Small Cap Feast

Small Cap Feast – 29 January 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 914

Total number of AIM Companies trading: 847*
* As at 24 January 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 January 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 145*

Total number of Standard List Companies trading: 128*
* As at 24 January 2019

Dish of the Day:

No Joiners Today

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 (Specialist Funds)

The Global Sustainability Trust -aiming for attractive risk-adjusted returns by investing primarily in private market investments that are expected to have a positive environmental and social impact raising c.£200m. Due 31 Jan 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.

Circassia Pharma (CIR.L) – specialty pharmaceutical company focused on respiratory disease transferring from the Main Market. No funds being raised. Due 4 Feb.

Greenfields Petroleum (TSX-V:GNF)  production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected late January 2019.

Chaarat Gold Holdings—RTO, the Company intends to acquire Kapan Mining and Processing CJSC, which owns the Shahumyan medium-sized polymetallic mine in Kapan in the Republic of Armenia. No raise, market cap of £110.1m, due early Feb

Breakfast Buffet

Warpaint London (W7L.L) 77p £65.5m

Warpaint London, the specialist supplier of colour cosmetics and owner of the W7 and Technic brands, provided a trading update in respect of the financial YE 31 Dec 2018.

Subject to audit, the Company expects to report revenue of £48.5m and adjusted PBT of £8.25m for the year ended 31 Dec 2018.

The Company expects to report its audited results for the year ended 31 Dec 2018 in April 2019.

Management Resource Solutions (MRS.L) 4.55p £8.76m

Management Resource Solutions announced that its wholly owned subsidiary MRS Services Group has secured a contract for the structural fabrication of eight coal truck trays. This contract has a value of between AUD$800k and AUD$900k.

Construction of the first trays will commence immediately and is expected to complete during Feb 2019.

This contract will be delivered from the Group’s Muswellbrook facility, the only one of its kind in the Hunter Valley. The Directors believe the Group’s facility is industry leading, providing a safe and controlled working environment, delivering the best quality of work for our customers.


Total Produce (TOT.L) 148p £573.99m

Total Produce, Europe’s leading fresh produce company announced that Dole Food Company, having now received approval from the European Commission, has completed the sale of Saba Fresh Cuts AB and Saba Fresh Cuts OY to BAMA International.

Saba Fresh Cuts AB, with a production facility in Helsingborg Sweden and Saba Fresh Cuts OY, with a production facility in Espoo Finland, are producers of washed and ready-to-eat salads. BAMA International is headquartered in Oslo, Norway.

The sale of Saba Fresh Cuts AB was a condition of the European Commission’s approval of the acquisition by Total Produce of a 45% equity stake in Dole in July 2018.

Dole was advised by investment bank and financial services company Houlihan Lokey, Inc. in this transaction.


Netcall (NET.L) 32.5p £45.04m

Netcall, a leading provider of Low-code and customer engagement software, today announces its trading update for the six month period ended 31 Dec 2018.

The Board anticipates first-half revenues of approximately £11.4m (H1 2017: £10.7m) and adjusted EBITDA of approximately £2m.

Cloud and product bookings in the period increased by 96% year over year to £5.2m of which cloud alone increased by 818% to £4m. As a result, the Group, in line with its strategy, reached an inflection point where the Annual Contract Value of new cloud bookings exceeded product sales for the first time in a six month reporting period.

Total Low-code ACV as at 31 December 2018 increased by 40% year over year to £4.2m (H1 2017: £3m) and the total ACV increased by 10% year over year to £15.1m (H1 2017: £13.7m).

The Group held cash of £5.8m and net debt was £0.8m as at 31 Dec 2018.


Anpario (ANP.L) 310p £79.9m

Anpario, the international producer of natural feed additives for animal health, hygiene and nutrition, expects to announce trading in line with market expectations for the year ended 31 Dec 2018 on 6 March 2019. 

As anticipated, sales growth was reduced by the factors reported at the interim stage, including African Swine Flu in China and challenging trading in the Middle East and Latin America.  However, costs have been closely managed without impeding strategic development plans.

Continuing strong performances in the USA, Europe and Australasia, assisted by progressive market fundamentals and the benefits of development initiatives implemented this year, are expected to support a return to sales growth in 2019.

The balance sheet remains strong with cash balances of £12.9m (2017: £13.6m) at the year-end.


Brady (BRY.L) 63.5p £52.94m

The Company announces that revenues for the year ended 31 Dec 2018 are expected to be approximately £23m and adjusted EBITDA is expected to be around £2.6m, which are broadly in line with consensus market expectations. Net cash at the year end was £4.6m (31 Dec 2017: £4.4m net cash). Recurring revenues make up approximately 70% of the revenue number.

In 2018, Brady continued to make significant progress in delivering on its strategy, including several customer-focused projects. The outlook for the Company in 2019 continues to be positive as we look to benefit from the groundwork laid not just during 2018 but also in previous years.

The new customers we have engaged with and, as importantly, the ones with whom we have been working with for years, are a testament to the increasing strength of our offering. We have made substantial progress in evolving our technology solutions and have extended the scope of the value proposition we can deliver to our customers.

As announced on the 19 of Dec, Carmen Carey will commence as CEO with effect from 18 Feb 2019. The Board is confident that she will provide the leadership skills required to drive our focus on customers and innovation underpinned by the quality of our people.


Ace Liberty and Stone (NEX:ALSP) 110p £45.5m

Ace Liberty and Stone, the active property investment company, capitalising on commercial property investment opportunities across the UK, announced Interim Results for the period from 1 May 2018 to 31 Oct 2018.

Rental income for the half year is £1.95m, an increase of 32% (2017: £1.47m)

Rental income for the full year is set to exceed the 2018 achievement of £3.5m.

Profit from continuing operations for the current period is £0.27m representing an increase of 24% (2017: £0.22m)

Payment of 0.83p per share dividend declared

Ace has increased its portfolio since 30 April 2018 with four strong purchases of the following properties:

Tweedale House, Oldham and Brocol House Wigan for a combined cost of £6.4m;

Princes Court, Leicester for £4.38m and Mecca Bingo, Chesterfield for £3.99m

These purchases show Ace’s proactive strategy in action, finding multi-use and attractive locations with strong rental agreements and established tenants

Ace sold Hume House for £3.9m, representing an overall 307% return on our investment over the purchase price of £1.67m in 2014


Arc Minerals (ARCM.L) 2.83p £17.39m

Arc Minerals provided an update on the Commercial Scale Demonstration plant at its Zamsort Copper-Cobalt project in north western Zambia.

Over the past nine months the Company has made excellent progress with the construction of the Plant. During November 2018, the technical team completed the front end of the plant comprising the two crusher units, screens, a ball mill and conveyors. This section has been completed and successfully commissioned in December 2018 and has an initial capacity to process 10,000 tonnes per month. The back end of the plant is due to commission in the next week and initial production is scheduled to commence shortly thereafter.

The plant has a fully permitted renewable mining license through to 2025 and is fully funded through to initial production.  Discussions are currently underway with a number of off-takers regarding future sales.


Colefax (CFX.L) 520p £51m

Colefax is an international designer and distributor of furnishing fabrics & wallpapers and owns a leading interior decorating business. The Group trades under five brand names, serving different segments of the soft furnishings marketplace; these are Colefax and Fowler, Cowtan & Tout, Jane Churchill, Manuel Canovas and Larsen.

Group sales up 7.8% to £45.38m (2017: £42.08m); up by 7.7% on a constant currency basis

Group sales up 7.8% to £45.38m (2017: £42.08m); up by 7.7% on a constant currency basis

Group pre-tax profit up 41% to £3.62m (2017: £2.56m)

Strong first half performance from Decorating Division due to timing of contracts – profits of £738,000 (2017: £213,000)

Reduced hedging losses of £73,000 compared to £595,000 in prior year

Core Fabric Division sales up 1.0% to £36.89m (2017: £36.47m) Core Fabric Division sales up 1.0% to £36.89m (2017: £36.47m)

US up by 2%, UK flat, Europe down by 1%

EPS increased by 55% to 27.9p (2017: 18p)

Net cash increased by £1.6m to £11.1m (2017: £9.5m)

Interim dividend up by 4% to 2.5p per share (2017: 2.40p). Interim dividend up by 4% to 2.50p per share (2017: 2.40p)


ldox (IDOX.L) 33p £136.88m

ldox, a leading supplier of specialist information management solutions and services, announced it has successfully extended its existing banking arrangement with the Royal Bank of Scotland plc and Silicon Valley Bank.

The existing banking arrangements were agreed in September 2014 for a four-year term, extended previously to 24 Feb 2019 and this second extension runs to 25 Feb 2020.

As at 31 Oct 2018, the Group had borrowings under the existing arrangement of £25m. The facilities included a £17m term loan (of which £7m has been drawn down) and a revolving credit facility of £23m (of which £18m has been drawn down).

Under the terms of the extension:

the revolving credit facility will be increased to £24.5m until 1 June 2019 at which point it will revert to £23.0m until the expiry of this extension;

the term loan will be reduced by £1.25m on 30 April 2019, with the balance of £5.75m due at the expiry of this extension; and

the Group is now subject to additional financial covenants and requires the consent of the Lenders in the event it wishes to propose a dividend.

This extension gives Idox a strong platform to continue refocussing its operations and allows the Group time to consider longer-term financing alternatives.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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