Small Cap Feast

Small Cap Feast – 11 October 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 875

Total number of AIM Companies trading: 791*
* As at 08 October

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 87*

Total number of NEX Growth Market Companies trading: 85*
* As at 08 October

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 165*

Total number of Standard List Companies trading: 143*
* As at 08 October

Dish of the Day:

No Joiners Today

Off the Menu:

Millennium & Copthorne Hotels (MLC)

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

Main Market premium

Registration document approved for Helios Towers. The Group provides essential network services, flexible infrastructure solutions and reliable power supply to mobile network operators  in five African growth economies.  Revenue increased 7 per cent. year-on-year to US$191m (H1 2018: US$178m), with Adjusted EBITDA up 15 per cent. year-on-year at US$99m (H1 2018: US$86m) for the six months ended 30 June 2019. Pricing rumoured at 115p to 145p implying valuation of up to $1.8bn. Expected Oct 2019.

Breakfast Buffet

Ideagen (IDEA) 149p £330m

Ideagen, a leading supplier of Information Management software to highly regulated industries, announced the acquisition of the entire issued share capital of Optima Diagnostics Ltd for a cash consideration of £1.8m  paid on completion from the Company’s existing resources.

Highlights

Optima is a Software as a Service company that has developed OSHENS, a SaaS based Health and Safety compliance solution

Optima has approximately 80 customers across highly regulated markets including Aerospace and Defence, Aviation and Energy – customers include Airbus, Sellafield, BAE Systems and Edinburgh Airport

This Acquisition supports the Group’s strategy as a consolidator within the Global Quality, Health, Safety and Environmental (“QHSE”) software market

On a current run rate Optima is generating approximately £1m in revenues (of which £0.9m is recurring) generating EBITDA of £0.1m

The Acquisition is expected to contribute £0.3m additional annual EBITDA to the Group.

Wilmcote Hldgs (WCH) 65p £20.3m

Wilmcote Holdings  announces that, further to its recent statements regarding a potential acquisition of Arclin Inc., the Company and Arclin have mutually agreed to conclude negotiations and, as such, discussions have ceased.

In line with the Company’s mandate to pursue acquisition opportunities, Wilmcote has incurred material third party expenses in connection with this opportunity. The Company estimates it will have approximately £0.9 million in residual cash reserves following the settlement of negotiated transaction-related expenses, including associated VAT refunds.

Wilmcote intends to hold discussions with shareholders regarding the potential further capitalisation of the Company to fund future operating expenses and due diligence to continue to pursue acquisition opportunities in the specialty chemicals sector. A further announcement will be made following the conclusion of these discussions.

Wilmcote’s ordinary shares will recommence trading with immediate effect.

Quiz (QUIZ) 16.68p £20.7m

QUIZ, the omni-channel fashion brand, announces a trading update for the six-month period to 30 September 2019 . Overall, the Group’s trading has been broadly in line with the Board’s expectations against the backdrop of a difficult UK retail environment.

Group revenue in the period decreased by 5% to £63.3m (H1 2019: £66.7m). Gross margin for the period is expected to be in line with the Board’s expectations at approximately 61%.

Online revenues grew by 7% to £20.0m (HI 2019: £18.7m), once adjusted for unprofitable revenue streams terminated during the year. Total online revenues in the previous period were £20.0m, consistent with the current year. The Group has continued to experience solid growth through its own QUIZ websites, with sales increasing by 12% year-on-year. This reflects continued investment in the Group’s online proposition and product range, as well as effective marketing

Tremor International (TRMR) 133.5p £162.5m

Tremor International Ltd, a global leader in video advertising technologies, announces that its RhythmOne media division has achieved a number of top rankings in the Q2 2019 Programmatic Seller Trust Indexes as issued by omni-channel fraud intelligence company Pixalate.

RhythmOne ranked first among its peers in each of Pixalate’s Global, Mobile and Video Trust Indexes. RhythmOne’s ability to successfully combat invalid traffic and fraud is driven by RhythmGuard, the Company’s proprietary brand safety technology. RhythmGuard’s unique detection algorithms, combined with data from recognised third-party verification partners, help to ensure uniform quality across supply and demand partners.

Symphony Environment* (SYM) 7p £12m

Symphony Environmental Technologies Plc, a global specialist in additive, masterbatch and concentrates technologies that enhance the properties of plastic and complementary non-plastic products by making them either biodegradable or resistant to bacteria, fungi, algae, moulds, insects, fouling and fire, is announced that the London Stock Exchange has awarded the Company its new Green Economy classification and mark.  Symphony has been included within the first cohort of companies to receive this award.  The official launch of the Green Economy Mark and other Green initiatives is today (Market Open 7.40-8am Market Open Summit: 08:30 – 13:30) at the inaugural ‘Sustainable Finance and Investment Summit’ and Market Open event. The event is being live streamed on the LSE website and the mark will also be shown on Symphony’s profile.

Clear Leisure (CLP) 0.26p £1.13m

The Company announced that its subsidiary, Clear Leisure 2017 Limited, has entered into a binding agreement with Sosushi Company Srl to buy the 1.03m legal action against former Sosushi directors, as originally announced in March 2019. Clear Leisure is a 99.3% shareholder of Sosushi.

The completion of this acquisition means that CL2017 is now the owner of all the material Italian legal claims representing the historical assets of the Company (Fallimento Mediapolis Srl, Sipiem SpA in liquidation and Sosushi). This structure will be more effective for ring-fencing the litigations in one single vehicle in the UK legal jurisdiction.

Codemasters Grp Hldg (CDM) 216p £298m

Codemasters, the video game developer and publisher specialising in high quality racing games, confirms today’s release of GRID.

The game features 104 career events across 12 race locations, the best drivers including Fernando Alonso and his esports team, FA Racing Logitech G and the return of the revered Ravenwest Motorsport.

GRID recently won ‘Best Racing Game’ at the gamescom Awards 2019 having previously picked-up ‘Best Racing Game’ at E3, the world’s premier event for computer and video games, from Game Informer and DualShockers.

Dart Group (DTG) 1,056p £1,392m

As reported at our Annual General Meeting on 5 September, in the Leisure Travel business they have continued to receive encouraging levels of later season bookings, with overall demand for both our Flight-Only offering and Package Holiday products continuing to strengthen.

They have also experienced increased levels of customer demand since Thomas Cook Group Plc entered into compulsory liquidation in late September 2019 and we continue to assess the impact this will have for our business in the coming months.

Given the strengthening booking trend, the Board now believes that current market expectations for Group profit before foreign exchange revaluations and taxation for the year ending 31 March 2020 will be exceeded. The Board will provide a further update on publication of its interim results on 21 November 2019.

Columbus Energy Res (CERP) 4.05p £33.32m

Columbus, the oil and gas producer and explorer with operations in Trinidad and Suriname, provides the following update about the Saffron well in the South West Peninsula, Trinidad.

The drilling rig to be used for drilling the Saffron well (Talon #38) is now on location and ready to commence drilling operations.  The drilling operations will commence in the next few days following official Ministry inspection and approval.

Blancco Tech Grp PLC (BLTG) 130p £94m

Blancco Technology Group, a leading global provider of mobile device diagnostics and secure data erasure solutions, announces that it is one of the first companies to be awarded the London Stock Exchange’s new Green Economy Mark accreditation.

Head Chef:

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

*A corporate client of Hybridan LLP

Disclaimer

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 enquiries@hybridan.com with “unsubscribe me”.