Small Cap Feast

Small Cap Feast – 03 August 2018

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 935

Total number of AIM Companies trading: 871*
* As at 02 August 2018

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 89*

Total number of NEX Growth Market Companies trading: 86*
* As at 02 August 2018

Set Menu Standard List:

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

Total number of Standard List Companies trading: *
* As at 02 August 2018

Dish of the Day:

Argo Blockchain (ARB.L Main Mkt Standard)—a UK-based provider of cryptocurrency mining services  raised £25m at 16p. Mkt Cap £47m. Business operational since June 2018.

Off the Menu:

BMR Group has left AIM  following  resignation of the NOMAD last month.

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

AIM

Jadestone Energy (JSE.TO)—an independent oil and gas production and development company focused on the Asia-Pacific region. Pro-forma production of 13.9 mboe/d, 2P reserves of 45.3 MMboe, and a 2P NPV10 of US$563.7 million . Offer TBA. Current mkt cap C$135m. Due early August.

Ovoca Gold (to be renamed Ovoca Bio PLC) – RTO of IVIX, a Russian company developing a drug candidate for the treatment of female sexual dysfunctions. No monies to be raised, market cap of £8.5m, due 30 July

Kropz PLC-Intention to float by the emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa and exploration assets in West Africa

 

Breakfast Buffet

Pets at Home (PETS.L) 120.5p £622m

Q1 Jul 18 update from the pet care business.

Group revenue growth of 8.1% to £277.4m

Retail revenue growth up 6.9% to £245.0m, including omnichannel revenue up 47.3% to £19.1m

Vet Group revenue up 18.4% to £32.4m, including Joint Venture vet practice income up 19.9% to £19.4m where mature practices are growing ahead of the market and our naturally fast growing younger practices are performing in line with our expectations

Group like-for-like revenue growth of 6.1%

Retail like-for-like revenue growth 5.3%

Vet Group like-for-like revenue growth 13.6%

Full year profit and cashflow outlook remains in line with expectations and guidance.

PE c.10x, yield c.6%.

 

Tekcapital (TEK.L) 11.6p £4.95m

“The UK intellectual property (IP) investment group focused on creating marketplace value from university technology, is pleased to announce that portfolio company Lucyd has launched an online store to provide cutting-edge spectacles and smartglasses.

The Lucyd eShop will feature the latest technologies and trends in eyewear, including Lucyd-developed smartglasses, designer frames, and other innovations in spectacles.”

Initially the eShop will offer fashion forward, prescription eyewear and Bluetooth enabled prescription glasses as it continues to develop smartglasses, prototypes of which are expected to be available in early 2019.

 

Animalcare Group (ANCR.L) 163.5p £98.13m

Jenny Winter to replace Chris Cardon as CEO of the pan-European animal health business .  Chris will remain on the Board of the Company as part of the executive management team, transitioning to Chief Strategy Officer. Jenny joins Animalcare with over twenty years’ experience working in big pharma in various senior commercial roles for AstraZeneca and GlaxoSmithKline.  

HY trading in-line.

Total Group revenue for the Period increased by c.6.4% at AER (c.4.8% at CER) to c.£47.8m (2017: £44.9m). Pharmaceutical segment revenues increased by c.6.7% at AER (c.5.2% at CER) to £35.4m (2017: £33.1m). This was primarily driven by a stronger product mix with a c.7% increase in the Companion Animal Product category offset by a 1% decline in Production Animals. Revenues within the wholesale segment during the Period, increased by c.5.7% at AER (c.3.8% at CER) to c.£12.4m (2017: £11.8m).  PE c.11.5x, yield >4%.

 

Two Shields Investments (TSI.L) 0.24p £3.19m

The ‘the investing company, announced that in line with its strategy to invest in battery metals it has made a further investment of $50,000 to increase its interest in Kalahari Key Mineral Exploration (Pty) Limited (acquired in Sept 2017) to 22.5%. KKME was founded by Dr Roger Key MBE to explore for base and precious metals, notably nickel and platinum group elements, by applying a new exploration model to the highly prospective Molopo Farms Complex that covers land in Southern Botswana and the Republic of South Africa.’

KKME holds two prospecting licences within the Molopo Farms Complex, a large, layered ultrabasic/basic intrusion which has proven potential for nickel and platinum group elements

 

Horizon Discovery (HZD.L) 176p £263.9m

HYJun18 update from the specialist  in the application of gene editing and gene modulation technologies. “The Group expects to report H1 2018 revenues of approximately £25.1m(H1 2017: £12.1m), £27.3m on a constant currency basis, in line with Board expectations. This represents growth of 107% against the equivalent prior period, 126% on a constant currency basis. Revenues on a like-for-like basis (pre-acquisition of Dharmacon) are expected to be approximately £11.1m (H1 2017: 12.1m), £12m on a constant currency basis. We expect revenues to be second half weighted, consistent with previous years, and exceed consensus for FY 2018.” Making additional investments in high growth areas. As such expects positive EBITDA for FY 2018 before exceptional items below the current range of analysts’ expectations.  FYDec18E  rev £60.2m,  Pre-tax loss £3.3m.

 

Minds & Machines (MMX.L) 6.95p £55.3m

One of the world’s leading owners and operators of Internet Top-Level Domains, announced that it has entered into an exclusive agreement that will enable Ethereum’s Ethereum Name Service to be integrated into the services marketed by registrars to consumers in MMX’s, soon to be launched top-level domain, .luxe. The ICANN-approved .luxe extension is set to shortly enter its pre-launch phases ahead of going on sale to the public from 30 Oct 2018.

Under the agreement, any name of a registrant’s choice in the .luxe registry (an abbreviation for “Lets U Xchange Easily”) can be associated through the Ethereum blockchain with the 40 character hash identifier that currently denotes any Ethereum asset, item or service supporting Ethereum. As a result, a memorable .luxe name can act as the public identifier for an individual’s Ethereum asset instead of the complex and long 40 character hash identifier.”

 

Tru Fin (TRU.L) 216p £210m

“TruFin plc announce that Zopa Limited, in which TruFin currently owns c.15%, has agreed a further round of equity capital investment, to be deployed to support the capital needs of the next generation bank it has been building. The investment of £44m will be made in tranches as Zopa’s bank plans progress.

As a consequence of the transaction, TruFin’s holding in Zopa will fall to c.13%. This latest fundraise implies an increase in valuation of £8m for the Company’s investment in Zopa, from the £36.5m reported at 31 Dec 2017 to £44.5m. This £8m increase represents an increase of 8.2p per TruFin ordinary share.

“We aim to be the best place for money in the UK and we believe that launching our bank is a key next step. It allows us to offer a wider choice of products and to help our customers make smarter choices with their money. We are excited to see this investment round take us closer to our goal.”

 

Oracle Power (ORCP.L) 1.08p £11.8m

The UK energy developer of a combined lignite coal mine and mine mouth power plant located in the south-eastern Sindh Province of Pakistan (Thar Block VI), announces that it has raised £0.45m before costs at 1p per share. The Placing is expected to provide sufficient working capital to allow work with the two major Chinese State-Owned Enterprises, Sichuan Provincial Investment Group and PowerChina International Group Limited to enable them to conclude their due diligence leading into the second phase as foreseen in the Memorandum of Understanding entered into on 21 Nov 2017.

Given the Project’s inclusion in the Priority List of the China Pakistan Economic Corridor, governmental approvals (both from China and Pakistan) are expected to be forthcoming.”

 

Fast Forward Innovations (FFWD.L) 13.45p £17.58m

Placing and Subscription of £4m at 13p. The net proceeds of the Placing will be used to repay the Director’s Loan announced on 23 July 2018, assist the Company in making investments in accordance with its investing policy and for general working capital purposes.

It is disappointing that the share price did not pick up after the recent newsflow, and that this round of funding is at 13p. For this reason the Board is committed to providing an opportunity for existing shareholders to also participate on the same terms. The intention had been to complete the Placing at a higher price but the share price did not react as expected after the Vogogo, Leap, Intensity and Factom investments, which the Board maintain are excellent investment opportunities.”

 

Warpaint London (W7L.L) 220p £169m

“The specialist supplier of colour cosmetics and owner of the W7 and Technic brands, announced the acquisition of the Company’s USA distributor, Marvin Leeds Marketing Services Inc. Leeds Marketing, based in New York, currently derives approximately two thirds of its revenue through the distribution of the Company’s W7 products, with the remainder being through the sale of other branded cosmetics.”  “In the year to 31 Dec 2017 Leeds Marketing had revenue of $5.9m and PBT of approximately $0.4m.  Net Assets, adjusted for a capital reorganisation on completion of the Acquisition, as at 31 Dec 2017 were $1.1m. Under the terms of the Acquisition the consideration will comprise $2.16m in cash, subject to an adjustment depending on the net assets acquired which are expected to be $0.8m”. FYDec18E PE c.16x, yield c.2.5%

 

Head Chef:

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

*A corporate client of Hybridan LLP

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