Small Cap Feast

Small Cap Feast – 26 February 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 910

Total number of AIM Companies trading: 842*
* As at 18 February 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 18 February 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 145*

Total number of Standard List Companies trading: 128*
* As at 18 February 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)

DWF, a global legal business,  expects to raise primary gross proceeds of approximately £75m. Due March


United Oil & Gas (UOG.L) an oil and gas exploration and development company brought to the Official List (Standard Segment) in July 2017 by way of a reverse takeover of Senterra Energy plc. No capital to be raised, expected market cap of £17m and expected 1 March

Techniplas –global  producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient.  FYDec17 rev $515m.

Polemos, to be renamed Digitalbox plc, has agreed to acquire Digitalbox Publishing Holdings Limited for c.£10m through a share for share exchange. The acquisition constitutes a RTO. Polemos has also agreed to acquire the entire issued share capital of Mashed Productions Limited, a digital media business which owns the online satirical news website “The Daily Mash”, for a maximum total consideration of up to £1.2m. Market cap on admission £12.4m, expected 28 February

Breakfast Buffet

TMT Investments* (TMT.L) $3.62 $106.3m

TMT Investments, the venture capital company investing in high-growth technology companies, announced an investment of $2m in MEL Science Limited.

MEL Science is a London-based education technology company that has developed a platform for next-generation science lessons combining VR/AR interactive visual lessons with hands-on experiments.  MEL Science’s first product, MEL Chemistry, is a B2C subscription service, which combines physical kits for science experiments with a VR mode-equipped iOS & Android App, and is available in more than 30 countries.

The funds raised in this round will be used by MEL Science to expand into new science subjects and scale up sales in existing and new countries.

EdTechXGlobal and IBIS Capital project that the global education technology (EdTech) market will grow 17% per annum to $252bn by 2020, with the Asian market being a key driver of this growth.


Morses Club (MCL.L) 159p £206.37m

Morses Club, the UK’s second largest home collected credit lender, announced that it has acquired, through its fully owned subsidiary Shelby Finance Ltd, the business and certain assets of CURO Transatlantic Limited, trading as WageDayAdvance out of administration. The total consideration for the acquisition is approximately £8.5m paid in cash, 50% on completion and the balance over 5 months.

CURO TA is a provider of online loans in the non-standard credit market. Under the terms of the Transaction, Morses Club is acquiring all the existing infrastructure of CURO TA including its decision platform, call centre, and online lending capabilities. The gross receivables (before any collection provisions), which exclude all the CURO TA bad loans identified by the Company, amount to approximately £19m.

This acquisition fits well with the Company’s stated strategic priority to increase its online offering in response to a growing demand. The acquisition also adds a sizeable customer base of around 50,000, increasing the Company’s overall customer base by over 20%.

While it is not expected to add to earnings in the first 12 months, management are confident that the acquisition will make a positive contribution to earnings in FY21.


Echo Energy (ECHO.L) 4.55p £20.43m

Echo Energy, the Latin American focused upstream oil and gas company, announced the safe and efficient completion of the 3D survey on schedule across the eastern cube on Tapi Aike. Initial indications suggest very good data quality. The equipment will now mobilise to the western cube and start acquisition once all equipment is on site and surveys have been completed.  The eastern cube (Chiripa Oeste) covers 414 sq km and the western cube (Travesia de Arriba) covers 790 sq km and will underpin the Tapi Aike drilling campaign.

The Company also confirms that it is currently utilising the results of mechanical stimulation at the EMS-1001 well at the Company’s Fracción C licence, onshore Argentina, to refine a mechanical stimulation design for the ELM-1004 well. This refined stimulation design, once complete, will be considered in the light of the reservoir characteristics at the location and enable a final decision to be taken on whether to proceed with the stimulation

Hotel Chocolat (HOTC.L) 321p £345m

Hotel Chocolat Group, a premium British chocolatier and omni-channel retailer, announced its interim results for the 26 weeks ended 30 Dec 2018.

Revenue up 13% to £80.7m (H1 FY18: £71.7m)

Underlying EBITDA up 10% to £17.3m (H1 FY18: £15.8m)1

Excluding new US & Japan start-ups, profit before tax up 11% to £14.4m (H1 FY18: £12.9m)

Reported PBT up 7% to £13.8m (H1 FY18: £12.9m)

Profit after tax up 7% to £10.8m (H1 FY18: £10.1m)

Cash flows from operating activities up 18% to £29.5m (H1 FY18: £24.9m)

Strong balance sheet with net cash at period end of £21.8m (H1 FY18: £18.3m)

EPS up 7% to 9.6p (H1 FY18: 9.0p)

Interim dividend of 0.6p per share (H1 FY18: 0.6p)


Tekmar Group (TGP.L) 110p £50.69m

Tekmar Group, a market-leading technology provider of protection systems for subsea cable, umbilical and flexible pipes and offshore engineering services, announced that Tekmar Energy has signed a remedial contract worth c.£3m for execution over the next six months.

The contract is for bespoke remedial cable protection systems for replacement subsea cables to be installed on an existing UK offshore wind farm.


Restore (RST.L) 281p £348.27m

Restore, the UK office services provider, has sold ITP, its toner cartridge recycling business, to Ink & Toner Recycling Limited. Restore will receive a 40% stake in Ink & Toner as consideration and will be represented on Ink & Toner’s board.

Restore will treat ITP Group, which generated revenues of approximately £4m and a small operating loss in the year ended 31 Dec 2018, as a discontinued activity and account for it as a minority interest going forward.


Kromek (KMK.L) 27p £69.96m

Kromek, a worldwide supplier of detection technology focusing on the medical, security screening and nuclear markets, announced that it has been awarded a contract by a new OEM customer to supply CZT detectors for use in the nuclear security market.

The contract, which commences immediately, is worth at least $1.4 million and will be delivered over a three-year period, with minimum annual volumes for each year.


Surface Transforms (SCE.L) 15.75p £20.41m

Surface Transforms manufacturers of carbon fibre reinforced ceramic materials, announced its half-year financial results for the six months ended 30 Nov 2018.

Revenue decreased 3% to £509k (H1-2017: £524k)

Gross profit increased 13% to £322k (H1-2017: £286k)

Loss before and after tax increased 15% to £1,482k (H1-2017: £1,294k)

Cash at 30 Nov 2018 was £745k (31 May 2018: £923k)

Successful equity placing raising £1,466k in the period

Capex on property, plant and equipment of £156k (H1-2017: £684k) mainly related to the installation of OEM Production Cell One

Inventory of £1,062k (31 May 2018: £855k)


Europa Oil & Gas (EOG.L) 2.95p £12.56m

Europa Oil & Gas, the UK and Ireland focused oil and gas exploration, development and production company, announced a new prospect inventory for Licensing Option (‘LO’) 16/20 in the Slyne basin in Atlantic Ireland. LO16/20 includes the Company’s flagship Inishkea prospect which lies immediately to the north west of, and abuts, the producing Corrib gas field in the Corrib Field Petroleum Lease Area.

Inishkea gross mean un-risked prospective gas resources of 1.5 trillion cubic feet.

Chance of success estimated as 1 in 3

Site survey planned for summer 2019, targeting a well, subject to funding and regulatory consent, in 2020

Farm-in negotiations ongoing with a major oil and gas company in respect of three of Europa’s offshore Ireland licences, including LO 16/20 which holds Inishkea


Synectics (SNX.L) 197p £35.14m

Synectics, a leader in the design, integration, control and management of advanced surveillance technology and networked security systems, reported its audited final results for the year ended 30 Nov 2018.

Revenue £71.2m (2017: £70.1m)

Underlying profit £2.9m (2017: £3m)

On a constant currency basis, revenue £72.3m and underlying profit £3.1m

PBT £2.1m (2017: £2.5m) after mostly non-cash non-underlying costs of £0.7m in mobile systems business area

Continued investment in technology development of £3.1m (2017: 2.6m)

Net cash at 30 Nov 2018 £8.1m (2017: £3.8m); no bank debt

Diluted EPS 9.1p (2017: 12.4p)

Year-end order book £21m (2017: £24.4m)

Recommended final dividend of 3.5p per share (2017: 3p) giving total dividend payable for the year of 4.7p (2017: 4p)


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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