Kropz, an emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa, a phosphate project in the Republic of Congo and exploration assets in Ghana, is looking to join AIM. Offer TBC, expected late Nov
Titon holdings—international manufacturer and supplier of ventilation systems and window and door hardware. No capital raise. Due 10 Dec. Mkt cap c.£22m.
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 early December.
Finncap—proposed acquisition of M&A adviser Cavendish Corporate Finance and AIM admission. Offer TBA. Due early Dec
Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is investigating the possibility of AIM admission. The Company is proposing to raise up to £2.25 million before the end of December, conditional on Admission.
The Panoply parent company of a digitally native technology services group founded in 2016 with the aim of identifying and acquiring best-of-breed specialist information technology and innovation consulting businesses across Europe, is looking to join AIM. Offer £5m new capital, £400k sell-down, market cap of £30m, expected late 4 Dec 2018.
Companies: AAU HSW DTY SEFA BILB ARS GDR SNX OPTI HCM
Jadestone Energy (JSE.TO)—an independent oil and gas production and development company focused on the Asia-Pacific region. Pro-forma production of 13.9 mboe/d, 2P reserves of 45.3 MMboe, and a 2P NPV10 of US$563.7 million . Offer TBA. Current mkt cap C$135m. Due early August.
CentralNic-Schedule 1 from the business operating in proprietary retail platforms selling domain names and associated web presence services including hosting and email on a subscription basis, has acquired KeyDrive S.A which constitutes a RTO. Raising £24m at 52p, combined market cap of £88.7m
Ovoca Gold (to be renamed Ovoca Bio PLC) - RTO of IVIX, a Russian company developing a drug candidate for the treatment of female sexual dysfunctions. No monies to be raised, market cap of £8.5m, due 30 July
Kropz PLC-Intention to float by the emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa and exploration assets in West Africa
Companies: UPL VRP XSG COG HAYD TPFG DTY IRV TEK CRU
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Sale of Fowler Welch
Companies: Dart Group
New management has put in place a strategy which the February interim results revealed was returning the group to growth with very encouraging LFL statistics and attractive returns on refurbished outlets. In March, however, in response to COVID-19 and following UK Government guidelines, all venues had to be closed.
Management initiatives have materially reduced the cash burn while the group is unable to trade, and the group’s lender has been very supportive in significantly increasing the borrowing facility.
Management is now proposing an equity issue, the rationale for which is to strengthen the leverage ratio to create a more appropriate capital structure moving forward, to allow an immediate return to the estate refurbishment programme and to be able to potentially take advantage of strategic opportunities as they arise as the sector emerges from the COVID-19 crisis.
Companies: Revolution Bars Group
Air Partner has released a further shareholder update, confirming that the business has continued to perform well ahead of budget in May. For the first four months of the year to May, the unaudited management accounts show an expected underlying PBT of £7.5m, up from £6.0m in Q1. This strong performance has been predominantly driven by high levels of activity in the Freight and Group Charter divisions. The forward order book for June is also strong, with continued demand for Freight and Group Charter services. Visibility beyond June remains limited. Performance in H2 will likely depend upon a recovery in activity levels in Private Jets and Safety & Security, with crisis work expected to slow down. As highlighted in the results, the Group is already seeing some early signs of recovery within Private Jets and Safety & Security. Management recognises the challenges ahead and continues to tightly control costs and prioritise preservation of cash. At the end of May, Air Partner had cash in the bank of £16.5m (exc. customer deposits and JetCard) and has drawn down £11.5m of its £13m RCF. We believe the Group is well placed to achieve a strong FY21 given the diversity of its model and the strength of the balance sheet.
Companies: Air Partner
Vertu has delivered FY20 results broadly in line with our forecasts at the adjusted PBT and EPS level. However, the real focus is how it has fared during lock down. The monthly cash burn in April and May was lower than we estimated, while cash balances were higher than we expected approaching £45m. While there are no doubt difficult trading months ahead, we believe Vertu has sufficient liquidity and support to come through this and fully reap the opportunities that lie ahead in a sector where significant capacity reduction is expected.
Companies: Vertu Motors
Vertu’s FY20 results demonstrate the qualities of the business in terms of a strong management team exercising financial discipline, supported by sector-leading systems. Strategically, Vertu is leading the market in omni-channel retailing as it prepares for a post-lockdown world. The business incurred losses of £20m across April/May, but emerged with significant headroom and liquidity. It’s low LTV on used car stock will support cash generation. With dealerships having just opened on 1 June, guidance remains withdrawn and our estimates are under review. Management is upfront about its desire and ability to consolidate the market and emerge from this crisis stronger. This remains the bedrock of the longer term investment thesis.
Gaming Realms is a creator and licensor of innovative games for mobile, with operations in the UK, U.S. and Canada. Through its unique IP and brands, Gaming Realms brings together media, entertainment and gaming assets in new game formats.
Companies: Gaming Realms
MMH has provided an update, which confirms it significantly outperformed the market during Q1. During lock down there has been some signs of pent up demand both in aftersales and new/used vehicles with over 3,700 vehicles sold during lock down in addition to the March order book and Q2 order book. We believe MMH has sufficient balance liquidity as well as support from its OEM and banking partners.
Companies: Marshall Motor
We note this morning’s announcement from Boohoo Group strongly refuting several allegations made in a short-selling note published yesterday afternoon. In our opinion arguments made in the short selling note are flawed and do not disclose any new or unexpected information about the Group. The unprecedented market backdrop resulting from the COVID-19 crisis has only acted to highlight the strengths of Boohoo’s agile, pure play, e-commerce model and we see current share price weakness as offering an attractive entry point.
Top line growth was 26.6% in FY20, despite a refocus away from unprofitable online regions (e.g. Russia) and a drag in Q4 from adverse weather/flooding. In highly fragmented UK/European markets, and potentially supported by accelerated structural change post CV19, there remains a significant growth opportunity both online and offline for the lead consolidator. Weak bottom line contribution highlights the benefit that changes being implemented under a strengthened management team should yield. These include improved stock management processes and a greater focus on gross margin and operating cashflows. With sufficient liquidity to navigate the crisis, a profitable/growing store estate and scope to realise scale economies online, ANG should be a long term winner.
Companies: Angling Direct
Topps’ sale & leaseback of its head office and warehouse for a consideration of £18m will help give the group total liquidity available of £42m heading into June. This is a very strong position considering our analysis suggests monthly cash burn from trading may well average no more than £2m over June-August. At the recent interims, the group outlined its store re-opening progress and is well on track to have all c.350 open on a ‘controlled entry’ basis by the end of June, giving further grounds for optimism. We will re-instate our forecasts at the next update, which is due in early July.
Companies: Topps Tiles
In FY20, prior to COVID-19, management delivered on its four key proof points, including growing group EBITDA and membership at Roadside. The business model is proving resilient during COVID-19 and we have reduced our FY21 EBITDA forecast by only 7% since the outbreak began – much less than most.
Companies: AA Plc
Unsurprisingly, the limited business progression in H1 19/20 and the pandemic outbreak towards the end of the year have resulted in a significant FY profit contraction.
However, the unprecedented pandemic crisis seems to be dragging all the industry to the same starting line, in terms of market transformation. In particular, after the group showed a better than expected cash position after additional RCF and CCFF and substantial cost-savings, this gives new hope to the market.
Companies: Marks And Spencer Group
Boohoo Group has announced the acquisition of the remaining 34% of shares in prettylittlething.com (‘PLT’).
- Terms of the deal: Boohoo Group has acquired the remaining 34% of shares in PLT for initial consideration of £269.8m, comprising cash consideration of £161.9m and share consideration of £108.0 including £54m of share consideration subject to an 18 month lock-up, £54m of share consideration subject to a 24 month lock-up payable on completion. A further £54.0m of contingent consideration is payable if the Group’s share price averages 491p (+46.7% on last night’s closing price) over a six-month period between completion and 14 March 2024. PLTs management team will remain in the Group, with the structure of the share consideration providing strong alignment of management interests with the wider Group shareholder base.
FY19 was a transformational year, with the addition of seven new hostels to the estate/pipeline and strong growth in Revenue (+26%) and adj EBITDA (+11%) demonstrating that the model can work across European cities. Significant liquidity headroom remains following the RCF extension and £5m overdraft facility recently agreed.
Lookers has announced a trading and operational update, which shows it has done a lot behind the scenes to improve its digital buying process, with some evidence of activity at lower than normal capacity levels. Further restructuring measures have been taken with a further 12 sites set for closure, while headcount is likely to be 25% down YOY if planned redundancies take place. The 2019A results are expected at the end of the month, albeit subject to audit and banking discussions taking place to amend covenants. Overall, we believe management are taking the right steps to ensure Lookers is a sustainable business in a post COVID-19 environment.