Small Cap Feast

Small Cap Feast – 11 June 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 894

Total number of AIM Companies trading: 819*
* As at 10 June 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 10 June 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 163*

Total number of Standard List Companies trading: 141*
* As at 10 June 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 (Premium)

Trainline—Seeking £75m raise. Proceeds to target a net debt at IPO of c.2x LTM Adjusted EBITDA). In FY 2019, Trainline achieved net ticket sales of £3.2bn, and revenue of £210m.  Due June

Airtel Africa Limited — provider of telecommunications and mobile money services, with a presence in 14 countries in Africa, primarily in East Africa and Central and West Africa, looking to join the premium segment of the main market. Offer TBC, expected TBC

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.

Main Market (Standard)

IMC Exploration Group (NEX: IMCP), focused on acquiring and exploring prospecting licence areas which have high potential for natural resource, is looking to admit its shares to the standard list and will withdraw for the NEX Exchange. Expected 11 June 2019


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.

Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019

Argentex a UK-based forex service provider founded in 2011 by its current management team which operates as a Riskless Principal for non-speculative and forward foreign exchange as structured financial derivatives is looking to join AIM. Offer TBC, expected 25 June

Breakfast Buffet

Amerisur Resources (AMER.L) 12.18p £144.1m

Amerisur Resources, the oil and gas producer and explorer focused on South America, provided an update on operations in Colombia.

The ANH has granted approval of the farm-out agreement with Occidental announced 23 Nov 2018. The deal relates to four exploration blocks: Putumayo-9, Terecay, Tacacho and Mecaya in the Putumayo region, southern Colombia.

The Company recently completed the Platanillo-26 infill well targeting an undrained area of the Platanillo field. The well reached the target depth of 9,350ft and encountered 46ft net pay in the upper and lower U sands. The well is now onstream and producing around 710 BOPD.

Year-to-date production to the end of May 2019 averaged around 5,300 BOPD. Current group working interest production is now over 6,800 BOPD following the successful infill well at Platanillo and continued stable production from CPO-5. FY19 production guidance is maintained at 5,000 – 6,000 BOPD and does not include any contribution from exploration drilling.

Operations on the Sol-1 exploration well continue and results will be announced shortly. After drilling operations are completed at Sol-1 the rig will move to drill the Indico-2 appraisal well.

Concurrent Technologies (CNC.L) 76.5p £54.9m

Concurrent Technologies, a world leading specialist in the design and manufacture of high-end embedded computer boards for critical applications, announced a new processor board.

The TR E8x/msd board is based on the Intel® Xeon® E-2200 processor family announced by Intel® yesterday. The board boasts a rich assortment of features including on board graphics and provides straightforward connectivity to peripheral boards.

Security is critical on the majority of applications today and there are several security features included as standard. These can be supplemented by our Sanitization Utility and Guardian packages to maximise protection against external threats.

The combination of functionality and security make these boards particularly suitable for supervisory compute, display and storage tasks appealing to both existing and new customers across a very wide range of applications in the military, aerospace, transportation and industrial markets.

The boards will be available in variants suitable for commercial and harsh environments.

IG Design (IGR.L) 599p £472m

IG Design Group plc, one of the world’s leading designers, innovators and manufacturers of Gift Packaging,  Celebrations, Stationery and Creative Play products, Giftware and related product categories announces its results for the year ended 31 March 2019.

Revenue up 37% to £448.4m (2018: £327.5m), with 9.8% organic growth

Adjusted operating profit increased by 41% to £ 32.6m (2018: £23.2m)

Adjusted operating margin is up 0.2% points to 7.3% (2018: 7.1%)

Adjusted PBT up 39% to £30.3m (2017: £21.8m)

Adjusted EPS up 33% to 29.3p (2018: 22.1p)

Adjusted cash generated from operations £50.5m (2018: £22.6m) funding capital expenditure of £7.9m (2018: £9.4m)

Average leverage improved to 1.3 times (2018: 1.5 times) with year-end net cash balance up £12.7m to £17.1m (2018: £4.4m)

Final dividend per share increased by 50% to 6p (2018: 4p), delivering total dividend in respect of the year of 8.5p per share up 42% (2018: 6p). Dividend cover is 3.4 times.

Dods Group (DODS.L) 8.25p £28.19m

Dods announced the conditional acquisition of Merit group Limited for a total consideration of £22.4m on a debt free basis, payable in a mixture of cash and new ordinary shares in the Company. 

In order to part fund the cash element of the consideration payable on completion of the Acquisition, the Company is currently concluding an equity fundraising process. As part of the Fundraise, the Company expects to provide an open offer to enable existing shareholders the opportunity to participate in the Fundraise. In addition, the Company proposes to enter into a new debt facility, the primary purpose of which is to part fund the Acquisition.

The completion of the Acquisition is conditional on, inter-alia, the successful completion of the Fundraise and the approval by Shareholders at a general meeting of the Company, which shall be convened following the announcement of the completion of the Fundraise. The Board is confident in a successful outcome of the Fundraise and Lord Ashcroft, a 44% shareholder, is fully supportive of the Acquisition.

iomart (IOM.L) 350p £380.2m

iomart, the cloud computing company, reported its consolidated final results for the year ended 31 Mar 2019.

Revenue growth of 6% to £103.7m (2018: £97.8m), a milestone for the Company surpassing £100m

Adjusted EBITDA growth of 6% to £42.2m (2018: £39.9m)

Adjusted PBT growth of 6% to £25.5m (2018: £24.1m)

Adjusted diluted earnings EPS from operations increased by 4% to 18.6p (2018: 17.9p)

Cash flow conversion from operations >90%, being £39.1m (2018: £40.8m)

Adjusted PBT margin maintained at 25% (2018: 25%)

Proposed final dividend of 5.01p per share resulting in total dividend for year of 7.46p per share, an increase of 4% (2018: 7.18p per share), representing the 10th consecutive year of dividend growth

FIH group (FIH.L) 313p £39.13m

FIH, the international services group that owns essential services businesses in the Falkland Islands and the UK, announced its final results for the year ended 31 March 2019.

Profitable growth with satisfactory trading across each operating business

Group revenue at £42.5m (2018: £43.8m)

Pre-tax profits up 17.1% to £3.86m (2018: £3.3m)

Underlying pre-tax profits up 19.3% to £3.86m (2018: £3.24m)

Diluted EPS increased by 20.1% to 24.1p (2018: 20.1p)

Diluted EPS on underlying profits rose by 22.5% to 24.1p (2018: 19.7p)

Cash balances of £6.2 m (2018: £17m)

Bank borrowings of £12.8m (2018: £3.3m) following acquisition of Momart storage freehold

The Board is recommending a final dividend of 3.35p per share (2018: 3p) to give a full year dividend of 5p per share (2018: 4.5p per share), an increase of 11%.

WYG PLC (WYG.L) 54.25p £39.78m

WYG, the international professional services business, announced its unaudited preliminary results for the year ended 31 Mar 2019, highlights of which are as follows:

Revenue up 1.7% at £157m (2018: £154.4m); H2 revenue of £81.7m (H1: £75.3m)

Statutory operating loss of £3.8m (2018: £4.8m); loss before tax £4.6m (2018: £5.3m)

Adjusted operating profit £1.8m (2018: £3.5m)

Adjusted PBT £1.0 (2018: £2.9m)

Adjusted diluted earnings EPS 0.8p (2018: 4.4p)

Loss per share 6.7p (2018: 6.9p)

Net debt as at 31 Mar 2019 £9.3m (30 Sept 2018: £13.2m, 31 Mar 2018: £6.3m)

Order book up 0.2% to £166.7m as at 31 March 2019 (31 March 2018: £166.4m)

Avingtrans (AVG.L) 216p £67.4m

Avingtrans, which designs, manufactures and supplies original equipment, systems and associated aftermarket services to the energy and medical sectors, announced the acquisition of the trade and certain assets of Booth Industries Limited, a leading UK engineering company, for total consideration of £1.8m.

Booth, based in Bolton, has a total of 90 employees and focuses on the design and manufacture of blast doors and prefabricated fire and blast wall systems, fire doors (integrity and insulated) for both off and on-shore applications, radiation shielding doors, acoustic doors, security doors, multi-performance and large bespoke doors.

The total consideration of £1.8m is to be satisfied in cash, funded from the Company’s existing resources. In the year to 30 Sept 2018, Booth recorded revenues of approximately £11.7m and PBT of approximately £0.3m. Acquired net assets totalled approximately £2.5m as at the transaction date, excluding Booth’s existing cash and the company’s debtor book.

Ingenta (ING.L) 67p £11.25m

Ingenta, a leading provider of innovative content solutions, announced that it has secured two new deals for its Commercial software platform. These sales are for customers based in the US and UK and comprise the Ingenta Commercial Order to Cash, Contract Rights and Royalties, and Product Manager modules with scope for further services in due course. The combined first year implementation and licence deals are valued at £350K with total annual fees of approximately £50K.

“I’m pleased to announce these new customer wins and further encouraged by the progress being made building sales pipeline in the mid-tier market. The business looks forward to making further announcements in due course”

Spectra Systems (SPSY.L) 135p £59.67m

Spectra Systems Corporation, a leader in machine-readable high speed banknote authentication, brand protection technologies, and gaming security software, announced that it has entered into a five year contract extension with an existing optical materials customer, one of the largest suppliers of security inks for the banknote industry.

The contract has a minimum value of $3.2m over 5 years commencing April 2020 and secures Spectra’s revenues for this component of optical materials used in banknotes.

Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.

The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.

The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).

Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.

This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.

Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.

Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.

MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.

Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.

If you would like to unsubscribe, please email with “unsubscribe me”.