Small Cap Feast

Small Cap Feast – 03 May 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 897

Total number of AIM Companies trading: 826*
* As at 25 April 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 25 April 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 161*

Total number of Standard List Companies trading: 141*
* As at 25 April 2019

Dish of the Day:

Bermele BERM.L (Main mkt Standard) – Bermele has been formed for the purpose of acquiring a business or businesses operating in the pharmaceutical and biotechnology sector. Raised £1m at 1p. Mkt Cap £2m.

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?

Main Market (Premium)

Jewel UK Midco Limited, the parent company of The Watches of Switzerland Group Limited, is looking to join the premium segment of the main market. Offer TBC, expect TBC

Finablr plc— global platform which provides Cross-Border Payments and Consumer Solutions, Consumer Foreign Exchange Solutions and B2B and Payment Technology Solutions to consumers and businesses in the large and growing payments and foreign exchange market is looking to list on the Main Market plans to raise $200m, expected May 2019

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. Expected 11 June 2019

AIM

SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m

Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019.

Distribution Finance Capital Holdings plc — specialist lender which builds relationships with manufacturers and then provides working capital solutions up and down their supply chains to drive their growth is looking to join AIM. No raise, secondary offering of £19.8m at 90p, expected market cap of £95.98m. Expected 09 May 2019.

Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019

NEX Exchange

Arbuthnot Banking Group plc, primarily involved in banking and financial services including commercial banking, private banking, wealth planning and investment management, is looking to joining the NEX Exchange Growth Market. Expected 17 May 2019

Breakfast Buffet

ITM Power (ITM.L) 26.7p £86.5m

The energy storage and clean fuel company, has noted the publication yesterday of the report of the Committee on Climate Change, requested by the UK, Scottish and Welsh Governments in light of the Paris Agreement and the Intergovernmental Panel on Climate Change’s Special Report in 2018.  The report, “Net Zero – the UK’s Contribution to Stopping Global Warming, states that the UK can end its contribution to global warming within 30 years by setting an ambitious new target to reduce its greenhouse gas emissions to zero by 2050.

At the very  start of the Report, it highlights, in a detailed 48 page section, the vital role that hydrogen could play to achieve such a target. “We have the experience and capability to help deliver the UK’s carbon reduction targets.  Our products in energy storage, industry and transportation sectors are already delivering benefits to forward thinking customers in the UK and in many other parts of the world.”

 

Strategic Minerals (SML.L) 1.61p £22.6m

The producing mineral company actively developing projects prospective for battery materials,  announced that the Leigh Creek Copper Mine  operation has made its first sale of copper cement produced at the Mountain of Light processing facility.

Sale of the copper commenced with an initial shipment of 5 tonnes of copper cement (approximately 70% Cu).

Production from the re-activated heap leach pads is continuing in line with management’s expectations.

Total production from the existing heap leach pads is forecast to be in the range of 150 tonnes to 180 tonnes of copper in cement.

Offtake agreement in place with Adchem on attractive commercial terms for all expected production.

 

Mysale Group (MYSL.L) 13.2p £21.5m

The international online retailer, announced that it has entered into an unconditional agreement to sell the trade and assets of the website cocosa.co.uk to Brandalley UK Limited.

The Business is the group’s main trading website in the UK and the disposal forms part of the rationalisation programme previously announced as the group increasingly focuses on the Australia and New Zealand (ANZ) region.

The consideration for the sale is £1.5m, payable in cash on completion. Completion of the sale agreement shall take place on 9 May 2019.

In the financial year to June 2018, the Business achieved revenue of A$15.7m, approximately 5% of total group revenue, incurred a loss before tax of A$0.4m (including attributable central operating expenses) and had assets with nil net book value.

 

Numis Corp (NUM.L) 254.5p £270.4m

HY Mar 19 results. Challenging market backdrop has impacted first half performance 

Investment Banking revenues 24% lower than H1 2018 but 3% higher than the second half of 2018. PBT down 63.6% to £8.1m.

Equities revenue down 28% reflecting weak UK investor sentiment and lower market volumes

Transition to MiFID II completed, payments for research remain in line with prior year despite reduction in institutional budgets

Dividend maintained at 5.5p and £7.5m spent on share repurchases in the 6 month period

Strong balance sheet, additional £35m of liquidity provided by new committed credit facility

Once greater clarity regarding the UK political outlook is established, we expect a material improvement in corporate and institutional client activity.  As for all market participants, predicting the timing of any such improvement remains difficult.”

 

Symphony Environmental (SYM.L) 6.52p £10.08m

AGM Statement from the biodegradable plastic technologies.

“As advised in our 2018 preliminary announcement on 14 March 2019, we believe the Group is reaching a pivotal point in its development. During this year, the Middle East market is set to increase the number of products which must be made with our d2w type of biodegradable plastic technology and we continue seeing further increases in enquiries from potential customers around the world, many being blue-chip companies, who want products that will comply with oxo-biodegradable legislation in the Middle East and elsewhere.

The development of new products for each of our d2w and d2p technologies continues at a satisfactory pace, and we remain encouraged by their growth prospects.

Revenues in key markets remain sensitive to timing depending on local end-user manufacturing patterns and stock holding, but we are confident that we will meet expectations for the year, with significant growth expected in the second half.”

 

S4 Capital (SFOR.L) 155p £563m

Q1Mar19 update from the new era digital advertising and marketing services company. The group continued to deliver very strong growth in line with expectations in the first quarter, at the level required to achieve the group’s three year plan of doubling its size organically on a like-for-like basis. The group continues to trade in line with budget and its objectives for 2019.

Reported revenue was up over 38% to £40.9m and gross profit up over 37% to £32.8m. Like-for-like revenues and gross profit, i.e. excluding acquisitions (there were none in this reporting period) and in constant currency, were up 35% and 34% respectively, reflecting the relative strength of the pound sterling against the US dollar during the first quarter.  “Client interest in, response to and engagement with the group’s first party data model driving and fuelling digital content creation and programmatic media planning and buying have escalated in the new year. Speed in all senses of the word is becoming a crucial competitive advantage and differentiator and we don’t have to set up an Institute to learn that. We just listen”

 

Volga Gas (VGAS.L) 77.5p £62.44m

Update on average production volumes for April 2019 from  the oil and gas exploration and production group operating in the Volga Region of Russia.

Drilling of Uzen 4 horizontal sidetrack into the shallower Albian reservoir commenced on 16th March and completed on 1st May. The total metres drilled in the sidetrack was 1,132 meters including a 407 meters horizontal section at vertical depth of 795 meters. Flow testing of the well is expected to commence after the activation of underground packers to cut off water flow from beneath the reservoir, which is expected to occur during May 2019.

The average production in April 2019 was 4,905 barrels of oil equivalent per day (22.8% lower than March 2019). The decline in production was due to the gas plant being shut down for routine maintenance for 5 days during April.  In addition, as a result of lower nominations from Gazprom, for the last four days of April 2019, gas processing capacity utilisation was reduced to 16.2 mmcfd and is expected to remain at the same level during May 2019.

Management’s expectation for 2019 for production to average 5,900 boe per day including LPG volumes remains unchanged.

 

Rambler Metals (RMM.L) 1.55p £20.1m

The copper and gold producer, explorer, and developer, for the fiscal year ending 31 Dec 2018 it achieved record throughput by processing 364,176 tonnes of ore from the Ming Mine through the Nugget Pond copper and gold milling facility at a feed grade of 1.24% copper and 0.57 grammes per tonne gold. This is the second consecutive year that the Company has set a new throughput record.

Into 2019, to match increased mine output, the mill continues to push throughput and has recently achieved a one-day record throughput of 1,492 dry tonnes per day.  This is another significant milestone for the Company and confirms that incremental mill improvements will allow the facility to produce at a sustained rate at or greater than 1,250 dry tonnes per day.

 

Itaconix (ITX.L) 2.5p £6.7m

Following successful trials, Itaconix has received its first order from a European customer for its latest bio-based detergent polymer. The customer is a major producer of non-phosphate automatic dishwashing detergent products.  Itaconix polymers allow formulators to meet increasing consumer demands for environmentally-friendly products without compromising performance.

The new detergent polymer, which was introduced in 2018, has gained broad use in a new generation of North American automatic dishwashing detergents. However, this expansion of use into the European market represents a significant milestone for the Company due to the higher performance demands for automatic dishwashing detergents in Europe.

 

DP Poland (DPP.L) 8.5p £21.2m

AGM Trading Update.

Trading in line with management expectations

3 new stores opened in Q1, bringing the total number of stores to 66, across 30 towns and cities. 4 further leases signed for new sites

“Our marketing campaign featuring Damian Kordas launched in the second half of January and has been effective at driving sales, as has our trial partnership with food delivery aggregator Pyszne. All 66 of our stores are now on the Pyszne system.”

DP Poland, has the exclusive right to develop, operate and sub-franchise Domino’s Pizza stores in Poland.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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