Small Cap Feast

Small Cap Feast – 20 July 2020

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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

DXS International* 7p £3.14m (AQSE:DXSP)

FY Apr 20 results from the healthcare information and digital clinical decision support systems provider,

Profit after tax rose nearly five-fold to £428,502, compared to £85,096 in the previous year. 

Operating Profit of £308,423 (2019: Loss £137,228) achieved mainly due to a reduction in overhead for completed projects.

Turnover remained steady at £3,279,787 (2019: £3,346,343) in spite of the unprecedented interruption to business as usual during the last quarter of the financial year. 

New equity of over £1 million raised in February 2020 to be applied to launch and ongoing development of new solutions.

Cash at bank £1,010,645 as of 30 April 2020.

Operational Highlights

DXS’ Point of Care solution re-accredited for the new NHS Digital Framework to receive central NHS funding. 

New Expert Hypertension solution, earmarked for UK and International markets completed and ready for launch.

 

MJ Hudson 49p £83.9m (MJH.L)

MJ Hudson, the international asset management consultancy, updated following the end of its financial year to 30 June 2020

Group underlying revenue grew by 24% to approximately £20.8m in the year to June 2020 (FY2019: £16.7m). This figure includes maiden contributions from acquisitions Spring, AST and most recently Meyler. Over 92% of underlying revenue growth was recurring in nature

Management continues to expect the Group’s profits for FY 2020 to be in line with market expectations.

On an organic basis, underlying revenue grew by 7.4% year on year. This compares with 12.5% organic growth in the first half (against the same period in the prior year), before the impact of the Covid-19 pandemic.

 

Karelian Diamonds 2.85p £1.2m (KDR.L)

The National Land Survey of Finland has granted rights of way over the entire Naviskangas private forest road, together with a side road, giving vehicular access to the Company’s Lahtojoki diamond deposit, the adjacent Lahtojoki South exploration permit area and the surrounding reservation in the Kaavi region of Finland.

The granting of vehicular rights of way will facilitate the Company in its technical assessment of the Lahtojoki diamond deposit over which it has been granted a mining concession.

The two hectare Lahtojoki diamond deposit is located in the Kaavi region of Eastern Finland and lies in the Karelian Craton (Baltic Shield) which extends across north-eastern Russia and northern Finland. The world class Lomonosov and Grib Pipe diamond deposits have been discovered in the Russian sector of the Craton.

 

Lok’n Store 625p £185m (LOK.L)

The self-storage company, announced the agreement of a one-year extension to its existing joint banking facility with Royal Bank of Scotland plc and Lloyds Bank plc. The £75 million five-year revolving credit facility which was executed last year included two extension options, one of which has now been implemented. The facility which was due to expire in April 2024, will now run until April 2025 providing funding for more landmark site acquisitions. 

The £75 million five-year revolving credit facility set the interest rate margin at the London Inter-Bank Offer Rate (LIBOR) plus 1.50%-1.75% based on a loan to value covenant test. This rate is 1.50% currently and the current all in debt cost on £51.2 million drawn is averaging 1.6%-1.7%. The facility also provides for a £25 million accordion uplift to £100 million.

 

Global Petroleum 1.45p £2.9m (GBP.L)

Updated estimate of Prospective Resources for PEL0094 (Block 2011A), offshore Namibia, after interpretation of the 3D seismic data survey recently licensed from the Namibian State Oil Company, NAMCOR, which also holds a carried interest of 17% in the Licence. Global holds a working interest of 78% and is operator. 

A total of 881 million barrels of unrisked gross Prospective Resources (Best Estimate) has been estimated in PEL0094 in two prospects, of which 687 million barrels are net to Global. These have been classified in accordance with the Society of Petroleum Engineers Petroleum Resources Management System (SPE-PRMS), and have been estimated using a probabilistic method. The Prospective Resources are based on the 3D and 2D seismic data and geological information, including analogues, to which Global has access.

As expected, the interpretation of the 3D seismic data has led to increased confidence in the two prospects previously identified, Marula and Welwitschia Deep.

 

Rockfire Resources 1.025p £7.7m (ROCK.L)

Diamond drilling down to 500m depth is now underway at the Company’s 100%-owned Plateau Gold Deposit (“Plateau”), part of the Lighthouse tenement in North Queensland, Australia.

Highlights:

  • Six diamond drill holes are currently planned to test the gold mineralisation down to 500m vertical depth.
  • This is the fourth drilling programme since October 2019, which continues the Company’s aggressive exploration strategy, aimed at discovering a large economic gold deposit at Plateau. 
  • Assay results from the June 2020 reverse circulation drilling programme are still pending. The market will be updated once the results are received from the laboratory. 
  • The six planned deeper holes are expected to be completed over the coming months.

 

Synairgen 133.5p £200m (SNG.L)

Synairgen announces positive results from trial of SNG001 in hospitalised COVID-19 patients

Patients who received SNG001 had a 79% lower risk of developing severe disease compared to placebo  

Patients who received SNG001 were more than twice as likely to recover from COVID-19 as those on placebo

 

Tungsten Corp 39.3p £49.6m (TUNG.L)

The provider of digital financial management products and software solutions, issued a trading update ahead of the announcement on 7 September 2020 of its full-year results for the year ended 30 April 2020.

  • Group revenue grew 2% to £36.8 million; excluding Tungsten Network Finance1 (TNF), revenue grew 3% to £36.3 million
  • 93% of revenue was repeatable and recurring, up from 92% in FY19
  • Net cash of £3.2m compares with £1.0 million reported at the half year.  Positive full year cash generation of £0.4 million driven by strong working capital management
  •     Adjusted EBITDA for FY20 expected to be broadly in line with market guidance
  • New sales billings of £4.0 million were flat to prior year, although the second half run rate accelerated by 35% following our investments to strengthen our sales capabilities

 

Gama Aviation 38p £24m (GMAA.L)

Gama Aviation, the global business aviation service provider, has been awarded new special mission contracts for air ambulance provision by the Government of Guernsey and by the Government of Jersey. The contracts have an initial term of five years with options to extend by up to five years.

Operating Beechcraft King Air B200 aircraft, the Group will provide H24/365 services between the Channel Islands and UK mainland health services, providing a critical lifeline for the citizens of the islands. Gama Aviation will additionally provide medical teams to provide clinical services for the Guernsey operation.

The award comes shortly after Gama Aviation’s commencement of helicopter emergency services operations in Scotland, augmenting its fixed wing operations for the Scottish Ambulance Service.

 

Tern 9.65p £27.34m (TERN.L)

The investment company specialising in the Internet of Things (“IoT”), announces that it has raised £1.5 million before expenses  at 8.5p.  The funds raised via the Subscription are intended to be used to facilitate a new investment to expand Tern’s portfolio and will also:

  • provide additional working capital generally; and
  • facilitate follow-on investment opportunities in Tern’s principal portfolio companies as appropriate

 

62% year-on-year increase in turnover of principal portfolio companies1 for H1 2020. The Directors view this as an important positive result given the slow down across the economy during this period

 

Head Chef:

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

*A corporate client of Hybridan LLP

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