Latest AIM Breakfast

AIM Breakfasts

AIM BREAKFAST – 16th January 2018

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 960

Total number of AIM Companies trading: 913*
* As at 10 January 2018

Dish of the Day:

Worldpay  (WPG) has left the main market (premium) following a merger with Vantiv. Vantiv shares to be listed and renamed Worldpay Inc (WPY).

Off the Menu:

Servelec has left the main market (premium) following a takeover.

Set Menu ISDX Growth:

Total number of ISDX Growth Market Companies (Incl Susp): 87*

Total number of ISDX Growth Market Companies trading: 82*
* As at 10 January 2018

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

AIM

Block Energy—a UK based oil exploration and production company whose main country of operation is the Republic of Georgia, looks to join AIM end of February 2018. Offer TBC

Cradle Arc—holding company of a group of companies focused on the exploration and development of precious and base metals projects in Africa. Offer raising £2.4m with market cap of £20.13m. Expected late Jan 2018

Volex VLX.L—The global provider of cable assemblies is proposing to move from the main market to AIM on 19 January. £75m market cap. FYMar18E rev £241.5m and £7.19m PBT.

OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m.

Main Market Specialist Fund Segment

Sure Ventures  Raising  up to £50m at £1. Focus on FinTech, IoT and Augmented/Virtual Reality. Postponed to 22 Jan.

Main Market Premium Listing

Press speculation that iconic luxury car builder of James Bond fame, Aston Martin is considering a London IPO with a valuation of up to £5bn

GEMS Education—report by Reuters that the private schools group is seeking a $4.5bn to $5bn London float in 2018. FYAug17 rev $926.2m and adjusted EBITDA $261.6m.

Vivo Energy—The Africa-focused company, which operates around 1,800 Shell forecourts across 16 countries  reported by City A.M. to be preparing for a London float next year

 

Breakfast Buffet

Crossrider (CROS.L) 73.77p £104.6m

Strong FYDec17 (in line) trading update from the consumer security software business.

“Revenues are expected to be in the region of $65.8m (2016: $56.5m), representing growth of c. 16% and Adjusted EBITDA for the year is expected to be c. $8.3m (2016: $6.4m), representing growth of c. 29%.  Strong underlying Adjusted EBITDA growth of c.154%, from core activities, excluding the discontinued Web Apps and License division, highlights the Group’s organic growth and increasingly expansive international customer base for its core software solutions. The Company’s balance sheet is strong with a cash balance at year-end of $69.4m after $7.7m of acquisition related payments (31 December 2016: $72.1m).” The board is confident in delivering year-on-year growth in 2018, in-line with market expectations.  FYDec18E rev $62.12m and PBT $6.3m. PE c.18x.

 

Genedrive (GDR.L) 27.5p £5.1m

The near patient molecular diagnostics company, announced successful results of the first field study of its Genedrive® Hetaptitis C (HCV) ID Kit in Africa.

The study, was designed to verify genedrive HCV’s assay performance across the diverse genotypes which are prevalent in Africa compared to Europe.

In a cohort of 130 clinical samples from South Africa, Kenya, Ghana, Nigeria, Uganda, and other Sub-Saharan countries, the Genedrive® HCV ID Kit demonstrated sensitivity and specificity of 100% compared to the Abbott M2000 HCV Real time assay as a reference.  The cohort was composed mostly of HCV genotypes 1a, 4, and 1b, with the remaining 16% samples from genotypes 2, 3, and 5.  The test also demonstrated efficiency of 95.4% (result achieved first attempt).

 

Thor Mining (THR.L) 1.88p £11.3m

Update on Thor’s interest in US Lithium Pty Ltd, which hold lithium exploration interests in Arizona in the USA.  This follows receipt of advice from US Lithium outlining project progress and corporate activities.

  • A capital raise,  raising A$240,000 Gross. At $A0.12.  This compares with the Thor acquisition of 2.5m shares @ approximately A$0.04/share. Thor equity has been diluted to a 20.83% interest in US Lithium.  Commencement of activities associated with preparation to list on ASX in Australia.
  • Additional claims have been lodged to the south of the Big Sandy project in Arizona, to approximately double the area of the project. Recent field exploration work including additional auger drilling and site mapping.
  • The appointment of MDS of California, USA to complete first stage metallurgical test work.

 

Simigon (SIM.L) 18p £9.25m

FYDec17 trading update from the specialist in simulation training solutions. Expects revenue of approximately $4.3m and an adjusted net loss of approximately $1.1m for the Period. Following delays in concluding Israeli Air Force contract the Board ‘consider that the Company is now well placed for the coming financial year and beyond.’

The Company’s balance sheet remains strong with more than $7.6m of liquid cash as at 31 December 2017.

With a $20m backlog over the next ten years, approximately $5m is expected to be delivered and recognized in 2018.” Pipeline is ’healthy’.

We could see no forecasts.

 

Van Elle (VANL.L) 85p £68m

The geotechnical  engineering contractor offering a wide range of ground engineering techniques and services to customers in a variety of UK construction end markets, notes a £1.6m debt exposure to Carillion and is in discussions regarding this sum. The Group’s order book includes further expected work with Carillion. In total, this represents approximately £2.5m of anticipated revenue for H2 It is too early to say whether there will be any effect on the commencement or completion dates of contracted work. “While it is disappointing to note the Carillion announcement we continue to develop further our strong relationship with Network Rail and its principal contractors, and remain committed to developing high quality solutions in the rail division both for upgrade and maintenance work”. FYApr18E rev £106.8m and PBT £12.45m.

 

Instem (INS.L) 168.5p £26.77m

FYDec17 update from the provider of IT solutions to the global life sciences market.  Financial results for the year ended 31 December 2017 are expected to be in-line with market expectations, with net cash as at 31 December 2017 of £3.1m (2016: £4.2m).

“After slower than anticipated growth in H1 2017 the second half of 2017 has been much stronger. Revenue increases and expense reductions have delivered a strong increase in full-year profit and the sales order pipeline has once again strengthened.”

Separately announced the award of a new two-year SEND (“Standard for the Exchange of Nonclinical Data”) outsourced services contract by a top five global nonclinical contract research organisation, worth in excess of £1.7m over an initial two year period. FYDec17E rev of £22.06m and PBT of 2m.

 

DekelOil (DKL.L) 9.65p £28.7m

DekelOil, operator and 100% owner of the vertically integrated Ayenouan palm oil project in Côte d’Ivoire, is provided a production update for the year ended 31 Dec 2017. The Company is announced that DekelOil achieved record CPO volumes for a Q4 period which, at 7,055 tonnes, were 48.9% higher than Q4 2016.

  • 38,736 tonnes of CPO produced in 2017 (FY 2016:  39,111 tonnes)
  • 2017 revenues, EBITDA and NPAT expected to exceed 2016’s full year reported figures of €26.6m, €4.1m, and €1.3m respectively
  • 22.6% extraction rate achieved in 2017 (2016: 22.9%) – whilst this is still relatively strong compared to DekelOil’s competitors, in-house laboratory analysis shows actual oil content in fruit processed in 2017 was lower than previous years.

 

K3 Capital Group (K3C.L) 179p £75.5m

HY Nov17 results from the  business and company sales specialist in the UK. Revenue +34% to £7.5m. EPS +32% to 6.14p. Div +217% to 2.85p.  Net cash £5m.

December saw a record ever festive period in non-contingent fee income, coupled with more than 20 deal completions across the Group, this delivered an EBITDA in excess of £1m for the month. 

The positive momentum in the business continues to gain pace and the improved performance across all KPIs, coupled with the robust deal pipelines that exist across all three trading brands, lead us to a very positive outlook for both the full year FY2018 and beyond.”

“The Board therefore expects our full year earnings to be comfortably in line with market expectations. “ FYMay2018E revenue £12.6m and PBT £5.4m.

 

Premier Technical (PTSG.L) 187.4p £195.9m

“The niche specialist services provider, is pleased to announce that its results for the year ended 31 December 2017 are anticipated to be in line with the Board’s expectations. In addition, the Board expects that the results for the year ended 31 December 2018 will be materially ahead of current market forecasts. This reflects the strength of the Group’s order book and successful integration, and ongoing progress at its recently acquired businesses. The Board is also pleased to confirm that the integration of the ‘Best’ Lightning Protection business acquired on 4 July 2017 has progressed very well and is nearly complete.” FYDec17E rev £50.8m and PBT of £10.2m.

 

Curtis Banks (CBP.L) 303p £163m

FY Dec17 update from ne of the UK’s leading SIPP providers .

“Consolidation and integration of the Company since the acquisition of the Suffolk Life Group of companies in May 2016 has advanced during the year and the results for 2017 will be the first to include full year results for Suffolk Life.

The Company is pleased to announce that trading during 2017 has been in line with management expectations. The business is well positioned for further growth in 2018.”

Group cash balances at 31 December 2017 amounted to £25.4m gross (2016: £21.5m) and £7.7m net of debt (2016: £0.5m).

FYDec17E rev £42.7m and PBT £10.94m.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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