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
No Joiners Today
Off the Menu:
Faroe Petroleum has left AIM after being acquired by DNO ASA C.H. Bailey has left AIM today
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
No Joiners Today
Off the Menu:
No Leavers Today
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
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
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.
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 email@example.com with “unsubscribe me”.