Small Cap Feast

Small Cap Feast – 04 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:

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 (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

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

Lightwave RF (LWRF.L) 7.15p £5.12m

 “The leading smart home solutions provider, announces the following trading update for the three months ended 31 December 2018, being the first quarter of its financial year ending 30 September 2019 (“Q1 2019”).

  • Revenue increased by 156% to £1.15 million (Q1 2018: £0.45 million) of which:

o  Telesales revenue increased by 46% to £229,000 (Q1 2018: £156,600); and

o  E-commerce revenue increased by 506% to £291,000 (Q1 2018: £48,000)

  • Record E-commerce Black Friday week performance, which ran from 19 to 26 November 2018, with sales of £130,000 (2017: £5,000)”. “Having delivered a number of process improvements over the past six months to drive revenue growth, the Company is encouraged by what it has achieved in Q1 2019, almost equalling the £1.17 million generated during H1 2018.

 “Lightwave’s retailer and distributor relationships and requisite marketing initiatives are now substantially expanded. I am confident that we can maintain this momentum by focusing on the channels and products, such as our lighting range, that are performing well.”

We could see no forecasts.

 

Independent Oil & Gas (IOG.L) 14.62p £18.5m

The development and production company focused on becoming a substantial UK gas producer, notes that the Financial Conduct Authority is conducting an investigation into the affairs of London Capital and Finance plc (“LCF”) and that the FCA has required that LCF may not (without the prior consent of the FCA) deal in any way with its assets and must cease conducting all regulated activity. There is no direct relationship between LCF and IOG. 

IOG wishes to clarify that LCF is not a shareholder in IOG’s primary financial backer, London Oil & Gas plc (“LOG”). LOG is a borrower from LCF and LOG is also a lender to IOG amongst other companies. 

Under the total of £38.55m loan facility agreements signed between IOG and LOG between December 2015 and September 2018 (the “LOG Facilities”), sums owed by IOG to LOG are only repayable within 36 months of their drawdown and there is no mechanism under which LOG can demand early repayment save in an event of default by the Company.

 

Glenveagh Properties (GLV.L) €75.5 €629

FYDec18 trading update from the Irish homebuilder listed on Euronext Dublin and the London Stock Exchange .

o  Revenues for the period of approximately €84m:

Ø Sales activity has been strong with 275 completed sales during 2018 (10% ahead of guidance);

Ø Unit Average Selling Price (“ASP”) of €287k is reflective of sales mix and the strong performance from the Group’s starter-home schemes;

  • 2019 ASP guidance €340k-€370k;

Further substantial land acquisition in Cork on lands secured to the National Asset Management Agency (“NAMA”) announced today:

Ø The Group has acquired a site totalling 43 acres (the “Site”) in Douglas, Co. Cork (the “Acquisition”). The Site is capable of delivering approximately 500 units for a consideration of €25m, a portion of which is deferred until units are delivered.

 The Group has substantially de-risked its 2019 construction targets with costs now largely fixed for 2019. The Group’s market backdrop remains very favourable with significant demand for housing .

We could see no forecasts.

 

Reneuron (RENE.L) 48.5p £15.35m

The UK-based global leader in the development of cell-based therapeutics, today announces that it has signed a collaboration agreement with a US-based biopharmaceutical company to explore the use of the Company’s exosome technology platform as a potential delivery vehicle for synthetic oligonucleotides used in gene therapy.

In the collaboration, ReNeuron will use its proprietary exosomes as well as sequence-based know-how and the US-based biopharmaceutical company will provide its expertise in the field of synthetic oligonucleotides to optimise their loading into exosomes.

If the initial feasibility stage of the collaboration is successful, candidates with suitable pharmaceutical properties will be taken into the next part of the collaboration which will evaluate pre-clinical safety and potential efficacy.

During the initial feasibility stage there are no cash payments between the parties. On successful completion of the feasibility stage, it is anticipated that a product cross-licensing agreement will be signed by the parties ahead of the pre-clinical and clinical development of the therapeutic candidates.

 

Gear4music (G4M.L) 510p £106.8m

Trading update for 4 months to Dec 18 from the  largest UK based online retailer of musical instruments and music equipment .

41% increase in total sales, up from 36% growth in H1—Both Own-brand and Other-brand revenues grew by 41% in the period

Active Customer1 numbers up by 47% to 666,000 at 31 December 2018, compared with 31 December 2017

Website conversion improved to 3.5%, up from 3.3% in the same period last year.

Further sales growth in excess of expectations was constrained by our York distribution centre, which reached maximum capacity during the peak trading period between Black Friday and Christmas. Whilst there was an improvement in margins in the Period compared to H1 FY19, these capacity constraints prevented further sales growth compensating for the lower gross margins and, as a result, the Board now expects FY19 EBITDA to be slightly below FY18 levels.  “We will also continue to invest in building scale and improving our customer proposition with planned investment in our logistics, systems, products and websites. “We will also continue to invest in building scale and improving our customer proposition with planned investment in our logistics, systems, products and websites “ FYFeb19E rev £109.7m,  PBT  £2,5m.

 

Cambria Automobiles (CAMB.L) 54.5p £m

Update on its franchising developments and recent trading ahead of its AGM.

The Group opened its second Lamborghini dealership in November 2018 alongside its Bentley dealership in Royal Tunbridge Wells. This follows a full redevelopment of the facility and provides an exciting addition to the Group’s growing High Luxury Segment (HLS) businesses.

The major property development for Jaguar Land Rover, Aston Martin and McLaren at Hatfield is progressing well and the Jaguar and Land Rover facility was completed for occupation in December as planned. It is now anticipated that the Aston Martin and McLaren facility will be ready in February 2019.

On 21 December 2018, the Group completed the sale of its Royal Wootton Bassett Freehold property for £2.75m.

The Group’s trading performance in the first three months of the current financial year to November 2018 has been in line with the Board’s expectations and ahead of the corresponding period in 2017, both on a total and like-for-like basis.  FY Aug 18E PE c.7x.

 

Johnson Services (JSG.L) 116p £426m

 HYDec18 update from the UK textile rental provider.

The £3.3m investment in our Stalbridge Linen unit in London referred to at the half year has now been successfully completed on time and on budget.  In addition, the recent acquisition of South West Laundry made at the end of August 2018 is being successfully integrated within our Stalbridge brand.

 As part of our strategy to increase future capacity and revenue generating opportunities within our high volume linen business we can confirm that we have now signed a contract with a developer (subject to confirmation of certain utility requirements) for the building and subsequent lease of a new laundry in the North of England, which is expected to come on stream in early 2020.

 

We remain positive about the future prospects for the business and we expect to announce full year results in line with market expectations.

FYDec18E PE  c.12,5x.

 

Nanoco Group (NANO.L) 38p £108.6m

Plessey Semiconductors and Nanoco Technologies today announced a partnership to shrink the pixel size of monolithic microLED displays using Nanoco’s cadmium free quantum dot (CFQD® quantum dots) semiconductor nanoparticle technology. Using its existing monolithic process, Plessey will integrate the Nanoco CFQD® quantum dots into selected regions of blue LED wafers to add red and green light. This shrinks the smallest practical pixel size from today’s 30µm to just 4µm, a reduction of 87%. The process will enable the production of smaller, higher-resolution, microLED displays in applications such as AR/VR devices, watches, and mobile devices, while enhancing both colour rendition and energy efficiency. “

Circassia (CIR.L) 55p £196.5m

Update ahead of today’s EGM to approve a move from the main market to AIM.

Circassia ended the year with cash, cash equivalents and short-term deposits of approximately £41 million.  During 2018, the Company continued its robust focus on cost containment, and consequently net cash outflow for the year is expected to be under £20 million.  Circassia expects revenue for the full year to be in the range £48 million – £52 million, following higher Tudorza® rebates in federal channels during the second half of 2018 and delayed recognition of revenue in China due to the establishment of the Company’s new local subsidiary and supply chain.

The Board’s expectations for 2019 remain unchanged with significant opportunities for strong sales growth in the current financial year to December 2019 following exercise of the Tudorza option and establishment of the direct sales operation in China.

 

Jadestone Energy (JSE.L) 33.9p £156m

The “independent oil and gas production company focused on the Asia Pacific region, announces the completion of works required for the restart of production from the Montara oil field, following an extensive maintenance and inspection shutdown.  Work has been completed and the facilities are undergoing the final stages of pressure testing to ensure asset integrity and a safe restart of production.  The oil train has been successfully leak tested and the gas train is now being tested so that both can start together, enabling immediate gas-lift and gas re-injection so as to optimise production operations, as rapidly as possible.  The documentation required to lift the various improvement notices, prohibition notice and direction letter issued by NOPSEMA, are in the process of being evaluated by the regulator to allow the facility to reintroduce hydrocarbons.  That close-out is anticipated within days.  The conclusion of this maintenance and inspection activity will result in improved facility reliability and uptime going forwards, resulting in no major planned shutdowns until at least H2 2020.

Head Chef:

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

*A corporate client of Hybridan LLP

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