Latest Small Cap Feast

Small Cap Feast

Small Cap Feast – 25 April 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 897

Total number of AIM Companies trading: 826*
* As at 12 April 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 12 April 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 161*

Total number of Standard List Companies trading: 141*
* As at 12 April 2019

Dish of the Day:

Valeura Energy Inc (TSX:VLE, VLU.L ), the upstream natural gas producer focused on appraising and developing an unconventional gas accumulation in the Thrace Basin of Turkey in partnership with Equinor has joined the main market (standard list). No raise, expected market cap £146m.

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?

Main Market

Rustranscom plc— specialised rail freight transportation in Russia and Kazakhstan, announced its potential intention to conduct an IPO of GDRs. The GDRs are expected to be admitted to the Official List of the FCA and to trading on the main market of the LSE. Offering is expected to comprise predominantly primary shares, in the amount of circa $300m.  Postponed in favour of private equity route.

Finablr plc— global platform which provides Cross-Border Payments and Consumer Solutions, Consumer Foreign Exchange Solutions and B2B and Payment Technology Solutions to consumers and businesses in the large and growing payments and foreign exchange market is looking to list on the Main Market plans to raise $200m

Main Market (Standard)

IMC Exploration Group (NEX: IMCP), focused on acquiring and exploring prospecting licence areas which have high potential for natural resource, is looking to admit its shares to the standard list and will withdraw for the NEX Exchange. Expected 11 June 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.

Loungers plc—the operator of 146 café/bar/restaurants across England and Wales under the Lounge and Cosy Club brands, announces its intention to seek admission on AIM, offer to raise £61.6m at 200p with market cap of £185m, expected 29 April 2019.

SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m

Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019.

Distribution Finance Capital Holdings plc — specialist lender which builds relationships with manufacturers and then provides working capital solutions up and down their supply chains to drive their growth is looking to join AIM. No raise, secondary offering of £19.8m at 90p, expected market cap of £95.98m. Expected 09 May 2019.

Breakfast Buffet

Devro (DVO.L) 194.8p £313.2m

AGM Statement from  one of the world’s leading manufacturers of collagen products. Update on year to date trading.

“Trading in the period was in line with the Board’s expectations, with momentum building through the quarter after a slower start to the year.

We continue to see good trading in North America, South East Asia and China, offset by ongoing challenging conditions in Russia, Japan and Latin America. As previously indicated, we expect 2019 revenue growth to be H2 weighted, as it will benefit from the build in sales of Fine Ultra, as well as underlying market growth.

Our cost saving initiatives are on track and we are confident of being able to meet the previously outlined targets.

Devro remains well placed to make good progress during 2019.”

 

Air Partner (AIR.L) 87.2p £46.5m

“The global aviation services group, announced that it has been appointed by Aurigny, the flag carrier airline of the Bailiwick of Guernsey, to manage its operations control centre in Alderney in order to improve efficiency, resilience and customer service.

Air Partner has created a dedicated Aurigny team to run the day-to-day flight operations, which is an extension of its existing 24/7 operations department. In addition to offering greater hours of operation, Air Partner can also tap into its extended workforce for further support if necessary, thereby offering the airline a more resilient service and greater staffing capacity – especially in times of disruption.”

 

Photo-Me (PHTM.L) 88.3p £322.98m

The instant-service equipment group, has acquired 96% of the issued share capital of SEMPA, a company incorporated in France which specialises in commercialised self-service fresh fruit juice equipment. The gross consideration payable for the acquisition is €20.64m, funded by a new debt facility of €20m.

Sempa is the leader in France for the commercialisation of self-service fresh fruit juice equipment. The business operates via a lease model, whereby Sempa sells equipment to customers via lease finance agreements. Sempa’s PBT in 2018 was €3.7m, its net cash position as at 31 Dec 2018 was €7.7m. This acquisition is expected to be earnings enhancing in the financial year ending 30 April 2020 and thereafter, and in the financial year ending 30 April 2020 is expected to contribute revenue of more than €10m and approximately €3.7m PBT.

 

NetScientific (NSCI.L) 8.3p £7.86m

“NetScientific announced that it has accepted the resignation of François Martelet as its CEO. François has resigned to assist the Company in reducing its central costs and to pursue other career opportunities. He will depart on 30 April 2019 in accordance with the terms of his service agreement.

Ian Postlethwaite, currently CFO and Company Secretary of NetScientific, will henceforth combine these roles with that of CEO.”

Commenting on his resignation, François Martelet stated: “Out of the five assets we selected in 2015 I am pleased to report that three have made it to the commercial stage (Vortex Biosciences, ProAxsis Limited and Wanda, Inc.). Glycotest Inc. concluded its Series A financing round with Shanghai Fosun Pharmaceutical Co., Ltd. and PDS Biotechnology Corporation completed its all share merger with Edge Therapeutics.”

 

Mincon (MCON.L) 99p £212.6m

The Irish engineering group specialising in the design, manufacture, sale and servicing of rock drilling tools and associated products, provided an interim trading update for the period from 1 Jan 2019 to date, incorporating the first quarter to 31st March 2019.

Continued improvement in our product sales mix:

Mincon manufactured product sales up 30%

Being organic growth of c. 4% and

Acquisition growth of 26%

Third party product sales down 5%

Resulting in:

Revenue up 24% overall

Profitability slightly behind last year in Q1

 

Sirius Minerals (SXX.L) 21.82p £1,006m

Sirius Minerals has entered into an exclusive 10-year supply and distribution agreement with a leading European agribusiness group, BayWa Agri Supply & Trade B.V., a wholly owned subsidiary of BayWa AG, for the distribution of POLY4 into Europe. BAST intends to actively distribute POLY4 through its Cefetra business, a well-established distributor and trader in Europe active across the agricultural value chain to the farmgate.

BayWa AG is a publicly-listed entity (ETR: BYW6) headquartered in Munich, Germany with revenues of EUR16bn (2018).  The group distributes over 30m tonnes per annum (“Mtpa”) of agricultural goods across Europe including sales of approximately 2.0Mtpa of fertilizers.  Across Europe the group has a strong footprint and agricultural platform with strategically located assets such as warehouses, hubs and ports.  BayWa is also active in developing and managing digital farming platforms to strengthen the ‘One-Stop-Shop’ strategy for farmers.

 

Synectics (SNX.L) 172.5p £35.06m

AGM statement from the specialist in the design, integration, control and management of advanced surveillance technology and networked security systems.

The current financial year has shown a continuation of the trends in Synectics’ markets as described in the Company’s recent Annual Report. The global gaming security and surveillance sector continues to perform strongly, but new business in other sectors has been generally quite subdued.

“In the UK, in particular, since the beginning of March 2019, Synectics has experienced a pattern of order deferrals and, in some cases, customer-led delays in the progress of existing contracts, which we believe is at least partly down to uncertainties related to the Brexit situation. The effect of these recent deferrals and delays is that profits will be substantially more weighted to the second half of this financial year than originally budgeted.” “The overall pipeline of expected new business remains strong and we anticipate being able to announce some important strategic contract wins in the coming months.”

 

Lok’n Store (LOK.L) 489p £143.9m

The “self-storage company, announced the agreement of a new £75m five year revolving credit facility which will replace the existing £50m facility and will provide funding for site acquisitions and their development to support the Group’s ambitious growth plans.

The facility is a combined agreement with Lloyds Bank plc and The Royal Bank of Scotland plcand runs until 2024 and is closely aligned to the terms of the Group’s previous facility.

The facility also provides for a £25m accordion uplift to £100m and runs to 2024 with an extension option for a further two one year extensions. The interest rate is set at the London Inter-Bank Offer Rate (LIBOR) plus a 1.50%-1.75% margin based on a loan to value covenant test.  There are no additional bank financial covenants in the new facility which will provide an increased flexibility to invest in new store development. “

 

KR1 (NEX:KR1) 7.75p £10.6m

The digital asset investment company, has sold its remaining holdings in the OmiseGo project. Overall, OMG has been one of the Company’s most successful investments to date and has enabled KR1 to further support a number of other projects. The Company has disposed of its remaining OMG tokens at an average price of $2.054 per token for a total of $205,851, having initially purchased each at a price of $0.2738.

The Company has also disposed of 25,000 tokens of its holding in the Nash Exchange project. These tokens were bought for $1.00 per NEX token and have been sold at an average price of $2.033 each. The Company retains 25,000 NEX tokens and is expecting a successful exchange launch for the project towards the end of the year.

In line with its strategy to support early stage projects, KR1 will repurpose the funds gained by investing in new projects.

 

Scancell (SCLP.L) 5.35p £19.97m

The developer of novel immunotherapies for the treatment of cancer, announced that it has received all of the UK regulatory, ethical and legal approvals required to initiate the Phase 2 clinical trial to assess the safety and efficacy of SCIB1 in metastatic melanoma patients also receiving the checkpoint inhibitor pembrolizumab (Keytruda). The UK arm of the study is therefore expected to start during the second quarter of this year, as planned.

SCIB1 has completed a Phase 1/2 clinical trial in patients with Stage III/IV malignant melanoma. In this study SCIB1 was shown to have a favourable safety profile with no dose-limiting toxicities and no serious adverse events related to study drug or delivery device. Survival with SCIB1 treatment appears superior to historical survival rates, with 14 of 16 resected patients receiving 2-4 mg doses surviving for more than five years (as reported in Feb 2018).

 

Head Chef:

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

*A corporate client of Hybridan LLP

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