Small Cap Feast

Small Cap Feast – 16 July 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 888

Total number of AIM Companies trading: 807*
* As at 15 July 2019

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 88*

Total number of NEX Growth Market Companies trading: 86*
* As at 15 July 2019

Set Menu Standard List:

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

Total number of Standard List Companies trading: 143*
* As at 15 July 2019

Dish of the Day:

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Off the Menu:

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Dish of the Day:

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What’s Cooking in the IPO Kitchen?

Main Market (Premium)

Main Market (Specialist Funds)

Voyager AIR  The Company will focus on the acquisition, leasing and management of primarily widebody aircraft, with asset management services to be provided by Amedeo Limited the IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m.

AIM

Uniphar, a diversified healthcare services business with a workforce of over 2,000, is looking to join AIM. Raising EUR135m with market cap on admission of EUR309.6m, expected 17 July 2019.

Roxi Music UK music streaming service plans London IPO as it goes up against Spotify. They have appointed investment bank Arden Partners for an initial public offering (IPO) on the London Stock Exchange later this year.

Breakfast Buffet

Cloudcall Group PLC (CALL) 119p £31.68m

CloudCall, a leading cloud-based software business that integrates communications technology with Customer Relationship Management (CRM) platforms, announces the following trading update for the six months ended 30 June 2019:

Revenue up 30% vs H1 2018 with recurring revenue up 34%

Users up 37% vs H1 2018 to just under 37,000

New orders received up 44% vs H1 2018, including the Company’s first large enterprise deal

In Q2, monthly net user growth exceeded the stated target of 1,000 per month

US revenues now 40% of global recurring revenue

US operations profitable and generating cash

Terms agreed on a new £3m debt facility with Shawbrook Bank to replace current facility

Available cash resources of £4.5m through a combination of its own cash, its new credit facility and its expected R&D tax credit

Revenues for the six-month period were approximately £5.2m, an increase of 30% against H1 2018, and recurring revenues up by 34% compared to the same period.  Churn remains low and factoring in upsells, net renewal rates from existing customers remain above 100%, helping to drive revenue and user growth.

Blackbird PLC (BIRD) 6.8p £20m

Blackbird, the developer and seller of the market-leading cloud video platform Blackbird, has announced that TownNews has extended its adoption of Blackbird for the rapid production of digital news content. This is the third such deployment within a year.

TownNews has added an additional 14 TV stations that will use Blackbird – bringing the total to 39 stations in 24 states. The additional stations are owned by seven broadcast groups that provide premium local news content to millions of viewers across the United States.

Blackbird enables TownNews’ partners to rapidly view, edit and publish video content no matter their location. When paired with the TownNews Field59 VMS, news stories can be delivered with unprecedented speed and control using Blackbird’s browser-based cloud video platform.

Local TV news networks in the US comprise over 350 stations producing around six hours of news content per weekday. The industry as a whole generates nearly $28bn of revenue annually. The move to the consumption of digital news has been rapid with 43% of US adults now often sourcing news from websites and social media.

ABCAM PLC (ABC) 1,361p £2,799m

Abcam, a global innovator in life science reagents and tools, announced the acquisition of the entire live cell line and lysates portfolio of EdiGene Inc, a leading company focused on developing genome editing technologies into novel therapeutics for a broad range of diseases and into creative solutions to advance drug discovery. 

Using their proprietary high-throughput cell editing platform, EdiGene developed the industry’s largest off-the shelf diploid library of over 2,800 single clonal knockout (KO) cell lines targeting over 2,600 genes in commonly used human cancer cell lines (including HeLa, HEK293-T, A549, HCT116, Hep G2 and MCF7).

Ready-made diploid KO cell lines are an important tool for antibody validation. They also play a significant role in the study and understanding of biological pathways and disease models and can be used in screening and cellular assays. EdiGene’s cell lines and lysates are used by top academic researchers, global biopharmaceutical companies, and leading antibody companies.

Financial terms of the transaction have not been disclosed and are expected to have a minimal impact on revenue and earnings in the current financial year.

Karelian Diamonds* (KDR) 3.35p £1.16m

Karelian Diamonds announced the appointment of Mr Howard Bird as consultant to the Company. The Company intends to appoint Mr. Bird to its Board at an appropriate later date.

Mr. Bird is an internationally experienced Professional Geoscientist and has over 30 years’ diverse junior and senior mining company exploration, development and mining experience, including over 15 years at senior executive management level.

Mr. Bird has a strong background in both European and North American marketing, capital financings, mergers and acquisitions, and joint-ventures. He has a proven track record contributing to significant company value added growth with grassroots exploration discovery success, development and production of highly profitable kimberlite diamond deposits.

The Company also announced that it has conditionally raised £0.1m, through a subscription of a total of 2,500,000 new ordinary shares of €0.00025 each in the capital of the Company, at a price of 4p per Subscription Share. The Subscription Shares have been subscribed for by a new investor, Martello Holdings Limited.

The Subscription Price represents a premium of approximately 31% to the closing mid-market price of 3.05p per Ordinary Share on 12 July 2019. The net proceeds of the Subscription will be applied for general working capital purposes.

Everyman Media Grp (EMAN) 182.5p £132m

Everyman Media provide  the following trading update for the 26 weeks ended 4 July 2019.

The Group ended the period operating 28 cinemas having opened a three-screen venue in Horsham and a four-screen venue in Newcastle during the period. Demand for the Everyman offer continues to strengthen, and the Board announced that new contracts have recently been exchanged for a new venue in Egham, Surrey (four screens). The Company is on track to open five more new venues in 2019 and has legal commitments to open a further nine sites through 2020 and 2021 with more in advanced stages of negotiation.

The Group has performed in line with expectations in the first 26 weeks of 2019 and the Board is confident of a successful outcome for the full year. The Group intends to publish its interim results for the 26 weeks ended 4 July 2019 on 24 Sept 2019.

Big Sofa Tech. Grp. (BST) 4.55p £7.45m

Big Sofa Technologies announced a further service agreement with a global technology company based on the West Coast of the US for its proprietary, video-based collaboration system, along with an initial commission under that service agreement. 

This service agreement is the second such agreement with a US based global technology company in the past 4 months, the first having been announced in March 2019. Both companies have now commissioned introductory projects under their respective service agreements, with an overall initial aggregate value of over $100k. These commissions mark further progress against the Company’s objective of extending beyond retail and consumer packaged goods into the technology and digital sectors.

Surface Transforms (SCE) 19.5p £26.5m

Surface Transforms announced that it has been notified of its selection as a tier one supplier of  a carbon ceramic brake disc to a major German automotive company – previously described by Surface Transforms as “OEM 5”.

Pursuant to this selection, Surface Transforms has received an order for the production tooling. The final stage of the selection process is the signing of a master purchase agreement which is anticipated to take approximately 4-8 weeks to finalise. However, the principal commercial terms are already agreed.

Specifically, the selection is for Surface Transforms to be the sole supplier of the carbon ceramic brake disc option on one axle of a new edition of an existing well-known model of German OEM 5. The existing model already uses carbon ceramic discs as an option and therefore the forecast production volumes reflect this experience. The lifetime revenue on this specific car model contract is estimated to be approximately €11.8m commencing in October 2021. Annual revenue is estimated to be approximately €2m per year before tapering off during 2026.

Zegona Comm PLC (ZEG) 104.50p £231m

Zegona provided an update on the operational improvements at Euskaltel, following the appointment of José Miguel García as CEO and the appointment of two key Zegona executives as proprietary directors. Earlier this year, Zegona significantly increased its ownership stake in Euskaltel and is now its largest shareholder.

José Miguel García was appointed as CEO of Euskaltel Group by the Board of Directors with unanimous agreement on 5 June 2019, and his appointment was overwhelmingly endorsed by shareholders at the Extraordinary Shareholder Meeting on 10 July 2019.  At the same shareholder meeting, Zegona’s Chief Executive Officer Eamonn O’Hare and Chief Operating Officer Robert Samuelson were also approved as proprietary directors on Euskaltel’s Board.

In his first month as CEO, José Miguel has made a fast start with significant progress in implementing a new plan for the business.

Science Group PLC (SAG) 199p £81.8m

Science Group announced that on 15 July 2019 the Company purchased 377,807 shares in the capital of Frontier at a price of 35p per share. Following these purchases, the Company holds a total of 15,272,320 shares in the capital of Frontier, equivalent to 37.5%of the voting share capital of Frontier.

Fulham Shore PLC (FUL) 11.5p £65.71m

Fulham Shore announced its proposed acquisition, subject to shareholder approval, of the approximately 1% minority interests in two of its subsidiaries: Kefi Limited (“Kefi”), which owns the subsidiary that owns and operates The Real Greek restaurants; and Franco Manca Holdings Limited (formerly Rocca Limited), which owns the subsidiary that owns and and operates the Franco Manca pizzeria, for a total consideration of up to £650,658, payable in cash.

Head Chef:

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

*A corporate client of Hybridan LLP

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