AIM BREAKFAST – 12th October 2016
Set Menu AIM:
Total number of AIM Companies (Incl Susp): 997
Total number of AIM Companies trading: 979*
* As at 11 October 2016
Dish of the Day:
No AIM Primary Today
No AIM Primary Today
Off the Menu:
Secure Trust Bank (STB.L) moving from AIM to the Main Market. Last week saw the delisting of New Europe Property Investments (NEPI.L).
Secure Trust Bank (STB.L) moving from AIM to the Main Market.
Last week saw the delisting of New Europe Property Investments (NEPI.L).
Set Menu ISDX Growth:
Total number of ISDX Growth Market Companies (Incl Susp): *
Total number of ISDX Growth Market Companies trading: *
* As at 11 October 2016
Dish of the Day:
Off the Menu:
What’s Cooking in the IPO Kitchen?
Pure Gym—The kitchen got a little too hot for Pure Gym which has recently pulled its expected listing
Krispy Kreme UK—is understood to have abandoned its planned £200m London flotation in favour of a sale to its US parent
Biffa— Intention to float announcement states that up to £270m is to be raised to pay down debt and historic landfill tax liability
Misys— Intention to float issued last week. Expected early November. Targeting £500m primary for deleverage and partial shareholder sale
Petards Group* (PEG.L) 19p £6.75m
The developer of advanced security and surveillance systems this week announced a c. £6m contract win to supply Great Western Railway with Petards eyeTrain systems for the design, development, supply and installation of eyeTrain systems to be fitted to Class 165 and 166 Diesel Multiple Units (“DMU”) trains. The developed systems add substantial new software driven functionality to eyeTrain solutions. With development underway there will be a 2016 revenue contribution and the 2017/18 order book is strengthened. FY2016E revenues £15m, £0.9mPBT.
Milestone Group*(MSG.L) 1.4p £10.98m
The provider of digital media and technology solutions announced last week that its Nexstar joint venture with Black Cactus has just distributed its first independent film, Brash Young Turks, to the Amazon Prime global streaming service. Nexstar will earn between 15% and 20% of all revenue earned on streaming, rental or purchase of every title it distributes through its global distribution network, which now includes the 60 million plus members of Amazon Prime. Nexstar has an agreement in place to distribute award winning Naeem Mahmood’s next 2 films.
InnovaDerma* (IDP.L) 178p £18.37m
The developer of ‘at-home’ and clinically proven treatments for hair loss, hair care, self-tanning and skin rejuvenation, has this week provided a FYJun16 trading update. It expects revenue and profits will be significantly higher than the previous year, driven by underlying organic growth across its product range and the contribution of the Skinny Tan business, which was acquired in May 2015. The Group expects revenues of c. AUD $8.3m (£4.2m) representing a significant increase of more than 800% and a maiden net profit.
Impax Asset Management Group (IPX.L) 49p £54.66m
The investment manager focused on environmental markets and related resource efficiency sectors this week provided a Q4 and FYSep16 AUM update. AUM reached a new peak of c. £4.5 billion, representing increases of 12% over the quarter and 59% since the start of Impax’s financial year on 1 October 2015.
Quadrise Fuels International (QFI.L) 11.63p £94.1m
The emerging supplier of MSAR® emulsion technology and fuel, enabling a low-cost alternative to heavy fuel oil (one of the world’s largest fuel markets, comprising over 450m tonnes per annum) in the global shipping, refining, power generation markets has announced a proposed £4m placing at 10p with an open offer of up to £1m. A 14% premium to yesterday’s close. The proceeds are to fund development of key projects to enable the migration to commercial operations and generation of net positive cash flow.
Tlou Energy (TLOU.L) 8.75p £20.75m
The company focused on delivering power in Botswana and southern Africa through the development of coal bed methane (CBM) has announced an initial Independent Reserve Certification for the Lesedi CBM Project. On a 3p basis Lesedi has 52.9 billion cubic feet of Gas Reserves (Lower Morupule seam only). On a contingent 3c basis all seams have 3,243 BCF of Gas Resources.
Walker Greenbank (WGB.L) 203.5p £123.33m
Acquisition by the luxury interior furnishings group for £25m cash acquisition with up to £10m share based earn-out of Globaltex 2015, a UK-based designer and worldwide distributor of quality interior fabrics and wallcoverings (trading as “Clarke & Clarke”). Part funded by a £17m placing at 190p, a 6.6% discount to yesterday’s close. Expected to materially enhance earnings in FYJan18. Clarke & Clarke sales of £22.4m in FYDec15. Adjusted EBITDA of £3.8m. WGB HYJul16 interims today. Group sales down 8.7% to £41.8m. EPS +62.1% to 6.55p.
Diamondcorp (DCP.L) 4.13p £19.75m
A project & financial update on the lace diamond mine in South Africa. The revised production ramp up announced in August has been further revised in light of tonnage constraints encountered during September which are now likely to continue until at least the end of the current year. The tonnage for the months of September to December will be restricted to an average of 14-15,000 tonnes per month and commencement of full commercial mine production of 30,000 tonnes per month is now expected to be delayed until c. February 2017.
Telford Homes (TEF.L) 295.25p £221.74m
The residential property developer focused on non-prime London, has announced a HYSep16 trading update. Long term imbalance between the supply of homes and the demand for somewhere to live in non-prime areas of London underpins future prospects for Telford Homes. Strong forward sold position now exceeding £650 million of revenue to be recognised from the year to 31 March 2017 onwards. No adjustment to growth targets post EU vote. FYMar17 expectations and beyond unchanged. FYMar17E sales of £288m. EPS 35.68p.
Steppe Cement (STCM.L) 18.5p £40.5m
Q3 update from the construction materials producer in Kazakhstan. Third quarter 2016 revenue of KZT 7,316 million was 6% lower than revenue of KZT 7,770 million achieved in the corresponding quarter in 2015. For the 9 months ended 30 September 2016, Steppe Cement Ltd (“Steppe Cement”) recorded revenue of KZT 15,506 million compared to KZT 16,047 million in the corresponding 9 month period in 2015, representing a 3% decrease.
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 such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. Recipients should make their own investment decisions based upon their own 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, they have not been independently verified and are not guaranteed 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, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such.
Any and all opinions expressed are current opinions as of the date appearing on 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, directors, 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, does not constitute “independent investment research” for the purposes of the Financial Conduct Authority rules. The individuals who prepared this document 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, directors, 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 UK, 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 (as amended) or (ii) are Professional Clients or Eligible Counterparties (as those terms are defined in the rules of the Financial Conduct Authority) 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 persons who would be classified as Retail Clients (as defined by the rules of the Financial Conduct Authority).
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 UK or US securities law, or the law of any such other jurisdictions.
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, directors, 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.
Neither the whole nor any part of this document may be duplicated in any form or by any means. Neither should this document, or any part thereof, be redistributed or disclosed to anyone without the prior consent of Hybridan LLP.
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 firstname.lastname@example.org with “unsubscribe me”.