Small Cap Feast

Small Cap Feast – 10 November 2020

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What’s Cooking in the IPO Kitchen?

Bytes Technology Group one of the UK’s leading software, security and cloud services specialists, announces that the Company intends to publish a Registration Document and is considering proceeding with an initial public offering (Main Mkt Prem). FY20 gross profit of £79.2m (+24.5% against FY19) and adjusted operating profit of £31.7m (+53.9% against FY19). Highly cash generative with FY20 cash conversion of 125.9% (FY19 cash conversion 139.7%). Bytes due on or around 17 December 2020.
Round Hill Music Royalty fund to IPO on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of a placing and offer for subscription targeting the issue of 375m ordinary shares at an issue price of US$1.00 per Ordinary Share. The Company’s Investment Objective is to provide investors with an attractive level of regular and growing income and capital returns from investment primarily in high quality, music intellectual property. Due mid-November.
Mailbox REIT PLC , a newly formed single asset company which owns the Mailbox , a large prime office-led mixed use property in Birmingham which has been independently valued at £179m, announced its intention to raise up to £62.5m. MailBox REIT will apply for the Ordinary Shares be admitted to trading on the IPSX Prime segment of International Property Securities Exchange (IPSX ). Due November.
Tirupati Graphite, the fully-integrated, cash generative, specialist graphite and graphene producer with operations in Madagascar and India, announced its potential intention to undertake an initial public offering on the LSE (standard listing). Timing tbc
Umuthi Healthcare Solutions Plc, the technology led healthcare business focused on the distribution of pharmaceuticals and the provision of medical facilities in remote areas, seeking admission to the Standard Listing segment of the Official List. Timing tbc
Kibo Energy PLC, the multi-asset Africa focused energy Company, is seeking admission for its 100% owned UK subsidiary Sloane Developments Ltd , which will be renamed Mast Energy Developments PLC (MED), to the Standard List of the London Stock Exchange plc. The MED business strategy is to acquire and develop a portfolio of flexible small-scale power generation assets, exploiting a growth niche market in the UK for Reserve Power generation to balance out the national grid at critical times. Targeted for Q4 2020.

Press reports emerged late last week that cybersecurity firm Darktrace is targeting a float next year with a US$5bn valuation. The company uses artificial intelligence technology to spot cyber threats for businesses. Some of its clients include BT Group, William Hill and online shopping giant Ocado. Its investors also include KKR & Co, Vitruvian Partners and Summit Partners. Targeted for 2021.

Breakfast Buffet

88 Energy 0.44p £39.3m (88E.L)

Update related to its Project Icewine on the North Slope of Alaska. Total Prospective Resources of 1.77bn barrels of oil equivalent. Substantial oil volume in the Seabee formation – 1.4bn barrels. Farm-out process for 2022 drilling at Project Icewine to commence immediately.

SolGold 32.4p £672m (SOLG.L)

Formation of the Alpala Project Committee. The key objectives of this committee are to actively participate in setting the development strategy, provide advice, support effective decision making and monitor the staged development to achieve agreed outcomes relating to the Alpala Copper-Gold-Silver Project. The Committee will comprise of least three Board members, two being independent non-executive directors, and senior members of project and executive team. “The establishment of the Project Committee will leverage the vast experience of Keith Marshall and Kevin O’Kane and build on the existing SolGold technical and management skill set. This is another key building bock as we move Alpala forward and transition it into the development phase.”

Ceres Power 777p £1.3bn (CWR.L)

Doosan Fuel Cell announces the signature of a Memorandum of Understanding with Navig8 for the joint development of a solid oxide fuel cell (SOFC) system that provides cleaner power for ships, enabling them to reduce carbon emissions and improve air quality. This system will be based on Ceres’ proprietary SteelCell SOFC stack technology. Marine applications could represent a significant expansion of Doosan’s future business for the Ceres SOFC technology beyond the established stationary power market.

Red Rock Resources 0.8p £6.6m (RRR.L)

Update in respect of Red Rock Australasia Pty Ltd (RRAL) a joint venture company with gold exploration interests near the historic mining centre of Ballarat in the Gold Fields of Victoria. Red Rock owns 50.1% of RRAL, with 49.9% being owned by Power Metal Resources plc (AIM:POW). RRAL has been notified that a further seven of its license applications have been accepted and have been given highest ranking, following the notification in respect of the first three applications received in early July. RRAL will now advertise the seven applications in newspapers with statewide and local circulation, and after a three week exposure period, the Department of Jobs, Precincts and Regions of the State of Victoria will begin the application assessment process. Applications EL007282, EL007294, EL007301, EL007327, EL007328, EL007329, and EL007385 RRAL are those now being advertised.

Frontier IP Group 65.5p £36m (FIPP.L)

The specialist in commercialising intellectual property, today notes an announcement from portfolio company Alusid that it has raised £250,000 via a convertible loan, including a £125,000 investment from the UK government’s Future Fund. The investment from the Future Fund, which was established to support the UK’s innovative businesses currently affected by COVID-19, has been matched by £100,000 from the Group and £25,000 from a private investor. Frontier IP holds a 35.6 per cent equity stake in the Company. The funding will be used to accelerate development and commercial scale up of Alusid’s patented technology to create premium-quality tiles and other surfaces from recycled ceramic, glass and other industrial waste. Earlier this year, the Company completed a successful pilot on industry-standard mass production equipment, which will transform capacity from 4,000 m2 a year to 1,000 m2 a day.

IMImobile 1114p £3.3bn (IMO.L)

The global cloud communications software and solutions provider, announces it now offers Google’s Business Messages as an additional customer communication channel for enterprises. Today, billions of customers find businesses through a simple Google search, often resulting in website visits or phone calls. With Google’s Business Messages, brands can offer the ability for consumers to message them within organic Google search results – such as Search or Maps – with just one click. Brands can also enhance customer service by displaying expected response times, providing answers to frequently asked questions, or connecting customers to live agents when required. This removes the need for customers to call contact centers which reduces costs for businesses and improves the overall customer experience. Business Messages enables rich features such as carousels, cards, quick replies, photos, and more to create interactive, engaging messaging experiences. Chatbots and customer service agents can easily use these features to deliver scheduling, support, and even purchasing journeys seamlessly via this new messaging channel.

MTI Wireless Edge 49.5p £43.8m (MWE.L)

The technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, is pleased to announce that it has secured an order from a new Northern European customer, worth up to US$0.65m, for the development and manufacturing of military antennas. The first stage of the agreement, which is underway and is worth US$0.3m, will provide the customer with prototype units expected to be completed within 12 months. The second stage is subject to the customer deciding to order the antennas to be manufactured and is expected to be worth up to US$0.35m, depending on the size of the order.

Solid State 570p £48.7 (SOLI.L)

The manufacturer of computing, power and communications products, and value added supplier of electronic and opto-electronic components, is pleased announced that its Manufacturing division, Steatite, has secured funding from Innovate UK, the UK’s innovation agency, for the development of its battery powertrain solution for non-road mobile machinery under its Sustainable Innovation Fund initiative. The aim of the research and development projects under the fund is to help all sectors of the UK economy build back better over the next two years after the effects of COVID-19.

Urban Logistics 141p £359.6m (SHED.L)

The specialist UK logistics REIT, has acquired a logistics site in Hoddesdon, Hertfordshire, for £34.3m at a 5.4% NIY, as part of the deployment of the capital raised from the Company’s recent fundraising. The 12-acre site comprises five units, three of which are let to Müller UK & Ireland Group, a major producer and distributor of dairy products, until 2030 with a rent review in 2025. The passing rent is £8.75 per sq ft. The other units are currently vacant and provide an opportunity for considerable value enhancement through active asset management, with several potential occupiers already expressing interest. The site is strategically located seven miles from the M25 and benefits from excellent access as well as a dedicated local power supply, making it a highly attractive “last touch” distribution hub.

Equals 29p £51.8m (EQLS.L)

The technology-led international payments group providing SMEs with efficient, integrated, payment settlement solutions across spot and forward FX, card payments and Faster Payments , announced the commencement of a new B2B relationship with HomeSend, a global leader in cross-border payments. Under this agreement, the Group will bolster HomeSend activities in the UK, further enabling customers to send money to UK bank accounts in real time and with upfront transparency of all associated fees.

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