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


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

*A corporate client of Hybridan LLP


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