Small Cap Feast

Small Cap Feast – 03 July 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 893

Total number of AIM Companies trading: 813*
* As at 01 July 2019

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 01 July 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 163*

Total number of Standard List Companies trading: 141*
* As at 01 July 2019

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

NEX Exchange

Clean Invest Africa (NEX:CIA)—readmission and all share RTO of CoalTech (South Africa) engaged in agglomerating coal fines into coal pellets through the commercialisation o f its proprietary binding technology. Due early Aug.

Main Market (Premium)

ReAssure Group plc  –  The Group is a leading closed book life insurance consolidator in the United Kingdom with 4.3m policies, £68.7 billion of assets under administration on a Post-L&G Illustrative Basis. It is considering a premium listing segment of the main market.

Main Market (Specialist Funds)

Voyager AIR  The Company will focus on the acquisition, leasing and management of primarily widebody aircraft, with asset management services to be provided by Amedeo Limited   he IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m·

Main Market (Standard)

IMC Exploration Group (NEX: IMCP), focused on acquiring and exploring prospecting licence areas which have high potential for natural resource, is looking to admit its shares to the standard list and will withdraw for the NEX Exchange. TBC

AIM

Uniphar, a diversified healthcare services business with a workforce of over 2,000, is looking to join AIM. Raise TBC, expected mid-July 2019

Rumours & Speculation

Neptune Surf Technology plc*, a vertically integrated lifestyle accessory group focused on the surf market, designing its own high-performance wetsuits and surfing hardware and distributing these together with third party brands globally with key markets being Europe, Australia and USA and Brazil, is looking to join AIM and ‘is planning an £11m float’ according to The Sunday Telegraph.

 

Breakfast Buffet

Thor Mining (THR.L) 0.82p £6.33m

Thor Mining advised a plan to further advance exploration of and assess potential development options for the Jervois Vanadium Project in the Northern Territory of Australia.

The project is held in JV between Arafura (60%) and Thor (40%) with Thor acting as manager. The plan outlined below has been agreed by both parties to the JV.

Substantial exploration history including 60 RC (reverse circulation) holes drilled between 2006 and 2008 intersecting extensive potentially economic grades of vanadium and titanium.

Selected samples from 14 holes only, assayed for gold and platinum group elements (PGEs), returned up to 1.59 ppm (grams/tonne) combined gold, plus platinum and palladium.

Exploration Target range of 90 to 110 million tonnes @ 0.3% – 0.8% V₂O₅, and 4% – 8% TiO₂ determined from 1,295m of assayed mineralisation. The potential quantity and grade of the Exploration Target is conceptual in nature as there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Substantial laboratory testwork has demonstrated potential to produce concentrates with grades of 1-2% V₂O₅, which are comparable to others around the globe, with attractive (61-69%) recoveries.

Future work to focus on; resource drilling the Casper, Coco, and RD deposits, testing other prospects for potential economic grades of vanadium and titanium, and follow up work on the gold and PGE potential on all prospects.

 

Highland Gold Mining (HGM.L) 202p £725.6m

Highland Gold Mining signed an agreement with Russia’s Far East Development Corporation officially confirming residency in the Chukotka Advanced Special Economic Zone (ASEZ) for the Company’s Kekura and Klen projects.

The Russian government’s ASEZ programme is designed to spur new investments in the country’s Far East Federal District and covers 19 geographic areas. The Chukotka ASEZ, in which Kekura, Klen, and the Company’s Valunisty mine are located, was created earlier this year via the expansion of an existing zone.

As residents in the ASEZ, Kekura and Klen will be subject to zero or reduced income tax, precious metals royalties, land rental, land tax, and property tax over the first five to ten years of operations. They will also pay a unified social tax on payroll of 7.6% versus the statutory rate of 30%, and be entitled to an expedited refund process for value added tax expenses.

Kekura is Highland Gold’s premier development project, with construction currently in progress, stripping and preliminary ore mining set to start later this year, and commercial production expected to begin in 2023. The Kekura project has audited JORC-compliant gold reserves of 2.0 million ounces at a grade of 7.0 g/t, and is designed to produce an initial 172,000 ounces of gold a year with forecasted total cash costs (TCC) of $511 per ounce. The Company estimates that residency in the Chukotka ASEZ adds approximately $100m to the project’s NPV.

 

PureCircle (PURE.L) 246.7p £454.9m

PureCircle, the world’s leading producer and innovator of stevia sweeteners, provided an update on trading for the 12 months ended 30 June 2019.

The Company expects to report sales of $125m and EBITDA slightly below the current range of expectations for the period. FY19 has been a transitional year for PureCircle, with the launch of the latest and best tasting stevia product, Reb M. As highlighted in the Company’s half year results, the Company’s new strategy is focused on launch of its next generation and best tasting stevia, Reb M, which is off to a good start with many beverage and food products already in the markets of US and Europe with favourable feedback from consumers. As expected, demand for their early generation Stevia products has fallen, as customers reformulate a number of their food and beverage products based on utilising our newer generation stevia and the superior taste they deliver. In some cases, customer product launches have been rescheduled to a later date, which has moved our supply of products to them into our new financial year, rather than H2 FY19 as had initially been anticipated.

 

Sosandar (SOS.L) 17.5p £22.95m

Sosandar, the online women’s fashion brand, announced its financial results for the year ended 31 March 2019.

Revenue increased 228% to £4.44m (2018: £1.36m)

Gross margin improved to 55.5% (2018: 49.4%)

Gross profit increased 268% to £2.44m (2018: £0.67m)

EBITDA loss reduced to £3.49m (2018: £6.00m loss)

Period-end cash balance of £3.64m

Order growth of 224% to 102,967 orders

Conversion rate increased by 76bps to 2.92%

Customer database grew 95% to 105,756

Active customers increased by 185% to 62,214

Increased number of new styles by 106% vs prior year and broadened size range

Facebook and Instagram followings increased by 72% and 208% respectively

Costs as a percentage of revenue significantly decreased

 

Purplebricks (PURP.L) 96.5p £284.9m

Purplebricks, a leading hybrid real estate agency, announces its results for the year ended 30 April 2019.

Group revenue up by 55% to £136.5m (FY 2018: £87.8m)

UK revenue up by 21% to £90.1m

UK ancillary revenue 44% of total (FY 2018: 43%)

Canadian business, acquired in July 2018, contributed revenue of £23.7m

Group gross margin up by 200bps to 58.5%, UK like-for-like2 gross margin up by 70bps

Operating loss of £52.3m (FY 2018: £27.8m)

UK operating profit £5.3m, an operating margin of 5.9% (FY 2018: 3%)

UK Adjusted EBITDA up 65% to £10.2m (FY 2018: £6.2m)

 

Tungsten Corporation (TUNG.L) 49.9p £62.41m

Tungsten Corporation, the global business transaction network, announced that Andrew Lemonofides will be joining the Board as CEO in Sept 2019.

Andrew is currently the Chief Strategy and Transformation Officer at IWG plc, having previously served as Chief Strategy Officer. He has been a valued member of the IWG Senior Leadership team for the past 7 years.  Andrew has extensive experience of the technology sector, having held a number of senior roles in global technology companies for a total of 23 years. Most recently Andrew spent 13 years at Dell Corporation in various senior finance and operations roles, including COO Emerging Markets, European Commercial Operations Director and Finance Director UK LCA.

Following Andrew’s appointment, David Williams will revert to his role as CFO and Tony Bromovsky will revert to his prior role of NEC after a suitable integration period.

 

Codemasters (CDM.L) 220p £309.4m

Codemasters, the video game developer and publisher specialising in high quality racing games, has decided to move the previously announced release date of GRID in order to take advantage of a more favourable launch window during the peak release season, and closer to the Nov launch of Google’s cloud gaming service Stadia, which features GRID as a launch title.

Further to the Company’s announcement on 22 May 2019, which stated an original release date of 13 Sept 2019, GRID® will now be released on 11 Oct 2019. The Ultimate Edition will be available with three days early access on 8 Oct 2019.

The Company’s expectations for GRID, and its contribution to the current financial year, remain unchanged.

GRID recently won “Best Racing Game” at E3 from Game Informer and DualShockers, and was a Best Racing Game finalist in the official Game Critics Awards.

 

Blackbird (BIRD.L) 7.25p £21.42m

Blackbird, the developer and seller of the market-leading cloud video platform Blackbird, announced that Corrivium has chosen Blackbird for the clipping and publishing of highlights of Global Rapid Rugby, a new international rugby competition.

Corrivium is a live streaming provider which delivers live streaming events globally for the world’s largest brands. Rapid Rugby approached Corrivium to assist in the streaming, editing and publishing of highlights to its website, as well as social channels. Rapid Rugby is a new international rugby union competition starting in 2019 with a 14 match showcase series.

Through the co-operation Corrivium has with Blackbird running on Amazon Web Services (AWS), Corrivium is able to receive the footage directly from Rapid Rugby’s content providers then stream live to audiences around the world whilst allowing Rapid Rugby’s digital team to use Blackbird to rapidly clip, edit and publish highlights during live matches.

 

Anglo African Oil & Gas (AAOG.L) 5.2p £12.37m

Anglo African Oil & Gas, an independent oil and gas developer, announced that it has received commitments to raise up to £8.25m  through the issuance of new ordinary shares of 5p each in the capital of the Company at a price of 5.2p per Ordinary Share. The Fundraising will provide the Company with the funds required to re-enter the TLP-103C well at its Tilapia field in the Republic of the Congo with a view to producing oil from the Djeno horizon.

 

Conroy Gold & Natural Resources (CGNR.L) 5.9p £1.34m

Conroy Gold & Natural Resources, the gold exploration and development Company focused on Ireland and Finland, reported that results from the Company’s 2019 drilling programme at Slieve Glah in the Longford – Down Massif in Ireland confirm the presence of gold in bedrock in Target Area 4.

First drill hole in Target Area 4 intersects gold in bedrock; confirming presence of gold mineralisation;

Drill hole is located over 3.5km from previous gold mineralised drill hole in Slieve Glah Target Area 2; and

Target Area 4 is 2km long by 1km wide and lies northeast  of Target Area 2.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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