The Daily Telegraph reported that China founded, Singapore based fashion giant Shein is to list in London. Apparently, it has chosen our capital city after using tax loopholes, and because the Americans were giving it a hard time regulation wise listing there. Fortunately, as the City of London really needs the money, Shein is turning up here and will be welcomed with open arms. Apparently, the FCA is rather gentler on £50bn market cap companies than £5m ones.
Vodafone Group (VOD) announced it has completed the sale of Vodafone Holdings Europe, S.L.U. to Zegona Communications plc 1 for €4.1 billion in cash and €0.9 billion in the form of redeemable preference shares. The enterprise value of €5.0 billion represents a multiple of 5.6x Adjusted EBITDAaL3 and 13.0x OpFCF4 for the 12-month period ended 30 September 2023.
Comment (Ryan McCallum, Optimo Capital): Zegona complete Vodafone Spain takeover for €5bn as expected. All cash injection to harness buyback and non profitable components of its business would suggest Della Valle has been a sensible addition to the company.
Hollywood Bowl (BOWL) announced interim Results for the Six Months ended 31 March 2024. Record first half Group revenue of £119.2m (H1 FY2023: £110.2m). Group adjusted EBITDA pre-IFRS 16 increased by 10.0 per cent to £38.6m (H1 FY2023: £35.1m).
Comment (Ryan McCallum, Optimo Capital): Hollywood bowl half year results impress given the non- digital nature of its revenues exceeding expectations in Canada. Profits up over 5% year on year and the striking increase in dividend will no doubt provide a stubborn alleyway for the share price.
Blackstone Europe – Revised recommended cash offer of Hipgnosis (SOND).
Comment (Ryan McCallum, Optimo Capital): The Hipgnosis takeover approval being given the green light this morning with clearance from the CMA provides a light bulb moment in this space. One would anticipate a similar 30-40% jump this morning and champagne corks popping at Hipgnosis HQ given the monumental change in fortunes for shareholders.
Chill Brands Group (CHLL), the consumer packaged-goods distribution company, updated regarding the Company’s investigations into: i) a number of commercial arrangements that the Company has entered into connected to its UK vape business; and ii) allegations that had been raised around the use of inside information, the Company’s board of directors are unable to currently provide the market with an accurate update of its financial and trading position. As a result, at the Company’s request, the listing of the Company’s ordinary shares will be temporarily suspended from trading on the Main Market of the London Stock Exchange with effect from 7.30 a.m. today.
Comment: Another company where you could have judged it by the service providers it keeps, and the rule of thumb would have worked. But one is mindful of a quip made on social media that it would have been quite a challenge to have made money on the long side in the stock. Presumably this could have been a short via inside trading, but as we have seen the regulator seems fine and dandy with leaked placings.
Incanthera (AQSE:INC), the company focused on innovative technologies in dermatology and oncology provides a further update on the launch of Skin + CELL with Marionnaud Switzerland and Austria, managed by the world’s largest health, beauty and lifestyle retailer, A.S. Watson Group and to announce an Institutional Investor-led subscription and sale of shares raising £4.1m at 15p.
Comment: It was clear that INC was going to need to raise to meet demand, and one has to say that raising £4.1m on the AQSE market deserves some kind of medal – as well as indicating the positive interest in the stock.
hVIVO (HVO), a specialist contract research organisation (CRO), announced that it has signed a £2.5m contract with a mid-sized pharmaceutical company to initiate an Omicron characterisation study. The manufacture of hVIVO’s Omicron BA.5 challenge agent was successfully completed in 2023. HVO said that one of its key goals at hVIVO is to further diversify its challenge trial offerings. The establishment of a COVID challenge model is a key step to penetrating a new and expanding market, especially with regards to mucosal and multi-valent COVID vaccine development.
Comment: Once again, we have our regular fix of new contract wins from HVO, with the added comment from the company that it is diversifying its portfolio / market.
Power Metal Resources (POW), the London-listed exploration company with a global project portfolio, announce that it has entered into a legally binding subscription agreement with ACAM LP pursuant to which it will invest £2 million in Power Metal by way of a loan notes, with attaching warrants. Pursuant to the proposed Joint Venture, it is currently intended that ACAM, or an affiliate, will make an initial equity investment of £10 million into the Company’s wholly owned Canadian subsidiary company, Power Metal Resources Canada. POW said ACAM have already made a significant commitment to the Company pursuant to the Subscription and it looks forward to working with them to successfully conclude the proposed Joint Venture.
Comment: It is good to see POW get backing at this time of ongoing expansion at the company, which the market will interpret as game changing. This is particularly the case in the red hot uranium space.
GENinCode (GENI) finals to December report a 51% increase in turnover to £2.2m but more significantly approval of California state license, CLIA certification and CAP accreditation, opening the US market. GENinCode genetic tests combine clinical algorithms and bioinformatics to provide advanced patient risk assessment for coronary heart disease. The adjusted EBITDA loss of £6.7m increased from £5.6m reflecting the investment in the international commercialisation. Since the year-end £4m was raised at 5p so perhaps there is funding for the rest of the year. Cardiovascular disease is the leading cause of death and disability, as heart and circulatory disease causes an estimated 17.9m death globally a year and is a near $ trillion market. GENI listed in June 2021 rising £17m at 44p a share mainly with VCTs; as Octopus have 17%, Mavin 13.4% and Foresight with 6% while the management own around 16%.
Comment (Jon Levinson, Capital Plus Partners): Its already 15 years into a worthy mission but still some years off break-even. At 7.5p and a £13.7m mkt cap the value is arguably low but, will UK institutions support the further fundings ?
Hercules Site Services (HERC), a technology enabled labour supply company for the UK infrastructure and construction sector, is pleased to announce its unaudited interim results for the six months ended 31 March 2024. Record revenues, EBITDA and PBT in H1 for Hercules. Revenue increased by 32% to £48.8m (H1 2023: £37.0m). Adjusted EBITDA increased by 91% to £2.1m (H1 2023: £1.1m).
Comment: A rapidly growing company that almost no one has heard of (which takes some skill), successfully milking the bloated, deep state gravy train. One can expect even bigger wins when Labour turns up next month.
Sovereign Metals Limited (SVML) advised that it made a response to the Australian Securities Exchange (ASX) following the receipt of a query from ASX regarding an increase in Sovereign’s share price and in the volume of trading securities. SVML said it was not aware of any information that has not been announced which, if known, could be an explanation for recent trading in the securities of the Company.
Comment: It is funny how exchanges are not concerned if one’s shares trade at 30% or 50% less of where they should be for months or years. But that if things start looking up, they smell a fictitious rat. It is pleasing to see SVML shares finally getting the re-rate they deserve.
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