Latest Small Cap Feast

Small Cap Feast

Small Cap Feast – 19th August 2022

Dish of the Day:

No joiners today

Off the Menu:

No leavers today

What’s Cooking in the IPO Kitchen?

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. Due 26th August.
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 September.
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. Raised £1.1m. Expected late September.

Breakfast Buffet

Advanced Oncotherapy 21p £105.3m (AVO.L)

The developer of LIGHT, the next-generation proton therapy system for cancer treatment, announces an equity fundraise of £1.465m before expenses. The fundraise has been conducted through a direct subscription for a total of 5,860,000 new ordinary shares at a price of 25p per share, with a premium of 20% to the closing middle market price of an ordinary share on 18 August 2022. This subscription has been undertaken to accommodate demand from investors who were unable to participate in fundraises announced on 28 June 2022 and 3 August 2022 (together c.£6.57m).

Altona Rare Earths 7.7p £2.9m (AQSE: ANR)

The mining exploration company focused on rare earth elements in Africa, announces it has conditionally raised £1.1m, via a placing of 13,750,000 million new ordinary shares at 8p each. The placing is conditional on, inter alia, the company’s admission of its entire ordinary share capital to the Official List and to trading on the London Stock Exchange’s Main Market for listed securities, which is expected by the end of September. Consequently, the new ordinary shares will not be issued until Admission and the total number ordinary shares currently issued remains 37,484,999.

Beowulf Mining 5.4p £44.9m (BEM.L)

The mineral exploration and development company announces its unaudited financial results for the six months ended 30 June 2022 (H1 FY22). The consolidated loss was £684k, comparable to the H1 FY21 loss of £715k. The company exited the period with a cash balance of £1.9m (Q2 2021: £4.4m). On 4 July 2022, the company announced a loan financing from a Nordic institutional investor of SEK 22m (approximately £1.76m) before expenses. The funding will be used to achieve project milestones, with a focus on the iron ore project in Kallak.

Jade Road Investments* 6.5p £7.5m (JADE.L)

The London quoted pan-Asian diversified investment vehicle focused on providing shareholders with attractive uncorrelated, risk-adjusted long-term returns, announce that further to its previous announcements on the 22nd of June 2022 and the 20th of July 2022, the third and final Tranche payment of US$400k has been received from Meize Energy Industries Holdings Limited (Meize), thereby completing the partial divestment of JADE’s holding in Meize. Following this transaction, JADE retains a 6.3% stake in Meize.

Joules Group 28.4p £31.9m (JOUL.L)

The premium British lifestyle group provides a business update post the end of its financial year to 31 May 2022. The previous trading update on 19 July 2022 reported significant pressure on gross margins. Over the subsequent 5 weeks (to 14 August), trading has softened materially. The extremely warm and dry weather has adversely affected sales of core categories such as wellies and has compounded the ongoing subdued consumer demand. This has resulted in an 8% year-on-year reduction in retail sales and a 6% decline in retail margin during the 11 weeks of the current financial year to date. The Board currently expects a full year loss before tax, and before adjusting items, significantly below current market expectations.

Kinovo 33p £20.5m (KINO.L)

The specialist property services group that delivers compliance and sustainability solutions, announces its results for the year ended 31 March 2022: revenue from continuing operations up by 35% to £53.3m (2021: £39.4m) and adjusted EBITDA from continuing operations up 102% to £4.2m (2021: £2.1m). The company is confident that 2022/23 will be another year of strong financial performance with quarter one adjusted EBITDA 24% ahead of prior year. Meanwhile, the intended disposal of DCB (Kent) Limited to MCG Global Limited is still ongoing.

Made Tech Group 34.5p £51.1m (MTEC.L)

The provider of digital, data and technology services to the UK public sector, announce a trading update for the year ended 31 May 2022 (FY22): revenue of £29.3m, up 120% and adjusted EBITDA of £2.6m (FY21: loss of £0.5m). Contracted backlog stood at £38.2m, up 133% from £16.4m in FY21. Recently announced contracts include a £19m contract with NHS Digital and a contract with the Met Office for no less than £7m. The robust pipeline and record sales bookings underpin the Board’s confidence in the business for the current financial year (FY23) and beyond.

Smoove 59.6p £38.7m (SMV.L)

The customer focused technology and services business aiming to simplify and revolutionise home moving and ownership, announces that it has re-contracted with the Lloyds Banking Group (LBG) for the provision of conveyancing services for a further 2 years. This contract builds on the Company’s 15-year relationship with LBG and highlights the strength of its market leading offering. Under this contract, Smoove will continue to provide LBG and its customers with bespoke conveyancing products and services via digital platforms throughout the UK.

Strip Tinning Holdings 72.5p £11.0m (STG.L)

The supplier of specialist connectors to the automotive sector, announces that its wholly owned subsidiary, Strip Tinning Limited (STL) has received notice purporting to terminate its contract with a Croatian electric vehicle (EV) company for the supply of cell management systems to a leading German OEM, with effect from 1st October 2022. The 5-year supply agreement is worth EUR2m per annum to STL at peak volumes, with production ramp up starting in H2 2023. Whilst the loss of the contract would have no material impact on market expectations for the current financial year, the customer had recently indicated that volumes were likely to be increased by 33% over the life of the project and STL had adjusted plans with capital equipment suppliers to accommodate this.

TMT Investments* $4.9 $155.4m (TMT.L)

The venture capital company investing in high-growth technology companies, announces that it was notified that on 18 August 2022 Alexander Selegenev, the Company’s Executive Director, and Macmillan Trading Company Limited, owned by German Kaplun, Artemii Iniutin and Alexander Morgulchik, agreed to acquire 28,572 and 57,143 ordinary shares of no par value each in the Company respectively at a price of US$3.50 per share. The ordinary shares are to be acquired from Eclectic Capital Limited.

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”.