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.


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

*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 with “unsubscribe me”.