Small Cap Feast

16th November 2022

Dish of the day
No Joiners today
Off the menu
No leavers today
Dish Of The Day:
BWP REIT joins the Wholesale Segment of the International Property Securities Exchange (IPSX). BWP REIT is a newly formed single asset company and has raised £35m by issuing 35m new ordinary shares at 100 pence per share to acquire Bridgewater Place, an office-led mixed use property in central Leeds and valued at £63m. The property is one of the tallest buildings in Yorkshire, comprising 234,000 sq. ft of office space, and is close to 90% let to EY, as well as multinational law firms DWF and Eversheds. Completion of the property acquisition will take place automatically on Admission of the newly issued ordinary shares, representing c. 99.9% of the issued ordinary share capital.
Off The Menu:
No leavers today.

What’s Cooking In The IPO Kitchen?

Long Term Assets Limited (LTA), a Guernsey investment company, intends to join the Specialist Fund Segment of the Main Market of the London Stock Exchange. The initial portfolio is made up of a diversified range of assets, recently valued in the region of £160m, comprising a complete selection of the Disruptive Capital’s family office private asset portfolio. LTA aspires to be a “best-in-class” private assets vehicle, targeting 0.55% per annum management fee and typically a 7 to 8% p.a. hurdle rate of return. Date and amount to be raised TBD.

One Health Group plc, intends to join the AQSE Growth Market. The group provides medical services, in the form of elective surgical care, to support the NHS in the management of patients, through a growing network of community-based outreach clinics and independent hospitals. One Health is a cash generative and profitable company, with an adjusted EBITDA for the year ended 31 March 2022 of £1.2m, on revenue of £17.5m. Due 24 November 2022.

Life Sciences REIT plc (LABS.L), the AIM listed real estate investment trust focused on UK life science properties, announces that, in accordance with the intention expressed at the time of the Company’s initial public offering on AIM, the board has determined to apply for the Company’s existing ordinary shares to be admitted to listing on Premium Segment of the Main Market. The Company’s admission to trading on AIM will be cancelled with effect from Admission. Anticipated early December 2022.

World Chess plc, a leading chess organisation, intends to join the Main Market. World Chess Plc is the holding company of a group which aims to promote the mass market appeal of chess globally through the commercial offering of chess related activities. Euro 8m to be raised. Expected November 2022.


Breakfast Buffet

Baron Oil 0.128p £18.3m (BOIL.L)

The oil and gas exploration and appraisal company, confirms the completion of its fundraise at the issue price of 0.12 pence per share. The Company has raised aggregate gross proceeds of approximately £0.36m pursuant to the REX Retail Offer. In total, the placing and subscription announced yesterday and the REX Retail Offer have raised gross proceeds of approximately £5.36m. The proceeds will be used to fund administration expenses and working capital, as well as for the Chuditch PSC (production sharing contract).

Beowulf Mining 4.25p £35.3m (BEM.L)

The Nordic-focused exploration and development company, provides an update for the Kallak Iron Ore Project being developed by the Company’s 100% owned subsidiary Jokkmokk Iron Mines AB in Sweden. Kallak North Scoping Study is on schedule to be completed in Q4 2022. In support of the Scoping Study, the Company has engaged Vulcan Technologies Pty Ltd, an Australian company, to complete a Marketing Study to consider traditional and non-traditional market opportunities that might be served by Kallak concentrates. Meanwhile, the application for an environmental permit is on schedule to be submitted in Q4 2023.

Dotdigital Group 85.5p £255.3m (DOTD.L)

The SaaS provider of an omnichannel marketing automation and customer engagement platform, announces its audited results for the year ended 30 June 2022 (FY22). Revenue grew 8% to £62.8m. Adjusted EBITDA was £21.7m, up 10%. Net cash was £43.9m, up 37% (FY21: £32m). The positive trading momentum at the end of FY22 has continued into the new financial year. The Group is tracking in line with expectations for revenue growth and profitability marginally ahead. In addition to organic growth, the Group is seeking acquisition opportunities.

Eagle Eye Solutions Group 567.5p £150m (EYE.L)

The SaaS technology company that enables personalised, real-time marketing through coupons, loyalty, apps, subscriptions and gift services, announces that it has conditionally agreed to acquire 100% of Untie Nots, a French company that provides retailers with AI powered promotion and gamification SaaS software solutions. The initial consideration is EUR15.0m, with EUR9.1m cash and EUR5.9m in new ordinary shares of Eagle Eye. A further performance-linked earn-out consideration is up to EUR23.8m in cash or new ordinary shares in Eagle Eye, or a combination thereof. The cash element of the initial consideration will be funded with existing cash reserves, partial utilisation of an undrawn revolving credit facility and the proposed placing to raise approximately £7m (before expenses) at 555p per share.

Enteq Technologies 9.5p £6.6m (NTQ.L)

The energy services technology and equipment supplier, announces its interim results for the six months ended 30 September 2022. Revenue was US$4.9m, up 113% year-on-year, thanks to North American activity. Operating loss was US$0.77m, due to a lower gross margin from third-party equipment sales. Cash balance was US$1.8m, down from US$5.3m as of 30 September 2021. Enteq indicates that there is a high level of potential demand for its directional drilling technology SABER.

Ethernity Networks 10.5p £8.2m (ENET.L)

The supplier of data processing semiconductors for virtualised networking appliances, announces that its existing American Fixed Wireless OEM customer has selected Ethernity’s data processing system-on-chip (SoC) for its second-generation Fixed Wireless Access (FWA) base station node product. The order from is valued at $340k and delivery of the new ENET FPGA SoC is planned for end of H1 2023. This latest order from the same customer is above the $2m deployment order for the existing ENET FPGA SoC order (announced on 27 May 2021) for the first-generation FWA base station node product that the Company delivered in 2021 and 2022, and the $800k ENET FPGA SoC order (announced on 8 April 2022) to be delivered in 2023.

Evgen Pharma 5.4p £14.8m (EVG.L)

The clinical stage drug development company announces that further to the announcement on 12 November 2022, it has dosed the first group of healthy volunteers in its placebo-controlled, dose-escalating, randomised Phase I/Ib clinical trial. The study aims to provide further insight into the pharmacokinetic and pharmacodynamic characteristics of the new enteric coated tablet formulation of SFX-01, as well as investigating how sulforaphane released from SFX-01 engages with key molecular targets of interest. The new enteric-coated tablet formulation releases sulforaphane to a targeted part of the intestine, with the goals of predicable release and minimisation of gastro-intestinal side effects. The new formulation, if it performs as expected, will be suitable for large scale trials and commercial supply.

Kromek Group 8.45p £36.5m (KMK.L)

The developer of radiation and bio-detection technology solutions for the advanced imaging and CBRN detection segments, announces that it has secured a contract with a UK Government department to develop and supply biological threat detection systems. Under the terms of the contract, Kromek will commence work in December for a 3-year programme worth £4.9m. The contract also includes an option for extended maintenance services after the initial term.

Parkmead Group 62.6p £68.4m (PMG.L)

The independent energy group announces that the Drilltec Synergy 2 Rig has now commenced its mobilisation, ahead of the upcoming two-well LDS drilling campaign in the Netherlands. The LDS wells will target multiple Rotliegendes gas reservoir prospects from the Diever well site currently in production. Construction work to facilitate the potential tie-in of the new wells is largely complete. A successful drilling outcome will result in new fast-track production that adds significant additional revenue and cash flow for Parkmead. The results are expected to be around the end of the calendar year 2022 for the first LDS well and Q1 2023 for the second well.

Renold 24p £54.1m (RNO.L)

The international supplier of industrial chains and related power transmission products, announces its interim results for the six month period ended 30 September 2022. Revenue was £116.3m, up 22% year-on-year. Adjusted operating profit was £9.6m, an increase of 33%. Net debt was £34m (1.2x rolling 12 month EBITDA), primarily due to EUR 20m initial cash consideration for the acquisition of Industrias YUK, S.A. Management indicates that the trading momentum continues to be positive. The Group has record order books and the acquisition of YUK provides opportunities for synergies and further growth.

16 November 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).

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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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