Small Cap Feast

Small Cap Feast – 17 January 2020

Set Menu AIM:

Total number of AIM Companies (Incl Susp):

Total number of AIM Companies trading: *
* As at

Set Menu NEX Growth:

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

Total number of NEX Growth Market Companies trading: *
* As at

Set Menu Standard List:

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

Total number of Standard List Companies trading: *
* As at

Dish of the Day:

No Joiners Today


Off the Menu:

Amerisur Resources has  left AIM following an acquisition by GeoPark (NYSE:GPRK)


Dish of the Day:

Off the Menu:

What’s Cooking in the IPO Kitchen?


Intention to float by Gemfields Group. No Capital Raise. Currently listed on JSE. (GML:JNB) at circa £122m.  The Group’s key producing assets, the Kagem emerald mine in Zambia  (believed to be the world’s single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world), are both expected to have long mine-lives with potential for expansion. Also owns the  Faberge brand. Due Valentines Day 2020.

Main Market (Standard List)

The Proof Of Trust has announced its intention to list on the Standard Market.  The Blockchain based business, owns patents to a protocol which facilitates dispute resolution based upon smart contract disputes.  Transaction details TBC.

Main Market (Premium)

Calisen Group. Potential Intention to Float. Owner and manager of essential energy infrastructure assets through its subsidiaries Calvin Capital and Lowri Beck . Consolidated FY Dec 18 revenue £162.1m and operating profit £25.4m. Raising up to £300m in primary plus partial vendor sale.  Expected Admission February 2020

The Global Sustainable Farmland Income Trust will invest in a diversified portfolio of operational farmland assets located in major agricultural markets including the United States, Europe, New Zealand, Australia and certain countries within Latin and South America. Raising up to $300m.   Due 28 February.

Main Market (Specialist Funds)

Investment firm Nippon Active Value fund is seeking to raise up to £200m at an issue price of 100p per share via an IPO.   The company aims to invest in a portfolio of quoted Japanese stocks with market capitalisations of up to $1bn.   First day of dealings expected early February.


Breakfast Buffet

Ananda Developments (NEX:ANA) 0.235p £0.98m

Corporate update. Capital Raising by Ananda investee company, iCAN Israel-Cannabis.  iCAN has secured additional financing from Tress Capital Limited and Plaza Capital Limited through a convertible Loan  note at a pre-money valuation for iCAN of USD20m. Ananda invested USD200,000 in convertible loan notes issued by iCAN in August  2018. On 8 January 2020, USD100,000 of Ananda’s convertible loan notes were automatically converted into 120 ordinary shares in iCAN, at a valuation for iCAN of USD10m. Separately  DJT Plants has received council planning permission for the development of the greenhouse and associated reservoir and fencing works for its proposed cannabis plant breeding and propagation programme.  The precise location was chosen in  order to best meet any security requirements that may be set by the Home Office.


Ncondezi Energy (NCCL.L) 5.16p £16.9m

Update on its power tariff finalisation and submission process for the integrated Ncondezi 300MW coal fired power project and coal mine in Tete, Mozambique.

Tariff financial model on track for submission to Strategic Partners at the end of January 2020.

Targeting competitive tariff rate in line with recently agreed tariff rates with Electricidade de Moçambique (“EDM”).

Supporting EPC information received and under review by Ncondezi technical team.

Supporting O&M information currently under optimisation process with Strategic Partners.

Tariff submission remains on track for Q1 2020.

Target tariff negotiation finalisation expected during H1 2020 .


Record (REC.L) 40p £79.6m

The specialist currency manager, today announced a trading update for the three months ended 31st December 2019.


  • Assets under management equivalents (“AUME”) expressed in US dollars grew by 8% over the period to $64.7 billion as at 31st December 2019.
  • Net inflows of $2.5 billion in the period, of which $1.0 billion relates to a tactical bespoke mandate as previously announced.
  • Client numbers increased by 3 over the period to 73.
  • Management fee rates remained broadly unchanged, and performance fees of £1.8m were earned in the third quarter.


Novacyt (NCYT.L) 15p £8.7m

 The international specialist in clinical diagnostics, announces its molecular testing division, Primerdesign Ltd), has signed an exclusive commercial agreement with Atothis SARL, part of VGS Invest Holding Sarl Group, for the distribution of certain molecular diagnostic products in France for the growing aquaculture and aquamarine markets. France is the second largest aquaculture producer in the EU, with shellfish production alone contributing a total of 155,000 tonnes a year valued at approximately EUR550m to the French economy.

The agreement has an initial term of three years and commits VSG to purchase a minimum of EUR690,000 of Primerdesign products.


Devro (DVO.L) 173p £289m

One of the world’s leading manufacturers of collagen products for the food industry, issued a trading update for the year ended 31 December 2019.


Full year edible collagen volumes were flat, with the Group delivering overall volume growth of 1% in the second half (“H2”). Slightly lower than anticipated H2 volumes, less favourable country mix combined with a smaller than expected FX benefit due to the strengthening of sterling means Devro now expecst to report underlying operating profit for the year in the range of £39 – £40m.

Cost saving initiatives continued to deliver well and expects  £7m savings in FY 2019. Leverage at the year-end improved following positive working capital movements and we expect to report covenant net debt / covenant EBITDA of less than 2x as at 31 December 2019.

2020—Expects strong emerging market volume growth, good volume growth in North American Snacking market, challenging conditions in Europe.


Itaconix (ITX.L) 1.325p £3.6m

The innovator in sustainable specialty polymers, announces that the Company and Nouryon have mutually agreed to terminate their agreement for Nouryon to exclusively distribute Itaconix polymers with chelating properties worldwide for detergent applications.

The Company’s agreement to supply Itaconix’s proprietary bio-based polymer to Nouryon for personal care applications continues unchanged. The Company’s direct sales of polymers and pipeline of active customer projects with detergent brands and producers also continue unchanged.

Detergent polymers sold directly to detergent producers by Itaconix generated £0.7m of the £1.1m in 2019 unaudited revenues announced by the Company last week, representing 68% of total revenues and 37% revenue growth from 2018.

“A healthy sign of an effective collaboration is knowing when a particular  arrangement is unlikely to meet joint expectations.  Our direct efforts to advance our customer projects for detergent polymers have produced strong revenue growth and a deep pipeline of new opportunities that we are confident will generate continued success in 2020 and beyond.”


Character Group (CCT.L) 326p £69.7m

AGM Statement

The 2019 Christmas trading period was extremely challenging with the total toy market in the UK contracting for the second successive year, and those conditions will impact our results for the first half of the financial year.  Sales of our core products were down against the comparable period last year.  Nevertheless they performed well with good sell through at retail in the UK.

We enter the 2020 calendar year with a very strong product portfolio and, although the first half results will be below last year, we anticipate that the Group will deliver one of our strongest second half performances to date.  Our confidence for the second half has been boosted by the reactions from our customers to recent product previews and presentations.  With further viewing opportunities and product launches planned for the London Toy Fair, which takes place next week at Olympia, we expect the momentum to continue.

Despite the anticipated strong finish to the current financial year, the weakened Christmas performance has led the Board to believe that the Group’s profit before tax for the year ending 31 August 2020 will be circa £10m, which is lower than current consensus expectations.”


dotDigital (DOTD.L) 97p £289m

The ‘SaaS’ provider of an omnichannel marketing automation and customer engagement platform, announces  has appointed Michael  O’Leary to the Board as Non-Executive Chairman, effective immediately.

The appointment of Mike brings to the Board a wealth of leadership and PLC experience. His career spans over 30 years serving on AIM listed, FTSE 250 and FTSE 100 companies, with a focus on the technology sector. Mike is a Non-Executive Director of Epwin Group plc, and due to retire from his role as Non-Executive Chairman of EMIS Group plc in May 2020, following a nine-year tenure. Mike will also chair the Nomination and Risk Committees.


UniVision (UVEL.L) 1.75p £6.7m

The Hong Kong based group whose principal activities are the supply, design, installation and maintenance of CCTV and surveillance systems, and the sale of security related products, announced that, further to the sub-contractor announcement on 19 November 2019, it has now also entered into a cooperation framework agreement with China Railway Engineering (Hong Kong)  & China Railway Wuhan Electrification Engineering Group Limited  Joint Venture,  providing a framework for cooperation on other future projects.


Barkby Group (BARK.L) 41.5p £56.12m

The diversified business group, announced the site in Huntingdon, Cambridgeshire referred to in the Company’s AIM Admission Document dated 19 December 2020 has progressed from being in legal negotiations to having exchanged contracts.

It is proposed that the Company will develop a 43,410 sq. ft. mixed-use development trade and retail scheme, with a national builders merchant anchoring the site. Under the proposed development the Huntingdon site has an estimated gross development value of £10.7m.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.

The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.

The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).

Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.

This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.

Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.

Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.

MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.

Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.

If you would like to unsubscribe, please email with “unsubscribe me”.