Small Cap Feast

Small Cap Feast – 16 January 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 916

Total number of AIM Companies trading: 846*
* As at 15 January 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 15 January 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 139*

Total number of Standard List Companies trading: 130*
* As at 15 January 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 (Specialist Funds)

The Global Sustainability Trust -aiming for attractive risk-adjusted returns by investing primarily in private market investments that are expected to have a positive environmental and social impact raising c.£200m. Due 31 Jan 2019.

Main Market (Standard)

Dev Clever Hldgs—Raising up to £700k gross.  The Group has invested over £600,000 in the last five years in developing proprietary software platforms and immersive frameworks to reshape the way its clients engage, acquire and retain their customers and employees through experience, rewards and incentives.  Mkt cap c. £3.7m


Circassia Pharma (CIR.L) – specialty pharmaceutical company focused on respiratory disease transferring from the Main Market. No funds being raised. Due 4 Feb.

Greenfields Petroleum (TSX-V:GNF)  production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected late January 2019.

Breakfast Buffet

Norcros (NXR.L) 186p £156m

Further South African acquisition. RAP Plumbing Supplies. Total consideration of up to South African Rand 215m approximately £12.1m.   FYApr18 rev c.£22.1m, EBITDA c.£1.9m. A further step in the Group’s growth strategy to expand its bathroom product portfolio and follows on from a number of very successful acquisitions, most recently that of Merlyn, and the sustained organic growth in South Africa.

The Group has continued to trade in line with the Board’s expectations in both the UK and South Africa since the announcement of its interim results on 15 Nov 2018.

FYMAr19E PE c.6.5x and yield over 4%.


EKF Diagnostics (EKF.L) 31.5p £143.4m

Trading update,  Adjusted EBITDA for the year ended 31 Dec 2018 is expected to be comfortably ahead of market expectations which had been upgraded during the period. In addition, cash generation in the second half has been very strong with net cash at the end of the year of £9.4m (31 December 2017: £7.0m net cash), which is after a £3.1m investment in Renalytix AI PLC and share buybacks of almost £0.9m.

FYDec18E rev £43.3m and PBT £6.65m.


BigDish (DISH.L) 1.85p £5m

BigDish, a food technology company that operates a yield management platform for restaurants, announced the Company’s successful launch in Bournemouth and completion of the BigDish app beta testing period.

BigDish app beta testing period completed.

The migration of Bournemouth restaurants from TablePouncer to BigDish began on 14 January 2019.

BigDish will be available in Bristol by the end of Jan 2019.

Redesign of the BigDish app has been completed targeting the UK market.


Serinus Energy (SENX.L) 15p £22.6m

The Company has confirmed that the Low Temperature Separation  unit and the Triethylene Glycol  unit  due for installation at its Moftinu gas plant in Romania have been loaded onto a freighter and have departed from Halifax, Canada, to Bremerhaven, Germany. Subject to weather in the Atlantic during shipment, the Units are expected to arrive in port approximately 6 to 10 days after departure.  The Units will then be trucked to the Moftinu site in Romania for final assembly, testing and commissioning.


SimplyBiz Group (SBIZ.L) 150p £115m

The independent provider of compliance and business services to financial advisers and financial institutions in the UK, announced that over 2,300 advisers have adopted Centra in the nine months since launch. Centra is a new end-to-end financial planning system designed to help advisers provide a quality, comprehensive and compliant financial planning journey for their clients.

Centra, which took over twelve months to develop, offers the Group’s members access to an integrated suite of tools covering the full range of adviser planning needs. The system includes; integrated goals-based financial planning tools, product research, suitability reports and a complete centralised investment process, backed by an independent investment committee.


Trackwise Designs (TWD.L) 97.5p £14.4m

FY Dec18 provider of specialist products using printed circuit technology.

The Company has seen strong growth in both its Radio Frequency and Improved Harness Technology divisions versus the prior year and profits for the year ended 31 Dec 2018 are expected to be in line with market expectations.

Whilst there have been some delays in ordering from IHT customers, and some uncertainty regarding the impact of Brexit, Trackwise continues to experience accelerating interest and demand for its unique IHT technology across the Company’s chosen markets of Aerospace, Automotive, Space and Industrial.

The equity funds raised at the time of the Company’s Admission to AIM in July 2018 are being invested in both manufacturing capability and capacity, together with sales and marketing resource.


Yellow Cake (YCA.L) 222p £168m

Quarterly update (to Dec 18) from the specialist company operating in the uranium sector with a view to holding physical uranium for the long term.

Steady improvement in the market fundamentals for U3O8, with the spot market price increasing by 25% from $22.85 /lb to $28.50 /lb since IPO on 5th July 2018

Value of underlying physical uranium (“U3O8”) held by Yellow Cake increased by 35% to $240.6 mm relative to acquisition cost of $178.2 mm

Total Yellow Cake holding of uranium of 8.44 million lb, acquired at an average cost of $21.10 /lb against a current spot price of $28.50 /lb 

NAV increased by 27% to £2.53 /share relative to IPO price of £2 per share


Somero (SOM.L) 295p £166m

Acquisition of the business assets of Line Dragon, LLC, a Pennsylvania based provider of concrete placing and hose dragging equipment to the concrete industry. The acquisition offers a unique opportunity to add to Somero’s broad portfolio of differentiated products. Line Dragon complements Somero’s SP-16 Concrete Line Placing & Pulling system, with the combined offering introducing innovative features to customers and expanding Somero’s customer relationships in this market segment.  In the year ended 31 Dec 2018 Line Dragon, LLC generated revenues of approximately $2m.  The transaction is expected to have a slight positive impact on 2019 earnings. Consideration -$2m in cash paid at closing along with on-going performance payments.  Trading: Strong growth drives revenue, EBITDA and cash ahead of expectations.  FYDec18E PE c.11x and yield c.6%.


BATM Advanced Comms (BATM.L) 46.4p £189.7m

The  provider of real-time technologies for networking solutions and medical laboratory systems, announces that Telco Systems, a wholly-owned high-end software development and design business within the Group’s Networking & Cyber division, has completed an upgrade of the Carrier Ethernet network of Kenya Education Network (KENET), the National Research and Education Network (NREN) of Kenya, from 10GE to 100GE.

As the NREN of Kenya, KENET provides high-speed Internet access and data centre services to member university campuses and research facilities across the country and interconnectivity with other NRENs around the world. KENET also provides shared cloud-based services, including co-location of servers, dedicated virtual servers for e-learning systems and video and web conferencing.


GetBusy (GETB.L) 34p £16.4 m

FYDec18 trading update.  Trading in H2 has continued at a similar pace. The Group expects to report that total revenue increased approximately 20% to £10.9m, on a constant currency basis. Adjusted EBITDA is expected to be in-line with expectations while cash as at 31 Dec 2018 was substantially better than expected at £2.5m, compared to £2.4m at 30 June 2018. Growth in the Group’s high quality recurring subscription revenue, at constant currency for the full year, was 22% with the growth rate in the UK accelerating to 17% following strong order intake and the transition to a pure subscription model.  Annualised Monthly Recurring Revenue at 31 Dec 2018 was £10.3m, an increase of 19% at constant currency.


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Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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