Small Cap Feast

Small Cap Feast – 16 November 2021

Dish of the Day:

Pantheon Infrastructure (PINT) has joined the Main Market (Premium). PINT.L will make investments in private infrastructure assets. Pantheon raised gross proceeds of £400m, through its Placing, Offer for Subscription and Intermediaries Offer at an issue price of 100 pence per share.

 

Off the Menu:

No Leavers Today

 

What’s Cooking in the IPO Kitchen?

Gelion to join AIM. UK-Australian energy-storage innovator founded in 2015 by Professor Thomas Maschmeyer as a spin-out from the University of Sydney, Australia’s first university. Due late Nov on AIM. Offer TBC.

Ashtead Tech, subsea equipment rental and solutions provider for the global offshore energy sector to join AIM. The Directors have a high degree of confidence in the Group achieving no less than £52m of revenue, £21.5m of adjusted EBITDA for FY21 Due 23 Nov. Offer TBA.

Atrato Onsite Energy, a new closed-ended investment company established to invest in a diversified portfolio of onsite renewable energy assets  to join the Main Market (Premium). Targeting a £150m raise. Due by 23  Nov.

Eneraqua Technologies to join AIM. The Group is a specialist in energy and water efficiency. The principal activity of the Group is the provision of turnkey solutions for decarbonisation through heating and hot water systems for multiple occupancy social housing and commercial projects. Capital to be raised on Admission: £12m primary and £8m secondary. Anticipated Mkt Cap on Admission: £92.0m.  Due 22 Nov.

DSW Capital to join AIM. DSW is a challenger mid-market professional services business headquartered in the Northwest of England. DSW operates a licencing model and licences the DSW and associated brand names in return for a royalty based on a percentage of fee income.  Due early Dec. Raising £5m.

Spiritus Mundi due to join the Main Market (Standard), a special purpose acquisition vehicle which will seek acquisition targets in Europe and Asia in the clinical diagnostics sector. The Company has already raised approximately £1.2m in a pre-IPO fundraising round.

Recycling Tech Group to join AIM, a UK-based engineering, research and manufacturing company that has developed a modular and mass producible machine, the RT7000, which processes hard to recycle plastic waste into a synthetic oil that can be sold back to the petrochemicals industry as a chemical feedstock to make new plastics. Targeting a £40m raise. Due December.

Foresight Sustainable Forestry Company to join the Main Market (Premium),  an externally managed investment company that will invest in UK forestry and afforestation assets. Raising up to £200m. Due 24 Nov.

ATOME headquartered in Leeds, focussed on the large-scale production of green hydrogen and ammonia intends to join AIM towards the end of the year. ATOME intends to be spun-out from AIM-listed President Energy Plc, an oil and gas company which has incubated and financially supported ATOME to date, by way of a dividend in specie and flotation.

Life Science REIT to join AIM  raising up to £300m. This will be the first London listed real estate investment trust (REIT) focused on UK life science properties. Due 19 Nov.

Alinda Capital Infrastructure Investments to join the Specialist Fund Segment of the Main Market of the London Stock Exchange raising up to £350m. Due Late November.

Nu-Oil and Gas  to acquire Guardian Maritime Ltd and Guardian Barriers IP Ltd and become Guardian Global Security plc and join the Main Market (Standard). Guardian is a technology group that supplies products to prevent unauthorised entry into areas that are deemed to have value, with maritime security being the main focus initially. Q4 2021.

M7 Regional E-Warehouse REIT intends to apply for admission onto The Property Stock Exchange (Wholesale Segment). On Admission, the company plans to acquire a portfolio of UK retail warehouses worth £120m from M7 Real Estate Investment Partners VIII. The portfolio currently comprises 18 retail warehouse properties across the UK totalling 978,317 sq ft and fully let to 53 occupiers. Rent collections for Q2 2021 stand at 93% and are expected to revert to 100% in the coming quarters.

Central Copper Resources, a company focused on delivering a high grade copper project into production and exploration of assets in the DRC and in the Republic of Zambia to join AIM. By 2022, CCR intends to be ready to commence the project financing of its Mbamba Kilenda copper project. Due Mid Nov. Offer TBC.

 

Breakfast Buffet

Blackbird 32.25p £109.3m (BIRD.L)

The technology licensor, developer and seller of the market-leading cloud native video editing platform, Blackbird, announced today that Eurovision Sport has engaged with Blackbird to drive cloud native video production workflow efficiencies for its members in a multi-year deal. Eurovision Sport is utilising Blackbird for professional, collaborative and scalable cloud native video editing and publishing of sports content. Blackbird has been deployed to enable Eurovision Sport to complement its digital services, providing cloud native editing tools for its members to take advantage of within their media supply chains. Eurovision Sport – a division of the European Broadcasting Union  – manages the media rights for 17 sports on behalf of its public service media members, delivering up to 30,000 hours of sport a year through agreements with international sports federations.

 

D4t4 370.5p £149m (D4t4.L)

The data solutions provider has launched the latest version of its behavioural biometrics Celebrus Fraud Data Platform with the new features of Tamper-proof Geolocation, Time Series Anomaly Detection and Sense and Trace. The updates to Celebrus FDP are designed to ensure banks, insurance companies, retailers and other organisations can protect their consumers from online fraud while also providing a positive user experience. The platform was first released in June 2021 and has since been updated with advanced features to seamlessly prevent scams, given the proliferation of this type of fraud around the globe. With the continual development of technology, fraud happens faster than ever before, and organisations need better data to stop fraud attempts and deliver the positive customer experience that consumers expect. A study by Juniper Research predicts that online payment fraud losses will reach $206bn by 2025.

 

Filta Group Holdings 148p £43.1m (FLTA.L)

Filta Group gave a ESG Commitment and Trading Update. Filta, through its proprietary FiltaFry process, helped US customers save over 9m litres of cooking oil during 2020. Cooking oil recycling during 2020 delivered CO2 reduction of 26,500 tonnes. Second half trading for the Group has continued to be strong, posting record revenues for the third quarter and October, led by waste oil and equipment sales and installation. The Group is confident of a positive finish to the trading year and anticipates full year revenue and adjusted EBITDA will be slightly ahead of analyst forecasts.

 

IDOX 71.9p £320.3m (IDOX.L)

The supplier of specialist information management software and solutions to the public and asset intensive sectors, today issues a trading update for its financial year ended 31 October 2021. During the year the Group continued to sharpen its strategic focus and disposed of its Content division in two separate transactions. ‘Continuing The Group expects to report results for the year, in line with the Board’s expectations. Revenue increased by 8% to £62.0m (2020: £57.3m). Recurring revenue increased by 2% to £36.4m (2020: £35.7m). Adjusted EBITDA increased by 12% to £19.3m (2020: £17.2m). Total operations (including a contribution from the disposed Content businesses for 5 months in FY21) recorded revenues of £65.9m (2020: £68.0m) and adjusted EBITDA of £19.6m (2020: £19.6m). A material reduction in net debt at 31 October 2021 to £8.1m (2020: £16.1m). The company will pay a final dividend.

 

Kefi Copper and Gold 0.97p £20.8m (KEFI.L)

Following permission from the security authorities site preparations for project launch have recommenced for the Tulu Kapi Gold Project, majority-owned via KEFI subsidiary Tulu Kapi Gold Mines Share Company (TKGM). This includes district inspections by assessors for the financing syndicate and consultations with the community. As a prelude to the next stage of community preparations, the Company reported TKGM’s new binding agreement with the Ethiopian Evangelical Church of Mekane Yesus (EECMY).  EECMY will be one of KEFI’s long-term partners in TKGM and also will support community projects.

 

Helium One Global 7.25p £44.6m (HE1.L)

The primary helium explorer updated the market on progress of the Company’s Phase II 2D Seismic Campaign announced on 1st November 2021, with the announcement of commencement of Phase II 2D seismic acquisition, deployment of vibroseis trucks and nodes, and appointment of an expert Consultant Geophysicist to its Rukwa Project (100%) in Tanzania. Acquisition has commenced on the 200 line kilometre 2D seismic survey, targeting northern extensions of known structural highs that are believed to act as a charge focus for helium migration. Excellent ground conditions have facilitated rapid progress of surveying and line clearing activities. The acquisition of this Phase II seismic data will aim to enable the Company to define further drillable prospects, with potential for stacked targets to be tested in a planned 2022 drilling campaign. Continued good co-operation with government and local communities allowed seismic work to be fast tracked. Continued strengthening of Helium One operational team with appointment of Mark Beeson as Consultant Geophysicist.

 

LoopUp Group 23.25p £22.4m (LOOP.L)

The cloud platform for premium specialist communications announced eight additional direct customer contract wins in its Cloud Telephony business unit. In Q3 2020, the Group announced the launch of its internationally differentiated Cloud Telephony solution, integrated into Microsoft Teams via ‘Direct Routing’ peering with Microsoft. This global capability enables customers to make phone calls to external phone numbers and receive phone calls to their own work phone numbers, all directly from their Microsoft Teams user interfaces. According to the announcement, “The Group has now extended its number of new direct contract wins to 23 during 2021, an additional eight since our last update. These wins represent, in aggregate, total contract value ranging from a baseline minimum of £2.1m for initially committed and contracted deployment phases (a 24% increase since our last update) to an expected c.£7.9m should geographic rollouts proceed as expected (a 55% increase since our last update).”

 

musicMagpie 163.5p £176m (MMAG.L)

The  re-commerce business in the UK and US specialising in refurbished consumer technology announced the appointment of Matthew Fowler as Executive Director and Chief Financial Officer. Matthew’s start date at musicMagpie will be confirmed in due course and he shall join the Board upon appointment. This appointment follows Ian Storey’s promotion to Group Chief Operating Officer at the time of the IPO. Matthew joins musicMagpie from genedrive plc, an AIM-quoted molecular diagnostics company, where he has been CFO since 2016. Prior to joining genedrive, Matthew spent eight years as Group Financial Controller of Scapa Group plc, an AIM-quoted multinational manufacturing business. He previously spent three years at British Nuclear Group as Finance Manager, having trained and qualified in the audit department of Deloitte & Touche.

 

Yew Grove REIT 100p £106m (YEW.L)

Slate Office REIT and Yew Grove REIT plc have reached agreement on the terms of a cash offer by Slate Office Ireland Investment Limited (Bidco), pursuant to which Bidco, an indirect wholly owned subsidiary of Slate, would acquire the entire issued and to be issued share capital of Yew Grove at a price of EUR1.017 per share. The Cash Offer, if made, values the entire issued and to be issued share capital of Yew Grove at approximately EUR127.8m, which together with total reported borrowings at 30 June 2021 of EUR49.5m implies an acquisition enterprise value of EUR177.4m. The Cash Offer, if made, will represent a premium of approximately 1.7% to Yew Grove’s closing share price of EUR1.00 on 15 November 2021 (representing the last business day prior to the publication of this Announcement).

 

Zenova Group 20p £18.7m (ZED.L)

The  provider of innovative fire safety and heat management technology and products announced that its Zenova FP fire-resistant paint has been approved for use by the London Borough of Redbridge. Before Zenova FP can be used by a contractor in a local authority owned building, it must first be ‘specified’ for use as a fire protection product by the local authority. Zenova FP became specified as a fire-resistant paint by the London Borough of Redbridge after Pelling LLP, an award winning multi-disciplinary design, property and construction consultancy, included it in the specification for the refurbishment of Ilford High Road Deco Building.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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