Small Cap Feast

Small Cap Feast – 21 October 2019

Dish of the Day:

No Joiners Today

Off the Menu:

Frontier Smart Technologies Group (FST) – Has been delisted after being acquired by Science Group  (SAG) at a price of 10p per share.

Appscatter Group plc (APPS) – Under AIM rule 41 it has been delisted but continues to work towards a merger with Airpush.

What’s Cooking in the IPO Kitchen?

Main Market premium

African Export-Import Bank a supranational financial institution whose purpose is to facilitate, promote and expand intra- and extra- African trade, of its potential intention to publish a registration document, the Bank hereby confirms its intention to proceed with an Initial Public Offering. The GDRs are expected to be admitted to the standard listing segment of the Official List of the FCA and to trading on the Main Market of the LSE.

Breakfast Buffet

Gfinity (GFIN) 3.7p £17.38m


Revenue growth above 80% for the second consecutive year

Gross profit of £1.0m (2018: loss of £3.4m), driven by strategic focus on delivery of higher margin esports solutions for key partners

Reduction of 30% in adjusted operating loss* to £8.6m with further reductions expected in 2019/20 financial year

Net cash of £0.6m at year end, supplemented by completion of £5.25m capital raise in July

On track to reach breakeven Adjusted EBITDA** target by 2021

Refocused business on Strategic Client Management model

Continued growth in strategic partnerships such as with F1 and some of the largest games publishers like; Activision Blizzard and EA Sports

W Resources (WRES) 0.38p £23.62m

W Resources, the tungsten, tin and gold mining company announces that it has fed first upgraded jigged ore to the new Concentrator Plant at La Parrilla in Spain.

First ore was fed to the new La Parrilla Concentrator Plant on 17 October 2019 for tungsten production at this world-class, low-cost mining project. Over the last month, an extensive programme of automated systems installation and commissioning was completed on the Concentrator Plant. Commissioning is also complete on the spiral and shaking table plants and the concentrator thickener. Commissioning of the floatation, magnetic and electrostatic separators is underway and allmineral Aufbereitungstechnik GmbH & Co. KG has advised they expect this will be completed in the coming weeks.

Begbies Traynor (BEG) 84.75p £107m

Begbies Traynor Group today announces the acquisition of the entire issued share capital of Ernest Wilsons & Co Limited and of Ernest Wilson’s Limited, which trade collectively as Ernest Wilson.

Ernest Wilson is a leading UK business transfer agent, providing agency services for the sale of small businesses across the UK. This long-established business, which is based in Leeds, operates across a broad range of sectors ranging from food outlets and convenience stores to care homes, restaurants and hotels. The acquisition enhances the group’s existing transactional support services provided by Eddisons, which include the sale of commercial property, through agency and auction, together with machinery and business asset disposals. It is also complementary to the group’s BTG Advisory and corporate finance offerings.

Mind Gym (MIND) 130.5p £122m

Mind Gym, the global provider of human capital and business improvement solutions, provides a trading update for the six months ended 30 September 2019 (“H1”), ahead of reporting its interim results on 10 December 2019.

Reported revenue is expected to be c.24% ahead of the comparative period last year having grown to around £23.9m. On a constant currency basis revenue is expected to be c.20% ahead of the comparative period last year, with both the US and EMEA regions performing well and as a result, on a full year basis, we expect revenue to be slightly ahead of expectations.

Our strategy to focus on deepening key client relationships is paying off with an increased proportion of revenue from top 25 accounts and an increased proportion of repeat revenue from existing clients.

Block Energy (BLOE) 5.6p £18.1m

Block Energy Plc, the exploration and production company focused on the Republic of Georgia, announced the successful installation and cementing of casing through the build section of well WR-38Z (“the Well” or “WR-38Z”) at its flagship West Rustavi field (“West Rustavi” or “the Field”), a critical phase in the sidetracking operations currently in progress at the Well. The Company is also further strengthening its technical team.

Bluejay Mining PLC (JAY) 9.87p £83.15m

Bluejay Mining plc, an AIM and FSE listed, and Greenland focused company, provides an update on the Kangerluarsuk zinc-lead-silver project.  The Company is also pleased to announce that it has lodged an application to the Mineral Licence and Safety Authority, Greenland (‘MLSA’) for a new mineral exploration licence surrounding the existing Kangerluarsuk licence area in central west Greenland.  Together, these areas returned historic surface samples of 41% Zn, 9.3% Pb, 1.2% Cu and 596 g/t Ag, combined, more than 50% metal.

Diaceutics (DXRX) 92.5p £64.4m

Diaceutics, a provider of diagnostic data analytics and implementation services to the global pharmaceutical industry, announces new research which shows that half of eligible cancer patients may be missing out on tests for potentially life-saving precision medicines. The findings are published in the 2019 Diaceutics Pharma Precision Medicine (“PM”) Readiness Report.

Diaceutics finds the average precision medicine drug is launched 4.5 years before the accompanying diagnostic test is available to all patients, therefore denying patients access to the newest therapies

Ashley House (ASH) 4.45p £2.8m

Ashley House plc, the health and community care property partner, announces that, further to the Trading Update released on 1st August 2019 and its process of reviewing various financing and strategic options, the Company has completed on a sale of its 50 per cent interest in Morgan Ashley Care Developments LLP, to its joint venture partner Morgan Sindall Investments Limited.

Consideration for the Transaction is £2,000,000 payable in cash, £500,000 of which is to be deferred and expected to be received in instalments over the next twelve months including £200,000 which is dependent on the monies being generated from a particular scheme.

Serinus Energy (SENX) 9.1p £21.7m

Serinus Energy provides an update on its operations in Romania.

The routine maintenance of the Moftinu Gas Plant has been completed ahead of schedule and under budget.  Gas production and processing was restarted on 20 October 2019, one day earlier than originally estimated.  The Company commends the Romanian team for the safe and efficient turnaround of the plant.

EMIS Group (EMIS) 1,060p £617m

The Board of EMIS Group, the UK leader in connected healthcare software and systems, announced that EMIS Health has been awarded a place on the new NHS GP IT Futures framework subject to the satisfactory completion of a 10-day standstill period as is customary for public procurement processes of this nature.

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”.