Small Cap Feast

Small Cap Feast – 07 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:

No Leavers Today

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

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.

Breakfast Buffet

Tax Systems (TAX.L) 104p £79m

“The Board of Tax Systems announces that it is in advanced discussions with Bowmark Capital LLP in respect of a possible cash offer for the entire issued and to be issued share capital of the Company, at a price of 110p per Tax Systems ordinary share.

There can be no certainty that an offer will be made by Bowmark for Tax Systems, nor as to the terms on which any such offer may be made.

In accordance with Rule 2.6(a) of the Code, Bowmark has until 5.00 p.m. (London time) on 7 March 2019 (or such later time and/or date as may be agreed by the Takeover Panel) either to announce a firm intention to make an offer for Tax Systems in accordance with Rule 2.7 of the Code or that it does not intend to make an offer”.

 

B P Marsh (BPM.L) 286p £107m

The niche venture capital provider to early stage financial services businesses, updated on trading for the Group’s financial year ended 31 Jan 2019.

Placing and Open Offer completed in July, raising £17m cash for the Company

PSC Insurance Group became a new 19.6% investor

New investment in ATC Insurance Solutions of Melbourne

Additional investment of £2.5m in Nexus

LEBC announced strong results for the year to 30 Sept 2018

Third acquisition by XPT and provision of additional funding

Dividend of 4.76p for the year to 31 Jan 2019.

£7.9m cash balance at 31 Jan 2019, of which £6.6m uncommitted pre-dividend

 

Strix Group (KETL.L) 254.4p £293.4m

“The global leader in the design, manufacture and supply of kettle safety controls and other complementary water temperature management components, announced it has made an offer, subject to certain conditions, to acquire specified assets from HaloSource Corporation for approximately $1.3m in cash. 

Halosource is a clean water technology company, admitted to trading on AIM, with operations in the US and China. Strix has offered to acquire certain US and Chinese assets which will assist in accelerating its strategy to expand and grow its water filtration division.

The acquisition is subject, amongst other things, to the negotiation of mutually acceptable legal documentation and the approval of HaloSource shareholders.”

 

Kromek (KMK.L) 25.25p £65.79m

The “worldwide supplier of detection technology focusing on the medical, security screening and nuclear markets, is pleased to announce a conditional Firm Placing and Open Offer to raise up to £21m before expenses” at 25p. A 9.1% discount to yesterday’s close.

The net proceeds of the Transaction will be used to significantly increase future manufacturing capacity and associated working capital to support the growth of the medical imaging business; to expand sales and marketing of the D3S for nuclear radiation detection; and to further strengthen balance sheet to provide the Company with flexibility to address and capitalise on opportunities as they emerge.

 

 

DP Poland (DPP.L) 7.8p £11.9m

£5.3m conditional placing at  6p  plus a further potential £0.5m from a ‘broker option’.  The Directors intend to primarily use the net proceeds of the Placing of approximately £5m to fund the medium-term store roll-out.

Peter Shaw will be stepping down as CEO of DP Poland by mutual agreement at the conclusion of the Company’s 2019 Half Year, in June 2019. Peter was co-founder of DP Poland and has led the business since Oct 2010 – shortly after it acquired the master franchise agreement for Domino’s Pizza in Poland.

System Sales growth of 24% to 72m PLN 2018 (58m PLN 2017);

Like-for-like System Sales growth of 6% or 2018 (vs 2017, pre-split6);

77% of total delivery sales were made online in 2018 (75% in 2017);

Revenue growth of 18% to 59m PLN in 2018 (50m PLN in 2017);

The shares are down 45% today.

 

Crimson Tide (TIDE.L) 2.85p £13m

Contract wins in the rail sector which have been achieved through its new partner channel. “An initial win has been gained with Arriva UK Trains subsidiary Chiltern Railways, with mpro5 providing mobile auditing solutions for train presentation. A further subscriber agreement has been signed with Northern Rail, where mpro5 will assist with staff management and station presentation. These transactions have been won via our partner Graphite Partners, with assistance from our OEM partner Samsung Electronics. The best of breed approach for device, functionality, flexibility and deployment convinced Northern Rail to commit to a five year agreement.

With the full contract value of the agreements amounting to  nearly £250,000, the acquisition of these agreements represents a step forward in our engagement with the Rail and Transport industry with further opportunities being explored directly and with our partners’ support.”

 

Gattaca (GATC.L) 110.68p £35.6m

HYJan19 trading update from the specialist Engineering and Technology (IT & Telecoms) recruitment solutions business. Group continuing NFI in H1 2019 +2% year-on-year at £36.6m. Total Group NFI was lower (-3%) due to the discontinuation of operations in Telecom Infrastructure contractor work in Africa, Asia and Latin America as well as the closure of offices in Dubai, Malaysia and Qatar, as previously announced as part of the Group’s review of its international footprint in Q1 2019. UK Engineering NFI continued to show consistent growth, up 3% year-on-year with strong performances from Infrastructure, Maritime and Engineering Technology

UK Technology NFI declined by -10% year-on-year, driven by UK IT (down -5%) and UK Telecoms (down -35%)

Group full year outlook continues to be in line with the Board’s expectations.

 

Starcom (STAR.L) 1.43p £4.2m

Update on its agreements with Xplosive Solutions Pty Ltd in South Africa for the supply of Kylos units for the monitoring of cattle. The Company announced in Oct 2017 that it had entered into a supply and support agreement with Xplosive to sell Kylos units. However, in Jul 2018 the Company announced that the agreement was delayed whilst Xplosive developed a collar for the cattle and pending local negotiations with regard to connectivity with local telecom providers. As a result, no revenues were generated under the original agreement.

The Company has now entered into a new agreement with Xplosive pursuant to which Starcom will supply Kylos units directly to Xplosive. The Agreement is for a 36-month period, over which Xplosive will pay a monthly fee for each Kylos unit, to cover the product cost and ongoing SaaS fees. The monthly fees are higher in the first six months, reducing thereafter. Over the term of the Agreement, the Company expects to receive approximately $0.5m  of revenue.

 

Randall & Quilter (RQIH.L) 170p £214m

“The global program underwriting management and legacy acquisitions specialist, announced that it has conditionally raised gross proceeds of approximately £100m through an oversubscribed placing of new Ordinary Shares to investors   and is proposing to raise gross proceeds of up to a further c. £7m by way of an open offer.” Priced at 153p or a 15% discount to yesterday’s close. “The proceeds from this Placing and also the Open Offer will be used to support the development of our program management business and assist in maintaining the AM Best credit and financial strength ratings of the Accredited companies. The proceeds will also replenish liquidity used or allocated to previously announced legacy acquisitions and will help to rebalance our equity : debt funding mix. R&Q is reaping the benefits of our transformation last year into a more focused business operating in two fast growing markets: program underwriting and legacy M&A. This transformation continues as are expanding our resources, hiring talent and restructuring to ensure we are best placed to serve our customers.”

 

PCI-PAL (PCIP.L) 25.2p £10.7m

“The secure payments provider to contact centres, is pleased to announce the release of a co-authored whitepaper with Verizon to examine and address the challenges in achieving Payment Card Industry Data Security Standard (‘PCI DSS’) compliance in contact centre environments. 

The Verizon Professional Services Security Assurance Practice and PCI Pal recently established a collaborative partnership on Payment Card Industry (‘PCI’) marketing through the joint publication of whitepapers, public speaking engagements and other joint marketing and sales initiatives.

A key recommendation from the research is to eliminate data breaches at the contact centre level by preventing payment data from entering the environment. This means businesses should replace pause and resume systems with Dual Tone Multi Frequency (DTMF) masking technology. By doing so, organisations can de-scope their contact centres from the complex requirements of PCI DSS, therefore eliminating sensitive card data from the conversation.”

 

Head Chef:

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

*A corporate client of Hybridan LLP

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