Small Cap Feast

Small Cap Feast – 13 may 2020

Dish of the Day:

No Joiners Today

 

Off the Menu:

No Leavers Today

 

What’s Cooking in the IPO Kitchen?

The pantry is empty, again!

 

Breakfast Buffet

Modern Water 2.16p £10.8m (MWG.L)

Following the collaboration agreement with Ion Exchange , an order for stage one of a two stage project with a total value of c. £900,000 project has been received. The estimated net value to Modern Water for stage one is approximately £50,000 and for both stages is between c. £235,000 and c. £270,000.

 

AorTech 91p £14.7m (AOR.L)

Trading update ahead of the publication of the Group’s audited final results for the financial year ended 31 March 2020, which are expected to be released in the second half of July 2020.

Highlights:

  • Growth in polymer licensing and royalty revenue from £463k to £490k
  • Strong cash position of £2.0 million as at 31 March 2020 (2019: £2.4 million)
  • Research and Development activities currently exceeding the Board’s expectations
  • Integration of RUA Medical Devices Limited progressing to plan

 

Applegreen 280p £338m (APGN.L)

The roadside convenience retailer, has successfully completed a process to access additional facilities and secure its liquidity for the likely duration of the COVID 19 crisis.

The Group has converted EUR52.5m of the accordion facility in its existing Applegreen plc banking facilities into its Revolving Credit Facility, which represents an increase to the committed funding available for the remaining term through to October 2023.  Applegreen plc’s lenders have also agreed to substantially relax or remove covenant conditions for the tests arising in each quarter up to and including June 2021. 

“Whilst it is important to have additional headroom in our facilities, we do not anticipate drawing down these additional facilities. We reiterate our view that we have sufficient cash to get us through this cycle based on a scenario where movement continues to be severely restricted to the end of May with the expectation that restrictions will then ease gradually before normalising in Q4. We also expect to have adequate existing cash resources to trade through a downside scenario where the recovery period is more prolonged, to the end of 2021.

All our sites have remained open and current trading levels are ahead of our baseline assumptions for Q2 while the reduction in our working capital levels are consistent with our expectations. We also note that the recent easing of movement restrictions in each of our markets has resulted in increased traffic volumes.”

 

Gaming Realms 10p £28.5m (GMR.L)

The developer and licensor of mobile focused gaming content has signed a 2-year agency deal with Hasbro Inc , the global play and entertainment company committed to creating the world’s best play and entertainment experiences.

Under the terms of the agreement, Hasbro will have exclusive rights to act as an agent on behalf of the Group to identify and help negotiate licensing opportunities for the Slingo brand in various digital gaming categories.

With an established market presence in land based and digital gaming, through its Monopoly brands, the deal will enable Hasbro to bring further licensing opportunities to Gaming Realms in new and existing territories in certain digital gaming categories outside the online real money gaming and lottery segments.

 

World High Life 8p £11.65m (AQSE:LIFE)

Its wholly owned subsidiary, Love Hemp Ltd continues to focus on new product development to drive sales growth and reach customers.

The importance of the Love Hemp brand’s ability to be flexible and agile whilst responding to consumer needs has never been more apparent, with Love Hemp Immune launching six-months ahead of schedule, whilst the brand’s global online retailer, CBDOilsUK has expanded its portfolio with the launch of one of the most affordable collections of CBD capsules and oils available to-date, 2020 Botanics.

Love Hemp New Product Development Highlights Include

— London-based CBD product pioneers, Love Hemp launched Love Hemp Immune, developed to support the body’s natural immune systems, containing vitamins and minerals

— Made with the highest quality ingredients, including a combination of CBD, Vitamin C, Vitamin D and Bilberry extract – all essential supplements that support a healthy immune system

Love Hemp’s global online retailer, CBDOilsUK is expanding its product portfolio with the launch of its new CBD range, 2020 Botanics – five new products ranging from high to low strength in both capsule and oil formats

 

Bluerock Diamonds 55p £2.9m (BRD.L)

Update on its operations and marketing strategy further to the recommencement of operations earlier this week. The Company’s ability to operate has been dependent upon the stance taken by the South African Government in dealing with the pandemic.  Secondly, whether BlueRock can operate profitably will depend on when and how the global diamond market responds/recovers and returns to a point where the Company can sell its diamonds again profitably. Having adapted its working practices to comply with the South African Government regulations and now established a new route to market together with associated finance, the Board believes that the Company can operate in the current environment.

 

Egdon Resources 1.85p £6m (EDR.L)

Update on the Wressle development in North Lincolnshire Licences PEDL180 and PEDL182 where the Company holds a 30% operated interest. “Following NLC approval of the installation plan and discharge of the associated planning condition we have now completed the installation of four groundwater monitoring boreholes on the Wressle site. These boreholes will be subject to monitoring and analysis throughout the life of the site, with an initial three months of sampling to determine baseline groundwater quality. As previously advised, on current plans, the Company envisages first oil during H2 2020.”

 

Tri-Star Resources 20p £19m (TSTR.L)

update on its investment in Strategic & Precious Metals Processing LLC, an antimony and gold production facility in the Sultanate of Oman in which the Company holds a 40% equity interest.  SPMP has sold and on 6 May SPMP shipped its first consignment of antimony comprising 60 tonnes of antimony metal ingots. This is an important step in the ramp-up of operations at SPMP.  The management of SPMP expects the plant to be operating at 50% of capacity by the end of Q2 2020 and 100% by the end of the year. As also announced on 8 April 2020, OIF has issued a Request for Arbitration, commencing an arbitration proceeding with Tri-Star, DNR and SPMP as Respondents.   A Sole Arbitrator has now been appointed but has yet to make contact with the parties.

 

Fox Marble Holdings 3.1p £8.14m (FOX.L)

Fox Marble has commenced processing the contract announced on 14 April 2020 to supply up to 20,000 square metres of paving for Suhareka town square, Kosovo.  Fox Marble is now processing the paving slabs in order to supply its material in time for its customer to start the installation as soon as the current lockdown provisions in Kosovo are eased.  Material already specified and contracted under the first two stages of the project has a total value in excess of €400,000 and, once all 20,000 square metres has been supplied, the project is expected to be worth in excess of €750,000.

 

Oxford Biomedica 741p £570m (OXB.L)

The gene and cell therapy group, announced today the successful outcome of their recent UK Medicines & Healthcare products Regulatory Agency (MHRA) inspection, resulting in the issue of a Certificate of GMP compliance for the first two GMP manufacturing suites and supporting area such as warehouse, cold chain facilities and QC laboratories, in its new Oxbox manufacturing facility. 

Oxbox is Oxford Biomedica’s new 7,800 m2 commercial manufacturing centre, located in Oxford, UK. Phase I is 4,200 m2 of developed area consisting of six GMP manufacturing suites – four for viral vector production and two for fill-finish, warehousing and cold chain facilities and support laboratories. Construction was completed at the end of 2019. This approval by the MHRA of the first two suites enables commercial production of batches to commence for partner programmes within the coming weeks.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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