Small Cap Feast

Small Cap Feast – 31 March 2020

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Main Market (Premium)

DRI Healthcare—investment company focused on investments in healthcare Royalty Assets  looking to raise $350m.  Timetable now extended.

 

Breakfast Buffet

Leeds Group 9.5p £2.6m (LDSG.L)

 COVID-19 trading update.

Leeds Group’s activities in Germany, Hemmers/Itex Textil Import Export GmbH  and Stoff-Ideen-KMR GmbH  have been severely affected by the country wide lockdown imposed by the German government.

The wholesale business of Hemmers has been considerably restricted and all retail shops in KMR have been closed until further notice.  As a result, the trading results for the 3-month period from March to May 2020 will be affected.

Whilst the directors are taking mitigating actions which includes support from government schemes, the benefit in the current financial year will be limited given the proximity to the May year end. Therefore, in addition to the reduced trading announced in the Interim Statement issued on 3 February 2020, the Board expects to report a substantial loss for the financial year to 31 May 2020.

 

TMT Investments* $1.85 $56m (TMT.L)

In respect of COVID-19, TMT confirms:

  • No disruption to the Company’s activities;
  • Strong balance sheet with cash reserves of approximately US$10.7 million and no financial debt;
  • Increased engagement with the Company’s portfolio companies to assess impact of COVID-19 and providing advice and support where needed;
  • Majority of TMT’s portfolio companies are well positioned to weather the impact of COVID-19; and
  • ·   Selective investment approach given COVID-19, will likely mean no significant new investments in the coming months.

 

Kape Technologies 178p £288m (KAPE.L)

The digital security and privacy software business, provides an update regarding the impact of COVID-19.

As a result of the restrictions being imposed on movement across the globe in response to the COVID-19 pandemic, and an increase in both remote and home working, Kape has seen increased demand for its products. This has been especially apparent within the Group’s digital privacy division, and in particular Kape’s VPN offering has experienced increased demand globally but most notably from North America and Europe.

Demand for Kape’s digital privacy products is robust, and the Group is on track to deliver revenues of $120-123 million and Adjusted EBITDA of $35-38 million in 2020.

 

Quixant 55.5p £36.9m (QXT.L)

Update from the leading provider of innovative, highly engineered technology products principally for the global gaming and broadcast industries.

  • Group has seen a robust performance in first quarter 2020 trading despite supply chain challenges
  • However the shutdown of the gaming sector and many other industries for an indefinite period clearly presents a material uncertainty to the Group’s operations
  • Withdrawing guidance for 2020 and thereafter
  • Cash conservation, employee safety and protection of the business to support normal operations once we see demand returning is our immediate priority.
  • Net cash of $17.7m at 29 February 2020 (gross cash of $18.5m) with undrawn bank facilities of $3.0m

o Change in board composition – Effective 31 May 2020, Nick Jarmany will become non-executive deputy chairman, Gary Mullins will become a non-executive director and C-T Lin will step down from board responsibilities but continue to support the Taiwanese operation as a consultant.  Gaye Hudson will also leave the board effective 19 May 2020.

 

Harvest Minerals 3p £5.6m (HMI.L)

Corporate Update ·

COVID-19

o  No impact yet on Harvest’s operations, but continue to monitor closely

o  Series of measures implemented to keep staff, customers and local community safe

  • Financials

o  Debt free, positive working capital position of AUD$9.7 million as at 31 December 2019 – a strong balance sheet

o  Annual Financial Results to 31 December 2019 now expected in late Q2 2020 – delay due to the pandemic

  • Sales and Marketing

o  Sales and Marketing teams expanded to provide coverage in two new geographical areas

o  Orders up 150% to the end of February 2020 compared to the same period last year

  • Operations and Sustainability

o  Expansion of both footprint of the operating mine and product storage facility underway

o  Planting 18,000 native trees during 2020 to become a carbon free company

 

Sigma Capital 70p £62.7m (SGM.L)

The private rented sector, residential development and urban regeneration specialist,  announced the appointment of Michael McGill to the Board as Group Chief Financial Officer. As well as taking executive responsibility for the overall financial management of the Group and its subsidiaries, Mike will be specifically responsible for financial matters relating to The PRS REIT including leading a dedicated finance team that has been established to support the REIT’s ongoing growth. Malcolm Briselden, Finance Director of Sigma, remains in operational charge of Sigma’s finance team, working closely with Mike although he steps down from the Board today.

Mike, has over 20 years of experience in senior financial roles at listed and private companies. He was previously Group CFO at Baxters Food Group Limited, the international food processing company, CFO at Lomond Capital, the residential asset management company, and Group Finance Director at Murray International Holdings Limited, the property and metals group.

 

Distil 0.8p £4m (DIS.L)

Termination of its joint venture agreement with British Honey Company with immediate effect.

This agreement, made prior to the UK outbreak of Covid-19, was designed to allow our teams to jointly create a shared new product. As it was only formed in February this year, development work is at an early stage with relatively little cost incurred. Has to cancel this contract with immediate effect and both companies will extract their funds to focus on  individual opportunities and priorities.

Distil will continue to prepare exciting new brands and liquids in anticipation of the wider market reopening at a later date. These new brands will now be wholly owned by Distil. The impact of Covid-19 has led to the closure of pubs, bars and restaurants and increased demand from the retail sector, both through stores and online. Focusinr immediate efforts on working with  distributors and production partners to supply a changing demand landscape across trade channels.   Remains in line with market expectations following a strong Q4.

 

Falanx Group 0.95p £3.8m (FLX.L)

FY Mar 20 trading.  Update as to its expected results for the year ended 31 March 2020 and the impact of the ongoing global COVID-19 crisis. New customer wins (the majority of the revenue for which will be recognised in the next financial year), combined with much stronger recurring revenues in the Assynt strategic intelligence division, result in the Board expecting to deliver revenues of circa £5.9m for the year ended 31 March 2020 representing growth of 13% on last year. Overall, the Company currently expects to be able to operate effectively within its existing resources and will closely monitor the ongoing situation.

The Assynt division is a highly respected strategic intelligence consultancy specialising in the forecasting and interpretation of geopolitical business and security risks in emerging markets. Recent coverage has been extended to include the analysis of political, security, health and cyber-related risks from the outbreak of COVID-19 in these markets. Summaries of these reports are available at https://falanx.com/assynt/covid-19-coverage/.

 

Synairgen 68.5p £83m (SNG.L)

The respiratory drug discovery and development company, today announces that it has now commenced dosing patients in its trial of SNG001 (inhaled formulation of interferon-beta-1a) in COVID-19 patients. This announcement follows the one made by the Company on 18 March 2020.

The first patient has been dosed at the initial trial site (University Hospital Southampton NHS Foundation Trust). Synairgen has initiated a further six trial sites which are expected to start dosing in the coming days.

 

Intercede Group 44.5p £22.5m (IGP.L)

The specialist in digital identity, credential management and secure mobility, is pleased to announce the receipt of a large US Federal Government order totaling $4.6m. The order, which was included within the directors’ expectations for the year, includes software licenses and annual support & maintenance; $2.05m of which will be recognised in the financial year ending 31 March 2020.

In line with normal practice, a Trading Update will be provided as soon as possible after the completion of the financial year.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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