Small Cap Feast

Small Cap Feast – 10 January 2020

Set Menu AIM:

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Set Menu NEX Growth:

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Set Menu Standard List:

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Dish of the Day:

No Joiners Today

 

Off the Menu:

SalvaRx Group has left AIM pursuant to AIM rule 41. Anticipates, making a further announcement about a potential acquisition shortly which will, should this transaction proceed, involve a reverse takeover by the Company and re-listing of the Company’s ordinary shares.

 

Dish of the Day:

Off the Menu:

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

Calisen Group. Potential Intention to Float. Owner and manager of essential energy infrastructure assets . Consolidated FY Dec 18 revenue £162.1m and operating profit £25.4m. Raising up to £300m in primary plus partial vendor sale.

The Global Sustainable Farmland Income Trust will invest in a diversified portfolio of operational farmland assets located in major agricultural markets including the United States, Europe, New Zealand, Australia and certain countries within Latin and South America. Raising up to $300m.   Due 28 February

Main Market (Specialist Funds)

Investment firm Nippon Active Value fund is seeking to raise up to £200m at an issue price of 100p per share via an IPO.   The company aims to invest in a portfolio of quoted Japanese stocks with market capitalisations of up to $1bn.   First day of dealings expected early February.

 

Breakfast Buffet

Surface Transforms (SCE.L) 22 p £30m

Update for 7mths to Dec 2019. Revenue for the seven month period was £1,451k (seven months to December 2018: £512k). This outturn is in line with expectations. Cash as at 31 December was £768k (December 2018: £319k) to which can be added customer receipts of £425k received in the first trading week of January 2020. Whilst lower than expectations, this is due to temporary factors including the phasing of sales in the seven months, delayed payment by customers and slower than planned inventory reduction.

Discussions with potential OEM customers are progressing well.

The Company has now received full regulatory approval from the UK Environmental Agency for all the new furnaces in OEM Cell One. Additionally all the furnaces have now demonstrated functional capability and the Company is on target to demonstrate full system integration in Q1 2020.

 

MTI Wireless Edge (MWE.L) 39p £34.3m

The technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, is pleased to announce that it has secured an additional order to an existing contract, worth approximately US$0.6m, for the manufacturing of military antennas. The original order received in March 2019, worth US$1m, is to be delivered over 40 months. The additional order is to be delivered within the next 12 months.     

MTI’s CEO, Moni Borovitz, commented: “We are delighted with this additional contract win, which demonstrates this customer’s satisfaction with our products, technology and service. We continue to see expansion and growth opportunities in all sectors of the antenna industry, particularly in the 80 GHz spectrum as mobile operators start to implement the roll-out of their 5G networks”.”

 

Premier Miton Group (PMI.L) 172p £272m

Quarterly update of its unaudited statement of Assets under Management for the three months to 31 December 2019 (the ‘Period’).

  • Merger of Premier Asset Management Group plc and Miton Group plc to create Premier Miton Group plc completed on 14 November 2019
  • Combined AuM of £11.2 billion at 14 November 2019
  • Closing AuM of £11.6 billion at 31 December 2019 (31 December 2018: £6.4 billion)
  • Net outflows of £222m in the Period (3 months to 31 December 2018: £65m net inflows)

With UK political uncertainty beginning to lift, we believe that investor confidence will improve in 2020. Against an expected more favourable background, we believe the combination of our broader product range, strong investment performance across different investment strategies, including our equity and multi-asset funds, and our enlarged distribution and marketing capabilities, means we are well placed for future growth.” 

 

ABCAM (ABC.L) 1370p £2.8bn

 HY Dec 19 trading update form the specialist in he supply of life science research tools.

Overall, the Group expects to report total first half revenue of £138.2m (H1 2019: £124.7m), representing growth of 10.8% on a reported basis and 8.3% on a constant currency basis. Based on the expected revenue phasing for the year, we are tightening our constant currency revenue growth target for the full year to 9-10%.

“Reflecting a rapid start to the implementation of our multi-year strategic growth plans and associated investments detailed in our 2019 Full Year Results and recent Capital Market’s Event, Adjusted Operating Profit margin is expected to be towards the lower end of our guidance of 25-28% for the full year.” The Group closed the acquisition of Expedeon Ltd, Innova Biosciences Ltd. and TGR BioSciences from Expedeon AG on 1 January 2020. These businesses are expected to contribute approximately £4m of incremental revenue in the current fiscal year (FY2020) and be neutral to adjusted earnings.

 

Team17 Group (TM17.L) 420p £551m

The global games label, creative partner and developer of independent (“indie”) premium video games, provides the following trading update for the year ended 31 December 2019.

The Company is pleased to report its growing portfolio has continued to perform well over the peak Christmas sales period with a specifically strong performance from the Company’s multiplayer games on Nintendo Switch.

As a result, management now expects both adjusted EBITDA and revenue to be ahead of market expectations for the year ended 31 December 2019.

Furthermore, the Company continues to develop a solid portfolio of new original game IP launches in 2020, representing more than any previous year.

 

Lekoil (LEK.L) 9.3p £50m

The oil and gas exploration and production company with a focus on Nigeria and West Africa, announces today on behalf of Optimum Petroleum Development Company (“Optimum”), the Operator of the OPL 310 License, and LEKOIL Nigeria Limited, a member of the LEKOIL Limited group, that the site survey on OPL 310 has commenced.

Following on from the drilling of Ogo-1 and Ogo-1 ST in 2013 which encountered hydrocarbons within the SynRift and PostRift, Optimum and LEKOIL are envisaging a two-well programme with the objective of obtaining dynamic flow data from well testing while preserving the drilled wells as producers. In conjunction with this appraisal drilling plan, the site survey is required for the assessment of top-hole drilling, jack-up rig and potential platform foundation hazards and any seabed obstructions.

Optimum and LEKOIL envisage that first well spud could occur in the second half of this year and as previously announced on 2 January 2020, LEKOIL has secured US$184 million (gross) of funding for the appraisal drilling and initial activities on the Ogo field .

 

Frontier IP (FIPP.L) 69.5p £35.2m

 “Frontier IP, a specialist in commercialising university intellectual property, is pleased to note that  portfolio company Exscientia (“Exscientia” or the “Company”), a world leader in AI-driven drug discovery, that it has entered into a collaboration with Bayer AG focused on cardiovascular disease and oncology.

 

Under the terms of the agreement, Exscientia may be eligible to receive up to 240 million including upfront and research payments, and for meeting near term and clinical milestones. The Company may also receive sales royalties.

Exscientia’s other partnerships include collaborations with Celgene, GSK, Roche, Sanofi, GT Apeiron, Rallybio and Evotec. Frontier IP currently holds a 3.25 per cent stake in the Company.”

 

Zegona Comms (ZEG.L) 115p £255m

Euskaltel (Zegona 20%) yesterday announced the departure of Jon Ander de las Fuentes, Chief Financial Officer, and the appointment of Ángel Olabuenaga Burón as his replacement.  This development continues the process of creating a stronger and more agile leadership for the business which José Miguel García commenced on his arrival as CEO in June 2019.

Ángel has more than 19 years of experience in multinational businesses, most recently as Chief Financial Officer – Latin America for Vestas.  Zegona welcomes Angel’s appointment and believes Euskaltel will benefit from the operational focus he brings.

 

European Metals (EMH.L) 15.25p £23m

 £350k placing at 15.25p. The net Placing proceeds will be used to continue to advance European Metal’s corporate strategy including:

To progress the development of the Cinovec [Lithium] Project; and

  • Finalise the proposed investment by CEZ Group.

 

Gt Western Mining (GWMO.L) 0.11p £1.23m

Results of its recently completed soil sampling survey at the Rock House (“RH” Group) area on its properties in Mineral County, Nevada.  The soil survey has delivered compelling evidence for mineralisation in this previously unexplored and unmined area of Great Western’s properties

The survey has clearly identified three separate highly-prospective zones of mineralisation, which will be followed up as soon as possible with further exploration work.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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