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.


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

*A corporate client of Hybridan LLP


This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.

The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.

The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).

Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.

This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.

Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.

Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.

MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.

Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.

If you would like to unsubscribe, please email with “unsubscribe me”.