Small Cap Feast

Small Cap Feast – 18th November 2016

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 995

Total number of AIM Companies trading: 971*
* As at 17 November 2016

Set Menu NEX Growth:

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

Total number of NEX Growth Market Companies trading: *
* As at 17 November 2016

Set Menu Standard List:

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

Total number of Standard List Companies trading: *
* As at 17 November 2016

Dish of the Day:

First day of dealings on Main Market for Civitas Social Housing (CSH.L) having raised £350m subject to scale back 

Off the Menu:

Atlas African Industries (AAI.L) has left AIM following the prior resignation of its Nominated Adviser

Dish of the Day:

Off the Menu:

What’s Cooking in the IPO Kitchen?

Warpaint London—Intention to Float on AIM from the specialist supplier of colour cosmetics. Aggregate £23m placing of new and existing shares. Targeting 30 November admission

United Global—According to Arabian Business the merged UAE Exchange/Travelex is seeking a LSE float in Q3 2017 with 30% of the shares to be made public

Diversified Gas & Oil—The US based gas and oil producer is seeking a December AIM quoting to raise circa $60m.

 

Breakfast Buffet

The Mission Marketing Group (TMMG.L) 40p £33.65m

The marketing communications and advertising group, announced that two Agencies of the missiontm, bigdog and Chapter, collectively scooped a record 17 wins at The Drum Cream Awards held on 16 November. bigdog secured the coveted Grand Prix award for its ‘Party Animals’ campaign on behalf of World Meat Free Day, marking the second consecutive year the Agency has received the accolade. In addition, bigdog and Chapter each won a further eight awards, making it the largest haul to date at Cream for both Agencies.

 

Rex Bionics (RXB.L) 22.5p £5.74m

The pioneer of the REX Robot technology that enhances the mobility of wheelchair users, announced the findings of a case report presented at the annual meeting of the Australian & New Zealand Spinal Cord Society. The participant completed once a week exercise regime in the REX over 10 weeks. The results demonstrated a significant improvement – with a complete resolution of headaches and neck pain and a significant reduction in shoulder and thoracic pain.

 

Frontier Developments (FDEV.L) 199.5p £68m

The developer of video games, released Planet Coaster, its second major self-published franchise, as planned on November 17. Planet Coaster builds on Frontier’s extensive expertise with coaster park simulation games – one of its previous games in the genre, RollerCoaster Tycoon 3, is still selling today over a decade after its release. FYMay17E revenue of £32.5m, PBT of £3.4m and EPS of 7.5p. 26.6x PE.

 

W Resources (WRES.L) 0.49p £21.37m

The tungsten, copper and gold mining, production, exploration and development company with assets in Spain and Portugal, announced initial results of the first hole from the 1,500 metre diamond core drilling campaign that commenced in mid-September at the São Martinho Gold Deposit in Portugal. A total of nine of holes have been drilled so far and the first assay results concluded, from the first hole SMD-04, that this intersected significant gold mineralisation in 6 levels including 2m at 4.2g/t and 2m at 7.6g/t.  

 

Netscientific (NSCI.L) 63p £32.18m

The healthcare IP commercialisation group, announced that technology from its portfolio company, Vortex Biosciences, was used in an analysis, published in peer-reviewed Oncotarget, of the merits of various approaches to assessing the mutation profiles in tumours. The analysis compared circulating tumour cells (CTCs), circulating free DNA (cfDNA) and tumour biopsy data, & found that all approaches had advantages and limitations, but that analysis of CTC and cfDNA together appears to enhance the ability to assess the mutation profile and metastatic status of a tumour.

 

President Energy (PPC.L) 5.95p £31.26m

The oil and gas exploration company, notes recent industry speculation regarding the price that oil producers in Argentina will receive for their production. The Company can confirm that under existing arrangements it expects to receive approximately $55 per barrel for its production until the year end. Looking ahead, using the Brent forward curve from 1Jan17, President anticipates  the IRR of its planned well workover campaign in 2017 will not be materially impacted (c.150%), and therefore expects no material difference in its anticipated year-end 2017 cash position.

 

CPP Group (CPP.L) 5.53p £47.41m

Trading update from the international assistance business. A combination of continued focus on cost control across the Group, increased sales volumes in the Indian business, and the impact of a weaker sterling on the results of European operations, has resulted in the Board now anticipating underlying operating profit1 for the full year ended 31 December 2016 to be materially ahead of the expectations detailed in the Interim Results. There are however no forecasts in the market.

Eagle Eye Solutions Group (EYE.L) 133.5p £29.58m

The SaaS technology company that validates and redeems digital promotions in real-time for the grocery, retail and hospitality industries  has provided an AGM trading update. During  Q1 the Group has accelerated its growth rate, delivering revenue of £2.3m, up 74%. Of the total revenue, £1.9m (was contributed from the Eagle Eye AIR platform, representing a 105% year on year increase. This growth has been driven by the deepening of Tier 1 relationships in the UK and internationally, and increased transactional revenue in both  grocery and hospitality accounts.

 

Dorcaster (DAR.L) 162.5p £16.25m

Dorcaster has entered into an exclusivity agreement which provides it with the exclusive right to negotiate for the acquisition  Escape Hunt Group Limited, a leading global provider of live escape the room and exit game experiences. The expected considerations of $23.5m in cash and shares. A fundraising is also expected. The acquisition would constitute a reverse takeover and Dorcaster has requested that its shares be suspended from trading.

 

Avesco (AVS.L) 625p £119.2m

Yesterday afternoon the provider of services to the corporate presentation, entertainment and broadcast markets announced a recommended cash offer for the Company at 65op per share or £124m. This is a 125% premium to the close on the day preceding the offer.

 

Head Chef:

Derren Nathan
0203 764 2344
derren.nathan@hybridan.com

*A corporate client of Hybridan LLP

Disclaimer

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 enquiries@hybridan.com with “unsubscribe me”.