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

Off the Menu:

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.


Breakfast Buffet

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.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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