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AIM Breakfasts

AIM BREAKFAST – 19 June 2018

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 935

Total number of AIM Companies trading: 878*
* As at 15 June 2018

Dish of the Day:

No Joiners Today

Off the Menu:

Servoca has left AIM. An earlier statement questioned whether the listing was in the best interests of the Company.

Set Menu ISDX Growth:

Total number of ISDX Growth Market Companies (Incl Susp): 85*

Total number of ISDX Growth Market Companies trading: 83*
* As at 15 June 2018

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

NEX Exchange

GoTech Group– AIM shell moving to NEX. the Company’s Investment Strategy will be to initially effectively become a UK, Canadian and Australian-focused medicinal cannabis and related products’ index tracker and investor. Due 25 Jun.

Sovereign Mines of Africa PLC  to be renamed The Barkby Group PLC after the acquisition of Turf to Table Ltd will join the NEX Exchange on 26 June 2018 after raising £547k at 9p with market cap of £3.42m


RA International is a leading provider of services to remote locations in Africa and the Middle East looking to join AIM raising £18.8m and 56p, market cap of £97.2m. Expected 29 June

Cake Box Holdings—franchise retailer of cakes with a growing store base across the UK looking to join AIM, Offer tbc, expected late June

Mind Gym. Behavioural science business that uses scalable proprietary products to deliver human capital and business improvement solutions to large corporations. Offer TBA. Due 28 June

Anexo -specialist integrated credit hire and legal services group. Offer raising £25m at 100p, market cap £110m. Due 20 June.

i-nexus—develops and provides strategy execution software to assist global enterprises in effective execution of their strategic plans and initiatives looking to jon AIM. Offer TBC, expected 19 June

Yellow Cake will use its expertise to generate value through the ownership of physical U3O8 (Uranium) together with a range of activities and opportunities connected with owning physical U3O8. Acquiring supply contract for up to $170m. Offer TBA.

Tekmar— technology provider of protection systems for subsea cable, umbilical and flexible pipes and offshore engineering services—Offshore wind farms and Oil & Gas. Revenue of £21.9m and Adjusted EBITDA of £4.9m. £61.8m raised at 130p. Mkt cap c.£65m.  Due 20 June.

Knights Group— UK regional legal and professional services businesses. FYApr18 rev  £34.9m and adjusted operating profit was £6.8m excluding Turner Parkinson (acquiring on IPO).  Offer TBA, expected 29 June.

TransGlobe Energy Corporation—an independent international upstream oil and gas company with headquarters in Calgary, Canada is looking to join AIM. No Capital to be raised, market cap of £131m. Expected 29 June

Strongbow Exploration (TSX:SBW) intends to dual list on AIM.  Holds rights to the South Crofty underground tin mine, a former producing tin mine located in the towns of Pool and Camborne, Cornwall . The project is estimated to require the Company to raise £25 million over the next 18 months to progress to a production decision. Offer TBS. Due June.

Main Market (Premium)

ASA International— “one of the world’s largest and most profitable international microfinance institutions, which aims to enhance financial inclusion among low-income populations throughout Asia and Africa in a socially responsible manner”.  Secondary sell down. No primary. Due July. Offer TBA

Ashoka India Equity Investment Trust—Target raise £100m. India  focussed high conviction, long-only IT. Due mid July.

Utilico Global Income—  new actively managed income investment trust raising up to £100m. Due 22 June.

Amigo Holdings—The pioneer of guarantor loans now lending c. £470m per annum. Secondary Sell down. Pricing TBA

Main Market (Standard)

Argo Blockchain. UK-based provider of cryptocurrency mining services. Looking to raise £20m. Offer TBA. Its main operations went live on 11 June 2018. Offer TBA.

Main Market (Specialist Funds)

Tritax EuroBox raising up to £300m.  “Will provide an opportunity for investors to gain exposure to a portfolio of well located Continental European logistics real estate assets”. Due 9 July.


Breakfast Buffet

PowerHouse Energy (PHE.L) 0.53p £8.2m

“The UK technology company pioneering clean energy production from waste plastic and end-of-life tyres, together with the University of Chester, announces a milestone development as its demonstration energy generation plant powers the Energy Centre at University of Chester’s Thornton Science Park microgrid for the first time.

This is the first practical application of this leading-edge technology of taking waste plastic and converting it to clean electrical energy through PHE’s proprietary G3-UHt Distributed Modular Gasification (DMG©) process.”

“Connection to the microgrid is a meaningful step in the business development strategy for the DMG©technology leading towards the production of mainstream commercial waste to hydrogen generation units.”


Rockhopper Exploration (RKH.L) 34.9p £159.6m

Egypt update.

Year to date average daily production from the Abu Sennan concession has been maintained at approximately 4,000 boepd gross (approximately 880 boepd net to Rockhopper).  An active programme has been agreed for 2018 including the drilling of one exploration well (“Prospect S”), two development wells and a water injection programme targeting the Al Jahraa field.  Drilling on the Abu Sennan concession is expected to last for approximately six months with total capital expenditure, net to Rockhopper’s 22% interest, of approximately US$3 million.

Commitment well Raya-1X was spudded on 17 June 2018 targeting the Nukhul Formation reservoir.   Rockhopper continues to experience an improving payment situation in Egypt.


Slingsby (SLNG.L) 75p £0.75m

AGM Statement from one of the market leaders in the distribution of industrial and commercial equipment.  In the Chairman’s Statement accompanying our annual results for the year ended 31 December 2017, it was reported that Group sales were 6% lower in the three months to 31 March 2018 on the corresponding period in 2017. The Group did face strong comparatives in 2017 due to several large orders delivered in that period. Group sales in the five months to 31 May 2018 are 1% lower than in the prior year following stronger than prior year sales performances in April and May 2018.

Disappointing levels of order intake across the Group so far during June 2018 lead the Directors to remain cautious regarding the outlook for the results for the six months to 30 June 2018.

We could see no forecasts.


Strategic Minerals (SML.L) 1.65p £22.7m

Update on the gold, nickel and Rare Earth Element exploration at Central Australian Rare Earths’ Mt Weld tenements, and the Hanns Camp JV Project in Western Australia, south-east of Laverton.  A 65 hole 3,863m aircore drilling programme has been completed at the Hanns Camp and Mt Weld Projects during the quarter.

Partial gold assays have been received. Preliminary results to date have highlighted some zones of broad low-level gold anomalism within the weathered profile. These will be fully assessed to understand their significance upon receipt of all final assays.

Ultramafic lithologies were intersected over a number of areas within the Mt Weld Project area. Dr Martin Gole will be engaged to assess their significance and prospectivity for potential nickel sulphide mineralisation.


Gateley (GTLY.L) 174p £188m

“The national commercial law and complementary professional services group, is pleased to announce, in accordance with the acquisition agreement of Gateley Hamer (formerly Hamer Associates Limited), that a total earn out consideration of £470,317 has been paid.  The earn out consideration is split equally between cash and shares. “

“”We are pleased with the contribution made by Gateley Hamer.  Increased cross-selling of services between traditional Gateley and Hamer clients and expansion of the specialist team, including establishing a new presence in our London office, positions Gateley Hamer well to generate increased revenue and profit in the current financial year.”

FYApr 19E pe C.15x and yield >4%.


Footasylum (FOOT.L) 95.75p £100m

FYFeb18 results from the UK-based fashion retailer focusing on branded footwear and apparel.

Revenue up 33% to £194.8m, (FY17: £147.0m) with strong growth across all channels and product categories.   Online sales up 41%, now accounting for 30% of total revenue (FY17: 29%).

Adjusted EBITDA up 12% to £12.5m (FY17: £11.2m).

Adjusted profit before tax up 4% to £8.4m (FY17: £8.1m). Cash balances increased to £11.4m.

Despite caution over consumer sentiment the Board is confident that continued investment in digital and in our stores will allow the Company to deliver strong revenue growth for the full year in line with market expectations.

FYFeb19E rev £213.6m and PBT £8.47m.


Frontier IP (FIPP.L) 80.5p £30.8m

Taken a 24% stake in Cambridge Material Testing Solutions, a business established to support the work of Dr James Dean, an expert in the mechanics and deformation of materials.

The Company is developing software and hardware to measure material characteristics in critical metal components more swiftly, cost effectively, and accurately than other systems. Among other potential benefits is mobile and remote testing on site, and the ability to assess complex components and joints.

The technology has a very wide range of applications in several sectors, including in the aerospace, nuclear, and oil and gas industries where material degradation and component life assessment of high value assets is critically important.”


Ubisense (UBI.L) 66.5p £48.6m

The specialist “in enterprise location intelligence solutions, is pleased to announce a new contract win for its SmartSpace division in North America. Initial revenues under the contract of more than £4m are expected to be recognised in 2018 with a framework agreement for similar sized follow-on orders expected in 2019. The customer is a provider of military training solutions, currently fulfilling a contract with a founding NATO member.

Ubisense’s technology will improve military training effectiveness and efficiency by providing a real-time, 3D view of everything within the training scenario”.

We could see no forecasts.


Origin Enterprises (OGN.L) €5.72 €718m

9 mth trading update to Apr 2018 from the Agri-Services Group.

Robust Q3 against a backdrop of prolonged winter weather conditions resulting in a delay to normal spring growth and crop maintenance activity.   Reflecting the later timing of seasonal demand there has been a positive start to the fourth quarter which is expected to account for a greater proportion of full year revenue and profitability

Digital services enablement progressing well.

Pillaert-Mekoson, the Belgium-based fertiliser and nutrition business acquired in January 2018, performing in line with expectation

FY guidance in adjusted diluted EPS of between 47.5 and 48.5 cent.

Separately announced today agreement to acquire interests in two Brazil-based agri-service businesses.


Castleton Technology (CTP.L) 82.75p £65m

The  software and managed services provider to the public and not-for-profit sectors, is pleased to announce that it has exercised its option to acquire an exclusive, perpetual and assignable licence in relation to the platform upon which Castleton’s modelling solution, Castleton Strategic Modelling, is based. The consideration for Acquisition is £1.6 million, of which £1.1 million is to be satisfied  in shares.

FYMar19E PE c.15x.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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