Small Cap Feast

Small Cap Feast – 05 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.


What’s Cooking in the IPO Kitchen?


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

*A corporate client of Hybridan LLP


This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.

The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.

The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).

Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.

This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.

Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.

Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.

MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.

Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.

If you would like to unsubscribe, please email with “unsubscribe me”.