Small Cap Feast

Small Cap Feast – 19 February 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 910

Total number of AIM Companies trading: 842*
* As at 18 February 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 18 February 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 145*

Total number of Standard List Companies trading: 128*
* As at 18 February 2019

Dish of the Day:

No Joiners Today

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 (Premium)

DWF, a global legal business,  expects to raise primary gross proceeds of approximately £75m. Due March

AIM

United Oil & Gas (UOG.L) an oil and gas exploration and development company brought to the Official List (Standard Segment) in July 2017 by way of a reverse takeover of Senterra Energy plc. No capital to be raised, expected market cap of £17m and expected 28 Feb

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.

Polemos, to be renamed Digitalbox plc, has agreed to acquire Digitalbox Publishing Holdings Limited for c.£10m through a share for share exchange. The acquisition constitutes a RTO. Polemos has also agreed to acquire the entire issued share capital of Mashed Productions Limited, a digital media business which owns the online satirical news website “The Daily Mash”, for a maximum total consideration of up to £1.2m. Market cap on admission £12.4m, expected 28 February

Breakfast Buffet

Arc Minerals (ARCM.L) 3p £18.34m

Arc announced that it has placed a total of 73,600,009 Units at 3.00p per Unit, each Unit comprising one (new ordinary share of no par value and one share purchase warrant. Each warrant will entitle the Holder for a period of 36 months to purchase one ordinary share at 4.50p per share.

The Company did not utilise any broker services and as a result no fees or commissions were paid in relation to the Placing for total gross proceeds of £2.2m.

Proceeds of the Placing will be used to fund the continuing exploration and development work on the Company’s Zamsort Copper Project in Zambia and for general working capital purposes.

 

Arix Bioscience (ARIX.L) 163p £219.95m

Arix Bioscience, a global healthcare and life science company supporting medical innovation, announced that CIO, Joe Anderson, has been reappointed as CEOand will re-join the Arix Board.

Jonathan Peacock, Executive Chairman, will become NEC and Sir Christopher Evans will retire from the Board, remaining a consultant to the Company. These changes will take place with immediate effect, recognising the continued strong performance of the portfolio and pipeline development

 

Ironveld (IRON.L) 1.88p £13.03m

Ironveld, the owner of a High Purity Iron, Vanadium and Titanium project located on the Northern Limb of the Bushveld Complex in Limpopo Province, South Africa, announced that it has raised £1.1m before expenses through a placing of  62,857,143  new ordinary shares of 1p each at a price of 1.75p each.

Placing to raise gross proceeds of £1.1m through the issue of 62,857,143Placing Shares at a price of 1.75p each.

The net proceeds of the Placing will put the Company on a stronger footing and cover its overheads as it continues detailed discussions with two potential development partners for the Project, who are currently engaged in an extensive due diligence process, and with the potential off-taker following completion of the bulk sampling programme.

 

Ten Lifestyle Group (TENG.L) 50p £40.33m

Ten Lifestyle Group, a leading technology-enabled lifestyle and travel platform for the world’s wealthy and mass affluent, announced it has won a new contract with Absa Bank Limited, a South African financial services provider, to provide digital and high-touch travel and lifestyle concierge services to its private banking clients in South Africa. Absa’s customers will primarily be serviced out of Ten’s Cape Town office.

The service is due to launch from March 2019 as a Small contract1 and is expected to grow into a Medium contract in the 2019/20 financial year.

Ten categorises its corporate client contracts based on the annualised value paid, or expected to be paid, by the corporate client for the provision of concierge and related services by Ten as follows:

Small contracts (below £0.25m); and

Medium contracts (between £0.25m and £2m).

 

Manolete Partners (MANO.L) 291p £118.73m

Manolete Partners, a UK insolvency litigation financing company, provided the following update on trading.

Since the announcement of the Company’s unaudited interim results in Dec 2018, trading has continued to be strong, driven by increased business activity levels, robust levels of case realisations and significant progress on larger projects, leading to an increase in the fair value of Investments. As a consequence, results for the year ending 31 Mar 2019 are likely to be ahead of current market expectations, with operating profit growth of approximately 70%.

In the financial year to date, the Company has invested in 55 new insolvency litigation cases (excluding two new Competition Cases) of which 48 have been purchased (87%) and 7 funded (13%). By way of comparison, Manolete invested in 29 insolvency litigation cases (excluding Competition Cases) for the whole of the financial year ended 31 Mar 2018.

In the financial year to date, 31 cases have been completed, generating Gross Proceeds of £9.2m.

 

Palace Capital (PCA.L) 309p £141.78m

Palace Capital, the property investment company that has a diversified portfolio of UK regional commercial real estate in carefully selected locations outside of London, has completed a 15 year lease for 12,800 sq ft with Soo Yoga Group at its Sol Northampton leisure scheme. It is a first letting agreement for Soo Yoga, which is a company controlled by former England Rugby International, Ben Cohen MBE and Kristina Rihanoff, the world finalist professional ballroom dancer who appeared on the BBC’s Strictly Come Dancing.

Soo Yoga Group, which will open a holistic yoga studio and wellness facility that will also have a vegan café, has signed at a headline rent of £85,000 p.a, with RPI-linked uplifts and a minimum uplift at first review to £0.1m p.a. The lease terms include a nine month rent-free period and a break at 10 years.

Acquired by Palace Capital in 2015, Sol Northampton is a 200,000 sq ft leisure development located five minutes’ walk from Northampton railway station. Completed in 2002, current occupiers include Vue Entertainment, which has a 10 screen cinema at the scheme, Accor Hotels and Fitness for Less.

 

Panthera Resources (PAT.L) 8.55p £4.99m

Panthera Resources, the gold exploration and development company with assets in India and West Africa,  announced that the initial $0.25m of funding from Galactic Gold Mines Private Limited has been received.

Following extensive technical and legal due diligence by its team in India, Galaxy agreed to purchase a 10% stake in Panthera’s 100% owned subsidiary, Indo Gold Pty Ltd. (“IGL”), for $1.25m and earn additional equity by providing ongoing support and services to advance the Bhukia JV project in Rajasthan, India. Further details are in the announcement dated 20 Dec 2018.

Galaxy agreed to purchase the 10% interest in IGL in two 5% stages. In the first stage a 5% stake is to be purchased for $0.5m consisting of two payments. The payment just received was the first of two $0.25m payments, with the next amount due before 31 Mar 2019.

The second 5% stake is due to be purchased for $0.75m prior to the re-commencement of exploration (now expected mid- to late-2019).

 

Pelatro (PTRO.L) 83.5p £26.03m

Pelatro, the global Multichannel Marketing Hub software specialist, has been awarded a contract by Vinaphone, a mobile network operator in Vietnam, worth approximately $1.5m over 3 years.

Pelatro will supply its mViva Contextual Marketing Platform to assist Vinaphone increase its revenue and customer engagement whilst reducing churn. The agreement provides Pelatro with a fixed monthly fee in addition to a share of the incremental revenue generated by the customers using the platform.

This is Pelatro’s first contract in Vietnam and further cements its market leading position across Asia. Vietnam has a mobile subscriber base of 127 million and Vinaphone, the second largest operator across the region, has a 32% market share with approximately 40 million subscribers. Vinaphone is recognised as one of the most innovative mobile network operators in the region and was the first operator to launch 3G services nationwide.

Pelatro’s mViva Contextual Marketing Solution, which is part of its Multichannel Marketing Hub offering, is now being used by more than 15 telcos.

 

Telford Homes (TEF.L) 340p £257m

Telford Homes, the London-focused residential property developer, announced that it has exchanged contracts for the sale of its Equipment Works build to rent development site in Walthamstow, E17 to a JV between Henderson Park, the European real estate investment platform, and Greystar, a global leader in specialist, long-term rental housing. This is the third time the Group has worked with Greystar following the recent land purchase at Greenford, UB6 and the partnership to deliver 894 rental homes at Nine Elms, Battersea.

This transaction comprises the sale of the freehold interest in the land and the construction of 257 build to rent homes for a net consideration of £105.5m. The sale is on a forward-funded basis and will comprise an initial land payment followed by regular payments throughout the construction period and a final profit payment.

The 3.16 acre site in the London Borough of Waltham Forest was purchased by the Group in Dec 2017 and has full planning consent for 337 new homes including 80 affordable homes and 18,830 square feet of flexible commercial space. The location is serviced by excellent transport links being situated close to Blackhorse Road station on the Victoria line and London Overground. The development is under construction and is anticipated to be completed in late 2021.

 

HML Holdings (HMLH.L) 31.5p £14.4m

HML Holdings, a leading provider of property management, insurance and ancillary services to residential property blocks, announced the acquisition of Residential Block Management Services Limited (“RBMS”), a property management business located in Blackheath.

HML PM Limited, the property management subsidiary of HML has purchased the entire share capital of RBMS for £0.68m cash consideration, satisfied from HML’s existing facilities. The transaction includes additional performance related retention payments of up to £0.17m which will be subject to the achievement of certain criteria and will be payable 12 months from the acquisition date. RBMS reported annual revenues of £0.8m for the year ending 31 Dec 2018.

RBMS has been operating as a block management services business in and around the Blackheath area since 2005. It has grown to manage over 2,000 units in 160 blocks mainly in the South Eastern quartile of London. RBMS’ employees will remain with the business and operating from its existing offices. The founders and current managers of the company will remain as consultants to assist HML in the assimilation and integration of the business.

 

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”.