Small Cap Feast

Small Cap Feast – 30 January 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 914

Total number of AIM Companies trading: 847*
* As at 24 January 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 24 January 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 145*

Total number of Standard List Companies trading: 128*
* As at 24 January 2019

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

NEX Exchange

Altona Energy  (ANR.L) expected to move from AIM 1 February

Main Market (Specialist Funds)

The Global Sustainability Trust -aiming for attractive risk-adjusted returns by investing primarily in private market investments that are expected to have a positive environmental and social impact raising c.£200m. Due 31 Jan 2019.

AIM

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.

Circassia Pharma (CIR.L) – specialty pharmaceutical company focused on respiratory disease transferring from the Main Market. No funds being raised. Due 4 Feb. Mkt Cap c.£185m.

Greenfields Petroleum (TSX-V:GNF)  production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected late January 2019.

Chaarat Gold Holdings—RTO, the Company intends to acquire Kapan Mining and Processing CJSC, which owns the Shahumyan medium-sized polymetallic mine in Kapan in the Republic of Armenia. No raise, market cap of £110.1m, due early Feb

Breakfast Buffet

James Halstead (JHD.L) 456p £949m

“The commercial flooring manufacturer and distributor, provided the following trading update ahead of its interim results for the half-year to 31 Dec 2018.

In his AGM trading update, on 7 Dec 2018, the chairman Mr. Anthony Wild noted that trading to date had been encouraging in terms of turnover and profit for the first five months. The month of Dec was disappointing and broke with the trend of increases of the previous months. The reduction in this month was impacted by the UK and relates in part to fewer trading days and, we believe, year-end stock reductions by UK distributors. Trading in Jan is ahead of the comparative period.

In addition, we have seen margin improvement and profit for the half year will be at a record level. We also note that the Group cash balances have increased even after outlays of some £20m on dividend paid in Dec 2018 and tax payments of £5m.

Our confidence in full year progress continues and our ability to continue with strong dividend growth enhanced.”

 

Renew Holdings (RNWH.L) 377.2p £284m

AGM statement from the Engineering Services Group supporting UK infrastructure.

Trading for the first quarter of the year has been in line with the Board’s expectations. The Group order book at 31 Dec 2018 was £570m (31 Dec 2017: £511m). The Engineering Services order book stood at £522m (31 Dec 2017: £433m). Net debt and cash generation is in line with the Board’s expectations.

Since the year end, the Board is delighted to announce that we have secured all of the Network Rail Control Period 6 (2019-2024) (“CP6”) Infrastructure Projects Frameworks that we have tendered for and that we have maintained our positions from CP5 (2014-2019). QTS continues to perform in-line with management expectations and has renewed all of its CP6 frameworks.”

Sub 10x PE and yield c.3%

 

Mi-Pay (MPAY.L) 9.7p £4.4m

The provider of outsourced digital transformation and mobile payment solutions, provided a trading update for the year ended 31 Dec 2018.

Trading for the year was in-line with market expectations, with increased year-on-year revenues.

Group operated profitably before interest, tax and depreciation in the second half of the year.

Increased payment transaction values processed to £106m during the year (2017: £94m).

Full year operating loss reduced to £0.2m (2017: £0.6m loss).

 

Erris Resources (ERIS.L) 7p £2.2m

Update on activities at the Abbeytown zinc-lead-silver-copper project in County Sligo, Northwest Ireland. Includes  results for 11 of the 12-hole underground drill programme.  

12.66 % Zn+Pb combined and 21.05g/t Ag over 2.0m in ABUG004

14.37 % Zn+Pb combined and 67.25g/t Ag over 2.0m in ABUG009

10.43 % Zn+Pb combined and 34.73g/t Ag over 2.7m in ABUG009

5.33 % Zn+Pb combined and 21.44g/t Ag over 5.0m in ABUG010

9.32 % Zn+Pb combined and 60.4g/t Ag over 4.0m in channel sample pillar AB-PL-10

7.88 % Zn+Pb combined and 48.86g/t Ag over 3.0m in channel sample pillar AB-PL-11

Continuity of mineralisation confirmed between historic underground mine and mineralisation  intersected in recent surface drilling 300m south of mine completed by Erris in late 2018

New target areas identified to extend the known footprint of mineralisation further south from the area drilled 300m south of the mine

 

STM Group (STM.L) 54p £32.1m

Trading update from the  cross border financial services provider.

The Group expects to deliver revenue of £21.3m (2017: £21.5m) and PBT of £3.9m for 2018 (2017: £4.0m), which includes an expected £0.5m technical reserve release from London & Colonial Assurance plc (2017: £1.3m). This represents underlying revenue of £20.5m (2017: £20.2m) and underlying profit before tax of £3.7m (2017: £3.2m) demonstrating year on year growth in these key metrics of the underlying business. The consistent theme to our business model remains the solid recurring revenue stream across the Group which accounts for 77% of total revenue (2017: 75%). Additionally, the Board announced that Peter Marr has been appointed as COO of STM and has joined the Board of Directors with immediate effect. Peter formally worked as COO of Police Mutual, one of the UK’s largest affinity mutual societies providing insurance, mortgages and savings products to its members, overseeing a staff in excess of 600 people.

PE sub 10x. FYDec19E yield >4%.

 

Reach4Entertainment  (R4E.L) 1.03p £10.3m

The entertainment marketing communications group, announced that it has signed an agreement to acquire 50% of the issued share capital of Buzz 16 Productions Limited. The total consideration for the shareholding will be satisfied through r4e’s existing cash resources and the Board expects the acquisition to be earnings accretive in 2019.

Buzz 16, which was founded in 2016, creates both short and long form sports orientated content and is co-owned by shareholders including former Manchester United player and respected broadcaster, Gary Neville, along with former Sky Sports Premier League producer, Scott Melvin.

Buzz 16 has been responsible for a number of hit sports-related productions in recent years, including “Class of 92: Full Time”, which became Sky Sports most downloaded series in 2018, and the International success “SoccerBox”.

We could see no forecasts.

 

Ingenta (ING.L) 75.5p £12.8m

The  software and services provider to the publishing and media industry, provides the following trading update for the year ended 31 Dec 2018.

The Group confirmed that it has made considerable progress in its business combination plans, moving away from a divisional product siloed structure, which will enable the Group to operate in a more efficient and nimble manner going forward. The Group expects to report revenue of £12m and adjusted EBITDA of approximately £0.8m. The Group generated operating cash inflows of £2.3m in the year, before expenditure on research and development of £1.8m, acquisition costs of £0.25m, dividends of £0.25m and the planned reorganisation costs of £0.8m, resulting in net cash balances at year-end of £1.3m.

The Board confirms its intention to pay a dividend of 1.5p per ordinary share for the 2018 financial yea r.

We could see no forecasts.

 

Taptica (TAP.L) 188p £128.8m

Taptica notes the announcement earlier today by RhythmOne Plc (AIM:RTHM) and confirms that the two companies are in advanced discussions regarding an all-share merger of the two companies. The combination of the two businesses  would create one of the leading video advertising companies in the US, delivering significant economies of scale, product offering, revenue synergies and supply chains to compete with the industry leaders, in an industry where scale of offering is key.

The Merger is intended to be structured as an acquisition of RhythmOne by Taptica and the terms of the combination are intended to be set such that Taptica will issue 16 new Taptica shares for each 19 RhythmOne shares held by RhythmOne shareholders. On this basis, following the Merger and on an illustrative basis, existing Taptica shareholders will hold approximately 50.1% and RhythmOne shareholders would come to hold approximately 49.9 per cent. respectively of the Enlarged Group .

 

Renewi (RWI.L) 28.75p £230.04m

The international waste-to-product business, announces its trading update for the period from 1 Oct 2018 to date.

Given our continued expectation of a strong fourth quarter performance, the Board remains confident that Renewi will deliver full year results in line with its expectations as set out with the Half Year Results in Nov 2018.

During the third quarter, trading has continued broadly in line with management’s expectations. Our merger integration projects have made good progress in recent months. We remain on track to deliver the committed 30m of cost synergies for the year ending 31 March 2019 and the committed 40m for the year ending 31 March 2020.

FYMar19E PE <6x and yield of over 10%.

 

Cadence Minerals (KDNC.L) 0.14p £10.6m

“Cadence Minerals announced that a maiden Ore Reserves has been declared on Cadence’s 30% joint venture ground at the Yangibana Rare Earth Project in the Gascoyne region of Western Australia. The total Probable Ore Reserves on our joint venture are 2.07 million tonnes (“Mt”) at 1.66% Total Rare Earths  including 0.43% neodymium oxide (“Nd(2) O(3) “) and praseodymium oxide (“Pr(6) O(11) .)”

The Yangibana Project hosts rare earths deposits rich in neodymium and praseodymium, elements vital to permanent magnets that provide many critical components of wide ranging high-tech products, including electric vehicles, renewable energy wind turbines, robotics, medical applications and others. The Yangibana Project aims to be the next significant producer of neodymium and praseodymium outside of China.

 

Head Chef:

Derren Nathan
0203 764 2344
derren.nathan@hybridan.com

*A corporate client of Hybridan LLP

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