Small Cap Feast
Small Cap Feast – 29 June 2018
Set Menu AIM:
Total number of AIM Companies (Incl Susp): 938
Total number of AIM Companies trading: 889*
* As at 27 June 2018
Set Menu NEX Growth:
Total number of NEX Growth Market Companies (Incl Susp): 87*
Total number of NEX Growth Market Companies trading: 84*
* As at 27 June 2018
Set Menu Standard List:
Total number of Standard List Companies (Incl Susp): *
Total number of Standard List Companies trading: *
* As at 27 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.
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
No leavers today
Dish of the Day:
No Joiners Today
No Joiners Today
Off the Menu:
No leavers today
No leavers today
What’s Cooking in the IPO Kitchen?
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.
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. “
0203 764 2344
*A corporate client of Hybridan LLP
This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.
The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.
The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).
Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.
This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.
In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.
Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.
Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.
Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.
This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.
MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.
Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.
If you would like to unsubscribe, please email firstname.lastname@example.org with “unsubscribe me”.