Small Cap Feast

21st June 2022

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What’s Cooking In The IPO Kitchen?

Visum Technologies seeking admission to The AQSE Growth Market. The Company’s business is to own and operate an “on-ride” video and photographic camera system that it sells and/or licenses to customers (being theme parks, ride manufacturers, souvenir imaging providers, and other leisure operators). Due 30 June.

LifeSafe Holdings, a fire safety technology business with innovative fire safety products, intends to join AIM. LifeSafe has developed what the Directors believe to be market disrupting, eco-friendly fire safety protection products to both protect (via fire extinguishers) and detect (via carbon monoxide, smoke and heat alarms) fires. At the centre of the Group’s product range is the FER1000 extinguishing fluid, which has been developed by LifeSafe to extinguish five different types of fire: electrical, paper, textiles, cooking oil, and petrol and diesel. The Group’s best-selling product using this patent pending extinguishing fluid is the StaySafe 5-in-1 fire extinguisher. It was launched on Amazon Prime in the UK in August 2021 and subsequently became Amazon Prime’s top selling fire extinguisher in the UK in the same month. In n the year ended 31 December 2021, the Group generated revenues of £670k and a loss post taxation of £1.5m. £3m to be raised. Due early July 2022.

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. The Company also seeks to raise funds to finance its current and future rare earths mining projects in Southern and Eastern Africa. Due June 2022.

Breakfast Buffet

Aferian 131p £111.3m (AFRN.L)

The B2B video streaming solutions company, today announces that Amino has collaborated with Now TV, the leading pay-TV service in Hong Kong and the media entertainment arm of HKT, Hong Kong’s premier telecommunications service provider and a leading innovator, to integrate its pioneering IPTV service with popular OTT services such as HBO GO and Netflix. Mr Derek Choi, Managing Director, HKT Home, said, “We are thrilled to introduce Now H1 to families in Hong Kong. By converging the TV and OTT worlds, Amino has helped Now H1 redefine the viewing experience for Hong Kong consumers by providing a modern Android TV user experience that combines Now TV content with preloaded OTT services such as HBO GO, ViuTV, Viu, Netflix, Red Bull TV and Deutsche Welle.”

Bluejay Mining 6.9p £61.6m (JAY.L)

The exploration and development company, updated on the 100% owned Kangerluarsuk Zinc-Lead-Copper-Silver project in central west Greenland. Survey planned to cover 587-line kilometre’s of aerial gravity gradiometer, gravity and magnetics to further refine targets in advance of drilling. The survey is expected to commence in July and complete in around seven days, utilising service providers already working on projects within the broader region. Kangerluarsuk, ±12km north of the historical Black Angel zinc, lead and silver mine (Greenland’s most profitable mine), has never been drilled. Work by previous operators produced channel results of up to 41.1% Zinc & 45.4% lead and grab samples up to 9.3% Pb, 1.2% Cu and 596 grams per tonne Ag. Kangerluarsuk covers a total area of approximately 700 square kilometres over two separate licenses.

Capital Metals 6.3p £11.8m (CMET.L)

The mineral sands company that is now approaching mine development at the Eastern Minerals heavy mineral sands project in Sri Lanka, one of the highest-grade mineral sands projects globally, announced the second half of results from the late-2021 auger drilling programme. Drill results from Komari and Urani North, situated in the south of the Project. Exceptional high-grade results of up to 86.1% Total Heavy Minerals (THM), including: 1.5m @ 51.9% THM from 1.5m; 1.1m @ 41.8% THM from 0m; 2.5m @ 38.4% THM from 0m; 2m @ 36.2% THM from 1.5m; 2.5m @ 35.2% THM from 0.5m. Average grade of results from the full 560-hole 2021 drilling programme is 19.37% THM, compared to the existing JORC resource grade of 17.6%, indicating the potential for both volume and grade increases. All results from surface to a maximum of only 3.5m depth (average depth 1.5m from surface) ended in mineralisation providing scope for resource extension at depth.

Gaming Realms 23.7p £69.2m (GMR.L)

The developer and licensor of mobile focused gaming content, has been awarded an Online Gaming Service Provider licence by the Connecticut’s Department of Consumer Protection, making it the fourth US State where the Group is licensed. DraftKings and FanDuel, both of whom have multi state deals and direct integrations with Gaming Realms, are already operating in Connecticut. The Company expects its Slingo content to go live in the state with these operators by the end of 2022, once final certifications are completed. Michael Buckley, Executive Chairman of Gaming Realms, commented: “We are delighted to have been granted an Online Gaming Service Provider licence in Connecticut, which now sees Gaming Realms licenced in the US’s four largest states for iGaming, as well as in Ontario, Canada. The Company’s strategy to sign multi-state deals and direct integration agreements with some of the largest operators in the U.S has also put us in a stronger position for our Slingo content to go live in a shorter time frame and to capitalise on market growth as more states look to regulate iGaming. The Company’s expansion outside of North America is progressing as expected, and our Slingo games have recently gone live in Italy with Lottomatica, which is that country’s largest operator.”

M.P. Evans 916p £501m (MPE.L)

A producer of sustainable Indonesian palm oil, notes the recent announcement by the Indonesian government regarding two sets of revisions to its palm-oil export duty and levy. The first set of revisions is effective from 14 June 2022 to 31 July 2022 and results in a decrease in the combined duty and levy payable by the Group of up to US$87 per tonne, dependent on the reference price of crude palm oil used, which is closely linked to the cif Rotterdam price. However, for the period up to 31 July 2022, the Indonesian government is also introducing a US$200 per tonne export tariff, to be charged in addition to the export duty and levy. From 1 August 2022, at which point the export tariff will no longer apply, a second set of revisions will be introduced. This will result in a decrease of up to US$47 per tonne in the combined export duty and levy, payable by the Group compared to the duty and levy in place prior to 14 June 2022. As reported in the trading statement published on 10 June 2022, the Group achieved an average mill-gate price for its sales of crude palm oil of US$1,079 per tonne in the first 5 months of 2022, compared with US$715 for the same period in 2021. Following the government’s revisions to the export duty and levy, coupled with a softening in the cif Rotterdam price, recent mill-gate prices achieved have been around US$750 per tonne.

Pelatro 27.5p £12.5m (PTRO.L)

The Customer Engagement Hub software specialist, has been selected by a large global telco to provide its mViva Campaign Management Solution to provide a Proof of Concept (POC), which is expected to be in place for about 6 months. Whilst there can be no certainty that the Company will be successful with this POC, it has historically been a successful approach for new contract wins for Pelatro with other similar telco groups. Should the POC be successful, it is expected that mViva will be rolled out progressively to all the opcos of the telco. Once all opcos are operational on mViva (expected over the subsequent 24 to 30 months), the full potential of this recurring revenue contract would be about $4m per year and revenue from this contract would start in 2023.

Record 72p £143.3m (REC.L)

The specialist currency and derivatives manager, today announces its audited results for the year ended 31 March 2022. Financial highlights include: 38% increase in revenue to £35.1m (FY-21: £25.4m); 76% increase in Profit Before Tax to £10.9m (FY-21: £6.2m); 7% increase in operating profit margin to 31% (FY-21: 24%); 57% increase in proposed final ordinary dividend of 1.80p per share (FY-21: 1.15p); total ordinary dividend for the year of 3.60p per share (FY-21: 2.30p); 104% increase in special dividend for the year to 0.92p per share (FY-21: 0.45p). Key developments: Material growth in management fees diversified across all current product lines. Momentum in AUME growth continues with a 4% increase to $83.1bn, including net inflows of $2.4bn. Inflows into both new and existing higher revenue-margin products increases operating margin, following transitional year of change and investment in FY-21. Collaboration with specialist partners and clients opens new opportunities for growth and diversification of products and geographies. Successful launch of new Sustainable Finance product in the year in collaboration with UBS Global Wealth Management adds to an increasingly diversified suite of products. Move towards broader asset management expertise with growth of asset management team.

STV Group 287p £134.1m (STVG.L)

Update guidance yesterday for STV Studios from Scotland’s home of news, entertainment and drama, serving audiences with quality content on air, online and on demand. STV Studios and Tod Productions announce a major new scripted series for Apple TV+. The Hit Channel 4 drama Screw also recommissioned for a second series. Also £40-45m of Studios revenue now secured for 2023, in excess of £40m target. STV Studios is now producing 9 returning series, bringing improved revenue visibility.

Smart Metering Systems 836p £1,115.1m (SMS.L)

The fully integrated energy infrastructure company owning and managing meter assets, energy data, grid scale batteries and other carbon reduction assets, announced two strategic investments, accelerating the Group’s capabilities in the electric vehicle (EV) charging infrastructure asset class and further expanding its service offering in energy data management. SMS has invested an initial £2m to acquire a 25% shareholding in Clenergy EV, a software business with a Charge Point Operator platform focused on EV charging infrastructure. Clenergy EV’s customer base is in the public charging and fleet sectors, with its platform currently being used in more than 1,000 EV chargers across the UK. SMS has the option to invest a further £2m after 1 year, leading to the acquisition of an additional 26% interest, and has an option to acquire the remaining shares after 5 years. SMS has separately acquired 100% of n3rgy, a data software company, for a cash consideration of £1.4m. n3rgy’s software platform enables and facilitates the use of energy consumption, generation and tariff data from smart meters registered on the Data Communications Company platform. This data is then used for settlement, billing, energy management and a growing market of wider applications and services. The acquisition, together with the Group’s accredited and scalable technology platforms, will enhance and accelerate SMS’s capabilities in smart energy data solutions, providing the Group with a strong competitive position in the significant addressable market as the industry moves towards mandatory half-hourly settlement. An additional £0.8m deferred consideration will be payable by SMS subject to n3rgy achieving certain performance targets.

Tremor International 374p £566.2m (TRMR.L)

Tremor International, a global leader in Video, Data, and Connected TV advertising offering an end-to-end technology platform that enables advertisers to optimise their campaigns and media partners to maximise yield on their digital advertising inventory, notes press speculation regarding Amobee. The Company confirms that it is currently in discussions with Amobee, alongside a number of ongoing strategic discussions with other third parties, which is considered normal course of business by management and in line with its stated M&A policy. There can be no certainty that the potential acquisition of Amobee will be completed, and no final terms of the potential acquisition have been agreed. Further announcements will be made in due course as appropriate.

21 June 2022
*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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