Small Cap Feast

Small Cap Feast – 21st 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

Atlantic Lithium 43p £253.8m (ALL.L)

The African-focussed lithium exploration and development company targeting to deliver Ghana’s first lithium mine, confirms that the Company has today been admitted to the Official List of the Australian Securities Exchange (ASX). The Company’s shares will commence trading on ASX under the ticker ‘A11’ at 12:00PM AEST on Monday, 26 September 2022. Shares will continue to trade on the AIM market.

Inspiration Healthcare Group 82p £55.9m (IHC.L)

The global medical technology company announces that it has received an order worth approximately £600k for the supply of SLE ventilators and associated consumables from its Japanese distributor for delivery before the end of this financial year. The SLE ventilators are high-specification, sophisticated infant ventilators offering a range of conventional modes with additional options for non-invasive ventilation, high frequency oscillation ventilation and high flow oxygen therapy. Japan has been a successful market for SLE prior to the acquisition in 2020.

Keywords Studio £23.13 £1,787.2m (KWS.L)

The international technical and creative services provider to the global video games industry, announces that it has entered into a conditional agreement to acquire Smoking Gun Interactive Inc. Keywords will pay a maximum amount of CAD$40m, comprised of initial cash consideration of CAD$16m, the equivalent of CAD$4m in new ordinary shares to be issued within 30 days of completion, and up to CAD$20m, in a mix of cash and new ordinary shares based on milestones. Smoking Gun is expected to grow and deliver EBITDA of around CAD$6m.

Kibo Energy* 0.17 £5.2m (KIBO.L)

The renewable energy focused development company, announces that it has signed a definitive share purchase agreement to acquire a 100% interest in a waste reception, Anaerobic Digestor and CHP (combined hear ant power) project (Southport project) at Merseyside, U.K. This will be a 10MW installed CHP plant plus 2MW battery storage. Kibo will pay £600k (consisting of £250k in cash and £350k in Kibo’s ordinary shares) to acquire 100% of the issued share capital of Shankley Biogas Ltd, the project developer, constructor and operator. Shankley Biogas has negotiated a power purchase agreement and a gas purchase agreement with a blue-chip buyer. The forecasted project net present value (6%) is c. £47m and the estimated capital required is c. £35m.

LBG Media 78p £161m (LBG.L)

The UK-based multi-brand, multi-channel digital youth publisher, reports its results for the six months ended 30 June 2022. Revenue increased 8% to £24.8m (HY21: £23.0m). Adjusted EBITDA fell by 78% to £1.6m (HY21: £7.3m), and LBG moved to a statutory loss before tax of £1,9m (HY21: £5.6m profit), due to investment in staff and cancelled physical marketing events amid Covid-19 restrictions. Following the investment in people, its global audience grew by 62m people to over 315m (HY21: 253m), with 35.8bn content views in the period, up 38% on the prior year. Management believes results for the full year will be broadly in line with market expectations.

MyHealthChecked 1.8p £14.2m (MHC.L)

The consumer home-testing healthcare company, announces its unaudited results for the six months ended 30 June 2022, which exceeded management expectations. Revenue increased 197% to £9.8m (H1 2021: £3.3m) largely driven by distribution of COVID lateral flow tests to pharmacy retailers and direct to consumers following the Government’s cessation of free lateral flow testing. Adjusted EBITDA improved to £0.37m (H1 2021: loss of £0.20m), as did gross profit reporting £1.5m (H1 2021: £1.1m). In the period FlowFlex™ COVID-19 lateral flow test kits were distributed into 2 top pharmacy retailers and the new portfolio of DNA wellness test panels was developed, built and launched.

SDX Energy 9.9p £20.3m (SDX.L)

The EMEA-focused oil and gas company, announces that Michael Doyle intends to step down as Chairman and leave the Board with immediate effect. Tim Linacre, currently an independent non-executive director has been appointed Interim Chairman effective immediately. Michael will continue to act as a consultant to the Company until 31st January 2023. The Board also announce the appointment of Krzysztof Zielicki as a Non-Executive Director with immediate effect. Krzysztof has over four decades of experience in the oil and gas industry.

Surgical Innovations 1.7p £15.4m (SUN.L)

The designer, manufacturer and distributor of innovative medical technology for minimally invasive surgery, reports its unaudited results for the six-month period ended 30 June 2022. Thanks to strong sales in the UK and APAC (particularly Japan), revenues increased 28% on prior year to £5.41m and amounted to 106% of the comparable pre-pandemic period in 2019. Adjusted EBITDA was £0.29m, up 38% year-on-year. Revenue in July and August were approx. 113% year-on-year. Sales backorder are £0.7m. The company continues to trade profitably at the adjusted EBITDA level.

WANdisco 446.7p £297.1m (WAND.L)

The data activation platform announces that it has signed a contract with a value of $25m with a top ten global communications company. Following this Customer win, the Company expects record bookings for FY2022, significantly ahead of current market expectations. As a Commit-to-Consume contract, revenue will be recognised over time and has the potential to grow further as its data requirements grow. This is the fourth consecutive contract with the Customer, following the $11.6m order announced earlier this year. The cumulative contracts from this Customer total $39.3m during 2022.

Warpaint 131.5p £100.9m (W7L.L)

The specialist supplier of colour cosmetics and owner of the W7 and Technic brands, announces its unaudited results for the six months ended 30 June 2022. Group sales increased by 37% to £25.2m in H1 2022 (H1 2021: £18.4m). International revenue increased by 55% to £14.8m (H1 2021: £9.5m), while UK revenue increased by 17% to £10.4m (H1 2021: £8.9m). Statutory profit from operations grew 11.6x to £3.5m (H1 2021: £0.3m). Online sales continued to grow in both the UK and the US, with an increase of 44% in e-commerce sales compared to H1 2021. The group’s financial performance is expected to be second half weighted and management are confident performance will continue for the remainder of the year and beyond.

Head Chef:

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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