Small Cap Feast

Small Cap Feast – 02 July 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 893

Total number of AIM Companies trading: 813*
* As at 01 July 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 01 July 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 163*

Total number of Standard List Companies trading: 141*
* As at 01 July 2019

Dish of the Day:

No Joiners Today

Off the Menu:

Nautilus Marine Services plc has left AIM today after shareholders passed resolutions to cancel its quoting.

PCG Entertainment Plc has left AIM today after failing to appoint a replacement NOMAD, the shares continue to trade on NEX Exchange,

Dish of the Day:

No Joiners Today

Off the Menu:

No leavers Today

What’s Cooking in the IPO Kitchen?

Breakfast Buffet

Johnson Service Group (JSG.L) 160p £552.3m

JSG, a leading UK textile rental provider, provided a trading update for the six months to 30 June 2019.

Following the update in early May trading has continued to be strong, with encouraging levels of organic growth, and we now expect results for the full financial year to be slightly ahead of current market expectations.

Planned capital investment across the business is continuing in order to increase capacity and productivity for the busy summer months. As mentioned in May, construction of our new Leeds hotel linen site remains on schedule and within budget and is expected to be operational in the second quarter of 2020.

Sirius Minerals (SXX.L) 14.8p £1,048.5m

Sirius Minerals focused on bringing large-scale volumes of POLY4 to the global agriculture industry, provided a Q2 progress update.

Comprehensive $3.8bn funding solution for stage 2 financing requirements launched on 30 Apr 2019 and on-track to complete before the end of Sept 2019

Successful completion of $425m equity offering and $400m convertible bond offering

Long-term, take-or-pay supply agreement signed with IFFCO, one of the largest co-operative societies in the world, for volumes increasing to 1 Mtpa POLY4

Construction advancing well, and the Company remains on target to achieve first polyhalite and commercial production on time and in line with its cost schedule.

Gunsynd (GUN.L) 0.03p £1.49m

Gunsynd announced that it has invested $130,000 for 108  new ordinary shares in Oyster Oil & Gas Limited, representing approximately 9.75% of Oyster’s enlarged issued share capital. Gunsynd’s total holding following the issue of the new ordinary shares will now represent approximately 30% of the issued share capital of Oyster.

Funds will be used primarily to meet certain licence obligations relating to the interests held by Oyster in Madagascar.

Oyster has reached an “in principle” agreement with the Government of Madagascar for a two year extension to the current exploration phase, which is subject to certain conditions which include the licence obligations referred to above.

HML Holdings (HMLH.L) 35p £15.58m

HML Holdings, the property management services group, announced its preliminary results for the year ended 31 March 2019.

Revenues up 8% to £28.1m (2018: £26.0m)

EBITDA up 8% to £2.8m (2018: £Adjusted operating profit up 9% to £2.4m (2018: £2.2m)

2.6m)

Cash generated from operations increased to £3.6m (2018: £2.7m)

Adjusted basic EPS up 10% to 4.6p (2018: 4.2p)

Dividend per share proposed of 0.47p (2018: 0.42p)

TP Group (TPG.L) 6.88p £53.57m

TP Group, the specialist services and engineering group, announced that its wholly owned subsidiary, Sapienza Consulting Holdings BV, has reached an agreement to acquire an additional shareholding in Lift BV for a consideration of c. 0.7m.

Lift is based in Den Haag in the Netherlands, and builds Artificial Intelligence (“AI”) systems to support rapid resourcing of large-scale technical projects. Sapienza initially acquired a c33% stake in Lift in May 2017, as part of their strategy to invest in complementary technology partners.

The Transaction takes the Sapienza holding to 69%, in addition to the Group taking two seats on the Lift board of directors. With Lift highly active in a range of sectors including defence, aerospace, security, government, medical and commercial, the Company believes it will be able to focus on developing a number of highly complementary growth opportunities for the Lift technologies.

appScatter (APPS.L) SUSPENDED

appScatter, the app management and data intelligence platform, announced that it has signed an agreement with Bango PLC, the mobile commerce company, to grow in-app revenues for appScatter’s customers through Bango Marketplace.

Bango Marketplace provides app developers with a unique way of targeting the small percentage of users that are proven to make in-app purchases, which generates the majority of revenues for app developers. App developers who have used these audiences for user acquisition campaigns have more than doubled in-app revenues.

Through this partnership, appScatter will offer Bango Marketplace to its app developer customer base, with appScatter developers benefitting from an exclusive offer on high value audiences of pay-proven users.

Arc Minerals (ARCM.L) 3.45p £21.88m

Arc Minerals, the exploration and development company with copper and cobalt exploration assets in Zambia and multi-million ounce gold development projects in DRC and Slovakia, announced the initial results from its maiden drill program at the Cheyeza target area in Zambia.

Drilling confirms significant copper mineralisation discovered at Cheyeza East as announced on 27 June 2019

Significant Copper Mineralisation at Hole 2

Hole 2 assay: 25m @ 1.05% Cu from 2.00m depth, includes

1.7% Cu over 9.3m from 18.5m, includes

13.34% Cu over 0.56m from 27.24m

Third hole drilled 200 meters south shows significant mineralisation

Both rigs have now been deployed at Cheyeza East.

Grafenia (GRA.L) 11p £9.32m

Grafenia announced a further variation to the terms of its acquisition of Image Everything Limited. Revised details were previously announced on 26 Sept 2018. This variation relates to Neil Cousins, one of the vendors of Image, who will step down as an executive of the Group on 30 August 2019.

Mr Cousins has entered a new consultancy agreement, together with a Nettl partner licence agreement. Under the consultancy agreement, he will continue to provide services to the Group for a minimum of 12 months. As Nettl of Romiley (Greater Manchester), he will use Nettl’s marketing to sell web, display and print products to new clients, which will be fulfilled via the Group’s systems and supply chain. He will forgo his pro rata share of the £0.55m Deferred Consideration due to the vendors of Image, being £0.22m.

i3 Energy (I3E.L) 49p £44.61m

i3 Energy, an independent oil and gas company with assets and operations in the UK, announced that it has awarded Baker Hughes, a GE company (“BHGE”), contracts for its 2019 summer drilling programme on its Liberator and Serenity assets and its 2020 Phase I development of Liberator. BHGE’s scope will include directional drilling, drilling fluids, mudlogging, formation evaluation operations and wellheads.

In connection with the award, BHGE has agreed that £3mm of oilfield service (“OFS”) and oilfield equipment (“OFE”) contract payments will not become payable until such time as i3 has received its first sales revenues from Liberator Phase I.

As part of this transaction, the Company will be issuing to BHGE warrants up to a notional value of £3m at an exercise price of 56.85p per ordinary share, totalling up to 5,277,045 warrants if fully issued. BHGE can exercise the warrants via cash settlement or in exchange for payments due under OFS or OFE contracts with the Company.

Junior Noteholders will also be offered participation in warrants on these same terms, pro-rata to their ownership of i3 on a fully-diluted basis and also pro-rata to the proportion of warrants fully issued to BHGE, which could total up to 1,566,572 warrants if all 5,277,045 warrants are issued to BHGE.

Plus500 (PLUS.L) 560p £610.63m

Plus500, a leading online service provider for trading CFDs internationally, issued the following trading update at the end of the second quarter of its 2019 financial year.

The Company is pleased with the overall performance, and continues to perform in line with current expectations. 

Following a first quarter which was impacted by low levels of volatility in financial markets, revenue for the second quarter increased to approximately $94m (Q1 2019: $53.9m), giving a total of approximately $148m for the first half. The level of client spreads and overnight charges for the second quarter was approximately $93m (Q1 2019: $82m), giving a total of approximately $175m for the first half.

During the first half, around 48% of revenue was generated outside the EEA, whilst approximately 23% of revenue was generated by Elective Professional Clients within the EEA.

Of note, there were signs of reduced levels of marketing across the Company’s peer group which, along with continued strong and focused marketing investment by Plus500, led to an increase in the rate of new customer recruitment and a reduction in the average cost of acquisition.

Head Chef:

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

*A corporate client of Hybridan LLP

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