The market struggled for direction today with large caps closing not far above flat and the Small Ords gave up early gains to finish only 3 basis points ahead of yesterday’s close. The micro cap end, represented by the Emerging Companies Index fared a little better, ending 40 basis points in the green.
Here’s what made news today in ASX Small caps.
ikeGPS Group Limited (IKE)
Market cap: $116.5 million
Share price movement: +29.5%
ikeGPS Group announced that it has discontinued discussions regarding a previously unannounced and unsolicited acquisition approach from a credible private equity group. The proposed acquisition was to buy 100% of IKE’s shares at an indicative offer of approximately NZ$1.00 per share, representing a significant premium of over 62% based on IKE’s share price as of February 5, 2025. However, the board did not believe that this was a large enough premium to secure the requisite shareholder support from shareholders and thus believed proceeding further with the offer would not be in the best interest of the company and its shareholders. IKE has thus terminated discussions with the potential acquier. IKE will refocus its efforts on its growth strategy, particularly in delivering distribution network software to electric utility and communications markets. The company continues to experience strong operational performance, highlighting a robust cash position and a promising sales pipeline.
Hotel Property Investments (HPI)
Market Cap: $737.2 million
Share pricem ovement: flat
Hotel Property Investments released its financial results for the first half 2024 period reporting a statutory profit of $16.7 million. The report highlighted an increase in rental income of 1.6% to $37.1m and Adjusted Funds From Operations (AFFO) of 6.5% to $19.7m, helped by effective debt refinancing and interest rate management. A final distribution of 3.3 cents per stapled security was declared, bringing the total distributions for the half-year to 9.8 cents, a 3.2% increase from the previous year. The company’s property portfolio was valued at $1.22 billion, with a slight increase in cap rates. HPI successfully refinanced its debt facilities, extending its maturity profile and enhancing its financial position. The company reaffirmed its distribution guidance for FY25 at 19.7 cents per security, however, that may be a moot point as HPI is currently under takeover offer from Charter Hall Group (CHC) and Hostplus, who have acquired 76.75% of HPI to date.
DigitalX Limited (DCC)
Market Cap: $71.8 million
Share price movement: -3.2%
DigitalX Limited (ASX:DCC), the ASX’s only listed crypto fund manager, has provided a monthly update on its treasury holdings and fund performance as of January 31, 2025. The company reported a total treasury value of A$74.6 million, which includes substantial holdings in Solana and Bitcoin. DigitalX’s treasury strategy has focused on increasing Solana assets, achieving impressive staking yields. Notably, Bitcoin and Solana experienced significant price increases during the month. The DigitalX Bitcoin ETF and DigitalX Fund delivered notable returns, outperforming the All Ordinaries Index. The report also highlights the evolving landscape for digital assets, influenced by political developments in the U.S. and regulatory changes. DigitalX continues to position itself as a leader in the Australian digital investment space, with a strong track record and institutional-grade management practices.
Spacetalk Ltd (SPA)
Market cap: $10.2m
Share price movement: -5.9%
Spacetalk announced it received a tax research and development rebate of $428,853 from the Australian Taxation Office (ATO). This rebate is a result of Spacetalk’s commitment to innovation in creating hardware and software aimed at enhancing safety for various life stages, primarily through its popular kids smartwatches. The Australian government’s Research and Development Tax Incentive allows companies to rebate up to 43.5% on their R&D investments, which supports Spacetalk’s ongoing product development and operational initiatives. CEO Simon Crowther highlighted recent financial performance, noting that Annual Recurring Revenue (ARR) increased 16% in 2Q25 compared to 2Q24 and reduced operating payments by 25%, which will help with margins in the near term.
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ASX Small Cap News 19 February 2025
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ASX Small Cap News 18 February 2025
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