Small Cap Feast

Small Cap Feast – 23 July 2020

Dish of the Day:

No Joiners Today

 

Off the Menu:

Walcom Group has left AIM following the resignation of its NOMAD and Broker

 

What’s Cooking in the IPO Kitchen?

AEX Gold (TSXV:AEV) is intending to admit its shares to AIM alongside a £45m placing. The Company, led by CEO Eldur Ólafsson, has established the largest land package of gold assets in Greenland with a current portfolio of licences covering 3,356 square kilometres, in the two known gold belts in Southern Greenland, the Nanortalik and Tartoq gold belts. Nalunaq is a high-grade gold asset with an updated Inferred Mineral Resource covering 422,770 tonnes at 18.5 grams per tonne of gold, or 250,970 ounces of gold, which covers the area in and around the historical mine.  Due July.  Current mkt cap C$66.7m.

 

Breakfast Buffet

Symphony Environmental Technologies* 31.9p £53.6m (SYM.L)

Positive antiviral test results from Eurofins Laboratories for its d2p antimicrobial masterbatch technology.

Eurofins tested Symphony’s d2p “Viricidal Activity Agent” incorporated in a polyolefin film, against Bovine Coronavirus in accordance with International Standard, ISO 21702-2019, and found a virus reduction of 99.84% in 24 hours. The official report is due soon, after completion of quality control checks, but Eurofins has advised Symphony that these positive results are not expected to change. The Bovine Coronavirus is a close Beta Coronavirus surrogate for COVID-19.

 Michael Laurier CEO said: “this is a very exciting and positive development for our global sales team to bring to the market as quickly as possible and we look forward to receiving Eurofins final report in due course. In the challenging times that we live in today, we believe that a wide range of products from plastic packaging to Personal Protective Equipment, made with our d2p masterbatch technology will provide an extra level of protection against many different types of bacteria and fungi, and now Bovine Coronavirus.  As d2p is embedded in the plastic it will not wear off and will last for the lifetime of the plastic product. This welcome and important news comes in addition to the approval by the FDA in the United States in February of our d2p antibacterial technology for bread packaging.”

 

Curtis Banks 220p £119m (CBP.L)

Proposed placing by  one of the UK’s leading SIPP providers to existing and new institutional investors at a placing price of 210 pence per Placing Share to raise gross proceeds of approximately 25m.

The Company has separately announced today the acquisition of Dunstan Thomas Group Limited and the conditional acquisition of Talbot and Muir Limited .

 Talbot and Muir is a high-quality provider of SIPPs and SSAS products with over 6,600 plans, Assets under Administration of approximately £3.6bn and 71 employees across offices in Nottingham and Leeds as at 31 December 2019. Dunstan Thomas delivers technology solutions and services for wealth managers, platforms and providers under licence.

 

Greatland Gold 14.75p £556m (GGP.L)

Update on Newcrest’s drilling campaign at Greatland’s Havieron deposit in the Paterson region of Western Australia.

  • Footprint of mineralisation expands at Havieron with Newcrest reporting the intersection of a new zone of higher-grade breccia mineralisation in the north west.
  • Further excellent results from infill drilling continue to demonstrate geological and mineralisation continuity over the upper 600m vertical extent of the high-grade crescent sulphide zone and surrounding breccia.
  • Drill results to date continue to support the investigation of both high-grade selective and bulk mining methods.

 

UK Oil & Gas 0.175p £19.42m (UKOG.L)

UKOG has signed a binding heads of agreement with Aladdin Middle East Ltd (“AME”), an independent oil company with 60 years of operational experience in Turkey, to take a 50% non-operated working interest in the 305 km² Resan Licence. UKOG will take an active technical role in a 5-well oil appraisal and step-out exploration drilling programme, which, Covid and weather permitting, is expected to commence this year.

The Licence lies within the SE Anatolian basin, a geological continuation of the prolific Zagros “fold-belt” petroleum system within the foothills of the Taurus-Zagros mountains in Iraq, Iran and Turkey, one of the Middle East’s major oil producing areas. Multiple producing oil fields lie to the immediate west and south east of the Licence, containing significant proven recoverable reserves

 

Midatech 37.5p £14.7m (MTPH.L)

The drug delivery technology company focused on improving the bio-delivery and bio-distribution of medicines, announces it has terminated the formal sale process initiated by the Company on 20 April 2020. As part of the ongoing strategic review process, the Company is evaluating early stage proposals and expressions of interest from third parties including, inter alia, for the potential acquisition of certain assets of the Company and/or a transaction which if progressed would constitute a reverse takeover under the AIM Rules.

Following the termination of in-house development of MTD201, the Company’s previously announced strategy to exploit its Q-Sphera technology more broadly is gaining traction. On 8 June 2020, the Company announced a collaboration with Dr Reddy’s Laboratories Ltd and on 21 July 2020 the Company announced a second collaboration with a European affiliate of a global pharmaceutical company, in each case to explore the feasibility of applying Midatech’s Q-Sphera technology to the partners’ proprietary products.

 

Personal Group 286p £89.3m (PGH.L)

The technology-enabled employee services provider, updated for the six months ended 30 June 2020.

Given the current environment, the Company has had a positive start to the year, with EBITDA for the first six months of approximately £5 million, ahead of the same period last year and comfortably ahead of the Company’s expectations at the start of the pandemic. Revenue for the first six months was approximately £30.0 million (H1 2019: £30.0 million).  Whilst much of the first half of 2020 was focused on preparing for and responding to the Covid-19 pandemic, the impact on the financial position of the Company in the first 6 months was relatively limited.  The Company paid a reduced quarterly dividend for Q2 as a result of the uncertainty around the impact of the Covid-19 crisis but intends to return to a full dividend payment for Q3 of 5.9p per share.

Despite the strong start to 2020, the second half will not be without its challenges.  As alluded to above, the inability to write new insurance sales during lockdown will impact premiums in H2 2020 and 2021 in the insurance business.  Looking forward into the latter part of 2020 and 2021 the Company, like many UK businesses, may be impacted by a recession following lockdown. However, health and wellbeing will undoubtedly become a significant focus for all employers going forwards and the Company remains well placed to help them deliver on this.

 

XL Media 25.5p £47.7m (XLM.L)

The global digital performance publisher, today reports on the performance of the Company in the first six months of the 2020 Financial Year, and the progress it is making on its business transformation.

The first half of the year, as previously reported, was impacted heavily by a manual penalty being applied by Google to over 100 of the Company’s websites (Google deranking) in January this year, and the subsequent global slowdown caused by the Covid-19 pandemic.  For the first 6 months of 2020 XLMedia expects to report:

  • Revenue of approximately $27.5 million
  • EBITDA of approximately $3.5 million.
  • The Group’s balance sheet remains strong, with cash balances at the end of June of approximately $27.9 million.

Increasing level of confidence in the Company’s ability to grow revenue and profit in 2021 and beyond.

XLMedia remains a strong business and a leader in its industry, with a clear strategic vision and the operational and financial strength to deliver it.

 

Frenkel Topping 42p £31.7m (FEN.L)

£13m placing at 40p. The net proceeds of the Placing will be used to:

  • accelerate the Company’s vision of becoming the market leader in providing a full service offering to clients and claimants, particularly in PI and Clin Neg; and
  • consolidate the heavily fragmented pre-settlement professional services market by targeting acquisitions that have clear synergies in the PI and Clin Neg sectors in order to scale routes into growing AUM mandates from successful claims.

 

Equals Group 31p £55.3m (EQLS.L)

The B2B focused e-banking and international payments group, is pleased to provide the following update on the Group’s trading for the six month period ended 30 June 2020 (‘H1-2020’ or the ‘period’) and also for the 14 working days up to 20 July 2020.

Against the challenging background of the Covid-19 pandemic, the Group managed to achieve further growth in H1-2020, with total revenues of £13.7 million (H1-2019: £13.6 million). Excluding B2C Travel Money (cards and cash), revenues of £12.3 million were 23% ahead of H1-2019 (£10.0 million).

Whilst the Covid-19 pandemic has naturally affected the Group, revenues are returning to more normalised levels in most B2B business segments since the initial impact in late March.  The Board is pleased that overall trading continues to perform in line with management expectations.  

 

Dotdigital Group 114p £336m (DOTD.L)

The SaaS’ provider of an omnichannel marketing automation and customer engagement platform, provided a trading update for FY Jun 20. The pandemic had minimal impact in the final quarter of our financial year due to the high level of contracted recurring revenues in the core business.      

  • Momentum has continued into the new financial year, despite the ongoing uncertainty around the impact of COVID-19, though management continues to monitor the current situation;
  • Organic revenue from continuing operations grew by c.12% to 47.4m (2019: 42.5m)
  • Adjusted EBITDA  from continuing operations is expected to be comfortably ahead of market expectations.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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