Small Cap Feast

Small Cap Feast – 07 December 2018

Dish of the Day:

AJ Bell (AJB.L Main Prem)—one of the UK’s largest investment platforms. FYSep18—revenues up 19% to £89.7 million, profit before tax up 31% to £28.4 million.  Secondary sell down of £169m at  160p. Mkt Cap c £651m.

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

SEEIT will be the first UK-listed investment fund of its kind to invest exclusively in the energy efficiency sector. Looking to raise £150m. Due 11 Dec

Main Market (Specialist Funds)

The Global Sustainability Trust -aiming for attractive risk-adjusted returns by investing primarily in private market investments that are expected to have a positive environmental and social impact raising c.£200m. Due end Nov.


Litigation Capital Management—provider of litigation financing and ancillary services, moving from ASX (ASX:LCA) to AIM. Offer TBC.  Due 18 Dec. Mkt Cap A$64m.

Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is due to start trading on AIM 14 December. Raising £2m at 290p. Mkt cap at issue price £13.6m.

Manolete Partners—leading UK insolvency litigation financing business looking to join AIM raising £16.3m as a placing and £13.1 realised by the selling shareholder at 175p. Market cap £76.3m, expected 14 December

Titon holdings—international manufacturer and supplier of ventilation systems and window and door hardware. No capital raise. Due 10 Dec. Mkt cap c.£22m.

Greenfields Petroleum (TSX-V:GNF)  production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected early December.

Breakfast Buffet

Inspired Energy (INSE.L) 16.85p £99.7m

The “energy procurement consultant to UK and Irish corporates, announced that it has conditionally agreed to acquire Inprova Finance Limited for £19.5m in cash, on a debt free cash free basis  from Inprova Group Limited. The Acquisition is expected by the Board to be earnings enhancing in FY 2019 and beyond.

In addition, and in connection with the Acquisition, the Company proposes to raise up to £19m by way of a conditional placing” at 16.5p. IFL provides energy procurement services to its customers analysing usage data to recommend the appropriate options on either flexible procurement arrangements or a fixed price basis.

In the year ended 30 June 2018, IFL generated revenues of £7.8m and EBITDA of £2.9m

As at 30 June 2018, IFL’s order book stood at c.£11.6m


Quadrise Fuels (QFI.L) 2.4p £27.16m

“Quadrise announced a non-underwritten open offer to raise up to £2.16m through the issue of up to 86,220,497 new Ordinary Shares at a price of 2.5p per Ordinary Share on the basis of 1 Open Offer Share for every 10 Existing Ordinary Shares”.

Whilst the Company has faced a number of challenges recently, and there continues to be some way to go before the Company anticipates being able to progress to commercial projects, QFI and its clients believe that there are substantial opportunities in the power generation and marine markets for MSAR® in the near term. The recently announced business development milestones, which are further described below, are positive initiatives in this regard.

The Board “considers that, notwithstanding the positive recent business development initiatives, should access to additional funds not be secured by the end of Jan 2019, the Board would need to consider the commencement of an orderly winding down of the business at that time.”


Sound Energy (SOU.L) 12.85p £149.39m

“The Moroccan focused upstream gas company, confirmed that the drilling at TE-10, the second well of a planned three exploration well campaign in Eastern Morocco, has commenced.

The TE-10 well will test the North East Lakbir prospect in the Company’s Greater Tendrara permit and is located approximately 25km to the northeast of the recently awarded Tendrara production concession.

The well is designed to test both a material TAGI stratigraphic trap and a smaller TAGI structural closure. The North East Lakbir stratigraphic trap has updated mid case potential on a gross (100%) basis of 2.7 Tcf GOIP (4.5 Tcf GOIP upside case and a 1.5 Tcf GOIP low case) with a Sound Energy internally estimated chance of success of 14%. TE-10 lies within the stratigraphic trap, located on a smaller structural closure which has a mid case potential, on a gross (100%) basis, of 128 Bcf gas originally in place (210 Bcf GOIP upside case and a 75 Bcf low GOIP case) with a Sound Energy internally estimated chance of success of 26%.”


Zinc Media (ZIN.L) 0.38p £5.25m

“Zinc Media announced the appointment of Mark Browning as CEO. Mark will be appointed to the Board and commence his role at Zinc Media in the first half of 2019 and will work closely with David Galan to ensure an orderly transition.

Mark is a seasoned media executive and leader of creative and commercial teams. A specialist in building businesses and transforming established brands Mark is also experienced at creating and launching new ventures in the UK and the USA.

Mark joins the Company from ITN Productions, which he launched in 2010 and is currently Group Managing Director, having developed a diverse and substantial international production company. Mark joined ITN nine years ago, at which point the business was a predominantly news focussed producer which was dependant on two news contracts with ITV and Channel 4. Under Mark’s leadership, ITN has diversified into production and is one of the UK’s leading factual, factual entertainment, sport, digital and commercial super-indies.”


Immedia (IME.L) 26.5p £3.86m

Two commercial updates today. Won a three-year contract with Nationwide Building Society to provide radio facilities to its branch network. The contract relates to the production and delivery of Nationwide Live! by Immedia to the Society. This announcement follows related releases in Nov 2018, July 2018, April 2018 and March 2017 (in which Nationwide was referred to as a major UK high street financial institution).

And has further extended the reach of its multi-media content offering to smart devices and other audio platforms such as Amazon Alexa, Google Home, Apple Podcasts, Overcast and iHeart.

Immedia has engaged with leading voice aggregator Spoken Layer to offer appropriate services with content ingestion and distribution by Spoken Layer.


EVR Holdings (EVRH.L) 4.92p £55.92m

The “creator of virtual reality music content and operator of the MelodyVR platform, announced the appointment of Andy Brown as CFO of the Company.

Andy, formerly International CFO at Universal Music Group, brings a wealth of sector experience having spent over 22 years with the company. In his new role at EVR Holdings and MelodyVR, Andy will assist with both financial and commercial strategy, as well as with investor and corporate relations. Andy will not, initially, be appointed to the Board of EVR Holdings.”


APC Tech Group (APC.L) 7p £12.59m

Trading update from  APC which provides the design, specification and distribution of specialist electronic products, component and systems.

The Group continues to trade in line with management expectations and to make good progress in its three to five year strategy which is to grow through increased bookings from existing technologies, in particular those that sit in high growth markets; from the signing of new complementary product lines; and through targeted bolt-on acquisitions.

FYAug18 results due 17 Dec.


Team17 (TM17.L) 185p £239.60m

“The global games label, creative partner and developer of independent (“indie”), premium video games, announced that Genesis Alpha One will launch on 29 Jan 2019 and is available immediately for pre-order.   

The announcement of the launch of Genesis Alpha One was made at The Game Awards, the flagship awards ceremony for the gaming industry, held yesterday in Los Angeles.

The game will launch on PlayStation 4, Xbox One and on PC exclusively via the recently launched Epic Games store. The Epic Games store is a new digital distribution platform selling to PC gamers, which offers developers 88% of revenues from games sales.”

Genesis Alpha One is a sci-fi roguelike first-person shooter game, which puts the player in the role of an interstellar pioneer, on the ultimate mission to save the human species from extinction.


Inspiration Healthcare (IHC.L) 69p £21.93m

The Company has today been informed by NeuroproteXeon Limited (“NPXe”), that the IPO process remains ongoing. However, the Company does not expect this process to complete during the second half of 2018 as was announced on 7 June 2018. A further announcement will be made when new information becomes available.

NPXe is a late clinical-stage pharmaceutical and drug delivery device company developing and commercializing the proprietary use and delivery of XENEX™ (pharmaceutical grade xenon gas for inhalation) (plaiing a phase 3 study  in patients with Post-Cardiac Arrest Syndrome). Inspiration Healthcare holds 10% of the current issued share capital.


CIP Merchant Capital (CIP.L) 73p £40.15m

“CIP Merchant Capital is pleased to announce that, further to its announcement of 11 October 2018, it has completed its investment in 7Star S.r.l. (“7Star”), a private Italian company founded in December 2016 that seeks to disrupt the veterinary hospital sector in Italy. 

In line with the heads of terms announced previously, CIP Merchant Capital has invested, in aggregate, 6.1 million in 7Star. This aggregate investment comprises €2.6 million as consideration for an initial equity interest of 49 per cent. in 7Star and a further €3.5 million by way of an interest free shareholder loan to 7Star.”


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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