Small Cap Feast

Small Cap Feast – 01 May 2019

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What’s Cooking in the IPO Kitchen?

Main Market

Finablr plc— global platform which provides Cross-Border Payments and Consumer Solutions, Consumer Foreign Exchange Solutions and B2B and Payment Technology Solutions to consumers and businesses in the large and growing payments and foreign exchange market is looking to list on the Main Market plans to raise $200m, expected May 2019

Main Market (Standard)

IMC Exploration Group (NEX: IMCP), focused on acquiring and exploring prospecting licence areas which have high potential for natural resource, is looking to admit its shares to the standard list and will withdraw for the NEX Exchange. Expected 11 June 2019


SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m

Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019.

Distribution Finance Capital Holdings plc — specialist lender which builds relationships with manufacturers and then provides working capital solutions up and down their supply chains to drive their growth is looking to join AIM. No raise, secondary offering of £19.8m at 90p, expected market cap of £95.98m. Expected 09 May 2019.

Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019

NEX Exchange

Arbuthnot Banking Group plc, primarily involved in banking and financial services including commercial banking, private banking, wealth planning and investment management, is looking to joining the NEX Exchange Growth Market. Expected 17 May 2019

Breakfast Buffet

Nichols (NICL.L) 1,782p £657.73m

Nichols plc, the soft drinks group, will make the following statement at the Group’s AGM

Total Group revenue for the first quarter of 2019 was £30.6m (2018: £27.8m).

International sales growth in Q1 has been strong with revenue totalling £6.5m, which is 24.4% ahead of the prior year period (Q1 2018: £5.2m). This performance was anticipated as the Middle East returned to growth following the relatively softer comparatives in Q1 2018.

In the UK, first quarter sales totalled £24.1m which was 6.8% ahead of the prior year period (Q1 2018: £22.5m). 

Whilst we believe that trading conditions will remain challenging in 2019, we anticipate that full year earnings will be in line with market expectations.


Hummingbird Resources (HUM.L) 16.75p £58.36m

Hummingbird Resources, announced an update on the 25-year Mineral Development Agreement (MDA) with the Government of Liberia (GoL) over a land package of approximately 2,000km2, which includes the Company’s 4.2Moz Dugbe Gold Project. 

The MDA has now been signed with the Government of Libera, attested to by the Minister of Justice, ratified by the National Legislature of the Republic of Liberia, approved into law by the President of the Republic of Liberia and published in handbills signifying the completion of all necessary steps for the MDA to become immediately effective.  This will provide the necessary long-term stability and framework for the next steps at Dugbe.  The Dugbe MDA is the first gold MDA to be negotiated with the Government of Liberia following a discovery in over 10 years and represents a huge milestone for both the Government and the Company.


TP Group (TPG.L) 6.7p £48.9m

TP Group, the specialist services and engineering group, announced the acquisition of the entire issued share capital of Sapienza Consulting Holding BV. for an initial cash consideration of 10m and 1.5m by way of the issue of 20,612,865 new ordinary shares of 1p each in the Company. In addition, a maximum of €2m may also be payable in cash on delivery by the vendors of certain transition activities within two years following completion of the acquisition.

The directors of TP Group expect that the acquisition of Sapienza will be earnings accretive to the Group for the year ending 31 Dec 20191 and significantly earnings accretive for the year ending 31 Dec 2020. The cash element of the consideration will be funded from existing cash resources. The deal is to be completed on a debt-free, cash-free, normalised working capital basis, with a two-year lock-in on the Consideration Shares.


Tlou Energy (TLOU.L) 7p £26.1m

Tlou Energy announced that Botswana’s Department of Environmental Affairs has approved the Environmental Impact Statement (“EIS”) for up to 20MW Coal Bed Methane (“CBM”) Power Generation, a 66kV Transmission Line to Serowe and a Solar Farm up to 20MW.

Downstream EIS approval is a major achievement as it is the final environmental authorisation required to move the Lesedi CBM Project through to commercialisation;

The EIS is for all the specified project activities in the Company’s application and is valid for 30 years;

The approval provides the Company the flexibility to rapidly expand to 20MW of CBM generation and provides additional approval for a Solar Farm of up to 20MW;

Upstream EIS approval is already in place.


Osirium Technologies (OSI) 95p £12.88m

Osirium Technologies, a leading vendor of cloud-based cybersecurity software, announced the immediate availability of Opus, its secure IT Process Automation solution.   

Opus builds on Osirium’s proven success in Privileged Task Automation, providing a highly-flexible platform for automating essential IT processes.  The product has been designed to address currently unresolved challenges of overloaded IT teams, growing backlogs of customer requests and increasing needs to improve security.


Kromek (KMK.L) 25.8p £87.8m

Kromek, a worldwide supplier of detection technology focusing on the medical, security screening and nuclear markets, announced that it has received an order expansion under its five-year contract in the security screening market that was awarded and announced on 22 Feb 2017. This order expansion has increased the total value of the contract to a minimum of $5.8m over the period, with the additional $2.7m expected to be recognised over the next 24 months.

Kromek commenced delivery under the contract in 2017 with orders as expected for the first two years. For years three and four, the customer has increased its order quantities resulting in the contract now having a minimum value of $5.8m, compared with the original $3.1m minimum, over the five-year period.


Augean (AUG.L) 105p £95.6m

Augean, one of the UK’s leading specialist waste management businesses provides the following trading update. Due to stronger Group trading performance in the first quarter, the Group’s profit for the year to 31 Dec 2019 is expected to be materially ahead of market expectations. Results have benefitted from higher landfill volumes across most waste types, increased radioactive waste profit and strong performance of both the treatment and North Sea businesses.

The Group expects to announce its Interim Results for the six months ended 30 June 2019 on 17 July.


First Property Group (FPO.L) 50.50p £52.8m

First Property Group, the award winning property fund manager and investor with operations in the UK and Central Europe, reported that its PBT for the year to 31 March is likely to significantly exceed market expectations of £6.8m.

Funds under management at the year-end amounted to £705m (2018: £626m), an increase of 12.6% from the prior year. Of this some £611m was held for clients (2018: £454m), an increase of 34.6% from the prior year.


Forbidden Technologies (FBT.L) 6.25p £18.47m

Forbidden Technologies, the developer and seller of the market-leading cloud video platform, Blackbird, announced that Deltatre has signed an agreement to extend its use of Blackbird for a further 12 months.

Deltatre is a leading global provider of digital and broadcast services within the sports sector. The company works with rights owners and rights holders to grow the popularity of sports by giving fans even more exciting and immersive experiences. Achieving this enhances the brands of sports leagues, federations, franchises, TV networks and other content providers.

Deltatre uses Blackbird for the fast turn-around of long and short-form game highlights and clips for a wide range of sports including rugby, cycling and athletics. Once clipped, edited and enriched, game highlights can be distributed to social, mobile, web, over-the-top (“OTT”) and on-demand platforms simply and quickly. Deltatre runs Blackbird on the Microsoft Azure cloud platform with users able to rapidly edit, manage and distribute content collaboratively from North America and Europe, all through a browser using limited bandwidth.


Motif Bio (MTFB.L) 10.4p £29.7m

Motif Bio, a clinical-stage biopharmaceutical company specialising in developing novel antibiotics, announced that the Company has signed an agreement with Lamellar Biomedical Limited (Lamellar) under which Motif Bio will conduct an in vivo pre-clinical study evaluating iclaprim in combination with Lamellar’s patented LAMELLASOME™ technology. Iclaprim has been granted U.S. orphan drug designation for Staphylococcus aureus pneumonia in patients with Cystic Fibrosis (CF). Lamellar’s LAMELLASOME™ candidate LMS-611, which has mucokinetic (mucus clearing) properties, has demonstrated antibiotic potentiation (the enhancement of certain properties of antibiotics) and has European orphan drug designation for CF.

The companies believe that, based on pre-clinical data with the two individual components, the combination could be a promising potential treatment for lung infections in patients with CF.


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Derren Nathan
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