31 July 2012
This week: Ceres powers ahead, new technology from Elektron and ANT goes large.
In the week to Friday, the FTSE 100 saw an early drop of 160 points though it recovered somewhat to close at 5,623 points, whilst the AIM All share closed the week some 18 points lower at 668. News during the week included the deepening of the UK recession, the continuing debt crisis in Europe and a slowing of economic growth to 1.5 per cent. Asia also had troubling news, with Japan said to be in a trade deficit, a slowing in South Korean economic growth (0.4 per cent for 3 months to June, vs. 0.9 per cent in the prior 3 months), and Taiwan suffering a 0.16 per cent contraction in the 3 months to June. The week ahead sees the MPC interest rate decision, services, construction & manufacturing PMI and Nationwide house prices index all being announced.
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Disclaimer- This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only- please refer to the disclaimer in full below.
ABC Pre close trading update, AGL Final Results, AYM Buy-Out, ANTP Licensing deal with GlobalSat, BMZ began trading, BGL quarterly activity report, CWR On-track, CNS Trading update, DDD H1 Trading update, EKT product launch, ESG Update on contract with Nepal Telecom, GLR Heads of Agreement, GAS Directorate Change, GEMD Trading update, GTC Exceeding Expectations, GOOD Admission onto AIM and placing, HER Project Update, IDEA Preliminary Results, INS Trading Update, PSL half year trading update, SDI Final Results, SXX Final results, SNX Interim results, TRS Interim results, TRP Licence Update, UBI Trading update, WRL Transaction update, WHE quarterly report.
Abcam (LON:ABC 406p/£804.74m)
Global leader in the supply of protein research tools announced the following pre-close trading update ahead of its results for the financial year ended 30 June 2012. The Board is pleased to report another successful trading year and it anticipates that profit before tax will be slightly ahead of expectations, before one-off costs incurred during the year relating to the acquisitions of Ascent Scientific Limited and Epitomics International Inc of approximately £3.4m, and amortisation of the associated intangible assets. During the year Abcam has made significant steps in its strategy to drive growth by extending its product ranges, both through the two acquisitions closed in the period as well as by broadening the number and range of products in the catalogue. Through the recent acquisitions they have also opened up new opportunities in the In Vitro Diagnostic Immunohistochemistry, immunoassays, custom service and bio-active small molecules markets. The online catalogue has continued to grow strongly, comprising 92,456 products at the year end, representing growth of 25.5 per cent over the previous year, as they took advantage of a number of one-off opportunities to add product ranges. This number includes 656 products from Ascent and 1,452 new products added in the year from Epitomics.
Angle (LON:AGL 41p/£15.51m)
Specialist medtech Company announced audited results for the year ended 30 April 2012. Though revenues were down to £1.4m (2011: £2.4m), and the loss for the year widened to £2.7m (2011: 0.4m loss), this reflected the investment and work that has been done during the period. Further, the Company announced the raising of £700,000 net of costs, at 40 pence per share (some 12 per cent discount to the mid price on July 25th). The Company has three key businesses: Parsortix (90 per cent owned, cancer diagnostics), Novocellus (92 per cent owned, Embryo viability) and Geomerics (33 per cent owned, computer graphics), the first of which is seen as a key breakthrough opportunity for the Company and especially so after having developed the diagnostic device (cassette) to a greater precision in the 3rd generation iteration. An aggressive timeline for taking this to market is also expected by the Company, with an automated instrument (for reading the cassette) expected to be manufactured for research purposes by the end of September and sales to be initiated by the end of September.
Anglesey Mining (LON:AYM 12.25p/£19.43m)
Anglesey Mining announced that it has reached an agreement with Intermine Limited to discharge all amounts due to Intermine and to buy out the Net Profits Royalty Agreement held by Intermine in respect of the Parys Mountain copper-lead-zinc property in North Wales. Under the agreement Intermine will receive C$1m in cash (£ 630,000) and 2,000,000 ordinary shares in the company. The agreement will relieve Anglesey of the requirement to make annual advance royalty payments to Intermine prior to the commencement of production and will eliminate all future royalties payable to Intermine from any mineral production at Parys Mountain. The Company also reported that it has now completed the diamond drilling programme at Parys Mountain. Assay results have now been returned for the first ten of twelve holes in a drilling programme totalling almost 2,000 metres. All the stages of this programme are considered by the company to have been successful.
ANT (LON:ANTP 18.25p/£4.43m)
ANT, a provider of TV software and services, has announced that GlobalSat, the Chinese manufacturer of satellite and terrestrial products, has licensed its ANT Galio HbbTV (Hybrid Broadcast Broadband TV) Platform. GlobalSat deploys a wide range of set top box devices throughout Europe, the Middle East, Latin America, North Africa and Australia.
Black Mountain Resources (LON:BMZ 19p/£12.41m)
Black Mountain shares last week began trading on the AIM market. The stock, according to the Company, is dual listed on AIM and ASX to increase the exposure and broaden the international investor base to accelerate the Company’s growth strategy. Black Mountain has a 70 per cent interest in three previously operating high grade silver projects located in Idaho and Montana, USA. Its objective is to rapidly recommence low cost silver production at Conjecture and look at the New Departure Projects in Q4 2012. It has exclusive access to a nearby silver processing mill secured for the Conjecture Project, Idaho and there is significant exploration upside and resource potential demonstrated at all three projects. Black Mountain has known areas of mineralisation, with low political risk and excellent mining infrastructure.
Black Mountain Resources Ltd also today separately gave its quarterly report for the Period Ending 30 June 2012. The highlights of the period were that the option for exclusive mill access was secured for the Conjecture Silver Project; drilling started at Conjecture and the New Departure Silver projects; preliminary mine exploration development activities were commenced at Conjecture and the New Departure Silver Projects are now underway with initial production targeted for Q4 2012; and a $1.5m capital raising was completed pursuant to a loyalty option entitlement issue and placement, whilst the Company dual listed on AIM.
Bullabulling Gold (LON:BGL 10.38p/£29.99m)
Bullabulling has provided a quarterly activity report for the three months ended on 30 June. The pre-feasibility study on the Bullabulling Gold Project is well advanced, with key mining parameters set and development of detailed cost estimates underway. The engineering consultants have finalised plant design criteria and the process flow sheet. The complete pre-feasibility study, incorporating an evaluation of the Gibraltar deposit, final open pit designs, production schedules and full financial analysis, is targeted for release by year end. Regional 3D modelling identified a significant resource growth potential, with diamond drilling to commence in the current quarter. At the end of the quarter, the Company had cash and deposits totalling $7.8m which means that it is fully funded for completion of the pre-feasibility study and other planned near term activities. During the period Bullabulling Gold appointed Mr Peter Mansell (lawyer with 35 years of experience in corporate and resources law) as Non-Executive Chairman of the Company, while Ronnie Beevor was appointed independent Non-Executive Director. On 1 May 2012, Mr Brett Lambert commenced as Managing Director of Bullabulling Gold Limited. Brett is a mining engineer with 30 years’ experience in operations, project development and corporate management.
Ceres Power Holdings (LON:CWR 4.55p/£3.92m)
Ceres Power announced a new agreement under which its partners British Gas and Itho-Daalderop will purchase 174 micro-CHP units, for sale, installation and trialling across a range of UK and Dutch homes starting in 2014, as preparation for full mass volume launch in 2016. The trial micro-CHP products will be available to members of the public and as a result, Ceres and its partners will capture extensive feedback to further refine the product and validate performance and operability in the field that will underpin mass volume. Ceres expects to receive EUR2.4m of European Funding to conduct the trials, subject to formal approval being granted in the near future.
Corero Network Security (LON:CNS 47p/£27.41m)
Corero Network Security, the AIM listed network security and business software provider, provided an update on trading for the six months ended 30 June 2012. Subsequent to the acquisition and integration of the US-based Corero Network Security division during 2011, the board of Corero have resolved to change the Group’s reporting currency to US Dollars which is more closely aligned to the profile of the Group’s revenue and operating profit. The change will be effective from 1 January 2012 and thus the results for the six months ended 30 June 2012 will be reported in $ with the relevant comparatives. Group revenue for the full year is expected to show strong growth over the previous year and a strong first half year-on-year order intake growth for Corero Network Security (18 per cent growth) and Corero Business Systems (19 per cent growth) has been seen. Macroeconomic uncertainty across Europe is affecting the rate of sales growth, however the Group is committed to continuing to invest in the CNS division and “First Line of Defence” next generation product. Corero has a strong balance sheet with cash of $9.2m at 30 June 2012 (2011: $8.5m). Corero Network Security expects to announce its interim results for the six months ended 30 June 2012 in the week commencing 3 September 2012.
DDD Group (LON:DDD 26.25p/£35.23m)
3D solutions company provided a half year trading update, stating that it expected H1 revenues to have increased by around 74 per cent to around $4m, benefitting from growing demand for its 2D to 3D conversion software, with gross margins of around 96 per cent. There was a 52 per cent increase in shipping of such units to approx 7m, whilst shipments by TV manufacturers grew by 23 per cent, PC Software by 1,031 per cent and Mobile IP shipments by 487 per cent. The Yabazam! 3D Smart TV app was also launched on both Samsung and LG Electronics’ 3D TV platforms, with 60,000 downloads of the app completed so far.
Elektron Technology (LON:EKT 19.75p/£21.05m)
Elektron Technology, the developer of fast moving engineered products with market leading positions in connectivity, instrumentation and monitoring and control markets, announced that its electrical connectivity brand, Bulgin, has launched its new range of rugged electrical connectors. The new Buccaneer 6000 Series of waterproof power, signal and data connectors is designed to withstand the harshest environments whilst conforming to the highest industry standards. John Wilson, CEO of Elektron Technology commented: “This is just the first of a pipeline of new products that are being developed through the new, centralised NPD facility at our Cambridge Technology Centre. We are pleased to be delivering on our aim of extending our existing product ranges and expanding the addressable market for our products.”
eServ Global (LON:ESG 13p/£25.59m)
eServGlobal, the global telecoms software supplier specialising in mobile money and other value added services, has announced that its solution is exceeding the expectations of Asian operator Nepal Telecom. eServGlobal has been working with Nepal Telecom since 2008, and launched its post paid bill payment offering earlier this year. This means that each of the 15,000 existing recharge point‐of‐sales agents are now capable of processing post paid bill payment. Within the first months of service, results have shown improved customer satisfaction, high rates of on‐time bill payments and increased demand for post paid subscription.
Galileo Resources (LON:GLR 42.12p/£34.99m)
Galileo Resources, the emerging African Rare Earth exploration company, announced that it has signed a Heads of Agreement (HoA) with Rare Earth International (REI) to earn-in to interests in three rare earth projects in Zambia, Mozambique and Spain. REI holds certain rights to explore and to acquire interests in these Projects which are outlined in separate agreements with various holders of the projects’ prospecting licence or mining concessions. African Consolidated Resources (LON:AFCR 2.75p/£13.14m) is the 100 per cent holder, through its Zambian subsidiary, of the prospecting licence to the rare earth project in Zambia. Under the terms of this HoA, the Company has been granted 30 days to conduct title due diligence on the Projects; this being the only condition on which this HoA may be terminated.
Gasol (LON:GAS 0.54p/£8.13m)
Gasol, the West Africa energy development company, announced that Cornelia Meyer, a highly experienced energy expert, has been appointed as Chairman of the Company to lead the next stage in Gasol’s development. Ms. Meyer, brings significant sector-specific and international experience to Gasol, having held senior roles with Kimberly Clark Corporation, BP plc, the General Electric Corporation and Citibank. Haresh Kanabar, who co-founded Gasol and served as its Chairman since 2009, will become a Non-Executive Director. Separately, Osman Shahenshah will also step down as a Non-Executive Director of the Company with immediate effect.
Gem Diamonds (LON:GEMD 195.6p/£270.45m)
Gem Diamonds, which is focused in Lesotho, Australia, Angola and Botswana, has reported that the first half of this year has been marked by strong operating performance against a challenging backdrop for the diamond industry. The flagship mine, Letšeng (Lesotho), has reported an increase in both carats recovered and recovered grade compared to the same period in 2011 and cash costs were also held in line with management estimates. However, diamond prices have been under pressure: average value of US$2,133 per carat was achieved for the five exports for H1 2012 compared with US$3,052 in H1 2011. This, together with the comparatively lower quality production from Letšeng in the period when compared to H1 2011, which saw six exceptional diamonds recovered, impacted revenues generated in H1 2012. However, with US$139m of cash, no debt and strong operating cash flow, the management believes the Company is well positioned to weather the current downturn in the market.
Getech (LON:GTC 28.75p/£8.41m)
GETECH, the oil services business specialising in the provision of exploration data and geological exploration studies, announced generally strong performance of all parts of the business. The Company now expects that its results for the year to 31 July 2012 will exceed current expectations. Management also point to improving visibility of income and stronger cash balances.
Good Energy Group (LON:GOOD 95p/£11.9m)
Good Energy Group, owner of Good Energy Limited, the UK’s leading 100 per cent renewable electricity supplier, announced its admission to trading on AIM. The Company has raised £4m by way of a placing at 85 pence, which based on the placing price gave it a market capitalisation of £10.6m on admission. Following Admission, the Company will have approximately £8m of cash on its balance sheet. The Company intends to use the net proceeds of the placing to continue, and accelerate, the development of the Company in marketing and brand awareness, trading and asset development.
Herencia Resources (LON:HER 0.8p/£13.46m)
Herencia, the Chilean exploration and development Company, announced a progress update on its flagship Paguanta Project. Paguenta is 70 per cent owned by Herencia, and is focused on developing a silver, zinc and lead mining and processing operation on its Patricia deposit; one of three targets within the Paguanta project area. Following the £1.2m fund raising announced on 4 July 2012, the Company has commenced work on a surface geological mapping and sampling programme at Patricia and continued to progress the re-logging and selective assaying programme up-dip of existing mineralisation. The Company has also completed preparation work in advance of an Induced Polarisation survey to extend the existing Patricia anomaly.
Ideagen (LON:IDEA 16p/£12.46m)
Ideagen, a leading supplier of compliance based Enterprise Information Management, announces its unaudited preliminary results for the year ended 30 April 2012. These are the first set of financial results since the Company’s admission to AIM on 2nd July 2012 and represent the Company’s third year of consecutive revenue and EPS growth. Revenue for the year ended 30 April 2012 increased by 78 per cent to £4.00m (2011: £2.25m) with a full year contribution from Ideagen Software and a four month contribution from Proquis, which was acquired in January 2012, of which recurring revenues of £3.3m at the year end covered 90 per cent of the fixed cost base. Adjusted operating profit increased by 127 per cent to £1.18m (2011: £0.52m). Basic adjusted earnings per share increased by 35 per cent to 1.26 pence (2011: 0.93 pence). The Company’s financial position has continued to strengthen during the last year. Net assets increased to £5.79m at 30 April 2012 (2011: £3.07m) following the acquisition of Proquis and cash balances at 30 April 2012 were £1.50m (2011: £0.76m). During the period the Company has acquired Proquis Ltd and Proquis Inc. significantly strengthening compliance capabilities, as well as managing to secure a contract with the US Department of Veterans Affairs, expected to be worth $10.6m over 5 years, and additional significant contract wins at South East Water, Prudential, Raytheon, Fuji, MOD, and VA Amarillo.
Instem (LON:INS 156.5p/£18.41m)
Leading provider of IT applications to the global early development healthcare market gave an update on current trading. As stated in the 2011 interim results and the full year results released in March 2012, license income is becoming increasingly second-half weighted and this trend is expected to continue in the current year, with first half revenue marginally below that of the comparable period in 2011. Despite opening 2012 with a strong order book and a good pipeline of new opportunities, the Company is continuing to experience timing delays in new order placement and, following a detailed review, the Board believes the revenue and profitability for the full year ending 31 December 2012 are likely to be materially lower than current market expectations. The pharmaceutical market, particularly large pharma, is still going through a period of major structural changes and, with the uncertainty this creates, clients and prospects are deferring investment decisions. Despite this, underlying demand for Instem solutions remains strong with several large, multi-site prospects in the pipeline. In several instances, selection decisions have already been made in Instem’s favour by prospective customers but order dates and final contract size remain subject to additional procurement processes. The fundamentals of the business remain strong and Instem continues to increase its substantial annual recurring revenues; remain solidly profitable and cash generative, with £1.84m net cash as at 30 June 2012 (£1.33m at 30 June 2011); win the majority of new business placed in its core early development safety assessment market; and benefit from high barriers to entry for competitors. Enhanced revenue opportunities and reduced costs resulting from the completion of the last major phase of the redevelopment of its core Provantis(R) product suite during 2012 are expected to contribute positively to future business performance. Overall, while the Board remains cautious regarding the timing of deal flow, it is confident in the medium to long-term prospects for the business, which remains well positioned to benefit from the trends in its end markets towards multi-site, collaborative and outsourced R&D. The Company expects to report interim results for the 6 months ended 30 June 2012 on 19 September 2012.
PhotonStar LED Group (LON:PSL 8p/£7.90m)
PhotonStar LED Group, the British designer and manufacturer of smart LED lighting solutions, has published a trading update for the six months to 30 June 2012. Group revenue increased by 50 per cent to £3.82m (H1 2011: £2.54m) with gross profit moving up 62 per cent to £1.51m (H1 2011: £0.93m). The Group continued to make good progress, albeit slightly below the Board’s expectations and recently became EBITDA positive on a monthly basis. The Board is confident that PhotonStar will continue to grow strongly in the second half of the year driven by the lighting market’s transition to LED lighting. The Group expects the results for the year to be broadly break even on an EBITDA basis and sees 2013 as a year of significant growth. The Group is pleased to report that it has completed a new trade finance facility of up to £1.3m with HSBC to support PhotonStar’s growing working capital requirements, which have been constrained in recent months. A number of key milestones were achieved in the first half including the start of commercial production at the Romsey facility of the Group’s industry leading ChromaWhite range of products and the commissioning of the PhotonStar’s manufacturing facility for the LED fixtures business in Wales. First shipments of the ChromaWhite range to key customers started in June. However, due to third party supply issues the board expects that PhotonStar’s production volumes will be held back until the last quarter of this year. Whilst ChromaWhite revenues are still fairly modest, this will have some impact on the Group results. The Group anticipates announcing its interim results for the six months to 30 June 2012 in mid-September.
Scientific Digital Imaging (LON:SDI 10.5p/£1.89m)
The AIM quoted group focused on the application of digital imaging technology to the needs of the scientific community announced final results for the year ended 30 April 2012 in which it saw a slight fall in revenues to £7.17m (2011: £7.29m) and a pre-tax profit of £20,000 (2011: loss of £162,000). Cash on the balance sheet increased to £285,000 (2011: £158,000). The Company has been seeking to reorganise itself, and has made significant investments in plant imaging and colony identification together with the development of a new prototype imaging system for the untapped sector of the healthcare market, both perhaps achieved by the increase in R&D expenditure to £723,000 (2011: £620,000). SDI also announced the retirement of Chairman Harry Tee, for personal reasons, though remains confident that reorganisation and refocusing will bring improved operational performance in the near term.
Sirius Minerals (LON:SXX 14p/£187.46m)
Sirius Minerals, the potash development company, has reported that the increased level of development activity and impairment charges to the Company’s tenements in Australia and US resulted in a loss after tax for the year ending March 2012 of £60.1m (2011: £7.1m). The year-end cash and cash equivalents of £54.3m will be used to fund completion of the drilling program and feasibility studies for the York Potash Project which the management believes will deliver the greatest value for shareholders.
Synectics (LON:SNX 285p/£50.07m)
Synectics (formerly Quadnetics Group), a leader in the design, integration and control of advanced surveillance technology and networked security systems, reported its unaudited interim results for the six months ended 31 May 2012. Results for the six months to 31 May 2012 represented appreciable overall growth in both revenues and operating profits compared with last year. Group revenue for the first half was £38.4m, 13 per cent up on the corresponding period of 2011. Consolidated underlying profit was £2.8m (2011: £1.8m). During the period the Company took an exceptional charge of £0.8m (2011: nil) to provide for closure of the UK defence activities. After this charge, and various non-underlying, non-cash items, the Company produced a profit before tax for the first half of £1.7m (2011: £1.7m). Fully-diluted underlying earnings per share were 12.7 pence (2011: 8.4 pence). The Company generated strong cash flow in the period. Free cash flow was £3.3m (2011: £3.7m). Net cash as at 31 May 2012 was £2.7m (2011: £6.0m, prior to the acquisition of Indanet AG. Pleasingly, the Company ended the first half with a record order book of £40.6m (2011: £26.1m, prior to the inclusion of Indanet), compared with a like-for-like £35.9m as at 30 November 2011.
Tarsus Group (LON:TRS 169p/£160.77m)
International business-to-business media group announced its results for the six months ended 30 June 2012. Like-for-like revenue was up 14 per cent on 2011 as adjusted for biennials, the interim dividend up 5 per cent to 2.2p (2011: 2.1p) and net debt was at £19.6m (2011: £17.3m). The quality portfolio in high growth markets is driving a strong Group performance, with a very strong performance from the Emerging Markets; Turkey like-for-like revenues +17 per cent, China (Hope) revenues +39 per cent and Medical division continues strong growth – revenues +16 per cent. The Group has been transformed with Project 50/13 strategy substantially implemented; Life Media (Turkey) was acquisition completed in March 2012 and the acquisition of GZ Auto (China) is expected to complete in the next few months. Heads of terms have been agreed for a new five year £45m banking facility. The forward bookings currently stand at 80 per cent of anticipated full year revenues (2011: 74 per cent), Labelexpo Americas and MEBA both tracking well ahead of previous events and the focus remains on accelerating earnings growth and increasing dividends over the medium term.
Tower Resources (LON:TRP 3.22p/£46.02m)
Tower Resources the oil and gas exploration company, announced that Repsol SA has agreed to take a 44 per cent working interest in the Namibian offshore licence 0010 and the related petroleum agreement and become operator. Provided that the transfers are completed, the ongoing interests in the Licence will be Repsol 44 per cent, Tower 30 per cent and Arcadia 26 per cent. In order to fund the acquisition and ongoing pre-drill costs of its 30 per cent working interest and to provide additional working capital, the Company has raised £5.9m through a conditional placing of new ordinary shares at a price of 3p. The Company also issued 10,014,581 warrants with Strike 3.125p, Expiry 27 July 2017 to Directors in sacrifice of £206,000 of fees and salary.
Ubisense (LON:UBI 206.5p/£45.02m)
The market-leading location solutions company provided a half year trading update in which stated that it expected revenues to be ahead of the first half last year after seeing good momentum. The Geospatial division has continued to perform in line with Board expectations, and the RTLS business has also continued to be strong. Excellent progress has been made with a number of new customer signings, several of which have come through Atlas Copco. However there have been some delays by a small number of orders from the North American market, resulting in full year revenues that are likely to be lower than previously expected and reported earnings at the lower end of market expectations.
Wentworth Resources (LON:WRL 41p/£32.99m)
Wentworth Resources, the independent oil & gas company with assets in the Rovuma Delta Basin of coastal southern Tanzania and northern Mozambique, has reported that further to its earlier announcements regarding its acquisition of Cove Energy plc’s 16.38 per cent participation interest in the production operations in the Mnazi Bay Concession) and Maurel et Prom’s pre-emption rights, these transactions are now complete. The Company has now received from M&P a cash consideration of US$18.9m, and its development and production interest in the Concession is now 32 per cent.
Wildhorse Energy (LON:WHE 5.12p/£20.66m)
AIM and ASX listed company focussed on developing underground coal gasification and uranium projects in Central and Eastern Europe has announced a quarterly report for the three months ended 30 June 2012. During the quarter, Wildhorse announced that it has raised a total of £7.52m in a share placement and a share purchase plan to initiate a Bankable Feasibility Study (BFS) at the Mecsek Hills UCG Project. The Company has commenced the BFS. In June 2012, Wildhorse announced that the Hungarian government gave a formal endorsement to the potential development of a Joint Venture between the Company, the Hungarian state owned Mecsek-Öko and Mecsekérc, and Hungarian Electricity Ltd which is the owner of Paks Nuclear Power Plant, which represents a major step in the development of the Mecsek Hills Uranium Project.
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The Hybridan Small Cap Wrap is a weekly review of some of the most interesting small cap stories of the past week. Our review will usually be of those companies whose market capitalisations are less than £50m although we may occasionally cover larger companies.
17 July 2012
This week: Bloomsbury publishes a management statement, a healthy contract win for Fitbug and a rich update from Monitise.
In the week to Friday, both the FTSE 100 and the AIM Share faced drops but recovered to their opening levels of 5,660 points and 694 points, respectively. The fallout from the LIBOR issues continued, UK house prices continued to fall, and the suggestion that Britain may require an extra £17bn of tax hikes (or spending cuts) by 2017 together with the IMF slashing UK growth forecasts appeared to contribute to this, though a fall in inflation to 2.4% in June from 2.8% in May could help sales. The week ahead sees UK unemployment, UK retail sales and public finance figures (for both the UK and Eurozone) being announced.
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Disclaimer- This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only- please refer to the disclaimer in full below.
RGO London TubeMap partnership, ANCR Pre-close trading statement, AVG Trading Update, BAO Positive Test, BEM Update Kallak, BIOM Financing and Litigation, BMY Interim Management Statement, BGL Revised resources update, CLL Trading Update, DDD Agreement with WealthTV, EKF CE marking, FITB US contracts US$500,000, FBT Pegasus Works and Halo as a client, GTC Three Licences, HALO Trading Update, LID Japanese approval, MIRL Canadian Prospectus, MONI Trading update, NMRP Final results, OMPP Subsidiary Director Appointment, RIC Trading Update, RMM First copper sales, SLE Successful exploration, SER Operational Update, SORB update on Ulanqab, SPHR CE Mark granted, SOG Trading Update, SUMM positive data, SKR Company update and new CFO, TAN Placing, TRT distribution agreement, UKR Trading Update, WRL Government approvals granted, SNCL Commissioning of second production facility.
2ergo Group (LON:RGO 51.5p/£18.27m)
2ergo Group, the mobile solutions company, has signed a partnership with mxData Ltd to integrate TikTap™, 2ergo’s contactless coupon redemption technology into “TubeMap”, the official licensed Transport for London tube map application. With 100,000 daily users, TubeMap is the most downloaded tube map smartphone application, providing travel alerts, live departure boards and station information, helping users find stations and plan journeys as well as providing Oyster card balances. By integrating this application with TikTap™, TubeMap users will now be able to take advantage of the easy-to-redeem money off vouchers and coupons.
Animalcare Group (LON:ANCR 130p/£26.94m)
A leading supplier of veterinary medicines provided a pre-close trading statement ahead of results for the year to 30th June 2012, stating that they are broadly in line with the recently revised expectations which were announced back in May. Revenue is expected to be approximately 29 per cent below those for the year ended 30th June 2011 (slightly better than indicated back in May), however of particular note is that revenues from Licensed Veterinary Medicines segment remains strong at 2 per cent ahead of 2011. Five products were also launched during the period. The revised expectations back in May were largely as a result of reduced consumer confidence together with changes in distribution and service agreements impacting the companion animal identification business. Year-to-date sales performance in this area of the Group’s business at the time was approximately 32 per cent below that of the comparable period.
Avingtrans (LON:AVG 79.5p/£20.7m)
Avingtrans, a manufacturer of critical components and associated services to the medical, energy, industrial and global aerospace sectors announced a pre-close trading update following the end of its financial year to 31 May 2012. It is expected that the preliminary results for the year then ended will be announced during week commencing 17th September 2012. Group sales are expected to be approximately 20 per cent ahead of the previous year, in line with market expectations, with all divisions contributing to this growth. Similarly, operating profit is also expected to be ahead of last year and in line with expectations, reflecting on-going improvements in the Group’s performance. The Company is particularly pleased to report improved overall performance in the Aerospace division. Industrial Products has had a solid year with strong results in Germany and the USA. However, as previously stated at the half year, the performance of the Energy and Medical division has been held back by delays to the next generation MRI systems being developed by Siemens. This specifically related to the Crown business, which is affected by the on-going market weakness in the transport infrastructure sector. Although market conditions continue to be challenging, the management is encouraged by positive trends in the Aerospace sector, and remains confident overall, in continuing to perform in line with market expectations.
Baobab Resources (LON:BAO 10p/£26.41m)
Baobab Resources, the mineral exploration and development Company, with a portfolio of assets in Mozambique, provided an update on the metallurgical test work which is being completed as part of the Pre-Feasibility Study at its 85 per cent owned Tete pig iron, vanadium and titanium project (International Finance Corporation) hold a 15 per cent participatory interest). The key outcome of this test work is the potential to make significant savings in the start-up capex for the Tete Project. The ability to smelt a much coarser concentrate allows for a less complex beneficiation and pyro-metallurgical route than originally contemplated. The Company’s management note that the preliminary specifications of the Project’s potential pig iron product are well within the ISO standard for steel-making pig iron. With the recent £4m strategic investment made by the Africa Mining Exploration & Development fund (6 July 2012), the Company is now fully funded and wholly committed to the rapid completion of the Pre-Feasibility Study.
Beowulf Mining (LON:BEM 10.5p/£22.09m)
Beowulf, the mineral exploration company which owns several exploration projects in Sweden, announced an update on progress at its wholly owned Kallak North iron ore project in Northern Sweden. Jokkmokk Iron Mines, Beowulf’s wholly owned Swedish subsidiary, has recently received approval from the County Administrative Board of Norrbotten in respect of the second part of the initial phase of its ongoing drill programme at Kallak North, following filing of an application for large drilling programmes. A total of 1,522m has been drilled at Kallak North in 2012 to date, using the rigs, at locations within Beowulf’s previously defined grid system. The drilling comprises extensions to deepen the Company’s pre-existing inclined holes. The extended drill holes have all encountered strong iron mineralisation at substantial depth, with indications of similar mineralised characteristics to those encountered in the earlier shallower zones of the Kallak North deposit on which the maiden JORC Code compliant resource estimate was reported in 2011. The two rigs have now commenced the second part of the initial phase of the 2012 drill programme following the above mentioned approval. It is currently anticipated that approximately 85 per cent. of the total drill cores from the ongoing initial phase of the 2012 drill programme will be analysed, with the first assay results expected to be received in August 2012.
Biome Technologies (LON:BIOM 0.1p/£5.9m)
Biome Technologies announced that it has received EUR255,000 in repayment and accrued interest on its shareholder loans with Biotec, its joint venture manufacturing facility in Germany. Sphere S.A., Biome’s partner in the joint venture, has received a similar payment. In addition, Biotec entered into a EUR1.5m loan agreement with Sparkasse Emmerich last week. This loan has a five year term, carries a fixed interest rate of 3.25 per cent and is secured against Biotec’s property. Repayments of 15 per cent of the principal amount fall due at the end of each of the first four years with the remaining 40 per cent due at the end of year five. Biome also announced significant positive developments in the patent litigation cases currently being heard against Biotec by Novamont S.p.A, an Italian competitor. Novamont had brought proceedings in the French and Italian courts against Biotec and Sphere. The result of the case being conducted in the Turin court was received by the Company on 10 July 2012. The Board reported that the court has found in favour of Biotec and has revoked the Italian designations of Novamont’s patents EP 505, EP ‘559 (with the exception of claim 12, however this also was found not to be infringed), and EP ‘120 (claims 21 and 22). This is the first formal finding in the Italian jurisdiction and represents a very encouraging development in this multi-jurisdictional process. Appeal paths are available for these findings in Turin and a parallel case in Milan remains ongoing. It has been noted before that the first court judgment on this litigation was received in France in April 2010 and was in favour of Biotec and Sphere in that no proof of infringement was found for all three Novamont patents (above) and certain claims of EP ‘120 were found to be invalid.
Bloomsbury Publishing (LON:BMY 126p/£93.46m)
Bloomsbury Publishing issued its Interim Management Statement for the period from 1 March 2012 to date. The Group is trading in line with management’s expectations. In the three months ended 31 May 2012, Bloomsbury’s global ebook sales were up 70 per cent year on year, with this variance significantly exceeding the effect of the 2 per cent fall in print sales for the same period. The Association of American Publishers has reported that ebook sales in the US, for the first calendar quarter of 2012, have exceeded hardback sales and that overall there continued to be an increase in total sales across all formats for adult books. The rate of growth in ebook sales for young adult and children’s books in the US now exceeds that for Adult. Major best sellers in the period were Hugh Fearnley-Whittingstall’s River Cottage Veg Everyday!, Wisden Cricketers’ Almanack 2012, Double Cross by Ben MacIntyre, Heston at Home by Heston Blumenthal and Salvage the Bones by Jesmyn Ward. Their exceptional track record of winning major prizes continues apace and significant progress in the period has been made in growing academic and professional revenues and profits – with the acquisition of two businesses. The combination of these two acquisitions, with their existing Berg and Visual Arts lists, makes Bloomsbury the largest academic publisher in applied visual arts in the world. At 30 June 2012 the Group had a strong balance sheet with net cash of £10.0m.
Bullabulling Gold Limited (LON:BGL 11.38p/£32.88m)
Bullabulling Gold Limited has reported a revised Mineral Resource estimate for its wholly owned Gibraltar Project of 4.8 m tonnes grading 1.15 g/t for 177,500 ounces of contained gold, an increase of approximately 10 per cent over the previous resource. The latest resources estimate is based on data derived from historical drilling together with results from 23 reverse circulation holes drilled by Bullabulling Gold earlier this year and was calculated using a lower cut off grade of 0.5 g/t. 3D geological modelling using recent seismic data suggests that the currently defined mineralisation at Gibraltar is situated on the hinge zone of a regional fold, similar to the Bullabulling fold, however neither the east or west limb of the Gibraltar fold have been tested by drilling. Consequently, the Directors believe there is the potential to expand the resource at Gibraltar, not only at depth, but also along the untested limbs of the fold. The Company intends to evaluate the mining of Gibraltar as a satellite mine to Bullabulling as part of the prefeasibility study currently underway. The Company’s resources in the Bullabulling area total approximately 3.4 m ounces.
Cello Group (LON:CLL 34p/£27.89m)
Cello Group, the insight and strategic marketing company, provided a trading update for the 6 months to 30 June 2012, stating that it is trading in line with Board expectations and it has made material progress in its strategy of focusing Cello on servicing the pharmaceutical and health sectors. Whilst the consumer insight activities of the research and consulting division have been relatively weak, there has been a continued strong performance from pharmaceutical and health activities, and the Company is seeking to organically build this business in the US (increase in New York office space is expected). The communications business also delivered a six month performance in line with the Board’s expectations, with social media consulting and research capabilities that continue to grow- recently opening the business in New York and is due to open in Hong Kong later this year.
DDD Group (LON:DDD 25p/£33.55m)
Following the announcement last week that DDD had launched the Yabazam 3D movie app for Samsung Smart TVs with 3D capability, the Company this week announced that it has teamed up with WealthTV, the San Diego based luxury lifestyle and entertainment network, to bring its line up of 3D programming to Yabazam. The content provider has been delivering HD programming 24 hours a day since 2004, with content covering areas such as adventure travel, automotive, documentaries and more. The Yabazam 3D app is currently averaging over 1,000 app downloads per day. Jay Wiskerchen, DDD’s Vice President of Content Services, said: “WealthTV’s 3D programming is a great addition to Yabazam. WealthTV is dedicated to producing an extensive library of captivating 3D series and Yabazam’s goal is to bring engaging 3D content to viewers everywhere, so partnering with WealthTV makes perfect sense.”
EKF Diagnostics (LON:EKF 29p/£73.62m)
AIM listed worldwide manufacturer of point of care in-vitro diagnostic devices announced that its new Quo-Lab HbA1c analyser has received CE marking allowing the product to be formally launched in the European Union and European Economic Area countries. Quo-Lab is a semi-automated HbA1c analyser which provides an accurate, low cost, and easy-to-use technology for GP surgeries, diabetes clinics and laboratories. HbA1c monitoring is increasingly used in the detection and management of diabetes and the Quo-Lab analyser has been specifically designed to meet the needs of economies where diabetes is an increasingly large public health issue and resources are limited. In 2011 EKF sold its 1,000th Quo-Test analyser and the Company anticipates even greater demand for Quo-Lab which is positioned as one of the most cost effective HbA1c analysers on the market.
The second piece of news of the week for EKF was that it has signed an exclusive license agreement with the Joslin Diabetes Center, a teaching, research and clinical care affiliate of Harvard Medical School, to license certain novel kidney biomarker technology. The licence will provide EKF’s wholly owned subsidiary, Argutus Medical Ltd, with exclusive rights to the Joslin’s Intellectual Property surrounding two markers, Tumor Necrosis Factor Receptor 1 and 2, that, when found elevated in the blood stream, can help identify patients with Type 1 and Type 2 diabetes at increased risk of developing end stage renal disease up to ten years in advance. Clinical tests that are currently available cannot identify people at risk of end stage renal disease with a high level of precision. EKF will work in partnership with the Joslin Diabetes Center to further validate the findings for the two markers and develop clinical diagnostic tests to accurately identify diabetes patients with an increased risk of developing end stage kidney disease. Kidney complications are one of the most life-threatening complications of diabetes. About a half a million people in the US have end stage kidney disease, which requires treatment through dialysis or kidney transplantation. Nearly 44 per cent of these cases are due to diabetes. Currently, there is no accurate non-invasive test to identify patients at high risk of end stage kidney disease.
Fitbug Holdings (LON: FITB 1.5p/£2.53m)*
AIM listed provider of online personal health and well-being services announced that it has agreed two new sales contracts in the US worth a total of US$500,000. The first sale is a repeat order from The Vitality Group (TVG) in Chicago and reflects both strong general uptake of Fitbug by their clients and the introduction of Fitbug as a rewards redemption option. TVG, a customer since 2010, uses Fitbug’s proprietary activity tracking technology, devices, and data services to support its Vitality incentives program to large employers. TVG is the sister company to PruHealth in the UK and a subsidiary of South Africa based health insurer Discovery Holdings Limited. The second sale is to a leading US Conference and Exhibition business. The contract is for a 12 month workplace health programme to 3,500 employees which will encompass Fitbug’s recently launched Games Framework. The new challenge functionality supports Fitbug’s corporate sales objective of encouraging employee health and well-being and delivering engagement tools to ensure sustained participation. Gamification strategies delivered by Fitbug are proven to foster a fun approach to increasing activity levels, build team work, and motivation, and demonstrate effectiveness in health outcomes such as weight loss, increased fitness levels, reduced stress and improved sleep. Paul Landau, Fitbug Limited Chief Executive said: “These orders are further confirmation of the appeal and potential of Fitbug capability in the Connected Health market. We have been working hard to build new relationships in the US and continue to expand those that are already established. We have focused on forming strategic partnerships with US based organisations who can leverage Fitbug to add value to their propositions or their clients; these deals demonstrate that our efforts are paying-off and I certainly expect our US deal flow to continue.”
Forbidden Technologies (LON:FBT 27p/£23.38m)
Forbidden Technologies, the AIM quoted owner and developer of the FORscene cloud video platform, has announced that Halo, the award-winning, London based post-production facility, has chosen FORscene as its logging and rough cut editing platform. Since Halo started to use FORscene, they have ingested over 2,000 hours of media. The Company has also announced that its first FORscene Server Lite software client, Pegasus Works, is using the new software in its corporate workflows. Pegasus produces live events and videos globally. Its teams use FORscene Server Lite on laptops, at events and film shoots around the world. FORscene Server Lite ingests the video on location and uploads it into the FORscene cloud for review and editing. Forbidden expects the developments made to support the Pegasus workflows through FORscene Server Lite will prove attractive in the corporate environment, particularly where a rack-based server is not needed and a more lightweight, mobile solution is appropriate.
GETECH Group (LON:GTC 24.5p/£7.16m)
GETECH, the oil services business specialising in the provision of exploration data and geological exploration studies, announced that it has now signed a further licence for its Russian Arctic Shelf magnetic data set with a gross sales value of US$1.28m. The Russian Arctic Shelf is a major under-explored area which is still in the early stages of exploration for oil and gas due to its harsh climate conditions and high exploration/production costs. This followed on from an announcement earlier in the week that the Company had issued two licences for its global continental margins gravity and magnetic datasets with an aggregate value in excess of US$600,000.
HaloSource Inc (LON:HALO 55p/£27.67m)
HaloSource Inc., the clean water technology company traded on London’s AIM market, announced that it has made solid progress during the first half of 2012 whilst generating six-month revenue of US$5.8m, an increase of 7 per cent from H1 2011. This included significant gains from its two main growth divisions, drinking water and environmental water. The Company has enjoyed positive momentum and improving results since implementation of its new strategic plan under the leadership of CEO Martin Coles. The Company’s cash burn has been reduced by 50 per cent from US$10.7 m during H1 2011 to US$5.4 m during H1 2012, with cash and cash equivalents totalling US$8.0m as of 30 June. During the period, the Company signed agreements with three global partners relating to four major project areas in its Water Purification and Water Clarification business segments.
LiDCO Group (LON:LID 18.88p/£32.91m)
UK-based hemodynamic monitoring company announced that approval has been obtained for reimbursement in Japan of its single patient disposable kit with effect from the beginning of July 2012. This certification follows Japanese product approval for the LiDCOrapid monitor in May 2012, and the official launch of the monitor and associated disposable kit in Japan, in early June at the 59th Annual Meeting of the Japanese Society of Anesthesiologists. Under the terms of the reimbursement, LiDCO’s single patient disposable kit will be reimbursed at the same rate as the existing disposable product for minimally invasive hemodynamic monitoring in the Japanese market, while offering Japanese customers an easy to use product for the hemodynamic monitoring of surgical and intensive care patients. The reimbursement will comprise a flat fee per disposable kit used with the LiDCOrapid monitor plus an additional smaller procedure fee for the cardiac output / arterial pressure measurement.
Minera IRL (LON:MIRL 42.88p/£65.13m)
Minera IRL the Latin America gold mining company announced that it has filed and obtained a receipt for a final short form base shelf prospectus with the securities regulatory authorities in each of the Provinces of Canada, other than Quebec. This final base shelf prospectus will allow the Company to make offerings of debt and equity securities up to an aggregate initial offering price of CADUS$80,000,000 during the 25-month period that the final short form base shelf prospectus remains effective. Unless otherwise specified in a shelf prospectus supplement, the net proceeds from the sale of the Securities will be used for general corporate purposes including capital expenditures and working capital. The Company has no immediate plans to issue securities covered by the shelf prospectus.
Monitise (LON:MONI 29p/£303.24m)
AIM listed technology and services company delivering mobile banking, payments and commerce networks worldwide, announced an unaudited trading update following its 30 June 2012 financial year-end. Monitise’s 2012 full-year results are scheduled to be published on 4 September 2012. Full-year 2012 revenues are expected to be approximately $53m (£34m), nearly two and a half times the $22m (£14m) reported last year, making it the third successive year that revenue has more than doubled compared to the previous year. Profitability in live operations continues to show very strong year-on-year growth. Gross margins for the year are expected to be in the region of 66 per cent, compared with 62 per cent last year, and on track to hit more than 70 per cent by the second half of 2012/13. Demand for the Monitise Enterprise Platform is at an all-time high and investment in the platform and its global reach continues in line with market demand. Total Monitise registered customers are approaching 16m, three and a half times the level seen at the time of Monitise’s full-year results in September 2011. The group is attracting well over half a million new registered customers per month. The acquisition of Clairmail at the end of June further enhances Monitise’s position as the global leader in the fast expanding Mobile Money market. The order book of the combined Group at the end of June 2012, comprised of more than $170m committed minimum orders, plus a further $250m of additional revenues expected from existing contractual arrangements, making more than $420m (£270m) in total. Around $75m (£48m) of this order cover is expected to flow through to revenues in 2012/13. Total Group revenues in 2012/13 are expected to be in the region of $110m (£70m). The Group remains on track for EBITDA break-even by December 2013.
National Milk Records (LON:NMRP 42.5p/£3.12m)
PLUS-quoted leading supplier of dairy and livestock services has announced its audited results for the year ended 31 March 2012. The Company reported a net profit before tax of £440,000 (2011: £387,000) on a turnover of £17.9m (2011: £16.8m) and an increase of £222,000 in its net cash balance. A dividend of 2.1 pence per share is recommended to be paid on 30 September 2012 to shareholders, which amounts to £154,314. National Milk Laboratories continued to perform strongly, testing the quality of over 95 per cent of milk in the UK before it is sold to consumers. This service is now being used for the first time by Marks & Spencer in order to pay their farmer suppliers based on the quantity of unsaturated fat in the milk. The Company’s proprietary payment testing business in Ireland is marketed and delivered through Independent Milk Laboratories Limited, a company that has been set up with the Irish farming cooperative Progressive Genetics Ireland Limited. During the previous 12 months the Company has invested in a range of areas to improve services and streamline the business, the benefits of which are expected to be seen during 2013.
One Media Publishing Group (LON:OMPP 4.05p/£1.97m)*
PLUS quoted consolidators and acquirers of music and visual rights announced that it has appointed Julian Wall as Managing Director of the Group’s principle trading subsidiary One Media Publishing Limited. Julian is currently the Director of Independent Member Services & International Events for the BPI (British Recorded Music Industry) Ltd. The BPI (The music industry’s trade federation that runs `The Brits’), has 300+ independent music companies as members, plus the four major record companies; EMI, Universal, Sony and Warners. One Media has been a member of the BPI since 2006. Julian is staying in his position until the end of August with the BPI to effect an orderly handover. Julian joined the BPI in 2008 and has looked after the independent membership and international events section throughout. During his tenure, he is widely credited with refocusing the BPI’s independent agenda to be more practical, more dynamic and more business orientated for small and medium sized UK companies. In addition, there has been a substantial expansion of the international programme through BPI trade missions to the US, Japan, business centres in Europe and this year for the first time, a planned music mission to Australia. Prior to the BPI, Julian held management positions in marketing, sales and international licensing at a range of entertainment companies including Sanctuary Records, BMG/RCA/Arista (now Sony Music) and the Phonogram and MCA labels (now part of Universal Music). Julian will take up his appointment with One Media in September 2012. Michael Infante, Chairman and CEO said: “Julian will work on expanding One Media’s acquisition strategy together with managing the existing subsidiary board that is responsible for the Group’s day-to-day business. The Group is making a number of expansive strategic plans for 2013/14.”
Rambler Metals & Mining (LON:RMM 29.5P/£39.9m)
Rambler Metals and Mining, the copper and gold producer, has announced the sale of its first lot of 600 tonnes of copper concentrate from the Company’s 100 per cent owned Ming Copper-Gold Mine in Newfoundland and Labrador’s Baie Verte Peninsula, Canada. The buyer is Transamine Trading with 90 per cent provisional payment having been received. Provisional grade for the lot was 29.7 per cent copper, 5.43 g/t gold and 47 g/t silver with no deleterious material or penalties.
Richoux (LON:RIC 8.5p/£5.7m)
The Company today announced a trading update following the end of its half year ended 8th July 2012. The Company currently operates 12 restaurants; Richoux in Knightsbridge, Mayfair, Piccadilly and St John’s Wood; Zippers in Chatham; Villagio in Andover, Hammersmith, Berkhamsted and Basildon; and Dean’s Diner in Chatham, Port Solent and Braintree. The Board currently expects to report a profit for the 28 weeks ended 8th July 2012, before any new impairments or provisions are recognised, in the region of £400,000 including a net profit on disposal of approximately £130,000 following the disposals of its freehold central kitchen and disposed sites. The Company currently has cash of approximately £1,500,000.
San Leon Energy (LON:SLE 10.62p/£121.19m)
San Leon, the oil and gas exploration company in Europe and North Africa, has announced the successful completion of its third shale gas exploration well in Poland’s Baltic Basin. The Talisman Energy operated Szymkowo-1 well, on the Szczawno Concession in Poland, has been drilled to a depth of 4,551 meters. During drilling, continuous gas shows were encountered over more than 600 meters of the lower Silurian and Ordovician shales. The gas shows consisted of C1-C3 (methane, ethane, propane) and are consistent with a potentially wet gas system. The strongest gas shows were encountered in the Lower Silurian and Ordovician interval, which is estimated to be over 100 meters thick combined. Several intervals had significant gas shows which the Company believes are related to natural fracturing and possible over-pressure.
Sefton Resources (LON:SER 1.61p/£8.24m)
Sefton Resources, the independent oil and gas exploitation and production company, with interests in California and Kansas, announced an update on its operations. Oil production is averaging 170 barrels per day and is on a rising trend as the programme of well work overs and associated cyclical steaming continues with production peaking at over 200 barrels of oil per day. In Kansas, joint construction of the LAGGS-Southern Star Interconnect is now in progress. Southern Star project management timeline shows an estimated completion and activation date in September 2012, but Sefton is trying to accelerate all construction items under its control, so that the LAGGS pipeline becomes operational as soon as possible. The Company has identified 23 potential recompletion oil and gas wells in the proximity to the LAGGS pipeline. Development of the oil wells will be prioritised so as to deliver first revenue from Kansas. Further wells are being added as leases are acquired and brought into play by the joining of the Vanguard pipeline to the LAGGS-Southern Star system which is timetabled for completion by the year-end.
Sorbic International (LON:SORB 9.25p/£4.17m)
AIM listed and third largest sorbates producer in China today gave an update to shareholders on its manufacturing facility in Ulanqab City, Inner Mongolia. The Company recently met with local authorities in Ulanqab City, Inner Mongolia to discuss the effects on the Company of the proposed zone reclassification and to seek clarity on any potential compensation plan that would be offered by the Ulanqab authorities. The Company is appreciative of the support it has received both from the Embassy and the Chinese Government. Talks between the two parties were constructive and positive for Sorbic. The Company was informed that the site where its manufacturing facility is currently situated is to be utilised for a passenger railway terminal and Sorbic has been offered land on an adjacent site, approximately 0.5km away, for a new manufacturing facility. In terms of compensation, Sorbic was informed that the Company would suffer no financial loss as part of this rezoning and the details, including timing, of the compensation package are currently under negotiation. As soon as these negotiations are finalised, the Company will update shareholders.
Sphere Medical Holding (LON:SPHR 80p/£29.44m)
Sphere Medical, the developer of monitoring and diagnostic products for the critical care setting, has announced that its Pelorus 1500 has achieved CE Marking as an in-vitro diagnostic medical device. The CE mark enables Sphere Medical to place the Pelorus 1500 for sale in all the member countries within the European Economic Area. The Pelorus 1500 is the world’s first point-of-care in-vitro diagnostic medical device for the rapid measurement of the concentration of the intravenous anaesthetic propofol in blood samples and has been developed specifically for anaesthetists in the critical care setting. The Pelorus 1500 will for the first time allow anaesthetists to know the actual rather than predicted concentration of propofol, allowing the personalisation of dosing to the patient. Sphere Medical expects the Pelorus 1500 to be used in conjunction with existing commercially available dosing pumps. The Company has received early indications of interest in the Pelorus 1500 from potential commercial partners.
StatPro (LON:SOG 89p/£54.66m)
AIM listed provider of portfolio analysis and asset pricing services for the global asset management industry, issued a half year trading update for the Company. Revenue and profit for the first half is in line with expectations, with ‘good levels’ of revenue for both StatPro Revolution and StatPro Seven. The Company posted net debt of £3.9m (up from £3.4m in December 2011) after restructuring costs to focus on cloud services and an increased final dividend. Revolution has been able to push past the 100 clients mark, ten of which are fund administrators, across the world and continues to build momentum having launched in March 2011. Whilst Revolution almost seems the step forward software offering, a number of new clients also signed up for Seven and also some signed contracts for StatPro Seven linked to StatPro Revolution. The Company also extended its credit facilities with RBS to £10m (reducing by £0.5m every 6 months to £7.5m in 2015).
Summit Corporation (LON:SUMM 2.38p/£8.41m)*
UK drug Discovery Company today presented positive preclinical data on its OGA (O-linked N-acetylglucosaminidase) inhibitor programme for the treatment of tauopathies at the Alzheimer’s Association International Conference 2012 (AAIC 2012) being held in Vancouver, Canada between 14-19 July 2012. Summit reported data on its potent and highly selective small molecule inhibitors of the enzyme OGA. In in vitro and in vivo studies, OGA inhibition significantly decreased the amount of abnormal tau. In addition, the OGA inhibitors were able to penetrate the blood brain barrier in vivo. Based on these positive results, the programme will advance to efficacy studies of these OGA inhibitors in in vivo disease models.
Sunkar Resources (LON:SKR 5.1p/£8.5m)
Sunkar Resources has provided an update relating to Direct Application Rock (DAR) accreditation for sale in Russia, the leasing of surplus equipment and the appointment of a new CFO. In its preliminary results Sunkar announced that it had taken orders for over 12,000 tonnes of DAR from local Kazakh farmers. The Company has now shipped 1,777 tonnes to this sector in May and June 2012, and accelerated rail deliveries to satisfy the remaining orders expected in August, September and early October. In addition, as reported on 23 April 2012, 12,223 tonnes of a 16,000 tonnes DAR order from a Russian fertiliser company has already been shipped during the current year. The Company’s wholly owned subsidiary Temir-Service LLP has received accreditation for sales of DAR from Chilisai in Russia; the certificate is valid until June 2022 and states that the product is cleared to be used for all crops. As a result, the Company has already received a number of orders from the Russian agricultural businesses amounting to 5,800 tonnes of DAR, of which 248 tonnes have already been shipped. Temir-Service LLP has also entered into an agreement to contract its beneficiation equipment, together with the personnel to operate the equipment, to a local quarry operator, which will be used to produce at least 50,000 tonnes of road construction grade gravel per month until November 2012, generating income to the Company of approximately $100,000 per month.
The Company has also announced the appointment of Tim Slater as CFO on a part-time basis, which the Board believes is ideal for the Company’s current requirements.
Tanfield (LON:TAN 44.88p/£55.57m)
Tanfield announced that it has raised approximately £2.0m net of expenses to enable the company to provide a loan facility to its associate company Smith Electric Vehicles Corp. These funds were raised by way of a placing at a price of 42p per share, realising gross proceeds of £2.2m. Tanfield, which owns a 24 per cent stake in Smith, has agreed to provide a short-term bridging loan to Smith, a US entity, to provide liquidity support prior to Smith’s planned IPO. The loan matures 180 days from issuance and must be repaid upon the closing of Smith’s IPO. Smith has engaged with its key shareholders to obtain bridge financing totalling in excess of US$12m. Tanfield will earn market rates for the provision of the loan. In the event the IPO does not take place and the loan had been drawn down, Tanfield’s loan, along with the other providers of bridging finance, would stand as a senior unsecured obligations of Smith.
Transense Technologies (LON:TRT 15p/£28.38m)*
AIM listed provider of sensor systems for the transportation and industrial markets announced that its trading division, IntelliSAW, a leading provider of next generation wireless sensor systems for smart grid applications, has entered into a strategic distribution agreement with Green Electric Solutions S.A., a division of the Peruvian firm ELTROTEC S.A.C. Based in Lima, Green Electric Solutions is focused on combining emerging technologies with advanced systems engineering for the electric power industry. Peru’s economy is steadily expanding, and with it, significant investments are being made in energy infrastructure to increase capacity and modernise the existing grid. For IntelliSAW, this represents an opportunity to further serve the South American market with sensor systems that enable the cost-effective management of wide-scale power grid networks through real-time condition-based monitoring.
UKrProduct (LON:UKR 11.25p/£4.59m)
Ukrproduct Group, one of the leading producers and distributors of branded dairy products in the Ukraine and now in addition beverages (kvass) published a trading update ahead of its first half year results in September 2012. The dairy sector was mainly affected by the ban on hard cheese exports to Russia which caused an oversupply in the domestic market of hard cheese and consequently of butter and skimmed milk powder as several producers chose to switch to the output of these products. On the positive side, the restrictions on the export to Russia together with the re-introduction of the milk subsidy regime prompted higher milk volumes available in the Ukraine and resulted first in a stabilisation and later in a gradual decrease in raw milk prices. The highlight has been the performance of the recently acquired business of kvass, where sales demonstrated a significant increase as the Company expanded the geography of sales and strengthened the presence in the existing regions, largely supported by the integrated marketing communication. Profitability therefore showed a very encouraging growth unhindered by the economic environment. Ukrproduct contracted with three large retail chains and further increased its active client base. Furthermore Ukrproduct opened a direct sales office in Odessa aimed at increasing the Company’s presence in the Southern Regions of the Ukraine. A very important step forward was made on the operational side with the completion of the first stage of a modernisation project financed by the European Bank for Reconstruction and Development. This modernisation will substantially improve energy efficiency and productivity of the Starokostiantyniv Dairy Plant, driving down the unit cost.
Wentworth Resources (LON:WRL 46p/£37.02m)
Wentworth Resources, an independent oil & gas company focused in the Rovuma Delta Basin of coastal southern Tanzania and northern Mozambique, has announced that all the necessary Government approvals have now been received for the proposed purchase of Cove Energy’s 16.8 per cent participating interest in the Mnazi Bay Concession held by Cove’s subsidiary, CETMBL, in exchange for terminating its 4.95 per cent royalty interest out of net profits from Cove Energy’s 8.5 per cent interest in the Offshore Rovuma Area 1 Concession in Mozambique. As part of the purchase agreement, Cove will receive two million new shares in Wentworth and a contingent payment of up to US$8.5m, should certain future natural gas production thresholds from Mnazi Bay be reached. Further, Wentworth has entered into an agreement to sell 60.075 per cent of the shares of CETMBL to Maurel et Prom’s (M&P) for a cash consideration of approximately US$18.9m to be paid to Wentworth upon closing, with M&P assuming 60.075 per cent of the contingent payment due to Cove Energy. Wentworth and M&P have agreed that upon completion of the transactions their respective pre-emption rights under the Joint Operating Agreement will be fully satisfied.
William Sinclair (LON:SNCL 157.5p/£26.81m)
One of the UK’s leading suppliers of growing media to the horticulture industry announced that it intends to commission a second production facility in the north of England that produces SuperFyba, the Company’s peat free product. £1.5m will be invested lifting production to around 150,000m3 per annum (an increase of over 200 per cent), and helping the Company move towards reducing the Company’s exposure to a poor peat harvest due to inclement weather and create greater efficiencies. Demand for peat free material continues (as demonstrated by its extensive use at the development of the Olympic Park in London), with a government target to eliminate peat use in horticulture by 2030.
*A corporate client of Hybridan LLP
A full archive of previous weeks’ Small Cap Wraps can now be viewed on www.hybridan.com.
The Hybridan Small Cap Wrap is a weekly review of some of the most interesting small cap stories of the past week. Our review will usually be of those companies whose market capitalisations are less than £50m although we may occasionally cover larger companies.
10 July 2012
This week: A golden update from Silverdell, Imperial spending and TRE emits an update.
In the week to Friday, the FTSE 100 saw a 90 point rise to 5,670 points, whilst the AIM All Share saw a 20 point rise to 695 points. This is despite the LIBOR issues that dominated the news headlines last week, with news of the BoE decision to inject £50bn of cash into the economy countering the negative news. Other news included Eurozone ministers agreeing to offer Spain EUR30bn for its banks following a sharp rise in the yield on Spanish bonds. The week ahead sees industrial production and manufacturing output data, together with trade data all being announced.
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Disclaimer- This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only- please refer to the disclaimer in full below.
APH Pre-Close Trading Update, AYM Blockade Removed, AKT Board Changes, BAO Strategic Placing, BHR Resources Expansion Project Update, BGBL Final results, BSST Order from Bank of China, BGL Expiry of option, CRG Board changes, DDD Launch of 3D movie app, DEMG Pre-close update, EHP CE mark for test, FBT Lion Television’s facility adds FORscene, GBG AGM statement, IVO Investment, MSG MoU/warrant terms to change/legal claim settled/new FD, MIRL Community Agreement, MONI App from HSBC, NPT Trading Update, OMI Operation Permit, OVG Operational update, OXB Initiation of Phase II Collaborative Study, RCG Board changes, SEA Tender Offer, SID Contract Wins, SPH Pre-close Trading Statement, SDM Trading Update, SPHR First Sales Order from Sorin, STEL Resource expansion, THAL Contract Update, TRE Realisation Update, TSTL Supply & distribution agreement, SNCL Trading Update, XEN Puts together Scientific Advisory Board.
Alliance Pharma (LON:APH 23p/£55.06m)
The speciality pharmaceutical company this morning announced its pre-close trading update ahead of the announcement of its interim results for the six months ended 30 June 2012. Trading has been in line with management’s expectations, with turnover of approximately £22.0m in the six months ended 30 June 2012. Hydromol(TM) continues to perform well, with growth of 28 per cent over the first half of 2011. As announced on 22 June 2012, Sanofi Pasteur has temporarily suspended manufacturing of ImmuCyst(TM) with supply estimated to resume in late 2013. Alliance continues to explore a number of acquisition opportunities, some of which are at a very advanced stage. The Company’s interim results for the six months ended 30 June 2012 are scheduled to be released on 12 September 2012.
Anglesey Mining (LON:AYM 12.25p / £19.43m)
Anglesey Mining’s 26 per cent owned associate, Labrador Iron Mines Holdings Limited, (LIM) reported on 3 July that a barricade was blocking access to its mining operations in the Schefferville area, which had also affected other mine developers and exploration companies within the region. LIM believed that the barricade consists of a local group of Schefferville residents, not sanctioned by any aboriginal community. By the 9th July, the Company reported that full-scale operations had resumed after the five day blockade was removed. During this period, operations were minimally impacted as LIM continued to load trains and transport iron ore to the Port of Sept-Îles. Mining of direct rail ore continued throughout the week while plant operations at the Silver Yards Processing Facility were temporarily halted. Full-scale mining operations will now ramp up to a full production rate over the next few days and the exploration team has resumed its fieldwork program. There has been no impact on the 2012 saleable production target of 2m tonnes of iron ore.
Ark Therapeutics Group (LON:AKT 2.99p/£6.26m)
Ark Therapeutics Group last week announced Dr David Venables has been appointed as Chief Executive Officer with effect from 1 August 2012. Since joining the Board in April of this year, David has focused on the development of Ark’s viral development and manufacturing capabilities based in Kuopio, Finland. David has put in place a clear plan to build a sustainable revenue generating business utilising Ark’s extensive proprietary science base. Martyn Williams, who joined the Company in October 1998 as Finance Director and became CEO in mid 2010, will hand over to David and leave the Company on 31 July 2012. Martyn has led a significant transformation over the last two years, which has resulted in the business being considerably re-focused.
Baobab Resources (LON:BAO 8p/£17.13m)
Baobab Resources the iron, base and precious metals explorer with a portfolio of mineral projects in Mozambique, announced a placing of 50,000,000 ordinary shares at a price of 8p, raising £4,000,000 before expenses. The Company has entered into an agreement with Redbird Investments, a fully owned investment vehicle of African Minerals Exploration & Development SICAR SCA (the Fund). Under this agreement, Redbird has agreed to subscribe for the shares and has been granted 25,000,000 warrants that are exercisable at 12p per share up to 6 July 2013; which, if exercised, would bring the total investment up to £7m. As part of this Placing, under certain ancillary agreements, the Fund will appoint a nominee to the Board of Baobab and has the right to appoint a further nominee upon exercise of the warrants. Funds raised will be used for the completion of the pre-feasibility study on Baobab’s highly prospective Tete Project and to provide on-going working capital for the Company. Drilling on the Ruoni Flats (see RNS dated 24 May 2012), where a 120Mt to 260Mt Exploration Target has been estimated by consultant Coffey Mining, has continued to intersect a thick, heavily mineralised package and the Company looks forward to presenting the drill hole analytical results as they become available.
Beacon Hill Resources (LON:BHR 5.69p/£59.83m)
The expansion of the Minas Moatize Coal Mine is based upon increasing production to 4Mtpa Run-of-Mine, producing on average 2.2Mtpa of saleable coking and thermal coal during its mine life. The commencement of Phase III is subject to certain key milestones, including rail allocation, where the Group is involved in ongoing discussions with the operator of the Sena railway, CFM, and anticipates being able to enter into a formal agreement for an allocation before the end of the year, finalisation of the design of the Phase III Coal Handling and Preparation Plant (CHPP) – this is an ongoing process following the finalisation of the initial design, and financing, for which the Group is in ongoing discussions with a number of banks and project financiers to fund the capital requirement associated with Phase III. The Group has recently completed a drilling programme, which comprised 19, the core samples from which have been forwarded to laboratories in South Africa and the United States for further testing and evaluation. Washability, liberation and flotation testing for the Phase III CHPP design is underway based on the drill programme undertaken. Beacon Hill Resources is pleased to announce the appointment of Mr. Nathan Culkin as General Manager Coal Processing and Quality, Minas Moatize Limitada. Mr. Culkin will be responsible for the day to day operations and development of the mine processing and coal quality functions at the Minas Moatize Coal Mine and at the Group’s coal loading facility at the port of Beira.
Bglobal (LON:BGBL 9.385p/£9.97m)
Bglobal, the provider of smart metering solutions to the energy market, has announced that revenues fell by 35 per cent to £18.4m in the year ending March 2012. This reflects the marked slowdown in the volume of meter installations taking place in the industrial and commercial sector as a result of the uncertainty around the mass rollout of smart metering in the UK. However, sales derived from data collection and aggregation services grew strongly in the year, increasing by more than 32 per cent. The Company continued to generate net cash from operations and cash balance at the end of the financial year was £3.5m. The management believes that the Company is well placed to take advantage of the mass rollout of smart meters and smart data to help customers use less and pay less for their energy.
BlueStar SecuTech (LON:BSST 9.75p/£7.10m)
BlueStar SecuTech, a provider of digital video surveillance solutions in China, has received a further order from the Bank of China. The order, worth approximately RMB9.6m (£1m), will see BlueStar supply and install its surveillance equipment for Bank of China ATM machines within four provinces in China. Installation of this equipment is expected to be completed by the end of September 2012. The Bank of China is one of China’s four state-owned commercial banks and is one of the largest in the world. The Company has been providing surveillance equipment for Bank of China’s entire ATM network within China since 2007.
Bullabulling Gold (LON:BGL 12p/£34.68m)
Bullabulling this morning announced that a call option held by the Company to acquire the Geko Gold Project has expired. After careful consideration, the Company elected not to exercise the option having concluded that acquisition of the project under the terms of the call option would be excessively dilutive and therefore not in shareholders’ best interests. Bullabulling Gold believes that there is significant potential to expand its current resource base through further exploration of the Company’s existing wholly owned tenure and this growth path will be pursued ahead of acquisitions that risk erosion of shareholder value. The Company’s near term focus remains the completion of the pre feasibility study into development of the 34 million ounce Bullabulling Gold Project.
Corin Group (LON:CRG 49.5p/£21.18m)
Leading manufacturer and supplier of orthopaedic devices, has promoted Russell Mably to Chief Operating Officer and appointed him to the Board with immediate effect. Russell Mably joined Corin from Biomet in November 2008 as Group Marketing Director. In November 2009, Russell was appointed Managing Director, Commercial Operations, with responsibility for the Group’s worldwide sales and marketing operations. Following the retirement of Graeme Hart at the recent AGM, the number of non-executive directors has reduced to two. Therefore, the Board intends to appoint another non-executive director in due course to restore the appropriate balance of three executive and three non-executive directors.
DDD Group (LON:DDD 25p/£33.55m)
DDD Group, the 3D solutions company, has launched the Yabazam 3D movie app for Samsung Smart TVs with 3D capability. The free download streams 3D movie trailers from the growing collection of 3D movies available at Yabazam.com. Later this month customers will also be able to download full length 3D movies for a pay-per-view fee. The Yabazam 3D app and its 3D content portal, Yabazam.com, provide a library of 3D content beyond the 3D features released by the major studios. Its latest release is the acclaimed “UYUYUI!” from Timbo Estudio, which triumphed on the international festival circuit in 2011, with awards from 3D Film Festivals in Belgium, Tokyo and Los Angeles. Other popular titles include the Safety Geeks SVI series, the Curse of Skull Rock and Rio de Janeiro Carnival. Yabazam was launched in late 2009, becoming the first online portal to offer high definition 3D movies. The new 3D app expands Yabazam’s reach to a much wider audience and gives the owners of Samsung Smart TVs with 3D capabilities access to an even greater range of 3D content.
Deltex Medical Group (LON:DEMG 25.5p/£38.26m)
The global leader in oesophageal Doppler monitoring (ODM) announced an update of its trading performance for the six months ended 30 June 2012. UK surgical probes grew at 30 per cent – almost double the rate achieved in 2011; the installed base of monitors, the platform for future growth, increased from 520 to 570 in UK operating theatres; the NHS drive to implement fully ODM or similar fluid management monitoring technology is expected to be launched over the summer; and sales are to plan at £3.2m. Deltex Medical entered 2012 with the foundations in place to underpin long term and accelerating growth in its key markets and in the year to date has seen encouraging signs of growing momentum in a number of these markets. In France, the professional anaesthesia society is expected to publish guidelines before the end of the year stressing the fundamental importance of fluid management and, therefore, ODM during surgery. In Spain, early feedback from the largest trial of intra-operative fluid management ever undertaken may be sufficient to facilitate their starting to push for system-wide adoption of CardioQ-ODM. In the USA the Centers for Medicare and Medicaid Services (CMS) have announced that in October they will launch a specific procedure code for professional reimbursement of doctors using ODM: this is expected to overcome systemic barriers to CMS implementing successfully its existing national coverage determination.
Epistem (LON:EHP 410p/£36.29m)
The biotechnology and personalised medicine company announced the registration of its rapid molecular test for Tuberculosis (TB) test as a CE Marked in-vitro diagnostic medical device (CE-IVD). The registration enables Epistem and/or its authorised representatives to place its TB test and Genedrive(TM) units for sale in the EEA member state markets. Genedrive(TM) provides a major advance in next generation molecular diagnostic testing by providing a rapid (30 minute), low cost, simple to use ‘Point of Care’ device with high sensitivity and specificity. Genedrive™ will be targeted at providing ‘gold standard’ identification of Mycobacterium tuberculosis and antibiotic resistance testing and will be priced competitively with traditional less reliable methods of diagnosis such as microscopy and culturing. The World Health Organisation (WHO) has publicly recommended that nations incorporate new rapid molecular tests for tuberculosis into their disease testing programs. On the back of this CE-IVD registration, Epistem is now preparing regulatory submissions for India in advance of the anticipated launch of its first molecular TB test including patient assessment for antibiotic resistance towards the end of this year.
Forbidden Technologies (LON:FBT 27.75p/£24.03m)
AIM quoted owner and developer of the FORscene cloud video platform announced that Lion Television is using FORscene as its logging and rough cut editing platform at its facilities in Scotland. Lion Television already has a long standing relationship with Forbidden, and is well versed with the FORscene platform having used it for over 18 months at its London facility in conjunction with post productions of Dream Date and Noise Squad. The addition of its Glasgow facility will significantly strengthen the relationship between Lion Television and Forbidden with initial projects to include Homes under the Hammer.
GB Group (LON:GBG 79p/£85.32m)
GB Group, the Identity Management specialist, provided a trading update at its AGM. The Company made good progress in the first quarter of the financial year, experiencing strong year on year growth. The DataAuthentication division, which provides the electronic ID verification component, continues to grow, benefiting from new client additions as a result of both the enrichment of its solutions and the increasing demand for electronic identity verification solutions. The DataSolutions division, which provides the remaining three of the Company’s identity management offerings, ID Customer Registration; ID Tracing; and ID Marketing Services, continues to grow both organically and as a result of the acquisitions made over the last 12 months. The three acquisitions made during the last financial year have been successfully integrated into the business and continue to trade in line with management expectations.
Imperial Innovations Group (LON:IVO 299.5p/£298.45m)
Imperial Innovations Group, a leading technology commercialisation and investment group, announced that it has led a £22m funding round for PsiOxus Therapeutics, which is a development stage biotechnology company using non-traditional approaches to novel therapeutics for cancer, wasting diseases and other unmet clinical needs. Other participants in the funding round include Invesco Perpetual, SR One and Lundbeckfond Ventures, and following its investment (£5.5m this round); IVO will hold a 26 per cent stake in the Company. Funds will be used by PsiOxus to advance the clinical development of ColoAd1- a highly potent broad-spectrum anti-cancer therapeutic capable of destroying tumour cells at minute concentrations, with first clinical trials expected to be initiated later this year. This follows last week’s news that one of its portfolio companies, Abingdon Health, has made an investment and acquired a controlling 80 per cent interest in Forsite Diagnostics, a private UK-based contract developer and manufacturer of lateral flow diagnostic products.
Milestone Group (LON:MSG 0.88p/£3.26m)*
Milestone, the AIM quoted provider of digital media and technology Solutions has this last week made no less than four announcements. It announced that it has entered into a Memorandum of Understanding with Conveycentric Limited to develop a Mortgage Fraud Alert software product. Conveycentric has launched risk management products, including LENDERmonitor and COMPLETIONmonitor and, with the Council of Mortgage Lenders and experts in the Professional Indemnity insurance market to provide software services to the legal industry. These solutions assist with compliance within the conveyancing process and provide law firms with an audit trail as a result of their use. In addition leading insurance brokers promote these products as best practice risk management tools to lawyers. Milestone has agreed to establish a Mortgage Fraud Alert System under which a number of its strategic partners and relationships with a proven track record in the security and risk, law enforcement, legal and financial services sector will be engaged to develop this product for the purposes of problem solving and crime prevention. Simon Seaton, co-founder of Conveycentric, is to join the Milestone management team.
Milestone also announced an amendment to the terms of its warrants; the Company announced that it is extending the exercise period of the warrants by a period of one year, therefore the warrants exercisable at a price of 1.75 pence would be exercisable up until 15 August 2013 and the warrants exercisable at 2.25 pence would be exercised up until 15 August 2014. Warrant holder approval is being sought. Milestone separately announced that a legal claim brought against it by a shareholder of the Company has been settled at no cost to the Company. This morning Milestone announced the appointment of Mr. James (Jim) Brown as a director of the Company, as Group Finance Director. Jim has over twenty years’ experience of working with private and listed companies, most recently working at BDO LLP as Lead Partner for the Bristol office heading up their audit team leaving in May 2012 to pursue a career in Industry.
Minera IRL (LON:MIRL 43.88p/£66.65m)
Minera IRL, the Latin American gold mining company, announced that it has signed a Social License Agreement for a period of ten years with the communities of Jaramillo and Fitz Roy relating to the development of the Don Nicolas Gold Project, in the Province of Santa Cruz, Argentina. The objectives of the Agreement are to jointly develop policies for local training, jobs and sustainable health programs as well as to establish supply companies to complement and diversify the provision of goods and services required by the future Don Nicolas mine. The Don Nicolas Feasibility Study was completed in February 2012. The Environmental Impact Assessment was submitted to the Santa Cruz authorities in May 2012 thereby commencing the process of obtaining the development and operating permits for the Don Nicolas Project. Gold production is projected to begin in late 2013 and the mine will produce an average of 52,000 ounces of gold and 56,000 ounces of silver per year.
Monitise (LON:MONI 30.5p/£317.06m)
Monitise, which provides end-to-end solutions that enable banks and their customers to undertake banking transactions via mobile phones, announced the launch of its Fast Balance app with HSBC, giving their customers instant current account balance information and top up airtime for their Android Smartphones and Blackberries. The service launched earlier in the year on the iPhone, and is part of a three-year deal announced in April. This deepens the comprehensive mobile banking solutions being offered by many of the clients of Monitise and shows off the technical capabilities of the Monitise team. At the end of June, it was announced that the Co-operative Bank had been added to the growing number of operators selecting Monitise for mobile banking services, which in this case was part of a three year deal.
NetPlay TV (LON:NPT 10.12p/£28.65m)
NetPlay TV, the interactive gaming company, announced that the Company’s Q2 Key Performance Indicators are significantly ahead of the same period in 2011. Growth in new depositing and total depositing customers year on year has resulted in a 48 per cent increase in Q2 2012’s average daily revenue, versus Q2 2011. Following a strong Q1, revenue has also increased by 3 per cent quarter on quarter against the trend of Q2 being seasonally quieter than Q1.
Orosur (LON:OMI 41.5p/£32.4m)
Orosur Mining, the South American-focused gold producer and explorer, announced that the Uruguayan National Environmental Agency has granted the operating license on 4 July 2012, for disposing of tailings at the new Tailings Storage Facility at the San Gregorio mine, Uruguay. The permit has been signed by the Minister of the Environment of Uruguay and is valid for the first phase of tailings disposal. The new facility has been designed to be built in four phases, each phase requiring continued, staged environmental approval. The granting of staged operating licenses is a result of a recent change on the Uruguayan environmental legislation. The Company does not anticipate that the change in the permitting process will cause any issues for Orosur. The Company also announced the appointment of Walter Muelebach as General Manager of Exploration. Walter is a Chilean national and has worked for Xstrata Copper/Noranda as a Program Manager over the past 14 years. He has also previously worked for Teck Chile and Anglo American Chile in the Maricunga Belt, where Orosur has its Pantanillo project.
Ovoca Gold (LON:OVG 10.625p/£9.28m)
Work program activity is peaking on Ovoca Gold projects at this time of year, with the optimal time for access to the licenses being in the summertime. Work is progressing according to plan with no significant delays experienced on the Rassoshinskaya and Stakhanovskiy Projects. A bulk sampling plant is fully operational and processing sample at the Stakhanovskiy Project from new trenches and large bulk samples that have been excavated. Diamond core drilling is planned to commence later this month. An updated resource estimate on the current JORC Inferred category resource is planned to be completed by the end of 2012 once all bulk sampling, trenching and drilling has been completed and the results have been received.
At the Rassoshinskaya Project HQ-sized diamond core drilling has been undertaken on two advanced prospects at Podgorniy and Zet to the north of the Olcha JORC Inferred resource. The first assay results at Zet demonstrate that the typical mineralisation at this prospect is composed of a small high grade gold-silver quartz-adularia vein within a broad zone of low grade but anomalous gold and silver values.
Oxford BioMedica (LON:OXB 2.4p/£22.68m)
Oxford BioMedica, the gene-based biopharmaceutical company, has announced that its partners at Cardiff University have initiated a Phase II trial to assess the safety and immunological activity of TroVax®, a therapeutic vaccine developed by Oxford BioMedica, in patients with inoperable metastatic colorectal cancer. The study will be funded by Cardiff University, with some funding awarded by Cancer Research Wales, and Oxford BioMedica will provide TroVax®. The trial is supported by the Experimental Cancer Medicine Centre, Cardiff.
RCG Holdings (LON:RCG 5.26p/£25.94m)
RCG Holdings, the supplier of biometric and RFID products and solution services with a primary focus in the Asia Pacific and the Middle East markets, has announced that Mr. Chong Cha Hwa has been appointed as an executive Director of the Company. Mr. Chong is a fellow member of the Association of Chartered Certified Accountants and a member of the Malaysian Institute of Accountants. Prior to joining the Group, Mr. Chong gained more than 16 years of experience in accounting and finance with private and listed companies in Hong Kong and the Southern Asia region. Presently, he is also an independent non-executive director to China Mining Resources Group Ltd and Boshiwa International Holding Ltd, both listed on the stock exchange of Hong Kong. The Board of RCG has also announced the resignations of two independent non-executive directors, Mr. Liu Kwok Bond and Mr. Li Mow Ming, Sonny.
SeaEnergy (LON:SEA 32.12p/£22.2m)
The Company published a circular to the shareholders of the Company detailing the proposal to return surplus cash to Qualifying Shareholders by way of a proposed tender offer, pursuant to which Investec Bank plc will purchase approximately 27.78 per cent of the Company’s existing issued Ordinary Shares at a price of 36 pence per Ordinary Share, which represents a premium of 32.7 per cent. over the closing mid-market price of the Ordinary Shares on 5 July of 27.12 pence, being the last dealing day before the date of the announcement. This will result in an approximately £6.9m being paid to Qualifying Shareholders who accept the Tender Offer, which equates to 10 pence per Ordinary Share in issue immediately prior to completion of the Tender Offer.
Silverdell (LON:SID 13.88p/£43.46m)
Silverdell, the Specialist Environmental Support Services group, has secured two decontamination and dismantling contracts in Canada worth £13m in total, and follows on from the acquisition of EDS (a specialist provider of decommissioning and dismantling services) announced in May. The larger contract, worth £10.7m (including £1.25m of asbestos removal work previously announced on 11 May 2012), involves the complete disinvestment of a plant in Milhaven, Ontario in the Chemicals sector and includes decontamination, demolition and selective dismantling as well as asset recovery and the marketing of equipment for re-use. The smaller contract for £2.2m is for an international pulp and paper company and involves the dismantling of a pulp and paper mill plant in Chandler, Quebec, with recovery of equipment for reuse in Vietnam.
Sinclair Pharma (LON:SPH 26.88p/£107.75m)
Sinclair IS, the international specialty pharma company, this morning announced a trading update for the twelve months ended 30 June 2012 ahead of its full year results which will be announced on 13 September 2012. Revenues for the full year, which include a first contribution from Advanced Bio-Technologies Inc. (ABT) from 15 December 2011, are expected to be £51.3m following a strong performance across the Group in the second half. Revenue growth for the full year is expected to be 56 per cent on a reported basis and 11.3 per cent on a Like for Like (LfL) basis (H1 FY12: 8.7 per cent LfL). LfL revenues exclude product acquisitions and disposals, one-off licence fee income and currency fluctuations. As a result, adjusted EBITDA is expected to be at least in-line with market expectations. As expected, the Group’s core 5 EU Country operations returned to growth in the second half following a flat LfL performance in H1, delivering LfL revenue growth of 3.7 per cent for the full year. Excellent LfL growth of 36.0 per cent in International operations for the full year, included growth in Asia of 155 per cent. We expect strong international growth to continue in FY13 with several new launches in Asia and the first LATAM partnership to be announced this year.
Stadium Group (LON:SDM 63p/£18.55m)
Stadium Group, provider of electronic equipment manufacturing services and power supplies, provided a pre-close trading update for the six months ended 31 June 2012 where it stated that sales were below that reported for the same period last year due to the underlying economic environment and the impact of the Company’s decision to withdraw from a number of low margin legacy contracts, with a consequent impact on the Company’s profits. However, a number of business wins during the period are expected to help during the second half 2012, as will operational improvement in overheads, factory efficiency and procurement. Pre-production trials for 2 significant contracts are currently underway, and it continues to pursue complementary acquisition targets. Half year results for the Company are due on 4th September.
Sphere Medical Holding (LON:SPHR 74.5p/£27.42m)
Sphere Medical, a leading developer of innovative monitoring and diagnostic products for the critical care setting and Sorin Group (SORN.MI), a global medical device company and Europe’s largest medical technology group specialising in the treatment of cardiovascular diseases, announced today that Sorin Group has placed an order with Sphere Medical for cardiopulmonary bypass monitors (CPB) and microanalyser consumables for delivery in Q4 2012. In 2008 Sphere Medical and Sorin Group signed a development and supply agreement in relation to the CPB product and this order represents the first sale for this product which will be used by Sorin Group in Market Assessment Studies which are scheduled to commence later this year. CE Marking of the CPB product is anticipated to coincide with the commencement of the Market Assessment Studies. Satisfactory completion of these studies is expected to lead to a European launch by Sorin Group of the CPB product, which is currently scheduled for Q1 2013. The first commercial sales of the CPB product are anticipated to coincide with the European launch. The CPB product has been developed to enable the continuous blood monitoring of patients undergoing cardiopulmonary bypass surgery, where close monitoring of oxygenation and other blood parameters are critical.
Stellar Diamonds (LON:STEL 3p/£8.51m)
London listed diamond Development Company focused on West Africa, has announced the commencement of its Phase-2 resource expansion drilling of the 660,000 carat Dyke 1 kimberlite at its Tongo diamond project in eastern Sierra Leone. Boart Longyear has been contracted to drill up to 3,000m in July and August and has recently mobilised to site and commenced drilling. The programme is designed to drill the as yet untested 600m strike of Dyke 1 and to extend the inferred resource to a depth of 300m from surface. Assuming grade continuity along strike and at depth, which will be modelled by microdiamond analysis, and assuming similar widths to the dyke as already drilled this would enable the current 660,000 carat resource to potentially be increased to over 1.2m carats. Also, CAE Mining Africa has been appointed to oversee the exploration drilling programme, independently verify the technical data collected and update the current resource model with this technical data. An updated independent resource report will be compiled and issued by CAE Mining Africa on completion of the exercise, currently expected for early fourth quarter of 2012.
Thalassa Holdings (LON:THAL 53.5p/£5.21m)
Thalassa announced that WGP Group has completed the fifteenth Life of Field Seismic (LoFS) survey over the Valhall field in the North Sea for BP. This is the fourth LoFS at Valhall to be carried out using the Group’s Portable Modular Source System (PMSSTM). As per previous surveys, the PMSSTM was mobilised on the M/V Stril Myster, a field platform supply vessel that is converted into a seismic source vessel for the duration of the project. In total the full data set of 2,552km of data was acquired in 6 weeks, including time for mobilisation and demobilisation, during what was a particularly busy period of field activity in and adjacent to the Valhall producing area.
Trading Emissions (LON:TRE 20.88p/£52.15m)
The Board of Trading Emissions (TEP) provided an update on progress with the implementation of the Company’s investment realisation strategies: During the period to 30 June 2012, eight out of 44 Emission Reduction Purchase Agreements (ERPAs) have been renegotiated with project owners in China, including large hydropower projects and waste heat recovery projects. 16 project owners have, to date, declined to commence renegotiations. TEP’s Investment advisor has been renegotiating the ERPAs in order to reduce TEP’s losses and liabilities arising from commitments to purchase Certified Emission Reduction certificates at fixed prices, which remain above prevailing market prices: The Board and the Investment Adviser continue to pursue realisation strategies with regard to each of the Company’s private equity investments. Two holdings were disposed of during the six month period to 30 June 2012, generating proceeds of approximately £0.2m and future conditional receivables of approximately £6.3m compared with a valuation at 31 December 2011 of £0.3m. In addition, the Company has received conditional offers for three further investments and has also made significant progress in relation to the realisation of the remaining five assets. If all of the realisations of private equity assets currently under negotiation complete successfully, the aggregate proceeds will be consistent with the independent valuation report which formed the basis for the valuation of the private equity portfolio included in the Company’s Consolidated Interim Financial Statements for the period ended 31 December 2011. At 30 June 2012, the Company’s cash position was £60.2m, of which £43.9m is unrestricted.
Tristel (LON:TSTL 29.75p/£11.9m)
Tristel, the manufacturer of infection prevention, contamination control and specialist hygiene products, has reported its first major shipment of sterile-packed disinfectant products to Basan Germany GmbH. This shipment will provide Basan with its initial inventory of Tristel disinfectant products for use in the clean rooms of pharmaceutical manufacturers, medical device manufacturers, life sciences and biotech companies. The products are marketed under the “Crystel” brand and are manufactured in Tristel’s own clean room facility. The supply and distribution agreement with Basan became effective on 1 April 2012 and covers many of the main markets in Continental Europe, including Germany, France, Italy and Benelux. Basan is part of VWR International, a global laboratory supply and distribution business with revenues of approximately $4.1bn in 2011 and operations in 20 countries.
William Sinclair Holdings (LON:SNCL 155p/£26.39m)
One of the UK’s leading suppliers of growing media to the horticulture industry, announced a Trading Update following the spring selling season. As reported in the Company’s interim statement on 11 June 2012, unseasonably wet and cold weather held back domestic gardening activity during April and most of May. The Company expected to recover part of this shortfall in the early summer period but the exceptionally wet weather continued throughout June and into July. William Sinclair’s peat bogs have felt the full effects of the high rainfall and the peat harvest has suffered as a consequence. The peat drying technologies recently introduced by the Company will supplement the conventional harvest and the Board intends to deploy additional drying capacity to further mitigate the impact of the rain. Despite the difficulties, William Sinclair’s growth strategy remains on track, particularly within its fast growing, industry leading, peat free product range. However, with the weather unusually impacting both customer demand for its products and the ability to harvest peat by conventional means, the financial performance of the Company will be lower than in the previous year.
Xenetic Biosciences (LON:XEN 6.38p/£25.27m)
AIM listed bio-pharmaceutical company specialising in the development of high-value differentiated biological and vaccines and novel cancer drugs last week announced the appointment of both Dr Subash Kapre PhD and Thomas Ulich, M.D. as members of its Scientific Advisory Board. Dr Kapre (65) gained his MSc in Biochemistry at Pune University in 1969, later being awarded his PhD in Microbiology in 1977. In 1969 he joined the Serum Institute of India direct from university from which date to now Dr Kapre has devoted his professional lifetime to the increasing success of Serum culminating in his appointment in 1992 as Executive Director. Dr Ulich (58) attained his Bachelor’s degree from Dartmouth College in 1975 then gained his medical qualification at the University of California at Irvine and San Diego in 1979, followed by a 3 year Pathology residency at UCLA. From 1984-2005 he held numerous influential positions at the University of San Diego Irvine Medical School culminating in his appointment as Professor of Pathology. From 1993-2003 Dr Ulich worked at Amgen as VP of Preclinical Development, as Senior VP of R&D at Alnylam Pharmaceuticals and at ConjuChem Inc in Montreal where, from 2006-2010, he was Executive VP of Research and Development.
*A corporate client of Hybridan LLP
The Hybridan Small Cap Wrap is a weekly review of some of the most interesting small cap stories of the past week. Our review will usually be of those companies whose market capitalisations are less than £50m although we may occasionally cover larger companies.
03 July 2012
This week: Sky high for Avanti, and government support for Wildhorse
Despite news that Britain’s economy shrank 0.3 per cent in the first quarter, and that house prices had dropped in June, last week saw the main FTSE 100 share index rise 3.5% to 5641, and the AIM All share by 2.4 per cent to 679.4. The UK market had been buoyed by European and Asian market shares touching two month highs and a strong recovery in the US based on optimism of further positive action from EU policy makers. However, positive as the markets were, any feel good factor for UK investors was soon nullified by the news of Barclays, amongst others, involvement in the LIBOR fixing scandal; which is likely to rumble on.
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AKR Final Results, ANGM Trading Update, AGL Offer for Novocellus’ partner ORIGIO, AVN 2nd Satellite Launch, BGL drilling recommences, CAML Production update and share repurchase, CWR Board Changes, CRG distribution extension, EKT Board Changes, FITB Fundraises, FIP Phase Focus raises £3.2m, GDP Resource Increase, IDG Interim Results, IDEA Admission to AIM, IVO Abingdon Health acquires stake in Forsite Diagnostics, JUB Full year results, KED Initial Commissioning of Newry Plant, NTOG Project Update, OEX Operations Update, ODX Final Results, OMPP director buys shares and deal extension, OXB Sanofi Option Exercise & Fundraise, OXP Directorate change, PHSC Final Results, RENE Full year results, SEE Contract win in South Africa, SLG Production orders, SHEP Acquisitions and extends bank loans, SEGR Back on Track, TRS Pre-close trading update, THAL Private Treaty, TSW Trading Update, TRT placing and interims, TPJ Results, TMZ Acquisition and Placing, VIY Final Results, WAS Limited Placing and Rights Issue, WHE Government Support.
Akers Biosciences (LON: AKR 0.68p/£1.14m)
Akers Bioscience posted final results for the year to end December 2011. Revenue for 2011 was US$1.8m (2010: US$3.1m); gross Profit Margin 49.9 per cent (2010: 57.8 per cent) and adjusted loss before tax: US3.58m (2010 loss: US$920k). Inventory at year end was unchanged at US$685k. Company had cash and cash equivalents at year-end of US$1.2m (2010: US$423k). During the period Akers successfully completed an oversubscribed secondary offering of US$3.3m in February 2011. On the product development side, ABI completed the development of PIFA PLUSS PF4 test – a product line extension of the Company’s flagship PIFA Heparin/PF4 Rapid Assay. The Company was granted two additional Unites States Patents: novel, semi-quantitative test strip utilised in the Company’s Tri-Cholesterol “Check” product and the Rapid Blood Cell Separator technology. Akers’ Intellectual Property portfolio now consists of 23 Patents. Since the year end Akers has solidified a private-label contract manufacturing relationship with a multilevel marketing organisation and initiated the US launch of the PIFA PLUSS PF4 rapid HIT Antibody Rule-Out test.
Angel Mining (LON: ANGM 0.98p/£9.84m)
The AIM listed mining company announced the recent completion of two gold dore pours; 15.211kg (489oz) on 19 June and 12.25kg (394oz) on 24 June, which bring the total amount of dore poured for the month of June to 27.46kg (883 oz). As previously indicated, faulting in the South Block has diminished the grade of the material being processed, but nonetheless the gold produced in June will raise approximately $1.3m, which covers the group’s operating costs for the month. The next gold pour is expected to be in late July, for which a permit is expected to be issued in the near future, and the Company expects the quantities of gold produced to resume growing, following on from the record monthly production announced on 29 May. This resource is expected to underpin the level of gold production for the next year or more, as the Company expects to be producing consistently above 1,500 oz per month from a single gold pour, i.e. at commercial levels of production given the Company’s target of 1,500-2,000oz per annum. The Company has commissioned Golders Associates to produce a study to consider the use of hydro-electric power for the Black Angel project, which has the potential to significantly reduce the cash cost of zinc and lead production although there will be additional associated capital cost.
Angle (LON: AGL 43p/£16.26m)
Angle, the technology commercialisation company, announced that all the conditions of the offer by The Cooper Companies Inc to acquire Novocellus’ partner, ORIGIO, have been met and the offer is now unconditional. The Cooper Companies intends to make a compulsory acquisition of the remaining shares and will proceed with an application for a delisting of ORIGIO from Oslo Stock Exchange. The transaction is anticipated to close by the end of July 2012. The all-cash acquisition price of approximately US$189m values ORIGIO at around three times its current sales of US$65m. The combined business will be ranked number one in the IVF market with a 39 percent market share.
Avanti Communications (LON: AVN 333p/£372.08m)
Avanti Communications, a U.K.-based company that sells satellite data communications services to telecommunications companies to supply residential, business and government users, announced that its second satellite, HYLAS 2, will be launched on 2nd August 2012. The new satellite will cover eastern and southern Africa, the Middle East and the Caucasus, focusing mainly on African countries, adding to the company’s geographical reach, which covers Europe. Avanti’s chief executive David Williams said that the rationale for focusing on African countries such as Kenya was that they are growing fast, largely fuelled by a natural resources boom, and conventional terrestrial telecommunications infrastructure is unlikely to be sufficient to meet growing demand for telecommunications services such as broadband. Hylas 2’s capacity is forecast to be full by September 2016, the year after the planned launch of a third satellite, HYLAS 3, which will also cover Africa and the Middle East.
Bullabulling Gold Limited (LON: BGL 12.12p/£35.05m)
Bullabulling Gold Limited announced that drilling recommenced yesterday at the Bullabulling Gold Project. There are 26 RC drill holes planned for the current program, with depths of between 60 metres and 260 metres for a total of approximately 3,800 metres. The program is principally targeting two areas where additional information is being sought to finalise open pit designs for the prefeasibility study currently underway. It is considered likely that this work will lead to a further modest expansion of the existing resource. It will take up to six weeks to complete drilling with final assays anticipated by the end of August. The resource model will subsequently be updated to enable final mine design and scheduling to be completed.
Central Asia Minerals (LON: CAML 74.75p/£64.41m)
Central Asia Metals has reported its maiden production update from its recently constructed SX-EW (solvent extraction and electro winning) copper plant at Kounrad, Kazakhstan. The plant, which was constructed at a capital cost of US$40m, around 15 per cent below budget, commenced production on 29 April 2012. As at 30 June 2012, a total of 1,728 tonnes of cathode copper had been produced of which 1,386 tonnes had been sold and delivered to Traxys Europe SA. To date physical production of copper cathodes has exceeded management’s expectations for this early stage of production as the plant is still under commissioning. To date, the quality of the cathode copper has consistently met LME grade A quality standards. The Company has also announced that it has initiated a share repurchase programme involving up to 4.3m shares, representing approximately 5 per cent of the Company’s issued share capital.
Ceres Power (LON: CWR 4.08p/£3.51m)
The Board of Ceres Power announced the appointment of Dr Mike Lloyd to its Board as Non-Executive Director and Chairman of the Remuneration Committee, with immediate effect. Mike has more than forty years of experience in engineering, manufacturing and supply chain roles in the electrical machinery and power sectors. His senior leadership roles have included Group Manufacturing Director, President of Rolls Royce Gas Turbines Operations, Technical Director of GEC Large Machines and Managing Director of Alstom Transport. Mike is currently Chairman of Magnomatics, a venture capital-backed technology company, specialising in the development of innovative magnetic transmission drives for applications including wind turbines and hybrid vehicles, and one of Fusion IP (LON: FIP 47.5p/£34.6m)*portfolio companies. Mike is also a Non-Executive Director of the Office of Rail Regulation and an advisor to Unipart and Cobham plc (xx) on operational excellence and supply chain. He has a BSc in Electrical Engineering, a PhD in Electrical Machines and is a Fellow of the Royal Academy of Engineering.
Corin Group (LON: CRG 49.5p/£21.18m)
Leading manufacturer and supplier of orthopaedic devices has reached an agreement with LARS SA, the manufacturer of the LARS ligament products which Corin distributes in the UK and Australia, to extend this distribution agreement by three years until December 2016. Corin has also obtained exclusive distribution rights to the LARS ligament range in several additional countries, the most significant of which is the USA. Corin will, under the terms of this agreement, seek to obtain regulatory approval of LARS in the USA. This will initially be by way of submission of a 510k approval application for various extra-articular LARS ligaments. As previously reported, the Prosthesis List Advisory Committee (PLAC), the relevant reimbursement body in Australia, is conducting a review of all artificial ligaments included in their list of reimbursed products for private health insured cases, including LARS ligaments. While this review has not concluded, Corin has been advised that the review has decided not to alter the reimbursement of LARS ligaments in Australia for at least the next six monthly reimbursement cycles, which runs until February 2013.
Elektron Technology (LON: EKT 19.38p/£20.65m)
The Board of Elektron Technology, the developer of fast moving engineered products with market leading positions in connectivity, instrumentation and monitoring and control markets, is pleased to announce that Mr Richard (‘Ric’) John Piper has agreed to join the Board as a Non-Executive Director, with immediate effect. Mr Piper, aged 60, qualified as a Chartered Accountant in 1977. He was appointed Finance Director of Logica (UK) in 1990 and was Group Finance Director of WS Atkins from 1993 to 2002. Since 2003 he has been Chairman or Non-Executive Director for several AIM and privately owned businesses. Currently Ric is a Non-Executive Director with Matchtech Group, an AIM listed technical and professional recruitment company, and also with Turbo Power Systems Inc, an AIM listed innovative electrical machines and electronic systems provider. Elektron also announces that Jeremy Thorn will be stepping down from the Board.
Fitbug Holdings (LON: FITB 1.38p/£2.2m)*
AIM listed provider of online personal health and well-being services announced that it has agreed the terms of a £1,000,000 5 per cent convertible loan and investment of £125,000 by four directors by a mix of loan conversion and a subscription for new Shares. The £1,000,000 loan from Kifin Limited, a Kirsh Group subsidiary, issued under a convertible loan note instrument dated 28 June 2012 is for a term of three years to 30th June 2015, convertible at a price of 1.5 pence per ordinary share. Fergus Kee, Executive Chairman, said: “This Loan, on attractive terms, significantly strengthens the Company’s financial position and will be used to support further development of the business in the US health market where Fitbug is now well placed to grow strongly.” Separately, three directors (Fergus Kee, David Turner and Allan Fisher) have also each converted outstanding loans to the Company of £25,000 into Ordinary Shares at a price of 1.5 pence per share. In addition Paul Landau, a director of the Company and founder and CEO of Fitbug Limited has invested £50,000 in the Company at a price of 1.5 pence per share. The placing price of 1.5 pence per share represents a premium of 9 per cent to the closing mid-price on 29 June 2012 of 1.375 pence.
Fusion IP (LON: FIP 47.5p/£34.6m)*
The university commercialisation company which turns university research into business, announced that Sheffield based company, Phase Focus, has successfully raised £3.2m in an equity based funding round, to accelerate revenue generation of its revolutionary nanotech imaging and microscopy technology – the Phase Focus Virtual Lens(R) . The Virtual Lens is already being used in a number of applications, such as commercial contact lens measurement and laboratory based cell analysis. Future applications will include systems with the potential to revolutionise the viewing of atomic-scale features that are beyond the limit of today’s most powerful electron and X-ray microscopes. Ombu Group is leading the round with an investment of £3m. Fusion IP invested £220k in the round and as a result its shareholding is 34 per cent.
Goldplat (LON: GDP 12.75p/£21.4m)
Goldplat, the AIM listed gold producer, has announced an updated JORC-Compliant resource from the Kilimapesa Gold operating mine in Kenya. Goldplat’s CEO Demetri Manolis said “With 649,804 oz of gold now quantified, we have exceeded the 500,000 resource base targeted for 2012 and achieved a dramatic 520,502 oz increase on our initial resource published in 2009. These figures, in tandem with our ever improving knowledge of the system, underpin our belief that the project area has the ability to contain in excess of 1 million ounces of gold… This progress, in tandem with the continued strong performance from our gold recovery operations, means that we are on track to achieve our growth objectives and significantly increase our production and operating profit, which in the year ending 30 June 2011 was £3,054,000.”
i-design Group (LON: IDG 47.5p/£6.7m)
I-design, the leading developer and supplier of ATM and self-service marketing solutions for the banking industry, announced its interim for the six months ended in 31 March 2012. Results show revenue up by 13 percent to £1.6m (2011: £1,427,000), gross profit rose by 39 percent to £667,000 from £481,000 in 2011 and a profit before tax of £45,000 against a loss for the same period last year of £105,000. These encouraging figures include the benefit of the major contract secured in November 2011 with a leading Canadian bank for the deployment of Company’s marketing software solution, joono. Administrative expenses rose slightly, by 6 percent, to £648,000 (2011: £610,000), the main increase related to travel costs, and thus The Group delivered an operating profit of £44,000 compared with an operating loss of £106,000 in 2011. After a tax credit of £23,000 (2011: tax credit of £43,000) relating to R&D, the profit after tax was £68,000 (2011: loss after tax of £62,000), leading to a profit per share of 0.5p in 2012 against a loss per share of 0.4p in the first six months of 2011. There was no bank debt at 31 March 2012 and finance leases amounted to £11,000 and the Group’s net cash and cash equivalents at the period end stood at £813,000 showing a 16 percent improvement (2011: £700,000). A major highlight in the first half was the signing of a leading Canadian bank as a new customer, secured in November 2011. This represented the Company’s first win in Canada via its channel partner IBM (also a first win through this channel) and covers the deployment of i-design’s next generation marketing software, joono, across the Bank’s entire ATM estate. Post-period end the company announced two major new developments, firstly the additional 3,000 software licenses purchased by Barclays Bank and Cardtronics, Inc, and secondly signing a major contract with First Data for supply of joono. The total number of ATMs licensed to use i-design’s software now stands at approximately 28,000 (compared with 21,500 at 30 September 2011), with the majority, approximately 19,000, located in the UK and the remainder mainly in North America.
Ideagen (LON: IDEA 14.5p/£11.29m)
Following on from Ideagen’s recent move from Plus-SX, the Board of Ideagen announced the admission of the Company’s ordinary shares to trading on the AIM Market. Ideagen is a supplier of ‘Compliance Based Enterprise Information Management Software’ with operations in the United Kingdom and the United States serving a number of sectors. The Group has grown both organically and through acquisition and is joining AIM in order to support the Group’s strategy to become a leading supplier of Compliance Based Enterprise Information Management Software solutions to the UK in general and to the US healthcare market in particular.
Imperial Innovations Group (LON: IVO 299p/£297.96m)
Imperial Innovations Group, a leading technology commercialisation and investment group, announced that its portfolio company Abingdon Health has a controlling 80 percent interest in Forsite Diagnostics, a private UK-based contract developer and manufacturer of lateral flow diagnostic products. The acquisition complements Abingdon’s current businesses, providing it with the manufacturing capability to produce point of care diagnostics, including key tests from its own portfolio. In addition it strengthens the Company’s development and sales and marketing capabilities. Forsite Diagnostics was spun-out from DEFRA in 2007 and has established a strong and diverse customer base, which includes European regulatory authorities, multi-national diagnostic and food companies. The company has invested in creating a state of the art manufacturing facility, which has the capacity to produce many millions of lateral flow tests per annum.
Jubilant Energy (LON: JUB 23.5p/£97.83m)
Jubilant Energy, the upstream oil and gas company with assets in India and a recently acquired block in Myanmar, has announced results for the year ending March 2012. Revenues increased by 40 per cent to US$19.1m, helped by a 36 per cent increase in the average oil price realised over the year. Losses fell from US$48m to US$12.8m due to higher revenues, lower staff cost and nil impairment. Despite capital expenditure more than doubling to US$66m, the Company ended the year with a strong cash position of US$81.2m and a net debt of US$273m. The Company is in the process of raising an additional loan of US$135m for the Krishna Godavari development in India.
Kedco (LON: KED 1.25p/£3.89m)
The renewable energy group focusing on the production of clean energy in the UK and Ireland announced that the Company’s plant in Newry commenced the production of syngas for the generation of electricity from its biomass electricity and heat generation plant. The Plant has achieved Form G59 certification which confirms its integrity and safety to export electricity. The Plant was approved for £7.8m of bank finance by Ulster Bank Group and has been developed as a joint venture with the Company’s largest shareholder, Farmer Business Developments plc. Once fully operational, it is anticipated that the Plant will employ up to 12 people and provide clean electricity to over 7,000 homes. Gerry Madden, CEO of Kedco, commented: “The initial commissioning of the Plant marks the Company’s progress from being solely a clean energy project developer to becoming a clean energy producer. The Board is delighted with the progress made at the site, and is looking forward to progressing to final commissioning of the Plant, when it will become fully operational”.
Nostra Terra Oil & Gas (LON: NTOG 0.58p/£11.41m)
Nostra Terra, the oil and gas producer, with a growing portfolio of horizontal and vertical drilling projects in the USA, announced that it has signed a commitment with Plainsmen Partners LLC to drill a second development well in the Verde prospect, in which Nostra Terra has a 16.25 per cent interest. It is operated by Plainsmen Partners LLC and covers approximately 636 net acres in south-eastern Colorado. The first Verde discovery well exceeded the Company’s initial expectations, producing just over US$1m gross in nine months. The second well is currently being permitted. Pad construction and drilling is anticipated to start around the end of Q3. Management expects that the second well will show similar results to the first well. Barring any unforeseen production stoppages, the first well is expected to reach payout by the end of July 2012, ten months from the date of first production.
Oilex Limited (LON: OEX 7.12p/£18.05m)
Following the suspension of the Cambay-76H well, announced on 7 May 2012, Oilex is formulating the next phase of the work programme on the Cambay Field. As previously announced, the next stage of work is expected to comprise a well from the Cambay-76H pad to intersect the large stimulated rock volume and it is anticipated that detailed well engineering and design studies will be completed over the coming weeks. On the other hand, clean up and production testing of the Cambay-73 well recommenced in April 2012 and is continuing. The well has ten metres of active perforations in the Y Zone, the same target reservoir in Cambay-76H with similar geological characteristics. Cumulative production of 1,448 barrels of condensate and 50.5m cubic feet of gas has been recorded from Cambay-73 confirming a liquids-rich gas composition. The gas rate after 60 days (from the restart of the production test in April 2012) was approximately 380,000 cubic feet per day, with the average gas to liquids ratio being approximately 40 barrels per million cubic feet of gas. While this work is ongoing as more data are collected, the Company believes the preliminary results are very encouraging and provides support for the previous production modelling conducted for the Cambay-76H well and the potential commerciality of the Y zone reservoirs. Following seismic acquisition and reprocessing programmes earlier in the year, two potential drilling locations have been identified in the northern portion of the JPDA 06-103 contract areas at the Tutuala and Bazartete prospects. Oilex estimates that Bazartete has the potential to contain 70.8m barrels of Mean Prospective Oil Resources (unrisked 100 per cent basis) with a 23 percent chance of success (net to Oilex: 7.1m barrels). The JPDA 06-103 Joint Venture has selected this prospect for the next drilling campaign, as announced in the Company’s Quarterly Report dated 30 April 2012, and investigations are underway to secure a drilling rig to test this exploration prospect later in 2012.
Omega Diagnostics Group (LON: ODX 14p/£11.93m)
Omega, the medical diagnostics company focused on allergy, food intolerance and infectious disease, announces final results for the year ended 31 March 2012. Turnover for the Group increased by 41 per cent to £11.12m (2011: £7.90m), which includes a full year’s contribution of trading from the German business. In segments, Allergy and autoimmune revenue up 191 per cent to £4.48m (2011: £1.54m), Food Intolerance revenue up 10 per cent to £3.90m (2011: £3.56m) and Infectious disease/other revenue down 2 per cent to £2.75m (2011: £2.80m). Gross profit increased to £7.0m (2011: £4.71m) and the gross margin improved from 60 per cent to 63 per cent reflecting a segmental mix towards higher margin business. Adjusted profit before tax increased by 36 per cent to £1.0m (2011: £0.74m) with Food Intolerance division performing particularly well. All these factors resulted in adjusted earnings per share of 1.2p (2011: 1.7p) due to the increased average shares in issue of 85,238,746 (2011:38,278,631). Net debt at the period end was £0.1m (2011: net cash of £0.45m), while cash at year end stand at £1.16m (2011: £2.05m) – reflecting iSYS development expenditure occurred during the year. David Evans, the Chairman, said: “As the Group looks to build on its progress to date, it is clear that to achieve significant year-on-year growth we either need to increase the level of automation for customers or to provide Point-Of-Care tests to provide solutions for unmet needs in developing markets. From a market perspective, a focus on the growing BRIC countries is expected to yield above average results.”
One Media Publishing (LON: OMPP 4.05p/£1.97m)*
One Media announced that last week that one of its non executive directors, Mr. Roman Poplawski, has purchased 166,650 shares. One Media also announced that it has extended its deal with Miki Dallon Productions, who was originally contracted in 2007. One Media has been exploiting the rights successfully for the past 5 years. Miki Dallon is an English musician, songwriter and producer of music from the 1960s and 70s. Michael Infante, Chairman and CEO said, “… it [this acquisition] demonstrates our ability to monitise music within the terms of various agreements and to the requirements of labels, producers and artists”.
Oxford Biomedica (LON: OXB 2.5p/£23.62m)
Oxford BioMedica, the gene-based biopharmaceutical company, has reported that Sanofi has elected to exercise its options to acquire two exclusive worldwide licences for further development, manufacture and commercialisation of StarGen(TM) a novel gene-based treatment for Stargardt disease, and UshStat(R) a novel gene-based treatment for Usher syndrome type 1B. StarGen(TM) and UshStat(R) were designed and developed by Oxford BioMedica using the Company’s proprietary LentiVector(R) platform technology. Under the terms of the ocular agreement signed with Sanofi in April 2009, Oxford BioMedica will receive a total option exercise payment of US$3m and is eligible for further development and commercialisation milestone payments and royalties on any future sales of the products. Oxford BioMedica is currently conducting the two ongoing Phase I/IIa trials for StarGen(TM) and Ushstat(R). Oxford BioMedica has also announced that it intends to raise up to £16m (approximately £14.5m net of expenses) through a firm placing and open offer at 2.5p per share, an 11 per cent premium to the closing price on 28 June 2012. It is intended that 440m new shares will be issued through the firm placing to raise gross proceeds of £11m and up to 201m shares will be issued through the open offer to raise up to £5m. The principal use for the new funds is to continue to develop the LentiVector(R) gene delivery technology in order to maximise the potential of its LentiVector(R) platform products, particularly the ophthalmology portfolio.
Oxford Pharmascience Group (LON: OXP 1.22p/£7.07m)*
The specialty pharmaceutical company that uses advanced pharmaceutic technologies to reposition medicines yesterday announced that as of 1 July 2012 it has appointed James White as non executive Deputy Chairman to further assist the company with its Business Development and Corporate relations programme. He is currently a non executive director of the Company. Oxford Pharmascience Group develops advanced yet practical pharmaceutical technologies to enable reformulation that adds value to off patent and soon to be off patent drugs. The company does not manufacture or sell its own pharmaceutical products but instead seeks to license its technologies to a network of partners, mainly leading pharmaceutical companies with Rx (prescription) and OTC (Over the Counter) branded portfolios.
PHSC (LON: PHSC 23p/£2.39m)
Consolidated Group sales for the period were £4.434m, which represents a decline of around 8 percent from the previous year’s £4.814m, but through cost reductions and improved controls, EBITDA saw an 18 per cent increase from £0.378m to £0.445m. The Company managed to reduce the combined cost of sales and overheads by around £511,100 and thus improve its margins that led to the higher profitability. Group’s net assets rose to £5.37m from £5.27m and cash reserves increased to £0.902m, an increase of 20 percent. The board proposed a final dividend of 2.00p, comprising of ordinary dividend of 1.00p and a special dividend of 1.00p per share, as last year, while basic earnings per share increase to 2.91p from 2.33p. The Group hopes to complete an acquisition in the quality, environmental, and health and safety management systems arena which is expected to enable the Group to offer a number of new services and help open up new marketplaces. The terms of the acquisition are in the process of being finalised and the Company expects to announce completion within the next month.
ReNeuron (LON: RENE 3.62p/£28.09m)
ReNeuron Group, the stem cell company, has reported its preliminary results for the year ending March 2012. Losses for the year were largely unchanged at £6.2m, and the balance sheet ended with cash and cash equivalents of £4m. The share placing and open offer announced post year-end raised £6.1m, before expenses, which will provide pre-clinical and clinical development funding for core therapeutic programmes to Q3 2013. During the year, the Company made further progress in its therapeutic programmes. The recently presented interim data from the PISCES clinical trial of the ReN001 therapeutic candidate for stroke was particularly encouraging and the management believes that it is on track to file an application later this year to commence clinical development of our ReN009 therapeutic candidate for critical limb ischaemia. The pre-clinical development of its ReN003 therapeutic candidate for retinitis pigmentosa is also progressing to plan
Seeing Machines (LON: SEE 2.38p/£9.82m)
Seeing Machines has announced that its South African distributor Booyco Electronics has signed a contract with BHP Energy Coal South Africa (BECSA) for the supply and installation of the DSS Fatigue Monitoring Systems in participating BECSA Operations in South Africa. This contract follows on from a successful trial at the Klipspruit Colliery. Seeing Machines has already received purchase orders for the first systems to be installed as a result of this contract which will cover five BECSA sites in South Africa. Booyco has been working with BECSA since May 2010 and has so far installed 44 DSS units at various BECSA sites in South Africa.
Sarantel Group (LON: SLG 0.42p/£3.53m)
Sarantel Group, a leading manufacturer of high-performance, miniature filtering antennas for mobile and wireless devices, has received initial production orders for two separate M2M (machine-to-machine) asset tracking applications. The first application is for an M2M device selected by a major US airline company to track all its cargo shipments in real time to provide customers with real time information on all high value shipments. The second application is for an M2M device selected by a leading US manufacturer of premium commercial vehicles to be embedded in its vehicles, enabling the vehicle owners to track the location of the vehicles and thereby enhancing efficiency. Sarantel’s technology was selected for both applications because the omni-directional capability of its GPS antenna enables the M2M device to be attached in any orientation and this greatly reduces installation complexity. Industry analysts believe that the number of cellular network connections for M2M will rise from 108m in 2011 to 359.3m in 2016, a rate of growth over 27 percent.
Shepherd Neame (LON: SHEP 665p/£75.05m)
Kent-based brewer and pub operator announced the purchase of four freehold pubs from Enterprise Inns plc. These high quality pubs are all located within the Company’s heartland of East Kent and further strengthen the Company’s footprint in this area. The pubs are based in Canterbury, Deal, and Whitstable. All are character pubs with good outside space and three enjoy excellent coastal locations. These four new pubs will be operated under existing lease arrangements and bring Shepherd Neame’s total estate to 354 pubs comprising 44 managed pubs and 310 tenanted and leased pubs. At the same time the Company has extended its current five year term loan arrangement with The Royal Bank of Scotland and Lloyds Banking Group. This revised term loan facility has increased from £10m to £20m and will now expire with the Company’s £10m revolving credit facility in May 2017. The existing £60m term loan remains unchanged and matures in 2026. Excluding the overdraft facility, this brings Shepherd Neame’s total committed credit facilities to £90m. Shepherd Neame will be reporting results for the period ending 30 June 2012 in September 2012. The Company expects to announce performance in line with market expectations.
Specialist Energy Group (LON: SEGR 16.5p/£7.51m)
Specialist Energy Group, the specialist engineering group, announced that all resolutions were duly passed by Shareholders at its Annual General Meeting. After which Specialist Energy’s Chief Executive Officer, Ewan Lloyd-Baker, made the following comments: “Further to our announcements in April and May, I am pleased to notify Shareholders that the Company expects to be able to announce the completion of its re-banking with Standard Chartered imminently. However, it should be noted that the lack of adequate banking facilities in the first half of the year has impacted on our performance in spite of the positive business development activity in the period. We will make further announcements in due course.”
Tarsus Group (LON: TRS 155p/£147.43m)
International business-to-business media group provided a pre-close update on trading since its Interim Management Statement of 15 May 2012. Trading for the first six months of the year has been in line with Board expectations. Forward bookings for the Group now stand at 77 per cent of anticipated full year revenues compared with 70 per cent at the same time in 2011. Revenues are heavily weighted towards the second half of the year owing to the timing of the Group’s large exhibitions. Momentum in the emerging markets has continued driven by a combination of strong revenue growth and the successful integration of recent acquisitions. IFO in Turkey, acquired in June 2011, continues to perform well. Its REW Istanbul, (recycling, environment and waste) event, held in June 2012, produced a record performance with revenue up 17 per cent over the 2011 edition. The Group’s Orlando Medical event in May was well ahead of its previous edition with revenues increasing 15 per cent. The Medical 2012 order book is strong, growth being driven by education programmes, including those now delivered online. Trading in the Group’s French business continues to be in-line with expectations. Given the current economic and political uncertainty, Tarsus remains cautious for the full year outlook in Europe. The Group expects to publish its interim results for the six months ending 30 June 2012 on 25 July 2012.
Thalassa Holdings (LON: THAL 50.5p/£4.91m)
The Board of Thalassa announced that it had acquired 529,030 ordinary shares in Rock Solid Images (RSI) for a mixture of cash and equity. Following the lapsing of Thalassa’s partial offer for RSI on 22 May, the Group approached those RSI shareholders who had sent in their share certificates in acceptance of the Partial Offer to acquire their shares by way of private treaty. 92 per cent of those RSI shareholders who were so approached have agreed to sell their RSI Shares to Thalassa. As a consequence, Thalassa has issued 3,815 ordinary shares as consideration for 164,205 RSI shares and paid cash in aggregate of £1,715.14 for the balance of 364,825 RSI shares. Thalassa now holds 6,871,352 RSI shares representing 4.34 per cent of the RSI issued share capital.
Titan Europe (LON: TSW 107p/£93.78m)
The Company’s external sales for the first five months of the current financial year have been ahead of 2011 and in line with management expectations. The Group’s order books in most business areas and in aggregate remain in line with management projections. In China, equipment manufacture remains at a very low level and in Brazil, although the business continues to be strong, it has been weaker than originally forecast. Additional strength is seen in North America’s order books, and expected to be ahead of expectations in this area, as well as encouraging trends in Australia, Chile and Peru. In the Company’s three end markets, Agriculture and Mining continue to see strong demand, whilst Construction demand shows considerable variability, both between end products and geographically. In aggregate, after a strong period of growth, construction demand has now flattened out. OEM demand has generally been stronger than the aftermarket, except in Mining applications where both continue to do well. In May’s Statement the Company reported on the earthquake damage to a factory in Finale Emilia which accounts for around £50m of sales (10 per cent of Group revenue). The plant remains closed and in the meantime, management has been organising the transfer of production to the Company’s other facilities in France and Turkey and also working with associate companies and competitors to obtain assistance until production restarts. Despite short term uncertainty around the European market and destocking in China, Titan Europe continues to believe that key markets will have strong medium to longer term growth. Customers continue to advise that the future for mining equipment sales is consistent with the Company’s commitment to the development of new products in this area and to the use of their Mining Service strategy. It is believed that the medium term future for Agriculture continues to be good, particularly with the re-equipment of former Eastern bloc agricultural holdings.
Transense Technologies (LON: TRT 11.38p/£20.12m)*
AIM listed technology company that develops sensor systems for the automotive and industrial markets announced that it has conditionally placed 17,560,000 ordinary shares at a price of 10 pence per share with institutional and other investors for gross proceeds of £1.756m. The placing price represents a discount of 13 per cent to the closing price on 28 June 2012 of 11.5 pence. The Company intends to use the proceeds from the Placing to increase its sales force, marketing spend and facilitating greater implementation; increase the level of product trials with future customers; and for additional working capital requirements following increased sales and anticipated continued future growth. As previously announced, the Company has recently secured initial orders for its products in both transportation and power generation applications. As stated in the relevant announcements, a number of these initial orders have the potential to be extended or to lead to additional contracts, which is expected to provide improving visibility on conversion of the Company’s new business pipeline. Transense also announced its interim results for the 6 and 12 month periods ended 31 December 2011 following the Company’s change in accounting reference date as announced on 11 June 2012. In the period, major strides were made in converting Transense from its dependence on future royalty income to a product-led company; there is a growing sales trend at Translogik and increasing high profile customer list; longer term relationships have been secured for IntelliSAW with significant income potential in future periods; and substantial progress with General Motors was made. Post period end, Translogik announced orders from Bridgestone Brazil, EDP for Michelin Euromaster and a successful trial with one of the world’s largest mining companies; whilst IntelliSAW generated USD 550k of orders for deployment in Asia, first Indian pilot, USD 500k order from Chinese partner, and several distributor appointments. Graham Storey, CEO, commented: “2011 was a year of considerable operational progress for the Transense Group.”
Triple Plate Junction (LON: TPJ 1.88p/£6.88m)
The gold exploration Company focused on South East Asia, announced its results for the year ended 31 March 2012. During the financial year cash balances increased from £2.0m to £2.2m, inclusive of the £2.2m fundraising in September & October 2011. The Company spent approximately £465,000 on exploration in Vietnam and made contributions totalling £430,000 to two of the four joint venture projects in Papua New Guinea. A total of £1,000,000 was spent running the business of the Company during the year; this includes amounts incurred in resolving the dispute with Celtic Minerals. The Board considers that there are considerable uncertainties surrounding the recoverability of costs incurred in both Vietnam and Crater Mountain. Accordingly the directors have determined that the appropriate carrying value of these two projects in the consolidated balance sheet should be nil. The core of the Company is the four joint venture projects that they have in Papua New Guinea. Drilling on three of these projects is now taking place. During the year they also drilled at their project in Vietnam. TPJ has also resolved a dispute with a third party over its share of the project with Gold Anomaly at Crater Mountain; it now has an 8 per cent share of this project and a “free carry” through to completion of a bankable feasibility study on potential developments. It has also elected to take a dilution to 25 per cent of its Morobe project with Newmont and in return Newmont finances its share of costs through to production. Accordingly it will not have to make any more financial contributions on either of these two projects until those stages are reached. The board estimates that, subject to some caveats, the Company has adequate financial resources through to the end of calendar year 2013.
Toumaz Limited (LON: TMZ 8.75p/£71.35m)
Pioneer in and provider of ultra-low power, high-performance wireless communications technologies and solutions, has agreed to acquire Frontier Silicon (Holdings) Limited, a leading supplier of semiconductor, module and software solutions for digital radio and connected audio systems, for a maximum consideration of up to £32.3m. The Group also announces the conditional placing at a placing price of 10.25 pence, raising £29.25m before expenses. The acquisition is for an Initial consideration of £27.06m in cash, of which £2.4m will be settled in New Ordinary Shares. A deferred consideration up to £5.2m will be paid, dependent on the performance of the Enlarged Group, in cash and shares. Frontier has £22m+ revenue base and historically strong product margins and brings important electronic engineering resource, with R&D centres in the UK, Hong Kong and China. The acquisition provides an opportunity for Toumaz to exploit Frontier’s established tier one customer base, including Bang & Olufsen, Bose, JVC, Panasonic, Philips, Pure, LG, Roberts Radio and Sony.
Toumaz also announces that it has appointed Chris Batterham as a non-executive director with immediate effect. Chris has considerable financial and operational experience and expertise having had an extensive career in a range of relevant companies. His career includes being finance director of Unipalm plc, the first internet company to IPO and then staying with the company for five years following its takeover by UUnet and being CFO for Searchspace. He is currently a non-executive director of SDL plc and office2office plc. He is also Chairman of Eckoh plc.
ViaLogy (LON: VIY 2.5p/£23.17m)
ViaLogy, a provider of reservoir characterisation, geophysical imaging and hydrocarbon sizing services to global oil and gas exploration and production companies based on proprietary, patented active signal processing technology, announced its audited final results for the year ended 31 March 2012. Consolidated accounts show a net loss of £4.9m (2011: loss £5.8m). The loss after tax and after adding back the non-cash items, depreciation and amortisation charge and share based payment expense was £1.52m (2011: loss £2.01m). During the period the company raised £177,500 at 1p via a private placing in October, 2011, and a further £1,050,000 at 1.05p in January 2012. Since the company’s year end it has raised a further £2,045,000 at 2.75p. During the period ViaLogy has signed commercially based contracts with the supermajor energy company, Chevron, the Indian national oil company, ONGC, and a second household-name Supermajor which, at their request, remains anonymous. These are prestigious awards from international businesses that have carried out detailed examination of their technology, QuantumRD.
Wasabi Energy (LON: WAS 1.15p/£31.66m)
Wasabi Energy has announced that it is raising up to $9.8m through a placing for $5.1m (£ 3.3m) and a partially underwritten rights issue to raise up to $4.7m (£3.03m) The placing is with UK institutional investors at a placing price of 1.1p per share. The Company will raise up to $4.7 m (£3.03m) gross proceeds from the Rights Issue including $2.5m being underwritten by the Chairman, John Byrne and $100,000 by Robert Vallender, a Director of the Company. The Placing and underwritten element of the Rights Issue will raise $7.7m in aggregate, but if the Offer is fully subscribed then the aggregate amount raised by the Placing and Rights Issue will be $9.8m.
Wildhorse Energy (LON: WHE 3.88p/£15.62m)
Wildhorse Energy, the AIM and ASX listed company focussed on developing underground coal gasification and uranium projects in Central and Eastern Europe, has announced that the Hungarian government has formally pledged its support for the development of a Joint Venture between the Company, Hungarian state owned Mecsek-Öko and Mecsekérc and Hungarian Electricity Ltd which is the owner of Paks Nuclear Power Plant. The government resolution is a major step in the development of this strategically important uranium deposit, which combines the Company’s 42.9 sq km Pécs-Abaliget uranium licence and Mecsek-Öko’s adjoining 19.6 sq km MML-E uranium licence. This is one of the largest uranium deposits in Europe. The involvement of Hungarian Electricity Ltd and the support of the government for the joint venture, demonstrate the continued importance of nuclear in providing energy security and to the national economy in Hungary – Paks currently supplies 40 per cent of Hungary’s power and is developing two new nuclear reactors.
*A corporate client of Hybridan LLP