AIM Breakfasts

AIM BREAKFAST – 7th November 2016

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 995

Total number of AIM Companies trading: 973*
* As at 04 November 2016

Dish of the Day:

No AIM Joiners Today

Off the Menu:

No AIM Leavers Today

Set Menu ISDX Growth:

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

Total number of ISDX Growth Market Companies trading: *
* As at 04 November 2016

Dish of the Day:

Off the Menu:

What’s Cooking in the IPO Kitchen?

London & Country Mortgages –Report in the telegraph that the home loan broker hopes to list in 2018

Crawford—City A.M. says that dermatology and wound-care specialist Crawford is considering a market float after the recent success of rival ConvaTec.

Civitas Social Housing –Intention to float on Main Market from the first REIT to be listed on the London Stock Exchange offering pure play exposure to social housing

 

Breakfast Buffet

LightwaveRF (LWRF.L) 13.5p £2.78m

The Internet of Things  provider of the LightwaveRF platform and connected devices enabling domestic and commercial users to remotely monitor and control light, heat, power and security by smartphone, tablet or PC has received an additional order of £240,000 from Megaman, its UK electrical wholesale partner.  Together with other orders received in the period the total company order book now stands at over £1 million.

Amryt Pharma (AMYT.L) 15p £31.25m

The clinical-stage specialty pharmaceutical company focused on best-in-class treatments for orphan diseases, announced that the U.S. Food and Drug Administration has granted orphan drug designation to the Company’s drug compound, AP102, which has the potential to treat patients with acromegaly.  Acromegaly is a rare endocrine disorder in which the body produces excessive growth hormone, leading to abnormal growth throughout the body over time. Important regulatory milestone for Amryt as it prepares to bring AP102 into the clinic next year.

 

YOLO Leisure & Technology (YOLO.L) 1.2p £2.15m

YOLO has raised £2.5m at a price of 1p, a 16.7% discount to yesterday’s close.  The Company will invest approximately £1.4 million in Magic Media Works Limited through secured convertible loan notes.  Magic Works has developed the Electric Jukebox,  a premium ad-free music streaming service and associated player.   The remainder of the funds raised will be used to provide the Company with additional funds for working capital and investments.

 

Cambium Global Timberland (TREE.L) 6.25p £5.13m

Cambium has entered into a wood supply agreement with SUZANO PAPEL E CELULOSE S.A, a publicly owned Brazilian pulp and paper company, to sell to Suzano substantially all of the standing timber on Cambium’s 3R property in Tocantins state, Brazil. The agreement is expected to generate an income to Cambium approximately equalling the current book value of the trees (before legal and financial advisory costs related to the transaction. This sale is part of the planned orderly realisation of Cambium’s assets.

 

Accrol Group Holdings (ACRL.L) 117.5p £109.3m

H1 Oct 16 trading update from the independent tissue converter.  Trading in-line. The Company has continued to win new business with existing customers in addition to the previously announced new £10m contract gain, now confirmed as Lidl. Installation of two high-speed converting lines in the new 168,000 sq. ft. manufacturing facility in Leyland is well underway and will increase total capacity to 143,000 tonnes per annum.  FYApr17E revenue £128.7m, EPS 10.2p. PE 11.5x.

 

Ideagen (IDEA.L) 52.75p £95.8m

H1 Oct16 trading update from the supplier of Information Management Software to highly regulated industries. Trading remains strong. Revenue and adjusted EBITDA are expected to show a significant increase over the same period last year through a combination of organic growth and the acquisition of Covalent. The Group expects to report organic revenue growth of approximately 16% together with a small contribution from Covalent which was acquired in August 2016. In-line with market expectations. FYAPR2017E rev £25.4m, PBT £6.7m, Eps 3.1p, Div 0.2p

 

Sovereign Mines of Africa (SMA.L) 0.72p £6.24m

The Company has entered into an agreement with Volcanic Metals Corp. (TSXV:VOL) to farm-out its 75% interest in the Mandiana Gold Project in the Republic of Guinea, West Africa. In consideration, SMA will receive common shares in Volcanic representing 9.9% of the outstanding share capital of Volcanic.  The Company currently carries its Guinean assets in the books at nil value. The Company will on completion become an AIM Rule 15 cash shell. Due diligence underway on potential new mining acquisition.

 

EKF Diagnostics (EKF.L) 16.12p £74.86m

The point-of-care business, announced that early trading in Q4 of the current financial year has again been materially higher than budget and at a run-rate in excess of already revised market forecasts, upgraded following the trading update provided on 7 October 2016. The Company now believes that it will achieve revenues of at least £36.5m and adjusted EBITDA for the year ending 31 December 2016 of at least £5.5m, therefore exceeding current market forecasts. The strong performance of the business is due to organic growth.

 

Redcentric (RCN.L) 150p £220.75m

The IT managed services provider, announced that an internal review by the Company’s audit committee in relation to the interim results for the six months ended 30 September 2016 has discovered misstated accounting balances in the Group’s balance sheet. Audited accounts for previous years are likely to need to be restated, resulting in some write down in historic profits. Current indications are that all issues relate to prior periods. Likely £10m reduction in NAV and material errors in previous net debt guidance. The Company has served notice on its CFO.

 

Surgical Innovations (SUN.L) 3.22p £15.76m

The designer and manufacturer of innovative medical technology for minimally invasive surgery, has completed the acquisition of the laparoscopic instruments business and related assets of Surgical Dynamics Limited for a cash consideration of approximately £0.36m. Consideration will be funded from existing cash resources. SDL specialises in the design, development and rapid prototyping of a range of medical products. Revenues for the year ended 31 December 2015 amounted to £0.12m and loss before tax was £0.17m.

 

Head Chef:

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

*A corporate client of Hybridan LLP

Disclaimer

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 such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. Recipients should make their own investment decisions based upon their own 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, they have not been independently verified and are not guaranteed 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, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such.

Any and all opinions expressed are current opinions as of the date appearing on 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, directors, 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, does not constitute “independent investment research” for the purposes of the Financial Conduct Authority rules. The individuals who prepared this document 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, directors, 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 UK, 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 (as amended) or (ii) are Professional Clients or Eligible Counterparties (as those terms are defined in the rules of the Financial Conduct Authority) 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 persons who would be classified as Retail Clients (as defined by the rules of the Financial Conduct Authority).

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 UK or US securities law, or the law of any such other jurisdictions.

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, directors, 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.

Neither the whole nor any part of this document may be duplicated in any form or by any means. Neither should this document, or any part thereof, be redistributed or disclosed to anyone without the prior consent of Hybridan LLP.
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 enquiries@hybridan.com with “unsubscribe me”.