Small Cap Feast

Small Cap Feast – 05 April 2017

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 966

Total number of AIM Companies trading: 941*
* As at 04 April 2017

Set Menu NEX Growth:

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

Total number of NEX Growth Market Companies trading: 81*
* As at 04 April 2017

Set Menu Standard List:

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

Total number of Standard List Companies trading: *
* As at 04 April 2017

Dish of the Day:

Integumen—First day of dealings for the personal health care company developing and commercialising technology and products for the human integumentary system.  Market cap of £8.25m at 5p.

SkinBiotherapeuticsFirst day of dealings from a life science company focused on skin health. Market cap of £10.7m at 9p.


Off the Menu:

Livanova has left the Standard List but remains on NASDAQ.

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?

EJF Investments— Publication of prospectus from the closed-ended investment company investing in assets benefitting from regulatory and structural change in the financial services sector. To join Specialist Fund Segment of the Main Market

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.

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

Alpha FX Group— Schedule 1  update from the foreign exchange provider focused on managing exchange rate risk for UK corporates that trade internationally.  Raising £30m.  Expected market cap £64.2m  and admission 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

Brave Bison Group (BBSN.L) 5.12p £6.43m

The independent digital media and social video broadcaster, today announced the launch of Rebel FC, a new football super-team founded by YouTube star Callum Airey, better known as Calfreezy, and developed in partnership with Brave Bison. Launching across all key social media platforms, new venture Rebel FC is part sports digital media enterprise, and part football team. Content from influencer football teams is one of the fastest growing entertainment sectors on YouTube, as proven by Slash Football, Brave Bison’s popular multi-platform football network. Slash Football represents Eltham SF FC whose matches are viewed more than 500,000 times a week. FYDec17E £8.8m rev and break even at PBT.


Abzena (ABZA.L) 37.5p £51.69m

The life sciences group providing services and technologies to enable the development and manufacture of biopharmaceutical products, announced its intention to undertake a placing to raise approximately £25 million at 33p to expand further its service offering, capacity and capabilities. A bookbuild is underway. Conditional on shareholder approval. Use of proceeds includes: Upgrading and growing its US based biomanufacturing facilities and capabilities;   Investment in its existing biology, chemistry and biomanufacturing services in the UK and US; and Investment in the Group’s sales and business development functions. FYMAr17E £19.1m rev and £9.08m pre-tax loss.


Venn Life Sciences* (VENN.L) 16.63p £10.02m

The growing Contract Research Organisation (CRO) providing drug development, clinical trial management and resourcing solutions to pharmaceutical, biotechnology and medical device clients, announces the IPO of its formerly 41.51% owned associate Integumen, which has been admitted to AIM today. Venn has  contributed £400k to the £2.25m gross fundraising and CEO Tony Richardson will be non-exec Chairman of Integumen.  “We are excited about the independent future of Integumen as a separately listed entity and the value this could bring for shareholders. We also look forward to a productive trading relationship where Venn is well placed to handle the clinical, registration and other technical requirements of Integumen’s expanding product and technology portfolio.”


Styles & Wood Group (STY.L) 425p £36.93m

FYDec16 trading update. The integrated property services and project delivery expert, anticipates delivering strong underlying profit and margin performance in 2016 with adjusted profit before tax in line with Board expectations. Following a review of full year performance ahead of the Group’s 2016 results, the Board expects Group reported revenues to be approximately 9% below that for FY 2015 due to deferral of some work streams into 2017. 2017 has begun strongly with the Group’s Order Book at week 10 for FY 2017 35% ahead of the prior year strengthened, in part, by positive performance through the recent acquisitions of Keysource and GDM Group. There are no forecasts in the market.


Learning Technologies (LTG.L) 45.5p £248m

FYDec16 results from the specialist in learning technologies. Revenue +42% to £28.3m. Recurring revs 27% from 19%. Adjusted EBITDA +77% to £7.7m. Statutory loss before tax of £1.2 million after accounting for acquisition related deferred consideration as deemed remuneration.
Proposed dividend for the full year of 0.21 p +40%. The Group has enjoyed a strong start to 2017 and is trading in line with management’s expectations, and significantly ahead of last year.  FYDec17E £49.6m rev and £19m PBT. 28x PE.


Bushveld Minerals (BMN.L) 7.8p £58.14m

The diversified mineral development company with projects in Southern Africa has signed a MoU  between its wholly-owned subsidiary, Lemur Holdings Limited and Sinohydro Corporation Limited. The MoU gives both companies exclusive rights to work with each other on the development of an initial 60 MW independent power producer coal power plant and associated 200 kilometre transmission line in southern Madagascar. It is anticipated that the coal fuel for the power station will be provided from Lemur’s coal mining permit area in Madagascar.


Castleton technology (CTP.L) 64.5p £50.77m

The software and managed services provider to the public and not-for-profit sectors, updated on trading for the year ended 31 March 2017 ahead of the announcement of its full year results. The Company is pleased to announce that revenue and profitability for the year are in line with market expectations. Operating cash generation in the period was significantly better than market expectations, facilitating a continued reduction in the Company’s net debt. FYMar17E £21.1m and £3.6m PBT.  15.7xPE


Scholium Group (SCHO.L) 37p £5.03m

Trading update from the specialist in rare books, works on paper and fine art. H2 sales up 80% over H1 albeit at lower margins ‘in part due to a strong performance by Scholium Trading where we have seen success in the sale of some major items.’ Expects H2 to be approximately breakeven. Board Changes: Simon Southwood to step down as FD. Former FD of Noble Investments Peter Floyd joining as part-time FD. Roddy Newlands, formerly Managing Director of Bloomsbury Auctions, has agreed to join the team at Shapero Rare Books as Head of English Literature. FYMar17E £7.5m rev and £0.2m PBT.


Dart Group (DTG.L) 530p £785.65m

Trading update from the Leisure Travel and Distribution & Logistics group. The Group continues to develop and build its businesses. The Board expects Group underlying profit before taxation  for the year ended 31 March 2017 to be ahead of current market expectations, as a result of lower than anticipated winter losses. Looking ahead to the year ending 31 March 2018, forward bookings in the Leisure Travel business for summer 2017 are satisfactory. Although early in the year the Board expects to meet FYMar18 market expectations for PBT. FYMar18E £2.16bn rev and £70mPBT. 13.3x PE.


Real Good Food (RGD.L) 27.25p £19.23m

Real Good Food and Tywyn based Brighter Foods announce a new partnership to build on the success for the Wales based food manufacturing company, with Robin Williams remaining as CEO. Real Good Food plc has acquired an 84.33 per cent interest in Brighter Foods for total consideration of up to £9 million, on a cash and debt free basis. The consideration will be satisfied from the Group’s existing debt facilities. Brighter foods reported £2.3m PBT for FYMar16. The acquisition is expected to be immediately earnings enhancing to the Group.  Brighter Foods creates and manufactures snack bars for the healthy snacking market. FYMar17E rev £118.5m and £2.5m PBT.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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