Small Cap Feast

Small Cap Feast – 10 October 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 875

Total number of AIM Companies trading: 791*
* As at 08 October 2019

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 87*

Total number of NEX Growth Market Companies trading: 85*
* As at 08 October 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 165*

Total number of Standard List Companies trading: 143*
* As at 08 October 2019

Dish of the Day:

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Off the Menu:

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What’s Cooking in the IPO Kitchen?

Main Market premium

Registration document approved for Helios Towers. The Group provides essential network services, flexible infrastructure solutions and reliable power supply to mobile network operators  in five African growth economies.  Revenue increased 7 per cent. year-on-year to US$191m (H1 2018: US$178m), with Adjusted EBITDA up 15 per cent. year-on-year at US$99m (H1 2018: US$86m) for the six months ended 30 June 2019. Pricing rumoured at 115p to 145p implying valuation of up to $1.8bn. Expected Oct 2019.

Breakfast Buffet

Osirium Technologies (OSI) 34p £4.6m

Osirium Technologies, a leading vendor of cloud-based cybersecurity software, announced a series of contract wins with an international banking group, a leading drinks manufacturer, and a provider of services to the pharmaceutical and biotech sectors.

The total licenses cover 100s of devices, with contract terms of between 12 and 36 months, with Osirium delivering its PxM Platform including the Privileged Access Management, Privileged Task Management and Privileged Session Management modules.

For the banking group the PxM platform has been selected to secure access to web interfaces, network devices and servers, and to control access to privileged accounts by a number of the customer’s key external vendors. In addition to core privileged access management functions, the customer has selected Osirium’s award-winning Task Automation capabilities to enable its Helpdesk team achieve significant time savings and enhanced security by automating processes in its day to day operations.

Castleton Technology (CTP) 53p £76m

Castleton Technology , the software and managed services provider to the public and not-for-profit sectors, today announces the following update on trading for the six-month period to 30 September 2019. The Company generated revenue of not less than £11.6m, adjusted EBITDA* of not less than £2.9m and cash generation in the period of not less than 79% of adjusted EBITDA, facilitating a continued reduction in the Company’s net debt compared to the prior year.

Recurring revenue has increased on an absolute basis and represented approximately 65% of total revenue in the period.

Trading in HY2019 has been behind expectations, primarily due to product and professional services revenue being lower than anticipated. The increase in recurring revenue has not been enough to offset the reduction in one-off revenue, and as a result of this, revenue, EBITDA and operating cash are lower than the strong comparable period last year.

IQE (IQE) 62p £484m

IQE plc the leading supplier of advanced wafer products and material solutions to the semiconductor industry, announces the acquisition of third-party shareholdings in its CSDC joint venture in Singapore taking its ownership to 100%.

CSDC was formed in March 2015 as a joint venture between IQE’s Singaporean subsidiary MBE Technology Pte Limited (51%), WIN Semiconductors Corp (25%), Nanyang Technological University (18%) and individuals of the NanYang University (6%). It was established as a vehicle for the development and commercialisation of compound semiconductor technologies for academic and industrial customers based on Molecular Beam Epitaxy (MBE) technologies in Asia.

Since formation, the geo-political landscape has changed significantly. During 2019 in particular, the localisation of Asian technology supply chains is rapidly becoming evident and significant opportunities are emerging for the China 5G market.

Motif Bio PLC (MTFB) 0.6p £2.3m

Motif Bio announced that the Company has received the official minutes of the Type B meeting with the U.S. Food & Drug Administration (FDA) which took place on September 19, 2019.

As disclosed in the announcement on September 30, 2019, the minutes confirm that a single well-designed adequate and well-controlled Phase III clinical trial demonstrating safety and efficacy of iclaprim in patients with HABP, including VABP, along with data on potential mechanisms of hepatic injury, would enable submission of a New Drug Application for approval by FDA. It would take several years to enroll and complete a HABP/VABP Phase III trial and the cost is expected to be tens of millions of dollars.

The Company continues to believe that the most efficient way to generate future value from iclaprim is for a partner or other entity with a lower cost of capital to complete the HABP/VABP Phase III trial and commercialise the asset globally.

Sensyne Health (SENS) 107.5p £135m

Sensyne Health, the British clinical AI technology company, today announced it has joined Bayer’s LifeHub UK in an extension of its existing collaboration with Bayer to accelerate the development of new treatments using clinical artificial intelligence.  Sensyne Health will work in partnership with Bayer on novel projects at the LifeHub UK including its inaugural project – the development of AI-enabled radiology to enhance patient outcomes.

LifeHub UK, which launches today, forms part of a global network of Bayer innovation hubs. The LifeHub UK is designed to accelerate and optimise disease detection and data-driven drug discovery by enabling Artificial Intelligence (AI)-enabled imaging solutions. Sensyne Health will be one of the first companies to have a presence in the LifeHub.

Avacta Group (AVCT) 19.5p £23m

Avacta Group, a biotechnology company developing novel cancer immunotherapies based on its proprietary Affimer® platform, today announces that it has entered a collaboration and option agreement with ADC Therapeutics SA, a clinical-stage oncology-focused biotechnology company pioneering the development of highly potent and targeted antibody-drug conjugates for patients suffering from haematological malignancies and solid tumors.  The agreement is to develop Affimer-drug conjugates combining Avacta’s Affimer® technology with ADC Therapeutics’ pyrrolobenzodiazepine (PBD)-based warhead and linker technologies.

Tekmar Group (TGP) 145p £72m

Tekmar, a market-leading technology provider of subsea protection systems announced that it has today signed a sale and purchase agreement for the acquisition of Pipeshield for a consideration of £6.5m from its founder Steven Howlett.

Pipeshield is a global market leader in the provision of patented subsea concrete mattress protection systems;

Revenue and profit before tax of £6.6m and £0.8m respectively in the year ended 31 December 2018 (“FY18”);

As at 31 August 2019, Pipeshield had net assets of c.£3.1m, including c.£1.1m cash, c.£3.0m trade debtors and c.£1.3m trade creditors;

Premier AM Group (PAM) 176.5p £187m

Premier Asset Management Group PL today announces a trading update for the Company’s fourth quarter ended 30 September 2019.

Highlights

Assets under management (AUM) were £6.6 billion as at 30 September 2019 (30 September 2018: £6.9 billion)

Outflows for the quarter of £246m (3 months to 30 September 2018: inflows £120 m)

Total net outflows of £233m for the twelve months to 30 September 2019 (twelve months to 30 September 2018: inflows £734m)

The Company expects to announce its final audited results for the year ended 30 September 2019 on 28 November 2019

Recommended all-share merger with Miton Group plc approved by shareholders: expected effective date 14 November 2019

Caledonia Mining Crp (CMCL) 575p £61.8m

Caledonia Mining Corporation Plc announced the successful installation and commissioning of a new oxygen plant at the Blanket Mine  in Zimbabwe.

The new oxygen plant is expected to improve metallurgical recovery and reduce cyanide consumption at Blanket. Based on test work conducted, it is anticipated that the plant will improve overall metallurgical recoveries at Blanket to approximately 94 per cent. Recoveries have averaged approximately 93 per cent in 2019.

John Lewis Of Hunger (JLH) 0.61p £1.12m

John Lewis of Hungerford, the specialist manufacturer and retailer of kitchens, bedrooms and freestanding furniture, provides an update to the market on its expected outturn for the year ended 30 June 2019 and current trading.

Further to the announcement on 7 May 2019, the Company confirms that trading in the second half of the year was  better than anticipated then and, therefore, it now expects to report a loss in the range of £220,000 to £240,000 for the year ended 30 June 2019.

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

*A corporate client of Hybridan LLP

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