Small Cap Feast

Small Cap Feast – 04 February 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 914

Total number of AIM Companies trading: 847*
* As at 24 January 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 24 January 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 145*

Total number of Standard List Companies trading: 128*
* As at 24 January 2019

Dish of the Day:

Chaarat Gold Holdings— (AIM:CGH) RTO, the Company intends to acquire Kapan Mining and Processing CJSC, which owns the Shahumyan medium-sized polymetallic mine in Kapan in the Republic of Armenia. No raise, market cap of £107m.

Circassia Pharma (CIR.L) – specialty pharmaceutical company focused on respiratory disease transferring from the Main Market to AIM. No funds being raised. Mkt Cap c.£185m.

Off the Menu:

CSF Group has left AIM  following an earlier resignation of its NOMAD.

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

“Potential” intention to float from DWF, a global legal business. HY Oct 18 revenue of £133.4m.

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

United Oil & Gas (UOG.L) an oil and gas exploration and development company brought to the Official List (Standard Segment) in July 2017 by way of a reverse takeover of Senterra Energy plc. No capital to be raised, expected market cap of £17m and expected 28 Feb

Techniplas –global  producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient.  FYDec17 rev $515m.

Speculation and Rumours

Bharti Airtel—Press reports of plans of  a £6bn London IPO for India’s number two mobile operator.

 

Breakfast Buffet

DX Group (DX..L) 9.19p £52.72m

The provider of delivery solutions, including parcel freight, secure, courier and logistics services, provided an update on trading for the half year ended 31 Dec 2018.

The Group continues to make encouraging progress with its turnaround and trading in the period has been in line with management expectations. DX is in a good position to drive further improvements and remains on track to return to positive EBITDA for the financial year.

As planned, turnaround initiatives in the period were more evenly focused across the two Divisions, DX Freight and DX Express, in contrast to last year’s greater concentration on DX Freight. Net new business at DX Freight and DX Ex

 

Verseon Corp (VSN.L) 97.5p £152m

The clinical-stage pharmaceutical company developing disruptive life-science technology to advance global health, announces that dosing has started in the phase I clinical trial of VE‑1902, the Company’s leading candidate for a new class of PRecision Oral AntiCoagulants (PROACs). Preclinical data suggest that PROACs could become the first anticoagulants suitable for long-term co-administration with antiplatelet agents for the prevention of stroke and heart attack in coronary artery disease (CAD) patients.

First results due Q4 2019.

 

Kainos Group (KNOS.L) 450p £543m

“Kainos Group plc, a leading provider of Digital Services and Platforms, today issues a trading update for the period from 26 Nov to date.

The Group continues to see very strong momentum within its core markets and as a consequence, the Board expects the results for the year ending 31 Mar 2019 to be ahead of current market expectations.

Growth in Digital Services continues to be very strong, with ongoing demand for both Digital Transformation and Workday Services, across government and commercial clients. Digital Platforms continues on its growth trajectory, in line with previous guidance.”

FY Mar19E rev £137.6m and PBT £20.93m.

 

Frontier IP (FIPP.L) 84p £34.95m

Frontier IP, a specialist in commercialising university intellectual property, announced portfolio company Amprologix has won a contract worth £1.2m funded by the UK Department for Health and Social Care to accelerate development and scale up its lead antibiotic candidate to tackle antimicrobial resistant MRSA and related superbugs.

The contract from the Small Business Research Initiative, administered by Innovate UK, will be used to make the Company’s epidermicin NI01 antibiotic ready for phase 1 human clinical trials during early 2021.

 

Rosenblatt Group (RBGP.L) 83.4p £66.8m

“The professional legal services company, announced the following trading update ahead of the publication of its final results for the year ended 31 Dec 2018 on 30 April 2019. The Group expects to report results in line with market expectations. The Company has continued to maintain high net margins on the work it undertakes, consistent with the levels the Group aims to deliver, and the highest of its peer group.

The Company’s main practice areas, which are focused on contentious law, namely Dispute Resolution and Employment have continued to perform well. There has been an increase in the number of litigation cases that the Company is working on, with many being undertaken on a contingent basis, from which the Group will receive a high rate of return if successful.  This growing demand for litigation reflects the uncertain economic environment, as businesses look to legal action to resolve issues. “Intends to pay a dividend for the six months to 31 Dec 2018 of 2.8p per share.  FY Dec18E rev £12.5m and PBT £4.8m. 

 

Airea (AIEA.L) 60p £24.8m

“The manufacturer, marketer and distributor of floor coverings, announces the following trading update for the year ended 31 Dec 2018.

Revenue and Operating profit for continuing operations in the second half of the year exceeded the performance of the 6 months ended 30 June 2018 in line with management expectations driven by the continued growth in the order book and increased sales both in the UK and Internationally.

The successful launches of our new ranges continue to gain traction in the market and further launches in 2019 are planned to continue the revenue growth.”

We could see no forecasts.

 

Igas Energy (IGAS.L) 79p £96.5m

Trading and operational update for the year to 31 Dec 2018.

Net production averaged 2,258 boepd for the year and for Dec 2018 the average rate was c. 2,365 boepd (net). Operating costs for the year were c$32.0/boe. They anticipate net production of between 2,100 – 2,300 boepd in 2019.

Cash balances as at 31 Dec 2018 of £15.1m and net debt of £6.4m.

525,000 barrels hedged for 2019 with an average put price of $58.5/bbl.

Tinker lane abandoned in 2018.

Spring Road spudded in Jan.

Successfully completed the Albury gas-to-grid project with full production start-up and gas export to the grid at the end of Nov 2018 in line with projections (of up to 170 boepd, dependent on demand)

FY Dec18E rev £44.1m and £3m PBT.

 

CentralNic (CNIC.L) 50p £86m

CentralNic delivered a solid performance across the Group in 2018, and the Board expects to report results in line with market expectations for the financial year ending 31 Dec 2018.

Revenues are anticipated to be c.£42.5m (2017: £24.3m)

Adjusted EBITDA is estimated to be approximately £6.7m for 2018 with a minimal contribution from one-off premium domain sales (2017: £6.6m – including £3m contributed by one-off premium domain sales)

Net debt to be lower than market expectations at approximately £2.4m given strong cash conversion in the second half of the financial year (2017: £7.2m)

KeyDrive integration progressing well. c.£1m of cost synergies identified.

 

Mkango Resources (MKA.L) 10p £10.6m

Updated mineral resource estimate for the Songwe Hill Rare Earths Project.

60% increase in total Measured and Indicated Resources to 21 million tonnes, including first Measured Resource estimate for Songwe

Majority of the previously delineated near surface Inferred Resource upgraded to either the Measured or Indicated categories

Key objectives of 2018 drilling programme achieved, with the updated resource underpinning the ongoing feasibility study

Results indicate that the majority will be accessible by open pit mining

Updated and enlarged resource underpins Mkango’s strategy to be a long term, sustainable producer of neodymium, praseodymium, dysprosium and terbium used in permanent magnet motors for electric vehicles, wind turbines and other clean technologies

Publication of the NI 43-101 Technical Report in relation to the resource update will trigger the next £7m milestone investment from Talaxis to fund completion of the feasibility study.

 

Versarien (VRS.L) 135p £201m

Update on the Company’s activities in the People’s Republic of China by the advanced materials Group.

The Company confirmed that it has achieved positive progress in negotiating more specific terms with its various Chinese partners and has also signed an additional MOU with another of China’s Fortune 500 building materials companies. The Company and its various current Chinese partners have agreed to progress the use of Versarien’s graphene powders and inks for the applications including:

Flame-retardant applications.

Conductive shielding applications – specifically used as a conductive material in the production of shielding materials.

Thermally conductive materials – specifically the application of heat transfer functionalisation of synthetic materials.

New generation graphene heaters using graphene inks.

The development of graphene-enhanced winter sports equipment, specifically targeted at the 2022 Winter Olympic Games, to be held in Beijing.

The development of graphene-enhanced smart wearable devices, including sensors & smart earphones.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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