Three FTSE-AIM Stocks Under Review: Firestone Diamond, Mi-Pay Group & Modern Water

6 min read | December 23, 2019 11:00 PM GMT | By Team Kalkine Media

Firestone Diamond PLC

Firestone Diamond Plc (LON:FDI) is a diamond producer which operates the diamond mine, supply diamonds to the global market. The company mainly operates in Lesotho and Botswana region. The Company has mines in these regions. Liqhobong is situated in Lesotho and BK11 is situated in Botswana.

FDI-News Updates

On 20th December 2019, the company announced its financial results for the year 2019 ended on 30th June 2019.

FDI – Financial Highlights Financial year 2019

(Source: Company’s filings, London Stock Exchange)

In the financial year 2019, the company’s revenue declined to $57.2 million as compared to $62.2 million in the fiscal year 2018 due to challenging conditions in the diamond industry. Cost of sales reduced to $46.9 million against $57.1 million in the same period last year. It was due to the lower cost structure of a new mining contractor. The company’s gross profit for FY2019 was $10.3 million against $5.1 million in FY2018 due to lower cost of sales in FY2019. Loss before tax in FY2019 stood at $50.5 million as compared to a loss of $17.5 million in FY2018 due to impairment charge of $41.6 million in FY2019. The company’s net loss after tax was $56.9 million in FY2019 against a net loss after tax of $14.2 million in FY2018.

FDI-Stock price performance

Daily Chart as on 23rd December 2019, before the market closed (Source: Thomson Reuters)

On December 23rd, 2019, Firestone Diamond Plc shares were trading at GBX 0.7 at the time of writing before the market close (at 9:45 AM GMT), up by 7.69 per cent against the last day closing price. Stock's 52 weeks High and Low are GBX 3.8/GBX 0.4. It has delivered negative 79.85 per cent return in the last one year, and negative 31.70 per cent in the last three months.

The company made its 52-week high of GBX 3.8 on 3rd January 2019 and made its 52-week low of GBX 0.4 on 22nd November 2019. The average volume of the Firestone Diamond Plc shares was 439.12 thousand and it has Market Cap of GBP 4.19 million. Total outstanding shares of the Firestone Diamond Plc are 645.07 million.

Mi-Pay Group PLC

Mi-Pay Group Plc (LON:MPAY) operates in the cardholder payment solutions market. The company focuses on assessing, managing and mitigating fraud risks. The company delivers outsourced on-line and related payment solutions to digital e-commerce clients. The company mainly provides solutions in the mobile sector. It provides solutions to complex challenges by using its integrity to provide a personal and supportive approach. It creates better experiences for its customers and provide better results which helps its customers and clients.

MPAY-News Updates

On 23rd December 2019, the company would shortly be posting to its Shareholders a circular (the "Circular") in connection with the proposed disposal of Mi-Pay Limited to Alphacomm B.V. (the "Disposal"), the proposal to cancel the admission of its ordinary shares to trading on AIM (the "Cancellation") and the intended return of capital to shareholders the Company via a members' voluntary liquidation ("Liquidation").

Mi-Pay announced the proposed disposal of its wholly owned trading subsidiary, Mi-Pay Limited, to Alphacomm B.V. for cash GBP 792,000. After the procedure, Alphacomm ensured that Mi-Pay Limited is sufficiently capitalised.

MPAY – Financial Highlights for H1 Financial year 2019

(Source: Company’s filings, London Stock Exchange)

In the first half of the financial year 2019, the company reported payment transaction value at £58.1 million in H1 2019, which was a 15 per cent increase from H1 2018 at £50.2 million. The company reportedly recognised revenue of £1.7 million in the first half of 2019 as compared to revenue of £1.6 million in the first half of the previous year. The company reported the administrative expenses at £1.1 million, which was the same as the previous year. This was due to the cost reduction strategy that began in the year 2018. The company reported a cash balance of £3.1 million as on 30th June 2019.

MPAY-Stock price performance

Daily Chart as on 23rd December 2019, before the market closed (Source: Thomson Reuters)

On December 23rd, 2019, Mi-Pay Group Plc shares were trading at GBX 1.25 at the time of writing before the market close (at 11:50 AM GMT), down by 24.24 per cent against the last day closing price. Stock's 52 weeks High and Low are GBX 13/GBX 1.11. It has delivered negative 86.11 per cent return in the last one year, and negative 80.77 per cent in the last one month. The average volume of the Mi-Pay Group Plc shares is 536.42 thousand and it has Market Cap of GBP 754.62 thousand. Total outstanding shares of the Mi-Pay Group Plc are 45.73 million.

Modern Water PLC

Business Overview

Modern Water Plc (LON:MWG) is a waste-water treatment company. It provides technologies, products and services related to the treatment and disposal of wastewater. Its services include construction, commissioning and operation of desalination plants and water-cooling systems.

Recent News

On 25th November 2019, the company announced that it had sold its largest by volume All-Membrane Brine Concentrator technology ("AMBC"), to South Korea's first deep seawater salt production project.

Financial Highlights – H1 Financial year 2019 (30th June 2019, GBP, thousand)

(Source: Interim Report, Company Website)

In the first half of the financial year 2019, the company’s revenue increased to GBP 2,019 thousand as compared to GBP 1,894 thousand in the first half of the fiscal year 2018 due to the sale of a full-sized plant of brine concentration technology and the significant increase in Monitoring Division's sales. The operating loss reduced to GBP 1,180 thousand against loss of GBP 1,484 thousand in the same period in FY2018. The basic loss per share was 0.91p in the first half of the fiscal year 2019 as compared to a loss of 1.46p in H1 FY2018.

Share Price Performance

Daily Chart as on 23rd December 2019, before the market closed (Source: Thomson Reuters)

On December 23rd, 2019, Modern Water Plc shares were trading at GBX 1.29 at the time of writing before the market close (at 11:40 AM GMT), up by 12 per cent against the last day closing price. Stock's 52 weeks High and Low are GBX 8.38/GBX 1. The stock has given a negative 82.80 per cent returns during the previous year. In the last three months and one month, the company’s share price has dropped by 15.40 per cent and 7.85 per cent respectively.

The company made its 52-week high of GBX 8.38 on 2nd January 2019 and made its 52-week low of GBX 1 on 12th December 2019. The average volume of the Modern Water Plc shares is 2.47 million and it has Market Cap of GBP 1.43 million. Total outstanding shares of the Modern Water Plc are 124.69 million.


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