Last updated: September 28, 2013 12:44 am

Small-cap week, September 28

African Minerals burnt short sellers this week after a $1bn investment from China sent the miner up 37 per cent.

African Minerals, chaired by founder Frank Timis, said that Tewoo, one of China’s biggest iron traders, had agreed to buy new shares at a 330 per cent premium and then take a stake in the group’s Sierra Leone project. In return it bought 20-year rights to buy metal produced at a price not yet agreed. About 7 per cent of the shares had been out on loan to short sellers, with many investors having predicted that the group would not be able to afford a mine expansion.

Archipelago Resources was up 22.6 per cent after its majority shareholder agreed to take the gold miner private. San Leon Energy fell 17.6 per cent after it raised £31m with a discounted share placing to buy Alpay, a Turkish gas producer.

Gulf Keystone Petroleum lost 6.9 per cent after Mirabaud cashed in a warrant worth £700,000 that it had taken in lieu of fees to organise the Kurdistan explorer’s 2010 fundraising.

GKP was likely to look at raising $200m with a debt issue, though that depended on it curing production delays, said Macquarie. The broker also noted that GKP’s plans to move off Aim this year would require it to publish the first estimate for how much oil might be recovered from its Shaikan oilfield.

Veterinarian chain CVS lifts dividend after profits surge

Shares in CVS, the Aim-quoted veterinarian chain, continued their steady upwards progress as the company announced a 46 per cent increase in pre-tax profits for the full year to June and lifted its dividend a third to 2p.

CVS’s acquisition during the year of 14 surgeries and one pet crematorium helped to lift revenues from £108.7m to £120m. Like-for-like revenues were up 3.4 per cent on the back of online sales and the group’s loyalty scheme for owners of puppies, kittens and rabbits. It said margins had taken a hit, partly because of the growth of its online business – launched to appeal to more cost-conscious pet owners – and also because acquisitions were less profitable.

But it said margins would improve. Operating profits including goodwill were flat on last year at £6.7m. But a sharp decline in finance expenses boosted pre-tax profits to £5.5m from £3.8m last year. The shares are up 28 per cent on the year at 241.25p.

Revolymer shares dip despite narrowed interim losses

Shares in Revolymer fell back this week, in spite of the Wales-based designer and maker of innovative polymers reporting narrowed interim losses.

Revolymer produces polymers used to improve consumer goods such as laundry liquids, cleaning products, hair and nail cosmetics, as well as chewing gum that can be easily cleaned off the streets.

The company, which licenses its intellectual property to consumer goods companies, was spun out of Bristol University in 2005 and raised £25m last year on Aim, giving Revolymer a market capitalisation of £53m. However, its shares have only briefly traded above its initial public offering price of 100p, and have since dropped below 50p as substantial deals failed to materialise.

The company narrowed its first-half pre-tax loss from £4m to £2.9m from revenues down from £135,000 to £22,000.

Globo boosted as data storage software adopted

Employees’ habit of losing mobile phones loaded with sensitive data are a headache for many businesses, but a joy for Globo, whose software allows the data to be stored separately then wiped remotely.

The Aim-traded company reported pre-tax profits up 74 per cent year-on-year in the first half of 2013, to €14.5m.

Revenues rose to €31m, amid growth coming from business users thanks to a distribution agreement with Ingram Micro.

“They’ve got a route to market in Ingram,” said Lorne Daniel, a Finncap analyst.

However, the use of resellers meant that receivables increased sharply, accounting for discontinued operations.

Chief executive Costis Papadimitrakopoulos said the company was attracting users who had previously relied on BlackBerry for security.

Shares in Globo closed up 15 per cent for the week at 72p.

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