Small Cap Feast

Small Cap Feast – 11 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): 139*

Total number of Standard List Companies trading: 130*
* As at 06 December 2018

Dish of the Day:

SDCL Energy Efficiency Income Trust Ord (SEIT.L)—a London based investment firm with a proven track record of investment in energy efficiency and decentralised generation projects, has joined the premium segment of the Main Market.

Off the Menu:

The Kellan Group PLC has cancelled its quote on AIM in the best interests of shareholders of Kellan according to the Board

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

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.


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 mid December.


Breakfast Buffet

Driver Group (DRV.L) 96.5p £16.27m

Driver Group, the global professional services consultancy to construction and engineering industries, announced its results for the financial YE 30 Sept 2018.

Revenue increased 4% to £62.6m (2017: £60.2m) with continued focus on core claims and disputes

Gross profit increased to £16.3m (2017: £14.8m) resulting in a gross margin % increased to 26.0% (2017: 24.6%)

Underlying PBT increase of 54% to £3.8m (2017: £2.5m)

Profit for the year £2.2m (2017: £0.3m)

Net Cash £6.9m (2017: borrowings £0.2m)

Earnings per share increased to 4p (2017: 0.7p)

Utilisation increased to 80% (2017: 76.2%) contributing to the increased gross margin %

Positive start to the new financial year in line with management expectations


K3 Capital Group (K3C.L) 282p £115.23m

K3 Capital Group, a leading business and company sales specialist in the UK, announced a trading update ahead of its interim results for the six-month period ended 30 Nov 2018, which will be announced on 21 Jan 2019.

The Group has achieved significant revenue and profit growth across its Knightsbridge and KBS Corporate brands, compared to the first half of the prior financial year, which management see as a trend expected to continue into the second half of the financial year and beyond. In addition, K3 enters its second half of the financial year with a record number of opportunities in its KBS Corporate Finance pipeline, including a number of significant transactions that have signed heads of terms, and the Company expects to complete the majority of these transactions in the current financial year. As such, the Company is pleased to confirm that it continues to trade in line with market expectations.


Volex (VLX.L) 88p £127.8m

Volex, the global provider of cable assemblies, announced the acquisition of GTK (Holdco) Limited, a UK-based manufacturer of customised electronic solutions including cable assemblies, displays and connectors, for a total consideration of approximately £14.3m. GTK is currently owned by funds administered by YFM Equity Partners and its management team.

GTK is headquartered in Basingstoke and has operations in the UK, Romania and Taiwan. In business for over 25 years, it has more than 300 active customers and is focused on the Northern European market.

For the year ended 31 July 2018, GTK reported audited revenues of £15.8m and a pre-exceptional operating profit of £1.7m. Revenue has increased by 49% over the last three years, representing an annual growth rate of 14.2%. On completion, GTK had cash on balance sheet of £1.3m.


RA International Group (RAI.L) 65.5p £111.09m

RA International Group, a leading provider of services to remote locations in Africa and the Middle East, announced that it has secured a contract in a Central African country with a large publicly listed US company.

The company is a new client for the Group and has engaged RA International to provide support services in connection with their work in strengthening the capacity of local security sector institutions on behalf of the US Government.

The contract is for one base year with four further option years and commences in the fourth quarter of 2018. The contract value over the full five years is up to $5.6m, not including the potential supply of equipment and materials which may increase the value of the contract to RA International.


Polarean Imaging (POLX.L) 14.5p £12.94m

Polarean Imaging, the medical-imaging technology company, with a proprietary drug-device combination product for the magnetic resonance imaging (MRI) market, announced that it has conditionally raised a total of $4m (£3.13m) by means of a conditional Fundraise via the issue of 22,321,429 ordinary shares of £0.00037 in the capital of the Company with new and existing investors at a price of 14p per Fundraise Share.

Net proceeds will be used to provide additional support for the Company’s ongoing Phase III Clinical Trials, ensuring the timely completion of recruitment and read-out and to support the preparation and submission of the New Drug Application to the US FDA and significant strengthening of the Company’s balance sheet.


Zytronic (ZYT.L) 355p £59.36m

Zytronic, a leading specialist manufacturer of touch sensors, announced its preliminary results for the year ended 30 Sept 2018.

Group revenues of £22.3m (2017: £22.9m), impacted by a £1.3m reduction in revenues generated from the Financial market, offset in part by growth in the Gaming market

Gross margin reduced to 37% (2017: 41.1%), reflecting the impact from reduced Financial market products on production efficiencies and the combined effects of some new product and process introductions

Administration costs of £3.6m (2017: £3.6m); with savings in salaries offset by £0.3m of one-off, settled litigation costs

Reported PBT of £4.2m (2017: £5.4m), as a result of reduced revenues, lower gross margin and litigation costs

Final dividend of 15.2p proposed (2017: 15.2p), bringing total dividends for the year to 22.8p (2017: 19p), up 20% year on year

Basic EPS of 22.7p (2017: 29.0p)


Tristel PLC (TSTL.L) 240p £104.11m

Tristel, the manufacturer of infection prevention, contamination control and hygiene products, will hold its AGM today at 10am.

“We expect unaudited pre-tax profit (before share-based payments) for the first half to be no less than £2.2m, compared to £2m for the same period last year. The expected pre-tax profit figure takes account of the transaction costs arising from the acquisition of the Ecomed companies which we concluded last month; but it will include only one full month’s revenue and profit contribution from them.  Our integration of these new French and Benelux businesses is progressing well.

“The Company is performing in line with management’s expectations and our United States regulatory approvals project is progressing as planned.”


LightwaveRF plc (LWRF.L) 6.5p £4.83m

LightwaveRF plc, the leading smart home solutions provider, announced its audited final results for the year ended 30 Sept 2018.

Revenue of £2.81m (2017: £3.03m) due to weak first half performance.

Strong last quarter with revenue run rate up 50% on previous three quarters.

Gross profit £0.83m (2017: £1.08m).

Gross margin 29.3% (2017: 35.5%).

Underlying gross margin broadly maintained at 35.3% (2017: 35.8%).

Loss before and after taxation £2.54m (2017: £0.85m).

Investment in research and development £1.6m (2017: £0.88m).

Post year end, £300,000 loan drawn down against R&D tax credit receivable.


IXICO (IXI.L) 23p £10m

IXICO plc, the data science company delivering insights in neuroscience, announced that Susan Lowther has resigned from her position as Chief Financial Officer and Company Secretary and stepped down from the Board with effect from 11 December 2018. She will leave the Company today to pursue other business interests. Until a successor is appointed, Conor Wolfson, who has been with the Company for over four years as the Group’s Financial Controller, will assume the duties of interim Head of Finance.

Charles Spicer, Non-Executive Chairman of IXICO, said: “On behalf of the Board, I would like to thank Susan for her many contributions to the Company.  She leaves IXICO in a strong financial position to continue executing on its commercially-led growth strategy. We wish her well in her future endeavours. The search for a replacement Chief Financial Officer has been initiated.”


Arix Bioscience (ARIX.L) 174p £234.m

Arix Bioscience, a global healthcare and life science company supporting medical innovation, announced the appointment of Dr Christian Schetter as Entrepreneur in Residence (EIR). Christian has over 20 years’ industry experience across the life sciences sector, and joins Arix from German immuno-oncology company Rigontec GmbH, where he was CEO for four years before its acquisition by MSD.

“I am delighted to welcome Christian to the team. He has a track record of creating companies that foster exciting science and securing impressive exits. His extensive experience of building companies in the life science industry will greatly benefit Arix as we continue to build on our existing investments and leverage our extensive pipeline.”

Christian Schetter commented: “Arix has a varied portfolio of innovative companies that it is committed to building and developing. Arix has grown significantly since its IPO and not only built a diverse portfolio, but also a unique group of industry and academic partners, and a talented international investment team. I am very excited to join Arix and look forward to supporting the team in evolving this pipeline as we build the next generation of world leading biotech companies.”


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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