Small Cap Wrap – Brighton Pier Group, Clinigen, Dekel Agri Vision and more…

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


@HybridanLLP


8 October 2021




*A corporate client of Hybridan LLP




Joiners


Conditional dealings begin in W.A.G. payment solutions (Eurowag: WPS.L) on the Main Market (Premium). Eurowag is a leading pan-European integrated payments & mobility platform focused on the commercial road transportation industry. It makes life simpler for commercial drivers and operators across Europe through its unique combination of payments solutions, seamless technology, a data-driven digital eco-system and high-quality customer service. The Offer Price has been set at 150 pence per Ordinary Share. The Offer comprises 113m new Ordinary Shares to be issued by the Company, raising gross proceeds of approximately EUR200m to support Eurowag’s growth strategy, and 11m existing Ordinary Shares to be sold by existing Eurowag shareholders. Mkt Cap GBP1.0bln




Tortilla Mexican Grill (LON:MEX), the largest and most successful fast-casual Mexican restaurant group in the UK has

joined AIM. Raised gross proceeds of GBP5m for the Company and GBP23m for selling shareholders. At the Placing Price of 181p the Company’s market capitalisation is approximately GBP70m.




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What’s cooking in the IPO kitchen?


Softline the global solutions and services provider in digital transformation and cybersecurity, with its headquarters in London, is considering proceeding with a potential initial public offering of global depositary receipts representing its ordinary shares. The Company is considering applying for admission of the GDRs to the standard listing segment of the Official List of the FCA and to trading on the London Stock Exchange’s Main Market for listed securities and on Moscow Exchange. The Group had a turnover of US$1.8 bln for the year ended 31 March 2021, employs c.6,000 people globally, and operates in more than 50 countries across emerging markets. Primary proceeds from the Offer are expected to be around US$400m. Due Late Oct.


Marks Electrical, a fast growing online electrical retailer, announced its intention to proceed with an initial public offering and to seek admission to trading on AIM. Marks Electrical sells, delivers, installs and recycles a wide range of household electrical products. In the year to 31 March 2021 revenue grew to GBP56m, up 78% against the previous financial year, while EBITDA increased to GBP7.45m, at a 13.3% EBITDA margin. The Group has made a strong start to its current financial year to 31 March 2022, with revenue growth of 78% in H1 FY2022, versus 47% growth in H1 FY2021. Offer TBA Admission is expected to take place in late October 2021.


Future Metals NL (ASX:FME) (ASX:FME) (formerly named Red Emperor Resources NL) to join AIM. No funds being raised. Future Metals is a platinum group metals exploration and development company that holds a 100% interest in the Panton PGM Project in Western Australia (the “Panton Project”). The Panton Project comprises 3 granted mining leases (M80/103, M80/104 and M80/105), which cover an area of approximately 23km2 and are located 60km north of Halls Creek and 1km from the Great Northern Highway, in the East Kimberly region of Western Australia. The Panton Project has a JORC (2012) Mineral Resource Estimate of 14.3Mt at 2.19g/t platinum, 2.39g/t palladium, 0.31g/t gold, 0.27 per cent. nickel and 0.08 per cent. copper. Due mid October. Mkt cap cGBP35.8m.


Bens Creek Group to join Aim. Bens Creek, together with its subsidiaries, will, on Admission, own and operate a metallurgical coal mine located on 10,000 acres in the southern part of the state of West Virginia and eastern edge of the Commonwealth of Kentucky, in the central Appalachian Basin of the eastern United States of America. The Mine’s operations are located primarily in Mingo County, West Virginia. The Mine includes a wash plant and rail loading facility located on the freehold land. Capital to be raised on Admission: GBP7m. Anticipated Mkt Cap on admission: GBP35m. Due 19 Oct.


M7 Regional E-Warehouse REIT intends to apply for admission onto The Property Stock Exchange (Wholesale Segment). On admission, the company plans to acquire a portfolio of UK retail warehouses worth GBP120m from M7 Real Estate Investment Partners VIII. The portfolio currently comprises 18 retail warehouse properties across the UK totalling 978,317 sq ft and fully let to 53 occupiers. Rent collections for Q2 2021 stand at 93% and are expected to revert to 100% in the coming quarters.


Castlenau Group to join the Specialist Fund Segment of the LSE’s Main Market. Castelnau was incorporated with limited liability in Guernsey under the Companies Law on 13 March 2020 as a closed-ended company limited by shares. The Company’s investment objective is to compound shareholders’ capital at a higher rate of return than the FTSE All Share Total Return Index over the long term. The Company is targeting an issue in excess of GBP170m. Sir Peter Wood, British entrepreneur and innovator, has committed to make a cornerstone investment of GBP25m in the Initial Placing. Due 18 Oct.


Light Science Tech Holdings, the holding company of the Group’s contract electronics manufacturing division, UK Circuits and Electronics Solutions Limited, and its controlled environment agriculture division, Light Science Technologies Ltd to join AIM. Due early Oct. Offer TBA.


Responsible Housing REIT to join the Main Market (Premium) raising up to GBP250m. The Company’s investment objective is to generate a consistent and sustainable income-based return from the provision of Supported Housing accommodation assets and aligned sectors. The Company will acquire and create quality, fit-for-purpose accommodation assets to cater for supported residents across a number of care sectors including adults and young people with learning disabilities, mental health issues, physical disabilities, addiction, those with support needs, those in need of temporary accommodation, the elderly and otherwise vulnerable individuals.


Arrow Exploration, currently on the TSX Venture exchange to dual list on AIM. Arrow has a portfolio of operated and non-operated interests in producing Colombian oil assets, together with a producing Western Canadian natural gas asset. The Company also has interests in development assets in Colombia. The Company has interests in six onshore blocks in Colombia, held through Arrow’s wholly-owned subsidiary in Colombia, Carrao Energy S.A., and in oil and gas leases in seven areas in Alberta, Canada, held through Arrow’s wholly-owned Canadian subsidiary Arrow Holdings Ltd. Offer TBA. The company last said Sept 13th that it expected to list end of September which has now passed.


Marley Group, a UK leader in the manufacture and supply of pitched roof systems to the construction market , today announces that it is considering an initial public offering on the Main Market (Premium). In HY Jun 2021 revenues grew from GBP52.1m to GBP76m with underlying EBITDA more than doubling to GBP21.8m Timing and offer TBA.


Fruugo.com which owns and operates a high growth and profitable global cross-border marketplace employing its own proprietary technology and data science, announces its intention to seek admission of its shares to trading on AIM. Due early Oct. Timing and offer TBA.


Blackfinch Renewable European Income Trust plc, a closed-end investment trust established to invest in a diversified portfolio of mixed renewable energy infrastructure assets, is considering proceeding with an initial public offering and has published a registration document. Raising up to GBP300m. Due on the Main Market (Premium) in October.


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. It pushed back its AIM float on 30th September from end September to late October. It last night said that the amount to be raised is still yet to be confirmed.


Euro Sun Mining Inc (TSX:ESM, OTC:CPNFF) (TSX:ESM) seeking to join the Main Market in Q3 2021. The Company’s main asset, the Rovina Valley Project, which contains the Rovina, Colnic and Ciresata deposits, is one of the largest undeveloped copper-gold projects in Europe, holding approximately 400Mt of confirmed resources containing 7.0m ounces of gold and 1.4 bn lbs of copper.




Banquet Buffet


Brighton Pier Group 65.5 p GBP24.4m (LON:PIER)


The diversified UK leisure business, announced a trading update ahead of publication of its preliminary results for its financial year ended 27 June 2021. The Group can confirm that Business Interruption Insurance claims totalling GBP5m have been recently settled with its insurers. Payments on account of GBP4.1m have been received to date and the remaining GBP0.9m was received yesterday. These claims relate to losses incurred to the end of June 2021. Earnings for FY 21 are expected to be GBP2m higher than market expectations on the back of the confirmation of these insurance receipts. The first 13 weeks of the new financial year have started strongly. Due to the summer weather, school vacations and the August bank holiday weekend, these summer weeks have historically contributed a significant proportion of the Group’s annual sales and earnings. This year’s key trading period has been boosted by pent-up demand and disposable incomes that built up during lockdown, significant increases in domestic holidays, a temporarily reduced rate of VAT and rates relief by way of Government support and the addition of the newly acquired Lightwater Valley theme park. Collectively, these factors have provided a unique opportunity for the business to maximise revenue and earnings and to complete the integration of Lightwater Valley into the Group. With many of the indoor and outdoor restrictions lifted, Brighton Palace Pier, the Group’s mini golf sites and its food-led bars were able to re-open from 17 May. With all four divisions mostly opened throughout, the Group reports total net sales for the 13-week period of GBP15.9m. This is 145% over the same period in 2020, and 44% ahead of the same (pre-Covid) period in 2019 (or 30% ahead of 2019 if benefit from the temporary VAT concession is excluded).




Clinigen 626.75p GBP833.8m (LON:CLIN)


The global pharmaceutical Services and Products company, announces it has signed an exclusive agreement with Humanigen, Inc. to implement a Managed Access Program for lenzilumab. Once set up the program will enable access to lenzilumab on a case-by-case basis for hospitalized patients with COVID-19 where the treating physician deems there to be no suitable alternatives and where regulations allow. The program will be available in the following 16 European countries: Austria, Bulgaria, Croatia, Cyprus, Denmark, Estonia, France, Greece, Ireland, Lithuania, Luxembourg, Netherlands, Portugal, Spain, Sweden, and Switzerland. Lenzilumab is an investigational product and is not currently authorized or approved in any country. Under the terms of the agreement, Clinigen will manage key elements of the program including regulatory oversight, logistics and access management.




Dekel Agri Vision 4.75p GBP25.4m (LON:DKL)


Dekel Agri-Vision plc (AIM:DKL), the West African agriculture company focused on building a portfolio of sustainable and diversified projects, provided a September and Q3 2021 production update for its 100% owned Ayenouan palm oil project in Cote d’Ivoire. September and Q3 2021 saw a continuation of the recent run of improved production, sales and pricing results in our core CPO business CPO prices continue to remain very strong with average prices achieved in Q3 2021 of EUR950, a 72.7% increase in average realised CPO prices compared to August 2020. Over the last few days, international CPO prices have been trading at all-time record levels. Should prices remain in this range we are well positioned to further improve on our 2021 record financial high season in 2022 which commences in around 3 months. Lincoln Moore, Dekel’s Executive Director, said: “We are pleased by the continuing growth we have seen in our CPO production during Q3 2021. Given global CPO prices are currently trading at an all time high, we are very well positioned to continue this strong period of financial growth into 2022.”




ITM Power 395.8p GBP2.2bn (LON:ITM)


The energy storage and clean fuel company, announced that the Refhyne II consortium has been awarded a grant of EUR 32.4m by CINEA (the European Climate, Infrastructure and Environment Executive Agency) for the development of a 100 MW electrolyser to be sited at Shell’s Energy and Chemicals Park, Rheinland. The Refhyne II consortium comprises Shell Deutschland GmbH, ITM Power and ITM Power GmbH, Linde Engineering, ITM Linde Electrolysis GmbH, Fundacion Tecnalia Research & Innovation, Element Energy and Concawe, and is coordinated by Sintef AS.




Journeo 117p GBP10.2m (LON:JNEO)


The information systems and transport technical services group, has been awarded a framework agreement with Crown Commercial Services. The framework has an initial two-year term with the option of up to two additional years extension. The framework allows the company to be considered for call-off contracts and direct catalogue-style purchasing, providing a procurement route for Local Authority and Government organisations in England and the devolved administrations in Wales, Scotland and Northern Ireland, to place orders directly for transport and pedestrian control, transport data services and sustainable transport technologies.




Learning Technologies Group 117p GBP10.22m (LON:LTG)


The provider of services and technologies for digital learning and talent management, announced receipt of all regulatory clearances required ahead of completion of the acquisition of GP Strategies (NYSE: GPX). The transaction is now expected to complete on 14 October, subject to certain customary closing conditions. LTG’s acquisition of GP Strategies will create a global business with more than 5,000 employees and proforma revenues of c.GBP500m. The strategically compelling combination will create a world-leading workforce transformation business focused on learning and talent management.




Premier Miton Group 176p GBP278m (LON:PMI)


Premier Miton Group PLC (AIM:PMI) today provides an update on its unaudited statement of Assets under Management for the fourth quarter of its financial year. GBP13.9 bln closing AuM at 30 September 2021 (30 September 2020: GBP10.6bln); GBP830m of net inflows for the year (Year to 30 September 2020: GBP619m net outflows). GBP120m of net inflows for the Quarter. 50 products managed by 17 investment teams at the Period end.




Secure Income REIT 408p GBP1.3bn (LON:SIR)


Secure Income REIT PLC (AIM:SIR) provides the following update on the collection of rents due up to the date of this announcement, following the end of the rent collection cycle for the September quarter and monthly rents due from July to October 2021. 100% of the 44.2m of rent that fell due between 8 July 2021 and 7 October 2021 has been collected. Included within the GBP44.2m of total rents receivable is GBP17.6m of rent, which represents the total amount due from Merlin Entertainments (AIM:MERL) Limited which was deferred from June and September 2020. The deferred rents were received in full by the due date. Only 0.04% of the annualised gross rent roll is outstanding at the date of this announcement for the current and any prior rent due dates.




Totally 36p GBP65.6m (LON:TLY)


The provider of a range of healthcare services across the UK and Ireland, announced multiple contract extensions for the provision of Integrated Urgent Care services and Urgent Treatment Centres (UTC) across London. The Contracts, which are valued at a total of c.GBP22m, have been awarded to Totally’s wholly-owned subsidiaries, Vocare Limited and Greenbrook Healthcare Limited, which together form Totally’s Urgent Care Division. The Contracts will run for periods of between 6 and 12 months and include the provision of: Integrated Urgent Care, including NHS 111, Clinical Assessment Services and Out-of-Hours services, for South West London CCG; an extension awarded to Vocare until 1 June 2022, value: c. GBP9m . Six Urgent Treatment Centres for North West London CCG; extensions awarded to both Vocare and Greenbrook until 31 March 2022, value: cGBP12m In addition to these extensions, Totally Healthcare, which makes up Totally’s Insourcing Division, continues to secure contracts to support the NHS with the reduction of waiting lists. Further insourcing contracts have been awarded in Blackburn, Rotherham and Sheffield across multiple clinical specialities.




Trident Royalties 33p GBP59.6m (LON:TRR)


The growth-focused mining royalty and streaming company notes the recent announcement1 by Lithium Americas Corp (TSX:LAC, NYSE:LAC). (LAC) regarding positive progress at the Thacker Pass Lithium Project, in Nevada, USA. Trident holds a 60% interest in a gross revenue royalty (GRR) over the entirety of the Project. The Thacker Pass MRE has increased to 13.7Mt of lithium carbonate equivalent (LCE) grading 2,231 parts per million lithium (ppm Li) of Measured and Indicated (M&I) Resources and 4.4Mt of LCE grading 2,112ppm Li of Inferred Resources. The Feasibility Study is now considering an optimised mine plan targeting Phase 1 capacity of 40,000 tonnes per annum lithium carbonate (+30% increase over the 30,000 tpa LCE targeted for Phase 1 in the original Pre-Feasibility Study and a Phase 2 total capacity of 80,000tpa LCE (+30% increase over the 60,000tpa LCE targeted for Phase 2 in the original PFS).




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