Small Cap Feast

Small Cap Feast – 28 July 2020

Dish of the Day:

No Joiners Today

 

Off the Menu:

Avocet Mining has left AIM following a long running Administration.

 

What’s Cooking in the IPO Kitchen?

AEX Gold (TSXV:AEV) is intending to admit its shares to AIM alongside a £45m placing. The Company, led by CEO Eldur Ólafsson, has established the largest land package of gold assets in Greenland with a current portfolio of licences covering 3,356 square kilometres, in the two known gold belts in Southern Greenland, the Nanortalik and Tartoq gold belts. Nalunaq is a high-grade gold asset with an updated Inferred Mineral Resource covering 422,770 tonnes at 18.5 grams per tonne of gold, or 250,970 ounces of gold, which covers the area in and around the historical mine.  Due July.  Current mkt cap C$66.7m.

 

Breakfast Buffet

Conroy Gold 6.1p £5.6m (CGNR.L)

Appointment of Howard M. Bird as a non-executive director of the Company with immediate effect.

Mr. Howard Bird is an internationally experienced Professional Geoscientist (gold, diamonds, platinum and base metals) and has over 30 years’ diverse junior and senior mining company exploration, development and mining experience, including over 15 years at senior executive management level.

Mr. Bird has a strong background in both European and North American marketing, capital financings, mergers and acquisitions, and joint ventures. Mr. Bird was the Senior Vice President of Exploration and Geology at TSX listed Brigus Gold Corp. and has a proven track record contributing to significant company value added growth with new business development, merger and acquisition, and new deposit exploration discovery success.

 

DigitalBox 6.1p £5.6m (DBOX.L)

The mobile-first digital media business, which owns Entertainment Daily and The Daily Mash, today issues a pre-close trading update for the six months ending 30 June 2020. The Company expects to announce its interim results on 8 September 2020.

 Despite the impact of COVID-19, the performance of the Company in the first six months has been encouraging. As a result of the Company’s strong operating margins, Digitalbox expects to report adjusted profit before tax ahead of management expectations. Furthermore, the cash balance has increased from £0.6 million at 31 December 2019 to £1.2 million on 30 June 2020 

Revenue for the six months ending 30 June 2020 is expected to be flat year on year at approximately £1 million. While much uncertainty remains, there are some early signs in the third quarter that advertising spend is increasing. The Company remains cautiously optimistic that a positive advertising market upturn will occur in the second half of the year. This half is traditionally the Company’s strongest trading period.

 

1Spatial 24p £26.5m (SPA.L)

AGM Statement from the specialist in  in Location Master Data Management (LMDM) software and solutions. “I would like to take this opportunity to update our shareholders on the Group’s resilient performance in the first five months of our new financial year. Customer implementations and projects have largely continued as planned and we have seen a healthy level of new business secured in all geographies, with both new and existing customers, albeit some decision-making remains protracted. The Company’s financial position remains robust and we retain our prudent approach to cost management during this time. As we continue the transition to a repeatable solutions provider, seeking to unlock the value in location data, the potential to scale 1Spatial through our technical innovation is clear.

We continue to make progress in unlocking the value of the significant US market opportunity, securing contract expansions with Google and LA County and we have a growing pipeline of 1Data Gateway opportunities, building on the US$2.6m contract secured at the start of the year with the US State of Michigan.”

 

ULS Technology 67.9p £44.1m (ULS.L)

AGM Statement from the provider of online B2B platforms for the UK conveyancing and financial intermediary markets.

Current Trading

As highlighted when the Company announced results for the year to 31 March 2020, recent trading has been buoyed by the quicker than expected rebound in the housing market. This rebound has endured with June’s positive momentum continuing during July. In particular, the Company has seen a growth in instructions for purchase cases where it achieves higher margins. Overall instructions of purchase cases are at or above the same period in 2019 with record weeks being set in some channels. Only the lender channel is still running at significantly below pre-COVID-19 levels.

 There has been a healthy take up of new products, such as Rapid Remortgage while the Company has also extended its relationship with Lloyds Banking Group and Openwork Conveyancing.

 The Company continues to roll-out DigitalMove. Two conveyancing firms are now using DigitalMove for non-ULS introduced work on a regular basis, a number of integrations are in progress and the new Conveyancer Portal is due to be launched next month.

 

European Metals 19.75p £30.76m (EMH.L)

A “Value Added Services Agreement” with KIC InnoEnergy SE, the principal facilitator and organiser of the European Battery Alliance,  has been entered into today by Geomet s.r.o. in respect of the Cinovec Lithium Project in the Czech Republic .

 The Project, a joint venture between European Metals and CEZ, has been recently funded to the amount of approximately EUR 29m, taking the Project through to construction decision and the purpose of the financing agreement with EIT InnoEnergy (the Agreement) is to support the construction financing and ultimate commercialisation of Cinovec, the largest hard rock Lithium deposit in Europe, by EIT InnoEnergy providing assistance to EMH to support the:

 o  Sourcing construction finance;

o  Securing grant funding; and

o  Assisting in offtake introductions and negotiations.

 

Uniphar 1.865p £509m (UPR.L)

Uniphar plc an international diversified healthcare services business servicing the requirements of more than 200 multinational pharmaceutical and medical technology manufacturers today announces the following unaudited trading update for the six months ended 30 June 2020.

 The Group’s latest guidance as per our AGM Statement of 26 May remains unchanged. The business has performed in line with expectations for the six months to June 2020 at both a gross profit and EBITDA level. While the COVID-19 trading environment has given rise to significant challenges, it has also created several opportunities for growth across all three divisions. These new opportunities, coupled with over performance in certain service offerings, has resulted in the group delivering overall organic gross profit growth of 5% for the first half of 2020.

 

Flowtech Fluidpower 76.4p £47m (FLO.L)

Trading update — !Revenue for the six-month period to June 2020 was down £13.0m, or 22% on a like for like trading day basis. Q2 was the most materially affected by COVID-19, down 33% against prior year.  April’s revenue was the most impacted, down 41% on a like-for-like basis, as a large proportion of our customers were closed.  However, we are pleased to report their gradual return resulted in an improving trend, with the like-for-like revenue down 34% and 25% in May and June, respectively.

 All our key customers have now returned, our supply chain is functioning effectively, and the trends remain encouraging, with July revenue approximately 15% ahead of the same point in June.  As a result, we have welcomed back a number of UK furloughed employees and now have only 43 furloughed compared with a peak of 189 in April.”

“We reacted quickly to the unforeseen demands caused by COVID-19 and managed our trading and cash performance effectively. Entering the second half of the year we look forward to improving trading conditions.  This coupled with our ongoing restructuring activities, should result in a profitable and cash generative second half of 2020.”

 

Open Orphan 13.35p £88.9m (ORPH.L)

The specialist CRO pharmaceutical services company which is the world leader in the testing of vaccines and antivirals using human challenge clinical trials announced a new contract with Codagenix Inc.  to conduct a first in human (Phase I) trial evaluating safety and immunogenicity of a single-dose, intranasal SARS-CoV-2 (COVID-19) vaccine candidate in 48 healthy young adult volunteers. 

“hVIVO, with its unique quarantine facility, is one of the few organisations in the world that has now publicly stated that it is working on testing COVID-19 vaccines for efficacy using human challenge model clinical trials.

 Today’s announcement also shows that hVIVO’s quarantine facility is uniquely suited to conducting Phase I studies for infectious disease vaccines such as this.”

 

Wameja 5.75p £69.6m (WJA.L)

The second quarter saw a significant increase in growth in Gross Value Flows across both its bank and MTO network. Contrary to Q1 2020, Q2 saw a near equal weighting in the growth between HomeSend’s bank and MTO network due to the growth in a few recently integrated MTOs and an increase in demand generally for person-to-person transfer delivery during COVID-19. This near equal weighting in growth explains the relatively minimal change compared to Q1 2020 in Average Transaction Value and the Payments terminating to a bank account on the HomeSend network as a percentage of Gross Value Flows, compared to the change in Gross Value Flows during the period.

The increase in Gross Value Flows during the quarter led to HomeSend requiring the 15M loan facility from Mastercard at the end of June 2020. 

HomeSend maintains its intention to review its business plan towards the end of Q3 2020, to ensure that HomeSend is structured for any acceleration in its increasing customer base and volume growth. 

 

Synectics 138.44p £23.6m (SNX.L)

The specialist  in the design, integration and support of advanced security and surveillance systems, announces contracts for the Irish Republic’s National Transport Authority (NTA) with an aggregate value in excess of £1.0 million. 

The contracts will see Synectics’ Security division provide, install and maintain safety critical on-board surveillance systems for Irish-based bus operators Dublin Bus and Bus Eireann as the NTA transitions to low emission and electric buses.

 

Head Chef:

Derren Nathan
0203 764 2344
derren.nathan@hybridan.com

*A corporate client of Hybridan LLP

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