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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FireAngel Safety  14p  £17.7m (FA..L)

Further to its announcement of 25 January 2021, FireAngel, one of Europe’s leading developers and suppliers of home safety products, announces that it has secured additional bank funding under UK Government backed Coronavirus loan schemes.

On 22 June 2020, the Group announced that it had secured funding of £3.2m through the Coronavirus Large Business Interruption Loan Scheme (‘CLBILS’) from its existing bank, HSBC UK (the “Existing Loan”). This loan supported the Group through the first lockdown and, in 4Q 2020, the Group began to engage HSBC UK for further support to meet the challenges of subsequent and rolling lockdowns.

Tertiary Minerals  0.39p  £4.6m (TYM.L)

Analytical results from its maiden drill hole at the Lucky Copper Project in Nevada, USA. Highlights:

Hole 21TLRC001 was drilled to a depth of 108.24m.

Two magnetic gossan zones intersected containing low-grade copper (+/-gold) mineralisation:

o  4.57m grading 0.12% copper and 0.12 g/t gold from 15.24m down hole. o  3.05m grading 0.40% copper from 33.53m down hole.

Highly anomalous copper (average 325ppm copper) over 24.38m from 83.82m to the base of hole. Geological evaluation of drill samples ongoing. Follow up magnetic survey planned.

PCF Group 24p  £60.2m (PCF.L)

Trading update from the specialist bank  for the first five months, to 28 February 2021, of the current financial year.

 · Continued focus on lending to better quality customers, with new business volumes in line with management’s adjusted targets. · New business originations in the first five months of the current financial year totalled £104m (2020: £127million). · This included £19m of business placed by Azule with other lending institutions. · Record single transaction of £6.9m placed by Azule. · Total loan book amounted to £440m at 28 February 2021 (2020: £392m).

· The number of customers in forbearance continues to reduce and their obligations currently stand at £20m, representing less than 5% of the portfolio (30 September 2020: 10%).

· Retail deposits totalled £342m (30 September 2020; £342m)

· ‘Feefo’ Platinum Trusted Service Award won by our Savings Team.

· Operational transformation programme commenced.

Rotala 28.5p  £14.3m (ROL.L)

The Company notes that on 25 March 2021 the Mayor of Greater Manchester made the formal decision to press ahead with franchising the bus market in the Greater Manchester region. Prior to this decision, the Company had already made a court application to subject to judicial review both the consultations conducted by the Greater Manchester Combined Authority and the process by which the consultations were carried out.

Given the ongoing legal proceedings, which it is now confirmed are to be heard by the Court in late May 2021, it is not appropriate for the Company to comment further on the decision taken by the Mayor to proceed with his franchising scheme.

Rotala provides a range of transport solutions, ranging from local bus services under contract to local authorities, through to commercial bus routes.

Urban Logistics 148p £377.5m (SHED.L)

The specialist UK logistics REIT, announces that it has exchanged contracts to sell five assets as part of a portfolio for £30.0m at a 4.8% exit yield, realising a total property return of 78.8%.

The sale is in line with Urban Logistics’ stated strategy of active portfolio management and value optimisation where appropriate. Completion is expected to take place on 21 April 2021. The average purchase price was 7.0% NIY and the Company has undertaken extensive asset management with new rents and lease terms agreed across all sites. The sale represents a 35.4% uplift on 30 September 2020 book values. The proceeds will be reinvested into other pipeline opportunities.

Proteome Sciences 5.11p £15.1m (PRM.L)

Following the Company’s announcement on 25 January 2021 the Company has been progressing the year end audit and anticipates being able to announce the 2020 full year results on Thursday, 1 April 2021. The Company now expects to report profit after tax materially higher than announced on 25 January. This is primarily due to higher than expected royalty receipts from Thermo Scientific for the last quarter of 2020. The annual results are still subject to finalisation of the audit and approval by the Board.

Proteome Sciences plc is a specialist provider of contract proteomics services to enable drug discovery, development and biomarker identification, and employs proprietary workflows for the optimum analysis of tissues, cells and body fluids.

Totally 32p  £58.3m (TLY.L)

The provider of a range of healthcare services across the UK and Ireland, reported  that Vocare Ltd has, after a competitive process, been awarded a place on the regional Integrated Urgent Care Clinical Support Framework hosted by Yorkshire Ambulance Service NHS Trust (YAS).

 The new framework agreement commences on 1 April 2021 and runs to 31 March 2024. The agreement, which is on a call-off basis and dependent on call volumes, is worth up to c. £2.7m over the framework term.  Under the initial draw-down contract for 2021/22 Vocare will provide up to 64,000 ED validations.  Draw-down contracts for subsequent years will be agreed in line with regional service requirements. 

Additionally, Vocare has been selected as one of a small number of qualified framework providers for local Clinical Assessment Services in each of the Yorkshire ICS geographies (West Yorkshire and Harrogate, South Yorkshire and Bassetlaw, and Humber, Coast and Vale).

Benchmark Holdings 58p £389m (BMK.L)

First customer agreements for the delivery of its novel water purification system, CleanTreat Ò . The agreements secure customer access to one of Benchmark’s CleanTreat Ò units which will be deployed in conjunction with the new sea lice treatment BMK08. The agreements remain subject to the regulatory process to obtain a Marketing Authorisation in Norway for BMK08.

Capital Metals 15.5p  £26.7m (CMET.L)

Capital Metals is a natural resources company focused on the development of the Eastern Minerals Project in Sri Lanka, one of the highest-grade mineral sands’ projects globally. The Company updated on the ongoing Environmental Impact Assessment process. 

· Environmental Impact Assessment  progressing with the public consultation period now concluded

· Management focus on final permitting steps and grant of Mining Licence with first production targeted for H1 2022

Adams 8.5p  £7.02m (ADA.L)

£562k placing at  6.5p and open offer of up to £4m at the issue price from the in vesting company primarily focused on special situation investment opportunities in the small to middle-market capitalisation sectors in the UK or Europe.

What’s cooking in the IPO kitchen?

Sky News reports that a surge in pandemic-fuelled activity by homebound traders is propelling AvaTrade towards a London stock market listing that could value it at up to £700m. Established in 2006, AvaTrade is one of a number of platforms – including CMC Markets, Plus500 and IG Group – which enable their customers to trade contracts for difference.

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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