Small Cap Feast

Small Cap Feast – 19 July 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 888

Total number of AIM Companies trading: 807*
* As at 15 July 2019

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 88*

Total number of NEX Growth Market Companies trading: 86*
* As at 15 July 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 165*

Total number of Standard List Companies trading: 143*
* As at 15 July 2019

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What’s Cooking in the IPO Kitchen?

Main Market (Specialist Funds)

Voyager AIR  The Company will focus on the acquisition, leasing and management of primarily widebody aircraft, with asset management services to be provided by Amedeo Limited the IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m.

AIM

Roxi Music UK music streaming service plans London IPO as it goes up against Spotify. They have appointed investment bank Arden Partners for an initial public offering (IPO) on the London Stock Exchange later this year.

NEX

Freyherr International Group PLC the Medicinal Cannabis holding company established in 2016,  is planning to list on the NEX exchange on the 30th July

Breakfast Buffet

Cora Gold Limited (CORA) 4.60p £4.04m

Cora Gold, the West African focused gold exploration company, announced the presence of high grade gold mineralisation at depth at the Sanankoro Gold Project, beneath the shallow oxide gold. The project is located in the highly prospective Yanfolila Gold Belt, Southern Mali.

Initial results from Central Selin Prospect targeting sulphide mineralisation at depth in sulphides:

22m @ 2.68g/t gold from 51m

A newly discovered oxide gold zone

9m @ 3.07g/t gold from 117m hole depth (hole ended in mineralisation)

8m @ 3.12g/t gold from 114m hole depth

SRK’s exploration target of 1-2 million ounces of gold (announced on 15th October 2018) was exclusively based on mineralisation to 100m depth and did not take into account further mineralisation at depth

Five reverse circulation holes drilled targeting gold sulphide mineralisation beneath known gold oxide mineralisation.  This is the first time such work has been undertaken at the Selin Prospect at Sanankoro

6,096m of aircore and RC drilling completed, in conjunction with 463m of core drilling

Highland Gold Mining (HGM) 222p £782m

Highland Gold Mining today reported its operating results for the three months ended 30 June 2019 and for the first half of 2019.

Highland Gold produced a total of 70,293 oz of gold and gold equivalent in Q2 2019, a slight increase from 69,610 oz in Q2 2018.

Total production in H1 2019 was 142,254 oz of gold and gold equivalent, an increase of 10% from 128,921 in H1 2018.

Production at Mnogovershinnoye (MNV) in Q2 2019 was stable year-on-year, while H1 2019 output was up 23% over the previous year.

Belaya Gora and Novoshirokinskoye (Novo) saw year-on-year declines in output during both the second quarter and the first half of the year, although grades at Novo improved substantially in Q2 2019 compared to the previous quarter.

Construction work at Kekura and an exploration drilling programme at Klen continued during Q2 2019, as both projects were officially granted residency in the Chukotka special economic zone.

The average realised gold price was $1,309 per ounce in the second quarter and $1,308 in the first half of the year.

The Company affirms its forecast for total 2019 production of 290,000-300,000 oz of gold and gold equivalent.

SolGold PLC (SOLG) 28.90p £533.59m

The Board of SolGold provided an update on the work program and recent drilling at the Company’s Cascabel Project in Northern Ecuador.

Large additional tonnage targeted to be brought into Indicated category at Alpala Deposit due to an additional 68,354m of drilling now completed since the release of MRE#2.  Over 201,930m of resource drilling now assayed ahead of the upcoming third Mineral Resource update (MRE#3) this year

Resource extension drilling at Alpala Deposit continues targeting extensions to high-grade outliers peripheral to the main deposit.

Ongoing growth to the existing mineralised system and targeted increases to the resource base at Alpala continues at Alpala Northwest, Trivinio, Alpala North, and Alpala Southeast.

Greater geological and structural understanding is identifying targets adjacent to main orebody, with drilling now targeting mineralisation at the newly identified Alpala Southwest area.

Cascabel drilling fleet expanding.  A total of 15 drill rigs are expected to be active on the project by September 2019 as the Company bolsters its fleet, expediting the planned Alpala Deposit Pre-Feasibility Study (PFS).

Drilling is focussed on continued resource extension and infill drilling along the Alpala trend as well as extensive geotechnical, hydrological, hydrogeological, metallurgical and petrophysical work.

Induction Healthcare (INHC) 118.5p £35.1m

Induction Healthcare, a leading healthcare technology company helping streamline the delivery of care, announced the appointment of Leslie-Ann Reed to the Board as NED with effect from 19 July 2019.

Leslie-Ann adds breadth and depth to the Board as the Group continues to establish a strong and engaged user base and pursue its strategy to acquire new and complementary modules for the Induction Switch app.

Leslie-Ann is a chartered accountant with a diverse background and extensive international experience, having served in both executive and non-executive roles in publicly listed media and professional services companies. Leslie-Ann is currently NED and Chair of the Audit Committee for Learning Technologies Group plc, a market-leading integrated digital services and talent management provider. In addition, she is a NED at Bloomsbury Publishing plc, where she is a member of the Audit and Remuneration Committees. Previously, Leslie-Ann was a NED of the German listed company ZEAL Networks SE where she was Vice Chair of the Supervisory Board and Chaired the Audit Committee. Until May 2018 she was a NED and Chair of the Audit Committee of the London listed publisher Quarto Group, Inc.

Petro Matad Ltd (MATD) 8.75p £57m

Petro Matad, the Mongolian oil explorer, announced the spud today of the Heron-1 exploration well in the Tamsag Basin of Block XX. The well is an appraisal of the T19-46 oil field immediately to the north in Block XIX and is being drilled with the DQE International 40105 rig.

The Heron-1 well is targeting a prospect with 25MMbo of Mean Prospective Recoverable Resource and is planned to drill to a total depth of 3,050 metres. The well is expected to take up to 40 days to complete. In the event of a discovery, the Company will bring in a separate rig for testing. A call-off testing contract has been signed, which ensures testing operations, if warranted, can commence soon after discovery.

Upon completion of drilling operations at Heron-1 the rig will move c. 5 km to the Gazelle-1 location.

Mobilisation of the Company’s second contracted rig to the Red Deer-1 location is ongoing with a targeted spud date before the end of July.

Midatech Pharma (MTPH) 5.38p £20.67m

Midatech Pharma, the R&D company focused on delivering innovative oncology and rare disease products to patients, announced positive results from a first in human study of its MTX102 immuno-tolerising vaccine product candidate in diabetes.

The focus of this Phase I study is to assess the safety of MTX102.  Five recently diagnosed Type I diabetes patients, all meeting strict genetic parameters, were recruited onto the study and received the study drug.  MTX102 was well tolerated, with asymptomatic local injection site reactions being the only drug-related finding, and no serious adverse events were reported.

This is an important study of systemic injectable administration of Midatech’s gold nanoparticle technology, MidaCore®.  It provides promising safety validation of the MidaCore® technology as a platform for the development of medications for use in humans.

DP Poland PLC (DPP) 8.50p £19.36m

DP Poland, through its wholly owned subsidiary DP Polska S.A, has the exclusive right to develop, operate and sub-franchise Domino’s Pizza stores in Poland provided a H1 2019 Trading Update.

System sales up 10%. Like-for-likes returning positive from March. More sub-franchisees in place.

10% increase in System Sales1 H1 2019 on H1 2018

80% of delivery sales ordered online

Like-for-likes building from March 2019:

5% like-for-like growth in System Sales2 March-June 2019 on March-June 2018

6% like-for-like growth in order count3 March-June 2019 on March-June 2018

-1% like-for-like growth in System Sales January-June 2019 on January-June 2018

3 corporate stores acquired/ agreed to be acquired by 2 new sub-franchisees on 1st July 2019:

DP Poland has currently  10  sub-franchisees across Poland

3 corporate stores taken under management contract by 1 existing sub-franchisee

67 stores in 28 towns and cities to-date

4 new stores opened in H1 2019″.

Globalworth Real Estate Investments (GWI) 9.1p £1,585m

 

Globalworth, the leading office investor in Central and Eastern Europe, confirmed the closing of the acquisition of two high quality office buildings in Poland, as announced on 26 April 2019.

Retro Office House, a newly completed office development offering a gross leasable area of 21.9k sqm, located in central Wroclaw benefitting from excellent connectivity to all parts of the city and a range of public transport options, has been acquired by Globalworth for a total consideration of €58.8m.

Silesia Star, a 29.2k sqm office complex with two interconnecting buildings developed in 2014 and 2016 at the heart of Katowice and located in the immediate vicinity of the city centre, two universities and various transport options, has been acquired by Globalworth for a total consideration of €54.4m.

The total transaction consideration for both buildings has been set at €113.2m, before customary adjustments, and has been funded from existing cash resources.

Van Elle Holdings PLC (VANL) 27.50p £29.20m

Van Elle, the UK’s largest independent ground engineering contractor, issued the following trading update ahead of the announcement of its results for the year ending 30 April 2019.

The Group’s trading performance at the end of FY2019 was largely as anticipated, with profitability in the second half impacted by end-market volatility and project slippages, as set out in the Full Year Trading Update on 25 April 2019. As a result, the Board had expected to report adjusted PBT of slightly over £5m. However, as part of the year end process, the Board has determined it necessary to adjust a small number of specific balance sheet items and contract accruals. Whilst the results remain subject to completion of the audit, these adjustments will adversely impact FY2019 adjusted profit before taxation by a total of c.£0.5m. The Group’s reported year-end net debt position is in line with expectations as at 25 April 2019.

Whilst an update on the outlook for FY2020 will be provided at the time of the results, it should be noted that, despite the encouraging momentum at the end of last year, the Group is continuing to experience customer uncertainty in some of its markets, resulting in a quiet start to the year in some segments and increased volatility in month on month performance. As set out in April, the Group has been successful in securing positions on attractive, long term contracts.

Pennant Int. Group (PEN) 87.50p £31.60m

Pennant International announced that it has acquired the business of Track Access Services Limited (“TAS”). The acquisition is part of the Group’s continuing strategic expansion and further strengthens Pennant’s offering to civilian sectors.

Established in 2002, and based in Cambridgeshire, TAS provides safety-critical services to train operating companies and rail infrastructure providers. TAS’s current capabilities include rail driver training, rail survey services, laser and video scanning, 3D track models, signal siting and a subscription-based route video and mapping service. Customers include Network Rail and DB Cargo.

The TAS business is expected to generate 2019 revenues of circa £230,000 (on an annualised basis). The consideration payable by Pennant for the acquisition was £100,000 (settled in cash on completion).

“Pennant already has over 45 years’ experience of working with rail industry partners and we see the sector as an important area for future growth.  We are therefore delighted to welcome the TAS team as an exciting new addition to the Group, which significantly enhances our capabilities in the rail sector and aligns with the Group’s strategy of diversifying into non-defence markets and increasing our services offering”.

“Together, Pennant and TAS will be able to offer comprehensive, added value services through our combined experience, flexibility and expertise.”

Head Chef:

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

*A corporate client of Hybridan LLP

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