Small Cap Feast

Small Cap Feast – 03 April 2017

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 966

Total number of AIM Companies trading: 941*
* As at 31 March 2017

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 85*

Total number of NEX Growth Market Companies trading: 82*
* As at 31 March 2017

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): *

Total number of Standard List Companies trading: *
* As at 31 March 2017

Dish of the Day:

No AIM Joiners Today

Off the Menu:

Netplay TV PLC (NPT.L) has left AIM after being acquired

Dish of the Day:

No NEX Growth Market Joiners Today

Off the Menu:

Menhaden Capital has delisted from NEX but retains LSE premium listing.

What’s Cooking in the IPO Kitchen?

ADES International Holding— Intends to join the Standard List in May raising up to $170m plus a vendor sale.  Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa.

Integumen— Intention to Float from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.25m at 5p. Expected market cap £8.25m. Admission expected 5 April.

Franchise Brands—Schedule 1 detailing £28m reverse takeover of Metro Rod. Admission expected 11 April.

Alpha FX Group— Schedule 1 from the foreign exchange provider focused on managing exchange rate risk for UK corporates that trade internationally.  Fundraise TBC. Admission expected 7 April.

K3 Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC.

Tufton Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.


Breakfast Buffet

InnovaDerma* (IDP.L) 133.5p £15.81m

The UK developer of life sciences, beauty and personal care products today provided an update on trading and announces it has secured new e-tailer distribution deals. The revenue growth achieved in H1 has significantly accelerated in the second half of FY2017.  Trading in Q3 has been very robust with January and March achieving the highest-ever monthly revenues and subsequently delivering the highest ever quarterly revenues. Skinny Tan performance ’outstanding’ in Superdrug and Direct to Consumer platform driving further growth.  e-tailer  agreements:- Feelunique, one of Europe’s largest online beauty retailers and, Europe’s No.1 retailer for beauty which attracts half a million unique visitors a month. Our forecasts are currently looking for £6.95m rev and £0.7m PBT for FYJun17E.


Fitbug Holdings* (FITB.L) 0.13p £2.16m

FYDec16 results from the digital wellness technology provider for corporate organisations. Losses down 42% to £3.5m. Revenue of £1.08m vs £1.26m but B2B now 82% of sales. Balance sheet transformed through debt conversion and placings in July 2016 and January 2017. “We have started 2017 with a strong pipeline of quality prospects. We have also embarked on a direct-to-corporate sales programme. This will allow Fitbug to focus on creating a greater number of good quality business leads both in the short and longer term, and not rely only on our strategic partners.” “The Board remains mindful, as always, that the road to conversion of many of these potential customers from first contact to sales is long. As a result the Group’s needs for further development capital, particularly to expand its bandwidth to deal with the many potential opportunities which it is currently experiencing, continue as the sales process continues to develop.”


Frenkel Topping (FEN.L) 60.25p £46.39m

The specialist independent financial advisor and asset manager focused on asset protection for vulnerable clients, announces that its Board is reviewing strategic options to accelerate the enhancement in Frenkel Topping’s competitive positioning and maximise shareholder value, including a potential sale of the Group meaning that the Company has now entered an offer period.  “The Board recognises that a strategic partner has the capability to maximise the Group’s potential, to the benefit of our clients, shareholders and employees.” FYDec17E rev £8.54m and £3.54m PBT.


Strat Aero (AERO.L) 0.11p £2.06m

FYDec16 trading update from the  international aerospace company focused on the rapidly emerging Unmanned Aerial Vehicle (“UAV”) sector. Significant increase in full year revenue to approximately US$810,000 (2015: US$ 433k)   primarily due to the full year impact of the acquisition of Geocurve. FY 2016 financial performance significantly affected by the Aero Kinetics acquisition and reported litigation with an anticipated loss before and after taxation of approximately US$3.5 million. Q1 2017 placing of $1.23m. We have started 2017 with a rationalised business model, providing exposure to the exceptional growth potential of UAVs, and the ability to materially improve financial performance.  There are no market forecasts.


Filta Group Holdings (FLTA.L) 121p £32.61m

Maiden FYDec16 results from the provider of Cooking Oil Filtration & Fryer Management Services. Revenue increased 27% to £10.1m. Recurring Revenue Fryer Management segment grew 38% to £6.2m. Underlying Operating Profit plus change in deferred revenue up 31% to £2.1m. £4.4m of cash at year end to fund strategic growth initiatives. ‘We have had a positive start to the year and your Board is confident of another year of strong growth’. Has seen good growth in number of franchisees. FYDec17E £11.3m rev and £2.3m PBT.


SigmaRoc (SRC.L) 38.37p £39.37m

The Construction materials business, has incorporated a new subsidiary, SigmaGsy  dedicated to bulk shipping activities around the British Isles and northern Europe. Expects in excess of £200,000 per year to operational EBITDA, starting from Q2 of this year. SigmaGsy will supplement the bulk shipping requirements of cement majors and other partners in the region with a specialised offering and support the shipping needs of SigmaRoc’s wholly owned subsidiary Ronez Limited. The new subsidiary will require an initial investment of £550,000 for the acquisition of highly specific equipment including a dedicated bulk cement carrier. 27.4x PE for FY17E


CityFibre Infrastructure (CITY.L) 47.5p £126.2m

“CityFibre, notes the recent speculation relating to its future expansion plans. The Company has previously announced that the expansion of its fibre footprint is the core of its long-term strategy. The Company consistently reviews, with its advisors, all of its opportunities and how to finance them in the most efficient way. This is particularly relevant in light of the recent Ofcom review and DCMS announcement which may give rise to a number of exciting opportunities.” FYDec17E  £23.45m rev and £8.3m pre-tax loss.


Brave Bison (BBSN.L) 1.13p £6.43m

Following a competitive tender process, Shell International has hired Brave Bison, the independent digital media and social video broadcaster, to evolve its YouTube strategy and channel management. Brave Bison is the first company Shell has hired to work directly on the strategic positioning and management of its YouTube content.  FYDec17E revenue £8.8m and break-even bottom line.


Avacta Group (AVCT.L) 61p £41.72m

The developer of Affimer® biotherapeutics and research reagents, reported that the first major immunogenicity study of Affimer technology using human ex-vivo samples has concluded successfully with a range of Affimer proteins shown to have low immunogenicity comparable with the marketed antibody Avastin®. “This excellent data significantly de-risks the Affimer technology as a therapeutic platform addressing the multi-billion dollar biotherapeutics market and is a major milestone and value inflection point for the Company.” HY results today showed rev +20% to £1.3m ad op loss of £3.9m. Cash of £16.1m.


ANGLE (AGL.L) 44.5p £33.29m

The specialist medtech company, is announced that the University of Athens and Attikon University Hospital, Greece are today presenting highly encouraging results from their work with ANGLE’s Parsortix system in head and neck squamous cell carcinomas at the American Association for Cancer Research conference (AACR) 2017, in Washington DC.  The results show that in a study of 40 cancer patients, the Parsortix system demonstrated higher sensitivity and greater purity in harvesting Circulating Tumour Cells for analysis than leading alternative approaches  The work suggested that   it might be possible to assess gene expression of head and neck cancers using a Parsortix non-invasive liquid biopsy.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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