Small Cap Feast

Small Cap Feast – 29 January 2020

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What’s Cooking in the IPO Kitchen?


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

Thor Mining* (THR.L) 0.375p £4m

Maiden mineral resource estimates for the White Violet and Samarkand tungsten and copper deposits at Bonya (Thor 40%). Highlights:

White Violet—Inferred Resources of 495,000 tonnes, grading 0.22% Tungsten Trioxide (WO₃) and 0.06% copper (Cu), containing 1,090 tonnes of WO₃, and 300 tonnes Cu.

Samarkand—Inferred Resources of 245,000 tonnes, grading 0.19% Tungsten Trioxide (WO₃) and 0.13 % copper (Cu), containing 465 tonnes of WO₃, and 320 tonnes Cu.

Both deposits outcrop and remain open at depth, while Samarkand, in particular, shows potential for strike extension to the copper mineralisation.

Each deposit considered amenable to open cut extraction for significant components of the resource.

Both deposits situated in close proximity to the Thor Mining Molyhil tungsten and molybdenum project, and potentially therefore within economic trucking distance.

The Bonya project hosts additional known tungsten and copper deposits, and some high tenor copper strike extension at Samarkand.  These will be tested in due course.


Concepta (CPT.L) 1.3p £3.4m

Update from the UK’s most accurate home-use fertility tracking and pregnancy testing system .

A newly upgraded commercial website has been launched ( and this will be followed by a fully optimized website launch and cross-channel marketing strategy launched before the end of the first half 2020.

In addition, the Company expects to launch a modest clinical trial with a leading London hospital in Q1 2020, to further highlight the accuracy of myLotus® when measured against in-clinic processes, and demonstrate the value of this product to the patient. The new management team has identified a number of cost reduction opportunities and has already achieved a 30% cost reduction to the current operating overhead, the impact of which will be seen in the financial year ending December 2020

A substantial portfolio product development programme is now underway  with new products expected to be ready for commercialisation in the next 12 months.


Ergomed (ERGO.L) 439p £210m

The company focused on providing specialised services to the pharmaceutical industry, announces a trading update for the year ended 31 December 2019.

Following the positive results for the first half of the year reported in September 2019, Ergomed continued to deliver strong year on year top-line growth and financial performance across the business and expects revenue for the year ended 31 December 2019 to be in line with current market expectations and EBITDA for the year ended 31 December 2019 to be ahead of current market expectations.

Revenues for 2019 are expected to be in line with expectations at approximately £68m, an increase of 26% over prior year (2018: £54.1m), with CRO revenues increasing 23% from £26.6m to £32.6m and PV revenues increasing 29% from £27.5m to £35.4m.  The combined CRO and PV order book at the end of 2019 is expected to be approximately £125m, up by 15% over prior year (2018: £109m). The Company continued to be debt-free at the year end with cash and equivalent balances over £14m (2018: £5.2m).


Fusion Antibodies (FAB.L) 92p £20.3m

The specialists in pre-clinical antibody discovery, engineering and supply for both therapeutic drug and diagnostic applications, provides an update on current trading.  Q3 trading has continued the favourable trends experienced in  H1. Expects revenues for the year ended 31 March 2020 to be significantly ahead of current market expectations, and materially ahead of the previous year (FY2019: £2.2m).

Gross profit margin remains ahead of the previous financial year. The revenue growth is largely a result of an increase in sales of existing services, as the contribution from newer high margin services has yet to be fully achieved to the extent previously anticipated. Accordingly, the Company expects gross profit margin for the current financial year to be marginally below current market expectations but ahead of FY2019. The Company continues to invest in the development of new services, whilst maintaining EBITDA and a cash position broadly in line with current market expectations for the full year. 


EKF Diagnostics (EKF.L) 33.8p £153.4m

FYDec19 update.  The Company confirms that revenues and adjusted EBITDA are in line with market expectations, which have already been upgraded following previous trading updates, as announced on 6 November 2019. Cash generation during the period was strong, with net cash at year-end of £11.4m, after the payment of performance bonuses  

Renalytix AI plc (AIM: RENX), the spin out from EKF which floated in November 2018, has continued to perform well. As at 31 December 2019, EKF held marketable securities (2,677,981 RENX shares) at approximately £9.17m at fair value (compared to book value at cost of investment of £3.24m).

 2019 has seen the Company continue its momentum by delivering on its strategic goals and the Board is confident that this progress will continue into 2020.  Further upside is expected from the OEM contract with McKesson-Surgical Inc. for the distribution of Diaspect Tm in the US and the enzyme manufacturing business with Oragenics, Inc.


Fulcrum Utility Services (FCRM.L) 24.25p £53.9m

The independent multi-utility infrastructure and services provider, announces the appointment of Daren Harris as Chief Executive Officer with immediate effect.

The Group also announces the appointment of Terry Dugdale, Chief Operating Officer (Gas), to Group Chief Operating Officer and to the Board as an executive director with immediate effect.

Daren joined the Company and its Board as Chief Financial Officer on 24 June 2019, bringing significant experience gained in various senior and Board level roles in the construction, contracting, electrical engineering and energy services sectors.  Prior to joining the Group, he was Group Finance Director of The Byrne Group, a construction services provider which during his tenure achieved turnover in excess of £300m and Group Finance Director of NG Bailey, a £400m turnover engineering and services business.


Empresaria Group (EMR.L) 52.5p £25.7m

The global specialist staffing group, today provides a trading update for the financial year ended 31 December 2019 ahead of announcing its full year results on Wednesday 18 March 2020.

 The Board confirms that it expects the Group to deliver results in line with current market expectations for the financial year ended 31 December 2019.

 Net fee income has grown 3% from the prior year, 2% in constant currency.  As expected, net fee income progress was weighted towards the first half of the year with the second half flat year on year.  The growth in businesses such as in our Offshore Recruitment Services sector, which has had another very strong year, has been offset by the impact of the previously communicated challenges in UK Engineering, the weakness in the German automotive sector and Brexit.

“While we invest in positioning the business for future growth in net fee income and profitability, our diversity across sectors and geographies continues to provide a strong, profitable and cash generative foundation from which to build.”


Windar Photonics (WPHO.L) 30p £14.9m

 The technology group that has developed a cost efficient and innovative LiDAR wind sensor for use on electricity generating wind turbines, has been granted 0.24m in development funding from the Eurostars for the LAWIS project. The total project grants amount to 0.7m and includes the Technical University of Denmark and an optical manufacturer in Lithuania.

The aim of the granted project is to develop and demonstrate a one-unit LiDAR solution that combines the optical LiDAR head with the control unit and at the same time offer cost reductions and technological benefits.

 Martin Rambusch, General Manager of the Company, commented: “I am very pleased that Windar’s participation in this development project is alongside strong partners within the industry. The development and demonstration of the one-unit LiDAR solution will benefit our global customers as we are able to optimize our LiDAR offering even further, and at the same time add more features to our already developed LiDAR solutions.


Polarean Imaging (POLX.L) 33p £37.8m

Positive results from pivotal Phase III Clinical Trial. Both trials met their primary endpoint, showing pre-defined equivalence of hyperpolarized 129Xenon Gas MRI to an approved comparator, 133 Xenon Scintigraphy. Company plans for NDA submission to FDA in Q3 2020. Polarean’s technology could offer clinicians a powerful tool to visualise lung function, overcoming limitations of existing methods of diagnosis and monitoring treatment.


Oakley Capital (OCI.L) 269.5p £535m

 Highlights for the year

  • Net Asset Value (“NAV”) per share of 345 pence and NAV of £686m
  • Total NAV return of 25%
  • Total shareholder return of 56%
  • OCI invested £103m and received proceeds of £78m
  • Buy-back and cancellation of 6m shares


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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