Small Cap Wrap: Month: October 2013

AIM Breakfast - Archive

9th October 2013

This week: Top results for PHD, clear growth in BLUR, BGO target in Africa

The UK markets remained under pressure last week as investors remained anxious over the US government shutdown. The FTSE 100 ended the week 52 points lower at 6,458 whereas the All Share AIM Index drifted 14 points to 778. Investors remain on the sidelines as we enter the second week of a US government shutdown. Adding to selling momentum was the release of disappointing macro data from both the US and EU: lower than expected Economic Optimism in the US at 38.4 combined with declining German Trade Balance and German Factory orders. In the UK, all sectors are floating in the red territory with Life Insurance, Oil services and General Retailers leading the deterioration. Defensive sectors such as Tobacco are helping market capitalisation losses. We doubt the shenanigans in the US will derail the overall trajectory of the markets. The sheer size of the US debt makes it unlikely that the US politicians will let the US default and we expect risk to come into favour once this uncertainty is settled.

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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.

ASW wins large contract, BGO deal in Africa, BLUR Q3 metrics update, CRA contract amendment, ISL share repurchase programme, JWNG Tryzens disposal, MIRL trading update, OPE directorate change, POS additional order, PHD full year results, PROX partnership with Isis, QFI final results, SUN appointment, TCN trading update, VRP placing, VRS distribution agreement

Advanced Computer Software Group (LON:ASW 84.25p / £399m)

Advanced Computer Software Group has signed an agreement with a global London-based business, to provide it with a full outsourced IT support service. The contract is worth a total of £14.5m over five years. ACS will manage the organisation’s IT infrastructure across multiple sites including server hosting, storage and back-up, application and database support, telephony and systems monitoring. A dedicated team of senior engineers will provide on-site and remote support through a combination of service desk and desk-side support. This will enable the client to streamline its business processes and focus upon its own strengths and delivery. This is the Group’s second largest deal to date and is the largest contract so far for its Managed Services division.

Bango (LON:BGO 135.5p / £61.76m)

The mobile web payments and analytics company announced a partnership with MMIT in Africa to launch M- Iflo, a billing mechanism and verification portal for digital wallets, specifically designed to fit the cash-exchange culture of Africa and the region’s mobile payment landscape. M-Iflọ will initially be available in Kenya and Nigeria, quickly followed by Uganda, Tanzania, and Zambia – and it is already integrated with some of the major mobile wallet providers in Africa, including Mobipay in Kenya and Stanbic IBTC Mobile Money in Nigeria, with further rollouts in process.

blur (LON:BLUR 462.5p / £137m)

blur has experienced its most successful quarter to date in the third quarter of 2013, seeing a marked acceleration in s-commerce adoption and significant growth in all of its key metrics. With 178 per cent y-o-y growth in the number of new projects, a 493 per cent y-o-y growth in total value of projects submitted and a 115 per cent y-o-y growth in average project value during the quarter this shows a continuation of the momentum recently highlighted in blur Group’s half-year results. The total value of projects submitted to the Exchange is now over $50m, with $17.3m in the quarter. This growth from $20.2m cumulative values at the start of the year, a total that took four years to achieve, was facilitated when project value ceilings were increased to $5m on its blur 3.0 platform this quarter.

Corac Group (LON:CRA 13p / £40.0m)

Corac Group announced that its subsidiary Corac Energy Technologies (CET) has signed an amendment to its contract with Aramco Overseas Company BV, a subsidiary of Saudi Aramco, for a revised scope of work to develop an In-pipe Gas Compressor (IGC). This amendment follows a technical review that was completed earlier in the year, as announced at the time of the Group’s half year results in September. As a result of this amendment the total contract is now valued in excess of £1m and will enable CET to support the design, development, build and test stages of this pioneering system for the energy industry. The contract amendment follows extensive joint reviews with the Aramco team in the Kingdom of Saudi Arabia of the available wells and the technical options to provide compact compression at the wellhead. The system will be designed to satisfy a range of well conditions with several hundred candidate wells, to provide potentially substantial returns to CET. Detail design and build of the revised system will begin immediately with field testing anticipated in early 2015.

IS Solutions (LON:ISL 47.75p / £12.08m)

Pursuant to the authority given to IS Solutions by shareholders, the Company announced that, in order to be able to buy back ordinary shares each of 2p nominal in the Company during and out of the Company’s close period, it has entered into an irrevocable, non discretionary programme with the Company’s broker, to purchase up to 200,000 Ordinary Shares to be held in treasury. The non discretionary buy-back programme will operate immediately. Any acquisitions will be made within certain pre-set parameters, and in accordance with the Company’s general authority to repurchase Ordinary Shares.

Jaywing (LON:JWNG 23p / £17.14m)

Further to the announcement on 3 October 2013, Jaywing reports that it has completed the sale of its e-commerce arm, Tryzens Limited, for a total transaction value of £6.0m in cash. The funds were provided by Scottish Equity Partners to allow for the acquisition of the total share capital of Tryzens through a management buyout. As a consequence of the transaction both the outstanding inter-company debt owed to Jaywing by Tryzens and the outstanding Jaywing debt owed to Barclays have been fully repaid, leaving a positive cash balance. The disposal significantly strengthens the balance sheet and allows Jaywing to consider investment in areas of greater strategic interest and which have greater overlap with Jaywing’s core marketing business. In the year ended 31(st) March 2013, Tryzens generated £0.3m profit after tax and had net assets of £1.1m.

Minera (LON:MIRL 16.875p/£33m)

Minera IRL, the Latin American gold mining company which operates the Corihuarmi gold mine and advanced Ollachea gold project in Peru, and Don Nicolas in Argentina, has confirmed that it is in discussions with LionGold Corp Ltd (LGC) which may or may not lead to an offer being made for the company. In addition, LGC and Minera are in discussions regarding a potential private placement under which LGC would agree (subject to certain conditions) to subscribe for up to US$10m of the share capital of the company in two tranches.

Optare (LON:OPE 0.275p / £6.15m)

Optare announced the appointment of Enrico Vassallo to the Board of the Company in the role of Chief Executive Officer with effect from 7 October 2013. Per Gustav (known as PG) Nilsson who has been acting as interim CEO since 1 January 2013 has stepped down from the Board at the same time. The Company would like to thank PG for his contribution to the Company over the last few years and wishes him well for the future. Glenn Saint continues in his role as Deputy CEO. Mr Vassallo, 45, first joined the Company at the beginning of September 2013 as CEO of its principal operating company Optare Group Limited. Mr Vassallo joins the Company from FPT Industrial, the division of Fiat Industrial which develops and manufactures diesel engines, axles and transmissions for industrial applications, where he was the President responsible for the group’s operations in Latin America. Prior to that Mr Vassallo held various senior management positions in the Fiat bus division, IVECO Irisbus. Yorkshire based Optare is one of Britain’s leading bus makers and is 75 per cent per cent owned by Ashok Leyland, which is among the top five global bus producers.

Plexus Holdings (LON:POS 262p / £216m)

Plexus Holdings announced it has been awarded a contract for the supply of surface exploration wellhead equipment services, worth approximately £750,000 from Centrica Energi Norway, a leading oil and gas company. Under the terms of the contract, Plexus will supply its POS-GRIP(R) Surface Wellhead System for an appraisal well in the Norwegian Continental Shelf. This follows on from an initial exploration well in 2011. Revenues are expected to commence in October 2013. Plexus’ CEO Ben Van Bilderbeek said: “Centrica used Plexus’ wellhead equipment to drill their first well offshore Norway which was followed by a further seven wells on the Maersk Guardian jack-up rig – all drilled using Plexus POS-GRIP equipment. This included leading operators Centrica, Det Norske, Faroe Petroleum, Lundin & Lotos. It is therefore pleasing to secure an additional order with Centrica and demonstrates how Plexus continues to win repeat business”.

PROACTIS (LON:PHD 28p/£9m)

PROACTIS Holdings, the specialist spend control software provider, has reported that revenue increased by 7 per cent to £8m in the year to July 2013, while adjusted operating profit increased by 117 per cent to £0.6m. Total initial contract value signed in the year reached £2.8m on 35 new deals, with £1.4m recognised in the year. As a result, total contracted but not recognised multi-year revenue increased 22 per cent to £6.2m. The company also reported a 100 per cent positive record on early renewals of subscription deals.

Proxama (LON:PROX 6.375P/£31m)

Proxama, the leading provider of NFC (Near Field Communication) mobile wallet and NFC mobile engagement technology, has announced that it will work with Isis, the mobile commerce joint venture created by AT&T Mobility, T-Mobile USA and Verizon Wireless, to develop the Isis Mobile Wallet(R) application for NFC-enabled devices using the BlackBerry 10 operating system platform. Proxama has already worked with leading brands such as EAT, KFC, EE, and Barclaycard on NFC initiatives to support consumer engagement and mobile wallets.

Quadrise Fuels International (LON:QFI 23.125p / £178.65m)

Quadrise Fuels International, the emerging manufacturer and supplier of MSAR(R) emulsion fuels, a low cost alternative to heavy fuel oil (one of the world’s largest fuel markets utilising over 600 million tonnes per annum) in the global shipping, refining and steam and power generation markets announced its results for the year ended 30 June 2013. The Company also gave notice for the convening of an AGM to be held on 15 November 2013. Quadrise MSAR(R) Marine Fuels ‘Proof of concept’ seaborne trials are to start before the year end 2013 in two Maersk ships using Wartsila and MAN engines. The Company is progressing on its review to LONO certifications and early commercial operations are expected by mid 2014. Regarding the AkzoNobel relationship, the Alliance Agreement will be replaced by a Commercial Agreement and a Research and Technology Agreement. The Company will become the licensor of the Quadrise MSAR Technology. Akzo and Quadrise will share future IP ownership and Quadrise will have worldwide rights for Akzo technology in emulsion fuels applications. In Saudi Arabia, Aramco has designated a Saudi refinery directly linked to an integrated steam and power utility serving a major petrochemical complex as the preferred first application of MSAR technology. In Central & South America, a programme is proceeding with Ecopetrol to review the feasibility of a joint venture for manufacturing and marketing of MSAR fuels in the region. On a global oil major, positive results on trials to emulsify a heavy residue stream produced in a proprietary petrochem/refining process with potential multi-site availability have been demonstrated. The Company has no debt and £3.2m (2012: £1.7m) in cash reserves at 30 June 2013. There is a loss after tax of £5.0m (2012: £4.2m) and there are cumulative tax losses of £33.7m (2012: £30.6m) available for set-off against future profits. The Company has total assets of £10.3m at 30 June 2013 (2012: £13.8m), which includes equipment for the Group’s own R&D facility established in the UK during the year. On 29 August 2013, QFI announced the execution of contracts enabling production and supply of Marine MSAR(R) 2 to Maersk during 2013 for seaborne operations.

Surgical Innovations (LON:SUN 6p/£23m)

Surgical Innovations Group, the designer and manufacturer of creative solutions for minimally invasive surgery (MIS), has appointed a veterinary surgeon Romain Pizzi to its Clinical Advisory Board (CAB) with immediate effect. Mr. Pizzi, is the only veterinary surgeon in the UK to specialise in minimally invasive keyhole surgery for wildlife and has had strong links with the company for many years helping drive awareness of Surgical’s MIS products. Mr. Pizzi has previously worked in veterinary private practice, academia, and numerous charities and NGOs developing MIS in domestic and exotic animal species since 2006. Mr. Pizzi was the first vet to ever perform keyhole surgery on a reindeer at Edinburgh Zoo in 2009, using surgical instruments donated by SI. He is a veterinary surgeon at the Royal Zoological Society of Scotland, Edinburgh Zoo, as well as at the Scottish SPCA’s (Society for the prevention of Cruelty to Animals) National Wildlife Rescue Centre, and is a Special Lecturer in Zoo and Wildlife Medicine at the University of Nottingham. He brings with him great knowledge of the company’s laparoscopic devices, especially the innovative 3mm instruments, having performed over 600 keyhole MIS procedures on zoo and wild animals.

Tricorn Group (LON:TCN37p / £12.39m)

Tricorn Group, the listed tube manipulation specialist, provided a trading update for the six months ended 30 September 2013 ahead of entering its close period. First half revenues for the Group are expected to be around 15 per cent higher than the corresponding period last year. Revenue from the USA acquisition, and modest but increasing revenues from the China facility, have more than offset what have remained generally softer markets for the UK businesses and, the anticipated lower revenue from the aerospace sector. However, given prevailing conditions for the UK businesses and the investment in both the USA and China, profit before tax for the half year is expected to be slightly below management’s expectations for the period. Tricorn will provide a further update on current trading and prospects at the time of the release of its unaudited interim results for the six months ended 30 September 2013, which is expected to be on 3 December 2013.

Verona Pharma (LON:VRP 2.275p/£7.6m)

Verona Pharma, the drug development company focused on “first-in-class” medicines to treat respiratory diseases, has reported a placing of 36.4m shares at 2.2p per share to raise approximately £0.8m before expenses. Jan-Anders Karlsson, the CEO, and Stuart Bottomley, a non-executive Director, have agreed to subscribe respectively for 0.9m and 2.3m shares. The company will use the proceeds of the placing to finance the ongoing costs of the business. The company remains in discussions with potential strategic investors to cornerstone an equity issue to further progress the RPL554 and VRP700 programmes. As a result of this placing, the company has terminated its equity finance facility, which was announced on 31 January 2013.

Versarien (LON:VRS 14.5p/£12m)

Versarien, the advanced engineering materials group, has announced that it has signed a distribution agreement with Compare the Game, an online video game aggregator, for the supply of jointly developed water cooled PCs, which utilise Versarien’s patent porous metal copper technology, VersarienCu. These high speed gaming PCs, designed to offer improved reliability coupled with high performance, will be offered for sale through Compare the Game’s website. Versarien’s porous copper can be applied in cooling systems across a variety of hardware applications, and when incorporated into liquid cooling systems can improve their efficiency by up to ten times.

*A corporate client of Hybridan LLP

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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.

2nd October 2013

This week: Above AVG growth, BES in high spirits, No LID on UK sales

The tide appears to be turning in favour of higher risk small cap stocks. Last week, the FTSE lost 85 points to reach 6,511, while the AIM All share continued to outperform, rising 2 points to 792. In the past month, AIM has outperformed the FTSE by nearly 5 per cent. The fall in the major indices is being rationalised by concerns over a lack of compromise in debt and budget negotiations by lawmakers in Washington, plus the speculation about the fragility of the Italian government. In the UK, lower than expected PMI manufacturing index together with fractionally expanding data from China weighed on the mining sector. Consumer staples, as well as tobacco and beverage names have drifted lower after Unilever announced an emerging market slow-down in Q3, which was accentuated by a currency weakening. We would argue that there is a more fundamental trend emerging beyond the swings in monthly and quarterly data. Risk is back.

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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.

ANCR full year results, AVG £55m contract & results, BES trading update, ESCH license extension with Saudi Post, LID interims, OUT half year results, PHRM interim results & update, REVO interim results, SCLP business update, SIS trading update, SNCL trading update, STT interim results, SUMM data at conference, TEG interims, UBI ISR Transit contract, VIY final results, VRS launches water-cooled PC

Animalcare Group (LON:ANCR 182p / £37.76m)

Animalcare Group, a supplier of veterinary medicines, announced results for the year ended 30th June 2013. Animalcare sells products in three discreet groups: Licensed Veterinary Medicines, Companion Animal Identification and Animal Welfare products. Revenue increased 11.6 per cent to £12.1m (2012 – £10.9m). Sales of Licensed Veterinary Medicines were up 20.6 per cent. Underlying EBITDA increased by 16.6 per cent to £2.9m (2012 – £2.5m) and underlying operating profit was up 17.0 per cent to £2.7m (2012 – £2.3m). The underlying basic earnings per share increased by 12.9 per cent to 10.5p (2012 – 9.3p). Continued strong cash generation with year-end cash of £3.7m (up from £2.3m) was reported. A total dividend for the year was up 17.8 per cent to 5.3p (2012 – 4.5p). Strong revenue growth from Licenced Veterinary Medicines was reported against a flat UK companion animal pharmaceuticals market. The focus on Companion Animal Identification has stabilised the decline in sales of microchips and associated services derived from the microchip database are growing. Three new products were launched in the year and a fourth gained its Marketing Authorisation during the year. The Company relocated to new premises with better facilities and increased capacity achieved with no disruption to trading. Executive and senior management changes were successfully completed according to plan.

Avingtrans (LON:AVG 139p / £37.61m)

Avingtrans, a manufacturer of critical components and associated services to the global aerospace, energy and medical sectors announced that Sigma Precision Components UK Ltd, part of the Group’s Aerospace Division, has signed a ten year long term agreement (LTA) with Rolls-Royce plc valued at £55m over its duration. The contract is to be sole supplier of self-locking nuts to Rolls-Royce and its supply chain. This is the second LTA to be signed with Rolls-Royce within the last twelve months. In order to support the contract, Sigma will invest in additional manufacturing capability at its facilities in the UK and China. The Company also announced its results for the twelve months ended 31 May 2013. Revenue increased by over 40 per cent to a record £45.3m (2012: £32.2m). The order book remains at record levels, driven mainly by Aerospace. Adjusted EBITDA increased by 50 per cent to £3.6m (2012: £2.4m). Net debt was £2.9m (2012: £8.4m) and the final dividend increased by 50 per cent to 1.5 pence per share (2012: 1.0p).

Blavod (LON:BES 1.375p/£4.2m)

Blavod Wines & Spirits, the owner of premium drinks brands including Blavod Black Vodka, Blackwoods Gin and Vodka and RedLeg Spiced Rum, has reported that it is continuing to generate increased levels of revenue from its own brands and this, coupled with the careful management of its financial resources, means that it remains on target to achieve monthly breakeven in the early part of the next financial year. In particular, the Company has seen increased level of sales of RedLeg Rum both in the UK and abroad, and this bodes well for the work that has been done to re-design some of its other brands. In October 2013, the Company will be launching the redesigned Blackwoods Gin 60% and Blackwoods Vodka brands into the UK, which will be retailed through a number of on-trade outlets as well as UK grocery multiples.

Escher Group Holdings (LON:ESCH 272.5p / £50.78m)

Escher Group Holdings, a provider of outsourced, point of sale software to the postal industry, has entered into a contract to extend its license agreement with Saudi Post for the use of its Riposte(R) software. With this contract Saudi Post will extend its software licenses from 150 to 800 operational workstations. This licence extension follows the successful completion of an initial implementation phase in July 2013, which was mainly focused on mail services. Escher, with its partner ABANA Enterprises Group will now deliver front office services for the remaining Saudi postal branches throughout the Kingdom. Escher will also deliver additional services to existing automated counters, and will complete the automation of the remaining outlets in Saudi Post’s national network. Liam Church, CEO of Escher Group said: “This contract extension is a testament of Saudi Post’s confidence in our Riposte(R) software and its effectiveness in the initial phase. Our solutions will help strengthen Saudi Post’s business operating model and support its aim to provide more value-added services to its customers.”

LiDCO (LON:LID 15p/£29m)

LiDCO, the hemodynamic monitoring Company, has reported that total revenue was up 27 per cent to £4.24m in the six months ended July 2013 as it benefitted from the wider adoption of intraoperative fluid management technology by the NHS. LiDCO product sales (excluding third party products) increased 36 per cent, with UK revenue particularly strong rising by 48 per cent. The management believes this momentum will continue in the second half, particularly now that the LiDCOrapid v2, with both non-invasive and depth of anesthesia options, are available for sale in the EU and USA.

Outsourcery (LON:OUT 120.5p / £37.15m)

Outsourcery, a Cloud Service Provider has published its half year results for the six months ended 30 June 2013. It was admitted to AIM in May 2013. Revenue was up 23.5 per cent to £2.1m (2012: £1.7m), with recurring revenue of £1.5m and the monthly recurring revenue at 30 June 2013 of £0.3m, giving annualised recurring revenue (ARR) of £3.3m. The MRR had grown to over £0.4m at 31 August 2013, giving ARR of £5.1m. Adjusted EBITDA showed a loss of £3.2m (2012: loss of £3.9m). Gross cash at 30 June 2013 was £7.3m (2012: £1.1m). Monthly recurring revenue growth expectations are on track for December 2013, underpinning the year end exit run rate, with increasing pipeline visibility for 2014. The partner network has more than doubled since the IPO, and now exceeds 370 signed partners. A new strategic partnership was signed with Ingram Micro, the world’s largest technology distributor, the Virgin Media Business unified communications offering was launched in September 2013 and a partnership agreement with Microsoft Corporation was signed in September 2013 to deploy first IL3 accredited secure cloud platform for UK public sector.

Phorm Corporation (LON:PHRM 3.25p / £13.95m)

Phorm announced its unaudited financial statements for the six months ended 30 June 2013. Operating losses were $24.3m (2012: $30.7m) and as at 31 August 2013, the Group held cash and cash equivalents of $9.0m. The average monthly cash burn for the last three months (June-August 2013) was $2.5m (average January-June 2012: $2.2m). During this period the Company has focused on commercialising operations in Turkey and launching its business in China. On 27 September 2013, the Company announced that it had made substantial progress in Turkey: users had increased by 100 per cent from 28 June to 1.2m active on a daily basis; advertising requests had increased from an average of 30m per day to 40m per day; and the number of advertising impressions served by the Company had grown by over 70 per cent to 67m by the end of August. The Company has also received some excellent feedback from its partners with respect to conversion rates, achieving rates of up to 40 per cent in some recent campaigns. In China, the Company is finalising its operational launch preparations and will update the market on this progress shortly. Separately the Company announced that it is seeing strong sustained growth in revenue and other key performance indicators. The number of daily active users is now 1.2m, a 100 per cent increase on the number previously announced on 28 June and the rate of growth is increasing. Phorm has continued to sign and build its publisher network. In June, the Company was receiving an average of 30m requests per day, this has now grown to over 40m requests per day. In August it received a total of over 1.2bn advertising requests. Likewise the number of advertising impressions served by the Company is also continuing to grow. Phorm is able to serve both display and text advertising, which allows advertisers to target advertising at the key-word level without using a search engine.

Revolymer (LON:REVO 57.5p / £31.00m)

Revolymer, the British polymer Company that designs, develops and formulates novel polymers to improve the performance of existing consumer products within the high value fast moving consumer goods (FMCG) and other industrial markets, announced its unaudited interim results for the six month period to 30 June 2013. Cash, cash equivalents and short term investments of £19.7m at the period end (2012: £1.4m) (31 December 2012: £21.9m) reflect the significant resources on hand to advance Revolymer’s development portfolio and fund the execution of its strategy of commercialising its technology by partnership with larger industry players. Progress of the Company’s portfolio of over 20 projects has been reported; a small number are in the later stages of partnered development and, if successful, associated commercialisation deals are expected to be closed in the next twelve months. In the nicotine gum product area, a significant contract win to supply a Canadian retailer for an initial period of two years covering a number of stock-keeping units in different flavours and formats, including a new ‘handy pack’ was announced post period end on 22 July 2013. Revenue for the period of £22k (2012: £135k) – the largest constituent being sales of nicotine gum in Canada. The reduction in total revenue compared to 2012 reflects the previously announced decision to discontinue sales of removable and degradable confectionery gum in the US from the start of 2013. The gross loss for the period of £254k (2012: £242k) – after charging a non-cash stock write down of £262k (2012: £305k). Gross profit for the period before the non-cash stock write down was £8k (2012: £63k). Other operating income for the period of £166k (2012: £88k) reflects increased receipts from potential commercial partners in the Consumer Specialties business area. A loss for the period of £2.9m (2012: loss £4.0m) was reported.

Scancell (LON:SCLP 38p/£89m)

Scancell has provided a business update as well an overview of the ImmunoBody(R) platform and SCIB1 clinical programme, including its current status. A detailed introduction to the new Moditope(R) platform has also been given for the first time. The SCIB1 clinical trial programme remains on track. Further results from this trial are expected by the end of 2013. SCIB1 is Scancell’s first cancer immunotherapy and is a product of its ImmunoBody(R) platform. It is being developed for the treatment of malignant melanoma and is currently in Phase 1/2 clinical trials. Encouraging results from Part 1 of the study have previously been presented and provide the first clinical evidence that the ImmunoBody(R) approach is producing an immune response in cancer patients which may also be associated with clinical benefit. Four out of the six evaluable patients treated with either the 2mg or 4mg dose of SCIB1 still remain alive. The mean survival time in this group of five Stage IV and one Stage IIIb patients is currently 21 months from trial entry. In view of the positive results and minimal side effects seen with the 4mg dose of the SCIB1 Phase 1/2 trial, the Company has initiated an evaluation of an 8mg dose in up to six patients with measurable tumours. Prof Lindy Durrant, the inventor of the Moditope(R) platform, has presented a detailed overview of the technology, which has generated the lead product, SCMod1. Planning is underway for the preclinical and clinical development of SCMod1 as an immunotherapeutic, provisionally for the treatment of triple-negative breast cancer, ovarian and endometrial cancers. First-in-man clinical studies are scheduled to start in 2016.

Science in Sport (LON:SIS 72.5p / £14.05m)

A leading sports nutrition Company announced a pre-close trading update ahead of its financial results for the half year ended 30 September 2013. The Board reported another period of significant revenue growth with sales expected to be up 23 per cent, compared with the same period last year, at approximately £3.95m. Revenue growth in the half year has been driven by strong sales of isotonic gels, food bars and hydration tablets and reflects the Company’s on-going investment in product innovation, sales and marketing. The revenue growth highlights the strength of the SiS brand and the resilience of the sports nutrition category. The growth was evident in all channels including major grocers, high street outlets, independent retailers and e-commerce, as well as in international markets. Pre-tax profits for the half year are expected to be in line with management expectations and the Board remains confident of the outlook for continued revenue growth in the full year. Science in Sport intends to issue its half year results in early December 2013.

Sinclair (William) Holdings (LON:SNCL 116.5p / £19.87m)

William Sinclair, one of the UK’s leading suppliers of growing media, announced a trading update. Following the exceptionally poor peat harvest in 2012 the Company can confirm that the 2013 harvest has been much better. The Company has sufficient stocks of peat to satisfy its extensive customer base with excellent quality composts in the 2013/14 season. It has also been able to rebuild its peat stocks to a limited extent in order to provide a buffer in case the 2014 harvest is below expectations. The Company also reported that the SuperFyba operations at the Company’s flagship site at Ellesmere Port is now running more smoothly albeit at the reduced volumes previously announced. The Company has identified the equipment it requires to upgrade the oversize cleaning process and expects this equipment to be installed soon after Christmas. This investment will enable the Company to progressively increase SuperFyba volumes.

Straight (LON:STT 41.5p / £4.94m)

Straight, the Environmental Products and Services Group and the UK’s leading supplier of recycling containers, announced its interim results for the six months ended 30 June 2013.Group EBITDA increased by 30.0 per cent to £1.12m (H1 2012: £0.86m), group PBT increased to £0.34m (H1 2012: loss of £0.24m) and the group gross margin increased to 26.9 per cent (H1 2012: 23.3 per cent). Underlying EPS came in at 2.7p (H1 2012: 1.8p). Innovative new products were introduced in the period and major contracts and tender wins were reported. Chief Executive, Jonathan Straight commented: “It is a pleasure to report this positive set of results and the Group’s return to profitability. Now that the vertical integration and associated reorganisation of our Group is complete, our focus returns to profitably growing revenues in all of our diverse markets.”

Summit Corporation (LON:SUMM 16.5p / £73.81m)*

Summit, drug discovery and development Company advancing therapies for Duchenne Muscular Dystrophy (DMD) and C. difficile infection, will present a summary of the clinical and biomarker programmes for its oral utrophin modulator SMT C1100 for the treatment of DMD at the 18th International World Muscle Society Congress meeting in Asilomar, California, USA from 1-5 October 2013. The poster presentation entitled “Future clinical and biomarker development for SMT C1100, the first utrophin modulator to enter clinical trials for Duchenne Muscular Dystrophy” will outline the proposed clinical development plan to achieve proof of concept for SMT C1100 in DMD patients. Details will also be presented on the supporting biomarker programme that aims to develop new exploratory clinical endpoints to help evaluate the benefit of therapies such as SMT C1100 in future DMD patient trials.

TEG Group (LON:TEG 5.375p/£10m)

TEG Group, the green technology Company which develops and operates organic composting and energy plants, saw its first half year revenue more than double to £12.9m, with gross profit of £1.94m. The group trading loss significantly reduced to £777,000 (2012: £1.8m loss). The Company faces challenges in completing the Manchester contract and obtaining the associated cash retentions. The resulting working capital gap will be bridged by 18-month secured loan notes worth £2.6m to Bronsstadet AB, Weekcorp Ltd. and the family interest of Rory Maw, Chairman of the Company. Loan Notes were issued at a 10 per cent discount to the subscription price and will incur interest at nine per cent per annum, payable quarterly.

Ubisense Group (LON:UBI 215.5p / £48.01m)

Market leader in location-based smart technology, announced that ISR Transit has selected Ubisense for a minimum $1m contract for the location component of an Intelligent Transportation System for Broward County, Florida. The one year contract, which has significant renewal and expansion potential, is part of a greater $11.5m partnership between ISR Transit and Broward County that will include automatic vehicle location, computer aided dispatch and provide real-time information on every bus on the network and to every one of the County’s 4,500 bus stops. Passengers will be able to access the real-time information on personal computers, smart phones and via the planned 100 signs to be installed at the busiest stops. Applications will also be available for download, and customers will be able to text or call to receive up-to-date information as well.

ViaLogy (LON:VIY 0.7p / £7.28m)

ViaLogy announced its audited final results for the year ended 31 March 2013. The Company reported that results were broadly in line with market expectations. The consolidated financial statements show a net loss of £4.7m (2012: loss £4.9m). The loss after tax and after adding back the non-cash items, depreciation and amortisation charge and share based payment expense was £1.9m (2012: loss £1.5m). In May 2012, ViaLogy raised circa £2m and in February 2013, circa £1.4m through placings. In the coming year the directors will also be looking to develop other industry silos and applications for its core technology, QRI. The Board and senior management are currently examining various opportunities to achieve this planned expansion of the business. As far as the Company structure is concerned researches are already underway and its founder and technical director, Dr Gulati, has been asked to plan the technical framework to support the continuing maturity of the technologies, the patented software and the broadening business application. This expansion will come at a financial cost, but the Board believes it is essential if they are to realise ViaLogy’s full potential. The directors will therefore seek to obtain further funding for working capital and the expansion of ViaLogy’s business operations.

Versarien (LON:VRS 16p/£13m)

Versarien, the advanced engineering materials group, has introduced its own brand of advanced computer platforms with cutting-edge functionality driven by innovative proprietary technology. The Gloucestershire-headquartered Company is now delivering on its plans to introduce a product line of world-class, water-cooled PCs. The VersarienPC family will be differentiated from the competition through significant operational advantages in comparison to conventional fan-cooled products. These include greater processing power, higher reliability and quieter running. The initial offering, the VPC Type-001, delivers speeds of up to 4.6GHz through a state-of-the-art Intel® Core™ microprocessor. Thanks to the success of its innovative VersarienCu heat transfer material (which is up to 10x more effective than conventional heat removal systems) Versarien is expected to have a disruptive impact on modern PC architecture.

*A corporate client of Hybridan LLP

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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.