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


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

*A corporate client of Hybridan LLP


This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.

The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.

The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).

Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.

This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.

Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.

Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.

MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.

Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.

If you would like to unsubscribe, please email with “unsubscribe me”.