Small Cap Feast

15th 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

CPP Group 195p £16.5m (CPP.L)

Ahead of the Interim Results, CPP Group, a provider of assistance and insurance products, which reduce disruptions to everyday life for millions of customers across the world, confirms that it expects to report financial results for the six months to 30 June 2022 in line with the Board’s expectations. The Group, despite global economic headwinds, continues to record good growth in its key Indian and Turkish markets. Blink, the Group’s InsurTech platform servicing the global travel sector, is starting to build a credible proposition around its travel disruption services. Operationally, the Group is focused on a change management programme, which is a substantial undertaking and includes the exit from or closure of certain legacy businesses; management of the legacy renewal books; the delivery of a new IT platform for our Indian business; and platform capacity for Blink. It is a complex, multi-year programme that is not expected to conclude until early 2025. The Group will provide a more detailed update on the programme alongside the publication of its Interim Results, which are due to be released on the 26 September 2022.

Crossword Cybersecurity* 29p £21.9m (CCS.L)

The cybersecurity solutions company focused on cyber strategy and risk , has today confirmed the completion of £550k of additional convertible loan notes on the same terms as the extension of the convertible loan notes already in issue as referred to in the Trading Update of 13 July 2022. Earlier in the week Crossword announced that Loan Note holders of £700k had agreed to extend their loan notes for three years until June 2025 and two loan notes holders are increasing their loans by a total of £150k. Tom Ilube, CEO of Crossword intends to extend his £250k loan notes on the same terms as the other loan note holders. Crossword also updated on trading. H1 Revenue of £1.5m was 112% higher than the same period in the prior year (excluding discontinued operations). Within that, organic revenue growth was 53%. Projected revenue growth of circa 75% in 2022, driven by organic growth and already completed acquisitions, is in line with market expectations.

Idox 59.9p £269.8m (IDOX.L)

The supplier of specialist information management software and solutions to the public and asset-intensive sectors, announce that Rother and Wealden District Councils shared environmental health service has signed a five-year contract for Idox Cloud Public Protection. The deal follows a number of contract wins for Idox Cloud products since the beginning of the year including North Warwickshire Borough Council and four other local authorities. Idox Cloud Public Protection software supports the inspection and enforcement of standards, including environmental health, licensing, trading standards and public sector housing. This contract will see Idox provide the councils with environmental health and licensing solutions, as well as public sector housing at Rother District Council. Idox Cloud continues to drive and accelerate digital transformation, both within its core Local Authority markets and broader Public Sector engagements.

Novacyt 117p £83.0m (NCYT.L)

The international specialist in clinical diagnostics, announces that the Company’s exsig™ COVID-19 Direct Real-Time PCR test has been approved in the UK under the UK Health Security Agency’s Medical Devices (Coronavirus Test Device Approvals) (Amendment) Regulations 2021 (CTDA). The exsig™ COVID-19 Direct Real-Time PCR test is designed to detect a SARS-CoV-2 gene target within ORF1ab and, as with all the Company’s direct-to-PCR products, removes the need for manual or automated extraction solutions to significantly improve laboratory workflow and reduce costs. In addition, the test is designed for use on an open platform, meaning it can be used with the Company’s q16 and q32 instruments, as well as other validated systems. The test is the Company’s fifth PCR product to be added to the CTDA register of approved products.

One Heritage Group* 28p £10.8m (OHG.L)

One Heritage provided a trading update on the progress of projects and changes to its senior leadership team. The company’s existing development portfolio stands at £38.6m. The Group has two planning applications awaiting approval, namely Churchgate, Leicester and Seaton House, Stockport. The company has also agreed to sell its 47% shareholding in One Heritage Complete which will generate net proceeds of £42,500, after legal costs, with potential further proceeds totalling £200k if certain performance criteria are met. Mr Luke Piggin has tendered his resignation as Finance Director from the Group, and he is expected to leave the business at the end of August 2022.

Premier Miton Group 113.5p £179.2m (PMI.L)

Premier Miton Group today provides an update on its unaudited statement of Assets under Management (AuM) for the third quarter of its current financial year. £11.3bn closing AuM at 30 June 2022 (31 March 2022: £12.8bn). £0.3bn of net outflows for the Quarter. Further positive net flows in fixed income funds and Diversified multi-asset funds. Strong relative investment performance with 91% of AuM and 85% of funds in the first or second quartile of their respective sectors since manager inception. New emerging markets sustainable equities fund management team announced in the Period.

Sancus Lending Group 2p £9.6m (LEND.L)

Sancus today announces an update on trading for the first six months to 30 June 2022. The Group has been focussed on expanding in UK and Ireland over the last year and the Offshore business remains stable, with work being undertaken to return that business to growth. The Group reports that in the first six months of 2022 it has seen new loan facilities written of £87m compared to £83m for the full year 2021. The impressive growth rate reflects a 62% increase in comparison to the six months to June 2021, when £53m of new loan facilities were written. These figures are in line with expectations. Management remain focused on the maintenance of robust institutional grade credit processes whilst continuing to deliver growth. The Board is encouraged by the momentum, and expects that new loan facilities written will drive revenue growth in the second half of 2022; reflecting the lag in fee generation as the loan book grows.

SDX Energy 10.4p £21.2m (SDX.L)

The MENA-focused energy company provides an update on the testing of its gas discovery at the MA-1X well that targeted the Mohsen prospect, within the Exploration Extension Area of South Disouq. The MA-1X (SDX WI: 67%) discovery, announced on 8 June, is currently in the process of being tested. As expected, the well test showed good flow rates of c. 8.0 MMscf/d commensurate with the high quality Kafr El Sheikh Formation reservoir around the well bore, which has an average porosity of 31.9%. However, the well-head pressure decline observed over a three-day production test was higher than expected, which could indicate that a lower volume of gas is connected to the MA-1X well bore compared to pre-drill estimates. Whilst this does not change the Company’s estimate of overall gas in place in the discovery, it may indicate that there is a change in facies closer than expected to the MA-1X well bore that could be compartmentalising the gas to some extent. The Company is currently undertaking a pressure build up test and will obtain the relevant data from down hole gauges early next week, the results of which will be available in the coming weeks.

TomCo Energy 0.52p £9.1m (TOM.L)

The US operating oil development group focused on using innovative technology to unlock unconventional hydrocarbon resources, announced that the Company’s wholly owned subsidiary, Greenfield Energy LLC has been awarded a 10 year marginal tax reduction, with a potential aggregate value of up to approximately US$76.3m, in relation to its planned project activities on the Tar Sands Holdings II LLC site located in the Uinta Basin, Utah, United States. This post-performance corporate incentive is part of the Utah Legislature’s Economic Development Tax Increment Financing programme.

Warehouse REIT 142.9p £607.1m (WHR.L)

Warehouse REIT, a specialist urban and ‘last-mile’ industrial warehouse investor, announces that to fund its acquisition of Bradwell Abbey Industrial Estate in Milton Keynes, as announced on 21 April 2022, it has drawn a further £63.0m from its Revolving Credit Facility with its existing club of lenders comprising HSBC, Bank of Ireland, Royal Bank of Canada and Barclays. The Company’s debt facilities carry a cost of SONIA plus a lending margin. In addition to the drawdown above, the Company has also taken out two additional interest rate caps of £100m each for three and five years respectively which serve to cap the SONIA rate in the Company’s debt facilities at 1.5%. These are in addition to the two existing £30.0m interest rate caps, the Company has in place, which expire in November 2022 and 2023 and have caps at SONIA rates of 1.50% and 1.75% respectively.

15 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.

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.

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