Small Cap Feast

Small Cap Feast – 10th April 2017

Dish of the Day:

No AIM Joiners Today

Off the Menu:

No AIM Leavers today

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.


Breakfast Buffet

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.


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 any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective 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, such information has not been independently verified and therefore it is not possible to confirm such information 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, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.

The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).

Any and all opinions expressed are current as of the date appearing on this face of 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, 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, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, 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, 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 United Kingdom, 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 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) 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 any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.

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 territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.

Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.

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, 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.

This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.

MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.

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”.