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


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
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*A corporate client of Hybridan LLP


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