Small Cap Feast

14th July 2022

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What’s Cooking In The IPO Kitchen?

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 22 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

ADM Energy* 0.9p £2.3m (ADME.L)

The natural resources investing company, yesterday noted that Panoro Energy ASA (OSE Ticker: PEN) had completed the sale of 100% of its ownership in OML 113 to PetroNor E&P Limited (OSE Ticker: PNOR). PetroNor agreed to acquire Panoro’s interest in OML 113 for an upfront consideration of USD 10m, with a contingent consideration of up to USD 16.67m based on future gas production volumes. Following completion, PetroNor holds a 6.502% participating interest, with 16.255% cost bearing interest, representing an economic interest of 12.1913% in OML 113. ADM Energy holds a 9.2% profit interest in the Aje field in OML 113, which covers an area of 835km squared offshore Nigeria. Aje has multiple oil, gas and gas condensate reservoirs in the Turonian, Cenomanian and Albian sandstones with 5 wells drilled to date. It currently has two producing wells, Aje-4 in the Cenomanian and Aje-5 in the Turonian.

Circassia 34p £142.6m (CIR.L)

The company engaged in the design, development and commercialisation of medical devices for asthma diagnosis and management, today announces a trading update for the six months ended 30 June 2022. Underlying revenue growth of 11% to £15.5m. Adjusted EBITDA of approximately £3.2m (H1 2021: EBITDA loss of £0.3m). A strong balance sheet with cash of £13.8m (31 December 2021: £12.6m). FDA approval for Beyond Air’s LungFit device, initiating total payments of $10.5m over the next three years, with $2.5m due in H2 2022.

Eleco 71.5p £59.5m (ELCO.L)

The construction software specialist, announced the appointment of Neil Pritchard as Chief Financial Officer and to the Board in October 2022. Neil Pritchard shall join from Corero Network Security plc, a global leader in real-time, high-performance, automatic DDoS cyber defence solutions. Neil has previously been Group Financial Director at London listed technology business CML Microsystems plc Group and, prior to this, Finance Director of the UK and Eire division of the DAX-listed group Continental AG. Neil also held senior financial positions with quoted companies Delta plc Group, now Valmont Industries, and Yule Catto & Co plc, renamed to Synthomer plc Group. He is a qualified chartered accountant, holding an FCA, having spent six years with KPMG London in audit, treasury and forensic transaction service roles. He holds an Economics and Politics degree from the University of Bath, UK.

Hardide 24p £13.4m (HDD.L)

The developer and provider of advanced surface coating technology, updated on trading for the third quarter of the financial year to 30 September 2022 and year to date. The improvements across the Company’s key markets reported in the Company’s results for the first half have continued in line with the Board’s expectations although, in recent weeks, there has been increased volatility emerging in demand driven by lengthened raw material lead times for customers, and certain project revenues scheduled for the final quarter may now be recognised in the next financial year starting 1 October 2022. Revenues for the year to 30 September 2022 are expected to be broadly in line with the Board’s expectations albeit with a slightly wider range of possible outcomes, which will also be reflected at the EBITDA level.

IQE 37.3p £299.7m (IQE.L)

The supplier of compound semiconductor wafer products and advanced material solutions to the global semiconductor industry , provided an unaudited pre-close Trading Update for the six months ended 30 June 2022. Trading for H1 2022 was in line with management expectations. Revenue for the half is expected to be at least £85m (>7% growth) on a reported basis. With a foreign exchange tailwind, this is in line with prior year revenue of £79.5m on a constant currency basis. The Group’s view of the full year remains unchanged with previously issued guidance of low single digit % revenue growth in 2022 (at constant currency), with growth weighted towards H2.

Kibo Energy* 0.13p £3.8m (KIBO.L)

The renewable energy focused development company, has extended to 20 years its conditional 10-year take-or-pay Power Purchase Agreement (PPA), first announced in the Company’s RNS dated 14 February 2022. The PPA outlines the construction, commissioning and operation of a 2.7 MW plastic-to-syngas power plant to generate baseload electricity for an industrial business park developer in Gauteng, South Africa. The Project is the Company’s first under its joint venture, Sustineri Energy, in which Kibo Energy PLC holds 65% and Industrial Green Energy Solutions Pty Ltd holds the balance of 35%. The extended term period to 20 years will improve the already compelling Project highlights, as per the Company’s RNS dated 14 February 2022.

Polar Capital 452p £455.6m (POLR.L)

The specialist active asset management group, today provides its quarterly update of its unaudited statement of its Assets under Management. As at 30 June 2022 its AuM were £18.9bn compared to £22.1bn at the end of March 2022, a decrease of 14%. In the quarter, AuM decreased by net outflows of £0.3bn, fund closures of £0.5bn and £2.4bn related to market movement and fund performance.

Portmeirion Group 365p £51.0m (PMP.L)

The manufacturer and worldwide distributor of high quality homewares under the Portmeirion, Spode, Royal Worcester, Pimpernel, Wax Lyrical and Nambé brands updates on trading for the six months to 30 June 2022. Sales for the first half of the year will be at least £45m (2021: £43.1m), representing a 5% increase on the previous year.

Team17 395p £575.1m (TM17.L)

A global games label, creative partner and developer of independent premium video games, developer and publisher of educational entertainment apps for children and a leading working simulation games developer and publisher, confirms that trading in the six months ended 30 June 2022 has been in line with the Board’s expectations. As outlined at the full year results announcement in March 2022, the Group has a solid and high quality portfolio of new releases planned for the second half of the year, which alongside continued back catalogue performance is expected to drive a more second half weighted performance than prior years. The Board remains mindful of ongoing macro-economic uncertainty and inflationary pressures, the impact of which remain in line with its expectations.

TransGlobe Energy 375p £204.3m (TGL.L)

VAALCO Energy and TransGlobe Energy announced that they have entered into a definitive arrangement agreement, pursuant to which VAALCO will acquire all of the outstanding common shares of TransGlobe in a stock-for-stock strategic business combination transaction valued at US$307m. VAALCO will acquire each TransGlobe share for 0.6727 of a VAALCO share of common stock, which represents a 24.9 per cent premium per TransGlobe common share. The transaction will result in VAALCO stockholders owning approximately 54.5% and TransGlobe shareholders owning approximately 45.5% of the combined company in African-focused E&P activities.

14 July 2022
*A corporate client of Hybridan LLP

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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.

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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.

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