Small Cap Feast

Small Cap Feast – 14th September 2022

Dish of the Day:

No joiners today.

Off the Menu:

Meggitt Plc has left the Main Market.

What’s Cooking in the IPO Kitchen?

Fintech Asia, an investment company established to acquire businesses in the Fintech sector, primarily targeting the Asia-Pacific region, intends to join the Standard Segment of the Main Market. The Company has raised £1.455m through the placing of 3,010,000 ordinary shares of no par value, with net proceeds of £841,845. Expected 15 September.
Ikigai Ventures, an investment company established to acquire businesses that have a strong positive social impact and/or ESG strategy as part of their core business in Asia, intends to join the Standard Segment of the Main Market. Expected 15 September.
Independent Living REIT plc, intends to float on the Premium Segment of the Main Market. The Company’s investment objective is to address the shortage of high-quality supported housing, delivering capital growth and inflation-linked income returns for its investors whilst providing a fair deal for society through savings for the UK taxpayer, and improved outcomes for residents. To be raised £150m. Expected 4 October 2022.
The Sustainable Farmland Trust PLC, intends to float on the Premium Segment of the Main Market. The Company invest in a diversified portfolio of farmland and related agriculture-focused assets predominantly located in the US. £200m to be raised. Due TBC.
Aurrigo Group plc, a international provider of transport technology solutions, intends to join AIM. The Group designs, engineers, manufactures and supplies OEM products and autonomous vehicles to the automotive, aviation and transport industries. Capital to be raised £8m. Anticipated Mkt Cap £20m. Expected 15 September.
Welkin China Private Equity, newly established closed-ended investment company dedicated to investing in unquoted Chinese companies, intends to join the Premium Segment of the Main Market. The Company is targeting a raise of up to US$300m.
Georgina Energy, focusing on the exploration, development and monetisation of helium, hydrogen and hydrocarbon interests located in Australia intends to join AIM. Georgina Energy has two principal onshore interests: (1) Mount Winter Prospect in the Amadeus Basin in Northern Australia, which the Company has a right to earn an initial 75% interest; (2) Hussar Prospect, 100% owned by the Company, located in the Officer Basin in Western Australia. Expected late September.
Altona Rare Earths, the AQSE-listed mining exploration company focused on rare earth elements projects in Africa, intends to join the Main Market. The trading of its ordinary shares on the AQSE Growth Market will be cancelled simultaneously and its EPIC will be changed from AQSE:ANR to REE. Conditionally raised £1.1m. Expected late September.

Breakfast Buffet

Artisanal Spirits 74p £51.6m (ART.L)

The curators of single-cask and limited-edition whisky and owner of The Scotch Malt Whisky Society (SMWS), announces its results for the six months ended 30 June 2022. Revenue increased 25% to £9.9m (H1-21: £7.9m) with growth in UK venues, Europe and China. EBITDAE loss was £0.3m (H1 21: profit of £0.2m) following planned ongoing investment for growth. With continued growth in global SMWS membership to over 36,000, the company indicates that it remains on track to deliver a doubling of revenue from 2020 to 2024.

Epwin Group 73p £105.8m (EPWN.L)

The manufacturer of energy efficient and low maintenance building products for the Repair, Maintenance and Improvement (RMI), new build and social housing sectors, announces its unaudited results for the six months to 30 June 2022. Revenue was £178m, up 12.3% year-on-year. Underlying operating profit margin was maintained at 6% with pricing actions and surcharges. Covenant net debt reduced to £7.3m, down from £9.4m at the end of 2021. The Board is confident in achieving the 2022 result in line with its expectations.

Gateley (Holdings) 187.5p £233.5m (GTLY.L)

The legal and professional services group announces that it has paid consideration of £100k in cash, pursuant to the terms of the acquisition of Tozer Gallagher announced on 23 July 2021. As previously announced each recipient has applied 50% of the consideration to subscribe for ordinary shares of 10p each in the capital of Gateley and a total of 25,071 ordinary shares have been issued in satisfaction of this subscription. The company now has a total of 124,618,605 ordinary shares in issue with one voting right per share.

ImmuPharma 4.4p £14.8m (IMM.L)

The specialist drug discovery and development company announces that, further to the Company’s notification of 7 July 2022, its US partner for Lupuzor™ (P140), Avion Pharmaceuticals, has received a written response from the Food and Drug Administration (FDA) to the Type C meeting. The FDA response was detailed and included significant guidance on next steps for the clinical programme. This included advice on the dosing regime. The FDA also provided guidance on the study protocol that can be amended to improve the regulatory outcome. ImmuPharma is currently reviewing the written response with Avion and will make a further notification in due course.

Itaconix 5.9p £26.6m (ITX.L)

The innovator in sustainable plant-based polymers to decarbonise everyday consumer products, announces its unaudited interim results for the six months ended 30 June 2022. Revenues increased 124% year-on-year to $3.1m. Adjusted EBITDA was a loss of $0.6m (H1 21: loss of $0.7m). The company remains on course to deliver full year 2022 revenues ahead of current market expectations. Adjusted EBITDA loss for full year 2022 is expected to improve from 2021, but below previous market expectations, reflecting continued investment in growth.

ITM Power 111.3p £683m (ITM.L)

The energy storage and clean fuel group, announces final results for the year ended 30 April 2022. Revenue was £5.6m, up 30% from the previous year. The revenue from the 24MW Leuna project was not recognised in the year. Adjusted EBITDA loss widened to £39.8m (FY21: loss of £21.4m). Cash balance was £365.9m (FY21: £176.1m). The guidance for FY23 is: product revenue of £23-28m (with 48-65 MW delivered) and adjusted EBITDA loss of £45-50m. Contracts backlog as at September 2022 increased by 79% YoY to 755 MW.

Mosman Oil and Gas 0.06p £3.1m (MSMN.L)

The oil exploration, development, and production company with projects in the U.S. and Australia, announces that the Cinnabar-1 well in Tyler County, Texas is expected to commence drilling in approximately 7 days. Mosman owns a c.75% working interest in the well. Mosman Operating LLC, a 100% owned subsidiary of Mosman, is the operator of the lease.

Pharos Energy 24.4p £106.9m (PHAR.L)

The independent oil and gas exploration and production company, announces its interim results for the six months ended 30 June 2022. Revenue was $129.6m prior to hedging losses of $17.3m (H1 21: $72.9m prior to hedging losses of $13.7m). Operating profit (including impairments) was £110.2m, up 260% year-on-year. Net cash was $9.6m compared to a net debt of $4.5m in H121. The company’s working interest production guidance remains unchanged at 6,350 – 7,800 boepd ne for 2022 full year and plans to recommence dividends no later than mid-2023.

TransGlobe Energy 265p £199m (TGL.L)

The oil exploration and production company announces that the leading proxy advisor, Institutional Shareholder Services (ISS) recommends institutional investors to vote for the proposed business combination of TransGlobe and VAALCO Energy at TransGlobe’s special meeting of the shareholders. ISS’s recommendations are in line with the TransGlobe Board of Directors’ unanimous approval of the proposed business combination which creates a world-class African-focused E&P company.

XLMedia 33p £86.6m (XLM.L)

The global digital publisher, connecting advertisers with consumers, announces an expanded partnership with Advance Local to create premium betting content and a new revenue stream for their MassLive.com brand, a leading Massachusetts news and information website attracting an average of 6.5m unique visitors every month. MassLive.com represents the second Advance Local property with which XLMedia has partnered. The first one was cleveland.com and XLMedia has helped fuel cleveland.com’s growth in the sports betting segment since February 2022.

Head Chef:

Emily Liu, CFA, CAIA
0203 764 2344
emily.liu@hybridan.com

Sous Chef:

Sacha Morris
0203 764 2345
sacha.morris@hybridan.com

*A corporate client of Hybridan LLP

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