Small Cap Feast

Small Cap Feast – 18 September 2019

Dish of the Day:

No Joiners Today

Off the Menu:

Avanti Communications (AVN) – the Cancellation from admission to trading on AIM of Avanti’s Ordinary Shares, was duly passed by the requisite majority in the AGM on the 05/09/19

Acacia Mining (ACA) –  has delisted due to being acquired by Barrick Gold. For every Scheme Share: 0.168 New Barrick Shares and any Acacia Exploration Properties Special Dividends and any Deferred Cash Consideration Dividends

What’s Cooking in the IPO Kitchen?


AMRYT PHARMA PLC— a biopharmaceutical company focused on developing and delivering innovative new treatments to help improve the lives of patients with rare or orphan diseases have raised $60m before expenses and will relist on the AIM Market on the 25/09/2019

Main Market Standard

VAALCO Energy, Inc. (NYSE: EGY), an independent energy company focused on development and production assets in West Africa, today announces its formal intention to seek a Standard Listing on the Main Market of London Stock Exchange (“LSE”), to complement its existing Listing on the New York Stock Exchange., the largest Payments, Marketplace and Fintech Ecosystem in Kazakhstan with a leading market share in each of its key products and services, announces today the expected publication of a registration document that has been submitted for approval to the FCA and its potential intention, subject to market conditions, to undertake an initial public offering .

Breakfast Buffet

Yourgene Health PLC (YGEN) 11.50p £69m

Yourgene, a leading international molecular diagnostics group, announces the launch of the Company’s first oncology product, the Elucigene DPYD assay, a new chemotoxicity diagnostic assay.  

Elucigene DPYD is a simple-to-use genotyping test that can identify cancer patients with Dihydropyrimidine Dehydrogenase deficiency, which can cause severe and sometimes lethal side effects in patients being treated with chemotherapeutic drug 5-Fluorouracil (5-FU), commonly used in the treatment of colon, oesophageal, stomach, pancreatic, breast and cervical cancers. 5-FU is metabolized by the DPD enzyme which is encoded by the DPYD gene.

An estimated twom people globally are treated with fluoropyrimidines (including 5-FU) each year1, with between 10-30% of these patients suffering severe side effects associated with DPD deficiency2, and up to 1% of patients treated with 5-FU are estimated to die as a result of DPD deficiency2.

Science in Sport PLC (SIS) 54.5p £65m

Science in Sport plc, the premium performance nutrition company serving elite athletes, sports enthusiasts and the gym lifestyle community, is pleased to announce its unaudited results for the 6 months ended 30 June 2019.

Group revenue increased 150% to £24.87m (H1 2018: £9.93m), reflecting the first full six-month contribution from PhD Nutrition Ltd (“PhD”), following its acquisition on 6 December 2018, and strong organic growth from the SiS brand

16% like-for-like increase in PhD revenue to £12.40m (H1 2018 pro forma: £10.68m*), representing record growth for the PhD brand

26% increase in SiS revenue to £12.47m (H1 2018: £9.93m) up from 20% growth in H1 2018

56% growth in total revenue from international markets (H1 2018: 49%), which now accounts for 33% of total revenue across both brands

PhD performing in line with expectations; the integration of the PhD and SiS brands is progressing well; both brands are benefiting from shared distribution channels and the opening of an e-commerce fulfilment facility at our Nelson site

Keywords Studios PLC (KWS) 1,355p £921m

Keywords Studios, the international technical services provider to the global video games industry, today announces that it has entered into an agreement to acquire the entire equity share capital of TV+SYNCHRON Berlin GmbH from Thomas Wolfert (the “Seller”), a veteran of the German dubbing industry. The acquisition is expected to complete, subject to certain conditions being fulfilled, on 1 October 2019.  

Based in Berlin, Germany, TVS has over 25 years of experience of dubbing and localizing content into German, working across a wide range of media and formats. With a reputation for high quality and a highly specialized team across multiple disciplines, TVS is one of the top German voice over service providers with clients include the likes of HBO, Warner Bros., Cartoon Network, Amazon and many others. TVS is also a Gold-rated Netflix Post-Production Partner (NP3) for German Dubbing Lip Sync services.

Safestay PLC (SSTY) 32.50p £20.70m

Safestay, the owner and operator of an international brand of contemporary hostels, announced that it has agreed to acquire the freehold of its fifteenth hostel, currently operating as ‘Best Western Glasgow City Hotel’, for £3.15m. Completion of the acquisition is expected to take place on 21 October 2019.

The acquisition of the 52-bedroom hotel is part of the Group’s strategy to create a pan-European network of premium hostels in leading cities. Located on Elmbank Street in the heart of the City, the hotel is a short walk from Charing Cross railway station providing fast transport links to Edinburgh and other regions.

Safestay already operates a successful site in Edinburgh and therefore the acquisition of Safestay Glasgow is a natural extension enabling the Group to market both cities. As with the acquisition of other hotels by Safestay, the Company intends to convert this site into a hostel and outline planning permission already exists for conversion into a 200 bed hostel.

ATTRAQT Group (ATQT) 35.50p £62m

Attraqt Group plc, the provider of SaaS solutions that power exceptional online shopping experiences, announce its unaudited results for the six months ended 30 June 2019.

Revenue increased 7% to £9.0m (HY2018: £8.4m)

Gross profit increased by 35% to £6.6m (HY2018: £4.9m)

Adjusted EBITDA1 profit was £0.3m (HY2018: £0.2m loss)

Loss before tax was £1.9m (HY2018: £1.8m)

Transformational acquisition of Personalisation Platform provider, Early Birds SAS, completed on 29 May 2019

11 multi-year contracts with a total renewal value of £3.9m in H1 2019 (HY 2018: 4 contracts worth £0.3m)

Annual Recurring Revenue increased to £18.9m (HY2018: £15.2m)

Osirium Technologies (OSI) 53.50p £7.52m

Osirium Technologies plc, a leading provider of cloud-based Privileged Access Security solutions, today announced its interim results for the six months ended 30 June 2019.

Total bookings, the KPI, increased 69% to £1.03m (H1 2018: £0.61m), demonstrating accelerating traction

Total revenue increased 11% to £0.52m (H1 2018: £0.47m), with deferred revenue increasing 70% to £1.24m (H1 2018: £0.73m), providing good visibility into future periods

Operating loss of £1.71m (H1 2018: loss of £1.36m), in line with management expectations and following significant investment in R&D and sales & marketing to support future growth

Cash and cash equivalents as at 30 June 2019 of £0.89 million (H1 2018: £3.34 million). The cash balance as at 30 June 2019 excludes the 2018 Research and Development tax credit of £0.47 million, which has been received post period end.

AFH Fin Group (AFHP) 292p £124m

AFH Financial Group plc, a leading financial planning led wealth management firm, announces it has completed the acquisition of Broadleaf Financial Services Limited, an IFA business based in the Wirral, for a maximum consideration of £3.2m, subject to performance criteria of Broadleaf during the two year earn out period.

Under the terms of the acquisition, four advisers from Broadleaf will join AFH together with their support staff, bringing their clients and £140m of Funds Under Management. The initial consideration for the acquisition is £1.7m and was paid from existing cash reserves, with the balance payable in cash over a 26-month period. Following the acquisition, John Shaw, principal adviser and Director and one of the founders of Broadleaf, together with his fellow directors, have retired from the business.

Warehouse REIT (WHR) 103p £247m

Warehouse REIT, the AIM-listed specialist warehouse investor, announces the purchase of an eight asset fully-let portfolio of reversionary warehouse and distribution assets, from Aviva Investors, for £70m. Producing an annual rent of £5.38m, the purchase price reflects a net initial yield of just over 7%. An additional deferred payment of up to £5m is due on or before September 2023.   

The portfolio comprises one multi-let and seven single let warehouses providing a total floor area of 995,106 sq ft, with individual units ranging from circa 50,000 to 217,000 sq ft. The occupiers include the strong covenants of Iron Mountain, Direct Wines, the Sytner Group and Amazon. The portfolio has a WAULT of circa 5.3 years and a low average rent of £5.40 psf.

Hutchison China Medi (HCM) 335p £2,223m

Hutchison China MediTech, shares additional analyses from three completed and ongoing clinical studies of fruquintinib and savolitinib at the 22nd Annual Meeting of the Chinese Society of Clinical Oncology on September 18 to 22, 2019 in Xiamen, China.

Fruquintini (Elunate®): Two subgroup analyses will be presented from the FRESCO study, a randomized, double-blind, placebo-controlled, multi-center, Phase III study of fruquintinib efficacy and safety in third-line or above colorectal cancer (“CRC”) patients.

H&T Group (HAT) 371.50p £148m

H&T Group announced the appointment of Martin Pugh as an executive director of H&T Group plc with effect from 1 October 2019.  This appointment is subject to the requisite regulatory approvals.

Pugh joins H&T having previously been a managing director at Grosvenor Casinos and Mecca Bingo, prior to which he was MD of Virgin Active and Camelot UK Lotteries.  This experience will provide strength to the H&T board going forward, given his successful background.

Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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