Small Cap Feast

Small Cap Feast – 04 March 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 908

Total number of AIM Companies trading: 837*
* As at 27 February 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 27 February 2019

Set Menu Standard List:

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

Total number of Standard List Companies trading: 142*
* As at 27 February 2019

Dish of the Day:

No Joiners Today

Off the Menu:

Altona Energy has left AIM pursuant to AIM Rule 1, the Company maintains its listing on the NEX Exchange

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

DWF, a global legal business,  expects to raise primary gross proceeds of approximately £75m. Due March

US Solar Fund, a newly-established investment company focused on investing in solar power assets mainly in the US, looking to raise $250m at $1. Expected 20 March

AIM

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.

Breakfast Buffet

Sareum Holdings* (SAR.L) 0.75p £22.29m

HY Dec 18 results from the  specialist cancer drug discovery and development business.

SRA737 is being investigated by Sierra in a clinical development programme targeting cancer patients with genetically defined tumours that harbour genomic alterations linked to increased DNA replication stress and hypothesised to be more sensitive to Chk1 inhibition. Sierra remains on track to report clinical data from these studies in the first half of 2019.

TYK2/JAK1 molecules selected in period for autoimmune diseases and cancers. Both autoimmune diseases and cancers. Sareum has prioritised its resources towards their preclinical development and towards first clinical studies, which are targeted for 2020.

Loss on ordinary activities (after taxation) of £764k (2017: loss of £722k)

Cash at bank as at 31 Dec 2018 was £1.54m

 

Ramsdens Holdings (RFX.L) 167p £50.42m

“Ramsdens, the diversified financial services provider and jewellery retailer announced the acquisition of the business and certain operating assets of a portfolio of 18 stores trading as The Money Shop from Instant Cash Loans Limited for a total consideration of £1.5m. The purchase price includes c£0.4m of goodwill and c£1.1m of assets. The Acquisition consideration will be satisfied in cash.  Under the terms of the Acquisition, Ramsdens will acquire the pawnbroking loan books of the 18 stores and of five other The Money Shop stores which are to close.”

The Board anticipates that the acquired stores will make a small contribution to Group PBT in FY 2020 after factoring in integration costs including those relating to refits, rebranding, training and IT integration and that the acquired stores should contribute approximately £0.6m to Group PBT in FY 2021.

 

FFIO Holdings (FFI.L) 14.25p £35.51m

The provider in the provision of diversified services across the entertainment industry, provides a trading update for FY Mar 19.

The Company’s Completion Contract business has been experiencing a significantly slower second half of fiscal 2019 primarily driven by timing of closing current deals, a decrease in average production size, lack of larger production titles and reserves for possible claims, the details of which are still be worked out. Additionally, the Company’s Insurance Agency business has been impacted by the delay in certain larger production titles which were originally scheduled for calendar Q1 2019. These titles are now expected to close in calendar Q2 2019. The combined impact is expected to be approximately $6m of EBIT. The Board of Directors expects Underlying EBIT for the fiscal year ending 2019 to be in the range of $7.5-$11.5m.

 

VR Educations Holdings (VRE.L) 9.75p £17.62m

The virtual reality (‘VR’) technology company focused on the education space, announced that the commercial release of its latest showcase experience, “Raid on the Ruhr”, will take place on 29 Mar 2019 and will be available on Oculus Rift, HTC Vive and Windows Mixed Reality devices.

Raid on the Ruhr is a virtual reality education experience based on the famous Dambusters mission of May 1943. A team of bomber and night fighter veterans were assembled from every part of the Commonwealth under a new squadron, codenamed Squadron ‘X’, to deliver the brainchild of inventor Barnes Wallis, the ‘bouncing bomb’.

Raid on the Ruhr allows users to experience the mission first hand and to fly the famous Lancaster bomber on its journey from the UK to the industrial heartland of Germany, the Ruhr valley.

 

Tandem (TND.L) 130p £5.78m

As previously reported, the first half of 2018 was characterised by exceedingly poor weather in February and March, large overstocks with a certain national retailer, other customers actively trying to de-stock and the ongoing impact of the demise of Toys R Us. However, in the second half of 2018 the Group experienced revenue growth of nearly 6% as it recovered from the poor start to the year. The UK outdoor toy market was reported to have declined by 17% in 2018.

Although there was a reduction in revenue of approximately 12% to £32.5m for the year ended 31 Dec 2018, the Group’s PBT for the year is expected to be only marginally behind the prior year. The year has started very strongly for the Group. 

 

Two Shields (TSI.L) 0.09p £1.43m

£500k placing at 0.1p with 1 for 1 warrants at 0.12p.

Placing proceeds will support the development of current portfolio companies, including $0.3m to fund further investment in BrandShield, an anti-counterfeiting, anti-phishing and online brand protection solution

The Placing has been undertaken with both existing and new shareholders, including experienced technology investor Mr Chris Akers, who has subscribed for 62,750,000 Shares which will represent 3% of the enlarged share capital of the Company, post-Placing.

 

Johnson Service Group (JSG.L) 128.8p £478m

Strong financial performance reflects organic revenue growth of 7.8%2 and contribution from acquisitions.

Full year dividend increased by 10.7% to 3.1p (2017: 2.8p) reflecting confidence in future prospects.

Significant capital investment during the year to improve productivity and increase processing capacity.

Acquisition of HORECA linen business, South West Laundry, on 31 August 2018 increases JSG’s nationwide presence.

Planned new high volume linen plant in Leeds on track for Spring 2020.

 

Bidstack Group (BIDS.L) 8.43p £16.5m

The native in-game advertising group, announced that it has successfully passed a significant technical milestone in its development having now gone live with its first full integration with a demand side platform (“DSP”), Avocet Systems Limited.

This is the first time Bidstack’s advertising inventory, which sits naturally within a 3D video game environment, has been available to buy programmatically on a DSP. A DSP integration enables Bidstack to take bids direct and control the pricing of its advertising space.

“While there are still a number of hurdles before this development is likely to result in a material impact on revenues, I believe that getting our inventory onto an innovative DSP is a substantial achievement for our business.”

 

Marshall Motor (MMH.L) 158p £123m

“One of the UK’s leading automotive retail groups, announced that it has completed two acquisitions comprising six ŠKODA franchised dealerships. Marshall is now the UK’s largest ŠKODA retailer which is line with the Group’s strategy to become the UK’s premier automotive group.

The Group acquired the business and assets of Leicester and Nottingham ŠKODA from Sandicliffe Limited on 31 Jan 2019. It subsequently acquired the business and assets of Bedford, Harlow, Letchworth and Northampton ŠKODA from Progress Bedford Limited on 28 Feb 2019. Each acquisition was completed in consultation with, and with the support of, ŠKODA UK.” Consideration £3.5m. Loss making in 2018 but expected to be accretive in future periods.

 

Tracsis (TRCS.L) 646p £182.47m

HY Jan 19 update from the provider of software and services for the traffic data and transportation industry.

Group trading for the first half of the year has been in line with management expectations. Group revenues are expected to be ahead of the previous year at c.£19m (2018: £18.1m). EBITDA and Adjusted Profit are also expected to be ahead of the previous year (2018: EBITDA £4.3m, 2018: Adjusted Profit £3.9m).

The Group completed the acquisitions of both Compass Informatics Limited and Cash & Traffic Management Limited in January with the full six month impact coming in the second half of the financial year.

At 31 Jan 2019, Group cash balances remained strong at £18.7m .

 

Head Chef:

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

*A corporate client of Hybridan LLP

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