Small Cap Feast

Small Cap Feast – 28 February 2019

Dish of the Day:

Digitalbox (DBOX.L), formerly Polemos PLC, has joined AIM today after acquiring Digitalbox Publishing (Holdings) Limited and Mashed Productions Limited which constitutes a Reverse Takeover.

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

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

Breakfast Buffet

FireAngel Safety Tech (FA..L) 26p £11.02m

One of Europe’s leading developers and suppliers of home safety products, announced that, following the introduction of new legislation in Scotland, it has signed an agreement to supply mains and battery-powered smoke and heat alarms to another housing association 

The Company will supply West of Scotland Housing Association with a combination of interlinked mains and battery-powered products to around 3,500 homes.

This contract win follows the requirement for greater safety standards introduced in the Housing (Scotland) Act, which came into force on 1 Feb 2019. This requires all homes to have a smoke alarm fitted in the living room or lounge and in circulation spaces such as hallways, landings and kitchens and all fitted alarms are required to be interlinked so they can be heard throughout the property.


Conroy Gold & Natural Resources (CGNR.L) 8.88p £2.1m

HY Nov 18 Results.

Excellent drill results from extended programme at Clontibret; 1,768 metres completed.

Updated Exploration Target of 8.8m ounces of gold:

In only the three major gold targets – Clontibret, Clay Lake and Glenish – and excluding the defined gold resource of over 500k  ounces at Clontibret


Gold lodes intercepted with excellent grades – up to 24g/t. New area of bedrock gold mineralisation discovered between the Clontibret gold deposit and the Corcaskea gold target

Clay Lake:

Gold intersection of over 150 metres at 0.3g/t gold. The intersection at a downhole depth of 252 metres is the deepest to date


Placing  to raise £0.5m completed. The loss after taxation for the half-year ended 30 Nov 2018 was €0.29m (six-month period ended 30 Nov 2017: loss €0.46m)


Mercia Technologies (MERC.L) 38.3p £114m

The national investment group focused on the identification, creation, funding and scaling of innovative technology businesses with high growth potential from the UK regions, today announced that its portfolio company, Oxford Genetics Limited, has successfully negotiated six licensing deals for its scalable gene therapy manufacturing technologies in the last twelve months.

Projects of note include;

A licence agreement with Aldevron, a leading US service provider, to bring to market the Lentiviral Plasmids created by Oxford Genetics.

A collaboration project with Sphere Fluidics to expedite the development of automated microfluidic systems for rapid and high-throughput gene editing in mammalian cells.

Mercia holds a 40.5% direct equity stake in the business and has worked with the team at Oxford Genetics since 2012.


Sareum Holdings* (SAR.L) 0.68p £17.26m

Sareum Holdings, the specialist small molecule drug development business, notes that Sierra Oncology, the licence holder advancing clinical cancer candidate SRA737, announced late yesterday that an abstract reporting preclinical data for SRA737, its Chk1 inhibitor, plus low dose gemcitabine (LDG), in combination with immunotherapy, has been selected for a late-breaking oral presentation at the American Association of Cancer Research (AACR) Annual Meeting 2019, to be held in Atlanta, GA, USA from 29 March to 3 April 2019.

A late-breaking abstract details highly significant and timely findings in any area of cancer research that were not available at the time of the regular abstract deadline. Only those abstracts that are deemed to be of high scientific priority will be accepted for presentation at the meeting.


Intercede Group (IGP.L) 20.7p £10.65m

The “specialist in digital identity, credential management and secure mobility, announced the first sale of its MyID credential management software to an end customer in the region of SE Asia.

An order totalling $0.5m has been received from a new Partner with offices in Singapore, Hong Kong and Malaysia, that does business throughout the region. The order includes software licenses, associated Support & Maintenance, Development and Professional Services; some of which will be recognised as revenue beyond the current financial year.

It is also anticipated that this first contract will lead onto further business in the region in future years.”


Ricardo (RCDO.L) 604p £323.11m

HYDec18 Results. Ricardo plc is a global engineering, technical, environmental and strategic consultancy business, which also manufactures and assembles low-volume, high-quality and high-performance products.

Order intake good at £202m, compared to £238m in HY 2017/18;

Order book increased to £302m, up £7m on June 2018;

Revenue up 4% to £188m on HY 2017/18;

Underlying PBT up 1% to £15.3m on HY 2017/18;

Interim dividend increased by 4% to 6p from 5.75p.

“Acknowledging the uncertain economic climate, we remain positive due to a good order book and diverse pipeline, the recently signed long-term McLaren programme, and deliveries of ABS kits now underway.”


MyCelx (MYX.L) 240p £46.08m

Proposed $1.8m placing by the clean water technology company providing patented solutions for the Oil and Gas market and commercial industrial markets worldwide traded at 230p. C.6% discount to yesterday’s close.

The Fundraising is being undertaken in order to sustain the recent momentum delivered by the Company and to remove the key hurdles to faster growth in the Company’s core markets. The net proceeds of the Fundraising will be used to fund additional equipment inventory in Saudi Arabia to meet the demand for rental fleet solutions.


European Metals (EMH.L) 17.75p £26.7m

Recent results from its current eight core-hole resource drilling programme at the Cinovec Project.

Hole CIS-14 returned 67m averaging 0.43% Li2O (incl. 3m @ 0.99% Li2O and 0.18% Sn); 8m @ 0.67% Li2O and 0.20% Sn (incl. 4.15m @ 1.00% Li2O and 0.35% Sn); 8m @ 0.21% Sn, 4m @ 0.39% Sn; and 3m @ 0.20% Sn

“The results of this programme have either been in line with, or exceeded, our expectations particularly with regard to the tin intercepts. I look forward to reporting the results of our lithium hydroxide production work, and the projected impacts upon the economics of the project over the next few weeks.”


Plant Health Care (PHC.L) 9.6p £16.59m

Update on the product pipeline in its New Technology business, following the recent strategic review of the prospects for PREtec (the Company’s novel Plant Response Elicitor Technology platform):

Moving lead PREtec peptides forward into fast-track product development, anticipated entry into first markets as early as 2021.

Addressing markets worth in excess of $5bn.

Seven companies have ongoing evaluations of   PREtec or are planning to initiate field evaluations in 2019.

The Company intends to sell some products directly to distributors, to reach market more rapidly and deliver  higher margins for the Company.  Discussions underway in the US and Brazil.


Spire Healthcare (SPI.L) 127p £510.58m

FY Dec18 results from  the independent UK hospital group. Revenue flat at £931.1m

Growth in PMI revenue of 1.5% and Self-pay of 8.7% offset by a reduction in NHS revenue of 7.2%

EBITDA  £119.4m (2017: £150m)

New hospitals in Manchester, Nottingham and St Anthony’s reported combined positive EBITDA for the first time

Adjusted PBT £27.5m (2017: £57.9m)

Divi flat at 2.5p.  Net debt decreased to £453.8m, with covenant leverage at 3.67x EBITDA at year end, revised to 3.27x going forwards following covenant amendment

After a difficult year, in 2019 we expect a return to modest revenue growth, offset by mix and the full year effect of investments in quality. This outlook reflects a measured approach whilst the NHS remains an uncertain market.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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