Small Cap Wrap – Gresham House, Pipehawk, Tribal and more…
28 Jan 2021
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What’s cooking in the IPO kitchen?
Supreme, a leading manufacturer, supplier and brand owner of fast moving consumer products, announces the successful pricing of its initial public offering at 134 pence per share with institutional investors, to raise gross proceeds of £67.5 million. It is expected that dealings in the Shares will commence at 8.00 a.m. on 1 February 2021 on AIM
NQ Minerals, the base and precious metals producer from its 100% owned flagship Hellyer Mine and the 100% owner of the Beaconsfield Gold Mine, both in northern Tasmania, Australia, has submitted a draft prospectus to the UK Financial Conduct Authority for approval. The Company is considering applying for admission of its ordinary shares to the Official List of the FCA by way of a Standard Listing and to trading on the Main Market of the London Stock Exchange . Details TBA
Foresight Group , the award-winning infrastructure and private equity investment manager to IPO on the Main Market (Premium). The Offer will primarily comprise a sale of shares by existing shareholders (c.80% of the Offer) with a smaller offering of new shares (c.20% of the Offer) to be issued by the Company. Details TBA.
Baskerville Capital plc (to be renamed Oberon Investments Group Plc) is a boutique financial institution providing a personalised wealth management service for retail and professional clients, as well as a corporate broking arm for small and mid-cap companies. Oberon’s strategy is to progress through the organic growth of assets under administration in its wealth management division and by the acquisition of complementary businesses in the financial services sector and by creating a trusted brand for the provision of advisory and fundraising services for companies in the small and mid-cap sectors. Expected admission date 9 February 2021.
Cornish Metals (TSX-V: CUSN) intends to list on AIM. The Company is proposing to raise £5m by way of private placement of new Common Shares to advance the United Downs copper-tin project. The Company expects that Admission will become effective in February 2021. The Company’s Common Shares will continue to be listed and trade on the TSX-V in Canada.
VH Global Sustainable Energy Opportunities plc, a closed-ended investment Company focused on making sustainable energy infrastructure investments announced it intends to launch an IPO of shares on the Official List (Premium) of the Main Market of the London Stock Exchange. Due by Early Feb.
Kibo Energy* 0.32p £7m (LON:KIBO)
The multi-asset, Africa focused, energy company announced, further to the RNS dated 23 July 2020 that MAST Energy Developments Plc has approved its pathfinder prospectus to seek admission of its ordinary shares to the Official List of the London Stock Exchange plc by way of a Standard Listing and is commencing its roadshow this week to raise c. £4.5 million with an initial target market capitalisation of approximately c. £20 million. MED will remain a Kibo subsidiary after listing with Kibo holding at least 55% of MED on the day of Admission.
Louis Coetzee, CEO of Kibo, said: “Completion of the pathfinder prospectus and commencement of the roadshow brings the stated objective of listing on the LSE closer. This at a time when significant growth opportunities are available in the rapidly growing Reserve Power market to realise value for all stakeholders, as demand for Reserve Power in the UK increases.
Following the LSE Admission of MED, MED and Sloane will be in a position to develop its portfolio at scale and pace, as opposed to a project-by-project basis and advance rapidly towards significant revenue generation. Upon successful completion of the IPO, Sloane will be in a position where it expects to have c.9MW in immediate production and c.20 MW in production within the first six months from listing and adding another c.20 MW in production over the next 6 months. The additional production capacity for the first c.20MW will come from Bordesley and 2nd acquisition sites, as well as the 3rd acquisition, announced on 28 October 2020. The capacity for the 2nd c.20MW is expected to come from a significant project pipeline, currently in an advanced stage of development .
PCI-PAL 61.25p £36.4m (LON:PCIP)
The global cloud provider of secure payment solutions for business communications, announces a trading update for the six months to 31 December 2020. “The Board reported a further period of significant progress against the Group’s key growth metrics. Revenue for the first half increased 56% year on year to £3.19 million (2019: £2.04 million), further illustrating the benefits of our subscription based revenue model as we recognise revenue from the accumulating Total Annual Contract Value (TACV) of contracts signed to date. Our key metric of TACV has increased by 59% year on year to £8.28 million (2019: £5.20 million) at the period end.
In the period, the Group signed 93 customer contracts (2019: 51) with a recurring Annual Contact Value (ACV) of £1.68 million, 40% greater than the prior year (2019: £1.20 million).”
Belvoir Group 172.5p £60.7m (LON:BLV)
The UK’s largest property franchise, provided a positive Trading Update on the outcome of the financial year ended 31 December 2020, another year of significant growth.
The Board reported that trading in 2020 exceeded its pre-Covid-19 expectations with revenue up 12% to £21.6m (2019: £19.3m) and consequently the Board expects that the performance for the year, including profit before tax, will be comfortably ahead of management’s expectations.
Dillistone Group 21.5p £4.2m (LON:DSG)
The supplier of software for recruiters, provides a trading update for the 12 months ended 31 December 2020. The disruption caused by the Covid-19 pandemic has had a significant impact on the recruitment industry and, therefore, on revenue in the year. Despite that, the Board expects the pre-tax loss to be in line with, or better than, the prior year position before acquisition related items and other one-off adjustments.
This has been achieved partly as a result of the extensive restructuring undertaken in 2019 which allowed the Group to enter this period of turmoil with a significantly more efficient operating structure than in previous years. We have also taken advantage of UK Government support including Furlough payments.
Despite continued tight cost control, the business has continued to invest in its range of products which it sees as fundamental to the future success of the Group.
Genedrive 79.5p £50.2m (LON:GDR)
The near patient molecular diagnostics company, announces that it has entered into a distribution agreement with Beckman Coulter Life Sciences for its Genedrive® 96 SARS-CoV-2 Kit. The agreement enables Beckman Coulter to sell and distribute Genedrive’s high-throughput COVID-19 PCR Kit in the United States and Europe for use on upper respiratory viral samples. The agreement is the result of the collaboration agreement announced in August 2020, under which the companies worked to develop and validate a fully automated PCR process for Beckman Coulter’s Biomek automated workstation in conjunction with its RNAdvance Viral XP extraction kit.
Reabold Resources 0.59p £41.5m (LON:RBD)
The investor in upstream oil and gas projects, announces a fundraise for gross proceeds of £7.5 million , at 0.55p, representing a 2.8% premium to the mid-market closing price on 27 January 2021 , being the last practicable closing price prior to the announcement of the Fundraise .
The net proceeds of the Fundraise will be used, alongside existing cash resources, to provide incremental capital to fund the Company’s share of:
i) additional appraisal and development activity at the Company’s landmark West Newton project, potentially one of the largest oil and gas discoveries onshore UK, notably drilling and testing of the B-2 well;
ii) activity to assess and define the prospectivity of the wider PEDL 183 licence, which includes West Newton, including a seismic programme and exploration work to identify additional future drilling opportunities;
iii) potential costs associated with the fully appraised Victory gas development, which was recently awarded to investee company, Corallian Energy, including an environmental assessment in order to achieve FDP in late 2021; and
iv) additional contingency to provide capital flexibility across the Company’s investment portfolio and working capital.
accesso Technology 390p £161m (LON:ACSO)
The premier technology solutions provider to leisure, entertainment and cultural markets, today provides the following update ahead of its preliminary results announcement.
The solid trading performance reported in the Group’s November update continued through the remainder of 2020, particularly over the holiday period in North America. As a result, the Group now expects to deliver revenue for the full year 2020 of not less than $55.0m, which is ahead of the Board’s previous expectations. The Group expects its net cash position at the end of the year to be just below $30.0m and its total available cash to be not less than $56.4m.
Tribal 90.75p £187m (LON:TRB)
The provider of software and services to the international education market, today announces a trading update in respect of its financial year ended 31 December 2020. The Group expects to announce its audited full year results on 17 March 2021.
The Board reported that a strong sales performance in the year has resulted in Annual Recurring Revenue (ARR) committed at the period end increasing 12% to £47.5m (2019: £42.4m), demonstrating the successful ongoing execution of the Group’s SaaS transition strategy. The Group has shown great resilience in the year and anticipates reporting results in line with current market expectations upgraded in October 20201, delivering revenue in the region of £73.0m (2019: £78.2m), adjusted EBITDA2 of approximately £14.9m (2019: £15.4m) and adjusted EBIT2 of approximately £11.8m (2019: £11.7m).
Strong cash balances have been maintained and the Group ended the year with a net cash position of £9.5m (2019: £16.5m), with no debt drawn; all furlough benefits received and all temporary tax deferrals were repaid in the year. The net cash position is after paying an interim dividend of £2.2m, the one-off payment of £8.1m to settle the platform dispute, as well as continued investment in Tribal Edge of £6.6m (2019: £5.9m). Cash generation excluding these items was £10.0m.
Gresham House 807.5p £259m (LON:GHE)
· Assets Under Management (AUM) increased by c . 42% to £3.9 billion in the year to 31 December 2020 (2019: £2.8 billion)
· Organic growth in AUM of £1.0 billion (35%) in the year to 31 December 2020
· Strong fundraising performance in H2 2020 across both Real Assets and Strategic Equity divisions, attracting new institutional clients and demonstrating the continued demand for our sustainable investment strategies
· Full-year adjusted operating profits to be ahead of market expectations
· Proposed acquisition of Appian Asset Management in Ireland accelerates international expansion plans
· Continued investment in the platform including talent and operational resources to sustain a long-term growth trajectory and support GH25 objectives
· Cash position of £21.8 million as at 31 December 2020 leaves the Group well positioned to develop opportunities and continue to grow the business in 2021
Pipehawk 9.25p £3.2m (LON:PIP)
Pipehawk has acquired the entire issued share capital of Utsi Electronics Limited for a maximum consideration of £2 m.
UtEl is a UK based manufacturer and designer of a wide range of special purpose ground penetrating radar (“GPR”) systems which are sold around the world under the Groundvue brand through mature distribution channels. With these products and markets being complementary to those of PipeHawk’s own brand systems, the Board of PipeHawk believes the acquisition will provide an enlarged portfolio of GPR system offerings into a significantly wider range of markets as well as offering excellent opportunity to extend R&D activities into the highly desirable Environmental/Water/Structural Faults markets and increase unit profitability across the dual product ranges achieved through enhanced marketing, rationalised designs and parts sourcing.
In the year ended 5 April 2020, UtEl recorded unaudited revenues of approximately £398,300 and an unaudited profit before tax of approximately £150,750. As at 5 April 2020, UtEl had net assets of approximately £715,000.
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