Our daily digest of news from UK listed Small and Mid caps
9 Feb 2021
*A corporate client of Hybridan LLP
Dish of the day
Baskerville Capital plc (to be renamed Oberon Investments Group Plc) (AQSE:BASK) has joined the Access segment of the AQSE Growth Market. The Company 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
MGC Pharma (LON:MXC) becomes the first cannabis-sector company to IPO on the main market of the LSE (standard) raising £6.5m at 1.475p. In FY2020 MGC Pharma generated revenue of AU$2.1m, delivering major revenue growth from FY2019 and a continuing upwards trend in FY2021. MGC Pharma’s existing products designed to meet immediate market concerns, including the two flagship phytocannabinoid-derived medicines: CannEpil® designed as a treatment for refractory epilepsy and CogniCann® designed to improve dementia and Alzheimer’s disease for patients’ quality of life. Market capitalisation of approximately £33.7 million
Off the menu
No leavers today
What’s cooking in the IPO kitchen?
Samarkand Group Limited, the cross-border eCommerce technology and retail group opening up the world’s largest market for brands and retailers, intends to IPO on the Apex Segment Aquis Stock Exchange Growth Market. Admission is targeted for March 2021.
Cellular Goods a UK-based provider of premium consumer products based on biosynthetic cannabinoids announced its intention to join the main market (standard) this spring. Target valuation £20m raising c. £8m “to finalise the development and launch of a range of the Company’s premium-quality consumer products based on biosynthetic cannabinoids, which is fully compliant under UK law.”
Kanabo Group (RTO by Spinnaker Opportunities SOP.L) on the main market (standard). Raising £6m, enlarged mkt cap £23.4m. Kanabo focuses on the distribution of Cannabis-derived products for medical patients, and non-THC products for CBD consumers . Due 16 Feb.
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
Auction Technology Group is considering an IPO on the Main Market. The Group operates six world-leading online Marketplaces and proprietary global auction platform technology for curated online auctions . In FY20 the Group delivered pro forma revenue of £52.3 million, supported by notable underlying year-on-year growth from both Standalone ATG Group and Standalone Proxibid Group (12.4 per cent. and 40.4 per cent., respectively). For the same period, the Group delivered a strong profitability performance of £22.3 million pro forma Adjusted EBITDA representing a pro forma Adjusted EBITDA margin of 42.6 per cent.
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.
Cordiant Digital Infrastructure to admit its shares on the Specialist Fund Segment of the Main Market of the London Stock Exchange . Targeting a £300m raise. Cordiant invests in global infrastructure and real assets, running infrastructure private equity and infrastructure private credit strategies through limited partnership funds and managed accounts. Due 16 Feb
4basebio UK Societas is a specialist life sciences group focused on therapeutic DNA for gene therapies and DNA vaccines and providing solutions for effective and safe delivery of these DNA based products to patients. The Company has been divested from 4basebio AG , a German company listed on the Prime Standard segment of the Frankfurt Stock Exchange . No capital to be raised on Admission. Anticipated market capitalisation on AIM Admission: £14.53m. Due 17 Feb
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.
Symphony Environmental Technologies* 17p £31m (AIM:SYM)
The global specialists in supplying and developing technologies that make plastic and rubber products “smarter, safer and sustainable”, announced a trading update for the year ended 31 December 2020.
· Group revenue increased 19% to £9.8 million (2019: £8.2 million)
· Further revenue of £0.7 million could not be recognised during the year, as shipment missed Symphony’s year end cut-off due to Far East shipment congestion. Otherwise, Group revenue would have exceeded £10.5 million, an increase of 30% on 2019.
Costs increased during the year by approximately £0.25m due to a temporary increase in d2w Latin American market and regulatory specialist costs together with EU legal action costs. These short-term discretionary costs will continue into 2021, with market advisory costs expected to fall away during the second half of the year. In addition, the Company’s wages and salary costs increased in 2020 due to the investment in the sales and other key functions of the Group. The result of the above investments is that the operating loss for the year is expected to be approximately £0.4 million (2019: £0.6 million).
2020 will show cash of £1.4 million being absorbed in operations during the year due to working capital required for a large proportion of 2020 Q4 revenue weighted in December 2020, together with revenue held over into 2021 due to the above-described cut-off. This resulted in a net cash position of £0.5 million as at 31 December 2020 (2019: £0.9 million). The Group has sufficient working capital and banking facilities to enable it to implement its growth plans for 2021.
More than 70% of the Group’s current commercial opportunities (by value) are for antimicrobial and antiviral technologies.
As announced on 21 December 2020, Symphony commenced a legal action against the institutions of the EU, having been advised by three specialists in EU law that Article 5 of the Directive 2019/904 is unconstitutional. These institutions have until 7 March 2021 to serve their defence. At that point Symphony will be able to better understand timing and costs going forward. All the costs of preparing the case have been paid, and any substantial further costs would be incurred only if it went to trial. For further information see Notes to Editors. The Group will provide updates as appropriate.
Abingdon Health 95p £91m (AIM:ABDX)
The international developer and manufacturer of high quality and effective rapid tests, has signed a collaboration and co-marketing agreement with Abcam plc (NASDAQ:ABCM; AIM:ABC), a global leader in the supply of life science research tools and reagents.
The Parties intend to establish a collaborative strategic relationship to enable them to identify and maximise opportunities for the provision of each Party’s respective products and services, including the wider Abcam reagent portfolio and Abingdon Health’s rapid test contract development and manufacturing services.
Northbridge Industrial 103.5p £28.9m (AIM:NBI)
The industrial services and rental company, announced a pre-close trading update in advance of its results announcement for the year ended 31 December 2020, which is scheduled to be released on 13 April 2021.
“Trading in the second half of 2020 showed a marked improvement following the sharp COVID-19 related downturn in the second quarter as lockdowns were introduced in all our markets. Although the pandemic continues to influence the business, we were pleased to see that the impact on the Group continued to reduce as the year progressed. We expect profit before tax and exceptional costs to be modestly ahead of management’s expectation, and slightly ahead of 2019, underpinned by the ongoing recovery in all our markets.
Total Group revenue for the full year will be broadly similar to 2019, assisted by the continued strong growth for the manufacture and sale of Crestchic’s loadbanks. This helped mitigate the impact the lockdowns had on rental revenue for both Crestchic and Tasman during the middle two quarters of the year. Rental revenue at Tasman continued to recover year on year, due to the strong first quarter, despite the problems crewing rigs during the pandemic and quarantine rules in our sector of the market.”
B.P. Marsh & Partners Plc 272p £102m (AIM:BPM)
B.P. Marsh, the niche venture capital provider to early-stage financial services businesses, updated on trading for the year ended 31 January 2021.
The portfolio of 18 investments has continued to show its resilience despite the ongoing uncertainty caused by the global pandemic. One of the Group’s key financial objectives is the delivery of long-term growth to its shareholders via the regular increase in Net Asset Value. The Group’s interim results to 31 July 2020 showed an increase in Net Asset Value to £142.6m (31 July 2019: £130.0m; 31 January 2020: £136.9m), producing a 4.8% return to shareholders (including the payment of a dividend) in the six month period. The Group remains positive regarding its ongoing performance.
Tandem Group 540p £27.3m (AIM:TND)
The designers, developers, distributors and retailers of sports, leisure and mobility equipment, announces a trading update ahead of its annual results for the year ended 31 December 2020 which are due to be announced in March 2021.
“As we announced in our interim results on 22 September 2020 revenue in the first half of the year increased by approximately 6% to £16,927,000 (2019 – £16,029,000) due to the strong growth in cycling and sales of outdoor products, partially offset by cautious national retailer FOB (w here product is purchased in full containers and shipped direct from the country of origin ) wheeled toy buying.
In the second half of the year, as we previously reported, revenue in the Summer period and to the end of Quarter 3 was behind the prior year due to the ongoing cautious national retailer FOB buying. However, Quarter 4 revenue was approximately 6% ahead of the prior year which recovered some of the reduction in Quarter 3. As a result, unaudited Group revenue for the full year was approximately £37.1 million.”
Brickability 68.5p £158m (AIM:BRCK)
The construction materials distributor, provided an update on trading. Following the Interim Results for the six months ended 30 September 2020 the Group has continued its strong recovery and the lockdown measures since November 2020 have had little material effect on trading. Furthermore, throughout the pandemic the Group has maintained rigorous cost control while continuing to make acquisitions and other strategic investments.
As indicated in the Interim Results, the market for its products continues to improve and the fundamentals for housebuilding remain strong. Additionally, the Group had undertaken significant preparation for the UK’s departure from the European Union on 31 December 2020 and has seen no negative impact to its trading arising from this. The Group’s order books reflect the underlying optimism that, given the need for more homes to be built and Government support for house building, demand will remain strong for quality building materials. As a result, the Group now expects an adjusted EBITDA of at least £16 million for the full year to 31 March 2021.
Pressure Technologies 98.5p £30.6m (AIM:PRES)
The specialist engineering group, announced that its wholly owned subsidiary, Chesterfield Special Cylinders , has secured a contract with Haskel Hydrogen Group (Haskel), part of the Precision and Science Technologies Segment at Ingersoll Rand Inc. (NYSE:IR) for the supply of high-pressure Type 1 steel vessels to be used for hydrogen storage in three new Hydrogen Refuelling Stations.
This contract, to be delivered through summer 2021, increases the number of HRS projects secured by CSC for Haskel in Europe.
Ethernity Networks 34p £16.6m (AIM:ENET)
The supplier of data processing offload solutions on programmable FPGA (field programmable gate array) hardware for accelerating telco/cloud networks, announces today that, following requests received from three Tier-1 server vendors, it has delivered its 5G Distribution Unit (DU) FPGA implementation on top of its ACE-NIC100 FPGA SmartNIC for telco OpenRAN trials.
The server vendors will evaluate Ethernity’s existing DU offering while the Company continues working with them on an upgraded version that will entirely account for the operator’s specific NIC requirements within the OpenRAN deployment.
The server vendors will focus their efforts with Ethernity to prime an offering to service providers committed to an early rollout of OpenRAN technologies in order to achieve cost savings and world-class services. The Company believes that its Router-on-FPGA-NIC provides a unique offering that is capable of meeting telco operators’ 5G DU demands.
Chapel Down 63p £91m (AQSE:CDGP)
England’s leading winemaker, today announced that it intends to give effect to the disposal of the Curious Drinks business and assets, comprising the Curious Beer and Cider brands and the Curious Brewery and restaurant, to a NewCo, established at the direction of Risk Capital Partners LLP (RCP).
Subject to the granting of HM Revenue & Customs licences to RCP, the Company intends to place Curious Drinks Limited (“Curious”) into administration, following which RCP will acquire the business and assets from the administrators (the “Disposal”).
There will be no redundancies as part of the Disposal. The effect of the Disposal, for which Chapel Down will not receive any consideration, is to remove the Curious business from the Chapel Down Group and with it the attendant net debt in Curious. This will reduce Chapel Down’s unaudited net debt from £7.2m to £0.1m with £4.6m cash on a proforma basis at 31 December 2020.
Nightcap 29p £39.23 m (AIM:NGHT)
Nightcap plc has noted the recent rise in the Company’s share price and confirms that it knows of no reason for this price movement.
Nightcap’s strategy is set out in the Company’s AIM admission document dated 7 January 2021. The Board remains enthusiastic in relation to the opportunities available to the Company and optimistic about the Company’s prospects once the hospitality sector reopens.
Nightcap was established in 2020 to take advantage of the significant changes taking place within the premium bars segment and the hospitality industry more generally in the UK.
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