Latest Small Cap Feast

AIM Breakfasts

Small Cap Feast – 12 December 2018

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 921

Total number of AIM Companies trading: 851*
* As at 06 December 2018

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 06 December 2018

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 139*

Total number of Standard List Companies trading: 130*
* As at 06 December 2018

Dish of the Day:

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Off the Menu:

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Dish of the Day:

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What’s Cooking in the IPO Kitchen?

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 end Nov.

AIM

PetroTal Corp is an oil and gas company whose shares are currently admitted to trading on the TSXV. The Company is focused on development of oil and gas assets in Peru and it currently has controlling interests in three onshore Peru license blocks. No new funds being raised.  Due 21 Dec.  Mkt cap c.£80m

Litigation Capital Management—provider of litigation financing and ancillary services, moving from ASX (ASX:LCA) to AIM. Offer TBC.  Due 18 Dec. Mkt Cap A$64m.

Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is due to start trading on AIM 14 December. Raising £2m at 290p. Mkt cap at issue price £13.6m.

Manolete Partners—leading UK insolvency litigation financing business looking to join AIM raising £16.3m as a placing and £13.1 realised by the selling shareholder at 175p. Market cap £76.3m, expected 14 December

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 mid December.

Breakfast Buffet

Bigblu Broadband (BBB.L) 95.5p £54.15m

FYNov18 update from the  provider of alternative fast broadband services.

Total revenue increased c. 25% to c. £55m (FY 17: £44m)

Recurring revenue increased c.27% to c.£51m, representing 94% of total revenue

Like-for-like organic revenue growth on a constant currency basis of 7%

Continued growth of customer numbers to c. 113K (FY17: 100K)

Underlying EBITDA increased c.45% to £6.8m (FY17: £4.7m)

Net debt at c.£14m as at 30 Nov 2018 (FY17: £13.1m)

The Company enters 2019 rebranded as Bigblu Broadband, with a target of double-digit organic revenue growth for this financial year and beyond whilst maintaining its technology leadership in the sector.

FY18E rev of £55m and £6m PBT loss.

 

Barkby Group (NEX:BARK) 4.125p £1.6m

“The Barkby Group PLC, the consumer-focused hospitality group, announced that it has signed heads of terms for the acquisition of Centurian Automotive Limited.

Centurian Automotive is an award winning automotive dealership with a strong and fast growing online digital presence. Centurian prides itself on its best-in-class customer experience and was recently chosen by Autotrader from 13,000 motor dealers in the UK to represent the benchmark for all dealership training, marketing and master classes.

“Barkby is led by a highly experienced team with a successful track record of delivering value for shareholders. The Board believes that the acquisition of Centurian into our consumer-led hospitality portfolio will be highly complementary and accretive, and we look forward to completing the transaction.”

 

Huntsworth (HNT.L) 107p £339.07m

Update from the international healthcare and communications group. The Group continues to trade well and expects to reach at least market consensus headline profit estimates for the year to 31 Dec 2018. [Headline PBT of £29.4m]

Trading has been led by continuing strong growth in the Medical and Immersive divisions, with both showing double digit annual revenue growth. The Marketing division, led by Evoke, returned to like-for-like revenue growth in the second half, posting 2% growth, although as expected annualised revenue performance will decline around -3% on a like-for-like basis. Giant and Navience, which the Group acquired in the past five months, have both been integrated well and are trading in line with the Board’s expectations and are increasingly engaged in joint new business with the broader Evoke group. The Communications division continues to trade in line with the Board’s expectations with annual revenue decline stabilised at 5%, and second half margin improved over the first half.

 

Coinsilium (NEX:COIN) 3.35p £3.9m

“Coinsilium Group Limited, the blockchain venture builder and investor that finances and manages the development of early-stage blockchain technology companies, announced that it has raised £367,125  before expenses to fund the further growth and development of the Company.”

Financing undertaken at a 23.1% premium to the market close price on 11 Dec 2018, with a new strategic investor and a number of existing Shareholders.

Funds raised will be applied to strategic advancement of the Company, including a number of high impact initiatives under development.

 

NWF Group (NWF.L) 168.5p £82.12m

HY Nov 18 update from, the specialist distributor of fuel, food and feed across the UK.

The Group expects that overall trading for the half year will be ahead of prior year and the Board remains confident of delivering its full year expectations. Net debt was also lower than at 30 Nov 2017.

“In line with our strategy we are also pleased to announce the acquisition of Midland Fuel Oil Supplies Limited, a small 12 million litre fuel distributor based in Solihull, on 1 Dec 2018. The acquisition consolidates our market position to the South and East of Birmingham.”

FYMay19E rev £656.4m and PBT of £8.74m.

 

Strix (KETL.L) 136.3p £254.6m

The specialist in the “design, manufacture and supply of kettle safety controls and other complementary water temperature management components, provided an update on its intellectual property protection initiatives.”

“Acting on information provided by Strix, local IP enforcement authorities were able to raid a factory in Guangdong province belonging to Foshan Shunde Xiaolong Electrical Appliance Co. and seize electronic kettles that infringed Strix’s IP and which were to be exported to South Korea.”

Strix brought a claim based on unfair competition against Expo Börse GmbH and Schou Germany GmbH who had imported kettles into Germany”.

“The Company recently brought a complaint of electronic kettle patent infringement to the attention of Amazon who swiftly removed the webpage from their platforms”.

 

Avacta (AVCT.L) 29p £33.48m

The developer of Affimer® biotherapeutics and reagents, is pleased to announce that Dr Jose Saro has been appointed as Chief Medical Officer to lead the Group’s therapeutic development strategy and drive the in-house programmes into the clinic. Dr Saro brings over 20 years’ experience in the pre-clinical, translational and early clinical development of oncology assets, spanning small molecules, biologics and drug conjugates.  Dr Saro joins Avacta from Roche where he held the role of Senior Translational Medicine Leader at the Roche Innovation Center Zurich in which he focused on immuno-oncology and the development of combination products.  

Prior to his position at Roche, Dr Saro was Executive Director Oncology Global Development and Medical Affairs at Bristol Myers Squibb, based in Paris, where he led and contributed to many oncology clinical development programmes, including Sprycel, Ipilimumab, Nivolumab, anti-PDL1, anti KIR, anti LAG3, Brivanib, MEK inhibitor and Elotuzumab.

 

DP Poland (DPP.L) 23.5p £35.9m

Year to date trading update. From the operator and sub franchiser of Domino’s Pizza stores in Poland.

System Sales have grown substantially year-to-date, but as seen in the July and August sales numbers, announced within the interim results, we have seen softening like-for-like sales growth continue into the fourth quarter.  A combination of warm and dry weather continuing into November and sustained advertising spend by competing delivery aggregators, in particular, impacted share of voice and sales performance. In addition to these external factors our investment in top-line sales support in Q4 2017 was not replicated in Q4 2018, as we focused more on balancing sales growth with enhanced store profitability.

Despite the sales pressure, Company EBITDA for 2018 is expected to be broadly in line with expectations, but we approach the year ahead with caution and believe that sales and EBITDA performance for 2019 will continue to be impacted by competition for share of voice.

 

Augean (AUG.L) 64p £66m

Augean, one of the UK’s leading specialist waste management businesses, announced on November 21st that it was undertaking a review of its’ East Kent High Temperature Incinerator. The review is now complete and the Group has decided that the Facility will be mothballed early in the New Year. The Group will now seek to sell or lease the site with the benefit of the existing permit to interested parties.

The Group has invested almost £1m per annum on the Facility which has consistently under-performed the returns required by the Group. While performance has been improving, in particular during the last quarter, it is forecast to lose £0.5m in 2018. The site, the 2018 loss and the costs of closure, estimated to be £0.6m, will therefore be treated as a discontinued activity for the 2018 Preliminary Results.

FYDec18E rev £76m and PBT £10.8n, PE c.7x.

 

Ariana Resources (AAU.L) 1.52p £15.9m

The exploration and development company with gold mining operations in Turkey, announces an update on resource development activities at its wholly-owned Kizilcukur Gold Project .

1,000m diamond drilling programme due to commence imminently at Kizilcukur.

Drilling to be focused on the planned Zeki Pit area, with the aim of improving the classification of JORC resources to the Measured and Indicated categories.

Kizilcukur vein system demonstrates potential to extend across an area of 2.3km x 0.3km, much of which remains undrilled.

Optimal trucking route to the Kiziltepe plant has been determined and these transport costs will be reflected in an internal feasibility study.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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