Small Cap Feast

Small Cap Feast – 09/11/2021

Dish of the Day:

Harmony Energy Income Trust (HEIT.L) has joined join the Specialist Fund Segment of the Main Market raising £186.5m. The Company’s investment objective is to invest in commercial scale energy storage and renewable energy generation projects, with an initial focus on a diversified portfolio of battery energy storage systems located in Great Britain. The Company has contracted with Tesla Motors Limited in respect of its initial portfolio of battery storage projects, to be acquired on IPO.

Off the Menu:

EverARC Holdings has left the Official List in anticipation of the closing of its previously announced acquisition of SK Invictus Intermediate S.à.r.l. Trading of the enlarged group on the NYSE is anticipated to begin on 9 November 2021.

What’s Cooking in the IPO Kitchen?

Ashtead Tech, subsea equipment rental and solutions provider for the global offshore energy sector to join AIM. The Directors have a high degree of confidence in the Group achieving no less than £52m of revenue, £21.5m of Adjusted EBITDA and £12.8m of Adjusted EBITA for FY21 Due 23 Nov. Offer TBA.
Atrato Onsite Energy, a new closed-ended investment company established to invest in a diversified portfolio of onsite renewable energy assets to join the Main Market (Premium). Targeting a £150m raise. Due by end Nov.
Eneraqua Technologies to join AIM. The Group is a specialist in energy and water efficiency. The principal activity of the Group is the provision of turnkey solutions for decarbonisation through heating and hot water systems for multiple occupancy social housing and commercial projects. Capital to be raised on Admission: £12m primary and £8m secondary. Anticipated Mkt Cap on admission: £92.0m. Due 22 Nov.
DSW Capital to join AIM. DSW is a challenger mid-market professional services business headquartered in the Northwest of England. DSW operates a licencing model and licences the DSW and associated brand names in return for a royalty based on a percentage of fee income. Due early Dec. Raising £5m.
Spiritus Mundi due to join the Main Market (Standard), a special purpose acquisition vehicle which will seek acquisition targets in Europe and Asia in the clinical diagnostics sector . The Company has already raised approximately £1.2m in a pre-IPO fundraising round.
Recycling Tech Group to join AIM, a UK-based engineering, research and manufacturing company that has developed a modular and mass producible machine, the RT7000, which processes hard to recycle plastic waste into a synthetic oil that can be sold back to the petrochemicals industry as a chemical feedstock to make new plastics. Targeting a £40m raise. Due December.
PYX Resources Limited , a producer of premium zircon, to dual list on the Main Market (Standard), a producer of premium zircon. The Company is currently listed on the National Stock Exchange of Australia, (NSX:PYX), which will remain its primary listing. Due 15 Nov, Mkt Cap c.£358m.
Foresight Sustainable Forestry Company to join the Main Market (Premium), an externally managed investment company that will invest in UK forestry and afforestation assets. Raising up to £200m. Due 24 Nov.
Travel Chapter Holdings to join AIM. Travel Chapter operates a leading online platform in the structurally growing UK holiday rental market, connecting a supplier base of property owners with their customers and providing a market leading service proposition to both. Offer TBA. Due mid Nov.
ATOME headquartered in Leeds, focussed on the large-scale production of green hydrogen and ammonia intends to join AIM towards the end of the year. ATOME intends to be spun-out from AIM-listed President Energy Plc, an oil and gas company which has incubated and financially supported ATOME to date, by way of a dividend in specie and flotation.
Life Science REIT to join AIM raising up to £100m. This will be the first London listed real estate investment trust (REIT) focused on UK life science properties. Due mid Nov.
Alinda Capital Infrastructure Investments to join the Specialist Fund Segment of the Main Market of the London Stock Exchange raising up to £350m. Due Late November.
Nu-Oil and Gas to acquire Guardian Maritime Ltd and Guardian Barriers IP Ltd and become Guardian Global Security plc and join the Main Market (Standard). Guardian is a technology group that supplies products to prevent unauthorised entry into areas that are deemed to have value, with maritime security being the main focus initially. Q4 2021.
ProCook, the UK’s leading direct-to-consumer specialist kitchenware brand, is considering applying for admission of the Shares to the Main Market (Premium). ProCook’s revenue grew by 37% to £53.4m in FY21 (ending 4 April 2021), with Adjusted EBITDA growing by 246% to £13.3m in the same period. Due in November.
Rubix Group Holdings, the market leading pan-European distributor of industrial maintenance, repair and overhaul products and services to IPO on the Main Market (Premium). In the six months ended 30 June 2021, Rubix generated revenue from ongoing operations of EUR1,312m and adjusted EBITDA of EUR123m (9.4% adjusted EBITDA margin from ongoing operations), an increase of 10.6% and 19.3% compared to the six months ended 30 June 2020, respectively. Raising EUR850m, potential sale of existing ordinary shares by current shareholders. Raising EUR 850m. Due early Nov.
Firering Strategic Minerals to join AIM, a holding company for a group of exploration and development companies set up to focus on developing assets towards the ethical production of critical metals. The Company’s portfolio of assets is located in Côte d’Ivoire and contains projects that the Directors believe to be prospective for lithium and columbite-tantalite. Due Early Nov. Offer TBA.
Pantheon Infrastructure to join the Main Market (Premium). PINT will make investments in private infrastructure assets. Due Mid Nov.
M7 Regional E-Warehouse REIT intends to apply for admission onto The Property Stock Exchange (Wholesale Segment). On Admission, the company plans to acquire a portfolio of UK retail warehouses worth £120m from M7 Real Estate Investment Partners VIII. The portfolio currently comprises 18 retail warehouse properties across the UK totalling 978,317 sq ft and fully let to 53 occupiers. Rent collections for Q2 2021 stand at 93% and are expected to revert to 100% in the coming quarters.
Central Copper Resources, a company focused on delivering a high grade copper project into production and exploration of assets in the DRC and in the Republic of Zambia to join AIM. By 2022, CCR intends to be ready to commence the project financing of its Mbamba Kilenda copper project. Due Mid Nov. Offer TBC.

Breakfast Buffet

Altus Strategies 72p £57.9m (ALS.L)

Altus announces the discovery of further hard rock artisanal gold workings from field reconnaissance at the Company’s 100% owned Gabal Al-Shaluhl (348 km2) and Wadi Jundi (696 km2) projects, located in the Eastern Desert of Egypt. The Company’s 100% owned subsidiary, Akh Gold Ltd (Akh Gold), holds four gold exploration projects totalling 1,565 km2 in Egypt. The Projects were granted this year as part of a competitive international bid round undertaken by the Egyptian Mineral Resources Authority (EMRA). Fourteen hard rock artisanal gold workings discovered across two Projects in Egypt. Workings are up to 30m wide and 100m long with several mechanically excavated. More than 50 hard rock gold workings now confirmed across the Projects to date. At least 35 further remote sensing targets remaining to be assessed. Discoveries validate the Company’s target generation process in Egypt.

AMTE Power 165p £58.15m (AMTE.L)

AMTE Power 165p £58.15m (AMTE.L)
The developer and manufacturer of lithium-ion and sodium-ion battery cells for specialist markets, has been actively engaged in discussions at a senior level with government bodies and global corporations throughout COP26. With one quarter of the worlds global emissions coming from transport, it is not surprising that transport is a major theme across COP26. The AMTE senior team have been participating on multiple panels and roundtables with a particular focus on Electric Vehicle adoption and Energy Storage, including: ‘Scottish Drive for Innovation’ focus on Scotland’s move towards a green economy (1 November ). Scaling EVs: An open conversation about the key challenges’ a roundtable event, sponsored by Octopus Energy and attracting industry leaders from the automotive industry (8 November). ‘The Storage and Transportation of Energy’ an MSIP Demonstrator and Showcase event (11 November).

Blue Prism 1,126p £1,093m (PRSM.L)

Blue Prism a global leader in Intelligent Automation, provides an update on trading for the fiscal year ended 31st October 2021. Total bookings, including renewals, for FY21 are expected to be circa £221m, compared to £180m last year. Net new bookings are expected to be circa £114m, compared to £122m last year. On a constant currency basis, this represents 3% decline. For the second half of the fiscal year, net new bookings declined by 16%, or 13% on constant currency basis, year-on-year. The exit rate of Annualised Recurring Revenue (ARR) is expected to be circa £179m, representing 17% annual growth or 20% on a constant currency basis. Blue Prism continues to expect revenues to be around £167m and an EBITDA loss of between £14-19m, as originally communicated on the 28th September.

Crossword Cybersecurity* 38p £28.5m (CCS.L)

The technology commercialisation company focused on cyber security and risk management has partnered with Dark Beam Ltd, to integrate Darkbeam’s cyber risk audits into its online supplier assurance and third-party risk management platform, Rizikon. Darkbeam’s instant digital risk audits will give Rizikon customers a real-time cyber risk rating as part of the overall third-party assurance assessment on the platform. This additional functionality will help organisations to further minimise the threat of their digital ecosystem being exploited via their supply chain and supplier relationships. Rizikon users will be able to see the headline cyber risk rating on each supplier’s scorecard, with the option of a more detailed cyber risk rating scan as either a one-time purchase or as part of their Rizikon subscription.

Eckoh 46.8p £119.3m (ECK.L)

The global provider of secure payment products and customer contact solutions, announces it has won a significant contract with a leading global food and drink company. The Company will provide Secure Payments services from its Cloud platforms to the new client’s global contact centre operations. The three-year contract, won following a successful competitive tender process, is worth a minimum of $1.5m in total and comes with the expectation that this will be exceeded, and that over time Eckoh has the opportunity to significantly upscale the value of the relationship. The solution will be first deployed in the US before being rolled out to as many as 28 further countries over the contract term. This contract will help support the forecast growth in the next financial year and beyond. This is Eckoh’s largest ever contract win for a Cloud solution delivered into multiple territories. We expect to see more global procurement contracts like this for Cloud delivery, as major enterprises seek to uphold rigorous security standards consistently across all of their regions.

GYG 58p £27m (GYG.L)

The market leading superyacht painting, supply and maintenance company, today provides a trading update for the current financial year. As a direct result of the significant operational and financial disruption caused by Nobiksrug, GYG will now deliver a financial outturn for 2021 much lower than the Board’s previous expectations. Importantly, the Board is confident that the Group will remain profitable at the EBITDA level in the current year. The Board also reiterates that, after further thorough review, it is confident that the Group can meet its working capital requirements and repay its borrowings as they fall due providing that the Nobiskrug situation is resolved before 31 December 2021, which the Board fully expects. On this basis, the Board does not believe that the Company will need to seek additional funding from shareholders in the foreseeable future to maintain operations or to meet its obligations.

Ideagen 287.5p £734m (IDEA.L)

The supplier of Information Management Software to highly regulated industries, has acquired Compliance Technology Holdings Pty Ltd t/a CompliSpace for an upfront consideration of AUD$105m (c. £57.7m) plus a deferred conditional earnout payment of up to AUD$5m (c.£2.7m). Founded in 2007, CompliSpace is a fast-growing provider of SaaS-enabled governance, risk and compliance (GRC) management solutions to private and public sector customers. CompliSpace’s principal focus is in the education and social care sectors where Ideagen sees globally compelling structural growth tailwinds. CompliSpace serves more than 950 clients in Australia including more than 730 schools and 135 aged care facilities across the country. CompliSpace’s proprietary software platform simplifies complex and time-consuming GRC tasks covering Policy Management, Learning and Assurance by mapping a company’s policies and procedures to regulatory obligations, supported by online learning, and automated workflow and reporting. This helps customers focus on their core purpose, centralising information in an easily navigable manner allowing for better overall governance. CompliSpace currently has annualised proforma revenues of approximately AUD$19.0m (c. £10.4m) of which 88% is recurring and has grown by approximately 20% over the last twelve months. The earn-out is payable dependent on approximately 20% per annum recurring revenue growth over the next 24 months to reach ARR of AUD$23.5m (c.£12.8m) by the second anniversary of acquisition. Ideagen also expects to benefit from operational leverages such that CompliSpace will achieve EBITDA margins comparable to the Group’s in the first full year of ownership to April 2023.

Induction 51.5p £47.4m (INHC.L)

The virtual care platform driving digital transformation of healthcare systems worldwide, announces that a two-year contract has been awarded by the Department of Work and Pensions to Induction’s partner Involve Visual Collaboration Limited, a UK video specialist, to provide communications services to support the virtualisation of the UK benefits system. The contract includes options for the DWP to extend the agreement term for up to a further two years. As part of this significant contract, Induction will supply DWP with its web-based video consultation platform, Induction Attend Anywhere, allowing members of the public to hold a video consultation with DWP assessors in relation to their financial support needs as an alternative to a face-to-face meeting. The contract value to Involve is up to £3.95m for the initial two years, totalling up to £7.79m for the full four years.

Learning Technologies 190p £1,495m (LTG.L)

The provider of services and technologies for digital learning and talent management, announced the appointment of Katharina Kearney-Croft as Chief Financial Officer with immediate effect. Katharina was previously Interim CFO at SIG plc and has held a number of financial leadership roles through her career including at The Vitec Group plc where she was Group Finance Director, Rexam plc and The BOC Group plc.

Netcall 83.5p £124m (NET.L)

The provider of intelligent automation and customer engagement software, has today redeemed £3.5m of its existing £7m loan note with BGF Nominees Limited (part of the BGF Group Plc). The Loan Note was issued by the Company to part fund the acquisition of MatsSoft Limited in August 2017. The Loan Note has an annual interest rate of 8.5% and is repayable on or before 31 March 2025. In connection with the Loan Note, BGF Investments LP were issued with options over 4,827,586 ordinary shares in the capital of Netcall, at a price of 58 pence per share. Under the terms of the Loan Note, Netcall are able to issue an early redemption notice at any time after the four-year anniversary of the date of the Loan Note. The interest cost resulting from the early redemption is £0.3m and the repayment will reduce the annual interest costs of the Loan Note from £0.6m to £0.3m.

Head Chef:

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

*A corporate client of Hybridan LLP

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