Hybridan Small Cap Feast

Joiners: Made Tech Group (MTEC.L) has joined AIM, a provider of digital, data and technology services to the UK public sector. Founded in 2008 and now with a headcount of over 240 across four UK locations (London, Manchester, Bristol and Swansea), Made Tech provides services that enable central government, healthcare and local government organisations to digitally transform. The Company works directly with public sector clients to drive the digital transformation of citizen services, creating efficiencies for clients and saving taxpayers money. Size of offer £85.4m. Market Cap of approximately £180.7m

Oxford Nanopore Technologies (ONT.L) has joined Main Market on the LSE. Oxford Nanopore Technologies is a United Kingdom-based company, which is a provider of nanopore-based electronic molecular analysis systems for analysis of single molecules, including deoxyribonucleic acid (DNA), ribonucleic acid (RNA) and proteins. Market Capitalisation will be approximately £3.4bln.

Bay Capital (BAY.L), has joined the Main Market on the LSE. The company is focused on investment and acquisition opportunities in the industrial, construction and business services sectors, and software and technology companies which service those industries.

Leavers: No leavers today.

Banquet Buffet

ADM Energy* 2.35p  £3.6m (ADME.L)

A natural resources investing company, announces its audited full year results for the 12 months ended 31 December 2020. Key points include: Revenue £0.8m (£2.5m 2019); Loss before and after tax £6.9m (£1.7m 2019); Signed an MOU with Trafigura Pte Ltd, the multi-billion-dollar global trading house, for a strategic alliance to develop investment opportunities in the African energy sector; Delivered strategic agreement with EER (Colobos) Nigeria Limited to increase ADM’s interest in the field revenue interest nearly doubled from 5% to 9.2% and ADM’s share of net 2P reserves increased from 8.9 MMboe to 16.4 MMboe; During a period of depressed oil prices, the company took the opportunity to acquire attractive assets at substantially depressed valuations, such as their increased interest in OML 113. Osamede Okhomina, CEO of ADM Energy, said “We remain in the market for new opportunities to accelerate our growth. Our management and technical teams are actively assessing investment propositions on a regular basis and progressing those that are most compelling. It remains a buyer’s market and ADM is in a strong position to de-risk projects through our technical expertise and access to capital. We continue to pursue high-quality assets in West Africa with substantial upside and the potential to further accelerate our future growth.”

Getech 22.50p  £15m (GTC.L)

A provider of geoscience data, knowledge and software to the energy industry, announces its unaudited results and report for the six months to 30 June 2021. Highlights include: Revenue up 16% year-on-year, petroleum operations returning to cash profit. Group Orderbook fully replenished at end July 2021 (£2.7m), annualised recurring revenue steady (£2.2m). Cash at 30 June £6.8m (31 Dec 2020: £2.2m), plus £2.3m of receivables (31 Dec 2020: £1.4m). Significant investment in new skills, technology and staff are reshaping Getech around the Energy Transition. This opens multiple transformational opportunities, funded by March 2021 fundraise (£5.7 million, net of costs). First phases of Geothermal and Strategic Minerals investment completed. New cloud-based products to be delivered from October through an innovative new Getech platform, designed to agglomerate energy transition data and knowledge. Customer engagement is positive, spanning licensed product subscriptions and service provision. Management are looking forward to what it believes will be another transformational, busy and rewarding period for the Getech Group.

Physiomics* 6.50p  £6.3m (PYC.L)

The consultancy using mathematical models to support the development of drug treatment regimens and personalised medicine solutions, announces Final Results for the year 30June 2021. Highlights include: Total income (revenue and grant income) £730,899 (2020: £841,649), the third highest in the Company’s history despite a full year of the impact of Covid-19. The operating loss £337,040 (2020: £134,385); Cash and cash equivalents at 30 June 2021 of £1,043,450 (30 June 2020: £1,047,860). Robust operational performance with repeat business from longstanding clients Merck and Bicycle Therapeutics and new client wins Astellas Pharma in July 2020 and Numab Therapeutics in May 2021. After the period end, the Company also expanded both its technical team through the recruitment of new scientist and enhanced its business development capabilities through the recruitment of its first Head of Business Development. Dr Paul Harper, non-executive Chairman commented: “Despite COVID related headwinds, the Company has hit the trading targets announced on 10 May 2021 and careful cash management has meant that the Company finished the year with over £1m of cash. In addition to adding new clients Astellas Pharma Inc and Numab Therapeutics over the course of the year, the Company initiated a number of longer-term value-generating activities including an expanded agreement with ValiRx and new personalised medicine partnership with US company TabulaRasa Healthcare’s subsidiary DoseMeRx.” 

Savannah Energy 3.95p  £66.7m (.L)

The African-focused British independent energy company sustainably developing high quality, high potential energy projects in Nigeria and Niger, announces unaudited interim results for the six months ended 30 June 2021 and outlook for the FY 2021. Highlights include: Total Revenues of US$116.5m (up 2% on H1 2020 Total Revenues of US$114.6m), in line with 2021 guidance of over US$205m for the full year; Average realised gas price of US$4.2/Mscf (H1 2020: US$3.9/Mscf) and an average realised liquids price of US$63.5/bbl (H1 2020: US$48.3/ bbl); Adjusted EBITDA of US$91.5m (H1 2020: US$89.2m); Cash at bankUS$135.7m as at 30 June 2021 (Year-end 2020: US$106.0m). Average gross daily production, of which 88.6% was gas, increased 6% during H1 2021 to 22.6 Kboepd (H1 2020: 21.3 Kboepd). This includes a 6% increase in production from the Uquo gas field compared to the same period last year, from 113.5 MMscfpd (18.9 Kboepd) to 120.2 MMscfpd (20.0 Kboepd). Andrew Knott, CEO of Savannah Energy, said: “ Our operational performance has been excellent which is important to all our stakeholders as we continue to play a vital role in driving economic growth and living standards in our countries of operation. This growth is set to continue as we progress discussions with ExxonMobil with respect to the proposed acquisition of its entire upstream and midstream assets in Chad and Cameroon and begin an anticipated new investment programme on our Niger assets, over which we are pleased to have agreed terms for an extension of up to 10 years”.

Scirocco Energy 0.975p  £7.4m (SCIR.L)

The AIM investing company targeting attractive assets within the European sustainable energy and circular economy markets, announces its unaudited interim results for the six months ended 30 June 2021. Held group cash at 30 June 2021 of £2.3m. The Board announced its proposed investment into Energy Acquisitions Group Ltd (“EAG”), a specialist acquisition and operating vehicle in the sustainable energy sector signaling the Company’s first investment as part of the Company’s revised strategy that targets opportunities within the sustainable energy and circular economy markets in Europe. Investment in EAG allows Scirocco Energy to leverage EAG’s strong network and industry leading expertise to gain access to a series of already identified acquisition opportunities within the Anaerobic Digestion (“AD”) sector totaling c.£30m in value. The Company partially exited its shareholding in Helium One realizing c. £3.3m in proceeds during the period.

WANdisco 292p  £173.1m (WAND.L)

The LiveData company, has won a contract with the analytics division of one of the world’s largest telecommunications companies (‘the Client’) to migrate analytical data to the Microsoft Azure cloud, worth c.$1m over a maximum term of 5 years. The Client is an existing customer of LiveData Plane and has now entered into a ‘Commit to Consume’ contract to deploy WANdisco’s LiveData Migrator for Azure (LDMA) to migrate business critical analytical data from an on- premise Vertica system to the cloud. WANdisco’s unique technology was the only solution capable of moving the live data set to the cloud within Azure’s ecosystem effectively and without disruption. The agreement is an example of a ‘Commit to Consume’ contract and aligns revenue to the consumption of services, as is the standard in the cloud, enhancing the visibility of future revenues. The Client has committed to a minimum of 5PB over a maximum term of five years. This represents only a fraction of the Client’s data estate and there is a significant opportunity for further consumption growth and commercial upside for WANdisco.

Zephyr Energy 6.05p  £78.1m (ZPHR.L)

The Rocky Mountain oil and gas company focused on responsible resource development from carbon-neutral operations, announce sits unaudited interim results for the six months ended 30 June 2021. The State 16-2LN-CC horizontal well was safely drilled to a total depth of 14,370 feet (“ft”) with 4,555 ft of horizontal landed successfully in the Cane Creek reservoir target. Zephyr completed four acquisitions which provide the Company with working interests in 22 wells across multiple pads and operators 7 wells are currently producing, and 15 wells are drilled and currently awaiting completion. Q2 2021 production averaged 148 barrels of oil equivalent per day (“boe/d”) net to Zephyr, with an average realised sales price of US$52.90 per barrels of oil equivalent (“boe”). Zephyr its ambitious Environmental, Social and Governance target to commence 100% carbon neutral operations by 30 September 2021.  Colin Harrington, Zephyr’s Chief Executive said: “I am delighted by the tremendous growth and progress delivered during the period under review. Zephyr is now ideally positioned as a cash generating platform from which to deliver significant future growth for our Shareholders.”

7digital Group 0.50p  £12.9m (7DIG.L)

The global leader in B2B end-to-end digital music solutions, announces its interim results for the six months ended 30 June 2021. Highlights include: Revenues increased by 6% to £3.3m (H1 2020: £3.1m); Gross margin of 62.6% (H1 2020: 65.9%); AdjustedEBITDA loss reduced to £1.0m (H1 2020: loss of £1.1m). Operating loss of £1.9m (H1 2020: loss of £1.0m); Cash and cash equivalents at 30 June 2021 of £0.5m (31 December 2020: £2.8m; 30 June 2020: £0.2m) and £0.2m at 29 September 2021; Long-term contracts with seven new licensing customers during the period, and a further two post period, as the Company continued its strategic expansion in its key growth markets of fitness and wellness, social media and artist monetisation. The Board is confident that some of the prospective contracts, which represent significant revenue, will be signed in the near-term and that the others in the pipeline will follow in due course. It expects to regain EBITDA positivity for Q4 2021 and is very confident of delivering EBITDA positivity for full year 2022 with significant revenue growth.

What’s cooking in the IPO kitchen?

Castlenau Group to join  the Specialist Fund Segment of the LSE’s Main Market. Castelnau was incorporated with limited liability in Guernsey under the Companies Law on 13 March 2020 as a closed-ended company limited by shares. The Company’s investment objective is to compound shareholders’ capital at a higher rate of return than the FTSE All Share Total Return Index over the long term. The Company is targeting an issue in excess of £170m. Sir Peter Wood, British entrepreneur and innovator, has committed to make a cornerstone investment of £25m  in the Initial Placing. Due 18 Oct.   

Tortilla Mexican Grill, the largest and most successful fast-casual Mexican restaurant group in the UK to join AIM. Offer TBA. Due 8 Oct

Eurowag confirms its intention to undertake an initial public offering on the Main Market (Premium). The Offer would be expected to comprise both (i) new Ordinary Shares to be issued by the Company, raising gross proceeds of approximately EUR200m to support Eurowag’s growth strategy and (ii) existing Ordinary Shares to be sold by existing Eurowag shareholders. Eurowag is a leading pan-European integrated payments & mobility platform focused on the commercial road transportation industry. It makes life simpler for commercial drivers and operators across Europe through its unique combination of payments solutions, seamless technology, a data-driven digital eco-system and high-quality customer service. Due October.

Light Science Tech Holdings, the holding company of the Group’s contract electronics manufacturing division, UK Circuits and Electronics Solutions Limited, and its controlled environment agriculture division, Light Science Technologies Ltd to join AIM. Due early Oct. Offer TBA.

Responsible Housing REIT to join the Main Market (Premium) raising up to £250m. The Company’s investment objective is to generate a consistent and sustainable income-based return from the provision of Supported Housing accommodation assets and aligned sectors. The Company will acquire and create quality, fit-for-purpose accommodation assets to cater for supported residents across a number of care sectors including adults and young people with learning disabilities, mental health issues, physical disabilities, addiction, those with support needs, those in need of temporary accommodation, the elderly and otherwise vulnerable individuals.

Arrow Exploration, currently on the TSX Venture exchange to dual list on AIM. Arrow has a portfolio of operated and non-operated interests in producing Colombian oil assets, together with a producing Western Canadian natural gas asset. The Company also has interests in development assets in Colombia. The Company has interests in six onshore blocks in Colombia, held through Arrow’s wholly-owned subsidiary in Colombia, Carrao Energy S.A., and in oil and gas leases in seven areas in Alberta, Canada, held through Arrow’s wholly-owned Canadian subsidiary Arrow Holdings Ltd. Offer TBA. Due end Sep.

Marley Group, a UK leader in the manufacture and supply of pitched roof systems to the construction market , today announces that it is considering an initial public offering on the Main Market (Premium). In HY Jun 2021 revenues grew from £52.1m to £76m with underlying EBITDA more than doubling to £21.8m Timing and offer TBA.

Fruugo.com  which owns and operates a high growth and profitable global cross-border marketplace employing its own proprietary technology and data science, announces its intention to seek admission of its shares to trading on AIM. Due early Oct. Timing and offer TBA.

Optima Health is the UK’s leading provider by size of technology enabled corporate health and wellbeing solutions. To join AIM late Sep. Offer TBA.

Blackfinch Renewable European Income Trust plc, a closed-end investment trust established to invest in a diversified portfolio of mixed renewable energy infrastructure assets, is considering proceeding with an initial public offering and has published a registration document. Raising up to £300m. Due on the Main Market (Premium) in October.

Central Copper Resources, a company focused on delivering a high grade copper project into production and exploration of assets in the Democratic Republic of the Congo (DRC) and in the Republic of Zambia to join AIM. By 2022, CCR intends to be ready to commence the project financing of its Mbamba Kilenda copper project. Offer TBA. Due Late September.

Euro Sun Mining Inc (TSX:ESM) seeking to join the Main Market in Q3 2021. The Company’s main asset, the Rovina Valley Project, which contains the Rovina, Colnic and Ciresata deposits, is one of the largest undeveloped copper-gold projects in Europe, holding approximately 400Mt of confirmed resources containing 7.0m ounces of gold and 1.4 bn lbs of copper.

*A corporate client of Hybridan LLP

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