1 Feb 2021
*A corporate client of Hybridan LLP
Dish of the day
Supreme (AIM:SUP), a leading manufacturer, supplier and brand owner of fast moving consumer products, has IPO’d at 134 pence per share raising gross proceeds of £67.5 million. The Company’s market capitalisation is approximately £156 million
Off the menu
No leavers today
What’s cooking in the IPO kitchen?
Moonpig Group expected to join main market Feb. The retailer of curated gifts and personalised cards is targeting less than 2.0x net debt to EBITDA as at 30 April 2021. In connection with this, the primary offer of new shares is expected to raise gross proceeds of c.£20 million.
The Offer would be comprised of a secondary offer of existing Shares to be sold by certain existing shareholders and a primary offer of new Shares to be issued by the Company
Dr.Martens—Offer Price set at 370 pence per Share . Due 3 Feb. Dr. Martens’ total market capitalisation at the commencement of conditional dealings on the main market of London Stock Exchange will be approximately £3.7 billion based on the Offer Price. Partial sale by existing shareholders. No new monies being raised. Total offer size of £1.295 billion
Foresight Group , the award-winning infrastructure and private equity investment manager to IPO on the Main Market (Premium). The Offer will primarily comprise a sale of shares by existing shareholders (c.80% of the Offer) with a smaller offering of new shares (c.20% of the Offer) to be issued by the Company. Details TBA.
Baskerville Capital plc (to be renamed Oberon Investments Group Plc) 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. Expected admission date 9 February 2021.
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.
VH Global Sustainable Energy Opportunities plc, a closed-ended investment Company focused on making sustainable energy infrastructure investments announced it intends to launch an IPO of shares on the Official List (Premium) of the Main Market of the London Stock Exchange. Due by Early Feb.
Panthera Resources 23p £20.35m (LON:PAT)
The diversified gold exploration and development company with assets in West Africa and India, announced that the sale of the Kalaka Project (Kalaka) to Moydow Holdings Ltd (Moydow) has now been completed. With the transfer of Kalaka now completed, Panthera is entitled to receive the remainder of the deferred consideration (US$60,000) and refund to Panthera the 2H 2020 historical costs on Kalaka forecast at US$115,000. Furthermore, Panthera is entitled to receive 0.5 million shares in Moydow increasing its ownership interest in Moydow to 46.2%. The consideration is anticipated to be received shortly.
Gusbourne 70p £32.5m (LON:GUS)
The English sparkling wine producer, provides a trading update for the 12 months to 31 December 2020.
· Net revenue for the year ended 31 December 2020 is expected to be up by 29% to c. £2.1m (2019: £1.7m), reflecting the previously reported 24% like for like growth in H1, and expected like for like growth in H2 of 33%. · Demonstrates a 5 year net revenue CAGR of 35% (2015 to 2020).
· Significant growth in sales from direct to consumer (DTC) and overseas sales channels as Gusbourne adapted to the impact from COVID-19 on UK on-trade and off-trade sales channels. DTC sales for the year are expected to represent c. 30% (2019: 19%) of net revenue for the year and overseas sales are expected to represent c. 32% (2019: 22%). Plans to continue to invest in the growth and development of DTC and overseas sales over the next few years.
· Ongoing success in international wine competitions, receiving a further 40 medals in 2020 including fourteen gold medals, four trophies, and the Judges Selection Medal in the prestigious Texsom awards in the United States.
Seeing Machines 10.5p £393m (LON:SEE)
The advanced computer vision technology company that designs AI-powered operator monitoring systems to improve transport safety, publishes a trading update for the six months to 31 December 2020.
The Company expects to report revenue for H1 2021 of A$18.1m (H1 2020: A$15.8m), a 14.6% increase. Total connected Guardian units at 31 December 2020 was 26,597, securing forward Annualised Recurring Revenues including royalties of A$15.5m (H1 2020: A$13.2m, +17.4%). This represents an increase of 3,182 Guardian units in H1 2021 with additional hardware sales of 3,371 units still to be connected. Cash position at 31 December 2020 of A$52.7m (H1 2020: A$38.1m).
Seeing Machines continues to grow despite the ongoing disruption caused to its key transport sectors by the global COVID-19 pandemic. FY2021 marks the start of production for two major Automotive OEM programs, one in Europe and one in North America, as well as one of many vehicles from an expanded program for an existing OEM customer, signalling the beginning of meaningful Automotive production royalty revenues.
Sareum* 1.875p £61.3m (LON:SAR)
The specialist small molecule drug development business, announces that its CEO, Dr Tim Mitchell, will give a Company presentation at the 7th Annual LSX World Congress, which will be delivered digitally between 1 and 5 February 2021.
The presentation will showcase Sareum’s two proprietary TYK2/JAK1 kinase inhibitor programmes, SDC-1801 and SDC-1802, targeting autoimmune diseases and cancers, respectively. Dr Mitchell will also highlight the emerging potential of this mechanism to modulate the severe inflammatory responses and respiratory symptoms arising from Covid-19 and other viral infections.
The presentation will be made through the conference website and will be available to registered participants throughout the event – www.lsxleaders.com/lsx-world-congress A copy of the presentation will also be made available on Sareum’s website – www.sareum.com
Sumo Group 361p £611m (LON:SUMO)
Sumo Group, the award-winning provider of creative and development services to the video games and entertainment industries, announces the strategic acquisition of PixelAnt Games sp. z o. o. based in Wroclaw, creating an immediate presence for the Group and an established base for growth in Poland’s booming video games development industry.
The video games industry is growing rapidly in Poland. PixelAnt, which was founded in July 2020, is well known to the Sumo Digital management with its team of 13 developers currently working entirely on Sumo Digital projects. Following the acquisition, PixelAnt will sit alongside Sumo Digital’s other nine studios and continue to operate under the strong leadership of current studio directors Pawel Rohleder and Adam Lason. With the support of the Sumo brand, the strategy is to expand the studio’s headcount rapidly, accessing the growing pool of high-quality developers in the Polish market and focus on winning third party contracts, while continuing to work on Sumo Digital projects. The PixelAnt team will also work on Own-IP opportunities.
The Group has paid an initial cash consideration of £250,000 for PixelAnt. A further amount may be payable, in Sumo Group shares, depending on the EBITDA achieved in the two years to 31 March 2023. The acquisition of PixelAnt takes Sumo Digital’s studio count to ten and the Group’s total to 13, across five countries.
Resilient performance in challenging circumstances, optimism for the future. The specialist filtration, laboratory and environmental technology group, announces its results for the year ended 30 November 2020.
· Revenue 7% lower at £135.0 million · Operating profit 15% lower at £12.6 million (2019: £14.8 million). · Adjusted operating profit 13% lower at £13.6 million (2019: £15.6 million).
· Basic earnings per share was 18.4 pence (2019: 23.6 pence). Adjusted basic earnings per share were 21.6 pence (2019: 25.3 pence). Net cash was £4.9 million (2019: £4.0 million) after investing £4.2 million (2019: £14.1 million) in capital expenditure and acquisitions.
· Recommended final dividend of 3.3 pence (2019: 3.2 pence) bringing the full year dividend to 5.0 pence (2019: 4.9 pence).
Commenting on the outlook, Ben Stocks, Chief Executive, said: “Until the pandemic recedes, near-term trading remains unpredictable and the Group continues to withhold earnings guidance. But the results for the year turned out to be better than initially feared in our contingency planning. This was partly because the Group went into the pandemic financially sound and stable; and partly because the underlying growth drivers for most of the markets we serve remain in place, even though they are currently more volatile than usual. We expect demand for emissions control, clean water, process efficiency and laboratory consumables to revert to normal levels as economies allow. Certain end markets, aerospace in particular, may take longer to recover; while others, mainly in the Laboratory Division, are already rebounding strongly.”
Totally 32.25p £58.76m (LON:TLY)
The provider of a range of healthcare services across the UK and Ireland, reported that, following the recent announcement by the Company regarding the extension of existing contracts across England, the Group’s wholly owned subsidiary and one of the UK’s leading national specialist providers of urgent care services Vocare Limited, has been awarded two additional 12-month contract extensions worth a total of c. £16.8 million.
In partnership with the NHS, Totally’s Urgent Care division remains focused on delivering a full range of urgent care services, helping to relieve the pressures faced by the NHS today.
The independent gold company with a portfolio of gold licences in Greenland, announces an update to its 2020 exploration campaign at its Kangerluluk property within the Nuna Nutaaq licence.
· Historic channel sampling of the main shear zone has returned high grade results with highlights of 175.1 g/t gold over 0.8 m and 35.4 g/t gold over 0.95 m, and with grab samples up to 118 g/t gold.
· One grab sample collected from the main shear zone in 2020 returned 22.3 g/t gold.
· A float sample of highly altered metavolcanic rock rich in malachite and pyrite was collected close to Kangerluluk fjord, approximately 100 metres east of the main shear zone and returned 3.83% copper and 34 g/t silver.
· Follow up structural mapping and sampling at Kangerluluk is planned for 2021.
The mid-market network, cloud and IT managed services provider, provides a trading update for the year ended 31 December 2020. As indicated at the time of the Group’s interim results in September, revenue and EBITDA in the second half of the year were slightly down on the first half, and IDE expects to report revenue of £23.6 million (FY19: £28.2 million) and Adjusted EBITDA of approximately £0.5 million (FY19: £1.1 million) for the year ended 31 December 2020.
During the year ended 31 December 2020 the Group underwent a programme of cost rationalisation which included further redundancies to reflect the decrease in certain service lines as a result of the COVID-19 pandemic, as well as the ongoing data centre consolidation exercise, the benefits of which are expected to fall in the current year. The Directors continue to monitor the Group’s cost base and anticipate further savings to be made in the coming months given the ongoing level of churn in certain service lines, in particular cloud and networks.
In January the Group announced the signature of a significant new contract with an existing customer within its partnership channel under which the partner has committed to procure services from IDE to a value of £22.5 million over the next three years, with the opportunity to extend for up to another two years if the commitment is not met (the “Contract”). There has already been a good level of engagement with the partner with a pleasing level of underlying contracts already awarded under the Contract.
Venture Life 88p £111m (LON:VLG)
The specialist in developing, manufacturing and commercialising products for the self-care market, announces its unaudited trading update for the year ended 31st December 2020, ahead of the announcement of the Group’s audited results on 25th March 2021.
The Company expects to report revenues for the year ended 31st December 2020 of £30.1 million, 49% higher than for 2019, and adjusted EBITDA is expected to be not less than £6 million, more than double the 2019 adjusted EBITDA. There were no further shipments of product to our Chinese oral care partner in H2, but shipments are due to resume in H1 2021.
Despite the challenges presented by the COVID-19 pandemic, revenues across the business grew significantly in 2020, notably in sales of the VLG Brands, which now represent 50% of revenues, compared to 33% in 2019. The significantly increased revenues and higher prevalence of revenues from the VLG Brands in the year have contributed to improving gross margin, as expected. Revenues from the newly acquired PharmaSource business were ahead of 2019, and a number of planned synergies have already been achieved.
The clinical study at Cardiff University on our mouthwashes is still on-going and we will update the market when the results have been published in due course.
0203 764 2344
Status of this Note and Disclaimer
This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. Recipients should make their own investment decisions based upon their own financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.
The information contained in this document is based on materials and sources that are believed to be reliable; however, they have not been independently verified and are not guaranteed as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such.
Any and all opinions expressed are current opinions as of the date appearing on this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.
This document is sent to you as market commentary only. As market commentary this document does not constitute any of (i) investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments for the purposes of section B of annex I to Directive 2014/65/EU (“MIFID II Directive”); or (ii) investment research as defined in article 36(1) of Commission Delegated Regulation 2017/565/EU made pursuant to the MIFID II Directive; or (iii) non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook).
This document should not be relied upon as being an independent or impartial view of the subject matter. The individuals who prepared this document may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.
In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as “relevant persons”). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.
Neither this document nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.
Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.
This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.
Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.