Small Cap Feast
Small Cap Feast – 03 April 2019
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What’s Cooking in the IPO Kitchen?
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.
Main Market (Premium)
US Solar Fund, a newly-established investment company focused on investing in solar power assets mainly in the US, looking to raise $250m at $1. Expected 16 April
Network International Holdings—leading enabler of digital commerce across the Middle East and Africa region, operating across over 50 highly under penetrated payment markets that contain a total population of 1.5 bn. 2018 rev $298m, underlying EBITDA $152m. Due April. No new funds to be raised. Secondary sell down. Targeting 25% of at least 25%.
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 TBC
Time Out Group (TMO.L) 95p £125.9m
Time Out Group, the global media and entertainment business, announced that it has entered into a management agreement with Emaar Malls, the shopping malls and retail business majority-owned by Emaar Properties PJSC, to open a new Time Out Market in one of Dubai’s most visited attractions.
This is Time Out Market’s third management agreement, enabling further global expansion of this successful food and cultural market.
Time Out Market Dubai will be located in Souk Al Bahar, an Arabic-style retail, entertainment and dining destination right at the heart of Downtown Dubai. With a unique waterfront position on Burj Lake, next to The Dubai Mall and the iconic Burj Khalifa, this is one of the region’s prime destinations, attracting millions of visitors each year.
At Time Out Market Dubai, visitors will get to explore and enjoy food from 16 of Dubai’s top chefs and celebrated restaurateurs, three lounges and cultural experiences – it will be a carefully curated mix representing the very best the city has to offer. With the opening expected at the end of 2020, Time Out Market Dubai will occupy 30,000 sq ft, accommodating around 670 seats.
The Time Out brand has a strong presence in Dubai, having launched in 2001 together with ITP Media Group as one of Time Out Group’s international franchises.
Urban Exposure (UEX.L) 67p £105.4m
Urban Exposure and its subsidiaries, a specialist residential development financier and asset manager, announced its audited Group financial results for the period from 10 April 2018 to 31 Dec 2018.
Funding of £525m was committed across 16 loans during the Period.
The Group closed its first managed account, a partnership agreement with Kohlberg Kravis Roberts (KKR) with exclusivity, and with a value of £165m (of which the Group has committed to invest up to £15m).
The Group closed its first discretionary senior secure debt facility with UBS into the KKR partnership with a value of up to £165m, increasing the lending capacity of the partnership to £330m.
Overall third-party AUM raised for the first eight months of operation totalled £371m.
Income for the Period was £3.9m
Operating loss for the Period before exceptional items was £1.1m and the total loss for the Period was £1.7m, including exceptional costs of £0.9m and share-based expenses of £0.5m
Operating costs before exceptional items were £5m, representing 0.81% of total committed loans
Dividend per share: 2.5p
proposed final dividend of 1.67p per share (interim dividend of 0.83p per share)
Basic loss per share: (1.18)p
Adjusted loss per share*: (0.58)p
Net asset value: £151m
Net asset value per share: 95p
Aura Energy (AURA.L) 0.65p £6.5m
Aura Energy announced that after an extensive period of time it has been granted exploration licences for its gold, base and battery metal tenements in Mauritania.
The tenements of 175km2 cover two under-explored mineralised greenstone belts in Mauritania (See Fig 2). The areas lie along strike from Kinross’ giant +20 Moz Tasiast Gold Mine and from Algold’s Tijirit gold deposits. Aura has long maintained that these tenements, with the single large Tasiast gold mine along strike, and strong base and battery metal results, represent some of the best under-explored greenstone belt targets in the world.
These highly prospective gold, base and battery metal areas represent an excellent opportunity in lightly explored Archean greenstone belts and will leverage Aura’s extensive operating experience in this part of the world. The project is favourably located 200 km from Aura’s Nouakchott office, 60 km from the coast, and can be managed efficiently within the company’s existing management resources without distraction from Aura’s core uranium focus.
Chariot Oil & Gas (CHAR.L) 2.8p £8.2m
Chariot Oil & Gas, the Atlantic margins focused oil and gas company, announced that its wholly owned subsidiary, Chariot Oil & Gas Holdings (Morocco) Limited, has been awarded a 75% interest and operatorship of the Lixus Offshore Licence, Morocco, in partnership with the Office National des Hydrocarbures et des Mines (“ONHYM”) which holds a 25% carried interest.
Lixus Offshore Licence, 30km north of Chariot’s existing Moroccan acreage, contains:
Anchois-1 well gas discovery – 307 Bcf of 2C contingent resources offering near-term development opportunity
Deeper potential not penetrated by the Anchois-1 well of 116 Bcf 2U prospective resource has also been identified
Material tie-back opportunities from low risk, exploration prospects offer an attractive upside of 527 Bcf of 2U prospective resources in satellite prospects adjacent to the Anchois discovery
Additional on-block exploration running room in licence
World-class commercial contract terms with high gas prices in a developing market with growing energy demand offers a potentially high-value project
Minimal initial licence commitment funded from current cash
Future development anticipated to deliver strong returns and significant cash flow
Gattaca plc (GATC.L) 130p £37.36m
Group continuing NFI grew 2%
Continued underlying NFI to EBIT conversion at 22%, compared to 19% in prior period
UK Engineering NFI up 4% on prior year
Maritime +25%; Engineering Technology +11% and Infrastructure +7%
Growth in both contract and permanent
UK Technology NFI down 13% on prior year, but restructuring and focus on profitability delivered a higher contribution than prior period
IT NFI down 8%,
Telecoms NFI down 38%
International NFI up 15% on prior year
Continued growth in the Americas (+6%)
Strong year on year growth in our restructured offices China and South Africa both showing double digit increases
Underlying continuing EPS up +12% at 16.0p (2018 H1 14.3p) and underlying Profit After Tax up 8%
Strong cash flow performance, resulting in net debt reducing to £27.8m (2018 year end £40.9m; 2018 H1 £36.2m)
Improvement plan launched
Sirius Real Estate (SRE.L) 65.1p £1,322.4m
Sirius Real Estate, the leading operator of branded business parks providing conventional space and flexible workspace in Germany, has completed the sale of its Bremen Dötlinger Strasse Business Park, to a private investor, for €6.3m, in line with the book value at 30 Sept 2018 and reflecting an EPRA net yield of 5.1%. The property was notarised for sale on the 23 Oct 2018.
The property comprises 10,273 sq m of mixed-use space, which is 43% vacant and requires significant capital expenditure to attract new tenants.
This final disposal completes the Company’s recent programme of sales of a number of non-core assets in the portfolio, the others being Bremen Hag Business Park, Bremen Brinkmann, a non-income producing piece of land and a vacant residential building. Together these have generated proceeds of €27.4m.
Brave Bison (BBSN.L) 2.02p £15.14m
Brave Bison, the social video company, announced the appointment of Kate Burns as CEO of the Company, with immediate effect. Kate joined the board of Brave Bison in July 2018, as a NED.
Kate Burns succeeds Claire Hungate, who has left the Company. The Board of Brave Bison would like to thank Claire for her valuable contribution to the Company.
Kate has a wealth of experience within the digital content and publishing industry and is currently a Venture Partner at Hambro Perks, an investment firm. Kate also held a range of roles at Google during her 6 years at the company and was their first employee outside the United States, rising to Regional Director for the UK, Ireland and Benelux. Before joining Hambro Perks, Kate was CEO of AOL Europe, following which she joined BuzzFeed as European General Manager.
AdEPT (ADT.L) 330p £78.2m
AdEPT, one of the UK’s leading independent providers of managed services for IT, unified communications, connectivity and voice solutions, announced a trading update for the year ended 31 March 2019, ahead of the audited final results which are expected to be announced in early July 2019.
The Board reported a year of continued further progress and delivery of our organic and acquisitive growth strategy. We have seen substantial growth across the AdEPT Group, alongside important acquisitions which have extended our geographic reach and our product range.
Anticipated increase in revenues and underlying EBITDA in line with consensus market expectations of a 13% rise year-on-year;
Net senior debt of £27.2m was £0.8m lower than market consensus expectations;
Board to recommend an increased final dividend of 4.9p per share (2018: final 4.5p); and
Anticipated total dividends proposed for the year of 9.8p per share represents an increase of 12% over the prior period.
StatPro Group (SOG.L) 114.5p £73.09m
StatPro Group, the provider of cloud-based portfolio analytics and asset pricing services for the global asset management industry, has signed a contract extension with a major Fund Administrator for StatPro Revolution worth $1.2m over the next three years as the Fund Administrator has secured a new client requiring StatPro’s capabilities.
Fund Administrators are an increasingly important distribution channel for StatPro, as the Asset Management market looks to outsource key data management functions.
StatPro Revolution is uniquely adapted to help Fund Administrators provide portfolio analytics to asset managers, combining a superior service and lower cost of ownership due to its cloud-based technology.
StatPro expects to see further growth from major Fund Administrators during the course of the year.
TP Group (TPG.L) 6.25p £47.4m
TP Group, the specialist services and engineering group, announced that the Ministry of Defence (MoD) has exercised its option to extend the contract to provide a further year of specialist support to the Land Environment Tactical Communication and Information Systems (LE TacCIS) Programme, worth c. £1.4m.
This award is for the supply of skills in Systems Engineering, Project and Programme Management and other specialist activities to support the delivery of this £3.2 billion MoD programme. It builds upon the previous work that TP Group’s Consulting and Programme Services (CaPS) business has undertaken with Army HQ on this contract, first announced in October 2016.
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