Small Cap Feast

Small Cap Feast – 16 January 2020

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What’s Cooking in the IPO Kitchen?

Main Market (Premium)

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.

Main Market (Specialist Funds)

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.

 

Breakfast Buffet

ProPhotonix (PPIX.L) 1.65p £1.53m

FY Dec 19 update from the technology designer and manufacturer of LED illumination systems and laser diode modules, with operations in Ireland and the United Kingdom.

Trading conditions improved in H2 over H1 with orders placed approximating $9.3m (1H 2019: $7.1m), an increase of 30%, and revenue recognized of approximately $7.8m (1H 2019: $7.1m), an increase of 9%.  Importantly, much of this increase was from the Group’s larger and more important customers, albeit not yet having recovered to 2018 run-rate levels.  This second half performance resulted in orders placed for the full year totaling approximately $16.5m (2018: $16.1m) and revenue recognized of approximately $14.9m (2018: $16.4m), in line with previous guidance.

 

Digitalbox (DBOX.L) 8.375p £7.6m

 The mobile-first digital media business, which owns Entertainment Daily and The Daily Mash, today issued a trading update in respect of its year ended 31 December 2019.

Trading for the year ended 31 December 2019 has delivered better operating margins than forecast, with adjusted profit before tax  being ahead of market expectations, and revenue slightly ahead. 

Entertainment Daily has seen average monthly users continue to grow, and in December, historically its peak month, it had over six million unique users visiting its site.  This success has been driven by Digitalbox’s Insights programme, which provides a detailed analysis of user behaviour to better inform content strategy.

 

Cello Health (CLL.L) 137.5p £146m

FY Dec  19 Update from the global healthcare-focused advisory group .

Overall, the Group traded very well in 2019, with continued excellent like-for-like growth from Cello Health balanced against a weaker outcome from the Cello Signal division. Accordingly, the Group expects to report full year results in line with consensus market expectations on an IFRS 16 basis.

The Group is well placed to continue to execute its organic and acquisitive growth strategy in 2020 and beyond. The Group will announce its full year results on 18 March 2020. The Group experienced strong cash inflows in the second half of the year, in line with normal seasonal patterns of cash flow. Conversion of operating profit into cash flow was strong. Accordingly, the Group was in a strong net cash position ahead of consensus expectations at the end of the year.

 

Empyrean Energy (EME.L) 8.25p £36.5m

£420k placing at 0.2p.  The Placing Shares have been issued to new and existing shareholders, including the Company’s CEO and Director Thomas Kelly. 

The funds raised pursuant to the Placing will be used to meet the Company’s contributions to the drilling campaign at the Duyung PSC in the West Natuna basin, offshore Indonesia, in which Empyrean holds an effective 8.5% interest  and for general working capital purposes.

 

Microsaic (MSYS.L) 1.25p £5.7m

 The developer of point of need mass spectrometry (“MS”) instruments, confirms that revenues for the year ending 31 December 2019 have significantly exceeded 2018, and increasing momentum is being achieved in key areas of the Company’s strategy. 

2019 revenues are expected to be £0.87m, 50% higher than last year (2018:  £0.58m), with stronger sales in the second half being 66% above those reported for the first half.  Gross margins also improved significantly in H2 and are expected to be approximately 43% (H1 2019.  Cash position at 31 December 2019 is £2.62m, which is in line with management expectations.

The Board is targeting a further significant increase in revenues in 2020 underpinned by further extending its MS product offering with the launch of a range of new complete system products. With launches planned in H1 2020, these products will provide a cost-effective approach to traditional liquid separation, and a potentially game-changing approach to protein separation.

 

Aura Energy (AURA.L) 0.275p £3.92m

Further to the Company’s announcement on 8 November 2019, official notification has now been released by the Swedish Government regarding Aura Energy’s claim under the Energy Charter Treaty.

The notification indicates that Chancellor of Justice is now handling the case.

Aura has further been advised that; The Ministry of Environment initially had carriage of the claim; The claim was recently listed as an agenda item in the Swedish Parliamentary Cabinet; The agenda item stated “Assignment to the Chancellor of Justice to guard the state’s right because of claims against the state”; The Environment Ministry confirmed the claim being referred to was Aura Energy .

Uranium mining in Sweden was banned effective August 1, 2018 and Aura Energy is seeking compensation for the financial loss resulting from this decision. 

Aura is pleased with this latest development indicating the case is progressing strongly and that it has been presented at the highest level of government.

 

 MySale (MYSL.L) 4.295p £35m

 The  international online retailer, today provides a trading update for the six months to 31 December 2019.

Highlights:

  • Revenue of $71.9m in line with management expectations as the Group transitions to an Inventory Light Marketplace Platform
  • Underlying EBITDA loss of $3.6m
  • Net cash of $7.2m Debt Free
  • 170 brand partners relaunched on the Group’s marketplace platform

The Group continues to trade in line with management expectations, building on the important steps taken to simplify, reorganise and recapitalise the business last year. This has involved a restructure of the supply chain and relaunching brand partners on the Group’s Inventory-Light Marketplace Platform, where they can benefit from MySale’s counter seasonal proposition.

Following the decisive actions taken by management in 2019, the Group now operates on a debt-free basis, with a net cash balance of $7.2m at period end. The Board continues to closely monitor the Group’s cost base, with further opportunities identified in the second half

 

Thor Mining* (THR.L) 0.41p £4.41m

Gold, nickel, and chromium assays from preliminary geochemistry reconnaissance at its 100% owned Pilbara Goldfield tenements (E46/1262 and E46/1190) in Western Australia.

The program comprised stream sediment samples from 44 sites located to provide a broad coverage across the tenements. Initial gold panning provided strong evidence of gold prospectivity. Subsequent laboratory assay results now to hand provide further support for the gold potential in addition to identifying nickel and chrome potential of the location.

 Highlights:

Three samples assayed above 0.3g/t gold

Including one assay of 0.9g/t gold

Anomalous nickel & chromium up to 1,272ppm Ni and 2,074ppm Cr.

The assays follow up previously announced results from panning  (6 Nov 2019).

“The next phase or work here is likely to comprise further detailed stream sediment sampling, and soil sampling to confirm and extend these results, along with geological mapping”.

 

Tekcapital (TEK.L) 5.975p £3.81m

THE  investment group focused on creating marketplace value from investing in university technology, will exhibit at the Association of University Technology Managers (AUTM) annual meeting IN San Diego, the largest gathering of academic technology transfer professionals. AUTM is made up of over 3,100 technology transfer professionals committed to commercialising university research.

 

ECR Minerals (ECR.L) 0.725p £3.27m

ECR’s 100%-owned Australian subsidiary MGA has received a cash refund of (R&D) expenditure of AUD 555k  c.£295k. The qualifying activities pertain to research into turbidite-hosted gold deposits within MGA’s exploration licences in Victoria, Australia; In addition, as at 30 Sep 2019, MGA had carried forward tax losses of AUD 66.3m. “The gold price remains strong and we believe there is considerable and growing interest in respect of Australian gold exploration, and we have also observed strong interest in the Victorian goldfields where we have an active exploration portfolio.”

 

Head Chef:

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

*A corporate client of Hybridan LLP

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