Small Cap Feast

Small Cap Feast – 27 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?

NEX Exchange

Proton Partners—Holding company of a group committed to providing innovative cancer care of the highest quality.  Conditional on Admission, the Company has received a direct subscription of £20 million from various funds managed by Woodford Investment Management Limited.

Main Market (Premium)

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

US Solar Fund, a newly-established investment company focused on investing in solar power assets mainly in the US, looking to raise $250m at $1. Expected 20 March

AIM

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

Rockfire Resources (ROCK.L) 0.82p £3.57m

The copper and gold-focused resource company, announced that simultaneous soil sampling, rock sampling and geological mapping are underway at the Copper Dome porphyry copper prospect in Central Queensland. As announced on 26 Nov 2018, Rockfire has an option to acquire Copper Dome. Soil sampling, rock sampling and structural and geological mapping are being undertaken simultaneously by multiple field crews;

The surface expression of copper mineralisation is more than 2km x 1km. Only the upper parts of the deposit have been tapped;

Many previous drilling intervals have not been analysed  for CU and AU;

Previous results include;

15m @ 0.9 % Cu (including 4.6m @ 2.3 % Cu) from 161m downhole depth

12m @ 0.6 % Cu (including 3m @ 1.2 % Cu) from 54m downhole depth

24m @ 0.3 % Cu (including 7m @ 0.4 % Cu) from 225m downhole depth

Diamond hole QML004 – 51.20m @ 0.20 g/t gold (from 72m downhole depth);

 

Vast Resources (VAST.L) 0.17p £11.8m

The “mining company with operating mines in Romania and Zimbabwe, announced that further to the announcement of 19 Nov 2018 and the successful completion of surface drilling at the Magura Neagra and Piciorul Zimbrului prospecting licences (collectively Zagra) in northern Romania, the Prospecting Permit’s associated final reports were submitted on schedule to ANRM, Romania’s National Agency for Mineral Resources, on 25 Feb 2019.

Core samples are currently being submitted for testing and the Company expects the final drilling results within six weeks.

Upon final assay analysis and subject to results, the Company will apply for an Exploration Licence for the Magura Neagra and Piciorul Zimbrului prospects, in which Vast has a minimum 90% interest in.  Once granted, Vast intends to finalise a joint venture agreement with a strategic partner.”

 

Avingtrans (AVG.L) 212p £65.86m

HY Nov 18 results from the  Company  which designs, manufactures and supplies original equipment, systems and associated aftermarket services to the energy and medical sectors.

Revenue from continuing operations increased to £47.7m (2018 H1: £26.9m)

Reflecting impact of FY18 HTG acquisition and 11% underlying organic growth

Gross Margin improved to 25.7% (2018 H1: 22.6%)

Adjusted EBITDA from continuing operations increased to £3.6m (20181 H1: £1.1m)

Adjusted PBT  advanced positively to £1.6m (2018 H1: loss of £0.1m)

Interim dividend increased by 7.7% to 1.4p per share (2018 H1: 1.3p)

“With attractive structural growth markets, durable customer relationships and long-term contracts, we remain optimistic about the future of the Group. In our acquisition activities, we seek to conduct our efforts rigorously and efficiently, with an enduring ethos that any deal should be for the benefit of all stakeholders and should enable the realisation of long-term value, consistent with our PIE strategy.”

 

Redde (REDD.L) 166.4p £573.36m

Interim Results for the six months ended 31 Dec 2018 from support services group specialising in accident management support, legal services, fleet management and policy fulfilment services

Turnover £291.1m (2017: £253.3m) – Increase of 14.9%

Adjusted EBIT of £23.7m (2017: £22.0m) – Increase of 7.7%

Adjusted PBT of £23.6m (2017: £21.9m) – Increase of 7.6%

Fleet financing lease debt £52.8m (2017: £46.9m)

Net debt of £41.2m (2017: £22.5m)

Divi flat at 5.5p.

“In the near two months since the half year end, hire days have continued to show growth over the corresponding period of last year but growth for the remainder of the second half will not have the beneficial effect experienced last year from the “Beast from the East”.

The pipeline of new business is nevertheless encouraging with a number of live prospects. Investment in working capital will increase to service the continuing strategic goals of the business.”

 

Patagonia Gold (PGD.L) 46.5p £10.52m

Results from its 2018 exploration drilling programme at its 100% owned Calcatreu gold-silver project in Rio Negro Province, Argentina.

30 diamond hole, 6,495 metre drill programme completed in Dec 2018.

6 holes cut gold mineralisation with significant intercepts.

Best intercept was 4.40 m @ 11.86 g/t Au (including 1.40 m @ 34.10 g/t Au) in hole CCT18-674.

Confirmed existence of hidden, “blind”, mineralised structures (Castro Sur Splay and Eastern). Mineralised structures open for expansion along strike to the northeast (Amistad Vein) and at depth (Vein 49).

 

Image Scan Hldgs (IGE.L) 1.85p £3.85m

AGM Statement:

Renewed focus on organic growth following lack of shareholder support for an acquisition

Sales behind management expectations at the end of H1 due to contract delays with international Government customers but are expected to recover during H2 to meet expectations for the full year

Healthy opportunity pipeline continuing to grow in both security and industrial

New product development programme well underway targeted at new security product sector

Discussions progressing to expand product range through partnership with other X-ray companies

 

Nostra Terra Oil and Gas (NTOG.L) 2.5p £3.83m

£1.15m placing at 2.4p (yesterday’s closing bid price).

The Placing will enable the Company to strengthen its position in the Mesquite Asset in the Permian Basin, ahead of identifying and securing a farm-in partner to deliver the Mesquite Field Development Plan (first iteration announced 21 Jan 2019).  In the first complete iteration of the Mesquite Field Development plan, which covers 1,384 net acres, Mesquite is estimated to have a $21.6m NPV10 valuation at $53 / oil barrel and a $28.6m NPV10 valuation at $60 / oil barrel, once fully developed. The respective estimated IRRs are 34% at $53 / oil barrel and 46% at $60 / oil barrel.

 

Blue Jay Mining (JAY.L) 13p £120.2m

The Company with projects in Greenland and Finland, announces that, following an unfortunate technical issue experienced whilst its IT department was undertaking website maintenance it has inadvertently released that the Company is in discussions with Rio Tinto Iron and Titanium Canada Inc. (‘RTIT’) in connection with an agreement to assess the commercial potential of Bluejay’s Dundas ilmenite project.

The Company is optimistic that an agreement will be concluded with RTIT in due course, however nothing has been finalised at this stage. The Company will make a further announcement as and when appropriate.

 

Tarsus (TRS.L) 298p £329.3m

FYDec18 results from the international business-to-business media group.

Revenue of £99.7m up 46% against 2016

Group like-for-like revenues up 9%

Adjusted PBT of £27.9m up 45% against 2016

Buyer/visitor growth across the portfolio of 10%, at the top end of the Group’s KPI target of 5-10%

Trading off to a good start in 2019

Forward bookings for 2019 on a like-for-like basis currently up 10%

“2019 – the larger of the years in our biennial cycle – is shaping up to be another successful one for the Group. Our confidence in the future is reflected in the Board’s recommended 10% full year dividend increase.”

 

Beeks Financial Cloud Group (BKS.L) 111.5p £64.7m

FYDec18 results from the niche cloud computing and connectivity provider for financial markets

Revenues increased by 36% to £3.50m (H1 2018: £2.57m)

Annualised Committed Monthly Recurring Revenue (ACMRR) up 26% to £7.45m (H1 2018: £5.93m)

Gross profit up 43% to £1.7m (H1 2018: £1.2m)

Underlying profit before tax up 46% to £0.41m (H1 2018: £0.28m)

Proposed maiden interim dividend of 0.20p

Sales pipeline has increased materially during the period, including further Tier 1 opportunities although extended on-boarding processes result in a longer period before Beeks’ services commence

 

Head Chef:

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

*A corporate client of Hybridan LLP

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