Small Cap Feast

Small Cap Feast – 22 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:

No Joiners Today

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 (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)

AIM

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

Cairn Homes (CRN.L) €1.28 €1bn

The Irish homebuilding company, announced the signing of an investment venture agreement with the National Asset Management Agency (“NAMA”) creating a vehicle aiming to build in excess of 550 new homes on a 14.5 acre development site adjoining Cairn’s Parkside development, off the Malahide Road, in Dublin 13.

Under the investment venture agreement, a new company owned 75% by Cairn and 25% by NAMA has acquired the development site. This agreement follows the recent successful completion of Cairn’s first investment venture with NAMA, in which 71 new homes were built and sold at Parkside.

 

Midwich (MIDW.L) 560p £461m

The specialist audio visual distributor to the trade market, provided a trading update for the year ended 31 Dec 2018.

The Board now expects to report revenue for 2018 in excess of £570m (FY18E £562m), representing growth of approximately 20% over the prior year  

As a result of this strong performance, the Board now anticipates reporting adjusted PBT for 2018 to be slightly ahead of its previous expectations (FY18E 28.5m).

 

Strix Group (KETL.L) 143.6p £281.6m

The specialist “in the design, manufacture and supply of kettle safety controls and other complementary water temperature management components, announced the following trading update for the year ended 31 Dec 2018.

Strix has delivered a strong performance across the Group during 2018 and the Board confirms that it expects to report results in line with market expectations for the financial year. The Board also expects to report a net debt position of c.£28m.”

PE c.10.4x, yield c.4.8%

 

IGas (IGAS.L) 80.2p £98m

“IGas announced the spud of the Springs Road-1 exploration well at Misson Springs, in North Nottinghamshire.

This exploratory well is a vertical well targeting the Bowland Shale geological formation.

This is the second well that forms part of an integrated exploration and appraisal programme to better define the basin and is located in the central basin area.”

 

IG Design Group (IGR.L) 596p £442m

9mth to Dec 18 trading update from the designers, innovators and manufacturers of gift packaging, greetings, stationery, creative play products and giftware. Reported revenues 36%, with like-for-like sales up 9%2. The Group has seen growth in reported revenue and profit across all regions, with non-UK based customer revenues now accounting for over 70% of the Group.

Remains on track to deliver diluted earnings per share1 in line with current market expectations, with year-on-year growth expected to be in excess of 20%.  

“Looking forward to the year ahead, we have a strong committed order book and pipeline of contracts in negotiation, with a number already secured for FY20.”

 

Learning Tech Group (LTG.L) 88p £586m

“The integrated digital learning and talent management services and technologies provider, announced a trading update for the year ending 31 Dec 2018.

The Board expects Group revenues to be c.£94m (2017: £52.1m), with recurring revenues increasing to c.68% (2017: 39%), driven primarily by the transformational PeopleFluent acquisition in May 2018. The Board anticipates recurring revenues to be c.71% on an annualised basis.”

Adjusted EBIT is expected to be significantly ahead of expectations at not less than £26.5m (2017: £14.0m). In Nov 2018, LTG announced a new strategic goal to achieve run-rate revenues of £200m and run-rate EBIT of at least £55m by the end of 2021 .

 

Instem (INS.L) 273p £43.5m

The provider of IT solutions to the global life sciences market, announces a trading update for the year ended 31 Dec 2018. All three key areas of the business contributed positively during the Period, with strengthening margins and underlying EBITDA in line with management’s expectations. Net cash at 31 Dec 2018 was approximately £3.6m and will increase early in the current year as delayed payments from a small number of large pharma customers are received, returning the Company to more normal working capital cycles.

The Company looks forward to building on this momentum, particularly for SEND related services, where order backlog and future revenue visibility is continually improving.”

 

Shield Therapeutics (STX.L) 35.8p £41.7m

The commercial stage, pharmaceutical company with an initial focus on addressing iron deficiency, announced the appointment of James Karis as NEC of the Company with immediate effect.  James has served on Shield’s Board of Directors for almost 3 years as a member of the Audit and Nominations Committees and as Chair of the Remuneration Committee. A proven entrepreneur, he brings to Shield over 35 years of experience in the pharmaceutical, healthcare services, technology and medical device industries. He is also a seasoned Board member for both public and private companies with extensive experience in corporate strategy, M&A and all aspects of company financing, particularly with respect to the US market.

 

Dillistone Group (DSG.L) 51.5p £10.13m

The supplier of software for the international recruitment industry, announced that it has been awarded a three year contract renewal by a globally known recruitment organisation. This contract represents, by value, the largest in the history of the Group.

The Group’s GatedTalent division has seen a continuing acceleration in revenue, since its announcement on 5 Nov 2018, as member services have come on line.  The Board reported that a larger proportion of Divisional revenue is subscription based than had previously been anticipated, increasing the Group’s ability to deliver sustainable higher quality earnings.  While it still expects the Division to be loss making in 2019 as a whole, the Board now expects that the business will make a contribution and become cash generative in the final quarter of 2019.

 

Dotdigital Group (DOTD.L) 78.2p £232.5m

The ‘SaaS’ provider of an omnichannel marketing automation platform, announces a trading update for HYDec18.

Group revenue up by 33% to £24.9m (H1 2018: £18.8m)

Organic revenue up by 15% to £20.1m (H1 2018: £17.5m)

Adjusted EBITDA in line with market expectations: the core business has outperformed although tempered by a shortfall in Comapi’s revenues, which is a lower margin business, primarily driven by challenging retail market conditions

Cash balance at 31 Dec 2018 of £16.6m up 58% (H1 2018: £10.5m)

Sales through strategic partners increased by 43% to £10.3m (H1 2018: £7.2m);

dotdigital named as Big Commerce’s first Global Elite partner in Europe.

 

Head Chef:

Derren Nathan
0203 764 2344
derren.nathan@hybridan.com

*A corporate client of Hybridan LLP

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