Interim results show that the Bioplastics division is continuing to gain momentum with important new contracts signed, particularly with US-based customers. Existing Group KPIs have been adjusted and extended and are effective through to 2023. If achieved they suggest that the Bioplastics division and the Group would become EBITDA positive by the end of the period. To fund increased spend in the division, the Group is proposing to raise approximately £1.1m (gross) which will be used to accelerate the current project runway, invest in additional manufacturing, boost sales and marketing and support working capital demands. The cyclical Stanelco RF division (RF) continues to suffer from overcapacity in the global fibre optic market and will remain subdued.
Companies: Biome Technologies plc
Wheaton precious Metals (TSE:WPM) - Proposed secondary listing on bringing one of the world’s largest precious metal streaming companies to the London Stock Exchange. Due Q 2020
AB Ignitis grupe—leading utility and renewable energy company in the Baltic region. Admission of its Shares to the Main Trading List of Nasdaq Vilnius and admission of its GDRs to the Official List of the FCA. Offer Price Range corresponds to a market capitalisation of approximately EUR1,691.7 - EUR2,105.2 million. Due 7 Oct.
Calnex, an established provider of test and measurement solutions for the global telecommunications sector, will raise a total of £22.5 million (before expenses), comprising £6.0 million for the Company and £16.5 million for existing shareholders . Due 5 October 2020, under the ticker CLX. Based on the Placing Price, the market capitalisation of the Company will be £42.0 million on Admission.
Various Eateries to float on AIM. Admission is expected to take place end of September/early October 2020. The Company intends to raise up to £25 million by way of a placing . Established platform business operating two core brands, Coppa Club & Tavolino, both positioned to benefit from the post-Covid environment. The Directors believe site availability, acquisition opportunities, reduced competition, availability of talent and changes in consumer behaviour provide opportunities to accelerate the Group's growth .
Mode Global Holdings to join LSE (standard). Mode is a UK-based Fintech Group, building a modern financial services business to support an increasingly digitised economy and financial system, combining the best of banking, payments, investment, loyalty and digital assets. Targeting £7.5m raise.
Guild Esports a UK-based owner and developer of esports teams, has announced its intention to seek a listing of its ordinary shares to the Standard Listing segment of the London Stock Exchange this autumn. its founding shareholders include David Beckham, former football player and captain of England, and now co-owner of new MLS team Inter Miami CF.
HOME REIT intends to float to the Main Market raising up to £250m. The Company will seek to contribute to the alleviation of homelessness in the UK, whilst targeting inflation-protected income and capital returns, by investing in a diversified portfolio of assets across the UK which will be dedicated to providing accommodation to the homeless. Due Mid October
Sativa Wellness Group—(Canadian Securities Exchange: STIL) renamed from Stillcanna Inc following the conditional acquisition of Sativa Group (AQSE:SATI) to list on the AQUIS Exchange. A fully integrated European seed to consumer CBD group with the pricing, products, and stability to meet the CBD market demand in the medium term. With world-class extraction and formulation experts, an agricultural team that has over 20 years’ experience farming hemp, along with laboratory testing capabilities, the group has established itself globally as a trusted source of high-grade, premium wholesale CBD brands and products.
Umuthi Healthcare Solutions Plc, the technology led healthcare business focused on the distribution of pharmaceuticals and the provision of medical facilities in remote areas, seeking admission to the Standard Listing segment of the Official List
Kibo Energy PLC, the multi-asset Africa focused energy company, is seeking admission for its 100% owned UK subsidiary Sloane Developments Ltd , which will be renamed Mast Energy Developments PLC (MED), to the Standard List of the London Stock Exchange plc . Targeted for Q4 2020. The MED business strategy is to acquire and develop a portfolio of flexible small-scale power generation assets, exploiting a growth niche market in the UK for Reserve Power generation to balance out the national grid at critical times.
Companies: PEG GYG VDTK SMRT ORR BIOM BLOE IXI TRR CPP
Despite COVID-19 disruption, Biome Technologies reported continued strong growth in its key Bioplastics operation with the division showing H1 revenue growth of 53%. However, COVID-19 negatively impacted an already weak market for fibre optic furnaces and consequently H1 revenues from the Stanelco division were down 82% at £0.2m. While enquiries and order books in the latter division have begun to show some modest improvement, significant growth in H2 would be required to meet management’s previous revenue expectations. We are therefore reducing our revenue forecast for the division from £1.75m to £0.9m Although due to prudent cost management, Group LBITDA stays unchanged at £1m.
Biome Technologies reported a strong start to the year for its key Bioplastics business with the division showing yoy revenue growth of 83% in Q1. As anticipated, revenues generated by the Stanelco RF division were impacted by weaker demand for fibre optic furnaces resulting in revenues down 87% yoy. Group sales in the quarter were £1.3m (Q1 2019: £2.1m). Covid-19 considerations aside, we believe the Bioplastics division to be in a strong growth phase, with many market opportunities expected to develop in 2020, particularly in the food and beverage sector. In RF we do not see any recovery in demand for furnaces in 2020 and management is focusing on alternative markets which could support growth in H2.
Caribbean Investment Holdings. Incorporated in Belize . CIHL primarily operates financial services businesses through its subsidiaries The Belize Bank Limited and Belize Bank International Limited, both located in Belize and international corporate services through Belize Corporate Services Limited. CIHL shares are also traded on the Bermuda Stock Exchange. Lord Ashcroft holds 75%. No capital raise. Due 28 April. £36m . 2019 net profit US$ 10.7m
Companies: GETB JSE NTOG BIRD AVCT BIOM WSP NQMI FARN
Biome Technologies (Biome) reported strong growth in its key Bioplastics division with the rate of growth accelerating through the year generated by strong underlying demand for established products and sales of newly launched products. Stanelco RF, as previously highlighted, saw revenues fall year on year (yoy) as demand fell back to more normalised levels following an exceptional level of activity in 2018. Covid-19 considerations aside, the Bioplastics division is in a strong growth phase, with many market opportunities expected to develop in 2020, particularly in the food and beverage sector. In RF we would expect further contraction in demand. Current conditions are evolving fast and in the present circumstances we are temporarily withdrawing FY2021 forecasts.
Biome’s year end trading update revealed that revenues generated from the Bioplastics division reached a record £3.4m (2018: £1.9m). Stanelco RF Technologies (RF) on the other hand evidenced a decline in revenues of 43% as the division (as forecast by management) reverted to a more normalised level of activity following an exceptional FY2018. The outlook for FY2020 remains encouraging for Bioplastics but RF is experiencing weaker demand in the fibre optic furnace market which is expected to result in lower sales in FY2020 leading to an overall reduction in our EBITDA forecasts for the Group. However net cash at the year-end was higher than anticipated at £2.1m and our cash forecast for the end of FY2020 is unchanged at £0.6m.
Biome, the Bioplastics and RF Technology business, has published its interim results to June 2019 and has announced a conditional placing to raise £1.3m at 300p to fund an acceleration of growth within the Bioplastics division. Several high-quality projects have completed their development phase and are due to launch in FY2019 and FY2020. Consequently, we anticipate that Bioplastics will generate considerably higher revenues from FY2019 onwards as these projects, which are based on a combination of existing and new products, enter commercialisation. A continuation of this growth should allow the Group to achieve sustainable profitability. In this note we are initiating forecasts which anticipate the achievement of a modest underlying EBITDA of £0.1m in FY2020. Although the Group reported a positive pre-tax profit in FY2018 this was the result of exceptional revenue generation in the RF division which is not expected to be repeated in the near future.
MRYT PHARMA PLC— a biopharmaceutical company focused on developing and delivering innovative new treatments to help improve the lives of patients with rare or orphan diseases have raised $60m before expenses and will relist on the AIM Market on the 25/09/2019
Companies: LID OVB TUNE AMPH DGOC ANIC UKOG BIOM PVR
Alumasc Group plc, the prem ium building products, system s and solutions group, has announced its intention to m ove from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019
Argentex a UK-based forex service provider founded in 2011 by its current management team which operates as a Riskless Principal for nonspeculative and forward foreign exchange as structured financial derivatives is looking to join AIM. Offer TBC, expected 25 June
Companies: GAN BIOM PEN ARS CER FIPP MPM SPPC ARO HCM
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. Loungers plc—the operator of 146 café/bar/restaurants across England and Wales under the Lounge and Cosy Club brands, announces its intention to seek admission on AIM, offer to raise £61.6m at 200p with market cap of £185m, expected 29 April 2019. SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019. Distribution Finance Capital Holdings plc — specialist lender which builds relationships with manufacturers and then provides working capital solutions up and down their supply chains to drive their growth is looking to join AIM. No raise, secondary offering of £19.8m at 90p, expected market cap of £95.98m. Expected 09 May 2019.
Companies: BXP MTL SYS DNL IXI PTR BIOM STX RTC TRAF
Biome continues to make encouraging progress on all fronts with the Group reporting maiden profits on both a statutory and underlying basis along with strong cash generation and a net cash balance of £2.6m (2017: £2.3m). Consequently, the Company enters 2019 with a financially flexible balance sheet that is available to fund the increasing opportunities available within both divisions.
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.
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 mediumsized polymetallic mine in Kapan in the Republic of Armenia. No raise, market cap of £110.1m, due early Feb
Companies: EMIS AQX NAUT RENE BIOM QXT SAG SBIZ
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Companies: Bango plc
Pressure Technologies has announced that it has raised £7.5m through a Placing, via an accelerated bookbuild, and PrimaryBid offer at 60p/share, a 4% discount to the closing midmarket price on 27th November 2020. The net proceeds of the fundraise will be used to accelerate growth in the fast developing hydrogen market, build the group’s capability in Integrity Management and to strengthen the balance sheet. As Nomad and Broker to the fundraise we are restricted and can therefore provide factual comment only. The Placing and PrimaryBid offer are subject to shareholder approval at a General Meeting to be held on 17th December 2020.
Companies: Pressure Technologies plc
Boku has released a trading update confirming that EBITDA is likely to be ahead of consensus expectations for FY20. As most of the upside is due to COVID-19-related cost savings, we have upgraded our FY20 EBITDA and EPS forecasts by 10% and 15%, respectively. We leave our FY21/22 forecasts unchanged, pending a more detailed trading update in January that will cover the busy December holiday season.
Companies: BOKU, Inc.
Westminster Group has raised £5m of new equity to pay down debt and support organic growth from conversion of the current substantial pipeline of new potential Managed Services contracts. The Group's industry reputation and global profile provides it with significant high-value security project opportunities with visible recurring revenue, driving substantial multi-year earnings growth. We initiate with a buy rating.
Companies: Westminster Group plc
FY2020E has been a challenging year on a number of fronts and a significant loss is expected on revenues down 12% at c.£25m and also impairment charges of c.£14m. Nevertheless, the Group enters FY2021E in better underlying shape, with benefits to follow from reorganisation and restructuring, and investment in sales, engineering capability and systems. This provides a platform to capture growth, albeit that no recovery is expected in the next 12 months in the oil & gas market, now c.35% of FY2021E revenue. Efforts to diversify both its customer base and end markets have been successful, with growing opportunity in the defence, industrial and hydrogen sectors in particular. Our forecasts anticipate profitable growth in both FY2021E and FY2022E, leaving the shares on forward PERs of 21.8x and 12.1x for FY2021E and FY2022E respectively.
Gateley’s H1 update is highly impressive, confirming a year on year improvement in activity levels in September and October and a strong sense of optimism at the beginning of H2. The Platforms continue to drive new business, whilst operating margins have benefited from cost actions taken in response to the pandemic (H1 PBT will show growth year on year). In light of the confident tenor of the statement, we reintroduce headline forecasts this morning, assuming stable revenue this year - which would be a considerable achievement - with profits returning to pre-pandemic levels by FY23.
Companies: Gateley (Holdings) Plc
Keystone Law has announced a trading update indicating that the Group has performed well through the second half of the year and that like-for-like performance has returned to near pre-COVID levels. This results in the Group expecting to see results “comfortably ahead of current market expectations” for FY21 which we see as a strong message and reiterate our buy rating.
Companies: Keystone Law Group Plc
RBG Holdings has updated on significant transactions completed in the Group’s Convex and LionFish divisions since its last market update in mid-September. With the Group’s legal division – RBL – continuing to trade well, management now have considerably improved visibility on financial performance, and so reinstate guidance with an expected FY20E revenue range of £24m-£26m (FY19A: £23.7m). For FY21E we anticipate revenue in the range of £26m-£29m We take this opportunity to reinstate our forecasts for both FY20E and FY21E; revenues of £24.6m / £26.9m, adj EBITDA £6.8m / £8.9m, adj EPS 5.0p / 6.8p respectively. Our forecasts are cautiously positioned towards the bottom end of guidance, with scope for upgrades when discretionary litigation asset sales or Convex transactions complete. On our FY21E forecast of 6.8p adj EPS, a mid-teens multiple of 15x PER implies the shares could be worth 100p.
Companies: RBG Holdings Plc
WEY has delivered an impressive set of results this morning, significantly ahead YoY, meaningfully outpacing our expectations on the revenue, profit and EPS lines. With strong revenue growth of 38% feeding through to 103% EBITDA growth and adj. EPS up 100%, the inherent efficiency of the model, supported by rising student numbers, is manifest. Educating ‘3,000' students, WEY is larger than any UK secondary school. Moreover, while providing a collegiate, online education, WEY is a clear beneficiary both of long-running and fundamental drivers, and of the current Covid-focused environment. With the benefits of past investment effectively displayed in today's results, the company continues to do more to grow its platform, present and future, and has highlighted an ongoing commitment to investing in the business to provide further support for future profit acceleration. Our Fair Value assessment is 34p per share.
Companies: Wey Education PLC
Oxford University and AstraZeneca announced the first interim analysis from the Phase III study of its COVID-19 vaccine candidate, which was found to be 70% effective in preventing COVID-19. This follows similar announcements from Moderna, and Pfizer/BioNTech in the previous two weeks, and the caveats we mentioned at the time remain the same. While all of these results have been highly encouraging, we reiterate that they do not diminish the urgent need for COVID-19 treatments and testing, which will be required for years to come. We consider Synairgen, Avacta, genedrive, Omega Diagnostics and Open Orphan to offer good buying opportunities.
Companies: AVCT ODX SNG GDR ORPH
Rhino’s second series of 5-year bonds offers exposure to a private company with an enticing set of characteristics, combining significant growth potential with proven ability to deliver over a 40-year history. Having spent several years shifting its business model away from capital-intensive production towards closely controlled licensing, and then investing heavily in increasing exposure at the top level of international rugby, Rhino is in a position to generate significant free cashflow to service this 5.5% coupon and offer attractive growth potential, further strengthening debt serviceability ratios.
Companies: Rhino Rugby Bonds Plc
Yesterday’s trading update confirmed the work management has undertaken to transform Sureserve into a smaller, more predictable business has paid off. The performance through the challenges of COVID-19 has demonstrated the resilience of the business. We had trimmed our 2020 revenue estimate from £210m to £201m, but the improving margins result in PBT being nudged up from £9.1m to £9.3m. The gradual re-rating of the shares this year suggests investors are starting to buy in to the turnaround and the improving market position.
Companies: Sureserve Group Plc
FRP has delivered strong YoY growth in its first full interim period post-IPO. Despite subdued UK appointments this year, we see this as clear evidence FRP is taking market share. With little trading seasonality, FY21E forecasts look achievable. FRP is well positioned to service an expected increase in demand in 2021, as Government support winds down. We see upside to FY22E forecasts; a P/E of 15.5x that year fails to recognise this.
Companies: FRP Advisory Group Plc
Microsoft is using the Bango Platform to bundle Xbox cloud gaming subscriptions for telco partners to include in their subscription packages. The latest announcement contains no financial details and consequently we make no changes to forecasts at this time. Nevertheless, we believe gaming represents a potentially significant opportunity for the group. In our view, the release signals the deepening of the existing strategic relationship with a tech industry titan (Microsoft) beyond payments, and also demonstrates further commercial expansion of Bango’s bundling and resale offering into the leading cloud gaming service, including physical goods such as consoles.
Braemar’s associate AqualisBraemar (AQUA-OSL) announced an acquisition and equity raise yesterday that was very well received by investors. The AQUA share price finished the day up +25%, meaning Braemar’s stake (which is on the balance sheet at £7m) is now worth £13.4m. This provides increased support to Braemar’s valuation and a significant potential source of funds if the stake were to be realised in the future. In the meantime, it provides a useful and increasing source of dividend income (prior to yesterday’s deal, we had forecast £0.6m dividend income p.a.) and we continue to highlight the strategic progress the new management team at Braemar is making and the very significant valuation gap to closest peer Clarkson (December 2021 P/E 22x).
Companies: Braemar Shipping Services plc