Small Cap Feast

Small Cap Feast – 17 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:

Bioquell has left the main  market (premium)  following a £140.5m takeover by  Ecolab.

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

AIM

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

Oracle Power (ORCP.L) 0.53p £5.14m

The UK energy developer of a combined lignite coal mine and mine mouth power plant located in the Thar desert in the south-eastern Sindh Province of Pakistan, today provides an update on recent operational and macro developments. 

Block VI maintained as Priority Project in 8th Joint Cooperation Committee  meeting;

China Pakistan Economic Corridor (“CPEC”) approve Oracle proposed expansion to 700MW;

Consortium partnership change noted in CPEC.

 

Iofina (IOF.L) 15p £17.45m

“The exploration and production of iodine and halogen-based specialty chemical derivatives, updated the market on an exceptional year for the Group, in which it produced record volumes of crystalline iodine and executed on the Group’s commitment to growth and increased profitability.”

H2 2018 324.7 metric tonnes (‘MT’) a 21% increase YOY (H2 2017: 267.5MT)

Full year production in 2018 of 588.8MT a YOY increase of 17% (2017: 503MT)

H1 2019 production currently forecast at 310-330 MT of crystalline iodine.

Iofina Chemical continues to trade strongly in both iodine and non-iodine products.

 

Fox Marble Holdings (FOX.L) 7.88p £15.8m

Fox Marble announces the start of commercial extraction of Alexandrian Blue from the Prilep quarry in Northern Macedonia.  Alexandrian Blue has dense blue grey banding with smaller bands of white which produce a marked blue tone and is akin to the highly desirable Zebrino marble from Northern Italy.

Fox Marble sold, and received payment for, 441 tonnes of Alexandrian Blue extracted in December 2018 to a single customer. Following this order, the Company entered into a sales agreement with this customer to purchase Alexandrian Blue with an expected value over 1m over the next  twelve  months. 

 

Ten Entertainment (TEG.L) 220p £143m

FYDec18 update from UK based operator of 43 family entertainment centres.

The Group performed well during the full-year, achieving total sales growth of 7.5%to £76.35m.

Like-for-like sales growth was 2.7%, which demonstrates the strength of consumer demand, despite the significant impact of unprecedented hot weather during the summer period. 

The Group has made further progress with the expansion of the estate with the acquisition of four sites, which was at the upper end of the acquisitions forecast. All four sites have been extensively refurbished during FY18 and are expected to perform in line with our expectations during FY19.  In addition, one under-performing site was disposed of during the year.

 

XL Media (XLM.L) 71.9p £162.8m

The “provider of digital performance marketing services, provided an update for the year ended 31 Dec 2018.

XLMedia confirms that trading in the second half of 2018 continued to strengthen with the Group proactively focusing on higher margin business.  As a result of this overall margin improvement, the Group expects to report EBITDA in line with current market expectations, achieved against lower revenue base of approximately $118m. The Company has a material cash balance and continues to generate strong cash flows from operations.

The Company is focused on growing the higher margin publishing division within its key strategic verticals: Gaming (including the newly re-regulated US Gambling market), and Personal Finance. The Company looks forward to providing a more detailed update to the market as part of the full year results announcement.

 

Taptica (TAP.L) 179.5p £125.1m

echnologies for performance-based mobile marketing and brand advertising, reported that it closed the financial year to 31 Dec 2018 in line with management expectations.

As at 31 Dec 2018, the Company had net cash of $54.4m, which was following a $2.7m dividend paid to shareholders on 20 Nov 2018 (30 June 2018: $42.1m ).

Further to the announcement made on 3 Jan 2019, the Company can confirm that it remains in discussions with a potential acquisition target. Further announcements will be made in due course and there can be no certainty that any transaction will follow or regarding the terms of any such transaction.

FYDec18E rev $220m and PBT $22.55m. PE c.5x.

 

Frontier Smart Tech (FST.L) 33.5p £12.22m

Unaudited trading update for the year ended 31 Dec 2018  from the Pioneer in technologies for Digital Radio and Smart Audio devices

The Group expects to report a much improved second half and a FY 2018 financial performance broadly in line with current market expectations. Revenue for the financial year is expected to be not less than $41.m and EBITDA is anticipated to be c.$1.4m.

Frontier’s priorities are to:

Maximise Digital Radio cashflows

Control R&D expenditure and leverage ecosystem relationships in Smart Audio

Establish a Licensing business, which exploits the Group’s multi-ecosystem software and cloud assets, to address the opportunities in Smart Audio and Smart IoT

 

Synairgen (SNG.L) 16.1p £14.77m

Pharmaxis has reported receipt of all data for the LOXL2 inhibitor candidates in three-month toxicity studies.  These data complete the overall package required for Pharmaxis’ partnering discussions.

In Nov 2018 Pharmaxis announced the successful completion of the Phase I single and multiple ascending dose trials of their two LOXL2 inhibitor compounds.  Data from the Phase I trials support once daily oral dosing and demonstrated best-in-class inhibition of the LOXL2 enzyme. Together with preclinical data in models of fibrosis, this package shows the potential of these compounds to target diseases associated with LOXL2 such as Non‐alcoholic Steatohepatitis (NASH) and idiopathic pulmonary fibrosis (IPF)

 

 

Arena Events (ARE.L) 38.2p £88.1m

The Board expects revenues for the year ended 31 Dec 2018 to be in-line with expectations but as a result of the increased costs in the UK division in the fourth quarter, the Board now expects Adjusted EBITDA for the year ended 31 Dec 2018 to be in the range of £12m to £12.5 m. Notwithstanding, the Group still expects to report approximately 25% growth in Adjusted EPS for 2018 over the prior year. The Group enters 2019 with a number of new contracted projects and a full year contribution from acquisitions which is expected to result in a material increase in earnings for the year to 31 Dec 2019.  However, as a result of the impact of the UK operational issues, wider economic uncertainty and a prudent view on the timing of a number of large potential one off contracts, the Board is taking a more conservative outlook for 2019.

Serabi Gold (SRB.L) 37p £19.15m

The Brazilian focused gold mining and development company, provided the results and a review of its fourth quarter operational and exploration activities in the Tapajos region of Para State, Northern Brazil.  Fourth quarter gold production of 10,256 ounces of gold represents record quarterly production for Serabi. Annual gold production totalling 37,108 ounces is an improvement on 2017 production. Highest level of mined tonnage for 2018 achieved in fourth quarter with a total of 44,257 tonnes at 7.45 g/t of gold.  2,460 metres of horizontal development completed during the quarter, giving a total of 10,371m for the year.

A series of discrete “apparent conductivity” anomalies have been delineated by the analysis of the airborne magnetic and electromagnetic survey flown during the third quarter of 2018.  These anomalies are indicative of probable sulphide bodies which the Company hopes will be gold bearing.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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