Small Cap Feast

Small Cap Feast – 30 July 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 887*

Total number of AIM Companies trading: 804**
* As at 26 July 2019

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 1*

Total number of NEX Growth Market Companies trading: 1*
* As at 26 July 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): Physiomics Plc (AIM:PYC), fastjet Plc (AIM:FJET), European Lithium Limited (NEX:EUR), Keras Resources Plc (AIM:KRS), Advanced Medical Solutions Group plc (AIM:AMS), NWF Group plc (AIM:NWF), Transense Technologies plc (AIM:TRT), Kape Technologies Plc (AIM:KAPE), MC Mining Limited (AIM:MCM), Beximco Pharmaceuticals Limited (AIM:BXP)*

Total number of Standard List Companies trading: Physiomics Plc (AIM:PYC), fastjet Plc (AIM:FJET), European Lithium Limited (NEX:EUR), Keras Resources Plc (AIM:KRS), Advanced Medical Solutions Group plc (AIM:AMS), NWF Group plc (AIM:NWF), Transense Technologies plc (AIM:TRT), Kape Technologies Plc (AIM:KAPE), MC Mining Limited (AIM:MCM), Beximco Pharmaceuticals Limited (AIM:BXP)*
* As at 26 July 2019

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European Lithium (NEX:EUR) 7.3p £43.1m

European Lithium Limited, a mining exploration and development company focusing on its wholly owned Wolfsberg Lithium Project in Austria, announced its quarterly report for the three months ending 30 June 2019.

Key updates are as follows:
Darfner/Anzaplan has commissioned the pilot plant and conducts metallurgical test work and pilot processing.
Its summer drilling program is ongoing with drill rigs operating onsite to convert JORC resource inferred into Measured and Indicated category and upgrade resources to 10.98mt.

The Company announced that it would be undertaking a placement, mainly to European based sophisticated investors, at an issue price of $0.09 per share to raise proceeds of up to EUR1.5million (before expenses).

During this quarter the Company issued 18.2m shares, raising cash proceeds of $1,638,000 before expenses.

Off the Menu:

What’s Cooking in the IPO Kitchen?

Main Market

AIM

NEX

Freyherr International Group PLC the Medicinal Cannabis holding company established in 2016, is planning to list on the NEX exchange on the 13 August

Breakfast Buffet

Beximco Pharma (BXP.L) 42.00p £168.31m

Beximco Pharmaceuticals, a drug manufacturer primarily in emerging markets providing access to affordable medicine, has launched its fifth product to the US market. The drug Nadolol aims to treat blood pressure and angina pectoris (chest pain). The total market for Nadolol in the US stood at more than $63m in 2018 according to IQVIA audited research. Nadolol is available in 20, 40 or 80 mg doses and is taken 0rally (by mouth).

The launch follows the successful release and export of Carvedilol, Sotalol, Methocarbamol and Metformin to the US markets. The release is consistent with Beximco’s earlier moves following the approval of its manufacturing site in the US by the FDA. Expected to be launched by the company’s US distribution partner, Bayshore Pharmaceuticals LLC, the product is a generic equivalent of Bristol-Myers Squibb’s Corgard.

Beximco is the only Bangladeshi company to export pharmaceutical products to the US, which according to Managing Director Nazmul Hassan is “a validation” of Beximco’s “expertise in offering specialised generic products in a global setting. “

MC Mining (MCM.L) 41.50p £58.47m

The emerging developer and producer of high-quality coking and thermal coal, today announced its results for the quarter ended 30 June 2019. Its production, sales and revenue for the final quarter of its financial year declined due to pressure on coal prices. In dollar terms, the price per tonne was down 27% over the quarter, at USD70.87 (17% lower in South African rand terms). Production costs also rose by 1.9% to USD 48.90 from USD 48.00 the year before. Production dropped 11% to 121,742 tonnes from the same period in the financial year before.

Although many key metrics declined the company maintained the period was successful, with a notable update being the conclusion of a hard coking coal off-take agreement with ArcelorMittal South Africa Ltd for yearly purchases of 350,000 to 400,000 tonnes that will be produced at the Makhado coking coal project in South Africa.

MC has been approved by the Industrial Development Corp of South Africa Ltd for a ZAR245m term loan facility, which will form part of the funding package for phase one of the aforementioned Makhado project.

AP14 thermal coal prices remained under pressure, with the average price dropping from USD67/tonne from USD100 the previous year, due to competition from higher liquefied natural gas supply and low demand in some parts of the northern hemisphere.

Kape Technologies (KAPE.L) 82.00p £118.04m

KAPE Technologies, a security as a service (SaaS) company focused on helping consumers globally have a greater experience with digital protection, provided a trading update for the six months ended 30 June 2019. The company continued to trade strongly through the first half, underpinned by Kape’s consumer acquisition strategy and also some new product initiatives. H2 2019 revenue is expected to be c.$29.6m, up from $24.1m the previous year. This was driven by “growth in sales of Kape’s suite of digital privacy products”. Adjusted EBITDA is expected to be c. $5.8m, up 40.2% from H1 2018.

R&D remains a key focus, to achieve the end goal of supporting their customers’ widening digital privacy requirements. The end-market for Kape is experiencing strong growth, due to the new ZenMate solutions introduced in the period. Two new macOS malware security threats were also exposed through the group’s endpoint security solution, which Kape users are now fully protected against. The Group expects to report its interim results for the six months ended 30 June 2019 on the 17 September 2019.

Transense Technologies (TRT.L) 63.00p £9.87m

Transense Technologies plc, the provider of sensor systems for the industrial, mining and transportation markets, provided a trading update for the year ended 30 June 2019.

Over the second half of the year, revenues improved continuously, so full year revenues were ahead of the board’s previous expectations at c. £2.20m, from £2.05m in the 2018 financial year. A notable highlight was that subscription income arising from large mining haul trucks using Translogik’s iTrack II tyre monitoring system grew considerably reaching approximately £0.98m for the full year (FY18: £0.61m).

In February 2019 Transense announced an initial order with a major supplier to the mining marketplace. Transense believe that this activity offers potential for substantial future growth. However, revenue from Translogik probes reduced from record levels in the previous financial year, partly due to reduced promotional activity because of spend control before the Company’s placing announced in March 2019.

CEO Graham Storey commented that although revenues from Probe and SAWSense fell during the period, the level of activity was still encouraging, and Transense will in due course provide a further update with its final results.

NWF Group (NWF) 167.00p £80.93m

NWF Group, a specialist agricultural and distribution business delivering feed, food and fuel across the UK, announced its final results for the year ended 31 May 2019. Revenue was up 9.9% to £671.3m from 2018, however headline operating profit was down 3.8% over the same period to £10.2m. This led to headline profit before taxation dropping 4.9%, and headline EPS dropping 5.4%.

The results were ahead of original market expectations but behind the prior year (which was a record for the company). All three divisions saw revenue growth, which was a result of increased activity and higher commodity prices. Notably, there was strong profit improvement in its Food division, from improved operational effectiveness with new customers. In Fuels, despite a mild winter, performance was good and volumes were added to by 20%. For feeds, results were stable as strong summer demand was offset by weaker winter demand.

Although net debt rose £4m to £10.4m, the company’s balance sheet remains strong with net debt at 0.7x EBITDA. The Board’s confidence in the business has shown from the increase in dividend per share from 6.3 p to 6.6p.

Advanced Medical Solutions Group (AMS) 290.00p £618.44m

Advanced Medical Solutions Group plc, the surgical and advanced wound care specialist company, announced that it has received 510(k) approvals from the US FDA (“Food and Drug Administration”) for its Silver High Performance Dressing and Silicone PHMB Foam Dressing. Both products will be commercialised via AMS’s network of woundcare partners and distributors in FDA approved markets.

Silver High Performance Dressing is a next generation antimicrobial gelling fibre technology with patent protected construction. It delivers sustained antimicrobial activity for up to seven days and the dressing is used for chronic wounds such as ulcers, diabetic foot ulcers, post-operative surgical wounds, and graft and donor sites.

Silicone PHMB adds to AMS’s existing PHMB Foam Range and gives AMS and its commercial partners increased access to the antimicrobial foam market in the US, worth more than $100m and growing at 6% year on year. AMS has begun the process to gain CE mark approval in Europe for Silicone PHMB which the company expects to complete in the first half of the 2020 financial year.

Keras Resources (KRS) 0.47p £10.87m

Keras Resources, a technology metals development company, provided an update on Calidus Resources, which it holds an approximately 35.8% stake in. Calidus’ update was as follows:

Excellent drill results, including intercepts of up to 1m @ 107.16g/t Au from 36m, were returned from recent infill drilling inside and adjacent to the Klondyke Prospect (‘Klondyke’), underpinning a potential resource upgrade. Emphasis has now been placed on upgrading the category of the resource to allow additional resources to be declared.

An additional benefit is that the results will now provide detailed knowledge of the orebody for accurate grade modelling. A 12,000m drilling program is now underway with this in mind. Calidus is continuing work towards extending the life of the mine, while also further de-risking the mine through project enhancements. These all serve to improve the commercial viability of the Warrawoona project.

Once the Primary Feasibility Study (PFS) of the Warrawoona Project is completed, Keras will be issued an additional 265m Performance Shares in Calidus.

European Lithium (NEX:EUR) 7.3p £43.1m

European Lithium Limited, a mining exploration and development company focusing on its wholly owned Wolfsberg Lithium Project in Austria, announced its quarterly report for the three months ending 30 June 2019.

Key updates are as follows:

Darfner/Anzaplan has commissioned the pilot plant and conducts metallurgical test work and pilot processing.

Its summer drilling program is ongoing with drill rigs operating onsite to convert JORC resource inferred into Measured and Indicated category and upgrade resources to 10.98mt.

The Company announced that it would be undertaking a placement, mainly to European based sophisticated investors, at an issue price of $0.09 per share to raise proceeds of up to EUR1.5million (before expenses).

During this quarter the Company issued 18.2m shares, raising cash proceeds of $1,638,000 before expenses.

Fastjet (FJET) 1.48p £56.06m

Fastjet, an African value airline, has announced its unaudited Interim Results for the six months to 30 June 2019, together with its strategic and operational developments.

Revenue was up to $19,731,000 from $14,479,000 in the corresponding period for the last financial year. This contributed to a decrease in the loss for the period after tax to around $10,110,000.

Cash balance at the end of the period for the company was up slightly to $3,415,000 from $3,312,000.

Physiomics* (PYC) 3.35p £2.44m

Physiomics plc, a provider of technology-based solutions to predict the effects of cancer treatment regimens for the biopharma industry, confirmed that based on its unaudited management accounts for the year ended 30 June 2019, the Company is trading in line with analyst expectations.

Physiomics expects to publish its final audited results for the year ending 30 June 2019 during the week commencing 30 September 2019.

Head Chef:

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

*A corporate client of Hybridan LLP

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