Small Cap Feast

Small Cap Feast – 21 June 2019

Dish of the Day:

No Joiners Today

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 Expected market cap of £36.5m

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

S4Capital (SFOR.L) 166.5p £604.26m

S4Capital, the new age, new era digital advertising and marketing services company, announced that its global content arm MediaMonks today conditionally agreed a merger with BizTech, a leading marketing transformation and customer experience company based in Melbourne, Australia. The proposed merger signifies an investment in further strengthening MediaMonks’ marketing cloud expertise and an important strategic step towards delivering a faster, better and cheaper offer for clients worldwide.

BizTech reports revenues of approximately A$15m and employs 90+ people in five locations spanning the globe. It is headquartered in Melbourne and operates in Sydney, Toronto, Moscow and Astana.

The merger will establish a footprint for MediaMonks particularly in Australia and Canada, marking another milestone in the company’s global expansion.

The merger will be funded from the Company’s cash resources and the consideration will be payable in cash and ordinary shares of S4 Capital on a 50/50 basis, with lock-up restrictions.

Advanced Medical Solutions (AMS.L) 300p £686.7m

Advanced Medical Solutions, the surgical and advanced woundcare specialist company, announced a first half trading update for 2019.

The Group continues to perform well and is trading in line with the Board’s expectations for the full year.

Strong growth has been seen in the majority of the Group’s product ranges and geographies. More substantial growth has been restricted by a reduction in sales of US LiquiBand predominantly due to destocking as some customers have not replenished the high inventories built for Brexit. Additionally, like for like sales for the comparative period in H1 2018 were enhanced for AMS by competitor supply issues. This temporary shortfall has been offset by other parts of the Group showing strong growth.

The Board is confident that US LiquiBand will return to strong growth in 2020 especially given the expected launch in H1 2020 of our new Liquiband XL device which will augment AMS’s wound closure portfolio and open new markets and customer opportunities.

Edenville Energy (EDL.L) 0.06p £2.76m

Edenville Energy, the company developing a coal project in southwest Tanzania, announced its audited results for the year ended 31 Dec 2018.

Commercial mining and wash plant operation commenced full production phase with a variety of sized coal products being produced;  

Significant plant upgrades undertaken during the year;

In 2018 approximately 75,000 tonnes of Run of Mine (ROM) coal, 15,000 tonnes of washed coal and 32,000 tonnes of fine coal produced; and

Revenue recognised for the first time.

Funding secured to advance coal production;

Coal wash plant upgraded and further optimised, including the installation of a pre-screen to remove hard to process material such as fine coal; and

Completion of road access to the new Northern Mining Area, which has the potential to deliver greater yields than previously mined areas.

EVR Holdings (EVRH.L) 5.75p £77.86m

EVR Holdings, the leading creator of virtual reality entertainment content and operator of the MelodyVR platform, announced that further to the Company’s announcement on 7 June 2019 which referenced a Strategic Partnership with the John Gore Organization (“JGO”) for Theatrical Content, John Gore has now entered in to a subscription arrangement to subscribe for 111,111,111 new ordinary shares  of 1p each in the Company at a price of 4.5p per Ordinary Share raising gross proceeds of £5m.

In addition, the company has also entered into an option agreement with JGO to subscribe for the equivalent of $10m of new Ordinary Shares at a price to be determined at the time of exercise which would value the Company’s issued equity share capital at approximately £220m. The exercise period for this option will expire on 31 Dec 2019 at which time it will automatically lapse if not exercised.

PureCircle (PURE.L) 255p £470.1m

PureCircle, the world’s leading producer and innovator of stevia sweeteners, in accordance with Listing Rule 9.6.11(3), announced that Ms. Rosemarie S. Andolino, currently an independent NED, has accepted the appointment as Advisor to the CEO, which will take effect from 1 July 2019. In her additional role Ms. Andolino will advise the CEO on matters relating to the food services industry, Corporate Social Responsibility, branding, as well as government relations and regulatory matters in the USA. Ms. Andolino remains a non-executive director of the PureCircle Board, but would no longer be “independent” under the UK Corporate Governance Code as a result of Ms. Andolino’s additional role

PetroNeft (PTR.L) 0.9p £8.65m

PetroNeft owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, reported its final results for the year ended 31 Dec 2018.

C-4 well at Cheremshanskoye produced about 450 bopd on test

Gross production at Licence 61 in 2018 was 713,603 barrels of oil or an average of 1,955 bopd

While this represents a reduction in production it is ahead of expectations due to continued good performance of horizontal wells at South Arbuzovskoye

64.2 mmbbls total proved and probable (2P) reserves net to PetroNeft

Augean (AUG.L) 127p £124.3m

Augean, one of the UK’s leading specialist waste management businesses provides the following trading update. Due to stronger Group trading performance in the second quarter, the Group’s profit for the year to 31 Dec 2019 is expected to be ahead of market expectations. Results have benefitted from higher landfill volumes across most waste types, increased radioactive waste profit and good performance of both the treatment and North Sea businesses. Further improved trading results has also led to increased net cash in bank which is currently c. £20m.

The Group expects to announce its Interim Results for the six months ended 30 June 2019 on Wednesday 17thJuly.

Caspian Sunrise (CASP.L) 11.38p £202.96m

The Board of Caspian Sunrise provided the following operational update at its flagship BNG asset.

The board of Caspian Sunrise are pleased to confirm that the signed protocol from the Ministry of Energy has been received.  The protocol is the final major hurdle in achieving full export status for the MJF structure and contains confirmation of all the significant commercial terms requested.

The final regulatory step is to receive the signed licence upgrade contract itself, following which the majority of the oil produced from the MJF structure will be able to be sold by reference to international rather than domestic prices.

IQGeo Group (IQG.L) 45p £32.99m

IQGeo Group, the world leader in geospatial collaboration and productivity software for the telecommunication and utility industries, announced the appointment of Andy MacLeod to its Board of Directors as an Independent NED with immediate effect.

Andy MacLeod is an experienced global executive and Non-Executive Board Director with a deep understanding of fixed line and wireless telecommunications, IT technology and its operations. His industry knowledge and professional achievements brings a rich depth of expertise to the IQGeo Board in a very strategic market.

Andy spent ten years at Vodafone Group, first as Group Chief Networks Officer responsible for the operation of Vodafone’s networks world-wide, then as Chief Technology Officer for Verizon Wireless in the USA and latterly the Regional CTO for the thirteen Vodafone operating companies outside Europe.

Prior to Vodafone, Andy held a number of senior roles within the telecommunications industry including CEO EMEA MCI WorldCom, COO of Eircom, COO of Cable and Wireless and VP of Marketing and Sales at Nortel.

Andalas Energy (ADL.L) 0.14p £0.97m

Andalas Energy and Power announced that it has entered into an operating services and option agreement in respect of the producing Betun-Selo KSO in Sumatra, Indonesia and has also issued a £2m unsecured, interest-free convertible loan note facility. The Betun-Selo KSO comprises the producing Betun field and the non-producing Selo field.

Under the Services Agreement, Andalas is to undertake a 4-well workover programme on the producing Betun field that will allow it to earn 90% of the proceeds of the sales of cost hydrocarbons and profit hydrocarbons derived from incremental production at the KSO until such time as the funds and services provided by the Company have been repaid in full.

Betun currently produces 70 bopd.  The Work Programme targets increasing production by an incremental 80 bopd to a total of 150 bopd

Selo is currently non-producing but has the resources set out below and up to 5 drilling locations

Andalas has an option to acquire a participating interest in the Betun-Selo KSO (excluding any right to existing production), as further detailed below, which has scope for further development

Work Programme expected to cost up to $0.65m to be financed by an immediate £0.5m drawdown from the Convertible Note

Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.

The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.

The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).

Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.

This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.

Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.

Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.

MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.

Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.

If you would like to unsubscribe, please email with “unsubscribe me”.