Small Cap Feast

Small Cap Feast – 16 May 2019

Dish of the Day:

No Joiners Today

Off the Menu:

Footasylum has left AIM following a takeover by JD Sports Fashion

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

Jewel UK Midco Limited, the parent company of The Watches of Switzerland Group Limited, is looking to join the premium segment of the main market. Offer TBC, expect TBC

Main Market (Standard)

IMC Exploration Group (NEX: IMCP), focused on acquiring and exploring prospecting licence areas which have high potential for natural resource, is looking to admit its shares to the standard list and will withdraw for the NEX Exchange. Expected 11 June 2019

Pure Gold—  TSX listed seeking a London listing. Focused on Madsen Red Lake Gold Deposit.  Feasibility Study outlines a robust 12-year, high grade, 800 tonne per day underground mining operation with low initial capital cost of C$95mm and strong financial performance with an after-tax NPV of C$247mm . Introduction only at this point Mkt cap CA£138m.

Main Market (Specialist Funds)

Riverstone Credit Opportunities Income  – raising US$200m—will seek to generate consistent shareholder returns predominantly in the form of income distributions principally by making senior secured loans to energy-related businesses. Due 24 May


Essensys plc—a provider of mission-critical SaaS platforms and on-demand cloud services to the high growth flexible workspace industry, plans to join AIM. Offer TBC,  expected 29 May 2019.

Induction Healthcare Group plc—a healthcare technology company focused on streamlining the delivery of care by Healthcare Professionals looking to join AIM. Expected raise of £14.58m at 115p, market cap of £34.07m. Expected 22 May 2019.

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.

Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019

Nex Exchange

SSuINOx—has developed a hydrocarbon fuels conditioning and emulsifying process that enables more efficient fuel combustion, leading potentially to reduced fuel usage and significantly lowered emissions.  Offer TBA.

Rumours and Speculation

According to Reuters — Walmart, the world’s biggest retailer, said it is considering a stock market listing for its British supermarket arm Asda, whose attempt to combine with rival Sainsbury’s was blocked by the UK regulator last month.

Breakfast Buffet

Sareum Holdings* (SAR.L) 0.7p £18.69m

Sierra Oncology (the licence holder for Chk1 inhibitor SRA737) updated in relation to presentations of preliminary clinical data from its Phase 1/2 SRA737 monotherapy study and its Phase 1/2 study of SRA737 in combination with low dose gemcitabine (SRA737+LDG) at the upcoming 2019 Annual Meeting of the American Society of Clinical Oncology (ASCO). SRA737 monotherapy: the MTD (maximum tolerated dose) was 1000 mg/day and based on overall tolerability and PK, the recommended Phase 2 dose is 800 mg/day. The successful enrolment of prospectively-selected genetically-defined subjects will allow response data to be correlated with genomic profiles hypothesized to confer sensitivity to Chk1 inhibition. The combination of LDG and SRA737 has  been well tolerated. This first-in-human clinical study provides proof-of-concept that sub-therapeutic LDG effectively potentiates SRA737. This novel replication stress-targeted therapy warrants further evaluation in genetically pre-defined solid tumors.


MySale Group (MYSL.L) 11p £18.8m

MySale Group, the leading international online retailer, announced that the transaction to sell the trade and assets of the website (“the Business”) to Brandalley UK Limited, as previously announced on 3 May 2019, has now been completed.

The Business, although only approximately 5% of total revenue, was the group’s main trading website in the UK and this disposal forms part of the rationalisation programme which will increase the group’s focus on the Australian and New Zealand (ANZ) markets.

Whilst current trading continues to be very challenging the group remains focused on reducing its cost base and through its ‘ANZ First’ strategy, utilise the group’s scale, resources and market position in the region to deliver the e-commerce platform of choice to domestic and international brands

Seeing Machines (SEE.L) 3.27p £108.5m

“The advanced computer vision technology company that designs AI-powered operator monitoring systems to improve transport safety, provided a comprehensive update on its Fleet business.

The success of the Fleet business and its implementation of Guardian 24/7 monitoring services is fundamental to Seeing Machines. At 30 April 2019, more than 1,500 Guardian units have been installed since 31 Jan 2019, with over 14,500 units now installed in vehicles globally. This recent momentum has strengthened as the Guardian installation rate continues to accelerate with expectations that the Group will reach 16,000 Guardian units connected by 30 June 2019 and approximately 27,000 Guardian units connected by June 2020, which the Group remains on track to achieve.”


Belvoir Lettings (BLV.L) 117.5p £41.05m

AGM Statement form the UK’s largest property franchise.

“The Board reported that trading during the first quarter of the current financial year has been robust. Belvoir is outperforming the three key markets in which it operates, namely residential lettings, property sales and financial services. Growth in Management Service Fees (“MSF”) from lettings of 6.3% was noticeably ahead of the reported year-on-year rental index of 1.2%, growth of 10.3% from sales MSF compared with a drop of 1.5% in property transactions, and net banking from financial services (on a like-for-like basis) was up 20%.

Consequently, the Board is confident of meeting market expectations for the year ending Dec 2019.”

After 24 years of service, Mike Goddard, Belvoir’s founder and the non-executive Chairman retiring from the Board. Michael Stoop, who was appointed as a non-executive to the Board in March 2018 takes over the role of Chairman.


LiDCO (LID.L) 4.8p £9.77m

“AGM Statement from the hemodynamic monitoring company. LiDCO has made a good start to the year with Q1 revenues well ahead of Q1 last year and above the Board’s expectations.

In the first quarter, LiDCO product revenues were up 38% versus prior year with like-for-like recurring revenues up 42%. Recurring revenues continue to benefit from the Group’s unique, differentiated, High Usage Programme (‘HUP’) business model. At a geographical level, the US revenues, which the Board expect to be the main strategic driver of future growth, were up 69% in the quarter compared with Q1 last year. LiDCO UK revenues, excluding 3rd party products, were up 12% for the quarter.”


IndigoVision Group (IND.L) 180p £13.56m

“IndigoVision reports that, in the four months to 27 April 2019, trading was in line with market expectations. 

As in previous years, sales are expected to be weighted towards the second half of the year and the nature of our business is such that the precise timing of our orders is difficult to predict. Nevertheless, the current indicators support the Board’s target to return the Company to profitability in the current year.”


Ergomed (ERGO.L) 231p £94.49m

The company focused on providing specialised services to the pharmaceutical industry, today announces an update on trading for 2019. Trading year to date has been strong in both the Clinical Research Organisation Services (“CRO”) and pharmacovigilance (“PV”) businesses. The CRO business in particular has benefited from agreements with clients on change orders and projects concluding positively. Trading in PV remains solid and management expects this performance to be sustained throughout 2019.

Ergomed now expects revenue and EBITDA for FYDec19 to be materially above current market expectations.


4d Pharma (DDDD.L) 108p £68.77m

The pharmaceutical company focusing on the development of Live Biotherapeutics, announced that data from the completed Phase Ib clinical study of Thetanix®for the treatment of Crohn’s disease will be presented on 18 May in a poster session at the 2019 Digestive Disease Week meeting in San Diego. The poster was nominated as a “Poster of Distinction” within the top 10% of posters submitted to the congress. The Company has previously announced the top-line results from this study.

This study met its primary objective, demonstrating that Thetanix® was well tolerated with a good safety profile.


AfriAG Global (NEX:AFRI) 0.08p £1.4m

AfriAG has entered into a conditional subscription agreement to subscribe for shares in Apollon Formularies. Aggregate investment of £700k.

The first £300k proposed investment in to Apollon will be targeted towards opening Apollon’s first revenue generation businesses at Doc’s Place Wellness Center and Apollon’s first dispensary and processing facility in Negril, Jamaica and will secure the option to acquire 660 acres of prime agricultural land for future cultivation expansion.


Aeorema Comms (AEO.L) 28p £2.4m

The live events agency, reports a trading update for the 2019 financial year to date.

In this difficult trading environment, the Company is pleased to have secured business wins with both new and existing clients, including a three-year contract with a global media company. Aeorema has seen strong trading in the second half of the reporting period to date, with record revenues generated that will exceed those expected by the market. The new business wins, albeit on reduced margins from certain areas of client business, have contributed to the improved performance over that seen in the first half of the financial year and this will result in the Company reporting profits for the year ended 30 June 2019 broadly in line with market expectations. The Company is in a strong cash position and it remains the intention to pay a full year dividend, subject to the final audited results for the year.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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