Small Cap Feast

Small Cap Feast – 09 July 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 891

Total number of AIM Companies trading: 812*
* As at 08 July 2019

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 88*

Total number of NEX Growth Market Companies trading: 86*
* As at 08 July 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 165*

Total number of Standard List Companies trading: 143*
* As at 08 July 2019

Dish of the Day:

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Off the Menu:

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Dish of the Day:

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Off the Menu:

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What’s Cooking in the IPO Kitchen?

Main Market (Premium)

ReAssure Group plc  –  The Group is a leading closed book life insurance consolidator in the United Kingdom with 4.3m 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 (Specialist Funds)

Voyager AIR  The Company will focus on the acquisition, leasing and management of primarily widebody aircraft, with asset management services to be provided by Amedeo Limited   he IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m·

AIM

Uniphar, a diversified healthcare services business with a workforce of over 2,000, is looking to join AIM. Raise TBC, expected mid-July 2019

Rumours & Speculation

Neptune Surf Technology plc*, a vertically integrated lifestyle accessory group focused on the surf market, designing its own high-performance wetsuits and surfing hardware and distributing these together with third party brands globally with key markets being Europe, Australia and USA and Brazil, is looking to join AIM and ‘is planning an £11m float’ according to The Sunday Telegraph.

Breakfast Buffet

Concepta* (CPT.L) 2.45p £6.23m

Concepta, the innovative UK personalised healthcare company and developer of the proprietary self-test platform (“myLotus®”) and suite of emerging test products targeting the mobile health market with a primary focus on women’s fertility and hormone health announced its myLotus® user pregnancies have now moved into double figures. The first myLotus® ‘live births’ are expected later this year. User testimonials for the myLotus® monitor and app remain exceptional with many users providing personal video feedback and testimonials on their menstrual cycle hormone changes and profiles (‘signatures’) to enable other women to better understand their fertility journey.

The myLotus® device empowers women to self-test their personalised hormone levels and identify their optimal fertile days thereby improving their chances of a natural pregnancy.

In March the Company announced its first supply agreement with Boots UK (part of Walgreens Boots Alliance) where sales continue to build. The Company anticipates further B2B announcements over the coming months.

Renalytix AI (RENX.L) 335p £174.9m

Renalytix AI, a developer of artificial intelligence enabled clinical diagnostics for kidney disease, announced positive interim analysis of data from the KidneyIntelX™ expanded validation study. The results show that in a multi-centre cohort of Type 2 diabetes patients, the KidneyIntelX™ algorithm has met or exceeded required performance targets for identifying those patients experiencing rapid kidney function decline and patients who eventually progressed to kidney failure and/or dialysis. The expanded validation programme data will support the ongoing regulatory process with the FDA under Breakthrough Device designation which was announced 2 May 2019.

RiverFort Global Opportunities (RGO.L) 0.07p £5.09m

RiverFort Global Opportunities provided a quarterly update to 31 March 2019.

Over £4.6m invested in RiverFort-arranged opportunities as at the period end

Total investment income generated of £0.48m in the quarter

NAV up by around 5% over the quarter

The Company is continuing to build on the progress made in 2018

Significant cash balance available for further investment

Additional investments made during the period in companies including Jubilee Metals Group plc

TMT Investments* (TMT.L) 3.66p £75.5m

TMT Investments, the venture capital company investing in high-growth technology companies, announced that following the Company’s recent significantly profitable cash exit from Wrike, Inc., the Company’s Board of Directors has resolved to declare a special dividend to the holders of the Company’s ordinary shares for a total amount of $5.84m, or $0.20 per ordinary share. The dividend payment will be made on 31 Jul 2019.  The record date for the payment of the dividend for all ordinary shares is 19 July 2019, with an ex-dividend date of 18 Jul 2019.

TMT Investments* (TMT.L) 3.66p £75.5m

AdEPT, a leading UK independent provider of award-winning managed services for IT, unified communications, connectivity and voice solutions, announced its results for the year ended 31 March 2019.

Revenue increased by 11% to £51.3m (2018: £46.4m)

Gross margin % increased to 49.4% (2018: 47.7%)2

Underlying EBITDA increased by 11% to £10.8m (2018: £9.8m)

Underlying EBITDA margin % of 21% (2018: 21%)

6% increase to adjusted fully diluted EPS to 29.8p (2018: 28.1p)

12% increase to dividends declared to 9.8p (Interim 4.9p, Final 4.9p) (2018: 8.75p)

Year-end net senior debt of £27.1m (2018: £17.6m)

Capital expenditure 1% of revenue (2018: 1%)

Rosslyn Data Technologies (RDT.L) 7.25p £13.79m

Rosslyn Data Technologies, a leading global big data technology company, announced that it has won two contracts with a total contract value exceeding £0.6m. The contracts are for delivery of procurement and supply chain analytics solutions to more effectively manage costs, compliance and risks.

One of the clients is a science-led sustainable technologies business employing 15,000 people in over thirty countries around the world. The client’s specific needs included a better understanding of global procurement performance by supplier, by client site and also the impact of price changes on profits, which Rosslyn’s RAPid platform was able to meet comfortably.

The other client is a multinational general insurance company with operations in more than 140 countries. The client is implementing the RAPid platform along with Savings Tracker which is a module enabling procurement teams to track projects, and forecast and track savings, and provides reporting capabilities for communication throughout organisations.

Regency Mines (RGM.L) 0.07p £1.06m

Regency Mines the natural resource exploration and development company with interests in energy storage, coal, natural gas and battery metals announced an update on its interest in Mining Equity Trust (“MET”).

Investment of $0.75m into MET by Carraigbarre Capital Limited (“CCL”), an investment company, on behalf of clients of White November completed

CCL to become a 45.02% shareholder in MET with a board seat

Legacy Hill Resources to remain operator of Omega

Funds received and deployed to partially recapitalise MET

Forbearance agreement signed – MET loan note obligations to Omega sellers of $8.17m rescheduled over period to October 2020

Forbearance agreement currently in default following delays in CCL funding

Additional funding required to ensure long-term stability of the business

Regency retains a 25.84% stake in the expanded share capital of MET

Longer term plans in place to install a wash plant and upgrade saleable product subject to additional capital being made available

Impellam Group (IPEL.L) 457p £222.18m

Impellam Group, the staffing business in the UK and MSP worldwide has acquired Flexy Corporation Limited (www.flexy.com), a leading flexible staffing platform based in London. 

Founded in 2015, Flexy uses psychometrics, machine learning, and nudge theory to unlock local talent. It was designed and built by a team of psychologists, recruitment experts, and digital architects to streamline the casual labour market. Flexy enables meaningful connections between companies looking for flexible labour and individuals looking for flexible work.

Impellam will pay approximately £3m in cash for the business up front, which generated revenue of £626k in the financial year ended 30th April 2019 and has achieved compound annual growth of 175% over the past two years. Additional consideration may be payable to the vendors of Flexy subject to achievement of future performance conditions.

ClearStar (CLSU.L) 62p £19.64m

ClearStar, a provider of Human Capital Integrity℠ technology-based services specialising in background and medical screening, provided the following update on trading for the six months ended 30 Jun 2019.

The Company achieved strong growth in the period, with its highest ever six-month revenue.

Revenue growth of approximately 17% to $11.6m (H1 2018: $9.9m)

Strong revenue growth in direct services business channel of 49% over H1 2018 – with direct services accounting for approximately 36% of total revenue (H1 2018: 28%)

Medical information services continued to be the primary growth driver by service offering, with revenue increasing 25% over H1 2018

Strengthening of direct tier 1 client base and enhanced foundations with further expansion of direct sales team:

Two direct clients were among the Company’s ten largest customers by revenue

Increased revenue and pipeline following expansion of the direct sales team at the beginning of the year

Further progress in the key market segments of transportation and logistics as well as Financial Institution screening, and expanded into new markets including petrochemical services

Growth supported by strong recurring revenue and upselling of further services with some of the Company’s largest existing clients

As a result, the Company continues to expect to achieve strong revenue growth for full year 2019, in line with market expectations

Ceres Power Holdings (CWR.L) 175.5p £258.1m

Ceres Power provided a post period end trading update ahead of the announcement of audited results for the year ended 30 Jun 2019. As a result of continued strong commercial activity, the Group anticipates that audited results for the full year will be ahead of market expectations.  

Revenue and other operating income for the year ended 30 Jun 2019 to be approximately £16.5m (c.135% growth from £7m in 2018), an increase from previous expectations of c. £15m, driven by continued strong progress across existing contracts with our commercial partners

Cash and short-term investments were greater than £71m at 30 Jun 2019

Operating loss and cash outflows from operating activities reduced significantly from prior year due to high margin license revenue.

Bosch Collaboration and License Agreement (with initial value to Ceres to 2020 of c.£20m) and equity investment of c.£9m

Weichai Power completed a total equity investment in Ceres of £48m and additional License and JV Agreements with staged technology transfer payments worth c.£30m and a Joint Development Agreement of £9m

First product launch: Miura Co. Ltd, Japan’s largest industrial boiler company, to use Ceres SteelCell® in fuel cell CHP product launch for use in commercial premises in Japan

Continued investment in growing the business including a new £8m manufacturing facility in Redhill, UK as a reference plant both to serve our growing customer needs and also to act as blueprint model for licensee manufacturing partners

In line with the strong order book from our commercial partners, we expect revenue growth to continue into FY20.

Head Chef:

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

*A corporate client of Hybridan LLP

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