Small Cap Feast

Small Cap Feast – 18 November 2020

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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

InnovaDerma 61.5p £8.9m (IDP.L)

The developer of beauty, personal care and life science products, announced that Blake Hughes has been appointed Chief Executive Officer  of the Group with immediate effect.  He will be based in the UK.

Blake has spent his career in the beauty and personal care sectors and brings with him extensive marketing and digital analytics experience.  Most recently, he held the roles of CEO and Chief Marketing Officer of Philip Kingsley, the award-winning premium hair care range.   During his tenure at Philip Kingsley, he defined its brand strategy, transformed its eCommerce platform, created a structured product innovation pipeline and step changed international distribution.

Prior to joining Philip Kingsley, Blake was Managing Director, Europe and Africa, of Murad, the prestigious skin care brand.  He successfully transformed the business model of this former UK distribution only joint venture into a profitable regional headquarter that managed the distribution of Murad into Europe, Middle East and Africa.

Blake has also worked in a variety of brand and marketing roles for blue chip companies including Procter & Gamble, Elizabeth Arden and Marks & Spencer.  He holds a Masters in Chemistry from Oxford University.

 

IronRidge Resources 15.2p £62.6m (IRR.L)

IronRidge has been granted four-year license renewals with corresponding area reductions by the Ministry of Petroleum and Mines for the Dorothe, Echbara and Am Ouchar licenses, now covering 446.25km2 within an overall 746.25km2 portfolio of highly prospective gold tenure, including the drill-ready Dorothe Gold Project, approximately 180km south-east of Abeché in Eastern Chad, Central Africa.

Portfolio interpreted to represent an unexplored Intrusion Related Gold (“IRG”) system; potential analogue of the Tintina Gold Belt in Alaska-Yukon with notable deposits including Donlin Creek (Barrick / Novagold, >45Moz), Fork Knox (Kinross, ~10Moz), Pogo (NST, ~10Moz) and Dublin Gulch (Victoria Gold Corp., >3Moz).

Ø Dorothe target covers a 3km x 1km zone of artisanal workings with previously reported trenching highlights at 0.2g/t cut-off and 2m of dilution and 0.4g/t cut-off and 4m of dilution.

In-country exploration office to be re-established in N’Djamena now that COVID-19 travel restrictions have been eased and planning is currently underway to resume field activities in the new year.

 

Begbies Traynor Group 90p £115.1m (BEG.L)

The business recovery, financial advisory and property services consultancy, announces an update on trading for the six months ended 31 October 2020.

Strong financial performance in the six months. Group revenue in the period grew by c.10%, with adjusted profit before tax growing by c.25%, having absorbed the downside impact of lockdown in the first few months of the financial year. The group has maintained its strong financial position with net cash at 31 October 2020 of £0.7m (30 April 2020: net debt of £2.8m, 31 October 2019: net debt of £2.3m) and significant levels of headroom within our committed bank facilities. Overall, the board expects results for the full year to be at least in line with current market consensus, which would represent a further year of growth.   Market consensus for adjusted PBT of £9.8m (as compiled by the group).

 

Wynnstay Group 347.5p £70m (WYN.L)

The agricultural supplies group updated on trading for the financial year ended 31 October 2020.

As an essential supplier to the farming community, the Group has continued to maintain its operations across all its activities during the recent ‘fire-break’ lockdown in Wales and since the introduction of new coronavirus-related restrictions in England, which took effect on 5 November 2020.

Overall trading since June, when the Group reported interim results, has been stronger than anticipated, especially in September and October. This is across both the Agriculture and Specialist Agricultural Merchanting Divisions. As a result, the Board now expects that underlying Group pre-tax profit  for FY 2020 will be significantly ahead of current market forecasts.

Board and organisational changes: The new organisational structure will not include the Board position of Agricultural Director. Andrew Evans will therefore step down from the Board with effect from 1 December 2020. However, he remains a key member of the senior management team and will take up his new role of Group Operations and Feed Director and lead the reorganisation at senior executive level.

 

Great Western Mining 0.215p £5.42m (GWMO.L)

Great Western Mining Corporation PLC, which is exploring and developing multiple early-stage gold, silver and copper targets in Nevada, announced the successful completion of a placing to raise gross proceeds of £1.1m at a price of 0.20 pence each.   Use of funds will include: 

  • Mineral Jackpot spoil heap recovery: Commercial development programme planning
  • Olympic Gold Project: Drilling at the Trafalgar Hills Prospect and IP survey over the OMCO Mine extension
  • Rock House Group: Drilling at the Southern Alteration Zone prospect
  • Mineral Jackpot:  Drilling at the Bass Mine prospect
  • Further evaluation of a short-list of new opportunities for gold and silver in Nevada

 

Europa Metals 11.5p £5.65m (EUZ.L)

The European focused lead-zinc and silver developer, is pleased to announce results from an independent Preliminary Economic Study in respect of its wholly owned Toral lead, zinc and silver project, located in the region of Castilla y León, north-west Spain.

US$156m NPV and 31.3% IRR with a 49% Operating Margin Demonstrated from Independent Preliminary Economic Study Toral Pb, Zn & Ag Project, Spain

  • Conceptual Life Of Mine production schedule incorporates 100% of the existing Indicated resource in the early years, ending with elevated zinc grades in the deep Inferred zones
  • Deposit open to the east and at depth for potential production expansion during the mine’s life
  • Project’s 3-year Investigation Permit renewed until 15 November 2023 (as announced previously on 12 November 2020)

 

Spectra Systems 188p £84.1m (SPSY.L)

Spectra Systems Corporation, a leader in machine-readable high speed banknote authentication, brand protection technologies, and gaming security software, is pleased to  report that it has significantly strengthened  its patent position through the issuance of a patent for its TruBrandTM technology in China.  This technology is the only materials-based smartphone authentication technology of its kind and is being aggressively promoted for use with tobacco products in China, having achieved early stage annual sales volumes of 12,000,000 packs for the calendar year of 2020.  The patent protection will be for twenty years from the filing date of July, 2016.

 

Cerillion 330p £97.39m (CER.L)

The billing, charging and customer relationship management software solutions provider, is pleased to announce a new three year managed services contract with Scarlet, a triple-play communications services provider (CSP) in Belgium, part of the Proximus Group. The Cerillion Managed Service will augment Scarlet’s in-house team and processes to provide a comprehensive set of operational services, running and maintaining the Cerillion Enterprise BSS/OSS suite .

 

W Resources 0.1175p £8.4m (WRES.L)

The tungsten, tin and gold mining company with assets in Spain and Portugal, announced that Pablo Neira, Non Executive Director has been appointed Executive Director with a specific focus on overseeing the La Parrilla tungsten and tin project in Spain. 

Pablo, who was appointed Non Executive Director in September 2018, is based in Spain and now leads the team at La Parrilla in Spain, as Managing Director. He has more than 32 years of industrial manufacturing experience, half of them in public listed companies.

In addition, as part of the strengthening of the W Resources management team, Paul Hailes has been appointed Chief Financial Officer, a non board appointment, working on a part time basis. Paul brings extensive capital markets, financial and commercial experience to the team, having previously held the role of Group Finance Director of AIM quoted Immunodiagnostic Systems plc and Non-Executive Director at Utilitywise plc.

 

Mosman Oil and Gas 0.1725p £4.3m (MSMN.L)

The oil exploration, development, and production company, announces successful testing at the Falcon-1 well at the Champion Project in East Texas. The well was perforated in the Frio sandstone at a depth of 7,613-7,618 feet and flow tested as required by the relevant authority and to obtain information for reservoir analysis and production purposes. Oil and gas were produced at rates up to 80 bopd and 2.78 mmcfd (c463 boepd) equating to a combined total of c543 boepd. The well is now shut in to obtain more pressure data.

Once flow testing is completed and data analysed, the next step is to tie the well into a nearby separator and existing pipelines which is expected to take a few weeks. Following this production will commence and gas and condensate will be sold. The production rate will be determined after analysis of the flow testing data.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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