Small Cap Feast

Small Cap Feast – 09 May 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 898

Total number of AIM Companies trading: 827*
* As at 03 May 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 03 May 2019

Set Menu Standard List:

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

Total number of Standard List Companies trading: 141*
* As at 03 May 2019

Dish of the Day:

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 has joined AIM. No raise, secondary offering of £19.8m at 90p, expected market cap of £95.97m.

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 (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

AIM

Induction Healthcare Group plc—a healthcare technology company focused on streamlining the delivery of care by Healthcare Professionals looking to join AIM. Expected raise of £14.58m at 115p, market cap of £34.07m. Expected 22 May 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.

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

NEX Exchange

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

Breakfast Buffet

Arrow Global (ARW.L) 196p £344.8m

Q1 Mar 19 results from the European investor and asset manager in secured and unsecured defaulted and non-core loan portfolios and real estate

Organic portfolio purchases of £56.4m (Q1 2018: £79.9m)

Core collections increased 22.7% to £105.5m

Third-party AMS income increased 21.7% to £23m

Free cashflow grew 32% to £57.8m

Significant reduction in leverage ratio to 3.4x (Q1 2018: 4x)

Underlying PBT increased 14.1% to £16.2m

Underlying LTM ROE of 34.5%

Securitisation in April 2019 further diversifies funding structure

“Our strong focus on returns and an improving pricing environment means that we took the decision in the first quarter to purchase fewer portfolios, conserving investment firepower for later in the year. Our strong pipeline visibility means that we remain confident in achieving around £250.0m of portfolio purchases at our target returns.”

Beeks Financial Cloud (BKS.L) 98.5p £49.48m

The  cloud computing and connectivity provider for financial markets, has acquired the assets of Commercial Network Services (“CNS”), a US-based online service provider, for a total consideration of up to $1.4m.

CNS specialises in hosting low latency algorithmic trading systems, virtual private networks and streaming media from data centres in London, New York and Los Angeles.

Founded in 2000, CNS provides services to approximately 1,000 retail traders across multiple geographies.

CNS has annualised recurring revenue of approximately $1m and delivered a PBT of $0.17m in the year to 31 Dec 2018.

The Transaction brings additional customers and datacentre locations to Beeks’ retail offering and is expected to deliver cost synergies.

The Transaction is expected to be earnings enhancing within the first full year of Beeks’ ownership.

 

Chariot Oil & Gas (CHAR.L) 5.1p £16.8m

Completion of the independent Competent Persons Report (“CPR”) by Netherland Sewell & Associates Inc. over the satellite prospects adjacent to the Anchois-1 gas discovery in the Lixus Offshore Licence  Morocco.

Upgrade of audited total remaining recoverable resource to be in excess of 1 Tcf for Anchois and its satellite prospects (comprising 2C contingent resources and 2U prospective resources)

Anchois North confirmed as the low risk priority satellite prospect with 308 Bcf of 2U prospective resources with a probability of geological success of 43%

Further CPR on additional five prospects in Lixus licence to be completed after the 3D seismic reprocessing project

 

Petards* (PEG.L) 25p £14.3m

AGM Statement from the developer of advanced security and surveillance systems.

The year has started well with performance in the first three months being in line with budget. With 2019 order coverage of £14.6m, which includes revenue to April, and forecast levels of transactional business for the remainder of the year being in line with the board’s expectations, management’s focus continues on building on the current order book for 2020/21 where it is in discussions with its customers over new business across the Group, in particular for Rail Technology where a number of significant new contracts are in the offing.” On QRO:  2019 has got off to a good start as it implements its organic growth strategy built on introducing new products and services to meet increased customer requirements.

On  platform integration of eyeTrain “this investment has required substantial allocation of funds, the rate of required investment has been tapering off since Q/4 – 2018.  This has continued to reduce as software engineering activities move from the development phase to the operational support phase, a process that it is expected will be substantially complete at the half year stage.”

 

Panoply Hldgs (TPX.L) 87.5p £37m

FY Mar 19 update form the native technology services company. “The Board announced that it expects to report revenue and EBITDA performance in line with expectations when it publishes its maiden full year results, following its successful IPO and Admission to trading on AIM in Dec 2018. This performance has been driven by an increase in customer numbers across its constituent companies and particularly from work in the government and not-for-profit sectors. At the year end the Group had net cash of £4.9m.

Since the Group’s IPO, a further three acquisitions have been concluded and the relevant integration of those businesses largely completed. Investments have also been made into new business units which complement and expand the Group’s existing services and expertise, and which can generate future revenue streams, including TPX human+ which was launched at the end of Feb.”

 

Mirriad Advertising (MIRI.L) 6.25p £7.6m

2018 revenue of £416k (2017 £874k) in the context of the previously flagged challenges with the Group’s go-to-market strategy. Trading improved in H2 with revenue of £296k (H1 £120k)

Net assets reduced 44% to £15.6m (2017: £27.9m) as a result of the losses in the period and a decision to take an impairment charge against internally generated software of £1.2m

Cash and cash equivalents at 31 Dec 2018 were £15.2m

“We are accelerating across all areas of activity with a focus on scale and impact. This means an acceleration in development of our technology and platform. Also we need to apply ourselves to the development of our go-to-market strategy and that means adding more supply partners, delivering research cases that prove superior results and ultimately building up the business to become a “line item” in clients’ media plans in 2020.”

 

Byotrol (BYOT.L) 2.18p £10.26m

FYMar19 update from the specialist anti-microbial technology company.

Consolidated full year revenues of around £4.2m, in line with market expectations.

EBITDA loss in the region of £450k subject to audit, increased by the delayed regulatory approval in the US (now received) and by higher marketing and research costs in the US. Over the last six months we have continued to make good progress in the US, so the Directors are confident that the slightly increased investment was merited.

Cash balance remains healthy at £2.85m. This is following the acquisition of MSL and compares to £3.5m at 31st March 2018.   

In the US, the trial at Target of Byotrol24 surface sanitiser has now been extended across an increased number of stores. “We are also now close to securing an additional new national retailer trial in the US.”

 

Versarien (VRS.L) 113p £172.4m

The advanced materials engineering group, updated on the Company’s recent activities in the USA.

Now fully operational at its new US office and laboratory facility in Houston, Texas, which is designed to act as a hub for the Company’s activities in North America.

The establishment of this US hub has already enabled the Company to accelerate its progress in North America with various new partners, in addition to the work it has been undertaking with the US National Graphene Association and various existing collaboration partners in the region.

 “We now have relationships with over 25 companies in North America, encompassing sectors as diverse as automotive, aerospace, consumer goods, oil & gas, sports equipment and speciality plastics.”

 

SEC S.p.A (SECG.L) 77.5p £10.46m

SEC S.p.A (SECG.L) 77.5p £10.46m

The largest independent advocacy, public relations and integrated communications agency in the Italian market, expects to announce audited results for the year to 31 Dec 2018 during the week beginning, 20 May 2019.

The Company expects to report revenues of 24m for the year to 31 Dec 2018, (an increase of 17.3%), an increase in EBITDA to 2.6m (an increase of 59%), and net profits up to 1.5m an increase of 103% (unaudited). The Company’s net cash and financial investments at 31 Dec 2018 will be – 1.2m (unaudited).

 

Elecosoft (ELCO.L) 85.5p £65.8m

Q1 update from the specialist in construction software and digital marketing solutions. .

Revenues increased by 20%(22% at constant currency); and PBT for the quarter ended 31 Mar 2019 was higher than the PBT in the quarter ended 31 Mar 2018 and is in line with market expectations. Elecosoft was also cash generative in the quarter, and as at 31 March 2019, had net debt of £0.9m, compared with net debt of £2.1m as at 31 Dec 2018.”

“We have been encouraged by the trading performance of our recent acquisitions in the UK and Germany and the opportunities for realising synergies which we anticipated when acquiring these businesses.”

 

Head Chef:

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

*A corporate client of Hybridan LLP

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