Small Cap Feast
Small Cap Feast – 10 February 2021
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Pursuant to the Company’s ultimate objective of effecting a managed wind down of its portfolio with a view to realising all of its investments RDL Realisation has left the main market (premium).
Pursuant to the Company’s ultimate objective of effecting a managed wind down of its portfolio with a view to realising all of its investments RDL Realisation has left the main market (premium).
What’s Cooking in the IPO Kitchen?
Report on Techcrunch that IROKO, a Nigerian-based media company, could file to go public in the next 12 months on the London Stock Exchange (LSE) Alternative Investment Market. Founded by Jason Njoku and Bastian Gotter in 2011, IROKO boasts the largest online catalogue of Nollywood film content globally. According to this report, the media company will raise between $20 million and $30 million valuing the company at $80 million to $100 million.
AMTE Power, a developer and manufacturer of lithium-ion battery cells for specialist markets, announced its intention to seek admission to trading on AIM. Admission is expected to take place during March 2021. The Company intends to raise approximately £7 million by way of a placing of new ordinary shares in the capital of the Company. Timing TBC.
Samarkand Group Limited, the cross-border eCommerce technology and retail group opening up the world’s largest market for brands and retailers, intends to IPO on the Apex Segment Aquis Stock Exchange Growth Market. Admission is targeted for March 2021.
Cellular Goods a UK-based provider of premium consumer products based on biosynthetic cannabinoids announced its intention to join the main market (standard) this spring. Target valuation £20m raising c. £8m “to finalise the development and launch of a range of the Company’s premium-quality consumer products based on biosynthetic cannabinoids, which is fully compliant under UK law.”
Kanabo Group (RTO by Spinnaker Opportunities SOP.L) on the main market (standard). Raising £6m, enlarged mkt cap £23.4m. Kanabo focuses on the distribution of Cannabis-derived products for medical patients, and non-THC products for CBD consumers . Due 16 Feb.
NextEnergy Renewables to launch an IPO on the Main Market. NREN is a differentiated renewables investment company that aims to capture the most attractive private renewables and energy transition infrastructure investment opportunities globally. Targeting a £300m raise. NREN is targeting total returns of 9-11 per cent. per annum (net of all fees and expenses but including the Target Dividend and capital appreciation) . The Company’s target dividend yield for the first full financial year to 31 December 2022 is 5.5 pence. Due Early March
Auction Technology Group is considering an IPO on the Main Market. The Group operates six world-leading online Marketplaces and proprietary global auction platform technology for curated online auctions . In FY20 the Group delivered pro forma revenue of £52.3 million, supported by notable underlying year-on-year growth from both Standalone ATG Group and Standalone Proxibid Group (12.4 per cent. and 40.4 per cent., respectively). For the same period, the Group delivered a strong profitability performance of £22.3 million pro forma Adjusted EBITDA representing a pro forma Adjusted EBITDA margin of 42.6 per cent.
Digital 9 Infrastructure launch an initial public offering on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of an initial placing and offer for subscription for a target issue £400m. Digital 9 Infrastructure plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet. The IPO Prospectus is expected to be published in March 2021.
Cordiant Digital Infrastructure to admit its shares on the Specialist Fund Segment of the Main Market of the London Stock Exchange . Targeting a £300m raise. Cordiant invests in global infrastructure and real assets, running infrastructure private equity and infrastructure private credit strategies through limited partnership funds and managed accounts. Due 16 Feb
4basebio UK Societas is a specialist life sciences group focused on therapeutic DNA for gene therapies and DNA vaccines and providing solutions for effective and safe delivery of these DNA based products to patients. The Company has been divested from 4basebio AG , a German company listed on the Prime Standard segment of the Frankfurt Stock Exchange . No capital to be raised on Admission. Anticipated market capitalisation on AIM Admission: £14.53m. Due 17 Feb
Cornish Metals (TSX-V: CUSN) intends to list on AIM. The Company is proposing to raise £5m by way of private placement of new Common Shares to advance the United Downs copper-tin project. The Company expects that Admission will become effective 16 February 2021. The Company’s Common Shares will continue to be listed and trade on the TSX-V in Canada. Raising £8.2m. £18.7m mkt cap.
Crossword Cybersecurity* 277p £14.2m (CCS.L)
The technology commercialisation company focused on cyber security and risk management, is pleased to announce that it has undertaken an oversubscribed fundraising of approximately £1.6m at a price of 260 pence per share.
The placing is to drive growth in the Company’s Rizikon Pro platform. Additionally, the Company intends to apply proceeds to increase sales and marketing resource, for product development and support and for general working capital purposes. The Placing Price represents a 6.8% discount to the closing price on 9 February 2021. Tom Ilube, CEO of Crossword, commented;
“I am delighted with the continued support we have received from our shareholders, and to welcome new shareholders including the Helium Rising Stars Fund in this latest fundraising, and two other new institutional shareholders. Crossword finished the fourth quarter of 2020 with its highest recorded quarterly revenue, putting us in a strong position coming into 2021. In 2021, we are confident of more than doubling the 25% revenue growth rate that we achieved in 2020. The drivers for this include accelerating the roll out of Rizikon Pro, an out-of-the-box version of our supplier assurance platform, launched in July 2020, and already being used by over 100 organisations. Additionally, in 2021 we will be focusing on securing major consulting clients, adding to our cyber security product portfolio, and expanding internationally.”
UK Oil & Gas 0.135p £16.9m (UKOG.L)
The High Court has upheld the Company’s injunction against unlawful protest at the Horse Hill site near Gatwick Airport.
Having conducted a comprehensive review of the case, the Judge, Mrs. Justice Falk DBE found, yesterday, that:
There was a sufficiently real and imminent risk to justify the interim injunction order and its revised scope (see the Company’s 5th February RNS), which prohibits trespass to the site’s land, obstruction of the main entrance and lorry surfing.
The injunction is a reasonable and proportionate restriction on protesters’ activities. The order does not prevent slow walking or simply standing outside the site, provided that this does not physically obstruct anybody entering or leaving the site.
The Injunction should be extended to include six named protesters associated with Extinction Rebellion (“XR”). In addition, two named XR protestors, who trespassed into the site on 10th October 2020, offered undertakings to the court to abide by the terms of the injunction in return for UKOG not seeking to pursue committal for a breach of the injunction. The injunction remains in force until a final two-day trial, to be scheduled between June and October 2021.
Pittards 53.5p £6.93m (PTD.L)
The specialist producer of technically advanced leather and luxury leather goods for retailers, manufacturers and distributors, announces a trading update in respect of its year ended 31 December 2020.
The unaudited results for the year show revenue of circa £15.2m, with revenue of circa £8.6m for the second half, up approximately 30% on the first half. The EBITDA performance was positive during the second half. We finished the year with a reduced break-even point and the cost base aligned to current conditions. Net debt at the end of the year was £ 10.1m ( £11.3m: 30 June 2020), an improvement of £1.2m on 30 June 2020. Allowing for £0.4m of Company shares purchased into treasury in the period, comparable net debt would have been £9.7m (31 December 2019: £9.6m), meaning that there has been a £1.6m cash improvement through trading since 30 June 2020. Headroom in facilities rose to £3.3m (£2.6m: 31 December 2019). Inventory levels are the lowest level for six years falling by £2.3m to £15.0m (£17.3m: 31 December 2019).
Customer orders began to rise towards the end of the year, and we started 2021 with an order book stronger than the beginning of the previous 2 years. The ongoing uncertainty associated with the pandemic remains, but the directors consider that there is more opportunity than risk as they look ahead.
Safestyle UK 41.2p £56.4m (SFE.L)
The retailer and manufacturer of PVCu replacement windows and doors to the UK homeowner market, today updated in advance of its preliminary results announcement for the year ended 31 December 2020 on 25 March 2021.
Following the Trading Update issued on 17 December 2020, the Group confirms that it expects The Group returned to profit for H2 in line with expectations. FY 2020 revenue to be over £113m, with H2 2020 revenue up 15% year on year. The underlying loss before taxation for the full year is expected to be approximately £(4.7)m, the loss being fully attributable to the cessation of operations during the first national lockdown in H1. Finally, the closing net cash position is expected to be approximately £7.6m at year-end.
The restart of in-home selling in February presents an opportunity for the Group to regain the strong order intake momentum established in H2 2020. The business is optimistic that Door Canvass operations will be allowed to restart during Q2 2021 as the UK moves out of the current lockdown.
Starcom 0.925p £3.25m. (STAR.L)
Starcom, which specialises in the development of wireless, Internet-Of-Things (IoT) based solutions for the remote tracking, monitoring and protection of a variety of assets, is pleased to provided a trading update for the year ended 31 December 2020 and an update on the Company’s prospects for the current year. The Company expects to announce its audited results for the year ended 31 December 2020 in early March 2021.
The results for FY 2020 reflect the global impact of Covid-19 on the Company. The Company’s preliminary unaudited accounts for 2020 show revenue of approximately $5 million (2019: $6.8 million), gross margin of 33% (2019: 41%) and an adjusted EBITDA loss of approximately $350,000 (2019: profit $296,000).
The Company has been successful in securing a low-cost long-term bank loan as well as government grants to mitigate the effects of the pandemic, and the resulting and unexpected cashflow pressure.
It is encouraging to see that, even in such a challenging year, the Company could still rely on its strong and loyal customer base to generate $2.2 million of SaaS revenues, an increase of approximately 9% compared to the previous year. Although hardware sales were severely depressed by the pandemic at $2.8 million, the newer and higher margin products – Kylos, Tetis and Lokies – still represented 40% of hardware sales. This included the second production batch of Lokies, which were well received by the customers.
Atalaya Mining 304p £420m (ATYM.L)
Appointment of Neil Gregson as an independent Non-Executive Director of the Company.
Neil Dean Gregson (aged 58) has over 30 years’ experience of investing in mining and oil and gas companies. From 2010 to 2020 he was a Managing Director at J.P. Morgan Asset Management where, as a member of the equity team, he was a portfolio manager investing in mining and energy companies globally. Prior to that, from 1990 to 2009 he was Head of Emerging Markets and Related Sector Funds (including natural resource funds) at Credit Suisse Asset Management. Mr. Gregson previously held various positions at mining companies, including a role as a mining investment analyst at Gold Fields of South Africa.
Avingtrans 310p £99m (AVG.L)
The international engineering group which designs, manufactures and supplies original equipment, systems and associated aftermarket services to the energy and medical sectors, today announces its interim results for the six months ended 30 November 2020.
Revenue was stable at £54.1m (2020 H1: £54.3m) · Gross Margin improved to 30.9% (2020 H1: 25.6%)· Adjusted EBITDA increased by 36.6% to £6.3m (2020 H1: £4.6m) · Profit before Tax was £1.4m (2020 H1 £0.4m)
Adjusted Profit Before Tax increased to £3.5m (2020 H1: £1.8m) · Adjusted Diluted earnings per share doubled to 10.0p (2020 H1: 5.1p) · Cash inflow from operating activities was £1.1m (2020 H1: £2.1m outflow)· Net Debt (pre IFRS16) increased slightly to £7.8m (31 May 2020: £7.4m) · Dividend to be reinstated at Full Year (2020 H1: suspended)
“Avingtrans continues to make good progress during the pandemic and has proven to be resilient. Following our PIE strategy, both Booth Industries and Energy Steel are continuing to improve since acquisition and the potentially transformational deal with Magnetica (post period end) is an exciting prospect for the medical division. The period result shows improving profits against flat revenues, once more demonstrating our agility, even in adversity. Although we face new challenges, we will also keep converting opportunities and we remain confident about our outlook in both the Energy and Medical sectors.”
Proactis Holdings 48.5p £46.3m (PHD.L)
The business spend management solution provider, is pleased to announce that it has signed a 3-year contract with an oil and gas services business in North America. This contract win represents a strategically important milestone for the Company, being the first new customer in North America to sign up under the Group’s new go-to market strategy. The customer, which provides coil tubing needs to oil drilling companies across six locations in North America, has selected Proactis to deliver its sourcing and supplier management requirements.
As announced previously, the Group adopted a new go-to market strategy for each of its US, France and Germany territories designed to replicate that of the UK and the Netherlands. This contract builds upon the contracts signed in France and Germany.
Conroy Gold and Natural Resources 36p £11.6m (CGNR.L)
The gold exploration and development company focused on Ireland and Finland announced encouraging results from a ground geophysical survey, including defining similar structural features that are known to host gold mineralisation. The survey was conducted by Golder Associates over the Cargalisgorran part of the Company’s Clay Lake gold target.
The reinterpretation of the geology using the new geophysical data has had a transformative impact on understanding the subsurface geology and gold mineralisation at the Cargalisgorran target. The interpretation highlights details of the gold mineralisation trend and newly discovered parallel structures upgrading the discovery potential for additional gold mineralisation.
The Cargalisgorran part of the Clay Lake gold target has already generated significant results from drilling (6.6 metres at 6.2 g/t Au) and trenching (12 metres at 2.2 g/t Au).
The value of such geophysical data in relation to drilling has been demonstrated on the Derryhennet part of the Clay Lake gold target, where the data indicated a geological feature which, on subsequent drilling, yielded a c. 100 metre drill intersection grading 0.6 g/t Au – which the Directors believe is one of the longest publicly recorded gold drill intersections in Britain or Ireland.
Synectics 132.5p £23.6m (SNX.L)
The specialist in the design, integration and support of advanced security and surveillance systems, announces that following a competitive tender process, it has received a letter of intent to enter into a multi-million pound contract for a large innovative, cloud-based surveillance control system to be installed in London commencing later this year. The precise scope and terms of the contract are currently being finalised and a further announcement will be made in due course.
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