Small Cap Feast

Small Cap Feast – 28th June 2022

Dish of the Day:

No Joiners Today

Off the Menu:

Raven Property Group has left the Main Market.

What’s Cooking in the IPO Kitchen?

Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide customers with an overdraft facility without having to change their current account or request an overdraft from their existing bank. Fiinu’s technology arm manages and develops the platform, using open banking, and once the platform is fully operational will also look to develop secondary revenue streams by licensing Fiinu’s intellectual property rights. Capital to be raised £8.01m. Target Mkt Cap c.£53m. Due 8 July
Visum Technologies seeking admission to The AQSE Growth Market. The Company’s business is to own and operate an “on-ride” video and photographic camera system that it sells and/or licenses to customers (being theme parks, ride manufacturers, souvenir imaging providers, and other leisure operators). Due 30 June.
LifeSafe Holdings, a fire safety technology business with innovative fire safety products, intends to join AIM. LifeSafe has developed what the Directors believe to be market disrupting, eco-friendly fire safety protection products to both protect (via fire extinguishers) and detect (via carbon monoxide, smoke and heat alarms) fires. At the centre of the Group’s product range is the FER1000 extinguishing fluid, which has been developed by LifeSafe to extinguish five different types of fire: electrical, paper, textiles, cooking oil, and petrol and diesel. The Group’s best-selling product using this patent pending extinguishing fluid is the StaySafe 5-in-1 fire extinguisher. It was launched on Amazon Prime in the UK in August 2021 and subsequently became Amazon Prime’s top selling fire extinguisher in the UK in the same month. In n the year ended 31 December 2021, the Group generated revenues of £670k and a loss post taxation of £1.5m. £3m to be raised. Due early July 2022.
Altona Rare Earths, the AQSE listed mining exploration Company focused on the evaluation, acquisition and development of Rare Earth Elements mining projects in Africa, intends to join the Main Market. Admission to trading of the Company’s Ordinary Shares on the AQSE Growth Market will be cancelled simultaneously with Admission. It is also proposed that on Admission, the Company will change its EPIC from AQSE:ANR to REE. The Company also seeks to raise funds to finance its current and future rare earths mining projects in Southern and Eastern Africa. Due June 2022.

Breakfast Buffet

Ceres Power 590.8p £1,131.8m (CWR.L)

Ceres, a global leader in fuel cell and electrochemical technology, has signed an agreement with Shell to deliver a megawatt scale solid oxide electrolyser (SOEC) demonstrator in 2023. Shell and Ceres are building this partnership to utilise SOEC technology to deliver high-efficiency, low-cost green hydrogen; now widely viewed as a credible route to decarbonise hard-to-abate parts of the energy system that rely on fossil fuels today. Shell is targeting to become a net-zero energy business by 2050, by reducing emissions from its operations and from the fuels and other energy products it sells to its customers. Ceres aims to produce hydrogen at efficiencies around 20% greater than other technologies, in the range of mid-80s to 90% efficiency where it is possible to make use of waste heat in industrial processes to drive high efficiency. Ceres has committed £100m for the development of its SOEC technology – with the aim of achieving a market-leading levelised cost of hydrogen of $1.5/kg by 2025. The agreement with Shell aligns with Ceres’ business strategy and provides a pathway to the commercialisation and development of new markets.

Crossword Cybersecurity* 28p £21.1m (CCS.L)

The cybersecurity solutions company focused on cyber strategy and risk, has announced the creation of a new integrated Supply Chain Cyber practice. In response to client demand and the substantial increase in supply chain cyber threat levels, the integrated practice provides a set of controls, processes and tools, along with a range of managed services, advice and training to massively reduce the risk of direct cyber-attacks as well as threats via third parties across a company’s supply chain. The practice provides an end-to-end approach to supply chain cybersecurity and includes a standard operating model (SOM) and a substantially updated version of Rizikon Assurance, Crossword’s SaaS platform used by supplier management and cybersecurity teams and across an organisation to underpin the controls, tools and data needed to reduce supply chain risk. Updated Rizikon features include automated assurance, flexible reporting and new dashboards that improve supply chain cyber assurance, risk and compliance strategy, policy and operations. Experienced cybersecurity consultant, Ryan King, has been appointed as Practice Lead and is supported by a dedicated team of experts specialising in supply chain cyber risk.

DeepMatter Group 0.12p £4.6m (DMTR.L)

The digital chemistry data and software company, has acquired ChemIntelligence SAS in a transaction valuing the business at up to £0.42m. ChemIntelligence (https://chemintelligence.com/) has artificial intelligence (AI) that is used to develop chemical products and reactions faster. The business is based in Lyon, a city known as a digital centre and its strong links to France’s Chemistry Valley. The acquisition brings intellectual property and expertise that complements the Group’s chemical reaction data, data collection platform and AI capabilities. It will also broaden Deepmatter’s technical expertise in chemical formulation, which will enable the Group to expand its offering and address a broader customer base. The two businesses will benefit from combined sales and marketing, operations, customer support and research resources. ChemIntelligence enables the prediction of the properties of molecules, materials and formulations, suggesting the most relevant experiments to perform in a secure, certified end-to-end cloud environment. ChemIntelligence unaudited revenue for the financial year ended 31 December 2021 was EUR0.12m, with profit before tax of EUR0.02m. The gross assets of the Company as at 31 December 2021 were EUR0.12m.

Everyman Media 109p £99.4m (EMAN.L)

The independent, premium cinema group, announces that William (Will) Worsdell ACA, who currently holds the role of finance director at the Company, will continue to oversee the financial activities of the Group, assuming an Executive Director position and joining the Board with immediate effect. Will joined Everyman in early May 2022, having previously held senior financial roles at several leisure and hospitality businesses including Head of Commercial Finance at Côte Brasserie. Previously, Will also worked in financial and operational planning at Heathrow for three years. Will qualified as a chartered accountant in 2014.

Getech 23.5p £15.8m (GTC.L)

Getech, a geoenergy and green hydrogen company, has signed a 5-year extension to a multi-faceted geospatial services contract with a customer of its transitional petroleum division. The new contract has a total value of £1.65m. Services provided by Getech will include the design, implementation and management of geospatial operating systems that are essential for aboveground safety, environmental protection, and security on a large and complex asset. Adjusting the end-2021 order book position for contracts that have since converted to revenue in H1 2022, this new contract delivers significant growth in the value of Getech’s current total order book – adding material recurring revenue over the next five years.

Jadestone Energy 82.5p £384.2m (JSE.L)

The independent oil and gas production company focused on the Asia-Pacific region, announced the appointment of Bert-Jaap Dijkstra as Chief Financial Officer and director of the Company, effective 1 September 2022. Mr Dijkstra joins Jadestone from SBM Offshore, where he held a number of finance and management roles since 2013. Most recently he served as Group Treasurer and Director of Investor Relations. He has been directly responsible for managing all financing activities for SBM Offshore, including structuring c.US$5bln in recent project financings, managing the group’s financial risk (including hedging programmes), optimisation of funding sources and corporate finance. He was voted best investor relations professional for the energy services sector in the 2019 Extel and in the 2020 and 2021 Institutional Investor surveys.

Kibo Energy* 0.1p £3.2m (KIBO.L)

Kibo has reported its results for the Year Ended 31 December 2021. Total revenues were £3,245 (2020: £nil) with an operating loss £24m (2020:6,473,547 loss). There was a £20,705,209 impairment loss on Mbeya Coal to Power and Mabesekwa Coal to Power projects as a result of the continuing global shift to move toward renewable energy and disregard fossil fuel assets, coupled with the Group’s execution of its renewable energy strategy during the 2021 financial period. The Company’s intention to dispose of coal assets in accordance with a disposal strategy that will realise value for shareholders. Renewable projects include an agreement to jointly develop a portfolio of Waste to Energy projects in South Africa with Industrial Green Energy Solutions (Pty) Ltd, which will initially develop a phased c. 8MW project for an industrial client, to be followed by six other projects at different sites, to a total generation of up to 50MW.

Mediazest* 0.08p £1.2m (MDZ.L)

HY Mar 22 results from the creative audio-visual company. Revenue for the Period was £1,402,000, up 66% (2021: £846k) due to covid-19 restrictions easing and client projects resuming. Gross profit was up by 84% accordingly to £756k (2021: £410k). EBITDA was a profit of £138k (2021: loss of £49k). Net profit for the period after taxation was £40k (2021: loss of £160k). Cash and cash equivalents at 31 March 2022 was £46k (2021: £16k). The progress over the last 12 months and the outlook for the remainder of the financial year is encouraging. Long-term clients continue to look to expand the range and number of deployments with the Group, reflective of the high standard of delivery. At a strategic level, the Board believes adding scale to the current operational business via acquisition would unlock shareholder value and the Group continues to evaluate potential targets.

Symphony Environmental Technologies* 18.8p £33.1m (SYM.L)

The global specialist in technologies that make plastic and rubber products smarter, safer and more sustainable announced a supply agreement for its d2p antimicrobial technology with Grupo Bimbo, for its manufacturers. The Agreement represents a major commercial advance in relation to d2p. Grupo Bimbo is the largest bread manufacturer in the western world. Following extensive trials of d2p-enhanced plastic bread packaging, Symphony has agreed to supply its d2p antimicrobial masterbatch to their nominated bread packaging manufacturers across the whole of the American continent for a period of 3 years (extendable by agreement). The supply of d2p in the USA (the western world’s largest bread market), and in Canada, and Mexico will be exclusive, and Grupo Bimbo has first-refusal for other countries in the Americas.

Tribal Group 90p £189.5m (TRB.L)

The leading provider of software and services to the international education market has signed 3 further Cloud contracts for existing customers, University of Sunderland, Birmingham City University and University for the Creative Arts, to migrate their current Tribal Student Management Systems SITS:Vision to the Tribal:Cloud, providing an improved student experience and delivering operational efficiencies for the universities. The contracts range from 3 to 5 years, with a combined total contract value of £5m. Sales momentum has continued to be positive, and the Group now expects revenue for the year ending 31 December 2022 to be marginally ahead of current Board expectations and EBITDA to be broadly in line.

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

Disclaimer

This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.

The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.

The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).

Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.

This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.

Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.

Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.

MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.

Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.

If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe me”.