Small Cap Feast

Small Cap Feast – 04 February 2020

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Dish of the Day:

No Joiners Today

 

Off the Menu:

Mi-Pay has left AIM following the sale of its trading subsidiary.

 

Dish of the Day:

Off the Menu:

What’s Cooking in the IPO Kitchen?

AIM

Intention to float by Gemfields Group. No Capital Raise. Currently listed on JSE. (GML:JNB) at circa £122m.  The Group’s key producing assets, the Kagem emerald mine in Zambia  (believed to be the world’s single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world), are both expected to have long mine-lives with potential for expansion. Also owns the  Faberge brand. Due Valentines Day 2020.

Main Market (Standard List)

The Proof Of Trust has announced its intention to list on the Standard Market.  The Blockchain based business, owns patents to a protocol which facilitates dispute resolution based upon smart contract disputes.  Transaction details TBC.

Main Market (Premium)

Ninety One –proposed demerger and public listing of  Investec’s  global asset management business on LSE and JSE. 30 Sep 2019 AUM £121bn. Sale of existing shares. Expected free float of >60%. Due 16 march.

Cabot Square—Closed ended investment fund focussed on alternative assets and asset manager. Looking to raise £200m.  Will target investment opportunities that are expected to generate an attractive risk adjusted return and that can also make a positive ESG impact by focusing on some of the biggest challenges facing societies and economies.  Due 14 Feb.

Calisen Group. Potential Intention to Float. Owner and manager of essential energy infrastructure assets through its subsidiaries Calvin Capital and Lowri Beck . Consolidated FY Dec 18 revenue £162.1m and operating profit £25.4m. Raising up to £300m in primary plus partial vendor sale.  Expected Admission February 2020

The Global Sustainable Farmland Income Trust will invest in a diversified portfolio of operational farmland assets located in major agricultural markets including the United States, Europe, New Zealand, Australia and certain countries within Latin and South America. Raising up to $300m.   Due 28 February.

Investment firm Nippon Active Value fund is seeking to raise up to £200m at an issue price of 100p per share via an IPO.   The company aims to invest in a portfolio of quoted Japanese stocks with market capitalisations of up to $1bn.   First day of dealings expected early February.

NEX Exchange

Zapp Scooters, a developer and manufacturer of electric two-wheeled vehicles announced its intention to IPO on the NEX Exchange Growth Market.  The Company intends to raise up to £3.5m. Admission is expected to occur on NEX in February 2020.

 

Breakfast Buffet

SEC Newgate (SECG.L) 40.5p £9.8m

The international communications, advocacy and research group, today provides an update on Group trading for the year ended 31 December 2019, based on year-end preliminary figures.

Following the merger of SEC S.p.A. and Porta Communications Plc, which completed in September 2019, SEC Newgate expects to report results for the combined Group in line with management expectations, with consolidated total turnover in excess of Euro 47 million (unaudited), consolidated unadjusted Operating Profit of c. Euro 2.3 million (unaudited) and consolidated unadjusted Profit Before Tax of c. Euro 1.6 million (unaudited and subject to year-end adjustments). Consolidated Net Debt at 31 December 2019 was c. Euro 9.0 million (unaudited and excluding the impact of IFRS 16 adjustments).

 

Mattioli Woods (MTW.L) 860p £231m

the specialist wealth management and employee benefits business, today reports its HY Nov 19 results.

Financial highlights

  • Revenue up 3.8% to £30.3m (1H19: £29.2m)
  • Recurring revenues represent 91.5% (1H19: 89.9%) of total revenue
  • Operating profit before financing up 7.4% to £5.8m (1H19: £5.4m)
  • Adjusted EBITDA up 11.7% to £8.6m (1H19: £7.7m):
  • Profit before tax up 7.1% to £6.0m (1H19: £5.6m)

Interim dividend up 15.3% to 7.3p (1H19: 6.33p)

Strong financial position, with cash of £20.1m (1H19: £16.8m).

Profit outlook for the year remains in line with management’s expectations and the Group is well-positioned to grow, both organically and by acquisition, to continue delivering sustainable shareholder returns.

 

Uniphar (UPR.L) 1.3p £355m

The international diversified healthcare services business servicing the requirements of more than 200 multinational pharmaceutical and medical technology manufacturers updated on FYDec19 trading.

The business has performed in line with the Group’s expectations for the full year 2019 at both a gross profit and EBITDA level. The Group achieved gross profit organic growth of 7%, with gross profit growth across all three divisions in line with expectations. 

Throughout 2019 Uniphar has continued to deliver on its growth strategy of meeting the needs of speciality manufacturers through the provision of higher value services, with the Commercial & Clinical and Product Access divisions delivering over half of the Group’s gross profit.

Looking forward into 2020, Uniphar is well positioned to deliver continued organic growth across all divisions, in line with its medium-term outlook, with the additional benefit of the full year impact of recent bolt-on acquisitions.

 

Zytronic (ZYT.L) 197.5p £31.7m

AGM Statement from thr  world renowned developer and manufacturer of a unique range of internationally award winning optically transparent interactive touch sensor overlay products for use with electronic displays in industrial, self-service and public access equipment.

“We explained at the time of our Preliminary announcement in December, that based on current trading we were cautious about the short term. The position is unchanged as revenues during December and January have continued to be considerably behind last year, however, on a more positive note the order intake during January has shown a significant increase. These orders are not likely to benefit the first half results but are an encouraging sign of the prospects for an improvement in the second half that we were expecting and is normally the case.”

 

Horizon Discovery (HZD.L) 175.2p £263.6m

Pre-close update from the specialist  in the application of gene editing and gene modulation technologies.

   Full year 2019 Group unaudited revenues from continuing operations expected to increase by approximately 8% to approximately £58.3 million

  • Full year 2019 Group unaudited reported revenues expected to increase by approximately 7% to approximately £62.9 million.

All four Business Units performed well in the second half and this trend has continued at the start of 2020. The Group continues to follow its Investing for Growth strategy with continued investments in IT, Screening and R&D to support its new Base Editing platform. Management believe this will help to accelerate Horizon’s transformation into a high-growth, pure-play tools and services company, and expects revenue growth in FY20 to be in-line with expectations, and for the increased investments to reduce FY20 EBITDA to a marginal loss for the year.

 

Bluejay Mining (JAY.L) 8.22p £79.7m

Recently received assay results from the first geochemical survey undertaken at its Disko-Nuussuaq Ni-Cu-Co-PGM-Au Project in Greenland , which was completed in October 2019.  The Company has also been granted a newly expanded licence area at Disko as well as a new licence on Disko Island by the Mineral Licence and Safety Authority, Greenland .

Highly encouraging results from MMI-ME™ (Mobile Metal Ions) and SGH™ (Spatiotemporal Geochemical Hydrocarbon) soil geochemical surveys at Disko;

o  MMI-ME™ samples identified multiple nickel and copper geochemical anomalies, further enforcing both new and pre-existing anomalies

o  SGH™ results for nickel and copper mineralisation coincides with the Company’s defined drill-targets at Disko

 

Tissue Regenix (TRX.L) 1.175p £13.77m

Resolution of Cyber Security Incident .

Due to actions taken following the cyber security incident, as originally  reported by the Company on 28 January 2020, the recovery has now been completed and all critical IT systems have been restored and brought back online.  All processing in the Company’s United States facility has also resumed with immediate effect.

The incident is projected to have a very short-term impact on the Company’s ability to service customer demand, and it is anticipated that delayed orders will be dispatched over the coming weeks. Based on the Company’s  initial investigations, there are no indications of any external transfer of sensitive or financial data, and the Company does not expect any associated costs of the system restoration to be material to the short-term cash flow.

The Company has implemented additional data security procedures to reduce the risk of future similar incidents from occurring, and will review its IT security procedures and service providers on an ongoing basis moving forward.

 

GLI Finance (GLIF.L)4.8p £14.98m

 FYDec19 trading update.

The Group’s core business, Sancus BMS Group Limited continues to grow, with its asset backed loan book increasing 19% to £199m for the year ended 31 December 2019. The growth of Sancus UK has been below expectations, but the Group expects further traction in 2020 as this relatively new business becomes more established. The Group expects to have delivered a further £1m in cost savings for FY19 due to a reduction in headcount (from 42 to 34 staff).  As the impact of the reduction in interest income and slower than expected growth of Sancus UK outweighed the Group’s cost savings, the Group expects to record a net operating loss for FY19, however the outcome is highly contingent on a proposed refinancing of a development loan, upon which the Company had previously made a provision of £1.5 million.

Sancus BMS surpassed the £1 billion total lending milestone in 2019 and, with a very strong pipeline and a proprietary electronic platform, the business is well placed to build on this and take advantage of the significant growth potential in the UK and Ireland in 2020 and beyond.

 

Beowulf (BEM.L) 4.5p £27.1m

The mineral exploration and development company, announces that the Company has received a response to the CEO’s letter, sent on 19 December 2019, to Minister Ibrahim Baylan, the Minister for Business, Industry and Innovation.  “As mentioned earlier, the Government decision regarding the application is currently in preparation and I am afraid that we are not able to comment on when a decision is expected to be taken. 

However, I would like to emphasize that we have taken careful note of your information.”

 

K3 Capital group (K3C.L) 242.5p £102.3m

The  business and company sales specialist in the UK, today announced its interim results for the six months ended 30 November 2019.

  • Group revenue £8.0m (H1 2019: £7.2m)
  • Adjusted EBITDA £3.5m (H1 2019: £3.1m)
  • Net cash £6.8m (H1 2019: £5.9m)
  • Earnings per share 6.25p (H1 2019: 5.84p)
  • Dividend per share increased to 3.70p (H1 2019: 3.60p)
  • Record WIP pipeline across the Group

 

Head Chef:

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

*A corporate client of Hybridan LLP

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