Small Cap Feast

Small Cap Feast – 30 January 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)

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.

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

Anpario (ANP.L) 325p £75.8m

FYDec19 update from the international producer of natural feed additives for animal health, hygiene and nutrition. Revenue and adjusted EBITDA (excluding fx) should be in line with market expectations. The increase in the value of sterling during the year has impacted the overall result as realised exchange gains have been materially outweighed by unrealised losses.

Sales improved in H2, driven by continued strong performances in Latin America and the Middle East and a welcome recovery in Asia. Targeting of the Chinese poultry market, coupled with the Group’s geographic and species diversity, have helped to mitigate the impact of African Swine Fever.

Gross margins improved further reflecting the Group’s focus on marketing higher value-added products and developing further direct routes to market which are seeing positive momentum. Costs continue to be closely managed, whilst maintaining investment in our sales channels and product development initiatives to support future sales growth. Cash £13.8m.

 

Alien Metals (UFO.L)0.215p £2.9m

Update on the Company’s Donovan 2, copper-gold project.

Highlights:

–      The Donovan 2 copper-gold project contains a prospective Volcanic Massive Sulphide (‘VMS’) target, identified by previous sampling and mapping programmes 

–      A ground magnetics Induced Polarisation (IP) survey plan has been finalised and an updated quote has been received for the VMS target in order to generate high-priority drill targets

–      Discussions with various drilling companies are in progress with quotes requested for possible next stage work on Donovan 2

–     Successful site visit and technical review at Donovan 2 during recent trip improves confidence in interpreted VMS style mineralisation

 

Best of the Best (BOTB.L)450p £42.2m

HY Oct 19 results from Best of the Best plc which runs competitions online to win cars and other prizes.

  • Total revenue for the six months up by 6.7% to £7.60m (2018: £7.12m)
  • Online revenues representing 99% of the total, increased by 13.3% to £7.52m
  • Profit before tax increased by 27.8% to £1.38m (2018 adjusted: £1.08m)
  • Earnings per share increased by 37.3% to 12.40p (2018 adjusted: 9.03p)
  • Net assets of £2.26m, substantially underpinned by property and cash
  • Cash balances of £3.24m at 31 October 2019, with current cash balances in excess of £4.3m
  • Special dividend of 14.0p per share declared

Sales momentum since the period end has been encouraging, and now expects.

 

Aukett Swanke (AUK.L) 2.9p £4.8m

The international group of architects, interior designers and engineers announced final results for FY Sep 19.

Major financial turnaround

PBT restored at £292,000 (2018: Loss £2.54m)

All three geographic hubs in profit before central cost allocation

Revenue up 7.7% to £15.49m (2018: £14.38m)

Net funds grew to £820k (£157k)

EPS returned to positive at 0.21p (2018: loss 1.42p)

CEO Nicholas Thompson said

“The strong second half performance augurs well for the next financial year, particularly so, given the recent resolution of electoral and Brexit related uncertainty.  With a leaner and more stream-lined group now in place, after last year’s focus on costs and the disposal of the loss-making Moscow operation, we look forward to improving fortunes for the Group in 2020.”

 

Angle (AGL.L) 73p £126m

HY Oct 19  results. Highlights

Multi-year comprehensive clinical and analytical studies successfully completed in support of FDA clearance of the Parsortix® system for capturing and harvesting circulating tumour cells from metastatic breast cancer patients

Q-Submission process completed and full De Novo FDA submission in preparation, targeting Q1 CY20 submission

Ovarian cancer clinical verification study established with leading US cancer centre. Pre-study phase completed successfully and 200 subject study initiated patient enrolment

Over 16,000 samples processed during the period (H1 2019: 13,000) and a further six peer reviewed publications from internationally recognised cancer centres (H1 2019: two) with key developments in breast, lung, prostate, melanoma and head and neck cancers.

Rev £0.4m, loss £5.3m cash of £20.4m following £18m raise.

 

Ingenta (ING.L) 75.5p £12.7m

The  leading software and services provider to the publishing and media industry, provides the following trading update for the year ended 31 December 2019.

The Group expects to report revenue of £10.9m and adjusted EBITDA of approximately £1.3m. The Group generated operating cash inflows of £3.5m in the year, before expenditure on research and development of £1.4m, dividends of £0.3m and the planned reorganisation costs of £0.5m, resulting in net cash balances at year-end of £2.6m. Cash performance was improved by £0.5m of accelerated cash receipts from the year end annual renewal cycle.

These headline figures indicate a leaner, more responsive business better equipped to service its diverse customer base with a coherent set of solutions and services. During the year, the business also took the opportunity to incur an impairment charge against non-core goodwill from historical business combinations of £1.7m.

The Board confirms its intention to pay a dividend of at least 1.5 pence

 

Bahamas Petroleum (BPC.L) 3.075p £65.6m

The oil and gas exploration company with significant prospective resources in licences in The Commonwealth of The Bahamas, updated on its planned H1 2020 drilling campaign.

  • Drilling of exploration well expected to commence in April 2020 with results expected to follow later in Q2 2020

o  Licences and exploration well 100 per cent. owned and operated by BPC

Targeting recoverable P50 oil resources of 0.77 billion barrels, with an upside of 1.44 billion barrels

 

Benchmark Holdings (BMK.L) 42.5p £237.56m

The aquaculture health, nutrition and genetics business, announces that it has conditionally raised £36.4m by way of a Placing  at 40p. Open offer of up to £6.6m.

   The Company has developed CleanTreat®, a proprietary system that removes medicinal residues from treatment water, and which is integral to the commercial delivery of product candidate BMK08, the Company’s novel sea lice treatment for sea lice

  • The Directors strongly believe the Fundraise represents the optimal scale-up strategy for CleanTreat® ahead of the anticipated BMK08 regulatory approval by:

–  increasing its speed to market

–  delivering a higher expected return-on-investment

–  maximising value for Benchmark shareholders by retaining full ownership of CleanTreat®

 

KEFI Minerals (KEFI.L) 1.44p £18.7m

The gold exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, announced that in relation to the Company’s Tulu Kapi Gold Project  a General Meeting of Tulu Kapi Gold Mines Share Company  has been convened for 14 February 2020, to formalise the final and procedural sign-off of all matters required for the release of funds from ANS Mining Share Company to Tulu.

The total ANS Mining commitment is US$38m with the first US$9.5m being unconditional .

 

Renew Holdings (RNWH.L) 496.5p £374m

Conditional placing of £15m at 475p. Acquisition of Carnell Support Services for £38m.  Carnell operates in the regulated highways sector, with long term framework contracts and high barriers to entry. Carnell’s FYSep20 forecasts are £48m rev and EBITDA of £5m.

Head Chef:

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

*A corporate client of Hybridan LLP

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