Small Cap Feast

Small Cap Feast – 26 September 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 879

Total number of AIM Companies trading: 795*
* As at 23 September 2019

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 88*

Total number of NEX Growth Market Companies trading: 86*
* As at 23 September 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 166*

Total number of Standard List Companies trading: 144*
* As at 23 September 2019

Dish of the Day:

VAALCO Energy (EGY). (NYSE: EGY),  – an independent energy company focused on development and production assets in West Africa, announces the dual listing on the Standard Listing on the Main Market of London Stock Exchange, to complement its existing Listing on the New York Stock Exchange.

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 Standard

Kaspi.kz, the largest Payments, Marketplace and Fintech Ecosystem in Kazakhstan with a leading market share in each of its key products and services. GDR offering expected Oct 2019.  In the first half of 2019, the Company generated total revenue of KZT226,862m (U.S. $598m), up 34% and net income of KZT77,001m (U.S. $203m), up 54%

Main Market premium

Registration document approved for Helios Towers. The Group provides essential network services, flexible infrastructure solutions and reliable power supply to mobile network operators  in five African growth economies.  Revenue increased 7 per cent. year-on-year to US$191m (H1 2018: US$178m), with Adjusted EBITDA up 15 per cent. year-on-year at US$99m (H1 2018: US$86m) for the six months ended 30 June 2019.

Breakfast Buffet

Xeros Tech Grp (XSG) 7.11p £18.28m

Xeros Technology Group, the developer and provider of water saving and filtration technologies with multiple commercial applications, has spun out its Qualus tanning business operations to its management team in exchange for an exclusive worldwide licensing and royalty agreement.

The Qualus management team has formed a new company, ESTR Limited, which has acquired the physical assets associated with the business, its contracts including the LEFARC agreement and the brand “Qualus”.

Xeros has provided ESTR with a capped convertible loan facility in order to fund the business until the end of December 2019. The management team plan to raise further financing to fully commercialise the business.

ESTR has the exclusive rights for the use of Xeros’ patents in the tanning market and will pay the Group a royalty on its worldwide income in respect of these patents.

This spin-out will reduce the Group’s cost base beyond December 2019 as part of the previously communicated intention to be a pure play licensing company with a monthly cash burn rate of £0.6m per month from January 2020.

Trakm8 Holdings (TRAK) 20p £9.75m

Trakm8 Holdings the global telematics and data insight provider, is today announces the following trading update.

Half Year revenues are expected to be modestly ahead of last year, direct and indirect costs significantly lower. The Half Year adjusted loss therefore should be considerably lower than last year. 

Net debt excluding leases at the end of the Half Year will be in the range £5.6m to £5.8m (31.3.19: £5.6m), which is a very significant improvement on the cash outflow of the corresponding period of the previous year.  Even if the R&D tax reclaim is not received until October, the cash outflow will be significantly reduced on the corresponding period of the previous year.

The second half of the year will benefit from commencement of shipments to new volume insurance customers, resumption of shipments to our automotive customers along with the improved sales performance in the Fleet market. Direct and indirect costs are expected to continue to reduce, delivering incremental savings over and above the £2m communicated last financial year.

Creo Medical Group (CREO) 148p £179m

Creo Medical Group, a medical device company focused on the emerging field of surgical endoscopy, announces it has entered into a Distribution Partner Framework Agreement with MEDITEK SYSTEMS, to provide clinical training and market seeding across the Indian market for Creo’s CROMA Advance Energy platform and suite of products, including the Speedboat device, ahead of their official launch. 

Meditek will collaborate with Creo to advance the roll out of Creo’s Clinical Education Programme across the Indian market, training key clinicians in the use of Speedboat and the CROMA platform with the aim of ensuring quality control and best patient outcomes. Creo’s Clinical Education Programme ensures that distributor trainers, having been carefully mentored, can then deliver in-country training for clinicians at a consistently high standard.

In addition, doctors and nurses from six key healthcare institutions in India have already completed training as part of Creo’s Clinical Education Programme ahead of the mentoring phase of the programme with initial cases taking place in India over the coming weeks.

Bidstack Group (BIDS) 26p £63.6m

Bidstack Group, the in-game advertising group, announced it has extended its multi-year partnership with Sports Interactive, Sega’s world leading developer of football management simulations, by a further three years giving Bidstack exclusive rights to serve native in-game ads to the advertising inventory within Football Manager.

The extension follows the success of serving relevant native in-game ads in Sports Interactive’s Football Manager 2018 and Football Manager 2019 titles in a non-intrusive, fully immersive way that does not break the gamer’s experience.

Football Manager 2020 will release in November 2019 for PC, Mac and as a launch title on Google Stadia.

This is the first time Bidstack’s SDK will be running live on any title. The SDK’s functionality will span from added brand safety and security measures, (enhanced by the integration of Pubguard’s ad verification software), to game publishers tracking the real-time health of their inventory in game, via Bidstack’s AdConsole.

Verditek (VDTK) 4p £7m

Verditek announced that it has secured a further material  order with a Nigerian distributor comprising a multi-year take or pay contract that begins with a minimum of 1 MW in the first year and increases to 3 MW in the second year. The first 200 kW will be shipped within 16 weeks and complements the previously announced distribution agreement. Further orders are under negotiation and the directors are confident the pipeline will deliver new commitments in the near future.

The company has ambitious plans to expand and enhance the performance of the plant to bring our product competitively to market and has identified opportunities to increase production capacity cost effectively, as our pipeline continues to grow.

Beeks Fin Cloud (BKS) 86.5p £44m

Beeks Financial Cloud Group, a leading cloud computing and connectivity provider for financial markets, announced the launch of a Bare Metal Automated Backup Service, initially available within its London locations and subsequently in its other locations. This is an automated server image backup for Dedicated Servers and storage within Dedicated Servers, providing backup images of customers’ data in Beeks’ offsite location, via a secure dedicated backup network.

Beeks has launched the service in response to the growing compliance and regulatory pressures for backup and storage being experience by its customers. The service will be provided under a ‘pay-as-you-store’ model, providing another recurring revenue stream for the Group. The service is being launched following a successful proof of concept testing with a small customer set, who are now live on the service.

Location Sciences (LSAI) 2.35p £9.61m

Location Sciences, the leading location data verification and analytics company, announces its unaudited interim results for the six months ended 30 June 2019.

Highlights:

Revenue of £454,872 (2018: £234,307), a 94% increase

Sales run rate per month currently in excess of £100,000

Published “The State of Location Advertising” report demonstrating the need for transparency within the industry and the market opportunity for Verify

Delivered 550m verified impressions versus H1 target of 250m (H1 2018: Nil)

Secured 49 new brands for its Verify platform versus 2019’s target of 50 new brands

Warehouse REIT PLC (WHR) 103p £247.5m

Warehouse REIT, the AIM-listed specialist warehouse investor, announces the exchange of contracts to acquire the Midpoint Estate, a multi-let estate of 20 high quality, individual warehouse units on 29 acres in a strategic location off the M6 motorway in Middlewich, Cheshire for £15.5m, reflecting a net initial yield of 6.6 per cent.

The Midpoint Estate totals 182,500 sq ft with its 20 individual units ranging in size from 2,300 sq ft to 31,600 sq ft, located within two miles of Junction 18 of the M6 motorway and approximately twenty-six miles south of Manchester. The estate comprises high quality, predominantly detached, low density warehouse units, all of which are income producing, and is strategically located in a region with very limited supply of existing and new build alternatives.

Cabot Energy PLC (CAB) 3.75p £1.72m

Cabot Energy, the AIM quoted oil and gas company focussed on creating predictable production growth in Canada, announces that Cabot and Shell Italia E&P S.p.A., have agreed to withdraw from the Cascina Alberto onshore exploration licence in The Po Valley, Northern Italy. Shell will make a payment to the Group to cover the costs and inconveniences incurred in the process of the Withdrawal. The Withdrawal is subject to the approval of the Italian authorities, which is expected during Q4 2019.

GYG (GYG) 41.5p £23m

GYG, the market leading superyacht painting, supply and maintenance company, announced that it has signed contracts for two New Build projects in Northern Europe. These orders come from an existing shipyard partner and the yachts are 60+ meters and 70+ meters respectively. Both vessels are currently under construction and the Group is scheduled to start work on both projects in H1 2020.

Head Chef:

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

*A corporate client of Hybridan LLP

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