Small Cap Feast

Small Cap Feast – 10 July 2019

Dish of the Day:

No Joiners Today

Off the Menu:

WYG Plc (WYG) has cancelled its admission on AIM due to being acquired by Tetra Tech.


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 the IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m.


Breakfast Buffet

Circle Property (CRC.L) 192p £54.33m

Circle Property, which invests in, develops and actively manages well-located regional office assets, announces record results for the year ended 31 March 2019.

Third successive year of delivering NAV growth – average increase in excess of 20% per annum

NAV per share of £2.77, up 20.43% (2018: £2.30):

NAV up 86% since IPO in February 2016 to £78.4m

NAV CAGR of 23% since IPO; total return CAGR of 26%

9.23% increase in independent valuation of the Group’s portfolio of 15 commercial property investment and development assets in the UK to £124.6m (31 March 2018: £114.1m) demonstrating continued growth in the Group’s asset management program

11.71% increase in contracted annual rental income to £7.61m (2018: £6.8m), post successful disposal of non-core assets and a further £0.34m of contracted rent signed post year end

16.20% increase in operating profit before gains on investment properties to £3.66m (2018: £3.15m)

PBT up 8.97% to £15.25m (2018: £13.99m) and earnings per share of 53p (2018: 51p) reflecting a combination of operational profit and revaluation gains

Xeros Group (XSG.L) 7.5p £16.14m

Xeros Technology Group, the developer and provider of water saving and effluent reduction technologies with multiple commercial and domestic applications, announced that its patent application for microfibre filters suitable for domestic washing machines has now been published by the World Intellectual Property Organization (‘WIPO’).

The device is trademarked XFiltra™ and its design can be licenced by any domestic washing machine manufacturer to drastically reduce microfibre pollution from the washing of clothes.

XFiltra is a combined filter, pump and de-watering unit designed to be an integral part of a domestic washing machine. It can be easily incorporated into any front-loading machine during manufacture.

Washing clothes containing synthetic fibres such as polyester and nylon has been identified as the single biggest source of primary microplastics released into the oceans every year[1] with as many as 700,000 microfibres released into the environment from a single domestic wash cycle.

XFiltra is the world’s first operationally effective and commercially viable filter to address this issue.

Eland Oil & Gas (ELA.L) 127p £267.1m

Eland Oil & Gas, an oil & gas production and development company operating in West Africa with an initial focus on Nigeria, announced that a remedial tubing patch has been installed on the Gbetiokun-3 well in licence OML40.

As previously announced we have been undertaking necessary remedial work on the Gbetiokun-3 short string. The well was drilled as an appraisal well in Q4 2018 with the dual completion on the D9000 and E4000 reservoirs being installed in Q1 2019. During pressure testing, a small leak was identified on the shallower D9000 completion string. Following further diagnostic logging, the leak was located, and a remedial tubing patch has now been successfully installed.

At present, the short string is being produced with the temporary facilities on location. Initial gross rates of some 3,880 bopd have been recorded at a choke size of 36/64″. The deep E4000 interval was tested in Q1 2019 and achieved choke-limited gross rates of 3,000 bopd, in line with pre-drill expectations.

The company expects the field to be brought onstream in July through the Early Production Facility, presently being installed, with initial gross production of approximately 12,000 bopd (net: 5,400 bopd) from the Gbetiokun-1 and -3 wells.

Redx Pharma (REDX.L) 14.5p £7.9m

Redx Pharma announced that it has signed a definitive agreement with Jazz Pharmaceuticals plc (Nasdaq: JAZZ; “Jazz”) under which Jazz has acquired Redx’s pan-RAF inhibitor programme for the potential treatment of RAF and RAS mutant tumours. Jazz will be responsible for all future development, regulatory, manufacturing and commercialisation activities.

Under the terms of the agreement, Jazz will pay Redx an upfront payment of $3.5 million in cash for all rights, title and interest relating to Redx’s proprietary pan-RAF inhibitor programme, including all related patents.  Redx is eligible to receive up to $203m in development, regulatory and commercial milestone payments from Jazz, with the next milestones being initiation of IND enabling studies, followed by a further milestone at IND submission to the FDA. Redx is also eligible for incremental tiered royalties in mid-single digit percentage, based on any future net sales.

As part of a separate collaboration agreement, signed in parallel, Jazz will pay Redx to perform research and preclinical development services with the goal of completing IND-enabling studies.

Oracle Power (ORCP.L) 0.32p £4.03m

Oracle Power, the UK energy developer of a combined lignite coal mine and mine mouth power plant located in the south-eastern Sindh Province of Pakistan (Thar Block VI), advised that the Company has received a further tranche of £50,000 from Brandon Hill Capital Limited, the second amount drawn down under the loan agreement that was announced on 30 May 2019. The total amount drawn down under this arrangement now totals £100,000.

600 Group (SIXH.L) 19.35p £22.44m

The 600 Group, the diversified industrial engineering company, announced its results for the year ended 30 March 2019.

Revenue from continuing operations up 1.9% to $65.2m (2018: $63.9m)

Underlying operating profit up to $5.3m (2018: $1.8m)

Gross margin improved 2.4% to 36.1% (2018: 33.7%)

Underlying pre-tax profit up to $4.1m (2018: $0.6m)

Group order book up 6.5%

Recommended final dividend of 0.5p per share

Central Asia Metals (CAML.L) 201p £352.8m

Central Asia Metals  provided a H1 2019 operations update for the Kounrad dump leach, solvent extraction and electro-winning (‘SX-EW’) copper recovery plant in Kazakhstan (‘Kounrad’) and the Sasa zinc-lead mine in North Macedonia (‘Sasa’).

Production on track to meet full year guidance for copper, zinc and lead

H1 2019 Kounrad

Copper produced, 6,594 tonnes

H1 2019 Sasa

Zinc in concentrate produced, 11,517 tonnes

Lead in concentrate produced, 14,357 tonnes

Cash in the bank on 30 June 2019, $30.2m

Gross debt on 30 June 2019, $126.4m

Tricorn Group (TCN.L) 19.5p £6.25m

Tricorn Group, the tube manipulation specialist, announced on May 14 2019 that it had extended its capabilities and facilities in the USA with the purchase of a powder coating and wet spraying line and securing an initial 5 year lease on 47,000 square feet within a large facility with options to extend for a further 5 years and on a further 50,000 square feet of space within the building.

This facility and the associated paint line are fully operational, well ahead of the expected end of July 2019 timing previously indicated.

Tlou Energy (TLOU.L) 6.35p £27.21m

Tlou Energy announced that the Lesedi 4 production pod has successfully reached Critical Desorption Pressure (“CDP”).

The Lesedi 4 pod has reached CDP;

Short term gas flow test conducted at the Lesedi 3 pod yielding positive results;

Dewatering of the Lesedi 3 & 4 pods is continuing according to plan.

Tlou’s Managing Director, Mr Tony Gilby commented, “We are very pleased to have now reached CDP at both the Lesedi 3 and Lesedi 4 production pods.  The short-term gas flow test at Lesedi 3 has also been positive, and with the primary objective of demonstrating a commercial gas flow rate, we look forward to further testing at both Lesedi 3 and 4.  Further updates will be provided in due course.”

DigitalBox (DBOX.L) 6.88p £6.09m

Digitalbox, the digital media business, will be making the following statement at its AGM today.

Trading in the first half of 2019 has been consistent with expectations for the year as a whole. Our Entertainment Daily platform has continued to deliver excellent levels of audience engagement with its core 30 to 60-year-old female demographic and the size of its unique user base has grown in the first six months of the year.

“The Group’s buy and build strategy commenced with the acquisition of The Daily Mash on 5 March 2019. The process of integrating this brand has gone well to date and we have identified new opportunities to scale the brand further beyond the direct website activity. There continues to be a great deal of interest around the BBC2 show the Mash Report that was nominated for a BAFTA this year.

“The market remains rich with opportunity as the team builds the business. Whilst we continue to review possible acquisition targets, we are also exploring new growth opportunities within the existing business.”

Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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