Small Cap Feast

Small Cap Feast – 21 January 2020

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What’s Cooking in the IPO Kitchen?


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)

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

Pennant International (PEN.L) 87.5p £31.6m

 Agreement to acquire Absolute Data Group. The maximum consideration for the Acquisition is $6.5m Australian dollars (£3.44m) including a 50% up front cash element.   ADG is an Australian business based in Brisbane which owns the ‘R4i’ suite of technical documentation software (“R4i”). Expected to be earnings enhancing in the first year (before integration costs).

  • For its last financial year (which ended 30 June 2019), ADG reported (after adjustment to align with Pennant’s IFRS15 compliant reporting):

o  Revenues of $2.2m (£1.22m).

o  Profit before tax of $0.890m (£0.47m).

ADG has a well-established US trading subsidiary which accounts for approximately 65% of the target group’s sales.

  • The Acquisition will provide Pennant with an expanded presence in its target growth markets of North America and Australasia.


Entertainment AI (EAI.L) 42p £21m

  The Group continued its strong performance during 4Q following its 30 September 2019 launch on AIM with its accompanying investment round.  Cash c. $9.5m.

EAI also announces that it will operate as a calendar year company in order to align itself with the financial years of its wholly-owned subsidiary trading companies.

GTC 2019 net revenue of $10.3m, up 59% (2018: $6.5m)

  • Gross ad revenue from global audience of approximately $18.7m prior to commission deducted by YouTube

 o  4Q launch of GTC in Latin America, increasing total addressable market and adding to 2020 audience growth and net revenue

Tag completed a successful pilot with global strategic partner Sumitomo Corporation deploying proprietary technology to deliver an enriched audience viewing experience for the Rugby World Cup in Japan on Sumitomo’s JSports network.


Sensyne Health (SENS.L) 51.5p £66.2m

HY Oct 19 results from  the British Clinical AI technology. .Signed first major pharmaceutical collaboration agreement for £5m with Bayer to accelerate the development of new treatments for cardiovascular disease using Clinical Artificial Intelligence Signed agreements with Cognizant and Agorai as partners for the launch and sale of our digital health software products in the U.S. Entered into additional partnership with Bayer on new UK artificial intelligence ‘LifeHub’ for data-driven drug discovery, disease detection and diagnosis

Total revenues of £0.4m for the period to 31 October 2019 (HY19: £0.0m). Adjusted operating loss from continuing operations of £7.4m (HY19: £5.1m). Cash and cash equivalents of £40.5m at 31 October 2019 (FY19: £49.3m)  

Minimum 2020 revenue visibility £2m. Continues to be well positioned to grow revenues from UK Government initiatives on patient data and potential new opportunities in overseas markets due to the Company’s unique partnership model, strong capabilities in discovery science and practical experience in data curation and analysis.


LPA Group (LPA.L) 95.5p £12.1m

The high reliability LED lighting and electro-mechanical system manufacturer, announced contract selection for a world leading smart LED lighting system for a prestigious European-wide Inter City rolling stock project and a further contract award for electro-mechanical assemblies, for the UK rail sector. The project may total up to 700 passenger coaches over the next five years, if orders for the contract options are placed.   The rolling stock lighting technology will be one of the most advanced in the industry, continuing to reinforce LPA’s position as a leading lighting provider to the worldwide rail market.

As expected, the year to 30 September 2019 was very challenging, nevertheless, record order entry of £27.0m was achieved, and expectations should at least be met.


Proteome Sciences (PRM.L) 3.56p £10.5m

 Trading update for the financial year ended 31 December 2019.

Unaudited revenues for the full year increased by 24% to approximately £3.8m (2018: £3.0m). TMT® sales and royalties accounted for approximately £2.8m (2018: £2.2m), reflecting a greater than 28% year on year growth in that underlying business, driven both by increased sales of TMT® and the launch of TMTpro™ in June 2019. Has also delivered the highest ever number of Biomarker Services projects with revenues showing a healthy growth of 24%, despite some delays to receipt of samples in the fourth quarter. Looking forward, the Board is pleased to report that signed Biomarker Services purchase orders worth over £0.7m have been carried over into the first quarter of 2020.


Hardide (HDD.L) 66p £32.4m

The developer and provider of advanced surface coating technology, has conditionally raised £2.5m  at 63p.

With these new funds the Company will acquire replacement and additional modern equipment to a value of approximately £1.5m in connection with the move to new premises in Bicester during 2020. This will enable the Company to achieve greater operational efficiency and environmental performance.   The move to the new facility in Bicester remains on track, and will result in improvements to capacity, capability and environmental performance.

The Placing will also enable the Company to strengthen its balance sheet, thereby providing additional reassurance to large customers intending to enter into long-term supply agreements with Hardide.

The Company will continue to explore the potential for asset finance.


BlueRock Diamonds (BRD.L) 122p £4m

Q4 2019 and FY 2019 production update.

    Group operating profitably for the first time in H2 2019

  • Revenue

o  Up 190% to £4.1m (unaudited) for FY 2019 (FY 2018: £1.4m)

  • Carats sold

o  Up 118% to 12,675 FY 2019 (FY 2018: 5,805)

o  Up 172% to 4,170 Q4 2019 (Q4 2018: 1,533) 

  • Production volume

o  Up 70% to 323,000 tonnes for the FY 2019 (FY 2018: 190,000)

o  Up 108% to 110,000 tonnes for Q4 2019 (Q4 2018: 53,000)

  • Improved grade

o  FY 2019 4.34 cpht (FY 2018: 3.28 cpht)

o  Q4 2019 4.65 cpht (Q4 2018: 4.01 cpht)

  • Average price per carat

o  Up 24% to USD415 per carat for FY 2019 (FY 2018: USD334)

o  Up 30% to USD410 per carat for Q4 2019 (Q4 2018: USD316)


IG Design Group (IGR.L) 740p £585m

One of the world’s leading designers, innovators and manufacturers of celebrations, gifting, stationery and creative play products, today announces that, further to the announcement made on 20 January 2020 regarding the proposed Bookbuild: First tranche placed, second tranche conditionally placed  together raising gross Placing proceeds of £120.0m. The Placing was significantly oversubscribed.  Placing price 694p.

“We are delighted that both existing and new shareholders have shown their support for the Placing, with the proceeds allowing us to fund the cash consideration for the Acquisition of CSS Industries and providing further balance sheet capital to support our wider growth strategy. It is testament to the compelling rationale behind the combination of our business with CSS”.


Concurrent Tech (CNC.L) 82.5p £60m

 FY Dec 19 update from the specialist in the design and manufacture of high-end embedded computer products for critical applications in the defence, aerospace, telecommunications, transportation, scientific and industrial markets.

It expects to report revenues slightly ahead of expectations, with underlying profitability in line with market forecasts, and to continue the practice of paying a further interim dividend to shareholders and to pay this on or before 6th April 2020.


Corero Network Sec (CNS.L) 5.85p £28.95m

FYDec19 update . Corero had a record H2 2019 order intake of $8.0m, an increase of 62% over H1 2019 and 36% over H2 2018, with a total order intake for the year of $13.0m, up 17% versus 2018 . Revenue for the year ended 31 December 2019 is expected to be approximately $10.0m (2018: $10.0m) due to the increase in deferred revenue resulting from the higher mix of DDoS protection as a service (“DDPaaS”) long term contract orders in 2019. These revenues are recognised over the term (typically 3 years).


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Derren Nathan
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