Small Cap Wrap – Dart Group, Kropz, Orosur Mining and more…

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3 Sep 2020

Dish of the day

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Off the menu

2 leavers from AIM today. Reach4Entertainment Re-registered as a private Company), Spitfire Oil (Voluntary Liquidation). 1 Main Market Leaver- Rockrose Energy (Acquired)


What’s cooking in the IPO kitchen?

Umuthi Healthcare Solutions Plc, the technology led healthcare business focused on the distribution of pharmaceuticals and the provision of medical facilities in remote areas, seeking admission to the Standard Listing segment of the Official List 

The Hut Group.  Expected intention to float on the Main Market. THG is a vertically integrated digital-first consumer brands group, retailing its own brands in beauty and nutrition plus third party brands, via its proprietary technology platform to an online and global customer base. For the year ended 31 December 2019, THG’s revenue was £1.1 billion, up 24.5 per cent. year-on-year, and its Adjusted EBITDA was £111.3 million, representing an Adjusted EBITDA margin of 9.8 per cent . The Company has experienced an acceleration in growth during 2020, with revenue of £676 million, up 35.8 per cent. on the equivalent prior year period , achieved in the 6 months to 30 June 2020, which the Directors believe evidenced the non-discretionary nature of the nutrition and beauty categories .

Kibo Energy PLC, the multi-asset Africa focused energy company, is seeking admission for its 100% owned UK subsidiary Sloane Developments Ltd , which will be renamed Mast Energy Developments PLC (MED), to the Standard List of the London Stock Exchange plc . Targeted for Q4 2020. The MED business strategy is to acquire and develop a portfolio of flexible small-scale power generation assets, exploiting a growth niche market in the UK for Reserve Power generation to balance out the national grid at critical times. 


Banquet Buffet

Dart Group 691p  £1.2bn (LON:DTG)

AGM Statement. “After grounding our aircraft fleet in mid-March, we were pleased to resume operations on 15 July, gradually ramping up Summer 2020 flying to approximately 40% of our planned destinations for August, ensuring we could provide as many of our customers as possible with their well-deserved and eagerly anticipated summer holidays.

Whilst there have been setbacks, such as the imposition of quarantines and evolving guidance from the UK Government, we have been satisfied with the average load factors and financial contribution achieved to date and will continue to add further capacity, as appropriate, for the remainder of Summer 2020, supported by our quick to market, flexible operating model.”

“Following the sale of our Distribution and Logistics business, Fowler Welch, earlier in the year, the Company has applied to Companies House to change its name to Jet2 plc reflecting the continued focus on its longer-term strategy of growing its leisure travel business.

Heapy is appointed Chief Executive Officer of Jet2 plc.  Philip Meeson will remain Executive Chairman. 


Kropz 8.5p  £37.7m (LON:KRPZ)

The emerging African phosphate explorer and developer, with an advanced stage phosphate mining project in South Africa and a phosphate project in the Republic of Congo, advises that, further to the announcement on 20 August 2020, the appeal hearing against Elandsfontein’s valid integrated water use licence which was due to reconvene today, has been postponed.

The Company will provide an update on the final hearing dates once it has been notified by the Tribunal. Pending the Tribunal’s decision, there is no legal impediment to the continuation of the water use activities authorised in the WUL.


Orosur Mining  7.7p  £12.3m (LON:OMI)

Orosur has been informed by Newmont Colombia S.A.S. (a subsidiary of Newmont Corporation (NYSE:NEM), that it intends to continue to exercise its rights and obligations with regard to the Anzá gold project in Colombia under the terms of the Exploration Agreement with Venture Option signed and announced in September 2018.


Newmont Colombia has now paid the fourth and final cash payment of US$500,000 required under the Phase I earn-in arrangement to retain its option and to continue into the 3rd year of Phase 1 of the Agreement during which year it is required to spend a further US$4 million in qualifying expenditure on the Anza Project.


Ironveld 1.225p  £8m (LON:IRON)

Substantial progress has been made, together with its prospective strategic partner, Inclusive Investment Group Proprietary Limited , in securing project development funding which, if completed, would provide Ironveld with sufficient funds to start mining and production at the Company’s magnetite project in South Africa.

· IIG and Ironveld have made substantial progress in refining the funding costs required to commence mining and production, reducing the project funding total from ZAR240 million to ZAR160 million;

· Discussions are advanced with financial and development funding institutions in South Africa for the full balance of the project funding required, based on BEE-qualifying IIG becoming the major shareholder in Ironveld;

· IIG and Ironveld have agreed a further extension to the exercise date in terms of the Option Agreement between IIG and Ironveld, from 30 September 2020 to 30 November 2020;

· On grant of the Option (which is conditional), IIG can subscribe for 440,176,070 new ordinary shares in the capital of the Company at a price of 0.42 pence per Subscription Share;

· IIG will extend a loan of US$1,000,000 (approximately £750,000) to Ironveld on completion of the Subscription


Diurnal Group  60.5p  £73.8m (LON:DNL)

Diurnal signs two further marketing and distribution agreements for the Benelux Union and Switzerland

·  Accelerates Alkindi® market access across Europe with additional planned country launches

·  Strengthens Diurnal’s European distribution platform ahead of anticipated approval of Chronocort®

· Advances Company’s strategy of partnering outside key European territories


Revolution Bars 15.75p  £19.7m (LON:RBG)

Trading update. The Group had reopened 18 bars by the end of July, and as of Monday 25 August 2020, 39 bars were trading.  Trading in the period since reopening has been ahead of the Board’s expectations, in part as a result of the Eat Out To Help Out (“EOTHO”) scheme.  Comparable venue sales in the 8 weeks to 29 August 2020 were 72.5% of last year. In the first four weeks of the period (to 1 August 2020) comparable venue sales were 60.0% of last year but in the last four weeks (to 29 August 2020), during which time the EOTHO scheme has been operating, comparable venue sales were 77.5% of last year.  EOTHO has been a big success in the last four weeks driving Monday to Wednesday comparable venue sales to 188.4% of last year. 


Mpac Group 283.5p  £57.2m (LON:MPAC)

Mpac, the global packaging and automation solutions Group, today announced its unaudited results for the six months to 30 June 2020. Resilient performance with strong cash generation in headwind of the COVID-19 pandemic .

•         Order book at 30 June 2020 up 14% compared to June 2019 to £45.4m (2019: £39.9m)

•         H1 2020 order intake only 6% below comparable period despite several projects deferred due to COVID-19 pandemic

•         Group revenue of £36.8m (2019: £45.8m), with a 29% decline in Original Equipment revenues partially offset by a 28% growth in Service revenues

· Underlying profit before tax of £2.5m (2019: £4.5m)

“We anticipate that current general market uncertainty will remain for the foreseeable future and whilst the current order book and prospect pipeline provide assurance for trading in the short term, the longer-term outlook remains difficult to predict.  We are, however, well placed, serving markets with good underlying demand and therefore the Board believes that the Group’s long-term prospects remain positive.“


Allergy Therapeutics 18.75p  £119.5m (LON:AGY)

Allergy Therapeutics secures virus-like particle (“VLP”) technology platform to broaden vaccine pipeline through licensing agreements with Saiba AG and DeepVax GmbH 

–  Group to investigate potential of VLP technology in oncology and other immune conditions after encouraging proof of concept findings

–  Builds on positive ongoing progress in VLP-based peanut allergy candidate vaccine

–  VLP platform to be combined with Allergy Therapeutics’ proprietary adjuvant technology


Sensyne Health 78.5p  £100.9m (LON:SENS)

The UK Clinical AI company, today announces it has launched its ‘SENSETM’ system in the UK, developed in partnership with Microsoft and its health cloud technology, as part of an existing strategic partnership between the two organisations.  Sensyne has signed its first agreement with Chelsea & Westminster Hospital NHS Foundation Trust for an algorithm produced by the SENSE system. The algorithm, called SYNE-COVTM, aims to provide more personalised care for patients with COVID-19, integrating data into an existing real-time dashboard allowing clinicians to augment their clinical decisions with near real time risk prediction for three outcomes: risk of ICU admission, the need for mechanical ventilation and in-hospital mortality.


Tekmar Group  105p  £53.8m (LON:TGP)

Tekmar Group, a leading provider of technology and services for the global offshore energy markets, provided a summary on recent progress.


The Group has secured a number of contracts with an aggregate value of over £6.0m due to be delivered in FY21.  These contracts , show the progress being made by the Group in increasing the number of collaborative projects its businesses are working on, increasing new market opportunities, and its continued expansion into the Asia Pacific region, areas which were highlighted in this year’s annual report as a focus for the Group in the current year.


Head Chef

Derren Nathan

0203 764 2344

[email protected]

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