Qonnectis upbeat

A buoyant trading statement from remote meter-reading technology specialist Qonnectis (QTI) boosted its shares almost 17 per cent today to 1.75p. The company has ‘continued to make significant progress in its water and energy markets’ and expects sales for the year to June to be ‘substantially ahead of the corresponding period last year’.

Elsewhere, Kevin McNamara, ex-boss of cashpoint group Moneybox, is spearheading a £7.4 million agreed bid for cash machine supplier Scott Tod (SCD). McNamara, who chaired Moneybox before Cardpoint bought the company for £90 million last year, now heads Notemachine, a vehicle set up by the £210 million Rutland private equity group to take over Scott Tod. The shares were up 5.75p at 19.25p on the news, with new developments eagerly awaited.

Pharma focus

Biopharmaceutical play CeNes (CEN) is recruiting patients for a ‘pivotal Phase III trial’ of its M6G post-operative painkiller. Cambridge-based CeNes, which lost £7.2 million last year, is also about to embark on Phase II studies for its CNS 5161 compound, which targets neuropathic pain. This sustained and chronic pain is caused by nerve damage from such conditions as diabetes or sustained during surgical procedures like limb amputation.

CeNes has already demonstrated the feasibility of a formulation of the compound for a ‘transdermal patch’ – a seemingly unique prospect for treatment of this sort – and now plans to go ahead with its development. Broker Canaccord Adams believes the shares could be worth 18p if the trials are successful. At present CeNes’ shares change hands for 5.63p – down from 8.25p this time last year.

ReGen Therapeutics (RGT) has entered into an exclusive licensing agreement for commercialisation of its Colostrinin Alzheimer's treatment in America. Percy Lomax, executive chairman and chief executive of ReGen, anticipates that the company will be ‘slightly profitable in 2007 and significantly so in 2008’.

The shares, which were floated in 2000 at 28p, had collapsed to 0.82p last October on lack of progress with Colostrinin. They now trade at 1.35p, valuing the company at £8.11 million.

Debt matters at Invocas

Burgeoning bands of indebted consumers struggling to meet financial commitments spell great news for Scottish personal and corporate debt solutions play Invocas (INVO). Recent maiden AIM results – covering 50 weeks trading for forerunner business HWBRIS up to Invocas' flotation on 17 March – beat City expectations. On turnover lifted almost 40 per cent to £6.1 million, operating profits swelled by 54 per cent to £3.1 million. For March '07, analysts expect pre-tax profits of £3.3 million (£2.4 million), giving earnings of 8.1p and forward p/e of 23.5.

And finally, after a profit warning in May saw shares at cake baker Inter Link Foods (ITF) crumble by almost two-thirds, an impressive set of results this month has helped the company emerge from under its black cloud. Turnover ascended 33 per cent to £130 million (like-for-like sales also rose by 9.9 per cent) and profits before tax and exceptionals climbed 21 per cent to £7.1 million.

The UK cake market continues to grow at six per cent and Inter Link is the ‘number two supplier’ in the UK. Forecasts from independent broker Investec of around £8.5 million pre-tax profits and 49.8p EPS mean the shares trade at 7.7 times prospective earnings.