Small Cap Feast

Small Cap Feast – 20th April 2017

Dish of the Day:

No AIM Joiners Today

Off the Menu:

NO AIM Leavers Today

What’s Cooking in the IPO Kitchen?

Global Ports Holding—Intention to float on Standard List.  International cruise ports operator. Seeking $250m raise including $75m primary offer.

Dorcaster—Schedule One Update. Admission now expected  3 May. RTO of Escape Hunt raising £14m at 135p

Verditek— Intention to float on AIM. On Admission, the Company’s subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Raising £3.5m. Admission in May.

Eddie Stobart Logistics— Schedule 1 update. Admission expected 25 April raising £122m.

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

Ortac Resources (OTC.L) 3.13p £2.57m

The mineral exploration company operating in Europe and Africa, entered into an agreement to form a joint venture with a Slovakian company to jointly develop the Sturec Gold Project at Kremnica.  The Sturec project has a reserve of just under 900,000 oz gold equivalent which has progressed to pre-feasibility stage. Meanwhile the process for final validation of the underground mining license as announced on 17 March 2017 continues on track.


Anglo African Oil & Gas (AAOG.L) 27.5p £14.62m

The independent oil and gas developer, has agreed terms to contract the wireline and ancillary equipment for the workover that is intended to undertake the reperforation and acidisation of the R2 reservoir in well TLP-102. The objective of this workover is to bring this well into production at a rate of up to 100 barrels of oil per day. The equipment is anticipated to arrive at the Tilapia field and commence operations on 8 May 2017. The Company will make further announcements in due course, including as to the results of this workover and plans for the workover of TLP-101 and drilling of the new well, TLP-103.


Braveheart Investment Group (BRH.L) 15p £4.06m

Trading update from the fund management and strategic investor group. The Group has continued to perform in line with the January 2017 trading update and, as a consequence, the Directors expect that profit before and after taxation for the y/e March17 will be c. £750k.  As opportunities have arisen, the Group has continued to invest in its strategic investment portfolio and has resulted in an increase its percentage holding in Kirkstall from 28 per cent. to 37 per cent. and following the purchase of existing shares and the provision of a convertible loan to Paraytec, the Group’s interest would increase, on conversion, from 33 per cent. to 47 per cent. “We are pleased with our progress over the past year and have cash on our balance sheet available for further investment opportunities over the coming months.”


Cluff Natural Resources(CLNR.L) 2.65p £8.73m

The natural resources investing company  announced results of an independent Scoping Study covering two prospects on its 100% owned Licence P2248 in the Southern North Sea gas basin, which has seen a significant pick-up in operational and corporate activity. Post drill Expected Monetary Value (‘EMV’) following a discovery for Cadence & Basset of £86.6m & £69m respectively. Implied extrapolated un-risked NPV for the 6 identified prospects on Licence P2248 of £697m. ‘Should exploration wells prove commercial quantities of gas in line with expectations, then the Scoping Study economics demonstrate that cost effective development options are readily available, a key consideration for any operator or investor looking at the Company’s exploration assets.’


Walker Greenbank (WGB.L) 213.5p £149.5m

Thee luxury interior furnishings group, announces has received a further interim insurance payment of £1.5 million following the flood in December 2015 at Standfast & Barracks, the Company’s fabric printing factory in Lancaster. In total, £16.9 million of flood-related insurance payments have now been received by the Company in respect of damage to business assets and loss of profits. With the factory having been back in full production for some time and the Company’s Milton Keynes warehouse being fully stocked with printed textiles, the Company will be seeking to negotiate a final settlement of the insurance claim with its insurers. It is expected that a settlement will be agreed during the first half of the current financial year. FY Jan 18 rev £122.2m PBT £14.2m.


Modern Water (MWG.L) 9.88p £7.85m

The owner of world-leading technologies for water and wastewater treatment and for water quality monitoring, has secured a sale of its proprietary Forward Osmosis (“FO”) technology for seawater desalination to Hangzhou Water in China. The Company will license its patented FO technology and provide its extensive engineering know-how to Hangzhou Water, for use in a new 500m3/day seawater desalination plant, to be built at the Shengsi Seawater Desalination Base on Sijiao Island. Modern Water will receive licence fees in the short term; and commissioning fees for supervising commissioning of the plant; as well as selling Hangzhou Water specialised equipment and spares on a long term basis. Expected plant completion early 2018.


Paragon Entertainment (PEL.L) 5.12p £9.62m

FYDec16 results from the attractions design, production and fit-out business. Revenue +70% to £14.4m. Gross profit up 91% to £3.8m. Ebitda of £1.19m vs  £0.24m.  Earnings down to £0.31m from £0.6m following a goodwill write down. Net cash of £1.2m from a £0.2m deficit. ‘In 2017, we expect that £7 million of our turnover will come from repeat partnership business, amounting to approximately 45% of our revenue guidance of £15.7 million for 2017 and we anticipate our work to have the following geographical split: 20% UK, 10% Europe, 65% MENA and 5% China.’


Action Hotels (AHCG.L) 46p £67.91m

FYDec16 trading update from g owner, developer, and asset manager of branded three and four-star hotels in the Middle East and Australia. The Company expects to report total revenue increased by c.22% to approximately $53.1m adjusted EBITDA + c.16% to approximately $18.5m and the value of Action Hotels’ hotel assets increased by c.15% to approximately $458m. As is typical in many development companies, Experienced some unforeseen delays in opening dates of some of its new hotels and this has negatively impacted revenue resulting in a level that is materially below market expectations. Divi to remain in line. Trading in Q1 2017 is solid with total revenue up c.14% over the same period last year.


Redx Pharma (REDX.L) 35p £45.37m

The research and development company focused on cancer, immunology and infection,  has appointed  Iain Ross as Non-exec Chairman effective from 1st May. Mr Ross has over 35 years’ of experience having held Senior Board and Management positions at multiple public and private companies in the life sciences sector. Currently Mr Ross serves as Non-Executive Chairman of AIM quoted e-Therapeutics plc and Biomer Technology Ltd alongside his Non-Executive Directorships at London listed Premier Veterinary Group plc, and ASX quoted Anatara LifeSciences Ltd and Novogen Ltd and as a Director of Aldershot Town Football Club.


Ebiquity (EBQ.L) 115p £88.78m

The independent marketing and media analytics consultancy, has announced the launch of Portfolio Digital, a new digital ad intelligence platform designed to monitor online display advertising. The UK launch follows the successful release of Portfolio Digital in Australia. Portfolio Digital allows subscribers to track competitors’ media strategy, messaging & tactics, including quantum and frequency of spending, how the ads appear in situ, and their position on the web pages where they appear. The platform includes a unique spend calculation model which provides an up to date estimation of actual expenditure.  To be followed by Europe & US launches. PE 11.4x.


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Derren Nathan
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