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

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Off the Menu:

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Dish of the Day:

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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

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.”

 

Head Chef:

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

*A corporate client of Hybridan LLP

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