Small Cap Feast

Small Cap Feast – 22nd September

Dish of the Day:

No joiners today

Off the Menu:

No leavers today

What’s Cooking in the IPO Kitchen?

Streaks Gaming plc, a UK-based provider of conversational gaming products intends to join the Standard Segment of the Main Market this autumn. The flotation is expected to value Streaks at approximately £10.2m (pre-money) and will make it the first LSE-listed “pure-play” conversational gaming company. Raising between £5-10m.
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

Aquis Exchange 375p £103.2m (AQX.L)

The exchange services group announces its unaudited results for the six months ended 30 June 2022. Net Revenue increased 21% to £8.3m (1H21: £6.9m). The growth has largely been driven by increased contributions from the principal business divisions: pan-European secondary trading, technology sales, primary issuers and data revenues. EBITDA decreased 13% to £1.4m (1H21: £1.6m) following an investment in technology and development headcount. Pre-tax profit was £0.7m (1H21: £1.m). Membership of Aquis Exchange (AQX) grew to 42 (1H21: 39), despite a small decline in average monthly usage due to more volatile market conditions.

Brave Bison Group 2.05p £22.2m (BBSN.L)

The social and digital media company, announces its unaudited interim results for the six months ended 30 June 2022. Revenue increased 102% to £14.7m (H1 2021: £7.3m) and adjusted operating profit grew 221% to £1.3m (H1 2021: £0.4m). BBSN reported its highest half year profit before tax of £1.0m (1H21: £0.2m). In this period BBSN launched the new Brave Bison trade brand and acquired ‘Best Response Media’. The Board is comfortable that it will meet or exceed its expectations for the current financial year. Furthermore, the Board expects further growth in the next financial year as brand advertisers continue to migrate towards a differentiated customer proposition.

Good Energy Group 252.5p £42.6m (GOOD.L)

The renewable electricity company’s investee Zap-Map (a UK chargepoint mapping service) and the automotive manufacturer Nissan announce a partnership in which purchasers of Nissan’s electric vehicles (EV) will be provided with a Zap-Map Premium subscription that includes in-car support via Apple CarPlay or Android Auto. The subscription partnership offer applies to private and business orders for new Nissan EV passenger cars. Since 2014, Zap-Map has established a comprehensive map and dataset of electric vehicle charging points in the UK, including live status information for over 70% of charge points.

Jade Road Investments* 3.75p £4.3m (JADE.L)

The pan-Asian diversified investment vehicle reports its 1H22 results ended 30 June 2022. Total income increased 25% to $1.56m ((H1 21: $1.24m). Net profit was US$1.0m during the period (1H21: US$271k in net loss). As of 30 June 2022, the cash position was US$0.44m and loan and borrowings totalled US$3.8m. Net asset value (NAV) increased by 1.5% from 31 Dec 2021 to US$69m, translating to NAV of US$0.59 or £0.49 per share on 30 June 2022. Jade Road is continuing to pivot away from China and pursue opportunities in IT, fintech, healthcare and online commerce sectors in Southeast Asia.

Learning Technologies Group 127.1p £1,002.4m (LTG.L)

The digital learning and talent management group, announce its results for the six months ended 30 June 2022. Revenue grew 241% to £281.8m (H1 2021: £82.6m), largely supported by the acquisition of GP Strategies which contributed £184.9m and the FX tailwinds of a stronger US dollar. SaaS and long-term contract revenues decreased to 71% (H1 2021: 77%), reflecting a change in the portfolio mix since the acquisition of GP Strategies. Adjusted EBIT doubled over the prior year to £44.1m (H1 2021: £22.m). The company expects to deliver ahead of analysts’ consensus for FY22.

PCI-Pal 57.5p £37.6m (PCIP.L)

The global cloud provider of secure payment solutions for business communications, announces the launch of its Pay By Bank open banking solution for contact centres. It is the first in a series of new agent-assisted, digital payment products that enable merchants to minimise the cost of transactions and provide instant refunds – all while reducing fraud risk and chargeback costs. The first iteration of the service gives consumers the option to pay from any bank in the UK, with further global regions to be launched shortly. Pay by Bank uses bank-grade security from its technology partner TrueLayer, which is integrated into PCI Pal’s existing agent-assisted contact centre solutions.

Pelatro 23p £10.4m (PTRO.L)

The precision marketing software specialist announces its results for the six months ended 30 June 2022. Revenue increased 21% to $4.19m (H1 2021: $3.46m), including $2.41m in recurring revenue (H1 2021: $2.43m). However, Pelatro generated an operating loss of £74k due to 45% higher administrative expenses (H1 2021: £125k profit). Throughout the period the Company won 3 new customers, and with further contract wins and change requests, visibility is at least c. $8.5m for the full year of 2022 and $6m building into FY23.

Polarean Imaging 49.5p £105.5m (POLX.L)

The medical-imaging technology company, with an investigational drug-device combination product using hyperpolarised xenon-129 gas to enhance magnetic resonance imaging (MRI) in pulmonary medicine, announces that the U.S. Food and Drug Administration (FDA) has requested additional information from Polarean’s xenon-129 gas blend drug manufacturing partner, relating to the cGMP (Current Good Manufacturing Practice) pre-approval inspection at the partner’s production facility. The FDA has suggested that the required information would constitute a major amendment to the New Drug Application (NDA) that, if timely submitted, would allow for the FDA to grant a 90-day extension to the review timeline.

Rural Broadband Solutions* 2.31p £8.4m (AQSE:RBBS)

The provider of broadband services to rural areas of the UK, announces that it has received its first payment under the BDUK’s Gigabit Broadband Voucher Scheme, Project Gigabit. This follows the start of its rollout of gigabit-capable fibre broadband services to villages and towns in rural areas of Shropshire in order to provide high speed connectivity within the rural communities. This initial payment totalled just over £135k.

Tortilla Mexican Grill 168p £65m (MEX.L)

The fast-casual Mexican restaurant group in the UK, announces two Board changes to support its next chapter of growth. Francesca Tiritiello has been appointed as an independent Non-Executive Director with effect from 20 September. Francesca will take over as Chair of the Remuneration Committee from Laurence Keen. Laurence Keen has been appointed as Senior Independent Director (SID).

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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