The initial batch of  310 ElectraGen H2 units will be installed by ACME ahead of the deployment of the natural gas fueled fuel cell systems, due to commence in 2010.

As previously announced, significant advancements in its proprietary technologies will allow IdaTech to produce more robust and significantly more cost effective integrated fuel cell systems by 2010. The first of these products to be launched will be the natural gas fuelled system for deployment in early 2010 under the ACME contract, 9,690 systems in all, taking the number of generator units sold to ACME to the agreed number of 10,000. 

IdaTech and ACME signed a fuel cell generator supply agreement in 2008.

IdaTech CEO Hal Koyama said: “Passing this (the tests) and securing the purchase order for the first 310  ElectraGen H2 validates the robustness of the product and ACME's commitment to the program.  Our system integration skills and real world field experience, gained from the 150 systems we have already deployed (elsewhere), have proved invaluable to ensuring the success of the ElectraGen H2.”

The Shanghai Comprehensive Index advanced 1.73 percent to 3063.25. The SME Comprehensive Index added 1.02 percent to 4399.04. The Hang Seng Index declined 1.09 percent to 18178.05. The Hang Seng Growth Enterprises Index advanced 0.45 percent to 577.78. The Hang Seng China Enterprise Index added 0.08 percent to 10971.89. 

Taiwan's TAIEX Index added 1.35 percent to 6667.53.  

PetroChina (SH:601857; HK:0857), the country’s biggest oil producer, gained 3.29 percent on Shanghai trading but lost 0.35 percent on Hong Kong trading. China Petroleum & Chemical Corp. (SH:600028; HK:0386), Asia’s largest oil refiner, advanced 3.90 percent on Shanghai but slid 0.68 percent on Hong Kong.

China Shenhua Energy Co. (SH:601088,HK:1088), the nation’s largest coal producer, climbed 4.33 percent on Shanghai but retreated 0.7 percent on Hong Kong.

Zijin Mining Group Co. (SH:601899; HK:2899), China’s largest gold producer, surged 7.36 percent on Shanghai but dropped 1.14 percent on Hong Kong.  

Anti-H1N1-flu shares surged again after seven students in Beijing’s Nanhu Zhongyuan Primary School were confirmed as infected with the virus last night. Beijing Tiantan Biological Products Corp. (SH:600161) and Guilin Layn Natural Ingredients Co. (SZ:002166) surged to the 10 percent trading cap. Zhejiang Conba Pharmaceutical Co. (SH:600572) advanced 3.94 percent.  

Greater China Technology Group (HK:8032), a traditional Chinese medicine vendor, surged 40.68 percent after announcing the acquisition of two thirds stakes in coolpoint Group, a producer of  air-conditioning water-heater.

It announced in May that its 40 percent farm-in partner Canamens Ltd planned to withdraw from Siekierki following a "strategic review of its priorities", and cited Canamens as saying the  withdrawal should not be viewed as an indication of any change in its view of the project's potential.

Under the terms of the deal, Aurelian will buy back Canamens’ 40 percent interest in its Polish unit Energia Zachod for €8,870, giving Aurelian a 90 percent stake in EZ. Canamens will also waive its right to repayment of loans of approximately €400,000 made to Aurelian Group companies and make a contribution toward committed project expenses of US$500,000.

The company is currently actively involved in discussions with potential partners which it expects to conclude this summer, it added.

He is joining Prudential from Lloyds Banking Group PLC (LLOY) where he has worked since 2002 in a number of senior leadership roles across insurance and retail banking including as managing director, Direct Channels UK Retail Banking, MD of HBOS Financial Services and MD of HBOS General Insurance.

Today Extract Resources reported a revised JORC compliant resource estimate for Rossing South, which lies just south of Rio Tinto’s Rossing Mine – one of the largest uranium mines in the world.   The new estimate is 145 million pounds with an average grade of 449 parts per million (ppm) U3O8 and represents a 34% increase size from the previous estimate. The grade of the resource also increased.

“This represents the highest granite-hosted uranium deposit in Namibia,” Extract stated.
While the size and grade of the deposit already place it as one of the most important uranium discoveries in year, there appears to be plenty more to come.  Drilling is underway at ‘Zone 2’ which sits on strike and south of Zone 1, and both deposits are still open along strike and down dip, suggesting there plenty of scope for further upgrades in the size of the project.  A maiden resource for Zone 2 is expected to be completed in August with analysts anticipating at least 100 million pounds of uranium

Ambrian Capital summed up today’s news perfectly, noting that the resource estimate released today was not only ahead of expectations, but was further buoyed by the increase in grade.  Ambrian went on to note that the accompanying map to the press release hinted at possibly more blue sky further to the south were positive spectrometer results have been recorded.  On the back of today’s results, Ambrian reiterated its positive stance and upped its price target to 171 pence.

Kalahari Chairman Mark Hohnen said, "These results yet again underpin that Rossing South is one of the world's most significant uranium discoveries. The 34% increase in resource for Zone 1 to 145 million lbs of U3O8 is fantastic news and in line with our estimates. Additionally we were hugely excited about the increase in grade which makes Rossing South the highest grade granite hosted uranium deposit in Namibia. We look forward to Extract publishing a maiden resource for Zone 2 in August, which we believe will elevate Rossing South into the world's top ten global uranium deposits in terms of contained metal. Importantly the mineralisation at Zone 1 and 2 remains open along strike and down-dip." 

Shares were trading down nearly 13 percent in late morning deals.

The outturn for the first half of the current year will be similar to that of the second half of 2008, with the group trading at broadly breakeven, it said.

However, cash generation has continued to be strong and it expects to end the year with a net cash balance.

The company plans to use the money to accelerate its growth plans, and in particular to finance further development and testing of its range of nutrient products, to finance field trials and to recruit sales staff. The technical sales team will be expanded with the aim of increasing direct sales in the 15 countries where the group's products are already being sold and supporting the Arysta LifeScience Corp sales effort.

Chief executive Peter Blezard commented: “With the continuing and strong support of our current shareholders and the confidence shown in the company by new investors we will apply this growth plan fundraising to further develop the company's commercial potential. “

The placing will be used to complete additional drilling at the Tonkolili Iron Ore Project in Sierra Leone and to fast track the feasibility study for the Tonkolili Iron Ore body, port, rail, and power and infrastructure rail projects.

“The proceeds will allow us to develop the magnetite iron ore resource towards our target of 10 billion tonnes and fast track the Tonkolili Definitive Feasibility Study, to create substantial value for our shareholders. In addition we will undertake engineering work on the infrastructure required to support our iron ore projects,” Frank Timis, Executive Chairman of African Minerals, said. “This is a very large step towards us realising the full potential of our world class iron ore deposit at Tonkolili and the future infrastructure rehabilitation and construction work will in due course provide positive benefits to the local community and the economy of Sierra Leone.”

Peace will continue in his role at Experian until a successor has been appointed.

Peace joined the Standard Chartered board as deputy chairman in August 2007 and has been acting chairman since mid-January 2009.

He will spend at least three days a week in his duties as non-executive chairman of Standard Chartered, which will become his primary role. He will remain as chairman of Burberry Group PLC (LSE: BRBY).

Accsys’ primary focus is on the production of Accoya acetylated wood and technology licensing via its wholly owned subsidiary, Titan Wood Ltd.

Chairman Willy Paterson-Brown said: “Our Accoya wood product continues to gain strong brand recognition on a growing international stage and we have successfully launched Tricoya, our second brand.”

Revenue rose to €31.2 million from €27.3 million in the previous full year. Pretax profit fell to €1.8 million from €5.4 million, hit mainly by higher administrative expenses. Tax credits applied in the year lifted the net profit to €5.4 million from 4.08.

The period under review saw Titan Wood increase the capacity of its production facility in Arnhem, The Netherlands, by more than 33 percent through process improvements and sign a joint development agreement with Medite Europe Ltd to commercialise an economically viable, non-toxic, and stable medium density fibreboard (MDF) panel made from Tricoya wood elements.

Titan also signed a licence option agreement with Italy’s Safwood SpA in respect of rights to manufacture Accoya wood in Italy, Switzerland and Austria for a nameplate capacity of 120,000 cubic metres per annum. In May, the unit made a move that Accsys hopes will help open the North American market by clinching the contract to supply decking made  from Accoya wood to Green Life Smart Life, a Rhode Island-based green building showcase home, promoting the latest advances in green building techniques, tools, products and materials.

Accsys expects to sign additional license options and agreements in the current year. “We continue to develop strong relationships with potential licensees and, whilst the current business environment has delayed the realisation of these prospects, I remain confident that we will achieve our targets and deliver the expected results,” the chairman said.

The cash balance at March 31 2009 was €17.5 million, down from €46.2 million a year earlier due to capital expenditure on the Arnhem plant and a significant increase in working capital to support the development of the business.

The group has no debt and an available equity line of credit for up to €20 million over three years. In addition, the company has signed an agreement with an institutional investor to issue shares to a value of €4 million in two equal tranches during July and September 2009.

Accsys paid a dividend of €0.01 per share in the previous year, but does not plan on doing so this year as the board deems it prudent to protect as strong a balance sheet as possible during the economic downturn. The board will consider dividend payments again in the future as appropriate.

Regarding the licence with Diamond Wood, it said it has been informed it is likely the funding required for building the first phase of the production plant there will be secured before the end of 2009.

The company began shipping Accoya wood to China during the year as Diamond Wood builds and establish the market for it in advance of the construction of its own facility, which, subject to the successful raising of funding, is currently expected to come on stream in early 2011.

Saudi financial group Al Rajhi Holdings WLL, which has a licence for 150,000 cubic metres annual capacity and exclusive rights for the territories of Saudi Arabia, Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates, is currently in the detailed planning and engineering design phase, and Accsys is working with Al Rajhi to confirm their site selection and establish appropriate partners for operating and distribution activities.

Discussions with additional potential licensees are continuing, and the group is now starting to see renewed interest and enthusiasm as it is seeing signs the recent economic turbulence and uncertainty are coming to an end. “We remain confident about the long term prospects for our Accoya wood technology,” Paterson-Brown added.

In a pre-close trading update ahead of reporting results for the first half to end-June 2009, it said the order backlog remains in excess of £220 million securing over 90 percent of 2009's anticipated revenues.

The designer and manufacturer of flexible risers and flowlines for the oil and gas industry added the Pyrenees project for BHP Billiton (LSE: BLT; NYSE, ASX: BHP)  is progressing well, with final pipe deliveries complete, and Seastream's offshore installation work is expected to be completed before year-end. Seastream is the group’s joint venture with Sea Trucks Group.

Petrofac will undertake the engineering, procurement and construction (EPC) of the gas compression system, and associated facilities at the Kauther gas plant, in addition to undertaking the commissioning and six months of initial operations.

The project follows the successful completion of the Kauther gas plant in 2007, which Petrofac built on an EPC basis for PDO, including commissioning and operations. 

These two sources of ground water, "GRA 5", and "GRA 1" are together capable of sustaining pumped flowrates of approximately 12,000 megalitres of water per annum over a15 year time frame.  With the water requirement for the current base case for the Boseto Copper Project (10 year project at 2Mtpa processing rate) estimated  at 2,500 megalitres  of water per  annum, these two areas alone have the capacity to deliver more than four times the annual water requirement of the Boseto Copper project for five years longer than the currently.
 
Comment: This is extremely positive news for Discovery. With no shortage of mineral resources, we believe it opens the door for an increase in mill capacity which would bring economies of scale.

Extract has announced a new JORC resource estimate of 145 million pounds of uranium (U308) for Zone 1 Rossing South Project in Namibia.

This is a 34% increase from the previous estimate, 20 per cent of that resources in now in the Indicated category. 

Overall resource grade has also increased to 449 ppm u308. 

This represents the highest granite-hosted uranium deposit in Namibia.  A maident resource for Zone 2 at Rossing South is due in August 2009.  Together, on current trends would place Rossing South into the top 1p global uranium deposits by containted metal.

Importantly, both Zone 1 and Zone 2 desposits are still open along strike and down dip, pointing to possibility of additional resources.

Extract’s Managing Director, Peter McIntyre, said “The significance of the recent high grade intersections we have been reporting, are now being reflected in this major deposit.  This resource base is expected to support a long life, large scale open pit mining operation and a feasibility study is in progress to quantify this potential.”

Kalahari Chairman Mark Hohnen said, "These results yet again underpin that Rossing South is one of the world's most significant uranium discoveries. The 34% increase in resource for Zone 1 to 145 million lbs of U3O8 is fantastic news and in line with our estimates. Additionally we were hugely excited about the increase in grade which makes Rossing South the highest grade granite hosted uranium deposit in Namibia. We look forward to Extract publishing a maiden resource for Zone 2 in August, which we believe will elevate Rossing South into the world's top ten global uranium deposits in terms of contained metal. Importantly the mineralisation at Zone 1 and 2 remains open along strike and down-dip." 

Importantly, ground water resources will be more than sufficient to meet the processing and other operational needs of its 100% owned Boseto Copper Project. 

In fact, water availability significantly exceeds the requirements of currently planned operations with more than four times the project requirement available over a 15 year period.

Discovery Metals’ Managing Director, Brad Sampson said this is an important milestone for the Boseto Copper Project. A water resource has been identified with capacity to more than meet the project’s operational requirements, thus eliminating a key project risk. "We have now demonstrated that neither the life nor scale of the project is likely to be constrained by water supply.”

After an extensive program which included the drilling of eleven water exploration boreholes, the water resources planned for use at Boseto are contained within two of the five potential groundwater resource areas identified during the water exploration program.

These were undertaken as part of the Bankable Feasibility Study on the Boseto Copper Project. Borefields which will tap these resources and will be situated within 15 km of the proposed plant site.

Rio rejected a $19.5 billion investment proposal from its biggest shareholder Chinalco of China last month and instead opted for the share sale and an iron ore joint venture with BHP Billiton Ltd. Chinalco, as the state-owned company is known, confirmed today that its took up its rights in the share sale.

Its major shareholder, China's state-owned Chinalco, later said it had taken up its full entitlement to the offer, which ranks as the fifth-biggest on record. It was a sign that Chinalco was far from severing ties with Rio Tinto.

Rio was trading at $52.28, up 1.32% on the ASX.

Installation works on the Castello production field east of Milan have commenced.

Castello is 78% complete. First production is scheduled for late October 2009 - at an initial production capacity of 2.7 million cubic feet per day.

Italian contractor, Semat SpA, have commenced site activities today and expects to complete the civil works and plant installation within a target four-month schedule.

Po Valley Energy Managing Director, Michael Masterman said all production plant and equipment has been built, factory tested and awaiting completion of the 1st phase of civil works ready for installation.

Polo acquired 4.48 million additional shares in Berkeley Resources in on-market purchases in June at an average price of $1.19 per share.

Polo has increased its stake from 11.44% to 15.07% of Berkeley. The share register is getting extremely interesting given Anglo American's acquisition of Berkeley shares in January.

Investors may recall that Berkeley will undertake the feasibility study over the Salamanca Regional Uranium Project.  Berkeley’s objective is to generate a total resource base for the project of over 65m lbs of U3O8 and to complete a Feasibility Study within 18 months of approval of shareholders in January 2009.

Berkeley will partner with Spanish utility ENUSA to investigate the regeneration of uranium production in Spain.

Fly540, also known as Five Forty Aviation, started operations in November 2006 from its base in Nairobi, Kenya.  It operates domestic and international passenger and freight services in East Africa. The move to Zimbabwe is part of the strategy to roll out the service across Africa with local partners in each country.

Lonrho holds a 49 percent stake in the airline.

Flights from Zimbabwe are scheduled to start from September 2009.

Fly540 Zimbabwe will deliver affordable air links to key domestic and regional cities from a Harare hub and will be an integral part of the Fly540 network that will be flying in nine African countries by the end of 2009, Lonrho said.  

The launch of Fly540 Zimbabwe is also central to LonZim's investment strategy of identifying current market opportunities in Zimbabwe and establishing companies that will benefit from the economic recovery of the country.

LonZim Air, a wholly owned subsidiary of LonZim plc, has invested US$200,000 in obtaining the necessary air services licence. LonZim will invest a further US$4.3 million in an ATR 42 turbo prop from the Lonrho Aviation fleet, and US$ 2.0 million for the operational costs associated with commencing operations and a working capital provision of US$3.9 million for the first twelve months.

Ferrexpo is the only company listed in London that offers a pure play on the iron ore market, so its shares are often considered by the analyst community as a “beta” trade on the iron ore spot price. 

The Ukraine is also home the world’s largest iron ore resources, and has the potential to become a very large iron ore exporter, and thanks to its strategic location, can export raw material by rail into Europe or by sea to international markets.  

Accordingly, the agreement has been terminated and Mitsubishi will not provide the envisaged exploration funding for the projects. The properties will continue to remain 100 percent owned by Caledonia.

Mitsubishi concluded that the conditions precedent relating to security of tenure of the prospecting rights held by Caledonia and its subsidiaries due to the Broad Based Black Economic Empowerment requirements imposed by the government do not meet their requirements.

Caledonia will explore and evaluate other strategic options in respect of the projects.

Adding a cautious contribution for the part year to December 2009 gives forecasts of £7.45m with 6.84p to December 2009 and a 10% lift to 2010 numbers. Bloomsbury still has a free cash pile in excess of £25m to make further EPS enhancing acquisitions. Although the rating is high at 18.2 times we believe the group will continue to deploy its cash in EPS accretive acquisitions, so we maintain our BUY recommendation with a 136p price target.

Zytronic (ZYT, 172p, £25.24m) Company is today holding an investor forum that should help investors appreciate the group. The touch screen technology has been validated this morning by its selection as the screen interface on a coca-cola dispensing fountain with an initial roll-out in Georgia and California. On 20/05/09 we called the shares a BUY at 135p, based on 11.1p of EPS to September 2009. As we move closer to the year end investors will focus on next year where forecasts are for £2.7m pre-tax profits with 12.93p EPS, putting the group on a prospective PER of 13.3 times. Although well rated we see further upside to 193p, still a BUY.

K3 Business Technology (KBT, 77.5p, £18.41m) Trading update ahead for the 6 months to June states results are in-line with expectations. Service related income recovered from depressed levels in Q1 to satisfactory levels. The manufacturing operations saw software sales ahead of last year with significantly higher average order values. Order pipeline is strong and net debt is anticipated to be around 39m (£13m at December 2008). The group is seeking acquisitions as well. Forecasts to December 2009 are for pre-tax profits of £6.4m with 18.7p EPS, putting the group on a prospective PER of just 4.1x. BUY to the 7x PER level - or 131p.

British Polythene Industries (BPI, 149.5p £39.61m) Trading statement ahead of the interim results to June 2009 are encouraging with results ahead of last year, even after absorbing £2m of reorganisation costs, despite lower volumes and a difficult trading environment. Key benefits have arisen from stable raw materials and demand from the horticultural sector better than has been seen “for many years”. Forecasts to December 2009 are for pre-tax profits of £8.1m with 22.2p EPS, we repeat our 14/05/09 BUY recommendation and maintain our target price of 166p.


CustomVis (CUS, 1.73p, £2.93m) Has announced another sale of its laser eye surgery equipment, this time to France following an industry conference in Nice. As a result the group expects the year sales to June 2009 to be slightly ahead of the markets anticipated £1.7m. A the group moves towards a cash positive trading position the shares should begin to reflect the NAV – which at £3.2m represents just about sufficient upside to BUY the shares to the 1.9p level.
 

Access Intelligence (ACC, 4.375p, £6.98m) The group has announced the acquisition of Ether-Ray for £2.413m in cash. The group has two key products, both delivered as a Software as a Service model, the first being a corporate communications suite and the second a database for journalists and media professionals. To August 2008 Ether-Ray had sales of £0.888m with a pre-tax, pre-interest profit of £0.38m. The acquisition continues Access Intelligence’s thrust into SAAS and is made on a sensible rating.  The acquisition has been part funded by the issue of £1.75m of convertible loan notes that carry a 6% interest rate and can be converted at 4p. We last commented on ACC on 24/06/09 at 4.875p as a HOLD, which we repeat.
 

Brady (BRY, 51.5p, £14.44m) Has announced another contract, this time with a leading global investment bank and a member of London Precious Metals Clearing Limited for its metals inventory management and connection to the clearing system. The revenues will begin to benefit the group from H2 onwards. Forecasts to December 2009 of around £1.4m pre-tax profits with 3p EPS put the group on a prospective PER of 17.2x – appropriate, HOLD.
 

Timestrip (TIME, 1.575p, £7.82m) Has announced the initial findings of its trials with Timestrip IV, the timing system used to highlight when an intravenous cannula requires changing, at the Whittington Hospital in London. Findings are that it did not require additional record keeping, was 100% accurate, was welcomed by the patients and was preferred by some nurses - though the acceptance would rise dramatically if the cannula and the Timestrip were co-located. Although the co-location is required the Whittington hospital suggests it could become a standard component of their cannulation packs. This is clearly good news and re-enforces our belief that Timestrip IV is the company making development. We repeat our 11/06/09 SPECULATIVE BUY recommendation last made at the same price.
 

Tuesday 30 June 2009

Media Corp (MDC, 1.25p, £3.32m) Interim results to March from the advertising and internet publisher reveal turnover up 18% to £2m (£1.7m), a loss before tax of £0.898m (loss £0.454m) and net cash of £2.5m post a £0.7m share buy-back (£4.9m). The second half is expected to benefits from cost reductions that are reducing expenses in line with turnover. The group is seeing some signs of a recovery in the internet advertising operation, Eyeconomy, while Gambling.com remains depressed due to the US legislation.  In March the group announced it had received a bid approach, consequently our recommendation remains HOLD and await developments.

Earthport (EPO, 67.25p, £57.77m) A strategic review has been announced on how to optimise shareholder value, and includes the news of a possible bid approach for the company. Our recommendation remains a HOLD, pending potential developments on the approach.

Management Consulting (MMC, 24p, £79.52m) Trading update covering the interim period. Alexander Proudfoot (AP) is expected to report sales in-line with 2008, though profits will be higher due to a favourable FOREX and the better profitability of cost reduction program contracts. AP is closing its Australian office following the completion of major projects. Ineum Consulting has been resilient with the French business proving resilient, though the Parsons business was so slow it was closed. Kurt Salmon Associates was hit in both the consumer and healthcare markets and that will result in revenues down 20-25% - even worse on a constant currency basis (35-40% down), but there are signs of a modest pickup and it is expected to return to profits in the second half. Costs reduction include headcount falling from 2150 to 1850 at the end of June, incurring a cost of £6-7m. H1 revenues are anticipated around £150m-£160m (£166.7m) with an underlying operating profit of £11.5m-£12.5m (£15.1m) and H1 EPS is expected to be around 1.8p-2.2p (2.8p). H2 order book is 10% lower than the previous year. Brokers forecasts are certain to slip from £32m towards £25m which would imply EPS of some 5.1p, putting the group on 4.7x prospective PER, HOLD.
 

Interior Services Group (ISG, 131.5p, £40.83m) Trading update for the year ending June is reassuring with results in line with expectations. The group shifted emphasis towards fit outs of retail/banks/food retailers/public sector works so offsetting the decline in the London area. Since March there has been a modest recovery in confidence and the group order book stands at some £800m of which £680m, is for completion in the year ending June 2010. Forecasts around £13m pre-tax profits with 32p EPS to June 2009 are followed by £13.2m with 32.2p EPS for the following year, putting the group on  prospective PER around 4.1 times. This is probably too cheap and so we call the shares a somewhat cautious BUY with a price target of 160p.
 

Pub’n’bars (PNB, 4.5p, £1.79m) Final results to December 2008 has seen poor trading resulting in the breaches of loan covenants – triggering a renegotiation of facilities. The group will incur higher charges and has been forced into a restructuring to reduce costs.  For the year revenues increased 11% to £22.3m (so no growth in H2 and masking a 5% like-for-like decline) with underlying operating profits of £1.0m (H1 profit £1.8m, H2 loss £0.8m) with an exceptional charge of £6.4m relating to asset values. The group did not pay a dividend (1.75p). With net interest charges of £0.5m which are certain to increase there is a clear danger of a need for an injection of capital. SELL.


TT Electronics (TTG, 33.5p, £54.23m) H1 trading update highlights the impact on the first 4 months of the year, resulting in losses, and significant restructuring has enabled a return to profitable trading in May and June. The decision to exit the climate control business has released the Forest Farm site and contracts for its sale have been exchanged at £2.3m. Overall group debt is lower than the £113m at the start of the period.  The implication that H1 will have incurred a substantial loss, before exceptionals, is reflected in low forecasts that put the group ahead of events with a PER to December 2009 around 28.6 times and for next year 6.7 times. With the UK Government and others now seeking cost cutting measures and the large military projects likely to feel the knife, we feel the rating is ahead of events and would SELL down to a 25p level.


Pursuit Dynamics (PDX, 79p, £48.46m) Interim results to March 2009 from the innovator of steam and process technology saw revenues of £0.7m (£1.8m), pre-tax loss of £3.3m (£3.8m) with net cash of £4.5m. The group is still transforming from an R&D company towards commercial sales with the group signing contracts for the first PDX Ethanol Reactor Tower and the first sale of its Aquasonic fire-mist system with the first decontamination order received post the interim end. During the period the group closed its direct sales food production orientated operation with the intention of moving to a licensing model for food & brewing. The Chief Executive, John Heathcote, has announced his intention to retire. With sufficient cash and follow on orders practically inevitable in decontamination, ethanol and fire control we rate the company a SPECULATIVE BUY – though the departure of the CEO may shake the share price for some time.
 

Hardide (HDD, 0.425p, £0.81m) Interim results to March 2009 from this specialist coating company reflected the impact on the US demand from oil services operations. Revenues fell 30% to £0.89m (£1.26m) with underlying pre-tax loss of £0.86m (loss £0.89m) before a currency gain of £0.9m on the translation effect on an intercompany loan. The group has mothballed the US plant and has announced the need for long-term financing, while for the time being the group has been extended a loan by 2 of its directors. Given the scope of the dilution from the fund-raising is unknown, the shares rate a Sell down to the NAV of £0.55m – or the 0.29p level.

Messaging International (MES, 0.45p, £1.06m) Final results to December 2008 from this provider of innovative messaging services saw revenues increase 27% to £1.74m (£1.37m) with an increased loss before tax of £0.37m (£0.26m) with increases in selling/marketing/general/admin costs exceeding the increase in gross profits. Funding is being provided by a loan from Mizrahi Tefahot Bank and via grants from the Israeli Office of the Chief Scientist. The group has made good progress with its Text to Landline software and service as well as the PC to mobile application. With services launching in large markets such as Brazil and Russia we rate the company a Speculative Buy.
 

Shieldtech (STEC, 4p, £2.11m) Subsidiary Aegis Engineering has been awarded a significant contract, the actual amount is confidential, as part of the MOD’s body armour system for soft armour protective ballistic panel inserts. We remain concerned over the need for funding and the potential dilution, however with forecasts of £0.34m with 1.04p EPS to June 2009 the shares offer solid value anyway. Buy to the 7p level – though that price target will be reduced by any dilutive share issues.

Scott Wilson (SWG, 68p, £49.64m) Final results to May 2009 saw revenues of £360m (£324.4m) with underlying pre-tax profits of £21.96m (£19.75m), underlying EPS of 19.95p (17.74p) and a full year dividend increased to 4p (3.6p)  for the year, including a 2.67p final dividend payable to shareholders on the register on 11 September 2009. 

The group ended the year with an order book of £291m (£280m). Net debt of £18.3m (£7m) uses little of the £70m committed bank facility, leaving plenty of scope for fill in acquisitions. The group has started the year well, boosted by the UK Government’s fiscal stimulus via road-building and other programs, though the group does note that one contract, Area 7 MAC (Managing Agent Contractor) ends in June 2009 and that it is still seeking a replacement for that work. The group is widely spread and, as recent news has highlighted, still able to win both UK and overseas contracts. Forecasts are for profits around £19m with 16.71p EPS, putting the company on an un-demanding 4 times, we repeat our Buy recommendation last iterated on 29/06/09 with a price target of 100p.

Plastics Capital (PLA, 28p, £7.65m) Final results to March 2009 reveals revenues up 40% to £28.19m (£20.13m) and underlying pre-tax profits of £2.01m (£2.66m) with 10.0p (11.9p) EPS. Revenues were boosted by full year contributions from acquisitions and helped by overseas earning being translated into Sterling. Profits were depressed by the volatility in raw materials as well as currency effects.

A very confident statement highlights that the most recent acquisition, Palagan, is trading ahead of expectations and that the market will throw up more such opportunities. There is little evidence of improving trading conditions but the group does believe that demand levels have reached a floor.  The group has taken advantage of lower cost manufacturing in Thailand with the October opening of a rotating moulding plastics operation that has replaced a large proportion of product previously outsourced in the UK. Little growth this year is expected, the majority of improvement arising from full year contributions from acquired operations and better FOREX translation, giving pre-tax forecasts of £2.8m with 7.5p EPS, putting the company on a too depressed 3.7x. Key reason is the high debt at £20m which investors must note before following our Buy advice with a price target of 34p.

White Young Green (WHY, 25.75p, £13.64m) Trading statement for the year ending July 2009 highlights little change to that announced in May, though the group has won a number of significant contracts, such as a €4.9m contact with the European Commission to deliver a 3 year regional development programme in Serbia, an EU contract to consult on migration policy throughout African Caribbean and Pacific regions, project manage £7.5m of building work for schools in Merton, to act as design and management co-ordinator on a £1.25bn contract to widen the M25 and to advise Hertfordshire Council on a potential residential waste treatment service. WHY has already announced it is in talks with its lenders and had deferred the covenant date to July 2009 and that a further deferral was possible. As result of the loan situation we anticipated some weakness but held the group as a Hold on 18/05/09 at 29p, we now move the group to a Speculative Buy, with a note of caution regarding potential equity dilution

Arc (ARK, 12p, £18.53m) Trading update and the out-come of a strategic review include costs cutting measures that will save £6m annually at a cost of £2.8m. The group as a result expects to be EBITDA positive in the second half of 2009. The group reports revenues are in-line with expectations at £6m to £8m for the first half, despite lengthening sales cycles. With new processors to launch in the Autumn and an ever increasing list of licencees, we reconfirm the Speculative Buy.

The stock was trading 37 percent lower in afternoon deals, having extended losses throughout the session in London.

The Zimbabwe-focused gold and nickel miner had to increase the impairment charge for the period to £174.1 million from the £121.0 million figure it had flagged when reporting interims, as a result of exchange rate movements. The charge was a result of lower commodity prices and production halts at the Zimbabwean mines.

Mwana swung to a pretax loss of £228.1 million from a £28.6 million loss previously, while revenue plunged to £28.3 million from £79.27 million.

At June 26 2009 the group, excluding Bindura Nickel Corp, held cash of £13.8 million, which it believes will be sufficient to complete the first phase of refurbishment at the Freda Rebecca gold mine.

The £4 million first phase of the Freda Rebecca restart programme, funded from existing cash resources, is scheduled for completion at the end of September 2009.  Mwana is targeting annualised production of 50,000 ounces gold by the end of 2010 from the second phase of the programme.

Investment opportunities at BNC, development of the group's base and precious metal exploration prospects in the Democratic Republic of Congo, and working capital needs are likely to require additional financing in due course.

“We are hopeful that the current gradual recovery in commodity prices and improvements in the Zimbabwean economic climate will allow us to rebuild our operations, as well as give us the opportunity for improved valuations of our assets in the future,” chairman Oliver Baring said.

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The drill program will test for the possible high grade extension of Hathor's adjacent Roughrider zone onto the Waterbury Lake property. Three of the holes will target locations in close proximity to the Roughrider discovery step-out holes MWNE-09-116 and MWNE-09-129.

Two drill holes will test a resistivity low anomaly, located approximately 8 kilometres to the southwest of the Denison-AREVA Midwest deposit. The final two holes will test a resistivity low anomaly located approximately 3 kilometres north of Discovery Bay. Work is expected to begin in August.

All results from the winter 2009 drill program, completed during the third week of March, have been received. Analysis of all available data confirms the presence of multiple exploration targets, in particular, along the east-west Discovery Bay Corridor - Discovery Bay, Disco Bay and Talisker - in addition to the newly discovered northeast trend, known as Shuttle Lake. All of these targets remain highly prospective, and warrant follow-up exploration drilling.

The partners have budgeted C$4.0 million for exploration in 2009.

The KEPCO consortium, also known as Korea Waterbury Uranium Ltd Partnership, primarily comprises Korean-based companies. Led by Korea Electric Power Corp, other participating companies include Korea Hydro & Nuclear Power, Korea Nuclear Fuel Co, Hanwha Corp and Gravis Capital Corp, a private Canadian uranium investment company.

In May 2009 Vatukoula announced a strategic partnership with Canadian Zinc after approaches it announced in April had been withdrawn and that talks with all parties considering making an offer for the company had ended.

Canadian Zinc had agreed to subscribe for 200 million new Vatukoula shares at 0.6 pence per share, which would raise £1.2 million for the company and increase CZ’s holding to 20.01 percent from its then 13.7 percent stake.

Vatukoula had also conditionally agreed to grant to CZ an option to acquire up to 250 million further shares in the company in order to maintain its equity stake in Vatukoula if a call option previously granted by CZ over 200 million existing CZ shares to Viso Gero Global Inc is exercised by the January 9 2010 deadline.