AIM Breakfasts

AIM BREAKFAST – 1st February 2017

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 971

Total number of AIM Companies trading: 947*
* As at 31 January 2017

Dish of the Day:

No AIM Joiners Today

Off the Menu:

No AIM Leavers Today

Set Menu ISDX Growth:

Total number of ISDX Growth Market Companies (Incl Susp): 85*

Total number of ISDX Growth Market Companies trading: 81*
* As at 31 January 2017

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?

Nando’s—According to a Reuters news release Nando’s has now denied speculation it was considering a London stock market flotation.

LXI REIT— Intention to float on the main market from the Company intending to invest in UK commercial property assets. Seeking an initial raise of £200m with authority for £200m more in first year,

Diversified Gas & Oil plc— AIM Admission now expected 3rd Feb. Raising $50m with expected market cap of $86.4m.


Breakfast Buffet

Metminco (MNC.L) 4.87p £4.4m

Metminco announced the completion of the second tranche of the placement of approximately A$4.85 million announced 17 November 2016, which will be used towards completing the Miraflores Bankable Feasibility Study (BFS) and to progress the project towards production.  Price of A$0.1185. The BFS is expected to complete in the current half year. The Company is targeting an annual gold production of 50,000 oz and secured up to US$45 million in funding for the Los Calatos Copper Project in Peru in which the Company currently holds a 49% interest.


China Africa Resources (CAF.L) 2.88p £2.18m

The natural resource exploration and development company has agreed to acquire a 48.88% stake in private Australian company Global Exploration Technologies, which  has five exploration licences in the Kalahari Copper Belt in Botswana held through three Botswanan subsidiary companies. This transaction does not constitute a reverse takeover under the AIM Rules and consequently China Africa must continue to seek to complete a reverse takeover or face suspension from trading on AIM.


Epwin (EPWN.L) 100.75p £144.36m

FYDec16 trading update from the vertically integrated manufacturer of low maintenance building products, supplying the Repair, Maintenance and Improvement, new build and social housing sectors. Profits will be in line with expectations, with continued strong cash generation in challenging market conditions.  The performance of recent acquisitions continues to be encouraging. “2016 was another year of progress for Epwin.  We grew profits and had strong cash generation in challenging market conditions.  This reflects our strategy to broaden our product portfolio organically and through acquisition, enhance cross-selling and improve our operations.” FyDec16 rev £298m, PBT £24.4m, div 6.6p.


Cohort (CHRT.L) 440p £183.94m

The independent technology group, announced that it has acquired the minority (49.999%) holding in its subsidiary MCL for a cash consideration of £5.1m in line with the arrangements stated at the time of its acquisition in July 2014. This takes Cohort’s holding in MCL to 100%, and the total consideration, including deferred consideration paid to date, to £12.1m. The consideration has been paid out of Cohort’s existing financial resources. A further payment of approximately £2.0 million is expected to be made on or before 31 July 2017 reflecting a further earn out linked to MCL’s current order book and the minority holding’s share of the surplus cash in MCL.  The impact of this acquisition is expected to be earnings enhancing in the remainder of the financial year ending 30 April 2017. FYApr17E EPS 25.7p.


Byotrol (BYOT.L) 4.13p £11.06m

The specialist anti-microbial technology company, announced that John Langlands has been appointed as Chairman with effect from today’s date and that Nicholas Martel has stepped down as Chairman and as a Director, also with effect today.  Nicholas will remain with the Company for a further three months to ensure an orderly hand-over. John Langlands has considerable business, commercial and City experience having worked for a number of listed companies. He has been CEO since 2003 of British Polythene Industries Plc, a leading European producer of polythene films for packaging and agriculture. BPI was sold to RPC GROUP Plc in August 2016 and John left BPI at the end of January 2017 following the successful integration of BPI into RPC.  Issued 2.7m options exercisable at 4.125p.


Adgorithms (ADGO.L) 22p £13.58m

FYDec16 trading statement from the creators of an artificial intelligence marketing platform. The Company continues to execute its stated growth strategy and expects trading to be in line with management’s expectations. Adgorithms’ un-audited revenue for the period is expected to be approximately $16 million with an un-audited adjusted EBITDA loss of approximately $8 million. The cash balance as of 31 December 2016 is expected to be approximately $22 million reflecting the Company’s focus on controlling cash burn.


Coal of Africa (CZA.L) 3.51p £67.64m

The coal exploration and project development company operating in South Africa, and traded on the ASX, AIM and the JSE, announced the successful completion of a share placement to M&G Investment Management Limited raising $2m at 4.081 cents. The proceeds will be used for working capital purposes. “The M&G placement once again confirms the support from our large shareholders and provides the Company with additional financial capacity to fund our working capital requirements. We remain committed to creating shareholder wealth by continuing to complete our turnaround strategy, a potential acquisition of a cash generator and ultimately the development of our flagship project – the Makhado Mine.”


AFH Financial (AFHP.L) 165p £39.81m

The financial planning led wealth management firm, has acquired the assets of Taylor Frost Wealth Management Limited, an IFA business based in South West London. Following the acquisition Keith Taylor will join AFH as an adviser. The maximum consideration payable by AFH is £1,245,000.  An initial cash consideration of £595,000 has been paid upon completion, satisfied from the Company’s existing cash resources. Further deferred consideration of up to £650,000 will be payable in cash over the next 26 months in two tranches, dependent upon performance criteria of the assets acquired.  Fourth acquisition of the current financial year. This deal adds circa £45m in funds under management.


Circle Holdings (CIRC.L) 21.63p £51.09m

The largest partnership of doctors, nurses and healthcare professionals in the UK has disposed of its land in Manchester to the Department for Communities and Local Government for cash consideration of £9.1 million plus VAT. The net proceeds from the disposal will be used for working capital purposes and to fund future growth opportunities, including the proposed new build hospital in Birmingham. The book value of the Manchester land as at 30 June 2016 was £5 million.


Quantum Pharma (QP.L) 48p £81.18m

FY Jan17 trading update from the service-led niche pharmaceutical developer, manufacturer and supplier.  Adjusted EBITDA for the year ended is expected to be in line with market expectations. The level of net debt is expected to be in the region of £13.5 million as cash management continues to be a key focus for the Group. Raised £15m in November 2016. As a result of actions to tighten strategic focus, the current performance of the Group is supportive of market expectations for the year ending 31 January 2018. FYJan18E rev of £85.12 and PBT of £7.46m.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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