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

Off the Menu:

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Dish of the Day:

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Off the Menu:

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What’s Cooking in the IPO Kitchen?

Main Market

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

AIM

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.

Breakfast Buffet

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.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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