Hybridan Small Cap Feast 18/05/22

Dish of the day Joiners: Lekoil, the oil and gas exploration and production Company with a focus on Nigeria and West Africa has joined the Access Segment of the AQSE Growth Market. The Company was previously listed on AIM (LEK.L), however, Ordinary Shares have been suspended from trading on AIM since October 2021. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Psych Capital PLC, intends to list on the AQSE Growth Market. Psych operates the Psych Platform (a business-to-business ne

PPHE Hotel Group - Checking back in

PPHE has accompanied news of continued strong leisure-based recovery with an EPRA NAV per share of £20.85 at June 2021, almost unchanged in H121 despite COVID-19 restrictions, highlighting the company’s resilience from a property perspective. Encouragingly, the recent joint venture on prime London assets (Riverbank and art’otel hoxton) not only endorsed this valuation (44% premium to current share price), but also released £114m for future growth to management with an impressive development reco

PPHE Hotel Group - Phased recovery expected

PPHE’s FY20 results demonstrate how well management has managed operating costs and cash in what is described as ‘the most testing year’. Management enters FY21 with a confident message on liquidity and its commitment to medium-term development plans. The success of vaccination roll-outs produces a more favourable outlook than for some time. Management points to an ‘encouraging early uplift’ in demand in the UK following the new timetable for easing restrictions and early signs of potential reco

PPHE Hotel Group - Leisure demand recovering

PPHE’s H120 results, more notably those from Q220, reflect the full impact of COVID-19 lockdowns on demand, and the substantial progress that management has made in managing the cost base and cash burn. Demand from the leisure sector has returned relatively strongly but the rate of potential recovery in business travel remains uncertain. In recent weeks, the group’s average occupancy level of c 35% is above the 30% required for operational break-even with government support for jobs and business

PPHE Hotel Group - Termination of coverage

Edison Investment Research is terminating coverage on ADMIE Holdings (ADMIE), AJ Lucas Group (AJL), Australis Capital (AUSA), Elbit Medical Technologies (EMTC), Focusrite (TUNE) and PPHE Hotel Group (PPH). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our website.

PPHE Hotel Group - Managing costs well in tough environment

The travel bans and quarantines due to COVID-19 have had a significant impact on PPHE since mid-March and are likely to continue to do so. We now expect a deeper and longer downturn than previously and a slower recovery, so we reduce our forecasts for occupancy for FY20, while holding our prior EBITDA margin assumptions reflecting cost cutting and a high level of government support on key costs. We downgrade FY20 revenue by c 32% and EBITDA by c 29%. The shares are trading at a c 54% discount to

Small Cap Feast

PPHE Hotel Group - Cost cutting for uncertain times

The trading update, following the update on 12 March 2020, highlights the expected drop in demand due to the COVID-19 virus, and strong actions by management to cut costs and preserve cash in the uncertain environment. We leave our forecasts unchanged following our recent downgrade of EBITDA for FY20e by 14%, but now assume no dividend payment in FY20, following the cut of the proposed final dividend for FY19 of 20p. The shares are trading at a discount of 68% to the EPRA NAV, and the majority o

PPHE Hotel Group - Elevated discount to NAV

PPHE’s FY19 results were in line with our expectations, with RevPAR outperformance in most markets in which it competes. FY20 looks a more challenging year due to the threats to travel from the outbreak of the coronavirus, as well as tough comparatives. The company has a history of outperforming its peers in good and tough markets and has the benefit of maturing room stock in key markets. In the long term, the development pipeline continues to look promising. We downgrade our EBITDA forecast for

PPHE Hotel Group - Encouraging end to the year

PPHE’s FY19 trading update is solid, meaning that management is confident of meeting expectations. FY19 like-for-like (l-f-l) room revenue growth of 6.3% follows 6.7% growth in FY18. At this stage, typically, detailed commentary on the performance at individual country level is limited. Management has indicated that trading is benefiting from the £100m investment programme, and therefore the key drivers of growth in FY19 were London and the Netherlands. FY20 will continue to benefit from the two

Small Cap Feast

Intention to float by Gemfields Group. No Capital Raise. Currently listed on JSE. (GML:JNB) at circa £122m. The Group's key producing assets, the Kagem emerald mine in Zambia (believed to be the world's single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world), are both expected to have long mine-lives with potential for expansion. Also owns the Faberge brand. Due Valentines Day 2020.

PPHE Hotel Group - Sticking to the script

Q319 has seen PPHE deliver against a strong comparative (eg like-for-like rate-led RevPAR +4%). Unsurprisingly, given positive market reports (Q319 RevPAR +5%, per STR), London, PPHE’s largest profit source, has been the driver, boosted by maturing properties and the newly repositioned Holmes Hotel. The Netherlands has also traded well, with similar investment payoff, notably at the flagship Victoria Amsterdam. In its busiest period, Croatia defied competition to match record FY18 revenue thanks

Small Cap Feast

DNEG Limited One of the world's leading digital visual effects, animation and stereo conversion companies for feature film and television.The Offer will be comprised of new Shares to be issued by the Company (to raise expected gross proceeds of £150m). Admission is expected to take place in November 2019. Zaim Credit Systems— Zaim currently provides loans of up to Russian Roubles 30,000 (£375) to retail customers through its network of just over 95 sites predominantly in Moscow. Looking to rai

Small Cap Feast

Kaspi.kz, the largest Paym ents, Marketplace and Fintech Ecosystem in Kazakhstan w ith a leading m arket share in each of its key products and services, has postponed its Initial Public Offering due to unfavourable market conditions. Registration document approved for Helios Towers. The Group provides essential network services, flexible infrastructure solutions and reliable power supply to mobile network operators in five African growth economies. Revenue increased 7 per cent. year-on-year to U

PPHE Hotel Group - Going up

H119 has seen PPHE again deliver both operationally and from a property perspective. Like-for-like EBITDA increased by 6%, driven by London, its main profit source, clearly outperforming a buoyant market and benefiting from maturing room stock. Successful property development is reflected in a further rise in EPRA NAV per share, up 5% to £25.52 yoy (surplus of over £700m to book value) and confirmation that its extensive £300m investment programme is well in hand. Despite tougher H2 comparatives

Hybridan Small Cap Feast 28/09/22

Joiners: No joiners today. Leavers: Brewin Dolphin Holdings has left the Main Market. Caretech Holdings has left AIM. What’s cooking in the IPO kitchen?** Streaks Gaming plc, a UK-based provider of conversational gaming products intends to join the Standard Segment of the Main Market this autumn. The flotation is expected to value Streaks at approximately £10.2m (pre-money) and will make it the first LSE-listed "pure-play" conversational gaming company. Raising between £5-10m. Independent Living

SHORE CAPITAL - SCS GROUP+ (SCS, HouseStock at 138p) Appointment of Non-Executive Chairman Designate

Hostmore - Better than expected H1; cold reality on the menu

Hostmore delivered a marginally better than expected H1, but it’s not been a great start to H2 and the cold reality is that the consumer environment has worsened, putting pressure on revenue, with cost inflation – especially energy – also rippling through the P&L. Sensibly, Hostmore is slowing its opening programme to protect cash; it’s highly cash generative with plenty of financial headroom, and this should put it in a good position to exploit market opportunities when the time is right. We ar

Morning Note – 21 September 2022

Cenkos: Brighton Pier Group Plc -- Strong results, challenging outlook

Brighton Pier Group (BPG) performed strongly during the 12 months to June 2022, which resulted in the company beating forecasts that had already been twice upgraded (FY22E Adj EBITDA of £6.5m originally forecast vs £10.8m ultimately achieved). All divisions performed well, with trading boosted by pent-up consumer demand and government support packages. The outlook appears more muted, however, driven by elevated inflation and the widely documented ‘cost-of-living crisis'; consequently, we lower o

SHORE CAPITAL - XP Factory (XPF) - House Stock at 12p - Excellent progress to date in 2022

LIBERUM: City Pub Group* - Balance sheet strong, inflationary downgrades

Hybridan Small Cap Feast 22/09/2022

*A corporate client of Hybridan LLP ** Arranged by most recent first *** Alphabetically arranged Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Streaks Gaming plc, a UK-based provider of conversational gaming products intends to join the Standard Segment of the Main Market this autumn. The flotation is expected to value Streaks at approximately £10.2m (pre-money) and will make it the first LSE-listed "pure-play" conversational gaming co

Guild Esports (GILD LN) - Sky - Largest ever sponsorship

Guild has signed its largest sponsorship agreement to date with Sky UK Ltd (Sky). The three-year global sponsorship is one of the largest ever esports sponsorships signed in Europe and is Sky’s first agreement with an esports organisation. We estimate the new contract could drive Guild into cash profitability before payments to Footwork Productions. In addition, the sponsorship’s high profile may accelerate the signing of other deals in Guild’s growing pipeline. Sky follows other premium brands

Pendragon PLC (PDG LN) - Strong H1 and strategic progress

Pendragon’s interim results show underlying PBT of £33.5m (H1 2021: £35.1m), in line with the numbers flagged in a trading update on 20 July. This is a strong performance given the removal of £8.3m of government support and £7.0m of incremental marketing spend to grow the used car proposition. FY22 trading is expected to be in line with Management’s expectations, despite macro uncertainty and supply shortages, so Zeus headline forecasts are unchanged. We remain comfortable with our 38.6p per sha

Zeus: Video Games Sector Quarterly review - September 2022

In the September edition of Zeus’ Video Games quarterly report, we review sector M&A activity in 2022 alongside our regular valuation and performance analysis. Total 2022 YTD deal volume across the US and Europe (186) is at elevated levels, already second only to 2021. The total number of video games deals rebounded significantly to 81 in Q3 from 28 in Q2, according to our transaction screening. US average deal value reached a record high of £209.5m (joint with that achieved in 2020) on a re

LIBERUM: Tortilla Mexican Grill* - LFL +19% and roll out on track

LIBERUM: Ten Entertainment Group* - Another upgrade, base demand 30% higher vs pre-Covid

Hybridan Small Cap Feast 11/08/22

Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group exports

Significant airport disruptions drove Q3 into the red

easyJet’s Q3 trading update should be defined as mixed as we see severe negative impacts from the airport chaos, but the encouraging traffic figures, good hedging and further improved liquidity and net debt positions are worth noting. We might downgrade further our estimates to a small extent for the current FY and a further cut for the next FY is not impossible as Heathrow warns of a potential passenger cap for summer 2023.