Small Cap Feast

27th April 2023

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Dish Of The Day:

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Trian Investors 1 Limited has left the Specialist Fund Segment of the London Stock Exchange.



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.

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

CT Automotive Group 39p £19.9m (CTA.L)
The UK-headquartered company that designs, develops and supplies interior components for the global automotive industry, announces the fundraising for gross proceeds of approximately £7.6m at an issue price of 34 pence per share. This consists of (1) approximately £5.1m (before expenses) from a placing; (2) approximately £100,620 from Director Subscription by Simon Phillips and Scott McKenzie will total; (3) approximately £2.4m from certain existing shareholders. The net proceeds of £7.2m will predominately be used to strengthen the balance sheet. A small portion of the net proceeds are expected to be deployed to realise further efficiency including through investment in injection moulding production processes and robotics.

HSS Hire Group 13.75p £96.8m (HSS.L)
The equipment hire in the UK and Ireland announces results for the year ended 31 December 2022. Total revenue increased 9.7% to £332.8m. Operating profit was £26.6m, up 6.9%. Profit before tax increased 198% to £18.9m, due to lower financing expenses. Net debt was £41,5m (FY21: £45.4m) reflecting improved profitability and working capital management. Capex investment in 2023 is expected to be £34-£38mm, including c£5m to support further delivery of the technology roadmap. The company is seeing revenue growth in Q1 2023. Management remains confident that full year EBITA will be in line with market expectations.

Kodal Minerals 0.77p £131.0m (KOD.L)
The exploration and development company focused on lithium and gold assets in West Africa, announces that the Company, Kodal's UK subsidiary Kodal Mining UK Limited (KMUK), Hainan Mining Co. Limited and Hainan's wholly owned UK-incorporated subsidiary Xinmao Investment Co. Limited have agreed to an extension of the deadline for the completion of the funding package announced on 19 January 2023 to 31 May 2023 (originally 30 April 2023). The extension will provide additional time for certain conditions precedent to be satisfied, including the transfer of the Bougouni Project to a new Mali mining company owned by KMUK.

Maintel Holdings 100p £14.4m ((MAI.L)
The provider of cloud and managed communications services, announces its audited results for the year to 31 December 2022. Revenue declined 12.4% to £91m, due to supply chain issues related to semiconductors in Q4 2021, delays in public-sector tenders and lower revenue from large project. Adjusted profit before tax was £1.6m, down 76.5%. A strategic review was completed in Q1 FY23, leading to a focus on higher margin product lines, adapting the delivery and support organisations for cost savings. Trading to date in FY23: revenue, EBITDA and orders are all in line with management expectations.

Molten Ventures 269.7p £412.6m (GROW.L)
The venture capital firm investing in high-growth digital technology businesses, announces an update on its portfolio ahead of its results for the year ended 31 March 2023. Gross Portfolio Value (GPV) (unaudited) is expected to be circa £1,370m (31 March 2022: £1,532m). Underlying Gross Portfolio decrease in fair value (unaudited) is approximately 19% at constant currency. A total of £138m (year to 31 March 2022: £311m) was invested from Molten’s balance sheet, with a further £41m from EIS and VCT co-investment. NAV per share (unaudited) is expected to be approximately 775p, down 17% (31 March 2022: 929p).

Mosman Oil & Gas 0.073p £5.1m (MSMN.L)
The oil exploration, development and production company, advises that it has secured a new lease adjacent to the Cinnabar lease in Texas, USA. Mosman is the Operator and Mosman will have a 78% working interest. award-winning television. The technical work identified the potential for the field to extend beyond the circa 350 acre Cinnabar lease. Mosman applied to BPX Energy to lease 120 acres of available acreage adjacent to the Cinnabar lease and BPX have now agreed to lease this area to Mosman et al. The principal terms of the lease are (1) a payment of US$36k (2) initial term of eighteen months that may be extended by the drilling and production of a well. Whilst there is production, the lease would be "Held by Production" (3) a Royalty of 25% of gross production (which is standard in this part of Texas).

Naked Wines 116.1p £85.9m (WINE.L)
The online wine retailer announces a pre-close trading update, based on unaudited financials, for the year ended 3rd April 2023. Total revenue was in line with guidance at c.£350m (flat on a reported basis, -6% to -8% on a comparable basis). Adjusted EBIT expected to be £15-18m, at the top end or slightly above the guided range. Net cash balance was £10m, supported by inventory reduction on track to guidance. As stated in January, the Company expects a modest revenue decline near-term but the demand outlook is stabilising. Naked Wines expect to generate cash in the second half of FY24 as stock levels reduce.

Novacyt 53.05p £36.0m (NCYT.L)
The international specialist in clinical diagnostics announces its audited results for the year ended 31 December 2022. Revenue was £21.0m (FY2021: £92.6m), in line with guidance due to the expected decline in COVID-19 related sales. EBITDA loss was £13.5m before exceptional items. Net cash at 31 December 2022 was £87.0m. Revenue for Q1 2023 is expected to be circa £1.7m (including £0.3m COVID-19 related). This has been a slower than expected particularly in instrumentation due to overhang of inventories that customers built up during the pandemic. Looking forward the Company expects the run-rate for both RUO and instrument sales to increase. Sales from its clinical portfolio are expected coming through towards the latter part of the year.

Synairgen 11.0p £22.2m (SNG.L)
The respiratory company developing SNG001, an investigational formulation for inhalation containing the broad-spectrum antiviral protein interferon beta, announces its preliminary statement of audited results for the year ended 31 December 2022. Loss from operations was £20.3m (2021: £57.9m), with R&D expenditure decreasing to £14.9m (2021: £52.9m). Cash and deposit balances was £19.7m (31 December 2021: £33.8m). The Company believes that SNG001 has the potential to help the respiratory treatments for high-risk patient groups and looks forward to initiating the first trials in the second half of this year.

Tower Resources 0.1225p £4.7m (TRP.L)
The oil and gas company with a focus on Africa, is pleased to provide an update on its activities in respect of its Thali Production Sharing Contract (PSC) in the Rio Del Rey sedimentary basin offshore Cameroon. The company has applied for a one-year extension of the initial exploration period of the PSC, following positive discussions with the Minister of Mines, Industry and Technological Development and the Prime Minister of the Republic of Cameroon. Discussion for a term loan of approximately $7m with BGFI Bank Group is ongoing and the Company is also actively discussing asset-level financing with several parties.

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27 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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