Small Cap Feast

Small Cap Feast – 14 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


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

Safe Harbour Holdings (SHH.L) 132.5p £36.11m

Appointment of James Brotherton as CFO and an Executive Director of the Company effective on 1 Aug 2019.

James joins Safe Harbour from Tyman plc, where he has been CFO since 2010. Tyman is a leading international supplier of engineered components to the door and window industry, and has more than doubled in size and profitability during James’ tenure as CFO.

While in his executive role with Tyman plc, James delivered and successfully integrated numerous acquisitions across multiple jurisdictions that have created significant value for Tyman shareholders as part of Tyman’s international growth strategy.

Safe Harbour is a company established with the objective of creating a global leader in B2B distribution and/or business services

MC Mining (MCM.L) 45.5p £64.1m

Commencing  development of its flagship Makhado hard coking and thermal coal project .

Construction to commence in Q3 CY2019 if all conditions satisfied

nine-month construction period

commence mining at west pit producing ~3m tonnes per annum (“Mtpa”) of run-of-mine (“ROM”) coal

ROM coal partially beneficiated prior to despatch to the modified Vele Colliery for processing

~1.1Mtpa of saleable coal produced (at steady state):

~0.54Mtpa of hard coking coal (“HCC”)

~0.57Mtpa of 5,500kcal thermal coal

internal rate of return  in excess of 45%

peak funding payback of less than 2.5 years


Sirius Real Estate (SRE.L) 63.4p £648m

The operator of branded business parks providing conventional space and flexible workspace in Germany, has completed the acquisition of a business park in Bochum in the Ruhr region of Germany, for a total consideration of 25.7m, equating to an EPRA net initial yield of 8.9%. The vendor is a fund managed by DOBA-Grund Beteiligungs, Munich, part of Doblinger Group, a German based development company.

“This acquisition is our first foothold in the important Ruhr area which is one the major industrial regions of Germany. With relatively low site density, a flexible multi-tenant structure, the opportunity to replace the exiting major tenant and stabilise the rent roll  in an area where take up is robust and rents are growing, this site is an exciting value-add opportunity for Sirius.


Avesoro Resources (ASO.L) 153.5p £125.22m

FY Dec 18 results.

2018 gold production of 220,458 ounces,

Consolidated operating cash costs of $774 per ounce sold and all-in sustaining costs (“AISC”) of $1,043 per ounce sold1;

Company revenues of $282.8m, an increase of 189% year on year (driven by gold sales of 220,998 ounces, a 186% increase YoY at an average realised gold price of $1,275 per ounce, a 1% increase YoY;

Company EBITDA of $77.5m, an increase of 348% YoY and EBITDA margin of 27%;

Total capex of $44.7m, including $6.5m exploration expenditure and $23.2m on additional heavy mining equipment and $15m on capitalised waste stripping; and

Gross Debt of $127m, a reduction of 5% YoY.


Inspiration Healthcare Group (IHC.L) 63.5p £19.47m

“The global medical device company, announced that it has agreed financial terms to start the shipment of almost 500 AlphaCore5 Patient Warming Systems to Poland’s largest non-governmental, and non profit charity, The Great Orchestra of Christmas Charity (GOCC), via our local distributor.

The AlphaCore5 Patient Warming System is designed for use in operating theatres, delivery suites, and neonatal intensive care units. The order will be shipped during the next two months to over 200 hospitals for treating newborn babies throughout Poland where the Group has had a long term distributor relationship. This is the largest single order ever  received for patient warming systems by the Group.”


PPHE Hotel (PPH.L) 1750p £741m

JV agreement with Largo 542 West 29th Street Partners LLC, an affiliate of Largo,  New York based real estate development and investment firm, to acquire properties located at 538, 540 and 542 West 29th Street, New York. The aggregated consideration for the acquisition of the Property was $42m plus associated acquisition costs.

The JV intends to develop a mixed-use scheme consisting of a 98-room art’otel® branded hotel with extensive public areas and 55 residential condominium units (the “Project”). PPHE and Largo each hold a 50% interest in the JV and, once the hotel is operational, PPHE will manage it under a management contract.


Impellam Group (IPEL.L) 468p £230.5m

FYJan 19 Prelims from the managed services and specialist staffing brand. Revs up 4.9% driven by managed services.  Ongoing strategic IT investments, the increased cost of doing business compliantly and the downturns in the markets resulted in adjusted EBITDA of £50.2m (2017: £59.5m).

Net debt down 5.5% to £71.7m. “Looking forward, we anticipate continued market and technological disruption and downward pricing pressure, as well as ongoing uncertainty from Brexit. Notwithstanding this, we anticipate an increasing return from our strategic investments in 2019”.


Global Invacom (GINV.L) 5.2p £13.5m

The global provider of satellite communications equipment, announced a partnership with Edgewater Wireless Systems Inc (YFI: TSX.V) (OTCQB: KPIFF), for the further development of Broadcast WiFi (“Bx-WiFi”), a technology that enables live, high quality and large-scale event video streaming over a Wi-Fi network.

Edgewater is an industry leader in innovative WiFi Multi-Channel Single Radio technology for residential and commercial markets. The Partnership will leverage Edgewater’s expertise to further develop the existing Bx-WiFi technology and will provide access to Edgewater’s professional grade WiFi technology, engineered to support high-client density applications. Access to Edgewater’s MCSR™ platform will enable large scale testing over a high-quality network designed to withstand increasing use of WiFi and mobile devices within stadiums and arenas.


Oakley Capital Investments (OCI.L) 188p £385m

OCI which provides its shareholders with access to a portfolio of high quality companies through its investments in the Oakley Funds2, announced its annual results for the year ended 31 Dec 2018

NAV per share of £2.81, a total return of 16%

Total NAV of £574.8m, a 5-year CAGR of 18%

Final dividend of 2.25p per share, payable in April 2019 (full year dividend of 4.5p)

£130.8m of capital was deployed and £165.8m cash was returned to the Company


Netscientific (NSCI.L) 14.9p £11.12m

NSCI notes its recent share price movement and confirms that it is not aware of any reason for such movement.

Furthermore, the Company notes, that despite the increase in share price over recent days, the current share price still represents a substantial discount to the share price prior to announcing the update to the Strategic Review on 20 Dec 2018.

NetScientific identifies, commercialises, source, develop and manage Diagnostics, Digital Health, Biomedical, Therapeutics and Technologies Companies.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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