Small Cap Feast

Small Cap Feast – 29 June 2018

Dish of the Day:

Amigo Holdings (AMGO, Main, Premium)—The pioneer of guarantor loans now lending c. £470m per annum. Secondary Sell down at 275p. Mkt Cap £1.3bn. FYMar18A adjusted PAT £72m and loan book £647m.

Knights Group (AIM:FGH) — UK regional legal and professional services businesses. FYApr18 rev  £34.9m and adjusted operating profit was £6.8m excluding Turner Parkinson (acquiring on IPO).  Offer raising £30m primary and £20m secondary at 145p with market cap of £103.5m.

RA International (AIM:RAI) is a leading provider of services to remote locations in Africa and the Middle East looking to join AIM raising £18.8m and 56p, market cap of £97.2m. FYDec17 rev $53.3m and net profit of $13.7m.

TransGlobe Energy Corporation (AIM:TGL)—an independent international upstream oil and gas company with headquarters in Calgary, Canada is looking to join AIM. No Capital to be raised, market cap of £131m. As at 31 December 2017, the Company had 2P reserves of 46 MMboe and average production in Q1 2018 was 14,375 boe/d.

Off the Menu:

No leavers today

What’s Cooking in the IPO Kitchen?

NEX Exchange

Monreal PLC—AIM cash shell moving to NEX by taking advantage of opportunities to invest in the technology, media, and telecom (TMT) sector. Due 03 July

Ananda Developments— Company has been established to invest in the developing market for medicinal or therapeutic Cannabis derivatives, or related products. Raising £750k at 0.45p with market cap of £1.3m. Due 04 July


Immotion Group  – aims to become the market leader in “out of home” Immersive Entertainment Experiences. Offer TBA. Due 12 July

Yellow Cake will use its expertise to generate value through the ownership of physical U3O8 (Uranium) together with a range of activities and opportunities connected with owning physical U3O8. Acquiring supply contract for up to $170m. Due Early July.

Strongbow Exploration (TSX:SBW) intends to dual list on AIM.  Holds rights to the South Crofty underground tin mine, a former producing tin mine located in the towns of Pool and Camborne, Cornwall . The project is estimated to require the Company to raise £25 million over the next 18 months to progress to a production decision. Offer TBS. Due June.

Main Market (Premium)

ASA International— “one of the world’s largest and most profitable international microfinance institutions, which aims to enhance financial inclusion among low-income populations throughout Asia and Africa in a socially responsible manner”.  Secondary sell down. No primary. Due July. Offer TBA

Ashoka India Equity Investment Trust—Target raise £100m. India  focussed high conviction, long-only IT. Due mid July.

Main Market (Specialist Funds)

Hipgnosis Songs Fund— offering pure-play exposure to Songs and associated musical intellectual property rights . Targeting £200m raise. Due 11 July

Tritax EuroBox raising up to £300m.  “Will provide an opportunity for investors to gain exposure to a portfolio of well located Continental European logistics real estate assets”. Due 9 July.


Breakfast Buffet

Startup Giants (NEX:SUG) 105p £1.1m

The UK-based startup accelerator  has  released FYJan18 results.

The loss for the year was £(71,753) (2016-17, £(47,517) ), net assets were £771,082 (2016-17, £32,535) and the Company’s net cash position stood at £686,202 (2016-17, £8,953). 

Trading during the first half of the current financial year to date has been in line with the Directors’ expectations at the beginning of the period. Since 1st February 2018, Startup Giants has continued to source new investment opportunities with the opening of a new spring accelerator round, with follow-on selection, interviews and short-listing. Startup Giants has also developed a proprietary online platform that allows its shortlisted companies to create their business profiles and to invite their communities and networks to pre-register their interest to invest in their upcoming funding round(s). The platform is currently being tested in Beta with several short-listed start-ups and will be adapted and improved according to  feedback received.


Strat Aero (AERO.L) 0.06p £3.7m

AGM Statement. “The Company’s principal subsidiary, Geocurve Limited, is making excellent progress towards delivering the first phase of the multi-sensor surveying and data delivery as part of the Environment Agency’s Thames Estuary Asset Management 2100 (TEAM2100) programme, which combines innovative technology-based surveying with 3D mapping and Virtual Reality (VR) data representation.”

“Gyrometric Systems Limited, has recently completed a very successful trial at the ORE (Offshore Renewable Energy) Catapult centre, using its monitoring technology to collect data which can be used to improve operating efficiency, reduce maintenance and increase output of wind turbines.”

The Board continues to examine opportunities to grow both organically and through acquisition of complementary businesses and technologies which can enhance growth in shareholder value.


Ariana Resources (AAU.L) 1.35p £14.3m

AGM Statement. “2017 opened up a new chapter for Ariana Resources, as we became one of only a handful of junior explorers on AIM to have transitioned successfully to producer status. 

“Having entered commercial production of gold and silver, we are now looking toward the next phase of our business strategy, which is to further develop the three strands of our current portfolio: bringing on stream additional resources identified at the Kiziltepe Sector, planning and permitting of the Tavşan Sector of the Red Rabbit project, and continuing the exploration and development of our wholly-owned Salinbaş Project.  

“It has been our long-held view that Salinbaş, located within the ‘Hot Gold Corridor’, contains resources well in excess of the 1Moz we have already identified. The potential of Salinbaş has not gone unnoticed and, given the potential significance of this resource, we believe it is important that we better define the resource potential and be discerning in terms of any future partnerships or agreements we might conclude.


Maintel Holdings (MAI.L) 805p £114m

The fast-growing provider of managed communications, is pleased to announce a strategic partnership with Atos and the acquisition of certain UK customer contracts with a total net consideration of £5.1 million.”

Maintel is acquiring a customer base which has been divested in order for Atos to focus on a growth strategy through its partners and large customer accounts.

Following the Acquisition, Maintel will become a new channel partner of Atos.

The customer contracts acquired are to be transferred to Maintel and revenue will be billed by Maintel, commencing 1 July 2018.

The consideration of the Acquisition is payable over a period of 4 and half years with spread payment instalments and will be satisfied using the Company’s existing cash resources.

The Acquisition is expected to be accretive in the first full year of ownership. FYDec18E PE c.9x, yield >9%.


TomCo Energy (TOM.L) 6.12p £3.8m

HYMar18 results from the oil shale exploration and development company focused on using innovative technology to unlock unconventional hydrocarbon resources. £200k loss.

Restructuring of TurboShale completed

Company now has an 80% interest in TurboShale, with JRT Technologies LLC (“JRT”), the Company’s partner, holding the remaining 20%

Cash approximately £360k as at 28 June 2018 and, following anticipated receipt of the net proceeds from the June 2018 placing, TomCo will have a cash balance of approximately £1 million. The Group has sufficient funds through to late Q4 2018 and will need to raise further funds for working capital, CAPEX, loan repayments and project development beyond Q4 2018.

The Group is on schedule with its to six-month field test programme of TurboShale’s technology on the Company’s Holliday block, Utah


Faroe Petroleum (FPM.L) 147.72p £550.8m

“The Independent oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway and the UK, is pleased to announce a successful sidetrack well (6506/9-4 A) and successful production test (‘Drill Stem Test’, ‘DST’) following the drilling of the downdip appraisal well (6506/9-4 S) on Fogelberg located in the Norwegian Sea (Faroe 15%1).

The Fogelberg discovery has now been successfully appraised confirming sufficient well productivity and reservoir connectivity capable of delivering commercial rates from the planned horizontal gas producers.”

The well flowed at a maximum constrained and stable rate of 21 mmscf per day and condensate at 547 bpd (aggregate 4,047 boepd) on choke 22/64″ for 24 hours with no signs of depletion.

FYDec18E rev £223.9m and PBT £19.47m.


Action Hotels (AHCG.L) 20.8p £30.7m

Agreement has been reached on the terms of a possible cash offer by Action Group Holdings [the major shareholder] (or an associate entity) for the issued and to be issued share capital of Action Hotels (“Action Hotels Shares”) not already owned by Action Group Holdings for a cash consideration of 24 pence per Action Hotels Share (the “Possible Offer” and “Possible Offer Price”) and in due course to seek the cancellation of the admission to trading on AIM of the Action Hotels Shares.

The Possible Offer Price represents a premium of approximately:

50%  to the closing price of 16 pence per Action Hotels Share on 28 June 2018 (being the last practicable date prior to the release of this announcement).


Fastjet (FJET.L) 7p £36.57m

Proposed $10m equity raise at  8p including $3m  subscription with strategic partner Solenta Aviation.  The Placing Price represents a premium of 146 per cent. to the closing price of 3.25 pence per ordinary share on 28 June 2018.

Fy Dec 17 results today show a big drop in losses off a lower revenue base following a rationalisation. Rev $46.2m and op loss $25.3m. Cash $20m.

“In many respects 2017 was a watershed year for fastjet. The Stabilisation Plan was completed with a plethora of projects running simultaneously and implemented by a small team of exceptionally dedicated staff across five countries. I expect that 2018 will not only deliver the fruits of these labours but will see further foundations laid for future successes.”

FYDec18E rev $66.5m and $5.9m Pre-tax loss.


Anglo Asian Mining (AAZ.L) 41.5p £47.2m

AGM Statement.  “2017 was a year of delivery for Anglo Asian; the Company successfully implemented a wide-ranging optimisation and expansion strategy aimed at providing long-term sustainable production growth from our main Gedabek contract area, whilst simultaneously improving the financial performance of the Company and strengthening our balance sheet.  The refinancing in 2018 also significantly simplified our balance sheet. I am very pleased to say that these initiatives have proved overwhelmingly successful and we began 2018 with our production growing and a much more robust platform to sustain this into the future.  “In light of the Group’s prospects and current strong financial position, the Board is now considering a dividend policy and the payment of a maiden dividend to reward our long-standing shareholders as well as attracting new investors to our developing investment proposition.” We could see no forecasts.


Kibo Mining (KIBO.L) 4p £24.1m

“Kibo Mining plc, the multi-asset Africa-focused energy and resource company, announces that, contrary to press speculation, its engagement with the Tanzania Electric Supply Company (‘TANESCO’) with regard to the development of the Mbeya Coal to Power Project (‘MCPP’) remains unchanged and the Company is continuing to advance its discussions with TANESCO regarding the Power Purchase Agreement (‘PPA’) for the 300MW MCPP. “


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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