Small Cap Feast

Small Cap Feast – 05 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:

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)

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

Crossword Cybersecurity* (CCS.L) 335p £15.68m

Crossword Cybersecurity, the technology commercialisation company focusing exclusively on the cyber security sector, announced that it has signed an agreement with Nuvia Limited for the use of Crossword’s secure Third-party Assurance platform, Rizikon Assurance.

Nuvia is an international engineering, project management and service provider.  In the UK and internationally, they have been at the forefront of the nuclear industry and have developed a reputation for safe, high quality delivery.  Their operations include; turn-key design and build, consultancy, waste management, land remediation, decommissioning and radiation protection.

Nuvia benefits from being part of Soletanche Freyssinet, a world leader in specialised civil and geotechnical engineering, and a wholly owned subsidiary of VINCI, the world’s largest integrated concessions and construction group.

Rizikon Assurance is a secure, encrypted portal used by organisations to assure their third parties and suppliers.  It contains standard questionnaires on subjects such as cyber security, GDPR, supplier on-boarding, modern slavery and anti-bribery & corruption, and also supports the customer’s own question sets and scoring approaches.  It improves the scalability, security and auditability of third party assurance and due diligence via automation, centralisation and encryption.

 

Integumen* (SKIN.L) 1.45p £7.03m

Integumen, announced that the Company has entered into an agreement with Cellulac Limited to acquire hi-tech laboratory test equipment, to be installed into the enlarged Labskin UK laboratories in York.

The new laboratory, recently completed, will house this range of specialised test equipment, which includes Gas Chromatography-Mass Spectrometry and High-Performance Liquid Chromatography units and ancillary equipment.

This extends Labskin’s capability beyond skin care test services by monitoring the molecular growth and odour causing bacteria on lab-grown human skin. The cost of the Equipment is £400,000 which will be satisfied by the issue of a loan note (see below).

The consideration comprises a two-year nil coupon convertible, redeemable loan note in the sum of £400,000. The Loan Note is secured on the Equipment and is repayable on the earliest of the following events:

February 26, 2021;

the completion of a transaction whereby any person or group of persons acting in concert acquires a controlling interest of 50% or more in the Company; or

the sale of all or substantially all of the assets of the Company thereof (whether in a single transaction or a series of transactions).

It has been agreed that, in the six months following the acquisition of the Equipment, any costs of service, calibration and commission in excess of £20,000 will be offset against the Loan Note principal.

 

Bilby (BILB.L) 42p £26.76m

Bilby, a leading gas heating, electrical and building services provider, announced the following trading update for year ending 31 March 2019.

The second half has seen a continuation of certain challenging customer circumstances originally announced in the interim statement in Dec 2018.

As previously announced P&R, one the five companies within the Group, gave notice of termination of its contract to supply building maintenance services for MoD properties and is still subject to dispute and resolution proceedings. Additionally, delays to a major gas installation contract have continued and the Company remains in active discussion with the organisation regarding a resolution. As a result, P&R, through which the Company was undertaking both contracts, will now report a significant loss for the full year. Accordingly, the Board expects the trading losses and associated write offs at the division to lead to the Group reporting a positive EBITDA of between £2m to £3m before non-underlying restructuring costs and losses associated with the termination of the contract for MoD properties. Whilst the future of gas services within the P&R division is now being reviewed, it remains a core service for the rest of Group.

The other divisions of the Group continue to trade well and in line with management expectations for the current year.

 

EU Supply (EUSP.L) 10.5p £7.53m

EU Supply, the e-procurement software provider, announced strong demand in its target markets for 2019.

In particular, the Company has been awarded the following contracts with new clients in both Denmark and Germany:

A new procurement service provider in Denmark, which is live with the Company’s CTMTMsolution.

Two new clients in the Danish public sector, which were awarded following competitive tender processes, both of which migrated from a competitor’s solution and are live with the Company’s CTMTM solution.

Two new clients in Germany, one of which is now live with Company’s CTMTM solution.

In addition, the Group has configured its solution for use in the tendering process for the Femern Tunnel, which is proposed to connect Denmark and Germany and is believed will become the longest combined rail and road tunnel worldwide. The overall construction phase is expected to be 8 to 9 years. Some of Europe’s largest contractors and contract managers are expected to be involved. The first tenders for the project have been published on the Company’s CTMTM platform.

 

Watkin Jones (WJG.L) 215p £565.42m

Watkin Jones, a leading UK developer and constructor of multi-occupancy residential property assets, with a focus on the student accommodation and build to rent sectors, announced that the Group has acquired a prime development site in Woking town centre from McKay Securities PLC with capacity for approximately 350 build to rent apartments on a subject to planning basis.

The proposed development will comprise a purpose-designed build to rent scheme in which residents will benefit from high quality accommodation and outstanding communal facilities, including a resident’s lounge and roof terrace.  The scheme is also expected to include new retail and leisure space.  The development is expected to deliver a margin in line with target returns and is targeted for completion in FY 2024.

 

SimplyBiz (SBIZ.L) 192p £138.03m

SimplyBiz, the leading independent provider of compliance and business services to financial advisers and financial institutions in the UK, announced its audited consolidated results for the twelve months ended 31 Dec 2018.

Group Revenue up 15% to £50.7m (FY17: £44.1m)

Adjusted EBITDA up 19.7% to £11.4m (FY17: £9.5m)

Adjusted EBITDA margin increased to 22.5% (FY17: 21.7%)

Operating profit of £6.8m (FY17: £8.8m) after charging IPO related costs of £3.6m

Adjusted profit after tax increased 61.6% to £8.6m

Adjusted EPS increased by 28.2% to 11.92p

Net debt reduced from £1.6m at date of listing to net cash of £6.4m at 31 Dec 2018 (31 Dec 2017: net debt of £23m)

Final dividend proposed of 2.05p per share, in respect of the nine months trading to 31 Dec, post IPO, as per the stated intention in the admission document. Total dividend of 3.03p per share

 

Fox Marble (FOX.L) 8.75p £18.78m

Fox Marble announced the resumption of production after the usual winter shut down in our Prilep quarry in Northern Macedonia. The quarry, which contains white marble marketed as Alexandrian White, is now also producing substantial quantities of Alexandrian Blue from a newly developed section on the east side of the site. The quarry is expected to benefit from the deployment of additional equipment to significantly increase production levels to satisfy growing demand.

In Feb Fox Marble sold, and received payment for, 400 tonnes of Alexandrian White blocks to a new customer.  The customer is shipping these blocks to their facility in Drama in Northern Greece for processing. This customer was responsible for supplying similar material to the Sheik Zayed Grand Mosque in Abu Dhabi and has indicated their intention to purchase additional quantities of this marble on a regular basis throughout the year.

 

Mpac (MPAC.L) 137p £27.23m

Mpac, the global packaging solutions group, announced its results for the 12 months to 31 Dec 2018

Continued progress on the Group’s strategic initiatives. Increase in order intake of 4% compared to 2017 and a closing order book 16% higher than at the start of 2018. Sales growth of 9% to £58.3m (2017: £53.4m).

Underlying PBT of £1.4m (2017: £1.1m)

Non-underlying GMP equalisation charge of £7.3m (2017: nil)

Statutory loss before tax from continuing activities of £7.4m (2017: profit £4.3m)

Underlying EPS of 4.5p (2017: 4.2p)

Basic loss per share from continuing activities of 30.1p (2017: earnings of 12.2p)

Net cash of £27m (2017: £29.4m)

The Board has decided not to recommend payment of a final dividend

 

Craneware (CRW.L) 2,625p £710.19m

Craneware, the market leader in Value Cycle solutions for the US healthcare market, announced its unaudited results for the six months ended 31 Dec 2018.

Revenue increased 15% to $35.8m (H1 2018: $31.1m)

Adjusted EBITDA increased 20% to $11.6m (H1 2018: $9.7m)

PBT increased 7% to $9.3m (H1 2018: $8.7m)

Adjusted basic EPS increased 19% to 30.2 cents per share (H1 2018: 25.4 cents per share)

Cash position of $38.7m (H1 2018: $52.2m), following significant returns to shareholders and investments in the period

Proposed interim dividend increased 10% to 11p (H1 2018: 10p per share)

 

CIP Merchant Capital (CIP.L) 68.5p £37.68m

CIP Merchant Capital announced that it has acquired a further 2,500 shares in Orthofix Medical Inc. (formerly Orthofix International N.V.), a NASDQ listed medical devices company, for a total consideration of approximately $0.15m.

Following the acquisition, CIP Merchant Capital is now interested in 97,000 shares of Orthofix.

In the year ended 31 Dec 2018 Orthofix had net income of $13.8m and as at 31 Dec 2018 had net assets of $335.4m.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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