Small Cap Feast

Small Cap Feast – 11 July 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 891

Total number of AIM Companies trading: 812*
* As at 08 July 2019

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 88*

Total number of NEX Growth Market Companies trading: 86*
* As at 08 July 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 July 2019

Dish of the Day:

No Joiners Today

Off the Menu:

Redhall Group (RHL) , has left AIM after appointing administrators

EU Supply (EUSP) , Due to the scheme of arrangement in relation to the cash acquisition of EU Supply by Mercell Holding AS,

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

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. Reinsurance giant Swiss Re has suspended plans for a £3.3bn London stock market flotation of its subsidiary ReAssure, blaming “heightened caution” among investors.

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.

AIM

Uniphar, a diversified healthcare services business with a workforce of over 2,000, is looking to join AIM. Raise TBC, expected mid-July 2019.

Breakfast Buffet

Sosandar (SOS.L) 16.25p £16.85m

Sosandar, the online women’s fashion brand, announced that it has raised £7m through a conditional institutional placing of new Ordinary Shares at a price of 15p per new Ordinary Share. The Placing Price is a 3.4% premium to the closing mid-market price per Ordinary Share on 10 July 2019, being the last dealing day prior to the announcement of the Placing.

The Placing is comprised of a firm placing of 22,669,384 new Ordinary Shares and a further placing of 23,997,316 new Ordinary Shares which is conditional, inter alia, on Shareholder approval.

Somero (SOM.L) 290p £163.38m

Somero provided an update on trading ahead of its interim results announcement scheduled to be released on 4 Sept 2019.

The Company confirms that its trading performance to date and expectations for 2019 are in line with the guidance provided in its 7 June 2019 trading update. Accordingly, the Company expectation to deliver 2019 revenues of approximately $87m, EBITDA of approximately US $28m, and expects to have net cash at 31 Dec 2019 of approximately $18m remains unchanged.

IndigoVision (IND.L) 175p £11.72m

The Board of IndigoVision reported that sales for the six months ended 30 June 2019 were $24.1m, representing an 8% increase over 2018 first half sales of $22.2m and a continuation of the revenue growth trend seen throughout last year. As a result, the Company expects to report positive EBITDA and an operating profit for the first half of the calendar year, for the first time since 2014 (H1 2018: operating loss of $1.1m).

Net cash in hand at 30 June 2019 was $2.7m (31 Dec 2018: $2m).

Tekcapital* (TEK.L) 8.25p £6.17m

Tekcapital the UK intellectual property investment group focused on creating marketplace value from university technology, announced a proposed placing of 9,375,000 new ordinary shares of 0.4p each in the Company, at 8p per share, to raise  £0.75m ($0.94m) to fund investment in key activities and to further develop and progress with the commercialisation of its portfolio of IP technologies and for working capital purposes.   

Cpl Resources (CPS.L) 555p £152.31m

We announced our half year results on 24 January 2019 for the six months to 31 Dec 2018. At that time we reported double-digit growth in profits and earnings per share. The Company has also performed well in the second half of the financial year which ended 30 June 2019. As a result, we expect our profit before tax for the full year to be ahead of market expectations.  Our balance sheet and cash flow remain strong.

Current market conditions are favourable with high demand for talent and low unemployment rates in key markets. However, we remain conscious of the potential impact of political and economic events globally on our business.

We plan to announce our full year results on 10 Sept 2019.

Beeks Financial (BKS.L) 80.50p £40.60m

Beeks Financial Cloud Group, a cloud computing and connectivity provider for financial markets, announced a collaboration with IPC Systems, Inc. (IPC) a leading global provider for the financial markets community, delivering secure, compliant communications and networking solutions.

IPC will act as the preferred vendor for Beeks’ global WAN infrastructure, while Beeks will be the preferred cloud vendor for IPC’s Connexus Infrastructure Services, underpinning and providing infrastructure for IPC’s Connexus Cloud customers. This collaboration delivers a unique opportunity for customers to benefit from IPC’s market leading network ecosystem and Beeks’ leading financial cloud.

As experts in their industry of low-latency financial infrastructure provision, both organisations are ideally equipped to supply the services that each requires.

“Our partnership with IPC for a strategic exchange of services highlights our versatile offering, in supplying solutions to other technology providers that require our capabilities. This collaboration looks to bring advantages to both sides and will consequently bring a more efficient service offering to customers, with a greater range of capabilities.”

Benchmark Holdings (BMK.L) 52.50p £281.82m

Benchmark, the aquaculture health, nutrition and genetics business, announced a significant discovery to increase genetic resistance to Streptococcus iniae infections in tiliapia, one of the biggest challenges in the aquaculture industry.

Benchmark’s team of geneticists have identified a significant quantitative trait locus (QTL), a small section of DNA, which is linked to increased levels of resistance to Streptococcus iniae.  The Company has made a patent application in respect of this discovery.

The identified QTL will be used for commercial production of tilapia fry marking the first time that a significant QTL for disease resistance is used in commercial breeding of tilapia.

Tilapia is the world’s second most farmed fish with 6.3 million tonnes of production in 2018 (estimated commercial value of £6.6 bn) and is growing at c. 5% CAGR (2017 – 2022) according to the United Nations Food and Agriculture Organisation.

Following this discovery, Benchmark’s tilapia  broodstock are selected both for improved resistance to Streptococcus agalactiae using genomic selection, and to Streptococcus iniae using the identified QTL in marker-assisted selection.

(TRMR.L) 121p £148.78m

Tremor International, a global leader in advertising technologies, announced that it has completed combining the capabilities of Tremor Video and RhythmOne’s Advanced TV solution, YuMe to create an enhanced Connected TV (CTV) offering.

The combination marks an important milestone in the ongoing integration of RhythmOne into the larger group, providing brands and agencies a comprehensive suite of Connected TV advertising solutions. The CTV advertising market is a core focus for Tremor, with research showing that in 2019 US advertisers will spend $3.8 billion on Over-the-Top (OTT) video advertising, with that figure rising to $5bn next year1.

The combined offering allows advertisers to deliver their videos across all screens in real-time, thereby allowing brands to reach linear TV audiences on second-screen devices, such as smart phones and tablets, as well as CTV. Furthermore, Tremor Video’s in-house Creative Studio enables brands and advertisers to ensure their advertisements stand out, while the Group’s audience measurement capabilities allow advertisers to track the return on investment on their CTV spend.

Haydale (HAYD.L) 1.77p £6.20m

Haydale the global advanced materials group, announced that its graphene-enhanced prepreg has been incorporated in the composite tooling and automotive body panels in the new BAC Mono R, which made its debut at Goodwood Festival of Speed.

Briggs Automotive Company (BAC), working alongside both Haydale and Pentaxia, built the light-weight BAC Mono R body using Haydale’s graphene-enhanced carbon composite materials.

The component parts have been formed using Haydale’s graphene-enhanced tooling materials. The outcome of the process for manufacturing the body parts is a full visual carbon material which can be lacquered or painted as required. Graphene-enhanced tooling materials offers the potential for significant improvements in the coefficient of thermal expansion (CTE), a key issue with the use of metal tooling, the need for superior quality and higher dimensional stability, and the potential to increase the life of the tools.

In the development of this project, Haydale has improved the supply chain whilst enabling BAC to increase performance of the material. Whilst this outcome has focused on the automotive sector, the knowledge and improvements made provide a wider opportunity for tooling materials across several markets, particularly where there are throughput constraints.”

Active Energy Group (AEG.L) 0.41p £4.81m

Active Energy, the London quoted international biomass based renewable energy business, announced that it has appointed the experienced US based engineering and consulting firm, Absolute Welding & Consulting (‘AWC’) to install the commercial scale reactors, recently transported from Utah, at its industrial site in Lumberton, Robeson County, North Carolina.

AWC appointed to manage and execute the installation of the commercial scale reactors at Lumberton, with work set to commence imminently;

AWC is a US based full service, mechanical engineering company specialising in new plant construction, plant relocation, plant upgrades and retro-fitS;

Work anticipated to be completed in the upcoming months with the five-tonne per hour CoalSwitch™ plant to be operational in Q4 2019;

Test reactors have been in operation at Lumberton undertaking a test programme for prospective clients, as per the announcement dated 4 June 2019, and will continue to operate simultaneously with the commercial scale reactors following installation;

Lumberton to be AEG’s first permanent production facility for CoalSwitch™, a proprietary technology that transforms low-cost biomass material into high-value green fuels

Head Chef:

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

*A corporate client of Hybridan LLP

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