Small Cap Feast

Small Cap Feast – 02 December 2019

Dish of the Day:

Off the Menu:

What’s Cooking in the IPO Kitchen?

The Pebble Group, a provider of products, services and technology to the global promotional products industry, announces its intention to seek admission of its shares to trading on the AIM market of the London Stock Exchange, which is expected to take place in early December 2019.The Group delivered revenue of £99.8m in the year ended 31 December 2018.No mention of bottom line and a suggestion that funds raised would provide an exit to private equity shareholders and the repayment of debt. Offer TBA.
MJ Hudson Group PLC, the financial services support provider to Alternatives fund managers and asset owners, is planning an AIM IPO. Deal details TBC but expected admission date mid-December.
Main Mkt Standard
Taseko Mines – North American focused copper producer and developer, seeking a London Listing. No capital raise. Due 22 Dec

Breakfast Buffet

Touchstar (TST.L) 37.5p £3.2m

The company specialising in real time data capture and mobile computing solutions for the logistics and transportation sector, announces it has agreed the sale of the trade and assets of its non-core business, On-board Retail, to Jon Hall, a director of the Company, for a consideration of £10,000 payable in cash on completion plus 15% of the gross revenue of certain contracts between completion and the second anniversary of completion.
In addition, the Company will be retaining deferred income received in respect of certain On-board contracts amounting to £75,000. Also pursuant to the deal it has been agreed that Jon Hall will stand down as a director with immediate effect.
For the year ended 31 December 2018 Onboard’s contracts generated revenue of £695,000 and the business had direct and attributable costs of circa £800,000. Subsequently revenue has declined substantially.

SDI Group (SDI.L) 70p £68m

Acquisition on 29 November 2019 of Chell Instruments Limited (“Chell”) for a consideration of £4.3m plus an additional cash payment for net assets at completion. Chell specialises in the design, manufacture and calibration of pressure, vacuum and gas flow measurement instruments for a variety of sectors including aerospace, vehicle aerodynamics, gas and steam turbine testing and power generation industries
· For the year ended 31 December 2018, Chell achieved revenue of £4.7m, gross profit of £2.5m and profit before tax of £0.78m
· The Board has identified areas within Chell that have the potential for growth using the strong management team the company has recruited over the years
· The Acquisition is expected to be earnings enhancing in its first full year of ownership

Pelatro (PTRO.L) 39p £12.7m

The Group has been selected by one of the largest global telcos in the world, with significant operations in Asia (the “Telco”), to implement its Contextual Marketing Platform as well as its Unified Communication Manager software. The Contract will be delivered on a managed service basis for an initial period of 5 years, with a significant proportion of the revenue on a fixed basis as well as an element of gain share, such that the expected total revenue over the 5 year period will be between $10.0m to $12.0m. With the Contract having taken significant time and management resource to secure, the timing of conversion of certain other pipeline opportunities has been impacted. Therefore, the Group now expects to end the year to 31 December 2019 below revenue expectations, at not less than $6.5m, with $6.3m booked to date.

Yourgene Health (YGEN.L) 13.6p £80.9m

HYSep19 results.
Revenues increased by 97% to £7.8m (H1 2018-19: £3.9m)
– Organic growth of 56%, excluding contributions from the Elucigene acquisition
· Gross profit up 141% to £4.7m (H1 2018-19: £2.0m)
· Adjusted EBITDA of £0.3m (H1 2018-19: loss of £2.5m)
Net cash (cash less borrowings) significantly improved to £3.6m .
“At this interim stage we are firmly on target to deliver full year results in-line with market expectations, with consensus analyst forecasts looking for revenues of nearly £17m for the year ending 31 March 2020, a considerable jump from last year’s £8.9m.”

Proton Power (PPS.L) 22.5p £140m

The designer, developer and producer of fuel cells and fuel cell electric hybrid systems with a zero-carbon footprint, announces that it has agreed with Fincantieri, one of the world’s largest shipbuilding groups, to provide a 38 kW fourth generation fuel cell, to validate it as a pilot project for one of their vessels. The order includes a feasibility study for the integration into the first ship and other potential collaborations.

Maestrano (MNO.L) 1.65p £2.2m

FYJun19 results.
Revenue down 7% to £904k. Loss before tax of £2.7m. Lost its major customer unexpectedly towards end of the period.
The Company spent significant time and effort from May 2019 onwards and into the subsequent financial period assessing its strategy and generating various options, as well as seeking to conserve cash, and accordingly investors should note that the revenue and profit outlook for the year to 30 June 2020 is largely subject to events occurring after the end of the year to 30 June 2019 and in particular the acquisition of Airsight that was approved by shareholders on 31 October 2019. It is noted that revenue from the US bank continued beyond 30 June 2019 but will cease during the year ending 30 June 2020. Airsight software performs a similar function to that of Maestrano, capturing, analysing and reporting on large datasets within the transport sector in this case, but with the addition of sophisticated artificial intelligence algorithms.
As of 30 June 2019, the Company had cash and receivables totalling £2,739,986.

Altus Strategies (ALS.L) 4.875p £8.7m

JV with Glomin Services Ltd Glomin on the Company’s Lakanfla and Tabakorole gold projects located in western and southern Mali respectively. The JV Agreement is pursuant to the term sheet between Altus and Glomin as announced by the Company’s on 22 August 2019.
o Altus will receive up to US$1,450,000 in milestone cash payments. Altus will retain a 2.5% Net Smelter Return (“NSR”) royalty on the Projects. Altus will be the operator of the JV during the initial earn-in period. Glomin will earn up to an 80% initial interest in the Projects.
· Initial 3,500m drilling campaign to commence at Lakanfla in Q1 2020 -Lakanfla historical drill results include: 26.0m at 5.10 g/t Au and 12.0m at 9.78 g/t Au/. Lakanfla is located 6km southeast of the Sadiola gold mine
Ground magnetics to commence at Tabakorole in Q1 2020 followed by 1,500m of drilling -Tabakorole historical drill results include: 60.0m at 2.92 g/t Au and 44.0m at 3.29 g/t Au

Appreciate Group (APP.L) 49p £91m

Appreciate Group (APP.L) 49p £91m
The gifting and engagement company, Appreciate Group, has launched the UK’s first fully digital multi-brand gift card with add-to-wallet capabilities.
Appreciate Group has collaborated with payments technology business CleverGift to launch the UK-first technology, which is available for consumers and business now through, the nation’s most popular online voucher store.
The Select Digital Gift Card “completely reimagines” how gift cards should work, enabling people to send cards instantly and directly to family, friends or colleagues by email, SMS, Facebook Messenger or WhatsApp.
With no postage costs or waste, the gift card converts to a secure Prepaid Mastercard once activated by the recipient and they can then spend the full value of the gift card in-store or by simply tapping their mobile wallet at more than 6,400 outlets of 61 of the most popular retail brands in the UK.

Creo Medical (CREO.L) 182.5p £240m

Placing to raise £43m at 180p. Open Offer to raise up to £6.6 million at the Issue Price. 8.9% discount to Friday’s close. Proceeds to provide a strong balance sheet to continue its commercialisation of the CROMA Advanced Energy Platform and other commercial activities.

Dekel Agri-Vision (DKL.L) 2.7p £11.4m

JV with Green Enesys Holdings Ltd. (‘GEG’), an established renewable energy company, to co-operate in order to develop an initial 35-36MW hybrid power project (‘HCTPP’), potentially in Ayenouan, Côte d’Ivoire
· First contemplated HCTPP to comprise 30MW solar photovoltaic (‘PV’) plant and 5-6MW biomass plant

Head Chef:

Derren Nathan
0203 764 2344

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