Small Cap Feast
Small Cap Feast – 27 January 2020
Set Menu AIM:
Total number of AIM Companies (Incl Susp):
Total number of AIM Companies trading: *
* As at
Set Menu NEX Growth:
Total number of NEX Growth Market Companies (Incl Susp): *
Total number of NEX Growth Market Companies trading: *
* As at
Set Menu Standard List:
Total number of Standard List Companies (Incl Susp): *
Total number of Standard List Companies trading: *
* As at
Dish of the Day:
No Joiners Today
No Joiners Today
Off the Menu:
No Leavers Today
No Leavers Today
Dish of the Day:
Off the Menu:
What’s Cooking in the IPO Kitchen?
Intention to float by Gemfields Group. No Capital Raise. Currently listed on JSE. (GML:JNB) at circa £122m. The Group’s key producing assets, the Kagem emerald mine in Zambia (believed to be the world’s single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world), are both expected to have long mine-lives with potential for expansion. Also owns the Faberge brand. Due Valentines Day 2020.
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)
Calisen Group. Potential Intention to Float. Owner and manager of essential energy infrastructure assets through its subsidiaries Calvin Capital and Lowri Beck . Consolidated FY Dec 18 revenue £162.1m and operating profit £25.4m. Raising up to £300m in primary plus partial vendor sale. Expected Admission February 2020
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.
Main Market (Specialist Funds)
Investment firm Nippon Active Value fund is seeking to raise up to £200m at an issue price of 100p per share via an IPO. The company aims to invest in a portfolio of quoted Japanese stocks with market capitalisations of up to $1bn. First day of dealings expected early February.
Kodal Minerals (KOD.L) 0.0525p £4.9m
A mining licence application has been submitted to the Mali Government for the Bougoni Lithium Project.
- Proposed 2Mtpa processing plant utilising a conventional flotation circuit to maximise spodumene recovery:
o Estimated C1 cash costs of USD$431 per tonne concentrate (USD$466 including royalties and sustaining capital).
- Capital requirement for development estimated to be USD$117M plus contingency:
o Forecast payback period of 1.7 years;
o IRR of 58% (51% post tax).
- Pre-tax Project NPV7% of approximately USD$300M (NPV7% USD$200M post-tax).
Nektan (NKTN.L) 3.5p £8.5m
The fast growing, award-winning international gaming technology platform and services provider, announces a trading update for the six months ended 31 December 2019.
In the core B2B division, the Group generated revenues of £787k in H1 FY20 – growth of 153.1% over H1 FY19. It should be noted that Q2 FY20 saw an intense period of activity with a significant number of sites either entering beta or going live. Whilst NKTN would expect a ramp up period of 3-4 months following launch, revenue in December 2019 grew by 102.7% over November 2019, underpinning management’s confidence of significant growth over the coming months as sites which have recently gone live ramp up.
Also restored on AIM today (rule 40) and FYJun19 finals. Revenue growth of 13.5% to £22.6m. Adjusted EBITDA loss increased to £2.0m.
SIMEC Atlantis Energy (SAE.L) 10.5p £45.1m
Operational update for MeyGen, the world’s largest operational tidal stream array. MeyGen’s 2019 performance represents the longest period of uninterrupted generation from a multi-megawatt tidal turbine array ever achieved.
- MeyGen has now exported 24.7GWh of predictable renewable electricity to the national grid
In 2019 alone, MeyGen exported over 13.8GWh of predictable renewable electricity, equivalent to the average annual electricity consumption of around 3800 typical UK homes generating a revenue of £3.9m.
The AR1500 turbine is due to undergo maintenance and will be transported to land for servicing and upgrade work at the end of this month – redeployment at MeyGen is targeted for the Spring. The upgrade will increase the turbines revenue by 4% with no increase in the turbines operating cost. During 2019, Atlantis announced its intention to develop the next phase of its MeyGen array which will see an additional 80MW of tidal capacity added to the existing project site between the island of Stroma and the mainland.
Rotala (ROL.L) 54p £27m
Update: Trading during FY 19 was in-line with market expectations. During the financial year, the Group achieved significant additional growth through the acquisition of the Bolton depot of First Manchester Limited in August 2019. This acquisition was made in accordance with the Group’s stated strategy and has considerably enlarged the Group’s operations in the North West, making the Company the second largest bus operator in the Greater Manchester market. The Company is expected to realise further benefits from the Bolton acquisition during the course of the current financial year, as further synergies materialise.
Trading for the current year has begun in line with budget. Furthermore the Board remains focused on identifying suitable acquisitions with a view to continuing to expand the operations of the Group, thereby making full use of the ample financial facilities which it possesses.
Bluejay Mining (JAY.L) 8.9p £86.3m
New mineral exploration licence surrounding the Company’s existing Kangerluarsuk zinc-lead-silver Project in central west Greenland. The Company intends to commence a maiden drill programme at the Project later this year, representing the first drill testing ever conducted at Kangerluarsuk, alongside additional exploration activity as part of its 2020 field season.
Licence increase incorporates some of the most prospective ground for undiscovered zinc-lead-silver-copper deposits
- First phase reconnaissance and sampling programme of new Licence area to commence in summer 2020
- Maiden drill programme to be undertaken in summer 2020 at existing and historically undrilled Kangerluarsuk Licence area;
Historic sampling by Rio Tinto Zinc underpins the resource potential – including up to 1 metre at 41.1% Zn, 0.4 meters at 45.4% Zn and grab samples up to 9.3% Pb, 1.2% Cu and 596 g/t Ag.
H&T Group (HAT.L) 390p £155m
The UK’s leading pawnbroker, today announces a trading update for the financial year ended 31 December 2019. H&T expects to report its results for the year ended 31 December 2019 on 10 March 2020. Following strong second half-year trading and a positive performance of the recently acquired Money Shop and Speedloan business assets, H&T expects the full-year profit before tax to be at the top end of current market expectations. “
- growth in the year-ending pledge book by £20m (+39%) on the prior year, with core stores up £13m (+25%)
o the Group’s core estate performance was driven by increased lending to newly-acquired customers and organic growth in transactions
o solid trading from acquisitions
- the jewellery retail business delivered +7% sales growth on prior year, including +5% from core stores
- strong income growth from foreign exchange, with Group FX income +45% with core store FX income growth +20%
- strong returns from precious metal scrappage reflecting the high gold price.
Block Energy (BLOE.L) 5.05p £19.9m
Update on operations at its West Rustavi field.
Multi-rate production testing is underway at well WR-38Z (“WR-38Z”) following a clean-up period to stabilise the well and recover fluids lost during drilling. Peak production rates have exceeded 300 bopd and 1.5 MMCF/d of gas (equivalent to a total of more than 550 boepd).
- With the WR-38Z test confirming West Rustavi’s rich gas potential, Block is accelerating the monetisation of its gas reserves by installing a central gas processing facility for the Field and by applying for permits required to get the gas onstream during Q2 2020.
- Drilling operations have begun at well WR-51Z (“WR-51Z”), the third of West Rustavi’s wells to be horizontally sidetracked.
- Operations at the West Rustavi appraisal well WR-16aZ (“WR-16aZ”), which was shut-in during December for the installation of improved surface test facilities, are scheduled to re-start in early February with a well intervention programme designed to add a further 100-200 boepd to the Field’s production.
- The Company is encouraged by the quality of data indicated by a preliminary review of the recently acquired 3D seismic survey of West Rustavi.
Shield Therapeutics (STX.L) 163p £191m
Business and unaudited trading update for the year ended 31 December 2019.
FDA approves Accrufer® with a broad label of treating iron deficiency in adults in the USA
AEGIS-H2H study positive and results presented at UEG Week, showing non-inferiority to IV iron therapy
European Feraccru® 2019 sales volumes grew 67% over 2018
Trading broadly in line with market expectations
Revenues for the year expected to be £2.9m (2018: £11.9m)
Cash position at 31 December was £4.1m (2018: £9.8m)
- Feraccru®/Accrufer® licence agreement signed for China with Beijing Aosaikang Pharmaceutical Co. Ltd (“ASK Pharm”)
- US$11.4m upfront received from ASK Pharm in January 2020, extending cash runway into 2021.
TP Group (TPG.L) 8.2p £63.9m
The providers of mission-critical solutions for a more secure world, announces that it has been awarded a contract worth approximately £1.7m by its German partner, Roda Computer GmbH, for the provision of a suite of bespoke military ruggedised computer servers and display units. The systems will be used for deployed military applications by a European defence force. The equipment will be produced by the TP Group facility in Melksham, Wiltshire with work commencing immediately and continuing 24 months.
Gresham House (GHE.L) 652.5p £182m
Strong organic growth in Assets Under Management (“AUM”) up over 20% to at least £2.75 billion
- Financial performance in line with market expectations
- FIM and Livingbridge integration complete and delivering in line with expectations
- Strong cash generation to support significant business development and dividend growth
- Increasing focus on the sustainable investment and ESG aspects of the product portfolio.
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 email@example.com with “unsubscribe me”.