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.

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TMT investments* 7.125c $211.6m (TMT.L)

FY Dec 2021 results from the venture capital company investing in high-growth technology companies.

·    NAV per share of US$6.10 (up 73.3% from US$3.52 as of 31 December 2019) ·    Total NAV of US$177.9m (up from US$102.8m as at 31 December 2019)

·    10 years since admission to AIM in December 2010 ·    NAV per share up 6.4 times since admission (including dividends paid to date) ·    5-year IRR of 28.7% per annum

·    US$41m of net cash proceeds from exits during 2020 ·    US$12.5m of investments across 16 new and existing companies in 2020 ·    US$34.6m in cash reserves as of 24 March 2021

·    Diversified portfolio of over 35 companies focused mainly around big data/cloud, e-commerce, marketplaces, EdTech and SaaS (software-as-a-service) solutions

·    Covid-19’s effect on portfolio companies is mainly neutral or positive, with future performance dependent on how the situation unfolds in coming months

One Heritage Group* 30p  £9.55m (OHG.L)

The UK-based residential developer focused on the North West of England, is pleased to announce its interim results for the six months ended 31 December 2020.

Operating highlights: Successfully listed on the Standard List of the London Stock Exchange on 23 December 2020, raising gross proceeds of £930,000.—Restructured the Group in advance of listing, which included the disposal of two assets and the conversion of £2.75m in shareholder funding into equity. -Acquired 2 developments, Oscar House, Manchester and Bank Street, Sheffield for £1.2m and £0.8m, respectively.

The Group appointed two independent non-executive directors, Mr David Izett as Chairman, and Mr Jeff Pym, and expanded the Executive Management Team with the appointment of Luke Piggin as Finance Director and Martin Crews as Development Director.

Financial highlights: The Group reports a net asset value of £2.8million, 9.25p per share, in its first reporting period following the listing.—Reports a loss for the period of £226,986 as the Group invested in its infrastructure for future growth while progressing existing developments, which are expected to complete and generate profits in the next financial year. -Agreed an increase in its £5.0m loan facility with its majority shareholder to £7.5m to support future acquisitions.

Subsequent Events: Successful placing and subscription of 1.83m ordinary shares, announced on 18 February 2021, raising gross proceeds of £548,500.—Contracts exchanged for the purchase of Plus House, Stockport, for £725,000, with expected completion of the purchase on 31 March 2021. Jason Upton, CEO, and Luke Piggin, Finance Director, will host a live presentation to investors, via the Investor Meet Company platform, at 17:00 (BST) on 31 March 2021.

MediaZest* 0.085p £1.19m (MDZ.L)

The creative audio-visual company, made a presentation regarding the Final Results for the 18 month period ending 30 September 2020, using the Investor Meet Company platform on Friday 19 March 2021.

The slide deck used in the presentation can be accessed in Investor Relations section of the Company’s website.

A recording of the presentation, together with the subsequent Q&A, can be viewed by registering or logging on to Investor Meet Company.

Red Emperor Resource SUSPENDED (RMP.L)

Red Emperor Resources NL intends to acquire Great Northern Palladium Pty Ltd which owns 80%, and holds an option over the remaining 20%, of Panton Sill Pty Ltd, the holder of the Panton Platinum Group Metals Project in the Kimberley region of Western Australia.

· All equity consideration of A$17.5m (shares and options) to be paid to GNP’s shareholders

· Pre-existing Independent JORC (2012) Mineral Resource Estimate (“MRE”) of:

o 14.3Mt @ 2.39g/t Pd, 2.19g/t Pt, 0.27% Ni for 2.06Moz Pd/Pt

James Latham 910p £181m (LTHM.L)

Trading statement ahead of the Company’s results for the year ended 31 March 2021 from one of the UK’s largest independent distributors of timber, panels and decorative surfaces.

Revenue for the year ended 31 March 2021 has continued its strong recovery, after the first quarter was significantly impacted by the first lockdown. Full year revenues are expected to be broadly similar to the revenue figure reported for the year ended 31 March 2020. Gross margins have also continued to show improvement and are expected to be ahead of the figures reported in H1. The Company’s balance sheet remains strong.

Open Orphan 31.75p £212m (ORPH.L)

Update in the world’s first COVID-19 characterisation study. Following Research Ethics Committee approval on 17 February 2021, hVIVO, a subsidiary of Open Orphan, began the study at the Royal Free London NHS Foundation Trust earlier this month. The first three volunteers have now successfully completed the quarantine phase of their study participation with no safety concerns presented and have been discharged from the unit. The study will now progress to the next group of volunteers. The first three volunteers will continue their study participation with follow up visits and monitoring for a period of up to one year. As is normal practice during any clinical trial, none of the partners in the study will be identifying any of the volunteers.

The virus characterisation study will inoculate up to 90 volunteers, between the ages of 18 and 30 years old, to enable identification of the most appropriate dose of the virus needed to cause COVID-19 (SARS-CoV-2) infection in a safe and controlled environment. The study is funded by the UK Government and Imperial College London is the clinical study sponsor.

The Barkby Group 26p £35.6m (BARK.L)

The Barbky Group PLC is announced that Verso Biosense, an innovator in UK femtech focused on improving women’s health, has announced the signing of a product collaboration agreement with Homerton University Hospital. Under the agreement, Homerton will utilise Verso’s uterine monitoring platform and will collaborate with Verso to help refine the technology and biosensing platform to meet the needs of fertility patients. Verso’s platform captures critical in-vivo, biosensing data for optimisation and personalisation of IVF treatment, providing actionable insights for clinicians and patients.

Homerton University Hospital is one of the leading IVF and fertility centres in the UK and is recognised as an innovator in embracing methods and systems that provide better and safer patient care. This includes reviewing and collaborating on novel technologies for the treatment of IVF and fertility.

Velocity Composites 20p £7.25m (VEL.L)

The leading supplier of advanced composite kitting solutions and material management services to the aerospace composites industry has signed a three year contract extension with an existing Customer, with manufacturing facilities based in Burnley, UK.

The Contract term is valid from 1 March 2021 until 29 February 2024 and continues the long-standing relationship between the Customer and Velocity to supply a fully managed material and kitting service for engine nacelles on the A320neo, A330neo and C919 aircraft platforms, amongst others in the commercial and business jet markets. The total annual value of the contract to Velocity in FY21 is expected to be £3.7m, excluding any new business, based upon the latest COVID-19 impacted build rate guidance provided by the Customer and will continue as a major contributor to revenues through to 2024.

Mobile Streams 0.255p £3m (MOS.L)

The mobile content and data intelligence company, has reached agreement to acquire a 49% interest in KrunchData Limited for £735,000, comprising £500,000 cash and 90,384,615 Ordinary Shares issued at 0.26p each (being the closing market price on 24 March), with an option to acquire the remaining 51% at any time in the next two years for £765,000. As part of the Transaction, it has been agreed that the revenue share agreement, under which the Company currently receives 100%, reducing to 50% from January 2022, of the revenues from Streams Data, will be terminated immediately. For the year to December 2020, management accounts provided by Krunch show revenue of £286,782, a net profit of £8,000 and net assets as at 31 December 2020 of £17,542.

Equals Group 33.5p £59.8m (EQLS.L)

The technology-led international payments group focused on the SME marketplace, today announces the launch of its new FairFX B2C ‘Linked Cards’ products. This new functionality widens the use-case of the FairFX B2C offering to cover ‘friends and family’ wallet options and to compete head on with ‘pocket-money’ cards.

What’s cooking in the IPO kitchen?

PensionBee, the online pensions provider, with a mission to make pensions simple, so that everyone can look forward to a happy retirement, considering an IPO on the High Growth Segment of the Main Market of the London Stock Exchange. PensionBee is a leading online pensions provider in the UK, with approximately 130,000 Active Customers and £1.5 billion of assets under administration , in each case as at 28 February 2020.

Cornerstone FS to join AIM, an SME focused, cloud-based provider of international payment, currency risk management and electronic account services focused on removing the complexity of international payments for customers. Raising £2.2m. Mkt Cap £12.3m. Due 6 April.

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 April 2021.

Parsley Box, the direct to consumer provider of ready meals to the 60+ demographic, recently announced its AIM IPO plans. Parsley Box provides ready meals, which are not required to be stored in a fridge or freezer, have a shelf life of up to six months and are cooked in minutes. The company reported revenue of £24.4m for the financial year ended 31 December 2020 (unaudited). Deal details TBC and admission is expected to occur late March/ early April 2021.

ActiveOps, a UK-based leader in Management Process Automation (MPA), providing a SaaS platform to large enterprises with complex and often global back-offices is planning to join AIM. Details TBA. Due late March.

Proposed move to AIM from the main market (standard) by Emmerson (EML.L) to provide Emmerson with access to a market and environment which is more suited, in the Board’s view, to the Company’s current size and strategy ahead of pivotal period for the Company with the commencement of mine construction at the Khemisset Potash Project expected by end of 2021. Follows recent award of Mining Licence granting Emmerson exclusive right to develop and mine the potash deposit and £5.5m raise to fund ongoing project development work.

NextEnergy Renewables to launch an IPO on the Main Market. NREN is a differentiated renewables investment Company that aims to capture the most attractive private renewables and energy transition infrastructure investment opportunities globally. Targeting a £300m raise. NREN is targeting total returns of 9-11 per cent. per annum (net of all fees and expenses but including the Target Dividend and capital appreciation) . The Company’s target dividend yield for the first full financial year to 31 December 2022 is 5.5 pence. Due Early March 2021.

Digital 9 Infrastructure launch an initial public offering on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of an initial placing and offer for subscription for a target issue £400m. Digital 9 Infrastructure plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet. The IPO Prospectus is expected to be published in March 2021.

Fix Price announces its intention to float on the Main Market of the London Stock Exchange. Fix Price is one of the leading variety value retailers globally and the largest in Russia, with more than 4,200 stores. Fix Price has revenues of RUB 190.1bn, RUB 142.9bn and RUB 108.7bn for 2020, 2019 and 2018, respectively. Adjusted EBITDA for the same years was RUB 36.8bn, RUB 27.2bn and RUB 14.2bn, respectively. The Offer would consist of an offering of GDRs by certain existing shareholders of the Company.

Great Point Entertainment Income Trust PLC announced its prospectus has been approved by the FCA. Great Point Entertainment Income Trust PLC is a newly established, externally managed closed-ended investment company. The Company will provide project finance to content makers and commissioners in the global television and film production industry via senior loans secured against pre-sold intellectual property (IP) rights. GPEIT’s investment objective is to provide Shareholders with dividend income and modest capital growth through exposure to media content finance.

Deliveroo has applied for admission of the Company’s Shares to the standard listing segment of the Official List of the FCA and to trading on the main market of the London Stock Exchange. Deliveroo works with over 115,000 best loved restaurants, takeaways and grocery stores globally and provide work to over 100,000 riders across 800 locations in 12 markets, serving 6m customers globally. The price range for the Offer has been set at £3.90 to £4.60 per Share, implying an estimated market capitalization at Admission of between £7.6 billion and £8.8 billion. Raising c. £1bn. Due 7 April.

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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