Small Cap Feast

Small Cap Feast – 04 June 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 896

Total number of AIM Companies trading: 820*
* As at 24 May 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 May 2019

Set Menu Standard List:

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

Total number of Standard List Companies trading: 140*
* As at 24 May 2019

Dish of the Day:

Watches of Switzerland Group has joined the premium list of the London Stock Exchange.

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)

Trainline—Seeking £75m raise. Proceeds to target a net debt at IPO of c.2x LTM Adjusted EBITDA). In FY 2019, Trainline achieved net ticket sales of £3.2bn, and revenue of £210m.  Due June

Airtel Africa Limited — provider of telecommunications and mobile money services, with a presence in 14 countries in Africa, primarily in East Africa and Central and West Africa, looking to join the premium segment of the main market. Offer TBC, expected TBC

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

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.

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

 

Breakfast Buffet

Be Heard (SAR.L) 1.23p £10.93m

The Group announced that Carlsberg UK has appointed Be Heard to a newly-created role of Digital Agency to work across all the brands in the Carlsberg portfolio. Additionally, the Group is pleased to announce that it has won a number of new business engagements which include NHS England, Avon and Batiste. 

“The new business wins reflect in part, the growing relevance of Be Heard’s proposition and moreover, the talent, commitment and quality of our people. We are as a Group determined to deliver outstanding solutions for our clients, solutions which support them in achieving their commercial objectives both today and in the future.

Whilst the new business wins announced today do not lead us to alter our expectations for the current year’s results, they do however provide momentum into 2020. As stated at our AGM (held on the 15 May 2019), the Board remains confident of achieving a satisfactory result for 2019, one which is comfortably in line with expectations.”

CloudCall (CALL.L) 103.5p £26.4m

CloudCall, a leading cloud-based software business that integrates communications into Customer Relationship Management (‘CRM’) platforms, announced a significant new contract with a major US staffing firm. The contract, worth a minimum of £1.1m over three years, will see CloudCall’s integrated unified communications services rolled out to nearly 2,000 of their staff before the end of the year.

“This significant deal highlights the relevance of unified communications that integrate deeply with a CRM system and CloudCall’s growing reputation in the staffing and recruitment sector.

“This major contract win continues what has been a strong start to 2019 for new contract bookings and net new user growth, particularly in the US where we are seeing more traction from our new integrated SMS and IM products. The phased roll-out of this contract will be contributory towards monthly recurring revenues in 2019 and its full impact on Group revenue will be witnessed in 2020.

“This contract win will also contribute strongly toward our stated aim of growing our user base by over 1,000 new users per month in 2019.”

Billington Holdings (BILN.L) 356p £43.47m

Billington, one of the UK’s leading structural steel and construction safety solutions specialists, reported that its structural steel division, Billington Structures, has been awarded two contracts with a combined value of £30m.

Following strong progress made across the Group in 2018 and the award of £41m of new contracts, announced on 22 Nov 2018, this momentum has continued with the award of two further significant contracts totaling £30m. These contracts underpin the current contractual pipeline for the Company. There is no change to the Directors’ expectations for the financial period ended 31 Dec 2019 at this time.

Billington Structures will be providing steelwork for a large, local Town Centre Redevelopment Scheme which involves the construction of a number of new retail and leisure facilities.

In addition, the Group has secured a new contract to supply the structural steelwork for a large distribution warehouse in the North East of England. Work is expected to commence on this project during the Autumn.

Tower Resources (TRP.L) 0.82p £4.95m

Tower Resources, the oil and gas company with its focus on Africa, announced its preliminary results for the 12 months ended 31 Dec 2018.

Thali PSC $1.2m (2017: $431k) exploration and evaluation expenditure;

Publication of Cameroon Reserves Report by Oilfield International Limited;

Award of new Petroleum Agreement for an 80% operated interest in blocks 1910A, 1911 and 1912B, offshore Namibia, together with the National Petroleum Corporation of Namibia (NAMCOR);

Reduced loss before impairment of $1m (2017: loss $1.6m);

Impairment of Zambia licences totalling $2.8m (2017: $nil); and

Cash balance at year-end of $331k (2017: $2.2m).

Placing and subscription to raise £1.7m (gross) at placing price of 1p per share;

Interim financing via a $750,000 Bridging Loan Facility.

Keras Resources (KRS.L) 0.38p £8m

Keras Resources, the mineral resource company, noteed the announcement released by Calidus Resources Limited, in which it currently holds a c.32.3% interest, regarding an update at the Warrawoona Gold Project in the Pilbara of Western Australia.

Outstanding first assays from the regional drilling programme at Warrawoona

Shallow, high-grade gold intersected across the Klondyke Shear up to 5km west of the current 1.15Moz Klondyke JORC Resource at Warrawoona

Significant 4m composite results include:

8m @ 8.06g/t Au from 56m in 19TRAC008

4m @ 8.87g/t Au from 48m in 19WWWB004

12m @ 2.37g/t Au from 52m in 19KLAC009

8m @ 1.85g/t Au from 48m in 19TRAC009

4m @ 3.54g/t Au from 60m in 19TRAC006

4m @ 2.35g/t Au from 44m in 19SGAC003

Results highlight scope for Resource increase – further assays pending

Pressure Technologies (PRES.L) 105p £20.2m

Pressure Technologies, the specialist engineering group, announced that further to its update on 28 May 2019 it has now completed the sale of its wholly-owned subsidiary, PT Biogas Holdings Limited (“Greenlane”), which is the holding company for the Group’s Alternative Energy Division, to Creation Capital Corp (TSX-V: CRN.P), a capital pool company listed on the TSX Venture Exchange, for an aggregate price of £11.1m.

“The completion of this sale concludes the Board’s process to realise the potential of the Greenlane Biogas business in the expanding market for renewable natural gas.  I would like to thank the Greenlane team for their hard work and wish them and the new leadership team all the best for their future as Greenlane Renewables Inc. We will remain a supportive shareholder and anticipate retaining our holding for the medium term.”

IGas (IGAS.L) 58p £71m

IGas announced it has received final planning approvals and is moving to the execution phase for a waterflood project, at its existing producing field at Scampton in the East Midlands.

As announced in the AGM Trading Update on 14 May 2019, the Company continues to progress projects in its core conventional business which include additional gas monetisation and water injection.

The Scampton Waterflood Project will convert an existing well to a water injector to increase oil sweep and field estimated ultimate recovery by implementing secondary recovery (water-flood) in the western portion of the Scampton North field.

The recent D&M CPR estimated 239Mbbl of incremental 2P (Probable Undeveloped) reserves for this project and our estimated mid-case project economics have an IRR of over 40% and a NPV of £2.5 million. The total cost of the project is c.£2.0 million, the majority of which will be incurred in the next 12 months, with resultant incremental production of c.100 bopd.

Providence Resources (PVR.L) 10.1p £67.2m

Providence Resources, the Irish based Energy Company, provided a licence update on Frontier Exploration Licence (“FEL”) 3/04 located in the southern Porcupine Basin. FEL 3/04 is operated by Eni Ireland BV (36.913%) on behalf of its partners, Repsol Exploracion Irlanda SA (33.557%), Providence Resources P.l.c. (26.846%) and Sosina Exploration Limited (2.684%), collectively referred to as the “FEL 3/04 Partners”. The licence contains the undrilled Lower Cretaceous “Dunquin South” carbonate exploration prospect as well as the adjacent “Dunquin North” carbonate build-up, which hosts a residual oil column.

The FEL 3/04 Partners have elected to defer the acquisition of the planned 2019 Dunquin South exploration well site survey, which formed part of the previously approved FEL 3/04 2019 Work Programme & Budget.  Further updates on the revised scheduling of the well site survey will be provided as and when appropriate.

Shearwater Group (SWG.L) 3.15p £19.26m

Shearwater Group, the digital resilience group that provides cyber security and managed security services to help assure and secure businesses, announced that SecurEnvoy, its Identity and Access Management (“IAM”) solutions business, has developed and launched its new data security product, Multi-Factor Authentication (“MFA”)-as-a-Service.

This new subscription-based product is a core component of SecurEnvoy’s recently launched SecurIdentity™ cloud platform, which provides cloud hosted IAM solutions used by organisations to protect their critical data and infrastructure.

MFA-as-a-Service, which integrates with SecurEnvoy’s on-premise MFA solution, enables organisations to deploy a wide selection of methods to authenticate users accessing all Microsoft Office 365 web and desktop applications, to ensure a seamless and secure single sign-on.

Additionally, organisations will also be able to utilise SecurEnvoy’s expanded MFA solution with cloud-based services like Amazon Web Services, Dropbox, Salesforce, and Google Apps.

Renalytix AI (RENX.L) 214p £108.7m

Renalytix AI, a developer of artificial intelligence-enabled clinical diagnostics for kidney disease, announced that its in-vitro diagnostic manufacturing programme has reached a critical development milestone for the production materials used to measure blood-based biomarkers in the KidneyIntelX™ test. Multiple production-scale lots of the critical materials have been successfully produced and have met the stringent quality control specifications required to scale up manufacturing for commercial production. This milestone results from a successful collaboration with Meso Scale Diagnostics, LLC. (“MSD”), based in Rockville, Maryland, the world’s leading provider of highly sensitive multiplex immunoassays.

The KidneyIntelXTM diagnostic test will use machine learning algorithms to assess the combination of predictive blood-based biomarkers, including sTNFR1, sTNFR2 and KIM-1, and features from a patient’s electronic health record, to identify those individuals most likely to experience fast-progressing kidney disease.

Head Chef:

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

*A corporate client of Hybridan LLP

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