Small Cap Feast

Small Cap Feast – 05 June 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 895

Total number of AIM Companies trading: 820*
* As at 04 June 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 04 June 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 163*

Total number of Standard List Companies trading: 141*
* As at 04 June 2019

Dish of the Day:

No Joiners Today

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

Fox Marble (FOX.L) 6.88p £15.89m

FYDec18 results from company focused on marble quarrying and finishing in Kosovo.

Total production of 13,094 tonnes of marble at the Prilep Alpha and Maleshevë quarries (2017 – 8,811 tonnes).

Revenue for the year of €1.4m (2017 – €1.2m) with further advances of €0.3m for future sales.  5,059 tonnes of block material sold in 2018 (2017 – 4,641 tonnes), together and over 7,000 sqm of processed material sold (2017 – 5,000 sqm).

Operating loss for the year of €2.5m (2017 – €2.9m).  Loss for the year of €2.3m (2017 – €3.4m).

Acquisition of Gulf Marble Investments Limited for €1.8m funded by the issuance of a convertible loan note.

Separately the Company has entered into an important new contract to provide the stone to construct a temple in the United Arab Emirates.  Fox Marble will provide most of the stone for the interior of the building.  An initial deposit of $100k has been paid, and the total value of the contract over the next two years is expected to be in the region of $2.4m. 

Reabold Resources (RBD.L) 0.72p £28.67m

 The investor in pre-cash flow upstream oil and gas projects, is delighted to announce that Corallian Energy Limited, in which the Company owns a 32.9 per cent. interest, has been offered five new licences by the Oil and Gas Authority as part of the UK 31st Offshore Licensing Round.

Three of these new licences have been awarded with joint venture partners, while the other two have been offered on a 100 per cent. interest basis.

The five licences comprise 22 blocks and part blocks, including one in the English Channel (49 per cent. interest), two in the Inner Moray Firth (40 per cent. interest each), one in the Viking Graben (100 per cent. interest) and one in the West of Shetland basin (100 per cent. interest).

“The fact that Corallian has been awarded 22 new blocks and part blocks out of a total of just 144 demonstrates the significant capability and experience of its management team in identifying opportunities. In particular, the award of blocks around the Colter discovery is a highly important step for Corallian in realising further potential in the area and ultimately generating value for Reabold shareholders.”

Angle (AGL.L) 69p £99.72m

The  liquid biopsy company, announced that the first phase of its ovarian cancer clinical verification study has reported positive results.

The pre-study, undertaken by Dr. Richard Moore and colleagues at the University of Rochester Medical Center Wilmot Cancer Institute (Rochester), was designed to evaluate the use of ANGLE’s modified and further optimised ParsortixTM and HyCEADTM Ziplex® platforms as a simple blood test to detect the presence of ovarian cancer in women with a pelvic mass, in a clinical setting and with clinical samples.

The pre-study results demonstrate that the optimisation of the sample-to-answer molecular solution has been successful, paving the way to initiate the 200 subject ovarian cancer clinical verification study of patients who are presenting with a pelvic mass and scheduled for surgery.  A positive outcome from the clinical verification study would support ANGLE’s plans to launch a clinical assay for the detection of ovarian cancer in women with an abnormal pelvic mass. 

This study is expected to start in early Q3 CY19 and is projected to complete in Q1 CY20.

Curtis Banks (CBP.L) 312.00p £167.88m

One of the UK’s leading SIPP providers, is pleased to announce the appointment of Dan Cowland to the Board as the Company’s new Chief Financial Officer with effect from 8 July 2019, subject to regulatory approval.

 

Dan’s previous role was as Finance Director for WH Ireland Group plc, a role he held for five years.  Prior to this Dan was Finance Director at Shore Capital Stockbrokers from 2010 to 2014. He has also held senior finance roles at Macquarie Bank and Lehman Brothers.

Current CFO, Paul Tarran, will remain a member of the Board for a period of time, to ensure an orderly hand-over, before standing down.

Andalas Energy & Power (ADL.L) 0.19p £1.00m

Corallian Energy Limited, the licence administrator, together with its partners, Andalas, UOG Colter, Baron Oil and Corfe Energy have been offered Blocks 98/11b and 98/12 in the English Channel. Andalas has earnt the right to an 8% interest in the blocks through its Farm-In agreement with Corallian.

Block 98/12 contains the eastern portion of the Colter South discovery, a rotated fault block with Sherwood Sandstone reservoir which was drilled in a downdip position by well 98/11-1 in 1983, and recently confirmed as a discovery by the Corallian operated 98/11a-6 Colter appraisal well. This well encountered 9 metres of gross oil pay in Sherwood Sandstone and the prospect contains an estimated mean recoverable volume of 15mmbbls prospective resource, 30% of which is located on Block 98/12.

Block 98/11b contains the Ballard Point discovery which was drilled by Gas Council Exploration in 1984. Well 98/11-2 flowed 9.6m standard cubic feet of gas per day with 170 barrels of 45oAPI condensate  from Triassic Sherwood Sandstone

1PM (OPM.L) 43.00p £38.54m

The “independent specialty finance provider, is pleased to announce that it has appointed David Jones to head up its group IT, Systems and Innovation function.

David brings extensive knowledge to the Group with a career in IT spanning 30 years, having held a variety of senior IT roles for the past 20 years. Latterly, David spent over a decade as Group IT Director of former AIM listed financial services entity Jelf Group plc. This role saw him develop and oversee the IT infrastructure of a group that grew from 2 sites with some 80 staff to over 35 sites and in excess of 1,000 staff.

This appointment represents the final step in restructuring and strengthening the Group’s senior management team during the past two years. The Group’s Operating Board now comprises dedicated heads of each of 1pm’s central operating functions, comprising HR, Compliance, Risk, Marketing and IT, as well as Heads of the Group’s product divisions, namely Asset, Vehicles, Loans and Invoice Finance.”

Learning Tech (LTG.L) 85.80p £547.46m

AGM Statement from the  integrated digital learning and talent management services and technologies provider.  “2018 was a transformational year for LTG.  The acquisition of PeopleFluent extended the Group’s range of capabilities from digital learning to the adjacent talent software market and today LTG offers a broad range of product and service offerings across a diversified range of geographies, market verticals and clients, with the majority of revenues generated from multi-year contracts.

“The acquisition of the complementary Breezy HR in April opens up avenues for strong organic growth in the talent acquisition software market, enhancing LTG’s ability to leverage technology in new markets.  LTG’s product offering was further strengthened in May with the well-received launch of ‘Instilled’, a new home-grown Learning Experience Platform (‘LXP’). “

“Our confidence remains high that the Group will achieve its strategic goal of run-rate revenues of £200m and run-rate EBIT of at least £55m by the end of 2021.” 

K3 Capital (K3C.L) 131.50p £46.22m

Trading update from the business and company sales specialist .

The Board is very pleased to report that Adjusted EBITDA is expected to be at the upper end of the market guidance provided in the recent trading update on 5 April 2019. Revenue is also expected to be in line with market expectations.

The Company has entered the new financial year with a strong pipeline across the Group and consequently the Board remains confident of the Group’s future prospects and makes no change to its outlook for FY20.

Notice of Results

The Company looks forward to updating shareholders on publication of its audited results for the year ended 31 May 2019 on 17 September 2019.

FY May 19E rev £16.6m and PBT £7m.

Kavango Resources (KAV.L) 4.15p £7.00m

Processing of the data from Phase 2 of the airborne electromagnetic (AEM) survey carried out by SkyTEM over the northern section of the Company’s prospecting licences that cover much of the Kalahari Suture Zone (KSZ) structure in southwest Botswana has now been completed.

SkyTEM’s new low frequency AEM system has been able to penetrate to an average depth just under 400m, below the conductive cover of Kalahari sand and Karoo sediments.

The model identifies a number of conductors closely associated with gabbroic intrusives and faults.

To date 45 conductive anomalies have been identified from the Phase 2 survey. Of these, 24 conductors are detected on single flight lines. The remaining conductors are traceable over several lines. The longest conductor is 4.5km long.

The immediate objective is to identify the best 3 or 4 targets for drilling, to be carried out as soon as ground follow up is completed.

AA (AA.L) 55.90p £332.85m

AGM Statement from the UK’s leading provider of roadside assistance through personal membership and business partnerships.

“The Company will reaffirm that it is trading in line with expectations and remains well positioned to deliver Trading EBITDA growth and strong free cash flow generation in FY20 as well as meet its medium-term growth targets to FY23. “

FY Jan20E rev £977.35m and PBT £114.6m. PE of c.6x.

Head Chef:

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

*A corporate client of Hybridan LLP

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