Small Cap Feast

Small Cap Feast – 01 March 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 908

Total number of AIM Companies trading: 837*
* As at 27 February 2019

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 89*

Total number of NEX Growth Market Companies trading: 87*
* As at 27 February 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 161*

Total number of Standard List Companies trading: 142*
* As at 27 February 2019

Dish of the Day:

United Oil & Gas (UOG) has moved to AIM from the Main Market (standard).

Off the Menu:

No Leavers Today

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

DWF, a global legal business,  expects to raise primary gross proceeds of approximately £75m. Due March

US Solar Fund, a newly-established investment company focused on investing in solar power assets mainly in the US, looking to raise $250m at $1. Expected 20 March

AIM

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 $515m.

Breakfast Buffet

Alpha Growth (ALGW.L) 1.6p £2.08m

The financial services specialist in the growing Senior Life Settlement (SLS) asset class, announced the acquisition of Colva Insurance Services Corp. 

Colva is a specialist actuarial service provider to the SLS industry and has a number of key clients, primarily based in the US.

Alpha will acquire the entire share capital of Colva for a total consideration of £77,727  in shares.

The major shareholder of Colva is Rajiv Rebello, who founded Colva in order to use his first hand actuarial and life insurance expertise to minimize premium payments and maximize returns for life insurance and life settlement investors. Rajiv is a Fellow of the Society of Actuaries (FSA) and prior to Colva worked on AIG’s 4,000+ policy life settlement portfolio with $18bn in face.  He will join Alpha as Chief Actuary and Director of Investment Analytics.

 

Future (FUTR.L) 740p £561.64m

The global platform for specialist media, announced the acquisition of MoNa Mobile Nations, a leading global digital publisher focused on consumer electronics and based in the US .

The initial cash consideration is $55m with a further $5m to be satisfied through the issue to the vendors of 615,166 new ordinary shares.

Further variable deferred consideration up to a total value of $60m  based on  2020 targets. The deferred consideration is expected to be split equally between cash and the issuance of new shares in Future, although Future retains the right to pay the full balance in cash.

Mobile Nations achieved revenue of $16.4m and EBITDA of $8.2m in FYDec18 – Organic revenue growth of 31% and EBITDA growth of 52% yoy. Expected to be earnings enhancing in the current financial year and materially earnings enhancing in the first full year following completion.

 

MaxCyte (MXCT.L) 177.5p £91.12m

The global cell-based medicines and life sciences company, announced that it has expanded its relationship with Kite, a Gilead Company, by entering into a multi-drug clinical and commercial agreement. Under the terms of the agreement, Kite will use MaxCyte’s Flow Electroporation® Technology to enable non-viral cell engineering for development of multiple CAR-T drug candidates for up to 10 targets.

“We’re excited to take our relationship with Kite further into product development, providing the company the ability to leverage MaxCyte’s versatile cell engineering platform to enable the power of gene-editing for clinical and commercial development of critical new CAR-T therapeutics.”

 

PetroTal (PTAL.L) 14.50p £77.97m

The BN 95-2-2-2XD oil development well  commenced drilling operations on Feb 26, 2019. The well is to be completed as a producer in the Vivian formation in the northern portion of the Bretaña structure, progressing the first phase of development of the Bretaña oilfield.  The well will be directionally drilled to 3,040 meters total depth and will take up to 45 days to drill and complete.  The well is the first in a program of three new producers designed to boost production to over 5,000 barrels of oil per day by mid-year 2019.  

In addition to the primary objective of completing the well as an oil producer in the Vivian Formation, the drilling plan includes a deeper exploration section to test a secondary objective in the underlying Chonta formation. The Chonta formation has been a secondary producer of oil in the fields north of Bretaña.

 

Vertu Motors (VTU.L) 37p £145.28m

FYFeb19 update from the UK automotive retailer.

“The Board expects the trading performance for the year ended 28 Feb 2019 to be in line with current market expectations. Whilst the outlook remains uncertain, the Group continues to be very well positioned to take full advantage of tougher markets which will, as has been the case in previous sector downturns, provide opportunities.  We have a strong balance sheet, underpinned by a property-rich asset base with low levels of debt, a clear focus upon capital allocation and we have an outstanding and stable team.”

Group revenues +5.2% (lfl 1.4%), Service revenues +14.2% (lfl 7.4%). Used retail vehicle volumes +6.2%. New down 4.8%. Fleet down 29.1%.

 

Omega Diagnostics (ODX.L) 13.25p £16.82m

The medical diagnostics company focused on allergy, food intolerance and infectious disease, announced the appointment of Jeremy Millard as NED to the Board with immediate effect, after a thorough search process.

Jeremy has 20 years investment banking experience and was previously a partner at Smith Square Partners LLP where he provided strategic and corporate advice to clients in the science, technology and telecommunications sectors, prior to which he headed up the technology practice at Rothschild in London. Jeremy is currently a NED and chairman of the audit committee of AIM-listed Idox plc and a NED of AIM-listed Ilika Plc.

 

IXICO (IXI.L) 31.5p £14.03m

The data analytics company delivering insights in neuroscience, announced that it has been chosen as a small-to-medium enterprise (SME) partner in the newly established London Medical Imaging & Artificial Intelligence Centre for Value-Based Healthcare. With the official public launch having taken place yesterday (28 Feb), the centre has been established as part of the UK Government’s Industrial Strategy Challenge Fund.

Led by King’s College London, the new Centre will develop and train sophisticated artificial intelligence (AI) algorithms from NHS medical images and patient data to provide tools for clinicians to speed up and improve diagnosis and care across a number of patient pathways including dementia, heart failure and cancer.”

 

Sirius Real Estate (SRE.L) 60p £1,238.54m

The operator of branded business parks providing conventional space and flexible workspace in Germany, has formed a real estate investment joint venture with clients represented by AXA Investment Managers – Real Assets in which AXA IM – Real Assets, acting on behalf of its clients, will own a 65% interest and Sirius will own the balance of 35%.

AXA IM – Real Assets will acquire, on behalf of its clients, from Sirius a 65% stake in five single asset SPVs through which it currently owns two business parks located in Berlin  and one in each of Mainz, Nurnberg and Bayreuth. The implied property value of €168m equates to a gross yield for the portfolio of 6.2% Total cash commitment from AXA amounts to €43.9m. The transaction is expected to generate net cash proceeds of more than 70m for Sirius.

 

Octagonal (OCT.L) 1.75p £9.95m

“Further to the announcement dated 8 Jan 2019, Octagonal Plc announced that it has had formal confirmation from the Securities and Futures Commission of Hong Kong that it has granted GIS FS (HK) Ltd, a wholly owned of the Company’s wholly owned subsidiary GIS, the licence to carry on regulated activity and have further approved John Gunn and Stephen Marcon as RO’s (Responsible Officers). The Company will now commence operations in Hong Kong including the provision of Type 1 regulated activity (ies) for professional clients under the Securities and Futures Ordinance (SFO). This Type 1 regulated activity(ies) includes the provision of dealing in securities, stock options, and bonds, but also includes the provision of providing other additional GIS core services such as safe custody and trade settlement.”

 

AFH Financial (AFHP.L) 340p £142.81m

AGM Statement from the leading financial planning led wealth management firm.

“2018 was a period of exceptional growth for AFH as we continued to deliver on our vision of becoming the leading financial planning-led wealth manager in the UK. To this end, we produced our fifth year of improved profitability since joining AIM in 2014 with record revenues of £50.7m, up 51% from 2017, an increase in EPS of 43%, an underlying EBITDA margin of 21% and a 50% increase in dividend per share to 6p, from the previous financial year. “16 acquisitions were completed in the year.”

“Looking to the current financial year, trading remains in line with expectations. We have continued the momentum of 2018 into the first four months of our new financial year with four acquisitions already completed.”

 

Head Chef:

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

*A corporate client of Hybridan LLP

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