Small Cap Feast

Small Cap Feast – 20 June 2019

Dish of the Day:

Resolute Mining Limited, a dividend paying gold miner with more than 30 years of experience as an explorer, developer and operator of gold mines in Australia and Africa, has joined the Main Market today. The Company retains its listing on the ASX.

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

Trainline—Seeking £75m raise. Proceeds to target a net debt at IPO of c.2x LTM Adjusted EBITDA). In FY 2019, Trainline achieved net ticket sales of £3.2bn, and revenue of £210m.  Due June

Airtel Africa Limited — provider of telecommunications and mobile money services, with a presence in 14 countries in Africa, primarily in East Africa and Central and West Africa, looking to join the premium segment of the main market. Offer TBC, expected TBC

ReAssure Group plc  –  The Group is a leading closed book life insurance consolidator in the United Kingdom with 4.3m policies, £68.7 billion of assets under administration on a Post-L&G Illustrative Basis. It is considering a premium listing segment of the main market.

Main Market (Standard)

IMC Exploration Group (NEX: IMCP), focused on acquiring and exploring prospecting licence areas which have high potential for natural resource, is looking to admit its shares to the standard list and will withdraw for the NEX Exchange. TBC


Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019

Argentex a UK-based forex service provider founded in 2011 by its current management team which operates as a Riskless Principal for non-speculative and forward foreign exchange as structured financial derivatives is looking to join AIM. Offer TBC, expected 25 June

Rumours & Speculation

Neptune Surf Technology plc*, a vertically integrated lifestyle accessory group focused on the surf market, designing its own high-performance wetsuits and surfing hardware and distributing these together with third party brands globally with key markets being Europe, Australia and USA and Brazil, is looking to join AIM and ‘is planning an £11m float’ according to The Sunday Telegraph.

Breakfast Buffet

Serabi Gold (SRB.L) 61.5p £30.34m

Serabi Gold, the Brazilian focused gold mining and development company, announced some additional drilling results from the conclusion of the surface drilling programme that was conducted at its wholly-owned Coringa gold project located in Para state.

Coringa Drilling Highlights

Hole COR0381 – intersected 2.65m @ 8.51 g/t gold (inc. 1.40m @ 15.82 g/t gold)

Hole COR0383 – intersected 1.15m @ 9.69 g/t gold (inc. 0.6m @ 17.74 g/t gold)

Hole COR0380 – intersected 0.75m @  7.61 g/t gold

Hole COR0374 – intersected 0.80m @  0.44 g/t gold

Hole COR0377 – intersected 0.70m @  0.39 g/t gold

Avacta Group (AVCT.L) 30p £34.85m

Avacta Group, the developer of Affimer® biotherapeutics and research reagents, and Selexis, a pioneering life sciences company and global leader in mammalian cell line generation technology, have partnered to develop the Chinese hamster ovary (CHO) cell line that will be used to manufacture Avacta’s first Affimer clinical candidate for first-time-in-human clinical trials.  This major milestone means that Avacta remains on track to submit an IND/CTA application for an Affimer PD-L1 inhibitor by the end of 2020.

Avacta’s first clinical candidate will be against PD-L1, a clinically validated immune checkpoint that plays an important role in the tumour escape mechanism in cancer.  The lead molecule (AVA004) is a potent PD-L1 antagonist that has been engineered with an Fc domain for half-life extension.  Avacta has demonstrated the preclinical efficacy of AVA004 in syngeneic and xenograft mouse models and it compares favourably to approved monoclonal antibodies such as Imfinzi®, Tecentriq® and Bavencio® at the doses administered.

Fulcrum Utility Services (FCRM.L) 27p £58.73m

Fulcrum Utility Services Limited, the UK’s market leading independent multi-utility infrastructure and services provider, announces the appointment of Daren Harris as CFO. Daren will join the Company and its Board on 24 June 2019.

Daren brings with him significant experience gained in various senior finance roles including those in the construction, mechanical and electrical engineering, defence and energy services sectors.  His most recent role was as Group Finance Director and primary Board member of The Byrne Group, a construction services provider which during his tenure achieved turnover in excess of £300m. Prior to that Daren was Group Finance Director of NG Bailey, a £400m turnover engineering and services business. Daren is a member of The Institute of Chartered Accountants in England and Wales.

Adamas Finance Asia (ADAM.L) 0.5p £34.7m

Adamas Finance Asia Limited, the London quoted pan-Asian diversified investment vehicle, announced the publication of its Final Results for the year ended 31 Dec 2018.

In the first half of 2019, ADAM has continued to make new investments and sought to improve liquidity in the Company’s shares by implementing a share buy-back programme, making trading in the Company’s shares available on a range of popular trading platforms and increasing engagement with shareholders and investors.

NAV remained stable at $93m (2017: $93.6m)

Net loss of $3.5m (2017: $11.7m);

reflecting a $0.22m movement in fair value, realised losses on disposal of $4,000 and total operating expenses of $3.9m

Year-end cash of $8.8m (2017: $13.2m)

NAV per share of $1.13 (2017: $1.22)

Kape (KAPE.L) 81.5p £114.9m

Kape, the consumer security software business, announces an update regarding ZenMate, the specialist virtual private network (“VPN”) solution provider, which the Group acquired in Oct 2018.

Following completion of its integration into the Group, Kape has saved $1.7m in annualised costs relating to ZenMate. In addition, Kape has launched the ZenMate Ultimate app, the most comprehensive update of ZenMate’s VPN platform to-date. The app adopts a new infrastructure with central developments including augmented location features, server security improvements, a mobile connection checker and faster speeds. The app is available across multiple platforms including Chrome, Firefox, Opera, Android, iOS, Windows OS, XOpen and Xbox and can be used on up to five devices at a time. It has a 100% no logs policy, acting to encrypt and secure all internet traffic such as downloads.

In addition, Kape has launched ZenMate Pulse, a comprehensive web firewall extension which protects against pop up ads, trackers, phishing schemes, malware and malvertising, as well as providing users with an explanation of the types of threats that they face on each website. The user therefore is not just provided with an all-inclusive ad blocker but is able to understand specifically what the types of threats are.

Inspired Energy (INSE.L) 14.75p £103.8m

EVR Holdings, the leading creator of virtual reality entertainment content and operator of the MelodyVR platform, announced that it has entered into partnership with Festival Republic, a division of Live Nation, to broadcast Wireless Festival live via the MelodyVR platform.

Having sold out in record time, Wireless will now offer music lovers an alternative way to experience the incredible live performances at the same time as the audience in London’s Finsbury Park itself. With MelodyVR’s unique ‘Jump Spot’ technology placing the mobile and VR audience fully in control, able to move themselves from the photo pit, to the side of stage, to the crowd, all at the touch of a button.

Around the festival, the coverage continues in full 360°; capturing the vibes and atmosphere that make Wireless the most contemporary music festival in the UK. In a world first, the backstage area will allow fans to virtually step into a specially created VR space, where they can ‘hang out’ with some of the biggest names at the festival, in VR.

Shanta Gold (SHG.L) 7.4p £53.54m

Shanta Gold, the East Africa-focused gold producer, developer and explorer, provided an update from the second phase of its Bauhinia Creek drilling campaign at the New Luika Gold Mine in South Western Tanzania, conducted during the second quarter of 2019.

Bauhinia Creek is one of three active sources of ore currently being mined at NLGM;

Phase 2 drilling has intersected high grade mineralisation over significant widths, providing further evidence of the continuity of the orebody to the west of BC Central where high grade results were intercepted in May 2019;

Results from the Phase 2 drilling:

Hole CSD122 intersected 16.02 meters grading 9.36 g/t Au;

Hole CSD123 intersected 7.07 meters grading 16.10 g/t Au;

Hole CSD119 intersected 2.43 meters grading 5.26 g/t Au;

The new high grade intersections announced in Phase 1 (May 2019), Phase 2 (June 2019) and the previous drill hole CSD055 (8 meters grading 8.52 g/t Au) are outside the existing mineral reserves and will be incorporated into the mine plan;

The new area is below the existing mineral reserves at BC exhibiting higher grades and widths at depth; and

Strike length of high-grade mineralisation below the existing reserves is estimated at 280 meters and remains open at depth.

CareTech Holdings (CTH.L) 380p £406.6m

CareTech, a pioneering provider of specialist social care and education services for adults and children in the UK, announced its interim results for the six months ended 31 March 2019.

Completion of transformational acquisition of Cambian Group plc in Oct 2018 for £278.5m

Unconditional regulatory clearance for the integration of Cambian from the Competition and Markets Authority in Feb 2019

Integration of Cambian well underway and synergies on track to be delivered to plan

Cambian EBITDA margin considerably improved over last published results

Independent property portfolio valuation of the Enlarged Group of £774m at the date of acquisition

Banking facilities renewed until 2022/2023

Completion of ground rent transaction raising £31m net proceeds in Jan 2019

CQC and OFSTED ratings continue to be ahead of sector averages

Staff retention initiatives proving successful with retention rates ahead of sector average

LightwaveRF (LWRF.L) 7.75p £7.88m

LightwaveRF, the leading smart home solutions provider, announced it has received an order to the value of EUR 568,000 from its new European distributor, Tech Data. The Company had previously confirmed its partnership agreement with Tech Data, one of the world’s largest technology product distributors, in its recent interim results statement, published on 3 June 2019.

The first order from Tech Data, which is being delivered this quarter, is to principally supply retailers in Germany and the Netherlands with Lightwave’s new European Smart range of hubs, dimmers and sockets.

LPA Group (LPA.L) 98.5p £12.67m

LPA Group, the high reliability LED lighting and electro-mechanical system manufacturer and distributor, announced its results for the six months to 31 March 2019 and a growing order book.

Revenue £10.1m (2018: £13.9m)

Operating profit before exceptional items1 £0.2m, (2018: £1.1m)

Loss before tax, after exceptional item, £0.2m (2018: Profit £1.0m)

Loss per share 1.20p (2018: Diluted Earnings 6.51p)

Interim dividend 1.10p (2018: 1.10p)

Strong order entry £15.4m (2018: £8.4m)

Growing order book £19m (2018: £16m)

Gearing 22%, (2018: 31%)

Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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