Small Cap Feast

Small Cap Feast – 19 December 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp):

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Set Menu NEX Growth:

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Set Menu Standard List:

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Dish of the Day:

No Joiners Today

 

Off the Menu:

Scisys Group has left AIM following a takeover.

Verseon has  left AIM to continue as a private Company.

 

Dish of the Day:

Off the Menu:

What’s Cooking in the IPO Kitchen?

NEX Exchange

Greencare Capital  – Investment Vehicle –Hemp, CBD and Medicinal Cannabis . Due 30 Dec. No capital raise.

Main Market (Premium)


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

 

Breakfast Buffet

SDI Group (SDI.L) 80p £77.8m

HY Oct 19 results yesterday from  the group focused on the design and manufacture of scientific and technology products for use in digital imaging and sensing and control applications .·      Revenue increased by 42% to £11.45m (2018: £8.05m)

  • Revenue growth both organic (6.4%) and from acquisitions (35.8%)
  • Adjusted Operating Profit* increased 41% to £2.10m (2018: £1.49m). Adjusted Profit Before Tax increased 36% to £2.00m (2018: £1.46m)

–     Profit before taxation increased 27% to £1.52m (2018: £1.20m).    Adjusted diluted EPS increased 28% to 1.70p (2018: 1.33p)

  • Cash generated from operations increased 34% to £2.05m. Net debt at 31 October 2019 was £0.57m (Post period, SDI acquired Chell Instruments Limited for a consideration of £4.3m plus an additional cash payment for net assets at completion. “Despite the potential for economic variability, influenced by political conditions (including Brexit) and currency fluctuations, the Board is confident that our diversified portfolio of businesses is on course to deliver a full year financial performance in line with market expectations.”

 

Veltyco (VLTY.L) 3.5p £2.85m

 

The online marketing and operating company for the gaming industry, is pleased to announce that it has raised £500,000 (approximately EUR593,000) pursuant to a subscription for convertible loan notes (by Mr Peter Paul Westerterp. The Investor owns approximately 5.1% of the Company’s issued share capital and is the holder of the, in aggregate, EUR300,000 convertible loan notes issued in September 2019.

Veltyco has entered into a non-binding heads of terms with Binbar GmbH to acquire the 49% of Quasar Holdings Ltd  not currently held by the Company .

Consideration: ·        the issue of 5,000,000 new Ordinary Shares;

  • initial cash consideration of EUR200,000 and
  • ten monthly cash instalments of EUR30,000 . The results for Bet90 are already consolidated into the Group’s accounts and for the year ended 31 December 2018, Bet90 had revenues of EUR2.2 million and a loss of EUR3.1 million.  In the six months ended 30 June 2019, Bet90 had revenues of EUR1.6 million and a loss of EUR0.6 million and as at 30 June 2019, had net liabilities, excluding amounts due to the Company which are netted off on consolidation, of EUR1.0 million, reflect the accumulated losses.

 

Aquis Exchange (AQX.L) 415p £112.7m

“Following the announcement made on 5 July 2019 regarding the agreed acquisition of NEX Exchange Limited (“NEX Exchange”), Aquis Exchange PLC (AIM: AQX.L), confirms that it continues to await FCA approval.

The application is progressing and FCA approval is now anticipated to be received in early 2020. The Company will update the market further upon its receipt and completion of the acquisition.

Trading Update

The Company also announces that it expects to deliver results for the year ending 31 December 2019 in line with market expectations, despite a challenging market environment.

With FY2019 revenues set to increase by approximately 70% from the prior year and the Company approaching EBITDA breakeven, the Board believes that Aquis’ subscription-based business model is becoming well established. Market share in Europe has risen from 3.8% to 4.7% over the last 12 months and from 2.6% since the IPO in June 2018. “

Venture Life (VLG.L) 31p £25.95m

 Venture Life announces that it has agreed to acquire the entire issued share capital of PharmaSource BV, for an initial consideration of EUR5.23 million, and deferred contingent consideration of up to EUR1.27 million. PharmaSource owns a number of medical device products in key therapeutic areas including fungal nail infections, wart removal and women’s health. PharmaSource is a growing business and revenues for the year ending 31 December 2019 are expected to be in excess of EUR2.5 million (2018: EUR1.8 million), with Profit Before Tax in excess of EUR0.9 million.

Venture Life  expects its revenues for the year ending 31 December 2019 to be at least £20m and adjusted EBITDA to be at least £3.2m, before non-recurring operating costs of approximately £0.2m, principally relating to the restructuring of the Company’s finance team . The Company already has an overall order book in hand for the first quarter of 2020 that is more than EUR1m (and more than 40%) ahead of the same time last year. These factors, together with completion of the PharmaSource acquisition on an earnings accretive basis, provide an excellent platform for the Venture Life Group to continue to grow into 2020 and beyond.

 

Trackwise (TWD.L) 79p £11.7m

Pre-close Trading Update for the year ending 31 December 2019.

The Company expects to report revenues of approximately £2.9m and adjusted profit before tax of approximately 0.2m, subject to year-end financial close and audit procedures.

As previously announced, the Company’s Radio Frequency (“RF”) business has been adversely impacted during the year by customer specific events and the rhetoric between the USA and China on trade generally which has been negative for antenna revenues within the mobile telephony marketplace.

RF orders have shown some slight recovery in December, but too late to make an impact in the 2019 financial year, and there are initial positive signs for an improving outlook for the coming year. The Board is encouraged by the performance of the Company’s Improved Harness Technology TM division, with revenues showing considerable growth on 2018.

 

Plant Health Care (PHC.L) 7.88p £16.6m

Update on trading in 2019. Due to external factors, year end revenue is expected to be approximately $6.5m, which is short of expectation. This is primarily due to:

Supply of H2Copla to satisfy demand of $1.1M in sugarcane has been delayed until import licences are granted by the Brazilian authorities.

Forecast sales of around $1M of Harpin aβ for corn seed in USA have been postponed by the channel partner as they respond to working capital pressures after an exceptionally difficult year.

Underlying market demand remains strong, and other parts of the Company’s operations are unaffected.

Progress towards the first launches of products from PREtec (Plant Response Elicitor Technology) continues to be very promising, targeting markets worth more than $5 billion.

Following the recent fund-raise, the Company is well capitalised to manage the shift of revenue into the next financial year.

 

Focusrite (TUNE.L) 611p £355m

Acquisition of Martin Audio and associated companies, the designer and manufacturer of high-performance loudspeaker systems for the touring and installation markets. The total consideration to be paid is £39.2m for the business, which has approximately £4.0m of cash.  This will be funded through a combination of existing cash resources and a new loan facility of £40m with HSBC and Natwest

2018 Martin Audio’s turnover was £21.7m, with EBITDA of £2.6m and EBIT of £2.4m.  Net assets for Martin Audio as at 31 December 2018 were £4.1m.  In the 12 months to October 2019 (unaudited), Martin Audio’s turnover was £24.4m, with an EBITDA of £3.4m and EBIT of £2.9m.  he deal marks an exit for LDC, the private equity arm of Lloyds Banking Group, who backed the existing management team, led by Dominic Harter, to buyout the firm from global audio specialist Loud Audio in July 2018.

 

Circassia Pharma (CIR.L) 18.45p £69.13m

The specialty biopharmaceutical company focused on respiratory disease, provides an update on its licensing agreement with BeyondAir Inc. (previously AIT Therapeutics Inc.) for the commercial rights to the late-stage ventilator-compatible nitric oxide product LungFit PH (previously AirNOvent) in the USA and China.

Circassia has received a notice from BeyondAir stating that it has terminated the agreement for material breach. Circassia refutes the allegations in the strongest terms and believes there are no grounds to terminate the agreement. The Company will enforce its rights under the agreement and defend its position vigorously.

 

Westminster Group (WSG.L) 12.25p £17.8m

 We are pleased to report the Group experienced strong growth for the year, both operationally and financially and we expect to report a significant increase in revenues over the previous year, maintaining our double digit year on year growth we have achieved in recent years, leading to a much improved EBITDA.

375k warrants to be exercised at 12.5p raising £47k.

 

Bidstack Group (BIDS.L) 11.75p £28.8m

The native in-game advertising group, is pleased to announce that it has entered into a two year trading agreement with a global marketing services group commencing on 1 January 2020.

Under the terms of the agreement, the advertising group has agreed terms for gross media expenditure up to £10,000,000 per annum for the next two years.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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