Small Cap Feast

Small Cap Feast – 16 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:

US Solar Fund PLC, a newly established investment company focused on investing in Solar Power Assets primarily in the United States, has raised a total of $200m in its IPO to the premium segment at a price of $1.00 per Ordinary Share.

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

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.

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

eve sleep (EVE.L) 5.55p £14.44m

eve sleep announced the appointment of Tim Parfitt as its new CFO with effect from 17 June 2019, replacing Abid Ismail, whose departure was announced on 12 Mar 2019.

Tim is a qualified accountant, with over ten years’ experience as a CFO. For the last six years Tim has been CFO of Loaf1, the fast growing omni-channel furniture retailer, where he has overseen the transition from an early stage start-up to a profitable, sizeable and fast growing business, with several hundred products.

Prior to 17 June 2019, Tim will be working with the eve team to ensure an orderly handover from Abid, whose departure date has now been agreed as 31 May 2019.

 

Caledonia Mining (CMCL.L) 421p £46.33m

Caledonia Mining Corporation announced quarterly gold production from the Blanket Mine in Zimbabwe for Q1 2019. All production numbers are expressed on a 100% basis and are based on mine production data and are therefore subject to adjustment following final assay at the refiners.

Approximately 11,948 oz of gold were produced during the Quarter. Caledonia maintains its 2019 full year production guidance of 53,000 oz to 56,000 oz and remains on track with progress towards its target of 80,000 oz by 2022.

 

Petro Matad (MATD.L) 4.9p £34.77m

The “Mongolian oil explorer, announced that it has signed contracts for two rigs for its upcoming 2019 four well drilling programme.

Four well fully-funded programme remains on track for completion in 2019

Two rig contracts signed and both rigs in close proximity to Block XX

Heron 1 and Red Deer 1 wells expected to spud in July

Spudding of Gazelle 1 will follow completion of drilling at Heron 1

Rig contracts allow for possibility of immediate appraisal of any discovery

 

Hummingbird Resources (HUM.L) 18.25p £71.62m

Hummingbird Resources, the African gold producer, provided an operational update and announced production results for the Q1 2019, at its Yanfolila Gold Mine in Mali.

23,807 oz of gold poured in Q1 2019 (up 33% from 17,895 oz in Q4 2018)

Average mill feed grade of 2.46 g/t (1.91 g/t in Q4 2018)

AISC of $1,297/oz (down 23% from $1,677/oz in Q4 2018)

Second ball mill construction at Yanfolila remains on budget and on schedule for completion in Q3 2019

Total recorded injury frequency rate (‘TRIFR’) of 3.77

Cash of $13m ($21m at end of Q4 2018)

Bank debt of $56m ($61m at end of Q4 2018)

 

Thor Mining (THR.L) 0.75p £5.72m

The Board of Thor Mining announced that drilling at the Bonya tungsten deposits adjacent Molyhil, in the Northern Territory of Australia, has commenced.

The Bonya project is held in JV with Arafura Resources Limited (ASX: ARU), with both parties contributing to the cost of the program in proportion to their project equity (THR 40% : ARU 60%).

Reverse Circulation (RC) drilling program of approximately 2,500metres ;

Targets scheduled for drill testing comprise Samarkand, Jericho, White Violet, and Tashkent deposits;

Costeans (sampling trenches) excavated at surface on the Marrakesh and Tashkent deposits;

  • Each deposit has outcropping tungsten at surface, ensuring the drilling is into, or below, previously known mineralisation;

Drilling program expected to take approximately two weeks, with updates expected on drilling progress, preliminary on-site XRF analysis, followed by formal laboratory assays.

 

cloudBuy (CBUY.L) 2.8p £3.65m

cloudBuy, the global provider of cloud-based e-commerce marketplaces and B2B buyer and supplier solutions, is holding its AGM today, at which management will make the following statement:

We continue to make progress with PHBChoices, with more Clinical Commissioning Groups signing up and moving to use PHBChoices for the management and administration of their Personal Budget Holders.  There has been an increase in enquiries as the 1 April 2019 deadline for Personal Health Budgets to be offered as a default has come into effect.  Personal Health Budgets remain a key strategic imperative for the NHS, as confirmed in the NHS 10 year plan.

In Canada the York District School Board project has gone live and is acting as a case study for other districts. The first follow-on win is with Waterloo Catholic District School Board who have signed a contract and implementation work has started.

Our cost cutting program has been effective reducing our operating loss by 27% in 2018. In March we agreed with Roberto Sella to drawdown £0.5m from the Dec 2017 Convertible Loan Facility. This funding, together with the successful sale of our Company Formations business for approximately £0.26m, gives the Board confidence that the Company has sufficient funding to reach cashflow break even.”

 

ECSC (ECSC.L) 87.5p £7.51m

ECSC, the provider of cyber security services, announced three further new managed services contract wins with two household name retailers (with a combined revenue of over £2.5bn) and a technology services provider.

The contracts on a combined basis will generate in excess of £0.4m in revenue over a three-year period, representing an increase of more than 15% to the Managed Services order book. These wins underpin current Board expectations for the year in this division.

The largest contract is to provide 24/7/365 cyber security monitoring and breach detection. The solution utilises ECSC’s proprietary Kepler Artificial Intelligence, managed from the Group Security Operations Centres in the UK and Australia.

The second contract is to provide cyber security breach protection using ECSC’s proprietary Titania Web Application Firewall (WAF) technology, designed to block hacking attacks that pass through traditional firewall protection.

The third contract is to provide expertise and configuration management for a WAF service which is supplied by the client’s cloud hosting provider.

Two of the three contracts are new Managed Service contracts for existing Consultancy service clients, and the third is a new service for an existing Managed Service client.

 

Tatton Asset Management (TAM.L) 214p £129.15m

Tatton Asset Management, the on-platform discretionary fund management (DFM) and IFA support services business, provided an unaudited update for the 12 months ended 31 Mar 2019.

The Group has continued to grow revenue and adjusted operating profits against the backdrop of a complex and challenging market environment and expects to report revenue and operating profits within the range of analyst estimates.

Tatton Investment Management sustained a strong performance in to the second half of the year. The year ended with AUM of £6.1bn at 31 Mar 2019 (31 Mar 2018: £4.9bn, 30 Sept 2018; £5.7bn), an increase of £1.2bon or 24.5% for the financial year and £0.4bn or 7.0% for the last six-month period.  

Net inflows were £1.1bn over the last 12 months, an average of £92.5mn per month and £0.5bn for the last six months, an average of £87.1m per month.

Paradigm Mortgage Services continues to grow well, outperforming the growth of the mortgage market and continuing to gain market share. Member firms increased to 1,393 at 31 Mar 2019 (31 Mar 2018: 1,219), a 14.3% increase year-on-year.  Paradigm Consulting increased its member firms to 390 (31 Mar 2018: 368) but has seen downward pressure on revenue from consultancy services and the impact of reduced flows on the Paradigm wrap platform

Reabold (RBD.L) 0.62p £23.89m

Reabold announced that, further to its announcement of 28 Jan 2019, the VG-4 well at the West Brentwood field, in which Reabold has a 50% equity interest, has been put onto production, at an initially constrained rate, by the contract operator of the field, Integrity Management Solutions.

The significant volume of gas produced, in addition to the oil, during the VG-4 test, has meant that the well cannot be produced at its full rate until a tie-in to a nearby gas pipeline has been completed. The decision was taken to put VG-4 onto production at a choked back rate, reducing gas production to an acceptable level, in advance of the completion of such a tie-in.

VG-4 is currently producing in a range of 150-250 barrels of oil per day on a gross basis. The Company expects the oil rate to produce at significantly higher levels once the gas constraint has been removed, from which point Reabold will also benefit from sales revenues associated with the produced gas.

 

Coro Energy (CORO.L) 2.17p £15.09m

The South East Asian focused upstream oil and gas company, has completed its payment obligations to acquire its 15% working interest in the Duyung PSC by paying the outstanding cash consideration of $10.5m and issuing the existing PSC shareholders $1.85m in new Coro shares, as previously announced on 11 Feb 2019.

The Duyung PSC contains the Mako gas field, a large, shallow structural closure, with an area extent of over 350 square km. The reservoir is a Pliocene-age sandstone, with a gas-water contact at approximately 391m true vertical depth sub-sea. The field has excellent seismic definition with direct hydrocarbon indicators being very evident.

The Duyung PSC partners are planning an exploration and appraisal drilling campaign for the remainder of 2019, in relation to the PSC and will be updating the market shortly with details

 

Head Chef:

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

*A corporate client of Hybridan LLP

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