Small Cap Feast

Small Cap Feast – 6th May 2022

Dish of the Day:

Kendrick Resources (KEN.L), a mineral exploration and development company, with projects in Scandinavia has joined the Main Market (standard) raising £3.25m. With effect from Admission, Kendrick will have vanadium exploration projects in Finland, and Sweden with an option over 3 further nickel projects in Norway under the EMX Option Agreement. The Projects have three defined Mineral Resources.

Off the Menu:

No Leavers Today.

What’s Cooking in the IPO Kitchen?

GS Chain, a company established with the purpose of undertaking acquisitions of an interest in an operating company or business in the technology sector, intends to list on the Main Market (Standard). Timing TBC.
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. Timing TBC

Breakfast Buffet

Agronomics 20.25p £198m (ANIC.L)

The listed company focused on the field of cellular agriculture, has invested a further US$2m into Chinese cultivated meat company CellX Limited, subscribing for 857,363 preferred shares. CellX is a leading cultivated meat company based in Shanghai. Agronomics will have a 5.14% equity ownership in CellX, on a fully diluted basis. The Subscription will be made using cash from the Company’s own resources. Agronomics first invested in CellX in December 2020, with a US$50k investment in the form of a SAFE (Simple Agreement for Future Equity). This SAFE converted to 230,681 preferred shares as stated in the 28th May 2021 announcement. Subject to audit, in aggregate, Agronomics will now carry the combined position in its accounts at a book value of US$2,538,117, including an unrealised gain on cost of US$488,117, representing an internal rate of return of 458% and a multiple on invested capital of 10.76 of the initial US$50k investment. The CellX position in the Agronomics portfolio will represent approximately 1.40% of last reported Net Asset Value.

CVS Group 1,666p £1,184m (CVSG.L)

CVS, the AIM-quoted veterinary group and one of the UK’s leading providers of integrated veterinary services, announces that on 5 May 2022 it acquired the entire share capital of Anton Vets Ltd, a single site veterinary practice in Andover, Hampshire for consideration of c.£6m. The consideration is being funded using the Group’s existing bank facilities.

Fusion Antibodies 67p £17.4m (FAB.L)

The specialists in pre-clinical antibody discovery, engineering and supply for both therapeutic drug and diagnostic applications, provides an unaudited trading update for the year ended 31 March 2022. Revenue growth was achieved in both H1 and H2 of FY2022 compared to the comparable periods in the previous financial year, with an unaudited revenue of £4.8m, representing a 14% increase on FY2021. Revenues have grown in all geographical regions and Transient Expression has delivered the highest performance of all our service areas. The Company continued to meet the challenges presented as a result of the COVID-19 pandemic, which affected the whole financial period, and to trade throughout the periods of national governmental restrictions. The number of customer enquiries being received for all of the Company’s services remains strong, and in H2 of FY2022 the Company strengthened its commercial team with a view to future success. The cash balance at the year-end was £2m and the Directors believe that this is sufficient for meeting the Company’s current requirements. The Directors further believe that the above results provide a good platform for continued growth in financial performance.

Kinovo 20p £12.4m (KINO.L)

The specialist property services Group that delivers compliance and sustainability solutions, provides a trading update for the year ending 31 March 2022. In the 12 month period to 31 March 2022 the Company performed well following a year of Covid-related disruption, winning new contracts and revenue streams under its three strategic pillars of Regulation, Regeneration and Renewables. This performance has been achieved despite challenges posed by supply chain disruptions and labour availability. Kinovo has continued to build on its strong client relationships, adding new workstreams under existing contracts due to our track record of delivering excellence in both quality and service. Revenues, for Continuing operations, during the period increased by 36% to £53.5m (2021: £39.4m), while Adjusted EBITDA (after the effect of a charge for lease payments) rose by 100% to £4.2m (2021: £2.1m). Net debt fell to £0.3m at 31 March 2022 (31 March 2021: £2.7m) including cash balances of £2.5m (31 March 2021: £1.3m).

Netscientific 78p £16.5m (NSCI.L)

The international life sciences and sustainability technology investment and commercialisation Group announces the conditional acquisition of a 30% stake in Vortex Biotech Holdings Ltd. Highlights: Group regains a significant stake in Vortex with a matured technology platform. Board believes substantial upside potential through a multi-pronged growth strategy focused on product and cartridge sales, launching a services lab business, and exploring liquid biopsy opportunities. Vortex active in the multi-billion oncology research and liquid biopsy markets, which are estimated to grow at 10-14% per annum.

Origin Enterprises 413c EUR506m (OGN.L)

Origin Enterprises plc today issues a trading update and earnings guidance for the year to 31 July 2022 in advance of its Capital Markets Day on 10 May 2022. This update is provided before the Group’s third quarter trading update, for the period to 30 April 2022, which will be published on 15 June 2022. As outlined in the Trading Update of 8 April 2022, the Group experienced strong trading across all three segments, which has continued through Q3. The war in Ukraine and ongoing global energy and supply challenges have resulted in exceptional price volatility for both agricultural outputs and fertiliser raw materials. Continued strong on-farm sentiment and favourable weather conditions in the key application window have supported Origin in successfully navigating this price volatility across all segments. As a result, the Group now expects to deliver higher full year fully adjusted diluted earnings per share for FY 2022 in the range of 49 to 57 cent (excluding any impact of the on-going share buyback programme). Origin Enterprises plc is an international Agri-Services group, providing specialist agronomy advice, crop inputs and digital agricultural solutions to farmers, growers, landscapers and amenity professionals.

Powerhouse Energy 1.97p £78m (PHE.L)

The UK technology company commercialising hydrogen production from plastic, provides an operational update. Further to the recent appointment of Paul Drennan-Durose as Chief Executive Officer, the management team has been working closely, and collaboratively, with Peel NRE Ltd.’s leadership team on their Protos plant project in the UK, and the Company has been very much involved in their process of selecting world class construction partners for the ultimate build phase, and the financial assessment of the SPV business plan. In addition to this, the new CEO has been leading the Company’s management team, meeting other members of the international waste and hydrogen ecosystem Powerhouse operates within, including premium grade suppliers, other technologists, and potential project partners, to explore other potential routes for the Company to develop technology, and to commercialise the group. As well as this, management is actively scoping opportunities to further develop the technology readiness level of its offering, and to showcase this across international platforms. The Company has been examining and reviewing the Powerhouse business and its operations, with a view to setting out in the near future an evolved business model, to seek optimal results and value for all stakeholders. The Company plans to be in a position to share this, and other developments, with investors in more detailed announcements shortly, and the strategic path at or around the time of the next AGM.

Revolution Beauty 113.25p £351m (REVB.L)

The global multi-brand, multi-category mass beauty innovator, updated on trading for the year ended 28 February 2022. Revolution Beauty has experienced continued positive momentum in H2 2022. The Group reports, subject to audit, revenue of c. £194m up 42% versus 12 mth ending Feb 2021, and Adjusted EBITDA c. £22m up 73% versus 12mth ending Feb 2021. This performance was achieved against a background of inflationary pressures last year, including freight and pandemic related volatility. Revolution Beauty’s performance was underpinned by the company’s geographic and category mix.

Thor Mining 0.77p £15.7m (THR.L)

A groundbased electromagnetic survey over the nickel gossan now referred to as the Krona Prospect has commenced at the Company’s 100% owned Ragged Range Project, located in the Eastern Pilbara, Western Australia. Project highlights: A high-powered Fixed Loop Electromagnetics ground geophysics survey has commenced at the Krona Prospect, extending over the untested nickel gossan located in the western portion of the tenure. The survey is designed to detect conductive anomalies at depth that may indicate the presence of nickel sulphide mineralisation. The nickel gossan is located at the basal conduct of the Dalton Suite ultramafic unit (altered Archean Komatiite) in the classic location for nickel sulphide mineralisation. Lithium: Concurrently the Thor team is on the ground mapping and sampling several lithium targets, including potential lithium-caesium-tantalum pegmatites which have been identified within the prospective 10km radius of the Split Rock Supersuite at Thor’s Ragged Range Project. Gold: Final preparations are in place to commence the second phase of RC drilling at the Sterling Gold Prospect.

Westminster Group 2.35p £7.78m (WSG.L)

The supplier of managed services and technology-based security solutions worldwide, announced that its Technology Division has been awarded a contract to supply and install advanced screening solutions to a West African Parliament building. The contract, valued at over £300k involves the supply and installation of an advanced people and baggage screening solution within a West African Parliament building in order to detect any weapons, threats or contraband being carried into the building. The project is to commence immediately and is expected to be completed within the next few months.

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