Small Cap Feast
Small Cap Feast – 23 June 2020
Dish of the Day:
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What’s Cooking in the IPO Kitchen?
The pantry is bare!
1pm 21.75p £19.66m (OPM.L)
Update. Trading — FY May 2020—During the year, the Group experienced three quarters of ‘normal’ trading activity and one quarter, 1 March to 31 May 2020, impacted by the effects of the COVID-19 pandemic.
The Group reports a satisfactory trading performance for the financial year as a whole in spite of the significant interruption to normal trading activities in the fourth quarter caused by the COVID-19 crisis and its financial implications. New business origination for the financial year was approximately £147.0 million of which approximately £54.5 million (37 per cent.) was written on ‘own-book’ and £92.5 million (63 per cent.) was placed for broker commission income.
New term loan funding of £3.1 million for operations; and
Further new and reallocated funding of £6.3 million for CBILS lending
Trackwise Designs 87.5p £19.35m (TWD.L)
The provider of specialist products using printed circuit technology, announces its audited results for the year ended 31 December 2019.
- Revenues of £2.91m (2018: £3.47m)
- Revenues from Improved Harness Technology (“IHT”), the key growth area for Trackwise, up 55% to £0.94m (2018: £0.61m)
- Adjusted EBITDA of £0.57m (2018: £0.62m)
- Adjusted operating profit of £0.26m (2018: £0.32m)
- Net debt (excludes IFRS16 lease liabilities) of £0.30m (31 December 2018: net cash £2.79m)
Philip Johnston, CEO of Trackwise, commented: “Despite the economic headwinds faced in 2019, we made encouraging progress against our strategy, with our globally unique IHT technology gaining traction and significant capability and capacity improvements being made that position us well for the future. That momentum continued into 2020, with our first IHT production order secured in February, a successful fundraise in March and the completion of the acquisition of Stevenage Circuits Limited in April.
TP Group 8.35p £65.06m (TPG.L)
The provider of mission-critical solutions for a more secure world has signed an initial contract worth £0.3m with Gulf Data International Co LLC, an IT solutions provider and systems integrator based in Abu Dhabi. The contract will see TP Group work in partnership with gDi to develop Artificial Intelligence (“AI”) tools for use in the oil and gas industry in the United Arab Emirates (“UAE”), and to deliver an optimised production modelling and management solution to a major oil and gas company, also in the UAE.
The proof of concept project will develop a digital model of a selection of specific oil production assets and will be structured around the Optimiser system, which is part of TP Group’s existing software suite of AI, machine learning and decision support tools.
Frontier IP 66.5p £33.8m (FIPP.L)
The specialist in commercialising intellectual property, notes today’s announcement below from portfolio company The Vaccine Group relating to the significant progress made in developing animal vaccines based on its novel technology to tackle COVID-19.
Two of the Company’s vaccine candidates have enjoyed success in in vitro, pre-animal trial laboratory testing. Following this important milestone, TVG is now preparing to test the two vaccine candidates in animals. Two further vaccine candidates are also under development. The Company is also investigating the longer-term potential for human vaccines.
BlueStar Capital 0.195p £7.3m (BLU.L)
Update regarding its investee company Leaf Mobile Inc (“Leaf”).
Leaf (TSX.V: LEAF), a company in which Blue Star holds an investment, has reported a significant rise in turnover from its mobile gaming portfolio for the first quarter of 2020 to CAD$5.6m, an increase of more than 420 per cent. on the prior year. Revenue growth was attributed to the success of its new mobile games and stable revenue from its portfolio of legacy games. The first quarter of 2020 represents the best first quarter in Leaf’s trading history.
Blue Star made its investment in Leaf in April 2020 at a price of CAD0.16 per share. The share price for Leaf is currently trading at approximately CAD0.37 per share.
Rockfire Resources 1.075p £6.8m (ROCK.L)
The gold and base metal exploration company announced that drilling is progressing well and that long intervals of sulphides up to 235m have been recorded in drilling. A water bore, which was drilled in preparation for planned diamond drilling, has also encountered significant sulphides at the Company’s 100%-owned Plateau Gold Deposit (“Plateau”), part of the Lighthouse tenement in North Queensland, Australia.
Smart Metering Services 569.5p £642.66m (SMS.L)
AGM Update—Trading and FY20 outlook—At 31 May 2020, the Group’s total Index Linked Annualised Recurring Revenue (“ILARR”) was £75.9 million. Despite the temporary cessation of meter installations caused by Covid-19, the Group currently expects underlying profitability for the year to 31 December 2020 to be in line with the Board’s earlier expectations, reflecting the resilience of the SMS business model. -As previously announced on 1 June 2020, SMS has commenced a phased and progressive resumption of all field work following a temporary suspension of non-essential activities, including smart meter installations, on 24 March 2020.
0 As a result of lower installations since March 2020, the Group’s capex on smart meters has been lower than expected. Liquidity remains strong, with a net cash position of £48m and £300m of banking facilities at 31 May 2020.
SMS is fully funded to install its 2 million smart meter order book as well as additional meter opportunities.
Fox Marble 1.85p £5.7m (FOX.L)
The company focused on marble quarrying and processing in Kosovo and the Balkans region, has signed a contract to supply 15,000 square metres of cut and polished tiles and 19,000 metres of bespoke cut to size products to CC Apartments LLC.
CC Apartments LLC is engaged in developing several prestigious projects including apartments in Kosovo, as well as Albania and surrounding countries.
Fox Marble will be processing blocks of a range of marble from its own quarries for this project and supplying this material from its factory in Kosovo.
OnTheMarket 81.5p £58m (OTMP.L)
The majority agent-owned company which operates the OnTheMarket.com property portal, announces today an extension to the payment support initiative for its agent customers to help ease the continuing impact of the COVID-19 situation.
On 19 March 2020, OnTheMarket announced a 3 month discount to listing fees to assist agent customers who were facing the uncertainty of the evolving COVID-19 situation. The initial discount period was due to expire on 25 July 2020. To further help to reduce the cash flow pressure which agents are continuing to face, OnTheMarket is now extending listing fee discounts for a further 2 months to 25 September 2020. The discount will remain at 33% for the first month and will be 20% for the second month
AFC Energy 21.85p £104.44m (AFC.L)
Update on AlkaMemTM developments since the beginning of 2020.
- Successfully scaled up and validated AlkaMemTM membrane within a commercial sized HydroX-Cell(S)TM fuel cell.
- Excellent power density maintained utilising scaled up AlkaMemTM membrane, reflecting performance seen amongst alternative high-density fuel cell technologies.
- Developing methods for enhanced mechanical stability of the AlkaMemTM membrane to meet wider industry applications.
- Initial small scale AlkaMemTM samples sold for comparative validation to commercial and research institutions in Europe with an emphasis on alkaline water electrolysis applications.
- Preparing for further small-scale membrane samples dispatched to European institutions next month.
- Initial review of third-party membrane base film suppliers highlights likely cost advantages to alternative membrane base film technologies in the market today.
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