AIM Breakfasts

AIM BREAKFAST – 29th March 2017

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 967

Total number of AIM Companies trading: 946*
* As at 28 March 2017

Dish of the Day:

Dukemount (DKE.L) has joined the Standard List. The Company intends to develop and manage a portfolio of properties.

 

Off the Menu:

Asian Citrus Hldgs has had its AIM quote cancelled  following a delay in its audit. Remains listed in Hong Kong although currently suspended there.

E2V technologies has left the Main Market  following a recommended cash acquisition

 

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 28 March 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?

Path Investments—Publication of prospectus from the Energy Investment Company. Raising £1.4m. Admission due on or around 30 March.

Franchise Brands—Schedule 1 detailing £28m reverse takeover of Metro Rod. Admission expected 11 April.

Alpha FX Group— Schedule 1 from the foreign exchange provider focused on managing exchange rate risk for UK corporates that trade internationally.  Fundraise TBC. Admission expected 7 April.

SkinBioTherapeutics—Schedule 1 update from the Company focused on certain molecules found in the human microbiota that can be used to protect, manage and restore the skin. £4.5m raise. Admission due 5 April.

Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April.

Tufton Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.

 

Breakfast Buffet

Petards Group* (PEG.L) 28.5p £10.13m

£4.3m contract win from the software developer of advanced security and surveillance systems with a new customer, Swiss train builder Stadler Bussnang,  for the design, development and supply of CCTV and ASDO systems integrated into Stadler’s FLIRTUK trains. Engineering activities will commence immediately with the first equipment deliveries starting in June 2017 and is expected that the project will be completed during Q2 2019. ‘Significantly enhances its position as a leading provider of security and surveillance systems to the UK Rail industry and considerably adding to the Group’s present order book for delivery over the next three years.’ FYDec17E £16.2m rev and £1.05m PBT.

 

Cambridge Cognition (COG.L) 75p £15.3m

FYDec16 results from the neuroscience digital health company. Total revenues increased by 37% to £6.88m.   Maiden profit for the year of £0.22m. Operational cashflow of £0.47m. “The current financial year has started well, with continued progress towards both our short and long term goals. The Company is well-positioned to pursue appropriate opportunities for partnerships that drive organic growth and moves the Company into sustainable profitability.”

 

Nektan (NKTN.L) 41p £13.47m

The international B2B gaming solutions and services provider, has signed a partnership agreement with leading casino games developer High 5 Games. Nektan has become the distributor of H5G content for real-money gaming in Europe with exclusive rights to the H5G casino catalogue. Nektan will also expand the current real money gaming distribution of H5G’s casino catalogue by making the content available in Canada as well. Since it was founded in 1995, H5G has created many of the industry’s most acclaimed and popular slot titles across land-based, online and social gaming markets. There are no market forecasts.

 

Collagen Solutions (COS.L) 4.63p £15m

The developer and manufacturer of medical grade collagen components for use in regenerative medicine, medical devices and in-vitro diagnostics has been granted divisional patent coverage from the Australian Patent Office for the use of their novel ultra-thin processed pericardium material, which can be used for heart valve replacement medical devices and other applications.  Patent coverage has also been established in New Zealand and USA. “This recent patent further strengthens our position in sourcing tissue in Australia in a novel way.  We believe the additional processing covered in this patent will be of significant interest to our existing customer base and value adding to our own medical device development program”.  FYMar17E rev of £4.1m and £1.93 pre-tax loss.

 

HML Holdings (HMLH.L) 40p £17.9m

The provider of property management, insurance and ancillary services to residential property blocks, has exchanged contracts for the acquisition of Faraday Property Management Limited, a property management business based in Holborn. The Company anticipates completion of the acquisition will occur on 1 April 2017. HML will purchase the entire share capital of FPM for an initial consideration of £2.3m on a cash-free, debt-free basis.  FPM produces annual revenues of £1.9m and normalised pre-tax earnings of £0.4m. It is expected that FPM will be immediately earnings enhancing. FYMar17E revenue of £20.3m and £1.8m PBT.

 

Fairpoint Group (FRP.L) 15.75p £7.6m

The provider of professional services to UK consumers with particular skills in process automation and consolidation,  announced the disposal of its ancillary medico-legal business, PIX Limited for an enterprise value of £1.2m, payable in cash.  The proceeds will be used to support the working capital requirements of the Group.

 

Avesero Resources (ASO.L) 2.65p £141m

FYDec16 results and operational update. Revenues of US$63.6 million generated from gold sales of 50,264 ounces since the start of commercial production at an average realised sale price of US$1,266 per ounce; Underlying EBITDA loss of US$30.4 million; Capital expenditure of US$27.7 million; Debt of$97.6m against cash of $13.4m.  Gold production guidance for 2017 of 90,000 – 100,000 ounces at a cash cost of US$750 – US$800 per ounce and AISC of US$925 – US$975 per ounce of gold produced; Management is currently focussed on addressing the issue of insufficient waste stripping undertaken when compared to the Life Of Mine schedule.

 

Midwich Group (MIDW.L) 310p £246.3m

The specialist audio visual and document solutions distributor to the trade market with operations in the UK and Ireland, France, Germany and Australasia, has entered into a binding agreement to acquire a majority stake in Earpro S.A. a value-added distributor of audio, video and lighting solutions in Spain and Portugal. The acquisition values the equity of Earpro at approximately 11.0m, including a net cash balance of approximately €3.2m. Earpro is headquartered in Barcelona and has a team of 45. Earpro generated unaudited revenues of around €21 million in 2016 which represented growth of around 7% on 2015.  FYDec17E rev of £414.5m and £19.4m PBT. Div 11.2p.

 

Biome Technologies (BIOM.L) 106p £2.49m

FYDec16 results from the Company whose  primary activity is the development of its fast growing business in bioplastics. Group revenues in 2016 of £4.6m (2015: £4.9m)/ Group EBITDA of £0.2m (2015: EBITDA loss of £0.3m), including one-off benefit of £0.4m settlement income. Gross margin up to 51% FROM 43%. “The Group delivered a solid performance in 2016 and has carried significant momentum into 2017. Within the Stanelco RF division the order book is robust and also has a strong enquiry pipeline to support our aims. The Biome Bioplastics division has made significant progress in the launch of its filter material and the Board expects this new product to move into the commercialisation phase in 2017.” There are no market forecasts

 

DX Group (DX..L) 9p £18.05m

The independent parcels, mail and logistics operator, announced that it has won a major contract worth in excess of £10m per annum providing bespoke logistic services for Avon UK, the leading beauty company. The contract, which is now underway, was awarded after a lengthy competitive tender process and is for an initial 3-year term. The win underpins management’s existing expectations of the Company’s performance in the current financial year. FYJun17E £294.2m revenue and £1.93m PBT. 11.1x PE and 9.4% yield.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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