AIM Breakfasts

AIM BREAKFAST – 15th December 2016

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 989

Total number of AIM Companies trading: 960*
* As at 14 December 2016

Dish of the Day:

RM Secured Direct Lending IPO on main market raising £50.3m. Was looking for up to £100m.

Off the Menu:

Cancellations of Charlemagne Capital and Cyprotex Today

Set Menu ISDX Growth:

Total number of ISDX Growth Market Companies (Incl Susp): 84*

Total number of ISDX Growth Market Companies trading: 81*
* As at 14 December 2016

Dish of the Day:

No ISDX Growth Market Joiners Today

Off the Menu:

No ISDX Growth Market Leavers Today

What’s Cooking in the IPO Kitchen?

Ultimate Products—The Telegraph reports Jim McCarthy, former chief of Poundland has been appointed Chairman of Ultimate Products ahead of a £100m listing in H1 2017. Ultimate Products owns the Beldray cleaning brand and the licence to sell Russell Hobbs and Salter electrical products in the UK.


Breakfast Buffet

Redde (REDD.L) 163.75p £497.7m

Trading update from the provider of accident management and legal services. Sales continue to show an increase over the corresponding period last year reflecting both organic growth and the effect of the acquisition of FMG on 27 October 2015. As a consequence, trading profits remain ahead of internal expectations and the corresponding period last year.  Based upon trading to date the Board would expect to declare at that time an interim dividend of not less than 4.90 pence per share for the year ending 30 June 2017. This would compare to an interim dividend of 4.50 pence in respect of the financial year ended 30 June 2016 and would represent an increase of 8.9%.  FYJun17E rev £422.3m, PBT £37.2m.


Stratmin Global Resources (STGR.L) 1.36p £2.60m

Stratmin has agreed to an immediate discounted cash settlement of the share payments from Bass Metals Ltd under the 6 June 2016 Share Purchase Agreement. Under the SPA, Bass equity was to be issued to StratMin in two tranches of A$3 million and A$5 million subject to Bass meeting certain performance criteria by 31 December 2017 and 31 December 2018 respectively. Bass recently approached StratMin with an offer to settle the equity payments in cash and facilitate the divestment of the Company’s remaining 70 million Bass shares. The Board considered this offer with reference to the recent share price performance of both Bass and StratMin and the need to establish the best possible platform for StratMin ahead of initiating a reverse takeover.


Sound Energy (SOU.L) 69.5p £429.7m

The African and European focused upstream gas company, has updated on the Company’s Tendrara (27.5%) licence, onshore Morocco.  Further to the Company’s announcement of 24 November 2016, the Company has retrieved the TE-7 bottom hole memory gauges following the open hole well test and can confirm that the reservoir pressure correlates with the gas gradient recorded at all previous wells on the structure.  On TE-8 the Company’s current internal estimates are that success at TE-8 would establish best estimate original gas in place at Tendrara of up to 1.5 Tcf gross. Prior to the drilling of TE-8, the Company internally estimates best estimate original gas in place volume of between 0.3 Tcf and 0.5 Tcf gross. Intends to commission a Competent Persons Report to confirm contingent resources.


88 Energy (88E.L) 2.35p £97.98m

Update on Project Icewine (77.5% Working Interest, Operator), located on the Central North Slope of Alaska.     Accumulate Energy Alaska, Inc. a 100% subsidiary of 88E and JV Partner, Burgundy Xploration LLC has been declared high bidder on ~142,560 acres on the Central North Slope (Accumulate 77.5% working interest).  Burgundy declared high bidder on additional 279,360 acres on the Central North Slope (Accumulate retains back in right for 30% of these additional acres at cost). Net land position for Accumulate (assuming all rights taken up) now over 400,000 acres on the Central North Slope (Joint Venture gross position over 690,000 acres).


Atlantis Resources (ARL.L) 52.5p £61.4m

Stroma Tidal Power Limited (STPL), the Company’s wholly owned project company behind the next phase of the development at the MeyGen site, has confirmed its investment decision to proceed with the development, which is known as Project Stroma (MeyGen Phase 1B).  STPL carried out a competitive tender process for the project construction contracts which has led to the investment decision and enables the project to proceed to construction in 2017. This next phase of the MeyGen site development is an important step in demonstrating progress to a lower cost of energy for tidal stream.


Advanced Medical Solutions Group (AMS.L) 215.5p £455.6m

The surgical and advanced wound care specialist company, announced an update on trading for the year ending 31 December 2016. The Group continues to make good progress and the Board expects profitability to be in line with current market expectations, whilst revenue is expected to be ahead of market expectations, aided by the weakness in sterling against the US dollar and the euro.  Hedging has limited the benefit seen from sterling weakness. FY16E revenue £78.97m and PBT of £19.27m. Div 0.91p.


Ubisense Group (UBI.L) 41p £22.9m

The specialist in Enterprise Location Intelligence solutions  has announced the appointment of Richard Petti as Chief Executive Officer with effect from 14 December 2016. Peter Harverson will remain Executive Chairman during a transition period, and will revert to non-Executive Chairman during the first half of 2017. Richard brings first-hand experience of growing revenues and developing profitable businesses serving automotive, financial and industrial customers. Richard joins Ubisense having most recently been CEO of Asset Control, a worldwide supplier of financial data management systems serving some of the world’s leading financial organisations .


SigmaRoc (SRC.L) 0.35p £0.95m

Reverse Acquisition of Ronez Limited for £45 million. Placing of New Ordinary Shares to raise £40 million at 40p.  Placing of Convertible Loan Notes to raise £10 million. Proposed 104:1 Share Consolidation. Subject to GM on 3 January. Ronez is a fully integrated producer of construction materials and operates two hard rock quarries and multiple business lines with associated production units across Jersey and Guernsey, with approximately 3.36Mt of Proved Mineral Reserves and a further 6.22Mt of Measured and Indicated Mineral Resources.   In 2015, Ronez recorded revenue of £26.3 million and operating profit before tax of £2.94 million.


Clinigen Group (CLIN.L) 715.5p £821.2m

The global pharmaceutical and services company, announced that its Idis Global Access division has signed a supply and distribution agreement with BioQ Pharma, a developer of large volume ready-to-use infusible products. The deal covers the on-demand supply and distribution of BioQ Pharma’s pre-filled Ropivacaine Readyfusor for post-operative pain management in Europe, excluding France and Germany. FY17E rev £383.3m, PBT of £57.8m.


Impellam (IPEL.L) 702.5p £353.6m

FY Dec16 trading update from provider of managed services and specialist staffing expertise. Notwithstanding the well-publicised disruption in the UK healthcare market and the increased uncertainty following the UK referendum, the Board expects to deliver 2016 EBITDA broadly in line with market expectations.  Uncertainty in UK specialist business, but UK Managed Services, US and Australia performing well. FY2016E rev of £286m EPS 101.2p. PE 7x. 2.9% yield.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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