Small Cap Feast

Small Cap Feast – 29 April 2019

Dish of the Day:

Loungers plc, the operator of 146 café/bar/restaurants across England and Wales under two distinct but complementary brands, Lounge and Cosy Club, has joined AIM raising £83.3m, comprising £61.6m for the Company and £21.7m for the Selling Shareholders at 200p. Market cap of £185m

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

Main Market

Finablr plc— global platform which provides Cross-Border Payments and Consumer Solutions, Consumer Foreign Exchange Solutions and B2B and Payment Technology Solutions to consumers and businesses in the large and growing payments and foreign exchange market is looking to list on the Main Market plans to raise $200m

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


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.

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. Expected 28 May 2019, anticipated market cap of £76m

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.

Distribution Finance Capital Holdings plc — specialist lender which builds relationships with manufacturers and then provides working capital solutions up and down their supply chains to drive their growth is looking to join AIM. No raise, secondary offering of £19.8m at 90p, expected market cap of £95.98m. Expected 09 May 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 25 June 2019

Breakfast Buffet

Reabold Resources (RBD.L) 0.65p £24.85m

California operations update.

“Reabold announced that testing is underway at the Burnett 2B well on the Monroe Swell field in California. This was the second of the two wells drilled at Monroe Swell, and announced as a discovery on 1 Apr 2019.  

With casing in place, the testing process will involve perforating multiple zones logged as pay, before conducting swabbing runs to initiate oil flow for production. The Burnett 2A well will be tested immediately after testing is complete at Burnett 2B. Reabold expects the testing process to have been completed within approximately three weeks”

At the West Brentwood field, in which Reabold has earned a 50 per cent. interest, work is underway to complete a tie in to the nearby gas pipeline. This will allow the VG-4 well to produce oil at a higher rate, as well as allowing the sale of the gas produced from the well.


Eurasia Mining (EUA.L) 0.57p £13.64m

“The palladium, platinum, rhodium, iridium and gold producing company, provided an update on activity on site at the West Kytlim Mine for March and April 2019.

All of the necessary mining equipment has now arrived on site at West Kytlim, the circuit is being assembled in advance of first washing of gravels, which is expected within the following two weeks.

Improvements to the washing circuit which were demonstrated to have performed well in the 2018 mining season have been approved and are being installed by the Company’s contractor. Specifically; a Jig (a fluid-based gravity separation device), has arrived at site and will operate with an additional concentration table adjacent to the wash-plant. These are designed to increase recoveries of precious metal beyond what was achievable in 2018.”


Avation (AVAP.L) 294p £190.3m

The commercial passenger aircraft leasing company, has acquired and leased its fifth new Airbus A220-300 aircraft to airBaltic, the Latvian hybrid carrier. The 12-year lease for the aircraft MSN 55052 commenced on 26 April 2019.

The Airbus A220-300’s aerodynamics combined with specifically designed Pratt & Whitney PurePower PW1500G geared turbofan engines contribute to an aircraft that delivers 20% lower fuel burn per seat than previous generation aircraft, with half the noise footprint, decreased emissions, making it a true community-minded jetliner.

“We are pleased to take delivery of our fifth of these latest technology aircraft for our customer airBaltic. This addition grows our overall fleet to 44 commercial passenger aircraft with a further 12 on order out to the year 2022”.


MetalNRG (NEX:MNRG) 0.8p £1.6m

MNRG and Mkango Resources (MKA.L) have entered into a Non-Binding Heads of Terms Agreement, setting out their intention to enter into an earn-in agreement for MetalNRG to earn up to 75% of the economic interest in the Thambani Licence controlled by Mkango in Southern Malawi over a 3 year period. The Thambani Licence entitles Mkango to conduct exploration activities over certain territory in Southern Malawi for uranium, niobium and tantalum.

MetalNRG must spend, within 12 months of the date of the Transaction     Agreement, $0.5m on exploration within the Thambani project area in     Malawi, in connection with drilling approximately 1,500 metres on the    exploration area covered by the Thambani Licence


John Menzies (MNZS.L) 487p £410.1m

The global aviation services business, announced a number of contract wins and renewals across its UK business.

EgyptAir, a long-standing customer of 18 years, has renewed its contract with Menzies World Cargo for a three-year term at London Heathrow Airport.  .

Following a competitive tender process, Menzies has been appointed passenger and ramp handling partner to Jazeera Airways, a Kuwaiti based Carrier, at London Gatwick Airport. From June, Jazeera Airways will commence a new six-weekly route, operated by an A320neo aircraft.

IAG owned Level has selected Menzies as its ground handler of choice at London Luton Airport, where it is due to start operations for the first time, with six weekly flights to Amsterdam Airport operating on an A321 aircraft.

Canadian airline WestJet has extended its agreement for passenger, flight ops, ramp handling and de-icing services at Glasgow Airport, where Menzies has been its trusted ground handling partner since 2015.


Mind Gym (MIND.L) 128.5p £120.88m

“The global provider of human capital and business improvement solutions, announces a trading update ahead of reporting its full year results for the twelve months ended 31 March 2019.

Reported revenue is expected to be c.14% ahead of the comparative period last year, having grown to £42.1m.  Adjusted PBT is also ahead of the prior year and is expected to be in line with expectations. Cash generation has been strong, with improvements in working capital management in the second half expected to result in a year-end cash balance of c.£8.3m.”

“We are pleased with the Group’s overall performance in our first financial year as a listed business. Mind Gym has a distinctive proposition with proven impact which is recognised by many of the world’s largest companies. Behavioural issues remain high on the business agenda and the continued improvement in our client feedback scores gives us confidence in the continued strong demand for our products and solutions.


Nasstar (NASA.L) 12.05p £69.29m

FYDec18 results from the provider of hosted managed and cloud computing services.

Revenue up 7% to £25.7m

91% of 2018 revenues generated from contracted recurring services.

EBITDA up 9% to £5.2m.

As a result of revenue recognition in respect of one-off setup revenues changing on the adoption of IFRS 15 combined with continuing cost pressure associated with licensing, gross margin percentages have reduced in 2018. In response to this, towards the end of 2018 Nasstar initiated further mitigation works designed to improve margins through a combination of pricing strategies and licensing cost reductions through driving further technical consolidation. In addition, the “Nasstar 10-19” programme objective around automation is designed to help further in this area.

“The continuation of our capabilities to win and deliver larger and more complex projects will be key for 2019 and will be evidenced by the implementation of the previously announced 850 user law firm.”


Marlowe (MRL.L) 434p £170m

FYMar19 trading update from the specialist services group focused on developing companies. “Marlowe continued to make good progress in the period, with significant growth in both revenues and profits. Revenue for the financial year grew 62% to approximately £130m (2018: £80.6m) reflecting the contribution from acquisitions and broad-based organic growth across both our divisions. Current 12-month run-rate revenues are approximately £150m. The Board expects Adjusted EBITDA for the year ended 31 March 2019 to be slightly ahead of current market expectations.

The Group’s financial position is robust and underlying cash generation, before acquisition-related investments, remains strong.

The Group completed eight acquisitions in the year across all the key disciplines within our two divisions and made one non-core divestment. The integrations of all acquisitions made during the year are progressing well and our acquisition pipeline remains strong”.


Lok N Store (LOK.L) 497p £146.3m

HY Jan 19 results from the self-storage company.

Group Revenue (continued operations) £8.51m up 11.5% (HY18: £7.64m)

Group Adjusted EBITDA £3.8m up 8.6% (HY18: £3.49m)

Net profit £2.08m up 22.7% (HY18: £1.70m)

Interim dividend 3.67p per share up 10.2%

Adjusted NAV per share up 16.1% to £4.85 

“Current Pipeline of 8 contracted stores will add 27% of extra trading space to the overall portfolio, 32% to our owned portfolio and 10%”.


Egdon Resources (EDR.L) 5.8p £15.08m

“Egdon Resources advised that the Planning Inspectorate has now set the start date of the planning inquiry to hear the Company’s appeal against the refusal of planning consent for the development of the Wressle oil field by North Lincolnshire Council’s Planning Committee on 28 Nov 2018. The public inquiry will commence on  5 Nov 2019 with the hearing expected to last up to six days at a venue which has yet to be confirmed.  The Planning Inspector will be Mr. Phillip Ware.”


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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