Small Cap Feast

Small Cap Feast – 28th 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

Altitude Group 26p £18.4m (ALT.L)

The Group has announced results for the year ended 31 March 2022. Revenues increased by 54.9% to £11.9m (2021: £7.7m). Services revenue grew by 17.3%, surpassing the industry average. Adjusted operating profit increased 90.2% to £1.1m (2021: £0.6m). The Group held a cash balance at year end of £0.9m (2021 £2.1m), down from £1.6m at 30 June 2022. AIM membership has continued to grow, and currently totals 2,425 global members, up from 1,917 at acquisition. The Board is confident in the scalability of the business and the management team’s ability to execute upon the Group’s strategy

Cambridge Cognition 135.5p £42.2m (COG.L)

The developer of digital solutions to assess brain health, announces two agreements for post-traumatic stress disorder (PTSD) with a top 10 pharmaceutical company and the United States Department of Defense. The United States Department of Defense is developing a precision medicine approach to PTSD. Cambridge Cognition has been selected as a cognitive assessment provider for the project because CANTABTM offers accurate measurement of the potentially distinct pathophysiological processes involved in PTSD. In the contract with the top 10 pharmaceutical company, Cambridge Cognition will provide CANTABTM as an exploratory endpoint.

Epwin Group 77.5p £112.3m (EPWN.L)

The manufacturer of energy efficient and low maintenance building products, announces its half-year trading update. Revenues were 13% ahead of 2021 comparative period at £178m. Covenant net debt at 30 June 2022 has reduced to £7.3m (31 December 2021: £9.4m) which is 0.3x adjusted EBITDA, providing the Group with in excess of £65m of headroom on its facilities. Raw material costs continued to increase in the first half. Despite the supply chain disruption, the Group has been able to secure sufficient raw materials to meet demand and expects to be able to continue to do so. The Board remains confident of achieving expectations in 2022.

Fintel 202.5p £209.1m (FNTL.L)

A provider of fintech and support services to the UK Retail Financial Services sector today issues a trading update for the six months ended 30 June 2022. Total revenue growth of 2% to £32.2m (HY21: £31.7m). Adjusted EBITDA up 5% to £8.7m (HY21: £8.3m). £7.6m cash and an undrawn £45m Revolving Credit Facility provides financial resources to fund growth both through organic investment and strategic acquisitions.

Fusion Antibodies 49p £12.7m (FAB.L)

The specialists in pre-clinical antibody discovery, engineering and supply for both therapeutic drug and diagnostic applications, announces the appointment of Dr Adrian Kinkaid as Chief Executive Officer, effective from Monday 15 August 2022. Adrian Kinkaid is a seasoned life sciences executive with 25 years’ experience in life science and biotherapeutics industries. He joins Fusion from Vortex Liquid Biopsy Solutions Ltd and Vortex Biosciences Inc.

Hotel Chocolat 135.5p £186.1m (HOTC.L)

The premium chocolate brand, announces that Hotel Chocolat KK (HCKK), a Japanese joint venture 20% owned by the Group, has obtained Court approval for civil rehabilitation restructuring proceedings (Minji Saisei), pursuant to seeking new sources of capital. The Group had loaned £23m to HCKK in 2018-2022 as working capital. In addition, the Group has entered into guarantee arrangements of up to £5.8m for loans made to HCKK by Japanese leasing companies. The Board has previously acknowledged the potential for a full impairment charge in the FY22 accounts, under IFRS9 relating to revised assessment of probability of recovery on £23m of loans made to HCKK in 2018-2022.

Pod Point 108.8p £166.8m (PODP.L)

The UK-based EV charging solutions provider announces its unaudited half-year results for the period ended 30 June 2022. Revenue grew 57% to £41.6m (H1 2021: £26.5m). Adjusted EBITDA loss of £1.4m (H1 2021: +£0.5m) was a result of reduced gross margin due to higher component costs and the costs of being a listed business. Closing cash was £82.1m. Over 45k charge points installed and shipped in H1 2022 (H1 2021: 27,554), with market share in home charging up by to 22% in H1 2022 (H1 2021: 17%) driven by new deals with car manufacturers and operators of business car fleets.

Sareum Holdings* 197.5p £134.4m (SAR.L)

The specialist drug development company, announces that it has submitted an application for a Clinical Trial Authorisation (CTA) to the UK Medicines and Healthcare Products Regulatory Agency (MHRA) for the development of SDC-1801 as a potential new therapeutic for a range of autoimmune diseases with a focus on psoriasis. The company plans to initiate Phase 1 clinical trials in 2022, with a study in psoriasis targeted for 2023. A presentation to investors will take place on 4 August 2022 at 10.00am via the Investor Meet Company platform. Existing and potential investors wishing to participate in the presentation can register here .

Thor Mining 0.5p £9.6m (THR.L)

The gold and tungsten exploration and development company announced the drill results of the diamond drilling program at the 100% owned Molyhil Critical Minerals Project, Northern Territory. Two of the three diamond drill holes completed in late 2021 intercepted disseminated scheelite-molybdenite-chalcopyrite mineralisation hosted in a massive magnetite skarn, validating a newly identified 3D magnetic target. The drilling demonstrates that tungsten-molybdenum-copper skarn mineralisation extends along strike, to the south of the Molyhil Resource. Assay results were lower than visible grade estimates and the samples have been resubmitted for analysis using two different analytical techniques, with further follow up using the coarse reject material.

Virgin Wines 67p £37.4m (VINO.L)

The direct-to-consumer online wine retailers provides a trading update for the year ended 30 June 2022. Total revenue reached £69m (FY21: £73.6m). EBITDA post IFRS was £6.3m (FY21: £7m). Net cash was £7.8m (excluding customers’ WineBank funds) as at 30 June 2022 (FY21: £8.4m). Membership of WineBank (main subscription scheme) increased 8% YOY and revenue from WineBank customers increased 21% YOY. The Group’s focus has been on customer acquisition during the year: 105k new customers acquired across all schemes, 5% ahead of expectations, with cost per recruit below budget and FY21 levels. Q422 customer acquisition are 37% ahead YOY and there is a comprehensive pipeline of new partnership opportunities, giving optimism for the FY23 customer acquisition strategy.

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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

*A corporate client of Hybridan LLP

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