Small Cap Wrap – Burford Capital, Bonhill, RBG Holdings and more…


Our daily digest of news from UK listed Small and Mid caps

16 July 2021


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What’s cooking in the IPO kitchen?

Central Copper Resources, a company focused on delivering a high grade copper project into production and exploration of assets in the Democratic Republic of the Congo (DRC) and in the Republic of Zambia to join AIM. By 2022, CCR intends to be ready to commence the project financing of its Mbamba Kilenda copper project. Timing and offer TBA

Spinnaker Acquisitions to join the Main Market (Standard). A company formed for the purpose of undertaking an acquisition or acquisitions of a majority interest in a company, business or asset. Due 28 July.

South West Brands the multi-brand cannabidiol consumer goods company intends to float on the Main Market (Standard). Raising funds to continue to develop its existing portfolio of brand IP and pursue its strategy of adding brand IP assets to the portfolio over the course of the first 24 months following Admission. The Company expects Admission to occur in July 2021. Timing and offer TBA.

Revolution Beauty Group is a global mass beauty and personal care business which operates a multi brand, multi category strategy and sells its products both DTC via its e-commerce operations, and in both physical and digital retailers through wholesale relationships. Capital to be raised GBP300m (GBP110.7m of which is for the Company and GBP189.3m of which is for the Selling Shareholders). Market capitalisation on AIM admission of GBP495m. Due 19 July.

Big Technologies to join AIM. Big Technologies plc provides products and services to the remote and personal monitoring industry under a number of brand and trading names, with ‘Buddi’ being the most well known and used in respect of activities within the core criminal justice market. The Company’s criminal justice solution involves proprietary monitoring software combined with modular monitoring hardware being used to accurately track the location of tag wearers. Alongside this, the Company also offers monitoring services solutions for its customers. Offer TBA. Due late July.

GENinCode to join AIM, a UK-incorporated company engaged in the risk assessment, prediction and prevention of cardiovascular disease (CVD), the leading cause of death worldwide accounting for approximately 18m deaths annually. Due 22 July. Raised GBP17m. Mkt Cap GBP42m.

Zenova to join AIM. The Company, is the holder of intellectual property to underpin a suite of fire safety and temperature management products and technology applicable to industrial, commercial and residential markets. Capital to be raised on Admission GBP4.5m. Anticipated Mt Cap GBP17.74m. Due 22 July.

Microlise to join AIM. Microlise is a leading provider of transport management technology solutions, delivering a globally enabled SaaS platform that digitises the business processes of enterprise organisations running highly complex logistics operations. As at 31 December 2020, the Group had over 400 enterprise customers and over 500,000 vehicle subscriptions. Due Mid July. Offer TBA.

Lords Group Trading to join AIM. Lords Group Trading PLC is a consolidator of specialist merchant businesses across the Southeast and Midlands, adding value to the supply of building materials through product expertise and next day delivery. GBP30m primary, GBP22m shareholder sale, Mkt Cap GBP150m. Due 20 July.

Bridgepoint Group to float on the Premium Segment of the Main Market. Bridgepoint is the leader in middle market investing, with a global reach that leverages its strong pan-European footprint and Bridgepoint’s ability to deploy meaningful amounts of client capital across several well established strategies. Raising GBP300m. Timing TBA.

HydrogenOne Capital Growth to IPO on the Premium Segment of the Main Market. HGEN is targeting a raise of GBP250m. First London listed investment fund dedicated to clean hydrogen. Due by the end of July.

Forward Partners Group to join AIM. The Group has made 65 equity investments in early stage, high growth British companies, to build a portfolio that has a net asset value of GBP103.0m as of 31 March 2021. Offer TBA. Due mid July.

Bradda Head Holdings to join AIM. Bradda Head, previously called Life Science Developments Limited and before that Copper Development Corporation, is a delisted company previously quoted on AIM. In January 2018 Bradda Head acquired Bradda Head Limited, a lithium focused exploration company established to develop a portfolio of USA based lithium projects. Raising GBP6.2m. Mkt Cap GBP16.1m. Due 19 July.

Poolbeg, Proposed AIM listing and demerger from Open Orphan (ORPH.L). Funds raised as part of Admission will be used primarily to fund the clinical trial costs associated with the development of the Company’s POLB 001 asset as a treatment for severe influenza and to acquire and develop new portfolio assets. Raised GBP25m. Mkt Cap GBP50m. Due 19 July 2021.

The UK Residential REIT, a proposed closed-ended real estate investment trust established to invest in a diversified portfolio of affordable, privately rented residential real estate assets in attractive locations outside of London, announces its intention to IPO onto the Premium Segment of the LSE. URES is targeting Gross Issue Proceeds of 150m before expenses by means of a placing, offer for subscription and intermediaries offer of 150m Ordinary Shares plus an Issue of up to 50m Consideration Shares in connection with the acquisition of Seed Assets at an issue price of GBP1.00 per Ordinary Share. Expected market capitalisation following the completion of the acquisition of Seed Assets of GBP200m. Due 16 July.

Banquet Buffet

Burford Capital 752.75p GBP1,657m (LON:BUR)

Burford Capital Limited, the leading global finance and asset management firm focused on law, today announced that Burford has now received its full cash entitlement of approximately $103m in respect of the Akhmedov matter, which Burford funded to enforce a final judgment of the English High Court. Burford provides this release consistent with its regulatory disclosure obligations. All other details of the matter are confidential. Given prior successes in this matter which had previously resulted in the recognition of unrealised gains and taking account of costs and commissions, Burford expects this matter to contribute a further approximately $20m to its 2021 operating profit. In aggregate, Burford expects the matter to have generated more than $70m of realised gain over the life of the investment. This matter is one of many in Burford’s portfolio and the performance of any single matter is not necessarily indicative of Burford’s financial performance overall.

Bonhill 12.75p GBP12.57m (LON:BONH)

The B2B media business specialising in three key areas: Business Information, Events and Data & Analytics, provides a pre-close update for the six months ended 30 June 2021. Trading in the period is in line with market expectations for the year ending 31 December 2021. As announced at its Annual General Meeting on 27 May 2021, H1 revenue is expected to be slightly lower than for the comparable period in 2020. This is because continued COVID-19 restrictions have resulted in no live events being held to date in 2021 (Q1 2020: 16). Despite these challenges, Q2 2021 like-for-like revenues are expected to be 9% ahead of the comparable period in 2020. EBITDA for the period is also 24% higher than H1 2020. H1 loss before taxation is expected to be significantly reduced compared to H1 2020, reflecting the substantial cost saving initiatives taken in 2020. There are also no adjusting items or goodwill impairment in the period. 59 virtual events have been successfully held in the period. A small number of live events are planned for H2 2021 in the UK and US, reflecting the easing of restrictions and strong sponsor and delegate support.

Eve Sleep 3.9p GBP10.7m (LON:EVE)

The direct to consumer sleep wellness brand operating in the UK, Ireland and France announces a trading update for the six months ended 30 June 2021. Group revenue increased 13% to GBP13.9m (2020: GBP12.2m). UK&I revenues increased year-on-year by 18%. French revenues decreased year-on-year by 8%, as a result of minimal marketing investment in Q1 ahead of the new TV campaign. Increase in average order values has largely offset intake pricing pressures. Group marketing contribution and EBITDA losses in line with management’s expectations. Closing net cash at 30 June 2021 of GBP5.2m (31 December 2020: GBP8.4m) includes GBP0.7m for increased stock holding, repayment of GBP0.3m VAT deferred from Q1 2020 and a seasonal working capital outflow. Launch of major, new French TV campaign ‘La vie en jaune’ from May. Further product expansion beyond mattresses including new bed frames, YinYang duvet, bamboo linen bedding, Morphee sleep aid and launch of Sleep Away ‘sleepovers’ range. Agreed CBD licensing deal to go live in September as part of product expansion into sleep wellness. Increased investment in stock to strengthen business resilience and meet peaks in demand. Appointment of Mike Lloyd as Chairman and Masood Choudhry as Non-Executive Director.

Feedback 0.8p GBP8.6m (LON:FDBK)

The specialist medical imaging technology company, today announces that CVS Group, one of the UK’s leading providers of integrated veterinary services, has appointed Bleepa as its clinical communications platform for its Equine Division. First private business win for Bleepa with one of UK’s leading veterinary providers. Contract covers 20 Equine surgeries and showcases new Bleepa capabilities. Demonstrates Bleepa’s value in new markets.

Good Energy 331p GBP55.1m (LON:GOOD)

The 100% renewable electricity supplier and innovative energy services provider announced the launch of an innovative new time of use energy tariff, aimed specifically for electric vehicle drivers. As part of an increased focus on Mobility as a Service and EV service products, Good Energy has launched a new time of use tariff for domestic customers that own an EV. The launch includes the installation of a free second-generation smart meter, known as a ‘SMETS-2 meter’. The new ‘Green Driver’ tariff will be cheaper than previous offerings and will provide customers with options of two ‘off-peak’ overnight charging windows of five or seven hours, both starting at midnight. The two tariffs are designed to give customers a choice of off-peak charging period to suit their needs and help those that have an EV to save money on their energy bills. These tariffs have been designed based on customer feedback, highlighting a requirement for a slightly longer charging period.

Jadestone Energy 76p GBP352m (LON:JSE)

The independent oil and gas production company focused on the Asia Pacific region, announced the satisfaction of all conditions required to complete its proposed acquisition of the Peninsular Malaysia assets of SapuraOMV Upstream Sdn. Bhd. including receipt of PETRONAS approval. Jadestone and SapuraOMV will now proceed to complete the transaction, which will entail Jadestone paying the headline consideration of US$9m, subject to agreed adjustments. At completion, Jadestone will also receive the economic benefits from the Assets accruing from the effective date of 1 January 2021. Under the terms of the acquisition agreement, completion is scheduled to occur on or about 30 July 2021. Paul Blakeley, President and CEO commented: “I am delighted to see that the conditions to complete this transaction are now satisfied, allowing us to conclude our acquisition of the Peninsular Malaysia assets in a very efficient way. Our ability to complete this transaction within just three months of announcing the deal is a testament to the strong spirit of collaboration with each of the Seller, PETRONAS Carigali and PETRONAS.”

Jaywing 10.5p GBP9.8m (LON:JWNG)

The integrated agency powered by data science, has won a new contract with Skipton Building Society to act as its strategic and brand agency partner. This contract is expected to generate revenues of up to GBP3m over the next three years. Skipton Building Society, the UK’s fourth largest building society, has appointed Jaywing to develop its branding, marketing strategy and creative content for TV, as well as digital channels, print and social media. The partnership will see Jaywing direct the strategic roadmap for the brand over the next three years. Established in 1853, Skipton Building Society has 88 branches across the UK, assisting over 1m customers into homes and to save for a better future.

Nucleus Financial 189p GBP144m (LON:NUC)

The independent wrap platform provider, today publishes an update on its assets under administration (AUA) in respect of the three months to 30 June 2021. The Company continues to grow AUA, which rose to GBP18.9bn as of 30 June 2021, up 19.2% year-on-year and 5.1% on the previous quarter. By comparison, the FTSE All-Share Index increased 17.7% year-on-year and by 4.8% on the last quarter.

RBG Holdings 13a.5p GBP125.4m (LON:RBGP)

RBG Holdings, the professional services group, today publishes a pre-close trading update ahead of the publication of its financial results for the six months ending 30 June 2021 on 15 September 2021. The Group continues to trade in line with market expectations. As a result, the Board intends to pay an interim dividend of 2 pence per share in respect of the six months to 30 June 2021 on 27 August 2021 to shareholders on the register as of 30 July 2021.

Sigma Capital Group 202p GBP181m (LON:SGM)

Sigma, the private rented sector, residential development and urban regeneration specialist has delivered the 4,000th rental home for The PRS REIT PLC, cementing Sigma’s position as the leading operator in the delivery of new-build single family rental homes in the UK. The delivery, effected through Sigma’s PRS property platform, takes the total estimated rental value (ERV) of the PRS REIT’s portfolio to approximately GBP37.7m per annum. As at 30 June 2021, 1,096 additional homes were at various stages of development, as delivery approaches the PRS REIT’s initial target of 5,200 homes with an ERV of approximately GBP50.0m per annum.

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