Hybridan Small Cap Feast 15/06/2022

Dish of the day Joiners: Silverwood Brands (AQSE:SLWD), has been re-admitted onto the Access Segment of the AQSE Growth Market following the acquisition of Balmonds Skincare Limited by way of a signed share purchase agreement. Leavers: River and Mercantile Group has left the Main Market following a reverse takeover by AssetCo (AIM:ASTO). Marshall Motors has left AIM. Ocean Outdoor has left the Main Market. What’s cooking in the IPO kitchen? LifeSafe Holdings, a fire safety technology business wi

NAHL Group AGM Trading Update

In the first 5 months of 2022, the Group has continued to perform in line with market expectations. During this period, the Consumer Legal Services division generated 34% more personal injury (PI) enquiries than the comparative period and in line with the Group’s strategy, 26% of enquiries were placed into NAHL’s own law firm, National Accident Law (NAL). The Critical Care division also made encouraging progress in the period.

NAHL Group Final Results & Initiation Note

NAHL’s new management team has transitioned its Consumer Legal Services personal injury model to one favouring higher value/profits at the short-term expense of lower value returns. As the Group’s strategy begins to mature, the growing bank of continually refreshed, internally managed personal injury claims will crystalise into sustainable income and cash generation, leading to a mature and virtuous cycle of self-funded investment and profit. Earnings growth is forecast to accelerate significant

NAHL - Approach from Frenkel Topping – move to Neutral

Frenkel Topping has acquired 6% of the share capital of NAHL and NAHL has confirmed that it has received an approach from Frenkel Topping proposing an all share combination. The Board of NAHL is considering the proposal. We move our recommendation from sell to neutral.

NAHL - CEO resignation – Potential strategic change?

NAHL Group has announced that CEO Russell Atkinson has resigned from the Group with immediate effect and will leave the company at the end of September 2020. The Board has started a process to find a replacement and Chair of the Board, Caroline Brown will perform the role of interim CEO in the meantime while the operating divisions of the Group are headed up by their own management teams. Given the financial and strategic challenges the Group has faced, we do not see this news as particularly su

NAHL

COVID-19 Trading Update – Challenged

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 legal services read across from recent bids on CTR and MUR

At a time where UK public market valuations remain subdued, especially given GBP weakness, it seems reasonable to assume the potential for opportunistic private bids may increase. We have long argued the merits of certain business services companies with exposure to the legal sector, and we believe recent private interest in the space supports this. In our view, the demonstrable private intrigue may provide a floor to valuations, leaving significant upside risk; if the public market does not cor

Small Cap Feast

Network International Holdings—Potential Intention to Float— leading enabler of digital commerce across the Middle East and Africa region, operating across over 50 highly underpenetrated payment markets that contain a total population of 1.5 bn. 2018 rev $298m, underlying EBITDA $152m. 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 $515

Continued headwinds

We revise our outlook following continued downward momentum in earnings beyond Management’s expectations. We believe there is further downside risk to forecasts given: competitive pressures in the core PI model; entrance into a competitive market with limited track record; and further property market weakness. Given these headwinds there is limited earnings visibility on a 12-24 month view.

Quarterly Research Outlook

The June IPO of Knights Group Holdings, a Top-100 regional law firm, marked the fifth entrant to the burgeoning UK-listed legal sector. Following recent expansion of our coverage across all five listed legal firms, complemented by coverage of three broader support services peers with exposure to the sector, we revisit and build upon our views on this rapidly evolving sector.

SHORE CAPITAL - Begbies Traynor Group+ (BEG, House Stock, 143p)

SHORE CAPITAL - Begbies Traynor Group (BEG) - House Stock at 147p

Confidence in FY22E, revenue shifting FY23E to FY24E

H1 FY2022 results reflect the expected timings of defence contract placements and milestones in Chesterfield Special Cylinders (‘CSC’) and difficult conditions in the oil and gas market served by Precision Machined Components (‘PMC’). The Group nevertheless remains confident of meeting market expectations for FY2022E with CSC expected to deliver against a strong order book, benefiting from defence contract milestones, integrity management deployments and hydrogen projects, and improving oil and

Water Intelligence - Acquisition of Shanahan Plumbing

Water Intelligence has acquired Shanahan Plumbing which adds plumbing operations in the Connecticut and New York areas. The acquisition price is US$0.8m in cash representing a multiple of 4x PBT. The acquisition is consistent with the company's strategy of building out its ancillary adjacent service offering to leverage the customer base generated by its core non-invasive leak detection business as enhanced by its investment in technology to improve scheduling and dispatch efficiency. The transa

Cenkos: Rosslyn Data Technologies Plc -- Upgraded platform foundation for growth

Rosslyn Data Technologies has released a trading update for FY22 indicating that customer onboarding of the rebranded launch of the new Rosslyn platform is progressing well and benefitting from a refocussed partner-led sales model. FY22E revenue is expected to be £5.9m, though EBITDA loss is expected to be slightly higher due to longer than anticipated platform upgrade development time. Significant progress has been made working through the substantial organisational changes and upgrading the no

LIBERUM: Appreciate Group* - Strong momentum going into FY23E

Hybridan Small Cap Feast 22/06/2022

Dish of the day Joiners: No Joiners Today. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Visum Technologies seeking admission to The AQSE Growth Market. The Company's business is to own and operate an "on-ride" video and photographic camera system that it sells and/or licenses to customers (being theme parks, ride manufacturers, souvenir imaging providers, and other leisure operators). Due 30 June. LifeSafe Holdings, a fire safety technology business with innovative fire safety p

A long-term objective is not the market’s mood

Wise’s FY 22 release would have been satisfying under different market and macro conditions. The firm continues recording strong revenue and volume growth and aims at replicating this performance next year. However, margins are tightening under the pressure of higher costs. Although these are expected to stabilise, the multiplication of competitors impeding trust in the business’s resilience do not bode well with the market’s short-term requirements while Wise defines itself as a long-term pla

WH ireland: Anexo Group (ANX) - Housing Disrepair – White Paper highlights major opportunity for ANX

We view last week's White Paper as underlining again the significant opportunity for ANX's Housing Disrepair business, which started operations last year and has already enjoyed notable success, as reflected in last Thursday's AGM update. The White Paper is a harbinger of the much-touted Housing Reform Bill, announced in the May 2022 Queen's Speech, having been delayed by the pandemic. Given its well-established pedigree in litigating on behalf of the impecunious, ANX is extremely well positio

Hybridan Small Cap Feast 27/06/22

Joiners: No Joiners Today. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide customers with an overdraft facility without having to change their current account or request an overdraft from their

Alpha FMC - Still firing on all cylinders

Still firing on all cylinders

Cenkos: Bidstack Group Plc -- Final results update

Bidstack FY21 results showed revenue in line with forecasts at £2.6m and LBT of £8.0m, vs forecast LBT £6.3m after increased staff costs to accelerate the build out of the commercial team and drive execution across sales and publisher business development as well as reinforce the product team. A net loss of £6.3m was in line with forecasts. Bidstack has made considerable commercial progress during the period, notably the December 2021 agreement with Azerion guaranteeing a minimum US$30m revenue

LIBERUM: RPS Group* - Unscheduled statement leads to upgrades

Hybridan Small Cap Feast 20/05/22

Dish of the day Joiners: No Joiners Today. 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 networking platform), that is developing the Blossom Database pursuant to a third party licensing arrangement. The Company also has an investment of 426,000 common shares in Awakn, a Canadian NEO Exchange listed psychedelics research and clinical group, with operations in th

Strong FY’21 results – successful execution of strategy

RBG has reported an excellent set of results for FY’21, in line with recently upgraded forecasts. After a period of strong growth and significant strategic progress, RBG entered the current year with momentum. The outlook statement strikes a confident tone, both in terms of current trading (despite the less certain economic backdrop) and the Group’s medium term growth plans. Convex has made a positive start to the year and FY’22 will benefit from a first 12 month contribution from Memery Crystal