Small Cap Feast

Small Cap Feast – 20th September 2022

Dish of the Day:

No joiners today.

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. Raising £150m. Expected 4 October 2022.
The Sustainable Farmland Trust PLC, intends to float on the Premium Segment of the Main Market. The Company invests in a diversified portfolio of farmland and related agriculture-focused assets predominantly located in the US. Raising £200m. Timing 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

Belluscura 65.5p £80.6m (BELL.L)

The medical device company focused on oxygen enrichment technology, announces its unaudited results for the six months ended 30 June 2022. Revenue was $0.6m, up by 34% over 2H21 (with the first product launched in September). Operating loss was $4.6m (2H21: $5.2m in loss). Net cash was $11.3m at 30 June 2022. With manufacturing in-house and launched the direct to consumer program this year to date, the company believes it is well-placed to capture the Portable Oxygen Concentrator Market.

Craneware £19.05 £677.1m (CRW.L)

The Value Cycle software solutions for the US healthcare market, announces its audited results for the year ended 30 June 2022. Revenue increased 119% to $165.5m (FY21: $75.6m) and adjusted EBITDA increased 91% to $51.8m (FY21: $27.1m). Sentry and Agilum businesses were acquired and integrated during the year and the synergies realised have delivered combined target +30% Adjusted EBITDA margin ahead of schedule. The company anticipates accelerated levels of sales moving forward and next phase of growth.

CT Automotive 125p £63.7m (CTA.L)

The designer, developer and supplier of interior components to the global automotive industry, announces its results for the half year ended 30 June 2022. Revenue was $57.2m, down 23% year-on-year due to semiconductor shortages. Adjusted EBIT loss was $7.3m (1H 21: $3.2m in EBIT profit). The company expects a strong recovery in 2H according to the latest customer schedule. The semiconductor shortage is no longer the key restricting factor and the company’s new plant in Mexico is on track to supply customers in Q3. There is no change to the Board’s expectations for FY22.

Katoro Gold 0.33p £1.5m (KAT.L)

The strategic and precious minerals exploration and development company, announces that it has entered into a binding conditional agreement with Trans Namibian Mining and Minerals (TNMM) to form a 50/50 unincorporated joint venture and to undertake exploration/development activities on TNMM’s iron ore project in Namibia. This agreement provides Katoro with a pre-emptive right to acquire up to 60% of TNMM’s total issued share capital and the same percentage of all claims on the shareholder loan account against TNMM should the shareholders of TNMM decide to sell their interest in TNMM.

KRM22 56p £20m (KRM.L)

The technology and software company focused on risk management in capital markets, announces its unaudited interim results for the six months ended 30 June 2022. Total revenue was £1.9m, down 12% year-on-year. Operating loss was £1.0m (1H 21: loss of £1.6m), primarily due to a 26% reduction in administrative expenses. Gross cash balance was £3.6m, down 34% (1H 21: £5.3m). As at 30 June 2022, KRM22 had a contracted ARR, defined as annualised recurring revenue, of £4.1m. Management has set the goal to achieve £10.0m in ARR and positive EBIDTA.

Northcoders Group 360p £25m (CODE.L)

The independent provider of training programmes for software coding, announces its results for the six months ended 30 June 2022. Revenue increased 117% to £2.37m in 1H22 (1H21: £1.09m), with strong demand for bootcamp training. Underlying adjusted EBITDA was up 62% to £0.42m (1H21: £0.26m). As of 16 September 2022, contracted bookings stand at £5.50m for 2022 and £2.50m for 2023, driven by the continuing government support for technology training and the attractiveness of the career path in engineering.

Springfield Properties 115p £136.2m (SPR.L)

The housebuilder in Scotland delivering private, affordable and PRS housing, announces its final results for the year ended 31 May 2022. Revenue was £257.1m, up 19%, and operating profit was £21.5m, up 13%. Net debt increased 83% to £38.05m (31 May 2021: £20.8m). The Group expects to deliver significant growth for the year to 31 May 2023, with record revenue driven by the contribution from private housing. Homes already delivered, missived and reserved representing approximately 75-80% of 2023 private housing revenue forecasts.

SThree 365p £488.3m (STEM.L)

The global pure-play specialist staffing business focused on Science, Technology, Engineering and Mathematics (STEM) skills, issues a trading update covering the period 1 June 2022 to 31 August 2022. Net fees for the quarter up 19% and contractor order book was up 24% year-on-year, underpinned by the company’s strategic focus on flexible talent. The Board now expects that profit before tax for the 12 months to 30 November 2022 will be at least 7% ahead of market consensus.

Thor Mining 0.63p £12.6m (THR.L)

The resources development company announce that anomalous nickel assays results from RC drilling have been returned and that an off-hole conductive anomaly has been identified from a subsequent down-hole electromagnetic (DHEM) geophysics survey at the Krona Prospect, within its 100% owned Ragged Range Project in the Eastern Pilbara of Western Australia. This result is consistent with sulphides and warrants drill testing to validate.

Trinity Exploration & Production 112p £44.7m (TRIN.L)

The independent E&P company focused on Trinidad and Tobago, announces that it intends to conduct on-market purchases under a share buyback programme pursuant to the shareholder authorities obtained at its annual general meeting held on 29 June 2022 to return up to US$1m to shareholders. Under the programme, up to 3.9m ordinary shares (which represents approximately 10% of the issued share capital) can be purchased. The programme will be funded from the Company’s existing cash resources. It will commence with immediate effect and will, unless terminated at an earlier date, expire at the conclusion of the 2023 AGM, or 30 June 2023, whichever is earlier.

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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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