Small Cap Feast

Small Cap Feast – 19 July 2018

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 938

Total number of AIM Companies trading: 868*
* As at 17 July 2018

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 87*

Total number of NEX Growth Market Companies trading: 84*
* As at 17 July 2018

Set Menu Standard List:

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

Total number of Standard List Companies trading: *
* As at 17 July 2018

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

Dish of the Day:

TheWorks.co.uk (WRKS.L Main Mkt Prem) one of the UK’s leading multi-channel specialist retailers of gifts, arts & crafts, stationery, toys and books. Looking to raise £24.8m net at 160p.  Sell down of £35.4m. Mkt Cap £100m. FYApr18 rev £192m, Op profit £6.2m. Finance costs £3.6m.

 

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

NEX Exchange Growth Market

Veni Vidi Vici. Investment Vehicle to identify investment opportunities and acquisitions in companies in the Precious Metals and Base Metals sectors.  Raising £490k at 50p. Market cap £0.8m. Due 8 August.

AIM

CentralNic-Schedule 1 from the business operating in proprietary retail platforms selling domain names and associated web presence services including hosting and email on a subscription basis, has acquired KeyDrive S.A  which constitutes a RTO. Raising  £24m at 52p, combined market cap of £88.7m

Trackwise—established business that manufactures specialist products using printed circuit technology. Offer TBA. Due Late July

Ovoca Gold (to be renamed Ovoca Bio PLC) – RTO of IVIX, a Russian company developing a drug candidate for the treatment of female sexual dysfunctions. No monies to be raised, market cap of £8.5m, due 30 July

Nucleus Financial—independent wrap platform provider . FYDec17 revs £40.36m and PBT of £5.1m. Offer TBA. Due late July.

Kropz PLC-Intention to float by the  emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa and exploration assets in West Africa

Main Market (Standard)

Danakali—potash company focused on the development of the Colluli Potash Project in Eritrea. Currently on ASX, Mkt cap c.£108m.  Due 24 July

Main Market (Premium)

Grit Real Estate Income Group pan-African income real estate company focused on real estate investment assets in pre-selected African countries . Looking to raise net proceeds of at least $120m. To be priced at EPRA NAV of $1.43/share.  Due 31 July.

Breakfast Buffet

Hummingbird Resources (HUM.L) 31.75p £110m

First full  quarter of commercial production at Yanfolila.

33,101 ounces of gold poured at an AISC of $790/oz

Average grade of 3.43 g/t

38,726 ounces of gold sold at an average price of $1,307 per ounce

500,000 Lost Time Incident (‘LTI’) free hours achieved during the quarter

Exploration drilling campaign targeting conversion of Resources to Reserves commenced at the end of Q2

Corporate highlights at 30 June 2018

Cash of $46.2m

Net debt of $15.6m

 

Highlands Natural Resources (HNR.L) 22.2p £26.4m

“Highlands, the natural resources company,  announced that drilling operations at all of the additional six wells at East Denver, which are being funded entirely by its partners, have been successfully completed.

Further to the announcement on 27 June 2018, the remaining three wells, named Thunder, Hagar and Citadel, have been drilled to total depth of 17,991 ft, 17,967 ft and 18,193 ft respectively and are now cased, cemented and secured.

With the completion of the drilling operations, the pad is currently being prepared for upcoming fracking and flowback operations.  “

 

AO World (AO..L) 145.8p £699m

AGM Statement from the European online electrical retailer. “AO World is on track to deliver its long-term strategic plan and the Board’s expectations for the full year remain unchanged.

Overall for the quarter we are pleased to report UK revenue growth of 8% which reflects the strong start to the year, as previously reported, and a slower performance in June in our core markets impacted by weaker consumer demand.

Our Europe business has performed in line with our plan during the period, with continuing strong year-on-year revenue growth of 46.2% in constant currency (up 48.8% on a reported basis), and we continue our strategy of limited traditional marketing as planned.  We remain confident in the delivery of the plan we set out at our capital markets day in Feb 2017.”

FYMar19E rev £888m and PBT loss of £3.9m.

 

Carclo (CAR.L) 107.5p £78.2m

“AGM Trading Update

Trading to date in the current financial year has been in line with the Board’s expectations.

Progress in securing new Automotive lighting and medical development contracts within LED Technologies and Technical Plastics has been good and is in line with our planned timescales. The implementation of our operational improvement plans is well underway and encouraging progress has been made.”

FYMar19E PE <10x.

 

Green and Smart (GSH.L) 6.625p £19.6m

The “renewable energy company generating power from biogas captured through the treatment of palm oil mill effluent in Malaysia, is pleased to announce that it has raised approximately £3.2m via the subscription for 51,806,000 new common shares of no par value by Serba Dinamik International Ltd, at a price of approximately 6.19p per Subscription Share.

The net proceeds of the Subscription will be used to advance the development of the Company’s third fully-owned biogas power plant at Minyak and for working capital purposes.”

The Company also intends to publish its FY Sep 17 results and its interim results for the six months to 31 March 2018 in early August 2018. Until such time as these results are published, the Company’s Common Shares remain suspended from trading on AIM.

 

Amryt Pharma (AMYT.L) 17.95p £49.33m

“Amryt has had a strong H1 2018 with progress across all three pillars of its growth strategy: namely, continued revenue growth and territory expansion for its lead commercial asset Lojuxta™ (lomitapide), development of its late stage pipeline and acquiring new products to leverage its established commercial, medical and regulatory infrastructure in rare diseases. Revenues (unaudited) for the first half were €7m, representing 14% growth versus H1 2017. Cash Balance (unaudited) at 30 June 2018 was €12.2m (30 June 2017, €10.9m). Amryt is well positioned to continue to grow revenues in 2018 and the Board expects full year results to be in line with current market expectations.” “The investigational global Phase III (‘EASE’) clinical trial with AP101 for Epidermolysis bullosa (“EB”) is progressing well with a pinterim efficacy analysis expected to be completed in Q4 2018, and top-line data expected in Q2 2019.”

 

Tax Systems (ECV.L) 84.9p £66.6m

Hy Jun 18 update from the supplier of corporation tax software and services. “The Group has delivered a strong trading performance in the first half of the year, driven by increases in both recurring and non-recurring revenue.

Revenues for the period are expected to show a 14% increase over the comparable period in the prior year, with organic revenue growth of 9%, demonstrating the successful execution of the Company’s strategy to boost organic growth through investment in sales and pre-sales.”

The “high quality of earnings, alongside strong cash flow, has underpinned the Group’s ability to decrease its net debt by 15% to £17.5m at 30 June 2018 (31 December 2017: £20.5m; 30 June 2017: £23.6m).

EBITDA is comfortably in line with expectations and the board of directors is confident with the outlook for the full financial year. “

FYDec18E rev £16m and PBT of £5.8m.

 

LIDCO (LID.L) 6.5p £16.3m

“The hemodynamic monitoring company, announces it has entered into an exclusive UK distribution agreement with Maicuff Technology Ltd to take full distribution responsibilities for Maicuff’s extensive range of Non Invasive Blood Pressure (NIBP) disposable products in the UK. The three-year agreement is effective immediately.

LiDCO will introduce these products to the UK market. With increased focus on infection control, the UK market is experiencing significant growth in disposable NIBP cuffs as the market moves away from using reusable NIBP cuffs in high risk areas. LiDCO’s management estimate that the market for disposable NIBP cuffs is currently in the order of £10m per annum and growing.”

 

Sopheon (SPE.L) 910p £92.76m

“The international provider of software and services for complete Enterprise Innovation Management solutions, issues the following trading update for the six months to 30 June 2018.

In our Annual General Meeting announcement issued on 7 June, we noted that the positive momentum from 2017 had continued into the current year and that full year 2018 revenue visibility had risen to $23.5m compared to $17.5m the year before, an all time high. We are delighted to report that following a good close to June, revenue visibility now stands at $26.5m.

As we start the second half of the year, sales activity remains high and the board remains confident that the Company is trading comfortably in line with expectations.

With this progress, we expect revenue, EBITDA and profit before tax for the first half of 2018 to be significantly ahead of prior year performance for the corresponding period.

Net cash at 30 June 2018 stood at $15.5m, compared to $9.5m at 31 December 2017, and $6.6m at 30 June 2017.” We could see no forecasts.

 

Be Heard (BHRD.L) 1.265p £20.2m

HYJun18 update from the digital marketing services Group.

Group revenues in excess of £14m, +70% vs Last Year.

Like for like revenue growth of 15%.

Notable wins from Aviva, GSK, blu, and Equifax.

Be Heard converting new business as a Group alongside individual company successes.

EBITDA guidance adjusted to reflect investment in business development, service capacity and provision for client spend volatility, in the range of £3m and £3.3m on revenue of circa £29m.

Cost reductions implemented to support investment and underpin H2 2018 and 2019.

Latest industry estimates suggest an uptick in UK marketing and advertising expenditure in H2. Digital continues to drive market growth.

The Board remains confident that Be Heard is well positioned to take full advantage of the demand for integrated, end-to-end marketing services.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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