New Issues Examined by Oliver Haill

First to AIM, which has welcomed just three newcomers in the year so far, which compares with 53 by the end of July last year. The most recent newcomer, Critical Information Group, has barely had time to do anything since listing in June. Yet shares in the media shell have skipped up seven per cent from their issue price to 107p in anticipation of some action and perhaps with investors starved of other new blood.

Having joined with a £220 million fundraising as recently as May, Max Property has not had much more time but is already in negotiations to complete on its first significant transaction, that of warehouse owner Industrious from the receivers.

Max Property, brought to market by wealthy sector specialist Nick Leslau, says due diligence is ‘well advanced’ and the board anticipates sewing up the deal imminently. Its shares have fallen back from the 127.5p high reached in debut dealings on AIM to 120p.

AIM’s first float of the year, Singapore-based Yujin International, has had a lively ride since disembarking in February, including a fire on one of its six ships. However, the company’s niche of the shipping industry has so far escaped the brunt of the financial crisis and the group grew 2008 turnover 73 per cent to $18.36 million (£11.1 million), although pre-tax profits were 2.7 per cent lower at $3.65 million.

Sales in the first quarter of 2009, rather encouragingly, ‘continued on a strong note’ but softened in the second and are expected to ‘remain weak’ in the third. Shares in the company have sailed 27 per cent higher to 48p since their arrival and there are plans for much expansion of the fleet, but given recent uncertain signs, I would urge avoiding for now.

PLUS signs
The majority of those joining PLUS in this period of economic flux have been investment and shell companies, with Caspian Minerals showing the most significant signs of potential progress. It is poised to complete a reverse takeover of ‘substantial interests’ in onshore Russian oil and gas.

Elsewhere, deals have proved far harder to scout and complete. Since joining in January, neither Africa-focused shell Creative Financial Technologies nor Dubai-based Phoenician Corporation IV have revealed any news to the market at all.

Another, the renewable sector-focused shell Abraxus, has continued its fruitless hunt for a deal since moving down to the ‘more appropriate’ PLUS in May, following its delisting from AIM due to inactivity. Abraxus’s current focus is on Central and Eastern Europe, ‘where opportunities remain attractive and there is strong potential for capital growth’. Its shares have advanced eight per cent to 3.25p since their first foray onto PLUS regardless.

Inertia and allegations
Dundee-based 3D Diagnostic Imaging, which has £1.8 million of pre-float funding to commercialise a device that detects hidden tooth decay without X-rays, seems to have been almost ignored on PLUS. This is despite recent good news that a UK distribution deal had been struck that is expected to generate first revenues for the company. Its shares have remained unmoved at 7p, with share trades going through on only two days out of its three months on the exchange.

Shares in Tradelabs, the operator of an automatic algorithmic trading desk, have been much more active. However, they have not had the warmest of receptions, falling from 24.5p in January to 12.75p. When ‘criminal allegations’ were levelled at chief executive Niraj Goel on the internet, house broker St Helen’s commissioned an ‘independent investigation’ and ‘found no evidence to substantiate’ the claims, but rather a widespread campaign levelled against the company.

Nonetheless, business is going well, with the ‘BotTrading’ desk profitable during the six months to December and, with subscribers up 133 per cent to 1,680, the company made profits of £661,000 before tax at the interim.