Small Cap Feast
Small Cap Feast – 06 March 2019
Set Menu AIM:
Total number of AIM Companies (Incl Susp): 908
Total number of AIM Companies trading: 837*
* As at
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
Set Menu Standard List:
Total number of Standard List Companies (Incl Susp): 161*
Total number of Standard List Companies trading: 142*
* As at
Dish of the Day:
No Joiners Today
No Joiners Today
Off the Menu:
No Leavers Today
No Leavers Today
Dish of the Day:
No Joiners Today
No Joiners Today
Off the Menu:
No Leavers Today
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
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.
Shepherd Neame (NEX: SHEP) 1,075p £159.7m
HYDec18 results from Britain’s Oldest Brewer and owner and operator of 322 high quality pubs in Kent and the South East.
Underlying profit before tax rose by +1.4% to £5.9m (2017: £5.8m). Incurred a one-off exceptional charge of £10.8m associated with the refinancing of the business and the cancellation of the previous swap contracts. As a consequence, statutory loss before tax is £4.1m (2017: profit £5.5m).
Managed pubs account for nearly half of Group revenue. Managed divisional turnover grew by +7.7% to £35.5m (2017: £32.9m). Managed pubs like-for-like (LFL) sales grew by +4.1% (2017: +2.1%). Average EBITDAR per managed pub grew by +8.5% (2017: -3.5%). Despite ongoing cost inflation, underlying managed pub margin increased by 80 basis points to 15.1% (2017: 14.3%)
Tenanted divisional turnover grew by +0.7% to £18.1m (2017: £18.0m). LFL EBITDAR grew by +2.2% (2017: +2.1%) and average EBITDAR per tenanted pub grew by +4.0% (2017: +5.7%)
Since the half year, trade has continued to be good, with same outlet like-for-like managed pub sales up +3.7% for the 35 weeks to 2 March 2019, like-for-like tenanted pub EBITDA up +2.6% and own brand beer and cider volumes up +0.4%.
Anpario (ANP.L) 330p £78.74m
FY Results from the international producer and distributor of natural animal feed additives for animal health, nutrition and biosecurity. 34% advance in profit after tax to £4.0m (2017: £3.0m)
31% uplift in diluted earnings per share to 18.52p (2017: 14.17p)
8% improvement in adjusted EBITDA to £5.5m (2017: £5.1m)
Sales of £28.3m (2017: £29.2m)
Proposed final dividend of 5p (2017: 4.5p) per share, total dividend for the year 7.2p (2017: 6.5p) an increase of 11%
Cash balances of £12.9m at the year-end (2017: £13.6m)
Launch of: Next generation of mycotoxin binders branded Anpro®and Omega 3 supplement delivering improved fertility benefits to dairy farmers.
“Trading in the current year is ahead of the same point in 2018. However, we remain vigilant as there may be obstacles ahead due to Brexit and African Swine Fever, in particular. Our strong balance sheet and cash generation capability provide Anpario with a firm platform from which to invest in new products and to develop the exciting Anpario Direct opportunity.
Expanding profitable sales and distribution channels around the world remains our priority and the initiatives already implemented are gaining traction. This gives me confidence that we will return to sales growth as 2019 progresses.”
Concurrent Technologies (CNC.L) 64p £46.54m
The specialist in the design and manufacture of high-end embedded computer boards for critical applications, has launched a new rugged server board.
The TR H4x/3sd-RCx is a compute intensive server board designed to align with a new industry standard led by the SOSA™ Consortium. The board is fitted with a 12-core Intel® Xeon® processor matched with industry leading memory capacity and is the Company’s first board to provide 40G Ethernet enabling up to 4 times faster systems connectivity. There are also a range of security options including Concurrent Technologies Guardian package which can be tailored to meet bespoke customer security requirements.
The board is aimed directly at the defence market where the high-end computing power, connectivity and security will extend the design life of current applications, in particular within the reconnaissance and mobile infantry arenas.
FYDec18E revs of £16.7m and EBITDA of £4.6m
Origin Enterprises (OGN.L) 5.5p £595.54m
HY Jan 19 results from the Agri Services Group.
Group revenue up 19.5% to €701.6m (H1 2018: €586.9m), driven by increased agronomy services revenue and crop input volumes, increased fertiliser prices and the Fortgreen acquisition in Latin America
Positive performance in the first half of the year with operating profit of €9.1m (H1 2018: €2.3m)
Good first-time contribution, as guided, from the Fortgreen acquisition in Latin America, with an operating profit of €5.5m
Underlying operating profit increase of €1m reflecting favourable early season demand in Ireland and the UK
Good progress achieved in digital agronomy services enablement. Over 800,000 hectares on-boarded on Contour digital platform by the end of the period
Increase in net debt to €238.8m (H1 2018: €171.4m), following acquisition activity and increased investment in working capital
Interim dividend of 3.15 cent per share (H1 2018: 3.15 cent per share)
Cambria Automobiles (CAMB.L) 65p £65m
The Group’s trading performance in the first five months of the current financial year to Jan 2019 has been ahead of the corresponding period in 2018, both on a total and like-for-like basis.
In the five-month period the total new car market was down 10.1%. The diesel segment of the market has been worst hit, continuing its decline in share, with diesel registrations down another 30% in the period as a result of the continued negative sentiment and Government policy towards diesel engine technology. Diesel engines now accounts for 29.3% of the market compared to 42% in 2017.
The Group was able to capitalise on the opportunity to deliver a number of franchise changes and subsequently six new franchise developments, with two Bentley, two Lamborghini, one McLaren and one Peugeot franchise added to the Group’s operations.
We could see no forecasts.
Omega Diagnostics (ODX.L) 13.5p £16.82m
The medical diagnostics company focused on allergy, food intolerance and infectious disease, announced that it has received its first purchase orders for its VISITECT® CD4 350 cut-off test and continues to make progress with its VISITECT® CD4 Advanced Disease test. The VISITECT® CD4 Advanced Disease test utilises a lower cut-off of 200 CD4 cells/mm³ of blood, a level at which patients’ immune systems are so weakened by HIV that they are at risk of infection by other life-threatening diseases.
As expected by the Company, the order quantities are low at this stage and reflect distributors’ intentions to seed their private business-to-business market channels in the initial stages. Nevertheless, this is an endorsement of the Company’s ability to develop and then commercialise this product through the regulatory processes in international markets. “We expect to supply customers before the end of the current financial year.”
Cake Box Holdings (CBOX.L) 157.5p £62.6m
The specialist retailer of fresh cream cakes, announced that it has acquired the freeholds of two warehouse and distribution centres in Bradford and Coventry for an aggregate consideration of £1.4m. The consideration has been funded from existing cash resources.
The two warehouse and distribution centres will help support the Group’s future growth, including new franchise store openings which continue strongly and in line with its plans. As at the end of Feb 2019, Cake Box had 111 franchise stores, having opened a further 10 since its half year end. In addition, as set out in the Group’s interim results on 28 Nov 2018, Cake Box intends to install some sponge production capability at the new centres which would enable the Group to reduce its distribution costs and provide a back up to its existing production facility in Enfield.
The Group expects to give an update on trading for the year ended 31 March 2019 in April 2019.
Autins Group (AUTG.L) 20p £4.86m
Revenue increased to £29.2m (FY17: £26.4m)
Gross profit decreased to £7.2m (FY17: £9m)
Adjusted EBITDA fell to a loss of £0.3m (FY17: profit of £2m)
“Whilst the financial performance was unsatisfactory, the strategic progress was very positive. Group sales have grown 45% in the last 2 years. The customer base has diversified, expansion into Europe has accelerated, and sales into new markets continued to grow. Our unique Neptune technology has been approved by all target customers and generated a large fast-growing sales pipeline. With renewed focus on cost control and sales conversion we are confident 2019 will deliver positive results.”
Ananda Developments (NEX:ANA) 0.305p £1m
Update on its investee company, Liberty Herbal
Technologies Limited (“LHT”). Ananda owns 15% of LHT, the 100% owner of hapac ®, a technology for inhaling medicinal cannabis.
As previously announced, the hapac® product was launched in Milan, Italy over the Christmas and New Year period 2018. After 11 weeks of trading LHT has reported strong sales growth. It is important to recognise that sales and revenue numbers are from a low base.
The manufacture of hapac® does not require the use of potentially toxic solvents or synthetic additives; hapac® offers a more authentic experience, close to smoking but without the toxic effects of combustion.
Frontier Developments (FDEV.L) 990p £366.4m
“The developer and publisher of video games based in Cambridge, confirms that it has signed a major global IP licence to develop and publish a future game. Frontier anticipates a development cycle for the Game of approximately two years, with development expected to commence later in calendar year 2019.
The licence agreement entitles Frontier to develop and publish the Game, together with subsequent associated paid downloadable content, worldwide on both PC and console.”
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 firstname.lastname@example.org with “unsubscribe me”.