Small Cap Feast

Small Cap Feast – 12 January 2021

Dish of the Day:

No joiners today

 

Off the Menu:

No leavers today

 

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.

 

Breakfast Buffet

Intelligent Ultrasound 14.5p £39.74m (IUG.L)

The ultrasound artificial intelligence (AI) software and simulation company, announces that Group revenue for the year to 31 December 2020, which is currently generated entirely by the Group’s Simulation Division, is expected to be £5.2m (2019: £5.9m). The decline of 11% is entirely due to the impact of the global pandemic.

Sales from the Group’s direct sales team, which together cover the UK and USA, are expected to have grown by over 15% to £3.8m (2019: £3.3m), helped by strong sales from the Group’s ScanTrainer and BodyWorks simulators, which incorporate the free of charge Covid-19 lung training module that was developed in response to the pandemic. However, sales in Europe and Asia, that are made through the Group’s reseller network, were impacted by Covid-19 restrictions and are expected to have declined to £1.4m (2019: £2.6m).

The Simulation Division has worked extremely hard to minimise the negative impact of Covid-19 on 2020 sales revenue and we are confident that, on-going global pandemic restrictions permitting, the Group will return to revenue growth in 2021.”

 

Curtis Banks 235p £156.1m (CBP.L)

One of the UK’s leading SIPP providers, today provides an update on its trading performance for the twelve months ended 31 December 2020.

Despite the disruption caused by the COVID-19 pandemic, the Group delivered a robust trading performance throughout 2020, both operationally and financially. Strategically, the Group completed the acquisitions of Talbot and Muir, a high-quality provider of SIPP and SSAS schemes, and Dunstan Thomas, a leading FinTech provider, and announced a new fee charging structure for clients. 

In 2021 and beyond, these initiatives will reduce the proportional contribution of interest income to total revenue and improve the overall quality and diversity of earnings across the Group.

 

Katoro Gold 2.2p £7.2m (KAT.L)

Update regarding the maiden drill programme targeting the discovery of nickel and platinum group metals  at the Haneti Nickel Project  in Tanzania.

Maiden drill programme involves 2,000 metres of Rotary Air Blast (RAB) drilling at Haneti with a planned 50 holes of circa 40 metres depth. By end of drilling on 6 January 2021 a total of 22 holes and 863 metres had been drilled at the Mwaka Hill target, with the plan to move to the Mihanza Hill target during the week commencing 11 January 2021.

The RAB drill holes are being drilled on profiles across the three target areas in order to provide enhanced information of the subsurface shape and orientation of the ultramafic rock bodies being targeted and to allow for the optimisation of a planned follow-on diamond drill programme.

 

Appreciate Group 32.8p £61.12m (APP.L)

The UK’s leading multi-retailer redemption product provider to corporate and consumer markets, today provides an update on its important Q3 trading period for the three months ended 31 December 2020 in the current financial year.

  • Underlying Q3 billings1 were up by 13.1 per cent to £96.3m (Q3 2019: £85.1m).

o  This included a 42 per cent increase in December to £45.5m (Q3 2019 £32.1m) – its best ever month.

o  And continued positive momentum in digital sales, with an almost four-fold total rise over the period to £22.5m (Q3 2019: £5.9m), reflecting the acceleration of online retail.

The Group is expected to deliver a full year performance for the year ending 31 March 2021 at least in line with the mid-range scenario as set out in its 2020 annual report and accounts, although the latest lockdown measures may delay some revenue and profit until customers have more options to redeem their products.

 

Restore 387.5p £487m (RST.L)

The UK document management, commercial relocation and IT recycling business has  acquired 100% of the share capital of Computer Disposals Ltd , a leading IT recycling and asset disposition (ITAD) business based in Runcorn, UK, on 8 January 2021.

 

Following this acquisition, Restore Technology becomes the number one IT recycling business in the UK market which is large, growing and heavily fragmented. The addition of CDL, together with the Group’s acquisition of E-Recycling Limited, previously announced on 2 November  2020, further improves Restore’s network coverage, scale and potential for synergy. CDL is a well invested, highly profitable and cash generative business and is expected to generate revenues of approximately £8m and EBIT of more than £2m per annum in the medium term.

 

Distil 2.35p £11.8m (DIS.L)

Trading update and new product launch. –  Year-on-year third quarter (October to December 2020) revenues increased by 22%, supported by up-weighted marketing investment.   Cumulative revenues for the nine months (April to December 2020) grew 70% versus the same period last year. –  New brand launch: TRØVE Botanical Vodka.

 

Nichols 1222.5p £451m (NICL.L)

The diversified soft drinks Group, provides a trading update for the 12 months to 31 December 2020 .

During the period the Vimto brand achieved strong growth in the UK and the Group’s International business continued to perform well. However, as reported by the Group in its trading update on 19 November 2020, this progress was offset by declines in the Group’s UK Out of Home  route to market, as a result of the coronavirus pandemic. 

In line with the Board’s expectations, total Group revenue in the period decreased by 19.3% to £118.7m versus the prior year. The Group expects to report Adjusted Profit Before Tax for FY20 in line with its previous guidance.

Whilst recognising the current and near-term impact of the pandemic on the soft drinks market, the Board continues to believe that Nichols, underpinned by the strength of the Vimto brand, the Group’s diversified business model and the robust balance sheet, remains well placed to deliver its long-term strategic ambitions.

 

Boku 159.5p £459m (BOKU.L)

The independent carrier commerce company  provided an unaudited trading update for the financial year ended 31 December 2020.

The Group saw continued strong payments revenue growth in H2 2020, particularly in Q4, which translated into higher levels of EBITDA due to powerful operational gearing, with Group results for FY 2020 now expected to be ahead of the current market consensus expectations for both revenues and EBITDA. 

  • Group revenue for 2020 is expected to be at least $56.3m (2019 $46.8m); an increase of at least 20% on 2019 underlying revenues
  • Group adjusted EBITDA is expected to be at least $15.0m (2019: $7.4m); showing an increase of over 100% on 2019, and a further $1.5m ahead of market consensus expectations, as upgraded following the Company’s trading update on 2 December 2020

 

CentralNic Group 101.5p £237m (CNIC.L)

The global internet platform that derives revenue from the worldwide sales of internet domain names and related web services has acquired SafeBrands, a leading online brand protection software provider and corporate internet services provider.

On 9 January 2021, CentralNic acquired SafeBrands, a France-based award-winning innovator and technology pioneer for a total cash consideration of up to EUR 3.6m ($4.4m), representing 0.9x its FY2019 revenue. SafeBrands operated at approximately breakeven in FY2019. Out of the total consideration, EUR 3m ($3.7m) was paid upfront with the remaining EUR 0.6m ($0.7m) to be paid subject to SafeBrands having met agreed FY20 financial objectives.

 

Helium One Global 8p £39.75m (HE1.L)

Advancement of its aggressive exploration programme at the Company’s Rukwa Project in southern Tanzania with submission of key environmental studies.

  • Completion of Environmental and Social Impact Assessment (ESIA) and Compensation Survey, including consultation with communities in nine villages closest to the drill locations.
  •   Submission of key Environmental Impact Assessment for the Company’s proposed drilling programme at the Rukwa Project to the National Environment Management Council (NEMC) of the Tanzanian Government.
  •   The study, which covers a project area of 310km2 in three prospecting licences (PL10712/2015, PL10713/2015 and PL10727/2015), is a key document in securing environmental permits for exploration drilling and an important milestone towards Helium One’s maiden exploration drilling in Q2 2021.

Helium One is pursuing an aggressive exploration programme across is globally unique, large-scale, high-grade, Rukwa primary helium project in Tanzania which has the potential to become a strategic asset in resolving a supply-constrained market.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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