Small Cap Feast

Small Cap Feast – 23 November 2018

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 920

Total number of AIM Companies trading: 850*
* As at 19 November 2018

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 88*

Total number of NEX Growth Market Companies trading: 86*
* As at 19 November 2018

Set Menu Standard List:

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

Total number of Standard List Companies trading: *
* As at 19 November 2018

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 (Premium)

SEEIT will be the first UK-listed investment fund of its kind to invest exclusively in the energy efficiency sector. Looking to raise £150m. Due 11 Dec

AJ Bell—one of the largest investment platforms in the UK—Expects to publish prospectus end Nov. FYSep18—revenues up 19% to £89.7 million, profit before tax up 31% to £28.4 million.  Secondary sell down, Due December.

Sirius Aircraft Leasing Fund targeting a raise of US$250m  – objective is to provide investors with an attractive level of regular income and capital returns through investing primarily in used, single-aisle aircraft. Due 5 Dec

MOD Resources—(ASX:MOD) A$78.7m mkt cap.  Copper exploration and development company focused on the central and western Kalahari Copper Belt in Botswana.  Introduction only. Due c.26 Nov.

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 end Nov.

AIM

Kropz, an emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa, a phosphate project in the Republic of Congo and exploration assets in Ghana, is looking to join AIM. Offer TBC, expected late Nov

Titon holdings—international manufacturer and supplier of ventilation systems and window and door hardware. No capital raise. Due 10 Dec. Mkt cap c.£22m.

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 early December.

Finncap—proposed acquisition of M&A adviser Cavendish Corporate Finance and AIM admission. Offer TBA. Due early Dec

Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is investigating the possibility of AIM admission. The Company is proposing to raise up to £2.25 million before the end of December, conditional on Admission.

The Panoply parent company of a digitally native technology services group founded in 2016 with the aim of identifying and acquiring best-of-breed specialist information technology and innovation consulting businesses across Europe, is looking to join AIM. Offer TBC, expected late November 2018.

Nex Exchange

European Lithium—(ASX:EUR)- Introduction to NEX due 26 Nov. mining exploration and development company which wholly owns the Wolfsburg Lithium Project located in Carinthia, 270 km south of Vienna, Austria. Mkt cap c.A$63m

 

Breakfast Buffet

Dairy Farm International (DFI.L) 9.17p £12bn

“Further to its announcement on 23 March 2018, Dairy Farm International Holdings Limited announced the completion of the combination of its wholly-owned food retail business, Rustan Supercenters, Inc. (‘RSCI’), with Robinsons Retail Holdings, Inc. (‘RRHI’).

Dairy Farm has exchanged its interest in RSCI for new shares in RRHI representing some 12.15% of its enlarged share capital and has acquired a further 6.1% interest in the enlarged share capital from the existing controlling shareholders. This, together with certain on-market purchases made since this transaction was announced on 23rd March 2018, gives Dairy Farm a total current shareholding of 20% in RRHI. As at the date of this announcement, the Gokongwei family, being the controlling shareholders, continue to hold a 51% interest in RRHI.”

We could see no forecasts.

 

Origin Enterprises (OGN.L) 5.77p £641.94m

AGM Statement from the Agri-Services group. There has been a positive start to trading for the 2019 financial year in the seasonally quiet first quarter.

Demand levels for agronomy services and crop inputs were strong in the period, supported by a combination of early season timing and generally improved sentiment on-farm. The planting profile for autumn and winter cropping is broadly favourable across our markets.

The seasonality of Origin’s revenue and earnings profile has historically followed the northern European growing season, resulting in over 95% of earnings being generated in the second half of the Origin financial year. The balance of this seasonality profile is expected to change following the Group’s acquisition of the Fortgreen business in Brazil, which completed in Aug 2018.

Group revenue was €430m for the three months compared to €346.7m in the corresponding period last year, an increase of 24%. On an underlying basis at constant currency, revenue increased by €62.4m (18%), reflecting higher seed, crop protection and fertiliser volumes and prices in the period.

 

Amerisur Resources (AMER.L) 12.1p £121.3m

The oil and gas producer and explorer focused on South America, is pleased to announce that it has entered into a farm-out agreement with Occidental Andina, LLC, an affiliate of Occidental Petroleum Corporation, an international oil and gas exploration and production company with operations in the United States, Middle East and Latin America, across the following exploration blocks: Putumayo-9, Terecay, Tacacho and Mecaya, (the “Farm-out Blocks”), all in the Putumayo region, in southern Colombia.

In consideration of the acquisition of a 50% interest in each block, Occidental Andina will fund a $93.25m exploration and appraisal program between 2019-2021. Occidental Andina will fund 85% of the total planned 2D seismic cost expenditure of US$65,000,000 and 100% of the US$38,000,000 planned drilling program.

 

Directa Plus (DCTA.L) 51p £21m

The producer and supplier of graphene-based products for use in consumer and industrial markets, is pleased to announce that it has signed a 200,000 contract to supply a graphene-based Grafysorber® mobile production unit and a set of G+ oil adsorption barriers to GSP Group (“GSP”) for use in offshore emergency situations and to clean water in harbours and ports. 

GSP and its affiliates operate a diversified fleet which includes mobile offshore drilling rigs, offshore support vessels, construction vessels, heavy lift crane barges, ROVs and a Saturation Diving System. The company is an integrated services provider to the oil and gas industry, with a global presence.

The sale follows the successful conclusion of GSP’s evaluation of the use of Grafysorber® in the removal of hydrocarbons from contaminated water from oil and gas activities.

 

Palace Capital (PCA.L) 292p £134.6m

The “property investment company that focuses on commercial property outside London, is pleased to announce that it has exchanged contracts to sell 50 residential units for a total consideration of £18.2m, reflecting 97% of their book value, to the London Borough of Barnet.

The units are part of the 65 residential units acquired as part of the RT Warren (Investments) Ltd portfolio in October 2017, of which three were sold in February 2018 for £1.25 million. The 50 residential units, which are all debt free and uncharged, currently produce a gross income of £0.62 million per annum.”

 

Mobile Streams (MOS.L) 0.92p £0.76m

The global mobile content retailer, announces an agreement with CoolGames to provide their HTML5 service to third party companies in India.

Mobile Streams launched their HTML5 games service mobilegaming.com in Argentina in 2015, with the Indian service following a year later. Featuring over 300 high quality titles which include racing, puzzle and endless runner games, the store has gained subscribers at an encouraging rate, reaching over 6 million subscribers since launch in recent months.

Founded in 2009, CoolGames has been making mobile gaming content available outside of the traditional marketplace and app stores. Using purely HTML5 technology, the company has published hundreds of casual games since its launch.

 

Gaming Realms (GMR.L) 5.7p £14.65m

The developer, publisher and licensor of mobile real money and social games, announces it has signed a 3-year revenue share agreement with Endemol Shine Gaming for the distribution of Deal or No Deal Slingo.

Under the terms of the agreement, the distribution of Deal or No Deal Slingo, which has been live on Gaming Realms’ Slingo B2C sites for two years, will expand to include the Group’s network of B2B operators across the UK, EU and USA.

 

Kodal Minerals (KOD.L) 0.14p £10.56m

“The mineral exploration and development company focused on the Bougouni Lithium Project, is pleased to announce the appointment of Mr Steven Zaninovich as the Project Manager of the Company’s flagship Bougouni Lithium Project in southern Mali.  Mr Zaninovich is a highly accomplished senior executive in the resources sector with more than 25 years’ experience in project management encompassing all stages of mine development.  Mr Zaninovich’s most recent experience has been with the delivery and successful commissioning of ASX-listed lithium producer Tawana Resources Ltd’s Bald Hill Lithium Project in Western Australia.  His appointment reflects the Company’s transition into the development phase as it targets initial production from Bougouni in 2020. “

 

STV Group (STVG.L) 331p £129m

STV has announced an innovative new content partnership for digital platform, STV Player. Through a developing relationship with ELEVEN SPORTS, two premium football matches (one each from Spain’s LaLiga and Italy’s Serie A) will be available live and free-to-air every match week on the STV Player.

The STV Player is the UK’s fastest growing broadcaster video on demand service with 2.8m registered users.  The partnership between STV and ELEVEN SPORTS supports the digital growth strategy of both companies and aims to broaden the range of premium content available on STV Player.  It also follows the recent announcement that STV will act as exclusive digital sales agent for ELEVEN SPORTS across all digital platforms and sponsorship as they grow their premium sports business in the UK. Earlier this year, new content partnerships for STV Player were announced with Hopster and Little Dot Studios, as well as an agreement to launch STV Player to Virgin Media’s 400,000 Scottish homes for the first time.

 

Record (REC.L) 31.9p £60m

HYSep18 results from the  specialist currency manager.

Assets under management equivalent (AUME) broadly flat in USD terms at $61.8bn (31 March 2018: $62.2bn)

AUME increase of 7% in GBP terms at £47.4bn (31 March 2018: £44.3bn)

Client numbers increased to 66 (31 March 2018: 60)

Performance fees of £1.0m

Revenue up 3% to £12.6m

PBT increased by 5% to £4.0m Encouraging range of new business opportunities across products and geographies.

Continued competition and fee pressure in Passive Hedging in particular.

Further innovation in new and existing products, as illustrated by the addition of fifth “Range-Trading” strand to Record’s Multi-Strategy product

“Record’s future success will depend in large part on our responsiveness to client demand and market opportunities.  The Group’s management and staff are working hard to identify such opportunities and to convert them into profitable business. “

 

Head Chef:

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

*A corporate client of Hybridan LLP

Disclaimer

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 enquiries@hybridan.com with “unsubscribe me”.