Small Cap Feast

Small Cap Feast – 12th April 2017

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 967

Total number of AIM Companies trading: 944*
* As at 11 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 11 April 2017

Set Menu Standard List:

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

Total number of Standard List Companies trading: *
* As at 11 April 2017

Dish of the Day:

No AIM Joiners Today

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.

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

Breakfast Buffet

Pan African Resources(PAF.L) 24.25p £310.9m

The Africa-focused precious metals producer announced a proposed comprehensive funding package for the Elikhulu Tailings Project. $51m placing at 14p. $72m underwritten 7 year debt facility with Rand Merchant Bank. The funding package will be used to fast-track development of the Company’s Elikhulu Tailings Project in South Africa following publication of the Definitive Feasibility Study for the Project, announced on 5 December 2016. Elikhulu is expected to produce approximately 56,000 ounces of gold per year for its first eight years of operations and 45,000 ounces of gold for the remaining five years. Commissioning and first gold of the Project is forecast and expected in the final quarter of the 2018 calendar year.


One Media iP Group (OMIP.L) 2.75p £1.95m

The digital media content provider, which consolidates, exploits and monetises intellectual property rights around music and video announces that further to its announcement of the 20th February 2017 it has reached an amicable resolution to the ongoing Middle District of Tennessee dispute with HHO Licensing Ltd, Henry Hadaway Organisation Ltd and Henry Hadaway personally. The terms of the settlement are confidential. FYOct17E rev £2.3m, PBT £0.32m, EPS 0.36p. Div 0.14p.


Artilium (ARTA.L) 6.88p £21.38m

The provider of innovative telecommunication software and solutions announced the acquisition of the entire issued share capital of Wbase CV a web development agency based in Gent, Belgium for a maximum consideration of 410,000. Wbase specialises in the development of Drupal websites, digital communication and e-commerce platforms. Wbase has built a leading position in the Belgian market with an extensive client list including  Green IT Globe, a growing strategic partner of Artilium. In the year to 30 June 2016, Wbase generated revenues of €165,374, EBITDA of €40,860 and had net assets of €47,317 as at that date. There are no market forecasts.


RhythmOne (RTHM.L) 44.25p £219.08m

FYMar17 Trading Update. Return to full year profitability on an adjusted EBITDA basis; Growth of the Core mobile, video and programmatic product lines; and Accelerated drawdown of Non-Core product lines. Financial and operating performance for the year is expected to be in line with management expectations. Core revenue +28% to $149m. Adjusted EBITDA $1.2m from $10.5m loss.   Cash of $75m. “The fundamental re-structuring of our business that we set in motion over two years ago is now complete. An accelerated return to profitability in each of the last three quarters clearly demonstrates achievement against our stated strategy and goals.”  FYMar18E £205.2m and £8.14m PBT.


Capital for Colleagues (NEX:CFCP) 45p £4.3m

Further to the announcement of 31 March CFCP is raising  up to GBP2.02m at a price of 42p per share in the Open Offer to capitalise on the many attractive investment opportunities that the Directors believe still exist in the EOB (Employee Owned Businesses) sector.


MayAir Group (MAYA.L) 84.5p £35.46m

FYDec16 results from specialist provider of air purification technology. Revenue of $65.6m from $63.6m. EBITDA of $7.2m from $9m. Cash $20.5m.  Significant projects successfully delivered for Huawei Technologies Co. Ltd. and the Chinese State Grid Corporation. Completion of an industrial mega project after the period end resulted in lower FY-2016 industrial sales revenue, however, the industrial mega project will be reflected in the current financial year’s results. “We finish the year pleased with the progress we have made across the business, and are now focused on 2017 as we remain confident that the Group will continue to deliver strong and sustainable long-term growth.” FYDec17E rev £60.52m. PBT £5.41m.


Enteq Upstream (NTQ.L) 22.5p £13.66m

FY Mar 17 trading update from the oilfield services technology and equipment supplier. The Board expects to report full year revenues and underlying EBITDA in-line with its expectations. Enteq has continued to preserve cash, with a balance of $15.3m as at 31 March 2017 compared to $15.1m reported as at 31 March 2016. Market conditions have seen some improvements since the beginning of 2017. The number of drilling rigs operating in the USA has risen from approximately 400 in April 2016, to the current level in excess of 800.  However, global factors continue to cause some instability in the oil price and accordingly the Board’s expectations for capital investment in new drilling equipment remain cautious.   FYMar17Ev rev £2.59m and £0.8m pre-tax loss.


Tricorn Group (TCN.L) 14.25p £4.82m

FYMar17 update form the tube manipulation specialist. Revenue for the year is expected to be slightly ahead of the previous year with a favourable USD translation impact more than offsetting the reduction in reported revenues from the enlarged joint venture in China, which in line with Group policy is now reported on a profit only basis.   The Board now expects adjusted PBT for the Year to be ahead of market expectations.   FY Mar17E rev £17.59m and £0.1m PBT.


Hydrodec Group (HYR.L) 2.8p £20.9m

Q1 2017 update from the cleantech industrial oil re-refining Group. 25% continuing ops revenue growth with volumes down to 7.7m litres from 8.2m litres. Significant increase in margins. Expects positive EBITDA. Q2 has begun positively and revenues and EBITDA are expected to grow further throughout the year – performance at EBITDA level will be determined by the continuing improvement in margin as the price of oil continues to stabilise and overall feedstock availability improves. Continues to monitor working capital position. FYDec17E rev of £24.61 and break even at PBT.


Chaarat Gold (CGH.L) 20p £70.36m

The exploration and development Company with assets in the Kyrgyz Republic, announced an accelerated and successful close of its US$ 15m issue of short term senior secured convertible loan notes convertible at 30p. Maturity September 2018. Financing to advance the Tulkubash Heap Leach project. Bankable Feasibility Study and construction finance package for enlarged project planned to be available by end of Q1 2018.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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