Small Cap Feast

Small Cap Feast – 14 July 2020

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What’s Cooking in the IPO Kitchen?

AEX Gold (TSXV:AEV) is intending to admit its shares to AIM alongside a £45m placing. The Company, led by CEO Eldur Ólafsson, has established the largest land package of gold assets in Greenland with a current portfolio of licences covering 3,356 square kilometres, in the two known gold belts in Southern Greenland, the Nanortalik and Tartoq gold belts. Nalunaq is a high-grade gold asset with an updated Inferred Mineral Resource covering 422,770 tonnes at 18.5 grams per tonne of gold, or 250,970 ounces of gold, which covers the area in and around the historical mine.  Due July.  Current mkt cap C$66.7m.

Breakfast Buffet

Netcall 39p £56.3m (NET.L)

The provider of Low-code and customer engagement solutions, today announces its trading update for the year ended 30 June 2020.

The Board anticipates full year revenue to be £25.1m corresponding to 10% growth (FY19: £22.9m) and adjusted EBITDA  growth of approximately 29% to £4.4m (FY19: £3.4m), in line with market expectations.

Cloud annual contract value (ACV) increased 25% to £7.5m (FY19: £6.0m) contributing to a 7% growth in total ACV to £16.8m (FY19: £15.7m).

 

Mattioli Woods 715p £193m (MTW.L)

The specialist wealth management and employee benefits business, today issues the following trading update for the year ended 31 May 2020.  The final results for the year will be announced on Tuesday, 2 September 2020. 

  • Growth in revenue and strong growth in adjusted EBITDA and adjusted PBT
  • Improved margins following operational restructure pre COVID-19
  • Mitigating actions taken to protect financial position in light of the COVID-19 pandemic
  • Continued to deliver an uninterrupted service to clients
  • Building capacity to do more for existing clients and future growth
  • Total client assets of the Group and its associate3 of £9.3 billion at the year end
  • Gross discretionary assets under management4 of £2.6 billion, with net inflows of over £200 million during the year
  • Recent acquisitions integrating well
  • Strong financial position, with £26.0 million of cash at year end

 

Elecosoft 78.5p £64.6m (ELCO.L)

Trading update for the six months ended 30 June 2020, based on unaudited management accounts for the period.

Unaudited revenues for the six months ended 30 June 2020 held up well and were lower than revenues for the same period last year by only 4 per cent.

Unaudited management accounts for the six months ended 30 June 2020 also showed that profits before tax increased by 23 per cent, compared with profit before tax in the same period last year and that adjusted profit before tax increased by 14 per cent.

Strong cashflow in the period ended 30 June 2020 also enabled Elecosoft to improve its net cash position from £1.1m at 31 December 2019 to £4.4m as at 30 June 2020.

The Board of Elecosoft expects to release Elecosoft’s interim results in late September and will announce the date in due course.

 

Inspecs Group 205p £145m (SPEC.L)

Inspecs Group plc, a designer, manufacturer and distributor of eyewear frames to independent and global retail chains, has completed the acquisition of the manufacturing operations of The Norville Group Ltd  from the Administrator, BDO LLP, for a total cash consideration of £2.4m. The acquisition includes £1.2m of freehold property for Norville’s Gloucester site and the remainder for stock, plant, IP and contracts. 

Norville is a long-established manufacturer of optically advanced spectacle lenses, supplying optical retailers with complete spectacles, including well-known brands, and is considered to have the most advanced portfolio of spectacle lenses in the UK. The manufacturing operations are undertaken primarily from the business’ headquarters in Gloucester, with smaller operations in Bolton, Seaham and Livingston. Inspecs intends to retain part of Norville’s management team and employees as part of the acquisition.

Norville’s management accounts for the year to 31-Dec-19 show unaudited revenue of £11.8m, loss before tax of £0.79m and EBITDA of £0.39m. The net book value of the assets acquired was £4.9m including the freehold property. The acquisition is being funded from the Group’s existing cash resources.

 

Thor Mining 0.38p £4.87m (THR.L)

Sale of the Spring Hill gold project royalty entitlement, subject to approval from the Australian government Foreign Investment Review Board (FIRB), to AIM quoted Trident Royalties Plc:

 Highlights:

  • Total consideration of A$1.0 million,
  • Initial payment of A$400,000, comprising A$50,000 immediate payment, followed by A$350,000 on completion, including FIRB approval,
  • First production milestone payment of A$300,000 upon cumulative sales reaching 25,000 ounces of gold,
  • Second production milestone payment of A$300,000 upon cumulative sales reaching 50,000 ounces of gold.

 

EKF Diagnostics 47.5p £216m (EKF.L)

Trading update for the six months ended 30 June 2020 and confirmation that, since the 15 May 2020 update, it has received PrimeStore MTM sample collection device orders totalling $9.0m. This brings the current total of such orders for the three month period ending 30 September 2020 to $14.1m.

The current financial year has started very well, as reflected in the recent trading updates and upgraded market expectations. The over-performance, in terms of adjusted EBITDA growth, is largely due to high demand for the PrimeStore MTM Device which is used for safe COVID-19 sample collection and is manufactured under contract by EKF in the US and UK.

Previous guidance from the 15 May 2020 trading update set expectations of revenues of at least £25m and adjusted EBITDA £7.5m for the first half, and these have been comfortably exceeded. Revenues for the six months ended 30 June 2020 are £26.3m (H1 2019: £21.44m) and the Company expects to report adjusted EBITDA in the region of £9m (H1 2019: £5.58m).

 

Brand Architekts 107.4p £18.5m (BAR.L)

The personal care and beauty products group with its own portfolio of brands, announces an update on trading for the 52 weeks to 27 June 2020 and board succession.

Trading performance

Sales performance during the second half of the financial year (“FY”), which was inevitably impacted by the COVID-19 pandemic, was stronger than the Board had anticipated and communicated at the time of our last trading update in April. However, revenue generated in H2 2020 is still significantly below the comparative period last year.

Net sales for FY20 were £16.3m, which excludes sales from discontinued operations, a decline of 17% on the prior year. Sales in the first half were £10.6m, a decline of 15% when compared to H1 2019 (£12.5m). Sales in the second half of FY20 declined by 21%, with net sales of £5.7m (H2 2019: £7.2m).

 

RBG Holdings 77.2p £66.1m (RBGP.L)

The professional services group, which owns LionFish Litigation Finance (UK) Limited (“LionFish”) , has today launched ISLERO – a new generation of financing solutions for insolvency claims. 

Available through the Group’s litigation finance arm LionFish, ISLERO is designed to answer the increasing calls of insolvency practitioners and solicitors for cheaper, faster and more flexible financing solutions than are currently available. Using the legal expertise and financial support of the Group, ISLERO will offer insolvency practitioners cheaper and more flexible pricing structures, including some interest rate-based alternatives.

 

Fast Forward Innovations 5.7p £9.2m (FFWD.L)

Notes the update from TSXV traded Globalive Technology Inc regarding FFWD’s investee company, Yooma Corp. in which it holds a 10.65% interest. Yooma has signed a binding letter of intent (the “LOI”) with Globalive to complete a reverse take-over pursuant to which Globalive will acquire all of the issued and outstanding securities of Yooma in exchange for common shares of Globalive. The Yooma Transaction remains subject to material conditions outlined below and is contemplated to complete contemporaneously with Globalive’s proposed acquisition of a CBD ingredient wholesaler, Socati Corp. ( https://socati.com/ ) . It is expected that FFWD’s former Chairman Lorne Abony will remain on the Board of the Enlarged Group following completion.

 

Arc Minerals 2.825p £27.6m (ARCM.L)

Arc’s two subsidiaries, Zamsort and Zaco, have signed a confidentiality and 6 month exclusivity agreement with a subsidiary of Anglo American in respect of its copper exploration licenses in Zambia.   

During the exclusivity period, Anglo American will be permitted to conduct a technical review which, if satisfactory, may result in an extension of the exclusivity and the negotiation of a commercial transaction.

Arc will continue with its existing drilling programme during the period of the agreement.

 

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

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