Small Cap Feast

Small Cap Feast – 20 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

Integumen* (SKIN.L) 1.04p £4.21m

Integumen announced a greater than 99% reduction of bacterial growth in preliminary results of four formulations, all of which include Cannabinoid (CBD) oils, on Labskin in a range of cosmetic and skin-care treatments.

Tests, which include formulations of STOER For Men, the skin care product range owned by Integumen, were carried out on bacteria common to human skin. The bacteria tested are known to be one of the leading causes of foreign body infections with resistance to some antibiotics. “This is the first of several announcements expected over the coming weeks and months as hemp-derived CBD inclusive formulation tests extend to Labskin model systems that have disease state bacteria such as seen in acne and eczema.

As well as having an extension to the range of STOER For Men skin care products, Labskin will be offering the same test services to clients adding CBD to their skin-care and cosmetic range of products.”

 

McBride (MCB.L) 92.60p £237.64m

FYDec18 trading update from the leading European manufacturer and supplier of Contract Manufactured and Private Label products for the domestic Household and professional cleaning and hygiene markets. “As announced in our trading update of 10 Jan, the Group achieved good sales growth in the first half period, with continuing underlying revenues, excluding the benefit of first quarter revenues from Danlind, up 6% on the prior year. 

However, the Group continues to see pressure on its cost base. We continue to expect the overall raw material pricing outlook to show improvements in the second half, but not to the extent anticipated in early Jan. In addition, distribution costs continue to rise beyond our previous estimates due to market rates and efficiency challenges driven by logistics capacity shortfalls and internal service gaps.  Accordingly, although the Group continues to anticipate further good sales growth in the H2 year, the Board now expects full year adjusted PBT to be approximately 10% to 15% lower than the prior financial year.”

 

Impellam (IPEL.L) 555p £274.17m

De-merger of its wholly owned subsidiary, Carlisle Support Services Group Limited  from the Impellam group  as the next step in driving margin and EBITDA growth by focusing on its collaborative Managed Services and Specialist Staffing portfolio. The Demerger will result in qualifying shareholders being issued with an equivalent number of ordinary shares in Carlisle.

Carlisle focuses on the provision of cleaning, security, events, retail facilities and support services across the UK employing over 3,000 people.  Carlisle’s vision is to be the preferred expert and the most trusted provider of people services for the customers it serves by delivering innovative, tailored solutions 24 hours a day, 7 days a week.   For more information visit www.carlislesupportservices.com

For Impellam’s financial year ended 29 Dec 2017, Carlisle generated revenues of £44.8m and PBT of £0.3m. As at 29 June 2018, Carlisle had gross assets of £16.9m.

Consensus forecasts FY2018E revs of £2,281m and EBITDA of £52.5m

 

Eden Research (EDEN.L) 9.65p £19.17m

The Company “that develops and supplies breakthrough biopesticide products and natural microencapsulation technologies to the global crop protection, animal health and consumer products industries, announced that its commercial partner, Eastman Chemical Company, has received authorisation for Eden’s nematicide formulation, marketed as Cedroz by Eastman, from the Regulatory Affairs Directorate in Malta. Malta is acting as the zonal rapporteur Member State for the Southern EU agricultural zone and on behalf of a number of EU countries for indoor uses.

Cedroz is an innovative and natural solution designed to fight nematodes, a species that is known to cause severe damage to crops globally for both open field and greenhouse growers, resulting in yield losses and increasing farmers costs. Malta has authorised the use of Cedroz on a wide range of crops, including cucumbers, courgettes, melons, aubergine, peppers, tomatoes and strawberries.”

 

Collagen (COS.L) 3.75p £12.17m

“The developer and manufacturer of biomaterials and regenerative medicines for the enhancement and extension of human life, announced that it has sold its stake in Jellagen Ltd  for approximately £0.215m in a private transaction.

Jellagen is a private marine biotechnology company founded in 2013 focused on developing collagen biomaterials from jellyfish. Collagen Solutions had held a minority equity position in Jellagen since 2014 and also collaborated on technology development. The transaction to sell Collagen Solutions’ shares in Jellagen followed the most recent investment round in Jellagen in which the Company did not participate.”

 

Bango (BGO.L) 87p £56.93m

The mobile commerce company, announced that Paul Larbey has joined Bango as COO as Bango expands its payments business to a broader mobile commerce platform offering, enabling its partners to more effectively monetize the $100bn plus app ecosystem.

Paul joins Bango following his role as CEO at Velocix, a global leader in streaming technology where he remains a NED. Paul grew Velocix from a small start-up to the world’s leading IP video streaming specialist. As CEO, Paul led the Velocix team though its integration into Alcatel-Lucent and then Nokia. In 2018 Paul orchestrated the spin out of the division from Nokia to create a pure-play streaming technology company.

 

Emmerson (EML.L) 2.95p £18.16m

The Company “focused on developing its low capital cost, high margin potash project in Morocco, announced the appointment of Mr Don Larmour of Global Potash Solutions to advise on metallurgy and processing.

Mr Larmour will act as a consultant for the Khemisset Potash Project Feasibility Study, which is expected to commence in the first half of 2019.  The appointment of an expert of Mr Larmour’s calibre marks a significant step towards the construction of the Project.

The appointment of a consultant for the Feasibility Study follows the results of the Scoping Study, published late last year, which confirmed that Khemisset has the potential to be among the lowest capital cost, highest margin potash projects in the world. As such, its economics are outstanding, with forecasted EBITDA margins in excess of 60% and a post-tax NPV10 of over US$1.1bn based on industry expert price forecasts.”

 

Mobile Tornado Group (MBT.L) 3.4p £11.52m

“The leading provider of instant communication mobile applications to the enterprise market, issued a trading update ahead of the announcement of results for the year ended 31 Dec 2018. The audited results are expected to be announced in the week commencing 15 Apr 2019.

Trading in the second half of the year, and therefore for the full year, was in line with the Board’s expectations. A good trading performance during the second half has resulted in a significant improvement in adjusted EBITDA loss during this period, when compared to the first six months. As a result, subject to audit, the Board expects to report revenue and adjusted EBITDA loss for the year ended 31 Dec 2018 and net debt as at 31 Dec 2018 in line with market expectations.”

We could see no forecasts.

 

EKF Diagnostics (EKF.L) 35.5p £156.89m

The point-of-care business, announced that its Quo-Test analyser has received US Food and Drug Administration 510(k) clearance for professional use in a clinical laboratory setting.

The Quo-Test is a fully automated glycated haemoglobin (HbA1c) analyser, providing fast, easy and reliable HbA1c measurement for the monitoring and management of diabetes.

The FDA 510(k) clearance allows the Quo-Test to be used in a laboratory setting for in-vitro quantitative determination of HbA1c in whole blood samples.

 

Haydale Graphene (HAYD.L) 11.75p £6.29m

“The global advanced materials group, notes speculation regarding the prospect of an imminent equity placing. The Company confirms that it is currently conducting market soundings with potential institutional investors and that any such equity placing is expected to be carried out at a material discount to yesterday’s closing price. In line with the Company’s previous practice, it is anticipated that a pre-emptive offer would also be made to existing shareholders.

Discussions with potential investors remain ongoing and a detailed announcement will be made in due course.”

 

Head Chef:

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

*A corporate client of Hybridan LLP

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