Small Cap Feast

Small Cap Feast – 11 April 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 898

Total number of AIM Companies trading: 828*
* 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:

No Joiners Today

Off the Menu:

No Leavers Today

Dish of the Day:

No Joiners Today

Off the Menu:

Sandal plc has left the NEX Exchange

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

Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019.

Breakfast Buffet

Strategic Minerals (SML.L) 1.62p £23.17m

Strategic Minerals, a producing mineral company actively developing projects prospective for battery materials, provided the following update on ore sales at the Company’s Cobre magnetite operations in New Mexico, USA for the three months to 31 March 2019 and to inform the market of cash available at the end of the quarter.

$0.21m of cash generated by Cobre in the quarter

Routine client plant maintenance resulted in reduced quarterly sales

Drone survey indicates stockpile inventory of 711,000 tons

Major Cobre client currently overdue with latest payment

Group cash balance of $1.240m as at 31 March 2019

$0.54m re-invested into the Company’s projects during the quarter

 

CyanConnode (CYAN.L) 6.15p £10.4m

CyanConnode, a global leader in Narrowband Radio Frequency (RF) Smart Mesh Networks for smart city solutions, advised that it will be announcing its financial results for the year ended 31 Dec 2018, on 8 May 2019.  As reported on 17 Jan 2019, the Company’s 2018 financial results revenues will significantly exceed FY 2017. CyanConnode also confirms that trading for the first three months in 2019 has been performing well and is in line with market expectations.

“We are pleased to report that trading for the first quarter of 2019 has met CyanConnode’s market expectations.  In addition, the Board believes it has sufficient funds to execute its business plan for 2019 and reach cashflow breakeven. CyanConnode is expecting a positive second half of 2019 in its key markets including India, China and the rest of world for its pioneering smart city technology solutions.”

 

Alpha FMC (AFM.L) 244p £256.82m

Alpha FMC, a leading global provider of specialist consultancy services to the Asset and Wealth Management industry, provided its pre-close trading update before reporting its full year results for the year ending 31 March 2019.

Alpha FMC has performed well in the year with both revenue and Adjusted EBITDA expected to be ahead of the last financial year and in-line with current full year market expectations.

“We are pleased that Alpha has made further good progress in its second year as a public company.  Alpha recently launched its twelfth practice, Exchange Traded Funds & Indexing, and opened its tenth office, located in Zurich, as we continue to grow our international reach. We believe both expansions offer exciting potential.”

 

Avesoro Resources (ASO.L) 117p £101.97m

Avesoro Resources, the  West African gold producer, announced its preliminary production results for the quarter ended March 31, 2019 from its New Liberty Gold Mine in Liberia, and Youga Gold Mine, in Burkina Faso.

Consolidated gold production of 45,098 ounces in the Quarter;

New Liberty gold production of 25,855 ounces in the Quarter, a 5% increase on Q4 2018;

Youga gold production of 19,243 ounces in the Quarter, a 6% reduction on Q4 2018; and

Total material movement of 13,201kt in the Quarter, a 19% increase on Q4 2018, including 609kt of ore and 12,592kt of waste material.

 

Trackwise Designs (TWD) 102p £13.66m

Trackwise Designs, a provider of specialist products using printed circuit technology, announced its audited results for the year ended 31 Dec 2018.

Revenues up 23% to £3.47m

IHT revenues up 217%

Adjusted Operating profit up 385% to £325k

Adjusted EBITDA rises 171% to £618k

Net cash of £2.79m

Move to new enhanced operating site successfully completed

Investment in world class flexible printed circuit board facility begun and £1,281k invested in capacity and capability

Installation of two new process lines

IHT customers and opportunities increased from 7 to 31 over the year and to 45 by end of March 2019

Delivery of first ship set for the wiring harness for High Altitude Pseudo Satellite

 

Diurnal Group (FDL.L) 24.5p £15.74m

Diurnal Group, the specialty pharmaceutical company targeting patient needs in chronic endocrine (hormonal) diseases, announced that following a positive meeting with the EMA in March 2019, the Company has received formal Scientific Advice from the EMA confirming the current clinical and regulatory path for Chronocort® as a treatment for patients with congenital adrenal hyperplasia (CAH). Consequently, Diurnal intends to submit a Marketing Authorisation Application (MAA) for Chronocort® (modified release hydrocortisone) in Q4 2019 based upon the existing clinical data, including additional data which will be required to support Orphan Drug Status in the treatment of CAH. This positive outcome follows the submission of a regulatory package requesting Scientific Advice to the EMA for Chronocort® based on detailed analysis of data from its Phase 3 study, the largest ever clinical trial programme in CAH, and the open-label safety extension study.

 

Christie Group (CTG.L) 98.5p £25.73m

Christie Group, the leading provider of Professional & Financial Services and Stock & Inventory Systems & Services to the hospitality, leisure, healthcare, medical, childcare & education and retail sectors, announced its preliminary results for the 12 months ended 31 Dec 2018.

Revenue growth of 6.3% to £76.1m (2017: £71.6m)

Operating profit up by 8.4% to £4.1m (2017: £3.8m)
Significant improvement in the performance of our international operations

EPS improved to 11.23p per share (2017: 9.47p per share)

Total dividend for the year increased to 3p per share (2017: 2.75p per share)

Strong performance for the PFS division with operating profit of £5.6m (2017 £5.3m)

Challenging year for retail stocktaking within the SISS division, however a return to profit strategy implemented for UK Retail stocktaking

Record year for the hospitality stocktaking business

 

Renold (RNO.L) 28.2p £64.36m

Renold, a leading international supplier of industrial chains and related power transmission products, issued a period end trading update covering the year ending 31 March 2019 ahead of announcing preliminary results on 28 May 2019.

Trading in the year has been in line with the Board’s expectations. Group revenue in the year grew by 5.7% and, on an underlying1 basis, by 6.1% compared to the prior year.  Order intake grew by 2.8% on an underlying basis or 5.6% adjusted to exclude the large multi-year UK Couplings order from the prior year.  Orders were 2% ahead of revenue for the period.

Net debt finished the year at £29.8m (2018: £24.3m), reflecting a year of investment, particularly in the new Chinese factory.  The move to this new factory is completed, the factory is fully operational and we have exited the legacy site.

The Group expects to report results for the year in line with the Board’s expectations.

 

hVIVO (HVO.L) 27.25p £23.64m

hVIVO, an industry leading clinical development services business pioneering human disease models based upon viral challenge, announced its preliminary results for the year ended 31 Dec 2018.

Revenue & Other Income up 10.5% to £13.6m (2017: £12.3m)

Adjusted Loss Before Tax down 27.6% to £9.6m (2017: £13.2m)

Loss Before Tax – £18.9m (2017: £14.8m)

Cash and cash equivalents of £13.4m (2017: £20.3m)

Research and development expense down 21% to £4.8m (2017: £6.1m)

Current cost reduction programmes are forecasted to deliver improvements which will reduce operating expense  by a total of £3.9m, across 2018, 2019 and 2020

Re-focussed services business model with strong pipeline of contract opportunities

Good progress on business turnaround, R&D expense significantly reduced and focussed specifically on  opportunities to support the enhancement of our development services

Cost base and expenditure reductions implemented to support future growth and provide a pathway to cash  generation

Positive Phase IIb FLU-v results

 

Northbridge Industrial Services (NBI.L) 150p £39.76m

Northbridge Industrial Services, the industrial services and rental company, announced its preliminary results for the year ended 31 Dec 2018, which are in line with market expectations.

Group revenue up 4.9% to £26.9m (2017: £25.7m)

Gross profit up 20.6% to £11.3m (2017: £9.3m)

EBITDA up 44% to £4.6m (2017: £3.2m)

Pre-tax losses more than halved to £2m (2017: £4.4m)

Significantly increased cash generation from operations reaching £4.3m (2017: £2.6m)

Placing of 2 million shares at 125p raising £2.4m after expenses in June 2018

Acquisition of a complementary hire fleet of drilling tools in South East Asia from a distressed competitor for £3m

Net debt unchanged at £8.7m

Steadily improving conditions in the drilling tool market, with rental revenue in our Tasman business up 22.5% year on year

 

Head Chef:

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

*A corporate client of Hybridan LLP

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