Small Cap Wrap – Ramsdens, Deltic Energy, Beeks Financial Cloud and more…


5 Nov 2020


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SDL shares are no longer trading on the main market following a merger with RWS (RWS.L). The combination is intended to create the world’s leading provider of language services and language technology with a broad-based, well-funded business benefitting from increased scale, superior capabilities, an expanded geographic footprint, market leading technology and a highly experienced management team.

What’s cooking in the IPO kitchen?

Harrogate Group. The Company offers 90-day residential personality development and vocational courses to local authorities in England for young adults aged between 16 and 18 who have left school but are not in employment or further education to whom the client local authority owes a care obligation under The Children Act 1989. AQSE. No Funds being raised. Due 9 Nov.

Bytes Technology Group one of the UK’s leading software, security and cloud services specialists, announces that the Company intends to publish a Registration Document and is considering proceeding with an initial public offering (Main Mkt Prem). FY20 gross profit of GBP79.2m (+24.5% against FY19) and adjusted operating profit of GBP31.7m (+53.9% against FY19). Highly cash generative with FY20 cash conversion of 125.9% (FY19 cash conversion 139.7%). Timetable TBC.

Round Hill Music Royalty fund to IPO on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of a placing and offer for subscription targeting the issue of 375m ordinary shares at an issue price of US$1.00 per Ordinary Share. The Company’s Investment Objective is to provide investors with an attractive level of regular and growing income and capital returns from investment primarily in high quality, music intellectual property. Due mid-November.

Mailbox REIT PLC , a newly formed single asset company which owns the Mailbox , a large prime office-led mixed use property in Birmingham which has been independently valued at GBP179m, announced its intention to raise up to GBP62.5m MailBox REIT will apply for the Ordinary Shares be admitted to trading on the IPSX Prime segment of International Property Securities Exchange (IPSX ). IPSX is a new Regulated Investment Exchange regulated by the FCA and is the world’s first such exchange dedicated to the initial public offering and secondary market trading of companies owning single institutional grade real estate assets and multiple assets with commonality. Due November.

Tirupati Graphite, the fully-integrated, cash generative, specialist graphite and graphene producer with operations in Madagascar and India, announced its potential intention to undertake an initial public offering on the LSE (standard listing). Timing tbc

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. Timing tbc

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. 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. Targeted for Q4 2020.

Banquet Buffet

Everyman Media 67p GBP61m (LON:EMAN)

Everyman Media Group PLC announces that, following the new Government guidelines which came into effect this morning, its venues will be closed from today until further notice.

All appropriate measures are in place to reduce the financial impact of the closure on the Group, including the reduction of operating costs and the postponement of new sites, refurbishments and other capital expenditure projects, together with accessing government support schemes where available. The Group has a strong financial position and continues to have significant headroom in its banking facilities.

The Board continues to have every confidence in the strength of the Everyman offering and its long term opportunity.

Beeks Financial Cloud 101.5p GBP52m (LON:BKS)

The specialist in cloud computing, connectivity and analytics for financial services, announces the launch of Beeks Analytics as a Service, the first cloud-neutral network monitoring and trade analytics tool for the financial markets. Using Velocimetrics technology, Beeks Analytics as a Service provides financial market organisations with the ability to consume powerful network monitoring and wire-based trade analytics as a cloud hosted offering.

Deltic Energy 0.95p GBP13.4m (LON:DELT)

The natural resources investing company with a high impact exploration and appraisal portfolio focused on the Southern and Central North Sea, provides an update on activity relating to Licence P2252 which contains the Pensacola Prospect .

. Shell UK (“Shell” or “the Operator”), has reiterated its commitment to the drilling of the Pensacola well

. The Pensacola well remains on schedule for drilling in 2021

. Well planning, including design work and rig scoping has already begun

. In light of the current operating environment resulting from Covid-19, the Operator has been granted a short extension (to end March 2021) which will allow seismic data analysis to be fully completed before the final drilling decision is made.

Ramsdens 117.5p GBP36.2m (LON:RFX)

The diversified financial services provider and retailer, is a provider of certain services which the UK Government has categorised as essential. As a result, the Group’s 85 stores in England will remain open and continue to serve customers during the current four-week national lockdown.

Ramsdens has continued to operate its 19 stores in Wales during the two-week ‘firebreak’ lockdown scheduled to end on 9 November 2020. The Board currently believes that, should Scotland announce restrictions on non-essential retail, the Group’s 49 stores in Scotland are also likely to remain open to customers.

The health and wellbeing of all Ramsdens’ employees and customers remains a priority for the Group and all stores will continue to operate with strict hygiene and safety measures in place.

Shepherd Neame 600p GBP85.4m (AQSE:SHEP)

Trading update yesterday from Britain’s oldest brewer. “In the thirteen weeks since 4 July when pubs were allowed to reopen, the business has been profitable and cash generative.

Net debt at the year end was GBP84.4m with an additional GBP11m of tax liabilities that had been deferred in agreement with HMRC. As at 26 September net debt was GBP82.4m with the tax liabilities that had been deferred reduced to GBP5.7m with a further GBP1.2m of general deferrals. Liquidity is sufficient for the foreseeable future.

Like-for-like sales in those 64 Managed Pubs and Hotels that were open for this period were down -7.9%. Our coastal and destination sites have performed well and food and accommodation sales have been strong but our city centre and Central London drinks-led outlets less so.”

“We anticipate that trading during the winter months will be challenging as the new restrictions, such as the rule of six and 10pm curfew, impact business and consumer confidence; but we welcome the extension of the reduced VAT rate of 5% until March 2021. “

Wincanton 228p GBP284m (LON:WIN)

The largest British third-party logistics company, today announces its half year results for the six months ended 30 September 2020.

. First half performance underpinned by Digital & eFulfilment growth (+15.7%) from increased demand for online retail

. Underlying profit before tax of GBP19.1m (2019: GBP26.2m) delivered in face of unprecedented disruption caused by COVID-19

. Strong improvement in cash to deliver net cash of GBP63.3m (2019: net debt of GBP(14.8m), driven by good working capital management and deferral of VAT, corporation tax and pension payments

. Good momentum into H2 – results for FY20/21 expected to be materially ahead of current market expectations assuming no further severe impacts from COVID-19

. Dividend payments resumed following COVID-19-related suspension earlier in the year, with an interim dividend of 2.85p (2019: 3.90p) to be paid in January 2021

D4t4 Solution 205p GBP82.45m (LON:D4T4)

The data solutions provider, announces four new contract wins in key vertical sectors for the Group’s Celebrus family of products, which will add a total of cGBP5.5 million to revenue in the current financial year. These wins evidence the strength of the pipeline of business opportunities with new and existing clients alike that is underpinning the Board’s confidence in delivering a strong second half of the year.

Rockfire 0.93p GBP7.7m (LON:ROCK)

Results of four additional diamond drill holes from the July to September 2020 drilling campaign at the 100%-owned Plateau gold deposit (“Plateau”) in North Queensland, Australia. . Gold continues to be intersected in each hole at Plateau, including, for the first time, below 600 m from surface. Higher-grade gold hits (+5 g/t Au) are being encountered more regularly and more frequent intervals of +1.0 g/t gold are being drilled below 400 m depth.

“The interval of 4.5 m @ 3.0 g/t Au at 380 m depth, which lies outside our target zone, indicates the potential for additional targets at depth and will be followed up with drilling.

An intercept of 2.5 g/t Au at 639 m in hole BPL040 is also very encouraging as it demonstrates, for the first time, that the gold system remains active and mineralised with gold at depths beyond 600m from surface. Higher grades, up to 16.9 g/t Au, are being intersected west of the position of this hole, indicative of the variability of gold grades in these systems. More drilling is required to drill out the higher grades at these depths. To assist this drilling, a gravity survey is being planned to provide additional information about the underlying source of gold and is a comparatively inexpensive means of determining potential vectors towards a main source.”

Feedback 1.1p GBP11.7m (LON:FDBK)

The specialist medical imaging technology company, announces that Bleepa has been selected as a WISH 2020 Innovation Booster at the World Innovation Summit for Health, 15-19 November 2020 in Doha, Qatar.

The WISH Innovation Booster provides a chance for entrepreneurs to exhibit their healthcare innovations in front of some of the world’s leading health experts, health ministers, decision-makers, and investors. WISH provides a platform to enable delegates to engage with these cutting-edge ideas that are changing healthcare from the ground up.

Concurrent Technologies 87.5p GBP64m (LON:CNC)

The specialist in the design and manufacture of high performance embedded computer boards for critical applications announces the launch of a new high performance AdvancedMC processor board.

The AM C8x/msd is based on a high performance 6-core Intel(R) Xeon(R) processor with a choice of interfaces to broaden its suitability to different market sectors. The board is primarily aimed at wireless applications such as 4G/5G test instruments that require multi-processor high bandwidth solutions. It has been designed with detailed input from our customers and demonstrates our policy of providing an upgrade path from legacy technologies to more powerful and higher performance solutions. As such it is expected to appeal to both existing and new customers.

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Derren Nathan

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