Small Cap Feast

Small Cap Feast – 27th July 2022

Dish of the Day:

No joiners today.

Off the Menu:

No leavers today.

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

CAP-XX 5.1p £26.0m (CPX.L)

The manufacturer of ultra-thin prismatic and high-power cylindrical supercapacitors has settled its legal dispute with Systematic Power Manufacturing LLC (SPM). The Delaware District Court in the U.S. had made a judgment in favour of CAP-XX against Ioxus, Inc. SPM acquired the assets of Ioxus in 2020 after control of Ioxus was passed to its secured creditor Ares Capital following CAP-XX’s successful court action. In exchange for CAP-XX agreeing to drop all further action and SPM has granted CAP-XX exclusive rights to sell the Ioxus supercapacitor modules and cells under the CAP-XX brand outside the USA, Canada and Japan.

Coro Energy 0.29p £6.2m (CORO.L)

The South East Asian energy company with a natural gas and clean energy portfolio, announces the natural gas output of its Italian portfolio during the first and second quarter of 2022. During the first half of 2022, the Italian operation produced 2.56m standard cubic meters of gas and generated Euro 2.4m in revenue. The increase in production in the second quarter of 2022 largely reflects Sillaro recommencing production in mid March. There are initiatives under review to further increase production in Italy and the first initiative is likely to be reservoir interval reperforation at Rapagnano later in the year.

Eleco 69p £57.4m (ELCO.L)

The construction software specialist provides a trading update for the six months ended 30 June 2022. Total revenues for the period were £13.4m (2021: £13.8m). Profits remained in line with expectations. The company ended the period with a net cash position of £11.3m (£10.0m at 31 December 2021) following payment of final dividend of £0.3m in June. During the period, the company saw reduced demand in Germany but experience growth in the UK and Swedish markets. Management remains confident in delivering in line with market expectations for the full year.

FireAngel Safety Technology 12.4p £22.2m (FA.L)

The developer and supplier of home safety products, provided a trading update for the six months ended 30 June 2022 (H1 2022). Sales reached £25.6m, up 15% year-over-year and driven by regulatory requirements. The underlying loss before tax is expected to be materially better than the Board’s internal budget at £1.6m (H1 2021: £1.5m). At 30 June 2022, the Group had £0.7m of cash and £4.5m of debt excluding IFRS16 lease liabilities (at 30 June 2021: £5.9m of cash and £3.6m of debt). The Company expects to generate positive cash flow in H2 2022.

Gemfields Group 14.3p £172.4m (GEM.L)

The global supplier of emerald and ruby gemstones announces its operating results for the year ended 30 June 2022. Total auction revenues were US$330m, an all-time high. Cash balance at 30 June 2022 was US$111.4m (excluding auction receivables of a further US$81.1m). Gross debt balance at 30 June 2022 was $29.7m. The figures have been produced on a monthly basis for Gemfields’ 75%-owned Kagem emerald mine, its 75%- owned Montepuez ruby mine and wholly owned Fabergé, the luxury brand.

Hargreaves Services 527p £170.5m (HSP.L)

The diversified group delivering key services to the industrial and property sectors, announces its results for the year ended 31 May 2022. Revenue declined by 15% to £177.9m. Profit before tax from continuing operations increased by 139% to £34.5m, thanks to 59% growth in profit from joint ventures to £28.2m. German joint venture contributed £27.3m (2021: £13.6m), benefitting from strong commodity market conditions and DK Recycling sustainable cost reductions and operational improvements.

Quartix Technologies 340p £164.5m (QTX.L)

The supplier of subscription-based vehicle tracking systems, software and services, announces its unaudited results for the half year ended 30 June 2022. Group revenue increased by 6.7% to £13.3m (2021: £12.5m). Operating profit increased by 17.4% to £2.4m (2021: £2.1m). Adjusted EBITDA decreased by 6.4% to £2.5m (2021: £2.7m), due to a 25.9% growth in new installations and immediately expensing of these costs. The company is confident in achieving market expectations for the full year.

Skillcast Group 24p £21.5m (SKL.L)

The provider of content and technology for digital compliance transformation, announced a trading update for the six months ended 30 June 2022. The company expects to report revenues of £4.5m for H1 2022, a 20% increase year-over-year, driven by a 32% increase in recurring subscription revenues. However, a small adjusted EBITDA loss is expected for the first half. The company s on track with previously stated expectations for full-year profitability. It had no debt and cash of £7.5m on 30 June 2022.

Tekmar Group 11.3p £6.9m (TGP.L)

The provider of technology and services for the global offshore energy markets, announces a new contract award to supply 100 Cable Protection Systems for use on multiple offshore wind farms in the Shangdong and Guangdong provinces of China. The contract value is for £1.6m and the systems are expected to be delivered through 2022.

Zinnwald Lithium 8.25p £24.2m (ZNWD.L)

The German focused lithium development company announces that it has started its in-fill drill programme at the Zinnwald Lithium Deposit after the receipt of all necessary permits and permissions from the appropriate authorities. The purpose of the in-fill drilling programme is to assist in defining the detailed early years operational mine plan and explore the potential of applying larger scale mining methods. Supported by SRK Consulting (UK) Ltd, results from this programme will used in a new bankable feasibility study, aiming to deliver by the end of 2023.

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Emily Liu, CFA, CAIA
0203 764 2344
emily.liu@hybridan.com

Sous Chef:

Sacha Morris
0203 764 2345
sacha.morris@hybridan.com

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