Small Cap Feast

Small Cap Feast – 21 March 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 905

Total number of AIM Companies trading: 835*
* As at 11 March 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 11 March 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 161*

Total number of Standard List Companies trading: 142*
* As at 11 March 2019

Dish of the Day:

Diaceutics DXRX.L, a data analytics and implementation services company which services the global pharmaceutical industry has joined AIM. Mkt Cap c. £53m  Raising £17m at 76p. FYDec18E rev £10.4m, PBT £0.9m.

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)

US Solar Fund, a newly-established investment company focused on investing in solar power assets mainly in the US, looking to raise $250m at $1. Expected 16 April.


Network International Holdings—Pleading enabler of digital commerce across the Middle East and Africa  region, operating across over 50 highly underpenetrated payment markets that contain a total population of 1.5 bn. 2018 rev $298m, underlying EBITDA $152m.  Due April. No new funds to be raised. Secondary sell down. Targeting 25% of at least 25%.

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.

Breakfast Buffet

Base Resources (BSE.L) 14.50p £166.24m

Toliara Project PFS confirms status as a world-class mineral sands development.

  • Post-tax / pre-debt (real) NPV @ 10% discount rate of US$671m, measured at FID
  • Revenue to cost of sales ratio of 3.06
  • Stage 1 capex cost of US$439m – to establish a 13Mtpa mining processing operation
  • Stage 2 capex cost of US$67m – increases operation to 19Mtpa
  • Mineral Resources forming basis of PFS comprise of 588Mt @ 6.6% Heavy Mineral, from existing Measured & Indicated resources, for an initial LOM of 33 years
  • Mineral Separation Plant recoveries of 93.9% ilmenite, 79.0% zircon and 73.7% rutile


LPA Group (LPA.L) 113.50p £13.05m

AGM Statement .  “In my commentary published in January, I reported that the current year had started quietly, with delays to some major rail projects including Crossrail, with demand expected to pick up substantially as the year progresses.

As expected, the results for the first half will be affected by these delays. However, we now have delivery schedules for the delayed programmes and have won new contracts, which, as and when delivery dates are confirmed, should make the work load for the second half and the medium term potentially very pleasing. 

Order intake for the first five months of the financial year is at record levels.”


Strix Group (KETL.L) 157.20p £317.30m

FY Dec18 results from the   global leader in the design, manufacture and supply of kettle safety controls and other complementary water temperature management components.

Solid performance during 2018 including a 7.9% growth in sales volumes and 2.7% in net sales, rising to 4.5% on a constant currency basis, in line with expectations. Rev £93.8m. PBT £29.2m + 3.2%.

Careful cost management has allowed a gross profit margin of 41.5% (2017: 40.7%).

Net debt reduced to £27.5m, a 40.1% reduction since December 2017 (£45.9m
Proposed final dividend of 4.7p, with total dividends of 7.0p for the full year.

For 2019 recent acquisition of Halo Source assets and hedging of commodities set a solid platform for further delivery.


Sopheon (SPE.L) 1,002.50p £116.42m

FYDec18 results from the  international provider of software, expertise, and best practices for Enterprise Innovation Performance. Rev: $33.9m          (2017: $28.5m)
EBITDA: 8.9m (2017: 8.0m)
PBT:  $6.4m  (2017: $5.1m)  Cash:   $16.7m .  18 new customer wins (13 in the prior year). Full year 2019 revenue visibility of $20.6m (2017: $19.3m).

Mentioned in 22 research reports from leading industry voices such as Gartner and Forrester Research. Vision extended from innovation to helping major enterprises achieve their strategic goals, dramatically expanding horizons and potential.

Dividend proposed of 3.25p per share (2017: 2.5p).

“Strategically, now is the time to accelerate investment and solidify our leadership position.  Once again, we have ambitious plans, many of which depend on bringing in the right people in the coming year “.


Inspired Energy (INSE.L) 17.38p £123.16m

The “UK energy procurement consultant to UK and Irish corporates is delighted to feature in the 2018 UK Parliamentary Review, a series of independent publications, which aim to share best practice among policy makers and business leaders.”

As one of the UK’s largest energy advisers, Inspired Energy works with private and public sector organisations to reduce their energy costs and usage. CEO Mark Dickinson tells the Parliamentary Review how it supports 2,000 business in managing their energy costs, allowing them to focus on running a successful business.

The article outlines some of the surprising statistics that energy buying can impact on your business and highlights some key areas to focus on, which enabled Inspired Energy to deliver over £100m worth of historical revenue recovery to its clients over the past 18 months. 


Frontier IP (FIPP.L) 84.00p £34.53m

The “specialist in commercialising university intellectual property, is pleased to note today’s statement from portfolio company Exscientia , a world leader in artificial intelligence drug discovery, announcing a three-year partnership with global biopharma company Celgene Corporation.

The collaboration to accelerate drug discovery in oncology and autoimmunity includes an initial US$25m upfront payment to Exscientia. The Company is also eligible to receive substantial milestones based on the clinical, regulatory and commercial success of the programme, and is due to receive tiered royalties on net sales of any product”.


Synectics (SNX.L) 210.00p £36.48m

The specialist in the design, integration, control and management of advanced surveillance technology and networked security systems, announces that it has secured a contract in the oil & gas sector.

The oil & gas market has been very difficult for the last few years and has been characterised by mostly small-value contracts for necessary additions and expansions to existing sites.

This contract, which is expected to be worth around £1m during its life, is the largest new oil & gas order received by the Company for a number of years and is due to be delivered substantially in this financial year.


Kibo Energy (KIBO.L) 0.75p £5.56m

The multi-asset energy company, is pleased to provide an update on the Benga Power Plant Project in Mozambique. Further to the RNS published on January 30, 2019.


Definitive Feasibility Study (‘DFS’) completed ahead of schedule and final review in progress

Coal Purchase Agreements (‘CPA’) with coal producers in advanced stage and progressing well

Meeting with EDM (Mozambique’s publicly owned electricity company) – planned for April 2019 to present final DFS and engage in further Power Purchase Agreement (‘PPA’) negotiations under the terms of existing MOU (See RNS of 12 December 2019)

PPA discussions with potential private off-takers in advanced stage and progressing well

Assessing integration of renewable technologies at the project


Verona Pharma (VRP.L) 57.50p £60.56m

The clinical stage biopharmaceutical company focused on developing and commercialising innovative therapies for respiratory diseases, announces that Dr. Martin Edwards will join the board as a Non-Executive Director. Dr. Edwards has over three decades of experience in the pharmaceutical and venture capital industries. He is currently Senior Partner of Novo Holdings, where he has held various positions since 2003. Novo Holdings has a shareholding of 11.76% in VRP.


Alba Minerals (ALBA.L) 0.23p £7.13m

Assay Results at Thule Black Sands, Greenland,  confirm a weighted average Total Heavy Mineral content of 45.4%

All samples taken were ilmenite-bearing, confirming a combined mineralised strike length of approximately 10 km. “”These results, achieved in our first full field season at TBS, give us great confidence as we move forward with our plans this year.  Further testwork and independent resource estimation work are being undertaken, and we will announce the results of those further analyses as and when they become available.”


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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