, the dual PDE 3 and 4 inhibitor RPL554, in patients with chronic obstructive pulmonary disease (COPD). The data was presented at the European Respiratory Society (ERS) Annual Congress in Vienna. The data showed that a single dose of nebulised RPL554 to patients with COPD produced a rapid bronchodilator response, greater than a 15 per cent increase in FEV1 (forced expiratory volume at 1 second). This magnitude of bronchodilator response was significantly larger than that produced by placebo and appeared to be at least equivalent to that produced by a standard dose of the reference bronchodilator beta2-agonist salbutamol in these patients. This completes the first bronchodilator study in mild to moderate COPD patients at the Tor Vergata Clinic in Rome and is an expansion of the pilot part of the study announced by the Company on 10 November 2011. 

*A corporate client of Hybridan LLP 

 

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