Small Cap Feast

Small Cap Feast – 14 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:

Crossword Cybersecurity PLC* (CCS.L)—the technology commercialisation company focusing exclusively on the cyber security sector has joined AIM today raising £2m at 290p. Mkt cap at issue price £13.6m.

Off the Menu:

Manolete Partners MANO.L (AIM)—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. FYMar18 rev £10.6m, NPAT £3.3m.

Dish of the Day:

No Joiners Today

Off the Menu:

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.

AIM

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.

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.

Breakfast Buffet

Jersey Electricity (JEL.L) 454p £53.19m

FYSep18 results. “The Group recorded its best ever financial performance for the third year in succession. Group revenue for the year 2017/18 was £105.9m, 4% higher than 2017 and profit before tax increased to £15.3m up from the £13.5m achieved last year. This was supported by strong underlying performance in the Energy business, which saw a new record peak demand of 178MW set and a 2% increase in unit sales volumes from 621m to 634m units. Our Powerhouse retail business also witnessed continued strong growth in a challenging sector, with profits up 11% to £0.8m on an increased turnover of £13.6m, up 5% on last year.

We have made excellent progress on all our major investment projects during the year. St Helier West Primary Substation is about to be commissioned. Our smart metering programme, Smart Switch, is entering its final phase, with 87% of our customers now converted and benefits already being realised.  We successfully launched an innovative “smart home” demonstration store, Smarter Living, embedded in the Powerhouse retail store which is receiving great interest from customers. In France, we completed an important £1m upgrade on our Normandie 2 circuit to increase both import capacity and security of supply.”

 

Altona Energy (ANR.L) 75p £1.05m

Update “ on discussions with another holder of South Australian coal assets who is interested in applying pyrolysis technology to their project.

Altona has an exclusive licence granted by Leinad Ltd (“Leinad”) to use its Pyrolysis technology in Australia and the People’s Republic of China.  Altona will be entitled to retain 95% of any revenues generated using this licence, the remaining 5% passing to Leinad (as announced on 28 August 2018).

Further discussions have taken place and the holder of the coal assets is very interested to progress this opportunity and has invited Nicholas Lyth, CEO of Altona, to Australia in early January.  The purpose of these discussions is to identify the most advantageous way to utilise the pyrolysis technology with their coal asset to generate electricity for South Australia and to produce a framework of how a Joint Venture would work between the two companies.

Altona will also develop a plan for the potential sale of part of its coal assets in combination with the same pyrolysis technology.”

 

ReNeuron Group (RENE.L) 52.2p £16.46m

HYSep18 results. Reduced loss for the period of £5.32million (2017: loss of £9.57 million); reduced cash consumed by operations of £7.54 million (2017: £9.22 million); cash, cash equivalents and bank deposits at 30 September 2018 of £30.67 million (31 March 2018: £37.41 million.

CTX stem cell therapy candidate for stroke disability:  –     Patient screening and enrolment commenced in Phase IIb clinical trial in the US-    Top line data from Phase IIb study expected in early 2020

hRPC stem cell therapy candidate for retinal diseases: –     Top line data from Phase I/II study expected in mid-2019

  • Exosome platform:

–     Programme to be re-focused on use of ExoPr0 as a drug delivery vehicle, providing greater scope for potential near-term partnering deals

  • Increased business development activity in the period reflecting third party interest in the Company’s core therapeutic programmes

 

Ormonde Mining (ORN.L) 5.08p £21.74m

Update on the construction and commissioning of the Barruecopardo Tungsten Project in Salamanca, Spain (“Barruecopardo” or “the Project”), where the Company holds a 30% interest.

The development schedule has progressed in line with previous guidance of first production of tungsten concentrates from the beginning of February 2019.

  • Crush and Screen Plant commissioning nearing completion;

    Process Plant:

o  Installation of equipment and supporting structures almost complete;

o  Water treatment plant commissioning complete;

  • Open pit mining contract awarded and mobilisation of mining equipment underway;
  • Key operations staff recruited, and first tranche of plant operators recruited and in training;
  • Projected construction costs remain within the Project’s Construction Budget of 53.6 million;

 

Riverfort Global (RGO.L) 0.07p £5.09m

Since the announcement of the Company’s 2018 third quarter update on 15 November 2018, the Company has continued to be active in deploying its capital in RiverFort-arranged investments.  The Company has now invested over £3.1 million, compared to the figure as at 15 November 2018 of £2.7 million.  The Company’s recent activity includes making investments in certain AIM and ASX listed companies including further investments in a secured mezzanine loan for EQTEC PLC (an AIM-listed waste gasification company – market capitalisation £14 million) and in a secured convertible loan for Artemis Resources Limited (an ASX-listed mining company – market capitalisation AUS$81 million). Consequently, the percentage of the Company’s investment portfolio that comprises income generating RiverFort-arranged investments continues to increase and now represents a significant part of the Company’s net asset value.

Fletcher King (FLK.L) 45.5p £4.37m

HY Oct 18 results form the   provider of property services and advice throughout the United Kingdom.

Turnover   :    £1,465,000       (2017: £1,489,000)       

 PBT           :           £132,000     (2017: £148,000)

 Dividend   :           1.00p per share       (2017: 1.00p per share)

“Brexit and resulting political uncertainties will, we believe, continue to impact the property market and our ability to maintain turnover and profits. 

Asset Management is likely to be the least affected by these uncertainties and should continue to produce a steady income flow. 

We also have some good sales instructions in the Investment department. However until there is greater clarity over Brexit, many clients are delaying new investment decisions.”

 

Gfinity (GFIN.L) 27.4p £7.35m

The esports solutions provider, announces it will host four events as part of the EA SPORTS™ FIFA 19 Global Series. The tournaments consist of one FUT Champions Cup and three Licensed Qualifiers. The first event starts today, Friday 14th December 2018, and all will be held at the Gfinity Esports Arena in London.

Each of the events form part of the journey that players will take on the road to the FIFA eWorld Cup 2019. The FUT Champions Cup features 64 of the world’s best FIFA 19 players who have qualified through in-game online competitions. The Licensed Qualifiers maintain the same format but feature 32 players across PlayStation 4 and Xbox One.

More than 20 million players across 60 countries participated in the EA SPORTS FIFA 18 Global Series. For the 2019 season, new pathways are now available making it easier for players to qualify for the EA SPORTS FIFA 19 Global Series through the introduction of a new EA SPORTS FIFA 19 Global Series Points system.

 

Science Group (SAG.L) 197p £86.1m

Trading for the 11 months to 30 November 2018 remains in line with the Board’s expectations.

At 30 November, the Group’s cash balance was £19.3 million with net funds of £6.4 million. The debt of £13.0 million, expiring in 2026, is secured on the Group’s freehold property assets with the interest rate fixed by matching swap instruments.

Formal sale process  terminated citing Brexit uncertainty, weak sterling and volatile market.

The suspension of the Buy Back programme has  been lifted.

Science Group provides independent advisory and advanced product development services focused on science and technology initiatives.

 

Firestone Diamonds (FDI.L) 3.75p £18m

 Firestone Diamond plc is pleased to announce the recovery of a 46 carat white, makeable diamond from its Liqhobong Mine in Lesotho. The stone was recovered undamaged and will go on sale at the next tender which is scheduled to take place at the end of January 2019.

The company is also pleased to report a stabilisation in pricing for the smaller, lower value stones (-3 grainers) at the recent sale which was concluded on 7 December and which confirms the trend reported by other producers.

Further details will be included in the Q2 production update.

 

Wheelsure (NEX:WHLP) 0.5p £1.3m

The  industrial engineering company, is delighted to announce that further to its collaboration with Haydale Graphene Industries plc (“Haydale”) announced in November, the parties have agreed to commence a project in January to produce a “smart” graphene pressure sensor for the fastener market. Commercial terms on the project funding are being finalised.  The project plan will quickly establish an intelligent new product pairing Haydale’s functionalised graphene sensor technology with Wheelsure’s failsafe locking solution. The sensor concept will be specifically developed for the current locking system by engineers at The University of Manchester’s Graphene Engineering Innovation Centre (“GEIC”) and was showcased at the opening on 10th December.

Head Chef:

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

*A corporate client of Hybridan LLP

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