Small Cap Feast

Small Cap Feast – 28 January 2019

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Dish of the Day:

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Nasstar has left AIM following a takeover.

 

Dish of the Day:

Off the Menu:

What’s Cooking in the IPO Kitchen?

AIM

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)

Cabot Square—Closed ended investment fund focussed on alternative assets and asset manager. Looking to raise £200m.  Will target investment opportunities that are expected to generate an attractive risk adjusted return and that can also make a positive ESG impact by focusing on some of the biggest challenges facing societies and economies.  Due 14 Feb.

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.

 

Breakfast Buffet

Itaconix

Itaconix (ITX.L) 1.425p £3.84m

The innovator in sustainable specialty polymers, announced an expansion of its high-performance detergent polymer offerings with the introduction of Itaconix® TSI™ 322 at this week’s American Cleaning Institute Convention in Orlando, Florida.

Itaconix® TSI™ 322 is the result of the Company’s ongoing engagement with current and potential customers on a new generation of non-phosphate dishwashing detergents to meet changing consumer buying behaviour.  The key advance with the new polymer is the ability to deliver excellent performance while replacing multiple ingredients to achieve cost savings and more sustainable and compact products.

 

Sopheon

Sopheon (SPE.L) 795p £80.9m

Further FYDec19 trading update from  the international provider of software, expertise, and best practices for Enterprise Innovation Management

The Board now expects to deliver reported revenues for the year ended 31 December 2019 of approximately $30m (2018: $34m) which is in line with market expectations. EBITDA and pre-tax profits are also expected to be in line with market expectations for the year. The year-end net cash position is expected to be $19.2m (2018: $16.7m) underlining the continued cash generative nature of the business.

 

The final quarter was one of the strongest on record, with revenues over $9m and with 23 license transactions signed, of which 11 were new customers.

 

Eagle Eye

Eagle Eye (EYE.L) 228p £58.55m

HY Dec19 update from the SaaS technology company that creates digital connections enabling personalised, real-time marketing through coupons, loyalty, apps, subscriptions and gift services . The Group has delivered another strong performance, building on the momentum from the prior year. Revenue increased 26% to £10.1m, while revenue generated by the AIR platform grew by approximately 28% to £9.6m and now represents 95% (H1 2019: 94%) of total revenue. This growth has been driven by several significant customer contracts moving to the transactional phase following successful implementations, and increased transactional revenues from existing customers, demonstrating their growing use of the AIR platform. 

The growth in revenues combined with a continued focus on managing the cost base and releasing investment into the business in line with revenue growth, has resulted in a significant improvement at the EBITDA level. The Group generated adjusted EBITDA of £1.3m compared to an EBITDA loss of £(0.3)m in the comparable period of the prior year.

 

Concurrent Tech (CNC.L) 87.5p £63.6m

The  specialist in the design and manufacture of high performance embedded computer boards for critical applications announces the launch of its first Artificial Intelligence (AI) accelerator engine..

The TR AEx/3sd-RCx has been developed to meet the specific challenges of applications such as battlefield defence, surveillance and energy exploration markets. Traditional analysis methods involve collecting data local to the application and sending that data back to a base computer for interpretation and evaluation before the results can be returned to the collection point.

 

This high performance board, used in conjunction with other Concurrent processor boards, employs AI techniques to enable real-time processing of external data from optical, RF and other sensors at the point of data collection. This greatly enhances vital tactical operations such as immediate object recognition, behaviour monitoring and target acquisition.

 

Anexo Group

Anexo Group  (ANX.L) 178.5p £196.35m

The specialist integrated credit hire and legal services provider  updated on FYDec19. FY-2019 was a year of strong progress for Anexo. The Board announced that adjusted profit before tax will be in line with current market expectations.  This reflects the continued expansion of the Group’s legal services division and the consequent increase in cash collection.

Anexo has continued its strategy of keeping the number of vehicles in its credit hire division (EDGE) at a consistent level.  The Group has at the same time maintained its policy of increasing the number of litigators within its legal division (Bond Turner), thereby driving increased case settlements and cash collection relative to investment in new cases.  The Group is pleased to announce that monthly cash collections during H2-2019 have consistently exceeded the levels achieved in H1-2019.

The Bolton office of Bond Turner continues to recruit high quality litigators and support staff and in the second half of 2019 doubled the size of its office space to almost 20,000 sq.ft. Nerw office planned for Leeds Q1 2020.

 

Oncimmune

Oncimmune (ONC.L) 37.5p £23.7m

The global immunodiagnostics group, is pleased to note that a recent study led by Leeds University Academic Unit of Health Economics, supported by NIHR Leeds In Vitro Diagnostics Co-operative (NIHR Leeds MIC), and funded by The National Institute for Health Research’s (NIHR) SBRI programme, shows that using Oncimmune’s blood test in the cancer risk assessment of indeterminate pulmonary nodules (IPNs) is highly cost effective and could accelerate the time to diagnosis.

 

Next 15

Next 15 (NFC.L) 516p £446.6m

The Group is expected to report double digit revenue and profit growth, with revenues broadly in line with expectations, after taking into account the impact of the recent strength of sterling. Organic revenue growth in H2 has followed a similar pattern from H1, excluding Beyond and Archetype organic revenue growth will be again strongly positive and NFC expects over 20% organic revenue growth in our data segment. The prospects for Beyond have improved in recent months, although the recovery to profitability has taken longer than anticipated.

Taking the above into account, adjusted profit for the year is likely to be marginally below expectations on a constant currency basis. Net debt as at 31 January 2020 is expected to be around £12m as we maintain a very prudent approach to the management of our balance sheet.

We remain confident about our prospects for the coming year and again expect double digit revenue and profit growth. We have an active acquisition pipeline and expect to complete a number of acquisitions in the next couple of months. The new business pipeline remains strong in all markets and recent material wins for the Group have included: Microsoft, REED, Photobox and Intel.

 

Botswana Diamonds

Botswana Diamonds (BOD.L) 0.675p £4.24m

Botswana Diamonds (BOD.L) 0.675p £4.24m

The Company has undertaken a placing with existing and new investors to raise £250,000 at 0.6p. Each Placing Share has one warrant attached with the right to subscribe for one new ordinary share at 0.6p per new ordinary share for a period of two years from 28th January 2020 .

The funds raised will be used to fund exploration activities during the current year in Botswana, Zimbabwe and South Africa, which remain ongoing, and to provide additional working capital for the Company.

 

ECSC

ECSC (ECSC.L) 102.5p £9.33m

The provider of cyber security services, is delighted to announce has received an Award for Excellence at PCI London 2020, the region’s best-known gathering of payment risk and security professionals.  The annual awards recognise the outstanding work across the payment card industry, reflecting demonstrable best-in-class abilities.  This will be the fourth year in a row that ECSC has

Frenkel Topping

Frenkel Topping (FEN.L) 48p £36.3m

 The specialist independent financial advisor and asset manager focused on asset protection for vulnerable clients, notes the recent share price movement and confirms that it has received a preliminary approach from Harwood Capital LLP (“Harwood”) which could lead to an offer being made by Harwood for the entire issued and to be issued share capital of Frenkel Topping

 

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Derren Nathan
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derren.nathan@hybridan.com

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