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AIM Breakfasts

AIM BREAKFAST – 24 April 2018

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 939

Total number of AIM Companies trading: 886*
* As at 24 April 2018

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

Set Menu ISDX Growth:

Total number of ISDX Growth Market Companies (Incl Susp): 86*

Total number of ISDX Growth Market Companies trading: 84*
* As at 24 April 2018

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

AIM

Urban Exposure, a newly formed company which been established to pursue two main strategies in the residential development finance market – asset management of development finance loans and direct lending into development finance loans, looking to join AIM. Offer TBC, expected early May 2018

Rosenblatt Group -specialist litigation and contentious restructuring law firm established in 1989 based in the City of London.  Offer TBC.  Due 8 May.

Supreme, a leading manufacturer and supplier of branded consumer batteries, a manufacturer and supplier of branded and licensed consumer lighting and a leading manufacturer and supplier of vaping products in the United Kingdom, is looking to join AIM. Offer TBC, expected early May 2018

KRM22, a closed-ended investment company with a particular focus on risk management in capital markets, is looking to join AIM. Offer tbc, expected 30 April 2018

Serinus Energy -international upstream oil and gas exploration and production company. Its principal assets are located in Romania (development phase) and Tunisia (production phase).  Raising c.£10m. Offer TBA.  Due mid May.

Main Market Premium Listing

Avast, global cybersecurity provider with 435m users worldwide. In 2017, the Group’s Adjusted Billings was $811 million, Adjusted Revenue was $780 million, Adjusted Cash EBITDA was $451 million.  Seeking to raise $200m. Due in May.

Fundamentum Supported Housing REIT. Raising £150m. Focussed on UK Social Housing assets. Due 2 May

Vivo Energy—retailer and marketer of Shell-branded fuels and lubricants in Africa, Due in May. 100% secondary sell-down of existing Shares by Selling Shareholders,  No new Money. Pricing TBA

Gore Street Energy Storage Fund—Seeking to raise £100m for the purposes of investment in a diversified portfolio of utility scale energy storage projects.  Due 03 May.

Odyssean Investment Trust—Raising £100m at £1. Due 1 May. The Company will primarily invest in smaller company equities quoted on markets operated by the London Stock Exchange.

Finablr  – press reports in ‘Arabian Business’ that Money transfer firms UAE Exchange, Travelex and others under UAE billionaire Bavaguthu Raghuram Shetty’s newly formed holding company Finablr are preparing for a London  IPO

Breakfast Buffet

Prairie Mining (PDZ.L) 32p £52.7m

Update on legal proceedings against Poland’s Ministry of Environment (“MoE”) due to its failure to grant Prairie a Mining Usufruct Agreement over the concessions which form the Jan Karski Mine.

The Polish Civil Court has ruled in Prairie’s favour by granting an injunction preventing the MoE from granting prospecting, exploration or mining concessions and concluding usufruct agreements with any other party until full court proceedings are concluded;

This decision provides security of tenure over the Jan Karski concessions and effectively safeguards Prairie’s rights at the Project until full court proceedings have concluded; and

The Lublin Regional Director for the Environment has issued an official notification indicating that the process to establish an Environmental Consent decision for Jan Karski will be concluded by 30 June 2018, being the final approval required for Prairie to submit a Mining Concession application.

 

Sterling Energy (SEY.L) 12.9p £27.55m

Q1 Mar 18 interim management statement.

Odewayne block, Somaliland; trial line 2D processing ongoing.

Replacement CEO search ongoing.

Continued merger and acquisition (‘M&A’) mandate for growth (asset and corporate options).

Adjusted EBITDA and Exploration Expense loss for the Group of $476k (Q1 2017: $784k loss).

Loss after tax of $497k (Q1 2017: $1.2m loss).

Net cash (zero debt) to the Group as at 31 March 2018 of $47.3m (31 March 2017: $88.0m).

 

Ncondezi Energy (NCCL.L) 5.05p £13.4m

“Update on its process to conclude a binding Joint Development Agreement (“JDA”) for the Company’s integrated 300MW power and coal mine project in Tete Mozambique.

Updated information for the engineering, procurement, and construction (“EPC”) and operations and maintenance proposals were received on the 23 April 2018 deadline.

The new information is currently under internal review by Ncondezi to ensure it is complete and will allow the updating of the integrated financial model. The internal review is targeted for completion by the end of May 2018, and an update will be provided to shareholders at the appropriate time.

There is no certainty that the transactions contemplated by this announcement will occur.”

 

N4 Pharma (N4P.L) 19.88p £18.1m

FYDec17 maiden results from the specialist pharmaceutical company which improves the delivery of existing drugs and novel vaccines and therapeutics

Filing of sildenafil PCT patent application

Filing of additional generic product patent opportunities

Total of £446,429 raised via warrant exercises in 2017 post-RTO

Cash balance at year end of approximately £1.3m

Commencement of in-vivo research programme for Nuvec®

Grant collaboration with MedImmune UK to evaluate Nuvec® technology

Appointment of Andrew Leishman as Head of Nuvec® development

Commencement of sildenafil human clinical trial

Total of £784,404 raised via warrant exercises since 1 January 2018

 

Keystone Law (KEYS.L) 256p £80.06m

Maiden FY Jan 18 results from the UK Top 100, challenger law firm.

Strong Revenue increase of 23.6% at £31.6m (FY2017: £25.6m)

Underlying EBITDA of £3.27m (FY2017: £2.29m) representing growth of 42.7%

Underlying EPS calculated on closing shares of 31 million would have been 8.1p

Proposed 0.84p dividend; methodology as indicated on IPO

Maiden set of final results reported comfortably ahead of market expectations

“This is an exciting time for the business, the market opportunity is substantial and the business is well structured with a clear growth strategy to build on the strong business performance that these maiden results reflect.”

FYJan19E rev £39.1m and PBT £3.8m.

 

First Derivatives (FDP.L) 3750p £962.8m

First derivatives “has continued to trade strongly in the second half of the financial year ended 28 Feb 2018. As a result, the Board now expects to report a financial performance slightly ahead of the current consensus forecasts of £180.2m of revenue and £32.9m of adjusted EBITDA.

The Group has also completed its analysis of the impact of the US Tax Cuts and Jobs Act, which has resulted in a reduction in the US Federal corporate income tax rate from 35% to 21%. The US tax reform is expected to benefit the Group through an ongoing reduction in the Group’s effective tax rate of 4-6%, in our preliminary view.”

FY Feb 19E rev £202.61m and PBT of £26.8m.

 

GRC International Group (GRC.L) 157.5p £90.5m

“The one-stop shop for cyber security and data compliance products and services (including GDPR), announced that trading performance for the year ended 31 March 2018 was ahead of the Board’s expectations and significantly ahead of prior year.

Total billings for the financial year ended 31 March 2018 exceeded £16.2m (2017: £7.3m) representing a 122% organic increase on prior year.  Revenue is anticipated to show a similar level of growth at more than £15m.

There were more than 538,000 website visits in March 2018 compared to 349,000 in Jan 2018. The Directors believe that there is a strong correlation between website visit numbers and billings and consequently expects a strong start to the current financial year.

The Board remain confident of further growth in the current financial year.”

We could see no forecasts.

 

mporium Group (MPM.L) 6.62p £38.95m

FYDec17 results from the technology firm delivering event-driven marketing. Group revenue increased to £2m (FY 2016: £1.8m). Successful placing of £3m in March 2017, and a raise of £3.1m in Dec 2017. Net loss £3.2m. Net cash £2m.

“The Board is confident that a strong foundation was created in 2017, with the increased capability of Mporium’s unique technology and increased market penetration. In 2018, management have focused on further developing the relationships that have been built with agencies, as well as targeting new agencies and brands. The positive momentum generated in 2017 has continued into the new year and the Board is confident that 2018 will be a pivotal and successful year for the Company.”

 

Personal Group (PGH.L) 457p £141.1m

AGM Statement. “Personal Group has had an encouraging start to the year.

The Company’s core insurance business has seen another strong start to the year, with record first quarter sales and productivity.”

“The Company’s technology salary sacrifice business, PG Let’s Connect, has also experienced a strong start to the year. Royal Mail plc, a key customer, launched PG Let’s Connect’s salary sacrifice offer to its employees on the 1st of March, as planned. “

“The Company’s Software-as-a-Service (SaaS) offer, Hapi, continues to perform as expected, with client wins such as Randstad, a global leader in HR services, as a pure ‘SaaS’ client with 4,300 employees. The Company is now in the process of gearing up for the roll out of the Sage Employee Benefits (“SEB”) offer to Sage’s wider client base as a standalone product.”

FYDec18E rev £59.1m and PBT £10.6m.  PE c.16x and yield c.5%.

 

Mosman Oil and Gas (MSMN.L) 0.7p £2.4m

Results of the Moyes & Co. Reserves Report at the Arkoma Stack Pay Project in Oklahoma.

Total Proved + Probable (“2P”) Reserves of 336,000 barrels of oil equivalent (“BOE”) gross.

Contingent Resources of up to 2.4 million BOE (3C, High Case, gross).

2P Reserves net to Mosman of 64,000 BOE.

2P Reserves Net Present Value discounted at 10% of all forecast revenues net of all costs including royalties, capital costs and operating costs (“NPV10”) of $1.23m net to Mosman. This NPV10 is based only on 2P Reserves and does not include any contribution from the value of Contingent Resources.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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