Small Cap Feast

Small Cap Feast – 25 November 2019

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What’s Cooking in the IPO Kitchen?

What’s cooking in the IPO kitchen?

AIM

The Pebble Group, a provider of products, services and technology to the global promotional products industry, announces its intention to seek admission of its shares to trading on the AIM market of the London Stock Exchange, which is expected to take place in early December 2019.The Group delivered revenue of £99.8m in the year ended 31 December 2018.No mention of bottom line and a suggestion that funds raised would provide an exit to private equity shareholders and the repayment of debt. Offer TBA.

Longboat Energy raising £10m. Expected admission November 2019. The company has been established by the former management team of Faroe Petroleum to create a new full-cycle North Sea oil and gas company .The strategy to achieve this will initially be through the acquisition of assets where the management team can add value through subsurface and operational improvements, follow-up deal opportunities and near-field exploration; and by value creation through the drill bit.

NEX Exchange

Sapo PLC – Seeks to invest in the developing market for rural broadband in the UK. Due 2 Dec

Main Mkt Standard

Taseko Mines – North American focused copper producer and developer, seeking a London Listing. No capital raise. Due 22 Dec

SDIC Power – “potential intention to float”. Proposed GDR listing. Leading power generation company in China, with a diversified portfolio of projects across hydropower, coal-fired power, wind power and solar power. Offer TBA

Main Mkt Premium

Octopus Renewables – Seeking raise of up to £250m. Will seek to provide investors with an attractive and sustainable level of income returns, with an element of capital growth by investing in a geographically and technologically diversified spread of renewable energy assets—Due 10 Dec

Breakfast Buffet

Sportech (SPO.L) 32.7p £61.7m

The Group continues to drive operational efficiencies through all business lines and anticipates that FY 2019 Group adjusted EBITDA, excluding Sports Betting investments, will be ahead of the Board’s expectations whilst Group revenue will be in line with the Board’s expectations.

Positive decisions have been taken to restructure the Group, exit certain non-profitable activities and streamline costs.  This will impact the exceptional items cost line in FY 2019, as stated in the HY 2019 results, but deliver long term returns.  In addition, the Group has determinedly focused on reducing low-return capex projects, and as such FY 2019 capex is expected to reduce significantly versus FY 2018.

 

Wandisco (WAND.L) 385.5p £174m

Subscription by existing holders raising c. $16.5m at 425p. “The proceeds will be used to support our relationships with strategic cloud partners and provide growth working capital.”

WANdisco has continued to win contracts across a variety of end-markets and partners, including a recently announced contract with Micro-D valued at $3m over three years. The Company has good visibility into renewals and a growing pipeline of late-stage deals with strategic partners during the second half and reiterates its revenue guidance given on 25 September 2019 for the 2019 financial year.

Corero Networks (CNS.L) 3.45p £13.9m

 HYSep19 results.

The network security company, is pleased to announce a conditional Placing and Subscription to raise up to £3.25m ($4.2m) before expenses. The net proceeds of the Placing and Subscription will be used:

  • to support SmartWall sales and marketing activities in the US and Europe;

  • for further development of the SmartWall product; and

  • for the general working capital requirements for the Group.”

Priced at 3.5p, a premium to Friday’s close of 3.15p.

IDOX (IDOX.L) 36.4p £159.5m

The supplier of specialist information management solutions and services, issued a trading update for its financial year ended 31 October 2019.

The Group continues to make good strategic and commercial progress across the business and expects to report results in line with the Board’s expectations:

  • revenues of £66.0m (2018: £67.4m).    revenue visibility significantly improved, with annualised recurring revenue run rate at 31 October 2019 up 20% to £38.9m following adoption of IFRS 15 (16% organic)
  • contracted software and services order book up 29% to £12.1m.
  • adjusted EBITDA £14.4m (2018: £14.4m).
  • net debt at 31 October 2019 down 17% at £26.4m (2018: £31.8m).

·    statutory profit before tax of £0.3m (2018: loss of £27.0m) for continuing

Intercede (IGP.L) 34.5p £16.9m

The specialist in digital identity, credential management and secure mobility, today announces its interim results for the six months ended 30 September 2019.

Revenues increased by 5% to £4.4m reflecting a strong end to the half with orders received from both new and existing customers.

Operating expenses reduced by 9% to £4.3m (2018: £4.8m), which reflects staff cost savings and continued tight control of overheads.

A return to operating profit of £25,000 (2018: £609,000 operating loss), the first time this has been achieved since the corresponding period six years ago.

As in previous years, revenue is expected to be H2 weighted. Whilst the nature of Intercede’s business and customer profile is such that the precise timing of orders is difficult to predict, the current sales pipeline and levels of bid activity continue to support management’s revenue and profitability targets.

Brickability (BRCK.L) 63p £145.2m

HYSep 19 results from the construction materials distributor.

  • Revenue increased by 19.8% to £97.9m ·    Gross profit increased to £19.1m (H1 18 : £16.0m)
  • Profit before tax increased 33.4% to £6.8m (H1 18 : £5.1m)

Adjusted EBITDA increased to £10.4m (H1 18 : £8.7m)

Maiden interim dividend declared of 0.87p per share

“We are confident of building on a strong first half and the acquisitions made during the period are performing in line with expectations.  We have a healthy acquisition pipeline, the outlook for our markets is positive and the board remains confident of meeting full year expectations.  Looking ahead, the longer-term outlook for our markets remains encouraging and we are pleased to see that all the main political parties have made substantial commitments to build more houses.”

Latham (James) (LTHM.L) 862.5p £171.6m

Acquired the entire issued share capital of Dresser Mouldings (Rochdale) Limited (“Dresser”), a specialised processor of timber and cladding products.

The Company has acquired Dresser for £1m. The consideration will be satisfied in cash from the Company’s existing resources.  For the year ended 31 December 2018, the turnover of Dresser was £2.3m and EBITDA was £276k.

Founded in 2009, Dresser specialises in the processing and vacuum coating of bespoke timber products, the production of timber mouldings and other specialist timber machining for use in a variety of market segments.  Dresser operates from its site in Rochdale and via an online store.

Cake Box (CBOX.L) 146p £58m

 HYSep19 results. Group revenue up 6.0% to £8.8m

Gross margin improved to 45.0% (H1 FY19: 44.3%)

EBITDA down 9.0% to £1.97m (H1 FY19: £1.97m) reflecting additional plc costs for only 3 months in prior year period, reversal of anticipated H1/H2 weighting of store openings compared to prior year and further investment in the business

Interim dividend up 33% to 1.60p (H1FY19: 1.20p) reflecting strong cash generation with cash from operations of £1.85m (H1 FY19: £1.01m)

Strong balance sheet at period end with £1.50m net cash (30 September 2018: £0.80m)

Trading during the first eight weeks of the second half has been encouraging and we have already opened five new franchise stores, including our first in Wales, and remain on track for our full year franchise store openings target.

NQ Minerals (NEX:NQMI) 7.5p £24.4m

The Company’s Hellyer mining and processing operations in Tasmania have continued to improve considerably since the last update to the market a few weeks ago. Recoveries of Hellyer’s two key outputs of Lead and Zinc concentrates continue to steadily improve and it is pleasing to see the plant operating at record concentrate production levels month to date. The Company still sees room for significant improvements through 2020 as the project

Savannah Resources (SAV.L) 2.23p £28.5m

The “company focused on becoming Europe’s most significant producer of spodumene lithium from its Mina do Barroso Project in Portugal, is pleased to announce that it has become a sponsor to FST Lisboa, a team of engineering students from the University of Lisbon focused on the design and build of innovative, lithium-ion battery powered formula race cars. “

Head Chef:

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

*A corporate client of Hybridan LLP

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