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
No AIM Primary Today
Off the Menu:
No AIM Leavers Today
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
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.
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