Small Cap Feast

Small Cap Feast – 06 February 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 914

Total number of AIM Companies trading: 844*
* As at 05 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 05 February 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 145*

Total number of Standard List Companies trading: 128*
* As at 05 February 2019

Dish of the Day:

No Joiners Today

Off the Menu:

Thalassa Holdings Ltd (THAL.L) has left AIM after joining the Standard List of the Main Market.

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

 

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

“Potential” intention to float from DWF, a global legal business. HY Oct 18 revenue of £133.4m.

AIM

United Oil & Gas (UOG.L) an oil and gas exploration and development company brought to the Official List (Standard Segment) in July 2017 by way of a reverse takeover of Senterra Energy plc. No capital to be raised, expected market cap of £17m and expected 28 Feb

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.

Speculation and Rumours

Bharti Airtel—Press reports of plans of  a £6bn London IPO for India’s number two mobile operator.

Breakfast Buffet

Phoenix Global Mining (PGM.L) 19.5p £6.29m

The North American-focused base and precious metals exploration and development company, has raised £0.95m   at 17 p with 1 for 4 warrants at 28p. Certain Directors and members of senior management of the Company have indicated their intention to subscribe for an aggregate of £35,000 at the Issue Price. The Fundraising is in addition to the funding announced on 24 Dec 2018. Accordingly, the total gross amount raised across the two fundraisings will be £1.3m.

The proceeds will be used to further advance the Company’s flagship asset, the historically producing Empire Mine in Idaho, United States. The Company intends to substantially increase its acreage surrounding the Empire Mine to accommodate the expanding resource. The new resource statement is underway following the 2018 drill programme and is now scheduled for completion at the end of Q1 2019.

 

Oriole Resources (ORR.L) 0.39p £2.74m

The “exploration company operating in Africa and Europe, provided a positive drilling update on its 85%-owned Dalafin project in the Kédougou-Kéniéba inlier of eastern Senegal, where IAMGOLD Corporation has the option to spend up to $8M to earn a 70% interest.

In Q4-2018, IAMGOLD completed an initial phase of aircore  drilling at the Madina Bafé prospect, which outlined multiple gold-in-soil anomalies (>20ppb Au) including a c.1.5km WNW-trending anomaly in south-east (announcement dated 25 Oct 2018). Initial results from a follow-up c.3,500m reverse circulation and diamond  drilling programme has confirmed that the mineralisation continues at depth, delivering a best intersection of 8 m at 2.56 g/t Au.

 

Personal Group (PGH.L) 363p £112.43m

The provider of employee services in the UK, announced the conditional acquisition of Innecto People Consulting Limited, a leading UK independent pay and reward consultancy, for a cash consideration of £3m. Furthermore, the Company announces the proposed appointment of Deborah Frost, NED, as CEO of the Group with effect from completion of the Acquisition.

Acquisition expected to be immediately earnings accretive. For the year ended 31 March 2018, Innecto generated sales and profit before tax of approximately £1.6m (unaudited) and £0.4m (unaudited), respectively. As at 31 March 2018, Innecto had gross assets of approximately £0.8m (unaudited).

FY2018E revs of £59.1m and EBITDA of £11.5m

 

OnTheMarket (OTMP.L) 99.5p £57.19m

“The agent-backed company which operates the OnTheMarket.com property portal, announced that traffic to its portal in Jan exceeded 23.5m visits, a new monthly record. Driven by investment in heavyweight national multi-channel advertising, the portal attracted over 4 times the number of visits compared with Feb 2018, the month of the Company’s admission to AIM.

As at 31 Jan 2019, OnTheMarket.com displayed over 600,000 UK residential property listings. The Company’s UK property stock is already over 80% of Zoopla’s and approximately 60% of Rightmove’s. This increase in coverage reflects the sustained rapid growth in the number of estate and lettings agent branches contracted to list at OnTheMarket.com since Admission: over 12,500 contracted branches as at 31 Jan 2019, compared with 5,500 in Feb 2018.”

 

Frontier Developments (FDEV.L) 960p £344.8m

HY Nov 18 results from the developer and publisher of video games based in Cambridge. For the six months to 30 Nov 2018 Frontier delivered a record financial performance, driven by the launch of Jurassic World Evolution in June 2018, Frontier’s biggest launch to date, and the ongoing performance of Elite Dangerous and Planet Coaster. Frontier achieved revenue of £64.7m in the period compared to £19.0m for the six months to 30 Nov 2017.

Operating profit of £17.2m at a margin of 27% (H1 FY18: £3m, 16%), with the growth in the percentage margin reflecting the substantial growth in revenue, albeit at lower gross profit margins.  Cash balances increased by £15.4m to £39.5m.

All three game franchises continue to perform well, following good trading performance during the competitive Holiday period incorporating Black Friday and Christmas price promotions. The Board is comfortable with analysts’ revenue projections of £79m to £88m for the current financial year.

 

Stride Gaming (STR.L) 101p £77.7m

AGM Statement from the online gaming operator. “The Group’s trading performance since the start of the financial year has been broadly in line with the Board’s expectations despite the continued challenging trading conditions. The Board remains confident in Stride’s ability to manage ongoing fiscal and regulatory market pressures and leverage its unique infrastructure to capitalise on significant growth opportunities in the dynamic UK market. The Group has a clear focus on winning and retaining mass market, recreational customers onto its bingo and casino sites.

Cost control and efficiencies remain a core focus area for the Group. Stride continues to leverage its infrastructure and proprietary technology to migrate more customers onto the Group’s higher margin proprietary platform and drive cost synergies across the business. The Board remains committed to its revised dividend policy to distribute at least 50% of Adjusted net earnings in dividends. In addition, the Board has proposed a special dividend of approximately 8p per share relating to the earn-out of the QSB  Gaming transaction.”

 

ITM Power (ITM.L) 19.5p £60.59m

“The energy storage and clean fuel company, noted the announcement from OLEV released yesterday, stating “In another boost for the zero emission vehicle and automotive sector, winners of a £14m competition to fund hydrogen fuel cell vehicle and hydrogen refuelling infrastructure projects have also been announced.  The innovative technology these vehicles use has long range (300+ miles) and fast refuelling (3-5 minutes) capability, and will support the Industrial Strategy Future of Mobility Grand Challenge to place the UK at the forefront of the design and manufacturing of zero emission vehicles.”

OLEV has awarded a consortium including ITM Power £3.1m of funding to deliver a 0.5 MW refuelling station and 51 Fuel Cell Electric Vehicles (FCEVs).  ITM Power will receive £1.8m for the refuelling station. The station will be delivered in the next 12 months.

In total, ITM Power has won sales and project awards of £7.1m over the last eight weeks, bringing the contract backlog to a total of £35.7m, of which £23.2m is under contract and a further £12.5m is in the final stages of negotiation.”

 

Blue Star Capital (BLU.L) 0.17p £2.99m

Update in respect of its investee company SatoshiPay.

The Company has been informed by SatoshiPay that it has completed a private fundraise raising approximately £830k at a valuation of £15m.

Blue Star has elected to convert its loan notes.  Following the completion of the Fundraise, Blue Star will hold a total of 5,739 shares in SatoshiPay, representing approximately 29.4% of its issued share capital. At a valuation of approximately £15.8m post money, the Company’s shareholding in SatoshiPay is valued at approximately £4.7m.

“We are pleased to exercise our conversion rights on the CLN and to maintain our shareholding at around 30%. The SatoshiPay private fundraise has secured support from experienced blockchain and fintech investors. Following the announcement last week regarding the partnership with Axel Springer and having now secured sufficient cash for its immediate needs we are confident SatoshiPay is well set for an exciting year.”

 

Mosman Oil & Gas (MSMN.L) 0.24p £1.59m

Production information for the six months from 1 July 2018 to 31 Dec 2018.

Net Production attributable to Mosman increased 47% in this period, compared to the prior six months. The one new well is Stanley-1, which continues to produce mainly gas with some oil.

The weather has resulted in lower production than expected, mainly due to wet road conditions affecting access to well sites. For example, production at Welch was limited by some wells not producing due to broken rods (which is a routine workover); and the drilling of Stanley-2 has been delayed as the road needs to be in dry condition for the heavy rig loads. Once the roads dry out, the workovers at Welch and drilling of Stanley-2 can proceed. Both of these activities are expected to further increase production.

 

Bluebird Merchant (BMV.L) 2.85p £6.49m

The Asian focused resource development group, announced the application for a grant for an assisted drilling programme at Kochang from KORES, the submission of the report on the feasibility of re-opening the mine to Southern Gold and the application for the permit to develop Gubong from the South Korean Government.

Kochang project joint venture company applies for grant for assisted drilling programme

Application made at the invitation of government-owned company

Expect to hear by end of Feb if application is successful

Report on feasibility of reopening Kochang submitted

Application for permit to develop Gubong made

 

Head Chef:

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

*A corporate client of Hybridan LLP

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