Small Cap Feast

Small Cap Feast – 03 January 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 919

Total number of AIM Companies trading: 844*
* As at 31 December 2018

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 31 December 2018

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 139*

Total number of Standard List Companies trading: 130*
* As at 31 December 2018

Dish of the Day:

No joiners today

Off the Menu:

The People’s Operator has left AIM

Dish of the Day:

No joiners today

Off the Menu:

No Leavers today

What’s Cooking in the IPO Kitchen?

Main Market (Specialist Funds)

The Global Sustainability Trust -aiming for attractive risk-adjusted returns by investing primarily in private market investments that are expected to have a positive environmental and social impact raising c.£200m. Due 31 Jan 2019.

AIM

Greenfields Petroleum (TSX-V:GNF)  production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected late January 2019.

 

Breakfast Buffet

Physiomics* (PYC.L) 3.85p £2.77m

Physiomics “has entered into a strategic collaboration with the Medicines Discovery Catapult.  Physiomics will be part of the MDC’s “Virtual R&D” network of advisors and available to provide advice to the many small biotechnology companies supported by the MDC from its Alderley Park base. Under the terms of the agreement the MDC will introduce Physiomics to selected potential clients and in return will receive a small commission on the value of any service contracts arising from such introductions.

Physiomics offers a range of services including its proprietary Virtual Tumour technology to predict the effect of oncology drugs and improve the success rate of oncology R&D.  It works with companies ranging from start-ups to some of the world’s largest pharmaceutical companies and has experience in a wide range of treatments, including radiation, DNA repair inhibitors and immune therapies.

The MDC was established by Innovate UK (part of UK Research & Innovation) to support the discovery and evaluation of medicines by providing access to expert technical capabilities, equipment and other resources required to take new ideas from concept to reality.”

 

Reabold Resources (RBD.L) 0.72p £27.7m

“Reabold announced that, further to its announcement of 19 Dec 2018, Integrity Management Solutions (“IMS”), contract operator of the West Brentwood field, onshore California, in which Reabold has earned a 50% interest, has informed the Company of a successful drilling result at the VG-4 well.  

The well was drilled safely and within budget to a total depth of 4,700ft and had significant oil and gas shows in the targeted Second Massive formation. Halliburton wireline logging has confirmed the presence of pay.

Reabold and IMS now plan to complete and put the well onto production.

The drilling of VG-4 follows the successful VG-3 well, which was drilled and put onto production on the West Brentwood field last year.

The next well in the Company’s California drilling campaign is expected to be on Monroe Swell which the Company will update the market on in due course.”

 

Sunrise Resources (SRES.L) 0.13p £3.08m

“The company focusing on the development of its CS Pozzolan-Perlite Project in Nevada, USA, is pleased to announce positive results from expansion testing of perlite samples from the new discovery areas on its NewPerl Project. 

Expandability testing indicates that the majority of October’s reconnaissance samples are suitable for production of horticultural grade perlite.

Project can move quickly to drilling and bulk sampling and commercial scale testing.

For future permitting reasons the NewPerl Project area is now split into a new northern area now named as the Jackson Wash Project, and the original southern area which will continue to be known as the NewPerl Project.”

 

Alpha FX (AFX.L) 595p £217.45m

FYDec18 update from the  UK-based foreign exchange service provider to the corporate and institutional market.

Following the previous trading update of 25 Sept 2018, the Board announced that trading has continued to be strong and it expects earnings for the year ending 31 Dec 2018 to be ahead of market expectations.

This favourable performance has been achieved across the Group and continues to validate the investments that have been made to date. Both the corporate business (including UK and international clients) and the newly established institutional subsidiary performed strongly. It is expected that the next financial year will see further increases in investment to take full advantage of market opportunities, including ongoing investment in technology and back-office infrastructure as well as increased costs relating to the recently launched operation in Canada.

FYDec18E rev £20.56m and PBT £9.1m.

 

Getech Group (GTC.L) 31.5p £11.8m

The “provider of geoscience and geospatial products and services to companies and governments who use them to de-risk exploration programmes and improve their management of natural resources, announced the sale of an integrated suite of geology, gravity and magnetic data and knowledge products.

The total multi-product sale, made to a leading global oil and gas company, will generate gross income of US$3.2m; the majority of which will be recognised in the financial year ending 31 Dec 2018. On this basis, we expect FY 2018 revenue to exceed that delivered in FY 2017 by at least 10% (January to Dec 2017: £7.2m). The sale also adds recurring revenue to 2019 via a new customer subscription to our Globe product.”

 

Avation (AVAP.L) 262p £169m

The “commercial passenger aircraft leasing company, announces that it has entered into an aircraft options exercise with ATR to acquire a further eight new ATR 72-600 aircraft for scheduled deliveries between 2020 and 2022.

“This order for eight additional aircraft extends Avation’s order book and firm delivery horizon and continues the business growth in regional turboprops out to 2022. In addition to this order, the company has maintained its purchase rights and price protection over a further 25 aircraft extending to Dec 2025.  We equally confirm our willingness to potentially convert some of our orders and or options to the freighter version which we foresee to have a positive outlook.  We believe that the market for the ATR 72-600 will continue to be strong as the aircraft is the most fuel-efficient aircraft in its class and dominates sales in its market segment. Avation is satisfactorily positioned as one of a few Lessors with a modest number of forward positions to offer to our airline customers.”

FYJun19E PE c.10x and yield c.2.4%.

 

WANdisco (WAND.L) 530p £220m

“The LiveData company, announced it has secured its first multi-cloud contract with one of the largest mobile network operators in the world (the “Client”). The agreement is valued at approximately $565,000 and will see the Client deploy the Company’s patented Big Data and Cloud product, WANdisco Fusion for Multi-Cloud (“Fusion”).

The contract was won directly by WANdisco, whilst working with Amazon Web Services. The Client will deploy Fusion to enable continuous replication of data across multiple Amazon cloud environments and locations. This marks the first contract where a Client will utilise Fusion for both multi-cloud and multi-tenancy use cases. The initial three-year subscription contract is valued at approximately $0.56m with opportunities for expansion during the term. The contract was closed and will be recognised in FY 2018.”

 

SCISYS Group (SSY.L) 155.5p £46m

The “supplier of bespoke software systems, IT-based solutions and support services to the space, media & broadcast, government, defence and commerce sectors, announced that SCISYS Deutschland GmbH has been awarded a contract with GMV in Spain for the continuation and further enhancement of three elements in the Galileo Ground Control Segment (GCS).

The total contract value is for €5m and the contract will commence this month, continuing until Dec 2020. This contract is awarded under a programme funded by the European Union  and the European Space Agency. It is included in existing market guidance.

Galileo is Europe’s own global navigation satellite system, providing a highly accurate, guaranteed global positioning service under civilian control. GMV is the prime contractor for the Ground Control System (GCS) to the European Space Agency. This contract win underlines SCISYS Space’s position as an expert software supplier to Galileo.”

FYDec19E rev £59.56m and PBT £4.5m.

 

 

Tracsis (TRCS.L) 610p £173.4m

The “provider of software and services for the traffic data and transportation industry, is pleased to announce that it has signed a significant five year Framework Agreement with a major Train Owning Group for its TRACS Enterprise product. The Agreement covers all of the Operator’s individual Train Operating Companies (TOCs) within the UK plus other franchises that the Owning Group may win in future.

The total potential value over the duration of the Framework Agreement is expected to be multi million pounds although given the ‘call off’ nature of the Agreement, the number of modules used and the specific timing of implementation (and therefore revenue) is difficult to forecast with certainty.  However, the Directors believe this is a key win for Tracsis that will lead to significant recurring revenue opportunities within the duration of the Agreement and beyond.  For the avoidance of doubt, at this point in time there will be no change made to current year forecasts.”

 

i-nexus Global (INX.L) 39p £11.5m

The provider of cloud-based Strategy Execution software solutions for the Global 5000, announced the appointment of James Davies as Chief Product Officer. As a consequence, James has resigned from his role as NED of the Company with immediate effect, stepping into this newly created position. This brings the total number of staff within the Group to 90, representing an increase of 50% since IPO and remaining in line with the Group’s stated internal investment and expansion strategy.

James is a seasoned software executive with 20 years’ experience working in Silicon Valley, USA. James has held senior leadership roles in three venture capital backed software start-ups, including CEO, CPO and Chairman, and has delivered management consulting services to some of the world’s largest technology companies. In his role as Chief Product Officer he will be tasked with building upon i-nexus’ early product leadership position in cloud strategy execution software.

The search for James’ Board replacement has commenced.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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