Small Cap Feast

Small Cap Feast – 13 January 2020

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Dish of the Day:

No Joiners Today

 

Off the Menu:

Netalogue Tech has left the NEX Exchange following a takeover.

Koovs has left AIM following the appointment of Joint Administrators.

 

Dish of the Day:

Off the Menu:

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

Calisen Group. Potential Intention to Float. Owner and manager of essential energy infrastructure assets . Consolidated FY Dec 18 revenue £162.1m and operating profit £25.4m. Raising up to £300m in primary plus partial vendor sale.

The Global Sustainable Farmland Income Trust will invest in a diversified portfolio of operational farmland assets located in major agricultural markets including the United States, Europe, New Zealand, Australia and certain countries within Latin and South America. Raising up to $300m.   Due 28 February

Main Market (Specialist Funds)

Investment firm Nippon Active Value fund is seeking to raise up to £200m at an issue price of 100p per share via an IPO.   The company aims to invest in a portfolio of quoted Japanese stocks with market capitalisations of up to $1bn.   First day of dealings expected early February.

 

Breakfast Buffet

Verona Pharma (VRP.L) 77.5 £81.6m

 The biopharmaceutical company focused on respiratory diseases, announces positive top-line data from a 4 week, 416 patient, Phase 2b dose-ranging study evaluating nebulized ensifentrine (0.375 mg, 0.75 mg, 1.5 mg and 3.0 mg) or placebo as an add-on treatment to tiotropium (Spiriva® Respimat®), a long acting anti-muscarinic (“LAMA”) bronchodilator, in patients with moderate to severe chronic obstructive pulmonary disease (“COPD”).

The study met its primary endpoint of improved lung function, with ensifentrine added on to inhaled tiotropium, a LAMA commonly used to treat COPD. Ensifentrine produced a clinically and statistically significant, and dose-dependent improvement in peak forced expiratory volume in one second (“FEV1”)1 at week 4 compared to placebo added on to tiotropium.

Ensifentrine was well tolerated at all doses with an adverse event profile similar to placebo.

These data support dose selection for Phase 3.

 

Tern (TERN.L) 10p £27m

The investment company specialising in the Internet of Things  announced that its portfolio company,  InVMA Limited , has secured an initial order commitment worth £817,000 over a two-year period to provide its AssetMinder(R) solution to a global, multi-billion Euro revenue supplier to the industrial and construction sectors .

This represents the start of a global partnership between the Supplier and InVMA, which will see AssetMinder(R) deployed into the Industrial Internet of Things (“IIoT”) sector. InVMA will enable the Supplier to deliver a condition-monitoring offering for the smart manufacturing and process industries, IIoT sensor, and other asset management that incorporates predictive analytics to  maximise uptime and productivity.

 

Harvest Minerals (HMI.L) 3.55p £6.6m

“ The remineraliser producer, is pleased to announce that it has been granted trademark approval for the name “Kamafugito” by the Instituto Nacional da Propriedade Industrial in Brazil. Kamafugito or Kamafugite is the source material used to produce the company’s registered and approved organic multi-nutrient direct application remineraliser, KPFértil. The trademark has been officially registered for an initial ten years, and can be renewed in further 10 year increments. “

 

Quartix (QTX.L) 380p £182m

Fy Dec 19 update from the supplier of subscription-based vehicle tracking systems, software and services. The Board is pleased to report that it expects revenue, profit and free cash flow to be slightly ahead of current market forecasts.

Management’s current estimates for revenue and free cash flow are £25.6m and £5.9m respectively. Management’s current estimate for adjusted EBITDA is £7.0m; following a previously referenced review of the Group’s commission structures, this figure includes an expected uplift of £0.3m in respect of an accounting policy change under IFRS15 Revenue from Contracts with Customers.

The Company made excellent progress in its core fleet business in the UK, France and the USA, and entered a range of new territories with encouraging results. Revenues in the fleet business are expected to have grown by around 10%, accounting for approximately 80% of Company revenues.

 

IndigoVision (IND.L) 187p £13.7m

“The Board of IndigoVision is pleased to report that sales for the financial year ended 31 December 2019 were $50.1m, representing a 9% increase over 2018.  Gross margins were maintained in line with prior year and with strong cost control, the Company expects to report operating profit and EBITDA in line with market expectations.

Following the drawdown of $2.7m of the new bank facility to fund the cash consideration for the acquisition of AgoraSys SA, completed in November 2019, net cash in hand at 31 December 2019 was $2.0m.

The Company’s preliminary results for the year ended 31 December 2019 will be published on 5 March 2019.”

 

Diaceutics (DXRX.L) 187p £82m

The provider of data analytics and implementation services to the global pharmaceutical industry, announces a trading update for the year ended 31 December 2019.  As a result of a strong trading performance in the final quarter, underpinned by an increase in the number of clients and an accelerated growth in product sales, the Group’s revenue and adjusted EBITDA for the year to 31 December 2019 are expected to be approximately £13.4 million (2018: £10.4 million) and to be above £2.1 million (2018: £1.5 million) respectively, ahead of market expectations.

The Group has benefitted from its investment in a strong analytical and innovative team, the expansion and development of its data lake and international expansion resulting in a robust global service.  This coupled with operational efficiencies within the business has resulted in improved margins.

 

Ergomed (ERGO.L) 405p £191.5m

 Acquisition of Ashfield Pharmacovigilance Inc., a US pharmacovigilance services provider, from UDG Healthcare for $10 million.

Combined business expands PrimeVigilance’s geographic coverage in the strategically important US market and strengthens global service offering

  • Acquisition adds over 40 new clients to PrimeVigilance and a strong order book of contracted future revenues of $9.8 million
  • Ashfield Pharmacovigilance Inc. reported $11.6 million revenue and $0.9 million adjusted EBITDA in the year to 30 September 2019 and is expected to be immediately accretive to earnings

 

Faron Pharma (FARN.L) 280p £121m

 The clinical stage biopharmaceutical company, today announces approval from the MATINS trial’s data monitoring committee (“DMC”) to initiate the study’s first expansion cohort, Part II, in patients suffering from late-stage colorectal cancer (CRC), following a successful conclusion of the dose escalation in Part I.

The phase I/II MATINS clinical trial is investigating the tolerability, safety and efficacy of Clevegen, Faron’s wholly-owned novel precision cancer immunotherapy targeting Clever-1 positive tumour associated macrophages (TAM), in selected metastatic or inoperable solid tumours.

Commencement of other distinct cancer cohorts will follow the CRC cohort.

 

Augean (AUG.L) 215p £224m

 “Augean, one of the UK’s leading specialist waste management businesses, announces that trading has continued to be strong through the final quarter and it expects, subject to audit, to report adjusted PBT for the year ended 31 December 2019 at least in line with recently upgraded consensus market expectations of £18.4m.

 

Avingtrans (AVG.L) 329.5p £105.2m

 Subsidiary, Hayward Tyler, has been awarded a £2 million contract to supply a glandless pump package to major Chinese EPC, Shanghai Electric (Group) Corporation, for installation at Bin Rashid Al Maktoum Solar Park Phase IV, a 950MW Concentrating Solar Power (CSP) and Photovoltaic (PV) Hybrid IPP. The project will make use of three different technologies to generate clean energy, consisting of 600MW from a parabolic basin complex, 100MW from a solar tower, and 250MW from PV panels.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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