Small Cap Feast

Small Cap Feast – 30 April 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 897

Total number of AIM Companies trading: 826*
* As at 25 April 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 25 April 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 161*

Total number of Standard List Companies trading: 141*
* As at 25 April 2019

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What’s Cooking in the IPO Kitchen?

Main Market

Finablr plc— global platform which provides Cross-Border Payments and Consumer Solutions, Consumer Foreign Exchange Solutions and B2B and Payment Technology Solutions to consumers and businesses in the large and growing payments and foreign exchange market is looking to list on the Main Market plans to raise $200m, expected 1 May 2019

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


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.

SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m

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.

Distribution Finance Capital Holdings plc — specialist lender which builds relationships with manufacturers and then provides working capital solutions up and down their supply chains to drive their growth is looking to join AIM. No raise, secondary offering of £19.8m at 90p, expected market cap of £95.98m. Expected 09 May 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 25 June 2019

Breakfast Buffet

LMS Capital (LMS.L) 50.4p £40.69m

LMS Capital plc issued the following update covering the period from 1 Jan 2019 to date.

The Company’s unaudited NAV at 31 March 2019 was £59.6m (31 Dec 2018 £60.3m), equivalent to 73.8p per share (31 Dec 2018: 74.7p per share). The most significant movements in net asset value during the quarter were:

The investment portfolio showed net gains of £0.3m, excluding the impact of exchange rate movements. The principal items were an increase of £0.6m in the value of the shares in Gresham House and a reduction of £0.5m in the valuation of YesTo;

Strengthening of sterling against the US Dollar in the period to 31 March 2019 has resulted in an unrealised exchange loss of £0.6m;

Other net changes amount to a £0.4m reduction, the main item of which is overhead costs.

There was no material change in the cash balance during the quarter. Continued progress is being made with the realisation of one of the company’s unquoted investments, which could result in further proceeds being received.


Gooch & Housego (GHH.L) 1,527p £381.2m

Gooch & Housego, the specialist manufacturer of optical components and systems, announced that Chris Jewell will be appointed to the Board of Directors as CFO  from Oct 2019 at the latest.

Chris has extensive executive and financial experience, with a successful track record in technology led, global engineering and manufacturing businesses operating in A&D, Industrial and Life Science markets.

He is currently Group Director of Financial Control at TT Electronics PLC and has previously held senior finance positions at Cobham PLC and MBDA UK.

Chris is a Fellow of the Institute of Chartered Accountants, holds a first class honours degree in History from Cambridge University and an MA from the London School of Economics.

Andy Boteler, our current CFO, will step down from the Board of Directors in June 2019 and in the interim period before Chris’ start date, our Group Financial Controller Gareth Crowe will lead our finance function.


Dillistone Group (DSG.L) 43p £8.06m

Dillistone Group, the supplier of recruitment software for the international recruitment industry through its Dillistone Systems, Voyager Software and GatedTalent divisions, to announced its audited final results for the 12 months ended 31 Dec 2018.

Recurring revenues represent 82% (restated 2017: 82%) of Group revenue

Adjusted operating profit2 of £0.055m (restated 2017: £0.459m) before acquisition intangible writes offs, reflecting the loss of the major contract announced in 2017 which reduced revenues by £0.625m compared to 2017 in a ten-month period

Loss for the year of £0.260m (restated 2017: profit £0.057m)

Adjusted basic EPS3 of 0.61p (2017: 3.73p)

The Group continued to generate cash from operating activities resulting in cash at 31 December 2018 of £0.725m (2017: £1.390m) with borrowings of £0.404m (2017: £0.391m).


Wilmcote Holdings (WCH.L) 97.5p £20.3m

Wilmcote Holdings announced the appointment of Kevin Dangerfield as CFO and a Director of the Company effective from 1 July 2019.

Kevin joins Wilmcote from Laird, the leading UK electronic components maker, where he has been CFO since Oct 2016, continuing in the role since Laird’s acquisition by Advent International in 2018.

During his tenure at Laird, Kevin successfully led the group through a re-organisation and strategic re-focus, significantly improving margins and cash flow, and subsequently negotiating the sale to Advent.

Prior to Laird, Kevin served as CFO of Morgan Advanced Materials plc from 2006 to 2016, following six years as Group Financial Controller (2000-2006).

Adrian Whitfield, Wilmcote’s Chief Executive Officer commented: “I am delighted to welcome Kevin to Wilmcote. He has extensive knowledge and experience that will support the successful delivery of our investment strategy”.


Anglo African Oil & Gas (AAOG) 10.4p £23.79m

Anglo African Oil & Gas, an independent oil and gas developer, announced the receipt of a letter from the Government of the Republic of the Congo signed by the Minister of Hydrocarbons,  Monsieur Jean-Marc Thystere Tchicaya, formally offering a new licence to Petro Kouiliou, the Company’s wholly owned subsidiary, over the producing Tilapia oil field.  The Company and the Government will now work together to finalise the terms of a new Production Sharing Contract for the new Tilapia licence.

Importantly, the Company has been informed through the letter that the New Licence will have a 25-year period and that PK will retain its current 56% interest in Tilapia.


Sareum Holdings* (SAR.L) 0.72p £20.85m

Sareum Holdings, the specialist small molecule drug development business, announces that its CEO, Dr Tim Mitchell, will give a company presentation at BioTrinity 2019 in London, which takes place from 30 April – 1 May.

The presentation, to be held today at 11:05am BST, will introduce Sareum and provide an overview of its lead programmes, including SRA737, a novel Chk1 inhibitor licensed to Sierra Oncology (NASDAQ: SRRA) and its two TYK2/JAK1 kinase programmes, SDC-1801 and SDC-1802, targeting autoimmune diseases and cancers.


Rosenblatt Group (RBGP.L) 100p £79.29m

Rosenblatt Group, the professional legal services company, announced its audited preliminary results for the period ended 31 Dec 2018.

Revenue of £12.5m, up 19% (2017: £10.5m)

Adjusted EBITDA of £4.3m, up 18% (2017: £3.6m),

Profit before tax of £3m (2017: £3.2m)

Profit after tax of £2.3m, representing 18.4% of revenue

Strong balance sheet with net assets of £35m and no debt

Cash and cash equivalents of £13.4m

First interim dividend for the eight months to 31 Dec 2018 of 2.8p per share will be paid to shareholders on the register as at 10 May 2019


Animalcare (ANCR.L) 145.5p £84.98m

Animalcare Group, the European Animal Health business, announced its full year results for the year ended 31 Dec 2018.

Reported revenue growth of 16.3% to £72.5m (2017: £62.3m). Up 2.7% on a proforma basis

Underlying EBITDA increased by 21.7% to £11.8m. Up 2.8% on a proforma basis

Statutory loss before tax, which incorporates non-underlying items, decreased to £0.4m (2017: £0.4m profit) with reported basic loss per share decreased to 1.7p (2017: 0.2p earnings per share)

Improved underlying cash conversion to 79.9% (2017: 65.9%) with net debt reduced by £2.3m to £23.6m

Proposed final dividend of 2.4 pence per share giving a total dividend of 4.4 pence per share for 2018


Staffline (STAFF.L) 882p £246.4m

Staffline provided the following update regarding the publication of its final results for the year ended 31 Dec 2018.

As set out in the Company’s announcement on 30 March 2019, following allegations by a third party in respect of invoicing and payroll practices within the Group’s Recruitment division, a review was instigated including the appointment of independent legal advisers as well as instructing the Group’s auditors to extend their scope of work.

The independent legal report has now been delivered in full and there are no further matters to report beyond those in the key findings interim report, which were described in the announcement of 30 March 2019. Significant progress has been made on the extended audit and the Board continues to expect to report, subject to audit completion, an underlying trading performance for the year ended 31 December 2018 in line with expectations.

The key outstanding matter in finalising the results relates to the Group’s historical compliance with National Minimum Wage Regulations 2015. This is a complex area and management, in conjunction with HMRC and supported by an independent advisor, are assessing the significant amount of historic data and transactions, which will then be subject to audit. Once the work is completed and audited, Staffline will release its preliminary results and shareholders will be updated as appropriate.


Thor Mining (THR.L) 0.68p £5.51m

The Board of Thor Mining announced positive interim results from drilling at the Bonya tungsten deposits, adjacent Molyhil, in the Northern Territory of Australia.

The Bonya project is held in joint venture with Arafura Resources Limited (ASX: “ARU”), with both parties contributing to the cost of the program in proportion to their project equity (THR 40% : ARU 60%).

Interim results for three of the four targets are now available following portable x-ray fluorescence (“XRF”) determination, and should be considered preliminary and subject to confirmation in subsequent laboratory assay.  Laboratory assays results may vary from those obtained from XRF.

27 metres @ 0.32% WO₃ from 71 metres, and 16 metres @ 0.43% Copper from 43 metres, from White Violet hole 19RC020 ;

12 metres @ 0.70% WO₃ from 35 metres and 25 metres @ 0.42% WO₃ from 63 metres from White Violet hole 19RC021;

29 metres @ 0.75% WO₃ from 81 metres, including 13 metres @ 1.43% WO₃ from 91 metres from White Violet hole 19RC022;

2 metres @ 0.43% WO₃ from 16 metres from Tashkent hole 19RC001;

2 metres @ 0.52% WO₃ from 31 metres from Jericho hole 19RC008.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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