Small Cap Feast

Small Cap Feast – 15th September 2022

Dish of the Day:

Aurrigo International Group (AURR) joins AIM. The international provider of transport technology solutions has raised gross proceeds of £8m, at a price of 48 pence per Ordinary Share. Market Cap £20m.

Fintech Asia (FINA) joins the Standard Segment of the Main Market. The investment company established to acquire businesses in the Fintech sector, primarily targeting the Asia-Pacific region, has raised £1,455,000 through the placing of 3,010,000 ordinary shares of no par value at £0.50 per ordinary share.

Ikigai Ventures (IKIV) joins the Standard Segment of the Main Market. The investment company is established to acquire businesses that have a strong positive social impact and/or ESG strategy as part of their core business in Asia.

Off the Menu:

No leavers today.

What’s Cooking in the IPO Kitchen?

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.
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

4Global 64p £16.9m (4GBL.L)

The UK-based data, services and software company focused on sport and the promotion and measurement of physical activity, announces the expansion of its DataHub into mainland Europe in conjunction with EuropeActive. The launch follows a recent successful trial in collaboration with a select group of EuropeActive’s mainland Europe fitness operators. As a result, 4GLOBAL’s DataHub will now be rolled out to gather and analyse data across the European fitness sector. Data gathered from the rollout will be used to create a European version of the Social Value Calculator product (SVC) with findings presented at European Health and Fitness Forum in 2023.

Anglo Asian Mining 72p £82.3m (AAZ.L)

The copper, gold, and silver producer in Azerbaijan, announces its interim results for the six-months ended 30 June 2022 (H1 22). Total revenues decreased 27% to $31.5m (H1 21: $43.5m) and profit before taxation decreased by 4% to $5.7m (H1 21: $5.9m). Cash was $21.2m as at 30 June 2022 (31 December 2021: cash of $37.5m) and the company remains debt free. Total production fell to 28,772 Gold Equivalent Ounces (H1 21: 32,171 GEOs) due to lower gold grades at Gedabek. The guidance for FY 2022 production is between 54,000 and 58,000 gold equivalent ounces.

Big Technologies 292.5p £849m (BIG.L)

The integrated technology platform for the remote monitoring of individuals, announces its interim results for the six-month period to 30 June 2022. Revenue increased by 27% to £22.9m (H1 21: £18m) as a result of new contract wins and an increase in business from existing customers. Monthly recurring revenue was £4.3m, up by 43%. Adjusted operating profit increased by 36% to £12.1m (H1 21: £8.9m) and adjusted EBITDA margins went up to 60.1% from 56.7% in H1 2021, thanks to increased scale and favourable currency movements. The Board expects the Group to deliver a full-year revenue of at least £48m with an adjusted EBITDA margin of in excess of 58%, ahead of current market expectations.

Checkit 20p £21.6m (CKTL)

The real-time operation management software company announces its unaudited results for the six months ended 31 July 2022 (H1 FY23). Annual recurring revenue (ARR) increased year on year by 48% to £10.2m (H1 FY22: £6.9m), reflecting upsell and customer wins. H1 recurring revenue increased by 44% to £4.4m (H1 FY22: £3.1m), representing 82% of total revenue (H1 FY22: 39%). Total revenue from continuing operations declined by 31% to £5.4m (H1 FY22: £7.9m), as a result of the previously announced discontinuance of one-off BEMS projects with minimal software input. Losses from continuing operations increased by £2m to £4.6m (H1 FY22: £2.6m) reflecting the planned winding down of the BEMS business and increased investment in the growth of the subscription business. Results are in line with Board expectations and the Board expects operating losses for FY23 to be lower than expectations set at the beginning of the year.

Croma Security Solutions 70p £10.4m (CSSG.L)

The total security services provider announces 4 new contract wins worth approx. £6.1m in annual revenue (equivalent to 17% of firm-wide sales). These contracts are: (1) two 3-year contract with a London property manager, one worth £5m p.a. for manned guarding services and the other worth £0.5m p.a. for PROception; (2) a contract with a large retail space in the North East of England worth £0.4m p.a.; (3) a contract for the iLOQ product and worth £0.3m p.a. The Group expects to announce annual results to 30 June 2022 in late October and deliver EBITDA of at least £1.5m.

Diversified Energy 131.7p £1,120.7m (DEC.L)

The independent energy company engaged in the production, marketing and transportation of primarily natural gas related to its synergistic US onshore upstream and midstream assets, announces that ESG Investing awarded Diversified Energy the Best Sustainability Reporting Award within the Basic Materials category as part of its 2022 ESG Investing Awards.

MyCelx Technologies Corp 42.5p £9.8m (MYX.L)

The clean water and clean air technology company provides a trading update. It is under contract negotiations with a major oil producer based in the Middle East and if successful, this would see the Company announce its second EOR installation deploying the patented MYCELX REGEN product. The revenue for this potential project is unlikely to be recognised in 2022 and, therefore, will be deferred to 2023. However, the Company’s other sales opportunities in the pipeline could materialize before year end. The Company has revised its guidance and now expects 10% year-on-year revenue growth for FY2022 and anticipated profitability will be adversely affected.

Oracle Power 0.245p £7.5m (ORCP.L)

The natural resources project developer announces that further to the announcement of 1 September 2022, its joint venture company, Oracle Energy Limited, has been issued a Letter of Intent (LOI) from the Directorate of Alternative Energy of the Government of Sindh, relating to the establishment of a 1,200MW hybrid solar/wind, green hydrogen/power project in Pakistan. The issuance of the LOI follows the Directorate of Alternative Energy’s confirmation of receipt of a $600k bank guarantee from Habib Metropolitan Bank, Karachi valid for 12 months, on behalf of Oracle Energy. The LOI sets out that the project developer can produce green hydrogen from a 400MW capacity electrolyser facility and renewable power for business-to-business usage, for possible sale to utilities and for other uses. In accordance with the LOI, Oracle Energy is required to complete certain milestones in the next 18 months.

Petards Group* 9.25p £5.2m (PEG.L)

The developer of advanced security and surveillance systems reports its interim results for the six months ended 30 June 2022 today. Revenue was £5.5m, down 29% (H1 2021: £7.7m) and adjusted EBITDA totalled £606k, down 35% (H1 2021: £929k), reflecting challenging conditions within the UK rail market. Gross margin improved to 49.3% (H1 2021: 39.6%) due to the re-alignment of eyeTrain’s cost base and the growth in revenue of higher margin spares, repairs, and engineering services back to pre-COVID levels. During the period, the net cashflows from operating activities was £1.1m. Net funds at 30 June 2022, after deducting term loan and lease liabilities, grew to £2.5m from £1.5m at 31 December 2021. With its existing cash resources and two years remaining on its undrawn £2.5m 3-year overdraft facility, Petards has sufficient capacity to fund organic growth and its working capital requirements.

Reabold Resources 0.355p £31.7m (RBD.L)

The investing company with a portfolio of upstream oil and gas projects, announce that further to its announcements of 4 May 2022 and 14 September 2022, it has completed the acquisition of Corallian Energy Limited’s working interest in all the non-Victory (P2596) licences within the Corallian portfolio, i.e., P2396, P2464, P2493, P2504 and P2605 (all at 100% working interest) and P2478 (36% working interest).

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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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