Small Cap Feast

18th April 2023

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What’s Cooking In The IPO Kitchen?

Ashoka WhiteOak Emerging Markets Trust Plc intends to join the Premium Segment of the London Stock Exchange. The Company is a new UK investment trust seeking to achieve long-term capital appreciation through investment primarily in quoted securities that provide exposure to global Emerging Markets and intends to raise £100m at 100p per ordinary share. Expected Admission 3 May 2023.

Drumz Plc is an investing company admitted to trading on AIM with an investment policy focused principally on acquiring investments in technology businesses based in Europe. Drumz currently has two investments, being a 25%. shareholding in Acuity Risk Management (ARM) and a 5.85% legacy shareholding in KCR Residential REIT plc (KCR). Admission to AIM is being sought as Drumz has conditionally agreed terms to acquire the remaining issued shares and to be issued shares in ARM for a total consideration of approximately £3.6m. Drumz plc will be renamed Acuity RM Group plc post Admission. The Company intends to raise £1.45m on Admission and will have a market capitalisation of £5.4m. Expected Admission 25th April 2023.

Vinanz Limited intends to join the Access Segment of the AQSE Growth Market. Vinanz Limited aims to build out a fullyfledged Bitcoin mining company initially focusing on installing clusters of Bitcoin miners in multiple decentralised data facilities throughout the US and Canada through third-party cryptocurrency mining providers such as Compass Mining. Whilst the Company will focus initially on BTC mining, it will also consider mining of other cryptocurrencies, and operations in the DeFi and Big Data space in the future. Expected Admission 21 April 2023.

M7 Box+ REIT plc, a newly established, externally managed closed-ended investment company announces that it intends to join the Wholesale segment of IPSX. Upon Admission, the Company proposes to acquire a portfolio of seven let and operational e-warehouses from M7 Box+ II LP. As at 31 December 2022, the Property Portfolio was valued at £228.9m. Expected Admission April 2023


Breakfast Buffet

CloudCoCo Group 1.05p £7.4m (CLCO.L)
The UK provider of Managed IT services and communications solutions provides a operational update. (1) More than 15,000 products added to the MoreCoCo website: The Group announces its partnership with a global leader in the purchase, restoration and sale of IT hardware. The strategic partner's refurbished products will be available on the MoreCoCo site with three-year warranties. (2) CloudCoCo announces the launch of a dedicated and agnostic multi-cloud division. (3) Strategic partnerships with Abstract Tech and Ingram Micro: Abstract Tech is a Leeds-based consultancy. Through this partnership, CloudCoCo will be able to tap into the expertise of Abstract's 150 employees for advanced multi-cloud projects. Ingram Micro is the world's largest B2B provider of technology product and supply chain management services. CloudCoCo will migrate its cloud business to Ingram Micro Cloud Marketplace to offer leading-edge cloud solutions, such as Microsoft Azure, AWS and Google GCP. This strategic partnership allows CloudCoCo's multi cloud practice to leverage Ingram's hundreds of in-built cloud providers through a simplified single portal. (4) CloudCoCo announces its platinum sponsorship of the first ever Silicon Yorkshire Expo, scheduled to take place at the Everyman Cinema in Leeds on 19 April 2023.

Crossword Cybersecurity* 8.25p £7.7m (CCS.L)
The cybersecurity solutions company focused on cyber strategy and risk, announces that two UK universities have gone live with its third party supply chain assurance platform Rizikon Assurance. The contract win follows on from Crossword's attendance at the UK's UCISA (Universities and Colleges Information Systems Association) national conference earlier this month. UCISA is the professional body for digital practitioners in Education. They represent almost all the major UK universities and higher education colleges with a growing membership among other educational institutions and commercial organisations interested in information systems and technology in UK education. Crossword is a UCISA member.

FireAngel SafetyTech 10.5p £19.0m (FA..L)
The developer and supplier of home safety products announces two three-party delivery and production agreements with long-term manufacturing partner and Techem Energy Services GmbH (Techem). The total income opportunity for FireAngel has grown significantly to an aggregate of up to c.$7.50 per alarm (comprising fees, royalties, and purchase price of the Company's own CO sensor). Increased development and manufacturing set up fees of up to £650k will be received by the Company. Shipments of the new alarm is expected to start in 2024 with production volume building in 2025.

Harvest Minerals 5.75p £10.7m (HMI.L)
The fertiliser producer provides an update on Q1 2023 sales of its organic, multi-nutrient, direct application fertiliser, KP Fértil®, from its 100% owned Arapua Fertiliser Project in Brazil (Arapua). Sales orders received total 16,755 tonnes versus budget of 12,000 tonnes. Sales orders invoiced and delivered total 3,560 tonnes. The start to 2023 is consistent notably slower year-on-year, as the concerns over the situation in the Ukraine accelerated buying decisions. However, the Company continues to grow customer base and order book. As such, the Company believes it is on track to achieve its 2023 year-end invoiced sales target of 200,000 tonnes of KP Fértil®, a 33% increase over 2022.

Induction Healthcare 22.5p £20.8m (INHC.L)
The digital health platform driving transformation of healthcare systems, provides a trading update. Revenues from contracts for the year to 31 March 2023 (FY23) are expected to be £13.6m, up 11.8% on prior year . FY23 is the first year the Group has benefited from a full year of revenues from its Attend Anywhere acquisition (2022 £7.9m). Net cash was £4.2m (2022: £7.5m). With its monthly cost base down by over 30% as at 31 March 2023, the Company is pleased with the progress towards the objective of self-sustaining growth and cash flow breakeven in 2024.

Kromek Group 6.35p £27.4m (KMK.L)
The developer of radiation and bio-detection technology solutions for the advanced imaging and CBRN detection segments, announce that it has entered into an initial seven-year agreement with a Tier 1 OEM to develop CZT-based detectors for use in the customer's advanced medical imaging scanners. The two companies will work together to integrate Kromek's CZT-based detectors into the customer's medical imaging scanners. Following a short development phase, the agreement will transition into a longer commercial supply phase.

LifeSafe Holdings 33.5p £7.4m (LIFS.L)
The fire safety technology business with innovative fire extinguishing fluids and fire safety products, reports its audited results for the year ended 31 December 2022. Revenue was up 497% to £4.0m (2021: £670k), exceeding previous market expectations. Gross profit was £2.3m, at 57.0% margin. Loss from operations was £2.8m (2021: loss of £1.5m). Net cash at 31 December 2022 was £1.1m. The Company is seeing solid start to 2023, with sales over four times those of the first two months of 2022 and gross margin ahead of last year by almost 4%.

Oriole Resources 0.17p £4.6m (ORR.L)
The exploration company focused on West Africa announces that it has received a rebate totalling 157k from HMRC in R&D tax relief in respect of geoscientific advances sought by the Company through its exploration programmes. The claim is for the year ended 31 December 2022. CFO Bob Smeeton said: "The 2022 exploration work programmes in Cameroon continued to deliver exciting results, with a fourth drill programme at Bibemi leading to the definition of a JORC-compliant Inferred Resource, and excellent results from the early-stage work on the Central Licence Package, including the detection of anomalous lithium. We are delighted to have received further support for our research work from HMRC."

Volex 244p £388.2m (VLX.L)
The specialist integrated manufacturer of critical power and data transmission products, issues a trading update for the year ended 2 April 2023 (FY23). Revenue is expected to be at least $710m, representing an increase of at least 15.5% compared with the prior year. Underlying operating profit is expected to be at least $66m, at least 17.4% higher year-on-year. Both revenue and underlying operating profit are ahead of market expectations. An increase in gross margins and continued cost control improvements is expected to deliver a strengthening in underlying operating margins to 9.3% (FY2022: 9.1%). The Group has an active acquisition pipeline to help achieve its target of growing revenues to $1.2bn by the end of FY27.

Xeros Technology Group 3.8p £5.7m (XSG.L)
The creator of technologies that reduce the impact of clothing on the planet, publishes its audited results for the year ended 31 December 2022. Revenue was £0.2m (2021: £0.5m). Adjusted EBITDA loss was £7.4m (2021: loss £6.3m). Cash at 31 March 2023 was £4.5m. With the implementation of a licensing model, the revenue mix is changing with revenue now derived from three principal sources: servicing, licensing and sale of goods. Delays in domestic Care launch affect forward looking revenue mix across 2023 and 2024, with revenue lower than previously forecast.

18 April 2023
*A corporate client of Hybridan LLP or retained by Hybridan LLP for certain services
** Arranged by most recent first
*** Alphabetically arranged

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