Small Cap Feast

Small Cap Feast – 28 May 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 896

Total number of AIM Companies trading: 820*
* As at 24 May 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 24 May 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 161*

Total number of Standard List Companies trading: 140*
* As at 24 May 2019

Dish of the Day:

SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM, after SDX UK acquired all of the issued and outstanding common shares in the capital of SDX Canada. Anticipated market cap of £76m

Riverstone Credit Opportunities Income  – raised US$100m—will seek to generate consistent shareholder returns predominantly in the form of income distributions principally by making senior secured loans to energy-related businesses, has joined the specialist fund segment of the London Stock Exchange

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?

Main Market (Premium)

Jewel UK Midco Limited, the parent company of The Watches of Switzerland Group Limited, is looking to join the premium segment of the main market. Offer TBC, expect TBC

Trainline—reg document submitted. No timeline or  quantum announced as yet. Proceeds to target a net debt at IPO of c.2x LTM Adjusted EBITDA) . In FY 2019, Trainline achieved net ticket sales of £3.2 billion, and revenue of £210 million.

Main Market (Standard)

IMC Exploration Group (NEX: IMCP), focused on acquiring and exploring prospecting licence areas which have high potential for natural resource, is looking to admit its shares to the standard list and will withdraw for the NEX Exchange. Expected 11 June 2019

AIM

Essensys plc—a provider of mission-critical SaaS platforms and on-demand cloud services to the high growth flexible workspace industry, plans to join AIM. £28m raised. Half primary, half shareholder sell down expected 29 May 2019. Mkt cap £72.6m.  Issue price 151p.

Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019.

Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019

NEX Exchange

SSuINOx—has developed a hydrocarbon fuels conditioning and emulsifying process that enables more efficient fuel combustion, leading potentially to reduced fuel usage and significantly lowered emissions.  Offer TBA.

Breakfast Buffet

Oxford BioDynamics (OBD.L) 160p £150.4m

Oxford BioDynamics, a biotechnology company focused on the discovery and development of epigenetic biomarkers based on regulatory genome architecture, for use within the pharmaceutical and biotechnology industry, announced its interim results for the six-month period to 31 March 2019.

Signed fifth commercial collaboration in immuno-oncology, a growing area of expertise for the Company.

Continued to invest in scaling business for future growth, with a focus on the US and Asia, including China.

Joined Imperial College London in a trial evaluating novel methods of screening for prostate cancer.

Expanded leading IP portfolio covering the EpiSwitch™ platform.

Collaborated with Casa Sollievo della Sofferenza to develop a panel of epigenetic biomarkers for the diagnosis of Autistic Spectrum Disorder.

Study published in Faculty of 1000 Research identifying epigenetic changes for monitoring disease progression in Huntington’s disease.

Revenue of £0.6m (H1 2018: £0.5m).

Operating loss of £1.7m (H1 2018: £1.3m).

Cash and term deposits of £16.9m as at 31 March 2019 (31 March 2018: £9.6m, 30 Sept 2018: £18.3m).

 

Ramsdens (RFX.L) 169.5p £51.96m

Ramsdens, the diversified financial services provider and jewellery retailer, announced the acquisition of four stores currently trading as The Money Shop and 12 loan books from Instant Cash Loans Limited for a total consideration of £0.5m, which will be satisfied in cash. The purchase price includes the acquisition of £0.3m of pawnbroking loan book.

This announcement follows the Group’s successful acquisition of 18 The Money Shop stores and five loan books from Instant Cash Loans Limited in March 2019, and supports the Group’s stated growth strategy of expanding its presence across target regions in the UK. The Acquisition will also enable Ramsdens to further leverage the significant investments in brand, IT and people made in recent years. Following the Acquisition, Ramsdens now has 163 stores in the UK.

The acquired stores will be rebranded as Ramsdens over the coming weeks and the full breadth of the Group’s customer proposition will be incorporated into the stores. As with the Group’s previous acquisition announced in March, the Board believes that there are significant opportunities for Ramsdens to build upon the existing foreign exchange proposition in the acquired stores and to improve their performance through the expertise of the Group’s management team.

The Board anticipates that in FY20 there will be a small contribution to PBT as the Group invests in integration costs including those relating to refits, rebranding, training and IT integration. It is expected that this acquisition will contribute approximately £0.3m to Group PBT in FY 2021.

 

DX Group (DX..L) 15.5p £92.94m

DX, the provider of delivery solutions, including parcel freight, secure, courier and logistics services, announced that following the conclusion of the tender process for the Her Majesty’s Passport Office (HMPO) secure delivery contract, it has been notified that its renewal bid, which was based on commercially realistic terms, has been unsuccessful. 

Accordingly, the Company’s contract with HMPO is expected to expire in Jan 2020, after a transition period. Financial results for the current financial year ending 30 June 2019 will therefore not be affected and the Board is also pleased to confirm that DX remains comfortably on track to deliver market forecasts for this financial year.

The Board also believes that the Group remains well-positioned to achieve existing market forecasts for EBITDA of £7.7m and revenue of £328m in the next financial year ending 30 June 2020.

This view takes into account the improving trend in DX’s revenue and earnings, in particular DX Freight’s increasing run-rate, the slowing rate of attrition of the annuity revenue at Document Exchange and momentum within DX Express’s Courier activities, as well as the actions that the Company will be taking following the non-renewal of the contract.

The Board remains encouraged by the continuing progress that is being made with the Company’s turnaround and by the pipeline of new business opportunities ahead. The Board expects to publish a trading update in mid-July, when it will provide further details on the progress that has been made during the financial year.

 

Altitude Group (ALT.L) 106p £79.79

Altitude Group, the operator of a leading marketplace for personalised products, announced its unaudited results for the year to 31 Dec 2018. The Group will make a further announcement when the audited Annual Report for the year ended 31 Dec 2018 has been published and sent to shareholders.

Nichole Stella promoted to Group CEO in June 2018

Successful placing to raise £1.5 million at 60p per Ordinary Share completed in March 2018 to accelerate the roll out of AIMPro in strategic partnership with AI Mastermind Group LLC.

Significant progress achieved in the adoption of AIMpro by AIM members, sales orders of $19.9m processed in 2018 by 266 AIM members, 78% of whom placed multiple orders

During 2018 70 AIM preferred suppliers signed up to pay transaction fees on all orders derived through the AIMPro platform

Graeme Couturier appointed as CFO in March 2018

Increased revenues £6.6m(2017: £6.1m), due to £1.6m incremental revenue from a full year of AdProducts (seven months contribution in 2017), less a £1.1m decline in the legacy exhibitions and publications businesses in the UK and legacy SaaS software in the US

Adjusted operating loss of £0.8m (2017: profit £0.9m), principally due to pre-revenue operating cost investment in the US and the decline in UK exhibitions and publications contribution

Loss before taxation £2.8m (2017: profit £0.1m)

Group remains debt free and had net cash of £3.8m as of 30 April 2019

 

Pressure Technologies (PRES.L) 99p £18.32m

Pressure Technologies, the specialist engineering group, announced that further to the update on 13 May 2019 on the proposed sale of the Group’s wholly-owned subsidiary, PT Biogas Holdings Limited, trading as Greenlane Biogas, to Creation Capital Corp (TSX-V: CRN.P), a capital pool company listed on the TSX Venture Exchange,  Creation Capital has announced that it has received sufficient orders to achieve the $6m minimum amount and the subscription receipt offering is expected to complete this week. Final details of the total amount raised, and terms of the Proposed Sale will be announced at Completion, which is expected to be before the end of May 2019.

 

GAN (GAN.L) 57p £47.7m

GAN, an award-winning developer and supplier of enterprise-level B2B Internet gaming software, services and online gaming content in the United States, welcomes the signing and legalisation of internet sports betting in Tennessee, allowing state-wide sports wagering exclusively via mobile and internet. Tennessee is the 12th State to legalise sports wagering in the US and the fourth to do so this year. Following the launch, 16% of the total US population will be able to place sports wagers online.

The bill has now moved to the Governor, who has allowed the bill to become law without his signature. The law came into effect on May 25th.

There are no physical casino locations in the State of Tennessee. However, with an estimated population of 6.8 million the legalisation of online sports wagering is expected to be material to GAN’s business, as the Company anticipates existing clients to extend their online GAN-supported operations into the State of Tennessee in 2019.

 

AFH Financial (AFHP.L) 334p £132.6m

AFH, a leading financial planning led wealth management firm, announced its results for the six months ended 30 April 2019.

Revenues up 61% to £36.6m (H1 2018: £22.7m)

Underlying EBITDA up 74% to £7.7m (H1 2018: £4.4m)

Underlying EBITDA margin increased to 21.0% (H1 2018: 19.5%)

Profit after tax up 80% to £4.5m (H1 2018: £2.5m)

Statutory EPS up 56% to 10.71p (H1 2018: 6.85p)

Underlying Earnings EPS up 49% to 14.87p (H1 2018: 9.98p)

Funds under Management of £5.4bn, up 68% (H1 2018: £3.2bn)

 

Comptoir Group (COM.L) 14.1p £17.17m

Comptoir Group, the owner and/or operator of Lebanese and Eastern Mediterranean restaurants, today will hold its AGM. Commenting on the Company’s performance, Chaker Hanna, CEO of Comptoir, will make the following statement:

I am pleased to report that the Group continues to trade in line with management expectations. Newly opened restaurants are performing well, including the new Comptoir Westfield restaurant opened on 7th May 2019. Like for like sales growth and margins are ahead of last year. The Company has a robust balance sheet and is confident in the outlook for the year ahead.”

The Board continues to take a cautious approach to selecting new site openings and is exploring multiple opportunities for both organic growth and further franchise opportunities.

 

Nektan (NKTN.L) 13.5p £14.92m

Nektan the fast-growing international gaming technology platform and services provider, announced that it has expanded its existing partnership with BetVictor, a leading global gambling provider, by agreeing to develop exclusive casino content for the operator via its Open Remote Game Server (RGS).

Nektan will create branded slot games to enhance the operator’s key partnerships. Available exclusively to BetVictor players, the games are being developed in collaboration with ReelFeel Gaming and will be accessible via Nektan’s Open RGS.

The launch of the bespoke games follows BetVictor’s successful integration onto Nektan’s content distribution platform, E-Lite, announced in October 2018. Effective in generating positive results, the deal has significantly expanded the operator’s casino offering.

 

Byotrol (BYOT.L) 370p £243m

Byotrol plc, the anti-microbial technology company, announced the appointment of Nic Hellyer as CFO and Executive Director of the Company with immediate effect.

Nic is a Chartered Accountant (FCA) and former investment banker with over 25 years’ corporate finance experience, mostly at UBS and HSBC, managing corporate development, M&A and fund raisings for growth and entrepreneurial companies (both public and private).

He is being employed on a part-time basis by the Company alongside his other business interests, which include a part-time CFO role at Pelatro plc, another AIM-listed company.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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