Small Cap Feast

Small Cap Feast – 13 March 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 905

Total number of AIM Companies trading: 835*
* As at 11 March 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 11 March 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 161*

Total number of Standard List Companies trading: 142*
* As at 11 March 2019

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

US Solar Fund, a newly-established investment company focused on investing in solar power assets mainly in the US, looking to raise $250m at $1. Expected 20 March

AIM

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.

Diaceutics, a data analytics and implementation services company which services the global pharmaceutical industry, is looking to join AIM late March, offer TBC.

Rumours & Speculation

Proactive Investors reports that London-based investment management firm M12 Global. intends to list  “on one of the main London stock exchanges later this year to fill over $3bn worth of demand for credit within the Mayfair 101 portfolio over the next five years.”

Breakfast Buffet

Franchise Brands (FRAN.L) 68p £52.7m

FYDec18 results from the  international multi-brand franchisor.

A strong performance, ahead of expectations, as we start to unlock Metro Rod’s potential “.

Revenue increased by 43% to £35.5m (2017: £24.9m).

Fee income increased by 41% to £17.9m (2017: £12.7m).

Adjusted EBITDA increased by 37% to £3.7m (2017: £2.7m).

Final dividend of 0.46p per share proposed (2017: 0.33p per share), giving a 34% increase in the total dividend for the year to 0.67p per share .

2019 has started encouragingly, with a good trading performance across the networks in the first two months of the year and order intake at Metro Rod ahead of 2018. The level of franchise enquiries at ChipsAway, Ovenclean and Barking Mad is also significantly ahead of last year. We therefore look forward to the year ahead with confidence.”

 

EVR Holdings (EVRH.L) 4.4p £57.6m

The creator of virtual reality music content  has entered into:

UMmusic licensing agreements with PI Ltd, a part of the Universal Music Publishing Group, one of the world’s largest music publishers.

Publishing agreement with SACEM, the Society of Authors, Composers, and Publishers of Music, who represents the rights of authors and composers in France, such as David Guetta and Mylene Farmer.

ASCAP, the American Society of Composers, Authors and Publishers, representing the public performances of their members’ musical copyright in the United States.

BMI, Broadcast Music Inc, collecting and distributing public performance license fees on behalf of their songwriter, composer and music publisher members across the United States, representing the rights of songwriters such as Lady Gaga and Childish Gambino.

 

Walcom Group (WALG.L) 0.37p £0.26m

Walcom announced it is in negotiations regarding the proposed disposal of its entire interest in its subsidiary Walcom Bio-Chem (Thailand) Company Limited, to the General Manager of, and 40%  shareholder in, Walcom Thailand. As announced previously, Walcom’s working capital position remains severely constrained.  The board of the Company now believes that without further action, the Company may not be able to meet its liabilities as they fall due by the middle of April 2019.  The directors of Walcom therefore believe that the Proposed Disposal is a necessary action to ease the Company’s immediate short-term working capital position.  If the Proposed Disposal is completed, it is expected that the net proceeds of the disposal will be received prior to the middle of April 2019. The Company continues to consider all other possible options to improve the Company’s working position.

 

Coral Products (CRU.L) 11.75p £9.7m

The specialist in the design, manufacture and supply of plastic products, announces that its new 360 degree plastic recycling plant will be officially opened at Haydock this morning by Councillor Lynn Clarke, cabinet member at St Helens Council with responsibility for its green, smart and sustainable portfolio.

With a capacity of a ton an hour it will process Polypropylene, HD and PVC plastic materials. The subsequent material will be used to manufacture new products through the company’s injection moulders and extrusion profile machinery.

There has been a high level of interest in the plant from local authorities.

“It is an exciting time at Coral. Recycling and the Environment is high on Coral’s agenda, and as such we are proud to introduce a bespoke recycling unit into our business.”

 

Everyman Media (EMAN.L) 181p £128.5m

FY Jan 19 results.

Revenue for the year up 27.7% to £51.9m (2017: £40.6m)

Adjusted EBITDA increased 38.2% to £9.2m (2017: £6.6m)

Admissions up 25% on last year to 2.8m (2017: 2.2m)

A further 5 new Everyman venues opened in the last 12 months, growing the estate to 26 sites and 84 screens as at 12 March 2019

Everyman has a further 14 committed venues, of which 7 are expected to open in 2019

By the end of 2018, Everyman had become the fifth largest cinema business in the UK

 

EKF Diagnostics (EKF.L) 32p £146m

FYDec18 results from the point of care diagnostics business.

Revenue up 2% to £42.5m (2017: £41.6m)

Gross profit broadly flat at £22.7m (2017: £22.9m)

Adjusted EBITDA up 15% to £10.7m (2017: £9.3m)

PBT £12.2m (2017: £4.3m), over 2.8 times higher

Cash generated from operations of £9.9m (2017: £10.1m)

“We are confident that we will continue to make progress in 2019. Trading in the first quarter to date has been satisfactory, in line with management expectations.”

 

Staffline Group (STAF.L) 1,000p £279m

Staffline, the Recruitment and Training group, announced that its PeoplePlus division has been successful in the latest round of Education and Skills Funding Agency’s European Social Fund competition, securing contracts worth a total of £35m over a 27-month period, commencing in April 2019. The contracts cover 10 Local Enterprise Partnership areas across England.

PeoplePlus currently delivers equivalent European Social Fund contracts worth £14m, so these wins represent an increase of 250% and make PeoplePlus the largest provider of Skills Support for the Unemployed with a market share of c.47%.

 

Charles Taylor (CTR.L) 197.25p £148.5m

FYDec18 results from the International loss adjuster.

Consolidated existing claims services related capabilities to create an integrated claims services business with global scale and material growth prospects

Built a sizeable, sustainable InsureTech business with rapid growth prospects

Revenue   £263.6m increased by 25%. Adjusted PBT £22.3m increased by 48%.

“Charles Taylor has had a good start to 2019.  We anticipate that our full year performance will be in-line with market expectations.”

 

Hardide (HDD.L) 48p £23.3m

“The provider of advanced surface coating technology, is pleased to announce that preliminary tests indicate that Hardide nanostructured chemical vapour deposition (CVD) coating can extend the life of steam turbine blades through significantly enhanced resistance to water droplet erosion (WDE) and solid particle erosion. 

The tests, carried out by the National Physical Laboratory and the University of Manchester, assessed the effectiveness of the Hardide coating as protection from WDE and cracking on FV520B last stage turbine blades.

After 90 hours of exposure to WDE (up to 1.2×108 water droplet impacts) Hardide-A coated 410 stainless steel samples showed almost no discernible damage in the central zone. The uncoated 410 stainless steel samples suffered major damage with a 200 microns deep scar across the sample face after a much shorter exposure of just 7 hours.”

 

Altus Strategies (ALS.L) 3.5p £6.2m

“The Africa focused exploration project generator, announces that it has granted ASX-listed Indiana Resources Ltd  a thirty day extension to the exclusivity period to now end on 6 May 2019, for completing due diligence on the Company’s Lakanfla and Tabakorole gold projects. Lakanfla is located 6km southeast of the Sadiola gold mine in western Mali and Tabakorole is located in southern Mali.

The Extension is further to the announcement by the Company of 7 Feb 2019 in respect of the signing of a non-binding Terms Sheet for a joint venture  with Indiana on the Projects, whereby subject to entering a definitive agreement  with Altus, Indiana will have the option to earn up to an 85% interest in Legend Mali (BVI) II Inc., a wholly owned subsidiary of the Company and which holds a 100% interest in the Projects.

Indiana may earn its interest in the Projects by funding their exploration and development and in return the Company will receive milestone based cash and equity in Indiana, retain a 2.5% Net Smelter Return royalty on the Projects”.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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