Small Cap Feast

Small Cap Feast – 14 October 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 875

Total number of AIM Companies trading: 794*
* As at 14 October 2019

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 87*

Total number of NEX Growth Market Companies trading: 85*
* As at 14 October 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 165*

Total number of Standard List Companies trading: 143*
* As at 14 October 2019

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What’s Cooking in the IPO Kitchen?

Main Market premium

Registration document approved for Helios Towers. The Group provides essential network services, flexible infrastructure solutions and reliable power supply to mobile network operators  in five African growth economies.  Revenue increased 7 per cent. year-on-year to US$191m (H1 2018: US$178m), with Adjusted EBITDA up 15 per cent. year-on-year at US$99m (H1 2018: US$86m) for the six months ended 30 June 2019. Pricing rumoured at 115p to 145p implying valuation of up to $1.8bn. Expected Oct 2019.

Breakfast Buffet

Urban Logistics REIT (SHED) 127p £110m

Urban Logistics, (AIM: SHED) the specialist UK logistics REIT, provides a trading update following the close of its interim reporting period to 30 September 2019. The Company will report its half year results on 14 November 2019.

Highlights

Portfolio valuation up 3.8% to £195.0 million on a like-for-like basis since 31 March 2019

Unaudited EPRA NAV up 5.2% to 145.2p per share since 31 March 2019

100% occupancy across 38 logistics properties

LTV (net debt) of 34.1% (31 March 2019: 33.7%)

Six logistics properties acquired from Connect Group plc for £9.9 million at a net initial yield of 7.0%. The portfolio is let to Tuffnells Parcels Express on 20-year leases with fixed rental uplifts

Two logistics properties let to DHL Parcel UK in Sittingbourne and Thatcham acquired for £5.3 million at a 5.9% blended net initial yield

SCISYS Group (SSY) 255p £74.82m

SCISYS Group, the supplier of bespoke software systems, IT-based solutions and support services to the space, media & broadcast, government, defence and commerce sectors, is pleased to announce that it has been selected by Shearwell Data Limited to provide IT services, project management, integration and maintenance of software in Defra’s innovative Livestock Information Programme (“LIP”). 

LIP will work through a new delivery body known as Livestock Information Ltd. Working in partnership, Livestock Information Ltd will develop world-leading standards of livestock traceability in the UK.  LIP aims to deliver a competitive trade advantage, make the English meat and livestock sector more resilient and responsive to animal disease and will drive innovation, interoperability and productivity improvements.

The anticipated contract value to SCISYS is £2.6m, with work starting in October 2019 continuing until 2022.  The contract provides an option to extend it to 2024.

System1 Group (SYS1) 192p £22m

System1, the marketing services group, issues the following update on trading for the six months to end-September 2019.  The Company will announce its interim results on 7 November 2019.

The first half of the current year (H1) saw Gross Profit (our main top-line performance indicator) growing modestly.  Gross Profit for the half-year is expected to be some 7% above the comparable 2018/19 period

Operating Cost growth was some 3%.

Normalised H1 Pre-tax profits, excluding AdRatings and share based payments, are expected to be some £2.4m, approximately 24% higher than in the comparable period.

A total of £1.2m, modestly below budget, was invested in further expanding our AdRatings asset during H1.  System1’s financial position remains strong.  Despite continued relatively high levels of investment and the payment of the 2018/19 final dividend during H1, the period-end cash balance was £4.1m, compared with a cash balance of £4.3m at the end of March 2019.  System1 has no debt.”

Cake Box Holdings (CBOX) 169p £68m

Cake Box Holdings , the specialist retailer of fresh cream cakes, today announces its half year trading update for the six months ended 30 September 2019.

The Group has grown strongly during the period, both through its existing estate and the addition of new stores and expects to report revenues for the period up c.6% to c.£8.8m compared to the same period last year (HY18: £8.3m). Within this, like-for-like sales in existing franchise stores grew by 6.9%. As a result, the Board is confident that the Group will meet current market expectations for the year.

Nine new franchise stores were added during the period, bringing the total number of stores to 122. Recent store openings included Dartford, Derby Central and Slough Central.  In addition, three new franchise stores are expected to open imminently and post the period end. The new store pipeline remains strong and the Group is on track to achieve its store opening target for the year.

Oxford Metrics PLC (OMG) 91p £113m

Oxford Metrics the international software company servicing government, life sciences, entertainment and engineering markets announced that Vicon, a world leader in motion measurement, has signed a contract with Imperial College London, a global top ten university, to upgrade to both its flagship Vantage solution and flexible Vero solution.

The Human Performance Group, part of the MSK Lab at Imperial, has been a customer for nearly 10 years, using the Vicon solution to research and analyse human performance. The Group’s research contributes to areas such as diagnosing early knee osteoarthritis and interventions to delay or prevent progression, joint hypermobility syndrome and developing evidence-based exercise programmes, maximising performance and reducing injury risk in elite athletes.

Proton Power Systems (PPS) 21.5p £139.4m

Proton Power Systems, the designer, developer and producer of fuel cells and fuel cell electric hybrid systems with a zero-carbon footprint, announces the successful inauguration of its new fuel cell stack assembly plant. The manufacturing machine was delivered to its Munich-based subsidiary Proton Motor Fuel Cell GmbH in early summer 2019. With the only stack robot in Bavaria, Germany, Proton will be able to increase production capacity up to at least 5,000 stack units per annum.  With further moderate investment, the robotic unit will be able to produce 30,000 stack units per annum. This milestone in the company`s more than 20-year-history is a response to the increasingly heavy demand from industry for hydrogen fuel cells, which is clearly reflected in Proton´s current cooperation agreements and strategic partnerships.

Remote Monitored Sys (RMS) 0.57p £2.47m

Remote Monitored Systems plc announced that GyroMetric Systems Ltd, in which RMS has a 58% shareholding, has reached an agreement to install digital monitoring equipment on a pilot project by Clarke Energy Limited, a leading supplier of power generation equipment in the UK.

Clarke Energy has decided to co-operate with GyroMetric to trial digital shaft monitoring to its generating equipment. The monitoring will employ GyroMetric’s unique digital monitoring of the bearings in the generator sets, and monitoring of shaft alignment. The objective is to evaluate the potential to realise value by utilising a predictive maintenance strategy utilising real time data harvested by the GyroMetric system, rather than a time based planned maintenance system.

Renold (RNO) 22.25p £50m

Yourgene, a leading international molecular diagnostics group, provides a positive trading update for the six months to 30 September 2019.

Revenues for the six months to 30 September 2019 were £7.8m, up 98% on the equivalent prior year period (six months to 30 September 2018: £3.9m), and in line with management expectations. International revenues continue to show very strong momentum, with the Elucigene Diagnostics business, acquired on 26 April 2019, contributing primarily to UK and European sales growth. International revenues include the Group’s first US sales as reported in our AGM statement. Organic growth, excluding contributions from the Elucigene acquisition, was 56%.

Cerillion (CER) 190p £54m

Cerillion, the billing, charging and customer relationship management software solutions provider, announced that it has won a new contract worth £2.9m with a mobile virtual network enabler (MVNE) in South Africa. The contract supports Cerillion’s existing market forecasts for the new financial year.

Renalytix AI (RENX) 251p £149m

Renalytix AI, a developer of artificial intelligence-enabled clinical diagnostics for kidney disease, announces the appointment of leading kidney investigator and clinician Dr. Chirag Parikh to the Renalytix board.

Dr. Parikh is the Director of the Division of Nephrology and the Ronald Peterson Professor of Medicine at the Johns Hopkins School of Medicine.

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