Small Cap Feast

24th April 2023

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What’s Cooking In The IPO Kitchen?

Golden Metal Resources Plc a mineral exploration company focused on tungsten, gold, copper, silver and zinc within Nevada, USA intends to join AIM. It was established on 22 April 2021 as a company registered in England and Wales for the purpose of holding all of the Nevada mining assets of Power Metal Resources plc (AIM:POW). The Company holds four mining assets comprising the wholly owned Pilot Mountain, Garfield and Stonewall projects together with an earn-in option over the Golconda Summit project. Each of the projects consists of mining claims located entirely on land managed by the United States Bureau of Land Management. Expected Admission Early May 2023.

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.

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

Accesso Technology Group 704.5p £291.6m (ACSO.L)
The premier technology solutions provider for attractions and venues worldwide, announces the acquisition of Paradocs Mountain Software; a leading Canadian-based provider of cutting-edge software solutions tailored to the ski industry. The terms include a total consideration of $10m comprised of $9m in cash and $1m in accesso shares. The year ending 31 August 2022, Paradocs reported revenues of CAD$2.34m, an increase of 35.8% over FY 2021, with a gross margin of 93.5%. The Acquisition will aim to Provide accesso with a proven, hosted solution for the ski sector - a key strategic growth target for the Group and the Directors believe that the Acquisition will be earnings accretive in the current FY 2023 financial year.

CentralNic Group 116.1p £333.3m (CNIC.L)
The global internet platform which helps online consumers make informed choices, provides an update for the three months ending 31 March 2023. The Group expects to report gross revenue of c.USD 194.9m, net revenue / gross profit of c.USD 45.8m and adjusted EBITDA of approximately USD 21.3m an increase of 24%, 15% and 15% respectively. The Group's Online Marketing segment announces partnerships with leading global media groups, including latest with Microsoft Bing. Leveraging the Company’s existing Artificial Intelligence capabilities with ChatGPT, complements their existing relationships with Google and Yahoo.

Checkit 28p £30.2m (CKT.L)
The intelligent operations platform for the deskless worker, reports its audited preliminary results for the year ended 31 January 2023 (FY23). Annual recurring revenue increasing 28% to £11.5m (FY22: £9.0m), Group revenue from continuing operations of £10.3m up 22% (FY22: £8.4m), adjusted LBITDA from continuing operations of £6.4m (FY22: loss of £5.6m), and the Group held net cash at year end of £15.6m (FY22: £24.2m). The Group has expanded its US footprint with 91% year-on-year growth to ARR £2.8m (FY22: £1.5m). The Board expects to meet market expectations for FY24 and remains confident that the Group is well positioned to deliver strong, sustainable organic growth in the years ahead.

Frenkel Topping Group 68p £86.7m (FEN.L)
A specialist professional and financial services firm operating in the Personal Injury (PI) Clinical Negligence (CN) space, announces its final results for the 12 months ended 31 December 2022. Revenue is up 35% to £24.8m (FY21: 18.4m), adjusted EBITDA up 33% to £6.1m (FY21: £4.6m), underlying profit from operations up 28% £5.5m (FY21: £4.3m) and total assets for the Company is up 40% to £53.1m, (FY21: £37.8m). During the year, the Group has completed Acquisitions of Cardinal Management Limited, Somek & Associates Limited, and N-Able Services Limited and the Group is trading in line with management's expectations.

Jubilee Metals Group 9.05p £246.8m (JLP.L)
A leader in diversified metals processing, with operations in Africa, provides an update on its operations in South Africa and Zambia for the quarter ended 31 March 2023 (Q3 FY2023). Lost time injury frequency rate (LTIFR) of 1.0 in South Africa; LTIFR of 2.3 in Zambia, Chrome production of 310k tonnes, remains on track to reach full year guidance of 1.2m tonnes and 494 tonnes of copper sold with a further 202 tonnes of equivalent copper held in copper concentrate and metal as stock at the end of the period. Ramp-up of copper operations at Roan Concentrator in Zambia progressing well with full output now expected in May 2023. Full year guidance for PGM oz, Chrome operations and Copper guidance remain unchanged.

Keystone Law Group 465p £145.9m (KEYS.L)
The network and tech-enabled challenger law firm, announces its full year results for the year ended 31 January 2023 (FY 2023). Revenue growth of 8.1% to £75.3m (2022: £69.6m), profit before tax remained consistant of £8.4m (2022: £8.4m), and operating cash conversion of 96.5% with cash generated from operations of £9.3m (2022: £10.0m); the Group remains debt-free. The Company announced 32 Principals joined across FY 2023, increasing the number of Principals to 398 (2022: 394). The Board remains confident that FY 2024 will be another good year for Company growth.

Lok’n Store Group 869p £261.2m (LOK.L)
One of the leading companies in the fast-growing UK self-storage market offering self-storage from their own stores and management services to third-party storage owners announces its interim results for the six months to 31 January 2023. Group revenue £13.58m up 1.5% (31.1.2022: £13.38m), adjusted EBITDA of £7.93m down 2.3% (31.1.2022: £8.12m), operating profit before non-underlying items at £5.24m down 9.3% (31.1.2022: £5.78m) and the Group has £40.3m cash at period-end (31.7.2022: £44.4m). New store opening in Staines, Basildon and Peterborough schedule driving future growth. The Company look forward in confidence.

Mind Gym 64p £64.1m (MIND.L)
The global provider of human capital and business improvement solutions, announces a trading update for its financial year ended 31 March 2023. The Group expects to report revenues in excess of 54.7m (FY22: £48.7m), 12% ahead of prior year and profit before tax. The Group retains a strong financial position to support investments in future growth with net cash of 7.6m, ahead of expectations (30 September £4.6m; 31 March 2022: £10.0m). MindGym's £10m debt facility remains undrawn. The Board remains confident in the Group's prospects and trading is in line with expectations.

React Group 1.22p £13m (REAT.L)
The leading specialist cleaning, hygiene, and decontamination company, announces a trading update for the six months ended 31 March 2023. Revenues are expected to be approximately £9.3m (2022: £5.1m), gross profit of approximately £2.5m (2022: £1.2m) and an adjusted EBITDA of approximately £925k (2022: £133k). The Company has been awarded both sizeable new contracts including two material projects with schools, numerous NHS Trusts and a specialist property services business that will generate approximately £500k of revenue per year. The Board is confident in full year results being in line with market expectations.

The Brighton Pier Group 64p £23.9m (PIER.L)
The Group that owns and trades Brighton Palace Pier, as well as eight premium bars nationwide, eight indoor mini-golf sites and Lightwater Valley Family Adventure Park announces its final results for the 18 months to 25 December 2022. Revenue was £58.9m (2021: £13.5m) reflecting the longer period of account, Group EBITDA was £13.8m (2021: £4.7m), Profit after tax was £6.4m (2021: £4.2m), and the Group has cash balances of £4.2m (2021: £7.1m). Trading in 2023 has seen a general decline in consumer confidence in response to the difficult economic environment currently being faced.

24 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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