Small Cap Feast
Small Cap Feast – 12 December 2018
Set Menu AIM:
Total number of AIM Companies (Incl Susp): 921
Total number of AIM Companies trading: 851*
* As at 06 December 2018
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 06 December 2018
Set Menu Standard List:
Total number of Standard List Companies (Incl Susp): 139*
Total number of Standard List Companies trading: 130*
* As at 06 December 2018
Dish of the Day:
No Joiners Today
No Joiners Today
Off the Menu:
No Leavers Today
No Leavers Today
Dish of the Day:
No Joiners Today.
No Joiners Today.
Off the Menu:
No Leavers Today.
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 end Nov.
PetroTal Corp is an oil and gas company whose shares are currently admitted to trading on the TSXV. The Company is focused on development of oil and gas assets in Peru and it currently has controlling interests in three onshore Peru license blocks. No new funds being raised. Due 21 Dec. Mkt cap c.£80m
Litigation Capital Management—provider of litigation financing and ancillary services, moving from ASX (ASX:LCA) to AIM. Offer TBC. Due 18 Dec. Mkt Cap A$64m.
Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is due to start trading on AIM 14 December. Raising £2m at 290p. Mkt cap at issue price £13.6m.
Manolete Partners—leading UK insolvency litigation financing business looking to join AIM raising £16.3m as a placing and £13.1 realised by the selling shareholder at 175p. Market cap £76.3m, expected 14 December
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 mid December.
Bigblu Broadband (BBB.L) 95.5p £54.15m
FYNov18 update from the provider of alternative fast broadband services.
Total revenue increased c. 25% to c. £55m (FY 17: £44m)
Recurring revenue increased c.27% to c.£51m, representing 94% of total revenue
Like-for-like organic revenue growth on a constant currency basis of 7%
Continued growth of customer numbers to c. 113K (FY17: 100K)
Underlying EBITDA increased c.45% to £6.8m (FY17: £4.7m)
Net debt at c.£14m as at 30 Nov 2018 (FY17: £13.1m)
The Company enters 2019 rebranded as Bigblu Broadband, with a target of double-digit organic revenue growth for this financial year and beyond whilst maintaining its technology leadership in the sector.
FY18E rev of £55m and £6m PBT loss.
Barkby Group (NEX:BARK) 4.125p £1.6m
“The Barkby Group PLC, the consumer-focused hospitality group, announced that it has signed heads of terms for the acquisition of Centurian Automotive Limited.
Centurian Automotive is an award winning automotive dealership with a strong and fast growing online digital presence. Centurian prides itself on its best-in-class customer experience and was recently chosen by Autotrader from 13,000 motor dealers in the UK to represent the benchmark for all dealership training, marketing and master classes.
“Barkby is led by a highly experienced team with a successful track record of delivering value for shareholders. The Board believes that the acquisition of Centurian into our consumer-led hospitality portfolio will be highly complementary and accretive, and we look forward to completing the transaction.”
Huntsworth (HNT.L) 107p £339.07m
Update from the international healthcare and communications group. The Group continues to trade well and expects to reach at least market consensus headline profit estimates for the year to 31 Dec 2018. [Headline PBT of £29.4m]
Trading has been led by continuing strong growth in the Medical and Immersive divisions, with both showing double digit annual revenue growth. The Marketing division, led by Evoke, returned to like-for-like revenue growth in the second half, posting 2% growth, although as expected annualised revenue performance will decline around -3% on a like-for-like basis. Giant and Navience, which the Group acquired in the past five months, have both been integrated well and are trading in line with the Board’s expectations and are increasingly engaged in joint new business with the broader Evoke group. The Communications division continues to trade in line with the Board’s expectations with annual revenue decline stabilised at 5%, and second half margin improved over the first half.
Coinsilium (NEX:COIN) 3.35p £3.9m
“Coinsilium Group Limited, the blockchain venture builder and investor that finances and manages the development of early-stage blockchain technology companies, announced that it has raised £367,125 before expenses to fund the further growth and development of the Company.”
Financing undertaken at a 23.1% premium to the market close price on 11 Dec 2018, with a new strategic investor and a number of existing Shareholders.
Funds raised will be applied to strategic advancement of the Company, including a number of high impact initiatives under development.
NWF Group (NWF.L) 168.5p £82.12m
HY Nov 18 update from, the specialist distributor of fuel, food and feed across the UK.
The Group expects that overall trading for the half year will be ahead of prior year and the Board remains confident of delivering its full year expectations. Net debt was also lower than at 30 Nov 2017.
“In line with our strategy we are also pleased to announce the acquisition of Midland Fuel Oil Supplies Limited, a small 12 million litre fuel distributor based in Solihull, on 1 Dec 2018. The acquisition consolidates our market position to the South and East of Birmingham.”
FYMay19E rev £656.4m and PBT of £8.74m.
Strix (KETL.L) 136.3p £254.6m
The specialist in the “design, manufacture and supply of kettle safety controls and other complementary water temperature management components, provided an update on its intellectual property protection initiatives.”
“Acting on information provided by Strix, local IP enforcement authorities were able to raid a factory in Guangdong province belonging to Foshan Shunde Xiaolong Electrical Appliance Co. and seize electronic kettles that infringed Strix’s IP and which were to be exported to South Korea.”
“Strix brought a claim based on unfair competition against Expo Börse GmbH and Schou Germany GmbH who had imported kettles into Germany”.
“The Company recently brought a complaint of electronic kettle patent infringement to the attention of Amazon who swiftly removed the webpage from their platforms”.
Avacta (AVCT.L) 29p £33.48m
The developer of Affimer® biotherapeutics and reagents, is pleased to announce that Dr Jose Saro has been appointed as Chief Medical Officer to lead the Group’s therapeutic development strategy and drive the in-house programmes into the clinic. Dr Saro brings over 20 years’ experience in the pre-clinical, translational and early clinical development of oncology assets, spanning small molecules, biologics and drug conjugates. Dr Saro joins Avacta from Roche where he held the role of Senior Translational Medicine Leader at the Roche Innovation Center Zurich in which he focused on immuno-oncology and the development of combination products.
Prior to his position at Roche, Dr Saro was Executive Director Oncology Global Development and Medical Affairs at Bristol Myers Squibb, based in Paris, where he led and contributed to many oncology clinical development programmes, including Sprycel, Ipilimumab, Nivolumab, anti-PDL1, anti KIR, anti LAG3, Brivanib, MEK inhibitor and Elotuzumab.
DP Poland (DPP.L) 23.5p £35.9m
Year to date trading update. From the operator and sub franchiser of Domino’s Pizza stores in Poland.
System Sales have grown substantially year-to-date, but as seen in the July and August sales numbers, announced within the interim results, we have seen softening like-for-like sales growth continue into the fourth quarter. A combination of warm and dry weather continuing into November and sustained advertising spend by competing delivery aggregators, in particular, impacted share of voice and sales performance. In addition to these external factors our investment in top-line sales support in Q4 2017 was not replicated in Q4 2018, as we focused more on balancing sales growth with enhanced store profitability.
Despite the sales pressure, Company EBITDA for 2018 is expected to be broadly in line with expectations, but we approach the year ahead with caution and believe that sales and EBITDA performance for 2019 will continue to be impacted by competition for share of voice.
Augean (AUG.L) 64p £66m
Augean, one of the UK’s leading specialist waste management businesses, announced on November 21st that it was undertaking a review of its’ East Kent High Temperature Incinerator. The review is now complete and the Group has decided that the Facility will be mothballed early in the New Year. The Group will now seek to sell or lease the site with the benefit of the existing permit to interested parties.
The Group has invested almost £1m per annum on the Facility which has consistently under-performed the returns required by the Group. While performance has been improving, in particular during the last quarter, it is forecast to lose £0.5m in 2018. The site, the 2018 loss and the costs of closure, estimated to be £0.6m, will therefore be treated as a discontinued activity for the 2018 Preliminary Results.
FYDec18E rev £76m and PBT £10.8n, PE c.7x.
Ariana Resources (AAU.L) 1.52p £15.9m
The exploration and development company with gold mining operations in Turkey, announces an update on resource development activities at its wholly-owned Kizilcukur Gold Project .
1,000m diamond drilling programme due to commence imminently at Kizilcukur.
Drilling to be focused on the planned Zeki Pit area, with the aim of improving the classification of JORC resources to the Measured and Indicated categories.
Kizilcukur vein system demonstrates potential to extend across an area of 2.3km x 0.3km, much of which remains undrilled.
Optimal trucking route to the Kiziltepe plant has been determined and these transport costs will be reflected in an internal feasibility study.
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 firstname.lastname@example.org with “unsubscribe me”.