Small Cap Feast

Small Cap Feast – 14 February 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 914

Total number of AIM Companies trading: 844*
* As at 05 February 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 05 February 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 145*

Total number of Standard List Companies trading: 128*
* As at 05 February 2019

Dish of the Day:

No Joiners Today

Off the Menu:

Faroe Petroleum has left AIM after being acquired by DNO ASA

C.H. Bailey has left AIM today

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

DWF, a global legal business,  expects to raise primary gross proceeds of approximately £75m. Due March

AIM

United Oil & Gas (UOG.L) an oil and gas exploration and development company brought to the Official List (Standard Segment) in July 2017 by way of a reverse takeover of Senterra Energy plc. No capital to be raised, expected market cap of £17m and expected 28 Feb

Techniplas –global  producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient.  FYDec17 rev $515m.

Polemos, to be renamed Digitalbox plc, has agreed to acquire Digitalbox Publishing Holdings Limited for c.£10m through a share for share exchange. The acquisition constitutes a RTO. Polemos has also agreed to acquire the entire issued share capital of Mashed Productions Limited, a digital media business which owns the online satirical news website “The Daily Mash”, for a maximum total consideration of up to £1.2 million. Market cap on admission £12.4m, expected 28 February

Breakfast Buffet

Cohort (CHRT.L) 370p £151.55m

Cohort, the independent technology group, announced that its wholly-owned subsidiary, MASS Consultants Ltd, has signed the contract for an eight-year contract valued at over £50m, following our announcement in Oct that they were selected as the preferred bidder.

Under the contract, MASS will provide in-service support for the UK MOD, including operational analysis studies, IT infrastructure management, modelling and simulation and software engineering. This is a continuation of work undertaken by MASS since 2000. The contract is expected to run from April 2019 until March 2027 with a break point in March 2023. It also includes four optional one-year extension periods that, if exercised, could extend the contract until 2031.

 

Sabien Technology (SNT.L) 0.1p £0.83m

Sabien Technology Group, the manufacturer of the patented M2G energy saving devices, announced its unaudited interim results for the six-month period ended 31 Dec 2018 :

Sales revenue £342k (2017: £462k)

Sales orders received £132k (2017: £225k)

Gross profit £291k (2017: £363k)

Gross profit margin 85% (2017: 79%)

Loss before tax £207k (2017: £233k loss)

Net cash at the end of the period £263k (£133k as at 31 Dec 2017)

Sales pipeline of £10.6m at 31 Jan 2019

Overseas sales £39k (2017: £171k)

 

Filta Group (FLTA.L) 231p £66.82m

Filta Group, a provider of fryer management and other services to commercial kitchens, provided its trading update for the financial year ended 31 Dec 2018.

The Group expects to report revenue, from continuing operations, in excess of £14m, up c.£2.5m on the prior year (FY 17: £11.5m, which excludes the revenues from Filta Refrigeration). We expect to report improved gross margins at approximately 50% across the Group and that EBITDA and net profit will be in line with expectations.

We have enjoyed good growth in all of our continuing businesses and enter the new year with a strong pipeline of prospective franchisees, increasing repeat business levels in the company-owned activities and a significant presence in the Fats, Oils and Grease (“FOG”) market following the acquisition of Watbio in Dec 2017.

 

Begbies Traynor Group (BEG.L) 62.4p £69.34m

Begbies Traynor, the business recovery, financial advisory and property services consultancy, announced the acquisition of the entire issued share capital of KRE (North East) Limited, a Newcastle based insolvency practice.

Ian Kings founded the business in the North East under the KRE branding in 2015.  In the financial year ended 30 June 2018, the business reported annual revenue of £0.4m and pre-tax profits of £0.1m. It had gross assets of £0.3m as at 30 June 2018.

The five strong team, including Ian Kings, will join our existing Newcastle insolvency practice, further strengthening our market-leading practice in the North East region.

 

Ironveld (IRON.L) 2.5p £16.28m

Ironveld, the owner of a High Purity Iron, Vanadium and Titanium project located on the Northern Limb of the Bushveld Complex in Limpopo Province, South Africa provided the following update on the previously announced bulk sampling programme.

Further to the announcement on 18 Jan 2019, the Company can confirm that the potential off-taker has now concluded its metallurgical tests. The Company will hold discussions with the potential off-taker over the coming weeks with the aim of reaching agreement on the terms of an offtake agreement.

The Company also announces it remains in detailed discussions with two potential development partners for the Project, who are currently engaged in an extensive due diligence process that may lead to offers that would facilitate the commencement of smelting operations by the Company. The Company will provide further updates to the market in due course.

 

WANdisco (WAND.L) 600p £212.74m

WANdisco, the live data company, announced that it has received Advanced Technology Partner status with Amazon Web Services (‘AWS’) in the AWS Partner Network (‘APN’).

The Advanced Technology Partner designation is the highest tier for Technology Partners that provide software and internet solutions in the AWS Partner Network. WANdisco achieved its status through a rigorous qualification process, based on referenceable customers on the AWS Platform and strict technical guidelines.

WANdisco Fusion is the only solution that can enable organisations to seamlessly move large volumes of data with consistent and continuous availability whilst meeting regulatory requirements. WANdisco’s patented technology ensures our customers are able to leverage the impact of their IT investment to support exponential data growth without growing the IT budget.

 

Premier African Minerals (PREM.L) 0.1p £8.12m

Premier African Minerals reported that following the announcement dated 24 Dec 2018, the Company is now in discussions with the Ministry of Industry, Commerce and Enterprise Development about assisting with the funding of the recommissioning of the RHA Tungsten Mine (“RHA”) in which Premier currently has a 49% interest.  

As part of Premier’s recapitalisation proposal submitted to the Ministry of Industry on the 18 Jan 2018 including Premier’s proposal for the restructuring of the ownership of RHA, RHA’s management established that to get the mine into a state of sustainable and potentially profitable production they would require the following: electrification of mining operations, general working capital, further exploration drilling of the underground and open pit, plant upgrades, semi mechanisation of the underground workings, and development of a decline shaft and the equipping thereof to expose ore on the 810 and 760 levels respectively

The Barkby Group (NEX:BARK) 4.7p £1.8m

Further to its announcement on 12 Dec 2018, The Barkby Group PLC, the consumer-focused hospitality group, announced that it has completed the acquisition of the entire share capital of Centurian Automotive Limited. The initial consideration payable is approximately £0.2m, satisfied by the issue today of new ordinary shares in Barkby, and deferred consideration of up to approximately £0.25m over three years based on performance targets, also to be satisfied by the issue of new ordinary shares in Barkby.

The board of Barkby believes that the Acquisition is complementary to Barkby’s existing high-end consumer offering and will be immediately earnings enhancing. For the year ended 31 March 2018, Centurian Automotive Limited recorded a turnover of £5.6m, an EBITDA of £246,000 and a PBT of £123,000. As at 31 March 2018, the net assets of Centurian were £0.6m.

Centurian is an award-winning automotive dealership with a strong and fast growing online digital presence and prides itself on its best-in-class customer service. Centurian has been recognised by Autotrader as a benchmark for all dealership training, marketing and master classes in the UK.

 

SimiGon (SIM.L) 12.25p £6.23m

SimiGon, a global leader in providing simulation training solutions, announced that it has expanded its long term relationship with an existing European customer and has signed multiple new contracts totalling $0.85m in aggregate to provide licences, maintenance and support services for the Customer’s simulation training centres.

The Contracts further increase the use of SimiGon’s SIMbox product across the Customer’s organisation. The Company’s SIMbox-based training solutions will be used as the baseline for Simulation Based Trainers (“SBT”) in the Customer’s new Academic Training Centres being built for its new end users. SIMbox-based SBTs enable users to save time, money and enhance aircrew training with high fidelity 3D simulation, Virtual Instructor guided lessons, measuring individual and group training objectives, reporting and analytical tools and robust content development capabilities.

The Contracts comprise of three year delivery commitments, commencing immediately. The expected revenue from these Contracts has already been factored into management’s expectations for the year ended 31 Dec 2019. In addition, the Contracts are expected to contribute to improved revenue visibility for FY 2020 and 2021.

 

Augean (AUG.L) 75.5 £81.99m

Augean, one of the UK’s leading specialist waste management businesses, announced that it has renewed contracts, with terms of up to four years, with certain of its strategically important customers in Energy from Waste (“EfW”) and North Sea oil and industrial services. These generated over one third of the Group profit in the year ended Dec 2018.

In addition to contract renewals with existing customers, the Group has recently been awarded new contracts, with terms of up to three years, for ash from several EfW plants across the UK. The annual volume of ash from these new EfW plants is around half of the Group’s existing annual ash volumes. The additional volume from these contracts is expected to impact incrementally from late 2019 through 2020 as these EfW plants are commissioned, with the greater impact expected through 2020 onwards. These wins underpin current market expectations for 2019 and growth during 2020 and beyond.

Finally, the Group announced the signing of a three-year framework agreement with Land & Water Ltd, the market leading specialist for dredging of inland waterways, to preferentially treat and landfill (hazardous) materials arising from their dredging activities, which again underpins current market expectations.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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