Small Cap Feast
Small Cap Feast – 10th April 2017
Dish of the Day:
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Off the Menu:
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What’s Cooking in the IPO Kitchen?
Eddie Stobart Logistics— Schedule 1. Admission expected 25 April but capital raising details TBC.
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. Admission expected in May.
Franchise Brands—Schedule 1 detailing £28m reverse takeover of Metro Rod. Admission expected 11 April.
K3 Capital Group—Intention to float from the Group of business and Company sales specialists across business transfer, business brokerage and corporate finance. Raising £17.8m at 95p. Expected mkt cap £40.1m. Admission due 11 April.
Tufton Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.
Coinsilium (NEX:COIN) 2.125p £2m
The accelerator that finances and manages the development of early-stage blockchain technology companies, announced a Memorandum of Understanding to enter into a strategic alliance with Oraclize a London-based Blockchain Technology development company providing infrastructure layers for Smart Contracts via its Oracle solution. The Alliance will leverage the parties’ complementary skill sets in order to jointly develop and build a Smart Contract System (SCS) for the next generation of blockchain-powered applications, now being referred to as ‘Blockchain 2.0’, as well as develop commissioned, customised commercial applications for third parties.
Castleton Technologies (CTP.L) 69p £54.31m
The software and managed services provider to the public and not-for-profit sectors, has secured two multi-year contracts extending the Group’s contract base and level of recurring revenue across both its Managed Services and Software Solutions divisions. The first is a seven year contract with North Hertfordshire Homes with a total contract value (TCV) of £2.6m for the provision of a fully managed hosted desktop service. The second is a three year contract with a community regeneration and housebuilding Company for Castleton’s scheduling software product, Impact. The contract is on an annually recurring subscription basis with a TCV of £0.8m over the three year term. FY Mar17E £21.1m revs and pre-tax profit £3.6m. 16.8x PE.
Taptica International (TAP.L) 298p £186.33m
The global end-to-end mobile advertising platform for advertising agencies and brands, announced that it has been ranked No. 8 in the Universal Index of the latest AppsFlyer Performance Index, which is based on performance in H2 2016. The AppsFlyer Performance Index is the industry standard for benchmarking performance of top media sources in mobile advertising. The Universal Index is the ultimate ranking: cross-region, cross-platform and cross-category. In the non-gaming category of the AppsFlyer Performance Index, Taptica reached No. 4 on the global iOS ranking and No. 5 on Android having improved 21 spots compared with the H1 2016 index. This included reaching the No. 1 spot on app retention on iOS globally and No. 3 on global app retention on Android. FYDec17E rev £125.6m, PBT £20.71m PE 13x.
Atlantis Resources (ARL.L) 84p £66.67m
Meygen update: The specialist in the tidal power generation sector, announces that the AR1500 turbine is currently being monitored to assess the effects of an unplanned grid outage. The outage was caused by a third party and was unrelated to the turbine itself. This follows a sustained period of autonomous operation of the turbine at full output, and a successful automated shut down procedure on the occurrence of the grid fault. It is currently expected that the AR1500 will be retrieved at the next opportunity for a full systems inspection before undergoing the contractual performance testing regime. This reflects the approach adopted for the AHH systems, which are currently undergoing upgrades at Nigg Energy Park prior to planned redeployment in May.
Collagen Solutions (COS.L) 5p £16.2m
The developer and manufacturer of medical grade collagen components for use in regenerative medicine, medical devices and in-vitro diagnostics, presented a poster at the Society for Biomaterials Annual Meeting in Minneapolis, in the category “Active Wound Dressings for Advanced Wound Care”, highlighting new data related to a wound healing project from their fibrillar collagen development programme. COS presented a poster titled ‘Evaluation of Fibroblast Behaviour on a Collagen-Based Spray Adhesive’, which expands on the Company’s investigation into the potential for a fibrillar collagen-based spray that protects autologous cells during delivery and promotes cellular adhesion to a wound site.
Frontier Smart (FST.L) 86p £34.76m
The pioneer in technologies for Digital Radio and Smart Audio devices, announces the launch of Siena, its smallest ever module for DAB+ radios. The Siena module measures 21mm x 21mm and is a low power, cost-optimised solution designed for both entry-level price point DAB+ radios, and high end consumer audio devices which offer DAB radio as one of several functions. Siena is based on Frontier’s new Kino 4-Lite silicon, a single integrated chip, which combines a multi-band RF tuner, digital baseband, and application processor. Using surface mount technology, the module can be fixed directly to a DAB radio system board without the need to include a connector. Siena began mass production in February. We could see no market forecasts.
Hague and London Oil(HNL.L) 12.13p £2.93m
Hague and London Oil PLC is announced that it has agreed the conditional acquisition of significant non-operated natural gas production assets in the Dutch North Sea from Tullow Netherlands Holding Coöperatief B.A. based on an enterprise value of €4,752,675, the net effect of which is that the Seller shall receive an estimated amount of €9,752,429 on Completion and contingent payments of up to €20,000,000 payable between 1 January 2019 and 1 January 2021. This is classed as a Reverse Takeover. HNL is currently engaged in discussions with potential finance providers to agree the terms of funding for the completion payment pursuant to the terms of the Acquisition, whilst minimising dilution to Shareholders.
First Property Group (FPO.L) 55p £63.8m
The property fund manager and investor announced that its trading and profit before tax for the year to 31 March 2017, prior to the profit on sale of the Romanian property announced on 28 March, are expected to be in line with market expectations. Funds under management at the year-end amounted to £475m (2016: £353m), of which some £313m (65%) were client funds, an increase of 60% from the prior year. FY MAr17E rev of £21.9m and PBT of £9.2m. PE 9.8x, yield 2.8%.
EMIS Group (EMIS.L) 889p £558.86m
The UK leader in connected healthcare software and services, today announces that Andy Thorburn will join the Company as Chief Executive Officer following the prior announcement of the intention of Chris Spencer, current CEO, to retire from the Board during 2017. Andy has an excellent track record of achievement in his previous roles, both in the UK and overseas. He has recently returned to the UK after 4 years working for Digicel, latterly as the Group COO of the Caribbean and South Pacific based communications and entertainment provider. In this role (from 2014 to 2016), Andy was responsible for driving significant growth in revenues and profitability, both organically and via M&A.
Bacanora Minerals (BCN.L) 83p £92.13m
The lithium exploration and development Company focused on building an international lithium group, has entered into a strategic partnership with “Hanwa”, a leading Japan-based global trading Company and one of the larger traders of battery chemicals in the Asian region. The Agreement is comprised of both an initial 10% equity investment in Bacanora and an Off-take Agreement for up to 100% of the battery grade lithium carbonate (Li2CO3) produced at the Sonora Lithium Project. The Company is targeting to produce 17.5k tonnes of Li2CO3 per annum, commencing in 2019 rising to 35k after 2 years.
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