Small Cap Feast

Small Cap Feast – 17 December 2018

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 921

Total number of AIM Companies trading: 851*
* As at 06 December 2018

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 06 December 2018

Set Menu Standard List:

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

Total number of Standard List Companies trading: 130*
* As at 06 December 2018

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.


PetroTal Corp is an oil and gas company whose shares are currently admitted to trading on the TSXV. The Company is focused on development of oil and gas assets in Peru and it currently has controlling interests in three onshore Peru license blocks. No new funds being raised.  Due 21 Dec.  Mkt cap c.£80m

Litigation Capital Management—provider of litigation financing and ancillary services, moving from ASX (ASX:LCA) to AIM. Offer raising £20m at 52p.  Due 19 Dec. Mkt Cap £56.5m.

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 mid December.


Breakfast Buffet

PureTech Health (PRTC.L) 178p £502m

The “advanced biopharmaceutical company developing novel medicines for dysfunctions of the Brain-Immune-Gut (BIG) Axis, is pleased to note that Vedanta Biosciences announced the initiation of a Phase 2 study of VE303, the Company’s lead, orally-administered, live biotherapeutic product (LBP) candidate for recurrent Clostridium difficile infection (rCDI). Vedanta Biosciences’ pipeline comprises two clinical-stage programmes, including the recently announced Phase 1 study of VE202 with Janssen Biotech, Inc. for inflammatory bowel disease (IBD), and the Company expects to initiate two additional studies in 2019.

“We are pleased with the progress Vedanta Biosciences has made across its pipeline of microbiome-derived live biotherapeutic product candidates, and we look forward to the initiation of two additional clinical trials in the coming months.”


Georgia Healthcare (GHG.L) 224p £289m

Completion of the construction of Mega Laboratory (“Mega Lab”), the largest diagnostics laboratory in Georgia as well as in the entire Caucasus region. Mega Lab will be formally opened today. 

The multi-disciplinary laboratory, equipped with the most up-to-date infrastructure and state-of-the-art equipment, covers 7,500 square metres. High-capacity automated systems will enable GHG to provide accurate, high quality results for the country’s whole population. The laboratory will cover a full set of clinical and pathology tests, some of which are being introduced in the region for the first time.

The high technology unified laboratory will collect samples, initially from the Group’s hospitals and polyclinics throughout Georgia. The test results will be distributed automatically to each hospital and polyclinic within the Group, through internal Laboratory Information Management System (LIMS), enabling us to be significantly more efficient and provide a reliable service to our patients.”


Physiomics* (PYC.L) 4.15p £2.98m

“Physiomics announced that, following a successful collaboration this year and pursuant to the Master Services Agreement signed with Merck, a leading science and technology company, in Nov 2017, it has agreed with its client a program of work for the next calendar year.  Physiomics and Merck have entered into contracts with a total value of £435,000 for projects that are envisaged to be completed during calendar 2019, and which will span a range of drug targets and treatment types in both pre-clinical and clinical settings.

In its 2018 program of work with Merck, Physiomics believes it has developed genuinely ground-breaking predictive models that will add significant value to drug development programmes. The two companies have provisionally agreed that they will aim to publish selected elements of their work at one or more major conferences in 2019.”


Verona Pharma (VRP.L) 97.5p £102.6m

The “clinical stage biopharmaceutical company focused on developing and commercialising innovative therapies for respiratory diseases, announced the initiation of a Phase 2 clinical trial to evaluate the pharmacokinetic (“PK”) profile, efficacy and safety of a dry powder inhaler (“DPI”) formulation of RPL554 in patients with moderate to severe chronic obstructive pulmonary disease (“COPD”).

RPL554 is a first-in-class, inhaled, dual inhibitor of the enzymes phosphodiesterase 3 and 4 designed to have bronchodilator as well as anti-inflammatory properties, and is currently in development for the maintenance treatment of COPD, cystic fibrosis (“CF”) and asthma.

This randomized, double-blind, placebo-controlled, two-part study with the DPI formulation, being conducted at one site in the US, will enrol approximately 36 patients with COPD. The primary objective of the first part of the study is to evaluate the PK profile following a single dose of RPL554 when administered by DPI.”


Plexus Holdings (POS.L) 48.5p £51.1m

Investment of £735,000 in cash to acquire a 49% interest in Kincardine Manufacturing Services Limited (‘KMS’), a specialist precision engineering business with a blue-chip customer base, producing a variety of parts for the oil and gas sectors

KMS provides Plexus with future access to machining capability which can support R&D development projects to provide potential licensees with alternative applications of POS-GRIP® technology.

In the year to 31 Dec 2017, KMS generated revenues of £3.4m (2016:  £2.6m) and profit before tax of £323k (2016: loss £185k).  As at 31 Dec 2017, KMS had gross assets of £1.6m (2016: £1.4m)


Total Produce (TOT.L) 125p £484.79m

Total Produce announced that Dole Food Company has entered into an agreement to sell Saba Fresh Cuts AB and Saba Fresh Cuts OY to BAMA International which is headquartered in Oslo, Norway.

The sale of Saba Fresh Cuts AB was a condition of the European Commission’s approval of the acquisition by Total Produce of a 45% equity stake in Dole in July 2018.

Saba Fresh Cuts AB, with a production facility in Helsingborg Sweden and Saba Fresh Cuts OY, with a production facility in Espoo Finland are producers of washed and ready-to-eat salads.


K3 Business technology (KBT.L) 223p £97m

K3, which provides mission‐critical business software, cloud solutions and managed services to the retail, manufacturing and distribution sectors, provided an update on trading for the financial year to 30 Nov 2018.

The benefits of the changes made to reposition the Group for a return to profitable growth continue to flow through. Trading in the second half of the financial year has been encouraging and the Board expects to report full year results that are slightly ahead of market expectations. This includes a reduction in the Group’s net debt position at the year end to approximately £0.7m (30 Nov 2017: net debt of £4.3m). This improvement reflects the reduced cost base and better working capital management.

Consensus forecasts for FY2018E shows revs of £86m and EBITDA of £7.9m.


AppScatter (APPS.L) 19.5p £17.42m

“The intelligent app management platform, announced that it has signed an agreement to acquire 100% of the share capital of Abilott Limited for an initial consideration of £1.245m, and a potential further consideration of up to £1m”.

Abilott provides digital security solutions, specialising in companies who are launching new products or seeking to become a gaming operator or expanding into new global territories. Customers include Gamesys, Paddy Power, Betfair, Virgin Games, Bodog.

Abilott has been working closely with appScatter for the last two years providing Security & Regulatory Compliance for the Group and supporting appScatter threat analysis products for appScatter customers.

For the year ending 30 Sept 2017, Abilott generated revenue of £1.5m and a loss before tax of £170,998. Abilott had net liabilities at 30 Sept 2017 of £217,544.


Asos (ASC.L) 2,486p £3,510m

ASOS announced a trading update for the first three months of the financial year. Although we delivered solid growth in sales of 14%, we experienced a significant deterioration in the important trading month of November and conditions remain challenging. As a result, we have reduced our expectations for the current financial year. 

Revised guidance for the current financial year to August 2019:

Sales growth: c.15% (previously +20-25%)

Retail gross margin: c.-150bps (previously flat at 49.9%)

EBIT margin: c.2% (previously c.4%)

Capital expenditure re-phased down to c.£200m


Horizon Discovery (HZD.L) 168.5p £253m

Horizon Discovery Group, a global leader in the application of gene editing and gene modulation technologies, announced that it has entered into an exclusive target discovery partnership with C4X Discovery Holdings plc (AIM: C4XD), a pioneering drug discovery company. The partnership aims to validate the novel synthetic lethal oncology targets that Horizon has identified using its cutting-edge CRISPR-Cas9 technology, with C4XD then using its proprietary 4D shape-based chemistry technology (Conformetrix) to discover pre-clinical drug candidates. The partnership has been formed to deliver potential new drugs for patients with limited effective treatments such as colorectal and lung cancer.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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