Small Cap Feast

Small Cap Feast – 14 January 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 919

Total number of AIM Companies trading: 844*
* As at 07 January 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 07 January 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 139*

Total number of Standard List Companies trading: 130*
* As at 07 January 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 (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 31 Jan 2019.

AIM

Circassia Pharma (CIR.L) – specialty pharmaceutical company focused on respiratory disease transferring from the Main Market. No funds being raised. Due 4 Feb.

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 late January 2019.

Breakfast Buffet

Seeing Machines (SEE.L) 4.6p £105.24m

The advanced computer vision technology Company that designs AI-powered operator monitoring systems to improve transport safety, notes that General Motors has been named the winner of the Autoblog 2019 Technology of the Year award for its Cadillac Super Cruise system.

The Cadillac Super Cruise system is the world’s first hands-free driving system for the highway and provides Level 2 automated driving. The Super Cruise system incorporates Seeing Machines’ FOVIO driver monitoring technology to enhance safety, through direct measurement and enforcement of driver attentiveness to the roadway.

Verona Pharma (VRP.L) 90p £94.79m

Encouraging top-line data from three-day phase 2 trial evaluating nebulised ensifentrine (RPL554) on top of dual bronchodilator therapy for COPD maintenance treatment. Primary endpoint of peak forced expiratory volume in one second (FEV1) after morning dose on day 3 of treatment was not met with statistical significance, although the ensifentrine 1.5 mg morning dose improved peak FEV1 by 46 mL, compared to placebo.- Improvement in FEV1, compared to placebo, with the 1.5 mg dose was maintained throughout the 24-hour period as measured on day 3.

“We believe that this short study continues to support our view that ensifentrine may also be of benefit to more severe COPD patients on dual and triple therapy, for whom there are few other treatment options.”

 

Andalas Energy (ADL.L) 0.93p £3.38m

Andalas Energy and Power PLC, reported that Arcandra Tahar, Deputy Minister of Energy and Mineral Resources issued a press release on Friday 11 January 2019, that the Bunga Mas PSC will be one of 6 licences that will be converted to gross split PSC’s by mid-February 2019. As announced on 29 August 2018, Andalas has a conditional agreement to acquire an initial 25% (rising to 49% and then 100%) interest in the Bunga Mas PSC.

The operator of the Bunga Mas PSC applied to convert the PSC to a gross split PSC as part of the process to extend the exploration period, one of the key conditions to completion of Andalas’s acquisition of an interest in the Bunga Mas PSC.  Andalas regards the conversion to a gross split PSC as an important and positive step in this process.

 

Restore (RST.L) 363.75p £450.8m

The “the UK office services provider reports that trading for the year ended 31 December 2018 was broadly in line with expectations and that the Group will deliver its ninth successive year of double-digit earnings growth.

Earnings growth continued to be driven primarily by Restore Records Management, which comprises the majority of the Group’s profit. TNT Business Solutions, acquired in May 2018, performed in line with expectations and is providing Restore Records Management and other parts of the Group with many additional growth opportunities, particularly in the public sector.

FYDec18E rev £202.2m and PBT £38.73m.

 

Highland Gold (HGM.L) 151.2p £550m

Results of an updated audit of Mineral Resources and Ore Reserves at the Mnogovershinnoye (MNV) mine, conducted by Micon International Co Limited in compliance with the JORC code (2012).  The new Ore Reserve estimate supports the extension of MNV’s life of mine to the year 2029 versus the previous forecast of 2022. Furthermore, a significant increase in Mineral Resources creates the potential to add substantially more reserves in the future.

Gold contained in Ore Reserves (Proven and Probable) as of January 1, 2018 increased to 771,569 oz from the estimate of 452,866 oz published last year. The reserve grade was lowered from 5.5 g/t to 2.7 g/t, reflecting lower cut-off grades and an increase in ore volume from 2.7m tonnes to 9.1m tonnes. The new reserve grade is in line with the average grade mined at MNV in recent years.

 

Tri-Star Resources (TSTR.L) 39.5p £37.2m

Update from Strategic & Precious Metals Processing LLC’s antimony-gold processing facility in Oman.  Critically, the process chemistry is now proven and crude antimony trioxide  has been produced and stockpiled in readiness for the commissioning of the furnace section of the plant. As a result of the delay in first metal and full commissioning of the plant, SPMP will need further funding for additional capex and working capital. As an interim measure SPMP has requested an additional US$10.5m from its shareholders and discussions are ongoing.

Tri-Star has signed a ‘Letter of Intent’ with a local Turkish entity as part of the sale process of the Göynük Project; we expect the sale to close in Q1 this year.

 

Osirium Technologies (OSI.L) 122.5p £16.6m

FYDec18 update from the  vendor of cloud-based cybersecurity software.

Trading has continued to improve year on year, as anticipated, and is in line with the Board’s expectations with booking levels expected to be significantly ahead of the prior period.  Revenue for the 12 months to 31 December 2018 is anticipated to be at least £0.95m with cash balances as at 31 December 2018 of £2.3m. “Our Proof of Concept (POC) programme continues to be a strong key performance indicator enabling us to better predict when our pipeline opportunities will close.  At the beginning of 2019, the Group has more POCs scheduled for the first quarter than occurred in the whole of 2018.  The POC rate of conversion to sale has likewise continued to increase.”

 

Be-Heard (BHRD.L) 1.22p £12.75m

FYDec18 update from the digital marketing services group.

Trading in the second half of the year, and therefore for the full year, was in line with the Board’s expectations. A good trading performance coupled with strong cost control in the last few months of the year have resulted in a marked improvement in adjusted EBITDA during the second half of the year (when compared to the first six months), consequently the overall result for the year will be in line with market expectations.

FYDec18E rev £29.07m, PBT £2.28m.

 

XP Power (XPP.L) 2,100p £404m

XP Power, one of the world’s leading developers and manufacturers of critical power control components for industrial, healthcare, semiconductor and technology markets, is today issuing a trading update for the fourth quarter and year ended 31 December 2018.  “The Company had a good finish to 2018, with trading for the full year being in line with the Board’s expectations. All regions and sectors recorded revenue growth in 2018.  Our industrial, healthcare and technology markets reported healthy demand across the year and in the fourth quarter but the impact of the widely reported weakness in the semiconductor manufacturing equipment sector meant that both total order intake and revenues in the fourth quarter were lower than that achieved in the third quarter.”

 

AFH Financial (AFH.L) 344p £146m

Completion of the acquisition of Hayburn Rock Group Limited and its subsidiary companies, based in Stourbridge, West Midlands. As a result of the acquisition Stephen Perks together with nine advisers will join AFH, bringing over £100m of FUM, and continue to support their existing client base.

The maximum purchase price is £3.5m dependent upon performance criteria of the business acquired. The initial consideration for the acquisition is £0.9m in cash. In FYDec17, the business reported revenues of £2.1m and profit before tax of £0.4m.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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