Small Cap Feast

Small Cap Feast – 04 July 2019

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


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

Fox Marble (FOX.L) 6.97p £15.83m

Fox Marble, the Company focused on marble quarrying and finishing in Kosovo and the Balkans region announced it has entered into a new sales agreement with a customer based in China.

The Sales Agreement is for a minimum of 10,000 tonnes of Illirico Selene marble over the next year, and includes a range of grades of marble blocks. The buyer will be granted priority seller status in China.

“This buyer has been a recurring customer of Fox Marble over the last year, however this sales agreement formalises the relationship between us, ahead of an expected increase in volume of sales.   We look forward to a long ongoing relationship. “

Arc Minerals (ARCM.L) 3.55p £24m

Arc Minerals reported that a detailed review by its technical consultants, African Mining Consultants and Douglas Haynes Discovery Ltd. has fully endorsed Arc’s exploration strategy as well as identified a large new target called West Lunga in the western part of its licences in Zambia.

6km long West Lunga target identified

West Lunga target demonstrates anomalous copper over 6km strike, with peak values of 463ppm Cu

West Lunga target is located in the western part of the Zamsort & Zaco licences

Targets the same horizon that hosts the world-class Kamoa deposit

AB Dynamics (ABDP.L) 2,560p £562.09m

AB Dynamics, the designer, manufacturer and supplier of advanced testing systems and measurement products to the global automotive market, announced the appointment of Sarah Matthews-DeMers as CFO and she will join the Board with effect from 4 Nov 2019.

Currently Group FD of Carclo plc, Sarah was previously Director of Strategy and Investor Relations at Rotork plc where she led a wide-reaching strategic review of all aspects of the business. Prior to this she was Deputy Finance Director at Avon Rubber plc where her responsibilities included corporate reporting, investor relations, treasury, tax, M&A and post-acquisition integration. During her time at Avon, Sarah was part of the senior management team that transformed Avon from a £60m to a £350m market capitalisation company.


Igas (IGAS.L) 58.2p £69.04m

IGas announced plans for a new site, within its conventional portfolio, and the drilling of up to two exploration/appraisal wells on PEDL 235, in the Weald Basin, which IGas owns 100%.

The initial well will explore and evaluate the resource potential of both the Portland Sandstones and the Kimmeridge Micrites. Recent technical studies by the IGas team have concluded that the Kimmeridge Micrites have the potential for significant resources of c.300 million barrels of oil in place within PEDL 235. In addition, the initial well will also appraise the Portland Sandstone gas discovery (IGas 2C resources includes c.1.4 MMBoe in relation to the gas discovery.

The Company will shortly commence discussions with Surrey County Council, and other stakeholders, with a view to submitting a planning application.


Mattioli Woods (MTW.L) 767.5p £212m

Mattioli Woods, the specialist wealth management and employee benefits business, issued the following trading update for the year ended 31 May 2019. The final results for the year will be announced on 3 Sept 2019.

Strong growth in adjusted EBITDA and adjusted PBT versus prior year

Lowered costs for our clients while maintaining EBITDA margin ahead of 20% target

Total client assets of the Group and its associate increased to £9.4bn at the year end

Gross discretionary assets under management4 of £2.6bn, with net inflows of over £250m during the year

Recent acquisitions performing and integrating well

Strong financial position, with cash of over £23m

Post-year end appointments of Chief Compliance and Risk Officer and Group FD


Intelligent Ultrasound Group (MED.L) 15p £10.57m

Intelligent Ultrasound Group, the AI based ultrasound software and simulation company, announced that it has signed its first long-term licence and co-development agreement for its AI software with one of the world’s leading ultrasound equipment manufacturers.

The Group’s range of AI-based software aims to boost scanning quality and to streamline sonographer workflow in medical ultrasound specialties, such as anaesthesiology, obstetrics, gynaecology, radiology and primary care medicine.

The long-term agreement will enable the integration of Intelligent Ultrasound’s real-time image analysis software onto a range of specialty specific ultrasound systems marketed in the global healthcare market. Co-development work with the OEM partner will commence immediately, with initial royalty per unit revenues expected during 2021 following regulatory approval. Terms of the agreement are confidential and undisclosed for commercial reasons.


Cambria Africa (CMB.L) 0.78p £3.68m

Cambria announced that further to its announcement of 12 June, Payserv Africa Limited and Paynet Zimbabwe (Pvt) Ltd have instructed their legal practitioners in Zimbabwe, Titan Law, to commence legal action against the Bankers Association of Zimbabwe (BAZ) and related parties for anti-competitive practices seeking damages of US $100m. Payserv Africa and Paynet Zimbabwe are subsidiaries of Cambria.

Payserv Africa and Paynet Zimbabwe continue to engage individually with suspended banks on the Paynet platform as well as the Reserve Bank of Zimbabwe to find a solution to an impasse which has resulted in the suspension of services. Cambria believes this has exposed the banking sector to significant security and privacy risks. It understands banks are currently managing payments using manual spreadsheets sent by email and flash drives – much of this information is unencrypted or insufficiently encrypted.


CentralNic (CNIC.L) 62p £111.34m

CentralNic, the global internet platform that derives revenue from the subscription sales of internet domain names, announced the settlement of its 50m senior secured bond issue, the placement of which was announced on 24 June 2019, occurred on 3 July 2019.

Upon disbursement, which is expected before the end of this month, the Company will  use these funds to repay existing interest-bearing liabilities and to fund its most recent acquisitions: TPP Wholesale, Australasia’s leading platform for resellers of domain names and hosting, for a headline consideration of $24m AUD; and Hexonet, the global domain name reseller managing over 3.8 million domains, for consideration of up to €10m, up to €3m of which in shares.

Both acquisitions are progressing to plan and are expected to complete on schedule by the end of this month.


Empresaria (EMR.L) 69.5p £34.07m

Empresaria, the international specialist staffing group, announced the cash acquisition of a further 17.5% interest in a subsidiary, ConSol Partners Limited, taking its total investment to 82.5%. Empresaria has a long-term policy of purchasing non-controlling interests where it sees real value for shareholders and each acquisition is assessed on performance.

The shares have been acquired from management shareholders, including Graeme Hubert and Marc Cohen who are directors of ConSol, for total consideration of £3.5m on terms in line with the original acquisition in 2016. The funds will be provided from the Group’s existing bank facilities.

ConSol is a specialist recruitment business in the IT sector with a focus on niche sectors across communications, cloud and digital. With offices in London, Los Angeles and, from April 2019, Austin, Texas, they work with clients across the world and have placed clients in more than 55 countries.

ConSol has performed well since joining the Group and delivered on our expectations. This investment reflects the Group’s commitment to its core sectors where it sees high growth potential.


Directa Plus (DCTA.L) 84.5p £42.68m

Directa Plus, a leading producer and supplier of graphene nanoplatelets based products for use in consumer and industrial markets, announced the grant of a patent by the United States Patent and Trademark Office, relating to the Company’s technology to produce a water-based dispersion of pristine graphene nanoplatelets (GNPs). The technology allows Directa Plus to create an ink based on its G+ graphene product. The grant follows the award of a US patent, announced on 27 June 2019, for the Company’s core, chemical-free graphene manufacturing process which produces GNPs with a high level of purity (high carbon content, extremely low oxygen content).

The G+ water-based ink is a highly concentrated dispersion of pristine GNPs, which can be increased to a concentration of up to 50 per cent with the addition of a surfactant.  The product’s main benefit is its high degree of dispersibility in any water-based hosting formulation making the incorporation process easier. The G+ ink can be used in textiles applications to provide flame retardant properties or electrical conductivity, as well as for coating applications in, for example, the production of battery electrodes.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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