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Small Cap Wrap – Deltex Medical Group, MediaZest, Symphony Environmental Technologies and more…

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21 Dec 2020


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What’s cooking in the IPO kitchen?


HSS Hire Group,HSS.L transfer from Main to Aim. Mkt Cap c. GBP70m. Recently raised GBP52.6m. Leading supplier of tool and equipment for hire in the United Kingdom and Ireland and has provided equipment hire services in the United Kingdom for more than 60 years, primarily focusing on the B2B market. Due 14 Jan 2021.




Vector Capital to float on AIM, a commercial lending Group that offers secured loans primarily to businesses located in the UK. Substantially all of the Group’s loans are secured by a first legal charge against real estate. The Group’s customers typically borrow for general working capital purposes, bridging, land development and acquisition. As of 30 September 2020, the Group had a loan book of GBP34.7m, with an average loan size of approximately GBP0.57m. Raising GBP3m. Mkt Cap GBP16m. Due late December.




Schroder BSC Social Impact Trust plc targeting a GBP100m raise. The Company’s investment objective is to be the first London listed investment company to deliver measurable positive social impact as well as long term capital growth and income, through investing in a diversified portfolio of private market impact funds, co-investments alongside impact investors and direct investments in order to gain exposure to private market Social Impact Investments. Due 22 Dec. Official List (Premium).




Ecofin U.S. Renewables Infrastructure Trust. Initial public offering of up to us$250m to invest in a diversified portfolio of mixed US renewable energy assets with an attractive long-term income stream. Main market premium. Minimum offer size reduced to $125m. Now due 22 Dec.




VH Global Sustainable Energy Opportunities plc, a closed-ended investment Company focused on making sustainable energy infrastructure investments, today announces intends to launch an initial public offering of shares on the Official List (Premium) of the Main Market of the London Stock Exchange. Due by Early Feb 2021.




Bytes Technology Group one of the UK’s leading software, security and cloud services specialists, to IPO (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%). Offer price set at 270p Raising GBP352m. Mkt Cap GBP646.6m. Due on 17 December 2020.




Eddie Stobart Logistics (LON:ESL) converting to an AIM investing company. Name change to Logistics Development Group. Focus sectors: logistics, transport, warehousing and e-fulfilment assets. GBP9m to be raised via a placing and subscription and up to GBP7m via open offer. Market cap c.GBP35.1m. Due New Years Eve.




Reverse take-over under rule 14 by MelodyVR (AIM:MVR) Group of Rhapsody International, trading as Napster. Upon completion of the transaction, Napster will be a wholly-owned subsidiary of MelodyVR Group. The enlarged group will combine the service offerings of MelodyVR and Napster, offering music fans a consolidation of music artist’s repertoires including recorded music, short form video content, long form video content, digitally ticketed live streams, educational videos and immersive AR/VR content, into one premium subscription product. Raising $10.1m. Market cap GBP92.4m at 3.75p. Due 29 December.


Banquet Buffet


Symphony Environmental Technologies* 19.5p GBP34.5m (LON:SYM)


The global specialists in supplying and developing technologies that make plastic “smarter, safer and sustainable”, announces that it is today commencing a legal action against the Commission, Parliament, and Council of the European Union (“EU”) in relation to their decision to adopt Article 5 of the Single Use Plastics Directive 2019/904. Symphony has been advised by three Barristers, all experts in EU law, that this part of the Directive is confusing and illegal, and substantial damages are being claimed.


Symphony’s Deputy Chairman, Michael Stephen, a former Barrister and MP, said “Symphony has decided to commence an action in the General Court of the EU for compensation pursuant to Article 340 of the Treaty on the Functioning of the EU by reason of the adverse effect on its business caused by the reference to “oxodegradable” in Article 5 of the Directive. Although we cannot dictate the timetable, the facts of the legislative process are clear and we do not expect the case to be protracted, as it will essentially be a point of law for the court to decide. Most of the costs of preparing the case have already been paid.”


It is important to note that Symphony’s d2p business is not directly affected by the Directive. d2p is a wide range of products, which include technologies that give plastic, rubber, and silicon anti-bacterial and anti-viral properties, and is an increasingly important part of Symphony’s overall business. These are among the few materials commonly used which can themselves (as distinct from painting and spraying) be made to destroy viruses on contact within one hour – before they can enter the human body. The demand for antiviral plastic is growing at a rapid rate all around the world, and making it biodegradable with d2w will help to protect the environment as well.




MediaZest* 0.0425p GBP0.6m (LON:MDZ)


The creative audio-visual provided shareholders with an update on top line results for the 18-month period ended 30 September 2020 .


The audit of the Period is underway and expected to complete in January 2021, with results announced and accounts sent to shareholders shortly thereafter. Information regarding MediaZest’s next Annual General Meeting will also be made available at that time. The AGM will be held before 31 March 2021. The results for the Period, which are subject to completion of the audit, are expected to show Group revenue in excess of GBP3 million.




Deltex Medical Group 1.15p GBP6m (LON:DEMG)


The specialist oesophageal Doppler monitoring, today announced an update on commercial activities.


2020 has been a challenging year for Deltex Medical due to the impact on the Group’s business from COVID-19 (“CV-19”). In recent years, approximately 80% of Deltex Medical’s revenues have been derived from elective surgical procedures, which have been significantly reduced across the globe since March of this year as a result of CV-19. Despite these challenges, in 2020 the Group has made good progress in a number of key areas, including:


o successful product development in relation to its new ‘TrueVue’ monitor platform as well as on a number of other new products which are complementary to its core TrueVue Doppler technology; o growth in revenues from UK intensive care units (ICU) treating ventilated CV-19 patients; Cash at hand at 1 December, 2020 was GBP0.6 million. (30 June, 2020: GBP0.6 million.)


Deltex has also rationalised the balance sheet including a raise of GBP293,000 (before expenses) by way of a subscription for 22,538,462 Subscription Shares at a price of 1.3 pence per Share. This represents a premium of 13% to the closing mid-market price on 18 December, 2020 of 1.15 pence.




BrandShield Systems 25.75p GBP29.4m (LON:BRSD)


The provider of cybersecurity solutions from brand protection to online threat hunting, has completed the signing of a contract to provide services to Bristol Myers Squibb (NYSE: BMY), a leading biopharmaceutical company. BrandShield will provide a comprehensive online brand protection and anti-counterfeiting solution. The Company will protect Bristol Myers Squibb’s and its subsidiary Celgene’s major brands against fraudulent online activity including, but not limited to, the sale of counterfeited drugs on online marketplaces, rogue websites, rogue online pharmacies, impersonation on social media, phishing attempts and trademark infringements.




Rosslyn Data Technologies 5.75p GBP19.54m (LON:RDT)


The global big data technology company, announced the release of its Customs CloudTM software solution. The cloud-based self-service solution is designed to enable importers to overcome the additional customs procedures resulting from the UK’s departure from the European Union. CustomsCloudTM enables Rosslyn clients to register with HMRC and to file all import declarations, either individually or in bulk, calculate the VAT and duty owed on any imports and to report this information direct to HMRC for future payments. CustomsCloudTM automates the process, saving time for clients and also provides certainty by reducing the risk of unknown future charges being payable on the client’s imports. This launch is in line with management’s expectations and is further evidence of the added value that Rosslyn is offering its clients.


Following the end of the Brexit transition period, it is estimated that over 200,000 UK businesses that import from the EU will need to start completing customs declarations for the first time. Many businesses are applying for government grants, which provide funding for investment into IT projects for customs declarations, such as CustomsCloudTM.




Kazera Global 1.275p GBP8.7m (LON:KZG)


Kazera has now sold its first batch of diamonds, showing that mining is focused in good locations, that all equipment, including the new scalper/screener built by the Company, is operating effectively and that sales are starting to take place as anticipated. This first “proof of concept” batch consisted of 52 carats of diamonds and the Company anticipates that the number of carats delivered will increase substantially with subsequent batches.


The Company’s focus in South Africa is now on increasing diamond production, processing a further 850 tons of gravel, of which 147 tons have been through final processing, yielding 42 carats of diamonds. Results so far indicate that mining continues to be aimed at the correct areas with good diamond content. The Company now intend on reaching a total of 1,500 tons of processed gravel for final processing prior to the shut off for the January auction.


As announced on both 11 November 2020 and 1 December 2020, the Company has been in advanced negotiations with a major Namibian investor. The Company is pleased to report that it has agreed commercial terms with such investor for a substantial equity investment at a value in excess of the current share price. The Directors believe that the investment can be finalised in the coming weeks subject to receipt of banking consents in Namibia.




Sanderson Design Group 84.5p GBP60m (LON:SDG)


The luxury interior design and furnishings group, announces a trading update following a strong performance in its key autumn selling period. Group revenue during the current financial year has continued on the improving trend from April 2020 as previously announced. In the 10 months to 30 November 2020, Group revenue was down approximately 14.6 per cent compared with the same period last year whereas, in the six months to 31 July 2020, it was down 30.6 per cent.


In the nine-week key selling period of October and November 2020, the Company’s brand product sales were up approximately 7 per cent in reportable currency compared with the same period last year. The Company’s manufacturing operations have performed well, with both the wallpaper and fabric factories now running at a similar level to last year. The Company believes that this demand reflects a widely reported trend in the home improvement and furnishings sector, with consumers having directed discretionary spending on their homes during the Covid-19 pandemic.


It is now expected that profit before tax for the year ending 31 January 2021 will be substantially ahead of management’s previous expectations.




Block Energy 2.9p GBP12.7m (LON:BLOE)


The development and production company focused on Georgia, announced that David (Dato) Sandroshvili has been appointed as independent non-executive director with immediate effect. Mr. Sandroshvili has spent most of his career in oil and gas corporate finance advisory, but for the last six years has held senior positions in oil companies. He is currently the CFO at New Age (African Global Energy) Limited. Prior to this appointment, he was Director of Strategy, Commercial and Portfolio at Ophir Energy Plc. Mr. Sandroshvili started his corporate finance career at Schroder Salomon Smith Barney (part of Citigroup) in London, before moving to UBS Investment Bank, where he managed the Russia/CIS oil and gas advisory business. Subsequently, Dato was Managing Director of the Oil and Gas Advisory at Evercore Partners.


Mr. Sandroshvili is a dual national of Georgia and the United Kingdom. He has an MBA in International Finance from Brandeis University in Massachusetts and a Diploma in Accounting from Tbilisi State University.




Angling Direct 76.5p GBP59.11m (LON:ANG)


The largest specialist fishing tackle and equipment retailer in the UK, provides an update on its operations in relation to the UK government’s enforced closure of non-essential retail stores in England’s Tier 4 areas from Sunday 20th December. The Company confirms 12 of its stores are now closed, but will remain trading with a call-and-collect service adopted in accordance with government guidelines. Angling Direct’s other 26 stores and its webstore remain fully operational for both the UK and European sales, with the distribution centre geared up to fulfil increased demand through this channel.


The Company notes that its positive sales momentum has continued since updating the market at the start of December. Notwithstanding further restrictions impacting the rest of the store network, the Board reaffirms that the Company remains on track to deliver full year 2021 EBITDA (pre IFRS 16) of not less than GBP3.8m and its balance sheet and liquidity position also remain strong. Angling Direct is pleased the wellbeing benefits of fishing continue to be recognised and agrees with Angling Trust’s interpretation of government guidelines, that angling is a legitimate health and wellness activity which can safely continue.




Alba Mineral Resources 0.34p GBP21.1m (LON:ALBA)


Update on the Company’s work activities at the Clogau-St David’s Gold Mine.


Key Points


. Surface Drilling Update


o Three drill holes have been completed for 399.6 metres, with a fourth hole so far drilled to 54.6 metres.


o Completed holes LL001-LL003 have intersected significant quartz veins, a total of 6.48 metres in LL001, 3.65 metres in LL002 and 5.7 metres in LL003.


o With each of the three completed holes hitting significant veins within about a 15-metre zone of one another (at 83.5m for LL001, 96.3 m for LL002 and 84.9 m for LL003), the Company believes this to indicate the presence of a vein system some 30 metres below the deepest previously worked zone at the Llechfraith mine area.


o Further, deeper holes will be drilled to test the depth extent of this vein system.


. Pilot Processing Plant Installation


o The remaining key items of plant have now been installed in the Clogau-St David’s Gold Mine building, notably the impact crusher and gold concentrator.




Head Chef


Derren Nathan


0203 764 2344


[email protected]


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