Small Cap Feast

Small Cap Feast – 10 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:

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 has joined the Main market at 435p with market cap of £2.17bn

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

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

Main Market (Standard)

MENA Land PLC, which is focussed on making acquisitions in the real estate sector in the United Arab Emirates, is looking to join the Standard List raising £999,900 at £1

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.

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

 

Breakfast Buffet

Norcros (NXR.L) 186.5p £151.09m

FYMar19 update from supplier of high quality and innovative bathroom and kitchen products. Group underlying operating profit for the year is expected to be in line with the Board’s expectations, reflecting a very resilient performance in the context of particularly challenging conditions in our major markets. This will represent the Group’s tenth consecutive year of revenue and underlying operating profit growth. 

Group revenue for the year is expected to be in the region of £331m (2018: £300.1m), 10.3% higher than the prior year on a reported basis, 11.6% higher on a constant currency basis, and 2.4% higher on a constant currency like for like basis.

 

Angelfish Investments (NEX:ANGP) 0.033p £0.2m

Agreement  to subscribe £150,000 for 1,840,000 Ordinary A shares in Just Bee Limited. This investment, which forms part of a total equity fund raise of £292,000, will represent an equity stake of 9.14% in Just Bee following completion of this funding round.

In addition Angelfish will provide a working capital loan to Just Bee. Just Bee is a 100% natural juicy water drink, sweetened with a drop of honey. It is sugar tax compliant with no added sweeteners and sits within the fastest growing soft drinks market segment. The brand was developed by beekeepers and also has a social and ethical mission to protect bees, helping to plant bee-friendly wildflower patches across the UK, with 5ms flowers planted to date. Just Bee saw 107% revenue growth from 2017 to 2018, with over 1m bottles sold to date from numerous well known high street stores including Co-op, Waitrose, Boots, and Booths.

 

FIH Group (FIH.L) 315p £35.38m

International specialist services group with businesses in the Falkland Islands and UK, is pleased to provide an update on the Group’s trading performance for the year ended 31 March 2019. 

Margins at Momart have continued to improve during the year, and in addition, a provision for a potential claim, made in the March 2018 accounts, has now been able to be released.

As a result, the board expects that subject to the completion of the audit, the Group will deliver a Pre-Tax profit that will exceed market expectations by a comfortable margin.

In line with our normal practice, we will publish our annual report and accounts in mid-June.

 

 

Ilika (IKA.L) 37p £37.27m

The “pioneer in solid-state battery technology, announces the launch of Stereax® M50 mm-scale solid-state batteries designed for medical implants. The Stereax M50 takes solid-state batteries to a new level of miniaturisation enabling medical device innovations that have previously been limited by the available battery technology.”

“The implantable medical device industry has a growing need for miniaturised, long-life power sources to enable wireless data transfer from increasingly sophisticated devices that are improving patients’ lives.”

 

Steppe Cement (STCM.L) 33.5p £73.36m

Q1 update. In the first quarter of 2019, Steppe Cement Ltd sold 266,393 tonnes of cement for 4,455m Tenge, compared to 197,179 tonnes of cement for 2,313m Tenge in the first quarter of 2018, representing an increase of 35% and 93% respectively.

The cement market in Kazakhstan during 1Q 2019 increased by 3.6% over the corresponding quarter last year.

Steppe Cement increased its market share to 17.4% in the first quarter of 2019 from 14% in the first quarter of 2018.

The average price for the current quarter for delivered cement was 16,723 Tenge per tonne (ex VAT) compared with 11,732 Tenge per tonne in the corresponding quarter of 2018, an increase of 43%. Prices have been maintained this winter at the same level as last year.

 

Findel (FDL.L) 164p £141.7m

Notes the announcement by Sports Direct on 9 April 2019 that it has received acceptances in respect of 847,649 Findel shares in response to its unsolicited offer for the entire issued and to be issued share capital of Findel not already owned by Sports Direct at 161p per share in cash. This represents approximately 0.98% of the existing issued share capital of Findel.  When combined with Sports Direct’s holding of 31,850,000 Findel shares, this totals 32,697,649 Findel shares that are either owned or for which valid acceptances have been received, being approximately 37.82% of Findel’s existing issued share capital.

The Board notes Sports Direct’s failure to secure sufficient acceptances for its Offer to be declared unconditional by the first closing date of 9 April 2019. This reconfirms the Board’s position that Sports Direct’s Offer Price of 161p per share is opportunistic, significantly undervalues Findel and should be rejected by all shareholders.

 

Powerhouse Energy (PHE.L) 0.55p £9.71m

The UK technology company pioneering hydrogen and clean energy production from waste plastic, is pleased to announce that its development partner, Waste2Tricity Limited, has concluded negotiations and signed an agreement with Peel Environmental for an 124 year lease of a plot on the 54-acre Protos energy hub site, an important milestone in its plan to build a waste plastic to hydrogen and power facility.

This is expected to the be the first full scale commercial site for Powerhouse’s proprietary hydrogen from waste DMG® technology, an important step in PowerHouse Energy’s commercialisation strategy. PowerHouse Energy and W2T will now seek to conclude the arrangements for the sale and license of the DMG® technology for this site as well as W2T completing the power purchase agreement and a plastic feedstock supply necessary to finalise its funding.

 

Bushveld Minerals (BMN.L) 33.25p £369.29m

Bushveld Minerals, integrated primary vanadium producer, with ownership of high grade vanadium assets in South Africa, provided an operational update in respect of Lemur Holdings Limited, the Company’s coal and energy subsidiary that is developing an integrated thermal coal mining and independent power project in Madagascar, for the quarter ended 31 March 2019.

Lemur has signed a Project Preparation Finance facility agreement with the Development Bank of Southern Africa for an amount of $1m.

The facility will assist in funding the completion of the project development activities and advisory services for the Imaloto Project, thereby enabling Lemur to reach financial close1.

Review and sign-off of the power bankable feasibility study has been completed by Sinohydro.

Review of opencast mine BFS completed. Optimisation exercise underway to consider the inclusion of underground mining within the development plan.

Engineering, Procurement and Construction (“EPC”) contract negotiations for the power plant are progressing.

Social and Environmental Impact Assessment fieldwork ongoing and on track to be completed in Q2 CY2019.

 

Petards Group* (PEG.L) 23.5p £14.37m

FYDec18 results from the  developer of advanced security and surveillance systems.

Total revenues increased to £20m (2017: £15.6m)

Gross margins 34.5% (2017: 38.6%)

Adjusted EBITDA £2,06m (2017: £1.62m)

Order book at 31 Dec 2018 over £19m (31 Dec 2017: over £18m)

Order coverage for 2019 in excess of £13m

Acquired RTS Solutions software business focused on UK rail infrastructure

Significant orders of over £6.5m for eyeTrain received in H2 2018

QRO generated over £1m of revenues from two new UK police framework agreements of 3 and 4 years respectively, with 3 year extension options

Significant investment in our eyeTrain automated software applications has created new orders and opened up new business opportunities

Separate RNS announcing a contract to supply Bombardier Transportation with Petards eyeTrain systems.  Value over £1.5m.  First equipment deliveries starting in mid 2019 and it is expected that the deliveries will be completed in 2020.

 

PetroTal (PTAL.L) 14p £72.6m

“The BN 95-2-2-2XD oil development well which commenced drilling operations on Feb 26, 2019, has reach total depth.

The well is being completed as a producer in the Vivian formation in the northern portion of the Bretaña structure.  This is the second oil well in the first phase of development of the Bretaña oilfield.  The well was directionally drilled to approximately 3,040 meters total depth. Initial logs indicate a total gross oil column of 24 meters with estimated net oil pay of 18.7 meters, in line with the Company’s expectations.  The indicated oil water contact in the well was in direct correlation to the other four wells previously drilled in the field.

Once completed the well will be placed online, expected in approximately one week. The Company will provide details on flow rates with the fourth quarter and year-end earnings release scheduled for the week of April 22, 2019.

The discovery well, which came online in mid-2018, is producing in line with management’s expectations at an average of 950 – 1,000 barrels per day and has accumulated over 260,000 barrels of oil produced to date.”

 

Head Chef:

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

*A corporate client of Hybridan LLP

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