Small Cap Feast

4th October 2022

Dish of the day
No Joiners today
Off the menu
No leavers today
Dish Of The Day:
Milton Capital plc (MII.L) has joined the Main Market.
Off The Menu:
No leavers today.

What’s Cooking In The IPO Kitchen?

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. Due 31 October 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. Timing TBC.

Independent Living REIT plc, intends to float on the Premium Segment of the Main Market. The Company’s investment objective is to address the shortage of high-quality supported housing, delivering capital growth and inflation-linked income returns for its investors whilst providing a fair deal for society through savings for the UK taxpayer, and improved outcomes for residents. Raising £150m. Delayed from 4 Oct 2022.

The Sustainable Farmland Trust PLC, intends to float on the Premium Segment of the Main Market. The Company invests in a diversified portfolio of farmland and related agriculture-focused assets predominantly located in the US. Raising £200m. Expected 12 October 2022.

Welkin China Private Equity, newly established closed-ended investment company dedicated to investing in unquoted Chinese companies, intends to join the Premium Segment of the Main Market. The Company is targeting a raise of up to US$300m. Due 3 November 2022.

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

Allergy Therapeutics 16p £103.1m (AGY.L)

The fully integrated commercial biotechnology company specialising in allergen immunotherapy, announces that it has proactively paused production at the Freeman facility, part of its Worthing, UK manufacturing site, in order to accelerate ongoing site improvements. No areas for improvement are related to the safety of products and all of the Group’s clinical trials remain unaffected. Management believes that the pause in production will be confined to a number of weeks and is working to limit the impact on revenue in that period.

ECR Minerals 0.75p £8.0m (ECR.L)

The exploration and development company focused on gold in Australia, announces an update on the stream sediment sampling campaign currently in progress on its tenements at Lolworth Range, North Queensland, Australia. ECR Minerals plc has 100% ownership of 3 exploration tenements (EPM27901, EPM27902 and EPM27903). The program is close to 75% completion and more than 91 samples have been despatched and awaiting results from the laboratory.

Gateley Holdings 191.5p £238.6m (GTLY.L)

The legal and professional services group announces the acquisition of Symbiosis IP Limited (Symbiosis) for a maximum consideration of circa £2.5m. Symbiosis is a chartered patent attorney firm specialising in IP services for the life sciences industry. It is the second patent attorney business Gateley has acquired onto its Business Services Platform following the acquisition of Adamson Jones in January 2022. For the year ended 31 March 2022, Symbiosis delivered revenue of £1.8m and a profit before tax of £0.3m.

Inspiration Healthcare Group 74.5p £50.8m (IHC.L)

The medical technology company announces its unaudited results for the six months ended 31 July 2022 (1H22). Total revenue was £20.5m, flattish (1H21: £20.9m) and operating profit was £1.1m, down 58% (1H21: £2.6m). Net cash was £3.3m, down 62% year-on-year. However, the company remains confident in profit forecast for the current financial year. This confidence is based on production transferred to the new manufacturing and technology centre, a comprehensive and diverse range of products and a strong order book.

N4 Pharma 2.2p £4.0m (N4P.L)

The specialist pharmaceutical company developing Nuvec®, a novel delivery system for cancer treatments and vaccines, announces successful in vitro testing of Nuvec® loaded with two small interfering RNA (siRNA) probes. CEO Nigel Theobaldany indicated that Nuvec® loaded with two generic siRNA probes still achieves significant silencing of respective genes is validation for the work announced on 14 September with EGFR and BCl-2 in a PC9 lung cancer model. “Achieving the initial successful testing of Nuvec ® with the generic GFP and EHMT-2 siRNA will also allow us to commence commercial outreach discussions.”

Physiomics* 2.2p £2.1m (PYC.L)

The consultancy using mathematical models to support the development of drug treatment regimens and personalised medicine solutions, announces that it has been awarded a third contract by existing client, Numab Therapeutics. Physiomics will use its PKPD modelling capabilities to support the translation of pre-clinical to clinical data with a focus on dose selection. The project is expected to be completed between now and the end of the calendar year.

Semper Fortis Esports* 0.47p £1.9m (AQSE: SEMP)

The esports company focused on establishing esports teams and forming brand and technology partnerships has reached an agreement with 4 team ‘Oxygen Esports” for the sale of SMPR player ‘Archie’ for a transfer fee of $35k. Jassem Osseiran, COO of Semper Fortis Esports, commented: “We would like to thank Archie for his noteworthy performances under the SMPR brand and wish him all the best in his career moving forward.”

The Character Group 445p £85.9m (CCT.L)

The toy company provides a trading update before the results of the financial year ended 31 August 2022 to be released in December 2022. The Board expects the Group’s underlying profit before tax and highlighted items for the year ended 31 August 2022 to be broadly in line with current market expectations. However, given the current macro-economic headwinds, the Board considers that the trading performance for the current financial year is unlikely to match the expected outcome for the year ended 31 August 2022. That said, the Group continues to trade profitably and has a strong balance sheet. The Board is, accordingly, committed to maintaining its progressive dividend policy.

WANdisco 517.5p £344.7m (WAND.L)

The data activation platform announces that it has signed a follow-on agreement worth $7.1m with a large European automotive components supplier. This client initially entered into a Commit-to-Consume contract with WANdisco valued at a minimum of $5m over 5 years as announced on 4 July 2022. Terms were originally signed to replicate automobile sensor data to the Amazon Web Services cloud. However, initial data to be transferred exceeds the volume of data agreed in the Original Contract. As a result, WANdisco has entered into the follow-on contract providing that 50% of the aggregated $12.1m will be paid in advance.

Watkin Jones 100.3p £257.2m (WJG.L)

The residential property developer, builder and manager, provides a trading update for the year ended 30 September 2022 (FY22). Two forward sales previously expected to close in September have been impacted by the recent market volatility, and these are now planned to transact in FY23. As a result, the Board expects FY-2022 underlying operating profit to be c.10% below current market expectations. The Board also believe it is prudent to assume margin pressure as a result of purchasers’ elevated borrowing costs will continue into FY23.

4 October 2022
*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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