AIM Breakfasts

AIM BREAKFAST – 8th December 2016

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 987

Total number of AIM Companies trading: 962*
* As at 07 December 2016

Dish of the Day:

No AIM Joiners Today

Off the Menu:

Cancellation of Bond International Software following cash offer , and Sierra Rutile following merger completion.

Set Menu ISDX Growth:

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

Total number of ISDX Growth Market Companies trading: 81*
* As at 07 December 2016

Dish of the Day:

No ISDX Growth Market Joiners Today

Off the Menu:

No ISDX Growth Market Leavers Today

What’s Cooking in the IPO Kitchen?

Creo Medical group—Schedule 1 update.. £20m raise. Expected market cap £61.2m, admission expected 9 December.

ECSC—Schedule 1 from provider of cyber security services. Raising £5m. Vendor sale £0.8m. Target date 14 Dec. Expected market cap £15m.

RM Secured Direct Lending  –  The secured direct lending fund  intends to float on the Main Market on 15 December raising up to £100m


Breakfast Buffet

Armadale Capital (ACP.L) 4.25 p £7.1m

The investment company focused on natural resource projects, announced a maiden JORC compliant inferred mineral resource estimate of 40.9Mt @ 9.41% Total Graphitic Content (TGC) for its 100% owned Mahenge Liandu graphite project in Tanzania. At least 32Mt of this resource has an average grade of 10.47% TGC – one of the largest high-grade resources in Tanzania. Work to date has demonstrated Mahenge Liandu’s potential as a commercially viable deposit with significant tonnage, high-grade coarse flake and near surface mineralisation (implying a low strip ratio) contained within one contiguous ore body. Additional drilling, to test extensions to the current resource and to upgrade the resource classification, is scheduled for H1 2017.


IMC Exploration Group (ISDX:IMC) 1.5p £1.6m

In conjunction with its joint venture partner Koza Limited, IMC has recently commenced an extensive target generation, mapping and rock sampling programme on its Goldmines River licence PL 3857 in Co. Wicklow, and on licence PL 2551 in Co. Wexford. This work, scheduled to commence in early 2017, is in addition to the previous drilling programme, and is part of the works programme on our five precious metal Licence Areas, and is essential preparatory work for the next phase fully funded drilling programme.


Servoca (SVCA.L) 20p £24.8m

In line FY Sep16 results from the provider of staffing solutions and outsourced services with established operations across the UK. Revenue £69.2m up 17.7%. Profit before taxation* £3.5m up 16.7%. Basic EPS of 2.25p up 17.8%. Dividend of 0.35p up 16.7%. “The Group enters the current year with positive momentum in all areas other than Education and Domiciliary Care. The scale of this positive momentum enables us to be optimistic about our financial performance in the current year and beyond. We continue to face the future with confidence.” Sub 10x PE. No 2017 forecasts in the market.


Private & Commercial Finance (PCF.L) 30p £51.04m

18 mth results to Sep16 from the finance house. Adjusted PBT of £5.6m. 12 months underlying profit before tax was up 38% to £4.0 million. Return to the dividend list with a recommended final dividend of 0.1p per share. Over £100 million of new business volume for the 18 months period. Total portfolio growth of 13% to £122 million. “By establishing itself as a bank the Group will, for the first time, be on an equal footing with its competitors with regard to funding cost. We therefore see opportunity and do not expect the forecast lower economic growth in the UK to undermine our current strategy.” FYSep17E revs £63.4m, PBT £4.11m.


Dalradian Resources (DALR.L) 80p £193.9m

Dalradian announced results from a third test stope at its Curraghinalt Gold Project in Northern Ireland. Stope 3 is located on the V-75 vein complementing two previous test stopes in the same area. The third stope was used to validate the long-hole mining method on a relatively shallow dipping  portion of the vein in comparison to Stopes 1 and 2. Stope 3 attained an average width of 1.80 metres, with estimated dilution to the designed stope of 64% and removal of an estimated 303 oz of gold at 9.41 g/t from 1,001 tonnes material, 35% more gold than predicted in its resource model.


Surface Transforms (SCE.L) 23.75p £21.41m

H1Nov16 trading update from the manufacturer of next-generation carbon ceramic brake discs for the automotive and aircraft industries. Revenue for the period was £327k (2015: £782k) and whilst less than the corresponding period last year, is in line with management expectations. Whilst the Company expects FY sales and gross margins will be broadly similar to prior year, increased overheads reflecting additional costs of the new larger site, and R & D costs are expected to mean that losses will be higher than the prior year, but within the range of broker expectations.


Synectics (SNX.L) 185p £32.9m

FYNov16 trading update from the specialist in the design, integration, control and management of advanced surveillance technology and networked security systems. Revenues approximately £71m vs £68.5m.  Underlying results are anticipated to be in line with market expectations. Oil & Gas tough but gaming exceptionally strong with wo major new-build casino projects being delivered in the Far East. FYNOV16E rev £75.2m, PBT £2.4m.


BNN Technology (BNN.L) 144p £295.6m

Strategic & Trading Update from the Chinese technology, content & services company. Gross sales of approximately RMB 1.3 billion Q4-to-date.  Exceeded RMB 1 bn (c£120m) in Nov 2016 after 4x increase in volumes versus October.  Business activity accelerated, supported by investment brought forward into FY2016. Entry to fast growing Chinese digital advertising market with significant new contract. Further contracts including prestigious content agreements, expected before year-end. Nasdaq process well advanced. Investing heavily in R&D.


Van Elle Holdings (VANL.L) 115p £92m

HY Oct 16 trading update from the geotechnical contractor offering a wide range of ground engineering techniques and services to customers in a variety of UK construction end markets. Trading was in line with Board expectations, with high levels of enquiries and an order book as at 1 November 2016 ahead of the start of the period. Group well positioned for H2, which is traditionally the busier period and includes work in the Specialist Piling division scheduled over the Christmas holidays and a number of anticipated contract awards and starts in the new calendar year.


Pressure Technologies (PRES.L) 137.5 p £19.9m

Acquisition of UK based Martract Limited, a profitable, cash generative engineering business that specialises primarily in the grinding and lapping of ball and seat assemblies and gate valves.  The business is well known to the Group and has been a key supplier over 15 years. The Acquisition is a strong strategic fit with the Precision Engineering Division. Max consideration  £4.3m. The Board expects that the Acquisition will be immediately earnings enhancing. For FYAug16 Martract had revenues of £1.2m and adjusted proforma EBITDA of £0.45m.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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