A Review Of 5 AIM Listed Stocks – TSI, COG, MTR, RBD and SOLO

  • Aug 28, 2019 BST
  • Team Kalkine
A Review Of 5 AIM Listed Stocks – TSI, COG, MTR, RBD and SOLO

Two Shields Investments PLC

Two Shields Investments PLC (TSI) is a London-headquartered investment company which seeks to identify, assess and execute investment opportunities focused on digital and technology-enabled businesses, with an aim to build a high-quality portfolio of investments. The group is listed on the AIM market and has exposure to the fast-growing and scalable sectors like technology metal, which has the potential to deliver returns to shareholders.

Recent Development

The company on 28 August provided an update on ground operations being undertaken at the Molopo Farms Complex project by Kalahari Key Mineral Exploration Pty Ltd, which stated that 4 key targets would be the focus for planned Phase 1 drilling out of 6 high priority drilling targets that have been identified. To outline the full extent of the drill programme planned and cover the priority drill targets, a full technical report is being finalised.

Financial Highlights (H1 FY 2019, in £)

During the six months ended 30 September 2018, the company reported revenues of £262 (2017: £1,048), while the operating loss was £1,057,850 (2017: loss of £244,453), reflecting a loss on fair value of assets, which resulted in net realised and unrealised losses of £846,171 (2017: gain £1,264). The company had cash reserves of £59,484 (2017: £1,476,253) at 30 September 2018, and net cash outflow from operating activities amounted to £265,184.

Share Price Commentary

On 28th August 2019, at the time of writing (at 3:12 pm GMT, before the market closed), TSI was trading at GBX 0.16, which was lower by 1.53 per cent versus the closing price on the previous day. Stock's 52 weeks High and Low is GBX 0.31/GBX 0.07. The outstanding market capitalisation was around GBP 5.57 million.

Conclusion

While the management remains optimistic about the investment portfolio of the group, it noted that general market conditions were tough in recent months due to international political uncertainty. The group is exposed to multiple opportunities in highly dynamic markets, helped by the strategy of diversification undertaken by the company.

Cambridge Cognition PLC

Cambridge Cognition PLC (COG) is a Cambridge-headquartered international digital neuroscience company which supports clients in over 100 countries, including over 800 universities worldwide and top 20 pharmaceutical and biotechnology companies in the world. Using scientifically validated digital health solutions, the group seeks to optimise the assessment of cognition for improved brain health research with an aim to improve patient outcomes and accelerate safe and effective treatment development. The group has differentiated its operations in three operating segments, namely Software, Services and Hardware.

Trading Update

In the first half of the financial year 2019, the group reported that revenue for the period declined to £2.17 million (H1 2018: £2.75 million), attributing the decrease to challenging trading conditions. Due to the decline in revenue and a 30% increase in R&D investment, the loss for the year is expected to be around £2.80 million (2018: £1.44 million loss) and revenue during the year is expected to be £5.50 million (2018: £6.13 million).

Financial Highlights (FY 2018, in £m)

As Software & Services revenue declined during the year ended 31 December 2018 by 10.6%, total revenues declined by 8.9% to £6.13m (2017: £6.73m). Due to the higher cost of sales relating to the increased customisation of products and a slight increase in low-margin hardware sales, gross profit declined to £5.23m (2017: £6.11m). Loss before tax was £1.49m (2017: loss of £0.28m), while adjusted loss before tax rose to £1.50m (2017: loss of £0.07m). The loss for the year was £1.44m, which resulted into a loss per share of 7.0 pence per share, against a loss per share of 1.3 pence in 2017. Cash outflow from operating activities was £0.64m (2017: £0.62m outflow) and cash balance at 31 December 2018 was £1.11m (2017: £1.86m).

Share Price Commentary

On 28th August 2019, at the time of writing (at 3:15 pm GMT, before the market closed), COG was trading at GBX 31.5, which was higher by 10.52 per cent versus the closing price of the previous day. Stock's 52 weeks High and Low is GBX 148.89/GBX 25.00. The outstanding market capitalisation was around GBP 6.85 million.

Conclusion

Led by Digital solutions, eCOA and NeuroVocalix™, prospects of the company’s products have improved in recent years, the result of which will become clearer when the group announces its interim results to 30 June on 19 September 2019. To improve sales and commercialisation in the second half of 2019 and beyond, the group is taking pertinent steps, considering a difficult period for the core product range of the group.

Metal Tiger PLC

Metal Tiger PLC (MTR) is a London-headquartered investing company that seeks to invest in highly prospective and significantly undervalued opportunities. The AIM-listed group is focused on the mineral exploration and development sector to maximise the value of natural resource interests. The operations of the group are primarily differentiated in two core sectors, namely Direct Equities and Direct Projects.

Financial Highlights (FY 2018, in m)

The company reported that the sale of interests in exploration operations in Botswana during the year was £12,530,000. However, due to a negative impact of £12,434,000 from movement in fair value of Direct Equities Division investments, operation loss was £4,271,000, against a profit of £510,000 reported last year. The loss for the year before taxation was £3,958,000 against a loss of £347,000 in the prior year, while the total comprehensive loss for the period was £3,565,000, versus a loss of £206,000 in FY 2017. Loss per share rose to 0.28p from 0.02 pence in FY 2017.

Share Price Commentary

On 28th August 2019, at the time of writing (at 3:21 pm GMT, before the market closed), MTR was trading at GBX 1.15, which was lower by 4.16 per cent versus the closing price of the previous day. Stock's 52 weeks High and Low is GBX 2.65/GBX 1.00. The outstanding market capitalisation was around GBP 18.6 million.

Conclusion

The majority of the investment portfolio of the group is invested in MOD Resources Limited, which is currently looking to advance the project to commercialise production, which would help the firm to benefit from the potential upside in the T3 Copper Project. The group has several Direct Equity Division assets in early-stage, exploration-focused mining companies, which faces external risks, including economic recession and investor sentiment, that can materially impact or influence the investment environment.

Reabold Resources PLC

Reabold Resources PLC (RBD) is a London-headquartered upstream oil & gas investment company, which is focussed on maintaining a low cost, non-operator strategy with high potential upside. The company seeks to invest in companies with pure exposure to the specific target asset where an injection of its capital facilitates near-term activity. The operations of the group are differentiated in two geographical segments, namely Europe and USA.

Financial Highlights (FY 2018, in m)

The company reported revenues of £194,000 for the year ended 31 December 2018, helping it to post a gross profit of £111,000. However, as administration expenses and share-based payments expense rose, loss on ordinary activities rose to £1,861,000 from £1,152,000 reported in 2017, while loss before tax for the FY2018 increased to £2,016,000. However, basic and fully diluted loss per share declined to 0.07 pence from 0.18 pence. The group recorded cash and cash equivalents worth £7,778,000 at the end of the year and cash used in operating activities rose to £897,000 from £355,000 in FY2017.

Share Price Commentary

On 28th August 2019, at the time of writing (at 3:24 pm GMT, before the market closed), RBD was trading at GBX 1.275, which was higher by 2 per cent versus the closing price of previous day. Stock's 52 weeks High and Low is GBX 1.4/GBX 0.51. The outstanding market capitalisation was around GBP 50.5 million.

Conclusion

Presently, the upstream oil & gas industry is characterised by robust project returns, a healthy commodity price outlook and low costs following the downturn. There are abundant interesting projects in need of financing, due to lack of activity in conventional oil & gas over the last half a decade, providing the company with immense opportunities.

Solo Oil PLC

Solo Oil PLC (SOLO) is a London-headquartered oil and gas Investment company, which seeks to invest in a diverse portfolio of oil and gas resource developments and production assets across the world, providing the company with direct and indirect interests in exploration, development and production. The company is listed on the London AIM Market.

Financial Highlights (FY 2018, in £m)

The company did not report any revenue from contracts with customers but gain on sale of investment and income from shares held for trading helped the group to post a gross profit of £1,777,000 in FY 2018, against £614,000 reported in the prior year. Even as operating costs rose during the period, operating loss declined to £378,000 from £734,000. Loss before tax remained largely flat at £1,667,000 in the reported year, while basic loss per share declined to 0.33 pence from 0.43 pence in FY 2017. Cash and cash equivalents available with the company rose to £2,999,000, while net cash outflow from operating activities declined to £266,000 from £794,000 reported in the previous year.

Share Price Commentary

On 28th August 2019, at the time of writing (at 3:27 pm GMT, before the market closed), SOLO was trading at GBX 1.40, which was lower by 3.44 per cent versus the closing price of the previous day. Stock's 52 weeks High and Low is GBX 2.80/GBX 1.20. The outstanding market capitalisation was around GBP 9.11 million.

Conclusion

The company had cash of £2,999,000 at year-end with zero debt, indicating a strong balance sheet, after the group fully paid its convertible loan facility. The company continues to review cost-cutting initiatives as cost discipline remains a key focus of the company. To diversify cashflow and portfolio of the group, the management is looking for acquisition opportunities which have capabilities to grow the business significantly.

 

Comparative chart of TSI, COG, MTR, RBD and SOLO

(Source: Thomson Reuters)

With Bank of England reducing the interest rates to a historic low level, the spotlight is back on diverse investment opportunities. 

Amidst this, are you getting worried about these falling interest rates and wondering where to put your money?

Well! Team Kalkine has a solution for you. You still can earn a relatively stable income by putting money in the dividend-paying stocks.

We think it is the perfect time when you should start accumulating selective dividend stocks to beat the low-interest rates, while we provide a tailored offering in view of valuable stock opportunities and any dividend cut backs to be considered amid scenarios including a prolonged market meltdown.

To know more about these dividend stocks, click here

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK