Small Cap Feast

Small Cap Feast – 19 November 2019

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What’s Cooking in the IPO Kitchen?

AIM

The Pebble Group, a provider of products, services and technology to the global promotional products industry, announces its intention to seek admission of its shares to trading on the AIM market of the London Stock Exchange, which is expected to take place in early December 2019.The Group delivered revenue of £99.8m in the year ended 31 December 2018.No mention of bottom line and a suggestion that funds raised would provide an exit to private equity shareholders and the repayment of debt.  Offer TBA.

Longboat Energy raising £10m.   Expected admission November 2019.  The company has been established by the former management team of Faroe Petroleum to create a new full-cycle North Sea oil and gas company .The strategy to achieve this will initially be through the acquisition of assets where the management team can add value through subsurface and operational improvements, follow-up deal opportunities and near-field exploration; and by value creation through the drill bit.

NEX Exchange

Sapo PLC – an investment vehicle under the NEX Exchange Rules, seeks to invest in the developing market for rural broadband in the United Kingdom.  Due 2 Dec

Main Mkt Standard

Taseko Mines  – North American focused copper producer and developer, seeking a London Listing. No capital raise. Due 22 Dec

SDIC Power  – “potential intention to float”. Proposed GDR listing.  Leading power generation company in China, with a diversified portfolio of projects across hydropower, coal-fired power, wind power and solar power.  Offer TBA

 

Breakfast Buffet

Oriole Resources (ORR.L) 0.42p £2.95m

Update on its 26.1 per cent (‘%’) interest in the private East African explorer Thani Stratex Resources Limited (‘TSR’) that has assets in Djibouti and Egypt.

TSR has reached agreement with Onyx EX B.V. (‘Onyx’) in respect of their joint venture company, Thani Stratex Djibouti Limited (‘TSD’), for the funding of an exploration programme in TSD (the ‘Funding’). This funding is being underwritten by African Minerals Exploration & Development Fund III and will allow an accelerated exploration programme in Djibouti over the next three years. The Funding will be available in tranches and is subject to achieving pre-defined performance milestones.

The first US$2.5m tranche of the Funding will be used to undertake an initial 6,500 metres of drilling

 

Cora Gold (CORA.L) 5.375p £6.97m

Commencement of Drilling at Sanankoro.

  • 5,000m drilling programme commenced with completion during Q4 2019
  • Programme designed to:

o  further investigate the sulphide and deep oxide potential below known mineralisation at key prospects; and

o  extend existing and potential new shallow oxide targets

  • Exploration team re-mobilised to Sanankoro over the last month following the wet season
  • Drilling to date has covered less than c.25% of the 1-2Moz exploration target area

 

ECSC (ECSC.L) 92.5p £8.4m

Trading update from the provider of cyber security services.

 Continued strong growth in Consulting sales since interim period end of June 2019

  • Record levels of Consulting, Managed Services and Incident Response revenue in Q3, with organic growth circa 25%
  • Record levels of Consulting bookings in Q4 to-date
  • Cash of £0.45m as at 31 October 2019 (£0.19m at 30 June 2019), with an unused banking facility of £0.5m
  • Continued recruitment of sales partners, with 87 partners to-date generating over 100 new sales opportunities
  • 2019 results likely to be broadly in line with current market expectations

 

Scapa (SCPA.L) 232.25p £360.6m

H1 19 results.  Revenue grew 14.3% to £160.8m (2018: £140.7m); 10.4% on a constant currency basis. Trading profit fell 17.0% to £14.2m (2018: £17.1m); 20.7% on a constant currency basis, representing a trading profit margin reduction to 8.8% (2018: 12.2%); reported operating profit fell to £0.1m (2018: £10.5m); reflecting the impact of the loss of the ConvaTec contract.

“Scapa has again delivered a solid first half performance with growth in revenue, despite the significant impact of the loss of the ConvaTec contract, resulting in reduced trading profit and margins. There are further significant opportunities for both business units to improve sales and margin performance through rigorous execution of the strategy, in the short and longer term. The Board remains confident of delivering its full year expectations and in the Company’s ability to drive shareholder value.”

 

GAN (GAN) 144p £122.5m

 Update following the publication on November 18, 2019, by the Pennsylvania Gaming Control Board (“PGCB”) of Internet gaming and Internet sports betting financial information for the calendar month of October 2019 in Pennsylvania.

 Highlights from the PGCB include:

  • Internet Gaming Win was $4.9m in October, reflecting an increase of 19.5% from the prior sequential month. This compares to:

–    $4.1m for the month of September;

–    $3.4m for the month of August; and

–    $0.8m for the month of July.

 

Uniphar (UPR.L) 1.225p £334m

Uniphar plc marks its entry into Nordic and Baltic markets with the acquisition of leading international medtech service provider EPS Group and also announces the acquisition of Irish Medtech service provider M3 Medical. On a proforma basis for the full year ending 31 December 2019, these acquisitions in aggregate are expected to deliver revenue of an estimated 22m. Both the EPS Group and M3 Medical will be integrated into the Commercial & Clinical Medtech division of Uniphar. The total potential consideration payable to the vendors of the EPS Group and M3 Medical is €40m over four years, the deferred consideration to be linked to EBITDA performance over the four years.

ITM Power (ITM.L) 78.8p £371.2m

The energy storage and clean fuel company, and Iwatani Corporation of America (“ICA”), a wholly owned subsidiary of Iwatani Corporation (8088: Tokyo Stock Exchange) are pleased to announce that the two companies have signed a collaboration agreement for the deployment of multi MW electrolyser based hydrogen energy systems in North America.

 Particular areas of interest lie in the California hydrogen refuelling station market and large-scale liquid and gaseous renewable hydrogen production for domestic and export markets.

 

Equals (EQLS.L) 84.8p £151m

Further acquisition aligned to its publicly stated expansion strategy.  The Group has today acquired the entire issued ordinary share capital of Casco Financial Services Limited (“Casco”), a UK based payment services provider (the “Acquistion“). The initial consideration for the Acquisition is £1.725m with a potential additional consideration of £2.0m, depending on future performance. For the last 12 calendar months to 31 October 2019, Casco generated unaudited revenue of £3.3m, EBITDA of £0.3m and profit before tax of £0.2m. Post-acquisition, Equals expects to extract cost synergies of £0.4m per annum. As at 31 October 2019, Casco had net assets of approximately £0.3m.

 

Kape Technologies (KAPE.L) 105p £151m

The consumer security software business, announces the proposed acquisition of LTMI Holdings (“LTMI”), for a total consideration of c. US$95.51m and an enterprise value of c. US$127.6m . holding company for Private Internet Access (“PIA”), a leading US-based digital privacy company with a strong position in data privacy services and over 1 million paying customers .

Enlarged group is expected to generate consolidated proforma 2020 revenues of between US$120-123m and Adjusted EBITDA of between US$35-38m.

 

Arc Minerals (ARCM.L) 2.65p £19.6m

Binding term sheet setting out an option to sell its interest in the Šturec gold project  or the in Slovakia to MetalsTech Limited An Australian listed mineral exploration company for a gross consideration of up to US$8m. Option Fee $30k

 

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

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