Small Cap Feast

27th October 2022

Dish of the day
No Joiners today
Off the menu
No leavers today
Dish Of The Day:
Unicorn Mineral Resources (UMR) has joined the Standard Segment of the Main Market. Unicorn Mineral Resources plc is an Irish exploration company, incorporated on 25 March 2010. Unicorn’s focus is to explore for zinc in Ireland, and the Company has been working on several license blocks since 2010. It has targeted the highly prospective Limerick Basin. Unicorn raised £930k at 10 pence per share.
Off The Menu:
No leavers today.

What’s Cooking In The IPO Kitchen?

Ithaca Energy, a UK independent exploration and production company focused on the UK North Sea, intends to join the Premium Segment of the Main Market. Ithaca Energy is one of the largest independent oil and gas companies in the UKCS, ranking 2nd by resources and 3rd by production. The offer will initially comprise new ordinary shares and the proceeds will be used to repay existing shareholder debt, including a capital note in favour of DKL Energy Limited, the Company’s immediate shareholder. Immediately following Admission, the Company will target a free float of at least 10% of its issued share capital and expects to be eligible for inclusion in the FTSE UK indices.

BWP REIT, a newly formed single asset company, announces its intention to raise £35m through the issue of 35m ordinary shares at the issue price of £1 per share, to acquire Bridgewater Place, an office-led mixed use property situated in central Leeds and valued at £63m. BWP REIT will apply for listing on the Wholesale Segment of the International Property Securities Exchange (PSX). 10 November 2022.

World Chess plc, a leading chess organisation, intends to join the Main Market. World Chess Plc is the holding company of a group which aims to promote the mass market appeal of chess globally through the commercial offering of chess related activities. Euro 8m to be raised. Expected November 2022.

OTAQ plc, (OTAQ.L) the technology company with three divisions: Aquaculture, Geotracking Devices and Offshore intends to delist from the Main Market and join the AQSE Growth Market. OTAQ is developing adjacent technologies to take advantage of a number of growth initiatives that will broaden the Group’s current product portfolio in the global marine aquaculture sector and facilitate entry and growth into the geotracking devices sector. Expected 9 November 2022. Raising a total of £3.6m, £2m raised.

Cooks Coffee Company ltd, an international coffee focused café chain which currently owns the Esquires Coffee and Triple Two Coffee Brands, intends to join the AQSE Growth Market. The Company is the 4th largest coffee focused café chain in the UK. Cooks Coffee is currently listed on the New Zealand Stock Exchange. Raising £1.5m through a rights issue in New Zealand and a private placement. Expected 2 November 2022.

TECC Capital plc, to be renamed EDX Medical Group, intends to join the AQSE Growth Market. EDX operates a molecular biology and diagnostics laboratory in Cambridge, UK, from which it performs research & development, provides Polymerase Chain Reaction (PCR) testing and genomic sequencing services, undertakes quality assurance and has established expertise in the design, development, validation and sourcing of Lateral Flow Tests on a commercial scale. 14 November 2022.

Streaks Gaming plc, a UK-based provider of conversational gaming products intends to join the Standard Segment of the Main Market this autumn. The flotation is expected to value Streaks at approximately £10.2m (pre-money) and will make it the first LSE-listed “pure-play” conversational gaming company. Raising between £5-10m. Due in October.

Georgina Energy, focusing on the exploration, development and monetisation of helium, hydrogen and hydrocarbon interests located in Australia intends to join AIM. Georgina Energy has two principal onshore interests: (1) Mount Winter Prospect in the Amadeus Basin in Northern Australia, which the Company has a right to earn an initial 75% interest; (2) Hussar Prospect, 100% owned by the Company, located in the Officer Basin in Western Australia. Expected late October.


Breakfast Buffet

CloudCoCo Group 1.33p £9.4m (CLCO.L)

A UK provider of Managed IT services and communications solutions to private and public sector organisations provides an update on its progress for the year ended 30 September 2022. Revenue is expected to be no less than £24m (FY21: £8.0m). Trading EBITDA is expected to be in the region of £1m (FY21: £745k). CloudCoCo’s primary focus in the new financial year will be on driving organic growth. At the same time, the Board will continue to actively seek opportunities to enhance capabilities and accelerate growth through selective acquisitions. The Board is confident of delivering continued sales growth and improved profitability in FY23, weighted towards the second half in view of the investments we are making in the first.

DeepVerge 2.25p £4.9m (DVRG.L)

The environmental and life science group of companies that develops and applies AI and IoT technology to analytical instruments for the analysis and identification of bacteria, virus and toxins, announces that it has conditionally raised £10m, before expenses, in an oversubscribed Placing and Subscription at a price of 2 pence per share. The Issue Price represents a discount of 20% to the closing price per Ordinary Share of 2.5p at close of business on 26 October 2022.

ECR Minerals 0.88p £9.3m (ECR.L)

The exploration and development company focused on gold in Australia announces it has entered into a Binding Term Sheet pursuant to which it has been granted a conditional option to acquire the entire issued share capital of Placer Gold Pty Limited. Placer Gold is the beneficial holder of three granted mining tenements (EPM 27518, EPM 25855 and EPM 19437) located in NE Queensland, together known as the Hurricane Project. The total proposed consideration for the acquisition of Placer Gold is A$6.9m (approximately £3.8m) comprised of the Option Fee, a cash payment upon completion of certain milestones and a capped royalty fee.

Franchise Brands 153.5p £199.6m (FRAN.L)

The international multi-brand franchise business provides a trading update for the 3 months to 30 September 2022 (Q3). The Group has continued to perform robustly during Q3, driven by strong contributions by the two largest businesses, Filta in North America and Metro Rod in the UK. Overall, the Board expects the Group’s revenue (£92.9m), adjusted EBITDA (£14.3m), and adjusted EPS (7.31p) for the year ending 31 December 2022 to be ahead of current consensus market expectations.

Gusbourne 75p £45.6m (GUS.L)

The English wine producer reports that its 2022 harvest is now complete and marks a vintage of great potential. The 2022 growing season was near perfect growing conditions, in which the vineyards thrived. Gusbourne remains focussed on quality and 2022 has so far delivered a record number of accolades for its wines than before. This included 5 gold medals at the Champagne and Sparkling Wine World Championships and 4 trophies, including retaining Estate Winery of the Year, at the Wine GB awards. Gusbourne also recently announced plans to expand its vineyard plantings and the additional wine created from grapes grown across the Estate’s vineyards will support the longer-term growth plans of the Company.

Hardide 16p £9.4m (HDDL)

The developer and provider of advanced surface coating technology announces that it has received full supplier approval from Leonardo Helicopters for its Hardide-A coating to coat flying parts, and the first production order has been received for processing. Leonardo Helicopters is one of the UK’s leading aerospace companies and one of the biggest suppliers of defence and security equipment to the UK Ministry of Defence. The first parts to be coated are components used in the gearbox transmission systems of a particular class of helicopter and are part of an existing aircraft upgrade. The Company expects the approval to open up further opportunities within the Leonardo Group.

Manx Financial Group 14p £16.1m (MFX.L)

The holding company providing a range of diversified financial services to the Isle of Man and the United Kingdom, announces that the Group’s wholly owned banking subsidiary, Conister Bank Limited, applied for a United Kingdom Branch Deposit Taking licence on 25 October 2022. The Branch application, if approved by the PRA and the FCA, will allow Conister to grow its balance sheet, subject to the necessary regulatory capital, by up to an additional £0.5bn through a mixture of UK deposits and wholesale funding. Applying for a UK Branch banking licence, however, is no guarantee of approval and the process is expected to take up to one year.

Merit Group 39.5p £9.5m (MRIT.L)

The data and intelligence business announces that it has agreed to sell the Media, Events and Training operations of its Dods Political Engagement business (together, the MET Operations) to Political Holdings Limited, a private company owned by Lord Ashcroft KCMG PC, for a cash consideration of £4.5m. In the year ending 31 March 2022, the MET Operations generated revenue of £9.3m and an adjusted EBITDA of £0.5m with net assets of £0.5m. Merit expects the Disposal to complete in the current calendar year, subject to certain conditions being met. Following completion, the Group will use the net proceeds to pay down its net debt (30 September 2022 was £3.2m), and to fund growth plans.

Newmark Security 31p £2.9m (NWT.L)

A provider of electronic, software and physical security systems today provides an update on trading ahead of the publication of its results for the year-ended 30 April 2022 subject to finalisation of the audit. Revenues of approximately £19m (2021: £17.6m). The Group had £0.2m of cash and cash equivalents at 30 April 2022. Post period end, the Group returned to profitability and positive operating cashflows during the first five months of FY 2023.

PPHE Hotel Group £12.58 £534.4m (PPH.L)

The international hospitality real estate group which develops, owns and operates hotels and resorts announces a trading update for the Group’s Q3 period (30 June 2022 to 30 September 2022). Total revenue increased 71.1% to of £129.6m vs Q3 2021, and up 7.1% on Q3 2019 levels. Performance was driven by strong trading throughout Q3, particularly the London and Croatian summer season, and maintaining focus on room rates. The strong demand and forward booking momentum seen in Q3 has continued into Q4 2022. The Group is on track to exceed market expectations for reported total revenue (£255.8m – £301m) and EBITDA (£79.2m—£85.6m) for the financial year ending December 2022.

27 October 2022
*A corporate client of Hybridan LLP

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The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).

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