Small Cap Feast

Small Cap Feast – 25th July 2022

Dish of the Day:

No joiners today.

Off the Menu:

No leavers today.

What’s Cooking in the IPO Kitchen?

Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group exports to over 40 countries and is a key supplier to almost every leading fibre optic cable manufacturer worldwide and is the industry’s only organisation with multiple manufacturing facilities spread across 3 continents. The Company acts as the holding company for its wholly-owned operating subsidiary, Unitape Limited and its 60% owned operating subsidiary, Unigel (UK) Limited. Expected 1 August.
Equipmake Holdings intends to join the Aquis Growth Market. Equipmake is a UK-based technology company, which has developed a range of electrification products for the provision of electric vehicle drivetrains to meet the needs of the automotive, aerospace and other sectors in support of the transition from fossil-fuelled to zero emission powertrains. The Company now has a significant pipeline of opportunities of in excess of £400m at various stages of negotiation, as demand for electric vehicles increases as part of the global decarbonisation movement. Expected 29 July.
Georgina Energy, an early-stage resource company with a strategy of actively pursuing the exploration, commercial development and monetisation of helium, hydrogen and hydrocarbon interests located in the Amadeus and Officer Basins in Northern and Western Australia intends to join AIM. Georgina Energy has two principal onshore interests. The first, the Mount Winter Prospect is located in the Amadeus Basin in Northern Australia, which the Company has a right to earn an initial 75% interest. The second interest, the Hussar Prospect is 100% owned by the Company and is located in the Officer Basin in Western Australia. Expected late July.
Macaulay Capital is due to join the Aquis Growth Market on 29 July. The Group was formed to originate and manage corporate transactions, raise funds from third parties, invest the Group’s own funds alongside those of external investors and to manage the Group’s investment portfolio with the aim of maximising its value.

Breakfast Buffet

7digital 0.3p £8.2m (7DIG.L)

The B2B end-to-end digital music solutions, announces it has signed a long-term contract with Utopia Music AG, a B2B music fintech company. Utopia is a new customer for the Company. Using 7digital’s global music database capabilities, in addition to Utopia’s existing data capabilities, Utopia’s customers will be able to monitor and measure the consumption of their music copyrights globally. In so doing, Utopia’s customers can leverage data for faster, more accurate payouts of royalties to copyright holders.

Begbies Traynor 143.6p £220.8m (BEG.L)

Begbies Traynor Group announces the acquisition of Axiom Consulting & Investments Limited and Ellayaan Limited and their subsidiary undertakings, which together trade as Mantra Capital, a London-based property finance brokerage. Initial consideration of £4.5m comprised of £4m in cash from the group’s existing facilities and the issue of 352,361 new ordinary shares. As part of the acquisition there is a potential earn out of up to an additional £13.5m (in a mix of cash and shares) subject to delivering material growth in profits over the 4 years post completion. The acquisition is expected to be immediately earnings enhancing and is in line with the strategy to increase the scale, quality and range of the group’s services both organically and through value-accretive acquisitions.

Crimson Tide 2.4p £15.8m (TIDE.L)

The provider of the mpro5 solution, announces a new long-term contract win with a national supplier in the utilities sector. The client will now roll-out the mpro5 solution to digitise processes across its network, covering the North West, Midlands, Yorkshire, the East of England, and North London. The initial term of the agreement is for 3years, with a total value in excess of £1.4m.

Ebiquity 56p £67.3m (EBQ.L)

The media investment analysis company, announces a trading update for the six months ended 30 June 2022, ahead of the interim results announcement planned for 22 September 2022. Revenue growth of approximately £37m, 16% ahead of the same period. Operating profit is expected to be in excess of £4.6m, an increase of at least 100% over the same period last year and underlying operating margin is expected to be at least 12%. The Group’s net debt as at 30 June 2022 was £12.9m. This performance included an initial contribution from Media Management LLC and Media Path, the acquisitions of which were completed in April 2022.

Naked Wines 158p £116.9m (WINE.L)

Naked Wines announces that Shawn Tabak, Chief Financial Officer and Director, has by mutual agreement departed his positions with the company, effective July 22, 2022. James Crawford has been appointed on an interim basis through to June 2023. Mr Crawford previously served as CFO from April 2015 to November 2020. Mr Crawford will combine this interim role with his responsibilities as Managing Director of Naked Wines UK division. The Board position being vacated by Mr. Tabak will not be filled at this time.

Science Group 387p £176.1m (SAG.L)

The science, technology and consulting organisation reports H1 results. For the six months ended 30 June 2022, Group revenue increased by 10% to £44.8m (H1 2021: £40.7m), 7% on a constant currency basis. Adjusted operating profit increased by 22% to £8.8m (H1 2021: £7.3m) and adjusted profit before tax was £8.5m (H1 2021: £6.9m). Adjusted basic earnings per share increased by 10% to 14.6 pence (H1 2021: 13.3 pence). Group cash (excluding client funds) of £38.6m and net funds of £23.9m. The long term debt of £14.7m is secured on the Group’s freehold properties. In addition to the term loan, in December 2021 the Group agreed a £25m revolving credit facility with its bank, which to date has not been drawn. The Group is experiencing increases in materials, energy and staff costs but has to date managed to offset the effects. delivering results slightly ahead of the Board’s expectations.

Thor Mining 0.5p £10.1m (THR.L)

Provide an exploration update on sampling and mapping programs which have been completed at the Company’s 100% owned Ragged Range Project, located in Eastern Pilbara, Western Australia. 3 programs of reconnaissance mapping with rock chip and stream sediment sampling completed over the Ragged Range Project. Rock chip sampling over the 13km-long Sterling Prospect returned up to 6g/t Au in rock chip along newly identified cross structures that strike oblique to the regional faulted contact, Norman Cairn Fault, between the Dalton Suite and Euro Basalts. At the Kelly’s Prospect, anomalous gold (up to 1.46g/t) and copper (4.8% Cu) have been identified along the northwest trending. All samples from the recently completed RC drilling program have now been received by the laboratory, and the Company awaits assay results.

Vast Resources 0.7p £10.3m (VAST.L)

The mining company, announces the Production Report for Q2 2022 from its producing Baita Plai Polymetallic Mine in Romania. Copper concentrate production during Q2 2022 increased 17% from 229 dry metric tonnes in Q1 2022 to 268.8 in Q2 2022. The tonnes milled for the period declined by 6%, however the ore mined increased by 3.5%. The copper grade milled improved by 33% to 0.60% for the period under review. The results are in line with the Company’s expectations. The Company continues to forecast an increase in copper concentrate tonnage produced due to the implementation of the Mantis CMR4 Jumbo Drilling rig. In addition to the increase in copper concentrate produced, an increase in the number of primary metres developed is forecast.

Venture Group 34.5p £43.5m (VLG.L)

The Company which develops, manufactures and commercialises products for the international self-care market, announces a trading update for the six months ended 30 June 2022. The Group expects to release interim results in September. The Company expects to report revenues of £18.9m, a growth of 36% over the same period previous year. This is reflective of the impact of the recent acquisitions of BBI Healthcare Limited and Helsinn Integrative Care Portfolio, contributing revenues of £6.3m. Cash inflow generated from operating activities of £1.5m (H1 2021: £0.7m outflow). Based on trading performance to date and visibility over second half revenue, the Board is confident the Group is on course to deliver full year financial performance in line with market expectations.

Xeros Technology Group 36.5p £8.7m (XSG.L)

The creator of technologies that reduce the impact of clothing on the planet, announces that Neil Austin will be appointed as Chief Executive Officer, effective 1 August 2022. Neil has commercial sales and management experience in the global domestic appliance manufacturing industry, having recently served as Managing Director of Strix (U.K.) Limited. Prior to this position, Neil was Chief Commercial Officer of Neurovalens Limited, and he previously held roles as Sales Director at Glen Dimplex, Consumer Goods division, and as Sales Manager at Whirlpool Corporation.

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