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AIM BREAKFAST – 22nd November 2017

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 950

Total number of AIM Companies trading: 904*
* As at 21 November 2017

Dish of the Day:

No Joiners Today

Off the Menu:

ASA Resource  (ASA.L) has delisted from AIM. Joint administrators were appointed in July

Set Menu ISDX Growth:

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

Total number of ISDX Growth Market Companies trading: 81*
* As at 21 November 2017

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

AIM

Belluscura— Provider of premium medical devices at value prices to address part of the global unmet need for affordable, premium quality medical devices.  Raising £7.5m to £10m. Offer TBA. Due early Dec

Ten Lifestyle Hldgs – Technology-enabled lifestyle and travel platform providing trusted concierge services to the world’s wealthy.  Net revenue increased from £20m in the year ended 31 August 2015 to £33m in the year ended 31 August 2017, a compound annual growth rate of 29%.  Offer TBA, expected 27 Nov 2017.

Miriad Advertising—Global video advertising company incorporated in 2015 and is engaged in the development of native in-video advertising . 2016 rev £0.7m and £7.3m operating loss. Offer TBA

Keystone Law Group— full service law firm with over 250 self-employed lawyers . Due 27 Nov. Raising £10m at 160p. Mkt Cap £50m. Revenue of £25.6 million and EBITDA of £2.1 million. In FYJan17.

Beeks Financial Cloud –niche cloud computing and connectivity provider for automated (algorithmic) trading in Forex and Futures financial products . Raising £7m. Mkt Cap c.£24.5m. Due 27 Nov. FYJun17 rev £4m. Profitable at operating level.

City Pub Group  – owner and operator of an estate of 34 premium pubs across Southern England. £30m raise. Consistent track record of strong revenue and EBITDA growth, with a three year CAGR from FY14 to FY16 of 34.9% and 44.8% respectively, and an EBITDA margin of 14.7% in FY16. Due late  Nov. Offer raising £46.6m at 170p with market cap £96m.

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.

OG Graphite, brownfield development-stage graphite company focused on the reactivation of its wholly-owned Kearney natural flake graphite mine and mill located 280 km north of Toronto, Canada. Offer TBA, expected mid November.

Main Market Specialist Fund Segment

Sure Ventures –Raising  up to £50m at £1. Focus on FinTech, IoT and Augmented/Virtual Reality. Due 30 Nov.

Main Market Standard Listing

Shefa Yamin minerals company focused on the exploration for precious stones in Northern Israel. Net Proceeds will be used to advance the Company’s mining project. Offer TBA.

Main Market Premium Listing

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

Aberdeen Standard European Logistics Income—Investment Trust targeting £250m raise. Investing in a high quality portfolio of European logistics assets. Due 15 Dec.

Tri-Pillar Infrastructure— Investing a broad range of infrastructure assets located predominantly in continental Europe and North America . Seeking £200m raise at 100p.  Due 8 December.

Sabre Insurance Group—Private motor insurance underwriter, founded in 1982. Raising c.£213m. C.£206m to purchase outstanding preference shares.  Generated gross written premiums  in 2016. Due December.

Aviva Investors Secure Income REIT  – Targeting £200m raise. Will invest in a diversified portfolio of high quality, long-lease commercial real estate assets located within the UK and leased to predominantly investment grade tenants. Due 8 Dec.

M7 Multi-Let REIT—Intends to raise up to £300m at 100p.  Aims to acquire and hold a portfolio of UK regional light industrial and regional office assets diversified by geography, asset type and tenants that is expected to generate stable income returns and, where appropriate, offer the potential to leverage and enhance returns through active asset management initiatives. Due 30 Nov.

 

Breakfast Buffet

Creightons (CRL.L) 37.25p £22.57m

HYSep17 results from the group involved in creating the finest quality personal care and beauty products.  Revenue increased by 7% £16.7m. (2016: £15.6m).

“Sales of our branded products for the first 6 months have exceeded group growth at 12% through existing customers, new export markets and ongoing development of licenced brands.”

  • Operating profit margin of 5.8% (2016 5.1%).
  • Profit before tax increased by 21% to £956,000 (2016: £790,000).
  • Diluted EPS 1.09p (2016: 1.00p)
  • ROCE 10.7% (2016: 9.5%)
  • Paid final dividend of 0.23p per ordinary share in August 2017 (2016: No dividend).
  • Interim dividend of 0.15p per ordinary share to be paid in December 2017. We could see no forecasts.

 

Harvest Minerals (HMI.L) 13.5p £17.23m

The fertiliser development company, is pleased to provide positive leach test results for KPfértil, its direct application natural fertiliser and remineraliser product produced at the Company’s Arapua Fertiliser Project in Brazil. The test results demonstrate the superior behaviour of KPfértil over other traditional sources of potassium. 

Results indicate that only 0.07% of the contained potassium (‘K’) provided by KPfértil was lost from the soil due to leaching compared to 20.8% of the contained K lost due to leaching from conventional sources including potassium chloride (‘KCl’), 19.2% from potassium sulphate (‘K2SO4’) and 21% from potassium Nitrate (‘KNO3’)

 

Breedon Group (BREE.L) 83.5p £1.2bn

Trading update. “Breedon delivered another solid performance in the 10 months to 31 Oct 2017. Both volumes & revenues were ahead of the prior year, including a full 10-month contribution from the former Hope Construction Materials business, which was part of the Group for only three months in the corresponding period of 2016. Group sales volumes of aggregates increased by 47%, asphalt by 2% and concrete by 99%t. Our cement business is performing in line with our expectations1. Total Group revenue for the period increased by 56% to approximately £561m. Assuming normal weather conditions for the remainder of the financial year, the Group’s underlying EBIT for the full year is expected to be in line with current market expectations.” New infrastructure and housing work – 2/3 of end markets—are expected to show healthy growth over the next 2 years. FYDec17E rev £668.98m, PBT £81.3m.

 

Finsbury Food (FIF.L) 105.1p £137m

“The leading UK speciality bakery manufacturer of cake, bread and morning goods for both the retail and foodservice channels, announced that trading for the first four months of the new financial year is in line with expectations. Total Group sales revenues grew by 4% to £105.5m during the first four months of the 2017/2018 financial year. This is a pleasing performance which shows resilience and recognises that the UK retail food market has recently transitioned from a deflationary to an inflationary environment.”

FYJun18E rev £313.3m and PBT £17.4m.

 

Best of the Best (BOTB.L) 275p £27.84m

“The principally online organiser of weekly competitions to win luxury cars, is pleased to announce that trading for the six months ended 31 October 2017 has been solid, with revenues and profits before tax generated in line with management’s expectations.

The Board is also pleased to report that revenues attributable to online sales continue to grow in accordance with the Company’s stated strategy to move away from the reliance on physical sites at retail locations and airports.” FYApr18E rev £11.5m and PBT £1.6m.

 

dotDigital Group (DOTD.L) 91p £268.98m

The provider of intuitive SaaS and managed services to digital marketing professionals, through the ‘dotmailer’ platform, announces that it has completed the acquisition of the Comapi group of companies, a fast-growing business focused on the omni-channel messaging and cloud communication market, for a cash consideration of £11m. Potential further consideration of up to £1.2m in share options is also payable to the management team dependant on them achieving specific performance targets.  Comapi had revenues of £7.8m which are primarily recurring and EBITDA of £1.2m for the year ended December 2016. Revenues for Comapi in the current financial year are growing at approximately 15% based on their SAAS business model. FYJun18E rev £39.66m and £9.6m PBT.

 

Base Resources (BSE.L) 18.75p £140m

AGM Statement. “During the year we have achieved profitability, reduced net debt significantly, initiated exploration in support of mine-life extension and have begun construction of the Kwale Phase 2 project.  Our company is in a robust position and is well-placed to take advantage of an improving commodity market with sound long-term fundamentals.”

“Looking ahead, the 2018 financial year has a positive outlook. Product markets for rutile, ilmenite and zircon have returned to balance with conditions conducive to a continuation of the recent price improvements. Demand is such that we are carrying no inventory from shipment to shipment.  On the back of these continuing market conditions we look forward to further substantial inroads on our net debt position.” FYJun18E A$239.7m rev and A$57.57m PBT.

 

Van Elle Holdings (VANL.L) 78.8p £63.04m

HY Oct 17 trading update from the geotechnical engineering contractor offering a wide range of ground engineering techniques and services to customers in a variety of UK construction end markets. Overall trading in the first half of the financial year has been positive and the Board expects to report turnover of approximately £53m (H1 2016: £43.1m) with underlying profit before taxation increasing by approximately 15% (H1 2016: £4.7m). Mindful of H2 weighting and contract timing but FY expectations remain unchanged. Strong performance in most divisions but Specialist Piling more challenging.

FYApr18E rev £103.5m and PBT £12m. EPS c.7x and yield 4.1%.

 

Totally (TLY.L) 33.5p £20m

“The provider of a range of out-of-hospital services to the healthcare sector in the UK, is pleased to announce that it has been awarded in principle a two year contract extension to 31 March 2020 with NHS Vale of York Clinical Commissioning Group (“the CCG”) through its subsidiary Vocare Limited , one of the leading providers of integrated urgent care services in the UK. The final contract value is expected to be worth approximately £3m per annum. Under the Contract, which will become effective 1 April 2018, Vocare will continue to provide GP Out-of-Hours services to the CCG.”

 

Midatech Pharma (MTPH.L) 44.5p £27.18m

“The international specialty pharmaceutical company focused on developing and commercialising products in oncology, announced it has received formal notification from the Spanish regulatory authority AEMPS for an extension to its licence 6458E: Manufacturer of Investigational Medicinal Products, to include the manufacture of monodispersed controlled release microcapsules, marking the completion of the rigorous upscaling process conducted between November2016 and September 2017. This licence amendment is required for the use of Midatech’s Sustained Release products manufactured at its Bilbao facility, including octreotide (MTD201) which is shortly due to commence clinical trials.” FYDec17E rev £10.6,m and pre-tax loss £15.8m.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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