Small Cap Feast

Small Cap Feast – 26 July 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 888

Total number of AIM Companies trading: 806*
* As at 19 July 2019

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 87*

Total number of NEX Growth Market Companies trading: 85*
* As at 19 July 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 165*

Total number of Standard List Companies trading: 143*
* As at 19 July 2019

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

Dish of the Day:

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Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

Main Market

Interswitch, a Nigeria-based payments firm, has hired advisers to resurrect plans for a stock-market listing in London and Lagos later this year, which may value the financial technology company at $1.3 billion to $1.5 billion.

AIM

Roxi Music UK music streaming service plans London IPO as it goes up against Spotify. They have appointed investment bank Arden Partners for an initial public offering (IPO) on the London Stock Exchange later this year.

NEX

Freyherr International Group PLC the Medicinal Cannabis holding company established in 2016,  is planning to list on the NEX exchange on the 30th July

Breakfast Buffet

Mulberry Group (MUL.L) 263p £157.9m

The British luxury brand, announced the acquisition on 24 July 2019 of the minority interest in the share capital of Mulberry Korea, the Group’s business in South Korea

The Group has acquired 40% of the share capital of Mulberry Korea previously held by its local partner, SHK Holdings Limited

Mulberry Korea is now a wholly owned subsidiary of the Group

Additional investment made in Mulberry Korea is £1.3m

Together with its initial investment of £3.1m made during Aug 2018, this brings the Group’s total investment in Mulberry Korea to £4.4m

The Acquisition is in line with the Group’s international development strategy

 

Motif Bio (MTFB.L) 2.58p £8.84m

The clinical-stage biopharmaceutical company specialising in developing novel antibiotics, announced that the U.S. FDA has granted the Company’s request for a Type B meeting related to a proposed clinical study for the Company’s lead product candidate, iclaprim. The in person meeting has been scheduled for Sept 19, 2019.

As previously announced, Motif Bio submitted a meeting request and clinical study proposal to the FDA based upon the minutes from a May 3, 2019, Type A meeting with the Agency, which indicated that an additional clinical trial will be required prior to granting marketing approval for iclaprim. The Company was encouraged by the FDA to put forth a proposal for such a study, and Motif Bio plans to discuss the proposed patient population and study design with the Agency at the upcoming meeting.

 

Block Energy (BLOE.L) 8.6p £42.31m 

Resumption of Production at West Rustavi. Production resumed on 11 July and since testing began the Well has produced at an average rate of approximately 360 boepd (295 bopd plus 390 Mcf/d) on varying choke sizes, with an average water cut of 25%, considered to be mainly returned drilling fluid.

A minimum of 1,200 barrels of drilling fluid were lost to the Well during drilling and completion operations, a considerable amount indicative of the high productivity of the fractures system. Estimates of the volume of water produced and observations of polymer and other drilling fluid chemicals indicate that the Well continues to clean up lost drilling fluid and stabilise.

The Company is adopting a prudent approach, gradually increasing production to establish a sustainable flow rate as the Well cleans up.

 

Mothercare (MTC.L) 18p £67.49m

The specialist global retailer for parents and young children, issued the following trading update, covering the 15-week period to 13th July 2019

Progress made in creating the optimal structure for UK retail operations as an independent Mothercare UK franchise

Revised expectation that the medium-term outlook for the UK market will continue to be uncertain and volatile, accompanied by fragile consumer confidence.

Underlying full-year PBT is forecast to be broadly comparable to the prior year, inclusive of an estimated negative impact of £2m of adopting IFRS16.

International: Growth in the key markets of India +5.5%, Indonesia +10.5% and Russia +3.4%, offset by retail sales decline in the Middle East of 11.1%

 

Shield Therapeutics (STX.L) 158.5p £121.19m

The “commercial stage, pharmaceutical company with a focus on addressing iron deficiency, announced that the U.S. FDA has approved its lead product Feraccru® / Accrufer® for the treatment of iron deficiency in adults.”

 

Shearwater Group (SWG.L) 1.9p £42m

The organisational resilience group, announced that its group company Xcina Consulting has won a multi-year contract to deliver a qualified security assessment of Parkmobile’s UK and NL card data environment to ensure that its business is compliant with the Payment Card Industry Data Security Standard.

Parkmobile, part of the BMW Group, specialises in electronic and digital parking solutions. It serves over 22 million customers in more than 1,000 towns and cities internationally. In the UK, it operates in over 70 towns and cities and processes in excess of 80 million card payments pa.

 

Begbies Traynor (BEG.L) 75p £89.33m

The business recovery, financial advisory and property services consultancy, announced a proposed placing to raise gross proceeds of up to £8.3m  at 75p.  The Company intends to use the net proceeds of the Placing to fund acquisition opportunities.

 

Versarien (VRS.L) 128.5p £197.8m

The advanced materials engineering group, announced that it has signed a Letter of Intent  with the Company’s textile sector collaboration partner  covering the initial launch of high performance sportswear incorporating Versarien’s graphene ink technology.

The Partner, who has a collaboration agreement with the Company, as announced on 8 Jan 2018, is headquartered in Asia and designs, develops and manufactures a range of different garments for well-known apparel brands globally.

 

Safestyle (SFE.L) 65.8p £54.48m

The retailer and manufacturer of PVCu replacement windows and doors to the UK homeowner market, issued a trading update for the six months ended 30 June 2019, in advance of its half year results announcement scheduled for 19 Sept 2019.

Since the Group’s AGM Statement on 16 May 2019, management has continued to make progress on Phase Two of its Turnaround Plan which is focused on recovering volumes and market share, restoring operational effectiveness, reducing costs and enhancing margins. As expected, the first half of the year will result in a small loss, but despite a challenging market where consumer demand appears soft, the Group remains on track to deliver a small profit for the full year which is in line with current market expectations.

In the first half of the year, the Group continued to rebuild its order book and as a result, revenues for the period will be c.£64.4m, 6.4% higher than H1 2018 with May and June being c.15% higher than the same months in 2018.

 

Remote Monitored Systems (RMS.L) 0.62p £2.22m

The survey, inspection and monitoring company, announced an update on its GyroMetric Systems Limited business where it owns 58%. “GyroMetric’s products are gaining considerable interest in several markets – marine drive systems, oil & gas, and wind turbines – and a growing installed base in the first of these. These expressions of interest vary from strategic applications at the heart of large corporate developments to immediate needs for specific problems to be solved. What they have in common is that the potential customers are very large corporations which move relatively slowly even when the problem is immediate and budget is available. A little more than 18 months ago GyroMetric moved out from its first customer base in marine drives where it had strong validation of its products in mission critical applications, to develop interest in much larger markets at a very senior level. This has been particularly effective in the offshore wind turbine market but these projects take time to develop.”

Marine drives— new orders for new-build installations for the company’s longest standing end customer.

Oil & Gas— contract with a well-known UK industrial group to provide test instrumentation at their facilities and this is on track for delivery by Sept.

Wind—ongoing appraisals with two major turbine producers.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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