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. The Proof Of Trust has announced its intention to list on the Standard Market. The Blockchain based business, owns patents to a protocol which facilitates dispute resolution based upon smart contract disputes. Transaction details TBC.Ninety One –proposed demerger and public listing of Investec’s global asset management business on LSE and JSE. 30 Sep 2019 AUM £121bn. Sale of existing shares. Expected free float of >60%. Due 16 march. Cabot Square—Closed ended investment fund focussed on alternative assets and asset manager. Looking to raise £200m. Will target investment opportunities that are expected to generate an attractive risk adjusted return and that can also make a positive ESG impact by focusing on some of the biggest challenges facing societies and economies. Due 14 Feb. Calisen Group. Potential Intention to Float. Owner and manager of essential energy infrastructure assets through its subsidiaries Calvin Capital and Lowri Beck . Consolidated FY Dec 18 revenue £162.1m and operating profit £25.4m. Raising up to £300m in primary plus partial vendor sale. Expected Admission February 2020. The Global Sustainable Farmland Income Trust will invest in a diversified portfolio of operational farmland assets located in major agricultural markets including the United States, Europe, New Zealand, Australia and certain countries within Latin and South America. Raising up to $300m. Due 28 February. Investment firm Nippon Active Value fund is seeking to raise up to £200m at an issue price of 100p per share via an IPO. The company aims to invest in a portfolio of quoted Japanese stocks with market capitalisations of up to $1bn. First day of dealings expected early February.Zapp Scooters, a developer and manufacturer of electric two-wheeled vehicles announced its intention to IPO on the NEX Exchange Growth Market. The Company intends to raise up to £3.5m. Admission is expected to occur on NEX in February 2020.
GLIF SECG MTW UPR ZYT HZD JAY TRX BEM K3C
04 Feb 20
LIBERUM: GLI Finance* - Focus on higher RoE lending, further FinTech writedown, intending to extend ZDPs
GLI is shifting to asset backed lending and seeing early growth in the newer UK and Irish businesses, however this is overshadowed by further, large FinTech writedowns, by an IFRS9 impact, and by the news that the company is seeking to extend the current ZDPs for a year, at a higher cost. New cost control is welcome and the future business model makes sense, in our view, but a succession of significant value downgrades make it unlikely that the business will soon receive any credit for the value which its core lending business should be creating.
18 Sep 19
LIBERUM: GLI Finance* - Sancus BMS on track, but further FinTech writedown
Good news that Sancus BMS is growing on track with expectations, but there are further writedowns at FinTech ventures, on top of the halving of NAV which we saw last year. A large part of our valuation is the core loan book of Sancus BMS, so the impact to valuation is not significant.
29 May 19
LIBERUM: GLI Finance* - 13% growth at Sancus BMS
The fundamentals of Sancus BMS are good and growth was 13% LFL, with UK and Ireland also set now to grow. That is the prize. 2019 will however be a reorganisation year as on-balance sheet lending is reduced and the ZDPs are repaid, meaning Sancus BMS revenue expectations come down.
25 Mar 19
LIBERUM: Best of the Week: Financial Services In-Depth, Strategy Monthly:All-Cap and SMID, Melexis, Shield Therapeutics
The week's most insightful research and ideas. Liberum's most insightful and high-value research and commentary published this past week.
GLIF PMI AFHP BRW AQX IGG PLUS CTR CPP SNN XPS BUR NSF RFX MELE STX BDEV BWY BKG VTY CRST GLE PSN TW/ UMI NESN AZN RB/ RDW GFRD
22 Feb 19
LIBERUM: Financial Services - UK sell-off has created opportunity
Reviewing a range of diversified financial services companies in the UK, we see a group of businesses that are relatively capital light, with many offering a strong mix of large growth potential and recurring revenues. These are businesses that make their own futures – not macro or interest rate plays.
GLIF PMI AFHP BRW AQX IGG PLUS CTR CPP EQN SNN XPS BUR NSF RFX
20 Feb 19
LIBERUM: GLI Finance* - Core Sancus BMS continues to grow, but further writedowns and closure
GLI's trading statement for 2018 shows record loan origination levels. We continue to see operating profit for Sancus Group as a whole in line with our expectations, however, Sancus Finance has been performing below management expectations and as a result management has decided to close its supply chain finance offering. This is not expected to have a material impact on 2019 operating profit as the division was loss making, but it will still report a loss of £1m in 2018.
08 Feb 19
LIBERUM: GLI Finance* - Strong growth of the core lending business, somewhat undermined by further write down of FinTech Ventures
Sancus BMS has had a good first half with revenue growth of 42%, in-line with our expectations. Opex control has been impressive, with costs down 8%.
24 Sep 18
LIBERUM: GLI Finance* - Upgrade to BUY
We acknowledge that an investment in GLI is high risk - Sancus BMS could fall short of achieving our forecasts which we have reduced again post 2017 results, or the FinTech Ventures portfolio could be subject to write-downs in the future. However, we believe our valuation approach is reflective of these risks and implies a fair value for the stock significantly in excess of the current share price.
27 Mar 18
Small Cap Breakfast
Shearwater Group—Schedule 1. Acquiring SecureEnvoy for £20m in cash and shares—a provider of multifactor authentication enterprise software solutions. RTO under the AIM rules. ADES International— Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa, seeking raise up to $170m plus vendor sale under a Standard Listing of the Main Market. Admission due May 2017. Global Ports Holding—Intention to float on Standard List of the Main Market. International cruise ports operator. Seeking $250m raise including $75m primary offer. Dorcaster—Schedule One Update. Admission now expected on AIM 3 May. RTO of Escape Hunt raising £14m at 135p. Verditek— Schedule 1 update. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Issue price 10p. Admission in May. Tufton Oceanic Assets– Offer extended to 9 May on specialist funds segment of Main Market to enable investors to complete further due diligence.
GLIF ALSP SUMM EUSP RRL AST PPH PURE SSY ACC
02 May 17
LIBERUM: GLI Finance*- Initiation - On the right track
2016 was the nadir for financial performance and we forecast an improvement in future years. However we do not expect a return to profitability until 2018, and given expected losses, we do not expect a dividend to be declared for 2017.
28 Mar 17
Small Cap Breakfast
GBGI—Schedule One update from integrated provider of international benefits insurance. Raising £32m at 150p. Admission expected tomorrow. Anglo African Oil & Gas— Admission expected early March. Acquiring stake in producing near offshore field in the Republic of the Congo. Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb.
GLIF DOTD ARTA IGE ARBB UTW AIEA GHE OTC
21 Feb 17
AQUATIC FOODS GROUP PLC (AFG LN) | FAROE PETROLEUM PLC (FPM LN) | GLI FINANCE LTD (GLIF LN) | HARGREAVES SERVICES (HSP LN) | HIGHLAND GOLD MINING (HGM LN) | MOTIF BIO PLC (MTFB LN) | OPTIBIOTIX HEALTH PLC (OPTI LN) | STM GROUP PLC (STM LN) | UTILITYWISE PLC (UTW LN)
GLIF OPTI HGM UTW STM AFG MTFB HSP FPM
09 Aug 16
Hybridan - Small Cap Wrap
TTR Agreement, 7DIG Contract, ALSP Director Change*, CLIN Agreement, CRX Launch, DEMG New Accounts, DSG Partnership, GLID Share Sale, HZD Agreements, LID Agreement, MDZ Placing*, SAR Board Changes*, SEE Term Sheet, SNTY Contract Win, TAL Trading Update, VRS MoU
GLIF TTR 7DIG ALSP CLIN CRX DEMG DSG HZD LID MDZ SAR SEE CALL ZIN VRS
23 May 16
Transformation under way
GLI Finance (GLI) has new management, a new strategic investor and is undergoing a strategic review designed to maximise shareholder value from its investments in 19 alternative finance platforms. It has effectively become an operating company rather than an investment company, which should give it greater control of its assets, and its destiny. The shares offer a high yield of 7.8%. This is not covered by current earnings or operational cash flow but can be paid from cash, selling assets or increased borrowing. In future the company plans to pay it from dividends remitted to it from its investment platforms.
28 Apr 16
GLI Finance (GLI) has altered its proposed measures to strengthen its balance sheet following investor feedback on its original proposals. It has accepted a capital and cash injection from a strategic investor, Somerston Group, and it intends to work closely with the company in the future. GLI will undertake a strategic review of its alternative finance platforms and focus its resources on those it believes will generate incremental shareholder value; this may result in write-downs. The dividend has been halved to 2.5p and the CEO, Geoff Miller, has left the company. Subject to finalising negotiations and GLI shareholder approval, Somerston will provide additional support including a cash injection in return for GLI warrants and a 50% share of GLI’s asset manager. We have adjusted our forecasts for the December 2015 share issue, the cancelled zero issue and the new dividend policy, but not yet for the additional measures proposed and still subject to shareholder approval. The prospective yield for 2016 is 6.8%, slightly lower than the yield on alternative finance loan funds.
26 Jan 16
Balance sheet strengthening
As expected, GLI Finance (GLI) has announced measures to improve its balance sheet and help it to continue paying a 5p per share annual ordinary dividend and possibly provide additional funds to grow its loan book. GLI will seek shareholder approval to issue £20-40m of new zero dividend preference shares maturing in 2020 (2020 ZDP shares) and a potential issue of convertible unsecured bonds (CULS) to replace an existing loan facility. The EGM will take place on 21 December 2015 and the listing of the 2020 zeros on 22 December 2015.
04 Dec 15
Alternative finance company
GLI Finance (GLI) has successfully altered its investment strategy to participate in the fast-evolving and expanding alternative finance market through investing in alternative finance platforms, alternative finance loans and the creation of an asset management company. Loan growth at its platform investments is accelerating and management expects most to be profitable within a year. GLI aims to continue paying the generous dividend it paid as a CLO investor. It offers investors a 10% yield with the prospect of capital gains from its platform investments. A likely £30m issue of additional zero dividend preference shares (zeros) in early 2016, and dividends remitted from its investments could enable GLI to cover this dividend with cash earnings in the next couple of years.
11 Nov 15
Hybridan - Small Cap Wrap
ALBA Placing, BOOM AUPEO Deal, BEM Placing, CLIN Agreement, FIPP Development, GLIF Invests, MDZ* Contract Extension, MSG* Letter of Intent and Business Solutions to be used by GSP, NIPT Collaboration, OPTI* Contract Signed, PEG* Final Results, RCN Trading Update, SVR Contract Signed, SRT Acquisition, UKOG Acquisition, WAND Joins Open Data Platform
GLIF ALBA BEM CLIN FIPP MDZ OPTI PEG YGEN RCN SVR SRT UKOG WAND BOOM CTEA
17 Mar 15