Small Cap Feast

Small Cap Feast – 02 May 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 897

Total number of AIM Companies trading: 826*
* As at 25 April 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 25 April 2019

Set Menu Standard List:

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

Total number of Standard List Companies trading: 141*
* As at 25 April 2019

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Off the Menu:

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Dish of the Day:

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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

AIM

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

Morses Club (MCL.L) 178p £229m

FYFeb19 results from UK’s second largest home collected credit lender.

Revenue increased by 0.3% to £117.0m (FY18: £116.6m). On a like-for-like, pro forma basis, revenue was up 6% (FY18 pro forma: £110.4m)

Total credit issued increased by 2.4% to £178.5m (FY18: £174.4m)

Net loan book growth over 12 months of 0.3% to £73.0m (FY18: £72.8m). On a like-for-like, pro forma basis, net loan book growth was 6.0% (FY18 pro forma: £68.9m)

Adjusted profit before tax increased by 14.6% to £22m (FY18: £19.2m, FY18 pro forma: £18.6m); Statutory profit before tax up 25.5% to £20.2m (FY18: £16.1m; FY18 pro forma: £15.5m)

Proposed final dividend of 5.2p per share, an increase of 8.3%.

Although year-to-date credit issued is slightly down compared to last year, reflecting overall demand in our core HCC market, we continue to look ahead with confidence.

 

IQE (IQE.L) 85p £630m

The recently constructed Newport Mega Foundry has received its first mass production order from its leading existing VCSEL customer.

The achievement of full product qualification status is the result of extensive quality and process audits by the customer and their end OEM, as well as exhaustive product qualification trials including full reliability testing. Qualification of further tools is in progress and is expected to complete over the coming months. In addition to the qualification with this customer, further VCSEL product qualifications are at advanced stages with more than ten other customers, two of which are expected to reach a successful conclusion over the next few weeks.

Customer feedback from the additional qualifications confirms the superior quality and performance from the new facility. The Newport Mega Foundry is the largest outsource epi facility for advanced compound semiconductors globally and has been under construction for the last 18 months.

 

erillion (CER.L) 153p £49.8m

HYSep 19 trading update from the  billing, charging and customer relationship management software solutions provider.

Trading in the first six months of the financial year has been encouraging, with a major new contract worth an initial $6.8m signed in February and additional major contracts worth in excess of £10m, progressing to final stages. Once signed, these contracts will make a substantial contribution to the second half, with profitability in particular benefiting from the significant high margin licence components. Accordingly, the Board anticipates that the Group’s results for the current financial year will be significantly weighted towards the second half, and that the Company remains on track to meet current market forecasts for the full year.”

 

Haydale (HAYD.L) 2.12p £6.59m

Haydale, the global advanced materials group, announced that, following significant investment in production capabilities in its US facility in Greer, South Carolina as announced in May 2018, Haydale is to begin commercial production of its ceramic blanks for the cutting tool industry.

Historically, Haydale’s operations in the US has produced engineered ceramic powders containing proprietary silicon carbide whiskers for the cutting tool industry worldwide. Due to customer demand, Haydale invested approximately $1.5m in its own production facilities and will now utilise internally produced engineered ceramic blends to manufacture and sell sintered ceramic blanks for the cutting tool industry.

Initial quantities of ceramic blanks have been well received and qualified with major jet engine and aerospace manufacturers worldwide and the team are now working towards scaling up to commercial production quantities.

 

Dalata Hotel (DAL.L) 520p £918m

AGM statement from the largest hotel operator in Ireland with a growing presence in the United Kingdom.  On 2018: “We delivered strong earnings growth, paid our maiden dividend to shareholders and secured new debt facilities of 525m maturing 2023. We continued to expand our portfolio of hotels and having started 2018 with 7,600 rooms we now have over 9,000 rooms.”

This momentum has continued into 2019 as we maximise on-going returns from our existing portfolio. The six new hotels that opened on time and on budget during 2018 and early 2019 are progressing well. Maldron Hotel Belfast City and Maldron Hotel Kevin Street, Dublin opened in March and July 2018 respectively. In the final quarter of 2018, we opened three new hotels; Clayton Hotel Charlemont in Dublin, Maldron Hotel South Mall in Cork and Maldron Hotel Newcastle. In Jan 2019, we opened the newly acquired, Clayton Hotel City of London. Overall, the Group’s trading performance in the first four months of 2019 is in line with our expectations and ahead of the  first four months of 2018.”

 

Science in Sport (SIS.L) 51.5p £63.25m

Science in Sport, the premium performance nutrition company serving elite athletes, sports enthusiasts and the gym lifestyle community, announced that its SiS brand has been appointed as exclusive nutrition provider to Team INEOS, the internationally acclaimed cycling team formerly known as Team Sky.

Team INEOS includes the Tour de France-winning cyclists Chris Froome and Geraint Thomas and elite rider Egan Bernal. The team will have dedicated support from SiS to optimise performance during training, racing and recovery and have access to a full range of SiS products including Beta Fuel, GO Isotonic Energy Gels and GO Energy Bars.

Team INEOS, which launched yesterday under new owner INEOS Group, has committed to an enlarged budget to support the team in its global ambitions. SiS and Team INEOS will work closely to create innovative performance solutions to fuel the team through its racing calendar, which starts today with the Tour de Yorkshire. The team’s second race follows later this month with the Giro D’Italia, starting on 11 May 2019.

 

Personal Group (PGH.L) 443p £140.1m

At the AGM of Personal Group PLC, Mark Winlow, Chairman of the Company, will make the following statement:

Personal Group has had a solid start to the year, with trading in-line with expectations. The Company’s core insurance business is performing in-line with budget and PG Let’s Connect, the Company’s technology salary sacrifice business, has had a strong start to the year. Furthermore, the Company feels confident that its SaaS offer, Hapi, will deliver an improved performance through the rest of 2019, following the acquisition of Innecto.

The market for employee benefits remains robust. This is despite the less certain business environment as employers are put under increasing pressure to retain staff and maximise productivity; which in turn could benefit the Group. The Company’s product offerings are market leading and the focus for the foreseeable future will be to increase the Company’s revenues across all sectors of the business.

It has been an encouraging start to the year and the Board believes the Company remains on course to meet expectations for the full year.”

 

Zytronic (ZYT.L) 267p £55.7m

The Company provides the following trading update ahead of its interim results for the first half, which are due to be announced on 14 May 2019 and are expected to show revenues of £9.5m (2018 H1: £10.6m) and profit before tax of £1.4m (2018 H1: £2.2m). 

The reduction in revenues and profits are due to the decline of the sales of products into the Gaming sector, which has only been partially offset by a stronger performance in other sectors.  Despite there still being an encouraging pipeline of opportunities in Gaming, the pace of conversion to orders in the year to date has been much slower than the Board had anticipated.

Although trading in the second half of the financial year is usually stronger than the first half, Zytronic is cautious on the level and timing of recovery of sales in the Gaming sector and therefore on the expected performance for the second half.

The Company continues to be cash generative and is in a strong financial position, with net cash of £12.1m as at 31 March 2019.  The Board anticipates maintaining the interim dividend at a similar level to that paid in the previous year. Zytronic remains in a position of having several opportunities with the potential to materially improve future performance.

 

Cohort (CHRT.L) 372p £152.5m

Cohort, the independent technology group, announced that its wholly-owned subsidiary SEA has been awarded a two year extension to the Miscellaneous Sonar Equipment availability-based contract for the UK Royal Navy from 1 April 2019 to 31 March 2021, worth in excess of £3m. 

“This latest contract award further demonstrates our expertise in supporting maritime equipment and builds on our relationship with an important existing client. Alongside other recent wins, this contract enhances the visibility of future Group revenue.”

 

Jaywing (JWNG.L) 16.25p £15.1m

Jaywing, the data science led agency and consulting business, provided the following trading update ahead of publication of its final results for the year ended 31 March 2019.

The Board can report that it expects full year EBITDA to be in-line with market expectations. This performance has been achieved despite the ongoing challenging market conditions within the UK and continued uncertainty surrounding its anticipated withdrawal from the EU.

During the financial year, management successfully completed the disposal of a non-core contact centre business, HSM Ltd. This assisted the Company in focusing on growing its core business in data science and digital marketing.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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