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Small Cap Wrap – Yew Grove REIT, Uniphar, Wynnstay Group and more…

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What’s cooking in the IPO kitchen?

tinyBuild— a leading video games publisher and developer with global operations. tinyBuild’s strategic focus is in creating long-lasting IP by partnering with video games developers, establishing a stable platform on which to build multi-game and multimedia franchises is to join AIM. Offer details TBC.  Due mid-March.

AMTE Power,  a developer and manufacturer of lithium-ion battery cells for specialist markets, announced its intention to seek admission to trading on AIM. Admission is expected to take place during March 2021. The Company intends to raise approximately £7m by way of a placing of new ordinary shares in the capital of the Company. Timing TBC.

Samarkand Group Limited, the cross-border eCommerce technology and retail group opening up the world’s largest market for brands and retailers, intends to IPO on  the Apex Segment Aquis Stock Exchange Growth Market. Admission is targeted for March 2021.

Cellular Goods a UK-based provider of premium consumer products based on biosynthetic cannabinoids announced its intention to join the main market (standard). Has raised £13M in an oversubscribed placing. £25m mkt cap. Due 26 Feb.

NextEnergy Renewables  to launch an IPO on the Main Market. NREN is a differentiated renewables investment Company that aims to capture the most attractive private renewables and energy transition infrastructure investment opportunities globally.  Targeting a £300m raise.   NREN is targeting total returns of 9-11 per cent. per annum (net of all fees and expenses but including the Target Dividend and capital appreciation) . The Company’s target dividend yield for the first full financial year to 31 December 2022 is 5.5 pence. Due Early March 2021.

Digital 9 Infrastructure launch an initial public offering  on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of an initial placing and offer for subscription for a target issue £400m. Digital 9 Infrastructure plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet. The IPO Prospectus is expected to be  published in March 2021.

Team PLC announced their plans for an AIM IPO.  Team owns Theta Enhanced Asset Management Ltd, trading as Team Asset Management. This is a Jersey-based active fund manager providing discretionary and advisory portfolio management services to private clients, trusts and charities. Assets under management were GBP291m in November, up from GBP140m in December 2019 .   The Company is seeking to raise  no less than £5m.  The Placing will be priced on a pre-money valuation for the Company of £7m. Targeting March Admission.

Virgin Wines UK Plc has out their plans for an AIM IPO.  Virgin Wines is a direct-to-consumer online wine retailer that sells products to retail customers in the UK through two subscription schemes and a pay-as-you-go offering. The Group also sells a range of beers and spirits and operates a B2B sales channel for corporates.  Anticipated mkt cap £110m. Raising £13m in new money and vendor sale of £34.9m . Due 2nd March.

Fix Price announces its intention to float on the Main Market of the London Stock Exchange.  Fix Price is one of the leading variety value retailers globally and the largest in Russia, with more than 4,200 stores. Fix Price has revenues of RUB 190.1bn, RUB 142.9bn and RUB 108.7bn for 2020, 2019 and 2018, respectively. Adjusted EBITDA for the same years was RUB 36.8bn, RUB 27.2bn and RUB 14.2bn, respectively. The Offer would consist of an offering of GDRs by certain existing shareholders of the Company.

Great Point Entertainment Income Trust PLC announced its prospectus has been approved by the FCA.  Great Point Entertainment Income Trust PLC is a newly established, externally managed closed-ended investment company. The Company will provide project finance to content makers and commissioners in the global television and film production industry via senior loans secured against pre-sold intellectual property (IP) rights. GPEIT’s investment objective is to provide Shareholders with dividend income and modest capital growth through exposure to media content finance.

According to media reports, Deliveroo, are expecting to release their IPO plans on 8th March.  The company raised more than $180m in January with a valuation of more than $7bn. 

Banquet Buffet

Yew Grove REIT 0.87p  £97.1m (LON:YEW)

The owner of a diversified portfolio of Irish commercial property assets, announced an update covering recent asset management. The Company has agreed a new lease for the entirety of the Gateway Three building, East Wall Road, Dublin to the Electricity Supply Board (ESB) group. The ESB, which is majority (95%) owned by the Irish government, had occupied all of this building on a lease for 43,220 sq ft and 30 car parking spaces which would have expired on 31 December 2021. The ESB has signed a lease extension from 1 January 2021 for a further term of five years with an option of an additional one year extension at an initial headline rate of EUR29 per sq. ft. in line with the Company’s view on ERV.

Since the start of the new year, the Company has also agreed three rent reviews at Millennium Park Naas, Block A Waterford and Blackwater House Mallow, which add a further EUR80,000 (0.7%) to the Company’s annual rent roll. The new Gateway Three lease will add an additional EUR390,000 to the existing rent roll from 1 January 2021.

Together with the new lease at Cork Airport and combined with four separate break notices that expired so far in 2021 (in Ashtown Gate, Millennium Park & Gateway One) this activity has increased Yew Grove’s pro forma portfolio weighted average unexpired lease term (WAULT) to expiry and break to 7.7 and 4.8 years respectively from 7.1 and 4.1 years.

 

Ilika 225p  £313m (LON:IKA)

The pioneer in solid-state battery technology, provides an update on the implementation of its Stereax manufacturing plans, Ilika’s miniature solid-state batteries designed for industrial wireless sensors in hostile environments and medical implants. Further to Ilika’s Half-year Results on 14 January 2021, the Company confirms continued progress with the implementation of its manufacturing scale-up plans for Stereax, including the below milestones being reached:

Completed a lease on a 1,650m2 facility (FAB) within four miles of Ilika’s headquarters · Awarded outfitting contract for the construction of the cleanroom facilities within the FAB to house the Stereax manufacturing line · Completed fabrication of the industrial evaporator, previously referred to as “Tool 1”, with which Ilika will deposit Stereax battery cathodes, pending successful completion of the impending factory acceptance tests · Progressed on-track fabrication of the multi-wafer sputterer, referred to as “Tool 2”, which Ilika will use for deposition of the other active layers in Stereax batteries

The Company has been made aware that some construction materials suppliers are experiencing supply chain delays, particularly from Europe, which the Company is managing in order to minimise any impact on overall project implementation and do not believe this will have a fundamental effect on expected timings. The Company continues to expect installation of Stereax manufacturing equipment in its FAB to commence in the first half of calendar year 2021, enabling commissioning and process qualification to be carried out in the second half of 2021. This will result in a 70x increase in Stereax production capacity by the end of 2021. Following product qualification, initial product sales continue to be expected in the first half of 2022.

 

Uniphar 220p  £600m (LON:UPR)

The shareholders of the Company have approved resolutions in relation to the replacement of CREST with a system operated by Euroclear Bank for the electronic settlement of trading in Uniphar Shares at the extraordinary general meeting held on 15 February 2021 .

In accordance with Resolution 1 approved at the EGM, on 16 February 2021 a committee of the board of directors of the Company approved the Company giving its consent to the Migration of the Migrating Shares to Euroclear Bank’s central securities depository in accordance with the Migration of Participating Securities Act 2019.  The requisite notifications in connection with the Migration have also been made by the Company to the Irish Companies Registration Office and Euronext Dublin. The Migration will take place as part of the wider Market Migration which will occur on the date determined by Euronext Dublin and which is currently expected to be on or around 15 March 2021. Further announcements will be made in relation to the Migration timetable in due course.

Headquartered in Dublin, Ireland, Uniphar plc is an international diversified healthcare services business, servicing the requirements of more than 200 multinational pharmaceutical and medical technology manufacturers across three divisions – Commercial & Clinical, Product Access and Supply Chain & Retail.

 

Wynnstay Group 480p  £96.25m (LON:WYN)

Wynnstay, the agricultural supplies group, announced the appointment of Lewis Davies as Environmental and Sustainability Manager, a newly-created role, effective immediately. Lewis will lead the ongoing development and implementation of Wynnstay’s ESG strategy across the Group. He will also act as a representative for Wynnstay as the Company works with its peers to promote increased sustainability throughout UK agriculture, including as a member of the sustainability committee of the agrisupply industry’s leading trade association, the Agricultural Industries Confederation (AIC). Lewis joined Wynnstay in 2014 and has latterly been involved in the creation of Wynnstay’s sustainability objectives, which encompass raw materials sourcing, waste management and energy efficiency as primary areas of focus. His experience in sustainability is supported by specialist domain study at Harper Adams University, where he gained a post-graduate certificate in International Agri-Business and Food Chain Management, with research projects focused on sustainability in UK farming. 

 

Enwell Energy  26.35p  £84.5m (LON:ENW)

Results of the SV-25 well and the spudding of the SV-29 well at its Svyrydivske (SV) gas and condensate field in Ukraine.

The SV-25 well is an appraisal well, targeting the B-20, B-22 and B-23 horizons in the Visean formation. The well was spudded in July 2020 and has been drilled to a final depth of 5,320 metres. One interval, at a drilled depth of 5,184 – 5,190 metres, within the B-22 reservoirs was perforated, and initial testing was undertaken using a variety of choke sizes. The well has been hooked-up to the gas processing facilities to allow longer-term production testing to be conducted to optimise the operating parameters of the well. Currently, the well is producing at a stabilised flow rate of approximately 1.9 MMscf/d of gas and 109 bbl/d of condensate (452 boepd in aggregate).

The SV-29 well has now been spudded and has a target depth of 5,450 metres. Drilling operations are scheduled to be completed by the end of the third quarter of 2021, and, subject to successful testing, production hook-up is scheduled during the fourth quarter of 2021. The well is primarily a development well, targeting production from the B-22 horizon, as well as appraising the B-21 and B-23 horizons, in the Visean formation.

 

N Brown 70.9p  £326.5m (LON:BWNG)

The top 10 UK clothing & footwear digital retailer announced  that Matt Davies will step down as Chairman with effect from 31 March 2021 to spend more time on his other business activities.  The Board thanked  Matt for his contribution over the past three years and for guiding the business through a successful refinancing and transfer to AIM.

Ron McMillan will relinquish his roles as Senior Independent Director and Audit Committee Chair of N Brown and will succeed Matt as Chairman.  Ron is currently Audit Committee Chair and Senior Independent Director of B&M European Value Retail SA and SCS Group Plc, and Audit Committee Chair of Homeserve Plc.

Gill Barr will succeed Ron as the Senior Independent Director.

 

Trakm8 Holdings 15p  £7.5m (LON:TRAK)

The telematics and data supplier to global markets has been awarded a long term contract to deploy over a 1,000 RH600 integrated telematics and cameras systems to The Parts Alliance Group. 

Trakm8 will supply the full fleet management and driver behaviour solutions based on Insight, the Group’s leading analytics and data platform.

Revenue in the second half will be approximately 15% up on the first half, despite the second and third Covid-19 lock-downs which have had a significant adverse effect on Insurance customers as a result of the temporary suspension of driving tests.  Full year revenue is expected to be approximately 20% lower than FY20, with Covid-19 compromising what would otherwise have been a year of growth.  This will result in a modest adjusted loss before tax broadly similar to last year.

 

Digitalbox 6.375p  £7.4m (LON:DBOX)

The mobile-first digital media business, which owns Entertainment Daily, The Daily Mash and The Tab updated on training.

As previously announced on 3 December, the Group can confirm that the revenues and profits in the second half of year ended 31 December 2020  were stronger than the first half. The Company expects revenue for FY2020 to be approximately £2.2m (FY2019: £2.2m) and adjusted EBITDA to be approximately £0.3m (FY2019: £0.5m). The Company’s net cash position at the end of January 2021 was £1.9m (30 June 2020: £1.2m). 

The current financial year has started well with Q1 2021 to-date performing ahead of our initial expectations. The Tab continues its positive integration into the Digitalbox model reaching profitability (previously loss making) after three months of ownership; together with audience growth across the portfolio, Digitalbox now has a reach of more than 12m monthly users.

 

Horizonte Minerals 7.9p  £127m (LON:HZM)

The nickel company focused on Brazil, has been awarded the construction licence package for the development of the power line for its 100% owned Araguaia Ferronickel Project .

The approved package includes the preliminary licence (Licença Prévia), the construction licence (Licença de Instalaço), and the related fauna and flora licences. These were granted by the Pará State Environmental Agency, Secretaria de Meio Ambiente e Sustentabilidade (‘SEMAS’).

This licence package permits the implementation of a 120km, 230KV power line, and respective substation. The power line will connect Araguaia to the national power grid and will cover the full power requirement for the Project at nameplate capacity.

 

Gear4music 770p  £161m (LON:G4M)

Trading update from the largest UK based online retailer of musical instruments and music equipment. The trading performance in the 2021 calendar year to date continues to be strong. Both UK and European Operations have performed well post Brexit, helping to drive revenue growth and support margins that have exceeded  previous expectations.

The Board now expects EBITDA for the 12 months ending 31 March 2021 will be not less than £18.2m, up from the guidance provided on 14 January 2021 of not less than £16.5m.

 

Head Chef

Derren Nathan

0203 764 2344

[email protected]

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