Small Cap Feast

Small Cap Feast – 18 July 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 888

Total number of AIM Companies trading: 807*
* As at 15 July 2019

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 88*

Total number of NEX Growth Market Companies trading: 86*
* As at 15 July 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 165*

Total number of Standard List Companies trading: 143*
* As at 15 July 2019

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What’s Cooking in the IPO Kitchen?

Main Market (Specialist Funds)

Voyager AIR  The Company will focus on the acquisition, leasing and management of primarily widebody aircraft, with asset management services to be provided by Amedeo Limited the IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m.

AIM

Roxi Music UK music streaming service plans London IPO as it goes up against Spotify. They have appointed investment bank Arden Partners for an initial public offering (IPO) on the London Stock Exchange later this year.

NEX

Freyherr International Group PLC the Medicinal Cannabis holding company established in 2016,  is planning to list on the NEX exchange on the 30th July

Breakfast Buffet

SimiGon Limited (SIM) 9.25p £4.70m

SimiGon, a global leader in modelling, simulation and training solutions, announced that it was awarded with a further strategic contract by the United States Air Force (“USAF”) to provide SIMbox-based T-6A Mixed Reality (MR) training devices for USAF Undergraduate Pilot Training (UPT) at Laughlin Air Force Base (the “Contract”).

MR enhances pilot training by blending virtual and physical worlds, for example trainees using the devices will be able to see their hands physically interact with the simulated cockpit while being fully immersed in a high-fidelity virtual environment. Trainees will be able to train individually and collectively, for example, in formation and tactical scenarios, using SimiGon’s Distributed Mission Training (DMT) technologies. Instructors will be able to track trainee progress using SimiGon’s advanced data analytics capabilities.

This Contract further establishes SimiGon’s training systems as incremental to USAF and international military aviation customer’s efforts to accelerate pilot training throughput and better address pilot shortages worldwide. By providing student pilots cost-effective, realistic training systems, significantly enhanced by VR and MR, SimiGon’s technologies and capabilities address this market opportunity.

The expected revenue from the Contract has already been factored into management’s expectations for the year ended 31 Dec 2019

Eagle Eye Solutions (EYE) 170.50p £43.42m

Eagle Eye, a leading SaaS technology company that creates digital connections enabling personalised, real-time marketing through coupons, loyalty, apps, subscriptions and gift services, announced the following trading update ahead of its audited results for the year ended 30 June 2019, which are expected to be announced on 17 Sept 2019.

Group revenue growth of 23% to £16.9m (2018: £13.8m)

EBITDA of £0.7m (2018: EBITDA loss of £(2.0)m), ahead of the Board’s expectations

Net debt of £(1.2)m at 30 June 2019 (30 June 2018: £0.4m net cash), better than management expectations and £0.6m net cash generated in H2 2019

Eagle Eye AIR platform revenue growth of 32%, being 94% of Group revenue (2018: 88%)

Recurring revenue, from subscription fees and transactions over the network, represented 71% of total revenue (2018: 77%), due to higher one-off implementation fees with larger clients

Customer churn reduced to 0.8% (2018: 1.7%)

5 year contract signed with Waitrose & Partners

Redemption and interactions were 847m for the Period (2018: 404m), a 110% increase

Board remains confident in the ongoing success of the business.

Fox Marble Holdings (FOX) 6.85p £15.83m

Fox Marble, the company focused on marble quarrying and processing in Kosovo and the Balkans region has suspended operations in its Malesheva quarry in Kosovo pending a resolution to the dispute disclosed on the 26 June 2019.

In the meantime Fox Marble is concentrating on its operations in the Cervenilla and Syrigane quarries in Kosovo which contain its desirable Grigio Argento, Flora, Rosso Cait, Etrusco Dorato and Breccia Paradisea stone.  In addition the Alexandrian White and Alexandrian Blue material from its quarry in Macedonia continues to attract more demand around the world with increasing sales due to increased production.

The Company, based on legal advice, continues to believe that the claims challenging the enforceability of the acquisition agreement of Green Power and Scope are wholly unfounded.

“We are working hard to resolve this temporary difficulty in this one quarry and believe that our rights will be asserted successfully as has been the case in the past.  In the meantime I anticipate that orders for our processed material from our factory will increase and we will update the market with growing sales of this higher margin part of our business”.

Scientific Digital Imaging (SDI) 53.50p £52m

Scientific Digital Imaging plc, the group focused on the design and manufacture of scientific and technology products for use in digital imaging and sensing and control applications, announced its final audited results for the year ended 30 April 2019.

Revenue increased by 20% to £17.4m (2018: £14.5m)

Organic revenue growth of 5% with similar performance from both segments

Gross margin at 66.1% (2018: 65.8%)

Adjusted profit before tax increased by 32% to £3.0m (2018: £2.3m)

Profit before tax increased by 24% to £2.1m (2018: £1.7m)

Cash generated from operations increased by 28% to £3.6m (2018: £2.9m)

Net debt at 30 April 2019 of £1.6m

Strix Group PLC (KETL) 160p £304m

Strix Group, the global leader in the design, manufacture and supply of kettle safety controls and other complementary water temperature management components, announced the following trading update for the six month period ended 30 June 2019.

The Group has delivered a solid performance for the period and the Board confirms that it expects to report results in line with market expectations for the financial year. The Group expects to report growth in Adjusted Profit after Tax and a good net debt position given the cash committed to the new manufacturing facility, the acquisition in March 2019 and the increased dividend to shareholders.

Aeorema Comms Plc (AEO) 26p £2.35m

Aeorema Communications plc, the live events agency, is pleased to provide a trading update further to its announcement of 16 May 2019; this reported strong trading in the second half of the financial year to 30 June 2019, with record revenues that would exceed market expectations and profits anticipated to be broadly in line with market expectations.

Following a strong end to the fourth quarter, the Company announced that PBT for the year ended 30 June 2019 is expected to exceed £350,000, which is ahead of market expectations, on expected revenue of circa £6.7m. These numbers are subject to final audit.

Aeorema maintains a strong cash position and intends to pay a full year dividend, subject to the final audited results for the year, which are expected to be announced during Nov 2019.

Young & Co's Brew. (YNGA) 1,612p £685m

Young’s announced the appointment of Simon Dodd as a Director in the newly created role of COO.

Simon has a wealth of experience, having spent more than a decade working in the pub and brewing sector. Most recently, Simon was a director of Fuller’s and managing director of their beer company, having previously been operations director of their premium city pubs division. Prior to joining Fuller’s, Simon was at the Orchid Pub Company where he held the role of chief operating officer following his promotion from the position of commercial director.

Simon will join the Board of Young’s on 2 September 2019, reporting to Patrick Dardis.

Scotgold Resources (SGZ) 35.50p £16.20m

Scotgold announces that it has decided not to extend the Pomar Exploration Licence in Portugal and has applied to the Director General of Energy and Geology (“DGEG”) to terminate the License.

As announced on 26 Feb 2019, Scotgold’s ‘earn in’ agreement on Pomar was terminated. Scotgold continues to believe in the potential of the Pomar licence and has enjoyed a constructive working relationship with the DGEG, however the exploration results to date, including the most recent soils sampling, suggest a significant further work program would be required to realise this potential. As the Company’s short term focus is on the successful development of the Cononish Gold and Silver Mine, (the “Cononish Project”) and advancement of the encouraging exploration results in the vicinity of the Cononish Project, the Company has taken the decision to terminate the License and minimise further expenditure at this time.

Oakley Capital Inv. (OCI) 240p £490m

Oakley Capital Investments Limited, which provides its shareholders with access to a portfolio of high quality companies through its investments in the Oakley Funds2, today announces its intention to apply for admission of its ordinary shares to the Specialist Fund Segment of the London Stock Exchange’s Main Market. Pursuant to Rule 41 of the AIM Rules for Companies, the Company hereby gives notice of the intended cancellation of trading of its Ordinary Shares on AIM.

Karelian Diamonds* (KDR) 3.65p £1.26m

Karelian Diamonds was informed on 17 July 2019 that, on 16 and 17 July 2019, Brendan McMorrow, a director of the Company, purchased a total of 285,000 ordinary shares of 0.00025 each in the Company at an average price of 3.70p per Ordinary Share. Mr McMorrow now holds 285,000 Ordinary Shares, equivalent to 0.77% of the ordinary share capital of the Company (as enlarged by the issue of the 2,500,000 new ordinary shares in relation to the subscription by the Company to raise £100,000 announced on 15 July 2019 and for which admission to trading on AIM is expected to take place on 19 July 2019).

Head Chef:

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

*A corporate client of Hybridan LLP

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