Small Cap Feast

Small Cap Feast – 21 November 2019

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What’s Cooking in the IPO Kitchen?

What’s cooking in the IPO kitchen?

The Pebble Group, a provider of products, services and technology to the global promotional products industry, announces its intention to seek admission of its shares to trading on the AIM market of the London Stock Exchange, which is expected to take place in early December 2019.The Group delivered revenue of £99.8m in the year ended 31 December 2018.No mention of bottom line and a suggestion that funds raised would provide an exit to private equity shareholders and the repayment of debt. Offer TBA.

Longboat Energy raising £10m. Expected admission November 2019. The company has been established by the former management team of Faroe Petroleum to create a new full-cycle North Sea oil and gas company .The strategy to achieve this will initially be through the acquisition of assets where the management team can add value through subsurface and operational improvements, follow-up deal opportunities and nearfield exploration; and by value creation through the drill bit.

NEX Exchange
Sapo PLC – an investment vehicle under the NEX Exchange Rules, seeks to invest in the developing market for rural broadband in the United Kingdom. Due 2 Dec

Main Mkt Standard
Taseko Mines – North American focused copper producer and developer, seeking a London Listing. No capital raise. Due 22 Dec
SDIC Power – “potential intention to float”. Proposed GDR listing. Leading power generation company in China, with a diversified portfolio of projects across hydropower, coal-fired power, wind power and solar power. Offer TBA

Breakfast Buffet

SEC Newgate (SECG.L) 41p £9.9m

 ·    Board approves SEC Newgate’s three-year Strategic Plan ·    Strong focus on new growth projects and positioning on the digital frontier The Strategic Plan sets out a number of operational priorities for the Group for the next three years including: ·    A return to profitability and strengthening of the balance sheet; ·    Cultural integration and harmonization of the two SEC S.p.A. and Porta Communications organisations, now SEC Newgate; ·    Raising of the Group’s visibility and reputation worldwide; ·    Continuing the Group’s acquisition plan to strengthen and increase capabilities; and, ·    Implementing incentives and reward schemes to retain key talent.

Infrastrata (INFA.L) 0.305p £4.63m

Memorandum of Understanding with Navantia S.A., S.M.E. , the Spanish shipbuilding company. This MoU is the first step towards formalising a Teaming Agreement with Navantia, under which, both companies will work together on a multitude of infrastructure and marine projects to take them to commercial fruition. Subject to completion of the acquisition of the assets of Harland and Wolff, as announced on 01 October 2019 and further on 11 November 2019, the MoU envisages utilising the assets of Harland and Wolff for the purposes of providing a range of services to Navantia. These services include, inter alia, supporting Navantia in their proposed tender for contracts to provide three new Fleet Solid Support (“FSS”) ships for the Royal Fleet Auxiliary, with the view to performing certain fabrication works at Harland and Wolff.

Netcall (NET.L) 23.7p £34.03m

AGM statement from the provider of Low-code and customer engagement software. “The Group has traded ahead of the same fourmonth period last year and in line with management expectations. We have seen increased order inflows for both Low-code and customer engagement solutions, including new wins in the Insurance, Retail and Public Sector markets.” The Group’s pipeline is healthy and continues to show growth, driven predominately by cloud -based opportunities. The Board is mindful of the current political and economic backdrop and notes that this may have an effect on customer decision making and it continues to monitor the timing of its larger enterprise and product sale contracts. Group cash at 31 October 2019 was £6.6m, after the final payment of £1.7m to the former shareholders of MatsSoft Limited acquired in 2017, offsetting debt of £6.6m.

PCI PAL (PCIP.L) 31p £13.2m

 AGM Statement.  “The Board is pleased with the Group’s performance year to date and is confident in the prospects for the remainder of the year including making strong progress against its strategic objectives.  Sales and marketing highlights include winning contracts with a FTSE 250 retailer and a Fortune 100 pharmaceutical firm through existing resellers Capita Pay 360 and Paymetric respectively; as well as being awarded “Partner of the Year EMEA” by Genesys AppFoundry.” “Additionally, the Group today announces that its new PCI Pal Digital product will be launched in January 2020. This will provide a web-based solution for partners and customers to take payments securely in any number of digital customer engagement scenarios, including webchat (including chatbots), social media, SMS, email, and WhatsApp.“

Tavistock Investments (TAVI.L) 2.128p £12.66m

 HY Sep 19 results.  ·    Continued increase in gross revenue for the Group for this period to more than £14.3m (30 September 2018: £14.0m)  95% increase in EBITDA to £1,006,000 (30 September 2018: £516,000) Total FUM reached over £1.1 billion, an 18% increase . Launching another protection portfolio in the near future, the ACUMEN ESG (“Environmental, Social, Governance”) Protection Portfolio, which will carry the same 90% high watermark capital guarantee as the ACUMEN Capital Protection Portfolio

Blue Prism (PRSM.L) 1157p £941m

FY Oct 19 trading update.   The Group has seen a significant acceleration in sales in the second half of the year, contributing to a very strong full year performance. Sales volumes have continued to be high, particularly in upsells, and increased deal sizes have driven material additions in the total business generated in the year. As a result, the Group enters 2020 with a record order book. The Group expects 2019 revenues to be at least £98m (2018: £55.2m). The Group closed the year with a cash position of £74m (2018: £50.5m).  The Board estimates that the exit monthly recurring revenue (MRR) at 31 October 2019 will be at least £10.4m (£9.7m excluding the impact of the Thoughtonomy acquisition) .

Greencoat Renewables (GRP.L) 1.155p £600.6m

The renewable infrastructure company, invested in eurodenominated assets, is pleased to announce a 12 month Share Issuance Programme of up to 350m New Shares in the capital of the Company in a number of tranches, to provide the Company with greater financial capacity to continue to take advantage of an active secondary market for wind assets in Ireland and to pursue identified opportunities in targeted European markets.  The Company intends to issue approximately 88m Placing Shares at a price of €1.13 per Placing Share pursuant to the first tranche of the Share Issuance Programme, being the Initial Placing, which is being launched today

NetScientific (NSCI.L) 6p £4.7m

Portfolio company, Glycotest Inc. has received the second $3m tranche of the $10m Series A financing with Fosun Pharmaceutical Co. Ltd (“Fosun Pharma”), a leading healthcare group based in China. Ian Postlethwaite, CEO of NetScientific, said: “Glycotest continues to make excellent progress. The $3m will enable the Company to advance its HCC Panel towards commercial launch in the U.S. market and to support Fosun Long March Medical Science Co. Ltd towards launch of the HCC Panel in China. We are proud to be supporters of Glycotest who we believe has the strong potential to deliver value for our shareholders.”

Altona Energy (NEX:ANR) 10.5p £0.2m

Altona has entered into early stage negotiations with a third party to acquire a Petroleum Exploration Licence Application (“PELA”) on a large tenement within a well-known coal bearing basin, the Arckaringa Basin located in South Australia. The tenement is in close proximity to the major national road and rail transport corridor and also close to the Company’s historic Minerals Exploration Licences within the Arckaringa Basin.

Europa Oil & Gas (EOG.L) 1.85p £8.12

 Mr Hugh Mackay, the Chief Executive Officer and an Executive Director since 2011, has stepped down from the Board with immediate effect. Hugh will remain an employee of the Company at this time and will be leaving the Company on 31 December 2019 after a handover period. Mr Simon Oddie moves from the role of Non -Executive Chairman of the Company to Interim Chief Executive Officer and Executive Chairman, until a new Chief Executive Officer is appointed.  The decision to appoint a new Chief Executive Officer reflects the Company’s strategy to diversify its asset base by adding new ventures in the appraisal/development part of the business.

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