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This week: Ceres powers ahead, new technology from Elektron and ANT goes large

Last updated: 09:36 01 Aug 2012 BST, First published: 08:36 01 Aug 2012 BST

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In the week to Friday, the FTSE 100 saw an early drop of 160 points though it recovered somewhat to close at 5,623 points, whilst the AIM All share closed the week some 18 points lower at 668. News during the week included the deepening of the UK recession, the continuing debt crisis in Europe and a slowing of economic growth to 1.5 per cent. Asia also had troubling news, with Japan said to be in a trade deficit, a slowing in South Korean economic growth (0.4 per cent for 3 months to June, vs. 0.9 per cent in the prior 3 months), and Taiwan suffering a 0.16 per cent contraction in the 3 months to June. The week ahead sees the MPC interest rate decision, services, construction & manufacturing PMI and Nationwide house prices index all being announced. 

Abcam (LON:ABC

Global leader in the supply of protein research tools announced the following pre-close trading update ahead of its results for the financial year ended 30 June 2012. The Board is pleased to report another successful trading year and it anticipates that profit before tax will be slightly ahead of expectations, before one-off costs incurred during the year relating to the acquisitions of Ascent Scientific Limited and Epitomics International Inc of approximately £3.4m, and amortisation of the associated intangible assets. During the year Abcam has made significant steps in its strategy to drive growth by extending its product ranges, both through the two acquisitions closed in the period as well as by broadening the number and range of products in the catalogue. Through the recent acquisitions they have also opened up new opportunities in the In Vitro Diagnostic Immunohistochemistry, immunoassays, custom service and bio-active small molecules markets. The online catalogue has continued to grow strongly, comprising 92,456 products at the year end, representing growth of 25.5 per cent over the previous year, as they took advantage of a number of one-off opportunities to add product ranges. This number includes 656 products from Ascent and 1,452 new products added in the year from Epitomics. 

Angle (LON:AGL

Specialist medtech Company announced audited results for the year ended 30 April 2012. Though revenues were down to £1.4m (2011: £2.4m), and the loss for the year widened to £2.7m (2011: 0.4m loss), this reflected the investment and work that has been done during the period. Further, the Company announced the raising of £700,000 net of costs, at 40 pence per share (some 12 per cent discount to the mid price on July 25th). The Company has three key businesses: Parsortix (90 per cent owned, cancer diagnostics), Novocellus (92 per cent owned, Embryo viability) and Geomerics (33 per cent owned, computer graphics), the first of which is seen as a key breakthrough opportunity for the Company and especially so after having developed the diagnostic device (cassette) to a greater precision in the 3rd generation iteration. An aggressive timeline for taking this to market is also expected by the Company, with an automated instrument (for reading the cassette) expected to be manufactured for research purposes by the end of September and sales to be initiated by the end of September. 

Anglesey Mining (LON:AYM) 

Anglesey Mining announced that it has reached an agreement with Intermine Limited to discharge all amounts due to Intermine and to buy out the Net Profits Royalty Agreement held by Intermine in respect of the Parys Mountain copper-lead-zinc property in North Wales. Under the agreement Intermine will receive C$1m in cash (£ 630,000) and 2,000,000 ordinary shares in the company. The agreement will relieve Anglesey of the requirement to make annual advance royalty payments to Intermine prior to the commencement of production and will eliminate all future royalties payable to Intermine from any mineral production at Parys Mountain. The Company also reported that it has now completed the diamond drilling programme at Parys Mountain. Assay results have now been returned for the first ten of twelve holes in a drilling programme totalling almost 2,000 metres. All the stages of this programme are considered by the company to have been successful. 

ANT (LON:ANTP

ANT, a provider of TV software and services, has announced that GlobalSat, the Chinese manufacturer of satellite and terrestrial products, has licensed its ANT Galio HbbTV (Hybrid Broadcast Broadband TV) Platform. GlobalSat deploys a wide range of set top box devices throughout Europe, the Middle East, Latin America, North Africa and Australia. 

Black Mountain Resources (LON:BMZ

Black Mountain shares last week began trading on the AIM market. The stock, according to the Company, is dual listed on AIM and ASX to increase the exposure and broaden the international investor base to accelerate the Company’s growth strategy. Black Mountain has a 70 per cent interest in three previously operating high grade silver projects located in Idaho and Montana, USA. Its objective is to rapidly recommence low cost silver production at Conjecture and look at the New Departure Projects in Q4 2012. It has exclusive access to a nearby silver processing mill secured for the Conjecture Project, Idaho and there is significant exploration upside and resource potential demonstrated at all three projects. Black Mountain has known areas of mineralisation, with low political risk and excellent mining infrastructure. 

Black Mountain Resources Ltd also today separately gave its quarterly report for the Period Ending 30 June 2012. The highlights of the period were that the option for exclusive mill access was secured for the Conjecture Silver Project; drilling started at Conjecture and the New Departure Silver projects; preliminary mine exploration development activities were commenced at Conjecture and the New Departure Silver Projects are now underway with initial production targeted for Q4 2012; and a $1.5m capital raising was completed pursuant to a loyalty option entitlement issue and placement, whilst the Company dual listed on AIM. 

Bullabulling Gold (LON:BGL

Bullabulling has provided a quarterly activity report for the three months ended on 30 June. The pre-feasibility study on the Bullabulling Gold Project is well advanced, with key mining parameters set and development of detailed cost estimates underway. The engineering consultants have finalised plant design criteria and the process flow sheet. The complete pre-feasibility study, incorporating an evaluation of the Gibraltar deposit, final open pit designs, production schedules and full financial analysis, is targeted for release by year end. Regional 3D modelling identified a significant resource growth potential, with diamond drilling to commence in the current quarter. At the end of the quarter, the Company had cash and deposits totalling $7.8m which means that it is fully funded for completion of the pre-feasibility study and other planned near term activities. During the period Bullabulling Gold appointed Mr Peter Mansell (lawyer with 35 years of experience in corporate and resources law) as Non-Executive Chairman of the Company, while Ronnie Beevor was appointed independent Non-Executive Director. On 1 May 2012, Mr Brett Lambert commenced as Managing Director of Bullabulling Gold Limited. Brett is a mining engineer with 30 years' experience in operations, project development and corporate management. 

Ceres Power Holdings (LON:CWR

Ceres Power announced a new agreement under which its partners British Gas and Itho-Daalderop will purchase 174 micro-CHP units, for sale, installation and trialling across a range of UK and Dutch homes starting in 2014, as preparation for full mass volume launch in 2016. The trial micro-CHP products will be available to members of the public and as a result, Ceres and its partners will capture extensive feedback to further refine the product and validate performance and operability in the field that will underpin mass volume. Ceres expects to receive EUR2.4m of European Funding to conduct the trials, subject to formal approval being granted in the near future. 

Corero Network Security (LON:CNS) 

Corero Network Security, the AIM listed network security and business software provider, provided an update on trading for the six months ended 30 June 2012. Subsequent to the acquisition and integration of the US-based Corero Network Security division during 2011, the board of Corero have resolved to change the Group's reporting currency to US Dollars which is more closely aligned to the profile of the Group's revenue and operating profit. The change will be effective from 1 January 2012 and thus the results for the six months ended 30 June 2012 will be reported in $ with the relevant comparatives. Group revenue for the full year is expected to show strong growth over the previous year and a strong first half year-on-year order intake growth for Corero Network Security (18 per cent growth) and Corero Business Systems (19 per cent growth) has been seen. Macroeconomic uncertainty across Europe is affecting the rate of sales growth, however the Group is committed to continuing to invest in the CNS division and “First Line of Defence” next generation product. Corero has a strong balance sheet with cash of $9.2m at 30 June 2012 (2011: $8.5m). Corero Network Security expects to announce its interim results for the six months ended 30 June 2012 in the week commencing 3 September 2012. 

DDD Group (LON:DDD

3D solutions company provided a half year trading update, stating that it expected H1 revenues to have increased by around 74 per cent to around $4m, benefitting from growing demand for its 2D to 3D conversion software, with gross margins of around 96 per cent. There was a 52 per cent increase in shipping of such units to approx 7m, whilst shipments by TV manufacturers grew by 23 per cent, PC Software by 1,031 per cent and Mobile IP shipments by 487 per cent. The Yabazam! 3D Smart TV app was also launched on both Samsung and LG Electronics' 3D TV platforms, with 60,000 downloads of the app completed so far. 

Elektron Technology (LON:EKT

Elektron Technology, the developer of fast moving engineered products with market leading positions in connectivity, instrumentation and monitoring and control markets, announced that its electrical connectivity brand, Bulgin, has launched its new range of rugged electrical connectors. The new Buccaneer 6000 Series of waterproof power, signal and data connectors is designed to withstand the harshest environments whilst conforming to the highest industry standards. John Wilson, CEO of Elektron Technology commented: “This is just the first of a pipeline of new products that are being developed through the new, centralised NPD facility at our Cambridge Technology Centre. We are pleased to be delivering on our aim of extending our existing product ranges and expanding the addressable market for our products.” 

eServ Global (LON:ESG

eServGlobal, the global telecoms software supplier specialising in mobile money and other value added services, has announced that its solution is exceeding the expectations of Asian operator Nepal Telecom. eServGlobal has been working with Nepal Telecom since 2008, and launched its post paid bill payment offering earlier this year. This means that each of the 15,000 existing recharge point‐of‐sales agents are now capable of processing post paid bill payment. Within the first months of service, results have shown improved customer satisfaction, high rates of on‐time bill payments and increased demand for post paid subscription. 

Galileo Resources (LON:GLR

Galileo Resources, the emerging African Rare Earth exploration company, announced that it has signed a Heads of Agreement (HoA) with Rare Earth International (REI) to earn-in to interests in three rare earth projects in Zambia, Mozambique and Spain. REI holds certain rights to explore and to acquire interests in these Projects which are outlined in separate agreements with various holders of the projects' prospecting licence or mining concessions. African Consolidated Resources (LON:AFCR) is the 100 per cent holder, through its Zambian subsidiary, of the prospecting licence to the rare earth project in Zambia. Under the terms of this HoA, the Company has been granted 30 days to conduct title due diligence on the Projects; this being the only condition on which this HoA may be terminated. 

Gasol (LON:GAS

Gasol, the West Africa energy development company, announced that Cornelia Meyer, a highly experienced energy expert, has been appointed as Chairman of the Company to lead the next stage in Gasol's development. Ms. Meyer, brings significant sector-specific and international experience to Gasol, having held senior roles with Kimberly Clark Corporation, BP plc, the General Electric Corporation and Citibank. Haresh Kanabar, who co-founded Gasol and served as its Chairman since 2009, will become a Non-Executive Director. Separately, Osman Shahenshah will also step down as a Non-Executive Director of the Company with immediate effect. 

Gem Diamonds (LON:GEMD

Gem Diamonds, which is focused in Lesotho, Australia, Angola and Botswana, has reported that the first half of this year has been marked by strong operating performance against a challenging backdrop for the diamond industry. The flagship mine, Letšeng (Lesotho), has reported an increase in both carats recovered and recovered grade compared to the same period in 2011 and cash costs were also held in line with management estimates. However, diamond prices have been under pressure: average value of US$2,133 per carat was achieved for the five exports for H1 2012 compared with US$3,052 in H1 2011. This, together with the comparatively lower quality production from Letšeng in the period when compared to H1 2011, which saw six exceptional diamonds recovered, impacted revenues generated in H1 2012. However, with US$139m of cash, no debt and strong operating cash flow, the management believes the Company is well positioned to weather the current downturn in the market. 

Getech (LON:GTC

GETECH, the oil services business specialising in the provision of exploration data and geological exploration studies, announced generally strong performance of all parts of the business. The Company now expects that its results for the year to 31 July 2012 will exceed current expectations. Management also point to improving visibility of income and stronger cash balances. 

Good Energy Group (LON:GOOD

Good Energy Group, owner of Good Energy Limited, the UK's leading 100 per cent renewable electricity supplier, announced its admission to trading on AIM. The Company has raised £4m by way of a placing at 85 pence, which based on the placing price gave it a market capitalisation of £10.6m on admission. Following Admission, the Company will have approximately £8m of cash on its balance sheet. The Company intends to use the net proceeds of the placing to continue, and accelerate, the development of the Company in marketing and brand awareness, trading and asset development. 

Herencia Resources (LON:HER

Herencia, the Chilean exploration and development Company, announced a progress update on its flagship Paguanta Project. Paguenta is 70 per cent owned by Herencia, and is focused on developing a silver, zinc and lead mining and processing operation on its Patricia deposit; one of three targets within the Paguanta project area. Following the £1.2m fund raising announced on 4 July 2012, the Company has commenced work on a surface geological mapping and sampling programme at Patricia and continued to progress the re-logging and selective assaying programme up-dip of existing mineralisation. The Company has also completed preparation work in advance of an Induced Polarisation survey to extend the existing Patricia anomaly. 

Ideagen (LON:IDEA

Ideagen, a leading supplier of compliance based Enterprise Information Management, announces its unaudited preliminary results for the year ended 30 April 2012. These are the first set of financial results since the Company's admission to AIM on 2nd July 2012 and represent the Company's third year of consecutive revenue and EPS growth. Revenue for the year ended 30 April 2012 increased by 78 per cent to £4.00m (2011: £2.25m) with a full year contribution from Ideagen Software and a four month contribution from Proquis, which was acquired in January 2012, of which recurring revenues of £3.3m at the year end covered 90 per cent of the fixed cost base. Adjusted operating profit increased by 127 per cent to £1.18m (2011: £0.52m). Basic adjusted earnings per share increased by 35 per cent to 1.26 pence (2011: 0.93 pence). The Company's financial position has continued to strengthen during the last year. Net assets increased to £5.79m at 30 April 2012 (2011: £3.07m) following the acquisition of Proquis and cash balances at 30 April 2012 were £1.50m (2011: £0.76m). During the period the Company has acquired Proquis Ltd and Proquis Inc. significantly strengthening compliance capabilities, as well as managing to secure a contract with the US Department of Veterans Affairs, expected to be worth $10.6m over 5 years, and additional significant contract wins at South East Water, Prudential, Raytheon, Fuji, MOD, and VA Amarillo. 

Instem (LON:INS

Leading provider of IT applications to the global early development healthcare market gave an update on current trading. As stated in the 2011 interim results and the full year results released in March 2012, license income is becoming increasingly second-half weighted and this trend is expected to continue in the current year, with first half revenue marginally below that of the comparable period in 2011. Despite opening 2012 with a strong order book and a good pipeline of new opportunities, the Company is continuing to experience timing delays in new order placement and, following a detailed review, the Board believes the revenue and profitability for the full year ending 31 December 2012 are likely to be materially lower than current market expectations. The pharmaceutical market, particularly large pharma, is still going through a period of major structural changes and, with the uncertainty this creates, clients and prospects are deferring investment decisions. Despite this, underlying demand for Instem solutions remains strong with several large, multi-site prospects in the pipeline. In several instances, selection decisions have already been made in Instem's favour by prospective customers but order dates and final contract size remain subject to additional procurement processes. The fundamentals of the business remain strong and Instem continues to increase its substantial annual recurring revenues; remain solidly profitable and cash generative, with £1.84m net cash as at 30 June 2012 (£1.33m at 30 June 2011); win the majority of new business placed in its core early development safety assessment market; and benefit from high barriers to entry for competitors. Enhanced revenue opportunities and reduced costs resulting from the completion of the last major phase of the redevelopment of its core Provantis(R) product suite during 2012 are expected to contribute positively to future business performance. Overall, while the Board remains cautious regarding the timing of deal flow, it is confident in the medium to long-term prospects for the business, which remains well positioned to benefit from the trends in its end markets towards multi-site, collaborative and outsourced R&D. The Company expects to report interim results for the 6 months ended 30 June 2012 on 19 September 2012. 

PhotonStar LED Group (LON:PSL

PhotonStar LED Group, the British designer and manufacturer of smart LED lighting solutions, has published a trading update for the six months to 30 June 2012. Group revenue increased by 50 per cent to £3.82m (H1 2011: £2.54m) with gross profit moving up 62 per cent to £1.51m (H1 2011: £0.93m). The Group continued to make good progress, albeit slightly below the Board’s expectations and recently became EBITDA positive on a monthly basis. The Board is confident that PhotonStar will continue to grow strongly in the second half of the year driven by the lighting market’s transition to LED lighting. The Group expects the results for the year to be broadly break even on an EBITDA basis and sees 2013 as a year of significant growth. The Group is pleased to report that it has completed a new trade finance facility of up to £1.3m with HSBC to support PhotonStar’s growing working capital requirements, which have been constrained in recent months. A number of key milestones were achieved in the first half including the start of commercial production at the Romsey facility of the Group’s industry leading ChromaWhite range of products and the commissioning of the PhotonStar’s manufacturing facility for the LED fixtures business in Wales. First shipments of the ChromaWhite range to key customers started in June. However, due to third party supply issues the board expects that PhotonStar’s production volumes will be held back until the last quarter of this year. Whilst ChromaWhite revenues are still fairly modest, this will have some impact on the Group results. The Group anticipates announcing its interim results for the six months to 30 June 2012 in mid-September. 

Scientific Digital Imaging (LON:SDI

The AIM quoted group focused on the application of digital imaging technology to the needs of the scientific community announced final results for the year ended 30 April 2012 in which it saw a slight fall in revenues to £7.17m (2011: £7.29m) and a pre-tax profit of £20,000 (2011: loss of £162,000). Cash on the balance sheet increased to £285,000 (2011: £158,000). The Company has been seeking to reorganise itself, and has made significant investments in plant imaging and colony identification together with the development of a new prototype imaging system for the untapped sector of the healthcare market, both perhaps achieved by the increase in R&D expenditure to £723,000 (2011: £620,000). SDI also announced the retirement of Chairman Harry Tee, for personal reasons, though remains confident that reorganisation and refocusing will bring improved operational performance in the near term. 

Sirius Minerals (LON:SXX

Sirius Minerals, the potash development company, has reported that the increased level of development activity and impairment charges to the Company’s tenements in Australia and US resulted in a loss after tax for the year ending March 2012 of £60.1m (2011: £7.1m). The year-end cash and cash equivalents of £54.3m will be used to fund completion of the drilling program and feasibility studies for the York Potash Project which the management believes will deliver the greatest value for shareholders. 

Synectics (LON:SNX) 

Synectics (formerly Quadnetics Group), a leader in the design, integration and control of advanced surveillance technology and networked security systems, reported its unaudited interim results for the six months ended 31 May 2012. Results for the six months to 31 May 2012 represented appreciable overall growth in both revenues and operating profits compared with last year. Group revenue for the first half was £38.4m, 13 per cent up on the corresponding period of 2011. Consolidated underlying profit was £2.8m (2011: £1.8m). During the period the Company took an exceptional charge of £0.8m (2011: nil) to provide for closure of the UK defence activities. After this charge, and various non-underlying, non-cash items, the Company produced a profit before tax for the first half of £1.7m (2011: £1.7m). Fully-diluted underlying earnings per share were 12.7 pence (2011: 8.4 pence). The Company generated strong cash flow in the period. Free cash flow was £3.3m (2011: £3.7m). Net cash as at 31 May 2012 was £2.7m (2011: £6.0m, prior to the acquisition of Indanet AG. Pleasingly, the Company ended the first half with a record order book of £40.6m (2011: £26.1m, prior to the inclusion of Indanet), compared with a like-for-like £35.9m as at 30 November 2011. 

Tarsus Group (LON:TRS

International business-to-business media group announced its results for the six months ended 30 June 2012. Like-for-like revenue was up 14 per cent on 2011 as adjusted for biennials, the interim dividend up 5 per cent to 2.2p (2011: 2.1p) and net debt was at £19.6m (2011: £17.3m). The quality portfolio in high growth markets is driving a strong Group performance, with a very strong performance from the Emerging Markets; Turkey like-for-like revenues +17 per cent, China (Hope) revenues +39 per cent and Medical division continues strong growth - revenues +16 per cent. The Group has been transformed with Project 50/13 strategy substantially implemented; Life Media (Turkey) was acquisition completed in March 2012 and the acquisition of GZ Auto (China) is expected to complete in the next few months. Heads of terms have been agreed for a new five year £45m banking facility. The forward bookings currently stand at 80 per cent of anticipated full year revenues (2011: 74 per cent), Labelexpo Americas and MEBA both tracking well ahead of previous events and the focus remains on accelerating earnings growth and increasing dividends over the medium term. 

Tower Resources (LON:TRP

Tower Resources the oil and gas exploration company, announced that Repsol SA has agreed to take a 44 per cent working interest in the Namibian offshore licence 0010 and the related petroleum agreement and become operator. Provided that the transfers are completed, the ongoing interests in the Licence will be Repsol 44 per cent, Tower 30 per cent and Arcadia 26 per cent. In order to fund the acquisition and ongoing pre-drill costs of its 30 per cent working interest and to provide additional working capital, the Company has raised £5.9m through a conditional placing of new ordinary shares at a price of 3p. The Company also issued 10,014,581 warrants with Strike 3.125p, Expiry 27 July 2017 to Directors in sacrifice of £206,000 of fees and salary. 

Ubisense (LON:UBI

The market-leading location solutions company provided a half year trading update in which stated that it expected revenues to be ahead of the first half last year after seeing good momentum. The Geospatial division has continued to perform in line with Board expectations, and the RTLS business has also continued to be strong. Excellent progress has been made with a number of new customer signings, several of which have come through Atlas Copco. However there have been some delays by a small number of orders from the North American market, resulting in full year revenues that are likely to be lower than previously expected and reported earnings at the lower end of market expectations. 

Wentworth Resources (LON:WRL

Wentworth Resources, the independent oil & gas company with assets in the Rovuma Delta Basin of coastal southern Tanzania and northern Mozambique, has reported that further to its earlier announcements regarding its acquisition of Cove Energy plc's 16.38 per cent participation interest in the production operations in the Mnazi Bay Concession) and Maurel et Prom's pre-emption rights, these transactions are now complete. The Company has now received from M&P a cash consideration of US$18.9m, and its development and production interest in the Concession is now 32 per cent. 

Wildhorse Energy (LON:WHE

AIM and ASX listed company focussed on developing underground coal gasification and uranium projects in Central and Eastern Europe has announced a quarterly report for the three months ended 30 June 2012. During the quarter, Wildhorse announced that it has raised a total of £7.52m in a share placement and a share purchase plan to initiate a Bankable Feasibility Study (BFS) at the Mecsek Hills UCG Project. The Company has commenced the BFS. In June 2012, Wildhorse announced that the Hungarian government gave a formal endorsement to the potential development of a Joint Venture between the Company, the Hungarian state owned Mecsek-Öko and Mecsekérc, and Hungarian Electricity Ltd which is the owner of Paks Nuclear Power Plant, which represents a major step in the development of the Mecsek Hills Uranium Project. 

*A corporate client of Hybridan LLP 

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