Small Cap Feast
Small Cap Feast – 3rd October 2016
Set Menu AIM:
Total number of AIM Companies (Incl Susp): 997
Total number of AIM Companies trading: 977*
* As at 30 September 2016
Set Menu NEX Growth:
Total number of NEX Growth Market Companies (Incl Susp): *
Total number of NEX Growth Market Companies trading: *
* As at 30 September 2016
Set Menu Standard List:
Total number of Standard List Companies (Incl Susp): *
Total number of Standard List Companies trading: *
* As at 30 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
Dish of the Day:
Off the Menu:
What’s Cooking in the IPO Kitchen?
ConvaTec — The medical products manufacturer is expected to announce a planned London IPO according to City A.M. Other reports suggest a valuation of circa £5 billion.
Mila Resources—The natural resources focused company has published a prospectus in relation to a main market listing and £1.1m raise at 5p.
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.
AFH Financial (AFHP.L) 162.5p £39.11m
The financial planning led wealth management firm has acquired the assets of CRS Financial Planning (“CRS”), an East Anglian based IFA, which was completed on 30 September 2016. Following the acquisition Chris Stapleton, the vendor, will retire from the business and clients will be serviced by existing AFH advisers. The maximum consideration payable by AFH is £663,670, representing approximately 2.6% of the Funds under Management. CRS will add approximately £25m to AFH’s funds under management.
Spectra Systems (SPSY.L) 24.63p £11.01m
The provider of technology for secure transactions, from banknotes and products, to electronic gaming has announced that on 30 September it executed a contract with a G7 Central Bank customer for a five year material supply agreement. Bringing this in house will allow for a 35% increase in blended gross profit on such materials, once existing inventories for other end customers are used. There are no forecasts in the market.
Corero Network Security (CNS.L) 10.13p £20.6m
The network security company has announced three customer orders for its SmartWall® Threat Defense System (“SmartWall TDS”) from leading European companies in the online gaming and gambling market. The orders, with an aggregate value of over $0.6 million, follow successful Proof of Concept trials and competitive procurement processes. FY2016E forecasts £7.88m and a pre-tax loss of £7.49m
Victoria (VCP.L) 327p £297.47m
The international designers, manufacturers and distributors of innovative floor coverings, has acquired the business and assets of UK underlay manufacturer, Ezi Floor for an initial cash consideration of £6.5m and deferred consideration of £6.5 million. The Acquisition will be immediately earnings accretive. The Board of Victoria expects Ezi Floor to record EBITDA of approximately £2.4 million for the year ended 31 March 2017. Total net assets acquired on completion were approximately £5.1 million. Victoria is on a FYMar17E PE of 14.5x.
Amerisur Resources (AMER.L) 24.5p £295.98m
The oil and gas producer and explorer focused on South America, has updated on its wholly owned OBA interconnector pipeline between Colombia and Ecuador. Construction is complete and all necessary instrumentation testing has been successfully completed. The full documentation of the line systems, together with the successful testing results have been delivered to SHE / ARCH, the regulatory bodies of Ecuador. As soon as ARCH issues the decree to begin operations pumping will begin at an initial rate of 1,500 BOPD.
Cyan Holdings (CYAN.L) 0.19p £26.64m
The leader in narrowband RF networks for Omni IoT communications has announced an increase in JST Thailand’s strategic investment via a £1,050,000 subscription at 0.18p, a 2.7% discount to Friday’s close. This brings JST’s stake to 11.3%.
Kodal Minerals (KOD.L) 0.13p £4.72m
The mineral exploration and development company with interests in West Africa, announced that the Company has raised a total of £750,000 at 0.1p per share. The net proceeds of the Placing and Subscription will be used to launch an exploration programme at the Company’s recently acquired 500km2 Bougouni Lithium Project in Mali, in addition to funding working capital requirements. A further 21.4m shares have been issued to certain advisers and consultants in accordance with contractual arrangement.
Arria NLG (NLG.L) 18.13p £22.42m
The specialist in artificial intelligence and natural language generation has reached agreement with investors, subject to the completion of the relevant documentation, for the subscription of approximately £2.7 million of unsecured convertible loan notes. The proceeds of the issue of Loan Notes will be applied to satisfy the Company’s general short term working capital requirements.
Personal Group (PGH.L) 455p £139.2m
The provider of employee service, benefits and employee related insurance products in the UK, has signed a four year agreement between a large employer and Lets Connect for the provision of technology products to its workforce. This allows their employees to select various technology products which they can then pay for via payroll deduction. FY Dec 2016E forecasts suggest £66.8m revenues and 21.8p EPS. PE 20.8x. Yield 4.8%.
Renew Holdings (RNWH.L) 367.75p £229.17m
Trading update from Engineering Services Group supporting UK infrastructure ahead of its annual results for the financial year ended 30 September 2016 which will be announced on Tuesday 22 November 2016. Trading in line with market expectations, demonstrating further growth in both revenue and operating profit together with an increase in operating margin. The Board also expects to report that the Group has moved to a net cash position. FYSep16E revenues of £524.6m, EPS of 27.35p, total dividend of 8p.
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 any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective 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, such information has not been independently verified and therefore it is not possible to confirm such information 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, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.
The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).
Any and all opinions expressed are current as of the date appearing on this face of 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, 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, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, 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, 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 United Kingdom, 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 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) 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 any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.
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 territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.
Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.
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, 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.
This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.
MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.
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 email@example.com with “unsubscribe me”.