Small Cap Feast

6th July 2022

Dish of the day
No Joiners today
Off the menu
No leavers today
Dish Of The Day:
LifeSafe Holdings (LIFS.L) joins AIM. The fire safety technology business with innovative fire safety products, has developed what the Directors believe to be market disrupting, eco-friendly fire safety protection products to both protect (via fire extinguishers) and detect (via carbon monoxide, smoke and heat alarms) fires. The Company raised £3m on Admission. Market Cap approximately £16.6m.
Off The Menu:
No leavers today.

What’s Cooking In The IPO Kitchen?

Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide customers with an overdraft facility without having to change their current account or request an overdraft from their existing bank. Fiinu’s technology arm manages and develops the platform, using open banking, and once the platform is fully operational will also look to develop secondary revenue streams by licensing Fiinu’s intellectual property rights. Capital to be raised £8.01m. Target Mkt Cap c.£53m. Due 8 July.

MicrosSalt, a portfolio company of Tekcapital Plc (AIM: TEK), is eyeing a listing on the London market in 2023. MicroSalt is the U.S. operating subsidiary of Salarius, Ltd. With MicroSalt®, companies can make full flavour snacks with the same saltiness as traditional snacks yet with half of the sodium. MicroSalt has recently executed its first bulk B2B MicroSalt order in the US. This progress follows on the heels of the expansion of MicroSalt’s SaltMe brand of low-sodium potato chips into over 3,000 retail stores nationwide in the U.S., up from 2,400 stores last quarter.

Breakfast Buffet

ActiveOps 73.5p £52.5m (AOM.L)

The provider of Management Process Automation software for global back-offices announced its results for the year ended 31 March 2022 (FY22). Total revenue grew 12% to £22.9m. Gross margins remained strong at 81%, supported by remote implementations. A loss of £0.3m was recorded at the adjusted EBITDA level (FY21 profit £0.4m), reflecting additional investment in sales and R&D. The company had a net cash of £13.8m exiting FY22 (FY21: £13.1m). Trading in the new financial year has begun in line with management expectations and on target to generate a positive run-rate EBITDA at the end of the current financial year.

AO World 45.5p £228.3m (AO..L)

The online electricals retailer announced its intention to conduct a placing of new ordinary shares at 43p per share. There will be a separate offer of new ordinary shares to retail investors via the PrimaryBid platform. The placing of new ordinary shares and the PrimaryBid offer together are intended to raise gross proceeds of approximately £40m. The net proceeds of will be used to strengthen the balance sheet and increase liquidity back to historic levels (relative to revenue base). The company has decided to close its German operations. The successful execution of this realigned and simplified UK plan is targeting to deliver in the medium term: average revenue growth of 10+% p.a., EBITDA margin of 5+% and improved cash generation with FY23 capex expected to be c. £5m.

Argentex Group 76.9p £87.1m (AGFX.L)

The international provider of foreign exchange services to institutions, corporates and high net worth private individuals, issued its results for the year ended 31 March 2022. Group revenue increased by 23% to £34.5m, including £8.0m from new clients. Adjusted operating profit went up 26% to £11.0m. Earnings per share was 6.6p (basic) and 7.0p (adjusted) (2021: 5.2p basic and 5.9p adjusted). Over 80% of volumes comprised trades in sterling, euro and US dollar, significantly limiting impact of risks in emerging market currencies. Current trading has been positive with first quarter revenue increasing by 22% to £10.1m.

C4X Discovery Holdings 21.7p £49.7m (C4XD.L)

The drug discovery company focused on small molecules announced the receipt of the first milestone payment of EUR3m from Sanofi under the oral IL-17A Inhibitor programme license agreement entered into in April 2021. Under the terms of the deal, C4XD is entitled to up to a total of EUR414m in upfront, pre-clinical, development, regulatory and commercialisation milestone payments plus royalties on future net sales.

D4t4 Solutions 238.5p £95.8m (D4T4.L)

The data solutions provider, announced its results for the year ended 31 March 2022. Total revenues grew 7.3% to £24.5m (2021: £22.8m). Annual recurring revenue as percentage of total revenue increased to 57% (2021: 47%), delivering significant progress against medium term target of 65%. Adjusted profit before tax was £3.3m (2021: £4.4m) and statutory profit before tax of £1.8m (2021: £3.0m). Proposed final dividend is 2.07p (2021: 2.00p) and a special dividend of 12.5p per share. Trading during the new financial year has been in line with the Board’s expectations, given good levels of both existing and new client activity.

Distil 1.3p £8.9m (DIS.L)

The owner of premium drinks RedLeg Spiced Rum, Blackwoods Gin and Vodka, TRØVE Botanical Vodka, Blavod Black Vodka, and Diva Vodka announced the appointment of Commercial Director, Alex Baker, as it remodels for accelerated growth. Alex will be responsible for directly managing major UK off-trade customers and developing new export markets. Meanwhile, Distil will be entering a new distribution agreement with Marussia Beverages UK, following the decision to withdraw its portfolio of spirits from long-term UK distributor, Hi-Spirits. This move will give Distil direct contact with customers, allowing for closer and more agile account management.

Inland Homes 30.1p £68.3m (INL.L)

The housebuilder, partnership housing developer and regeneration specialist focused on the South and South East of England announced that it has exchanged contracts for the sale of 22 existing homes along with a plot of land for one single dwelling with Wilton Park, Beaconsfield for a sum of £12.7m. The net receipt of £12.7m will be used to repay gross debt of £9.5m, with the balance of £3.2m improving the company’s working capital.

ProCook Group 41.3p £44.9m (PROC.L)

The UK-based direct-to-consumer specialist kitchenware brand reported its preliminary results for the year ended 3 April 2022. Revenue grew 29.5% to £69.2m, with retail stores re-opened following the end of Covid-19 restrictions. Underlying profit before tax of £9.5m (FY21: £8.3m) reflects the shift back to more normal operating costs post-pandemic. Final dividend of 0.9p is proposed by the Board. The company estimate the UK kitchenware market contracted in its Q1 FY23 by approximately -12%. In light of this macro-economic backdrop and the company’s strategic exit of Amazon UK in June 2021, revenue in the first quarter of £11.4m was -21.6% year on year. The Board expects that revenue for FY23, will be broadly in line with the last year, with underlying profit before tax of between £4-6m.

Savannah Resources 2.3p £39.3m (SAV.L)

The European lithium development company announced that it has been notified by Portugal’s environmental regulator, Agência Portuguesa do Ambiente (APA), regarding the next stage of the Environmental Impact Assessment (the EIA) of the Barroso Lithium Project. APA proposed to move the EIA review process into the Article 16 phase. Under Article 16, Savannah has up to six months to work collaboratively with APA to further optimise certain physical aspects of the project’s design and associated environment, ecology and socio-economic considerations and resubmit them for consideration.

Trakm8 Holdings 16p £8.0m (TRAK.L)

The global telematics and data insight provider announced that it has been awarded a contract with Love Your Miles to provide devices, a custom app and platform services for Love Your Miles’ insurance propositions. This contract is expected to commence writing insurance policies in July 2022. Love Your Miles is an insure-tech start-up. This contract facilitates the launch of Love Your Miles’ mileage-based telematics insurance products.

6 July 2022
*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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