Small Cap Feast

Small Cap Feast – 24 May 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 896

Total number of AIM Companies trading: 824*
* As at 14 May 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 14 May 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 161*

Total number of Standard List Companies trading: 140*
* As at 14 May 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 (Premium)

Jewel UK Midco Limited, the parent company of The Watches of Switzerland Group Limited, is looking to join the premium segment of the main market. Offer TBC, expect TBC

Trainline—reg document submitted. No timeline or  quantum announced as yet. Proceeds to target a net debt at IPO of c.2x LTM Adjusted EBITDA) . In FY 2019, Trainline achieved net ticket sales of £3.2 billion, and revenue of £210 million.

Main Market (Standard)

IMC Exploration Group (NEX: IMCP), focused on acquiring and exploring prospecting licence areas which have high potential for natural resource, is looking to admit its shares to the standard list and will withdraw for the NEX Exchange. Expected 11 June 2019

Main Market (Specialist Funds)

Riverstone Credit Opportunities Income  – raising US$200m—will seek to generate consistent shareholder returns predominantly in the form of income distributions principally by making senior secured loans to energy-related businesses. Due 24 May

AIM

Essensys plc—a provider of mission-critical SaaS platforms and on-demand cloud services to the high growth flexible workspace industry, plans to join AIM. £28m raised. Half primary, half shareholder sell down expected 29 May 2019. Mkt cap £72.6m.  Issue price 151p.

SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m

Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019.

Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019

NEX Exchange

SSuINOx—has developed a hydrocarbon fuels conditioning and emulsifying process that enables more efficient fuel combustion, leading potentially to reduced fuel usage and significantly lowered emissions.  Offer TBA.

Breakfast Buffet

Location Sciences (LSAI.L) 3.37p £11.5m

The location verification provider to the $106bn digital advertising industry, is pleased to announce the appointment of Donald “Donnie” Williams as a non-executive director of the Company with immediate effect.

 

Donnie has worked at Horizon Media, Inc. for nearly 13 years and has served as Chief Digital Officer since 2010, responsible for business development, operations, capability establishment and implementation, as well as marketing. He has been instrumental in expanding Horizon’s digital capabilities, including its performance media services division, as well as its digital experiences practice, providing Horizon clients with comprehensive solutions. He manages an expanding team of more than 300 digital experts with established capabilities in both the New York and Los Angeles offices.

 

Hargreaves Services (HSP.L) 249.63p £80.19m

“The diversified group delivering services to the industrial and property sectors, is pleased to announce that it has exchanged conditional contracts with Bellway Homes Limited for the sale of 10.75 acres of serviced residential development land at its key Blindwells site near Edinburgh.

Legal completion of the Bellway transaction, which is valued at over £9m in proceeds to Hargreaves, is principally dependent upon receiving detailed planning permission and associated statutory approvals. It is expected that these will not be received until the second half of calendar year 2020.

The entire Blindwells site has outline planning consent for 1,600 houses.

Earlier this year, a conditional contract was exchanged with a leading Scottish housebuilder in Hargreaves’ first sale of land at Blindwells. The contract has a value to Hargreaves of over £1m. Detailed planning consent is expected shortly for that plot, with legal completion anticipated in the first half of the financial year ending 31 May 2020.”

 

Victoria Oil & Gas (VOG.L) 12.38p £31.57m

 FYDec18 results.

  Grid Power customer, ENEO, ceased consumption in January 2018

  • 62% decrease in annual gas sold – Gross 1,410 mmscf /Net 804 mmscf (2017: Gross 3,684 mmscf /Net 2,163 mmscf)
  • 66% decrease in average daily gas production 3.75mmscfd (2017: 10.98mmscfd)
  • Attributable revenue of $10.8 million (2017: 23.5 million), EBITDA a loss of $0.53 million, (2017: $4.59 million), Loss before tax $8.3 million, (2017: $10.7 million)
  • Cost cutting programme commenced – 24% reduction year-on-year
  • 8 additional customers consuming gas with 39 customers at year end
  • On 21 December 2018, ENEO entered into a three-year binding term sheet with GDC for gas to power supply to 30MW Logbaba Power Station

 Q1 2019 average gas production rate increased by 127% during the period to 10.10mmscfd (Q4 2018: 4.45mmscfd) . $17.7m raised post year end at 13p.

 

Fevertree Drinks (FEVR.L) 2,798p £3.28bn

AGM statement from the supplier of premium carbonated mixers .

“2018 was a year of significant progress for Fever-Tree. The Group reinforced its market leading position in the UK, successfully established its own operations in the US and the business made real progress across Europe.

The beginning of 2019 has seen further encouraging operational progress across our key international regions as the Group continues to invest in widening and deepening its distribution networks. Whilst we are mindful of last year’s exceptional summer trading performance in the UK, we remain confident in achieving Board expectations for the full year ending 31 December 2019.”

 

IQE (IQE.L) 73.5p £581m

global supplier of advanced wafer products and materials solutions to the semiconductor industry, provides the following trading update in response to action taken by the Bureau of Industry and Security (BIS) of the United States Department of Commerce to add Huawei Technologies . The BIS action prohibits the sale to Huawei, by certain of IQE’s customers, of products covered by the Export Administration Regulations (EAR) absent obtaining an appropriate export license.

IQE believes it is in a strong position to adjust to the possible consequences and scenarios resulting from this in a positive manner. Across all product lines, IQE has supply relationships with multiple non-US customers.

The company has been engaging across its customer base in recent days specifically on this subject and estimates that its current maximum risk exposure to this matter is less than 5% of total FY 2019 revenue guidance.

Although there remains uncertainty and unpredictability related to this specific matter, given the market opportunity IQE faces in H2, the company leaves full year guidance unchanged.

 

Two Shields (TSI.L) 0.1p £2.3m

The  investment company with a strategy to build a high quality portfolio of investments in fast growing and scalable digital and technology enabled businesses, is has today signed a Share Purchase Agreement pursuant to which certain shareholders of WeShop Limited (a TSI investee company) have conditionally agreed to swap their shares in WeShop for the issue and allotment of new Ordinary Shares in TSI.

WeShop is an innovative, digital social network platform focused on the rapidly growing and highly valuable social e-commerce sector forecast to become a US$350 billion market over the mid-term. WeShop’s digital platform enhances online shopping experiences by combining social media’s assets of reviews, likes, and shares with an engaging retail e-commerce offering, specifically tailored to the individual user.

Subject to GM approval, the Transaction will be completed with settlement made effective through the issuance by TSI of 1,000,000,000 Consideration Shares, conditional upon Admission.  On completion of the Transaction, TSI will increase its holding in WeShop from 1.71% to 6.7%

 

Caledonian Trust (CNN.L) 245p £28.9m

The Edinburgh-based property investment holding and development company, provides an update on its proposed sale of St Margaret’s House, 151 London Road, Edinburgh to Drum Property Group Limited . Details of the Proposed Disposal were originally announced by the Company on 5 February 2018.

Following recent discussions, Caledonian Trust and Drum have agreed to amend the missives originally entered into on 2 February 2018 in relation to the Proposed Disposal, in order to allow Drum sufficient time to progress with the Proposed Disposal.

Drum has been diligently pursuing its proposals for its development and good progress has been made, including completing the necessary investigation of the ground conditions and resolving a mixture of technical challenges, including designing a new and improved vehicular access to the site.  Drum is now in a position to finalise their proposals for submission of the requisite applications for detailed planning consent. The Directors expect that completion of the Proposed Disposal will take 24 months from today’s date.  “It is unlikely that any additional consideration will be received over and above the consideration of £15m”.

 

Caspian Sunrise (CASP.L) 10.15p £185.2m

FYDec18 results from the Central Asian oil and gas company with a focus on Kazakhstan.

  • Revenue increased by 41% to $10.7m (2017:$7.6m) with a greater quantity of oil sold;
  • Administrative costs fell 11% to $2.6 m (2017: $3.4m), resulting in a reduced loss from continuing operations of $3.4m (2017: $4.7m);
  • Loss for the year of $8.5m (2017:$4.7m) includes $5.1m (2017:$Nil) on discontinued operations at Munaily, mainly due to historic foreign exchange losses recycled from equity to income statement on disposal;

“The Group is underpinned by steady and growing income from its MJF production, which on its own justifies a meaningful valuation.

The Directors continue to regard additional potential arising on getting any of the four deep wells already drilled or in the course of completion as being huge. That coupled with new opportunities under review leads the board to look to the future with confidence.”

 

Gulf Marine Services (GMS.L) 10p £35.75m

The leading provider of advanced self-propelled self-elevating support vessels servicing the offshore oil, gas and renewable energy sectors, is pleased to announced that Stephen Kersley will be appointed Chief Financial Officer of GMS, effective 9 June 2019.

Mr Kersley brings a wealth of energy sector experience gained in over 35 years in the industry. Mr Kersley was previously Chief Financial Officer (CFO) of Tervita Corporation, a Canadian oilfield services business. Prior to that he spent three years as CFO of Abu Dhabi National Energy Company PJSC (TAQA), one of Abu Dhabi’s flagship companies vital in helping to deliver the economic strategy of the Emirate of Abu Dhabi. He led the successful capital restructuring at Tervita, and at TAQA he raised over $6bn in four bond issuances, while also fundamentally reshaping the company’s portfolio with US$2bn of acquisitions and US$1.5bn of divestments. Before these roles, he spent 24 years with Royal Dutch Shell, 10 as a Vice President, working in Asia, Europe and the Middle East. Mr Kersley is a Member of the Institute of Chartered Accountants for England and Wales (ICAEW)and has a BA (Hons) degree in Law from Birmingham University.

 

Global Ports (GPH.L) 370p £243m

“The world’s largest independent cruise port operator, is pleased to announce that it has been notified by the government of Tunisia that the Group’s bid, submitted in a joint venture with MSC Cruises S.A. , to acquire Goulette Shipping Cruise, the company that operates the cruise terminal in La Goulette, Tunisia has been successful.

The concession to operate the cruise port was awarded to Goulette Shipping Cruise in 2006 on a 30-year basis, with a right to extend the term for an additional 20 years. While passenger volumes have been low in recent years, in 2010, La Goulette welcomed c900k passenger and between 2011-2014 it welcomed on average 441k cruise passengers per annum.

All parties will now work together to conclude the legal agreement for the acquisition and we will provide an update at our interim results in August 2019.”

 

Head Chef:

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

*A corporate client of Hybridan LLP

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