Small Cap Feast

Small Cap Feast – 19th January 2022

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What’s Cooking in the IPO Kitchen?

Spinnaker Acquisitions plc, intends to join the Main Market (Standard). The Company have conditionally agreed to acquire the entire issued share capital of HomeServe Labs Ltd, a wholly owned subsidiary of FTSE250 quoted public company HomeServe Plc, by way of a reverse takeover conditional, inter alia on relisting and successful completion of fundraising activities to be undertaken by way of a placing and direct subscriptions by new and existing investor. If the Proposed Transaction proceeds to completion, it is proposed to change the name of the Company to Ondo InsurTech Plc and the name of Labs, which will become a subsidiary of the Company, to LeakBot Ltd. Should the Proposed Transaction not proceed, then the Company would need to apply for the suspension of its listing of ordinary shares to be lifted and for trading to be restored. £5m capital to be raised. Due early 2022.
Unbound Group PLC, (currently called Electra Private Equity PLC) to join AIM. Unbound Group, will be the parent company for a range of brands focused on the 55 plus demographic. Initially focused on Hotter Shoes, Unbound’s curated, multi-brand retail platform will offer additional products and services that will enhance the enjoyment and wellbeing of its targeted customer community. This online platform will be based on the foundations of Hotter Shoes as a trusted brand, cloud-based digital infrastructure, and strong customer personalisation through data insight. No capital being raised on Admission. Anticipated Mkt Cap c.£30m. Due 31st Jan.
Clean Power Hydrogen, the UK-based green hydrogen technology and manufacturing company that has developed the IP-protected Membrane-Free Electrolyser is seeking to join AIM. The Group designs and manufactures hydrogen production units and is focused on the commercial production of green hydrogen in a simple, safe, and sustainable manner. The Group intends to raise approximately £50m. Timing TBC.
SuperSeed Capital Limited, to join the AQSE Growth Market. The Company will invest in technology-led innovation primarily through unquoted funds managed by SuperSeed Ventures, the Company’s Investment Manager, with the objective of maximising the investors’ long term total returns – principally through capital appreciation. Mkt Cap and Capital to be raised TBC.
Carbon Air, a nano-technology company which leverages the adsorption properties of activated carbon and other advanced materials to improve suspension systems, enhance acoustics or reduce noise, to join AIM. The Company’s proprietary technology has allowed it to develop a unique portfolio of solutions for a variety of sizeable end markets, including vehicle suspension systems, acoustic insulation for domestic appliances and micro-speakers for smartphones. Mkt Cap and Capital to be raised TBC. Due Late Jan.
i(x) Net Zero, the investing company which focusses on Energy Transition and Sustainability in the Built Environment, announces its intention to join AIM and raise money to provide development and expansion capital to certain of its investee companies, for future investments in companies that fall primarily within its areas of interest in Energy Transition and Sustainability in the Built Environment and to provide working capital for the Group. Capital to be raised £20m. Expected admission late Jan.
Spiritus Mundi due to join the Main Market (Standard), a special purpose acquisition vehicle which will seek acquisition targets in Europe and Asia in the clinical diagnostics sector. The Company has already raised approximately £1.2m in a pre-IPO fundraising round. Due late Jan 2022.
Recycling Tech Group to join AIM, a UK-based engineering, research and manufacturing company that has developed a modular and mass producible machine, the RT7000, which processes hard to recycle plastic waste into a synthetic oil that can be sold back to the petrochemicals industry as a chemical feedstock to make new plastics. Targeting a £40m raise. Due early Q1 2022.
Nu-Oil and Gas to acquire Guardian Maritime Ltd and Guardian Barriers IP Ltd and become Guardian Global Security plc and join the Main Market (Standard). Guardian is a technology group that supplies products to prevent unauthorised entry into areas that are deemed to have value, with maritime security being the main focus initially. Due 24th Jan 2022.
Superdielectrics to join AIM, a Company which is focused on developing technology to build supercapacitors with high energy density, low cost, and environmentally benign electrical energy storage devices that will help create a clean and sustainable global energy and transportation system. Admission is expected to take place in Late Jan 2022. Mkt Cap and Capital to be raised TBC.

Breakfast Buffet

Advance Energy 0.875p £9m (ADV.L)

The energy company seeking growth through acquisition or farm-in to non-operated interests in discovered upstream projects, provides the following update on the Buffalo-10 well. The Operator, Carnarvon Petroleum Timor, Lda., has advised that, since the last announcement on 14 January 2022, the 9 5/8″ casing has been successfully cemented in place and drilling has reached total depth of around 3,415 metres Measured Depth (MD) in the 8 ½” hole section. Observations from Logging While Drilling (LWD) tools have identified that the primary reservoir has been intersected, with indications of hydrocarbons as anticipated in the Elang. The top Elang reservoir was intersected at a depth of around 3,338 metres MD, which was approximately 80 metres low to prognosis and outside the pre-drill range of expectations. The interpretation from the LWD tools and drilling information is that an approximate 12 metre gross oil column was encountered. Wireline logging results will be used to determine the reservoir properties (porosity, net to gross) and to confirm a net oil column. The information to date indicates that the seismic processing techniques employed on this project have not resolved the underlying seismic velocities or imaging resolution issues that are present in this field. The Buffalo-10 well is being drilled offshore Timor-Leste in the TL-SO-T 19-14 PSC in which Advance Energy holds a 50% interest.

Appreciate Group 26p £48.5m (APP.L)

The UK’s leading multi-retailer redemption product provider to corporate and consumer markets, today provides an update on its key Q3 trading period for the three months ended 31 December 2021 of the current financial year 2022. Due to the irregular impact of lockdowns in FY21, FY20 was used as the primary comparison, the financial period prior to the pandemic, as well as providing FY21 data. Underlying Q3 billings of £96.1m were 13% ahead of Q3 FY20 (£85.1m) and broadly similar to Q3 FY21 (£96.8m). A strong December performance with billings of £45.6m, up 41% versus same month in FY20 (£32.4m). Compared to a record month in December FY21 billings were down 2%. Further growth in digital billings with a 13% year on year rise to £27.2m (Q3 FY20: £5.9m; Q3 FY21: £24.1m). Total year-to-date billings up to 31 December 2021 were 8% up on FY20, and 10% ahead of FY21. Q3 was the best-ever quarter for the Corporate business with billings of £77.6m (Q3 FY20: £68.3m; Q3 FY21: £77.3m). Q3 billings via Highstreetvouchers.com were £18.4m, up 9.5% from £16.8m in Q3 FY20, and down 5.4% from £19.5m in Q3 FY21 (which benefited from increased customer demand during tighter lockdown restrictions). Free cash as at 31 December 2021 stood at £36.0m (31 December 2019: £19.1m; 31 December 2020: £33.5m)

Boku 164.5p £479.4m (BOKU.L)

Boku, a leading global mobile payment and mobile identity company, provided an unaudited trading update for the financial year ended 31 December 2021. The Group grew the volume processed through its mobile first payments network of Direct Carrier Billing, eWallets and Real Time Payments by 18% in 2021 to exceed $8.2bn. Volumes generated from the newer payment methods – eWallets and Real Time Payments – increased five-fold. The Identity division, which, as announced earlier today, is being divested, also continued its improving performance. These improved operating metrics led to an expected 22% increase in Group revenues and an expected 31% increase in Group Adjusted EBITDA, as Boku invested to build out the M1ST payment network.

CPP Group 330p £29.1m (CPP.L)

The provider of assistance and insurance products, which reduce disruptions to everyday life for millions of customers across the world, confirms that it expects to report financial results for the year ended 31 December 2021 broadly in line with market expectations. On a reported basis, the Board expects full year 2021 revenues from continuing operations to be +5% ahead of the prior year, and, on a constant currency basis, to be ahead of prior year by circa 11%. EBITDA from continuing operations is expected to increase by £1.7m to £7.5m for the same period, aided by a one-time benefit from the release of a third-party commission provision amounting to £1.1m relating to the legacy card and identity products. The fact that CPP has been able to make solid progress, despite the continued headwinds brought about by Covid-19 and a sustained strengthening of Sterling, reflects the continued growth of the Indian business as well as measures to take cost out of central overheads. For the financial year ending 31 December 2022, the Board expects revenues from continuing operations to show further growth and be broadly in line with market expectations. However, the current product mix in India coupled with the unfavourable economic and currency situation in Turkey is expected to limit both margin and EBITDA growth in the next twelve months. Furthermore, the benefits hitherto anticipated from the migration to a new Group IT platform will be less than originally anticipated in 2022. This, combined with additional costs associated with managing the UK renewal book, have resulted in a lowering of expectations for 2022. The Board now expects EBITDA from continuing operations for the financial year 2022 to be broadly in line with 2021.

Distil 1.7p £11.3m (DIS.L)

Gourock commercial property specialists, Bowman Rebecchi and Rebecchi Architectural, have been formally appointed by Ardgowan Distillery to develop the new Blackwoods custom gin plant at its distillery site in Inverkip, Scotland. Distil announced an investment of up to £5m into the Ardgowan Distillery in July 2021, to include the development of a gin distillery on site, built in advance of the whisky distillery which is due to begin production in 2023. It was announced on 17 January 2022 that £3m of this investment had been advanced. The new gin facility and visitor centre will be developed by renovating existing buildings on the site at Bankfoot, near Inverkip, 30 miles west of Glasgow, with Rebecchi Architectural appointed to spearhead the refurbishment. The site will include production facilities and a visitor centre, and as such will create a physical home for Distil’s Blackwoods Gin, with the first production to come on stream later this year. The facility will create at least four long-term jobs in the local area.

Dillistone Group 23.5p £4.6m (DSG.L)

Ikiru People, the recruitment software subsidiary of Dillistone Group Plc, announced a major contract extension with one of the UK’s largest and best known recruitment organisations. The contract is for a five-year period and is with one of the top ten recruiters in the UK by revenue. Jason Starr, CEO of Dillistone Group Plc, commented: “Five-year contracts are almost unheard of in our sector. This significant commitment from one of the UK’s best known recruiters is a huge vote of confidence in our product, our team and our business, and we are delighted to be able to announce it. It is a great start for our ambitions for 2022.”

In The Style Group 91p £47.8m (ITS.L)

In The Style announces that CFO & COO Paul Masters has informed the Board of his need to step down from the Group in March 2022 to focus on his health. Paul joined In The Style in 2017 and during his tenure as CFO & COO has played an integral role in driving the Company’s growth, including leading the business through its successful IPO in March 2020. After a thorough search process, the Board is pleased to announce that Richard Monaghan will succeed Paul in the role of CFO. Richard will join In The Style in mid-March 2022, and will work with Paul to ensure a smooth transition. The operational aspects of Paul’s combined role will come under the responsibility of Sam Perkins, CEO, who has significant experience in these areas. Richard is an ICAEW qualified Chartered Accountant and is currently Director of Finance at Victorian Plumbing, where he played a pivotal role in the Company’s recent IPO. He was previously Deputy CFO and Group Financial Controller at Autotrader where he supported the business through its 2015 IPO. Richard, aged 33, does not hold any other directorships and holds no ordinary shares in the Company. Jim Sharp, Non-Executive Chairman , commented: “On behalf of the Board and everyone at In The Style I would like to thank Paul for his outstanding commitment and significant contributions to the Group’s success over recent years, which has been a truly transformational period for the Group. We wish him the very best for the future and are fully supportive of the difficult decision he has had to make at this time.”

PCI-PAL 65.5p £42.8m (PCIP.L)

The global cloud provider of secure payment solutions for business communications, announces a trading update for the six months to 31 December 2021. All of the Group’s key metrics are either at or ahead of management expectations, and as a result, the Group anticipates that revenue and losses before tax will now be better than the current market expectations for the full year. In the first six months, revenue has increased 72% year-on-year to £5.4m, reflecting the strength of PCI Pal’s channel-focused, subscription-based revenue model. The Group has also grown its key indicator of future recurring revenues, Total Annual Contract Value, by 37% to £11.4m (2020: £8.3m). Driving this increase is the new business ACV2signed in the period of £1.8m (2020: £1.7m). Adding to this revenue growth is the Company’s performance against the key SaaS metrics associated with its Customer Success function. PCI Pal is pleased to report that its positive Net Revenue Retention, for its AWS platform, has increased to 120% (30 June 2021: 111%), which has included a number of expansion sales to several enterprise-sized customers. Additionally, customer Churn on the platform has further improved to just 3.4% (30 June 2021: 6.7%). The strong trading performance has enabled the Group to maintain cash balances at £5.5m (30 June 2021: £7.5m). Proceedings in relation to the alleged patent infringement being made against the Company are ongoing and the Company is continuing to work towards an outcome that it believes will best benefit the business.

The Mission Group 66p £59.9m (TMG.L)

The Mission Group plc, creator of Work That Counts comprising a network of 16 Agencies delivering real, sustainable growth for its Clients, today issues a trading update for the year ended 31 December 2021. MISSION continued to deliver an impressive and strong sequential trading recovery throughout the second half of the financial year. As a direct consequence, the Group was pleased to achieve an increase in profit levels against both H1 2021 and FY2020 and so expects a healthy full year headline PBT performance that is in line with market expectations. Whilst trading conditions throughout 2021 remained challenging, due to the impact and disruption caused by the evolving pandemic on the Group’s markets, the resilience of MISSION’S business model has underpinned its continued ability to deliver against this backdrop. Further strategic progress has been made over the course of the year to expand MISSION’S Agency portfolio with the acquisition of Soul, a full-service customer engagement Agency that works with psychologists to help businesses better understand human nature and human behaviour, enhancing MISSION’s creative and customer experience capability. The Group has also benefitted from a full year of the now fully embedded behavioural science practice, Innovation Bubble, acquired in 2020. MISSION expects to continue to grow its roster of Agencies in 2022, alongside investing in building additional and enhanced capability to further support its Clients.

Tertiary Minerals 0.185p £2.2m (TYM.L)

The explorer focussed on energy transition and precious metals in Nevada and Zambia has raised £500k before expenses at a price of 0.17 pence. Additionally, the Company is making a further 58,823,529 new ordinary shares (Broker Option Shares) available in order to provide qualified Tertiary shareholders and other qualified investors with an opportunity to participate in this fundraising. Investors will receive one warrant for every two Placing Shares or Broker Option Shares. The Warrants will be exercisable at 0.34 pence and have a term of 18 months. The net funds raised will be applied to drilling and direct exploration activities at the Company’s projects in Nevada and Zambia scheduled throughout 2022, including diamond and reverse circulation drilling, trenching, soil sampling survey and geophysics.

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