Small Cap Feast

Small Cap Feast – 05 August 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 887

Total number of AIM Companies trading: 804*
* As at 2 August 2019

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 86*

Total number of NEX Growth Market Companies trading: 84*
* As at 2 August 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 166*

Total number of Standard List Companies trading: 144*
* As at 2 August 2019

Dish of the Day:

No Joiners Today

Off the Menu:

Paragon Entertainment, the attractions design, production and fit-out business, announces that following the appointment of administrators the group has cancelled its listing on AIM.

 

Dish of the Day:

No Joiners Today

Off the Menu:

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What’s Cooking in the IPO Kitchen?

NEX

Freyherr International Group PLC, the Medicinal Cannabis holding company established in 2016,  is planning to list on the NEX exchange on the 13 August.

Breakfast Buffet

CyanConnode (CYAN.L) 5.05p £9.03m

CyanConnode, a world leader in Narrowband Radio Frequency (RF) Smart Mesh Networks, has announced that it has signed a Memorandum of Understanding with Hexing Electrical Co. Ltd.

Hexing, established in 1992, is a multi-national manufacturing company that supplies Utilities in more than 80 countries across the world, with headquarters in Hangzhou, China. CyanConnode and Hexing have agreed to collaborate and deliver smart metering solutions in certain territories.  As part of the collaboration, Hexing will integrate CyanConnode’s RF Modules with its meters and CyanConnode’s Omnimesh Advanced Metering Infrastructure (AMI) platform with Hexing’s Meter Data Management System (MDMS), to create a cost-effective turnkey solution.

Bjorn Lindblom, Chief Commercial Officer, CyanConnode, commented:

“I am very pleased to announce that CyanConnode will be working with Hexing, who have a wealth of experience in delivering solutions to Utilities in more than 80 countries around the world.

“The Memorandum of Understanding will expand CyanConnode’s geographical reach and introduce its products and services to new customers.”

 

European Metals (EMH.L) 20.00p £29.33m

European Metals, an Australian and UK listed mineral exploration and development company, announced the granting of an extension to the Cinovec Exploration Licence that covers the two granted Preliminary Mining Permits (PMPs).

The granted PMP’s convey the sole and exclusive rights upon the Company to apply for a Final Mining Permit, however do not allow for further drilling. As the Company wishes to conduct further metallurgical and measured resource drilling, the extension to the exploration license that was due to expire in July 2019 was sought.

The licence has now been extended until 31 December 2020.

The Czech Ministry of the Environment stated in its extension decision the possibility of a further extension of the licence if necessary to complete all planned work. The Company does not envisage that a further extension will be necessary.

After granting of the exploration licence, a company needs to undertake a summary geological and reserves calculation report that is submitted to the Ministry of Environment (MoE) and if successful, results in granting of a Deposit Certificate.  Approval from MoE and a Deposit Certificate issued entitles the Company to apply for a PMP.

 

Warehouse REIT (WHR.L) 104.00p £249.86m

Warehouse REIT, the specialist warehouse investor, has agreed a 10-year lease renewal with Alliance Healthcare, the distribution arm of Walgreens Boots Alliance, at Daneshill Industrial Estate in Basingstoke. It is one of a number of successful asset management initiatives executed by Tilstone Partners this year, as it continues to drive value and income growth across the portfolio.

Boots has been in occupation of Unit 2 of the estate, comprising 113,000 sq ft of distribution facilities on a 6 acre site, since 1989. The 10-year lease renewal, with no breaks, in return for market standard incentives, has been agreed at a 42% uplift to the previous rent paid, with a headline rent of £925,000 per annum, or £8.19 psf.  The agreement reflects the strong demand for high quality warehouse facilities, and the shortage of alternatives, in this key distribution location as well as the importance of the unit to the tenant’s supply chain.

Alliance Healthcare is one of the UK’s leading pharmaceutical wholesalers and distributors, servicing 16,500 community pharmacies, dispensing doctors and hospitals. Its distribution facilities deliver 28,000 deliveries per day – one delivery every 2.5 seconds – with Basingstoke increasingly importance as a key distribution hub within its South Eastern network.

 

Belvoir Group (BLV.L) 114.50p £39.66m

Belvoir Group, the UK’s largest property franchise, provided a pre-close trading update ahead of publishing its interim results on 3 September 2019.

Trading during the first half of 2019 was strong with revenue and operating profit both comfortably ahead of the same period last year, both on an underlying basis and including the beneficial impact of the November 2018 acquisition of financial services network, MAB (Gloucester).

Their 300 (2018: 300) high street lettings and estate agency offices achieved a 5% increase in Management Service Fees, their key recurring revenue stream, with growth across both sales and lettings against a sector backdrop of falling sales activity and the introduction of a ban on tenant fees in June 2019.

Net banked commission in H1 by Brook Financial Services Limited was up strongly by 23%; this being a like-for-like comparison with 2018.

Consequently, the Board is confident of meeting market expectations for the year ending December 2019.

RTC Group (RTC.L) 52.00p £8.42m

RTC Group, the engineering and technical recruitment Group, announced its unaudited results for the six months ended 30 June 2019.

Group revenue from continuing operations increased to £46m (2018: £41m), profit before tax reduced marginally to £0.71m (2018: £0.77m), and basic earnings per share fell to 3.86p (2018: 4.38p). The final dividend in respect of the year ended 31 December 2018 of 2.55p per share (2018: 2.3p) was approved at the AGM on 24 April 2019 and paid to shareholders on 7 June 2019.

In line with the Group’s progressive dividend policy, the Directors propose an interim dividend of 1.4p per share (2018: 1.3p). The interim dividend will be paid on 29 November 2019 to shareholders on the register on 8 November 2019.

Commenting on the results, Bill Douie, Chairman, said: “we remain confident of continuing our satisfactory performance in the second half of 2019 and as such are maintaining our progressive dividend policy.”

 

Oriole Resources (ORR.L) 0.39p £2.67m

Oriole Resources, the exploration company operating in Africa and Europe, provided an exploration update on its 85%-owned Dalafin gold project located in the Kédougou-Kéniéba inlier of eastern Senegal, where IAMGOLD Corporation has the option to spend up to US$8M to earn a 70% interest (announcement dated 1 March 2018).

IAMGOLD has completed 4,167 metres of a planned 5,000m programme of shallow aircore  drilling at the Madina Bafé prospect as part of its Year 2 commitment (announcement dated 28 February 2019). Results include a best grade of 235 parts per billion  gold  and have outlined multiple new anomalies in the south of the Prospect as well as in a new area several kilometres  to the north. The programme has now stopped for the wet season and will resume in October. 

Best results include 235 ppb Au, 157 ppb Au, 138 ppb Au, 104 ppb Au and 99 ppb Au.

 

Inland Homes (INL.L) 67.80p £136.70m

Inland Homes, the leading brownfield developer, housebuilder and partnership housing company with a focus on the South and South East of England, has received planning consent at Cheshunt Lakeside, Hertfordshire, further to the signing of a Section 106 agreement.

The consent follows planning resolution for the Cheshunt Lakeside site, as announced on 26 June 2019, and is the largest ever consent secured by Inland Homes.

The Cheshunt Lakeside masterplan will create a new “urban village” comprising 1,725 homes, 19,000 sqm of commercial space together with the provision for a new primary school.  Inland Homes, together with its equal joint venture partner, owns and controls 1,253 residential plots and 4,905 sqm of commercial and educational space within the masterplan area with an estimated gross development value of £620m. Inland Homes is the lead developer on the broader masterplan, which it is working with the council to deliver.

 

Polarean Imaging (POLX.L) 29.00p £32.04m

Polarean Imaging, the medical-imaging technology company, with a proprietary drug-device combination product for the magnetic resonance imaging (MRI) market, announced that the first patient has been enrolled in its third trial site at the University of Cincinnati.

As announced on 11 June 2019, the Company added a third trial site, in addition to Duke University and the University of Virginia, to improve enrolment rates for its Phase III Clinical Trials. The Clinical Trials aim to demonstrate non-inferiority of the Company’s drug-device combination, which uses hyperpolarised 129-Xenon gas MRI, against an approved comparator for the evaluation of pulmonary ventilation.

Enrolment for the Clinical Trials has now passed 98% in the lung transplant pathway and 75% in the lung lobe resection pathway, with a total of 80 patients targeted for enrolment. The Company remains on target to complete enrolment for the Clinical Trials before the end of Q3 2019.

 

The Panoply (TPX.L) 97.50p £47.68m

The Panoply, a digitally native technology-enabled services company, announced its unaudited results for the year ended 31 March 2019.

Revenue was up 42% to £22.1m (FY2018: £15.6m), and  adjusted EBITDA was up 30%, ahead of market expectations, to £3.5m (FY2018: £2.7m) representing an Adjusted EBITDA margin of 16% (FY2018: 17%).

There are a growing number of long-term customer relationships, providing increased visibility for the Group with 45% of customers billed in the year to 31 March 2017 and 68% of customers billed in 2018 also billed in 2019.

 

Victoria (VCP.L) 97.50p £47.68m

The Board of Victoria, the international flooring designers, manufacturers and distributors, responded to recent press speculation that it is in discussions regarding the potential acquisition of Spanish ceramics manufacturer, Ibero Porcelānico.

In the event that the Potential Acquisition were to proceed it would be financed from the Company’s existing resources and be both leverage neutral and earnings enhancing. It would not be classified as a Substantial Transaction for the purposes of the AIM Rules for Companies. However, there is no guarantee that it will proceed.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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