Small Cap Breakfast
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AIM:
Total number of AIM Companies (Incl Susp):
938*
Total number of AIM Companies trading:
889*
*as at close of business 02 July 2018
Standard List** of Main Market:
Total number of Standard List Companies
(Incl Susp):
136*
Total number of Standard List Companies trading:
123*
*as at close of business 02 July 2018
NEX Growth Market:
Total number of NEX Growth Market Companies (Incl Susp):
87*
Total number of NEX Growth Market Companies trading:
84*
*as at close of business 02 July 2018
*A corporate client of Hybridan LLP
** Standard Listing as defined by Hybridan LLP to be a business with strictly operational activity
Dish of the day
Monreal PLC—AIM cash shell moving to NEX by taking advantage of opportunities to invest in the technology, media, and telecom (TMT) sector. Mkt cap £0.4m.
Chesterfield Resources (LON:CHF) Main Standard) - RTO. Mkt cap £4.6m. Raised £2m at 7.5p. Acquisition of a non ferrous metals exploration in Cyprus.
Off the menu
Indigo Holdings has left NEX Exchange
What’s cooking in the IPO kitchen?
NEX Exchange
Ananda Developments— Company has been established to invest in the developing market for medicinal or therapeutic Cannabis derivatives, or related products. Raising £750k at 0.45p with market cap of £1.3m. Due 04 July
AIM
Nucleus Financial—independent wrap platform provider . FYDec17 revs £40.36m and PBT of £5.1m. Offer TBA. Due late July.
Kropz PLC-Intention to float by the emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa and exploration assets in West Africa
Immotion Group - aims to become the market leader in "out of home" Immersive Entertainment Experiences. Offer TBA. Due 12 July
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. Due Early July.
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.
Main Market (Specialist Funds)
Hipgnosis Songs Fund— offering pure-play exposure to Songs and associated musical intellectual property rights . Targeting £200m raise. Due 11 July
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
Ascent Resources (LON:AST) 0.83p £18.7m
Ops update. The Gas Sales Agreement, under which untreated gas is sold to INA in Croatia, has been extended to 2 May 2019. As a consequence of the extension, the required bank guarantee has reduced and the amount which Ascent is obliged to hold on restricted deposit has been reduced from EUR400k to EUR200k. Well Pg-11A was brought back into production on 7 June, the well was in continuous production until 18 June, during this period the well produced a total of 119,741 cubic metres of gas. Total production for June was 1,027,939 cubic metres (36,180 MCF) compared to 1,066,795 cubic metres (37,673 MCF) for May 2018. Average daily production for June was 1.2 MMscfd which was in line with the production rate in May. Total revenue to Ascent for June from gas sales expected to be around EUR0.19m, with an additional EUR15,000 to EUR20,000 from the sale of condensate. “The Environment Agency has requested some additional information in relation to our permit to workover Pg-10 and Pg-11A. We are preparing our responses also for submission at the end of this week.”
Big Sofa (LON:BST) 10.63p £8.8m
AGM statement from the fast-growing international video analytics provider to consumer brands and market research agencies.
“We have continued to build upon the positive momentum achieved in 2017, which was a year of significant strategic progress for Big Sofa. Most notable, was the transformation of our client base through the securing of global partnerships with multinationals such as Ipsos and P&G.” “In the first half of 2018, our order book of work commissioned reached nearly £1m, which represents a 91% increase on the same period last year. This has been broadly driven by an increase in the average project size, with these larger projects starting to give more visibility over future revenues. While many of these projects are pilots, the size of the pilots provide an indication as to the potential full scale commercial opportunities for Big Sofa in the medium term.
We could see no forecasts.
Marshall Motor Holdings (LON:MMH) 171p £129.6m
HY June 18 trading update.
Despite a challenging UK new vehicle market during H1, the Group has delivered a positive performance. Underlying profit before tax from continuing operations is expected to be marginally ahead of the record performance reported in the corresponding period last year. This has been driven by robust trading disciplines, tight control of discretionary costs and the positive impact of the previously announced closure of six loss making sites.
The Group's balance sheet is strong, underpinned by a freehold/long leasehold property portfolio of c£120m. We expect to have a small net debt position at 30 June 2018, in line with our internal forecasts. During the Period, the Group exercised its option to extend its £120m RCF for a further twelve months until 3 June 2021, to provide us with increased financial flexibility to take advantage of opportunities if and when they arise.
Remains cautious on H2. However ‘the Board's current outlook for the full year is now expected to be at the upper end of its expectations.’ FYDec18E PE c.7x and yield c.4%.
Eurasia (LON:EUA) 0.49p £9.11m
The PGM (Platinum Group Metals) and Gold producing company, operating the West Kytlim Mine, the second largest alluvial PGM mine globally, is pleased to announce approval of the Monchetundra mine permit application by the Ministry of Economic Development (MOED).
The mine permit application, for the Monchetundra project (80% owned 2 million-ounce PGM reserve plus resource) is now awaiting sign off at the Ministry of Natural Resources, before progressing to the office of Prime Minister Dmitry Medvedev for final approval. The application process remains on track to be completed by late summer. A discovery certificate, confirming title for the contained reserves and resources at the Monchetundra project was issued in July of 2017.
Angus Energy (LON:ANGS) 7.24p £22.2m
The “UK on-shore, conventional oil and gas production and development company, provided results from its supplementary assessment programme at the Lidsey Oil Field. Having consent from all its regulators, the Company performed a Geochemical Analysis of oil produced from the Kimmeridge (Clay) Layers in the Lidsey-X1 Well.
In order to conduct the assessment, production from the Great Oolite formation was temporarily isolated and the Kimmeridge exposed to allow fluid samples to be collected. The Kimmeridge formation immediately produced light oil, samples which were sent for third-party analysis. The Geochemical Analysis was performed by the same organization that previously provided third-party geological evaluations of Horse Hill and Brockham.
The multiple samples tested demonstrated a composite of oil from the Oxfordian and Kimmeridge layers exhibiting a mixed range of source maturities. The lowest quality crude in the range possessed light, 38.5 -degree API oil in the natural fracture system.”
Urban Exposure (LON:UEX) 104p £171m
The “specialist residential development finance firm and asset manager, announced an update on trading.
Following the successful placing to raise gross proceeds of £150m for balance sheet lending and admission to AIM on 9 May 2018, the Company is pleased to announce that since Admission, it has successfully closed its first 3 loans with a total value of £104m. The loans cover development projects in Nottingham, Cardiff and Greenwich and have values of £13.65m, £18.525m and £71.8m respectively.
The Company is working on a number of other potential loans which it expects to close shortly.
FYDec18E PE c.10x and yield c.4%.
IMImobile (IMI) 274.8p £170.6m
“The global cloud communications software and solutions provider, announced it has agreed to acquire Impact Mobile Inc., Canada's leading provider of end-to-end mobile engagement solutions from Dealnet Capital Corporation, a Canadian listed consumer finance company .”
Initial cash consideration of C$25m (£14.4m) payable in full on completion, and deferred cash consideration of C$2.5m (£1.4m) payable in full six months after completion. The Acquisition will be funded from the Company's existing cash resources and a committed £10m term loan facility from Silicon Valley Bank.
The Acquisition is expected to be immediately significantly earnings enhancing with a positive impact on Group earnings for the year ending 31 March 2019.
In the year ended 31 Dec 2017, Impact Mobile reported a turnover of C$10.6m (£6.1m), gross profit of C$7.6m (£4.4m) and adjusted EBITDA of C$4m (£2.3m).
FYMar18E rev £122.4m, PBT £11.8m.
KR1 (LON:KR1) 10.25p £11.9m
“KR1 announced that the Company has made an investment into the Dfinity Project. The Company has invested £0.59m for a total of 191,681.85 Dfinity Network Tokens ("DFN"). Dfinity aims to be a blockchain supercomputer designed to host the next generation of software.” “The Company has also invested $0.1m into the Flying Carpet Project which is managed by Air Network Ltd. The Company has invested in return for a yet-to-be-determined amount of discounted Nitrogen tokens ("NTN") and the Company will also receive a separate allocation of tokens, after the public sale has concluded, in return for advisory services. Air Network is an Ethereum based communication protocol for IoT devices such as drones and automated cars.” also invested $50,000 for 10% of Connext Inc. Connext enables Ethereum projects to implement low cost, near-instant transactions for their users. KR1 has invested £50,000 for 10 per cent. of Blocksmith Ltd— ew offering and aims be a blockchain system development agency.
APC Technology (LON:APC) 6.62p £8.94m
“The design, specification and distributor of specialist technologies and electronic components, has launched a new value-added component sourcing and processing service through its recent acquisition, First Byte Micro Ltd ("FBM"). Acquired in January 2018, FBM has integrated successfully into the enlarged Group, expanded its offering and has delivered £1m bookings in its first six months of ownership which is well in excess of its acquired run rate of £1.5m per annum.
Since its acquisition by APC on 11 Jan 2018, the franchised and independent component sourcing company has been rebranded as APC Locator. The new value-added component service, delivered through APC Locator, enables additional processes such as tape and reeling, laser reballing and alloy conversion for military use, to be performed on components supplied by APC. This provides APC customers with a more finished electronic component from a single vendor.”
Fy Aug 18E rev £17.5m, PBT £0.68m.
Utilitywise (LON:UTW) 33.3p £26.14m
The “ independent utility cost management consultancy, announces a new collaboration with Vodafone and Dell EMC to launch an innovative Internet of Things (IoT) energy and building management platform to transform the way businesses use energy and run their sites. The platform allows businesses to evaluate all of their energy outputs, such as lighting, heating, and ventilation, from multiple sites and buildings via a single, integrated hub. With instant access and full data visibility, the platform will make it easier than ever before, for facility and property managers to assess where energy is being wasted. They can then react accordingly to save their businesses money. The platform's software, developed by Utilitywise, can also eliminate the need for expensive data software licences and maintenance agreements that are regularly part of existing building management systems.”
FYJul18E rev £90m and PBT £8m.