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AIM BREAKFAST – 18th August 2017

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 964

Total number of AIM Companies trading: 927*
* As at 17 August 2017

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): 84*

Total number of ISDX Growth Market Companies trading: 80*
* As at 17 August 2017

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

AIM

Destiny Pharma—A clinical stage biotechnology company – lead asset (XF-73) targets antibiotic-resistant bacterial infections in hospitals. Offer TBA. Due early September.

Avingtrans  (AVG.L) Sch1 on its Reverse Takeover of Hayward Tyler (HAYT). Combined market cap of c.£75m. Expected 01 September 2017

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 Standard Listing

Kosmos Energy— Secondary listing, currently on NYSE. Oil and gas exploration and production company focused on frontier and emerging areas along the Atlantic Margins. During the first half of 2017, gross sales volumes from Ghana averaged approximately 132,000 barrels of oil per day (net: 26,900 bopd). Due 21 August. No offer. NYSE:KOS. Mkt Cap £2.54bn.

Myanmar Strategic Holdings—Intention to float from the independent developer and operator of consumer-focused businesses in Myanmar,  one of the fastest growing economies in the world. Expected Mkt Cap $22.7m at $10 per share. $4.2m gross raise. Due 22 August.

Main Market Premium Listing

Hipgnosis Songs Fund investment Company offering pure-play exposure to Songs and associated musical intellectual property rights. Offer raising £200m at 100p. The Company has decided to extend the closing date for the Placing, Offer for Subscription and Intermediaries Offer to 1 August 2017.  The Company may bring forward this closing date at any time. Admission 15 September 2017

 

Breakfast Buffet

Management Consulting Group (MMC.L) 7.25p £38.85m

HY Jun 17 results from the global professional services group. ·      Reported revenues of £21.6m – up 11% on H2 2016

  • Underlying* operating loss of £4.6m (H2 2016: loss £6.9m)
  • Retained loss for the half-year of £6.0m (H2 2016: £38.6m including impairment charge)
  • Cash balances at 30 June 2017 of £28.4m (31 December 2016: £38.1m)

“The newly re-branded Proudfoot has fundamentally changed its structure and operating model. This provides a leaner, more agile, flexible and focused business. Revenue for the first half of 2017 was 11% higher than the preceding six month period. This is despite a decline in the Americas region where the new operating model was implemented late in the half.” FYDec17E rev £50.8m and £5.3m loss.

 

Via Developments (NEX:VIA1) 100p £4.6m

Via  has exchanged contracts for the purchase of a residential development site in Latimer Road, Luton. The site has planning permission for c. 200 apartments including planning  permission for retail space. The purchase price of the site is £8,250,000. Under the terms of the contract, the Company has paid a non-refundable exchange deposit of £412,500 to the seller to secure the site. Completion of the purchase is subject to, amongst other things, the Company securing funding for the development of the site.

 

Red Leopard Holdings (RLH.L) 0.24p £3.59m

RLH has entered into an assignment agreement with Capital Resources Inc. and Sloane Energy Group Limited assigning to the Company the benefit of a Memorandum of Understanding (“MOU”) between Capital and Sloane to acquire a coal mining project near La Loma, in the Department of Cesar, Republic of Colombia, known as La Luna. MOU secured through $180m scrip issue and Capital has committed to procure or provide a minimum of $20million to the Company to develop the Project. Suspended pending publication of admission document.

 

Morses Club (MCL.L) 115.25p £152.16m

The UK’s second largest home collected credit  lender, announced that the Group has secured the addition of one of the UK’s leading high street lenders to its existing loan facility. Sitting alongside the existing funder, Shawbrook Bank, this has increased the overall revolving facility from £25m to £40m. In particular, the funding supports the growth anticipated from the c.550 self-employed agents and managers who have recently joined the Group. As well as strengthening the core business, the Company anticipates that this will lead to over 400 new agent territory builds in the current financial year. The territory builds in progress to date are performing ahead of management’s expectations set at the beginning of the year, and it is anticipated that this increased level of activity will not have an adverse impact on earnings expectations in FY18.  FYFeb18E PE c.11.4x and yield c.5%.

 

Alpha Real Trust (ARTL.L) 120.5p £83.53m

Trading update for the period ended 30 June 2017 and the period up until the date of this announcement. ART currently focuses on high-yielding property, infrastructure and asset backed debt and equity investments in Western Europe that are capable of delivering strong risk adjusted cash flows, including build to own investments.

  • NAV per share 162.4p 30 June 2017 (158.9p: 31 March 2017)
  • Adjusted earnings per share of 1.4p for the three month period ended 30 June 2017 (7.4p for the year ended 31 March 2017)
  • Declaration of a quarterly dividend of 0.6p per share, expected to be paid on 22 September 2017

 

SRT Marine Systems (SRT.L) 33p £42.1m

The provider of maritime tracking, management and surveillance technologies, products and integrated system solutions for ports, waterways, fisheries and coast guards, announces the receipt of an order for 200 AIS Aids to Navigation (‘AtoN’) transceivers for immediate delivery.

The order is for the world’s biggest single deployment of AIS AtoN and will be installed along part of a European waterway. The system will be used to enhance traffic control, the monitoring of the exact buoy location and status and the continuous real time monitoring of the local maritime environment and weather. SRT’s AtoN solution was selected following over a year of evaluation and testing due to a number of technological, quality and reliability factors. FYMar18E rev £15m and PBT £1.5m

 

Palace Capital (PCA.L) 392.5p £98.72m

The property investment company that focuses on commercial property outside London, announced that its planning application for a major development on the Company’s 2-acre site at Hudson House, Toft Green, York was granted, subject to conditions, by City of York Council yesterday evening.

Hudson House, which is within the City Walls, and only one minute’s walk from York Railway Station, is a 1960s office building with a lettable floor area of 103,000 sq ft. Intends to demolish the existing property and erect four new buildings comprising a total net area of 132,893 sq ft. Under the plans, three of the buildings will have a total of 127 apartments and 5,000 sq ft of commercial/restaurant space, whilst the other will comprise 34,000 sq ft net of Grade A offices.

FYMar18E rev £13.27m and £6.1m PBT. Yield c.5%

 

Vast Resources (VAST.L) 0.31p £14.5m

The mining company with operations in Romania and Zimbabwe, announces that following the announcement on 24 July 2017 in which the Company revealed that Conditional Heads of Terms had been signed with a corporate finance and investment firm with significant experience in and investment in Romania (the ‘Investor’) relating to a proposed investment of up to $10 million, Sub-Sahara Goldia Investments (‘Sub-Sahara’) has exercised its right to provide equivalent finance to the proposed investment on the same terms and conditions in place of the finance from the Investor. Sub-Sahara has also stated that it wishes to work with the Investor, using the Investor’s expertise in Romania, to develop the Romanian assets.  Sub-Sahara has invited the Investor to meet in order to decide on a mutually beneficial way forward.  This meeting is expected to take place shortly.

 

 

System 1 Group (Formerly BrainJuicer) (SYS1.L) 655p £81.6m

The slower than expected start to our financial year which we noted at the time of the announcement of our 2016/17 results on 15 June 2017 has continued since then, and we now expect H1 Gross Profit (our main top line performance indicator) to be 6-11% lower than prior year. This is mainly due to non-recurrence of large one-off Innovation projects as a result of some significant client spending deferrals and a more competitive market, although there have been some more encouraging signs recently.  Meanwhile we are continuing to refine our Innovation product offering (Predictive Markets), with a relaunch planned in Q3 of our financial year.  Notwithstanding this slow start and our lack of revenue visibility, we expect Gross Profit to move back to growth in H2.” FYMar18E rev £34.63m and £7.89m PBT.

BOS Global (BOS.L) 7.5p £5.69m

The software developer focused on improving productivity and creating operational efficiencies in the workplace by collecting and generating workforce analytics, confirms that the following Patents have been granted by IP Australia after entering Australia via the worldwide Patent Cooperation Treaty (PCT): Patent Number 2017200601 (Expiry: 2 September 2036) claiming a server and computer-implemented method for managing activities performed by users and Patent Number 2017200602 (Expiry date: 2 September 2036) claiming a computer-implemented system and method for verifying a time-based service. “The granting of these two patents is an exceptional outcome for the talented team of BOS people and for our clients and Shareholders. Both patents directly relate to and protect our investment and sales of BOS360 Work Patterns Platform as a Service and BOS Time products.” We could see no forecasts.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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