Small Cap Feast

Small Cap Feast – 25 October 2018

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

Nova Ljuublianska banka—financial and banking institution based in Slovenia with a network of 349 branches,  dual listing process in Ljubliana with GDRs in London. For HYJun18 and for FY17 the Group recorded a net profit equal to EUR 104.8 million and EUR 225.1 million, respectively. 50% plus sell down.  Prospectus due for release 26 Oct.

Merian Chrysalis  Investment Co –Seeking a £200m raise.  Due 6 Nov. Objective is to generate long-term capital growth through investing in a portfolio consisting primarily of equity or equity related investments in unquoted companies .

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 early Nov

Main Market (Standard)

ECI Telecom— provider of comprehensive networking and data transport products and solutions. Raising c.$230m and potential sell down. Due late Oct

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.

Gresham House Energy Storage Fund  – will invest in utility-scale  Energy Storage Systems in the UK. Raising up to £200m. Due 5 Nov.

Blue Ocean Maritime Income  – aims to generate long-term, sustainable shareholder returns, predominantly in the form of income distributions, from direct lending and similar financing opportunities to vessel owners and operators, and other maritime businesses.  Raising up to $250m. Due 23 Oct.


Renalytix AI—developer of artificial intelligence (“AI”) decision support and clinical management tools for improving early diagnosis, continual monitoring and drug development for kidney disease. incorporated in March 2018 as a subsidiary of EKF Diagnostics Holdings  (AIM-EKF).  Total fundraising in the range £21 – 25 m. Mkt cap – c. £67.5- £71.0m. Due 2 Nov.

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

Kropz PLC—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. Looking to join AIM, offer TBC, market cap TBC. Due Late October.

Azalea Energy—oil and gas production and development company based in Louisiana, United States.  Net production of 13 MMcfe/D (2,200 boepd) and total 1P proved reserves of 91 Bcfe (15.1 mmboe), 2P reserves of 111 Bcfe (18.5 mmboe) raising up to $38m, expected mkt cap over $100m. Due 29 Oct

Path Investments— First acquisition of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m raise. Due late Oct

Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months.

NEX Exchange

Auxico Resources—Proposed dual listing of  the Canadian listed precious and base metals  company engaged in the acquisition, exploration and development of mineral properties in Colombia and Mexico.  Due 26 Oct. Mkt cap C$7.8m

Breakfast Buffet

Alumasc (ALU.L) 128.5p £45.8m

AGM Update from the premium building products, systems and solutions group. “Whilst external forecasts continue to point to a more challenging UK construction market in 2018, our first quarter performance was resilient, with revenues up 3% on the equivalent period last year. This reflects a solid like-for-like performance in our UK businesses, as well as the contribution from Wade (acquired in Jan 2018), which was offset in part by a quieter period for export sales. First quarter trading patterns have followed the broad trends experienced in our 2017/18 financial year, with Timloc, Wade, Alumasc Water Management Solutions, Rainclear and Alumasc Roofing continuing to perform strongly.” “In view of the above, management’s expectations for the full year performance remain unchanged.”

Has confirmed intention to relist on AIM.

FYJun19 PE c.7x and yield c.5.9%.

Centaur Media (CAU.L) 36.5p £50.6m

FYDec18 update and accelerated simplification plan from the international provider of market intelligence and specialist consultancy. Expects to deliver adjusted operating profit of between £5-£5.5m which represents year-on-year growth of 18% at the mid-point, although this is below current market expectations. The increase in profits reflects stronger performances from a number of the group’s innovative, leading brands, notably The Lawyer and Marketing Week’s Festival of Marketing and Mini MBA programme. In recent months, Centaur has received approaches for a number of its assets from potential trade and private equity buyers who recognise the intrinsic value in these businesses, which operate in fast-changing market segments and where leading brands can fetch attractive valuations. The Board believes this value is not reflected in Centaur’s current share price. “We will now explore whether selective divestments could maximise shareholder value within the medium-term.”

Green & Smart (GSH.L) 7p £24.18m

AGM Statement from the renewable energy company generating power from biogas captured through the treatment of palm oil mill effluent (“POME”) in Malaysia. “We are delighted with the performance of our Malpom biogas power plant, which we believe is converting POME at industry-leading efficiency levels. We remain confident of soon receiving the certificate of commercial operation for Malpom, which will enable us to sell power to the national utility at the full tariff rate.

“Work is underway on our third fully-owned biogas power plant, Minyak. We have completed the groundwork and expect to finish plant construction in Q3 2019 so that we will be in a position for grid connection by year-end 2019 pursuant to receiving approval rom the relevant authorities. With a capacity of 2.7MW, this will be our largest plant to date. This plant will be another lagoon-based system and so we will be able to leverage our experience with Malpom.”


Aura Energy (AURA.L) 1.05p £11.26m

The Häggån Vanadium Project Scoping Study is progressing well with substantial technical work completed over the past 8 weeks. Metallurgical test work combined with project capital and operating cost estimates have strongly increased Aura’s confidence in the project.

The vanadium price has risen approximately 900% over the past 3 years and was most recently quoted at $30.70 per lb1, benefitting from significant structural shifts in the Chinese steel industry where, in some cases, legislation has driven a three-fold increase in vanadium use. Currently low inventory levels with no near-term replacement capacity is driving this price continued rise.”

Aura continues to review the potential for an IPO of the Häggån Vanadium Project and this activity remains current. Aura Energy has a preference to complete the Häggån Vanadium IPO post the completion of the Häggån Vanadium Scoping Study in order to maximise value.


Smart Metering Systems (SMS.L) 542p £610m

“The integrated metering services company that connects, owns, operates and maintains current generation and new advanced metering assets and databases, is pleased to announce that it has signed an agreement with Bristol Energy to provide services as an integrated domestic smart meter installer and Meter Asset Provider.

Under the terms of the agreement, SMS will have initial access to a minimum 100,000 meter points to exchange, fund and install domestic smart meters on behalf of Bristol Energy.”

FYDec18E rev £93.14m and PBT £25.15m. Div 5.75p.


Begbies Traynor (BEG.L) 73.6p £81.24m

Q3 red flag alert report from the business recovery, financial advisory and property services consultancy.

“The number of UK companies rated as being in ‘significant financial distress’ during Q3 2018 has increased by 5% compared to the same quarter last year, according to the latest Red Flag Alert research data from Begbies Traynor, the UK’s leading independent insolvency firm.

The research data, which monitors the financial health of UK companies – shows that during Q3 2018, 469,006 companies across the UK were in significant financial distress – an increase of almost 21,000 on Q3 2017. However, significant distress has fallen 1% since Q2 2018 indicating that UK business health may be showing some signs of stability.”

FY Apr 19E rev £57m and £6.4m PBT.


Reabold Resources (RBD.L) 0.7p £26.8m

“The oil and gas investing company, is pleased to announce the completion of a Sales and Purchase Agreement (“SPA”) by Danube Petroleum [Reabold 29%] to purchase a 100% interest in the Iecea Marea Production Licence from the Romanian production company Amromco Energy SRL.

The operator of the Licence has contracted a rig and long lead items have been ordered for drilling the first well in Q1 2019.”

The acquisition of the Licence enables the Parta Appraisal well to be drilled from an optimal location within the Licence area and enhances Danube’s ability to organically develop other high-value gas production opportunities in the area. With the acquisition of the Iecea Marea Production Licence, Danube, on successful appraisal, has the ability for rapid tie in of gas production particularly given the proximal location of the active Calacea gas plant.


Feedback (FDBK.L) 1.55p £4.37m

The specialist medical imaging technology company, announces that it has conditionally raised a total of £1.375m  at 1.5p, a discount of approximately 11.8% to the closing mid-market price of 1.7p per Ordinary Share on 24 Oct 2018 .

Use of proceeds:

Expansion of the Company’s sales and marketing services

Development of technical product support for the new Cadran product offerings and to expand the Cadran customer base

To fund regulatory consultant commission costs in relation to the Company’s plans to secure regulatory approval of TexRAD® with the US FDA, including 510k as a medical device and CFR Chapter 21 part 11 compliance for use in clinical trials of drug candidates for FDA marketing approval

To develop the Company’s partnership with Imaging Endpoints, its US imaging company partner, in order to maximise its sales in the US

To facilitate new staff appointments


Oriole Resources (ORR.L) 0.47p £3.33m

The “exploration company operating in Africa and Europe, is pleased to announce results of systematic Air Core (‘AC’) drilling at its 85%-owned Dalafin project in the Kédougou-Kéniéba inlier of eastern Senegal, where IAMGOLD Corporation (‘IAMGOLD’) has the option to spend US$8M to earn a 70% interest (announcement dated 1 March 2018). In Q2 2018, IAMGOLD commenced a fully carried multi-phase drilling programme on the southernmost Madina Bafé prospect (announcement dated 31 May 2018) which lies c.12km to the west-northwest of IAMGOLD’s 2.49Moz (Indicated) Boto gold project (‘Boto’), where the geological setting is similar, including the presence of quartz-tourmaline veins.”

Best results include 2.48 g/t Au and 0.66 g/t Au;

Broadly WNW-trending anomaly (>20ppb Au) identified over 1.5 km in south-east of Madina Bafé


Mattioli Woods (MTW.L) 687.5p £180.75m

AGM Statement from the specialist wealth management and employee benefits business. “We have secured further revenue growth and operational efficiencies in the first four months of this financial year, and I believe the benefits of operating our integrated model will allow us to further reduce clients’ total expense ratios (“TERs”), whilst realising new operational efficiencies and synergies.  As reported by many participants in the UK wealth management sector, we have seen a lower level of client activity over the summer months, attributed primarily to poor investor sentiment and prolonged uncertainty over Brexit.  This “has been more than offset by resource and other administrative cost savings, resulting in EBITDA margin for the year to date tracking substantially ahead of target.” Pe c.18x. Yield 2 to 3%.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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 with “unsubscribe me”.