AIM Breakfasts

AIM BREAKFAST – 3rd February

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 972

Total number of AIM Companies trading: 946*
* As at 02 February 2017

Dish of the Day:

Diversified Gas & Oil (DGOC.L) joined AIM today raising £39.7m at 65p for a market capitalisation of c£68.6m

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 02 February 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?

Arix Bioscience — Intention to float on the main market from the  global healthcare and life science company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management

Eco (Atlantic) Oil & Gas—Schedule One Update. Now expects admission ‘early February’.

Ramsdens Holdings –Schedule One from the financial services provider and retailer, operating in the core business segments of foreign currency exchange, pawnbroking loans, precious metals buying and selling and retailing of second hand and new jewellery. Expected admission to AIM 15 Feb raising circa £15.6m. Expected mkt cap £26.5m.


Breakfast Buffet

Haydale Graphene (HAYD.L) 178.5p £31.15m

The global nanomaterials group has announced a proposed strategic investment of £3.3m by Everpower International Holdings Co. Ltd, a New York-based investment company, engaged in investing in leading edge technologies and integration of these technology into China and which has existing graphene interests in China. This would give Everpower a 9.9% stake in Haydale. The parties have also entered into non-binding heads of terms as a pre-cursor to entering into an exclusive binding collaboration agreement to manufacture, supply and market existing Haydale products and develop nanomaterials and new graphene products for the Chinese market. The Company has also provided a trading update. Short term revenues slower than anticipated but product development moving ahead strongly.


Marlowe (MRL.L) 392.5p £121.35m

The support services group focused on acquiring and developing companies that provide critical asset maintenance services, has acquired BBC Fire Protection Limited (BBC) for £4.1 million on a cash and debt free basis. For the year to 31 December 2015, BBC reported audited revenues of £9.1 million, adjusted EBITDA of £1.0 million and profit before tax of £0.6 million. Unaudited net assets on at 30 November 2016 were £5.9 million. The Acquisition will be financed from the Group’s existing cash resources. The total consideration payable is £8.3 million, which includes £4.2 million of net cash held by BBC and a long leasehold property valued at approximately £0.5 million. Immediately earnings enhancing. FYMar17E rev £41.6m and PBT of £2.9m.


Zamano (ZMNO.L) 3.5p £3.5m

The European provider of interactive applications and services to mobile devices, provides a trading update following the introduction of Payforit in the UK and the possible implementation of regulatory change in Ireland. Payforit is a joint initiative of mobile network operators in the UK to regulate mobile payments and its implementation represented a significant regulatory change in the operating environment in the UK  This has been detrimental to Zamano. The Board believes that it is necessary for the Company to take the decision to formally wind down the existing business lines in order to protect the cash position on the balance sheet. The Board is also currently considering alternative strategic options that are being assessed.


Smart Metering Systems (SMS.L) 574p £513.67m

The integrated metering services company that installs, owns and manages utility metering assets has updated for FYDec16. The Company’s continued investment in its gas and electricity metering portfolio saw the total number of assets under management increase by approximately 28% to 1.25m by 31 December 2016. This figure includes 51,000 gas and electricity domestic smart meters installed towards the end of 2016, in the new domestic smart meter market. Total annualised recurring income increased by 20% to £41.3m. Financials are expected to be in line with market expectations. FYDec16E rev of £59.97m, PBT £20.55m, div 3.86p.


AdEPT Telecom (ADT.L) 317.5p £71.39m

he UK independent provider of unified communications has signed a £30 million 5 year revolving credit facility agreement with Barclays and RBS. AdEPT has also acquired Our IT Department and its trading subsidiary  Brightvisions for an initial consideration of £4.75m less net debt plus working capital. Deferred up to £3.75m gross, Both are both well-established UK based specialist providers of IT Services. Expected to be earnings enhancing from completion. Long term relationships with medium to large enterprise customers. FYDEc15 : Our IT £3.71m rev, PBT £0.26m. Brightvisions £1.47m and £0.17m. FY Mar17E £33.1m and £6.4m PBT.

European Metals (EMH.L) 43p £51.12m

EMH released analytical results for two drillholes from the recently completed drilling in the Cinovec Main sector of the deposit. These results confirmed or exceeded the expected lithium content and mineralisation widths. In addition, the Cinovec South Resource has now been added to the Czech State resource register. This is the first step in the process for the granting of a mining permit. Hole CIW-22 contains the best lithium intercept to-date from the Company’s drill programme of 264.5m averaging 0.54% Li2O.     Hole CIW-26 returned an interval of 236.25m averaging 0.49%Li2O. All remaining analytical results from the program will be released next week.


CORETX Holdings (COR.L) 30p £57.27m

FY Dec16 trading update from the mid-market network, cloud and IT managed services provider. The Business has continued to perform broadly in line with expectations with revenues anticipated of approximately £43.5 million and trading EBITDA in the region of £5.9 million for the full year. The anticipated improvement in performance in the second half of the year was delivered, with revenues and gross margin expected to show increases of 9% and 6% respectively compared to the first half on a proforma basis. Two businesses acquired/integrated and a rebranding. Recurring revenues and associated margins up.


Victoria Oil & Gas (VOG.L) 37p £40.77m

Q4 ops update from the Cameroon energy utility. Increase in average gas production to 7.64mmscf/d in Q4 2016 (Q4 2015: 7.14mmscf/d). 24% increase in gross Logbaba gas sales of 3,566mmscf for the year. Logbaba drilling programme progress to 31 December 2016: Rig spudded at both twin and step out wells; La-107 at 1,618m; La-108 at 1,173m.

15km pipeline commissioned as part of the Bonaberi extension. Three new thermal customers on the new Bonaberi extension were commissioned and consuming gas in Q4. Q4 $4.6 million revenue (Q3 2016: $4.7million).


Anpario (ANP.L) 270p £61.73m

The international producer and distributor of natural feed additives for animal health, hygiene and nutrition has acquired the business and assets of Cobbett Pty Ltd. Cobbett has been Anpario’s distributor since 1987 supplying Australia, New Zealand and Papua New Guinea with a number of Anpario’s key product brands. In the year to 30Jun16 Cobbett had sales of A$1.76m. The initial consideration is A$700k plus stock as valued plus a further A$300k should the business achieve certain profit targets over a 12 months. A significant proportion of Cobbett’s business is with the Anpario product range, which drove the logic for the acquisition. However, Cobbett also distributes other complementary products which it will continue to do so . PE 17.8x. Yield 1.9%


Goldstone Resources (GRL.L) 1.53p £1.56m

The Company focused on gold exploration in Central and West Africa, announced  results of a short shallow auger drill programme completed to test areas parallel to the existing JORC Code compliant resource for Homase-Akrokerri. Programme undertaken to test 3 of the initial 9 targets identified from the review of the 2012 VTEM survey comprising –   36 holes sampling 86 metres at Akrokerri (Eureka SW) –   104 holes sampling 218metres at Homase (Eureka and Eureka NE)   Assay results from all three targets demonstrate some degree of gold anomalism. These results will be integrated into the 2017 drilling programme which will focus on resource conversion drilling, expanding the existing Homase resource and will also target other areas of interest within the licences.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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