Small Cap Feast

27th April 2022

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What’s Cooking In The IPO Kitchen?

According to Proactive Investors, Bridgepoint is said to preparing to list Burger King UK on the London Stock Exchange as early as this spring. A valuation of £600m is expected.

Lift Global Ventures plc to join AQSE Growth Market. The Company’s investment strategy is to operate as an enterprise company seeking acquisition or investment opportunities within the financial media and technology industries. Within these broad industries, areas of focus may include: Financial news websites and other forms of “new media”, Investment research providers, Financial PR, IR, design and marketing agencies, Production studios and visual content providers and Technology platforms which facilitate capital raising and/or lending. Mkt Cap and Capital to be raised TBC, expected 29 April.

Shellraise plc, to join AQSE Growth Market. The Company will focus on identifying investment opportunities in companies operating in the viticulture sector which require funding to increase output. Mkt Cap and Capital to be raised TBC, expected later in April.

Breakfast Buffet

4basebio 550p £67.7m (4BB.L)

The life sciences group focused on exploiting intellectual property in the field of cell and gene therapies and DNA and mRNA vaccines, announced a Joint Development Agreement (JDA) with Heqet Therapeutics S.r.l. This JDA is focussed on the development of a non-viral vector, incorporating a proprietary Heqet payload for cardiomyocyte regeneration and treatment of myocardial infarction more broadly. Heqet recently closed an EUR8m financing round to progress its development programmes. It is using its proprietary intellectual property to develop therapies which enable heart regeneration and renewal, thereby avoiding scar formation on the heart post myocardial infarction. Such scarring can eventually lead to cardiac dysfunction and failure, despite improvements in medical interventions. Under the JDA, the companies will evaluate the use of 4basebio’s Hermes™ non-viral nanoparticle for the delivery of payloads targeting cardiomyocyte regeneration. The successful outcome of this project may lead to the proof-of-concept development of a therapy enabling heart regeneration post infarction.

Ananda Developments 0.54p £4.3m (AQSE:ANA)

Directors of Ananda provides an update to shareholders. New appointments at operating subsidiary DJT Plants Limited. Since planting of the first seeds in February, operations at site have become more complex and, under the guidance of Stuart Piccaver, the team has been expanded to include: Mark Spurdens MBA, BSc, CMgr, FIFST – COO; Mark was previously Operations Director of two large UK horticultural businesses supplying the main supermarket chains. Steve Murray BSc, BASIS – Head of Cultivation; Steve was previously managing 1.4Ha of medical cannabis growing in the UK for a cultivator under contract to GW Pharmaceuticals. Dr. Nigel Gale – Head of Plant Science; Nigel has extensive experience in Good Agricultural and Collection Practice (GACP) and EU-GMP with a proven track record in developing genetics and successfully cultivating for EU markets, including developing top-selling genetic cultivars for both the medical and recreational cannabis markets in Canada. Preparations are now being made for the movement of plants from the research facility to the multi-chapelles, the structures where DJT Plants will be cultivating in trial commercial conditions. The team is also engaging with DJT Plants’ consultants on the commercial storage and manufacturing facility plans.

Beowulf Mining 6.45p £53.6m (BEO.L)

The mineral exploration and development company, provides an update on its plans for the development of the Kallak Iron Ore Project. In the weeks since the Swedish Government granted the Exploitation Concession for Kallak, the Company has been reviewing workstreams and timelines for the next stage of Kallak’s development. Previously the Company has suggested that Kallak could be in production in a 4-5 year timeframe, but it is now considering how this can be shortened through local partnerships, greater collaboration, and efficient development, application and permitting processes. Beowulf has listened closely to the viewpoints of stakeholders on the impact of a mine at Kallak, which were communicated during the latter stages of the Government’s decision-making process. With the decision now made, meaningful dialogue can restart with regards to how the Company proposes to engage with the local community in Jokkmokk, including Sami reindeer herders. When it comes to project development, over the last few weeks, the Company has communicated with engineering consultants, who will support the completion of a Scoping Study and roadmap to Pre-feasibility, infrastructure operators (rail and power), technical experts, regarding the Kallak resource and ore processing, potential customers, strategic partners and investors. The award of the Concession has been a catalyst for initiating more substantive discussions across all areas of the Kallak project.

Bezant Resources 0.17p £8.5m (BZT.L)

The exploration and resource development companies with a Joint Venture focused on the Troulli Mine Development Project and other copper-gold JV targets in Cyprus, provided a further Joint Venture update on work planned and underway, historical exploration at the Anglisides project, Troulli expansion programme and update on metallurgical test work. 10 diamond drillholes completed as part of the Anglisides programme with visible native copper and sulphide mineralisation present at shallow depths in all holes drilled to date. Drilling contractor commissioned for a further 2,700m of drilling (40 holes); Expansion of the Troulli mineral Resource (18 holes & 1,200m); Extension drilling between Troulli and Kokkinapetra (14 holes & 900m); Drilling of the Kokkinapetra prospect (8 holes & 600m). Resources expansion drilling: Addison Mining is in consultation with Caerus’s on-site management to review the technical aspects of resource expansion drilling. Geophysics: Geophysical contractor has confirmed a start date for the first week in May 2022, for the ground magnetic and IP surveys to be undertaken in and around Troulli and extending to Kokkinapetra. Pending drill results : Drill results for 20 holes from the Troulli (10 holes) and Anglisides (10 holes) projects are pending assays from external laboratories.

Empyrean Energy 2.33p £15.5m (EME.L)

The oil and gas development company with interests in China, Indonesia and the United States, provides an update on drilling at the Jade prospect at its 100% owned Block 29/11 permit, offshore China: LH 17-2-1 well at the Jade prospect reached final total depth of 2849 metres Measured Depth in Pre-Tertiary granitic formation. The interpretation from logging while drilling and mud logging equipment has indicated no oil pay in the target reservoir. Current operations are running final logs before commencing demobilisation of the NH 9 rig.

IG Design 73p £70.8m (IGR.L)

One of the world’s leading designers, innovators and manufacturers of celebrations, craft, gifting, stationery and creative play products, today issues a post close trading update for the year ended 31 March 2022. The Group has delivered a strong revenue performance for the year at $963m, up 10% like-for-like year on year and up 6% on proforma FY20 sales. The International business grew 15% with increases across all regions and particular strength in Europe and Australia. The Americas business was up 7%, reflecting growth in Celebrations and Gifting offset by lower year on year Craft sales. This performance reflects the Group’s continued delivery of high service levels to its customers despite the challenging macroeconomic supply chain issues. Group operating margin is expected to be 0.5% delivering Group operating profit marginally ahead of previously communicated expectations, reflecting a stronger than anticipated performance in the USA. The Group expects to report a small adjusted loss before tax for the year. As a result of the lower than previously expected future earnings in the USA, the Group will book in FY22 a non-cash one-time reversal of deferred tax assets, meaning that adjusted post-tax losses and adjusted loss per share are expected to be significantly below market expectations.

Inspecs 350p £356m (SPEC.L)

The leading designer, manufacturer and distributor of eyewear (sunglasses, optical frames and lenses) today announces a trading update for the three months to 31 March 2022. The Group delivered a strong trading performance in the first quarter with revenues up $7.9m on the prior year to $75.1m (2021 Q1: $67.2m). Revenues increased by 18.5% at constant exchange rates. This performance was achieved through both organic growth of existing entities, alongside strong starts to the year by the acquisitions made in December 2021. The integration of BoDe Design GmbH and EGO Eyewear continues to progress to plan and we look forward to providing a more detailed update on progress at the Group’s Final Results on 19 May 2022.

Nichols 1357.5p £495m (NICL.L)

The diversified soft drinks Group, provides a trading update for the three months to 31 March 2022, to coincide with the Company’s Annual General Meeting taking place later today. Group revenue for the period continued to demonstrate strong growth, increasing 28.9% year-on-year to £39.6m. The Vimto brand has outperformed the wider UK soft drinks market, achieving growth of 10.8%1 in value terms in the year to date, versus 9.8%1 value growth across the wider UK soft drinks market. The Group’s Out of Home route to market continues to recover from the impact of the pandemic and has seen significant growth (+1,387%) year-on-year given the COVID restrictions through Q1 2021. The Group’s International business had a slower start to 2022 than in the prior year (-16%) as shipment timings were severely impacted towards the end of the quarter by national driver industrial action in Spain due to rising fuel prices, which caused disruption to shipping timetables. The action has now ended and the Group’s International shipments have resumed. As expected, the Group continues to experience significant inflationary pressure, but has plans in place to mitigate these in line with forecasts. The Group’s Adjusted PBT2 expectations for FY223 therefore remain unchanged. After over 50 years with the Group and 15 years as Non-Executive Chairman, John Nichols has informed the Board of his intention to retire from the Group once a suitable replacement is identified and appointed.

Redcentric 121p £187m (RCN.L)

The leading UK IT managed services provider, today announces that it has completed and significantly increased the refinance of its Group debt facilities that were due to mature on 30 June 2022. The new debt facilities consist of an £80m Revolving Credit Facility and a £20m accordion facility and are provided by a new four bank group consisting of NatWest, Barclays, Bank of Ireland and Silicon Valley Bank. The New Facility has an initial maturity date of 26 April 2025 with options to extend by a further one or two years. The borrowing cost of the RCF is determined by the level of the Company leverage and has a borrowing cost of 175 basis points over SONIA at the Company’s current leverage levels, which is a significant improvement to the previous facility. An arrangement fee of 75 basis points will be payable upfront, in addition to a commitment fee on the undrawn portion of the new RCF, on equivalent terms to the previous facility. The New Facility provides the Company with additional liquidity to be used for working capital purposes and to fund acquisitions, in accordance with the Company’s stated strategy.

System1 270p £34.4m (SYS1.L)

The marketing decision-making platform, is today providing a Trading Update for its financial year to the end of March 2022 ahead of its results announcement on 12 July 2022. Revenue for the year rose by 6% to £24.1m (H1: +22%, H2: -8%). Data Revenue increased by £8.4m year on year to £9.7m (H2: £5.3m), representing 40% of the total (H2: 45%). As indicated in the interim statement and the February trading updates, adjusted operating expenditure, principally employee-related costs, rose 18% year on year (H2: 26%) reflecting the planned investment in people, partnerships and platform. Profitability was stronger in H1 than H2 as the planned increase in H2 operating costs coincided with a reduction in revenue during the final quarter. We expect to report an adjusted profit before taxation (which excludes impairment, share-based payments, government support, bonuses, loan interest and certain provisions) of some £1.1m for the full year (FY21: £3.0m). Statutory profit before taxation is expected to be ca £0.8m, £1.1m before share-based payments. (FY21: £2.1m, £2.2m).

27 April 2022
*A corporate client of Hybridan LLP or retained by Hybridan LLP for certain services
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