Small Cap Feast

Small Cap Feast – 19 March 2019

Dish of the Day:

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Off the Menu:

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What’s Cooking in the IPO Kitchen?

Main Market (Premium)

US Solar Fund, a newly-established investment company focused on investing in solar power assets mainly in the US, looking to raise $250m at $1. Expected 20 March


Network International Holdings—Potential Intention to Float— leading enabler of digital commerce across the Middle East and Africa  region, operating across over 50 highly underpenetrated payment markets that contain a total population of 1.5 bn. 2018 rev $298m, underlying EBITDA $152m.

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.

Diaceutics, a data analytics and implementation services company which services the global pharmaceutical industry, due to join AIM 21 March. Mkt Cap c. £53m  Raising £17m at 76p.

Rumours and Speculation

According to the FT  Tel Aviv-based taxi-hailing company Gett Inc. is considering listing on either the London Stock Exchange or in the Tel Aviv Stock Exchange by the end of the year

Breakfast Buffet

Kazera Global (KZG.L) 2.33p £5.71m

The investment company who, through its stake in African Tantalum Limited, has an interest in the Namibia Tantalite Investment Mine, announced that the borehole drilling campaign at both the Homestead and Purple Haze deposits has been completed. In addition it has been approached by two parties interested in becoming the strategic funding partner for the Orange River Project and for further development of the Mine.
Management regards these initials results as encouraging and comparable with the historical results upon which the 2015 Venmyn Report was based, and which was not compiled in accordance with JORC guidelines. The drilling campaign is continuing at Signaalberg and the previously mined White City pegmatites with the aim of identifying additional mineralisation. Management anticipates that further mineralisation potential will be identified.

Volvere (VLE.L) 1,125p £33.36m

FYDec18 update from the growth and turnaround investment company .
The Group expects to report revenue from continuing operations of approximately £18.6m (re-presented 2017: £16.2m) and an overall profit before tax of £20.6 million, stated after the profit arising from discontinued operations of £23.1m (re-presented 2017: loss £0.1m). The results for 2017, including the results of now discontinued operations, were revenue of £43.4m and a profit before tax of £3.5m.
Following sale of Impetus Shire foods is the main revenue driver. “Growth in 2018 resulted mainly from growth with existing customers, where a combination of new product lines and wider store distribution increased revenues. In 2019 we are expecting further revenue growth and plan to invest approximately £2m in new plant and equipment to increase capacity further.”

Infrastrata (INFA.L) 0.96p £11.66m

“The UK quoted company focused on the development of natural gas storage capacity in Northern Ireland, is pleased to announce that it has awarded an engineering design works contract to Costain plc to enable the £65m cost savings identified during the FEED (Front End Engineering & Design) process to be realised on the Company’s Islandmagee gas storage project. These works were identified as one of the next steps for the Project as announced with the recent fundraising on 24 January 2019.
The contract covers sixteen specific work areas to refine the engineering design of the Project and work is scheduled to be completed prior to FID (Final Investment Decision) which, as previously announced, is scheduled to be undertaken prior to the end of H1 2019.”

NAHL Group (NAH.L) 97.00p £41.28m

FY Dec 18 results from the UK marketing and services business focused on the UK consumer legal market.
• Revenue of £49.0 million (2017: £51.9m)
• Underlying operating profit down 16.3% to £12.1m (2017: £14.5m) primarily as a result of our transformation strategy
• As anticipated, profit before tax of £9.8m (2017: £12.4m)
• Underlying EPS* of 18.2p (2017: 25.0p)
• Recommended final dividend of 5.7p, providing a total dividend for the year of 8.9p (2017: 15.9p).
“Whilst market pressures persist, trading during the early part of 2019 has improved.
We remain confident in our outlook for the remainder of the year.”

Tribal Group (TRB.L) 70.00p £138.80m

FYDec18 from the provider of software and services to the international education management market.
· Adjusted operating profit for the year up 27% to £10.8m (2017: £8.5m) on revenue of £80.1m (2017: £84.9m)Annual recurring revenue increased by 5% to £38.5m representing 45% of revenue
Strong operational cash inflow during the year of £14.2m (2017: £11.1m); year end net cash of £20.0m (2017: £14.1m). Progressive annual dividend payment with the Board recommending a 10% increase to 1.1p per share
“We have started 2019 strongly winning a large contract in the Work-based learning sector providing our Maytas system to the CITB (Construction Industry Training Board). We have a good pipeline of new opportunities in the UK in Higher Education, Further Education and Work-based learning and expect to secure new customers for our student information systems across the year.”

NetScientific (NSCI.L) 11.50p £12.96m

Further to its announcements on 26 November 2018 and 18 March 2019, the Company announces that its ownership of the enlarged PDS Biotechnology Corporation (“PDS”), trading on Nasdaq under the ticker PDSB, on a fully-diluted basis is 8.15%, which at the listing price on 18 March 2019 of $10 values NetScientific’s holding in PDS at £4,081,451. It is the Company’s intention to hold the shares and to make a decision on its position in due course.

BigDish (DISH.L) 2.65p £7.65m

The food technology company that operates a yield management platform for restaurants, announced a partnership with Loud Mouth Media.
· Partnership with digital advertising agency
· Southampton goes live
· Expansion to Territory Three expected in April or May
· Building a Launchpad for UK growth
BigDish Partners with Loud Mouth Media
Further to the announcement on 28 February 2019, the Company has selected Loud Mouth Media, a multi-award winning digital advertising agency, as a partner. Loud Mouth Media specialises in Performance Marketing, across Pay Per Click, social media advertising and Search Engine Optimisation , providing a fully-managed service.

Mosman Oil & Gas (MSMN.L) 0.31p £1.91m

“The oil exploration, development and production company, advises that the rig is now on location at Stanley-2 in Texas and drilling has now commenced. The well is expected to take approximately 14 days to drill and evaluate. The primary targets are Eocene aged sands (which includes the Yegua sands) which were indicated to be potentially oil bearing in Stanley-1. Stanley-2 will be directionally drilled to optimise the potential production of the reservoir objective sands.
Stanley-2 is the next well to be drilled as part of the Strategic Alliance with the privately-owned Baja Oil & Gas, LLC. Stanley-2 is designed to penetrate its primary target updip from Stanley-1 to optimise the potential oil production and recovery from these reservoirs.
Mosman has used existing cash resources to fund its drilling commitment for this well.”

Pelatro (PTRO.L) 90.00p £27.82m

The global Multichannel Marketing Hub software specialist has been chosen by Tele2, Kazakhstan, an existing customer of the Group, to install its new product mViva Data Monetization Platform. This is a revenue share contract for a five-year period which is expected to contribute c.US$500,000 to Pelatro’s revenue in the first full year of operation.

Focusrite (TUNE.L) 525.00p £300m

The global music and audio products company, supplying proprietary hardware and software products used by recording professionals and musicians around the world, updated that H1 Feb19 revenue has increased to approximately £40m (H1 FY18: £38.8m) and profits are also ahead when compared with the first half of the last financial year, which was a record period for the Group.
Net cash £26.8m.

Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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