Small Cap Feast

Small Cap Feast – 30th March 2017

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 966

Total number of AIM Companies trading: 946*
* As at 29 March 2017

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 85*

Total number of NEX Growth Market Companies trading: 82*
* As at 29 March 2017

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): *

Total number of Standard List Companies trading: *
* As at 29 March 2017

Dish of the Day:

Path Investments—Energy Investment Company. Raising £1.4m.  Has joined the Standard List

Off the Menu:

No AIM Leavers Today

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?

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.

K3 Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC.

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

Keras Resources (KRS.L) 0.4p £6.88m

Keras Resources announced its intention to target exposure to the high growth battery market with emphasis on the metals used in the production of cathodes. A total of five exploration licence applications have been submitted over 1,000 square kilometres of ground in West Africa that cover previously discovered cobalt and nickel mineralisation. Average rock chips from mineralised zone grade at 0.82% nickel and 0.19% cobalt, with highs of 1.4% Ni and 0.25% Co. Cobalt prices have increased 100% in the past six months and supply/demand fundamentals support onward positive price movement. Grant of licences would provide AIM investors with a unique opportunity to gain exposure to the high-growth battery industry through the development of three complementary commodities: cobalt, nickel and manganese.

 

Accesso Technology Group (ACSO.L) 1570p £351.68m

The technology solutions provider to leisure, entertainment and cultural markets, announced the acquisition of Ingresso Group Limited, a Global Distribution System for entertainment ticketing. Initial cash consideration of £17.5m with an additional payment in respect of surplus working capital in the business at closing of £1.3m, plus an earn out payment.  During the year to 31st December 2016, Ingresso recorded revenue of £43.1m, profit before tax of £0.6m, profit after tax of £1.3m and had net assets of £1.6m. The Board expects the Acquisition to be earnings accretive in 2017. Has entered into £0.5m subscription agreement with Ingresso’s CEO at £15.78m with various lock ins over 3 years. FYDec17E of £90m and £13.9m PBT.

Ideagen (IDEA.L) 76.5p £151.56m

The supplier of information management software to organisations in highly regulated industries, has secured two new SaaS contracts from leading Tier 1 global airlines. The combined total contract value is approximately £1.8m which will be recognised over 5 years. These contracts strengthens Ideagen’s position in the aviation safety sector represent the first sales of Coruson which provides, a scalable and fully integrated safety platform, to Tier 1 airlines. The company already provides software and services to over 100 regional and national airlines including Emirates, KLM, Thomas Cook, Brussels Airlines, Spirit Airlines and Air Transat. FYApr17E rev of £26.2m and £6.9m PBT.

Bushveld Minerals (BMN.L) 7.95p £58.03m

The diversified mineral development company with a portfolio of vanadium, titanium, iron ore, tin and coal assets in Southern Africa, announces that Bushveld Vametco Limited has signed the final elements of the financing agreements in support of the acquisition from Evraz Group S.A of a 78.8% shareholding interest in Strategic Minerals Corporation, with Barak Fund SPC Limited. Includes  a $11m bridge loan facility repayable within 2 months of drawdown and an inventory facility of up to $7m. In addition to cash resources it holds, Vametco has working capital financing of up to US$13 million. “We look forward to working together with Barak, in addition to Wogen Resources Limited, as we leverage the production platform of Vametco to build a deeply integrated vanadium platform.”

 

LEKOIL (LEK.L) 21p £112.67m

The oil and gas exploration, development and production company with a focus on Africa, announced a commercial offtake agreement with Shell Western Supply and Trading Limited, a subsidiary of Royal Dutch Shell. The agreement is in respect to the sales of its crude entitlement from the Otakikpo marginal field. Pricing will be determined at future spot market prices, net of marketing costs. The offtake contract allows Shell to undertake the lifting of Otakikpo crude from the FSO Ailsa Craig. All crude sales will be done at the prevailing market price. The Company expects the first lifting from the IMA Terminal to commence early in Q2. FYDec17E rev of £124m and £60m PBT.

 

GBGI (GBGI.L) 141.5p £123.05m

HYDec16 results from the  integrated provider of international benefits insurance. Strong first half performance, with Gross Written Premiums up 12.2% to US$106.0m. Increased retention of risk premium, with Net Written Premiums  increasing 34.3% to US$75.9m. Total revenues up 22.0% to US$62.1m. Profit before Tax grew 10.7% to US$5.2m. Intends to declare maiden FY dividend. “We are seeing continued momentum in the second half of the current fiscal year, giving us confidence that we can continue to grow our business in both existing and new territories, with Gross written premiums trending well and a solid revenue outlook for the full year.” There are no market forecasts.

 

Tribal Group (TRB.L) 80.5p £157.3m

FYDec16 numbers from the provider of software and services to the international education management market. Adjusted operating profit for the year up 88% to £4.7m. Annual recurring revenue increased by 7% to £32.4m. Annualised operational efficiencies achieved of £9.0m, including £5.8m in year savings; further efficiencies anticipated in 2017. Strong operational cash inflow during the year of £8.3m (2015: cash outflow of £6.2m) and year end net cash of £8.8m (2015: net debt of £32.5m). Expects demand to remain stable in 2017. ‘While the timing of deal closures and achievement of implementation milestones remains difficult to predict, we are well positioned to continue to benefit from the demand for student systems and upgrades.’ FYDec17E £84m rev and £5.6m PBT.

 

Ncondezi Energy (NCCL.L) 8p £20m

Update in relation to its 300MW power plant project  located near Tete in northern Mozambique and the previously announced Joint Development Agreement with Shanghai Electric Power Co  (SEP). Currently in advanced negotiations with SEP to finalise a development funding agreement pursuant to which SEP will provide up to $3.0 million to fund a development program and budget to obtain the Decree and finalise the Investment Agreements. The Decree and JDA are targeted for completion in Q1 2018 with Financial Close. Work is also progressing in regard to the vital Power Purchase and Concession Agreements as well as with project financiers in China

 

Be Heard Group (BHRD.L) 3.53p £27.57m

Maiden FY DEC16 results from the digital marketing services group.        Billings £28.85m, Net Revenue £9.5m, Trading EBITDA  £2.4m, Operating Profit, £0.8, loss per share of 1p. Underlying net revenue growth of c.16%. Post period end Acquired fourth partner company Freemavens – funded via a cash placing of £2.1m. Early months of the year have seen the business trading well and in line with management expectations. Strong and growing acquisition pipeline. FYDec17E rev of £19.5m and PBT of £2.3m.

 

Via Developments (NEX:VIA1) 100p £4.5m

On the 27 March 2017, Via entered into an Exclusivity Agreement to sell Plymouth Grove, Manchester, a residential development site, for the sum of GBP 2,500,000. The original purchase price of Plymouth Grove was GBP1,625,000. The purchaser has paid a refundable deposit of GBP100,000 to the company in order  to secure its purchase of the site. Completion of the purchase is subject to, amongst other things, the vendor achieving full planning permission from the Local Planning Department for 61 residential units and the purchaser competing the acquisition within 28 days following the grant of such planning permission.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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