Small Cap Feast

Small Cap Feast – 05 February 2020

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What’s Cooking in the IPO Kitchen?

AIM

Intention to float by Gemfields Group. No Capital Raise. Currently listed on JSE. (GML:JNB) at circa £122m.  The Group’s key producing assets, the Kagem emerald mine in Zambia  (believed to be the world’s single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world), are both expected to have long mine-lives with potential for expansion. Also owns the  Faberge brand. Due Valentines Day 2020.

Main Market (Standard List)

The Proof Of Trust has announced its intention to list on the Standard Market.  The Blockchain based business, owns patents to a protocol which facilitates dispute resolution based upon smart contract disputes.  Transaction details TBC.

Main Market (Premium)

Ninety One –proposed demerger and public listing of  Investec’s  global asset management business on LSE and JSE. 30 Sep 2019 AUM £121bn. Sale of existing shares. Expected free float of >60%. Due 16 march.

Cabot Square—Closed ended investment fund focussed on alternative assets and asset manager. Looking to raise £200m.  Will target investment opportunities that are expected to generate an attractive risk adjusted return and that can also make a positive ESG impact by focusing on some of the biggest challenges facing societies and economies.  Due 14 Feb.

Calisen Group. Potential Intention to Float. Owner and manager of essential energy infrastructure assets through its subsidiaries Calvin Capital and Lowri Beck . Consolidated FY Dec 18 revenue £162.1m and operating profit £25.4m. Raising up to £300m in primary plus partial vendor sale.  Expected Admission February 2020

The Global Sustainable Farmland Income Trust will invest in a diversified portfolio of operational farmland assets located in major agricultural markets including the United States, Europe, New Zealand, Australia and certain countries within Latin and South America. Raising up to $300m.   Due 28 February.

Investment firm Nippon Active Value fund is seeking to raise up to £200m at an issue price of 100p per share via an IPO.   The company aims to invest in a portfolio of quoted Japanese stocks with market capitalisations of up to $1bn.   First day of dealings expected early February.

NEX Exchange

Zapp Scooters, a developer and manufacturer of electric two-wheeled vehicles announced its intention to IPO on the NEX Exchange Growth Market.  The Company intends to raise up to £3.5m. Admission is expected to occur on NEX in February 2020.

 

Breakfast Buffet

Distribution Finance(DFCH.L) 88.5p £94.4m

Appointment of a new permanent Chief Executive Officer, Carl D’Ammassa.  Carl has over twenty years of experience in commercial finance within banks and finance companies.  Most recently at White Oak, a specialist finance provider, Carl spent most of his career in senior management positions at Aldermore Bank and GE Capital.

Business remains robust and the Company announces today that the unaudited loan book for 31st December 2019 was £208m. This represents annualised growth of 82% over the 12 months ended 31st December 2018 which is a considerable achievement and the Board notes that the loan book could have been materially larger had further funding been available.

 

CentralNic Group (CNIC.L) 88.5p £165m

 Trading update.  CentralNic’s unaudited revenue for the financial year 2019 was US$109 million, up 95% from US$56 million in financial year 2018 (converted from GBP 42.7 million); Q4 revenue was USD 32 million

Unaudited Adjusted EBITDA increased by 95% to US$18 million in financial year 2019 as compared with US$9.1 million in financial year 2018 (converted from GBP 7.0 million); Q4 Adjusted EBITDA was US$5 million

Further to the announcement on 24 December 2019, as of today the additional €40 million bond issue will be trading on the Oslo Stock Exchange under the same ISIN NO 0010856750 as the bond issue dating 3 July 2019.

 

Brave Bison (BBSN.L) 1.175p £7.2m

Appointment of Philippa Norridge as a director of the Company and as Interim Chief Financial Officer, with effect from 5 February 2020. Paul Campbell-White has stepped down as Chief Financial Officer and a director of Brave Bison with immediate effect.  Philippa has a wealth of relevant experience, having spent the last 16 years working in the media and marketing services sector. After graduating from Oxford University, Philippa went on to qualify as a chartered accountant with Moore Kingston Smith (previously Willot Kingston Smith), leading audits and projects in their specialist media and marketing division. Philippa has since held senior finance roles at a number of marketing services firms, including Finance Director at leading independent agency Albion Brand Communications and global agency group MullenLowe Profero. Intends to appoint a permanent CFO as soon as the appropriate candidate is identified.  In addition, the Company is in discussions regarding the appointment of two independent Non-Executive Directors

 

Touchstar (TST.L) 53.5p £4.53m

Further update on Company’s trading for the year ended 31 December 2019.

Pleasingly, the Company completed a higher level of shipments to customers by the year end than had been anticipated. As a result, it now expects to report revenue for the year ended 31 December 2019 of £7.1million, slightly ahead of previous guidance and which will represent year on year growth of 8% from continuing activities. In addition, the financial result for 2019 will be better than anticipated at both the pre and post tax levels.

Given the Company’s solid cash generative character, the improved trading position has translated into strong positive cashflow. The net cash position on the 31 December 2019 was stronger than expected at £849,000.

Order book has increased to £1.7m

 

B.P. Marsh (BPM.L) 263p £98m

The specialist investor in early stage financial services businesses, has provided an FY Jan 20 trading update.

Highlights

  • The completion of two new investments; Agri Services Company PTY Limited in Sydney and Lilley Plummer Risks Limited in London
  • £2m follow-on funding to Nexus Underwriting Management Limited, as part of its wider £16m fundraising exercise
  • Loan Facility of US$2m to XPT Group LLC, based in New York City, which also completed a successful US$40m refinancing exercise with Madison Capital Funding LLC
  • The Group secured access to a £3m loan facility with attractive terms
  • As at 31 January 2020, cash of £0.8m and available cash of £3.8m

57% of the investment portfolio’s revenue originating from overseas .

As at 31 Jul 19 NAV/share was 360.9p. Expects to report a positive performance.

 

FireAngel Safety (FA..L) 14.25p £10.8m

One of Europe’s leading developers and suppliers of home safety products, announces that FireAngel PredictTM, the Group’s predictive algorithm management information platform, has been granted a patent by the European Patent Office.  This follows the successful grant of a patent awarded in both the USA and Australia. FireAngel PredictTM pinpoints properties where there is a higher risk of a fire which provides stakeholders within the housing sector a unique insight into the safety of the occupants and their property portfolio.

In addition, the Company announces the launch of its FireAngel Pro Connected B2C platform which is currently available from Amazon, Screwfix and Toolstation. The FireAngel Pro Connected gateway connects directly to the FireAngel Pro Connected range of domestic safety products and utilises the unique data analytics provided by FireAngel PredictTM.

 

Power Metal (POW.L) 0.375p £2.1m

 Exploration update in respect of the Kalahari Key Mineral Exploration Pty Ltd Molopo Farms Complex Project, which is targeting prospective massive nickel sulphide mineralisation in Botswana.

POW has an 18.26% shareholding in Kalahari Key and has elected to earn in to a 40% direct interest in the MFC Project by expending US$500,000 on exploration expenditure, notably target drilling, in 2020. On completion of the Earn-In, POW will have an effective economic interest of 50.96% in the MFC Project.

Eleven conductor targets generated from the 2019 airborne electromagnetic (“AEM”) geophysical survey have been investigated by follow-up ground based Time Domain Electromagnetic (“TDEM”) geophysics and three dimensional (“3D”) modelling in order to prioritise and optimise the planned drill testing. At least six of the highly conductive bodies have the potential to be massive nickel sulphides due to the spatial location, particular geological setting and associated geophysical response . Environmental Management Plan Submitted.  Following the election to Earn-In by POW  announced in December, Paul Johnson has joined the Board of the MFC Project holding company .

 

Victoria Oil & Gas (VOG.L) 5.7p £14.7m

Operations update from the onshore gas producer and distributor with operations located in the port city of Douala, Cameroon .

Wholly owned subsidiary, Gaz du Cameroun S.A. (“GDC”) has entered into a non-binding Letter of Intent with New Age Cameroon Offshore Petroleum S.A.  for the supply of a minimum of 25mmscfd of gas from the Etinde natural gas and condensate field (“Etinde”);

  • To enable access to Etinde natural gas, additional downstream pipeline infrastructure proposed to be developed by GDC to connect this gas supply and be fully debt funded;
  • Non-binding term sheet for long term gas supply to satisfy Aksa Energy Uretim A.S. (“Aksa”) off-take agreement and other future potential grid power contracts;
  • Altaaqa has suspended operations at ENEO’s Logbaba site due to non-payment. GDC continues to invoice ENEO based on take-or-pay provisions; and    Remediation work to complete La-108 will recommence in early 2020.

 

PCI-PAL (PCIP.L) 43.5p £18.5m

Trading update.  The Board is pleased with the strong performance against key metrics in the first half of the year, in particular the growth in revenue which increased by over 70% year on year to more than £2.0m (2018: £1.2m). This illustrates the growing benefits of the SaaS-based revenue model as we recognise revenues from the accumulating Total Annual Contract Value (TACV) of contracts signed to date. TACV grew 47% year on year to £5.0m at the end of H1 (2018: £3.4m).

 

Simec Atlantis Energy (SAE.L) 10.75p £46.1m

 Atlantis, a global leader in the sustainable energy sector, announced that further to the announcement on 6 August 2019, the bond offer has successfully raised £3.79m and is now closed. The five-year bond has a coupon of 8%, payable semi-annually, and matures in 2024. The bond was offered through Abundance Investment Limited, the provider of a regulated green peer-to-peer investment platform.

 

Head Chef:

Derren Nathan
0203 764 2344
derren.nathan@hybridan.com

*A corporate client of Hybridan LLP

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