Small Cap Feast

Small Cap Feast – 26 February 2020

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What’s Cooking in the IPO Kitchen?


FRP  Advisory Group, UK professional services firm specialising in restructuring advisory. Raising £80m (£20m primary). Expected market cap £190m.  Compound annual growth of 16.4 per cent. in revenue and 10.9 per cent. in operating profit since the beginning of FY17.o  Strong average EBITDA margins of 51 per cent. over FY17 to FY19, and consistently strong cash conversion

Inspecs, a UK designer, manufacturer and distributor of eyewear frames to global retail chains announces its intention to IPO onto AIM raising £94m with a market cap of £138m.  Admission expected 27th February.  FY Dec 2018 numbers show revenue of $57m and underlying EBITDA of $11m

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)

DRI Healthcare—investment company focused on investments in healthcare Royalty Assets  looking to raise $350m. Due 11 Mar.

Ninety One –proposed demerger and public listing of  Investec’s  global asset management business on LSE and JSE. 30 Sep 2019 AUM £121bn. Sale of existing shares. Expected free float of >60%. Due 16 march.

Cabot Square—Closed ended investment fund focussed on alternative assets and asset manager. Looking to raise £200m.  Will target investment opportunities that are expected to generate an attractive risk adjusted return and that can also make a positive ESG impact by focusing on some of the biggest challenges facing societies and economies.  Due 14 Feb.

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.

NEX Exchange

Incanthera—Specialist oncology company focused on transforming cancer treatment by creating environments in which cancer cannot survive . Due 28 Feb.

Zapp Scooters, a developer and manufacturer of electric two-wheeled vehicles announced its intention to IPO on the NEX Exchange Growth Market.  The Company intends to raise up to £3.5m. Admission is expected to occur on NEX in February 2020.


Breakfast Buffet

REACT Group (REAT.L) 0.75p £3.12m

AGM Statement. The REACT specialist cleaning business continues to trade well.  In the period since the 30 September 2019 year end, margins and operational efficiency have continued to improve with maintained focus on quality of earnings and increasing business activity in sectors in which REACT provides the greatest value.

Progress is underpinned by recent contract wins, including the incremental half am-pound specialist cleaning contract in the rail sector, announced 23 January 2020, and the £121,000 deep cleaning contract at a large London hospital, announced 3 February.   Furthermore  a 3-year framework agreement has recently been awarded by another existing client, a large housing association in the North West of England.


Symphony Environmental Technologies* (SYM.L) 13.5p £22.9m

 Symphony announced breakthrough in the United States, following approval from the U.S. Food & Drugs Administration (FDA) for its d2p antimicrobial technology, for use in polyethylene (LLDPE) film for wrapping bread. Approval, which is not time limited, has been given under the Food Contact Notification procedure.

By virtue of the Federal Food Drug and Cosmetic Act (21 USC 348(h)(2)(C)) this approval is effective only for Symphony and does not include any similar or identical substance manufactured or prepared by a company or person other than Symphony. This approval therefore provides Symphony with a new and immediate commercial opportunity in the western world’s largest market, as well as in other markets which expect to see FDA approval.

This technology is intended to inhibit the growth of bacteria on the surface of the packaging film.


Kropz (KRPZ.L) 10.5p £29.76m

The emerging African phosphate explorer and developer, announces that Mr Ian Harebottle has resigned as its Chief Executive Officer and director, with effect from 29 February 2020. As a result of Mr Ian Harebottle’s resignation, the Board has appointed Mr Mark Summers, currently the Company’s Chief Financial Officer, as its interim CEO.

Kropz also announces   that its 74% subsidiary, Kropz Elandsfontein (Pty) Ltd has entered into a R30m (approximately US$1.98m) loan facility with Kropz’s major shareholder, the ARC Fund  ARC is also Kropz Elandsfontein’s 26% black economic empowerment shareholder in South Africa.  This facility is necessary to enable Kropz Elandsfontein to progress with the execution of the modifications required at the Elandsfontein phosphate project, as detailed in the Company’s announcement on 14 February 2020, which noted that additional processing equipment and infrastructure are required to deliver a consistent and saleable concentrate product.


Plexus Holdings (POS.L) 26.5p £26.6m

 The  oil and gas engineering services business and owner of the proprietary POS-GRIP® friction-grip method of wellhead engineering, announced that its Russian licensee, LLC Gusar  has placed an order for an additional set of POS-GRIP® exploration rental jack-up drilling wellhead equipment. This purchase by Gusar is in response to encouraging discussions between Gusar and its customers following the successful installation of a first POS-GRIP rental gas exploration wellhead in Russia for Gazprom (see announcement of 24 September 2019 for further details).  Pricing for the equipment was at market rates and payment will be in cash.

“The acquisition of additional POS-GRIP® exploration wellhead equipment by our licensee Gusar, so soon after the successful installation of the first POS-GRIP wellhead for major Gazprom, is highly encouraging and bodes well for Gusar securing further orders in Russia. ”


Fiske (FKE.L) 59p £6.9m

HY Nov 19 results.  Pre-tax operating loss of £158,000 compared to a loss of £344,000 for the comparable period in 2018.

Fee and commission revenues were some £334,000 higher than the prior year comparative which represents an improvement of approximately 15%.  Within this investment management fee revenues grew by 19% whilst  commission revenues increased by 12% when compared to the equivalent period to 30 November 2018.  This has delivered total revenues of £2.509m (2018: £2.163m) which is a result of generally improved market conditions and the continued migration of clients to fee paying services.

Assuming no significant deterioration in trading conditions, the board remains confident that the Group will continue to make further progress in 2020.


Zegona Comms (ZEG.L) 104.5p £230.8m

Euskaltel (Zegona 20%) returns to growth.  Euskaltel yesterday reported its Q4 2019 and FY 2019 results, with significantly improved operating KPIs for the year. In 2019, Euskaltel grew its fixed subscribers by 9k, with 18k broadband net additions and 47k postpaid mobile net additions. This is the first year of customer growth after two years of losses. The number of products and services also grew with more convergent customers, reaching an average of almost 3.7 services per subscriber. In the B2B market, Euskaltel similarly increased its customer base materially during 2019, reaching a record high of 15.3k customers. EBITDA for Q4 2019 reaching a record level of €92m, an increase of almost 8%


Reabold Resources (RBD.L) 0.59p £39m

Update regarding its operations in California.


  • VG-6 well on West Brentwood tested at 350 mscf/d and now on permanent production
  • New play at West Brentwood field opened up, providing additional follow on targets
  • Gross oil production across Reabold California of 50,286 barrels of oil equivalent between July and December 2019 (Reabold 50% equity interest)
  • Net revenue to Reabold from hydrocarbon sales in California of USD 1,349,000 between July and December 2019
  • Estimated cash operating cost per barrel of oil equivalent of $13


Egdon Resources (EDR.L) 3.9p £11.8m

 Update on production for the first half of the Company’s 2019-2020 financial year which ended on 31 January 2020.

Production during the Period was 32,758 barrels of oil equivalent (“boe”), at an average of 178 boe per day (“boepd”) (H1 2019: 30,026 boe, 164 boepd).  This is in line with previous guidance for H1 of 170-180 b/d. The previously stated guidance of 130-140 boepd for the full year remains valid.  Production was attained from the Ceres gas field and the Keddington and Fiskerton Airfield oil fields. 

The Company’s interim results for H1 2020 are scheduled to be announced on 21 April 2020.


Jangada Mines (JAN.L) 2.35p £5.7m

Initial results of the 2020 drilling programme on the Pitombeiras North target at its 100% owned Pitombeiras Vanadium Project (‘Pitombeiras Project’ or ‘the Project’), located in Ceara State, Brazil.

All 3 holes intersected VTM mineralisation

  • Results include:

o  38.00 metres at 0.558% vanadium oxide (‘V2O5’), 11.31% titanium (‘Ti’) and 38.40% iron (‘Fe’)

o  32.18 metres at 0.547%, 10.79% Ti and 37.22% Fe, including 13.25 metres at 0.740% V2O5, 14.63% Ti and 48.9% Fe


Microsaic Systems (MSYS.L) 1p £4.6m

The developer of point of need mass spectrometry (“MS”) instruments, is announced that it has signed a global integration and joint sales and marketing heads of terms with Axcend Corp (“Axcend”) to integrate the compact Microsaic 4500 MiD® MS with the portable Axcend Focus LC® (“LC/MS system”), and to commercialise the combined system globally using both companies’ direct sales and selected distribution channels.  The Axcend Focus LC® is a very small footprint, high-performance liquid chromatography system (“HPLC”).  “We are particularly excited by this partnership, which combines two highly differentiated compact products into a very powerful LC/MS system.”

Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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