Small Cap Wrap: Month: September 2013

AIM Breakfast - Archive

10th September 2013

This week: Aussies get the FITB, European win for MAN, TMZ spots an opportunity

The Small Cap Wrap Team is back after a lovely Summer break, looking forward to a golden Autumn

The major markets got off to a positive start in the first week of September, with the FTSE 100 climbing 136 points to 6,547 and the AIM All share rising 13 points to 766. The main catalyst last week was better than expected manufacturing and service data from most of the major economies – the US, China, the UK and Continental Europe. Large deals in the telecoms sector (Verizon/Vodafone, Microsoft/Nokia) also diverted attention from possible action in Syria. The recovery has been broad-based, with consumer goods and industrials leading the way. The positive momentum has continued into this week with more constructive headlines on Syria and lower oil prices helping to boost risk appetite. A quieter week for macro news with US retail sales expected on Friday.

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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.

OPM £1m facility and director change, ACTA Chinese distribution partnership, ALU results, AVG contract win, BMY acquisition, CNS Board appointment, DEMG interim results, DGS final results, EHP trading update, ESG Merchantrade to join hub, FITB Entry into Australian market, FLOW VPhase Investment, FBT FORscene used by record numbers, FIP Diurnal progress Phase 2 trial, FUM positive opinion, HYD Interims, IPP final results, LID FDA cleared, MAN contract win, MDZ final results, NPT interim results, PEG managerial appointment, PINN / COMS rejection & withdrawal of possible offer, SPHR Pelorus 1500 study, SDM interim results, STT launch of waste caddy, STGR operations update, SUMM new data on C.Difficile, SUN Interims, TMZ Spotify agreement, VAL half yearly report, VRP Presentation at ERS and new CFO

1PM (LON:OPM 42.5p / £12.74m)

1pm, the specialist independent provider of lease asset finance to the SME sector, announced that it has negotiated an additional new block discounting facility totalling £1m. This additional funding will be used exclusively for the purpose of writing new business. The loan terms are consistent with those of other funders to the Company. In addition, the Board reported that trading during the first quarter of the financial year has been very encouraging, with sales achieved in each month surpassing expectations. 1pm also and separately announced the resignation of Michael Johnson, Non-Executive Chairman with immediate effect. Ronald Russell, currently a Non-Executive Director will become Interim Chairman until a suitable replacement is appointed. Maria Hampton, CEO of 1pm, commented: “Mr Johnson has decided that after nearly seven years with the Company and to coincide with his approaching 70(th) birthday he is to retire. The Board wishes to thank Mr Johnson for his contribution and wise counsel and wish him a happy retirement.”

Acta (LON:ACTA 9p/£13m)

Acta S.p.A, the clean energy products Company, has signed a non-exclusive distribution agreement for the Chinese back-up power and energy storage markets. The agreement has been signed with Shanghai Sunwise Energy Systems Co. Ltd. Sunwise is a leading supplier of hydrogen energy systems and distributed energy systems and equipment for the Chinese market. Sunwise’s main business includes hydrogen supply and storage systems for industrial applications and for transportation, hydrogen station design and engineering services, along with distributed energy power plant development. Sunwise has also developed China’s first local language Hydrogen Energy website (www.china-hydrogen.org), providing the industry with the latest news and information about the hydrogen economy. Through its new partnership with Sunwise, Acta intends to strengthen the distribution of its electrolysers and the Acta Power self-recharging back-up power system into the Chinese market. Sunwise will be exhibiting Acta’s products in Shanghai at the 2013 World Hydrogen Technologies Convention (www.whtc2013.com) from 25 to 28 September 2013.

Alumasc Group (LON:ALU 129p / £46.61m)

Alumasc, the building and engineering products group, announced results for the year ended 30 June 2013. Overall, group revenues rose to £116.8m (2012: £110.6m) and margins increased with underlying profit before tax at £5.1m (2012: £1.6m). Strength came from the Building Products division where sales were up 18 per cent to £88.3m, though this was partially offset by Engineering Products where sales fell by 20 per cent to £29.4m. £5.5m net cash inflow (2012: £2.5m outflow ), reflected higher overall profit, further working capital efficiency improvements, carefully prioritised and controlled capital spend, and some cash received in advance on construction contracts. The net debt was reduced to £7.7m (2012: £13.2m). A proposed final dividend of 2.5p makes a total for the year of 4.5p (2012: 2.0p), reflecting a recovery in profitability and strong cashflow, whilst taking into account future cashflow needs, including investment to further grow the business and pension funding.

Avingtrans (LON:AVG 135p / £36.53m)

Avingtrans a manufacturer of critical components and associated services to the global aerospace, energy and medical sectors announced that the recently acquired Maloney Metalcraft Ltd (formerly Exterran UK) has been awarded its second contract from Porvair for the manufacture and supply of Pulse Jet Filter Pipe Clusters. The contract is expected to generate over £2m of revenue and runs to the end of September 2014. Steve McQuillan, Chief Executive of Avingtrans, commented: “We are very pleased to see a second significant order for Maloney Metalcraft since joining the Avingtrans Group in July. It further illustrates the pedigree of the business and its strength in the marketplace. The Board is confident that Maloney Metalcraft will continue to positively contribute to the Group and provide increased scale and expertise to Avingtrans’ operations in the attractive Energy marketplace.”

Bloomsbury Publishing (LON:BMY 138.75p / £102.46m)

Bloomsbury Publishing announced that it has completed the acquisition of the issued share capital of Hart Publishing Ltd, the Oxford-based legal publisher, from the management shareholders. The initial consideration of £6.5m (which is subject to working capital adjustments) was paid in cash on completion from Bloomsbury’s own cash reserves. A further cash consideration of up to a maximum of £0.5m will be payable on the achievement of certain revenue and title number targets for the period ending 31 March 2014. The acquisition is expected to generate cost savings and be immediately earnings enhancing contributing approximately £1.4m of revenue to Bloomsbury in the year ending 28 February 2014. The acquisition is consistent with Bloomsbury’s strategy to increase its proportion of academic and professional revenues to 50 per cent of total sales in five years’ time. Academic and professional revenues are more predictable and have lower related costs of sale with higher margins and are much less reliant on retail bookshop sales. Around 50 per cent of Hart’s revenue is generated outside the UK, thereby increasing Bloomsbury’s benefit from the global book market. The acquisition will also enable the Company to further develop its e-book publishing and expand the Bloomsbury Professional digital suite of services. Hart generated £2.6m of revenue and £0.5m of profit before tax in the year ended 31 March 2013.

Corero Network Security (LON:CNS 15p / £12.85m)

The network security provider announced the appointment of Ashley Stephenson to the board of directors of the Company as Chief Executive Officer following completion of the sale of Corero Business Systems Limited, as set out in the Company’s announcement and circular to shareholders dated 15 July 2013. In addition, Andrew Miller has been appointed as Chief Financial Officer and Chief Operating Officer, having previously been Group Chief Operating Officer. Ashley first joined Corero Network Security as Executive Vice President of the Network Security division in March 2012, with responsibility for product and solution strategy, and was appointed Chief Executive Officer of the division in January 2013. Ashley has a wealth of executive experience within the international IT industry. He co-founded and led a number of IT companies including Reva Systems Corporation (acquired by ODIN Technologies Inc.) and Xedia Corporation (acquired by Lucent Technologies Inc.), and has provided strategic advisory services to a number of leading multi-national IT companies including technology vendors, distributors and services companies.

Deltex Medical Group (LON:DEMG 16.25p / £26.78m)

The global leader in oesophageal Doppler monitoring (ODM) announced its results for the six-month period ended 30 June 2013. Surgical probe revenues were up 12 per cent to £2.3m (H1 2012: £2.0m). The UK was up 14 per cent with 30 per cent growth in Q2, the USA was up 17 per cent and international sales were up 3 per cent. Overall probe revenues were up 9 per cent to £2.7m (2012: £2.4m). The gross profit on probes was up 8 per cent to £2.0m (2012: £1.9m) and the gross margin was broadly flat at around 77 per cent. The Company’s cash position was £1.5m. Material market developments are expected to underpin prolonged future growth: such as the US physician payment and ODM specific coding being established; the first new anaesthetist billing item for over a decade; new national clinical guidelines in France that favour strongly ODM; and the NHS launch in April to increase substantially the adoption of ODM in England. The installed UK surgical monitor base was up 66 (11 per cent) to 681; the total UK installed base passed 1,000. Revenue was down £0.3m to £2.9m for the period, there was a £0.4m timing difference on research monitor barter sales. The combined probe and monitor gross margin was 72 per cent (2012: 75 per cent). The operating loss was £1.4m (2012: operating loss of £1.2m) after Premier collaboration costs of £0.3m (2012: nil).

Digital Globe Services Limited (LON:DGS 213p / £63.19m)

Digital Globe Services, a leading provider of online customer acquisition solutions for large, consumer-facing organisations, announced final results for the year ended 30 June 2013. Revenues of US$25.5m (28 per cent YoY growth) were reported, alongside adjusted EBITDA of US$4.0m (32 per cent YoY growth), an adjusted EBITDA margin of 15.8 per cent (2012: 15.3 per cent) and a total shareholder return of 33.6 per cent in four months since listing. The share price is up over 32 per cent since listing and dividends of $1.7m have been declared, including $1.4m paid in June 2013. Cash on hand was US$4m at 30 June 2013 after repayment of debt, investment in growth initiatives and payment of dividends. The expansion of the call centre and tech support staff by 35 per cent to service growing customer demand continued along with the launch of services for the top three cable operators in Mexico; business expansion into new geographies including UK and Germany; and continued strong support and revenue expansion from core US cable communications clients. The Company reported continued broadening and deepening of relationships with core North American cable and Telco clients, alongside a geographic expansion of online customer acquisition solutions to Europe and Latin America; the addition of new sectors including solar, home automation; and the addition of custom software development to solution set continued in the period. The Company is confident in continued, profitable growth for the year ahead, consistent with market expectations.

Epistem Holdings (LON:EHP 455p / £44.05m)

The Company advised that the discussions with Becton Dickinson (BD) have not been successfully concluded and the supply and distribution agreement originally entered into in August 2012 has been terminated. The previous guidance for the results for the year ended 30 June 2013 of revenues of £5.4m (2012: £5.6m) and a loss after tax of £1.2m (2012: £0.2m) remains unchanged. Development of Genedrive(R) has been the key focus of the Personalised Medicine division, with Preclinical Research Services and Novel Therapies broadly in line with the prior year. Net cash as at 6 September 2013 was £6.1m. This will be reduced to £5.5m post the repayment of US$1m to Becton Dickinson under the terms of the original agreement. The Company reported significant progress over the past few months in relation to its assay manufacturing, pre-market support for independent TB clinical studies and preparations for the launch of TB, alongside the development of its expanding menu of infectious disease and pharmacogenomic product applications for Genedrive(R). The Company will complete its Indian clinical trials and launch its TB test once the latest test modifications have been fully validated, with this work ongoing. The Board believes these modifications represent a significant competitive advantage over existing TB products. It anticipates that this will result in the comparative performance being subject to independent peer review in clinically relevant publications.

eServ Global (LON:ESG 26.375p/£66m)

eServGlobal, the provider of end-to-end mobile financial services to emerging markets, announces a new agreement for the HomeSend remittance service between its strategic business partner BICS and Merchantrade Asia Sdn Bhd. Merchantrade is a Malaysia-based Mobile Virtual Network Operator (MVNO) and the country’s leading licensed money services Company. Through its remittance service, Merchantrade offers money transfer services via multiple modes i.e. branches, online as well as mobile money transfer to migrant workers. Merchantrade has over 170,000 pay-out locations, with a strong and rapidly expanding payout presence across South Asia and South East Asia. With its established presence and strong distribution network, the agreement with Merchantrade enables HomeSend to further extend its reach in Asia, in particular, in key receiving markets such as India, Bangladesh, Myanmar, Malaysia, Sri Lanka, Indonesia and Vietnam.

Fitbug (LON:FITB 1.475p/£2.5m)*

Fitbug Holdings, the provider of online personal health and well-being services, has signed a Master Services Agreement (MSA) with Leap4Life Global Inc, a US based wellness services provider. Under the MSA, Fitbug’s proprietary digital health technology will, as part of a Leap4Life wellbeing programme, be offered to 150,000 employees of Woolworths, Australia’s largest grocery retailer, with the potential to expand. This marks a further important milestone in line with the Company’s strategy to increase its presence in the global Connected Health Market and follows the recently announced entry into Asian markets through the launch of AIA Vitality. Leap4Life is a market leading healthy living incentive programme that brings together social media, education, Fitbug activity tracking technology, loyalty and rewards to engage and motivate users to adopt a healthy and active lifestyle. Leap4Life will provide an important part of the Woolworths “All Good” employee wellbeing programme which launches this month.

Flowgroup (LON:FLOW 11.375p/£15m)

Flowgroup, which develops and commercialises alternative and efficient energy products, has noted that VPhase (VPHA £2.4m / 0.175p), in which Flowgroup holds 25.6 per cent of the entire issued share capital, has announced that it has appointed an administrator. The carrying value, being £2.571m, of the Flowgroup interest in VPhase shares will be written down to zero for the purposes of the next published figures for Flowgroup. The write-down will have no cash impact on Flowgroup and is not expected to affect the financial stability or future prospects of the Company.

Forbidden Technologies (LON:FBT 29p / £38.23m)

Forbidden Technologies, the owner and developer of the market leading Cloud video platform, FORscene, announced that usage of its platform reached a key milestone in August. For the first time in a single month, FORscene reached the landmark of 100 active professional productions which accessed its log, edit, review and export functionality. Stephen Streater, CEO of Forbidden Technologies, said: “This achievement is a strong indicator of the market’s confidence in FORscene. This record positions FORscene well for IBC in Amsterdam from 13-17 September 2013.” Forbidden Technologies also announced that it is integrating with Windows Azure Media Services to promote cloud video workflows at the 2013 International Broadcasting Convention (IBC) in Amsterdam, The Netherlands from 13-17 September 2013.

Fusion IP (LON:FIP 72.5p / £79.34m)

Fusion announced that its portfolio Company, Diurnal, a spin-out from the University of Sheffield, has successfully completed the pharmacokinetic part of its Phase 2 CATCH (Chronocort(R) As Treatment for Congenital Adrenal Hyperplasia) clinical study. Based in Cardiff, Diurnal is developing a novel approach to drug delivery that will help patients suffering from reduced levels of the key hormone cortisol (hydrocortisone). Pharmacokinetic data from the first part of the CATCH study has been received by Diurnal. The CATCH trial will now continue until the end of 2013 so that further data can be collected to support a Phase 3 registration study of Chronocort(R). The full read-out of the CATCH study is expected during Q1, 2014. Fusion’s shareholding in Diurnal is 43.42 per cent.

Futura Medical (LON:FUM 75p / £58.19m)

Futura Medical, the innovative healthcare Company focused on advanced transdermal technology, announced that its novel condom, CSD500, has received a positive opinion from the relevant Notified Body on all aspects of the CSD500 regulatory dossier submitted earlier in the year. It is expected that the CE mark certificate will be awarded later this month, authorising the product for marketing throughout Europe. The award of the CE mark is a key step towards the launch of CSD500 in Europe. As announced on 2 April 2013, the rights to manufacture, market and distribute CSD500 in North America and a number of key European territories have been licensed to Church & Dwight Co Inc, the major US consumer products group whose brands include Trojan® condoms.

Hydro International (LON:HYD 104.5p/£15m)

Hydro International, a provider of environmentally sustainable and innovative products for the control and treatment of water, has reported largely unchanged revenues, of £15.1m, in the six months to 30 June 2013. However, the adjusted operating profit margin increased from 2.8 per cent to 3.5 per cent. At the end of June, the Company had a healthy cash balance of £2.9m. Order intake in the period rose by 6 per cent to £18.1m, with a strong order intake in the Americas Wastewater. However, the business remains exposed to the timing of major projects and the cyclical environment within certain sectors, most notably within the UK Wastewater division. Michael Jennings, the new CEO, is expected to help refine the business strategy and develop more sustainable growth platforms.

IPPlus (LON:IPP 24.25p / £7.68m)

IPPlus announced its full year results for the year ended 30 June 2013. Group revenues increased by 20 per cent to £8.1m up from £6.8m and underlying profit before taxation rose by 43 per cent from £290,705 to £417,108 when non-recurring items are excluded. Profit after taxation increased to £472,856 from £408,096 and there was a closing cash balance of £559,574, giving a net balance of £530,407 after bank debt. A maiden dividend has been proposed at 0.3 pence per share. Ansaback revenues increased by 17 per cent to £5,759,218 and CallScripter revenues increased by 26 per cent to £1,490,042. IP3 Telecom was awarded PCI DSS compliance (Payment Card Industry Data Security Standards) Level 1 compliance, the highest level of compliance issued by the governing body for global payment handling. Ancora revenues rose 28 per cent to £826,898. The office space doubled to 15,500 square feet following the purchase of the office freehold on 1 July 2013. Commenting on the Company’s results, CEO, William Catchpole, said: “The Group has made significant progress during the financial year to 30 June 2013 and with the increased space now available, notwithstanding an extremely competitive and challenging business environment, the Board is optimistic about progress in the year ahead.”

LiDCO Group (LON:LID 16p / £31.01m)

The cardiovascular monitoring Company announced that it has received clearance from the US Food and Drug Administration (FDA) for sales of the CNSystems’ continuous non-invasive blood pressure monitoring (CNAPTM) module with the LiDCOrapidv2 monitor with Unity software. LiDCO’s Unity software allows the connection to the LiDCOrapid v2 of modules to co-display CNSystems’ continuous non-invasive blood pressure monitoring with Covidien’s depth of anaesthesia parameter (BISTM). LiDCO believes there is growing demand for a multi-parameter monitor display which can reduce the number of single parameter monitors by the patient bedside. The Company estimates that 3.4m patients are suitable for peri-operative hemodynamic monitoring in the US alone and with FDA clearance now received the commercial opportunity for LiDCO to gain presence in the non-invasive monitoring market in the US is substantial. LiDCO received CE marking for sales in Europe of the LiDCOrapid v2 with both modules in February 2013 and FDA clearance for the LiDCOrapid v2 with the BISTM parameter in March 2013.

Manroy (LON:MAN 56.5p / £10.76m)

Manroy, the UK Defence Contractor, announced that it has been awarded a €1.7m (£1.4m) contract from a new European Government customer. It is expected that the contract, for Heavy Machine Gun spares, will be delivered before 31 December 2013, with deliveries commencing in September 2013, subject to a standard license approval processes. Glyn Bottomley, Manroy’s Chief Executive, said: “This is a fantastic win with a European Government customer against strong competition. This contract also includes a seven year exclusive framework agreement for further orders.”

MediaZest (LON:MDZ 0.31p / £1.92m)*

Turnover for the year to March 2013 was £1,850,000 (2012: £2,521,000), cost of sales was £941,000 (2012: £1,394,000) and the Group made a loss for the year, after taxation, of £551,000 (2012: £424,000) after finance costs of £138,000 (2012: £104,000) and having paid administrative expenses of £1,322,000 (2012: £1,447,000. Much of the decrease in turnover was as a consequence of the rescheduling of a large project that was anticipated to generate revenues of in excess of £400,000 to the subsequent financial year, ending 31 March 2014. The Company also announced in April 2013 that it had won a significant global contract that it expected to deliver revenues in excess of £1m over the subsequent 18 months. The Board believes that this contract offers significant future business opportunities for the Company. The Group has continued to add to its client base of blue chip retailers and brands and has an enviable record of client retention. In view of this and with the objective of expanding the Group’s business further the Company has taken on new business premises in Woking, moving from its current location in Farnham. It has also set up a demonstration showroom in Shoreditch in close proximity to the City of London. There has been a successful start to the current financial year. The Group won its single largest piece of business in April 2013 and this along with several other substantial contracts have given the Company a strong business base for this financial year. It has already booked revenue within the first five months of the current financial year significantly in excess of the corresponding period in the financial year ending 31 March 2013.

NetPlay TV (LON:NPT 18.75p / £54.46m)

NetPlay TV, the interactive gaming Company, announced its interim results for the six months ending 30 June 2013. There was a 36 per cent increase in net revenue to £14.2m (H1 2012: £10.4m) and a 17 per cent increase in EBITDA to £2.7m (H1 2012: £2.3m). Strong cash generation has been reported, with cash and cash equivalents increasing by £2.6m to £14.9m from £12.3m (H1 2012: £2.6m increase to £10.5m from £7.9m). There has been a 47 per cent increase in profit before tax to £2.3m (H1 2012: £1.6m). An interim dividend was declared, an increase of 20 per cent to 0.18p per share (H1 2012: 0.15p). The ITV1 broadcast agreement was renewed in April and post period the news on the Big Brother win is having a positive effect from a profile perspective. The Company saw a 31 per cent increase in new depositing players to 32,618 (H1 2012: 24,951) and a 32 per cent increase in average quarterly active depositing players to 29,311 (H1 2012: 22,258). Mobile and tablet now account for 28 per cent of total net revenue and 34 per cent of new depositing players (H1 2012: 10 per cent of total net revenue and 18 per cent of new depositing players). The new online marketing strategy is delivering positive results. Post period highlights include a continued strong trading in Q3 with average daily net revenue up 17 per cent on the same period last year. Full year results are expected to be in-line with current market expectations.

Petards Group (LON:PEG 12p / £1.304m)

In June 2013 the board of Petards Group commenced implementation of its “Getting Fit 4 Growth” Reorganisation Programme. As part of the Programme, the board of Petards announced the appointment with immediate effect of Paul Negus as Business Development Director of Petards Joyce-Loebl, the principal trading subsidiary of Petards, where he will be responsible for overseeing the sales and bid teams. Paul brings to Petards considerable commercial experience having spent eight years as Managing Director of PIPS Technology Limited, a manufacturer of Automatic Number Plate Recognition (ANPR) and CCTV systems first under private ownership and latterly under the ownership of Federal Signal Inc. (NYSE-FSS) following its sale to them.

Pinnacle Technology Group (LON:PINN 19p / £6.07m)
Coms (LON:COMS 3.85p / £23.15m)

Pinnacle Technology Group noted the announcement made by the Board of Coms on 3 September 2013 regarding its consideration of a possible corporate transaction with Pinnacle that could result in an offer by Coms for the entire share capital of Pinnacle being made. Pinnacle’s Board confirmed that it had since received a non-binding indicative offer for the entire issued and to be issued ordinary share capital of Pinnacle on the expected terms as described in the Coms announcement. Pinnacle believed that such an indicative offer was opportunistic and significantly undervalued the growth prospects of the Company. As such Pinnacle would not be recommending the offer to its shareholders. On the 5th September Coms noted the announcement by Pinnacle. Coms considered that its proposal reflected fair value for Pinnacle shareholders and, as such, without a recommendation from Pinnacle, Coms confirmed that it has no current intention to make an offer for Pinnacle.

Sphere Medical (LON:SPHR 36p/£21m)

Sphere Medical, a developer of innovative monitoring and diagnostic products for the critical care setting, has announced the completion of a study at Great Ormond Street Hospital for Children (GOSH) to evaluate the use of Sphere Medical’s Pelorus 1500 analyser to monitor accurately propofol levels during paediatric spinal surgery on anaesthetised children. An initial assessment of the GOSH study indicates that current dosing models can lead to significant variability in the concentration of drug present for this patient group. Detailed analysis of the results are being carried out at GOSH and these data, compiled utilising Pelorus 1500, are intended to be the basis for investigating an improved approach to dosing children in certain surgical procedures. In addition, Sphere Medical is also collaborating with the Department of Anesthesiology at the University Medical Centre Groningen (UMCG) in the Netherlands and clinicians are investigating the real time adaptation of dosing models to the individual patient using rapid propofol measurements provided by the Pelorus 1500 system.

Stadium Group (LON: SDM 43p / £12.71m)

The electronic technologies group announced unaudited interim results for the six months ended 30 June 2013. Revenues came in at £21.44m (2012 H1: £20.93m) with adjusted profit before taxation of £0.37m (2012 H1: £0.74m) but with strong cash conversion from underlying operations of 124 per cent. An interim dividend was proposed of 0.45 pence per share (2012 H1: 1.05 pence). Charlie Peppiatt took over as CEO on 1 June 2013 and oversaw the closure of the Rugby site; which was completed in August 2013. The other re-organisation activities in Head Office and Asia are substantially complete too, and the expected benefits will be realised in the second half of this year. Chairman Nick Brayshaw OBE said: We expect a strong second half performance built on a solid order book within the interface and displays business and the book-to-bill ratio within the power products business supports a much improved second half performance, which will be further enhanced by our e-commerce platform and a broader commercial offering of power products. Within the iEMS business, we have secured a number of contracts with new customers, albeit at lower margins, reflecting the on-going pricing pressures prevalent in this market… The Board is confident of delivering second half profits in line with current expectations, and has an increasing optimism towards 2014 performance and beyond.”

Straight (LON:STT 41.25p / £4.91m)

Straight, the environmental products and services group and the UK’s leading supplier of specialist waste and recycling container solutions, has secured a contract with Bournemouth Borough Council to supply an innovative new product for food waste recycling. The contract, worth in excess of £550,000, is to supply the new Food Waste Inner Caddy a product developed by Straight to add to its existing range of market-leading container solutions for food waste collection. This container is designed to sit inside the top of a 140 litre wheeled bin creating two separate streams for collection and recycling within the one container. The contract included the supply of the Straight Kitchen Caddy for indoor use, a quantity of the 23 litre Kerbside Caddy for larger households as well as a supply of Compost-a-Bag compostable liners. Created to meet a specific need for one customer, the product will be launched to the wider market on 10th September at the RWM Exhibition in Birmingham.

Stratmin Global Resources (LON:STGR 16p / £10.49m)

StratMin, the graphite production and exploration Company, announced the preliminary results of its first stage SGS South Africa (Pty) Ltd (SGS) metallurgical test work on the Lohorano Mine and a production and sales update. Bench scale flotation test-work (simulating the existing Lohorano plant) achieved a maximum product grade of 86 per cent carbon and an average grade of 82 per cent. The calibration of the plant, including the drying plant, is now complete. The plant is ready to produce at a capacity of 30 tonnes head rate (ore into the plant) per hour on a one shift per day basis. The Company intends to start production from 9 September. Carbon content and recovery remain variable, with the expectation of a quick improvement following the further pending SGS results and corresponding plant upgrades. It is expected that plant improvements, will be undertaken in parallel with production. Given these developments, previously announced guidance on achieving a 90+ per cent carbon content production in September 2013 will not be met. The Company is in advanced discussions with interested parties to sell the graphite it produces with a carbon content of 70+ per cent. The Company has been examining a number of financing options in order to carry out the expected upgrades, and to provide enough working capital to take it through to cash flow break even. A number of offers are being examined and will be the subject of a further announcement.

Summit Corporation (LON:SUMM 11.75p / £52.75m)*

Summit, a drug discovery and development Company advancing therapies for Duchenne Muscular Dystrophy and C. difficile infection (CDI), last week announced that clinical and preclinical data on its novel, selective antibiotic SMT19969 for the treatment of CDI will be reported in podium and poster presentations at the 53rd annual Interscience Conference on Antimicrobial Agents and Chemotherapy (ICAAC) meeting in Denver, Colorado, USA from 10-13 September 2013. Summit has been selected by an expert panel of the American Society for Microbiology to give an oral presentation summarising SMT19969 in the ‘Early New Antimicrobial Agents Poster Summary Session’, which will highlight the next wave of compounds with potential to move through the clinical development process. This presentation will feature Phase 1 clinical trial and preclinical data which will be included in five posters being reported by Summit and its key collaborators during the conference.

Surgical Innovations Group (LON:SUN 6.75p/£29m)

Surgical Innovations (SI), the designer and manufacturer of creative solutions for Minimally Invasive Surgery (MIS), has announced that revenues were up 28.4 per cent to £3.88m in the six months to June 2013, thanks to continued growth in higher margin SI branded products. Gross margins in core MIS business increased by 0.7 per cent to 45.5 per cent, while operating profit was up 18.2 per cent to £623,000. Revenues from SI branded products rose by 38 per cent to £2.93m, with strong sales of Resposable® instruments expected to continue to pull through disposable sales. Since July, SI has added two more distributors to the growing US distribution network and received the largest ever US order, in financial terms, for its branded products.

Toumaz (LON:TMZ 5.375p / £64.40m)

Toumaz, a pioneer in low cost, ultra-low power wireless communications technology, has joined with Spotify, to support the new Spotify Connect service on its dual band connected audio module. Audio devices powered by Toumaz’s Venice 6.5 module, such as wireless speakers, AV receivers and internet radios, will be able to wirelessly stream Spotify Connect directly, as the service is enabled by Toumaz’s chip. Users will then control their music and volume from their phone, tablet and audio devices without needing to use the band with on those devices to stream the service. Spotify Connect on Toumaz’s Venice 6.5 module will be demonstrated at the IFA Berlin 2013 show and the first products from selected partner audio brands are expected to be on the market later this year.

ValiRx (LON:VAL 0.395p / £6.76m)*

ValiRx, a life science Company with a focus on cancer diagnostics and personalised therapeutic development, announced its unaudited results for the half year ended 30 June 2013. Revenues for the half-year were £103,999 (2012: £157,535); administrative expenses of £683,593 (2012:£709,148); and a loss after taxation of £1,497,699 (2012: loss £1,088,122) reflecting an increased expenditure of £972,219 (2012: £540,211) being spent during the half-year on Research and Development. Development programmes across the Group are progressing well on all fronts and these include ValiRx’s leading anti-cancer therapeutic VAL201; its first GeneICE-derived compound VAL101 and Biomarker development to complement the Company’s therapeutics. VAL201 continues to progress in a “First-in-(Hu)Man study” Phase I trial involving cancer patients – results anticipated before the end of 2013 and VAL101 continues to show good progress in the pre-clinical phase – the programme is to benefit from a second Eurostars grant for up to EUR1.6m.

Verona Pharma (LON:VRP 2.375p/£9m)

Verona Pharma, the drug development Company focused on “first-in-class” medicines to treat respiratory diseases, has announced that two presentations discussing results from successfully completed RPL554 clinical trials will be presented at the upcoming European Respiratory Society (ERS) Annual Congress in Barcelona, Spain 7-11 September 2013. The ERS Annual Congress is the largest respiratory meeting in the world, with delegates attending from more than 100 countries. An oral presentation, discussing the anti-inflammatory effects of RPL554 from the clinical study completed earlier this year, will form part of the session entitled “Hot topics in airway disease: New horizons in treatment”. A poster describing safety and bronchodilator effects from a phase I/II clinical study of the drug in patients with mild allergic asthma and rhinitis will also be presented. Both the oral presentation and the poster support Verona Pharma’s view that RPL554 could become an important, novel and complementary inhaled medicine for the treatment of such respiratory diseases as asthma and COPD, either as a monotherapy, or as an addition to existing therapies. The Company has also appointed Richard Bungay as Chief Financial Officer, initially on a part-time basis, with immediate effect. Mr. Bungay has close to 20 years’ experience in corporate roles within R&D-based companies within the biotechnology and pharmaceutical sector. He is currently part-time CEO of Chroma Therapeutics Ltd, a VC-backed biotechnology Company working on the development of novel small molecules for inflammation and oncology, having previously been the CFO of the Company. Prior to this, he was Director of Corporate Communications and Strategic Planning at Celltech Group plc until its acquisition by UCB in 2004 and a Finance Director within Astra Zeneca’s Respiratory and Inflammation Therapy area.

*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.

18th September 2013

This week: UBI profits; Revenue surge at SVR; OUT with Ingram

The FTSE 100 consolidated its gains last week rising by just 33 points to 6,580, while the AIM All share continued to climb, rising 13 points to 779. The rise in bond yields should help the smaller cap indices as the yield-rich sectors look less attractive. This was reflected in the sector mix; with Technology, Mining and Real Estate outperforming Utilities and Integrated Oil & Gas. This week, markets have lacked direction despite the US and Russia agreeing a deal for Syria to avoid military action and the withdrawal of Lawrence Summers, known to favour more aggressive tapering, from the Fed race. This may reflect nervousness ahead of the Fed meeting on Wednesday, and what tapering to the QE program is announced. This will followed by US unemployment and existing home sales data on Thursday. For the moment, the slight fall in UK CPI in August has reduced the pressure on the BoE to raise interest rates.

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ACTA second power trial in Philippines, CNS interim results, EPO selected by Azimo, EKF interims, FUM interims, GRPH EPA approval, IDOX contract win, IKA new European customers, NETD interims, OUT partnership with Ingram, PSL Partnership with Ingram, PLA trading update, PLE Board changes, SVR half yearly report, STGR initial sales contract and placing, SUMM new data at conference, TAN M&A progress and debt, THAL trading update, TRT final results, UBI Interim results and client win

Acta (LON:ACTA 8.625p/£12m)

Acta, the clean energy products company, has announced that it has signed a contract with a new customer for a trial of its Acta Power back-up power system for telecommunications applications. The system is to be placed on trial with a second major mobile telecoms company at a telecom base station located in the Philippines. The new Philippine trial will be undertaken in partnership with Lead Core Technology Systems Inc. (LCTSI), a technical support company specialising in battery systems and engineering support services for telecommunications and other industries. LCTSI will be Acta’s engineering and client services partner and will be responsible for the installation and technical management of the trial as well as the commercial promotion of the installed system within the final client’s organisation. Acta’s first Acta Power trial in the Philippines was announced in July 2013 following the announcement of trials in Africa and Australia, all with major mobile telecoms operators, and a separate renewable energy storage trial in the UK.

Corero Network Security (LON:CNS 12.75p / £10.92m)

Corero Network Security, the listed US based network security Company, announced its half yearly report for the six month period ended 30 June 2013. Revenues of $9.5m (H1 2012: revenue $10.8m), an operating loss of $1.5m (H1 2012: loss $1.5m) and a loss before per share of 4.8 cents (H1 2012: 4.9 cents) were reported. Cash of $5.3m at 30 June 2013 (30 June 2012: $9.2m) was reported. Post period, Corero completed the sale of Corero Business Systems Limited on 1 August 2013 for a net consideration to the Company of $16.5m and which increases the gross cash on a pro-forma basis at 30 June 2013 to $21.2m. In the period, Corero Network Security continues to win new customers, 28 in H1 2013. New business and renewals have been won in the core verticals of gaming (including Camelot), e-betting and e-retail (including leading price comparison web site). The next generation product development will be ready for initial customer deployment by the end of 2013.

Earthport (LON:EPO 21.5p/£83m)

Earthport, the cross-border payments service provider, has announced that Azimo, the award-winning online money transfer platform, has gone live with the Earthport service. The agreement sees innovative start-up Azimo continue to revolutionise the international transfer of money direct to bank accounts by taking advantage of Earthport’s established service. The combination of Earthport’s fast and efficient payment capability and Azimo’s mobile, social and web-based consumer interface is expected to enable remittance customers to send money back home faster, more securely, and at lower prices. Earthport’s robust platform, broad network and low cost structure, will enable Azimo to expand its offering and accelerate scaling, whilst offering the most transparent, and cost effective methods of international money transfer in the industry.

EKF Diagnostics (LON:EKF 29.5p/£78m)

EKF Diagnostics, the point-of-care diagnostics business, has reported revenue up 17.7 per cent to £15m for the six months ending June 2013. Adjusted EBITDA in the same period was up 51.6 per cent to £2.12m. Quo-Lab and Quo-Test generated organic revenue growth of 115 per cent from H1 2012. With an encouraging start to the second half of the year, the management is looking forward to the rest of the year with confidence, supported in particular by an increasing contribution from Quo-Lab sales worldwide through its distributors and OEM partners as well as HemoPoint H2 sales through the Alere agreement in North America.

Futura Medical (LON:FUM 73p/£57m)

Futura Medical, the healthcare company focused on advanced transdermal technology, has reported highlights for the six months to June 2013. In CSD500 it made significant commercial, technical and regulatory progress with a licensing deal with Church & Dwight for North America and key European countries and a licensing deal with a Middle Eastern healthcare group for key MENA countries. CSD500 also received a positive opinion received from EU regulators ahead of the formal award of a CE mark. The soft launch of PET500 is under way in the USA by Ansell under the LifeStyles® brand. Two new products were added to the Pain Relief portfolio in the period. At the end of June 2013, the company had cash resources of £2.12m.

Graphene NanoChem (LON:GRPH 72.125p / £84.05m)

The performance chemicals and advanced materials Company announced that PlatClear, the Group’s waste-based second generation biofuel and the Group’s Senawang chemicals facility (Senawang) have both received approval from the US Environmental Protection Agency (EPA). This allows PlatClear to be sold into the US market which is forecast to be the world’s largest biofuels market by 2017. PlatClear, which is used as an additive into road-grade diesel and has greenhouse gas emission savings of more than 83 per cent received approval from the EPA after it was agreed that the product and Senawang complied with the Renewable Fuel Standards 2 (RFS2), the requirement in the US for the use of advanced biofuels. PlatClear is currently sold into the EU market and the Group supplies its PlatAmber second generation biofuel into the Malaysian market. The EPA approval opens up the US high priced export market for the Group. As the Group is now RFS2 compliant, products sold into the US would also allow the Group to generate Renewable Identification Numbers (RINS) that can be traded separately in the market.

Idox (LON:IDOX 37.125p / £129.55m)

A leading supplier of specialist document management collaboration solutions and services to the UK public sector and highly regulated asset intensive industries, announced that its Engineering Information Management (EIM) Division has agreed to supply its McLaren Fusion Enterprise application software suite and related services to PSEG Nuclear, a subsidiary of PSEG Power LLC. The contract in the first year is worth $2.3m, with an ongoing maintenance contract thereafter. PSEG Power is a major unregulated independent power producer in the U.S. with three main subsidiaries: PSEG Fossil, PSEG Nuclear, and PSEG Energy Resources and Trade. PSEG Nuclear will use Idox’s Enterprise suite for its 2,500 users at its nuclear facilities to ensure compliance, asset availability, reduced maintenance costs and the highest standards in operational safety.

Ilika (LON:IKA 24.5p/£12m)

Ilika, the cleantech materials development company, has acquired a further two new customers in Germany as a result of its increased business development efforts in Europe. Both customers are blue-chip OEMs, which also have multi-billion supply-chain businesses selling into global markets. Both of these customers have entered into collaborations with Ilika in order to extend their strong in-house R&D capabilities by accessing Ilika’s proprietary high throughput techniques. One of the customers is accessing Ilika’s world-recognised expertise in lithium-ion battery technology, while the other is using Ilika’s proprietary material discovery techniques for the optimisation of high efficiency LED lighting.

NetDimensions (LON:NETD 58.5p / £22.18m)

A global provider of enterprise-class performance, knowledge and learning management systems, announced its interim results for the six months ended 30 June 2013. The half year saw a 10 per cent revenue growth to US$6.5m (H1 2012: US$5.9m) and a 30 per cent revenue growth in its global hosted secure Software as a Service offering was reported to US$2.6m (H1 2012: US$2.0m). There has been a 25 per cent increase in deferred revenue to US$5.5m (H1 2012: US$4.4m) and a 13 per cent increase in gross profit to US$6.0m (H1 2012: US$5.3m). The Company reported a 31 per cent increase in net cash to US$10.2m (H1 2012: US$7.8m). US$6m was raised from a highly successful share placing in May 2013 and then post period end a US$5m finance facility with Silicon Valley Bank was put in place. The formation of NetDimensions Healthcare on the back of the US$3.5m acquisition of eHealthcareIT in March 2013 was announced. The headcount increased by 34 (28 per cent) to 155 with Sales-quota carrying heads increasing by 12 (71 per cent) to 29. The appointment of Key Senior Executives; Chief Financial Officer, Chief Sales Officer, Chief Human Resources Officer, Global Alliances & Key Accounts Executive and General Counsel were made in the period. 34 new clients were added through direct and reseller channels including DB Schenker, Babcock, BCD Travel, Digicel Group, Emdeon, The Nature Conservancy, and the Musculoskeletal Transplant Foundation. A new product was launched for NetDimensions Analytics in the period, a powerful SaaS solution for learning, performance & talent data analytics.

Outsourcery (LON:OUT 118p/£37m)

Outsourcery, a leading Cloud Service Provider (CSP) has agreed a strategic partnership with Ingram Micro UK, a division of Ingram Micro Inc. (NYSE:IM), the largest global wholesaler of technology products and supply chain management services. Outsourcery’s cloud solutions will be available to thousands of companies in Ingram Micro’s partner network and will enter into contracts with resellers directly. Ingram Micro partners will sell Outsourcery’s hosted version of Microsoft Lync giving them access to enterprise-grade ‘voice’ and unified communications functionality delivered from the cloud. The strategic partnership with one of the world’s largest wholesalers of technology products further deepens Outsourcery’s IT channel relationships alongside its communications channel reach for the delivery of converged solutions to businesses of all sizes.

PhotonStar LED (LON:PSL 6p/£7m)

PhotonStar LED, the designer and manufacturer of smart LED lighting solutions, reported revenue growth of 13 per cent to £4.3m for the six months ending June 2013. Gross profit rose 12 per cent to £1.7m. EBITDA loss of £0.31m is expected to be reversed in the second half of the year as the management believes the H1 operational issues and product development delays have been addressed and there is a strong financial control now in place. ChromaWhite, the next generation smart circadian light engine, is now shipping and expected to contribute to revenues in 2013.

Plastics Capital (LON:PLA 110.5p / £30.43m)

Plastics Capital, the niche plastics products group, confirmed that the Company continues to trade broadly in line with market expectations. Mandrel sales have been strong during the first half of the current financial year and are currently up 50 per cent year-on-year. This part of the business is benefitting from both a general improvement in market demand for existing products, the introduction of new products and the positive effects of various business development initiatives that have been introduced over the last three years. The Company believes that similar initiatives in its other divisions will produce positive results in the near future. Within the bearings business, Plastics Capital has also won its first project for integrated plastic bearings to be used in automotive instrument control knobs since the beginning of the financial year. This project should contribute £200,000 sales per annum when in full production. A further six smaller projects in the bearings business have also been won since the start of the financial year amounting to a total annualised sales value of £600,000 when in full production. Instrument control knobs are expected to continue to be an exciting new application area for the Company with significant potential for further projects in the near future. The industrial film packaging business has successfully completed the installation and commissioning of the new high speed extrusion line. New film compositions and types have been trialed and are being introduced into the market. Management is confident that this investment will contribute significantly to profit growth henceforward.

Plethora Solutions Holdings (LON:PLE 8.35p / £28.89m)*

Plethora announced that it has strengthened the board with the appointment of Dr Greg Bailey and Mike Collis as non-executive directors with immediate effect. Dr Bailey is an investor and entrepreneur in the biomedical sector having spent time previously as an investment banker and a physician. Mike Collis is an advisor to Maven Capital Partners LLP, which manages the Capital for Enterprise Fund which provided a £1m facility to the Company under which it has the right to appoint a director to the board. Jim Mellon, Chairman of Plethora said:”I am delighted to welcome Greg and Mike to the Board. They add significant experience at a time when the Company is poised to achieve long-awaited milestones in terms of approval and commercialisation of PSD 502. Plethora is on the verge of an exciting future and it is appropriate that we add the highest calibre people to our Board to guide the business to profitability.” Plethora’s share price has gone up 35 per cent over the past month, and is up 205 per cent over the past three months.

ServicePower Technologies (LON:SVR 4.125p / £8.25m)

ServicePower announced its half-yearly report for the period ended 30 June 2013. Revenue came in at £7.3m (H1 2012: £5.6m); gross profit £3.5m (H1 2012: £2.4m) and profit before tax £0.2m (H1 2012: loss of £0.6m). The cash balance was £2.3m as at 30 June 2013 (30 June 2012: £4.1m and 31 December 2012: £4.5m) due to extraordinary expenses; advisory fees; delay in debtor collections and normal timing fluctuation of deferred revenue and maintenance renewals. Marne Martin was appointed as CEO, from interim CEO and previously CFO, after the period end. She said, “It is clear that ServicePower has extremely valuable assets in its people, its customer base and its unique global field management platform. The first half of the year has seen demonstrable sales success resulting in a growing, prestigious customer base. The Board believes the market is set for long-term growth and a systematic approach to ensuring ServicePower’s success and delivering increased shareholder value is now in place. ServicePower is innovating field service.”

Stratmin Global Resources (LON:STGR 22.625p / £14.83m)

StratMin, the graphite production and exploration company with assets in Madagascar, has agreed a first sale of 200 tonnes of graphite. The Company has agreed to sell 200 tonnes of graphite production to Grafitbergbau Kaisersberg of Austria. The sale will consist of large flake graphite with a carbon content of +70 per cent and a moisture content of under 5 per cent. Fulfillment of this commitment has begun and will continue throughout September into October. StratMin also and separately announced that it has raised gross proceeds of £750,000 by means of a placing of new ordinary shares at a price of 18 pence per share (circa a 19% discount to the prevailing share price) and 100 per cent warrant coverage for a period of nine months from the Admission Date at 20 pence per share. The funds raised will be used by the Company to invest in further upgrades at the Lohorano plant in order to increase the produced graphite carbon content grade, and for working capital as the Company works towards cashflow break even.

Summit Corporation (LON:SUMM 15.75p / £70.46m)*

Summit, a drug discovery and development company advancing therapies for Duchenne Muscular Dystrophy and C. difficile infection (CDI), reported further positive data on SMT19969, its novel and selective antibiotic for the treatment of CDI, at the 53(rd) annual Interscience Conference on Antimicrobial Agents and Chemotherapy (ICAAC 2013) meeting held in Denver, Colorado, USA, September 10-13, 2013. The data presented included in-depth results from a Phase 1 clinical trial and additional preclinical studies that have recently been completed. These data are detailed in five poster presentations from Summit and two key collaborators, Dr Ellie Goldstein (R M Alden Research Laboratory, California, USA) and Professor Mark Wilcox (Leeds Teaching Hospitals and University of Leeds, Leeds UK). Summit was also selected to highlight these results in a podium presentation by an expert panel from the American Society of Microbiology. Full analysis of the trial data was presented at ICAAC 2013 and showed that SMT19969 was safe and well tolerated at all doses tested; highly sparing of natural gut flora in all subjects who received repeat doses of the drug for ten days at the expected therapeutic dose or above. The major bacteria groups were largely unchanged with the exception of total Clostridia, which were reduced during treatment. The development of SMT19969 is being supported through to completion of a Phase 2 clinical trial by a Translational Award from the Wellcome Trust. Summit’s share price has gone up 109 per cent over the past month, and is up 232 per cent over the past three months. “These new data presented at ICAAC 2013 further validates the promise of SMT19969 as a novel and highly targeted antibiotic for the treatment of this serious infectious disease,” commented Glyn Edwards, Chief Executive Officer of Summit. “These results demonstrate that SMT19969 selectively kills all C. difficile strains tested, is highly sparing of healthy gut flora and shows no reduction in activity when used in combination with other antibiotics. This profile is encouraging for treating CDI and significantly reducing rates of recurrent disease and we look forward to advancing SMT19969 into Phase 2 clinical trials in H1 2014.”

Tanfield Group (LON:TAN 23.5p / £32.78m)

Tanfield, the manufacturer of Aerial Work Platforms, provided an update to the M&A progress announcement of 9 August 2013. The Board reported that the Company, together with the preferred potential purchaser is making significant progress with its due diligence and the completion of a suitable contract. The Company is continuing to be managed to conserve cash through the sales process. In order to bolster the company’s cash position and to provide working capital headroom through the period, the Company has secured a debt facility of £500,000 from two of its Directors. The loan is secured and has a fixed interest rate of 9.5 per cent and is repayable on the earlier of completion of the sale of the powered access division or 20 December 2013. The Company may need to raise further funds from exchange of contract to completion. The board will seek alternatives sources of funds, however, these Directors have indicated they would be prepared to extend further funds if necessary.

Thalassa Holdings (LON:THAL 252.5p / £42.27m)

The Board of Thalassa noted that, since the announcement of the Company’s Interim Results on 30 July 2013, the Company has made significant progress in fulfilling its obligations under customer contracts. As a result, the Directors are now confident, provided trading in the remainder of the year remains in line with their expectations, that the Company’s performance for the year ending 31 December 2013 will significantly exceed market expectations. In addition, the Directors are becoming increasingly optimistic in the Company’s ability to convert a record level of enquiries into increased revenue in 2014 and beyond.

Transense Technologies (LON:TRT 7.75p / £20.74m)

Transense Technologies, the provider of sensor systems for the transportation and industrial markets, announced its final results for the 12 months ended 30 June 2013. Revenue increased 98 per cent to £1.5m (2012: £0.765m). The loss after tax was £2.383m (2012: loss £2.560m). Proceeds from issue of equity share capital & warrants during the period was £3.902m, leaving the cash and equivalents at the end of the period, at £1.98m (30 June 2012: £0.195m.) Graham Storey, CEO, commented:”The last twelve months have been the most successful in terms of revenue in the Company’s history and indications in recent months are that this pattern of growth is continuing into the coming year. Having invested heavily in R&D, developing products and a worldwide partner and distribution network, the Company has moved into a new phase of growth, with rapid expansion underpinned by our strengthened balance sheet. We look forward to the coming years with considerable confidence.”

Ubisense Group (LON:UBI 217.5p / £47.90m)

Ubisense Group, a market leader in real-time location intelligence technology, announced its interim results for the six months ended 30 June 2013. Customer bookings were up 87 per cent to £17.2m and the order book was up 38 per cent year-on-year to £14.1m as at June 30, which both continue to provide good revenue visibility. A new £5m bank facility was signed in August 2013 to provide the capacity to meet future working capital requirements. Revenue increased 3.6 per cent to £12.4m (H1 2012: £12.0m); recurring revenues up, representing 26.8 per cent of total revenues (H1 2012: 24.3 per cent). The Company reported an operating loss of £1.5m (H1 2012: £0.8m loss). Ubisense also separately announced that a large European automotive manufacturer has selected the Ubisense Smart Factory System for their Eastern European assembly plant, only months after choosing to go into production with the system at one of their German plants.

*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.