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AIM report
Aim's embattled mobile internet stocks were struck by another cruel hammer blow in the first week of March as RTS Networks departed with a whimper and WAP Integrators went into liquidation.
News of RTS's exit will come as no surprise to followers of the sector. In early February its management called in the receivers, sparking the resignation of much of the board and nominated adviser Brown Shipley. The company's listing was finally cancelled on 6 March in accordance with Aim rules, which stipulate that a new nomad must be appointed within a month.
The demise of WAP Integrators was more of an upset. Just a day after RTS bid adieu, WAP's management announced it had been forced to call in the liquidators. The decision was made after the company's board concluded that 'WAP as a platform has not developed in the way the directors originally expected'. The company looks set to return around £1 million of its £1.4 million cash pile to shareholders.
Controversial Aim
A dismal month for tech stocks was compounded by the furore surrounding secure payment system developer Earthport.
Earthport shares fell from 5.25p to 4p as details of a confidential report by house solicitor DLA were leaked to the press. It concerned a January announcement outlining details of a £1.5 million refinancing package. In fact, only £875,000 of this had been secured.
DLA used the report to express concerns that this may have created 'a false market' in the shares. Management hit back, stating that January's comments 'were made on the basis of commitments received and documentation available to the company at that time'. But it admits that a £500,000 loan agreed with a Mauritian bank 'was subsequently found to be too expensive'.
Relative newcomer Cyprotex also found itself at the centre of a media storm. The drug discovery outfit hit the headlines thanks to 35 per cent-shareholder Paul Davidson and a £6 million spread-bet he placed prior to its 15 February flotation.
In an attempt to try to hedge its position, the betting firm in question is said to have entered into an arrangement with Dresdner Kleinwort Wasserstein that resulted in the latter buying large number of shares in Cyprotex on its behalf.
Davidson, a former plumber who also holds substantial stakes in Clubhaus, Galileo Innovation and Oystertec, insists he has done nothing wrong and he sought legal advice before placing the bet. The shares remain level with their 29p placing price. The FSA is investigating the matter.
Surprise winners
Elsewhere, results announcers dominated, although the best share performances came from unexpected sources.
Giftware manufacturer Bilston & Battersea Enamels was top of the pile, rocketing 70 per cent to 25.5p as its management drew a line under a dismal 2001 and outlined reasons for renewed investor optimism.
Figures for the year to December showed a near £2 million drop in sales to £6 million and a £517,000 loss (£546,000 profit). Chairman Ray Way says the first quarter 'has shown signs that a sales improvement for the year as a whole should be achieved'.
Like Bilston, Iomart made progress on a seemingly below par set of full-year results. Pre-tax losses increased 28 per cent to £6.5 million and cash reserves almost halved to £6.1 million.
It was a year in which the management sold the primary business, internet service provider madasafish.
Attention switched to the provision of corporate broadband connections, yet this too has also been offloaded.
A 6p rise to 15p was precipitated by a steady stream of director buying, with chairman Nick Kuenssberg, customer services director Sarah Haran, non-executive director David Harrison among those topping up their interests.
Newcomers
Aim mining fans have been starved of new issue action since the turn the year. But now a batch of resource ventures has emerged to send pulses racing.
First out-of-the-blocks was Hardman Resources, an Aussie oil explorer with high hopes for its stakes in several oil blocks off the coast of Mauritania. Hardman arrived on Aim on 19 March via an introduction.
In the coming weeks, the company should be joined by gold and silver prospector Peter Hambro Mining. Advised by Canaccord and headed by Peter Hambro, former chairman of Gold Mines of Sardinia, the company owns 50 per cent of the Pokrovskoye site, which last year achieved a 275 million roubles profit (£6.5 million).
Meanwhile, Grant Thornton is overseeing the planned launch of South African gold mining concern Bullion Resources.
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