Small Cap Feast

Small Cap Feast – 26th July 2022

Dish of the Day:

No joiners today.

Off the Menu:

Vivo Energy Plc has left the main market of the London Stock Exchange.

What’s Cooking in the IPO Kitchen?

Inteliqo Limited, intends to join the Aquis Growth Market. Inteliqo Limited provides sales, marketing and distribution services to technology product owners under long-term distribution agreements. The Company has agreed its first such agreement in respect of the Ipedia iQ product range. The iQ product is a smart translation earphone (earbuds) system which offers integrated real time speech translation in 42 languages, built in smart assist (google and siri), multiple built-in microphones and high-definition sound. Expected 5 August.
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

Ariana Resources 3.1p £35.4m (AAU.L)

The mineral exploration and development company with gold mining interests in Europe, announces the grant of a further exploration license in Kosovo to Western Tethyan Resources Ltd (WTR), which is 75% owned by Ariana. WTR has three other license applications in Kosovo currently awaiting final approval from the Independent Commission for Mines and Minerals (ICMM). Management indicates that the addition of the polymetallic Hertica Project to the WTR portfolio is important to the development of its pipeline in Kosovo through partnership with Newmont Corporation.

Brighton Pier Group 86.5p £32.3m (PIER.L)

The diversified UK-based leisure and entertainment business announces its trading update for the 52-week period ended 26 June 2022 (FY2022). Unaudited sales were £40.1m, up 196% from FY2021 and 25% from FY19, the last full year of uninterrupted trading prior to the pandemic. Sales above the £40m mark is a record result for the company, benefiting both from pent-up demand and from hospitality-targeted government recovery packages. The company repaid £7.7m of debt (37% of borrowings) during its financial year.

Deltic Energy 3.0p £41.5m (DELT.L)

The oil and gas exploration business confirms the positive well investment decision with its JV partner Shell to drill the high impact Selene Gas Prospect on Licence P2347 in the Southern North Sea off the North East coast of England. Under the terms of the original farm-out with Shell, Deltic holds a 50% working interest in the Licence but will be carried for 75% of the costs of drilling and testing the well on the Selene prospect, up to $25m and, as a result of the well investment decision, Shell will be appointed Operator of the Licence.

Destiny Pharma 37.5p £27.5m (DEST.L)

The clinical stage biotechnology company focused on novel products to prevent life-threatening infections, today announces publication of new data on NTCD-M3, its novel treatment for the prevention of C. difficile infection (CDI) recurrence, in the peer reviewed journal Public Library of Science One (PLOS ONE). The company is currently finalising preparations for the pivotal Phase 3 clinical trial of NTCD-M3 and seeking partners to help co-fund studies and commercialisation of this exciting biotherapeutic product. NTCD-M3 has previously reported very good Phase 2 clinical trial results.

Diaceutics 91.5p £77.3m (DXRX.L)

The diagnostic commercialisation company servicing the precision medicine market, announces the unaudited trading update for the six months ended 30 June 2022, with revenue and order book growth in line with the Board’s expectations. Revenue growth was approximately 25% to £7.5m (H1 2021: £6m), with more than 75% of revenues generated through its DXRX platform. Order book at 30 June 2022 was c. £10m, up 488% from £1.7m at 31 December 2021, with around 37% of the order book expected to be realised in H2 2022 and the remaining in 2023 and beyond.

Diurnal Group 10.9p £18.5m (DNL.L)

The specialty pharmaceutical company targeting patient needs in chronic endocrine (hormonal) diseases, today provides an unaudited trading update for the year ended 30 June 2022. Product sales (including royalties) increased to £4.62m, up 104% year-over-year. Cash and cash equivalents as at 30 June 2022 were £16.49m (as at 31 December 2021: £24.36m). Management indicates that the revenues were in line with expectations, reflecting both continued growth in Alkindi® (hydrocortisone granules in capsules for opening) as well as the initial roll out of Efmody® (hydrocortisone modified-release hard capsules) primarily in Germany.

Dotdigital Group 97.1p £289.7m (DOTD.L)

The SaaS provider of omnichannel marketing automation and customer engagement services, announces its trading update for the year ended 30 June 2022 (FY22). Revenue was at the top end of the guidance and in line with market expectations, growing by c.8% to £62.8m (2021: £58.1m). Adjusted EBITDA and adjusted operating profit are both expected to be ahead of market expectations. Management is optimistic about achieving continued strong sales and profitability growth in FY23 and beyond.

Franchise Brands 150p £195m (FRAN.L)

The international multi-brand franchise business announces its unaudited results for the six months ended 30 June 2022: revenue up 60% to £44.5m ( H1 2021 : £27.8m) and adjusted EBITDA up 74% to £7.3m ( H1 2021 : £4.2m). The strong first half year and the optimism for the full-year performance gave the Board the confidence to declare a 50% increase in the interim dividend to 0.9p per share. Management is seeing continued momentum in the traditionally stronger second half of the year and expects to deliver a full year performance at the top end of market expectations.

Shoe Zone 195p £97.5m (SHOE.L)

The footwear retailer announces that since the publication of its trading update on 29 June 2022, trading has been stronger than expected due to higher demand for summer products, particularly in the last two weeks. The company has also continued to experience margin improvements as a result of good supply chain and cost management. As a result, the company now expects adjusted profit before tax for FY 2022 to be not less than £9.5m (excluding profit on the sale of freehold property and foreign exchange revaluations).

Tyman 267.3p £524.5m (TYMN.L)

The international supplier of engineered door and window components and access solutions to the construction industry, announces its half-year results ended 30 June 2022. Revenue was £360m, up 15% year-over-year, driven by pricing action. Operating profit increased by 5% to £40.8m. The company is focusing on taking market share and improving productivity and working capital management. Management expects the full-year adjusted operating profit to be in line with market expectations excluding the benefit of foreign exchange.

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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