Small Cap Feast

Small Cap Feast – 21 January 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 916

Total number of AIM Companies trading: 846*
* As at 15 January 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 15 January 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 139*

Total number of Standard List Companies trading: 130*
* As at 15 January 2019

Dish of the Day:

Dev Clever Hldgs (DEV.L) (Main Standard) —Raising up to £700k gross.  The Group has invested over £600,000 in the last five years in developing proprietary software platforms and immersive frameworks to reshape the way its clients engage, acquire and retain their customers and employees through experience, rewards and incentives.  Mkt cap c. £3.7m.

Off the Menu:

Fishing Republic has left the main market  (standard) following the appointment of administrators.

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

Main Market (Specialist Funds)

The Global Sustainability Trust -aiming for attractive risk-adjusted returns by investing primarily in private market investments that are expected to have a positive environmental and social impact raising c.£200m. Due 31 Jan 2019.

Main Market (Standard)


Circassia Pharma (CIR.L) – specialty pharmaceutical company focused on respiratory disease transferring from the Main Market. No funds being raised. Due 4 Feb.

Greenfields Petroleum (TSX-V:GNF)  production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected late January 2019.

Chaarat Gold Holdings—RTO, the Company intends to acquire Kapan Mining and Processing CJSC, which owns the Shahumyan medium-sized polymetallic mine in Kapan in the Republic of Armenia. No raise, market cap of £110.1m, due early Feb


Breakfast Buffet

Nostra Terra Oil & Gas (NTOG.L) 2.8p £3.97m

The oil and gas exploration and production company with a portfolio of assets in the USA and Egypt,  announced the initial results of the engineered economics report for the Mesquite Asset in the Permian Basin/

Based on the engineered economics for the initial 1,384 net acres at Mesquite, Nostra Terra believes the field can generate

2,400,000 barrels of recoverable oil (Estimated Ultimate Recovery, “EUR”)

$21.6m NPV10 valuation at current strip pricing

$28.6m NPV10 valuation at US$60 oil

Pro forma value per acre of $15,625 at current strip pricing

Pro forma value per acre of $20,669 at $60 oil


Vast Resources (VAST.L) 0.2p £12.3m

The mining company with operating mines in Romania and Zimbabwe, announced that further to Friday’s announcement regarding Mercuria Energy Trading SA not proceeding with the advance of the Tranche B of $5.5m under its prepayment agreement with the Company, the Directors, as a standby measure, have already been in discussions with other off take partners but had been unable to progress these discussions while Mercuria was expected to proceed with Tranche B.  Now that Mercuria has informed the Company that Tranche B will not proceed, the Directors will advance these other discussions with a view to securing replacement off take prepayment finance.


Falcon Oil & Gas (FOG.L) 20.25p £184m

JV Partner Origin Energy B2 and Operator of the Beetaloo project, in the Northern Territory, Australia, has signed a rig contract with Ensign Australia Pty Ltd. for Rig 963 for the 2019 Stage 2 Beetaloo drilling programme, with an option to extend the contract into 2020. Subject to relevant approvals, and implementation of the exploration recommendations of the Inquiry into Hydraulic Fracture Stimulation in the Northern Territory, the JV will evaluate the potential of the liquids-rich gas fairways in both the Kyalla and Velkerri plays. Exploration and appraisal activities include the drilling and hydraulic fracture stimulation of two horizontal wells. Together with the Velkerri B dry gas play discovered in 2016, this allows for the assessment of three plays, enabling the most commercially prospective play to be targeted for Stage 3 drilling during 2020. Drilling targeted to commence in June 2019.


AFH Financial (AFHP.L) 355p £146m

FYOct18 results from the leading financial planning led wealth management firm, reflecting continued growth, an increase in EPS of 43% and a 50% increase in dividend per share.

Revenues up 51% to £50.7m

Underlying EBITDA up 85% to £10.4m

Underlying EBITDA margin increased to 21% from 17%

Profit after tax up 94% to £6m

Earnings per share up 43% to 16p

Underlying EPS up 34% to 22.7p

Dividend per share up 50% to 6p

Funds under Management up 58% to £4.4bn

New three to five year aspirational targets set: Funds under Management of £10bn; revenues per annum of £140m; and Underlying EBITDA margin of 25% on revenue.


Polemos (PLMO.L) 0.7p £0.83m

Update on Proposed Acquisition and RTO. On admission, Polemos plc will be renamed Digitalbox plc. The Company is looking to raise between £2m and £4m, with an anticipated market capitalisation of over £13m. 

The Board is seeking admission and intends to use the funds raised to build a market-leading, mobile-first digital media business through a buy and build strategy. Digitalbox has invested in its technology, infrastructure and management team to create a platform on to which acquisitions can be easily integrated with additional upside expected in Average Revenue Per User  performance and without significant impact on staff resources.


Robinson (RBN.L) 65p £10.8m

The custom manufacturer of plastic and paperboard packaging, today issues the following trading statement, prior to the announcement of its final results for the year ended 31 Dec 2018, which are scheduled to be released on 21 Mar 2019.

Revenues are anticipated to be £32.8m for the year, which represents overall a 10% increase on last year with underlying volumes 7% higher. The directors anticipate profits for 2018 will be comfortably in line with market expectations.

Following the previously announced leadership changes, we foresee no change in strategy and will continue to pursue plans for incremental improvement in our bottom line.

FYDec18E rev £32.2m and PBT £1m.


Audioboom (BOOM.L) 1.18p £12.32m

13mth to Dec 18 update from the global podcast company.  Revenue up 92% to $11.7m, with significant growth in the final three months of the period

Revenue per 1,000 listens in the US (eCPM) increased to US$25.87 in Dec 2018, up 36% from US$19.02 in May 2018 (H1 2018)

Adjusted EBITDA loss reduced to $5.2m (12 months ended 30 Nov 2017: loss of $5.7m), with much improved performance in the final three months of the period

Group cash as at 31 Dec 2018 of $1.6m (30 Sept 2018: $1.6m)

Operating cash flow breakeven achieved in the final three months of the period

Brand advertiser count of 160 in Dec 2018, up from 130 in May 2018 (H1 2018)


Distil (DIS.L) 2.38p £12.3m

The “owner of premium drinks brands RedLeg Spiced Rum, Blackwoods Gin and Vodka, Blavod Black Vodka, Jago’s Cream Liqueur and Diva vodka, is pleased to report higher levels of sales during the third quarter ending 31 Dec including the important Christmas period. 

Year-on-year third quarter (Oct to Dec 2018) revenues and volumes increased by 29%, supported by a 53% increase in brand marketing investment.

Year to date sales for the nine-month period April to Dec increased 36% in revenue and 30% in volume, with marketing investment increasing 51%.”


Sumo Group (SUMO.L) 130p £15m

Sumo Group announced that it expects to report results at least in line with management expectations for the financial year ended 31 Dec 2018 on Tue, 9 April 2019.

A number of contracts were secured towards the end of 2018, which underpin the financial forecasts for 2019. As at 31 Dec 2018, the Group had positive cash balances of £3.7m and employed 592 people, an increase of 103 from the figure at the previous year end.

FYDec18E rev £35.94m and PBT £9.07m.


Redx Pharma (REDX.L) 7.7p £8.85m

The drug discovery and development company focused on cancer and fibrosis, announced that the UK’s Medicines and Healthcare products Regulatory Agency has given formal approval to the Company to re-commence the phase 1/2a trial for RXC004, an oral porcupine inhibitor targeting the Wnt signalling pathway. Clinical evaluation of RXC004 in patients with advanced solid tumours remains on track to resume in H1 2019 following the approval of a revised phase 1/2a clinical trial protocol and drug formulation.  Redx, together with the study investigators, now believe that the desired systemic exposure can be achieved using a significantly lower starting dose with the potential for clinical benefit.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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