AIM Breakfasts

AIM BREAKFAST – 27th September 2016

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 1,001

Total number of AIM Companies trading: 986*
* As at 26 September 2016

Dish of the Day:

No AIM Primary Today

Off the Menu:

No AIM Leavers Today

Set Menu ISDX Growth:

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

Total number of ISDX Growth Market Companies trading: *
* As at 26 September 2016

Dish of the Day:

Off the Menu:

What’s Cooking in the IPO Kitchen?

Saudi Aramco—Press reports the Saudi national oil company is considering an IPO. London, NYSE, and Hong Kong in running

Krispy Kreme UK—Press reports that Alcuin Capital Partners, the owner of  the doughnut chain is seeking a London float this year

Biffa— Intention to float announcement states that up to £270m  is to be raised to pay down debt and historic landfill tax liability

Bacanora Lithium— To list on AIM around 28 Sep as holding company for TSX listed Bacanora Minerals at £100m market cap


Breakfast Buffet

REDX Pharma (REDX.L) 51p £47.7m

The drug development company, has announced ‘the discovery of a series of compounds that have the potential to create the first novel class of broad-spectrum antibiotics in 30 years’. In vivo testing has now confirmed that Redx has discovered a series of compounds that are highly effective against drug resistant strains of Gram-negative bacteria. This could have important implications for drug resistant infections such as E. coli and Pseudomonas, which are responsible for critical illnesses such as pneumonia, blood poisoning, and urinary tract and abdominal infections.  


Netcall (NET.L) 57p £79m

The customer engagement software provider,  announced that it has secured a minimum £1.5 million contract with a FTSE 250 company. The company is an existing customer of Netcall’s business process automation product. The new five year contract is for the delivery and use of Netcall’s Liberty omni-channel Contact Centre, Unified Communications, Workforce Optimisation and Customer Experience Manager solutions. Each module will be delivered using the Liberty Software as a Service (SaaS) model. FYJun2017E revenues £19m. PE 25.5x. 6.8% yield.


Pennant Group (PEN.L)69p £20.26m

Jun16 interims from the  supplier of integrated logistic support solutions, products and services. Revenues  +15.8% and a return to a small profit from a £750k loss. Four new contracts secured, with strategic new customers including Lockheed Martin Corporation.  Record Group Order Book of £46m at Period-End;. Substantial improvement in trading expected in H2.  Order book—£18m for 2017, £10m 2018 and £8m 2019. Trading in line to achieve market consensus of £17.3m sales and 7.4p EPS. 9.3x PE

Alternative Networks (AN.L) 315p £153m

The UK business IT and communications service provider,  has provided a pre-close FYSep16 trading up date. New business performance was lower over the summer following the United Kingdom’s European Union membership referendum. Reassuringly, new business performance recovered well in August and September and the Group has a robust pipeline for the coming financial year, but some project completions will be delayed beyond the year end. Now expects adjusted EBITDA somewhat below management’s previous expectations. Consensus currently £15.9m PBT. 12.2x PE. 5.8% yield.


Chaarat Gold Holdings (CGH.L) 6.2p £16.9m

The exploration and development company with assets in the Kyrgyz Republic,  has announced a oversubscribed £4.1m placing at 5.25p per share, a discount of 15.3% to yesterday’s close. The proceeds are to be used to complete the Bankable Feasibility Study for the Tulkubash Heap Leach Project . When in production, the Tulkubash Project is expected to process approximately 8k tonnes of ore per day to produce approximately 60-70k oz AU/annum. The estimated total capital requirement to production is expected to be approximately $80 to $100m.


Immedia Group (IME.L) 31p £4.5m

The supplier of multi-media content solutions for leading brands and global businesses, has announced that, further to its announcement of 19 August 2016, it has signed a significant, three year contract with a major UK retailer. Further information about this important new contract will be announced in due course, when client confidentiality is lifted.


Earthport (EPO.L) 16.37p £78m

The payment network for cross-border transactions, announced that it has signed a Memorandum of Understanding (MoU) with SECB Swiss Euro Clearing Bank (SECB), in order to reach an agreement to provide foreign payment services. SECB Swiss Euro Clearing Bank is based in Frankfurt. It is Earthport’s goal to establish itself as a local service provider of cross-border payments to banks in various countries and SECB would be Earthport’s first client in Germany. FyJun16E revenues £22.7m. Pre-tax loss £8.8m


Mercia Technologies (MERC.L) 49.15p £105m

The company focused on the creation, funding and scaling of innovative technology businesses with high growth potential from the UK regions, has announced a new direct investment of £650,000 into Medherant Limited.  Medherant is a novel transdermal patch drug delivery system company, and this investment brings another opportunity with high growth potential into Mercia’s portfolio of direct investments. Last reported NAV £80m.


Ilika (IKA.L) 52.75p £34.7m

The pioneer in materials innovation and solid-state battery technology, has announced a conditional £6.3m placing at 50p, a 5.21% discount to yesterday’s close. The net proceeds of the Placing will be required to strengthen the Company’s balance sheet and provide additional working capital during the Stereax™ commercialisation process.  Directors have subscribed for 110,000 of the placing shares.


CloudTag Inc (CTAG.L) 14.62p £52.9m

The company that brings personal monitoring to the wellbeing, fitness and digital health markets, has announced a proposed subscription of £550,000 at a price of 15.5p being the mid-market closing price on the 26 September 2016.  There are no commissions or expenses payable in relation to the Subscription. The proceeds will be used for general working capital purposes.  The Company has received non-binding indications of interest from potential investors for the Subscription during a pre-marketing process.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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 such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. Recipients should make their own investment decisions based upon their own 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, they have not been independently verified and are not guaranteed 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, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such.

Any and all opinions expressed are current opinions as of the date appearing on 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, directors, 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, does not constitute “independent investment research” for the purposes of the Financial Conduct Authority rules. The individuals who prepared this document 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, directors, 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 UK, 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 (as amended) or (ii) are Professional Clients or Eligible Counterparties (as those terms are defined in the rules of the Financial Conduct Authority) 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 persons who would be classified as Retail Clients (as defined by the rules of the Financial Conduct Authority).

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 UK or US securities law, or the law of any such other jurisdictions.

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, directors, 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.

Neither the whole nor any part of this document may be duplicated in any form or by any means. Neither should this document, or any part thereof, be redistributed or disclosed to anyone without the prior consent of Hybridan LLP.
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 with “unsubscribe me”.