Small Cap Feast
Small Cap Feast – 07 May 2019
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What’s Cooking in the IPO Kitchen?
Main Market (Premium)
Jewel UK Midco Limited, the parent company of The Watches of Switzerland Group Limited, is looking to join the premium segment of the main market. Offer TBC, expect TBC
Finablr plc— global platform which provides Cross-Border Payments and Consumer Solutions, Consumer Foreign Exchange Solutions and B2B and Payment Technology Solutions to consumers and businesses in the large and growing payments and foreign exchange market is looking to list on the Main Market plans to raise $200m, expected May 2019
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
SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m
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.
Distribution Finance Capital Holdings plc — specialist lender which builds relationships with manufacturers and then provides working capital solutions up and down their supply chains to drive their growth is looking to join AIM. No raise, secondary offering of £19.8m at 90p, expected market cap of £95.98m. Expected 09 May 2019.
Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019
Arbuthnot Banking Group plc, primarily involved in banking and financial services including commercial banking, private banking, wealth planning and investment management, is looking to joining the NEX Exchange Growth Market. Expected 17 May 2019
Distil (DIS.L) 1.82p £10.54m
Distil, owner of premium drinks brands RedLeg Spiced Rum, Blackwoods Gin and Vodka, Blavod Black Vodka, Jago’s Cream Liqueur and Diva Vodka, provided an update on trading for the final quarter of its financial year ended 31 Mar 2019.
Unaudited year-on-year fourth quarter (Jan – Mar 2019) revenues and volumes were in line with our expectations, being 33% and 32% lower respectively, reflecting the additional stock build by our distributors during the third quarter. This was as a result of the earlier phasing of our promotional activities, the sales benefits of which were seen in the third quarter, which is our major trading period.
We continued to invest in the marketing of our brands, increasing year-on-year spend by 10% during the quarter. Sales from our distributors to the trade continued to grow with year-on-year volumes increasing 10%.
RA International (RAI.L) 45p £77.24m
RA International announced it has been awarded a contract by Facilities Development Corporation to support the delivery of the Copenhagen Chancery Select Improvement project, which is being carried out on behalf of the Bureau of Overseas Buildings Operations who direct the worldwide overseas building program for the U.S. Department of State.
Under the terms of the contract, RA International will provide construction services in connection with the refurbishment and upgrade of the U.S. Embassy in Denmark. The works are due to commence in the second quarter of 2019 and are expected to complete in late 2021.
The nature and geographical location of the services being provided under the U.S. Embassy Contract are expected to lead to a lower margin being generated than the Company would typically earn on this type of project in remote locations. The Board believes, however, that successful delivery of this contract will be another clear demonstration of RA International’s ability to execute significant and high-profile projects.
Empresaria (EMR.L) 74p £36.27m
Empresaria, the international specialist staffing group, will hold its AGM today. At the meeting the Chairman, Tony Martin, will make the following statement:
“The Group has delivered year on year growth in net fee income for the first quarter of 2019. The investment made last year in Grupo Solimano in Peru is performing well and in line with our expectations.
The Group is on course to meet market expectations for the full year, with the Group’s profit contribution anticipated to be more second half weighted due to the previously highlighted increase in central staff costs, new office openings and our brands in Germany and Japan starting this year from a lower base position.
A trading update will be published on 24 July 2019 and interim results for the six months ending 30 June 2019 will be published on 21 Aug 2019.”
Begbies Traynor Group (BEG.L) 68p £68.6m
Begbies Traynor, the business recovery, financial advisory and property services consultancy, issued a trading update for its full year ended 30 April 2019, ahead of announcing its annual results on 9 July 2019.
The Group performed strongly in the final quarter of the financial year, as a result of which we now expect our revenue and profit for the financial year as a whole to be comfortably ahead of market expectations. This was driven by a number of successful fee realisations combined with continuing strong performance from both operating divisions.
Cash collection in the period was significantly ahead of our expectations, which has resulted in a year end net debt position of £6m.
The integration of our recent acquisitions is proceeding well and their trading in the initial post-acquisition period is in line with our expectations.
John Lewis of Hungerford (JLH.L) 0.65p £1.21m
John Lewis of Hungerford, the specialist manufacturer and retailer of kitchens, bedrooms and freestanding furniture, provided an update to the market on current trading.
We remain confident that the business continues to trade positively with deposits taken tracking ahead of those taken in the same period in the prior year. However, we have experienced a slow-down in converting deposits taken into full orders. We believe this is primarily due to the prevailing market conditions impacting customer confidence, which remain affected by uncertainty due to Brexit and the retail climate generally. Sales for the second half are expected to be approximately 10% ahead of the prior year, although lower than management expectations by approximately £0.4m.
Further to the statement contained within our Interim Report announced on 18 March 2019, the Board therefore no longer expects to recover much of the loss reported for the six months ended 31 Dec 2018. As such, the Company expects to report a loss for the year ended 30 June 2019.
The Board continue to monitor sales closely and will provide a further update as appropriate.
Directa Plus (DCTA.L) 71.5p £36.29m
Directa Plus, a producer and supplier of graphene nanoplatelets-based products for use in consumer and industrial markets, announced that the Company has signed an exclusive agreement with Alfredo Grassi S.p.A., to broaden an existing collaboration in the development of graphene enhanced workwear and expand into military outerwear.
Directa Plus have been working in partnership with Grassi for the last three years and have produced more than 80,000 metres of fabric enhanced with G+ pristine graphene nanoplatelets, that have been used in the manufacture of thousands of garments.
The agreement between Directa Plus and Grassi provides for up to three years of exclusive co-operation in the relevant sectors.
The main objectives are:
To promote the uptake of graphene enhanced, advanced workwear and military outerwear in Italy, in most of Europe, and North Africa;
To develop new products suitable for end users in the relevant industrial verticals;
To build a greater joint understanding of market trends and drivers affecting demand for such products; and
To offer end users the maximum level of sustainability along the entire supply chain.
Kromek (KMK.L) 26.75p £89.59m
Kromek, a worldwide supplier of detection technology focusing on the medical, security screening and nuclear markets, provides the following update on trading for the year ended 30 April 2019 ahead of announcing its full year results in early July 2019.
As noted in the interim results announcement, Kromek entered the second half of 2018/19 in a stronger position than at the same point of the prior year with the Company delivering on its previously-signed customer product contracts in all of its segments as well as continuing to win new orders. This progress continued throughout the period and, as a result, the Company expects to report revenue growth for the full year 2018/19 and EBITDA profit in-line with market expectations.
The Company continues to gain traction in all its business segments with the award of high-value, multi-year contracts from its commercial and large government customers worldwide. With the increasing market adoption of its customers’ next-generation products that incorporate Kromek’s radiation detection solutions, combined with the successful fundraising completed in the second half of 2018/19, the Company is well-placed to capitalise on the expanding opportunities. Consequently, the Board continues to look to the future with confidence.
Thor Mining (THR.L) 0.75p £6.13m
The Board of Thor Mining announced further positive interim results from drilling at the Bonya tungsten deposits, adjacent Molyhil, in the Northern Territory of Australia.
The Bonya project is held in joint venture with Arafura Resources Limited (ASX: “ARU”), with both parties contributing to the cost of the program in proportion to their project equity (THR 40% : ARU 60%).
Remaining interim results for Samarkand prospect are now available via portable X-ray fluorescence determination. These results should be considered preliminary and subject to confirmation in subsequent laboratory assay.
Tungsten Highlights from Samarkand drilling include:
15 metres @ 0.44% WO₃ from 19 metres from drill hole 19RC026;
8 metres @ 0.36% WO₃ from 38 metres from drill hole 19RC028;
11 metres @ 0.61% WO₃ from 64 metres, including 2 metres @ 0.21% Cu from 69 metres from drill hole 19RC030;
Copper drill intersection highlights include:
5 metres @ 0.5% Cu from 9 metres including 2m @ 0.22% WO3 from drill hole 19RC029;
12 metres @ 0.69% Cu from 22 metres from drill hole 19RC030;
6m @ 0.97% Cu from 38 metres from drill hole 19RC032
ITM Power (ITM.L) 26.9p £85.2m
ITM Power, the energy storage and clean fuel company, announced the extension of the UK refuelling collaboration agreement with Shell, which was originally announced on 10 Sept 2015. The new agreement will run until 2024, and covers the refuelling of all types of hydrogen vehicles; from passenger cars to commercial vehicles, including buses, trucks, trains and ships.
Currently ITM Power operates two hydrogen refuelling stations (HRS) at Shell service stations at both Shell Cobham on the M25 and Shell Beaconsfield on the M40. Four further HRS are funded. The HRS at Shell Gatwick is under construction and will be opened later this year; Shell Derby will also follow in 2019, with two further London stations also planned. The UK hydrogen refuelling station network has been jointly funded by the UK’s Office for Low Emission Vehicles and the Fuel Cells and Hydrogen Joint Undertaking.
Renalytix AI (RENX.L) 175p £91.49m
Renalytix AI, a developer of artificial intelligence-enabled clinical diagnostics for kidney disease, announced a collaboration with University Medical Center Groningen, Netherlands, to evaluate KidneyIntelX™ across over 3,500 patients with Type II Diabetes. The study will assess how effectively KidneyIntelX™ identifies patients with fast-progressing kidney disease who would be most likely to benefit from new drug therapies to prevent or slow down their progression to end-stage renal disease and dialysis.
As part of the planned evaluation, the KidneyIntelX™ test will be performed at multiple time points on over 9,000 patient samples from completed clinical trial biobanks, providing valuable insight into the potential utility of KidneyIntelX™ as a predictor of response to breakthrough therapies for the treatment of diabetic kidney disease.
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