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

AIM

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
derren.nathan@hybridan.com

*A corporate client of Hybridan LLP

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