04 March 2021
*A corporate client of Hybridan LLP
Dish of the day
Umuthi Healthcare (LON:UHS), the technology led healthcare business focused on the distribution of pharmaceuticals and the provision of medical facilities in remote areas has joined the main market (standard). No funds raised. Umuthi onboarded 2,000 clients during the previous financial year which represents a single digit fraction of the immediately available customers to its MedTech platform and have booked revenues as a result of these sales, ensuring tangible proof of concept. The bespoke platform enables the Group to pursue joint ventures with other companies and groups for providing access to the distribution network. Umuthi is in discussions to distribute COVID-19 vaccines and related products via its distribution and warehousing capabilities.
Off the menu
No Leavers Today
What’s cooking in the IPO kitchen?
Proposed move to AIM from the main market (standard) by Emmerson (EML.L) to provide Emmerson with access to a market and environment which is more suited, in the Board’s view, to the Company’s current size and strategy ahead of pivotal period for the Company with the commencement of mine construction at the Khemisset Potash Project expected by end of 2021. Follows recent award of Mining Licence granting Emmerson exclusive right to develop and mine the potash deposit and £5.5m raise to fund ongoing project development work. Subject to EGM on 21st March.
Rogue Baron plc have announced its application for admission to the AQSE growth market. Rogue Baron owns five subsidiaries, namely: Shinju Spirits, Inc., Shinju Whiskey LLC, Mazeray Corporation, STI Signature Spirits Group LLC and Legacy Retail Group LLC. The Company’s goal is to build each of its brands that makes them a buyout target. Deal size TBC an expected admission date 12th March 2021.
Global review platform, Trustpilot has announced its intention to float on the premium list of the LSE. Trustpilot provides an open platform, which creates a place where businesses and consumers can gain actionable insights and collaborate. Consumers are able to share feedback, at any time, about any business with a website and review feedback left by other consumers. Total revenues were US$64.3m, US$81.9m and US$102.0m for the years ended 31 December 2018, 2019 and 2020, respectively. The Offer would comprise new Shares to be issued by the Company (raising gross proceeds of approximately US$50m to support Trustpilot’s growth plans and repay indebtedness) and an offer of existing Shares to be sold by certain existing shareholders, directors and employees. Timing TBC.
In The Style, the e-commerce womenswear fashion brand with an influencer collaboration model, announces their intention to float on AIM. In The Style is a pure-play e-commerce fashion brand with a l customer base of women predominantly aged between 16 and 35. Founded in 2013, the group has delivered £35.4m net sales and £3.6m Adjusted EBITDA in the nine months to 31 December 2020, with sales up 159% from £13.7m for the nine months to 31 December 2019. Admission is expected to take place on or around 17 March 2021. Deal size TBC.
Media reports video game firm, Catalis is mulling a London IPO, just over a year after being bought by a private equity firm. Catalis’s accounts are reportedly expected to show revenues increasing to £60m in 2020, up from £43m, with adjusted earnings of £15m. Deal details and timing TBC.
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.
, 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.
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.
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.
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, is expecting to release its IPO plans on 8th March. The company raised more than $180m in January with a valuation of more than $7bn.
Crossword Cybersecurity* 303p £17.5m ()
The technology commercialisation company focused on cyber security and risk, today announced that, in addition to the Internet of Things security certification as announced on 25 November 2020, The IASME Consortium Limited , UK Government Cyber Essentials Partner, has selected Rizikon Assurance as the core platform to support a new Counter Fraud Fundamentals certification which has received government funding.
IASME, has a proven record for delivering recognised certifications and is scaling its portfolio to include a new Counter Fraud Fundamentals Certification (“CFF”). The CFF scheme certifies companies against controls developed by a team of counter fraud experts and covers the basic counter fraud controls for organisations of all sizes. They include oversight and control, protection, and detection, response, and recovery, data management and analytics of businesses. The process of certification will help prepare and protect a wide range of companies, from the up-and-coming challenger banks, to innovative fintech companies, insurance and retail sector organisations.
The CFF certification will provide customers, and those within an organisation’s supply chain, with the assurance that the most important counter fraud measures are in place, protecting their money and information. IASME has identified Rizikon Assurance, Crossword’s secure third-party assurance platform, as the solution to deliver the new CFF certification at scale, supporting IASME’s certification bodies and prospective certified customers alike.
Physiomics* 6.75p £6.57m ()
The oncology consultancy using mathematical models and its Virtual Tumour™ technology to support the development of cancer treatment regimens and personalised medicine solutions, announced that the Company’s CEO, Jim Millen, will provide a live presentation relating to its interim results for the six-month period ended 31 December 2020, via the Investor Meet Company platform, on 11 Mar 2021, at 11:00am GMT.
The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event, via the Investor Meet Company dashboard, up until 9:00am the day before the meeting or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and register their interest in , using the following link:
Franchise Brands 106.5p £102m ()
The multi-brand franchise business , announced its audited results for the year ended 31 December 2020. Revenue increased by 12% to £49.3m ( 2019 : £44.0m) including the first full year contribution from Willow Pumps.
· Adjusted EBITDA increased by 28% to £6.6m ( 2019 : £5.2m).
· B2B Franchisor adjusted EBITDA increased by 17%, despite a system sales fall of 2% year-on-year, due to sales mix and cost savings.
· Net cash of £4.9m at 31 December 2020 (2019: Net debt £11.1m).
· Final dividend of 0.80p per share proposed (2019: 0.65p per share), giving a 16% increase in the total dividend for the year to 1.1p per share (2017: 0.95p per share), 4.0 times covered by adjusted profit after tax (2019: 4.6x).
· Strategic objective to expand organically and by acquisition with the target of achieving run-rate revenues of £100m and adjusted EBITDA of £15m by the end of 2023.
· More ambitious three-year digital transformation programme launched targeted at enhancing run-rate EBITDA.
· Trading has started strongly in 2021, with resilient sales in the B2B division and robust recruitment in the B2C division.
· Strong balance sheet, with £20m of cash and available undrawn facilities.
Morses Club 75.3p £99.8m ()
The established provider of non-standard financial services, provides a trading update for the 52-week period to 27 February 2021 .
The Group performed resiliently and profitably during a challenging year, where our primary focus was on supporting our customers and protecting the wellbeing of our teams and agents. Morses Club responded to the profound impact that the pandemic and ensuing market conditions have had on the Group by accelerating our existing digital strategy and taking advantage of the opportunity to expedite the tech-enabled transformation of the business.
Subject to audit review, expects profit before tax for FY21 will be ahead of current market expectations. Morses Club intends to pay a dividend for FY21, demonstrating its confidence in the Group’s prospects.
Market expectations are based on the following Adjusted Profit Before Tax (Adjusted PBT) forecasts for FY21: £2.8m (Peel Hunt – Dec 20), £2.7m (Shore Capital – Dec 20) and £4.3m (Goodbody – Dec 20).
AB Dynamics 1950p £440m ()
The designer, manufacturer and supplier of advanced testing systems and measurement products to the global automotive market, after thorough due diligence, has completed the acquisition of Vadotech Pte Ltd and Zynit Pte Ltd (collectively Vadotech Group) for total cash consideration of up to EUR26.0m.
Founded in 1997 and with 140 employees, the Vadotech Group is a leading supplier of testing services in the Asia Pacific region, headquartered in Singapore with key operations in China, Germany and Japan. Vadotech Group provides comprehensive automotive testing services including evaluations of ADAS systems, infotainment, connectivity, electric vehicle performance and charging and other associated functions.
The Acquisition has been completed on a cash free, debt free basis for an initial cash consideration of EUR17.0m, funded from the Company’s existing cash resources. Two further conditional cash payments of up to EUR3.0m and EUR6.0m are subject to certain performance criteria. in the year ended 31 December 2020 Vadotech Group generated sales revenue of EUR14.2m (2019: EUR14.5m), earnings before interest, tax, depreciation and amortisation of EUR4.0m (2019: EUR4.7m) and adjusted operating profit of EUR3.7m (2019: EUR4.2m).
Intelligent Ultrasound 14.5p £39.1m (LON:IUG)
The ultrasound artificial intelligence (AI) software and simulation company, announces that they have recently installed their 1000th ultrasound simulation system, a BodyWorks Eve PoCUS and Covid-19 training simulator, into one of the leading medical institutions in North America. The installation, at the Clinical Skills Education and Assessment Center of the Ohio State University College of Medicine will allow them to expand their education reach beyond echocardiography and into point of care ultrasound and reduce their reliance on live models.
Bodyworks™ Eve is the Company’s ultra-realistic female patient simulator designed for interactive Point of Care Ultrasound (PoCUS) scenario training, as well as Covid-19 training for frontline clinicians. The addition of the Bodyworks™ Eve simulator to OSUCM’s existing HeartWorks™ simulation system will allow the medical school to expand their existing ultrasound training for medical students to include full chest, abdominal, pelvic, and early OB (obstetric) critical care.
Angle 79.5p £171.3m ()
The liquid biopsy company, announces that, following substantive review of ANGLE’s FDA submission requesting De Novo clearance of the Parsortix® PC1 system, FDA has provided a written response in the form of an Additional Information Request (AIR). Receipt of an AIR was expected and is in line with typical De Novo clearance processes. ANGLE is confident of being able to provide a full response to all the information requests raised.
K3 Capital Group 290p £199m ()
The multi-disciplinary professional services firm providing advisory services to SMEs, updated on trading . Following a robust financial and operational performance in H1, the Group has had a strong start to H2, trading ahead of expectations. Accordingly, K3 now anticipates revenue for the year ended 31 May 2021 to be significantly ahead of consensus market expectations, with Adjusted EBITDA of no less than £12m.
Kooth 280.5 £92.7m (LON:KOO)
The provider of digital mental health services, announces that it has appointed James Murray as its new Director of Kooth Work. James has deep expertise in mental health, most recently working with Public Health England and advising on an Office For Students project aimed at creating a step-change in mental health outcomes. He has also held senior roles in growing technology businesses such as Splunk, Autonomy, and Interwoven.
MediaZest* 0.085p £1.19m ()
The creative audio-visual company, announced the consolidated audited results for the eighteen months ended 30 September 2020 for MediaZest .
· Revenue for the period was £3,068,000 (2019: £3,303,000).
· Gross profit was £1,524,000 (2019: £1,675,000).
· Gross margin was 50% (2019: 51%).
· Administrative expenses excluding depreciation and amortisation were £1,735,000 (2019: £1,546,000).
· Depreciation and amortisation costs were £124,000 (2019: £40,000). This increase is partly due to the impact of IFRS16 which was £71,000.
· Cash in hand at 30 September 2020 was £91,000 (2019: £24,000).
At this time, it remains difficult to fully assess the extent to which the Pandemic will affect the Group’s forthcoming trading and financial performance as the situation continues to evolve. The second national lockdown in November 2020 and closure of many retail businesses had an impact, however new project pitches have increased in number since the start of 2021, despite the third national lockdown coming into effect. Conversion rates on the pitches into live projects will be crucial to financial performance for the coming year that has begun positively so far.
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 the UK retained version of section B of annex I to Directive 2014/65/EU (“MIFID II Directive”); or (ii) investment research as defined in the UK retained version of 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.