Small Cap Feast

4th May 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. £1.98m total capital to be raised. Anticipated market capitalisation on admission £7.16m. Expected Admission 10 May 2023.

Breakfast Buffet

AMTE Power 60p £21.8m (AMTE.L)
The UK-based developer and manufacturer of lithium-ion and sodium-ion battery cells for specialist applications in growing markets, has become the first European business to receive UN38.3 transportation testing certification for a sodium-ion cell. UN38.3 certification has been adopted by regulators and competent authorities around the world as an essential standard for the safe transportation of cells. The accreditation for its Ultra Safe sodium-ion product marks another important step forward in AMTE Power’s commercialisation plans, allowing it to access global markets.

Arrow Exploration 17.75p £40.7m (AXL.L)
The high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, announces that it has spud the Carrizales Norte-1 (CN-1) well on the Tapir Block in the Llanos Basin of Colombia using the contracted Petroworks rig. The well is targeting a large, three-way fault-bounded structure with multiple high-quality reservoir objectives. The well will be drilled to a measured depth of 9205 feet (8,555 feet True Vertical Depth). The success of this well could result in additional production, additional reserves and a new core area for Arrow. Should CN-1 prove to be commercially successful, the rig will immediately move to drill CN-2, which is expected to spud in early-June. Drilling of the CN-1 well is expected to reach target depth in the middle of May, followed by completion and testing. Testing is expected to take approximately five days per zone.

Begbies Traynor Group 133.7p £206.7m (BEG.L)
The business recovery, financial advisory and property services consultancy, announces that it has completed the acquisition of BLC No1 Limited, which trades as Banks Long & Co. Banks Long & Co is a firm of chartered surveyors employing 38 staff in Lincoln and operating throughout Lincolnshire and Humberside. In its financial year ended 31 August 2022, Banks Long & Co generated revenue of £2.6m (unaudited) and normalised pre-tax profits of £0.4m. Trading is projected to at least maintain this level in the current financial year to date. It had net assets of £2.1m (including £1.4m cash) as at 31 August 2022. Initial consideration of £1.5m, payable £1.125m in cash and through the issue of 292,170 new ordinary shares and an earn out of up to £1.5m, giving maximum consideration of £3.0m.

Camellia £47.7 £130.9m (CAM.L)
The agricultural group of companies reports its results for the year ended 31 December 2022. Revenue from continuing operation was 297.2m, up 16%. Adjusted operating profit before tax for Agriculture increased 20% to £15.8m. Impairment charges of £10.1m incurred, primarily in relation to Bardsley England primarily due to exceptional cost inflation, the Ukraine war and severe customer price sensitivity. Net cash was £44.7m and the market value of the investment portfolio was £34.5m at 31 March 2023. The Board recommends a final dividend of 102p per share bringing the total dividend for the year to 146p. Outlook for 2023 is mixed with revenues expected to be ahead of 2022 but with trading profits lower in large part due to the effect of inflation on costs, including wages. With financial markets currently more stable than in 2022, BF&M should return to profit, resulting in the Group's expectation that adjusted profit before tax will be ahead of 2022.

e-therapeutics 11.08p £64.5m (ETX.L)
The company integrating computational power and biological data to discover life-transforming RNAi medicines, announces its audited results for the year ended 31 January 2023. Revenue was £0.5m (2022: £0.5m). Loss for the year of £8.3m (2022: £8.1m). R&D tax credit receivable was £1.5m (2022: £1.5m). Cash and short-term bank deposits at 31 January 2023 were £31.7m (2022: £26.4m). Post period the Company has filed four patent applications to protect innovation around novel gene targets and associated disease relevant biology as well as proprietary siRNA stabilisation chemistries. Additional milestone was achieved in collaboration with iTeos Therapeutics, resulting in an additional payment to the Company.

Forward Partners Group 36.5p £49.1m (FWD.L)
The London-based investment firm specialising in supporting high-growth, early-stage technology businesses, announces its final results for the year to 31 December 2022. NAV per share was 72p, down 31% from 104p in 2021. Year-on-year decline was 39.0% exclusive of realisations and new investments; however, the rate of decline slowed from 23.9% in H1 to 15.1% in H2. Cash at the end of year was £17.2m (2021: £31.1m). In 2022, top 15 portfolio companies by fair value delivered a weighted average revenue growth of 144%. There are increasing signs of confidence in the VC market. Forward is on track to reduce net operating expenses by circa 40% from £7.7m in 2022.

Kibo Energy* 0.07p £2.1m (KIBO.L)
The renewable energy-focused development company, announces that further to its RNS/SENS announcement of 26 April 2023, the Company has requested that 116,250,000 of the shares it has applied for to be admitted for trading on AIM and the JSE be deferred from being issued and admitted for trading, until full payment for the corresponding warrants, for which prior irrevocable exercise notices have been submitted, has been received. Accordingly, the Company has issued 168,274,625 Ordinary Shares to RiverFort Global Opportunities PCC Ltd in respect of the warrant exercise announced on 26 April 2023 for which trading on AIM and the JSE is expected on 5 May 2023 and for which full payment has been received from RiverFort Global Opportunities PCC Ltd.

Merit Group 49.5p £11.9m (MRIT.L)
The data and intelligence business announces a positive post-period trading update for the year ended 31 March 2023 (FY23). The Group expects continuing operational revenues in FY23 to be approx. £18.6m and adjusted EBITDA to be ahead of market expectations by around 20%, at no less than £2.6m. The Group had net debt of £2.5m as at 31 March 2023. Within the Dods Political Intelligence business, the revenue is almost entirely subscription based and within Merit Data & Technology over 85% is recurring from long-standing customer base. The Group therefore now has healthy visibility of earnings. The Company is targeting further revenue growth in the new financial year with a significant step down in costs already achieved.

Taseko Mines 127.5p £369.5m (TKO.L)
The operator of Gibraltar Mine, the second largest open pit copper mine in Canada, reports its results for the first quarter 2023. Revenue was CA$116m, down 2% year-on-year. Adjusted EBITDA was CA$36m, down 5% year-on-year. Cash flows provided by operations of CA$28m, down 46% from the same period last year. An average realized copper price of US$4.02 per pound in the quarter helped to drive the financial performance. Production in the first quarter was 25m pounds of copper and 234k pounds of molybdenum. Copper head grades for the period were on plan, averaging 0.22%, but production was slightly below plan due to unexpected mill downtime and operational issues with the primary crushers. The Company has decided to defer the in-pit crusher move until the spring of 2024, to coincide with planned work on SAG mill #1 to minimize concentrator downtime.

Virgin Wines 36p £20.1m (VINO.L)
One of the UK's largest direct-to-consumer online wine retailers, provides a trading update and strategic progress. The Group expects FY23 sales to be slightly lower than market expectations, at c.£60m, with underlying PBT to be in the region of £0.5m-£1m, with a profitable and cash generative Q4 2023. Q3 trading continued to be negatively affected by a reduction in order frequency but cancellation and conversion rates have started to improve since the end of H1. The Group maintains a gross cash position of £12.3m as at 28 April 2023 and no debt. With the progress made on initiatives in cost control and customer acquisitions, the Board expects double digit sales growth in FY24, alongside EBITDA margin of c.4%-5%, as inflationary pressures particularly on freight and glass start to ease.

4 May 2023
*A corporate client of Hybridan LLP or retained by Hybridan LLP for certain services
** Arranged by most recent first
*** Alphabetically arranged
**** Potential means Intention to Float (ITF) has been announced, or it is a rumour


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