Small Cap Feast
Small Cap Feast – 11 January 2021
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What’s Cooking in the IPO Kitchen?
Further media reports that Dr Martens, the British Boot brand is planning an IPO on the LSE. It is currently owned by PE group, Permira who is expected to sell down its stake at the IPO. March 2020 YE the group had revenues of £672m and EBITDA of £184m. Deal size TBC.
Upon Admission to AIM, Nightcap will acquire The London Cocktail Club Limited (the “London Cocktail Club”), which is an award winning independent operator of ten individually themed cocktail bars in nine London locations and one location in Bristol. Offer TBC Due mid Jan.
HSS Hire Group, HSS.L transfer from Main to Aim. Mkt Cap c. £70m. Recently raised £52.6m. Leading supplier of tool and equipment for hire in the United Kingdom and Ireland and has provided equipment hire services in the United Kingdom for more than 60 years, primarily focusing on the B2B market. Due 14 Jan.
VH Global Sustainable Energy Opportunities plc, a closed-ended investment Company focused on making sustainable energy infrastructure investments, today announces intends to launch an initial public offering of shares on the Official List (Premium) of the Main Market of the London Stock Exchange. Due by Early Feb.
Science Group 315p £129.6m (SAG.L)
Trading, Business and Board Update from the international consulting services group supporting the entire product innovation lifecycle.
Group revenue for the year is now anticipated to be in the order of £73 million (2019: £57.2 million). While the Board took the opportunity during the second half of the year to increase investment in infrastructure and personnel, early indications are that, subject to audit, the Group’s adjusted operating profit for the year ended 31 December 2020 will exceed the previously upgraded expectations of £10 million (2019: £6.7 million).
After almost 7 years with the Group, Rebecca Archer, Group Finance Director, has advised the Board of her intention to resign to take up a new role. Sameet (SAM) Vohra has accepted the position of Chief Financial Officer Designate. Sam qualified as a Chartered Accountant with KPMG and has gained considerable experience in senior finance leadership roles in UK listed international businesses, including Group Financial Controller at TT Electronics PLC and Group Director of Finance at Spectris PLC, the FTSE 250 precision engineering company. Most recently, he was Interim Group Finance Director at Ted Baker PLC during their financial restructuring.
Since the acquisition in 2019, the restructuring and turnaround of Frontier has been very successful, resulting in an excellent performance in 2020. Frontier is now a strongly profitable technology business with a market leading position. Confirmed orders at the start of 2021 are very healthy and shipments in the first part of the year may be supply constrained.
Diaceutics 148.5p £124.8m (DXRX.L)
Trading update from the data analytics and end-to-end services provider enabled by DXRX – its –proprietary Diagnostic Network solution for the development and commercialisation of precision medicine diagnostics. Despite the challenges presented in the year due to the Covid-19 pandemic, Diaceutics has progressed its strategy and the Group’s revenue and adjusted EBITDA for the year to 31 December 2020 are expected to be approximately £12.6m (2019: £13.4m) and £0.5m (2019: £2.2m) respectively, with EBITDA breakeven. This is ahead of revised market expectations.
The Group has a strong closing cash position of £25.3m (2019: £11.7m) which includes the funds from the £20.5m share placing, completed in June 2020.
Significant progress has also been made on ‘DXRX – The Diagnostic Network®’, the Company’s proprietary Diagnostic Network platform for precision medicine, since its successful launch on schedule on 28 October 2020 with:
- 19 of the Company’s top 30 Pharma clients engaged with the platform to explore their precision medicine needs and eight client projects now confirmed for delivery via the platform in H1 2021; and
- 68 leading cancer laboratories and diagnostic companies have been successfully brought directly online to support marketplace collaborations.
Cloudcall 113.5p £44.1m (CALL)
The integrated communications company that provides unified communications and contact centre software that tightly integrates with Customer Relationship Management platforms, launches its second integration with The Access Group, further strengthening the partnership and footprint within the recruitment sector.
The new integration, which comes after Access Profile, brings together CloudCall’s powerful integrated communications software with Access Recruitment CRM, enhancing the suite of recruitment CRM products and services within The Access Group’s impressive portfolio.
Access Recruitment Software is trusted by more than 200 of the top UK’s recruitment agencies including Adecco, Alexander Mann, Impellam and Staffline.
Brave Bison 1.45p £8.9m (BBSN.L)
The social media and marketing group announced that trading in the second half of 2020 has been ahead of both management expectations and the corresponding period from the prior year. These H2 2020 results mark encouraging progress for Brave Bison, although the Board continues to manage costs carefully in what remains an uncertain economic environment. For the six-month period to 31 December 2020 (unaudited):
- Adjusted EBITDA (before exceptional items and share based payments)1 is expected to be not less than positive £500k, compared to negative £658k for H2 2019 and ahead of the expectation, reported in the Company’s Interim Results announced in July 2020, that the Company would become EBITDA breakeven on the same basis during H2 2020.
- Net cash has increased by £634k from £2.1m in June 2020 to £2.7m as at 31 December 2020.
- Revenue is expected to be not less than £7.2m, an increase of 7% on H2 2019.
AssetCo 800p £104.5m (ASTO.L)
The providers of management and resources to the fire and emergency services in the Middle East announces that Martin Gilbert, Peter McKellar, various associates and funds managed by Toscafund Asset Management, a multi asset fund manager, have, in aggregate, acquired a minority stake of 29.8% of the issued share capital of the Company at 475 pence per share, which is approximately the estimated net asset value per share, from a number of institutional shareholders and the Board.
Diurnal 62.5p £86.5m (DNL.L)
The specialty pharmaceutical company targeting patient needs in chronic endocrine (hormonal) diseases, announces the grant of a key patent for Chronocort® (modified release hydrocortisone) by the European Patent Office. EP2814469 , entitled “Hydrocortisone controlled-release formulation”, is a patent disclosing and claiming the composition of matter and medical use of Chronocort® for the treatment of patients with the rare diseases congenital adrenal hyperplasia (CAH) and adrenal insufficiency (AI). The patent provides in-market European protection until 2033 in all designated states of the European Patent Convention. The equivalent patents from the same family are already granted in the UK, Canada, Mexico, New Zealand, Japan, Australia, Israel, South Africa, South Korea and in the US.
The Marketing Authorisation Application (MAA) for Chronocort® as a treatment for adolescents and adults with CAH is under review by the European Medicines Agency (EMA) following submission of the MAA dossier in December 2019. The MAA was subsequently validated and accepted for review by the EMA in April 2020 and the outcome of the EMA review is anticipated during Q1 2021.
Frontier IP 66p £36.3m (FIPP.L)
The specialist in commercialising intellectual property, notes an announcement from portfolio company Elute Intelligence Holdings Limited that it has successfully raised £250,000 through its first equity funding round.
The investment, made by private investors in return for a 10 per cent equity stake, values the Company at £2.5 million post-money, and Frontier IP’s holding of 41 per cent at £1.0 million.
Proceeds from the fundraising will be used to support Elute’s recently launched Patent Reader and development of an enterprise search tool based on the same underlying technology, which uses forensic linguistics to speed searches through unstructured document datasets.
Intuitive Investments 22.75p £9.2m (IIG.L)
The closed-end investment company focussed on the life sciences sector, announces a pre-IPO investment of £1 million by way of unsecured convertible loan notes in Light Science Technologies Holdings Limited. LST is intended to become the holding company for a UK based light technology company, with initial applications in the controlled agriculture environment sector and a longer-term development application in non-invasive medical diagnostics.
LST is IIG’s first investment from its pipeline of opportunities, following its successful IPO and Admission to AIM in December 2020.
Draper Esprit 675p £938.4m (GROW.L)
The venture capital firm investing in and developing high growth digital technology businesses, today provides an update on recent developments in its portfolio.
Key highlights are as follows:
- Draper Esprit continues to experience strong business momentum
- Delivering on its stated objective to deploy further capital by leading rounds in high growth technology investments at Series B onwards
- Investments comprise a mix of new portfolio companies and follow on into high growth opportunities in the existing portfolio
- £56 million invested in 11 investments since 30th September 2020 (£32 million invested to half year)
Tricorn Group 7p £3.45m (TCN.L)
Further to its announcement of 7 December 2020, Tricorn Group plc, the AIM listed tube manipulation specialist, announces that the stocktakes conducted at both of its UK sites, Malvern and West Bromwich, during December 2020 produced a modest gain of approximately 2 per cent. of gross inventory. The Board considers that this was an encouraging indication supporting the integrity of the ongoing margins in the Company’s current financial year.
A further announcement will be made later this month regarding the Group’s trading in the first quarter to 31 December 2020.
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