Small Cap Feast

Small Cap Feast – 27/10/21

Dish of the Day:

Softline, the global solutions and services provider in digital transformation and cybersecurity, with its headquarters in London, has issued GDRs to the Standard Listing Segment of the Official List, and on the Moscow Exchange. The Group had a turnover of US$1.8bn for the year ended 31 March 2021, employs c.6,000 people globally, and operates in more than 50 countries across emerging markets. Primary proceeds from the Offer are expected to be around US$400m. At the $7.5 offer price. Mkt Cap approximately USD 1.5bn.

Off the Menu:

No leavers today.

What’s Cooking in the IPO Kitchen?

Katoro Gold plc (AIM: KAT), the AIM listed gold and nickel exploration and development company, announced that the Company and Target Mine Consulting (Pty) Ltd have agreed to seek admission for 100% of the Blyvoor Joint Venture project (BV) by vending each of their separate interests into a new company to be listed on the Standard List of the London Stock Exchange. Katoro will look to recover its total cash expense to date of c.£1.5m in Project development, from the IPO. Timing TBA.
ATOME headquartered in Leeds, focussed on the large-scale production of green hydrogen and ammonia intends to join AIM towards the end of the year. ATOME intends to be spun-out from AIM-listed President Energy Plc, an oil and gas company which has incubated and financially supported ATOME to date, by way of a dividend in specie.
Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie ‘Publisher of the Year 2021’ by GamesIndustry.biz. Offer TBA. Due early Nov.
Life Science REIT to join AIM raising up to £100m. This will be the first London listed real estate investment trust (REIT) focused on UK life science properties. Due mid Nov.
Alinda Capital Infrastructure Investments to join the Specialist Fund Segment of the Main Market of the London Stock Exchange raising up to £350m. Due Late November.
Nu-Oil and Gas to acquire Guardian Maritime Ltd and Guardian Barriers IP Ltd and become Guardian Global Security plc and join the Main Market (Standard). Guardian is a technology group that supplies products to prevent unauthorised entry into areas that are deemed to have value, with maritime security being the main focus initially. Q4 2021.
ProCook, the UK’s leading direct-to-consumer specialist kitchenware brand, is considering applying for admission of the Shares to the Main Market (Premium). ProCook’s revenue grew by 37% to £53.4m in FY21 (ending 4 April 2021), with Adjusted EBITDA growing by 246% to £13.3m in the same period. Timing TBA.
Silverwood Brands, an investing company established to identify investment opportunities including, but not limited to, in the foods, organic food, wellness, lifestyle and leisure sectors, targeting admission on the to join the AQSE Growth (Access). Due November 2021. Offer TBA.
Kasei Holdings, a technology specialist investor that focuses on cryptocurrencies and blockchain technologies, due to join the AQSE Growth Market 27 Oct. No funds being raised.
Following the previously announced intention to demerge trading on the LSE’s Main Market on 2 November, Hostmore plc from Electra Private Equity PLC, it is expected that the Demerger will be completed and the Hostmore shares will be admitted to the Premium Segment. Hostmore is a growing hospitality business with its current operations focused on the American-themed casual dining brand, Fridays, and the cocktail-led bar and restaurant brand, 63rd+1st.
Rubix Group Holdings, the market leading pan-European distributor of industrial maintenance, repair and overhaul products and services is considering an IPO on the Main Market (Premium). In the six months ended 30 June 2021, Rubix generated revenue from ongoing operations of EUR1,312m and adjusted EBITDA of EUR123m (9.4% adjusted EBITDA margin from ongoing operations), an increase of 10.6% and 19.3% compared to the six months ended 30 June 2020, respectively. Raising EUR850m, potential sale of existing ordinary shares by current shareholders. Timing TBA.
Firering Strategic Minerals to join AIM, a holding company for a group of exploration and development companies set up to focus on developing assets towards the ethical production of critical metals. The Company’s portfolio of assets is located in Côte d’Ivoire and contains projects that the Directors believe to be prospective for lithium and columbite-tantalite. Due Early Nov. Offer TBA.
Harmony Energy Income Trust to join the Specialist Fund Segment of the Main Market raising up to £230m. The Company’s investment objective is to invest in commercial scale energy storage and renewable energy generation projects, with an initial focus on a diversified portfolio of battery energy storage systems located in Great Britain. The Company has contracted with Tesla Motors Limited in respect of its initial portfolio of battery storage projects, to be acquired on IPO. Due Early Nov.
Stelrad Radiator Group, the specialist manufacturer and distributor of steel panel radiators in the UK, Europe and Turkey, is considering an IPO on the Main Market (Premium). Secondary and primary (c.£25m) offer. Early Nov.
Pantheon Infrastructure to join the Main Market (Premium). PINT will make investments in private infrastructure assets. Due Mid Nov.
Quantum Exponential to join AQSE. The Company intends to identify investment opportunities in the quantum technology sector. The Company has identified over 175 start-ups which potentially meet their investment strategy with a focus on seed funding for start-ups with second stage funding plans in preparation. Offer and timing TBA.
Pod Point, one of the United Kingdom’s leading providers of Electric Vehicle charging solutions is considering a Main Market (Premium) listing. As at 30 June 2021, Pod Point had installed more than 89,000 home charge points and over 13,000 commercial units, including those located at workplaces and destination locations. Timing and offer TBA.
Marks Electrical, a fast growing online electrical retailer, announced its intention to proceed with an initial IPO and to seek admission to trading on AIM. Marks Electrical sells, delivers, installs and recycles a wide range of household electrical products. In the year to 31 March 2021 revenue grew to £56m, up 78% against the previous financial year, while EBITDA increased to £7.45m, at a 13.3% EBITDA margin. The Group has made a strong start to its current financial year to 31 March 2022, with revenue growth of 78% in H1 FY2022, versus 47% growth in H1 FY2021. Offer TBA Admission is expected to take place in early Nov 2021.
M7 Regional E-Warehouse REIT intends to apply for admission onto The Property Stock Exchange (Wholesale Segment). On Admission, the company plans to acquire a portfolio of UK retail warehouses worth £120m from M7 Real Estate Investment Partners VIII. The portfolio currently comprises 18 retail warehouse properties across the UK totalling 978,317 sq ft and fully let to 53 occupiers. Rent collections for Q2 2021 stand at 93% and are expected to revert to 100% in the coming quarters.
Central Copper Resources, a company focused on delivering a high grade copper project into production and exploration of assets in the DRC and in the Republic of Zambia to join AIM. By 2022, CCR intends to be ready to commence the project financing of its Mbamba Kilenda copper project. It pushed back its AIM float on 30th September to late October. The amount to be raised is still yet to be confirmed.

Breakfast Buffet

ABCAM 1649p £3740m (ABC.L)

The specialist in the supply of life science research tools, today announces that is has completed its acquisition of BioVision, Inc from Boai NKY Medical Holdings Ltd for total consideration of $340m. The Acquisition accelerates execution of Abcam’s strategic growth plan, enhancing in-house innovation and adding scale in the complementary biochemical and cellular assay markets. Commenting on the completion of the Acquisition, Alan Hirzel, CEO of Abcam, said: “We are delighted to have completed this transaction and welcome our new colleagues to Abcam. Bringing BioVision’s product portfolio and capabilities into Abcam, particularly its strengths in biochemical and cell-based assays, will further enhance our ability to support life scientists globally.” As previously announced, the most recently audited results of BioVision for the 12 months ended 31 December 2020, were revenues of $33.8m (of which approximately 25% were sold to Abcam), operating profit of $12.6m and Net assets of $21.9m. Revenues included approximately $5m of COVID-19 related product sales which are not expected to recur.

Accesso Tech 910p £375.5m (ACSO.L)

The premier technology solutions provider to leisure, entertainment and cultural markets, today gives the following update on trading: Following the announcement of its interim results on 14 September 2021, accesso has seen continued strong performance through September and into the October trading period. The Group’s performance continues to be driven by high demand in its end markets, coupled with the increasing use of its revenue-generating technology across its customer base. As a result, the Group now expects revenue for the full year 2021 to be no less than $124m. The Group’s profitability continues to improve as the growth in its higher-margin products outpaces those products with lower margins. It also continues to see an impact from a lag in its return to normal cost levels while it deploys additional resources to calibrate for the increased demand. As previously signalled, these investments will have a limited impact on Cash EBITDA in 2021, while their full annualised effect will be felt in the 2022 financial year. Due to these dynamics the Group now expects its Cash EBITDA margin for the full year 2021 to exceed 20%.

Coral Products 15.25p £12.3m (CRU.L)

Mr Joe Grimmond, Chairman, will make the following statement at the Annual General Meeting of the Company today at around 12pm. “I am pleased to announce that the Group has enjoyed a very strong first half to our current financial period. The Group will report sales and profits before tax substantially ahead of the same period for last year. This is in spite of a disappointing contribution from Global One Pak Ltd. This is primarily due to logistic cost increases relating to our Chinese trading compounded by the continuing ill health of the managing director. Your Board have taken immediate steps to address both issues however trading conditions, especially with the Far East, remain problematic. The Board believe this is expected to present better opportunities to on shore manufacture and we are well set to benefit from such. In order that our shareholders can share in this improvement your Board has declared an interim dividend of 0.5 pence per share with an ex-dividend date of 11 November 2021 and record date of 12 November 2021. This interim dividend will be paid on 3 December 2021.”

MJ Hudson 46.50p £80.2m (MJH.L)

The specialist service provider to the asset management industry, today announces the release of ESG Advantage, a unique digital solution that helps private market participants understand how they and their investments measure up from an ESG (environmental, social, and governance) perspective. Institutional investors, fund managers and portfolio company management teams must comply with challenging regulatory requirements and satisfy increasing scrutiny on ESG and sustainability. ESG regulations are often complex, constituting thousands of pages of rules, making it extremely difficult to meet the deadlines set. The amount of data that must be collected and the number of disclosures that must be made continue to grow.

Phoenix Copper 70p £81.3m (PXC.L)

The precious metals emerging producer and exploration company, has entered into agreements with Honolulu Copper Corporation and Mackay LLC to acquire part of the 2.5% royalty payable to each of them, and the Honolulu mining claims, pursuant to the Mining Leases on the Empire Mine in Idaho, USA. Phoenix has acquired 1.25% of the royalty payable to Honolulu, including Honolulu’s underlying patented and unpatented mining claims, and 1% of the royalty payable to Mackay, for a total consideration of $1.3m payable in cash, $550k of which has been paid, and $750k of which is payable in three instalments of $250k each, due on 31 December 2021, 2022, and 2023.

Restore 479.5p £655m (RST.L)

The provider of integrated information and data management services, secure technology recycling, and commercial relocation solutions has acquired 100% of the share capital of The Document Warehouse in the UK (TDW), for a cash consideration of £6.5m. TDW is an established records management business located in Sittingbourne, Kent, with c.124k boxes under management and generating annual revenue of c.£550k. Importantly, the business has a modern freehold warehouse and logistics centre (which is a majority of the consideration) that will provide an additional, strategically well-located site with capacity to service the key London and the South of England markets for Restore’s growing box estate and to further consolidate existing sites.

Team17 Group 740p £973m (TM17.L)

Team17, a global games label, creative partner and developer of independent premium video games and developer of educational entertainment apps for children announced that StoryToys (a wholly-owned subsidiary of Team17), the LEGO Group and Marvel Entertainment are bringing the fun and excitement of the LEGO® DUPLO® brand and Marvel Universe to preschoolers with the unique LEGO DUPLO MARVEL mobile app. The LEGO DUPLO MARVEL app will allow preschoolers to join Spidey, Captain America, Ghost-Spider, and other heroes for learning adventures and imaginative play. The LEGO DUPLO MARVEL app is carefully aligned with the esteemed Headstart Early Learning Outcomes Framework to ensure it meets the developmental needs of 2-5-year-olds.

Tekcapital 34.5p £45.13m (TEK.L)

The UK intellectual property investment group focused on creating valuable products from investing in university technology that can improve people’s lives announced that Dr. Jay Shah has been appointed as Chief Medical Officer for MicroSalt®. Previously, Dr. Shah served as a medical advisor to the Company. Dr. Shah is a seasoned leader with over 15 years of progressive and diverse experiences in the medical field within academic, clinical, and teaching environments, as well as building medical businesses and service lines. He is currently a cardiologist at the Mayo Clinic and an Assistant Professor at the Mayo Clinic School of Medicine.

Union Jack Oil 19.5p £19.3m (UJO.L)

Update in respect of ongoing operations and landmark net revenues at the Wressle hydrocarbon development located within licences PEDL180 and PEDL182 in North Lincolnshire, on the western margin of the Humber Basin. Union Jack holds a 40% economic interest in this development. Landmark US$1m net revenues generated to Union Jack since re-commencement of production on 19 August 2021. Current daily production figures well in-excess of prognosed 500 barrels of oil per day from the Ashover Grit reservoir. Elevated production rates maintained during well test on significantly restricted choke setting and sustained high flowing wellhead pressure. Well is producing under natural flow. Clean up continuing and full potential yet to be achieved. Zero water cut. Staged site upgrades have commenced. Wressle production highly profitable at current oil prices. Further development and production at Wressle can be achieved from the Wingfield Flags and Penistone Flags formations. Gaffney Cline Competent Person’s Report commissioned by Union Jack ongoing.

ULS Technology 73.8p £47.8m (ULS.L)

The provider of online digital platforms for the UK conveyancing and financial intermediary markets updated ahead of its Half Year Results for the six months to 30 September 2021. Revenue from continuing operations during the Period was £10.2m, an increase of c.45% over the prior year during which the market was impacted by Covid-19. The underlying pre-tax loss for the period was lower than expected at approximately £1.5m as the Company accelerated its investment phase. Net cash remains high at circa £23.0m as at 30 September 2021, with no debt.

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