Good morning, it's Paul here with the SCVR for Monday.

Timing - I've covered quite a lot this morning, and am taking a break for lunch now. More later. Update at 18:23 - today's report is now finished.

Agenda -

Fonix Mobile (LON:FNX) - I looked at this one over the weekend, an interesting-looking recent float (Oct 2020)

Brief thoughts on vaccinations progress

5 new companies intending to, or actually listing, reviewed in brief

Bidstack (LON:BIDS) - 2020 trading update (needs a placing)

Porvair (LON:PRV) - quick review of its FY 11/2020 numbers

Zytronic (LON:ZYT) - Tender Offer, and (previous) trading update

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Fonix Mobile (LON:FNX)

Share price: 136p
No. shares: 100.0m
Market cap: £136m

Several readers mentioned Fonix last week, which jogged my memory to look at it over the weekend.

Fonix listed on AIM recently, the first day of dealings was 12 Oct 2020.

I must have been rather bored around that time, because I recall spending a Sunday evening reading its Admission Document, but never got round to typing up my notes, so belatedly here they are;

Floated at 90p

Placing of 50m shares, half the total, to raise £45m for selling shareholders - i.e. no fresh money raised for the company itself. Therefore the IPO should be seen as a half-exit for existing shareholders, which I’m generally not terribly keen on in an IPO

Directors sold 36m of the 50m placing shares, being about half their personal shareholdings

Paid big divis prior to the float, £6m in FY20, and £5m in FY19, so it’s a proper business, generating real cashflows, which is what aroused my interest in the company

Rapidly rising profit before tax:

FY 06/2018: £2.8m
FY 06/2019: £4.7m
FY 06/2020: £7.3m

Recent trading (at time of IPO) in line with expectations

Dividend policy to be 75% payout ratio (of earnings, I presume?)

Balance sheet - weak at only £2.4m NAV

Cashflow unusually high in FY 06/2020 - not sure why

Development spending - only low level of capitalisation into intangibles, which is good

High trade payables

Deferred payment to a charity of £3.9m - this was explained later as being for some technical reason at the request of the charity concerned, so not a problem

Notable institutions buying, mentioned in prospectus: Slater…

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