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15 Apr 21

Strong close to FY21E

Volex’s y/e update points to revenue and adj. operating profit of over $440m and $41m, 9% and 5% ahead of our expectation. Results have benefited from 187% revenue growth in EVs and strong consumer electronics demand. Operating margins grew to 9.3% (FY20: 8.1%) and, absent higher margin acquisitions, we now expect gradual progress towards management’s 10% target, as an appropriate balance is struck between revenue growth and profitability. The drive to be the lowest cost producer of quality product, leveraging the Group’s global platform, is a core objective underpinning growth ambitions. Our updated adj. EPS growth - 14% for FY22E and 9% for FY23E - is cautiously framed in the context of the increased investment now being committed to drive revenue growth. The recent DE-KA acquisition is performing strongly and alongside further accretive moves, Volex should continue to deliver.

Companies: Volex plc

13 Apr 21

Glitz, Glamour and Growth

Sosandar is a fast growing fashion e-tailer, and brand awareness is surging. New product development and range expansion has led to positive reviews, celebrity endorsements and exciting 3P marketplace agreements. Crucially, it is now realising economies of scale and, after growth and margin strengthened in Q4, profitability is around the corner. We forecast an inflection to positive EBITDA within 12 months (FY23E £1.2m, 3.5% margin). This should be well received given previous downgrades. Our fair value estimate of 32p could prove conservative, particularly if scale/profitability build quicker than forecast.

Companies: Sosandar Plc

13 Apr 21

Open Orphan* - Potential Demerger of Non-Core Assets

Open Orphan has announced it is at an advanced stage in planning to spin off non-core clinical development assets through an AIM market listing. The Board believes that this collection of assets and portfolio of IP is better developed in the long term by being separated from the core Open Orphan services businesses, allowing more appropriate focus and funding. In our view, the Group's recent commentary has indicated the intention to spin-off a number of assets and this news confirms progress here although we note recent share price performance likely already reflects some of this positive development.

Companies: Open Orphan Plc

15 Apr 21

CAPD Q1 Trading Update

Capital Limited (LSE: CAPD) this morning provided its Q1 2021 trading update. Q1 revenue is the strongest since the company's inception and is in line with our estimates, as are the other operational metrics.

Companies: Capital Limited

13 Apr 21

LIBERUM: SigmaRoc* - Critical mass

Clean FY20 EPS beat our expectations by 5%, but the real story of these results is that EBITDA came in ahead of our November 2019 forecast. EBITDA rose 64% through acquisitions, but management has extended its record of improving the returns of acquired businesses. We raise our EBITDA forecasts by c.10% across the forecast period to reflect only the recent Belgian transactions. We raise our target price to 92p per share, set at 10x EV/EBITDA. With these acquisitions now in place, the group has reached critical mass with four platforms and strong enough cash flows to self-fund acquisitions and other opportunities.

Companies: SigmaRoc Plc

13 Apr 21

Q1 production results broadly as expected

CAML’s Q1 2021 production rates of copper, zinc and lead were down slightly versus Q1 2020, but we believe output of all three metals remains on course to meet group guidance for 2021. The latter is in-line with production levels over recent years, which if achieved we believe would result in material earnings (and potentially dividend) growth this year given the rally in base metals prices over recent months relative to 2020 average levels. Our 2021 forecasts would put CAML on an EV/EBITDA multiple of under 5x and a compelling dividend yield of over 6%, the latter conservatively assuming a free cash flow pay-out ratio below that used to set the 2020 dividend. Given our estimates assume zinc and lead prices broadly in-line with current pricing levels and a copper price assumption that is some way below current spot, we believe the risks to our 2021 estimates lie to the upside.

Companies: Central Asia Metals Plc

13 Apr 21

LIBERUM: Plus500* - Record number of active customers

Following a positive EGM statement on 16 March, today’s 1Q21 trading update highlights a record quarter for the number of active customers with a further 89k new customers at attractive ARPU and AUAC. This has resulted in revenues more than doubling QoQ to $203m, helped by lower customer trading losses, with EBITDA up six-fold to $121.7m. The performance is a testament to the strength of Plus500’s technology and has been achieved as the group continues to manage high platform volumes and further drives towards its goal to be a multi-asset fintech group from solely being focused on CFDs. We increase our FY21 and FY22 EPS by 7% to reflect the strong performance resulting in the shares trading on just 9.8x CY21 PE. We believe that the benefits of the group’s scalable proprietary technology and marketing algorithms are not reflected in the share price. Hence, we reiterate our BUY rating and increase our TP to 2090p from 1945p.

Companies: Plus500 Ltd.

14 Apr 21

LIBERUM: Futura Medical* - Continued momentum, several catalysts ahead

Futura has had a transformative few months with it securing European approval for MED3000, signing an out-licensing deal for Asia and agreeing a final structure for a small confirmatory US study. The shares have responded, up 261% YTD. However, we believe there are further significant catalysts to come including potential EU and RoW licensing deals, regulatory approval in smaller Asian markets and the start of the all-important US confirmatory study in H2. We expect the shares to further re-rate as management crystallises the value of MED3000 over the coming 6-18 months. Reiterate BUY.

Companies: Futura Medical plc

19 Apr 21

WHI Morning Comment: AFC Energy (AFC) - Expansion of strategic partnership with ABB and £36m fundraise

AFC Energy announced a fundraising of £36m consisting of an oversubscribed placing with institutional shareholders amounting to £31.2m and a £4.8m strategic investment from ABB (£3.25m) and Dutco (£1.50m). The equity capital raise was priced at 64.5p representing a modest discount of approximately 5% relative to the prior day's closing price. The robust support shown by the capital raise suggests, in our opinion, that the strengths of AFC Energy's technology, its commercial positioning and the growth opportunity afforded by each of AFC Energy's addressable markets have been recognised by the institutional market. The expansion of AFC Energy's strategic partnership with ABB, now a shareholder, into the data centre market is potentially transformative. We outline in this note the potential implications of that development, while deferring the implications of that development on our fair value estimate until we have undertaken more analysis. We place our fair value estimate under review for an upgrade.

Companies: AFC Energy plc

14 Apr 21

Growing H1 pipeline supports our FY estimates

Residential for rent developer and manager Watkin Jones has signalled “maintained momentum” during H1 in today’s trading statement, which showed new forward sales and further additions to the development pipeline, highlighting the continuing demand from institutional investors for build-to-rent (BTR) and purpose-built student accommodation (PBSA) assets. Fresh property management sales were resilient, despite disruption in higher education, while the reconfigured residential unit delivered robust sales revenues. We maintain our estimates for FY 2021E and FY2022E.

Companies: Watkin Jones Plc

14 Apr 21

Small Cap Feast

Semper Fortis Esports* recently announced its intention to IPO onto the Access Segment of the Aquis Stock Exchange Growth Market. Semper is a multi-operational Esports organisation focusing on gaming technology solutions, brand enhancement and high growth team infrastructures. The company plans to raise £2.5m to develop their three core areas of establishing an esports team, forming partnerships with brands for sponsorship and B2B consultancy services. The Board are highly experienced in sports and corporate deal making (Keith Harris, former Chairman of The Football League), technology and electronic gaming (Nolan Bushnell, founder of the pioneering company, Atari), esports and game tech (Kevin Soltani and Jassem Osseiran) and as FD Max Deeley. Target Admission Date of 26 April. Darktrace plc. Announcement of Intention to Publish a Registration Document and Potential IPO on the main market of the London Stock Exchange. Darktrace was founded in 2013 with a mission to fundamentally transform the ability of organisations to defend their most critical assets in the face of rising cyber threats. Darktrace is a world-leading provider of AI for the enterprise, with the first at-scale in-the-enterprise deployment of AI in cyber security Timing TBA musicMagpie is a leader in re-commerce in the UK and US in the circular economy of consumer technology (including smartphones, tablets, consoles and personal computers), books and disc media (including CDs, DVDs and video games). Expected 28 April. Offer details TBA Wickes to demerge from Travis Perkins and list on the Main Market. Expected 28 April. Advance Energy to complete an RTO on AIM indirectly acquiring up to 50% of Carnarvon Petroleum Timor which holds a 100 per cent. working interest and is the contractor under the Buffalo PSC, offshore Timor-Leste. Carnarvon Petroleum Timor is a subsidiary of ASX listed company, Carnarvon Petroleum Limited. The net proceeds of the Placing of approximately £20.01m (approximately US$27.51m) will be used to fund the Acquisition. Due 19 April. NFT Investments plc is an investment company that specialises in non-fungible tokens (NFT). Has applied for admission to the Access segment of the AQSE Growth Market. No funds being raised. Due 16 April. Thor Explorations (TSXV:THX) seeking a secondary listing on AIM. The Company is targeting Admission during Q2 21. Segun Lawson, President & CEO, stated: “Thor Explorations has advanced significantly, in both project development and capitalisation since the acquisition of Segilola in 2016. This year, the Company is well positioned to achieve two major milestones with the commencement of gold production at Segilola in Nigeria and a maiden resource at Douta in Senegal, as well as continuing to progress our highly prospective Nigerian exploration portfolio on the Ilesha Schist belt.” PensionBee has confirmed its intention to float on the High Growth Segment of the Main Market of LSE. The online pension provider had approximately 130,000 Active Customers and £1.5bn of assets under administration as at 28 February 2021. The Offer will comprise new Shares raising gross proceeds of approximately £55m and existing Shares to be sold by certain existing small minority shareholders of up to £5m. None of the founders, directors or members of senior management of PensionBee are selling any existing Shares. Expected in April. Imperial X (AQSE:IMPP) to join the Main Market (standard). It is also proposed that on Admission to the Official List, the Company will change its name to Cloudbreak Discovery Plc. With effect from Admission, Imperial X will hold equity positions and royalties in a variety of projects in the natural resources sector across multiple jurisdictions, primarily in the Americas and Africa. The Company is proposing to raise up to £1.5m by way of placing of new Ordinary Shares to support further prospect acquisitions. Current Mkt cap £4.7m Expected April. 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. Due 27 April.

Companies: KIBO ROCK VRCI K3C TOU ADT PCA ATYM IOM MJH

14 Apr 21

LIBERUM: NewRiver* - Breaking the mould

A strategic update from NewRiver shows intent to reshape the business, leaving it well capitalised and fit for the future of physical retail. Management is exploring the divestment of Hawthorn via an IPO, currently c.25% of the group asset base. Successful execution will help reduce LTV to within management’s target range, helping relieve any covenant concerns. Together with further non-core disposals, this will leave NewRiver with capital to transform ‘regen’ assets to create long-term value. Covid has proven NewRiver’s Retail resilience, which comes through again in its operating metrics. The shares now trade on an unadjusted +2yr fwd NAV of 33%, a wider discount than Hammerson, which to us looks wrong given the very different growth outlooks.

Companies: NewRiver REIT plc

13 Apr 21

Record EBITDA achieved for 2020/21 - more to come

The 2020/21 financial year for Totally has been exceptional in that the Company has had to modify the way it provided its support services to the NHS and Clinical Commissioning Groups (CCGs) to accommodate the COVID-19 pandemic in ways that could not have been imagined a year earlier. That it has managed the significant changes to its delivery model both efficiently and successfully is a testament to the Board and staff given that the Group still managed to deliver a significant increase in EBITDA yoy. We have already seen early indications of how its interaction with the NHS is changing as the NHS moves away from traditional formal tendering for contracts to a preferred partnership model and as a valued and proven partner of the NHS we believe Totally is well placed to achieve continued growth as the NHS moves back to some semblance of normality.

Companies: Totally Plc

19 Apr 21

AFC Energy (AFC LN) - Fund raise, supported by partners

AFC has announced a £36m equity issue with £3.3m from ABB, £1.5m from Dutco and £31.2m from institutional investors. It has also announced that its partnership with ABB will develop a new product offering to serve the data centre market. While the extra share count marginally dilutes our existing valuation (from 191p to 184p) we expect this to be more than offset by the profit opportunity in data centres and in the marine/rail markets that are being explored in conjunction with Ricardo. We will quantify these issues in a future report, but we are confident that the addressable markets for AFC are vast and it has a good chance of succeeding in them.

Companies: AFC Energy plc

19 Apr 21

Small Cap Feast

Semper Fortis Esports* recently announced its intention to IPO onto the Access Segment of the Aquis Stock Exchange Growth Market. Semper is a multi-operational Esports organisation focusing on gaming technology solutions, brand enhancement and high growth team infrastructures. The company plans to raise £2.5m to develop their three core areas of establishing an esports team, forming partnerships with brands for sponsorship and B2B consultancy services. The Board are highly experienced in sports and corporate deal making (Keith Harris, former Chairman of The Football League), technology and electronic gaming (Nolan Bushnell, founder of the pioneering company, Atari), esports and game tech (Kevin Soltani and Jassem Osseiran) and as FD Max Deeley. Target Admission Date of 26 April. Dispersion Holdings PLC, an investor in the high growth FinTech sector within the UK, the USA and Canada, has announced its intention to IPO on the Access Segment of the Aquis Stock Exchange Growth Market. The Board intends to deploy the majority of the Company’s cash resources in the acquisition of minority interests in a number of different, yet to be identified, companies in the broad FinTech sector, and to apply expertise to the business operations and strategic plans of these companies. Target Admission Date of 30 April. Darktrace plc. Intends to float on the main market of the London Stock Exchange (premium). Darktrace was founded in 2013 with a mission to fundamentally transform the ability of organisations to defend their most critical assets in the face of rising cyber threats. Darktrace is a world-leading provider of AI for the enterprise, with the first at-scale in-the-enterprise deployment of AI in cyber security Due early May, musicMagpie is a leader in re-commerce in the UK and US in the circular economy of consumer technology (including smartphones, tablets, consoles and personal computers), books and disc media (including CDs, DVDs and video games). Expected 28 April. Offer details TBA Wickes to demerge from Travis Perkins and list on the Main Market. Expected 28 April. Thor Explorations (TSXV:THX) seeking a secondary listing on AIM. The Company is targeting Admission during Q2 21. Segun Lawson, President & CEO, stated: “Thor Explorations has advanced significantly, in both project development and capitalisation since the acquisition of Segilola in 2016. This year, the Company is well positioned to achieve two major milestones with the commencement of gold production at Segilola in Nigeria and a maiden resource at Douta in Senegal, as well as continuing to progress our highly prospective Nigerian exploration portfolio on the Ilesha Schist belt.” PensionBee has confirmed its intention to float on the High Growth Segment of the Main Market of LSE. The online pension provider had approximately 130,000 Active Customers and £1.5bn of assets under administration as at 28 February 2021. The Offer will comprise new Shares raising gross proceeds of approximately £55m and existing Shares to be sold by certain existing small minority shareholders of up to £5m. None of the founders, directors or members of senior management of PensionBee are selling any existing Shares. Expected in April. Imperial X (AQSE:IMPP) to join the Main Market (standard). It is also proposed that on Admission to the Official List, the Company will change its name to Cloudbreak Discovery Plc. With effect from Admission, Imperial X will hold equity positions and royalties in a variety of projects in the natural resources sector across multiple jurisdictions, primarily in the Americas and Africa. The Company is proposing to raise up to £1.5m by way of placing of new Ordinary Shares to support further prospect acquisitions. Current Mkt cap £4.7m Expected April. 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. Due 27 April.

Companies: KIBO MTW GWI MTR DUKE ITM GDR MSMN CMCL PTRO

19 Apr 21

INITIATION OF COVERAGE - Sound Energy

INITIATION OF COVERAGE - Transforming Morocco's energy mix

Companies: Sound Energy plc

19 Apr 21

In depth with Shishir Poddar of Tirupati Graphite, Part Two

19 Apr 21

In depth with Shishir Poddar of Tirupati Graphite, Part One

19 Apr 21

Kendrion - Energised by electrification

Kendrion is a global player in high-quality electromagnetic systems that optimise safety, performance and comfort in automotive and industrial applications. The coronavirus pandemic creates a short-term uncertain market environment but the underlying demand for Kendrion’s products is strong and it will benefit from multiple long-term disruptive trends, such as autonomous driving, electrification, emission reduction and industrial automation. Its valuation shows a discount to peers, which should gradually vanish when company targets are met.

Companies: Kendrion N.V.

19 Apr 21

The British Design Fund supports early stage businesses with investment to accelerate growth

19 Apr 21

Kazia Therapeutics - New asset to target tumor lymphangiogenesis

Kazia announced that it is expanding its pipeline to include EVT801, a novel small molecule inhibitor of VEGFR3. The drug is being licensed from Evotec for €1m upfront, €308m in milestones and tiered single-digit royalties. EVT801 was developed as part of a collaboration between Evotec and Sanofi. Kazia will be responsible for development, but will collaborate with and have access to Evotec resources to support development. The product is currently in preclinical development, but Kazia believes it can launch a Phase I study before the end of CY21.

Companies: Kazia Therapeutics Ltd

19 Apr 21

Encouraging Drilling Update at Luika and West Kenya

Shanta Gold (AIM: SHG), the East Africa-focused gold producer, has today announced an exploration drilling and resource update. The results are from 3,590m of drilling conducted in February and March 2021 and is new information since the last exploration update released on 16th March 2021. They relate to Luika which is part of the NLGM operations in Tanzania and the high-grade development project in WKP. Both are positive.

Companies: Shanta Gold Limited

19 Apr 21

Panoro Energy ASA (OSE: PEN): Adding to the drilling programme in Gabon

• Drilling of the Hibiscus extension appraisal well has started. This is a very material well that will test the possibility that the Hibiscus, South Hibiscus and Mupale are part of a single structure. In a success case, the recoverable resources at Hibiscus could be 3x larger than what has been proved up so far (155 mmbbl vs 46 mmbbl – Panoro WI: 17%) and double Panoro’s WI reserves in Gabon. • The well will take 30 days to drill. • The potential additional reserves at Hibiscus would require additional wells and possibly a converted jackup to fully develop the potential in the area. • Panoro has also added one new exploration well in the 2021 Gabonese programme that we did not carry in our valuation. The well will target the Hibiscus North prospect with 10-40 mmbbl unrisked gross resources (we assume 28 mmbbl). The well is expected to cost US$18 mm (gross). • We are increasing our target price for Panoro from NOK34 per share to NOK35 per share as we incorporate the Hibiscus North prospect in our valuation. High impact drilling in 2021 We estimate the overall unrisked value of the FY21 drilling programme at ~NOK24 per share. The key components of this programme are the Hibiscus extension well (~NOK12 per share), the Hibiscus North well (~NOK3 per share) and the Gazania-1 well in South Africa (~NOK8 per share). Valuation The shares continue to trade below our new Core NAV of ~NOK25 per share. Our new RENAV is ~65% above the share price.

Companies: PANORO ENERGY (PEN:STO)Panoro Energy ASA (PEN:OSL)

19 Apr 21

Sana Life Science: Offering value-added services across the supply chain for cannabis industry

19 Apr 21

Mode Global Holdings' plans to tap into 'biggest investor market in the world' with OTCQB listing

19 Apr 21

Small Cap Feast

Semper Fortis Esports* recently announced its intention to IPO onto the Access Segment of the Aquis Stock Exchange Growth Market. Semper is a multi-operational Esports organisation focusing on gaming technology solutions, brand enhancement and high growth team infrastructures. The company plans to raise £2.5m to develop their three core areas of establishing an esports team, forming partnerships with brands for sponsorship and B2B consultancy services. The Board are highly experienced in sports and corporate deal making (Keith Harris, former Chairman of The Football League), technology and electronic gaming (Nolan Bushnell, founder of the pioneering company, Atari), esports and game tech (Kevin Soltani and Jassem Osseiran) and as FD Max Deeley. Target Admission Date of 26 April. Dispersion Holdings PLC, an investor in the high growth FinTech sector within the UK, the USA and Canada, has announced its intention to IPO on the Access Segment of the Aquis Stock Exchange Growth Market. The Board intends to deploy the majority of the Company’s cash resources in the acquisition of minority interests in a number of different, yet to be identified, companies in the broad FinTech sector, and to apply expertise to the business operations and strategic plans of these companies. Target Admission Date of 30 April. Darktrace plc. Intends to float on the main market of the London Stock Exchange (premium). Darktrace was founded in 2013 with a mission to fundamentally transform the ability of organisations to defend their most critical assets in the face of rising cyber threats. Darktrace is a world-leading provider of AI for the enterprise, with the first at-scale in-the-enterprise deployment of AI in cyber security Due early May, musicMagpie is a leader in re-commerce in the UK and US in the circular economy of consumer technology (including smartphones, tablets, consoles and personal computers), books and disc media (including CDs, DVDs and video games). Expected 28 April. Offer details TBA Wickes to demerge from Travis Perkins and list on the Main Market. Expected 28 April. Thor Explorations (TSXV:THX) seeking a secondary listing on AIM. The Company is targeting Admission during Q2 21. Segun Lawson, President & CEO, stated: “Thor Explorations has advanced significantly, in both project development and capitalisation since the acquisition of Segilola in 2016. This year, the Company is well positioned to achieve two major milestones with the commencement of gold production at Segilola in Nigeria and a maiden resource at Douta in Senegal, as well as continuing to progress our highly prospective Nigerian exploration portfolio on the Ilesha Schist belt.” PensionBee has confirmed its intention to float on the High Growth Segment of the Main Market of LSE. The online pension provider had approximately 130,000 Active Customers and £1.5bn of assets under administration as at 28 February 2021. The Offer will comprise new Shares raising gross proceeds of approximately £55m and existing Shares to be sold by certain existing small minority shareholders of up to £5m. None of the founders, directors or members of senior management of PensionBee are selling any existing Shares. Expected in April. Imperial X (AQSE:IMPP) to join the Main Market (standard). It is also proposed that on Admission to the Official List, the Company will change its name to Cloudbreak Discovery Plc. With effect from Admission, Imperial X will hold equity positions and royalties in a variety of projects in the natural resources sector across multiple jurisdictions, primarily in the Americas and Africa. The Company is proposing to raise up to £1.5m by way of placing of new Ordinary Shares to support further prospect acquisitions. Current Mkt cap £4.7m Expected April. 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. Due 27 April.

Companies: KIBO MTW GWI MTR DUKE ITM GDR MSMN CMCL PTRO