Small Cap Feast
Small Cap Feast – 02 August 2019
Dish of the Day:
No Joiners Today
No Joiners Today
Off the Menu:
Following its cash acquisition by a subsidiary of Macquarie European Infrastucture fund, KCOM Group, , has cancelled its listing in the premium segment of the official list. Safecharge, a payments solution provider, has cancelled its listening on AIM after being acquired for $889m by Nuvei, a Montreal-based payment technology firm.
Following its cash acquisition by a subsidiary of Macquarie European Infrastucture fund, KCOM Group, , has cancelled its listing in the premium segment of the official list.
Safecharge, a payments solution provider, has cancelled its listening on AIM after being acquired for $889m by Nuvei, a Montreal-based payment technology firm.
What’s Cooking in the IPO Kitchen?
Freyherr International Group PLC, the Medicinal Cannabis holding company established in 2016, is planning to list on the NEX exchange on the 13 August.
Northbridge Ind Serv (NBI.L) 136.00p £37.66m
Northbridge, the industrial services and rental company, issued the following pre-close trading update in advance of its interim results announcement for the six months ended 30 June 2019, which is scheduled to be released on 26 September 2019.
Trading in the six months under review continued to show a much improved performance since last year and has been consistent with the Group’s forecasts. As mentioned in the AGM statement on 4 June 2019, the impact of a recovery in revenue results in their operational gearing benefitting cash flow significantly as well as continuing to improve EBITDA.
Recovery in Northbridge’s key end markets including the oil and gas market, supported by stable pricing and a gradual improvement in overall rig counts, is now beginning to have a beneficial impact on both of their businesses, Crestchic Loadbanks and Tasman Oil Tools. Consequently, the Group is confident that the results for the full year ended 31 December 2019 will be in line with management’s expectations.
Airea (AIEA.L) 40.00p £21.09m
Airea, whose principal activity is the manufacturing, marketing and distribution of commercial floor coverings, today announced its interim results for the six months ended 30 June 2019.
The period continued the strategic progress made in recent periods; however, high levels of market uncertainty within the economy resulted in tougher market conditions during the second quarter slowing the Group’s financial performance.
Despite strong growth in the order book and increased sales internationally, revenue and operating profit are below the corresponding period driven by the uncertainty in the market and the economic environment. This affected the timing of customer call offs within the order book and the Group’s decision to increase inventory to prepare for potential Brexit challenges, had the UK left the EU on 31 March 2019, had a significant financial impact on operating profit and cash flow.
Revenue for the period was £8.9m (2018: £9.1m). The operating profit was £1,085,000 (2018: £1,481,000). After charging pension related finance costs of £143,000 (2018: £158,000) and incorporating the appropriate tax charge the net profit for the period was £935,000 (2018: £955,000). Basic earnings per share were 2.26p (2018: 2.31p).
Trackwise Designs (TWD.L) 150.00p £21.20m
Trackwise Designs, a leading provider of specialist products using printed circuit technology, has signed a Collaboration Agreement with GKN Aerospace, the world’s leading multi-technology tier 1 aerospace supplier, for the industrialisation of GKN Aerospace Type 8 Ice Protection System. The Collaboration Agreement will see GKN Aerospace and Trackwise build upon existing development work by advancing the manufacture of Ice Protection Systems to rate production level capability.
Philip Johnston, Chief Executive Officer of Trackwise, commented, “Following nearly two years of joint product development, this is a significant milestone in our engagement with GKN, taking us a step closer to aerospace production at scale. The capabilities involved are wholly aligned with those being developed by Trackwise for Improved Harness Technology™ and while aerospace qualification is a lengthy process, the size of the potential end markets means that the future revenue potential for our technology is significant.”
Provexis (PXS.L) 0.31p £6.15m
Provexis, the business that develops, licenses and sells the proprietary, Fruitflow heart-health functional food ingredient, has entered into a collaboration agreement with By-Health Co., Ltd. , a £3bn listed Chinese dietary supplement business, to support the planned launch of some Fruitflow based products in the Chinese market.
The agreement has been structured on an open-ended framework basis, enabling the parties to conduct a number of different projects over an unspecified period of time under the one overriding agreement, with all projects envisaged to be at By-Health’s sole expense. It is envisaged that projects conducted under the agreement will be focussed on specific areas of commercial focus for By-Health, and the first project which has been agreed will concentrate on the use of Fruitflow with nitrates in exercise, an area of considerable commercial interest to By-Health in China.
The Fruitflow with nitrates in exercise project will provide gross income to Provexis in excess of £55k, to include an element of overhead recovery. The project will not affect the ownership of Provexis’ existing, substantial intellectual property for the Fruitflow with nitrates formulation, which already has patents granted in the UK and Australia. Further patents for this formulation are being sought in Europe, the US, China and eleven other territories with protection out to December 2033.
Inspired Energy (INSE.L) 13.00p £91.03m
Inspired Energy, a leading energy consultant to UK and Irish corporates, has today completed the acquisition of an initial 40 per cent of the issued share capital of Ignite Energy LTD. Inspired has paid net £5.0m, calculated on a cash free debt free basis, for the Strategic Investment. Inspired also has an exclusive option, until 31 July 2021, to acquire the balancing interest of 60 per cent under the terms of an option agreement. The Board believes the strategic investment accelerates the Group’s ability to deliver on the stated strategy to grow its market share within the third-party intermediary optimisation services market.
Ignite offers a full spectrum of energy management services, with a strong focus on delivering energy efficiency projects and optimisation services to large, multi-site estate intensive, commercial energy customers, including Halford’s, SSP, Network Rail and WH Smith. Ignite’s optimisation services support clients through increasing the effectiveness of their energy consumption by implementing large scale energy demand reduction projects.
appScatter (APPS.L) 17.25p £16.27m
appScatter Group the app management and data intelligence platform, announced its audited results for the year ended 31 December 2018.
They completed the acquisition of Priori Data GmbH for £10.6m, enhancing the capabilities of the Group to provide market leading, data-led app insights. The completion of the acquisition of Abilott Limited for £0.8m initial consideration also occurred in this period, enabling the Group to increase its offering of security products and improve margins.
£6.6m in cash was raised, £2.0m of which was used to fund the cash element of Priori & Abilott acquisitions. Funds were raised at a significant premium to the prevailing market price.
Operating cash flow improved by £2m to an outflow of £6.2m, down from £8.2m in 2017.
Strategic partnerships were concluded with Dow Jones, Iron Source and IHS.
Goals Soccer Centres (GOAL.L) - SUSPENDED
Goals Soccer Centres, an operator of dedicated 5-a-side football centres based in East Kilbride, announced that following ongoing detailed investigatory work into the historic accounting policies and practices used by the Company in the recognition of revenue and the preparation of financial statements, it has become very recently evident that there has been improper behaviour within the Company. This has involved a number of individuals for a period since at least 2010. Due to these initial findings, there is material uncertainty in relation to the historic financial statements published by the Company. Work on the Company’s full-year 2018 audit has therefore been suspended until further clarification on the historic financial statements has been obtained.
Discussions with the debt providers remain positive and they have confirmed to the Company that the existing debt facilities will remain in place post the initial 31 July 2019 review date, albeit that one of its covenant thresholds has been exceeded.
Autins Group (AUTG.L) 23.50p £6.30m
Autins Group, a leading designer, manufacturer and supplier of acoustic and thermal insulation solutions for the automotive sector, today announced a proposed Placing of new ordinary shares in the Company to raise gross proceeds of not less than £3.5m.
A minimum of 17,500,000 new ordinary shares will be placed at a price of 20 pence per share.
The placing to be conducted by way of an accelerated bookbuild process by Nplus1 Singer Advisory.
The Placing Price represents a discount of 29.8 per cent. to the Closing Price of 28.5 pence on 1 August 2019 being the last practicable trading day prior to release of the announcement. The net proceeds of the Placing will be used to fund automation of certain of the Company’s processes, to accelerate the Company’s development in certain market segments, and for general working capital purposes.
Ultimate Sports Group (USG.L) 16.50p £5.87m
Ultimate Sports Group, a UK based venture capital organisation investing in sports related projects, announced the appointment of Matthew Farnum-Schneider as Chief Executive Officer with effect from 1 August 2019.
Matthew Farnum-Schneider, aged 45, is an experienced senior executive, having most recently been a Managing Director and Senior Adviser to the CEO at Credit Suisse between 2015-2019, prior to which he was Managing Director at the Chief Executive Office of Prudential PLC between 2014-2015. Between 2012-2013, Matthew was Director of International Economics of the White House National Security Council.
Hummingbird Resources (HUM.L) 22.25p £76.04m
Hummingbird Resources, an African gold producer, developer and explorer, announced its production results for the quarter ended 30 June 2019.
Production has increased at its Yanfolila Gold Mine and costs have decreased compared to the last two quarters. 27,466 ounces (‘ozs’) of gold have been poured, a 15% increase on the last quarter (23,807 ozs in Q1 2019). 27,701 ounces of gold were sold at an average price of US$1,311 per ounce.
The company is targeting 130,000 ozs annual production from 2020.
0203 764 2344
*A corporate client of Hybridan LLP
This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.
The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.
The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).
Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.
This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.
In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.
Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.
Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.
Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.
This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.
MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.
Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.
If you would like to unsubscribe, please email email@example.com with “unsubscribe me”.