Small Cap Feast
Small Cap Feast – Small Cap Feast 18/02/2019
Set Menu AIM:
Total number of AIM Companies (Incl Susp): 910
Total number of AIM Companies trading: 841*
* As at 15 February 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 15 February 2019
Set Menu Standard List:
Total number of Standard List Companies (Incl Susp): 145*
Total number of Standard List Companies trading: 128*
* As at 15 February 2019
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What’s Cooking in the IPO Kitchen?
Main Market (Premium)
DWF, a global legal business, expects to raise primary gross proceeds of approximately £75m. Due March
United Oil & Gas (UOG.L) an oil and gas exploration and development company brought to the Official List (Standard Segment) in July 2017 by way of a reverse takeover of Senterra Energy plc. No capital to be raised, expected market cap of £17m and expected 28 Feb
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.
Polemos, to be renamed Digitalbox plc, has agreed to acquire Digitalbox Publishing Holdings Limited for c.£10m through a share for share exchange. The acquisition constitutes a RTO. Polemos has also agreed to acquire the entire issued share capital of Mashed Productions Limited, a digital media business which owns the online satirical news website “The Daily Mash”, for a maximum total consideration of up to £1.2m. Market cap on admission £12.4m, expected 28 February
Crossword Cybersecurity* (CCS.L) 320p £14.74m
The technology commercialisation company focusing exclusively on the cyber security sector, announced that it has signed an agreement with Kinnerton Confectionary regarding the use of Crossword’s secure Third-party Assurance platform, Rizikon Assurance.
Kinnerton Confectionery is Britain’s largest independent manufacturer of chocolate and novelty confectionery specialising in character merchandising. From humble beginnings in 1978, the company has grown to service a range of customers and is proud to be one of the few UK confectionery companies able to offer ‘nut safe’ chocolate.
Rizikon Assurance is a secure, encrypted portal used by organisations to assure their third parties and suppliers. It contains standard questionnaires on subjects such as cyber security, GDPR, supplier on-boarding, modern slavery and anti-bribery & corruption, and also supports the customer’s own question sets and scoring approaches. It improves the scalability, security and auditability of third party assurance and due diligence via automation, centralisation and encryption.
Yourgene Health (YGEN.L) 13.88p £54.3m
The international molecular diagnostics group which commercialises genetic products and services, announces a restructuring of its financial and commercial relationship with Life Technologies Limited.
Life Tech to own 9% on warrant exercise locked in for three years. £12.7m debt write off.
Yourgene will, once cashflow positive, pay a modest commission on sales within Southeast Asia under the new commercial agreement described below, up to a cap of £6.5m
Yourgene will establish a contingent liability of £6.5m which crystallises only in the event of a sale of the Company or its insolvency.
New agreement to be entered into granting Life Technologies a three-year period of exclusivity for the Company’s NIPT (non-invasive prenatal testing) products in Southeast Asia.
Alien Metals (UFO.L) 0.04p £0.32m
The mining exploration and development company, announced an exploration update for its twelve wholly owned silver concessions in Zacatecas State, Mexico and details of its planned 2019 exploration programme. Within this portfolio are the Donovan 2 concession, which lies within close proximity of the San Nicolas copper zinc deposit, and the San Celso concession which consists of high-grade, low sulfidation epithermal veins. Further to the Company’s announcement of 26 Sept 2018, the Company undertook a comprehensive review of the asset portfolio in Sept 2018 which then prompted further prospecting and field mapping campaigns over the entire 1,500 hectare concession area in Nov and Dec 2018, Following this, the Company has now concluded that it believes the portfolio, held through its wholly owned subsidiary Compañia Minera Estrella de Plata SA de CV, remains prospective and Alien will continue to discharge its obligations to the Mexican DGM.
Initial priorities highlighted further in the RNS.
Croma Security Solutions (CSSG.L) 96p £13.2m
2019 HY Trading Update (Dec 18). “Another successful trading period generating revenues and profits ahead of internal expectations at the outset of the financial year, with trading through both divisions benefitting from high demand from both the public and private sectors.
Croma Vigilant, which employs over 1,200 security professionals, to guard assets and individuals, benefitted in the prior financial year from some large one-off contracts which were not expected to be repeated in the current year. However, in H1 this division has continued to win an increasing share of the security market both contracted and shorter projects as institutions opt for Croma Vigilant’s premium service resulting in trading being maintained at the record levels achieved in the prior year.
Croma Systems, provider of a range of innovative security technology services including CCTV, Intruder Alarms, FastVein (Biometrics) and high security locks, has also benefitted from good demand across its business activities.
The Company expects to report HY EBITDA of not less than £1.2m (2018: £1.2m).
Angling Direct (ANG.L) 73.5p £46.85m
FYJan19 trading update from the largest specialist fishing tackle and equipment retailer in the UK.
The Company expects to report revenue for the financial period of £42m, increasing by 38.9% compared with the same period the previous year (2018: £30.24m). The Company continued to grow sales both in-store and online and reported that margins have increased slightly compared to last year. In-store sales were £19.74m, an increase of 50% overall and up 6.2% on a like for like basis. Angling Direct added three new stores during the period, taking the total to 24. Online sales grew to £22.26m, an increase of 30.3%, as a result of the Company’s continued investment in its ecommerce platform and development of international websites.
Tectonic Gold (TTAU.L) 0.45p £3.4m
The Intrusive Related Gold exploration pioneer, announced that it has executed an agreement with VAST Mineral Sands Pty Ltd for a 50% economic interest in diamond mining concessions on the South African Government’s operating Alexkor diamond mine in the Republic of South Africa. The Directors of the Company expect that the Joint Venture will result in immediate and sustainable cash flows to support the development of the Company’s gold exploration activities in Australia.
10 year concession to mine alluvial diamonds
Tectonic Gold to acquire a 50% economic interest for $0.65m in equity priced at 2.2p per share
Over 10 million carats recovered to date
Michelmersh Brick (MBH.L) 92p £79.27m
The specialist brick manufacturer, has acquired the entire issued share capital of Floren & Cie an established, profitable clay brick manufacturing business, for a maximum consideration of EUR 9.9 m. The Acquisition is expected to be immediately earnings enhancing for the Group.
Floren has been operating out of Sint Lenaarts (Brecht) nr. Antwerp, Belgium, since 1896. In 2018, Floren manufactured 19.5 m premium wirecut bricks, which were predominantly sold within the Belgian and UK markets, generating unaudited revenues of EUR 5.7 m and EBITDA of EUR 1.75 m.
Proposed £5m placing at 5p.
FYDec19E rev £44.99m and PBT £7.8m, yield 3.6%.
BATM (BVC.L) 45.95p £185.5m
Further to the Group’s announcement of 4 Feb 2019, BATM Advanced Communications, a provider of real-time technologies for networking solutions and medical laboratory systems, announced that it has been awarded an additional follow-on contract by the same Government defence department customer. This new order has a value of $3.3m and will be delivered during 2019.
This order is for the delivery of additional hardware and software cyber security products. The Group is also providing the customer with cyber security services under a separate contract. Following this latest order, the total contracted revenue awarded to the Group to date by this customer for products and services for this cyber solution is over $13.3m.
FY Dec19E rev $92.5m and PBT $2.48m.
Itaconix (ITX.L) 2.85p £9.02m
The “leading innovator in sustainable specialty polymers, announced the following trading update for the year to 31 Dec 2018.
Unaudited revenues for the year were £0.7m, with unaudited EBITDA in line with expectations. In addition, the Company successfully completed the previously announced restructuring of its UK operations, reducing its overall cost base for ongoing operations in the second half of 2018 to a rate of £2.1m p.a.
Net cash balances as of 31 Dec 2018 were £2.1m. The Company is also shortly expected to receive £0.3m of cash from R&D tax credits related to expenditure in 2017.
Since the year end, the Company has announced a supply agreement with Nouryon for Itaconix polymers to be used in non-phosphate detergents.”
Transense Technologies (TRT.L) 59.5p £6.45m
“The provider of sensor systems for the industrial, mining and transportation markets, announced that a customer has placed an order for 50 iTrack II units for installation in mines in North America.
Graham Storey, CEO of Transense, commented: “We are delighted with this new relationship. The Customer is a major supplier to the mining marketplace and their decision to adopt iTrack II after extensive testing is a very gratifying endorsement of the capabilities of Translogik and the iTrack II system. While there is no actual further commitment in place, we anticipate that sales to the Customer will reach very substantial levels by the end of our next financial year. We look forward to working closely with them both providing iTrack II to their customers and also developing further enhancements and improvements in the future.”
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