Small Cap Feast

Small Cap Feast – 02 October 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 878

Total number of AIM Companies trading: 796*
* As at 30 September 2019

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 88*

Total number of NEX Growth Market Companies trading: 86*
* As at 30 September 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 165*

Total number of Standard List Companies trading: 143*
* As at 30 September 2019

Dish of the Day:

No Joiners Today

Off the Menu:

Telford Homes has left AIM following a take over by CBRE.

Dish of the Day:

No Joiners Today

Off the Menu:

MESH holdings has left NEX. Intends to relist on the Standard List post proposed acquisition of Sentiance N.V, one of the emerging category leaders in behavioural AI.

What’s Cooking in the IPO Kitchen?

Main Market Standard
Kaspi.kz, the largest Payments, Marketplace and Fintech Ecosystem in Kazakhstan with a leading market share in each of its key products and services. GDR offering expected Oct 2019. In the first half of 2019, the Company generated total revenue of KZT226,862m (U.S. $598m), up 34% and net income of KZT77,001m (U.S. $203m), up 54%.
Main Market premium
Registration document approved for Helios Towers. The Group provides essential network services, flexible infrastructure solutions and reliable power supply to mobile network operators in five African growth economies. Revenue increased 7 per cent. year-on-year to US$191m (H1 2018: US$178m), with Adjusted EBITDA up 15 per cent. year-on-year at US$99m (H1 2018: US$86m) for the six months ended 30 June 2019. Pricing rumoured at 115p to 145p implying valuation of up to $1.8bn

Breakfast Buffet

AB Dynamics (ABDP.L) 2240p £502m

“ T h e d e s i g n e r , manufacturer and supplier of advanced testing systems and measurement products to the global automotive market, is pleased to provide a trading update in advance of the publication of its final results for the twelve months ended 31 August 2019.
The Group continued to perform strongly in the second half and expects to report growth in revenue and adjusted profit before tax for the financial year ended 31 August 2019 that ex c e e d s m a r k e t expectations.
The performance benefited from the continuation of the trends reported at the half year in addition to the implementation of our fiveelement strategy. Market conditions remain favourable, driven by significant structural and regulatory tailwinds.
The Company is also pleased to confirm that the new Chief Financial O f f i c e r , S a r a h Matthews-DeMers, will commence her role on Monday 4 November 2019.”

Inspiration Health (IHC.L) 65p £25m

The global medical device company, today announced HY Jul19 results
Financial Highlights:
· Revenue up 9% to £8.1m in line with expectations
· International revenue was up 18% in the period to £4.8m (H1 2018/19: £4.4m); Domestic revenue grew by 5% to £5.2m
· Improved Gross Margin of 46.8% (H1 2018/19: 45.0%)
· EBITDA increased by 21% to £0.8m
· Operating profit, excluding one-off acquisition costs, increased by 12% to £0.6m (H1 2018/19: £0.5m)
· Outlook for the full year remains unchanged
Op highlights
· Products developed in the previous 24 months contributed 17% of revenue
· Shipped largest ever o r d e r f o r o u r AlphaCore5 Patient Warming System
· Received Queen’s Award for Enterprise: International Trade
· Post period end, the Company raised £4.3m via placing to complete the acquisition of Vio Holdings Limite

Blackbird (BIRD.L) 13p £38m

The “developer and seller of the patented market-leading cloud video editing platform Blackbird, announces that it has been chosen by the U.S. Department of State for video production, including the publishing of fast turnaround digital news to its own and other online news outlets. The contract awarded to Aperture Solutions Group, Blackbird’s U.S. partner, is for one year with multi-year extension options. The contract value is a sixfigure U.S. dollar amount each year of the contract.
The U.S. Department of State’s video and production teams will be able to use Blackbird to rapidly clip, edit and publish news broadcast seconds after live to its social channels including Twitter, Facebook and YouTube, as well as delivering longer form content to its own website and other digital news outlets. Working across multiple U.S. based sites, production teams will also be able to instantly access videos kept in Blackbird format from the department’s archive for the repurposing of content across its social and other online channels. Blackbird will be replacing both SnappyTV and traditional on -premise editing systems.”

Jaywing (JWNG.L) 6.25p £5.8m

F u r t h e r t o i t s announcement on 30 August 2019, the Company is pleased to announce that it has been notified that entities associated with two of its major shareholders have acquired the Company’s existing secured loan facility of £5.2m owed to Barclays Bank plc . The Major Shareholders have immediately provided the Company with additional secured facilities by increasing the Jaywing Facility by £3m to £8.2m, which has enabled the Company to repay its outstanding overdraft and provide it with additional working capital.

The additional finance ensures that the Company is in a much stronger financial position to not only meet its short-term financing requirements but also to continue realigning the business and its product offerings to client demand in a market place which has and continues to evolve rapidly.
The Major Shareholders have indicated their ongoing support for the business, which may include the provision of further debt and/or equity by them.

Wilmcote (WCH.L) SUSPENDED

“Further to the statements made on 4 June 2019 and 18 July 2019, it has evaluated a range of transaction structures regarding the potential acquisition of US-based speciality chemicals business, Arclin Inc (“Arclin”).  The Company will not be pursuing a direct acquisition for Arclin by Wilmcote, however the Company remains interested in indirectly participating in a possible acquisition of Arclin by an unaffiliated US-listed investment vehicle.  It is anticipated a successful transaction will result in the Wilmcote management group being engaged by the unaffiliated US-listed investment vehicle and is expected to include provision for Wilmcote to receive compensation to reflect its investment in the acquisition opportunity.” The shares remain suspended pending further clarification.

Reabold Resources (RBD.L) 1.05p £42.7m

“The AIM investing company which focuses on investments in pre-cash flow upstream oil and gas projects, is pleased to announce that, further to the announcement on 16 September 2019, Reabold has completed its second tranche investment in Danube Petroleum Limited (“Danube”). Following the completion by ADX Energy Ltd (“ADX”) of its second tranche investment, which is e x p e c t e d t o o c c u r imminently, Reabold will hold 41.6 per cent. of Danube’s issued share capital.
Danube has a 100 per cent. working interest in the sole risk area within the Parta licence that includes IM-1, as well as 50 per cent. of the remainder of the Parta licence. ADX is the operator of the licence and the proceeds from Reabold and A D X ‘ s r e s p e c t i v e subscriptions are intended to be utilised by Danube in the production testing of the IM1 well.”

Faron Pharma (FARN.L) 96p £37.8m

The clinical stage biopharmaceutical company, announces that further to the update provided in the H1 2019 interim results in relation to the active pharmaceutical ingredient (“API”) manufacturing process for Traumakine, Rentschler Biopharma SE has sent Faron a letter in which Rentschler states that it t e r m i n a t e s t h e agreement concerning the API manufacturing. It is the Company’s understanding that this relates to the fact that significant upgrading of the API manufacturing process would be required prior to MAA/ BLA approval for T r a u m a k i n e . T h e Company is exploring various options for future API manufacturing. This termination has no impact on the currently ongoing clinical advice process with FDA/EMA, which focuses on the structure of the next Traumakine clinical study.

Mind Gym (MIND.L) 122.5p £122m

Appointment of Wei-Li Chong as President of its US business, based in New York.

Wei-Li Chong joins from KinderCare, the US’s largest provider of childcare services, where he was appointed President with responsibility for c. 30,000 employees having previously been EVP for HR. As a member of the Executive Team, Wei-Li led the turnaround of the business to deliver record results. Prior to joining KinderCare, Wei-Li was SVP, Human Resources at Ann Inc, the women’s retailer known primarily for its brand Ann Taylor. At both companies, Wei-Li brought in Mind Gym as a strategic partner to deliver cultural change that drove a turnaround in business performance. Wei-Li will start on 6th January 2020.

Equals Group (EQLS.L) 86.7p £154m

 “The fast-growing e-banking and international payments group, is pleased to announce that its first loan product for SMEs, in partnership with iwoca, is now live.  Equals Group was granted permission by the FCA to offer credit products to its customers via a broker relationship. Under this permission, the Group can now offer a wide range of credit and loan products to its business and retail customers whilst not taking credit risk or utilising the Equals Group balance sheet.

Cohort (CHRT.L) 514p £210.5m

The independent technology group, announced that its wholly owned subsidiary MASS Consultants Ltd (“MASS”) has been awarded five military support contract extensions with a combined value of approximately £11.1 million.  The contracts are expected to be delivered over the next three years.

Head Chef:

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

*A corporate client of Hybridan LLP

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