Small Cap Feast

Small Cap Feast – 03 December 2019

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Dish of the Day:

No Joiners Today

 

Off the Menu:

Cabot Energy has left AIM

 

Dish of the Day:

Off the Menu:

What’s Cooking in the IPO Kitchen?

What’s cooking in the IPO kitchen?

AIM

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

Main Mkt Premium

Octopus Renewables – Seeking raise of up to £250m. Will seek to provide investors with an attractive and sustainable level of income returns, with an element of capital growth by investing in a geographically and technologically diversified spread of renewable energy assets—Due 10 Dec

 

Breakfast Buffet

Ramsdens Holdings (RFX.L) 207.5p £64m

Good performance in a challenging consumer environment. On-track to meet FY expectations. HY Sep 19 results.

  • Underlying Profit Before Tax up 12% to £5.7m ·    Reported Profit Before Tax up 23% to £6.2m

Foreign Currency Exchange income up 15% to £8.4m (H1 FY19: £7.3m);

o  Jewellery retail revenue up 22% to £5.5m (H1 FY19: £4.5m);

o  Pawnbroking income less impairment up 17% to £4.3m (H1 FY19: £3.7m);

o  Gross profit from purchases of precious metals grew 57% to £4.1m (H1 FY19: £2.6m), including a one-off scrapping of old stock generating £0.6m additional profit.

  • Three new stores were opened during the Period and four stores were acquired from Instant Cash Loans Limited trading as The Money Shop.  A further store has opened since the Period end.

Div up 12% to 2.7p.

 

Yolo Leisure (YOLO.L) 10.75p £7.75m

FYSep19 results.

As at 30 September 2019, gross assets were £2,995,972 (2018: £3,441,504) and the net fair value of investments held was £2,684,091 (2018: £3,083,995).  Total net assets were £2,968,527 (2018: £3,408,811) which represents 5.69 (2018: 7.72) pence per share.

On 2 October 2019, we announced that the board had conducted a review of the Company’s investment strategy and that the board had decided that, in the light of the current market conditions and pipeline opportunities, within the scope of its current investment strategy it should give particular focus to technology opportunities in the fields of big data, machine learning, telematics and the internet of things (IoT).

 

Genedrive (GDR.L) 23.5p £7.99m

 Its case-control clinical validation, the Antibiotic Induced Hearing Loss assay (the Genedrive® MT-RNR1 ID kit) achieved a diagnostic sensitivity of 100% and specificity of 100% on a cohort of 303 samples. The assay was found to be unaffected by common bacteria and interfering substances that may be expected to be encountered in patients. Genedrive assays are unique in that they are performed from relatively crude patient samples, so robust design has been key in ensuring these excellent results.

“The next step will be to undertake our implementation study in Manchester and Liverpool hospitals, where the goal is not only to replicate the analytical performance outcomes, but also to ensure the test can be implemented in an NHS environment. “

 

Mercia Asset Management (MERC.L) 27.9p £85m

   Proposed acquisition of VCT fund management business from NVM, relating to Northern Venture Trust PLC, Northern 2 PLC VCT and Northern 3 PLC VCT (together the “NVM VCT Funds”), which consist of c.60 portfolio companies; with 17 listed, 27 private venture and 16 private equity.

  • NVM VCT Funds represent approximately £270million in assets under management (“AuM”), which would increase Mercia’s total AuM by over 50% to approximately £770million.
  • Total Acquisition consideration of up to £25.0million

 Proposed Placing to raise gross proceeds of £30.0million.

  • Placing Price of 25 pence per Placing Share.
  • The Placing Price represents a discount of 21.9 per cent. to the closing price of 32 pence per share on 2 December 2019.

 

Marlowe (MRL.L) 465p £213m

Acquisition of Law at Work for £6.3m initial consideration.  Established in 2001 and headquartered in Glasgow, LAW is a leading national provider of subscription-based employment law compliance and health and safety services.

For the year to 31 May 2019, LAW generated revenues of £5.4 million, EBITDA of £1.2 million and profit before tax of £1.0 million. At 31 October 2019, LAW had net assets of £2.2 million. The total enterprise value will comprise an initial cash consideration of £6.3 million and a contingent consideration which is expected to be approximately £4.0 million over three years dependent on the achievement of profit targets. The acquisition will be funded from the Group’s existing cash and debt facilities.

 

Tekmar (TGP.L) 157.5p £80.7m

 HY Sep 19 results. Awarded the London Stock Exchange’s Green Economy Mark . Record Order Book of £15.9m – up 23.26% YOY with several contract wins across divisions throughout the Period

Rev £17.1m from £7m. Evitda (adj) of £2m vs £0.8m loss. Cash £3.9m.  Revenue + Order Book + Preferred Bidder. Of £40.5m.

Group firmly on track to meet market expectations for FY20

  • Anticipated seasonality in product mix and associated margins continues with Group’s revenue expected to be H2 weighted
  • Revenue split expected to remain at current levels of c.60% Offshore Wind and c.40% Subsea
  • Group acquired Pipeshield International Limited (“Pipeshield”) on 9 October 2019 and integration progressing well, with an additional £45 million contribution to the Enquiry Book (not reflected in HY20 numbers).

 

Rockfire Resources (ROCK.L) 1.8p £9.95m

Drilling of a new breccia zone has discovered high-grade, near-surface gold, 120m east of drill hole BPL025 which returned 177 m @ 0.5 g/t Au.

The Central Breccia was identified from mapping and sampling by Rockfire geologists. The Company believes this new mineralised zone forms part of the near-surface expression of the large gold system encountered by the BPL025 drill hole.

The newly identified zone includes an intercept of 1m @ 21.7 g/t Au, which is the highest gold grade encountered in drilling at Plateau; BPL013 intercepted an outstanding 6m @ 4.1 g/t Au (from 27 m) within a broader interval of 16m @ 1.7 g/t Au. BPL014 returned a similarly pleasing 12m @ 1.2 g/t Au (from 12 m) within a broader zone of: 26m @ 0.7 g/t Au;  This Central Breccia is not currently included in Rockfire’s Maiden Resource of 41,000 ounces of gold estimated in July 2019.

 

Renalytix (RENX.L) 315p £187m

The  developer of artificial intelligence-enabled clinical diagnostics for kidney disease, announces that that the Centers for Medicare and Medicaid Services (“CMS”) has released the Final 2020 Clinical Laboratory Fee Schedule (“CLFS”) and has set a national price for the Company’s KidneyIntelX™ test. Under the 2020 fee schedule, the price for KidneyIntelX™ with a unique reimbursement code (0105U) is set at $950 and becomes effective on 1 January 2020. This price will remain in effect for a three-year term from January 2020 until December 2022.

The inclusion of KidneyIntelX™ on Medicare’s CLFS will accelerate RenalytixAI’s contracting efforts with private insurance payors as several large insurance plans in the United States use Medicare’s CLFS to determine test pricing.

 

ARC Minerals (ARCM.L) 2.4p £18.5m

 Acquired a further 5% interest in Zaco Limited from Mumena Mushinge, a Non-Executive Director of Arc, for a total cash consideration of USD 37,500. “We have increased our stake in Zaco to 52.5% giving us a controlling interest in this exciting prospect, which contains a number of anomalies which we are drilling.”

 

Kefi Minerals (KEFI.L) 1.605p £16.3m

Encouraging assay results from the drilling programme at the Company’s Hawiah Exploration Licence in Saudi Arabia.

New Assay Results Received     Drillhole HWD 002 returned 2.6m at 2.5% copper, 0.1% zinc, 1.9g/t gold, 17.8g/t silver from 37.35m (with estimated true width (“ETW”) of 2m).

  • Drillhole HWD 003 returned 8.7m at 4.2% copper, 0.2% Zinc 0.7g/t gold, 15.6g/t silver from 38.65m (ETW of 6m).

 

Head Chef:

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

*A corporate client of Hybridan LLP

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