Botswana Diamonds (LON:BOD) – SPECULATIVE BUY*: FY15 results
Market Cap: £1.9m; Current Price: 0.8p
Extensive work programme planned for 2016
- LBT of £0.3m in FY15 reduced from £0.9m, including an £0.6m impairment charge, in FY14. Net cash of £0.05m in FY15 compared with £0.24m in FY14.
- The extensive work programme for 2016 includes; verification drilling of two anomalies on PL210; soil sampling on PL085; TEM programme, magnetics and soil sampling on the recently issued licences in Gope; TEM programme and analysis of existing data on known pipes in PL260.
- BCL has found kimberlites on the Brightstone licences, where Botswana Diamonds has a 15% free carried interest and awaits further updates from BCL.
- To give the Company the maximum flexibility for future funding, the Company is proposing to change the par value of existing shares to 0.25p from 1p in the forthcoming AGM.
NORTHLAND CAPITAL PARTNERS VIEW: During FY15 the focus of Botswana Diamonds activities has been on its joint venture with diamond major Alrosa. While the drill programme conducted on PL210 did not define kimberlite it did discover another type of ultramafic rock where the anomaly that was identified by geophysics and geochemistry was located, demonstrating that the technology and techniques used by Alrosa have the potential to be a success. Next year the partners have an extensive follow-up exploration programme planned.
accesso Technology (LON:ACSO): Contract extension
Market Cap: £177.4m; Current Price: 807p
Evidence of cross-selling
- Deployment of accesso Siriusware at Blackpool Pleasure Beach for the 2016 season. It has been a LoQueue customer since 2011 and will now add accesso’s point-of-sale and guest management system. It represents the first Siriusware customer in Europe. No financial details provided.
NORTHLAND CAPITAL PARTNERS VIEW: Further evidence of cross-selling in accesso’s enlarged product set following the 2013 acquisition of Siriusware. In September accesso announced the first same-site integration of ShoWare (acquired with VisionOne in November 2014) and SiriusWare. accesso’s acquisitions broadened its product set but also increased the installed base and there is scope for further cross-selling. The shares continue to trade at the top end of the sector (45.6x FY15 and 34x FY16) reflecting strong growth potential and assuming solid execution.