Cenkos: Marlowe Plc -- Positive trading update
Marlowe has confirmed that trading for FY20E was in-line with market expectations. Whilst COVID-19 has meant that the company has been unable to enter certain sites, Marlowe expects this to largely be recovered once normal site access resumes, given the regulatory-driven nature of activities undertaken. The disposal of non-core assets is offset by EBITDA from recent bolt-ons. We reiterate our Buy recommendation.
01 Apr 20
Small Cap Feast
Abal Group (formerly on AIM) to relist as Supply@Me, a growing innovative "inventory monetisation" platform, having originated more than EUR300m of prospective "inventory monetisation deals" in its first six months of operating (to June 2018). In the first half of 2019, an additional prospective EUR300m was originated. As at the date of the publication of the Prospectus and Circular to Abal shareholders, dated 4 March 2020 , EUR972m of prospective contracts have been originated. Raising £2.2m. Due 23 March. The Proof Of Trust has announced its intention to list on the Standard Market. The Blockchain based business, owns patents to a protocol which facilitates dispute resolution based upon smart contract disputes. Transaction details TBC.
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09 Mar 20
Morning View - Feb 3 2020
Wentworth Resources plc - BUY: 2020 production in line with 2019, field performing slightly ahead of expectations | Marlowe plc - BUY: Acquisition of Eurosafe UK Group Limited | Porvair plc - BUY: FY19 Results highlight confidence for FY20E | Eco (Atlantic) Oil & Gas Ltd. - BUY: New CPR revises up both Miocene and Cretaceous prospect sizes | Tritax Big Box REIT plc - SELL: Big Box market approaching peak? | Picton Property Income Limited - BUY: 3Q20 portfolio capital growth ahead of expectation | UK Investment Funds: SQN, Greencoat x2, Tetragon, JLEN, 3i Infra |
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03 Feb 20
Small Cap Morning View - Feb 3 2020
Wentworth Resources plc - BUY: 2020 production in line with 2019, field performing slightly ahead of expectations | Marlowe plc - BUY: Acquisition of Eurosafe UK Group Limited | Picton Property Income Limited - BUY: 3Q20 portfolio capital growth ahead of expectation
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03 Feb 20
Small Cap Feast
Intention to float by Gemfields Group. No Capital Raise. Currently listed on JSE. (GML:JNB) at circa £122m. The Group's key producing assets, the Kagem emerald mine in Zambia (believed to be the world's single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world), are both expected to have long mine-lives with potential for expansion. Also owns the Faberge brand. Due Valentines Day 2020.
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03 Feb 20
Cenkos: Marlowe Plc -- Trading ahead of expectations
Marlowe has produced a strong set of results for H1/20A, with improved cross-selling helping drive an acceleration in organic revenue growth to +6.5% YoY. With H2/20E starting well, we upgrade our FY20E and FY21E forecasts to account for this improved growth trajectory, along with the impact of recent acquisitions. Buy.
03 Dec 19
Small Cap Feast
The Pebble Group, a provider of products, services and technology to the global promotional products industry, announces its intention to seek admission of its shares to trading on the AIM market of the London Stock Exchange, which is expected to take place in early December 2019.The Group delivered revenue of £99.8m in the year ended 31 December 2018.No mention of bottom line and a suggestion that funds raised would provide an exit to private equity shareholders and the repayment of debt. Offer TBA. MJ Hudson Group PLC, the financial services support provider to Alternatives fund managers and asset owners, is planning an AIM IPO. Deal details TBC but expected admission date mid-December.
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03 Dec 19
Cenkos: Marlowe Plc - FY19A results
Marlowe has released a strong set of results for FY19A, reflecting a successful year for the group. Eight acquisitions were completed, which together have significantly strengthened the group's service offering, and which are already yielding synergies. Buy.
18 Jun 19
Small Cap Feast
Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019 Argentex a UK-based forex service provider founded in 2011 by its current management team which operates as a Riskless Principal for nonspeculative and forward foreign exchange as structured financial derivatives is looking to join AIM. Offer TBC, expected 25 June
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18 Jun 19
Cenkos: Marlowe Plc - Strategic acquisition
The prospective acquisition of Clearwater (£11m EV) significantly strengthens Marlowe's core Water division, creating a c£75m revenue leading player in the Water Treatment & Hygiene market. The acquisition and associated restructuring costs will be funded from a £20m capital raise. Relative to existing market forecasts, earnings accretion exceeding 10% is likely by FY21E as synergies are unlocked.
22 May 19
Small Cap Feast
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. SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019. Distribution Finance Capital Holdings plc — specialist lender which builds relationships with manufacturers and then provides working capital solutions up and down their supply chains to drive their growth is looking to join AIM. No raise, secondary offering of £19.8m at 90p, expected market cap of £95.98m. Expected 09 May 2019. Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected 25 June 2019
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29 Apr 19
Small Cap Feast
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. Circassia Pharma (CIR.L) - specialty pharmaceutical company focused on respiratory disease transferring from the Main Market. No funds being raised. Due 4 Feb. Mkt Cap c.£185m. Chaarat Gold Holdings—RTO, the Company intends to acquire Kapan Mining and Processing CJSC, which owns the Shahumyan mediumsized polymetallic mine in Kapan in the Republic of Armenia. No raise, market cap of £110.1m, due early Feb
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31 Jan 19
Cenkos: Marlowe Plc - Transformative high margin acquisition
On 21 December 2018, Marlowe announced the successful conditional placing to part fund the acquisition of William Martin Compliance Solutions and Ivor Roy Limited (William Martin) for an implied Enterprise Value of £30.0m. William Martin provides Marlowe with access to a high-margin technology-enabled audit and consultancy business, adding further to the group's recurring revenue profile. The acquisition is immediately earnings enhancing, and as such we upgrade our full-year FY20E adjusted EBITDA by 20% to £14.0m. Marlowe trades on an FY20E EV/Adj EBITDA of 12.6x. Buy.
07 Jan 19
Cenkos: Marlowe Plc - Outperforming & Undervalued
Marlowe plc (MRL) has announced its interims for FY19E, delivering 57% YoY revenue growth to £56.4m. Both operating segments contributed to the growth, benefitting from good organic and acquisitive-led growth. Owing to the predictability of MRL's cash flows, the company has more-than-sufficient access to capital to further its acquisitive strategy. We assess the market is underappreciating the company's recent strong progress and the significant opportunity available to continue its growth. We upgrade our forecasts to reflect this continued progress and the positive contribution from the recent acquisitions, with our FY20E adjusted EPS increasing 19% to 20.5p. MRL trades on a CY20E EV/Adj EBITDA of 13.6x, offering investors significant value for this high-quality, fast-growing business. We reiterate our Buy recommendation.
04 Dec 18
Small Cap Feast
Admission is being sought as a result of the proposed RTO of Cambian Group plc following completion of the acquisition by CareTech a leading provider of specialist social care services, supporting adults and children with a wide range of complex needs. No raise, market cap TBC expected 19 October. PetroTal (TAL.TO) - The exploration and production company focused on oil assets in Peru is seeking a secondary AIM quoting before the end of 2018. Path Investments— First acquisition of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m raise. Due early Oct Green Man Gaming—pure play e-commerce and technology company in the digital video games industry. revenue CAGR growth of 26.7% in the last three years to £47.5m. Due Mid October 2018. EBITDA Profitable. Offer TBA Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months.
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04 Oct 18
Cenkos: Marlowe Plc - Firepower: Capital Raise
Marlowe plc has announced a Placing to raise approximately £20m. It is understood through management's well-communicated growth strategy that the new capital is intended for acquisitive purposes. By focusing on niche, complex markets with high barriers to entry and supported by regulatory frameworks, Marlowe can capitalise on consolidating fragmented industries and delivery double-digit growth to its shareholders. With an already impressive M&A track record, investors are clearly confident in management's ability to continue allocating capital effectively. We reiterate our Buy recommendation.
13 Jul 18
Cenkos: Marlowe Plc - Outperforming Expectations
Marlowe plc announced its FY18A results, which outperformed our expectations. Through building a platform on which to add bolt-on acquisitions, the group delivered 72% YoY revenue growth. Management continues to execute on the strategy of organic and acquisitive growth, cross-selling and operational efficiencies through scale and utilisation. We upgrade our FY19 forecasts, release new FY20 estimates, and reiterate our Buy recommendation for this critical-maintenance service company, which has built a platform for continued growth.
26 Jun 18
2017 AIM IPO Review
2017 was an outstanding year for stock markets, perhaps somewhat unexpectedly given the levels of pessimism about the state of the world a year ago. But such views turned out to be well off the mark, as rising corporate earnings and economic growth pushed major global indices to all-time highs. While the UK small cap indices were unable to scale new peaks in 2017, the mood of general investor bullishness did not elude them, with annual gains of well over 20%. This was reflected in a solid year of IPO activity on London’s junior market, with over £2bn of new money raised, up 51% on the previous year.
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25 Jan 18
Small Cap Breakfast
CIP Merchant Capital—Closed ended investment Company. Sector focus oil & gas, healthcare, pharma, and real estate. Raising £55m. Due late Dec | Eqtec—Company with access to a proprietary advanced gasification technology used in industrial size power plants to convert waste into synthetic gas to generate electricity. Raising £1.6m. Mkt Cap £8.7m. Due late Dec. | Volex VLX.L—The global provider of cable assemblies is proposing to move from the main market to AIM on 19 January. £75m market cap. FYMar18E rev £241.5m and £7.19m PBT. | OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m.
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21 Dec 17
Small Cap Breakfast
AfriTin Mining—Demerger from Bushveld Minerals (BMN.L). Offer TBA. Due 6 Nov. The Uis Tin project (Namibia) is considered the flagship tin asset within the portfolio, as this was once the largest open cast tine mine of its kind in the world . Novacyt S.A.—Sch1 from the international diagnostics group, generating revenues from the sale of clinical products used in oncology, microbiology, haematology and serology testing. Offer to raise £8.8m at 59.38p with a value of £22.4m. Expected 01 Nov. Footasylum Ltd—UK-based fashion retailer focusing on the branded footwear and apparel markets announced its intention to seek admission to AIM. Expected value between £130m and £150m. Due Nov 2017. Central Asia Metals (CAML) -RTO of Lynx Resources. Anticipated market capitalisation at Admission: £404.8m. Raising £113m at 230p. Acquiring the SASA zinc-lead mine in Macedonia from Solway Industries. Due 15 Dec. OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m. Orogen plc, to be renamed Sosandar plc on Admission. Sosandar is an online womenswear brand specifically targeted at a generation of women who have graduated from younger online and high street brands, and are looking for affordable clothing with a premium, trend-led aesthetic. Offer to raise £5.3m with market cap of £16.1m, expected 2 November 2017. OG Graphite, brownfield development-stage graphite company focused on the reactivation of its wholly-owned Kearney natural flake graphite mine and mill located 280 km north of Toronto, Canada. Offer TBA, expected late October .
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26 Oct 17
Small Cap Breaskfast
Novacyt S.A.—Sch1 from the international diagnostics group, generating revenues from the sale of clinical products used in oncology, microbiology, haematology and serology testing. Offer to raise £8.8m at 59.38p with a value of £22.4m. Expected 01 Nov. Footasylum Ltd—UK-based fashion retailer focusing on the branded footwear and apparel markets announced its intention to seek admission to AIM. Expected value between £130m and £150m. Due Nov 2017. Totally (TLY) - Sch 1 for £11m RTO of Vocare, a provider of integrated urgent care services to the NHS throughout the UK. £76.8 million rev in the year ended 31 March 2017. Totally to address Care Quality Commission concerns. Due 24 Oct. Central Asia Metals (CAML) -RTO of Lynx Resources. Anticipated market capitalisation at Admission: £404.8m. Raising £113m at 230p. Acquiring the SASA zinc-lead mine in Macedonia from Solway Industries. Due 15 Dec. OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m. Orogen plc, to be renamed Sosandar plc on Admission. Sosander is an online womenswear brand specifically targeted at a generation of women who have graduated from younger online and high street brands, and are looking for affordable clothing with a premium, trend-led aesthetic. Offer to raise £5.3m with market cap of £16.1m, expected 2 November 2017 OG Graphite, brownfield development-stage graphite company focused on the reactivation of its wholly-owned Kearney natural flake graphite mine and mill located 280 km north of Toronto, Canada. Offer TBA, expected late October . ContourGlobal LP— contracted wholesale power generation businesses, with 69 thermal and renewable power generation assets in Europe, Latin America and Africa. In the year ended 31 December 2016 it generated $905.2 million of combined revenue and $440.4 million of Adjusted EBITDA. Raising c.$400m. Expected November. TI Fluid Systems—Maybe second time lucky? Pulled last October. global manufacturer of automotive fluid storage, carrying and delivery systems seeking to raise €425m to reduce financial leverage (to approximately 2.0x net debt to Adjusted EBITDA by the end of FY 2017). Possible partial sale by Bain. Revenue for FY 2016 was €3.3 billion and Adjusted EBIT was €362.1 million M7 Multi-Let REIT—Intends to raise up to £300m at 100p. Aims to acquire and hold a portfolio of UK regional light industrial and regional office assets diversified by geography, asset type and tenants that is expected to generate stable income returns and, where appropriate, offer the potential to leverage and enhance returns through active asset management initiatives. Due 13 Nov. Bakkavor Group - Provider of fresh prepared food intends to float in November. FY 16 Revenue: £1,763.6 million FY 16 Adjusted EBITDA: £146.4 million (13.7% CAGR FY 14-FY 16). Part vendor sale and primary raise of c. £100m. Price TBA. Russia’s En+, owned by Russian aluminium tycoon Oleg Deripaska, has assets in metals and energy, including hydropower. reported to be seeking dual London and Moscow listing raising $1.5bn TMF Group , which provides tax, admin and legal support services, reported to be seeking London IPO to raise c. £200m. People’s Investment Trust—Objective of sustainable wealth creation. Also to list on the Social Stock Exchange. Targeting £125m raise on 17 Oct. No performance fees or executive bonuses in order to focus on long term rather than short term performance.
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20 Oct 17
Small Cap Breakfast
Arix Bioscience — Intention to float on the main market from the global healthcare and life science company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management Eco (Atlantic) Oil & Gas—Schedule One Update. Now expects admission ‘early February’. Ramsdens Holdings –Schedule One from the financial services provider and retailer, operating in the core business segments of foreign currency exchange, pawnbroking loans, precious metals buying and selling and retailing of second hand and new jewellery. Expected admission to AIM 15 Feb raising circa £15.6m. Expected mkt cap £26.5m.
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03 Feb 17