Small Cap Feast

Small Cap Feast – 21 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:

GBGI has left AIM  following an all cash takeover.

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


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 1 March

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

Physiomics* (PYC.L) 3.4p £2.52m

HY Dec 18 results from  provider of technology-based solutions to predict the effects of cancer treatment regimens for the biopharma industry. The total income for the period increased 162% to £372k compared with £142k in the comparable prior period. Total income for the period comprised the second half of the 2018 Merck projects, revenues from new clients announced during the calendar year and grant income from Innovate UK.

The operating loss for the half year narrowed by 49% to £113k and the loss after tax narrowed 67% to £64k compared with £192k in the comparable prior period. Cash and equivalents increased significantly to £552k at 31 Dec 2018, compared with £166k at 31 Dec 2017 .

“Building on the momentum generated by existing and new contracts as well as success in attracting grant funding in calendar year 2018, we are looking forward to what the Directors believe will be a strong second half, underpinned by contracts already secured, and look forward to providing further updates on business activities to the market going forwards.”


Sunrise Resources (SRES.L) 0.11p £3.01m

The Company focusing on the development of its CS Pozzolan-Perlite Project in Nevada, USA, advised that a successful concrete test has been completed by a major international cement/ready mix company using the Company’s natural pozzolan.

Until now all of the Company’s natural pozzolan testwork has involved mortar blocks in accordance with standard testing procedures (ASTM C618) where the Company’s natural pozzolan is mixed with cement and sand and the resulting mortar blocks tested for strength. This has been carried out using drill samples (see news release dated 4 July 2018) and more recently with bulk samples (see news release dated 30 October 2018).

The Company’s natural pozzolan performed well with good strength, low shrinkage and good setting times comparing favourably with the benchmark commercial sample. This test is important in demonstrating the value of the Company’s natural pozzolan as a replacement for fly ash in the large end-use ready mix concrete market.


Arbuthnot Banking (ARBB.L) 1,260p £191.32m

FYDec18 trading update.

The Group continued to make good progress in the fourth quarter of 2018 and as a result expects to announce underlying full year pre-tax profits in line with market expectations.

Additionally, the results will include a one-off adjustment reducing the anticipated liability related to the management team earn out for the acquisition of Renaissance Asset Finance (“RAF”).  The adjustment is expected to be approximately £2.5m and will therefore increase the reported pre-tax profits accordingly. Regardless of the adjustment RAF continues to trade well and has seen its customer loan balances increase by 21% during the year.”

FY Dec 19E rev £80.3m and PBT £10.6m.


Tertiary Minerals (TYM.L) 0.35p £1.44m

Tertiary Minerals advised that it has staked claim to the Paymaster zinc-copper-silver-Cobalt-Tellurium prospect in Nevada, USA. The Company also advised that the next phase of Scoping Study level metallurgical testwork is due to start by the end of February for the MB fluorspar project in Nevada.

Paymaster Project Highlights

Grab samples assay up to 21% zinc, 6.5% lead, 3.3% copper and 253g/t silver

Mineralisation intermittently exposed and sampled over 1.7km strike

Samples also contain high levels of high-tech metals tellurium and cobalt

Geophysical exploration planned to define drill targets

MB Fluorspar Project

 Next phase of metallurgical testwork planned at SGS Lakefield, Canada

Due to start – end February 2019

Target to produce acid-grade fluorspar and mica.


Premier Technical Services Group (PTSG.L) 119.5p £141.06m

The niche specialist services provider, notes the share price movement in recent weeks and confirms that it is not aware of any reason for such a movement (c25%  in last month).

As detailed in the announcement on 21 Jan 2019, results for the year ended 31 Dec 2018 are anticipated to be in line with the Board’s expectations.

Net bank debt at 31 Dec 2018 was £11.9m (2017: £18.3m). Underlying trading cash conversion improved to 72% (2017: 65%) despite the working capital effect of underlying organic turnover growth during 2018 of 19%. The period benefitted from strong cash collection and improved debtor days on invoiced sales that equated to 88 days at the year end (2017: 97 days).

Trading during the first six weeks of the current year has been strong, and recent acquisitions are performing in line with management expectations


Keywords Studios (KWS.L) 1,106p £708.28m

The  international technical services provider to the global video games industry, announced that it has acquired the assets and business of GetSocial B.V. a company based in The Hague, Netherlands.  

GetSocial is a cloud-based software platform that provides a comprehensive and robust suite of functions that enable games developers to manage all social interactions between their game, their players and their friends’ networks.

GetSocial’s team of 12 engineers led by CEO, Jeroen Bouman, and COO and Founder, Viral Patel, are all joining Keywords. GetSocial is currently in a development phase, having invested ahead of building revenues, but it is expected to become profitable during 2020.


PCI-PAL (PCIP.L) 23p £10.64m

The customer engagement specialist that secures and protects payment card data for companies handling payments by phone, is pleased to announce its unaudited interim results for the six months to 31 December 2018.

Revenue increased by 28% to £1.18 m (2017: £0.92m).

Recurring fee revenues increased by 23% to £0.99m (2017: £0.80m).

The Group has signed new contracts worldwide with a Total Contract Value (TCV) of £3.41m (2017: £0.68m) which is 53% greater than the TCV of sales achieved for the full prior financial year. Within that, North American contract wins for the first six months were ahead of management expectations with a TCV of £0.95m (2017: nil).

The Group has a strong balance sheet position with net cash of £3.54m.


RPS Group (RPS.L) 171.6p £384.99m

FYDec18 results from the multi-sector global professional services firm.  “Investing to accelerate growth. Dividend maintained. Strong cash conversion.”

Fee income £574.2m (FY 2017: £562.3m); 4% growth at constant currency; in line with market expectations 

PBTA £50.2m (FY 2017: £53.9m); in line with market expectations

“Trading conditions in most of its markets appear satisfactory and supportive of organic growth although necessary investment previously announced will temper performance this year before accelerating growth in future years. The risks associated with Brexit are contained mainly within the Consulting UK and Ireland business and they have seen little impact so far. Against this background, the Board’s view of the 2019 outlook for the Group is unchanged and is in line with market expectations. The transition the Group is undertaking is providing a strong foundation to deliver long term shareholder value.”


Regal Petroleum (RPT.L) 45p £142.36m

The “oil and gas exploration and production group, announce the spudding yesterday of the MEX-119 well at its 100% owned and operated Mekhediviska-Golotvshinska (MEX-GOL) and Svyrydivske (SV) gas and condensate fields in Ukraine.

The well has a target depth of 4,850 metres, with drilling operations scheduled to be completed by September 2019 and, subject to successful testing, production hook-up during the fourth quarter of 2019. The well is a development well, with its primary target being the B-20 horizon in the Visean formation”.


Malvern International (MLVN.L) 4.35p £10.95m

The global learning and skills development partner is undertaking an unconditional placing   to raise c. £550k at 4p. Placing Price represents a discount of approximately 11.1 per cent to the closing mid-market price of Malvern’s existing ordinary shares of 4.5 pence at the close of business on 20 Feb 2019.

Placing is do accommodate growing working capital demands and  to help finance start-up costs in relation to a new college being established in Brighton and the further development of online course material development for English, Accountancy and other business qualifications.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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