Small Cap Feast

Small Cap Feast – 11 January 2018

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 919

Total number of AIM Companies trading: 844*
* As at 07 January 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 07 January 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 139*

Total number of Standard List Companies trading: 130*
* As at 07 January 2019

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

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 31 Jan 2019.

AIM

Circassia Pharma (CIR.L) – specialty pharmaceutical company focused on respiratory disease transferring from the Main Market. No funds being raised. Due 4 Feb.

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 late January 2019.

 

Breakfast Buffet

Stobart Group (STOB.L) 164p £584m

Recommended cash offer by Connect Airways  for Flybe of 1p per share or £2.2m.  Connect Airways is a company jointly-owned by DLP Holdings, Stobart Aviation Limited and
Virgin Travel Group Limited.

The parties have committed to make available a £20m bridge loan facility to support Flybe’s ongoing working capital and operational requirements and are intending to provide up to £80m of further funding to the Combined Group to invest in its business and support its growth, as well as a contribution of Stobart Air.

 

Next Fifteen Communications (NFC.L) 490p £408m

Acquisition of Planning-Inc, a predictive analytics and data marketing business. Initial consideration £6.3m. Maximum consideration £15m.

The Acquisition is expected to be earnings accretive for Next 15 in the first full year of ownership (FY20).

For the year ended 31 Dec 2017, Planning-inc reported EBIT and profit before tax of £1.3m, and gross assets of £2.7m.

The senior management team will continue to lead the business which includes clients such as Argos, M&S, Halfords and Sony.

 

Lighthouse Group (LGT.L) 24.9p £31.8m

The national financial advisory group, announced that for its financial year ended 31 Dec 2018, it expects to report EBITDA and PBT in line with Board expectations.

The Group expects to report its full audited results for the year ended 31 Dec 2018 in late Feb 2019.

FYDec18E rev £56.29m and PBT £2.73m.

 

Berkeley Energia (BKY.L) €0.36m €77.27m

The Company notes the recent Spanish media reports regarding potential approvals for the Salamanca project.

The Company has received no official notice in this regard, and will update shareholders if and when any formal notice is received.

 

Trans-Siberian Gold (TSG.L) 38.55p £37.97m

Trading update.

Upper end of FY18 gold production expected to be exceeded

Improved gold grades in Q4 (Q3 2018: average gold grade of 7.8 g/t)

Electricity supply contract expected to substantially reduce power costs in 2019

Continuing construction of underground water pumping facilities

Operational performance at the Asacha Gold Mine has continued to improve in H2 2018 and as a result of improving gold grades in Q4 2018, the Company expects to slightly exceed the upper end of the full year total gold production guidance of 36,000 – 40,000 oz for 2018. As previously indicated, a production update for Q4 2018 will be provided in Jan 2019.

 

TMT Investments* (TMT.L) $2.51 $73.26m

The venture capital company investing in high-growth technology companies, announced that, further to its announcement of 2 Jan 2019 regarding the disposal of its entire holding in Wrike, Inc.,  the Company confirms receipt of the initial net consideration of $22.3m, with the deferred consideration of up to $0.3m payable, subject to certain adjustments, over a period of 18 months.  The Company confirms that after certain completion adjustments to the overall consideration, the net aggregate cash consideration due to the Company has been reduced by $0.3m to $22.6m.

The Disposal represents a substantial uplift in the valuation of TMT’s investment in Wrike and following receipt of $22.3m, the Company’s cash position has now increased significantly to over $25m and the Company will continue to seek to identify and invest in opportunities within the technology sector to create significant shareholder value.

 

Bidstack Group (BIDS.L) 4.55p £12.3m

The native in-game advertising group which was admitted to trading on AIM on 19 Sept 2018, provided an update on trading for the year ended 31 Dec 2018.

Trading for the year ended 31 Dec 2018 is expected to be in line with market expectations with over £0.3m of revenues generated for 2018;

Exclusive dynamic digital advertising contracts now signed with nine games including FM18, FM19 and DiRT Rally 2;

FM19 launched in early November 2018 following successful beta trials incorporating Bidstack’s platform with approximately twenty advertisers.

 

Microsaic Systems (MSYS.L) 0.9p £4.1m

The developer of point of need mass spectrometry  instruments, announced the introduction of its new protein identification technology.

The Microsaic MiD® ProteinID is a break-through mass identification technique that allows users to verify target proteins throughout the whole bioprocessing value chain. By providing deterministic characterisation for proteins and small molecules at the point of need, the Microsaic MiD® ProteinID offers fast results over a mass range of 50-3,200 m/z, the broadest mass coverage for a small footprint mass spectrometer.

 

Georgian Mining (GEO.L) 5.88p £6.75m

The copper-gold exploration and development company, announced that the Georgian Government Resolution on the Company’s pending exploration permit was included in a cabinet meeting at the end of Dec 2018, immediately before the Government went to recess for the festive season.

“We’re pleased the Resolution on the exploration permit was finally addressed at a Government session.  During the meeting there were minor points for clarification raised with the Mining Agency, which were satisfactorily addressed and we are now awaiting the final approval. It is our understanding that all of the Ministries have responded positively and there continues to be strong support for the application.”

 

Sopheon (SPE.L) 1420p £144m

FYDec18 update from the international provider of software, expertise, and best practices for Enterprise Innovation Performance. In the trading update issued on 8 Oct 2018, we noted that record third quarter performance had taken revenue visibility1 for 2018 above $30m, leading to an upgrade of market expectations for the year. The Company reported continued commercial delivery in the final months of the year, evidenced by the recently announced partnership with global confectioner The Hershey Company. Accordingly, we expect that revenue for the year ended 31 Dec 2018 will be comfortably in line with the already upgraded market expectations, and early indications are for a stronger outperformance at the EBITDA and pre-tax profit levels. FYDec18E $24.5m and PBT $4m.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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