Small Cap Feast

Small Cap Feast – 15 July 2020

Dish of the Day:

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Off the Menu:

China New Energy has left AIM for the Hong Kong Stock Exchange

 

What’s Cooking in the IPO Kitchen?

AEX Gold (TSXV:AEV) is intending to admit its shares to AIM alongside a £45m placing. The Company, led by CEO Eldur Ólafsson, has established the largest land package of gold assets in Greenland with a current portfolio of licences covering 3,356 square kilometres, in the two known gold belts in Southern Greenland, the Nanortalik and Tartoq gold belts. Nalunaq is a high-grade gold asset with an updated Inferred Mineral Resource covering 422,770 tonnes at 18.5 grams per tonne of gold, or 250,970 ounces of gold, which covers the area in and around the historical mine.  Due July.  Current mkt cap C$66.7m.

 

Breakfast Buffet

Hydrogen Group 28.5p £9.6m (HYDG.L)

The global specialist recruitment group, updated on trading for the six months ended 30 June 2020. “Trading during the period has been significantly impacted by the COVID-19 pandemic. Client demand was adversely impacted in the APAC region from January, this spread rapidly to our EMEA and US business during the latter stages of the first quarter. Although activity levels have broadly stabilised during the second quarter, we have yet to see any meaningful signs of a recovery in demand levels. As a result, net fee income for H1 totalled circa £11.7m (H1 2019: £15.3m).”

“We acted quickly to reduce costs and actively manage the Group’s working capital. These actions, coupled with government support in the form of payment deferral schemes and job protection support programmes across the multiple territories in which the Group operates, have enabled the Group to increase net cash during the period to £6.5m (31 December 2019: £4.5m, and 30 June 2019: £3.4m).

Alongside this, the Group has maintained the critical mass in all our key markets that is required to benefit from a recovery in client demand levels when it arises. “

 

Bezant Resources 0.105p £1.8m (BZT.L)

Further to the proposed acquisition of 100% of Virgo Resources Ltd and its interest in the hope gold copper project in Namibia is pleased to announce its due diligence is progressing as anticipated. Set below is an update of the technical aspects of the Hope Copper-Gold Project in Namibia including historical drilling information which has come to light as part of the Due Diligence Review: 

Highlights of technical review :

  • High-grade Copper-gold Volcanic Massive Sulphide (VMS) project located in the stable, safe and mining friendly jurisdiction of Namibia
  • Project combined Mineral Resource of 10.2Mt @ 1.9% Cu and 0.3g/t Au at a 0.7% Cu cut-off, reported in accordance with the JORC Code (2012)
  • Including the Hope Deposit: 3.09Mt @ 2.53% Cu and 0.84g/t Au at a 0.7% Cu cut-off and Indicated Mineral Resource confidence category, reported in accordance with the JORC Code (2012)

 

Alpha FX Group 750p £300.49m (AFX.L)

 Trading update for the six-month period ended 30 June 2020.

–  Group revenue increased 16% to £18.0m (H1 2019: £15.6m).

–  The Group remains profitable, well capitalised and debt free, with net assets in excess of £80m and c. £37m of own free cash on the balance sheet.

–  Alpha Payment Solutions reported consecutive record revenue quarters in Q1 and Q2.

–  During the period, average revenue per client continued to increase and the Group saw a net increase of 28 clients to 671.

 

Arcontech Group 185p £24.44m (ARC.L)

The provider of products and services for real-time financial market data processing and trading, announced  that profit for the year ended 30 June 2020 is expected to be in line with market expectations. Unaudited net cash at 30 June 2020 amounted to £5.01 million (at 30 June 2019: £4.06 million). The Company has continued to invest in sales and marketing resources and confirms that no staff have been furloughed, and that the Company has not drawn on any publicly available funding or delayed payment of PAYE and VAT.

 

Destiny Pharma 35p £15.35m (DEST.L)

The clinical stage biotechnology company focused on the development of novel, hospital infection prevention treatments that address the global challenge of antimicrobial resistance (AMR), notes the launch of the AMR Action Fund to provide financial resources and technical support to help biotechnology companies bring novel anti-infective drugs to patients. These are needed urgently to fight the worldwide rise in antimicrobial-resistant superbugs.

Over 20 leading pharmaceutical companies have pledged to invest a total of $1 billion in a fund to help bridge innovative candidates in the pipeline through the later stages of drug development and to work with governments to ensure there is a sustainable pipeline of new antibiotics that address AMR

This new pharma-backed fund underlines the urgency for the development of novel safe and effective antimicrobials such as Destiny Pharma’s lead asset, XF-73. XF-73 is currently in a phase 2b clinical study investigating its use in the prevention of post-surgical bacterial infections, including the superbug MRSA.

 

Cambridge Cognition 40.5p £12.6m (COG.L)

The Company which develops and markets digital solutions to assess brain health, is collaborating with 4YouandMe and The Center for International Emergency Medical Services to investigate the utility of wearables and mobile phones to measure stress recovery in frontline healthcare workers in the USA caring for COVID-19 positive patients. This virtual study will take place over 6-12 months with up to 500 participants. The project is charity funded and Cambridge Cognition are supporting the project by providing the digital cognitive assessments.

 

The Mission Group 63.5p £57.8m (TMG.L)

The alternative group for ambitious brands, updates for the six months ended 30 June 2020.

 Key Highlights

  • Following a positive start to 2020 the Group entered the COVID-19 crisis in a position of strength.
  • Robust trading performance in challenging market conditions, ahead of our initial projections at the outset of the pandemic.
  • Proactive and prudent measures taken to conserve cash with net bank debt significantly reduced during the period.
  • Strong Client retention throughout period with teams successfully focused on delivering new, innovative solutions for Clients.
  • Continued to win new Clients and assignments across the Group, in recent weeks securing significant contract with INEOS for delivery in the second half of the year.
  • Diversity of Client portfolio has ensured Group has been at forefront of activity in more robust sectors with strong performances in healthcare and technology.

 

Finsbury Food 61p £79.5m (FIF.L)

The UK speciality bakery manufacturer of cake, bread and morning goods for both the retail and foodservice channels, provides an update on trading for the financial year ended 27 June 2020, prior to entering its close period.

 Trading update

  • Resilient overall performance with revenues of £306.3m
  • Steady monthly improvement during Q4 following significant reduction immediately after lockdown
  • Continued strong cash generation resulting in significant debt reduction with period end net debt of c.£27m
  • Swift action taken by management leaves the Group in a better position to handle continued uncertainty associated with COVID 19
  • Successfully and safely maintained operations throughout lockdown

 

Caspian Sunrise 3.3p£62.13m (CASP.L)

Further to its announcement of 21 January 2020, all the required Kazakh regulatory and local shareholder approvals have now been received and the relevant paperwork has been sent to the UAE to complete the required re-registration of ownership of the Caspian Explorer, following which the acquisition of this asset will complete.

 

Allergy Therapeutics 15p £95.6m (AGY.L)

Trading Update

 –  Strong 2020 performance despite COVID-19 challenge

–  Earnings above market expectations

–  Net revenue of £78.2million representing 6% annual growth

–  Strong cash balance of £37.0 million

–  Phase I Peanut program fully funded from existing resources

–  Licencing deal signed for new oral treatment, ImmunoBON

–  COVID-19 diagnostic facility approved by Spanish authorities

 

Head Chef:

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

*A corporate client of Hybridan LLP

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