AIM Breakfasts

AIM BREAKFAST – 21st December 2016

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 986

Total number of AIM Companies trading: 956*
* As at 19 December 2016

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: 82*
* As at 19 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

Good Energy Group (GOOD.L) 273.5p £45.1m

Operational update from the Group which supplies & generates 100% renewable electricity, carbon neutral gas and feed in tariff administration services to over 239k UK homes & businesses. The Board has agreed terms for the sale of its  5MW Oaklands solar farm to Eneco UK Limited for £5.78m as well as an option to purchase power from the site. As part of the sale, Good Energy will retain asset management services for the site.  On current trading volatility has caused challenging trading from  late October to late November. Notwithstanding this, the Board still expects to meet the lower end of market expectations, assuming the more favourable trading conditions experienced to date in December continue until the end of the month.  FY16E rev £84.5m. PBT £1.4m.

 

BOS Global (BOS.L) 8.12p £5.46m

The software company focused on creating enterprise productivity solutions for the global workforce market, has updated on the sale of certain non-core assets:  it has disposed of all shares it held in Azarga Metals Corp. (TSX-V:AZR) for a cash consideration of approximately CAD26k. Confidential agreement with a USA based start-up to sell its Hostisme hospitality software prototype and associated intellectual property. $10k expected on completion. Minimum USD120,000 contracted software development services to be provided by the BOS GLOBAL Software Development Centre In India for Year 2017 only. Longer term royalties also agreed.

 

Seeing Machines (SEE.L) 4.25p £45.72m

The technology company with a focus on fleet transport safety, operator monitoring and intervention sensing technologies and services announced that it has entered into a global distribution partnership with MiX Telematics (JSE: MIX, NYSE: MIXT), a leading global provider of fleet and mobile asset management solutions.  MiX Telematics offers its fleet and mobile asset management solutions, through a Software-as-a-Service delivery model, to customers in more than 120 countries, across 6 continents and has a network of over 130 fleet partners.  FYJun17E rev £14.98m, EPS loss of 1.26p.

 

CH Bailey (BLEY.L) 137.5p £10.49m

HY Sep 16 results. Turnover up 22% to £2.9m.     Operating profit of £577k (2015 loss: £494k). “These improved results arise from a combination of increased sales from the serviced offices and accommodation in Tanzania, profits on our current asset investments and the positive effect of the slide in the value of the pound. The Phase III of our offices in Tanzania is now fully let and we have seen a build up throughout the period in the occupancy of our new serviced accommodation in Dar es Salaam. Despite a turbulent time for engineering in South Wales, Bailey Industrial Engineering Limited has traded in line with our internal forecasts.” There are no forecasts in the market.

 

Water Intelligence (WATR.L) 81.5p £9.35m

Q3 trading update from provider of precision, minimally-invasive leak detection and remediation solutions. Revenue exceeded market expectations and through Q3 has actually reached the same level as achieved for all of 2015.  Profits before tax have also grown and are in-line with market expectations, despite significant investment to drive future profitability.   Since the end of Q3, the Company has completed both a round of equity financing at a price that represented a premium to market and a new, broader bank financing putting the Company in position, as noted above, to accelerate its growth strategy in 2017. FY Dec16E rev £8.1m, PBT £1.1m.

 

AorTech International (AOR.L) 23.5p £1.3m

HYSep16 results. Revenue $240k vs $380k.  Costs trimmed slightly to $359k.  Regarding ongoing litigation ‘AorTech petitioned the court to order a settlement conference or mediation. A court-ordered mediation process was undertaken last week, but no agreement was reached. AorTech is disappointed that the mediation process was not successful, as proceeding to trial will result in a period of continued uncertainty for all parties.’ AorTech intends to continue the litigation but remains open to a negotiated resolution. AorTech remains interested in licensing its heart valve project, however more capital is required. A number of other potentially suitable medical devices have been identified. AorTech is considering its commercial options.

 

Cerillion (CER.L) 130.5p £38.5m

The billing, charging and customer relationship management (CRM) software solutions provider, has secured a 3.3 million contract with a new customer in Europe. The contract is with a quad-play communications provider for the Company’s enterprise CRM and billing solution, incorporating its convergent charging system. The new solution represents a full business support systems transformation and was won after a global tender process. The new contract helps to underpin market expectations for the current financial year. We could however see no forecasts in the market.

 

Pittards (PTD.L) 88p £12.4m

The specialist producer of technically advanced leather and luxury leather goods for sale to retailers, manufacturers and distributors announced an update on the situation in Ethiopia and general trading. The prolonged depressed demand for leather has culminated in disappointing sales volumes in the last few months of the year. Together with the disruption in Ethiopia, the overall performance for the full year ending 31 December 2016 is likely to be lower than our expectations at the time of the half year results. The new management team is now in place and further progress has been made in the second half to simplify the Group to better position it for growth. There are no forecasts in the market.

 

Eden Research (EDEN.L) 12.75p £23.5m

Year end trading update from the provider of  breakthrough natural bio-control products and microencapsulation technologies to the global agrochemicals, animal health and consumer products industries. 2016 has seen the first sales of 3AEY in Italy (where it is sold as 3logy®), Greece (Mevalone™), Kenya (Hawk™) and Spain (ARAW®). In total, sales of 3AEY at distributor level are in excess of €1m with over 85,000 litres sold in those territories.  Better than expected. In 2017 Eden will transition from a royalty based model towards a direct supply model. New territories in the pipeline.  FYDec16 revs of circa £0.4m and EBITDA loss of circa £1.1m.  Cash of c. £1.4m.

 

Ariana Resources (AAU.L) 1.53p £12.8m

The gold exploration & development company operating in Turkey, has acquired the Salinbas Gold Project from Eldorado Gold.  Salinbas Project is located within a multi-million ounce goldfield containing several significant gold-copper projects, notably the adjacent Hot Maden project.  Ariana 100% owner of Salinbas following a Net Smelter Return royalty of up to 2% on future production being granted to Eldorado.  Scoping-study completed on Salinbas demonstrated potential for production of approximately 50,000 ounces of gold and 100,000 ounces of silver per annum over 10 years, providing an NPV (8%) in excess of US$100 million.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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