Small Cap Feast

Small Cap Feast – 09 January 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 919

Total number of AIM Companies trading: 844*
* As at 07 January 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 07 January 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 139*

Total number of Standard List Companies trading: 130*
* As at 07 January 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 (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 31 Jan 2019.

AIM

Circassia Pharma (CIR.L) – specialty pharmaceutical company focused on respiratory disease transferring from the Main Market. No funds being raised. Due 4 Feb.

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 late January 2019.

Breakfast Buffet

Mincon Group (MCON.L) 108.5p £228.4m

The Irish engineering group specialising in the design, manufacture, sale and servicing of rock drilling tools and associated products, advises that it has contracted to acquire the share capital of Pacific Bit of Canada Inc.

A long established and successful business, Pacific Bit distributes mainly mining and construction products in Western Canada. Sales in 2018 were c. C$5.5m and the business was profitable.

The consideration was not disclosed.

Central Asia Metals (CAML.L) 221p £388.9m

Q4 and FY 2018 operations update.

Production guidance met for copper, zinc and lead

2018 Kounrad

Copper produced, 14,049 tonnes

2018 Sasa

Zinc in concentrate produced, 22,532 tonnes

Lead in concentrate produced, 29,388 tonnes

Diamond drilling exploration programme completed with updated mineral resource estimate expected in Q1 2019

2019 production guidance

Copper, 12,500 to 13,500 tonnes

Zinc in concentrate, 22,000 to 24,000 tonnes

Lead in concentrate, 28,000 to 30,000 tonnes

Cash in the bank on 31 Dec 2018, $39m

 

MP Evans Group (MPE.L) 644p £352m

2018 crop and production update from the producer of Indonesian palm oil.

Total Crop of fresh fruit bunches  up 27% to 829,100 tonnes including 573k of own crop.

Total crude palm oil production up 25% to 192,500 tonnes.

Palm kernel production up 30% to 43,500 tonnes.

FY Dec 18E rev $84.6m and PBT $17.4m. Div c.3%.

 

President Energy (PPC.L) 9.55p £98.7m

The “upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, provides an update relating to Group net production as well as its Concessions in the Rio Negro Province, Argentina (President 90% and operator – Edhipsa 10%).” It has beaten its 3,000 boepd target for net Group production exit year end 2018.

The Company is producing at a net Group level of approximately 3,300 boepd.  This represents an increase of over 50% year on year and is being achieved without the benefit of any contribution from the Las Bases Concession and with only a limited contribution from the Puesto Prado and Estancia Vieja fields, all in Rio Negro Province, Argentina.  Commercial gas sales from the Las Bases and Estancia Vieja Concessions are expected to commence by the end of Q1 2019. Preparation and planning of the next drilling campaign in Argentina due to commence in Q2 ramping up into H2 as well as long lead planning for 2019 exploration in Paraguay

 

Majestic Wine (WINE.L) 250p £180m

Majestic Wine announced its scheduled Christmas trading update for the 10-week period ending 31 Dec 2018, reporting an increase in both Group sales and gross margin. Group sales growth accelerated to 6.8% (6.3% on an underlying basis) compared to the same period last year (3.2% and 4.1% underlying), and the group trading gross margin increased by 0.4%, led by strong performance in Naked Wines  together with a solid performance from Majestic Retail  despite the challenging market backdrop. The Group delivers c.30% of total annual sales during the Christmas trading period.

FY Mar19E Rev £506.75m and PBT £9.74m.

 

Proton Power Systems (PPS.L) 6.6p £40.95m

The designer, developer and producer of fuel cells and fuel cell electric hybrid systems, has signed a joint venture agreement to establish Clean Logistics GmbH, a company registered in Germany, which has the objective of building heavy duty trucks purely run on fuel cell hybrid systems, using hydrogen fuel cells in the range of 75 – 150KW.

Proton owns 33.33% of the share capital of Clean Logistics, together with its joint venture partners Höpen GmbH (33.33%), a private holding with participations into the battery company INVENOX GmbH and electric vehicle development company E-Cap Mobility GmbH (a company which specialises in the conversion of combustion vehicles into electric vehicles), and Hary AG (33.33%), a modular transport service provider.

The Joint Venture applied for financial aid from the federal programmes of alternative fuels and clean transportation to take the Joint Venture through its prototype development stage during 2019 and is seeking additional funding to be used to support orders of up to 1,000 vehicles by the end of 2021.

 

Science in Sport (SIS.L) 54.5p £65.25m

FY Dec18 update from UK-headquartered market-leading endurance sports nutrition company that develops, manufactures and markets sports nutrition products for elite athletes and sports enthusiasts.

Group sales of £21.3m (2017: £15.6m), including a 25-day contribution of £1.5m from PhD Nutrition following acquisition completion on 6 Dec.

Underlying SiS sales growth of 27% to £19.8m (2017: £15.6m), with second half growth accelerating to 34% for SiS, following first half investment in growth initiatives.

Strong SiS online sales growth of 29% to £11.2m underpinned by SiS.com, which grew sales at 40% to £6.4m following significant investment in a new e-commerce platform launched in March.

The final results for the year are expected to be in line with market expectations .

In Dec, SIS acquired the premium performance nutrition brand, PhD Nutrition, for £32m. The transformational deal doubles the size of the Company, extends its product range, and enhances its international presence.

 

Sosandar (SOS.L) 34p £37.18m

Trading update for the three months ended Dec 2018.

Momentum has continued throughout autumn and into winter as the Company experienced a record quarter for revenue, orders, site visits and conversion. Revenue for the period was slightly ahead of  expectations at £1.6m, a 219% increase on the same period in 2017 and higher than the Company’s revenue for the entire prior financial year.

Customer database increased 209% to nearly 100,000

Conversion rate increased 129bps to 3.47%

Average order value increased 10% to £105.58

Repeat orders increased 527% to over 20,000

The growing customer base and economies of scale in the business are creating efficiencies with EBITDA loss down on prior year .

Strong balance sheet with net cash of £4.6m as at 31 Dec 2018.

 

Universe Group (UNG.L) 4.15p £9.06m

The   developer and supplier of point of sale, payment and loyalty systems, announced it has commenced a roll-out with major new customer Euro Garages Ltd to provide Gempay 3 payment terminals and payment processing services to 370 petrol forecourts in the UK.

EG Group is a leading petrol forecourt retail convenience operator who has established partnerships with global brands such as ESSO, BP, Shell, Carrefour, Louis Delhaize, SPAR, Starbucks, Burger King, KFC, Greggs and Subway. The business has an established pedigree of delivering a world class fuel, convenience and food-to-go offer, operating over 4,700 retail sites in Europe and the USA.

 

Remote Monitored Systems (RMS.L) 0.97p £2.91m

The survey, inspection and monitoring company,  provided an update on progress in the year ended 31 December 2018.  Geocurve Limited which provides Survey and Inspection services to a range of major blue-chip companies and government agencies, achieved revenues for the year of £1m, an increase of 57% compared with 2017 and three times the turnover in 2016.  GyroMetric Systems Limited in which the Company made an initial 37% investment in April 2018 and acquired a 58% controlling interest in Aug 2018, continued to increase sales of its active protection system to protect large marine drives however these remain modest. During the year Gyrometric completed successful trials of its Incremental Motion Encoder at the world’s newest and most powerful offshore wind turbine drive train test facility at the Offshore Renewable Energy Catapult at Blyth. 

 

Head Chef:

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

*A corporate client of Hybridan LLP

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