Small Cap Feast

Small Cap Feast – 29 May 2019

Dish of the Day:

Essensys plc—a provider of mission-critical SaaS platforms and on-demand cloud services to the high growth flexible workspace industry, plans to join AIM. £28m raised. Half primary, half shareholder sell down expected 29 May 2019. Mkt cap £72.6m.  Issue price 151p. FYJul18 revs £16.4m, Op profit £0.8m, PBT £0.4m.

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

Jewel UK Midco Limited, the parent company of The Watches of Switzerland Group Limited, is looking to join the premium segment of the main market. Offer TBC, expect TBC

Trainline—reg document submitted. No timeline or  quantum announced as yet. Proceeds to target a net debt at IPO of c.2x LTM Adjusted EBITDA) . In FY 2019, Trainline achieved net ticket sales of £3.2bn, and revenue of £210m.

Airtel Africa Limited — provider of telecommunications and mobile money services, with a presence in 14 countries in Africa, primarily in East Africa and Central and West Africa, looking to join the premium segment of the main market. Offer TBC, expected TBC

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


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.

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 market cap of £33.4m. Expected 25 June 2019

NEX Exchange

SSuINOx—has developed a hydrocarbon fuels conditioning and emulsifying process that enables more efficient fuel combustion, leading potentially to reduced fuel usage and significantly lowered emissions.  Offer TBA.


Breakfast Buffet

Alba Mineral Resources (ALBA.L) 0.24p £7.86m

“The diversified mineral exploration and development company, reported the second set of results from the 2019 soil sampling campaign being undertaken within the Company’s 107 km2 licence area in North Wales. Alba’s Clogau Gold Project hosts the high-grade Clogau-St David’s gold mine as well as the extensive regional target known as the Dolgellau Gold Belt.”

Gold-in-soil grades from two new anomalies away from the existing mine area and not associated with historic mine workings range in grade from 0.005 to 0.25 g/t Au (at a 0.005 g/t cut-off).

Average grades for the new anomalies are well above the average gold-in soil grades for Clogau-St David’s and the other historic mine areas.

Gold mineralisation has now been confirmed across ~6 miles along the strike extent of the Dolgellau Gold Belt and from within multiple geological units.

The 1,200 sample programme has been completed and the field team has commenced Phase 2 of the programme involving infill and extension sampling.


Netcall (NET.L) 56.75p £81.33m

The  provider of Low-code and customer engagement software updated on trading FYJun19. “Cloud bookings have continued their strong performance with year over year growth of 160% to £6.5m, reflecting strong Low-code cross sales to customers and the signing of new names. As a result, Low-code ACV has continued its growth and is up 36% year over year to £4.4m. ACV from Support Contracts has also continued to grow, and as a result total ACV is up 10% year over year to £15.6m.

Product sales, whilst improved over the first half of the year, have been impacted by purchasing delays within the NHS coupled with public sector customers ordering the Group’s newly launched Low-code cloud offerings. As a result, product revenues for the year will be lower than expected.  As a consequence, adjusted EBITDA for the year is now expected to be approximately £3.4m. Cash generation has been strong and at 30 April 2019 the Group’s cash position was £6.5m offsetting the existing debt of £6.6m. 

The Board remains very optimistic about the prospects for Netcall, as evidenced by the strong growth in Cloud bookings and ACV.


Ilika (IKA.L) 30p £30.22m

The pioneer in solid-state battery technology, “has developed processing methods to enable rapid customisation of its Stereax thin film cells to match customers’ requirements for form, fit and function.”

The launch on 10th April 2019 of its Stereax® M50 mm-scale solid state batteries for MedTech was a defining step for Ilika’s first product made using photolithography. This marked a move away from the use of contact masks, which were deployed to produce earlier Stereax products. Photolithography has the advantage over contact masks of being able to create smaller feature sizes, of less than a micron. The technique is therefore particularly suitable for forming Ilika’s mm-scale range of Medtech batteries. ILead time for creating new wafer layouts is significantly reduced, by up to 85%.

Also, the operating costs of using a photolithographic process rather than contact masks are significantly less, in part due to the ability of photolithography to enable a tighter spacing of devices on wafers, increasing wafer yield. Examples of MedTech devices which can benefit from Stereax battery technology are insulin pumps, cardiac devices, blood pressure monitors, neurostimulators, gastric stimulators, smart contact lenses and smart dental braces.


PureTech Health (PRTC.L) 191p £539.56m

PureTech noted that its affiliate Vor Biopharma today announced the publication of an important paper in the scientific journal Proceedings of the National Academy of Medicines supporting Vor’s novel approach to treating cancer via engineered hematopoietic stem cells (HSCs).

Vor’s approach is designed to address a serious limitation of most targeted immunotherapies: the targets they bind are present on both healthy cells and cancer cells. In the case of haematological cancers, this poor discrimination can result in devastating collateral damage to healthy immune cells and severe toxicities. Vor’s lead programme, VOR33, is a novel HSC therapy consisting of donor-derived HSCs that are engineered to lack the cell surface protein CD33.  When infused into a patient, the engineered stem cells are designed to mature and differentiate into a full spectrum of healthy immune and blood cells that would be untouched by the cancer treatment.

As the preclinical research published suggests, this approach has the potential to minimize immunotherapy toxicities and maximize the potency of anti-CD33 therapies.


Spectra Systems (SPSY.L) 124.5p £57.1m

The specialist in machine-readable high speed banknote authentication, brand protection technologies, and gaming security software, announced that it expects its profits for the year ending 31 Dec 2019 to exceed market expectations. The increased profits are related to a combination of central bank sensor related research funding and strong first half of the year optical materials sales.

Dr. Nabil Lawandy, CEO, stated: “We are very pleased that we are able to provide a positive trading update for 2019 which is reflective of an increasing product mix which allows for sustained strong profitability.”


Itaconix (ITX.L) 3.25p £8.75m

The innovator in sustainable specialty polymers, announced the sale of its holdings in Alkalon A/S, a privately-held Danish nicotine gum company. The Company’s holdings in Alkalon were purchased for cash by

The innovator in sustainable specialty polymers, announced the sale of its holdings in Alkalon A/S, a privately-held Danish nicotine gum company. The Company’s holdings in Alkalon were purchased for cash by Helmich Invest ApS, Nolta ApS, Solco ApS, and Commerce Pharma Holding ApS, who are existing shareholders in Alkalon. The total cash consideration was c. DKK 2 million, equivalent to c. £242,000. The proceeds consisted of c. £194,000 for the Company’s minority equity interest in Alkalon and c. £48,000 for the full principal and accrued interest of a shareholder loan.

The sale of these last assets from Revolymer’s legacy nicotine gum business marks the final step in transforming Itaconix into a technology innovator focused on emerging demands for sustainable specialty polymers.”


Avation (AVAP.L) 289p £185.86m

ATR CEBU Commercial Financing:

The commercial passenger aircraft leasing company announced on May 24, 2019 that it delivered a new ATR 72-600 turboprop aircraft to Cebu Air, Inc.  at the manufacturer’s facility in Toulouse, France.

Crédit Agricole Corporate and Investment Bank (“CA CIB”) acted as Sole Arranger, Facility Agent and Security Trustee for the commercial financing of this aircraft.

Avation’s Executive Chairman, Jeff Chatfield said: “We were pleased to enjoy commercial finance for our 46th aircraft.”


Rosslyn Data Tech (RDT.L) 7.12p £13.73m

Trading update for FYApr19 from the big data technology Company. Following the integration of Integritie, which was completed early last year, this year has been one of consolidation, resulting in investment into product development, further reducing costs, and pursuing larger value contracts with a broader product offering.

It is expected that results for the Group will show Revenue growth of 8.3% to £7m (2018: £6.4m). Underlying Annual Licence Fee revenue is expected to show growth of 9.2% to £5.4m (2018: £5m) and Operating EBITDA (excluding share-based costs) improving by 75% to a loss of £432,000 (2018: loss of £1.8m). The Group achieved a key milestone, having generated cash from operations of £329,000 (2018: Cash used in operations of £3.45m).

With an enhanced board, a focussed team and an advanced suite of products to address a market that is much more aware of the opportunities presented by data analytics, the Group is well positioned as it enters the current financial year.


Conroy Gold (CGNR.L) 6.05p £m

“The gold exploration and development Company focused on Ireland and Finland, is pleased to report the completion of a 600m drilling programme on its Slieve Glah gold target in the Longford–Down Massif in Ireland. Further details of the Company’s 2019 drilling programme were announced on 20 March 2019.

The primary focus of the current drilling programme has been to follow up on encouraging gold-in-soil, deep overburden and trenching results in the Slieve Glah area.

Four drill holes, totalling 611m of drilling, have been completed. Detailed logging of the drill core is now underway, and is expected to be completed by July 2019.

Slieve Glah is located at the south western end of the 65 km (40 miles) gold trend which Conroy Gold has discovered in the Longford–Down Massif. It lies approximately 40 km downtrend from the Glenish–Clontibret–Clay Lake gold target in the northeast of the gold trend.

An overall exploration target on the Glenish–Clontibret–Clay Lake gold target of 8.8 million ounces gold (excluding a JORC compliant resource of 517,000 ounces of gold at the Clontibret deposit) has been estimated  (announced by the Company on 2 August 2018).”


Verditek (VDTK.L) 7.5p £15.16m

Verditek, and Optimeyes Energy Limited have signed a framework agreement to advance commercial opportunities jointly. Under the arrangement the two firms will collaborate on projects in which Verditek technology and expertise can be used to the advantage of Optimeyes projects which are under development in Europe. Several projects are currently being developed which will demonstrate the synergies that the two firms can offer working together.

Verditek is developing opportunities for its lightweight and semi-flexible solar panels manufactured in Italy. These products address projects that otherwise could not consider a PV solar solution due to weight restrictions, installation challenges, or architectural aesthetics. We deliver more watts per weight.

Optimeyes is a project developer providing clients with integrated solutions in renewable energy generation projects in the EU and the UK. Optimeyes has developed a full range of services comprising energy compliance audits, optimization analysis for businesses, energy efficiency programs to reduce utility spending.


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Derren Nathan
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