Small Cap Feast

Small Cap Feast – 17 November 2020

Dish of the Day:

No Joiners Today

 

Off the Menu:

Clearstar and Collagen Solutions have both left AIM. 

Hastings Group has left the Main Market (Premium).

 

What’s Cooking in the IPO Kitchen?

Schroders British Opportunities Trust is seeking to raise up to £250 million on the premium segment of the Official List . The Company believes that there is a once in a generation opportunity to invest equity capital into high quality, high growth UK Companies in the c. £50 million to £2 billion equity value range with sustainable business models at attractive valuations. Due  1 December.

Bytes Technology Group one of the UK’s leading software, security and cloud services specialists, announces that the Company intends to publish a Registration Document and is considering proceeding with an initial public offering (Main Mkt Prem).  FY20 gross profit of £79.2m (+24.5% against FY19) and adjusted operating profit of £31.7m (+53.9% against FY19). Highly cash generative with FY20 cash conversion of 125.9% (FY19 cash conversion 139.7%). Bytes due on or around 17 December 2020.

Mailbox REIT PLC , a newly formed single asset company which owns the Mailbox , a large prime office-led mixed use property in Birmingham which has been independently valued at £179m, announced its intention to raise up to £62.5m.  MailBox REIT  will apply for the Ordinary Shares be admitted to trading  on the IPSX Prime segment of International Property Securities Exchange (IPSX ).    Due  November.

Tirupati Graphite, the fully-integrated, cash generative, specialist graphite and graphene producer with operations in Madagascar and India, announced its potential intention to undertake an initial public offering on the LSE (standard listing). Timing tbc

Umuthi Healthcare Solutions Plc, the technology led healthcare business focused on the distribution of pharmaceuticals and the provision of medical facilities in remote areas, seeking admission to the Standard Listing segment of the Official List.  Timing tbc

Kibo Energy PLC, the multi-asset Africa focused energy Company, is seeking admission for its 100% owned UK subsidiary Sloane Developments Ltd , which will be renamed Mast Energy Developments PLC (MED), to the Standard List of the London Stock Exchange plc. The MED business strategy is to acquire and develop a portfolio of flexible small-scale power generation assets, exploiting a growth niche market in the UK for Reserve Power generation to balance out the national grid at critical times.   Targeted for Q4 2020.

 

Breakfast Buffet

AFC Energy 23.9p £162m (AFC.L)

The provider of hydrogen power generation technologies, has signed a binding Agreement with BK Gulf LLC to support the immediate scale up of manufacturing capacity for delivery of its proprietary H-PowerTM fuel cell system. BK Gulf, a wholly owned subsidiary of Middle Eastern conglomerate, Dutco Group, is one of the region’s largest specialist mechanical and electrical contractors. Existing capacity to deliver several hundred fitted out containerised modules per annum to address future customer demand with first fabricated units expected in Q1 2021. Strong procurement strength, world class fabrication facilities and capacity to grow make BK Gulf an excellent partner.

 

Bahamas Petroleum 3.475p £141m (BPC.L)

Operational Update – ‘one month out’ to Perseverance #1  Perseverance #1 is on track to spud before the end of 2020: 100% equity to BPC, drilling of this potential basin-opening well anticipated to take between 45 and 60 days, with ‘tight-hole’ procedures in place. Targeting recoverable prospective resources of 0.7 billion barrels of oil, with an upside of 1.44 billion barrels, solely for the northern portion of the B structure; in the event of success, Perseverance #1 would substantially de-risk the total B structure, which extends for between 70 and 80 kms, has a mapped areal closure of over 400 km2, and has a ‘best estimate’ aggregate recoverable resource potential in excess of 2.0 billion barrels. The Stena IceMAX, one of the most technically capable drill ships in the world, has completed all necessary vessel and equipment inspections, and is scheduled to leave dock in The Canary Islands before the end of November 2020, heading to location in preparation to drill the well.

 

Craneware 2115p £567m (CRW.L)

The specialist in Value Cycle software solutions for the US healthcare market, updated on trading ahead of its Annual General Meeting taking place at 10am today. The first four months of this fiscal year saw a return to strong sales growth, considerably ahead of the equivalent period of the prior year. Results are ahead of management expectations for this stage in the year and , Craneware expects revenues and adjusted EBITDA for the Interim period to 31 December 2020 to be ahead of the equivalent period in the prior year, building the foundation for a return to double-digit growth in the future. 

 

Intercede Group 88p £44.4m (IGP.L)

Further to the contract win that was announced on 30 July 2020 and the receipt of an initial progress order that was announced on 20 August 2020, Intercede, the leading specialist in digital identity, credential management and secure mobility, announced the receipt of a follow-on purchase order totalling $2.8m. The order includes software licenses and associated development, professional services and support & maintenance; the majority of which will be recognised in the current financial year ending 31 March 2021.

 

Blue Prism 1869p £1.7bn (PRSM.L)

The specialist in Intelligent Automation announced a strong full year performance despite COVID-19 headwinds. Full year bookings of £180m contributed to an expected 40% growth in revenues in line with consensus expectations. At 31 October 2020 the Group had around £310m in Remaining Performance Obligations (RPO)[2] demonstrating a significant year-on-year growth in the level of ongoing customer commitments. The increase in customer commitments was driven by total bookings of £180m, 60% of which was secured in the second half and £122m of which represented new business from new customers and upsells. Blue Prism Cloud saw a very strong 147% growth in bookings and now contributes around 17% of the new bookings achieved by the Group. We also saw large and more strategic commitments to Blue Prism Cloud as part of large enterprise adoption of this delivery format. Large, long-term upsell deals secured during the year underpin the strategic role of the digital workforce for customers, increasingly seen as a form of “cybershoring” – a technology alternative to off-shoring and outsourcing.

 

Tekcapital 8.5p £7.5m (TEK.L)

The UK intellectual property investment group focused on creating marketplace value from investing in university technology, announces that it has raised a total of £380,000 (US$500,000) (before expenses) by way of the issue of, in aggregate, 4,750,000 new ordinary shares of 0.4 pence each in the Company, at 8 pence per share. The funds raised will primarily be used to enable Guident and Salarius take advantage of new commercial opportunities. In addition, previous guidance for portfolio company’s (Belluscura) timing for the likely receipt of FDA clearance for the X-PLO2R in H2 remains unchanged.

 

Echo Energy 0.45p £3.63m (ECHO.L)

Update on the resumption of the Argentine value added tax  reclaim process, and the successful monetisation of an initial proportion of the Argentine VAT owed to the Company. The VAT reclaims relate to operations from the Company’s 70% non-operated working interest in the Santa Cruz Sur assets, onshore Argentina and, as confirmed in the Company’s Interim results for the period ended 30 June 2020, had previously been delayed as a result of Argentinian lock downs as a result of the COVID-19 pandemic. Currently, VAT owed to Echo subsidiaries Eco Energy TA Op Limited (TA) and Eco Energy CDL Op Limited (CDL) now totals US$ 1.4m. Disbursements of Ars$ m (approximately US$ 49,000) now received, and resumed processing of further sums by AFIP (Administración Federal de Ingresos Públicos) in Argentina,  demonstrate a re-commencement of activity in country following months of COVID-19 related shutdown, and an encouraging development despite international borders currently being still effectively closed. In addition to cash proceeds now received, and with increased AFIP collaboration, the Company has been able to monetise a further Ars$ 3.5m (approximately US$ 43,000) of VAT credits via the exchange of VAT credits in lieu of consultancy services with suppliers to the Company. The outstanding US$ 1.4m of VAT owed to the Company will, when received, will provide the Company with significantly increased flexibility with regard to its strategic plans and operational priorities.

 

Altus Strategies 60p £42m (ALS.L)

Commencement of a 10,000m Reverse Circulation  drilling programme at its 100% owned Diba gold project  located   in western Mali. Programme to test resource expansion potential as well as five further priority prospects. Diba hosts a shallow dipping near-surface gold deposit  with a Mineral Resource Estimate (MRE) comprising: 4,834,000 tonnes at 1.39 g/t Au for 217,000 ounces in the Indicated category and  5,479,000 tonnes at 1.06 g/t Au for 187,000 ounces in the Inferred category. Preliminary Economic Assessment  for an open pit gold mine to be updated. Current PEA generates a US$81M (post-tax) NPV10 at a gold price of US$1,500/oz. Diba is strategically located in a world famous gold belt that hosts numerous open pit mines.

 

Tissue Regenix 0.41p £28.8m (TRX.L)

The regenerative medical devices company, announces that it has appointed Daniel Lee as Chief Executive Officer. Danny joined the Group as President of U.S. Operations in January 2019. Danny will commence his new role and join the Board with immediate effect. Danny, who resides in the United States, has nearly 30 years’ experience in the medical device and biologics industry. Prior to joining the Group in January 2019, Danny was the Chief Executive Officer for Scaffold Biologics and Aperion Biologics. His previous senior management roles included global marketing for OsteoBiologics (acquired by Smith & Nephew Endoscopy in 1996) and marketing activities for Regeneration Technologies (now RTI Surgical), a leading allograft tissue processor. Danny spent the first ten years of his career in R&D with the U.S. Surgical Corporation (now Medtronic). Danny received his B.E.S. degree in Materials Science and Engineering from Johns Hopkins University and his M.S. in Biomedical Engineering from the University of Alabama at Birmingham. Danny will succeed Gareth Jones, who joined the Company in October 2018 as Chief Financial Officer and was subsequently appointed Interim Chief Executive Officer in August 2019.  Gareth will step down from the Board with immediate effect, and plans to remain with the Group until the end of 2020 in order to effect an orderly handover.

 

Diaceutics 139p £117m (DXRX.L)

The world’s first diagnostic network provider for Precision Medicine, DXRX – The Diagnostic Network®, has won the International Star Award as part of the European Small and Mid Cap Awards 2020. The awards are a joint initiative of the European Commission, the Federation of European Securities Exchanges and European Issuers. In June 2020, Diaceutics was recognised as ‘IPO of the Year’ at the 8th Annual Small Cap Awards, and was subsequently shortlisted for this International Star Award, alongside Proeduca Altus and Sanlorenzo, by an independent jury established by the European Commission.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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