Small Cap Feast

Small Cap Feast – 10 December 2018

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 921

Total number of AIM Companies trading: 851*
* As at 06 December 2018

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 06 December 2018

Set Menu Standard List:

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

Total number of Standard List Companies trading: NA*
* As at 06 December 2018

Dish of the Day:

Titon holdings (TON.L)—international manufacturer and supplier of ventilation systems and window and door hardware. No capital raise. Due 10 Dec. Mkt cap c.£22m. Transfer from Main to AIM. Mkt cap c.£20m.

Off the Menu:

MySQUAR has left AIM pursuant to rule 1 as has Flowgroup which appointed administrators last month.

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

SEEIT will be the first UK-listed investment fund of its kind to invest exclusively in the energy efficiency sector. Looking to raise £150m. Due 11 Dec

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 end Nov.

AIM

PetroTal Corp is an oil and gas company whose shares are currently admitted to trading on the TSXV. The Company is focused on development of oil and gas assets in Peru and it currently has controlling interests in three onshore Peru license blocks. No new funds being raised.  Due 21 Dec.  Mkt cap c.£80m

Litigation Capital Management—provider of litigation financing and ancillary services, moving from ASX (ASX:LCA) to AIM. Offer TBC.  Due 18 Dec. Mkt Cap A$64m.

Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is due to start trading on AIM 14 December. Raising £2m at 290p. Mkt cap at issue price £13.6m.

Manolete Partners—leading UK insolvency litigation financing business looking to join AIM raising £16.3m as a placing and £13.1 realised by the selling shareholder at 175p. Market cap £76.3m, expected 14 December

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 early December.

 

Breakfast Buffet

Photo-Me International (PHTM.L) 106.2p £401m

HYOct18 result from the   instant-service equipment group.

Underlying revenue was up 2.5% to £119.8m, excluding the impact of restructuring Photo-Me Retail in the comparative period.

Adjusted PBT was down 7.9%, when adjusted for one-off items in H1 2018 and H1 2019.

Remains highly generative with £36.1 million of cash generated from operations in the period (2017: £39.9m).

The Group maintains its guidance for the FY2019 and expects to report profit before tax of £44m, net of restructuring costs in Japan and excluding any movement in the value of Max Sight Holdings. The Group maintains its guidance for the FY2019 and expects to report PBT of £44m, net of restructuring costs in Japan and excluding any movement in the value of Max Sight Holdings.” FYAPR19 PE c.11x and yield 7.9%

 

Coro Energy (CORO.L) 2.4p £17.06m

Coro has agreed with Petroliam Nasional Berhad to conduct a joint technical study over Block 2A, Offshore Malaysia. Block 2A is located in offshore Sarawak. The block is yet to be drilled and located in deepwater area. with the nearest discovery located approximately 70km to the east of the block. Work to date on the block has identified a number of very large structural closures at prospective levels, consistent with known regional plays in this prolific part of the basin.

The Central Luconia Province is one of the most prolific hydrocarbon basins offshore Malaysia and is home to numerous large and giant oil & gas fields. The early shallow water gas discoveries in the 1970’s and 80’s resulted in the commissioning and subsequent expansion of the world-scale Bintulu LNG plant. More recently, the Province has been a standout exploration success story in SE Asia, having seen a string of successful exploration results from the deeper water, resulting in multi-Tcf volumes of gas being discovered during the past five years.

 

Avacta (AVCT.L) 32p £26.79m

The developer of Affimer® biotherapeutics and reagents, announced that it has agreed an Affimer® therapeutics development partnership and license agreement with LG Chem Life Sciences (LG Chem), part of the South Korean LG Group, to develop Affimer® therapeutics in several disease areas.

This multi-target therapeutics development agreement provides for upfront and near-term milestone payments, plus longer-term clinical development milestones totalling $180m. Avacta will also receive royalties on any future product sales and LG Chem will cover Avacta’s costs of research and development associated with the collaboration. Avacta may receive an additional $130m in option fees and milestone payments should LG elect to exercise their options for additional targets.

 

Big Sofa (BST.L) 2.90p £3.89m

The international video analytics provider to the consumer insight industry, announced that revenues for the year ending 31 Dec 2018 are anticipated to be in the region of £1.7m, reflecting growth of approximately 31%. The Company is seeing deepening engagement with Ipsos, one of the world’s largest market research organisations and a significant shareholder in the Company, and growing traction with global customers in a variety of sectors.

With significant investment in Big Sofa’s scalable platform having already been made, the Company has been able to continue its programme of material annualised cost savings which was announced on 1 Oct 2018. The board expects this will have a reductive impact on the cost base for 2018 as compared to the prior year; and, as the full annualised benefits flow through, will reduce the 2019 full year overhead by approximately £1.4m compared to 2017. The board believes this places the Company on an accelerated path to breakeven.

 

Access Intelligence (ACC.L) 60.5p £35.27m

The supplier of Software-as-a-Service (SaaS) solutions for communications and reputation management, announced that after the busiest year in the Company’s history, trading for the year to end Nov has been in line with market expectations.  

Over the past year, Access Intelligence has firmly established Vuelio as a market leading brand providing an integrated digital platform for the communications industry. With the acquisition of ResponseSource Ltd in Nov 2018, it has been able to further enhance its product range and broaden its offering, to the benefit of its high quality and blue-chip customer base.

This unified offering has been well-received by the market, with recent contract wins including Porsche, Fiat Chrysler Automobiles, Médecins Sans Frontières, Help for Heroes, Investec, Philips, Kings College London, Air France KLM, Emirates Group, DB Cargo and DFDS Seaways.

 

Pressure Technologies (PRES.L) 96.5p £16.27m

The specialist engineering group announced that it has today entered into a binding letter of intent with Creation Capital Corp (TSX-V: CRN.P) a capital pool company listed on the TSX Venture Exchange to sell its wholly-owned subsidiary, PT Biogas Holdings Limited (“Greenlane”), which is the holding company for the Group’s Alternative Energy Division which trades under the name Greenlane Biogas (“the AE Division”) for a total consideration of £11.1m

For the full year ended 30 September 2017, the AE Division had revenue of £15.8 million and was breakeven at the operating profit level.

 

 

Ingenta (ING.L) 89.5p £14.97m

Ingenta, a leading provider of innovative content solutions, announced that it has secured three, multi-year customer renewal contracts for its Vista solution, with a total value of £3.3m over 3 years.

These contracts follow Ingenta’s recent improvements to its customer support and service models for existing Vista customers.

One of the three publishers, Human Kinetics (HK), has been using the Ingenta system since 1999. The renewal of their contract and move to the new “Vista as a service” model mark the next stage of the evolving partnership.

“Our Vista system continues to enable our valued customer base and represents 40 years of partnerships between Ingenta and the publishing community. This is a testament to our extensive industry knowledge and dedication to providing practical industry solutions. Recently, we have released further upgrades to Vista and have now enabled Vista as a service.”

 

Hollywood Bowl (BOWL.L) 198.5p £275.25m

Hollywood Bowl, the UK’s market leading ten-pin bowling operator, announced its audited results for the year ended 30 Sept 2018.

Total revenues up 5.8% to £120.5m.

Group Adjusted EBITDA up 8.3% to £36.2m

PBT up 13.4% to £23.9m.

Net debt down 69.1% to £2.5m

Total dividend per share up 16.6% to 10.59p

Strong returns on investment across the existing estate – on track to outperform 33% ROI target

New centre pipeline committed to the end of FY2022, on track to open two new centres per annum

Customer-led strategy and new initiatives driving increased average spend per game

Strong cash generation underpinning £15.9m of cash return to shareholders

 

Kromek (KMK.L) 26.75p £66.40m

Kromek, a worldwide supplier of detection technology focusing on the medical, security and civil nuclear markets, announced that it has been awarded its first contract for biological-threat detection by the Defense Advanced Research Projects Agency (“DARPA”), an agency of the US Department of Defense.

The contract, which is worth $1.99m over a twelve-month period and commences immediately, is to develop a proof-of-concept device for a vehicle-mounted biological-threat identifier. This project expands the application of Kromek’s technology to include biological-threat detection and builds on the success of the Company’s work with DARPA in nuclear-threat detection using the D3S product family. Following the initial twelve-month period, the contract could potentially be extended to a multi-year contract for the development of a fully deployable system.

 

Spectra Systems (SPSC.L) 95p £46.8m

Spectra Systems Corporation, a leader in machine-readable high speed banknote authentication, brand protection technologies, and gaming security software, announced that it has received unexpected additional orders for its high performance phosphours used by a G7 central bank.  These additional end of year orders are expected to result in a significant increase in Spectra’s profits above market expectations for 2018.

“We are very pleased that we were able to provide a second positive trading update in 2018 further underpining our continued growth, particularly in the area of optical materials”

 

Head Chef:

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

*A corporate client of Hybridan LLP

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