Hybridan Small Cap Feast

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Hybridan Small Cap Feast

A round up of the day’s news brought to you by the team at small-cap broker and advisor Hybridan.

Dish of the day

Glantus Holdings GLAN.L, a provider of accounts payable automation and analytics solutions, has joined AIM. It is focusing on three product areas; Active AP Discovery, Intelligent AP Automation and Advanced AP Analytics, it utilises its internally developed data platform to offer an integrated solution for the finance function, accounts payable in particular. These solutions are offered to over 300 customers, more than 50 of which Glantus classifies as large enterprises. From 2019 to 2020 Revenues increased over 150% to EUR8.5m.  89% of 2020 revenues were recurring made up of a combination of subscriptions and transactional revenues. Issue price 102p raising £10m gross with £4m secondary. Mkt Cap £37m.

Off the menu

Kaz Minerals has left the Main Market (premium) following a takeover.

Banquet Buffet

Air Partner 78p £49.6m (AIR.L)

Air Partner plc, the global aviation services group, today reports results for the year ended 31 January 2021. Gross profit up £10.7m (31.3%) to £44.9m due to exceptional trading in Group Charter and Freight. Overall, the US contributed 39.6% to total Group gross profit. Underlying* profit before tax of £11.6m, up £7.4m year on year (176.2%), driven by strong trading and cost saving measures. Recommended final dividend of 1.6p per share (2020: 0.0p), making total of 2.4p per share for the whole year, up 33.3% on prior year (1.8p). Strong start to the current year with Q1 performance ahead of management’s expectations. Trading levels for Q2 also expected to be ahead of management’s original forecast, subject to government restrictions being lifted.

Advance Energy 2.35p £24.1m (ADV.L)

The energy company seeking growth through acquisition or farm-in to non-operated interests in discovered upstream projects, announced a Buffalo-10 drilling update provided by Carnarvon Petroleum Limited. Buffalo-10 well is planned to be drilled in the fourth quarter of 2021. Advance Energy’s payment of US$20m to acquire a 50% interest in the Buffalo PSC will be utilised for the drilling of the Buffalo-10 well. Procurement of long lead equipment has commenced and is progressing well. The tender process for a drilling rig is nearing completion.

Brave Bison 1.45p £8.9m (BBSN.L)

The social media and marketing group, announces that it has been reappointed by VOXI as their influencer marketing partner following a successful trial campaign at the end of 2020. VOXI, part of Vodafone Group, is a mobile network that offers unique data plans targeted at Millennial and Gen Z customers. VOXI initially partnered with Brave Bison in 2020 to launch a talent-led social marketing campaign across digital platforms aimed at educating youth audiences on VOXI’s unique proposition. The initial campaign was a great success, generating over 10m impressions and 700,000 video views. Brave Bison will build upon the success of the initial partnership by producing creative content that will drive more sign-ups to VOXI and further increase brand awareness. The new campaign will feature some of the original content creators from the first campaign, alongside new talent with high engagement rates. 

Invinity Energy Systems 123p £107m (IES.L)

Invinity Energy Nexus Limited, a wholly-owned subsidiary of Invinity Energy Systems has entered into a Joint Development and Commercialization Agreement (JDCA) with Gamesa Electric S.A.U., a wholly-owned subsidiary of Siemens Gamesa Renewable Energy, to:· jointly develop a grid-scale vanadium flow battery (VFB) based on Invinity’s proven technology and incorporating Gamesa Electric’s advanced power conversion systems; cooperatively manufacture the VFB upon achieving a jointly validated design; and commercialise the VFB through each company’s sales channels. The JDCA sets out a detailed development program for the next-generation VFB that is expected to take approximately two years to reach commercialisation. Over this period, Gamesa Electric has agreed to fund an aggregate US$4.62m of Invinity’s activities within the joint development program, payable as development milestones are met.

Oxford Metrics 97.5p £121.4m (OMG.L)

The international software company servicing government, life sciences, entertainment and engineering markets, announced that Vicon, a world leader in motion measurement, has won a contract with Sharkmob, a triple-A game developer, to deploy its flagship Vantage solution, flexible Vero system and Shōgun software. Sharkmob will be launching a performance capture studio in the summer of 2021 in Malmö, Sweden. The studio will house a powerful combination of 24 Vantage cameras, eight Vero cameras and Shōgun software. Using Vicon, Sharkmob will be able to capture the performance of multiple actors in real-time and showcase more realistic characters, helping to achieve their ambition of taking multiplayer games to new heights. This competitive contract win showcases the strength of Vicon’s real-time tracking capabilities.

Physiomics* 5.95p £5.7m (PYC.L)

The consultancy using mathematical models to support the development of drug treatment regimens and personalised medicine solutions has been awarded a first contract by new client Numab Therapeutics. Numab is an exciting young biopharmaceutical company based in Zurich, Switzerland which is developing multi-specific biotherapeutics for chronic inflammation and cancer. Physiomics has recent significant experience of the mathematical modelling of multi-specific pharmaceuticals which it will bring to bear on an undisclosed Numab compound in this project that is expected to last around three months. Physiomics CEO, Dr Jim Millen, commented: “We are delighted that Numab has selected Physiomics to support them with one of their new programs and look forward to working with their highly talented team.”

Summerway Capital 183.5p £15.3m (SWC.L)

Summerway Capital Plc announces its unaudited condensed interim results for the six months ended 28 February 2021. Over the period, Summerway incurred a loss after taxation of £217.6k (2020: £86.7k), reflecting operating expenses of £106.5k (2020: £97.9k), share based payment expense of £20.4k (2020: Nil), one-off costs relating to the placing of shares and change in investment strategy of £92.2k (2020: Nil) and finance income of £1.5k (2020: £11.2k). As at 28 February 2021, Summerway held £6.957m cash (31 August 2020 £5.488m). Vin Murria OBE, Summerway’s Chairman, commented: “The Group continues to pursue its recently approved investment strategy and has an active pipeline of investment and acquisition opportunities, which are currently under assessment. As a Board, we remain encouraged about the opportunity for securing the Group’s inaugural transaction, and we look forward to updating Shareholders on progress in due course.”

ULS Technology 96.5p  £62.3m (ULS.L)

The provider of online B2B platforms for the UK conveyancing and financial intermediary markets, provided a trading update for the 12 months to 31 March 2021. Following the £27m sale of Conveyancing Alliance Limited (CAL) in November 2020, all financial information in this announcement relates only to the Group’s continuing operations. The Board expects financial results for the Period will exceed management’s expectations. The second half of the Period was strong as the housing market materially improved following the easing of lockdown restrictions and there was a significant recovery in volumes from their broker channel following management focus on this area. Given the volatility of housing market transactions during the Period, the Board is pleased with the overall level of revenue generated and the very strong recovery in the second half.Revenues in H2 2021 were c.£10.6m versus £6.3m in H1 2021 resulting in total revenues of £16.9m for the year (2020: £20.7m). Due to these lower revenues and a significant investment in DigitalMove, the Group expects to make an underlying pre-tax loss for the Period of c.£0.8m (2020: underlying pre-tax profit of £2.4m). IFRS reported pre-tax profit for the Period will be substantially higher as it will include the profit from the sale of CAL. As a result of the CAL sale, the Group retained cash balances as at 31 March 2021 of circa £24m with no debt.

Vector Capital 47p £19.8m (VCAP.L)

AGM Statement from the commercial lending group that offers secured loans primarily to property developers located in England & Wales. Vector Capital’s shares were admitted to trading on AIM on 29 December 2020 and the Company raised gross proceeds of £3.1m (net £2.6m) at that time. The net proceeds have largely been deployed into new lending and will provide the base for drawing down further on its debt facilities. Current trading in 2021 has been in line with expectations and the Company’s pipeline of new loan opportunities remains strong. The Company is now concentrating on loan book growth by enhancing its engagements with its broker network. The Company is also introducing additional staff training programs so that the existing team can handle increased activity. It is not anticipated that the Company will be required to increase its headcount this year. Discussions have been held with the Company’s two wholesale lenders, Shawbrook Bank and Aldermore Bank. Both banks are fully supportive of the Group’s operations and have indicated that they would be ready to increase the facilities should the Company request them. The Group has also been approached by three other wholesale banking providers who have offered indicative terms on additional facilities

Yellow Cake 273.25p £3.25m (YCA.L)

The specialist company operating in the uranium sector, with a view to holding physical uranium for the long term, has purchased 343,053 lb of U3O8 in the market at a price of $29.15/lb for total consideration of US$10m. Yellow Cake will take delivery of the U3O8 at Cameco’s Port Hope / Blind River facility in Ontario, Canada during May 2021. In addition to this transaction, and as previously announced, Yellow Cake has committed to purchase 3.45m lb of U3O8 through the exercise of its option with Kazatomprom. A delivery schedule between May and August 2021 will be agreed between Yellow Cake and Kazatomprom. It is expected that once these two transactions have completed, the Company’s uranium holdings will increase from 9.50m lb U3O8 to 13.31m lb U3O8 acquired at a volume weighted average price of US$24.05/lb.

What’s cooking in the IPO kitchen?

Pharma C Investments to list as a SPAC on the Access Segment of the AQSE Growth Market. It is specifically seeking to take advantage of the dynamic regulatory environment surrounding legal Medicinal Cannabis.  Due 26 May. No shares being issued on admission.

Aquila Energy Efficiency Trust to admit its shares on the Main Market (Premium). Seeking raise of up to £150m. The Company will seek to generate attractive returns for Shareholders, principally in the form of income distributions by investing in a diversified portfolio of Energy Efficiency Investments. Due 2 June

Taylor Maritime Investments to join the Main Market (Premium). The Company is an internally managed investment company with an Executive Team led by Edward Buttery. The Executive Team has to date worked closely together for the Commercial Manager, Taylor Maritime. Established in 2014 by Edward Buttery, Taylor Maritime is a privately owned ship-owning and management business with a seasoned team that includes the founders of dry bulk shipping company Pacific Basin Shipping (listed in Hong Kong 2343.HK) and gas shipping company BW Epic Kosan (formerly Epic Shipping) (listed in Oslo BWEK:NO). Taylor Maritime’s team of experienced industry professionals is based in Hong Kong and London. Taylor Maritime’s principals have been some of the most active buyers of Handysize and Supramax dry bulk ships having made over US$1.3b of asset purchases and sales since 1987. Seeking a $250m raise. Due 27 May 2021

Kitwave Group, the independent, delivered wholesale business to join AIM. The Placing of the Placing Shares will raise gross proceeds of £64.0m for the Company and the Placing of the Secondary Placing Shares will raise gross proceeds of £17.6m for the Selling Shareholders. Mkt cap £105m. The management team, led by Paul Young, has overseen significant growth in both revenue and operating profit with revenue and Adjusted EBITDA growing to £592.0m and £27.6m respectively in FP20 (an 18-month period). In the 12 months to 30 April 2020, the Group’s revenue and Adjusted EBITDA was £399.0m and £17.5m respectively. Due 24 May.

Belluscura to Join AIM.  The designer and manufacturer of FDA cleared, lightweight and portable oxygen concentrators to raise £15m, with an expected pre-money market capitalisation of £35-40mDue late May.

Dianomi, the provider of native digital advertising services to premium clients in the Financial Services and Business sectors, announces its intention to seek admission of its shares to trading on AIM. Admission is expected to take place during May 2021. Offer details TBA. In FY 2020, revenue was £28.43m, representing growth of 58.8% compared to FY19. The majority of the Group’s revenue is generated in the Americas (FY20: 76.6 %) followed by EMEA (FY20: 17.0%.), and APAC (FY20: 6.4%.) Earnings before interest and taxation was £2.02m in FY20 having grown from £0.25m in FY19. 

Boanerges Limited, announces an application of admission onto the Aquis Stock Exchange. The Directors believe that an opportunity exists to acquire and consolidate holdings in SMEs operating in the technology sector, with the intention of creating value for Shareholders. Initially, the Company’s focus will be searching for companies which are based in the UK or Europe where there may be a number of opportunities to acquire interests in undervalued or pre-commercialisation technologies, or current commercialisation technologies, which when applied, produce cost saving or revenue enhancement for customers. Technology company acquisitions may include those involved in Big Data, Machine Learning, Telematics and Internet of Things sectors. Early acquisition of these innovative technologies should provide maximum returns for Shareholders. Expected 17th May.

Voyager Life, the health and wellness company established to supply high-quality Cannabidiol (CBD) and hemp seed oil products, announces the Company’s intention to seek admission to trading on the Aquis Stock Exchange Growth Market (Access Segment). Admission on AQSE is expected to occur before the end of June 2021. Voyager was incorporated in November 2020 as a health and wellness business focused on CBD and hemp seed oil products. The Company’s directors believe that a significant opportunity exists in the CBD market due to the forecast growth and ongoing regulatory changes.

Alphawave IP Group is considering an IPO on the Main Market (Standard). Alphawave IP is a leading semiconductor IP company focusing on the hardest-to-solve connectivity challenges created by the exponential growth of data. Funds and accounts managed by BlackRock, and Janus Henderson, have each entered into cornerstone agreements with the Company to subscribe for, subject to certain conditions, in aggregate, c. USD 510m of Offer Shares at an offer price representing an equity value of up to USD 4.5b for the Group at Admission. During the year ended 31 December 2020, the group generated revenue of USD 32.8m, exhibiting robust growth and delivering a CAGR of 161 per cent. since the year ended 31 May 2018.

Thor Explorations (TSXV:THX) seeking a secondary listing on AIM. The Company is targeting Admission during Q2 21. Segun Lawson, President & CEO, stated: “Thor Explorations has advanced significantly, in both project development and capitalisation since the acquisition of Segilola in 2016. This year, the Company is well positioned to achieve two major milestones with the commencement of gold production at Segilola in Nigeria and a maiden resource at Douta in Senegal, as well as continuing to progress our highly prospective Nigerian exploration portfolio on the Ilesha Schist belt.”

Imperial X (AQSE:IMPP) to join the Main Market (Standard). It is also proposed that on Admission to the Official List, the Company will change its name to Cloudbreak Discovery Plc.  With effect from Admission, Imperial X will hold equity positions and royalties in a variety of projects in the natural resources sector across multiple jurisdictions, primarily in the Americas and Africa. The Company is proposing to raise up to £1.5m by way of placing of new Ordinary Shares to support further prospect acquisitions. Current Mkt cap £4.7m. Expected tbc.

*A corporate client of Hybridan LLP

This document has been prepared by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. Recipients should make their own investment decisions based upon their own financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor. The information contained in this document is based on materials and sources that are believed to be reliable; however, they have not been independently verified and are not guaranteed as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such. Any and all opinions expressed are current opinions as of the date appearing on this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document. This document is sent to you as market commentary only. As market commentary this document does not constitute any of (i) investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments for the purposes of the UK retained version of section B of annex I to Directive 2014/65/EU (“MIFID II Directive”); or (ii) investment research as defined in the UK retained version of article 36(1) of Commission Delegated Regulation 2017/565/EU made pursuant to the MIFID II Directive; or (iii) non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook).


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