Small Cap Feast

Small Cap Feast – 24 January 2020

Set Menu AIM:

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Set Menu NEX Growth:

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Set Menu Standard List:

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Dish of the Day:

No Joiners Today

 

Off the Menu:

Carpetright has left the Official List following a takeover

 

Dish of the Day:

Off the Menu:

What’s Cooking in the IPO Kitchen?

AIM

Intention to float by Gemfields Group. No Capital Raise. Currently listed on JSE. (GML:JNB) at circa £122m.  The Group’s key producing assets, the Kagem emerald mine in Zambia  (believed to be the world’s single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world), are both expected to have long mine-lives with potential for expansion. Also owns the  Faberge brand. Due Valentines Day 2020.

Main Market (Standard List)

The Proof Of Trust has announced its intention to list on the Standard Market.  The Blockchain based business, owns patents to a protocol which facilitates dispute resolution based upon smart contract disputes.  Transaction details TBC.

Main Market (Premium)

Calisen Group. Potential Intention to Float. Owner and manager of essential energy infrastructure assets through its subsidiaries Calvin Capital and Lowri Beck . Consolidated FY Dec 18 revenue £162.1m and operating profit £25.4m. Raising up to £300m in primary plus partial vendor sale.  Expected Admission February 2020

The Global Sustainable Farmland Income Trust will invest in a diversified portfolio of operational farmland assets located in major agricultural markets including the United States, Europe, New Zealand, Australia and certain countries within Latin and South America. Raising up to $300m.   Due 28 February.

Main Market (Specialist Funds)

Investment firm Nippon Active Value fund is seeking to raise up to £200m at an issue price of 100p per share via an IPO.   The company aims to invest in a portfolio of quoted Japanese stocks with market capitalisations of up to $1bn.   First day of dealings expected early February.

 

Breakfast Buffet

Getech Group (GTC.L) 20p £7.5m

FY19 Update.  Against  a volatile macroeconomic and commercial backdrop for oil and gas exploration spending, Getech increased its new forward sales by 41%, expanded its orderbook by 48% and the Group’s cash balance closed the year at c£3.6m.  By strategically driving orderbook growth, with a focus on annually recurring revenue, Getech is working to increase visibility and progressively lessen Getech’s exposure to lumpy transactions.

Highlighting the importance of this, negotiations on several substantial transactions overran from December 2019. Remains in negotiation on these sales, the value of which had the potential to deliver material 2019 revenue growth. However this is expected to result in a c£2m year-on-year fall in revenue.

Getech’s results for the period ended 31 December 2019 will therefore be below market expectations. Lower total costs and continued investment in the drivers of multi-year sales will however limit the year-on-year impact on profitability, and across H2 2019 cash balances rose by £0.6m.

 

Tekcapital (TEK.L) 6.35p £4.05m

97.5 per cent. owned portfolio company, Salarius Ltd, has secured an agreement with a national food ingredient broker, Hanks Brokerage, to assist in the sale of Microsalt® to snack food companies in the southwestern United States.

Hanks Brokerage, Inc. was founded in 1979 and recently celebrated their 40th anniversary this past year for supplying products and ingrediants to the food industry.  Hanks Brokerage represents ingredients and finished products to food manufacturers, restaurant chains and food service distributors.

The agreement continues to build on an important dimension to the Salarius sales strategy that  includes attendance at food trade shows such as Expo West, Supply Side West and the Texas IFT show, working with “best in class” sales partners and an ongoing direct B2B outreach. As of the date of this announcement, over 25 potential customers are in the process of testing and evaluating applicability of Microsalt® for their snacks and other product lines.

 

Warehouse REIT (WHR.L) 114.75p £276m

The AIM-listed specialist warehouse investor, announces that it has entered into a new five year £220 million debt facility, to replace the existing HSBC facility totalling £210 million. The refinancing, which comprises a £157 million term loan and a £63 million Revolving Credit Facility, has been agreed with a club of lenders consisting of HSBC, Barclays, Bank of Ireland and Royal Bank of Canada. The facility is at a margin of 2% per annum above LIBOR, representing a 14bpts saving compared to the previous blended rate.  The new facility provides a five year term and includes an option to extend the duration by a further two years, subject to lender consent.  The current HSBC facility expires, in part, in March 2020 and the majority in November 2022.

88 Energy (88E.L) 1.3p £89.3m

 88E has successfully completed a bookbuild to domestic and international institutional and sophisticated investors to raise A$5.0 million before costs at a price of A$0.021 (equivalent to £0.011). 

Capital raised pursuant to the Placement, together with the Company’s existing cash reserves (A$15.9 million as at 31 December 2019, inclusive of Joint Venture cash), will be used to fund the ongoing evaluation of the conventional and unconventional prospectivity of the Company’s existing assets, including its share of any potential costs (over the US$23 million farm-out cap) in respect to the Charlie-1 well, which is due to spud in February 2020, and to enable it to identify and exploit new opportunities on the North Slope of Alaska.

 

Inland Homes (INL.L) 91.5p £190m

The brownfield developer, housebuilder and partnership housing company with a focus on the south and south-east of England, has signed a contract with Octavia Housing (“Octavia”), a leading provider of affordable housing, for the development of Afrex House, in Alperton, north-west London.

The development of this former light industrial site into 31 one, two and three-bedroom apartments will support the broader regeneration of the Alperton area, with the site falling within the wider Alperton Growth Area and one of the Greater London Authority’s allocated Housing Zones.

Inland Homes secured planning consent on behalf of investors as part of its asset management activities in March 2019 and has now entered into a £6.5m build contract with the affordable housing provider. Inland Partnerships, the Group’s fastest growing business, will deliver the build of this development, with demolition of the existing buildings on site scheduled to commence in April 2020, and completion scheduled for July 2022.

 

OnTheMarket (OTMP.L) 72p £50.2m

OnTheMarket has signed a listing agreement with Bellway plc, another of the UK’s leading house builders.

Bellway plc has grown from a small family-owned firm to one of the most successful house builders in the UK and is a FTSE 250 company. It is now the UK’s 4th largest house builder by volume and sold a record 10,892 new homes in its most recent financial year.

The Company provides a wide variety of homes at a range of price points across the UK.

Sasha O’Neill, Group Head of Marketing at Bellway, said: “We like the clear and simple way in which OnTheMarket displays its properties and have watched it make real headway as a leading portal over the last two years.

 

MP Evans (MPE.L) 706p £385m

First Sustainability Report , covering the Group’s activities during the two-year period to 30 June 2019.  The Report sets out how the Group’s focus is to:

1) Protect the environment …
… by minimising emission of greenhouse gases and ensuring the Group is not responsible for any deforestation.

2) Demonstrate the benefits of sustainable palm-oil production …
… by knowing where all the fresh fruit bunches (“ffb”) it processes come from, managing water carefully and seeking to prevent pollution of air, land or water.

3) Have a positive economic and social impact on communities …
… by setting high standards in how the Group treats its staff and workers, and in how it works in partnership with local communities.

Palm oil is the world’s most productive vegetable oil, and when grown sustainably can help provide nutrition to the world’s growing population in a sustainable way. M.P.Evans is proud of the part it plays in achieving this and remains dedicated to operating in a sustainable manner.”

 

Norman Broadbent (NBB.L) 9p £4.9m

FY Dec 19 update from the London listed Professional Services firm offering a diversified portfolio of integrated Leadership Acquisition & Advisory Services .

The Board is pleased to report that following the progress made in the first six months of 2019, the underlying growth in revenue and improvement in operating results has continued into the second half of the year. This has seen the company return to profitability for the full year to 31 December 2019. A turnaround and transformation of this scale is pleasing, particularly when many in our industry are referencing lower than anticipated UK trading and significant disruption in H2 2019 due to political and Brexit uncertainty.

Highlights:

o  Group Revenues increased YoY by 22% to £11.5m (2018 £9.4m)

o  Group Net Fee Income increased YoY by 15% to £7.6m (2018 £6.6m)

o  Group returns to full year profit for 2019

o  Good H2 results bettering H1

 

Columbus Energy (CERP.L) 2.5p £21.2m

Columbus, the oil and gas producer and explorer focused on onshore Trinidad and Suriname, is pleased to announce the following operational update:

  • Completion of the interpretation of the Saffron cased hole logging, with the result supporting the completion and testing of the Saffron well in February 2020; and
  • Submission of a Saffron Well Test application to the Ministry of Energy and Energy Industries.

 

Wey Education (WEY.L) 14.5p £19.9m

The educational services group, announces that it has appointed Doctor Sara de Freitas as Executive Director of Education on 23 January 2020. Sara joined Wey Education on 20 January 2020.

Sara is an experienced higher education leader in the UK and Australia and has held various senior executive roles at Pro and Deputy Vice Chancellor level since 2012 with a focus on digital education. She was most recently Pro Vice Chancellor (Education) and Professor of Digital Education at Aston University. She is also a Governor of the University of Sunderland.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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