Small Cap Feast

Small Cap Feast – 18 April 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 897

Total number of AIM Companies trading: 826*
* As at 12 April 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 12 April 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 161*

Total number of Standard List Companies trading: 141*
* As at 12 April 2019

Dish of the Day:

Blencowe Resources: The Company was formed to undertake an acquisition of a target company or business.  Raised £740k at 3p. Mkt Cap £1.3m. BRES. Main market/Standard.

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

Rustranscom plc— specialised rail freight transportation in Russia and Kazakhstan, announced its potential intention to conduct an IPO of GDRs. The GDRs are expected to be admitted to the Official List of the FCA and to trading on the main market of the LSE. Offering is expected to comprise predominantly primary shares, in the amount of circa $300m.

Finablr plc— global platform which provides Cross-Border Payments and Consumer Solutions, Consumer Foreign Exchange Solutions and B2B and Payment Technology Solutions to consumers and businesses in the large and growing payments and foreign exchange market is looking to list on the Main Market plans to raise $200m

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

AIM

Techniplas –global  producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient.  FYDec17 rev $515m.

Loungers plc—the operator of 146 café/bar/restaurants across England and Wales under the Lounge and Cosy Club brands, announces its intention to seek admission on AIM, offer TBC, expected late April.

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

 

Breakfast Buffet

Silence Therapeutics (SLN.L) 57.7p £41.05m

The specialist n the discovery, development and delivery of novel RNA therapeutics for the treatment of serious diseases, announced the appointment of Rob Quinn as full time CFO, effective immediately.

Dr. Quinn has served as the Interim CFO of Silence since Jan 2019, having been the Head of Financial Planning and Analysis at the Company for the two years prior to this. He has a wealth of both financial and scientific experience and before joining Silence he held a senior role at GSK, as Area Finance Director for Africa & Developing Countries. Dr. Quinn is a Chartered Accountant and qualified at  Deloitte, including time spent working in corporate finance advisory within the life sciences sector. He also holds a PhD in Biochemistry from the University of Manchester. Dr. Quinn will not be appointed to the Board of Directors.

 

RWS Holdings (RWS.L) 563p £1,482m

HY Mar 19 update from one of the world’s leading language, intellectual property support services and localisation providers.

RWS has performed strongly during the first half with record revenues of £172.3m, compared to £139.6m in the first half of 2018, an increase of 23% or 10%1 on an underlying like-for-like basis.  

Adjusted PBT  is expected to be not less than £35.5m, a 24% increase over the prior year (2018: £28.6m). This growth has been driven by stronger results from RWS Moravia and an improved performance at RWS Life Sciences. The Group continues to enjoy excellent cash generation and net debt has reduced to £63.9m (31 March 2018: £82.8m; 30 Sept 2018: £65.1m). This follows the US$6.0m acquisition of Alpha Translations Canada Inc. on 17 Jan 2019, and the final dividend payment of £16.4m for the financial year ended 30 Sept 2018

D4T4 (D4t4.L) 271p £109.04m

FY Mar 19 update from the data solutions specialist

Group revenue of c. £25m

Adjusted profit expected to be slightly ahead of market expectations

Group margin remains consistently strong

Strong balance sheet net cash position £11m

D4t4 enters the new financial year in robust shape

Encouraging pipeline & opportunities ahead

Remain confident in our strategy, prospects and future performance.

 

Conygar Investment (CIC.L) 157p £87.6m

A resolution to grant planning permission for Conygar’s mixed use scheme in the centre of Nottingham has been passed.

Nottingham City Council has resolved to grant permission for development of over two million square feet including offices, apartments and student housing. The permission will be formally granted upon the signing of a S.106 agreement between the parties.

“We are delighted with the decision of the planning committee which follows a long period of consultation with the Council and other local stakeholders. This is a significant step toward the redevelopment of this important site for Nottingham and we will continue to work closely with the Council to bring the scheme forward as soon as possible.”

 

Shanta Gold (SHG.L) 6.65p £53.54m

The East Africa-focused gold producer, developer and explorer, announces its production and operational results for the quarter ended 31 March 2019.

Gold production of 22,374 ounces, comfortably on track to meet annual guidance of 80,00084,000 oz;

All In Sustaining Costs (“AISC”) of US$701 /oz, significantly ahead of annual guidance of US$740-780 /oz;

Cash operating costs of $500 /oz;

Ilunga underground development ore intersected and mined from March 2019, three months ahead of schedule;

Unrestricted cash balance of $8.4 m (Q4 2018: $9m);

Annual guidance reiterated for 2018 of 80,000−84,000 oz at AISC1 of $740-780 /oz.

 

Fast Forward Innovations (FFWD.L) 9.75p £15.5m

Investee Company Update: Intensity Therapeutics Inc.  FastForward has a current equity interest totalling 1.99% in the stock of Intensity.

Intensity Therapeutics, Inc., a clinical-stage biotechnology company pioneering a novel, immune-based approach to treat solid tumor cancers through direct injection of its proprietary therapeutic agents, announced that the U.S. Food and Drug Administration (FDA) has granted Fast Track designation to the Company’s development program evaluating INT230-6 for the treatment of patients with relapsed or metastatic triple negative breast cancer (TNBC) who have failed at least two prior lines of therapy.

 

Rockfire Resources (ROCK.L) 0.68p £3.03m

The precious and base metal-focused resource company, provided the following update on its field-based exploration activities in Queensland, Australia.

Soil sampling completes at Double Event. Assays currently under assessment.

Soil sampling has also been completed at the Cardigan Dam Prospect which lies within the Lighthouse tenement, also in Queensland, Australia. Cardigan Dam was explored in 1990 by Esso Australia, Aberfoyle and CRA Exploration. At that time, an electromagnetic survey was undertaken which identified a conductive feature. Rock sampling by previous explorers returned results including 11.4g/t, 5.6g/t and 5.4g/t Au.

Further soil sampling has now commenced at the Copper Dome Porphyry Copper Project in Central Queensland, to extend the soil sampling completed in late March 2019. As announced on 22 March 2019, strongly anomalous copper-in-soil was returned up to 779ppm Cu and the anomalism extends over the southern and western limits of the area surveyed in March.

 

Mosman Oil & Gas (MSMN.L) 0.47p £2.8m

The oil exploration, development and production company, advised that both Stanley-1 and Stanley-2 wells have now been completed in accordance with the previously announced completion plan. “Stanley-1 well was completed over a 10-foot perforation interval in a Yegua sandstone reservoir.   The recorded initial flow rate was approximately 330 BOPD.”

“The Stanley-2 well was completed over a 4-foot interval in Yegua sandstone reservoir that is slightly deeper than the reservoir completed in Stanley-1. Interpretation of wireline logs and sidewall cores obtained from the reservoir suggest the possibility of a small gas cap over an oil column. After completion operations were undertaken, the well commenced flowing rich gas to surface. The well is currently flowing a combination of gas and oil to surface, approximately 720 MCFGPD and 10-15 BOPD, or 130-135 barrels of oil equivalent per day (BOEPD). Early preferential gas production is not unusual for these reservoirs.”

 

De La Rue (DLAR.L) 441p £455.15m De La Rue announced

De La Rue announced the commencement of its joint venture with the Government of Kenya on its currency and secure printing site in Nairobi, the Republic of Kenya.

De La Rue is the world’s largest commercial currency and security printer and the joint venture strengthens and builds on the Group’s existing long-term strategic relationship with the Government of Kenya. The site in Nairobi will become a centre of excellence for banknote production and security printing as outlined in De La Rue’s manufacturing restructuring which is now nearing completion.

Under the terms of the agreement, the National Treasury of Kenya (the “Treasury”) has taken a 40% stake in De La Rue’s wholly owned subsidiary, De La Rue Kenya EPZ Limited. De La Rue will continue to operate and manage the business day to day and will appoint three of the five directors of the joint venture’s Board. The Treasury has nominated Mr Samuel Kairu Njonde as the first Chair of the Board and the Cabinet Secretary for the Treasury will be one of the five directors.

 

Topps Tiles (TPT.L) 77p £152.23m

Topps Tiles, the UK’s leading tile specialist, announced the acquisition of 80% of the issued share capital of Strata Tiles Ltd, a supplier of tiles to the commercial market. The acquisition also involves the grant of put and call options relating to the purchase by the Group of the remaining 20% of the issued shares in Strata, which are exercisable in 2021.

The acquisition of Strata will add additional scale to the Group’s fast-growing commercial business as it seeks to build a leading position in the commercial tile market.  Strata is expected to benefit from the Group’s competitive advantage as the UK’s leading tile specialist, particularly its product range and buying scale.

In the financial year ended March 2018 Strata reported turnover of £4.8m and profit before tax of £0.7m (unadjusted).  The value of the gross assets that are the subject of the transaction is £1.5m. Consideration for the acquisition will be financed from the Group’s existing bank facilities.

 

Head Chef:

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

*A corporate client of Hybridan LLP

Disclaimer

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 enquiries@hybridan.com with “unsubscribe me”.