AIM Breakfasts

AIM BREAKFAST – 04 April 2017

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 965

Total number of AIM Companies trading: 940*
* As at 03 April 2017

Dish of the Day:

No AIM Joiners Today

Off the Menu:

No AIM Leavers today

Set Menu ISDX Growth:

Total number of ISDX Growth Market Companies (Incl Susp): 84*

Total number of ISDX Growth Market Companies trading: 81*
* As at 03 April 2017

Dish of the Day:

No NEX Growth Market Joiners Today

Off the Menu:

No NEX Growth Market Leavers Today

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

Fitbug Holdings* (FITB.L) 0.12p £2.12m

The digital wellness provider for corporate organisations, announces that it is changing its trading name to Kin Wellness, following its  repositioning of the business from the consumer retail space, mainly focused on sales of activity trackers, to a SaaS corporate digital wellness solutions provider. This change of trading name takes effect as of today. The Plc name is also subject to change to Kin Group Plc contingent on shareholder approval. The Directors believe that the word Kin signifies interconnectivity of people and their communities and colleagues; conveying brand values of trust, empathy, personal, human, friendliness and inclusivity, which better reflects the new corporate wellness business model.  The rebranding to Kin Wellness is an opportunity for the Company to expand and strengthen its brand value, and say farewell to its consumer brand legacy.


Shield Therapeutics (STX.L) 167.5p £181.3m

FYDec16 results from the specialty pharmaceutical Company focused on secondary care.  IPO completed in February 2016 raising £32.5m with potential £17.5m from warrants.  First commercial revenues of £304,000 recorded .  Net loss for FY2016 of £15.0 million. Marketing authorisation achieved across the EU for Feraccru with first sales recorded in the UK and Germany.   AEGIS-H2H and AEGIS-CKD Phase 3 studies progressing well with data anticipated towards the end of 2017 and positive data expected to facilitate broader commercialisation in Europe and NDA filing in the USA.  Targeting sales by 2020 of £20-25m for Feraccru, less than previously guided/ £100k in Q1 2017. Joanne Estell joins as CFO (Most recently CFO of Stadium Group). FYDec17E rev of £2.95m and £19.55m pre-tax loss.


TP Group (TPG.L) 8.25p £34.85m

FY Dec 16 results from the specialist services and engineering group. Revenue up 4% to £21.2m (2015: £20.4m).  Growth in defence equipment sales and strong second half performance across the Group. Operating losses reduced by £2.0m to £0.3m (2015: £2.3m). Ongoing improvements in manufacturing efficiency and better control of legacy contracts. Adjusted EBITDA* up to £1.1m (2015: £0.0m). Net cash up 31% to £9.2m (2015: £7.0m). “During the year, we explored several M&A opportunities and completed the acquisition of ALS Technologies and Flexible Software Solutions in February 2017, which provide us with significant additional services capability and immediate additional revenue and profit contribution. “The Board looks forward with confidence to the years ahead, and to generating significant value for our shareholders.” FYDec17E rev £28.8m, PBT of £1.1m.


Circle Holdings (CIRC.L) 29.5p £69.69m

The Group has entered into agreements with affiliates of Medical Properties Trust Inc., a listed US-based real estate investment trust (NYSE: MPW), for the financing and development of Circle’s next state-of-the-art hospital in Birmingham. Circle will sell its long-term lease on the Birmingham plot to an affiliate of MPT for £2.7 million and MPT will develop a 39-bed, 6,500 sqm2 acute care facility to be operated by Circle, with scope to expand to a six-theatre hospital.  Construction of “Circle Birmingham” is expected to commence within four weeks, with practical completion scheduled for Q4 2018.  Circle expects to commence treating patients at Circle Birmingham towards the end of 2018 / early 2019. The total development costs for the facility are anticipated to be approx. £32.3m (inc. VAT). 


Hydrogen Group (HYDG.L) 35p £8.38m

FYDec16 results from  the global specialist recruitment group. Full year Net Fee Income+ was 8.8% lower, at £17.7m (2015: £19.4m) with Energy declining by £1.6m (EMEA decline of £1.5m and APAC decline of £0.1m).  Nonetheless profitability improved with adjusted PBT of  £0.8m vs £0.2m. Cash of £2m. “2016 was a solid performance given the challenges faced from the continued decline in the Energy market and the UK’s decision to leave the EU holding back activity in the UK. The business now has a firm foundation, the Energy market is showing early signs of stabilisation and we remain focused on building a growing, profitable business.”  There are no market forecasts.


Empyrean Energy (EME .L) 3.88p £9.29m

The oil and gas company, is has entered into a sale and purchase agreement  to conditionally acquire up to a 20% stake in West Natuna Exploration Ltd (“WNEL”) from Conrad Petroleum Pte Ltd. This represents a Participating Interest in the highly prospective Duyung Production Sharing Contract in Indonesia. Following completion of the Acquisition, Conrad Petroleum will retain an 80 per cent. shareholding in WNEL and will remain the operator of the Duyung PSC.  The Duyung PSC includes the Mako shallow gas discovery which, according to the ‘LEAP CPR’ is estimated to contain 400 Bcf to 1.3 Tcf of gas in place.


Trakm8 Holdings (TRAK.L) 79p £28.2m

The telematics and data insight provider, has been awarded a contract extension by Young Marmalade, the UK vehicle insurance company. The contract extension covers the provision of T10 Micro hardware and data services supplied to Young Marmalade for their Young Drivers Insurance product, first announced by Trakm8 in February 2015. The contract extension is valued at £1.7m. FYMar17E rev of £27m  and 31m PBT.


Flowtech Fluidpower (FLO.L) 128.13p £65.87m

Q1 Mar17 Trading update from the UK distributor of technical fluid power products with an international presence. ‘Group revenue for the first quarter increased by approximately 31.8%.  This performance was driven by positive momentum in all business divisions, enhanced by the contribution from our new subsidiaries.’  Group gross margin achieved remains in line with market expectations.  Final results also published today to Dec 16. Revenue up 20% to £53.8m. EPS 10.17p from 9.85p. FYDec17E rev of £8.14m and EPS of 14.01p, Div 5.8p.


Satellite Solutions (SSW.L) 8.5p £45.57m

The global communications company specialising in rural and last-mile broadband, has won a c.£0.5m (NOK5.6m) Norwegian Government contract to build a new fixed wireless network in the county of Sør-Trøndelag over the next 15 months. “Norway has significant Government funding available for investment in broadband infrastructure each year and we hope to deliver uber-fast fixed wireless broadband to many more Norwegian customers. In addition, we intend to utilise these fixed wireless networks, as a complement to our satellite technologies, across many other European territories in the future.”  FYNov17E £38.1m rev and £3.4m PBT.


Tlou Energy (TLOU.L) 6.25p £14.82m

The Company focused on delivering power in Botswana and southern Africa through the development of coal bed methane has updated following the earthquake in Botswana. Measuring 6.5 on the Richter Scale the epicentre was in a region close to Tlou’s Lesedi project area. Tlou’s operations team have reported no damage to the field camp, production testing and monitoring operations at this stage.  Tlou will continue to monitor the situation as it unfolds and provide further updates if required.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. Recipients should make their own investment decisions based upon their own financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.

The information contained in this document is based on materials and sources that are believed to be reliable; however, they have not been independently verified and are not guaranteed as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such.

Any and all opinions expressed are current opinions as of the date appearing on this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.

This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, does not constitute “independent investment research” for the purposes of the Financial Conduct Authority rules. The individuals who prepared this document may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, directors, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

In the UK, this document is directed at and is for distribution only to persons who (i) fall within Article 19(5) (persons who have professional experience in matters relating to investments) or Article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) or (ii) are Professional Clients or Eligible Counterparties (as those terms are defined in the rules of the Financial Conduct Authority) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as “relevant persons”). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by persons who would be classified as Retail Clients (as defined by the rules of the Financial Conduct Authority).

Neither this document nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of UK or US securities law, or the law of any such other jurisdictions.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, directors, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

Neither the whole nor any part of this document may be duplicated in any form or by any means. Neither should this document, or any part thereof, be redistributed or disclosed to anyone without the prior consent of Hybridan LLP.
Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX. If you would like to unsubscribe, please email with “unsubscribe me”.