Small Cap Feast
Small Cap Feast – 15 April 2019
Set Menu AIM:
Total number of AIM Companies (Incl Susp): 897
Total number of AIM Companies trading: 826*
* As at 12 April 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 12 April 2019
Set Menu Standard List:
Total number of Standard List Companies (Incl Susp): 161*
Total number of Standard List Companies trading: 141*
* As at 12 April 2019
Dish of the Day:
No Joiners Today
No Joiners Today
Off the Menu:
No Leavers Today
No Leavers Today
Dish of the Day:
No Joiners Today
No Joiners Today
Off the Menu:
No Leavers Today
No Leavers Today
What’s Cooking in the IPO Kitchen?
Rustranscom plc— specialised rail freight transportation in Russia and Kazakhstan, announced its potential intention to conduct an IPO of GDRs. The GDRs are expected to be admitted to the Official List of the FCA and to trading on the main market of the LSE. Offering is expected to comprise predominantly primary shares, in the amount of circa $300m.
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 16 April
Finablr plc— global platform which provides Cross-Border Payments and Consumer Solutions, Consumer Foreign Exchange Solutions and B2B and Payment Technology Solutions to consumers and businesses in the large and growing payments and foreign exchange market is looking to list on the Main Market plans to raise $200m
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.
Loungers plc—the operator of 146 café/bar/restaurants across England and Wales under the Lounge and Cosy Club brands, announces its intention to seek admission on AIM, offer TBC, expected late April.
SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m
Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019.
Crossword Cybersecurity* (CCS.L) 535p £25.04m
Crossword Cybersecurity, the cyber security technology commercialisation company, announced its final results for the year ended 31 Dec 2018.
Revenue increased 45% to £1.06m
Cash increased 353% after two funding rounds, in March and December, totalling £4.16m. The latter being raised when the Company transferred from the NEX Exchange.
Recruited a mature sales team
Strengthened our Board and management team
Built a strong product pipeline
Doubled product revenue
Significantly grown its consulting activities
The outlook for Crossword is positive. A recent Government report estimated that the UK cyber security sector’s total revenue was £5.7bn as at FY 2015/16 and it has continued growing since then. Crossword estimates that the potential addressable market for Rizikon Assurance alone is £300m per annum across 10,000 companies. Over the coming year, the Company intends to focus on sales and marketing activity across product and consulting, to drive up revenue rapidly.
Jersey Oil & Gas (JOG.L) 71.5p £16.37m
Jersey Oil & Gas, an independent upstream oil and gas company focused on the UK Continental Shelf region of the North Sea, announced that the West Phoenix semi-submersible rig which drilled the 20/05b-14 Verbier appraisal well has now moved off location. The well was drilled safely and below budget.
JOG advised that Equinor UK Limited, as the committed operator of the P2170 Licence, has confirmed to the co-venturers that it will complete the already planned full re-evaluation of the licence area, combining the recent appraisal well results and data collected during operations with the fully processed 3D broadband seismic data, acquired in 2018 and which is expected to be delivered in June 2019, in order to better understand the reservoir distribution of the primary target. The evaluation will also include an assessment of additional prospectivity in the deeper targets and the other previously identified exploration opportunities, including Cortina, before making a recommendation to the co-venturers on a potential future appraisal/exploration programme.
The co-venturers in the P2170 Licence and their respective interests are: Equinor 70%, JOG 18% and CIECO V&C (UK) Limited 12%.
City of London Group (CIN.L) 137p £54.18m
City of London Group continues to strengthen the Board of Recognise with the appointment of Louise McCarthy as an Independent INED. She joins fellow INEDS Richard Gabbertas and Simon Wainwright.
Recognise, a subsidiary of the City of London Group, will offer financial services to the UK SME sector and the retail and business deposits market. Subject to the granting of a banking licence, Recognise will target the underserved SME sector offering service excellence, speed, flexible structuring and a deep understanding of this vital market.
Louise started her career in finance and is a qualified ACCA. In the intervening years she has worked in a COO and CIO capacity for a number of major organisations driving through large scale IT change programmes.
Louise brings to RecognIse over 35 years’ experience in large private and public sector businesses, including Transformation Director at EBRD, Aviva, HMRC, HSBC and Virgin Media. Louise is currently a CFO at Arachnys. She has a proven ability to deliver significant results in a variety of challenging environments including driving value into businesses, major cost reductions and transformational exercises.
Filta Group (FLTA.L) 226p £66.82m
Filta Group provider of cleaning services to commercial kitchens in North America, the UK and, more recently, mainland Europe, reported its Full year audited results for the financial year ended 31 Dec 2018
Revenue (from Continuing Operations) up 23% to £14.2m (2017: £11.5m) increased in all divisions:
Fryer Management revenue up 11% to £9.3m (2017: £8.4m)
FiltaSeal revenue up 24% to £1.6m (2017: £1.3m)
FiltaGMG revenue £1.7m (2017, 4 months: £0.4m)
Franchise Development revenue £1.5m (2017: £1.3m)
Gross margin improved to 49.8% from 49.2%.
Adjusted EBITDA* from Continuing operations up 25% to £2.6m (2017: £2.1m).
Operating profit £1.8m (2017: £1.7m) after non-cash charges of £0.7m – depreciation and amortisation of £0.4m (2017: £0.2m) and share based payments of £0.3m (2017: £0.1m).
Deferred revenue balance up £0.7m (including £0.2m FX gain) to £3.7m of which £0.9m to be released in 2019.
Net cash of £2.1m at 31 Dec 2018.
Proposed final dividend of 0.92p per share, which together with the interim dividend of 0.72p, makes a total dividend for the year of 1.64p per share, an 26% increase over prior year.
Egdon Resources (EDR.L) 5.9p £14.62m
Egdon Resources announced the appointment of Tim Davies as a NED of the Company with immediate effect. Tim replaces Andrew Lodge who steps down after over seven years on the Board.
Tim has over twenty years of experience in the Oil and Gas Sector, with global experience of running major exploration projects. He has held a number of senior positions at Premier Oil plc (“Premier”) and currently holds the position of Group Exploration Manager, a role in which he has driven acquisition and divestment activity to optimise the Premier portfolio. Prior to joining Premier Oil, Tim spent seven years working on global new ventures for ConocoPhillips and Hess. A Fellow of the Geological Society, Tim holds a BSc Hons in Geology and a PhD from Cardiff University.
GAN (GAN.L) 51.5p £43.8m
GAN, an award-winning developer and supplier of enterprise-level B2B Internet gaming software, services and online gaming content in the United States, updated the market following the publication on April 12, 2019 by the New Jersey’s Division of Gaming Enforcement (“DGE”) of Internet gaming and Internet sports betting financial information for the calendar month of March 2019 in New Jersey.
Internet Gaming Win was $39.1m in March compared to $25.6m in the prior year period, reflecting a year-over-year increase of 52.7%.
Total Internet Sports Wagering Handle was approximately $298.3m for the month of March 2019, up from $259m in Feb 2019, but slightly down from $305m in January 2019.
Internet Sports Wagering Gross Revenues (after payouts) were $24.3m, up significantly from Feb $12.8m and Jan’s $15.5m.
LoopUp Group (LOOP.L) 305p £169.5m
LoopUp Group, the premium remote meetings company, announced that the Board has appointed Mr Keith Taylor as an Independent NED. He will join the Board with immediate effect and will become a member of the audit, remuneration and nominations committees.
Keith Taylor has nearly 30 years’ experience in senior roles across the finance industry. He has worked for Barclays for over 20 years, most recently as a Managing Director within the Corporate & Investment Banking division. Keith’s experience also includes acting as Vice Chairman and Board Member of the Loan Market Association, and serving as a Trustee Director of the Barclays UK Retirement Fund, one of the largest UK pension funds. Keith has a first-class honours degree from Cambridge University and an MBA with distinction from Cass Business School.
SigmaRoc (SRC.L) 46p £78.2m
SigmaRoc, the buy-and-build construction materials group, announced it has acquired a 40% equity interest in GDH, a significant quarrying group located in South Wales, for a cash consideration of £4.89m. In addition, the Company has entered into an option agreement with the owners of GDH, whereby SigmaRoc has the exclusive right to purchase the remaining 60% of GDH for cash consideration of £7.5m, on or before 31 Aug 2020.
The Initial Consideration has been funded through a combination of internal resources and the Group’s available credit facilities and SigmaRoc intends to fund the Further Consideration on the same basis, implying no dilution for equity holders. Assuming the Group exercises the Option, on completion of the Further Acquisition, the Company expects the Group’s Net Debt to EBITDA ratio to remain close to the current level of 2:1.
Redcentric (RCN.L) 78p £115.73m
Redcentric, a leading UK IT managed services provider, issued a trading update for the year ended 31 March 2019.
The Company’s trading results for the year were in line with the Board’s expectations.
Net debt at 31 March 2019 was £17.6m which was ahead of the Board’s expectations and is a reduction of £10.1m since this time last year.
The Company will report its full year results for the year ended 31 March 2019 on 25 June 2019.
Ascent Resources (AST.L) 0.6p £12.06m
The Board of Ascent announced that their JV partners have been informed by the Slovenian Environment Agency that the IPPC Permit has been confirmed as fully valid, no further appeals against the permit are possible.
The IPPC permit is crucially important to the Company and to Slovenia. It allows the installation of a small processing facility which would enable Slovenian gas to be sold into the Slovenian national grid system. As such the award of the permit marks an important step forward for our field development plan.
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 email@example.com with “unsubscribe me”.