Small Cap Feast

Small Cap Feast – 01 August 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 887

Total number of AIM Companies trading: 804*
* As at 31 July 2019

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 86*

Total number of NEX Growth Market Companies trading: 84*
* As at 31 July 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 86*

Total number of Standard List Companies trading: 84*
* As at 31 July 2019

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What’s Cooking in the IPO Kitchen?

NEX

Freyherr International Group PLC, the Medicinal Cannabis holding company established in 2016,  is planning to list on the NEX exchange on the 13 August.

 

Breakfast Buffet

Braveheart Inv Group (BRH.L) 12.50p £3.59m

Braveheart Investment Group, the fund management and strategic investor group, announced its audited annual results for the financial year ended 31 March 2019.

Total comprehensive loss for the year was £1,733,000, down from income of £1,493,000 last year. This is despite investment management revenue increasing to £181,000 from £104,000 the previous year. The company’s cash pile has increased to £1,207,000 from £1,134,000. The company has seen a like-for-like loss of 1.04 pence per share and proposes a dividend of 0.5p a share.

In the CEO’s report, it was stated that the balance sheet loss does not relate to the underlying operational businesses because as they have  “acquired in excess of 50% of the issued share capital of two companies and are providing significant management resource to them”, they are deemed to have ‘control’.  The consequence of this is that they have had to consolidate the accounts of these two companies, which form a part of their Strategic Investments, into their Group accounts.

 

Uniphar (UPR.L) 1.16p £282.72m

Uniphar, the Irish pharmaceuticals wholesaler and healthcare services group, today announced the successful completion of the acquisition of Durbin plc and Durbin Inc (together “Durbin”), a specialist provider of pharmaceuticals with offices in the UK and the US supplying over 160 countries.

Durbin will be integrated into Uniphar’s Product Access division, providing the Group with the opportunity to become a leading player in the provision of On-Demand and Exclusive Access services on a global basis. Durbin has approximately 45 years’ experience in shipping unlicensed and hard-to-find medicines and has built up significant global capability in managing access programmes for pharmaceutical manufacturers.

The Group’s Product Access business will now comprise more than 170 employees, supplying more than 5m units to more than 160 countries on an annual basis and will manage access programmes for 36 global manufacturers, from offices in Ireland, the UK and the US.

The acquisition of Durbin was financed out of the proceeds of the placing completed alongside the listing of the Group’s shares on 17 July 2019.

 

Portmeirion Group (PMP.L) 980.00p £107.64m

Portmeirion, a British pottery company based in Stoke-on-Trent, today announced its performance for the six months ended 30 June 2019.

First half results are in line with their expectations set out in the 14 May 2019 trading update and they anticipate achieving full year expectations. The period saw revenue of £34.9m (2018: £36.9m), down 5.4%. Headline profit before tax was £0.5m (2018: £2.1m). There was revenue growth of 9.2% in the UK, their largest market, and their US market performed in line with their plan in the first half with positive signs for full year.

Export market sales were down as reported in the May trading update. Considerable progress has been made since May to resolve short term issues in export markets including new product development for Korea resulting in a stronger order book for the key second half trading period.

Portmeirion maintained their interim dividend at 8.00p per share (2018: 8.00p per share).

The Group also completed the $12m acquisition of Nambé LLC, a US premium homewares business in July 2019 that provides exciting opportunities for sales growth and synergies across Portmeirion’s key markets and gives added scale to their existing US sales operation. The acquisition is expected to be earnings enhancing in the first full year of ownership.

 

Eland Oil and Gas (ELA.L) 119.20p £259.85m

Eland Oil & Gas , an oil & gas production and development company operating in West Africa with an initial focus on Nigeria, announced that first production from the Gbetiokun oilfield was achieved via the early production facility  at licence OML 40.

Following mobilisation of the EPF to the Gbetiokun field and completion of all pre-commissioning checks throughout July, the field came onstream on 31 July 2019. In line with expectations, initial gross production will rise to approximately 12,000 barrels of oil per day  (net: 5,400 bopd) from the Gbetiokun-1 and Gbetiokun-3 wells over the next seven days.

The EPF will process all reservoir fluids produced under the initial phase of the Gbetiokun development. The facility has a nominal capacity of 22,000 bopd, which will allow for production from the additional Gbetiokun development wells being drilled in 2019.

George Maxwell, the CEO of Eland, commented: “Gbetiokun will deliver additional cash flow for Eland” and the company looks ahead to “the development of the licence going forward, with the further infill drilling on Gbetiokun and Opuama and the near-field exploration of Amobe prospect in 2019.”.

 

Trans-Siberian Gold (TSG.L) 82.50p £76.70m

Trans-Siberian Gold, a low cost, high grade gold producer in Russia, announced its production update at the Asacha Gold Mine for the three months ended 30 June 2019 and the first six months of 2019.

Gold production remains stable YoY at 9,544 oz (Q2 2018: 9,260oz). Silver production remained largely unchanged YoY at 27,629 oz (Q2 2018: 26,456oz). There was a  33% increase in average quarterly gold grade YoY at 8.4 g/t (Q2 2018: 6.3g/t),  and Gold revenue increased by 11.5% YoY to $13,276,000 (Q2 2018: $11,906,000). Silver revenue also increased 442.8% YoY to $484,000 (Q2 2018: $89,000).

Total Q2 revenues increased by 14.7% YoY to $13,761,000 (Q2 2018: $11,995,000) and there was  record H1 revenue of $29,998,000, up 8.6% YoY (H1 2018: $27,605,000).

The company is on track to meet full year production guidance.

 

Bidstack Group (BIDS.L) 32.25p £79.90m

Bidstack Group, the in-game advertising group, has, today, acquired the entire issued share capital of Minimised Media which trades under the name “Pubguard”.

Minimised Media have built software technology that automatically reviews advertisements served in-app and on mobile and desktop web content to identify offensive, malicious, illegal ad content and malware which can be blocked at a clients’ discretion.

Brand safety and ad fraud have been hot topics in the advertising industry for a number of years.  According to a recent Brand Safety report 65% of advertisers are present in non-brand safe environments and there have been numerous calls to tackle these challenges from industry leaders.

Bidstack intends to maintain and utilise the Pubguard platform to enhance its current technical and commercial offering as part of its Software Development Kit. The Directors believe the acquisition will provide a ready-made solution to enhance the Bidstack platform and save the Company several months of development time and resource.

 

Alba Min Res (ALBA.L) 0.20p £6.88m

Alba Mineral Resources, a mineral exploration and development company with a diversified portfolio of mining assets and oil & gas investments, announced that it has been informed by UK Oil & Gas Plc , the majority owner of Horse Hill Developments Limited, the operator of Horse Hill licences PEDL 137 and PEDL 246, containing the Horse Hill-1 oil discovery, of the following:

In preparation for the late summer start of the Horse Hill-2/2z Portland drilling programme, test production has been switched from the Portland to the deeper Kimmeridge oil pool.

From 6th July to date, the Phase 2 Kimmeridge test has produced a further 5,524 barrels (“bbl”) of dry Brent quality oil (of circa 39.5 API), such that total aggregate Portland and Kimmeridge test oil production from the Horse Hill oil field now totals 60,186 barrels

Total Kimmeridge production to date, now exceeds 30,618 bbl with no apparent produced formation water.

 

Bilby (BILB.L) 32.00p £13.07m

Bilby, a leading gas heating, electrical and building services provider, announced the following trading and operational update:

Further to the announcement on 5 March 2019, the Board continues to expect to report positive underlying EBITDA of between £2.0m to £3.0m for the year ending 31 March 2019. 

Initial work undertaken as part of a review has conclusively established that the Group’s loss-making activities have been isolated to historical management failings in the Group’s subsidiary company, P&R where, as previously announced, the Group has been materially impacted by two major contracts .

In July 2019, the Group closed P&R’s gas servicing division and restructured all ongoing profitable building services contracts to be serviced under the management responsibility of the Group’s subsidiary Purdy. This action has eliminated the losses from the division.

The other four divisions in the Group  continue to trade in line with management expectations.

 

Ashley House (ASH.L) 6.75p £4.72m

Ashley House, a leading health and social care property partner working with providers and commissioners in the public, private & community sectors, advised that due to reasons outside of the control of the Morgan Ashley joint venture, the three extra care schemes mentioned in that update have still not reached financial close.

As a result, inflows to Ashley House are delayed and the Company is managing its cash carefully. The Board is currently exploring a number of sources of further funding to best manage this. The Company will continue to update the market as appropriate.

 

Good Energy Group (GOOD.L) 160.50p £26.65m

100% renewable electricity supplier and localised self-generation power service provider, Good Energy Group, announced it has been awarded permanent derogation from the price cap by the energy regulator OFGEM, in recognition of the many ways in which the Company continues to support renewable energy generation across the UK.

OFGEM’s decision recognises Good Energy’s commitment to providing their customers with 100% renewable power and carbon neutral gas in a way which supports increased renewable generation and the transition to a low carbon economy.

 

Head Chef:

Derren Nathan
0203 764 2344
derren.nathan@hybridan.com

*A corporate client of Hybridan LLP

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