Small Cap Feast

Small Cap Feast – 11th April 2017

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 966

Total number of AIM Companies trading: 942*
* As at 10 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 10 April 2017

Set Menu Standard List:

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

Total number of Standard List Companies trading: *
* As at 10 April 2017

Dish of the Day:

First day of dealings from K3 Capital Group, the business and company sales specialist in the UK

Franchise Brands has completed the RTO of Metro Rod raising £20m. At 67p

Off the Menu:

No AIM Leavers today

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?

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.

Schedule One from Lakehouse – an asset and energy support services group that constructs, improves, maintains and provides services to homes, schools, public and commercial buildings. Admission expected 11 May. Expected market cap £74m.

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

Breakfast Buffet

Fitbug Holdings* (FITB.L) 0.12p £1.99m

The digital wellness provider for corporate organisations, now trading as Kin Wellness, has announced a customer renewal for wellbeing services with a large financial institution.

After a successful first year, the client has renewed its arrangements with the Company’s strategic partner, for the same group of employees as the previous year. This is expected to generate around £70,000 of service revenues for the Group during 2017.

Client confidentiality does not allow for the disclosure of further details at this time.


Defenx (DFX.L) 107p £9.22m

FYDec16 results from the mobile security software solutions company. 5th yr of profitable growth. Revenue +58% to 7.09m. 88% growth in op profits (before transaction costs) to €1.84m. Defenx separately announced acquisition of  bespoke version of BV-Tech’s encrypted voice & messaging software for €2.65m in shares. BV Tech investing 1.15m at 114p bringing holding to 24.8%. Strategic partnership.  “Defenx is on track to launch new products, enter new markets and broaden its management team in 2017. The board of Defenx is confident that the Group will show continued growth in revenue and profit over the coming year in the ever-exciting security software market. I firmly believe that our long-term partnership with BV-Tech, announced today, will generate high quality, recurring revenues in the medium term. “ FY17E PE <5x

Valiant Investments (NEX:VALP) 0.285p £2.8m

Valiant has raised GBP47,750 by way of a placing of 47,750,000 new ordinary shares at a price of 0.1p per share. The monies raised will provide the Company with additional working capital and enable it to further accelerate the development of its 84.7% owned subsidiary, Flamethrower  plc.

Digital Barriers (DGB.L) 27p £44.59m

The specialist provider of visually intelligent solutions to the global surveillance, security and safety markets, has secured a contract for its facial recognition technology with Careem: the leading ride-hailing provider in the Middle East and North Africa. The contract award follows a competitive benchmarking process and is one of a number of framework contracts that were in the final stages of contract negotiation at the time of the Group’s trading update on 24 March.  Once the software has been deployed, the contract will deliver recurring software revenue to the Group up and until the end of calendar year 2018, with an option thereafter to extend.  The smartphone solution will ensure that the actual driver of a given vehicle can be matched in real-time to the authorised and accredited driver of that vehicle.  FYMar17E £33.1m rev, £6m loss.

Zinc Media (ZIN.L) 1.2p £7.44m

The TV and multimedia content producer has appointed award winning executive producer, Roy Ackerman, as Managing Director of Films of Record and Director of International Strategy, TV.  The new appointment is in line with Zinc Media’s strategy of expanding its presence within the US and wider global TV markets. Roy’s latest role was as Managing Director at Pulse Films, where he rapidly rebooted its TV division with a slate of big commissions.  Prior to that he led the transformation of Jamie Oliver’s Fresh One Productions from a celebrity vehicle into a global multi-genre independent,  creating award-winning content in commercials, drama, factual formats and documentaries.


1PM (OPM.L) 58.5p £32.11m

The independent specialist provider of finance facilities to the SME sector has today acquired Bell Finance Limited. Established in 2000, it is a successful, independent, specialist provider of funding for business-critical equipment, primarily “hard” assets comprising plant, machinery and vehicles, for Construction, Recycling and Manufacturing. In addition, Bell provides “Caterham” branded finance for kit cars. The Company is originating approximately £6.0m of new business a year, the majority of which it funds on its own balance sheet, with approximately 15% of deals brokered-on.  Consideration up to £3.4m. For FYNov16 Bell had revenue of £1.7m, PBT  £0.4m. FYMay17E £16.5m rev and £4.3mPBT.


Draper Esprit (GROW.L) 349p £142.2m

FYMar17 trading update from  venture capital firm involved in the creation, funding and development of high-growth digital technology businesses.  The Directors anticipate that the gross primary portfolio value of the investment portfolio will be in excess of £112m (30 September 2016: £106.9m, at Admission £78.7m). Excluding new investments and realisations across the portfolio of companies, the gross portfolio value has increased 41% since Admission and 10% over the six month period since 30 September 2016. Following the acquisition of Elderstreet VCT, the announced £20m VCT and EIS fund raisings are progressing ahead of management expectations. Considering further funding.


Kodal Minerals (KOD.L) 0.32p £17.24m

Update on the 5,000m exploration drilling programme in progress focussed on four priority prospects at the Company’s Bougouni Lithium Project in Southern Mali. Substantial pegmatite intersections achieved at three previously undrilled prospects at Bougouni. All three prospects are currently unconstrained vertically or along strike.  Infill and extension drilling underway at the previously drilled Ngouanala prospect. Following its recent £500,000 investment, proposed off-take partner Suay Chin has substantially completed its due diligence review to support the potential further investment into the Company of up to £4.3m.


Integumen (SKIN.L) 4.13p £6.8m

The personal health care Company developing and commercialising technology and products for the human integumentary system has signed a strategic supply agreement for an initial term of three years with Mono Dent in South Korea for its oral hygiene products, which will establish an additional income stream from this new market. Opening orders have been received for the TS1 professional product. As part of the exclusive agreement, Mono Dent has committed to a sales and marketing strategy for TS1 to penetrate further the South Korean market.  South Korea has approximately 20,000 dental surgeries and is a growing market driven by medical tourism and cosmetic dental surgery.


Immedia Group (IME.L) 33.5p £4.88m

FYDec16 results from the  multi-media content and digital solutions provider to global businesses and organisations. Included significant client wins which will benefit 2017 and substantial acquisition of AVC Media Enterprises Ltd in September 2016; funded solely from the Group’s own cash resources. Integration costs contributed to EBITDA reduction. Revenue £2.6m vs £2.4m. EBITDA loss of £83k. “Since the year end we have already seen the anticipated benefits of the AVC acquisition coming through, both in terms of revenue from its own clients and additional services that can be integrated into the Company’s product and service offering to Immedia’s existing clients, and we expect that to continue and develop over the course of the year.”


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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