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.

Joiners: Bridgepoint Group to float on the Premium Segment of the Main Market. Bridgepoint is the leader in middle market investing, with a global reach that leverages its strong pan-European footprint and Bridgepoint’s ability to deploy meaningful amounts of client capital across several well established strategies. Raising £300m. Timing TBA.

Leavers: No Leavers Today.

Banquet Buffet

Ariana Resources 4.75p  £51.5m (AAU.L)

The AIM-listed mineral exploration and development company with joint-venture gold mining operations in Europe announced a drilling and resource update for the Kepez North area of the Kiziltepe Sector.  Kepez North is part of the Zenit Madencilik San. ve Tic. A.S. Joint Venture with Proccea Construction Co. and Ozaltin Holding A.S. and is 23.5% owned by Ariana. Resource contains c. 36,400 ounces of gold and 329,400 ounces of silver.  97% increase in contained gold ounces over previous resource estimate (2020) and a 310% increase over the Feasibility Study Resource (2013). Significant positive increase in average grade to 7.14g/t Au + 64.65g/t Ag. Substantially improved classification of the Resource to approximately 86% Measured and 14% Indicated.  New pit optimisation study now complete and area is being advanced through further permitting.

Bradda Head Holdings 7p  £20.5m (BHL.L)

Bradda Head Holdings, the North America-focused lithium development group announced a progress update on drilling at the Company’s Burro Creek East asset in Western Arizona. This fast-track programme has been designed to twin five existing holes and drill five new holes to target resource extension.  The diamond core drilling programme will test the extent and thickness of the clay towards the northwest of the lithium resource.  Drilling is targeting an increase in both resource size and grade. Further metallurgical testing will increase clays processing knowledge.  141 meters have been drilled of a planned 991 metres. First set of results expected in Q3 2021.

Fonix Mobile 128.5p  £128.5m (FNX.L)

The mobile payments and messaging provider updated on trading for the year ended 30 June 2021.   Revenue and profit have continued to grow and remain comfortably in line with management’s expectations since Fonix’s admission to trading on AIM in October 2020.  Total Payment Volume (TPV) of mobile payments grew by 10% to £233.4m (FY20: £211.7m). Gross profit in the period grew by 13% to £11.3m (FY20: £10.0m).  Adjusted EBITDA in the period grew by 14% to £8.8m (FY20: £7.7m). Fonix continues to generate strong underlying cash flows and intends to pay a final dividend for the Year in November 2021, in line with policy. With high levels of repeating revenue, a strong exit run-rate for FY21, new supplier connections in international markets and a growing pipeline of client prospects across all sectors, the Board continues to be confident in the growth potential for Fonix going into FY22 and beyond.

Mosman Oil & Gas 0.16p  £6.5m (MSMN.L)

The oil exploration, development, and production company, has completed the airborne gravity and gradiometry data acquisition over permit EP-145 located in the Amadeus Basin in Central Australia. The survey is a significant step in the exploration programme for EP-145 as it is the first time data will be acquired for the whole permit and will provide valuable information across the entire 818 sq km permit area. Current subsurface seismic data is limited to the NW and central part of the permit and existing regional gravity data is too sparse to provide sufficient detail of the complex salt related structures which have been identified as hydrocarbon and helium leads within the permit.

MySale 7.45p  £65.3m (MYSL.L)

The international online retailer, provided a trading update for the 12 months to 30 June 2021. Group underlying EBITDA of A$4.2m ahead of market expectations, an improvement of A$6.9m from the A$2.7m loss in FY20. Core Revenue increased by 14% to A$122.0m (FY20: A$107.2m). Group Total Revenue decreased by 4% to A$125.6m (FY20: A$131.0m),in line with management expectations.  Gross profit increased to A$46.3m (FY20: A$43.9m). Continued reduction in cost base to $A42.1m (FY20: $A47.8m). Net cash position of $A9.1m. Debt free. Exceptional progress made with scaling the marketplace with over 200 brand partners launched onto the new marketplace seller platform with significant new business and revenue momentum into FY22.

PCI-PAL 13.5p  £14.3m (PCIP.L)

The global cloud provider of secure payment solutions for business communications announce a trading update for the year ended 30 June 2021. After a strong year of trading, PCI Pal expects to announce revenues of approximately £7.3m, a substantial increase of 66% on the prior year (2020: £4.4m), and an adjusted pre tax loss marginally better than current expectations. The year on year revenue growth continues to be driven by the Group’s excellent progress in increasing the aggregate value of the Total Annual Contract Value of contracts signed to date.  TACV is a leading indicator and key metric of the Group’s future recurring revenue and has grown significantly year on year with a 41% increase to £9.5m (2020: £6.7m) as at 30 June 2021. 

Plexus Holdings 13.5p  £14.3m (POS.L)

The oil and gas engineering services business and owner of the proprietary POS-GRIP friction-grip method of wellhead engineering, known for its safety, time and cost saving capabilities has received London Stock Exchange’s Green Economy Mark. The Green Economy Mark is given to companies and funds that derive more than 50% of revenues from environmental solutions. For over 30 years, Plexus has been protecting the environment, initially with its ‘through the BOP’ (Blow-out Preventer) wellhead designs, and subsequently with its POS-GRIP® proprietary metal-to-metal leak-proof wellhead sealing system.

Spectra Systems 155p  £70m (SPSY.L)

Spectra Systems Corporation, a leader in machine-readable high speed banknote authentication, brand protection technologies and gaming security software announced that tests conducted at Boston University’s   National Emerging Infectious Diseases Laboratories  (NEIDL) have shown that Spectra’s Aeris banknote cleaning process also deactivates SARS-2 below detectable limits during the one hour cleaning cycle.  The results, performed in a Biosafety Level IV facility were obtained for straps of Canadian polymer banknotes as well as USA dollar and Indian Rupee banknotes. These new SARS-2 results are in addition to previous data that showed that Aeris, in addition to cleaning banknotes and reducing replacement costs, also disinfected banknotes from other pathogens including enteroviruses and bacteria.

Tristel 620p  £292m (TSTL.L)

The manufacturer of infection prevention products, provides a trading update for the year ended 30 June 2021. In the last update on 25 April, the Company stated that second half sales in all markets had started slowly because COVID-19 was causing the postponement of hospital admissions and fewer patient examinations with medical devices that Tristel’s products disinfect. The effect of the pandemic was being felt more acutely in the UK than in overseas markets. Conversely, sales of Tristel’s surface disinfectant products were ahead compared to last year. In April, sales for the year ending 30 June were anticipated to be £31m and pre-tax profit (before share-based payments) to be no less than £5m. As the fourth quarter progressed, demand for the device-based products accelerated as hospital out-patient departments gradually returned to pre-pandemic levels of activity. Surface disinfectant product sales have continued to grow. It is expected that the upturn in sales activity, combined with a gross margin maintained at 80% and tight control over operating costs, will translate into sales of £31m (2020: £31.7m) and pre-tax profit (before share-based payments and the exceptional item explained below) of £5.5m (2020: £7.1m) for the year.

Reabold  0.39p  £34.8m (RBD.L)

The investor in upstream oil and gas projects, provided an update on activities at the West Newton B site, operated by Rathlin Energy (UK) Limited (Rathlin). Commencement of well testing operations on 7 June 2021, with an initial focus on the lower portion of the Kirkham Abbey pay zone. Significant inflow of completion fluids into and subsequently out of the reservoir, indicative of a functioning permeability system. Liquids and gas recovered to surface. Operation now focussed on clean-up of the well ahead of further flow testing. Gas analyses exhibit a strong similarity to analyses obtained from the West Newton A site wells with samples showing approximately 90% methane content and no native H 2 S. Analyses of the recovered liquids are pending. Additional 19 metre zone in the upper Kirkham Abbey Formation identified for perforation and flow testing.

What’s cooking in the IPO kitchen?

Sivota, an investment vehicle focused on later-stage, reputable Israeli technology-related sectors to join the Main Market  (Standard). Raising £1m at £1. Market cap £1.1m.

BiVictriX Therapeutics  to join AIM, a UK based drug development company which was incorporated in February 2016 and has developed its proprietary Bi-Cygni® technology. This technology utilises Antibody Drug Conjugates (ADC”s), an existing class of potent biological drugs, for the treatment of various cancers including Acute Myeloid Leukaemia, the first condition which BVX intends to treat.

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. Timing and offer TBA

Spinnaker Acquisitions to join the Main Market (Standard).  A company formed for the purpose of undertaking an acquisition or acquisitions of a majority interest in a company, business or asset. Due 28 July.

South West Brands the multi-brand cannabidiol consumer goods company  intends to float on the Main Market (Standard). Raising funds to continue to develop its existing portfolio of brand IP and pursue its strategy of adding brand IP assets to the portfolio over the course of the first 24 months following Admission. The Company expects Admission to occur in July 2021. Timing and offer TBA.

Big Technologies to join AIM. Big Technologies plc provides products and services to the remote and personal monitoring industry under a number of brand and trading names, with ‘Buddi’ being the most well known and used in respect of activities within the core criminal justice market. The Company’s criminal justice solution involves proprietary monitoring software combined with modular monitoring hardware being used to accurately track the location of tag wearers. Alongside this, the Company also offers monitoring services solutions for its customers. Offer TBA. Due late July. 

GENinCode to join AIM, a UK-incorporated company engaged in the risk assessment, prediction and prevention of cardiovascular disease (CVD), the leading cause of death worldwide accounting for approximately 18m deaths annually. Due 22 July. Raised £17m. Mkt Cap £42m. 

Zenova to join AIM. The Company, is the holder of intellectual property to underpin a suite of fire safety and temperature management products and technology applicable to industrial, commercial and residential markets. Capital to be raised on Admission £4.5m. Anticipated Mt Cap £17.74m. Due 22 July.

Microlise to join AIM. Microlise is a leading provider of transport management technology solutions, delivering a globally enabled SaaS platform that digitises the business processes of enterprise organisations running highly complex logistics operations. As at 31 December 2020, the Group had over 400 enterprise customers and over 500,000 vehicle subscriptions. Total capital to be raised on Admission: £61.2m. Primary funds raised for the Company: £18.6m. Secondary funds raised for existing shareholders: £42.6m. Anticipated market capitalisation on Admission: £156.5m. Due 22 July.

HydrogenOne Capital Growth to IPO on the Premium Segment of the Main Market. HGEN is targeting a raise of £250m. First London listed investment fund dedicated to clean hydrogen. Due by the end of July.

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