Small Cap Feast

Small Cap Feast – 07 June 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 895

Total number of AIM Companies trading: 820*
* As at 04 June 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 04 June 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 163*

Total number of Standard List Companies trading: 141*
* As at 04 June 2019

Dish of the Day:

No Joiners Today

Off the Menu:

Earthport Plc has been cancelled due to being acquired by VISA

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

Trainline—Seeking £75m raise. Proceeds to target a net debt at IPO of c.2x LTM Adjusted EBITDA). In FY 2019, Trainline achieved net ticket sales of £3.2bn, and revenue of £210m.  Due June

Airtel Africa Limited — provider of telecommunications and mobile money services, with a presence in 14 countries in Africa, primarily in East Africa and Central and West Africa, looking to join the premium segment of the main market. Offer TBC, expected TBC

ReAssure Group plc  –  The Group is a leading closed book life insurance consolidator in the United Kingdom with 4.3 million policies, £68.7 billion of assets under administration on a Post-L&G Illustrative Basis. It is considering a premium listing segment of the main market.

Main Market (Standard)

IMC Exploration Group (NEX: IMCP), focused on acquiring and exploring prospecting licence areas which have high potential for natural resource, is looking to admit its shares to the standard list and will withdraw for the NEX Exchange. Expected 11 June 2019


Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019.

Breakfast Buffet

Microsaic Systems (MSYS.L) 1.55p £6.85m

The developer of point of need mass spectrometry  instruments, is pleased to announce that it has signed a distribution agreement with CM Corporation Ltd for the exclusive distribution of the Microsaic 4500 MiD® MS detector in South Korea.

Established in 2000, CM-C is a specialist distributor of life science and analytical equipment, covering a wide range of markets in South Korea, including natural products, organic synthesis, pharmaceuticals, foods and environmental.

Estimates of the global market size for the reaction monitoring equipment market are in the region of $1.5 billion by 2022, with leading annual growth rates in Asia Pacific.

Mo Hoyule, Managing Director of CM-C, added: “We are delighted to be distributing Microsaic’s technology, alongside globally recognised brands such as CAMAG and ThalesNano. This will enable us to offer our customers in South Korea a total solution in some very exciting growth areas in on-line chemical monitoring.”

Braveheart Investment Group (BRH.L) 11.25p £3.05m

The fund management and strategic investor group, is pleased to announce that the audit of its accounts for the year ended 31 March 2019 is now proceeding. As indicated at the time of the release of the Interim Results for the six months ended 30 September 2018, it is expected that the audit process will take longer to complete this year than in previous years because of the added work and complications that have arisen from having to consolidate into Braveheart’s accounts the accounts of Kirkstall Limited and Paraytec Limited, two of Braveheart’s Strategic Investments. This consolidation of these two underlying investments is required as a result of Braveheart now owning in excess of 50 per cent. of these companies and exerting significant managerial control over them.

As a result of these developments, Braveheart now holds investments in five Strategic Investments alongside its portfolio of other historic investments. The Board expects to announce its results for the year ended 31 March 2019 in late July 2019 and therefore intends to hold the Annual General Meeting in late August 2019.    

Surgical Innovations (SUN.L) 2.50p £32.41m

Trading update from the designer, manufacturer and distributor of innovative technology for minimally invasive surgery. Following the strong final quarter of 2018, trading in the first quarter ended 31 March 2019 was in line with the Board’s expectations and showed modest growth in revenues compared with the equivalent period last year. This momentum has not carried into the second quarter, with orders in the UK and EU markets lower than expected. The disruption to order patterns by distributors and end users caused by Brexit uncertainties has made visibility of true demand more difficult than normal.

Revenues in export markets elsewhere remain unaffected, especially the US where growth has been strong.  Full year expectations for revenue will exceed those of the prior year by a more modest rate of growth than previously anticipated.  Whilst margins are expected to remain in line, overheads will reflect the investment in additional resources devoted to operational and regulatory matters. Accordingly, adjusted profit before tax is expected to be below the level achieved in 2018. The Group currently holds net cash and continues to be cash generative.

Renalytix (RENX.L) 231p £120.01m

The “developer of artificial intelligence-enabled clinical diagnostics for kidney disease, announces positive study results have been published in the Journal of Clinical Investigation (JCI) Insight.   These results show FractalDx portfolio technology can accurately predict early acute kidney rejection in transplant patients. Early detection of acute transplant rejection is a critical unmet medical need that directly effects transplant success and long-term patient survival. In addition, the published results suggest that FractalDx can be used to personalise and potentially optimise the administration of immunosuppression therapy in kidney transplant patients.  This could mitigate toxic side effects and damage to the transplanted kidney arising from excessive dosing..”

Mayan Energy (MYN.L) 0.12p £4.72m

The oil and gas company, provided a further update on its US onshore operations in Texas and Oklahoma. Since the last market announcement dated 15 April 2019, the Company has continued to work across its fields and strengthen the production base.

The RNS included a table of group production, incorporating production from Mayan’s Austin Field and Zink Ranch along with the recently acquired Fort Worth Field, for the month of May 2019.    It shows gross mean average production of 131.66 Boepd and net mean average production of 93.9 Boepd for the month.   

“This Operational Update demonstrates the rationale to acquire Attis’ operational resources and capabilities. Through a challenging and busy period, the Company has demonstrated both its ability to react and manage planned & unplanned operational situations.”

Anglo African (AAOG.L) 8.75p £21.18m

Since the announcement of 25 April 2019, the Company has been working on the publication of a CPR covering the Tilapia oil-field in the Republic of Congo. The primary purpose of the CPR was to update the Company’s reserve base following the successful drilling of the TLP-103C well which encountered hydrocarbons in every target zone including the potentially prolific deeper Djeno horizon. The CPR provider, LR Senergy, has informed the Company that it requires further data to be able to properly reflect the prospectivity of the Djeno. Accordingly, the Company has paused the work with LR Senergy pending the accumulation of such further data.  However, the Company had in parallel to the CPR process engaged a specialist technical analysis firm, Nutech, to produce its own CPI analysis and report on the Djeno. Nutech has now completed its analysis. The Company is very encouraged by the results it has seen to date which support the view that the Djeno reservoir at Tilapia is of high quality.  The Company is also considering a revised production plan for TLP-103C where oil continues to flow to surface under its own pressure.

PHSC (PHSC.L) 9p £1.47m

Update from the  provider of health, safety, hygiene and environmental consultancy services and security solutions to the public and private sectors.

Consolidated Group revenue for the period was approximately £5.21m (31 March 2018: £7.01m), and after premises costs and the exceptional gain detailed below, the Group achieved positive EBITDA of approximately £318,950 for the period (31 March 2018: approximately £92,500 after stock write-off and redundancy costs in that year.

The reduction in revenue is largely attributed to a significant decline in the sale of security solutions to retail clients as highlighted in our interim results.  This was impacted in particular by the temporary cessation of new works from the Group’s largest client in terms of revenues, as they went through a protracted restructuring process.  On the positive side, the final restructure recently agreed by means of a CVA did not involve the write-down of any monies owed to ourselves, and business from that client has since seen a small recovery.

Sativa Investments (NEX:SATI) 6p £32.3m

The UK’s first quoted medicinal cannabis investment vehicle and now an operating Company with two fully trading UK businesses, has entered into a commercial offtake agreement with a Swiss supplier for cannabis oil for the UK manufacture of cannabidiol (CBD) products.

The offtake agreement is with Alponics SA, a company founded in 2018 with operations in Vaud and Valais, Switzerland, a country where cultivation and production of CBD products has been legal since 2017. Alponics is expected to cultivate and provide high quality CBD Distillate and Isolate, beginning production this autumn. Alponics was founded by Pacific Rim Plantation Services (PACRIM), which has over 25 years of agricultural knowledge, specialising in responsible production to the highest quality of chemical-free edible oils, ensuring environmental safety and long-term sustainability.

KCR Residential REIT(KCR.L) 51p £8.05m

Further to the announcement of 1 April 2019, KCR Residential REIT plc, the residential REIT group, announces that Oliver Vaughan, a non-executive director, has extended the term of his unsecured interest-free working capital loan of £150,000 to the Company. The loan is now repayable on 30 June 2019. There is no right of conversion into equity. A fee of £10,000 is payable in relation to the extension.

Cadence Minerals (KDNC.L ) 0.14p £12.73m

Further to its announcement on the 21 May 2019 Cadence has entered into a binding investment agreement with Indo Sino Pte. Ltd. to invest in and acquire up to a 27% interest in the former Anglo American plc and Cliffs Natural Resources Amapá iron ore mine, beneficiation plant, railway and private port owned by DEV Mineração S.A..

The Amapá Project is a large-scale iron open pit ore mine with associated rail, port and beneficiation facilities and commenced operations in December 2007.Production increased to 4.8 Mt and 6.1 Mt of iron ore concentrate product in 2011 and 2012 respectively.

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Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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