Gfinity plc* (GFIN.L, 2.325p/£11.1m) | ECSC Group plc* (ECSC.L, 115p/£10.5m) | Mi-Pay Group plc* (MPAY.L, 1.15p/£0.5m) | MTI Wireless Edge Ltd* (MWE.L, 39.5p/£34.7m)
Companies: GFIN ECSC MPAY MWE
Mi-Pay Group plc* (MPAY.L, 1.65p/£0.8m) Proposed disposal and cancellation of trading (18.12.19) | Audioboom plc* (BOOM.L, 207.5p/£29.1m) Appointment: CEO appointment formalised (20.12.19)
Companies: Mi-Pay Group (MPAY:LON)Audioboom Group PLC (BOOM:LON)
MTI Wireless Edge plc* (MWE.L, 35p/£30.7m) | ECSC plc* (ECSC.L, 92.5p/£8.4m) | Brave Bison plc* (BBSN.L, 1.42p/£8.7m) | Mi-Pay plc* (MPAY.L, 6.25p/£2.9m) |
Companies: MWE ECSC BBSN MPAY
Audioboom plc* (BOOM.L, 177p/£24.9m) CEO resignation (30.09.19) | Mi-Pay Group plc* (MPAY.L, 7.0p/£3.2m) Interims: Breakeven in H1; outlook remains mixed (25.09.19) | Tern plc* (TERN.L, 8.4p/£21.3m) Interims: Growth at portfolio companies (25.09.19) | Starcom plc* (STAR.L, 1.6p/£5.5m) Litigation update (30.09.19)
Companies: BOOM MPAY TERN STAR
Interims from Mi-Pay Group, an established provider of digital payment and payment fraud managed services to Tier 1 mobile operators and digital content vendors, saw 7% revenue growth, a small improvement in gross margin and good cost control. As a result, the business was essentially EBITDA break-even in H1. Fully management payments grew 15% to £58.1m and a 64% increase in its direct managed fraud service to £29.2m. As this latter service has matured, fraud levels have reduced materially improving gross margins. Mi-Pay continues to have sector-leading levels of payment success and fraud management and indemnifies its customers. As a result, it can charge higher rates than traditional payment solutions. Extensions have been signed with two of its largest (43% of FY18 revenue) but it is losing its second largest client (13%). This, coupled with the uncertainty around the new PSD2 regulations and general economic climate, means H2 is likely to be similar to H1 but we leave our forecast under review at this stage.
Companies: Mi-Pay Group
MTI Wireless Edge Ltd* (MWE.L, 22.2p/£19.4m) | Blackbird plc* (BIRD.L, 10.8p/£31.2m) | Mi-Pay Group plc* (MPAY.L, 8p/£3.7m) | Starcom plc* (STAR.L, 1.25p/£4.3m) | Character Group (The) plc* (CCT.L, 425p/£90.8m) |
Companies: MWE BIRD MPAY STAR CCT
Mi-Pay Group plc* (MPAY.L, 12.25p/£5.6m) Finals: Move into H2 profit; renewals provide visibility (24.04.19) | Mirada plc* (MIRA.L, 0.825p/£7.3m) Pre-close: substantial FY19 growth and positive outlook (29.04.19)
Companies: Mi-Pay Group (MPAY:LON)Mirada PLC (MIRA:LON)
Finals from Mi-Pay Group, an established provider of digital payment and payment fraud managed service to Tier 1 mobile operators and digital content vendors, were in line with forecasts and January’s trading update. The 9.4% increase in revenue to £3.3m included a maiden £0.3m contribution from its Fraud Services business and the combination of increased gross profit (+£0.1m) and lower operating costs (down £0.3m) resulted in the operating loss reducing £0.4m to £0.2m and the company was profitable in H2. Mi-Pay processed more than £100m in fully managed payment transactions for the first time and indemnified £44m of payments against fraud - this is opening a new revenue stream. Mi-Pay was successfully integrated into 3 Ireland’s new infrastructure during the year and the acquired O2 customer base was transferred onto MiPay. Since period end, Mi-Pay has signed extensions with clients that represented 43% of FY18 revenue providing forward revenue visibility. We maintain our fair value of 17.8p/share, a 51% upside.
ECSC Group plc* (ECSC.L, 92.5p/£8.4m) Contract wins: Further Managed Service success (16.04.19) | Mi-Pay Group plc* (MPAY.L, 11.75p/£5.4m) Contract extension: Largest customer extended (18.04.19) | Starcom plc* (STAR.L, 1.275p/£3.7m) Placing (18.04.19) | Mobile Tornado Group plc* (MBT.L, 5.25p/£18.3m) Finals: Success of new Capex model (17.04.19) | CAP-XX Ltd* (CPX.L, 4.35p/£14.1m) Trading update: Progress on numerous fronts (16.04.19)
Companies: ECSC MPAY STAR MBT CPX
Audioboom plc* (BOOM.L, 1.675p/£19.7m) Additional funding to secure new and existing podcast content (25.02.19) | Mobile Tornado plc* (MBT.L, 3.3p/£11.5m) FY pre-close: In line performance; commercial & technological progress (20.02.19) | Mi-Pay Group plc* (MPAY.L, 10p/£4.6m) Contract extension and notice of FY results (21.02.19) | Tern plc* (TERN.L, 13p/£30.8m) Second tranche of convertible loan to Device Authority (20.02.19)
Companies: MBT MPAY TERN BOOM
Mi-Pay Group plc* (MPAY.L, 9.7p/£4.4m) Pre-close FY18 trading update: Shift to digital (30.01.19) | Gfinity plc* (GFIN.L, 5.7p/£20.7m) Contract win: 2019 Call of Duty World League event (04.02.19) | Newmark Security plc* (NWT.L, 0.9p/£4.2m) Interims: Positive performance in Electronic Division (31.01.19) | Starcom* (STAR.L, 1.5p/£4.4m) Trading update and receipt of funds (31.01.19)
Companies: MPAY GFIN NWT STAR
Mi-Pay is an established provider of digital payment and payment fraud managed services to Tier 1 mobile operators and digital content vendors. It offers incremental value-added services including the management of multiple connection methods, the delivery of the payments experience and the security of client data. Mi-Pay has sector-leading levels of payment success and fraud identification and management and indemnifies its customers against fraud. It charges higher fees compared with traditional payment companies as its deeper solution offering is layered on top of core payment solutions. Today’s in-line pre-close demonstrates further revenue growth and a move into EBITDA profit in H2. We are trimming our FY19 revenue growth assumptions (by c. 10%) given the current uncertain macro outlook but still expect Mi-Pay to achieve stronger growth rates going forward as the platform and client base are now established. The current share price fails to reflect the strength of the existing offering or the growth potential as e-commerce and digital channels become core to customer engagement. We set a fair value of 17.8p/share, an 84% upside.
Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m. Circassia Pharma (CIR.L) - specialty pharmaceutical company focused on respiratory disease transferring from the Main Market. No funds being raised. Due 4 Feb. Mkt Cap c.£185m. Greenfields Petroleum (TSX-V:GNF) production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected late January 2019. Chaarat Gold Holdings—RTO, the Company intends to acquire Kapan Mining and Processing CJSC, which owns the Shahumyan medium-sized polymetallic mine in Kapan in the Republic of Armenia. No raise, market cap of £110.1m, due early Feb
Companies: JHD RNWH MPAY ZNWD STM R4E ING TRMR RWI KDNC
Mobile Tornado Group plc* (MBT.L, 4.40p/£15.4m) Interims: Gathering sales momentum (27.09.18) | Mi-Pay Group plc* (MPAY.L, 10.0p/£4.6m) Interims - New revenue stream added (25.09.18) | CAP-XX plc* (CPX.L, 10.85p/£32.6m) Spire Health Tags stocked at Apple stores (25.09.18) | Mirada plc* (MIRA.L, 0.725p/£2.1m) Prelims: Accelerated roll out by izzi and imminent ATNi deployment (28.09.18) | Osirium Technologies plc* (OSI.L, 145p/£19.6m) Interims: Good financial and operational progress (25.09.18)
Companies: MBT MPAY CPX OSI MIRA
Mi-Pay, a provider of mobile payment and payment fraud management services to Tier 1 Mobile Network Operators (MNOs) and digital content providers, has reported interims with a further 11% growth in the total value of payment transactions to £50.2m as well as direct fraud management of an additional £17.8m - a new product stream that has considerable revenue potential. Mi-Pay has sector-leading payment success rates and fraud levels, indemnifies its customers against fraud and hence can charge 3x to 5x the rates compared with traditional payment companies. We expect Mi-Pay to break-even in H2 before moving into sustained profit and is sufficiently funded. The value of Mi-Pay’s existing offering and the growth potential is not reflected in the current price.
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Final results from AFC are very close to our projections, with net cash slightly ahead of our expectations. There is no new news in this announcement, and we marginally edge up the losses in 2021E and 2022E due to increased activity levels as the Group looks to capitalise on the vast opportunities available. We remain excited about the long-term investment thesis we set out recently and maintain our target valuation of 191.5p per share. As we have previously highlighted, our valuation excludes what we consider to be significant growth opportunities highlighted in the note.
Companies: AFC Energy plc
AFC Energy's Final Results for the year ended 31 October 2020 indicate the company is in a position of strength and at inflection point of sales growth. Results were better than we had forecast with a reported loss of £4.2M (WHIe £4.5M) and cash flow from operations of £4.3M (WHIe £4.2M). Most importantly, the company ended the period with a stronger cash balance than we had expected of £31.6M (WHIe £29.9M) reflecting the capital light strategy the company is applying. The year-end confirmed order book of £1.1M indicates that AFC Energy, after decades of investment, is past the inflection point that is translating its globally unique technology into a highly-compelling, long-term commercial growth opportunity.
tinyBuild— a leading video games publisher and developer with global operations. tinyBuild's strategic focus is in creating longlasting 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.
Companies: YEW IKA UPR WYN ENW BWNG TRAK DBOX HZM G4M
Results were well trailed in January’s trading update. In the event, adjusted PBT emerged marginally ahead of FY2020, despite material impacts from Covid-19 and a depressed oil price. Although biomass incinerators were closed for much of the second quarter, the Group grew sales from residues from Energy from Waste (‘EfW’) by 15% and signed a further 6 new contracts, maintaining its high win rate. The outlook for EfW remains very strong with c.40 plants in planning or construction that provides the opportunity for Augean to double its current EfW revenues and profits of c.£20m and c.£14m over the longer term. Group operating margins are forecast to reach 25% and cash generation is strong, supporting a 3.5% yield on a resumed forecast dividend. EV/EBITDA multiples for FY2021E, FY2022E and FY2023E are 6.2x, 5.3x and 4.3x, which are well below established industrial sector metrics.
Companies: Augean PLC
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$64.3 million, US$81.9 million and US$102.0 million 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$50 million 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 £35.4 million net sales and £3.6 million Adjusted EBITDA in the nine months to 31 December 2020, with sales up 159% from £13.7 million 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 longlasting 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. 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. 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 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.
Companies: LND GDR GAMA SOLI SHED RLE CRU WRES SBI MNO
UK railway privatisation, which was launched in the mid-1990s, has finally turned full circle: the Department of Transport has recently confirmed that its controversial railway franchise system will be scrapped. In this month's feature article, Nigel Hawkins, the Infrastructure analyst at Hardman & Co, examines the 25-year history of railway privatisation and chronicles its ups and its downs. The successes of railway privatisation, such as new rolling stock, are addressed, along with the many shortcomings, which included minimal vertical integration. With the winding up of the franchise system, the UK railway sector is effectively reverting to its former status as a nationalised industry, a shift started with the renationalisation of the collapsed Railtrack – later re-badged as Network Rail – in 2001.
Companies: ARBB BBGI CLIG DNL FLTA ICGT OCI PCA PIN PXC RECI SCE TRX SHED VTA YEW
Bacanora Lithium (BNC LN) has fulfilled its funding requirements for the Sonora project in Mexico and is on its way to being a major lithium producer. With equity raises totalling US$96m in the form of a placing after which BCN’s strategic partner opted to exercise its pre-emptive rights and then increase its stake to 28.8%. The support from investors and Ganfeng Lithium, one of the world’s top lithium producers, is a major validation of the project and confirms our long-held view that Sonora would be built.
Companies: Bacanora Lithium Plc
SMS has announced new contract wins with two of the fastest growing independent energy suppliers in the UK to provide meter installation and Meter Asset Provider (MAP) services. Minimum contracted order commitments will see the SMS contracted pipeline increase to 2.5m (December 2020: 2.0m), indicating an addition of at least 500k smart meters. SMS has also announced the acquisition of a portfolio of 15,000 I&C electricity meters and 20,000 meter point data collection contracts, adding £3.1m ILARR for a cash consideration of £8.25m.
Companies: Smart Metering Systems PLC
DX has reported a strong H1, building on the return to profit last year. High service levels and improved operational efficiency have enabled continued volume growth at DX Freight, which has supported H1 group sales growth of 7.4% and an increase in adjusted operating profits from £0.4m to £5.9m − all achieved despite Covid. We have left our FY 2021 EPS unchanged (maintaining some caution on the impact of the lockdown) but upgrade FY 2022 by 11% (which assumes the share price exceeds 40p and consequently maximum dilution from option schemes). With the £10m capital investment programme providing support for continued strong long-term growth, the June 2023 PER of 12.4x and free cash flow yield of 7.4% offer significant share price upside (our new target is 42p).
Companies: DX (Group) Plc
XP Power reacted quickly to pandemic-related disruption early in 2020, so well positioned to benefit from a sustained uptick in orders as COVID-19 generated demand for critical care equipment and semiconductors. The company reported a record year for revenue and earnings while reducing net debt; the dividend was reinstated from Q220 as visibility improved. Despite expecting demand to normalise, XP still expects growth in underlying revenues in FY21.
Companies: XP Power Ltd.
Xeros has raised £8m (gross) to productise the extremely promising XFiltra product and to assist with some pandemic-induced licence slippage.
Companies: Xeros Technology Group (XSG:LON)Xeros Technology Group Plc (XSG:LON)
Affected by volumes which were lower than their long-term average and weak commodity prices for the upstream division, the group published a disappointing set of FY20 figures. Although the group’s efforts on its cost structure are notable, we maintain a cautious view on inventory due to the economic uncertainty that could erode cash generation (due to an increase in working capital requirements, among other things).
Companies: Centrica plc
Today's news & views, plus announcements from RIO, TW, CRDA, TPK, PHP, MGGT, SHI, WHR
Companies: PHP RIO SHI TPK
Further media reports that Dr Martens, the British Boot brand is planning an IPO on the LSE. It is currently owned by PE group, Permira who is expected to sell down its stake at the IPO. March 2020 YE the group had revenues of £672m and EBITDA of £184m. Deal size TBC. Upon Admission to AIM, Nightcap will acquire The London Cocktail Club Limited (the "London Cocktail Club"), which is an award winning independent operator of ten individually themed cocktail bars in nine London locations and one location in Bristol. Offer TBC Due mid Jan. HSS Hire Group, HSS.L transfer from Main to Aim. Mkt Cap c. £70m. Recently raised £52.6m. 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. 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.
Companies: SAG DXRX CALL BBSN ASTO DNL FIPP IIG GROW TCN
Accrol Group Holdings plc (ACRL LN) Bango plc (BGO LN) Brickability Group plc (BRCK LN) Norcros plc (NXR LN) OnTheMarket (OTMP LN) Ricardo (RCDO LN) UP Global Sourcing Holdings (UPGS LN) Watkin Jones (WJG LN) Xpediator (XPD LN) ZOO Digital (ZOO LN)
Companies: ACRL BGO BRCK NXR OTMP RCDO UPGS WJG XPD ZOO
