Small Cap Wrap – FRP Advisory Group, Inspecs, DRI Healthcare and more…


Dish of the day

Investment firm Nippon Active Value (LON:NAVF) raised GBP103m 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. Main Mkt Premium.

Off the menu

No Leavers Today

What’s cooking in the IPO kitchen?


FRP Advisory Group, UK professional services firm specialising in restructuring advisory. Raising GBP80m (GBP20m primary). Expected market cap GBP190m. Compound annual growth of 16.4 per cent. in revenue and 10.9 per cent. in operating profit since the beginning of FY17.o Strong average EBITDA margins of 51 per cent. over FY17 to FY19, and consistently strong cash conversion

Inspecs, a UK designer, manufacturer and distributor of eyewear frames to global retail chains announces its intention to IPO onto AIM raising GBP94m with a market cap of GBP138m. Admission expected 27th February. FY Dec 2018 numbers show revenue of $57m and underlying EBITDA of $11m

Main Market (Standard List)

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.

Main Market (Premium)

DRI Healthcare–investment company focused on investments in healthcare Royalty Assets looking to raise $350m. Due 11 Mar.

Ninety One -proposed demerger and public listing of Investec’s global asset management business on LSE and JSE. 30 Sep 2019 AUM GBP121bn. 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 GBP200m. 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.

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.

NEX Exchange

Incanthera–Specialist oncology company focused on transforming cancer treatment by creating environments in which cancer cannot survive . Due 28 Feb.

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 GBP3.5m. Admission is expected to occur on NEX in February 2020.

Banquet Buffet

Ariana Resources (LON:AAU) 3.4p GBP36m

Operating results for the quarter ended 31 December 2019 for the Kiziltepe Mine .

Gross income for the year is US$45.1 million from production of 27,985 ounces of gold, exceeding its full year production guidance of 25,000 ounces of gold by 2,985 ounces; representing an increase of c. 12%.

.Record gross quarterly income of US$12.78 million at an average realised gold price of US$1,484 per ounce, against an average revenue per gold ounce of US$1,736 due to silver credit).

Production and sale of 7,318 ounces of gold during the quarter ending 31 December 2019.

Operating cash costs for the quarter are estimated at US$500 per ounce#.

Operational mill availability running at 99% and utilisation at 97% during December.

54,735 tonnes ore milled during the period ending 31 December 2019 at an average head grade of 4.42 g/t Au.

Process recovery of gold remains high at 92%.

AdEPT Tech (LON:ADT) 322p GBP76.3m

Proposed placing and subscription to raise gross proceeds up to GBP4.0 million at 320p.

Net proceeds of the Placing and Subscription will be used in support of the Company’s stated strategy to reduce indebtedness, finance potential acquisition opportunities, accelerate Project Fusion “One AdEPT” and for ongoing working capital requirements . Alongside the delivery of long term, sustainable organic growth, the Board believes that selective acquisitions will continue to provide an expedited route to growth. This may be to accelerate product and technology capability and / or broaden AdEPT’s geographic footprint. Any acquisition activity would be judged against defined strategic, operational, financial and cultural criteria before being considered for further investigation.

Bagir Group (LON:BAGR) 0.525p GBP1.6m

The designer, creator and provider of innovative tailoring, confirms that it has resolved to take legal action against the Shandong Ruyi Group for breach of contract. On 19 June 2019, the Company announced, with regard to Shandong Ruyi’s remaining cash payment of $13.2m, that the Company had agreed to a further extension of the unconditional* completion date to 31 March 2020. The transaction was first announced on 23 November 2017.The extension of the unconditional completion date to 31 March 2020 was conditional on Shandong Ruyi providing suit jacket manufacturing equipment, with an estimated market value of approximately $1.3 million, for nil consideration, for use in Bagir’s Ethiopian manufacturing facility, by the end of September 2019. The manufacturing equipment has not, however, been delivered, to date. This further failure by Shandong Ruyi constitutes a material breach of the terms of the contract.

Whilst trading conditions have remained challenging, the Company continued to generate good sales growth for FY Dec 2019, up 9 % to $ 59 .4 m (2018: $54.6m) and expects to deliver a return to positive adjusted EBITDA (2018: negative adjusted EBITDA $1.0m).

600 Group (LON:SIXH) 11.5p GBP13.5m

In December the Group reported that it had been experiencing certain macro-economic and political uncertainties across its end markets, particularly in the Far East and automotive markets, with order intake for the fourth quarter expected to be significantly below originally predicted levels. Traing conditions have since become more challenging with the combination of the General Motors strike in USA plants at the end of last year and the suspension of manufacture by Boeing of its 737 MAX in January this year further impacting hundreds of thousands of suppliers across our core industrial markets. Order intake in both Machine Tools and Industrial Laser Systems therefore remains volatile, including two significant projects that have been pushed into the next financial year. In addition, the Coronavirus is causing disruption to shipping from the Far East.

Thereforethe full year is now expected to be significantly below the Board’s previously revised expectations.

Despite these major headwinds, the Board continues to believe in the long-term fundamentals of the Group,

Two Shields (LON:TSI) 0.105p GBP4.7m

Investee Company, BrandShield, a leading provider of services from brand protection to online threat hunting, announces the launch of its ElectionShield product to protect political campaigns from online threats such as fraudulent fundraising sites; phishing; social phishing; and impersonation .

“ElectionShield will be officially launched at one the World’s leading cybersecurity events, the RSA Conference in San Francisco, on February 24 – 28, 2020. BrandShield is exhibiting at South Expo, Booth# 3119. ElectionShield utilizes BrandShield’s market-leading technology to protect political campaigns and candidates from a growing range of online threats. These include social impersonation; fraudulent fundraising schemes; domain squatting; sale of unauthorized merchandise; fake social media content; phishing, social phishing and fake news. The last few years have seen a proliferation of fake social media content, in some cases using ‘deep fake’ video, designed to attack politicians. “.

Walcom Group (LON:WALG) 0.3p GBP0.2m

Update on the Company’s working capital position.

As previously announced, Mr Francis Chi, Chief Executive Officer of the Company, has indicated that he intends to provide a loan of HK$1,230,000 to Walcom Bio-Chemicals Industrial Limited, Walcom’s wholly owned subsidiary. Whilst the Board understands that is still Mr Francis Chi’s intention to provide the loan, it has still not been received. The Company continues to receive new customer orders which is benefitting its working capital position. In addition, the Company has negotiated an extension to the time for the payment of rent, salaries and other expenses which are currently due in the very short term such that these expenses can be partially and gradually paid over the coming weeks. As a result, the Board now believes that in the absence of the loan being received in part or in full by 6 March 2020, the Company may be unable to continue its operations and would be forced into liquidation with a consequential diminution in value to shareholders.

Oilex (LON:OEX) 0.16p GBP5.5m

Doriemus plc (Doriemus) has successfully completed a conditional bookbuild to raise A$4.5 million via a placement of Doriemus shares and options (Placement).

The Placement by Doriemus will, upon completion, satisfy a key condition precedent to the proposed acquisition by Doriemus of the Company’s portfolio of Cooper-Eromanga Basin assets, as detailed in the Company’s announcement on 29 January 2020 (“Acquisition”). The Acquisition remains subject to a number of other conditions precedent as set out in the same announcement.

Arricano Real Estate (LON:ARO) 0.45p GBP46.5m

Arricano first announced a new loan facility for its wholly owned subsidiary Comfort Market Luks LLC, which operates the Kyiv Prospekt Shoppin-g and Entertainment Complex, with Public Joint Stock Company “State Savings Bank of Ukraine” on 26 July 2019.

Arricano announced today that, having satisfied the conditions precedent, it yesterday drew down a further USD2.5 million of the remaining USD12.2- million available unde-r the Facility. Further drawdowns under the facility, unless price sensitive, will be aggregated and reported on in the Company’s annual and interim reports.

This drawdown will be utilised to finance ongoing construction of the Lukianivka Shoppi-ng and Entertainment Center in Kyiv.

Fulcrum Utility Services (LON:FCRM) 23.75p GBP52.8m

Appointment of Ian Pattison as Interim Chief Financial Officer (CFO). Ian will join the Company on 24 February 2020 and commence his role as an executive director, a non-board position.

Ian brings significant experience with him, having held senior financial roles at Clugston Group, Cintas Document Management, Cape Plc and Boeing (Australia.

Oncimmune (LON:ONC) 61.5p GBP38.9m

Award of the ‘Winning in Business in Spain’ award at the Department for International Trade’s (DIT) UK-Spain Business Awards held on 20th February 2020 at the Madrid Stock Exchange in Spain.

The DIT’s introduction of Sabartech has enabled Oncimmune to build its successful distribution partnership with Sabartech, which has led to making EarlyCDT Lung available in Spain and Portugal.


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