Small Cap Feast

Small Cap Feast – 08 April 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 898

Total number of AIM Companies trading: 827*
* As at 01 April 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 01 April 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 161*

Total number of Standard List Companies trading: 141*
* As at 01 April 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?

Main Market

Rustranscom plc— specialised rail freight transportation in Russia and Kazakhstan, announced its potential intention to conduct an IPO of GDRs. The GDRs are expected to be admitted to the Official List of the FCA and to trading on the main market of the LSE. Offering is expected to comprise predominantly primary shares, in the amount of circa $300m.

Main Market (Premium)

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 16 April

Network International Holdings—Leading enabler of digital commerce across the Middle East and Africa  region, operating across over 50 highly under penetrated payment markets that contain a total population of 1.5 bn. 2018 rev $298m, underlying EBITDA $152m.  Due April. No new funds to be raised. Secondary sell down. Targeting free float of  at least 25%.

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.

Loungers plc—the operator of 146 café/bar/restaurants across England and Wales under the Lounge and Cosy Club brands, announces its intention to seek admission on AIM, offer TBC, expected late April.

Breakfast Buffet

Castleton Technology (CTP.L) 111.5p £90.9m

Castleton Technology, a leading supplier of complementary software and managed services to the public and not-for-profit sectors, provided the following update on trading for the year ended 31 March 2019 ahead of the announcement of its full year results.

The Company is pleased to announce that results for the year are expected to be in line with expectations with revenue of not less than £26.3m and adjusted EBITDA of not less than £6.3m, representing continued good organic growth.  Cash generation in the period was solid, resulting in operating cash conversion of not less than 95% of adjusted EBITDA, facilitating a continued reduction in the Company’s net debt from the prior year.

The Group expects to announce its preliminary results in June 2019.

 

Aukett Swanke (AUK.L) 1.68p £2.73m

Further to the AGM statement made on 28 March 2019, the Board provided an update regarding the cash position of the Company as at 31 March 2019.

The Company will report an improved net cash balance of c. £200k as at 31 March 2019 (net cash as at 30 Sept 2018: £157k and net debt as at 31 March 2018: £311k).

As trading continues to improve during 2019, in line with the guidance re-iterated in the AGM statement, the Board expects to show further improvement in the cash position by the year end.

Aukett Swanke is an award-winning architecture and interior design practice defined by a fluid and interactive approach
to design and its delivery.

LightwaveRF (LWRF.L) 8.5p £7.19m

LightwaveRF, the leading smart home solutions provider, announced the following trading update for the three months ended 31 March 2019, being the second quarter of its financial year ending 30 Sept 2019 .

Revenue in Q2 2019 doubled to £1.35m compared with the same period last year (Q2 2018: £0.68m).

This strong growth in sales is a result of continued success in direct sales, e-commerce and telesales and the further development of wholesale and retail distribution channels.

Revenue in the first half of the financial year was £2.5m, more than double that in the first half of last year (H1 2018: £1.13m) and nearly 90% of the total revenue generated last year (FY 2018: £2.8m).

 

KCR Residential REIT (KCR.L) 52p £8.21m

KCR Residential REIT, the residential real estate investment trust group, announced that its investment in a new build development at Deanery Court, Chapel Riverside, Southampton is now fully let.

Deanery Court is a new build apartment block consisting of 27 two-bedroom apartments and 28 dedicated car parking spaces. It is located on the waterfront in a prominent location on the west bank of the River Itchen, within walking distance of Ocean Village and the city centre.

The current rental income of £345.4k pa is approximately 25% higher than forecast in the acquisition announcement the Company made last year.  The gross yield on the price paid for the acquisition is 5.9%.

 

Minoan Group (MIN.L) 1.9p £5.46m

Travel & Leisure division sold during the year partly in order to pay-down group debt.  The division has been treated as a non-current asset held for sale in the Financial Statements.

The Group made a loss after taxation of £3.02m (2017: £2.52m)

Loans classified as current liabilities decreased to £1.44m from £6.12m.

Total equity at 31 Oct of £40.60m (2017: £42.29m).

The Group has appointed a team of internationally recognised planners, architects and designers, which includes the Chicago Consultants Studio Inc., renowned experts in master planning,  Vassily Laffineur an Associate at the award winning Renzi Piano Building Workshop and leading  designers Desani. The Group has recently received an approach and is in discussions to create a joint venture on one of the five hotel and villa sites.

 

Gordon Dadds Group (GOR.L) 135p £49.92m

Gordon Dadds Group, the acquisitive London-based legal and professional services business, announced that it has completed the acquisition of Rampart Corporate Advisors Limited, a Gibraltar-based legal services business with a specialism in e-gaming, financial services and fintech, distributed ledger technology (“DLT”) and cryptocurrency matters.

The firm was acquired for a performance related consideration of up to £1.34m payable quarterly over 3 years.

“We are delighted to announce this acquisition which marks a further expansion of Ince Gordon Dadds geographically and in the services we can offer our clients, particularly with Ramparts’ specialism in e-gaming, fintech, DLT and cryptocurrency, all growth areas of law.

“With this acquisition, Ince Gordon Dadds now has thirteen offices across eight countries and territories, and annual revenues of some £100m.”

 

Impax Asset Management (IPX.L) 241p £306.48m

Impax Asset Management, the specialist investor focused on a more sustainable economy, provided an update of the development of its assets under discretionary and advisory management for the second quarter of its financial year.

On 31 March 2019, the Company’s AUM totalled £13.3bn ($17.3bn), representing an increase of 15% over the quarter and 6% since the start of the Company’s financial year on 1 Oct 2018.

“It has been a strong start to 2019 for Impax. The transition to a more sustainable global economy is yielding a wide range of attractive investment opportunities, and our specialist expertise in this area continues to resonate with asset owners around the world.  At a time when many investment managers are experiencing sustained outflows, Impax is attracting a high level of new subscriptions from multiple channels.”

 

Firestone Diamonds (FDI.L) 2.1p £11.2m

Firestone Diamonds announced the recovery of a 72 carat yellow, makeable diamond from its Liqhobong Mine in Lesotho, during the past weekend. The 72 carat diamond was recovered together with a 22 carat makeable white stone, followed by an 11 carat fancy light-pink stone. These diamonds will go on sale at the next tender which is scheduled to take place during May 2019.

This is the second c.70 carat stone recovered from the operation this calendar year, following the 70 carat white, makeable which was sold in the March auction at a record overall price for a Liqhobong diamond.

“It was a good weekend for us, recovering the 72 carat diamond as well as the two smaller, high quality stones from within the northern, lower grade part of the pit. These recoveries will certainly assist in supporting the average value of the next sale in May.”

 

NQ Minerals (NEX NQM) 4.25p

Q1 2019 production results from its flagship Hellyer Mine located in Tasmania.

Lead concentrate +18.1& to 4,712 Dry Metric Tonnes (DMT)

Zinc concentrate +96.16% to 3,015 DMT

Pyrite concentrate + 330.9% to 18,488 DMT

“We are delighted by the results being delivered from our Hellyer Mine. Now that we have successfully achieved commercial concentrate production, the positive trends we are realising at site are a culmination of the continued commitment to enhancing shareholder value through appropriate investment and the dedication of the operations team. The mine has performed exceptionally well on the key production metrics of lead, zinc and pyrite concentrates, along with mill throughput, and we look forward to continuing to drive production at Hellyer.”

 

Vp (VP..L) 994.7p £399m

Update on recent trading.

Since the interim results announcement on 27 November 2018, the Group has made further progress both within the UK and the International divisions. The UK division has experienced stable demand from its core market sectors; infrastructure, construction and housebuilding.

The integration of Brandon Hire, which was acquired in November 2017, is progressing well.  The combined specialist tool hire business has now been re-branded as Brandon Hire Station.  The integration should be fully completed by the end of the first half of the new financial year.

In the International division, the Group has experienced on-going challenging trading conditions in the offshore oil and gas sector, whilst our test and measurement business in the Asia Pacific region has traded well. The Board anticipates that final results for the year ended 31 March 2019 will be well ahead of the prior year and in line with current market expectations.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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