Small Cap Feast

Small Cap Feast – 05 July 2019

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

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

SRT Marine Systems (SRT.L) 33.25p £51.4m

SRT Marine Systems, the provider of maritime tracking, management and surveillance technologies, products and integrated system solutions for ports, waterways, fisheries and coast guards, announces the appointment of Simon Barrell to evolve and strengthen the Company’s Board of Directors to reflect and support SRT’s future growth.

Simon Barrell joins SRT as a Non-Executive Director. Simon is a highly respected and experienced Non-Executive Director. He is a qualified Chartered Accountant and brings with him a wealth of experience having worked with numerous public listed entities advising them on all financial matters but latterly specialising in acquisitions, disposals and mergers and AIM flotations.

Churchill China (CHH.L) 1,635p £164.7m

Churchill China, the manufacturer of innovative performance ceramic products serving hospitality markets worldwide, provided an update in respect of trading for the six months to 30 June 2019.

In the first half of the year our business has continued to perform well. Hospitality revenue growth has been ahead of our initial expectations, with the majority of this out-performance again being attributable to further progress in Europe. We now anticipate trading performance will be ahead of our earlier expectations for the full year.

Our Interim Results for the six months to 30 June 2019 will b


Vela Technologies (VELA.L) 0.1p £1.38m

The Board of Vela notes the recent announcement by BlockchainK2 Corp. regarding its investment of US$500,000 in Envexergy Inc, a modern blockchain investment network providing global access and secondary trading for alternative investments.

At the date of this announcement, Vela holds 272,000 shares in BlockchainK2 representing approximately 1.81 per cent. of BlockchainK2’s current issued share capital. BlockchainK2 is listed on the TSX Venture Exchange, on which the closing mid-market price of 3 July 2019 was CAD$0.24 which values Vela’s shareholding in BlockchainK2 at CAD$65,280 (equivalent to c. £39,770*).


Creo Medical Group (CREO.L) 179p £217.5m

Creo Medical Group, a medical device company focused on the emerging field of surgical endoscopy, announces that Chris Hancock, founder of Creo and Chief Technology Officer, has been awarded the Katharine Burr Blodgett Medal and Prize for 2019 by the Institute of Physics (“IOP”) and has been appointed as a Visiting Professor by the Royal Academy of Engineering.

The Katharine Burr Blodgett Medal, introduced by the IOP in 2008, is awarded for outstanding and sustained contributions to the organisation or application of physics in an industrial or commercial context.

The 2019 Medal and Prize was awarded to Professor Hancock “for designing and patenting an electro-surgery platform enabling microwave and bi-polar radio frequency to be delivered to a range of miniature endoscopic devices to treat lesions in the gastrointestinal (GI) tract.”


Ashley House (ASH.L) 8.12p £4.99m

Further to the Trading Update of 25th June, the Company advises that due to delays in the final legal processes, the three Morgan Ashley extra care schemes mentioned in that update did not reach financial close prior to the end of the Company’s financial period to 30th June 2019. As a result the related profit from these schemes will fall into the year to 30th June 2020.

As reported this means that whilst the Company is likely to be profitable in the second part of the fourteen month period to 30thJune 2019, it will show a loss for the full period. However, the Company is pleased to advise that the first of the three extra care schemes is all agreed, awaiting signature from the parties. In addition, for the further two schemes (one transaction) the complex legal documentation is almost agreed and the schemes are expected to reach financial close in the near future. Together, the Directors believe that these schemes will provide a strong start to the year to 30th June 2020.


Mirada (MIRA.L) 0.88p £7.35m

Mirada, a leading provider of integrated software solutions for digital TV operators and broadcasters, announced that it has sold its payment solutions provider business, Mirada Connect Limited, for a cash consideration of £2.1m (before expenses).

Connect was a wholly owned subsidiary of Mirada and provides cashless payment solutions to car park operators in the UK. Connect was not a core business of the Group and operated independently of Mirada’s main digital TV business.

Connect has been sold by the Company to PayByPhone UK Limited (part of Volkswagen Financial Services), a market leading pay by phone payment operator for parking, pursuant to the terms of a share sale agreement which, inter alia, contains certain warranties, indemnities and restrictive covenants given by the Company. The Company intends to use the net proceeds of the sale of Connect for general working capital purposes.

In the year ended 31 March 2019, Connect recorded revenue of £633,000 and a profit before tax of £122,000 and was valued at £556,000 on the Company’s balance sheet at that date.


Eco (Atlantic) Oil & Gas (ECO.L) 71.6p £122.1m

Eco (Atlantic) Oil & Gas, the oil and gas exploration company with licences in highly prospective regions in Guyana and Namibia, announced that drilling operations have commenced offshore Guyana with the spudding of the first exploration well on its Jethro-Lobe prospect on the Orinduik Block. Jethro-Lobe was spud at 22:45hrs (Local Guyana time) on Thursday 4thJuly 2019 using the Stena Forth drillship.

Eco and its partners on the Orinduik Block, Tullow Guyana B.V. (“Tullow”) (Operator, 60% Working Interest (“WI”)) and Total E&P Guyana B.V. (“Total”) (25% WI), estimate the well will take up to 40 days to drill.

Jethro Lobe is the first prospect to be drilled as part of a two-well programme and will be immediately followed by the drilling of an exploration well on the Joe prospect.

Eco is fully funded for its share of up to six potential exploration or development wells on the Orinduik Block in addition to the Jethro Lobe and Joe exploration wells, as announced on 10 June 2019.


Aquis Exchange (AQX.L) 486p £131.95m

Aquis Exchange, the exchange services group that operates pan-European cash equities trading businesses and develops and licenses exchange software to third parties, announced that it has agreed to acquire NEX Exchange Limited from CME Group Inc.  for a cash consideration of £1, plus approximately £2.7m based on NEX Exchange’s current working capital levels.

NEX Exchange, the UK based stock market for growth enterprises, is one of only four equities-focused Recognised Investment Exchanges (RIEs) in the UK. It works with 51 registered brokers, 7 market makers and 89 companies currently listed on its two markets with a combined market capitalisation of approximately £1.9bn.

Based on the audited financial accounts for the year ended 31 March 2018, NEX Exchange delivered revenues of £1.51m and a loss before tax of £2.05m. The Company believes that significant cost savings can be delivered in the short term, significantly reducing the loss in the initial period following the Acquisition.


Arc Minerals Limited (ARCM.L) 3.83p £26.3m

Arc Minerals, announced that it has acquired a further 5% interest in Zaco Limited (“Zaco”). Arc now holds a 47.5% interest in Zaco.

Following the discovery of the large West Lunga target (as per the announcement dated 4 July 2019), Arc Minerals has purchased a further 5% interest in Zaco from Rémy Welschinger, a Non-Executive Director of Arc, for a total consideration of 1,414,000 New Ordinary Shares of no par value in the share capital of the Company (“New Ordinary Shares”).


Driver Group (DRV.L) 59.5p £31.58m

Driver Group, the leading global professional services consultancy to the construction and engineering industries, providing multi-disciplinary consultancy services including expert witness, claims and dispute resolution services, announces, further to its announcement on 4 June 2019 of the implementation of a share buy-back programme that, on 4 July 2019, it has purchased 300,000 of its ordinary shares at an average price of 58.50 pence per share. The purchased shares will be held in treasury.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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