Small Cap Wrap: Month: May 2016

AIM Breakfast - Archive

23rd May 2016

Winner is 32 Red, Even, 3rd dozen, high
Taking the LID off
Discovering New Horizons

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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.

TTR Agreement, 7DIG Contract, ALSP Director Change*, CLIN Agreement, CRX Launch, DEMG New Accounts, DSG Partnership, GLID Share Sale, HZD Agreements, LID Agreement, MDZ Placing*, SAR Board Changes*, SEE Term Sheet, SNTY Contract Win, TAL Trading Update, VRS MoU

32ReD (LON:TTR 131.25p/£109.83m)

32Red, the online gaming operator, announced a three year agreement to sponsor Leeds United Football Club, commencing in the 2016/17 season. The agreement provides 32Red with shirt sponsorship, access to Leeds United’s global fan base and extensive brand visibility throughout the club’s iconic Elland Road stadium as well as across its digital and media platforms. 32Red’s trading during 2016 has remained very strong across the Group’s portfolio.  The Company’s like-for-like net gaming revenues for the first nineteen weeks of the year to 11 May 2016 is up 39 percent on the same period in 2015 and up 71 percent including the contribution from Roxy Palace. The Board remains confident of delivering its expectations for the year.

7digital Group (LON:7DIG 7.25p/£8.84m)

7digital, the B2B digital music and radio services company, announced it has signed a contract with musical.ly, a fast-growing social media platform based around video and music with a strong international footprint. The deal will contribute to 7digital’s revenues for 2016. 7digital also updated that its client i.am+, the technology company founded by musician and entrepreneur will.i.am, has announced it is now taking pre-orders in the UK for the Dial wearable ‘smartcuff’ device ahead of its launch on 13 May. The Dial’s innovative model allows access to millions of tracks without the need for any additional subscription.

Ace Liberty and Stone (LON:ALSP 4p/£39.3m)*

Ace Liberty and Stone, the active property investment company capitalising on commercial property investment opportunities across the UK, announced that Dr Anthony Ghorayeb, currently Non-Executive Director of Ace, assumes the role of Non-Executive Chairman with immediate effect. Dr Ghorayeb is also currently the Executive Chairman and co-founder of LiBank, the Lebanese investment bank offering services tailored to high-net-worth individuals (HNWIs), and the Secretary General of the Levant Business Union. Keith Pankhurst, currently Non-Executive Chairman, assumes the role of Senior Independent Director.

Clinigen Group (LON:CLIN 546.00p/£625.56m)

Clinigen Group, the global pharmaceutical and services company, and Cumberland Pharmaceuticals Inc., a U.S. specialty pharmaceutical company, have signed an exclusive agreement to commercialise the oncology support drug, Ethyol® (amifostine), in the U.S. This is the first product Clinigen has licensed to Cumberland under the strategic alliance entered into late last year. Ethyol is an FDA approved cytoprotective drug indicated as an adjuvant therapy to reduce the incidence of xerostomia (dry mouth) as a side-effect in patients undergoing post-operative radiation treatment for head and neck cancer. It also reduces the cumulative renal toxicity associated with the repeated administration of cisplatin in patients with advanced ovarian cancer.  This is Cumberland’s first oncology support product and is a good complement to its portfolio of specialty pharmaceuticals. Under the terms of the agreement, Cumberland will be responsible for all marketing, promotion, and distribution of the product in the U.S. Clinigen acquired the worldwide rights to Ethyol from AstraZeneca in 2014, and this is an important step in the revitalisation plan for the product.

Cyprotex (LON:CRX 106.50p/£23.38m)

Cyprotex, a specialist Contract Research Organisation, announced the launch of version 2 of its in silico modelling solution, chemPKTM, which predicts human pharmacokinetics directly from chemical structure. Pharmacokinetics is defined as the study of the concentration of a drug or chemical in the body over time, and is related to its absorption, distribution, metabolism and excretion. Understanding the pharmacokinetics is important for understanding the efficacy (effectiveness) or potential toxicity of drugs or chemicals following their administration. The original version of chemPKTM was able to predict human pharmacokinetics following administration of a single oral dose. Version 2 now has the ability to predict human pharmacokinetics following administration of both oral and intravenous dose. It is also able to simulate repeat-dose administration and so is more relevant to the typical dosing regimen within the clinic. Unlike most competing products, chemPKTM uses a PBPK (physiologically-based pharmacokinetic) modelling approach which is a more robust technique for this purpose. The software is easy to implement and use. It operates on the freely available KNIME Analytics Platform for workflow management which facilitates integration with a wide range of other cheminformatics, analytics and modelling tools.

Deltex Medical (LON:DEMG 3.88p/£10.28m) 

Deltex Medical, the global leader in oesophageal Doppler monitoring, announced that it has added two additional hospital accounts to its platform programme in the USA. The first account is a sister hospital of one of our longest established platform accounts. Deltex responded to increased interest from the additional account in 2015 by allocating clinical support within its dedicated trainer programme. Since then, probe sales have grown steadily and are now running at over 50 probes a month. This account becomes the fifth platform account in the Company’s West Coast territory. The second account comprises two linked facilities in Oklahoma and is the second remote trainer platform account, which the Company is supporting out of its Mid-West territory, with occasional on-site training to supplement the Company’s e-learning programmes. The account is the fourth platform account in the territory and is currently using around 35 to 40 probes a month which it expects to increase as it expands its adoption of enhanced recovery surgical programmes.

Dillistone Group (LON:DSG 17.17p/£17.17m)

Dillistone Group, the supplier of executive recruitment software, announced that its Voyager Software division has signed a development partnership with one of the UK’s ten largest recruitment companies (the Partner). Through the collaboration, the Division will work closely with the Partner to further optimise a new product which will be launched this year.  The Division will retain all intellectual property relating to the new solution.  As part of the contract, the Partner will pay a significant five figure fee to the Division, and will receive discounted rates on post launch licensing.

GLI Finance (LON:GLIF 29.75p/£90.62m) 

GLI, an alternative finance provider to small and medium sized enterprises,  announced that the Company has entered into conditional share sale and purchase agreements in respect of the acquisition by the Company of certain interests in entities within the Sancus and BMS sub-groups of the Company (the Acquisitions).  The move follows a strategic review of the Company’s operations initiated by the Company’s new CEO Andy Whelan in December 2015. Following completion, the combined Sancus BMS Group is expected to make pre-tax profit of approximately £2.5m in 2016, rising to approximately £4m in 2017 when loan books are fully deployed, the businesses are fully integrated and increasing levels of commercial, operating and financial synergies are realised.  The Board also sees potential for the Sancus BMS Group in terms of generating free cash flow to service future dividend payments to the Company’s Ordinary Shareholders, with this free cash flow to be paid up to the Company.

Horizon Discovery Group (LON:HZD 177.00p/£164.79m)

Horizon Discovery Group, the application of gene editing technologies company, announced it has entered into two Original Equipment Manufacture agreements with a global market leading Next Generation Sequencing platform company, with the potential for additional agreements to follow. Horizon is a leading provider of highly characterised genetic materials that are used as reference standards for the development and quality control of molecular assays.  These reference standards help laboratories to establish and validate their workflows. Under the terms of the agreements, Horizon will supply two previously developed HDx™ Molecular Reference Standards that cover many of the genes most commonly linked with cancer progression and response to treatment.  The Horizon materials will be incorporated into assay kits from the NGS manufacturer for a range of applications including cancer research and diagnostics.

LiDCO (LON:LID 7.26p/£14.56m)

LiDCO, the hemodynamic monitoring company, announced it has signed a distribution agreement with its partner ICU Medical, Inc. to sell the LiDCO IM non-invasive hemodynamic monitoring system in the United States. LiDCO IM is a specially configured hemodynamic monitor produced exclusively for ICU Medical that works solely in conjunction with LiDCO’s non-invasive module. LiDCO and ICU Medical have an existing royalty agreement allowing ICU Medical to incorporate LiDCO’s technology into its FDA 510(k)-cleared CogentTM 2-in-1 hemodynamic system, which combines both invasive and minimally invasive hemodynamic monitoring capability on a single platform. Both the Cogent in minimally invasive mode and the LiDCO IM non-invasive monitor use the LiDCO PulseCOTM algorithm to determine cardiac output and stroke volume, allowing continuity of measurement across patient acuity levels. ICU Medical announced on its Q1 2016 earnings call that the company plans further refinements of the Cogent system in advance of a full market release. Availability of the non invasive LiDCO IM system is anticipated for Q3 2016.

MediaZest (LON:MDZ 0.135p/£1.56m)*

MediaZest, the creative audio-visual company, announced that it has raised £0.25m through an oversubscribed placing and that, in addition, it will issue new Ordinary Shares to City and Claremont Capital Assets Ltd following the conversion of loan interest amounting to £50,000, in each case at a price of 0.15p per Ordinary Share. The Issue Price is the price that the market bid price was at closing on 10 May 2016. The Group has made significant progress over the last 12 months and finished the year ended 31 March 2016 with its best ever financial performance. The net funds raised will be used to help deliver current and future projects for existing clients including Hyundai, Adidas, HMV, Diesel and Kuoni. The funds will also provide MediaZest with additional working capital and will help the Company to develop new business opportunities and expand the client base as it looks to build upon recent success and implement its key growth strategy of building a more consistent and recurring income base. In addition, the conversion of £50,000 of outstanding interest will further reduce the amount of shareholder debt owed by the Company and strengthen the balance sheet.

Sareum (LON:SAR 0.885p/£23.56m)*

Sareum Holdings, the specialist cancer drug discovery and development company, announced the appointment of Dr Stephen Parker as Non-executive Chairman of the Company. Dr Stephen Parker succeeds Dr Paul Harper with immediate effect. Dr Stephen Barry Parker, aged 57, is Chairman of Silence Therapeutics PLC.  His career in the healthcare and pharma sector spans over 30 years, including six years in the City in advisory roles. He has sector corporate finance experience having been an investment banker focusing on pharma and biotechnology with Barings, Warburg and Apax Partners and has previously held roles as a partner at Celtic Pharma and Chief Financial Officer of Oxford GlycoSciences.

Seeing Machines (LON:SEE 4.00p/£41.85m)

Seeing Machines Limited, the vehicle operator monitoring technology company, announced that it has signed a term sheet with a US-based investment firm with extensive experience in automotive technologies, for investment into a separately funded company solely focused on commercialising Seeing Machines’ technology in the automotive market.  Seeing Machines would retain a significant equity stake in the new company. The term sheet is non-binding, except for customary legal obligations and due diligence. Seeing Machines and its advisors are working with the lead investor and other investors to finalise the investment round.

Synety Group (LON:SNTY 70.50p/£9.79m)  

SYNETY, a cloud-based software and communications company, announced that, following a successful pilot, its key partner, Bullhorn, has chosen to use the full CloudCall service for its own internal use across Bullhorn’s EMEA operations. CloudCall integrates real-time communications capabilities into cloud-based CRM systems, bridging the gap between CRM software and real-time communications. This results in completely seamless interactions between the disparate technologies. By adopting to use CloudCall, Bullhorn’s staff who use Bullhorn’s own CRM system to manage their activities and customer interactions will be able to benefit from increased efficiency and ease of communications that CloudCall provides.

Ten Alps (LON:TAL 1.17p/£5.12m)

Ten Alps, trading as Zinc Media, the TV and multimedia content producer, provided the following update on trading. Whilst the Company does not yet have total visibility on its full year results, the Directors believe that the Company will fall materially behind market expectations for the year ending June 2016. The Group has continued to sustain losses in certain parts of its publishing operations, the turnaround of which has taken longer than expected. These continued losses are likely to result in the Group not being profitable for the year as a whole, albeit the Directors do expect some improvement on the losses recorded in FY15. The Company is in advanced stages of discussion on the disposal of certain areas of its publishing business and action is being taken to restructure and refocus the remaining parts of the division. The Group’s television and communications businesses are operating profitably, however the television division was impacted by delays in commissioning, which affected the entire industry. Reef, the Group’s recent acquisition, is trading well.

Versarien (LON:VRS 13.75p/£14.52m) 

Versarien, the advanced engineering materials group announced it has entered into a Memorandum of Understanding with Bromley Technologies Ltd to collaborate on the development of graphene enhanced carbon fibre products using Versarien’s graphene nano platelets. Bromley Technologies, founded in 2000 by Dr Kristan Bromley, four time Olympian and World Champion Skeleton racer, is focussed on developing and marketing innovative, game changing products and technologies, particularly in the action sports domain.  Bromley Technologies has particular expertise in carbon fibre composite structures and it is intended that Versarien will collaborate in the design and testing of a wide variety of graphene enhanced composite structures, using Versarien’s patented process. The initial focus is expected to be on products in the elite sports area, where the early adoption of new technology to gain a performance advantage is common place. These products are also expected to showcase the use of graphene in carbon fibre composite structures more widely.

 

*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.

12th May 2016

On Trakm8
That’s an ACE dividend
Launching the Lid

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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.

ABDP Interim Results, ALSP Interim Dividend*, CGNR Financing Update*, COG FDA Clearance*, CNIC World’s First, ELA Placing, ITM Grant, LID Launch, LRM Trading Update, , MSG Contract and Agreement*, PLI New Data*, TPG Final Results, TRAK Trading Update, VLG Agreements, VENN Final Results*, VER Fundraise, VIP Results

AB Dynamics (LON:ABDP 515.00p/£87.98m)

AB Dynamics, a designer, manufacturer and supplier of advanced testing systems and measurement products to the global automotive industry, announced its Interim Results for the six month period to 29 February 2016. Financial highlights showed revenues increased by 34 percent to £10.11m (H1 2015: £7.56m), profit before tax increased by 50 percent to £2.26m (H1 2015: £1.51m) and net cash at 29 February 2016 was £10.15m (H1 2015: £7.03m). The board also announced an interim dividend increase of 10 percent to 1.21p per ordinary share (H1 2015: 1.1p). Operational highlights showed further expansion of the Company’s Support Engineering in Japan and Germany, dedicated Robot assembly area now in one location and New Driver In Loop Simulator tie up with Williams Advanced Engineering. Moreover, two additional Steering Robots developed to meeting future demand, the company also achieved 12 sales of the Company’s advanced Guided Soft Target and work on infrastructure underway for the new factory build.

Ace Liberty and Stone (LON:ALSP 4.00p/£39.3m)*

Ace Liberty and Stone, the active property investment company capitalising on commercial property investment opportunities across the UK, announced that it intends to pay an interim dividend of 0.033 pence per share, which equates to a total payment of approximately £0.32m. The dividend will be paid on 3 June 2016 to shareholders who were registered on 13 May 2016. The ex-dividend date is 12 May.

Cambridge Cognition (LON:COG 37.50p/£7.97m)*

The neuroscience technology company Cambridge Cognition Holdings has made a submission in respect of its CANTAB Mobile product to the Food and Drug Administration (FDA) in the USA for 510(k) clearance as a medical device for use  within an American healthcare market estimated to be worth in excess of $110 billion. The CANTAB Mobile product was developed to detect episodic memory impairments in early stage Alzheimer’s disease patients aged over 50. Since its launch the product has been used to assess over 25,000 people in the UK since being classified as a European Class IIa Medical Device in 2013. Having established a commercial team in the USA in 2015 to drive sales into its core Academic Research and Pharmaceutical Clinical Trials markets; the FDA submission marks the first step in broadening out the Company’s healthcare technologies into the American market. The direct cost of caring for Alzheimer’s patients in the United States is estimated to be $226bn with half of the costs borne by Medicare. Despite the growing numbers of patients, it is estimated that fewer than 50 percent of Alzheimer’s cases are recognised and documented in primary care3, something the scientists at Cambridge Cognition believe CANTAB Mobile could improve. A series of independent studies has demonstrated that the memory assessment in CANTAB Mobile is sensitive to detecting the earliest signs of prodromal Alzheimer’s disease up to three years before a clinical diagnosis. Such early detection could serve to maximize the potential therapeutic benefit of treatment, enhance patient quality of life and reduce the burden on residential and nursing care services.

CentralNic (LON:CNIC 44.05p/£40.51m)

CentralNic Group, the internet platform business which derives revenues from the global sale of domain names, announced that it is the world’s first Wholesaler to achieve sales of 4 million domain names using new Top-Level Domains (TLDs), according to the domain industry statistics website ntldstats.com. The total number of registrations represents a 33 percent increase since 15 February 2016, when CentralNic became the first company in the world to achieve 3 million new TLD registrations. In addition, five of CentralNic’s exclusive TLDs, .xyz, .site, .online, .website, and .space, retain their positions in the top 20 amongst 978 new TLDs launched to date, with .site moving up from the 19th most subscribed new TLD to the 7th most subscribed TLD. CentralNic’s Wholesale Division is one of its 3 growing and profitable business units, which benefit from very strong cash flows, recurring earnings and scalability with relatively fixed costs. Its retail Division was recently enhanced with the acquisition of Instra Group in January 2016, and its Enterprise Division is taking advantage of the increasing role of large corporations in the domain name industry.

Conroy Gold and Natural Resources (LON:CGNR 31.00p/£1.67m)*

Conroy Gold and Natural Resources, the gold exploration and development company focused on Ireland and Finland, announced that it has conditionally raised £1.015m (€1.28m), prior to expenses, through a placing of shares at 18.5 pence and 5,486,485 warrants at an exercise price of 37 pence per warrant. Furthermore, Metal Tiger plc has subscribed for 675,675 Placing Shares and 675,675 Warrants. Following Admission, Metal Tiger plc will be interested in 675,675 Ordinary Shares in the Company, representing 6.13 percent of the Company’s enlarged share capital. The Company intends to use the proceeds of the Placing for ground operations and the advancement of the Company’s principal gold opportunities and in particular the newly combined Clay Lake and Clontibret targets, where the Company has established a combined exploration target of 5 million oz of gold, and for working capital generally.

Eland Oil & Gas (LON:ELA 34.00p/£63.45m)

Eland Oil & Gas, an oil & gas production and development company operating in West Africa with an initial focus on Nigeria, announced the proposed placing of new voting ordinary shares and, as required, non-voting right ordinary shares, each of 10 pence each in the Company by way of an accelerated book build in order to raise proceeds of approximately $15m, with the option for enlargement. It is expected that the Placing Price will be at, or around, 34 pence per Placing Share. The net proceeds of the Placing will be used: to fund the re-entry, completion and production of the Gbetiokun-1 well, an existing discovery within the OML 40 licence; to develop a supplementary export route for such production; and for working capital purposes. The Gbetiokun field has been estimated by Netherland, Sewell & Associates Inc. to contain gross 2P Reserves of 10.8mmbbl (net entitlement: 3.9mmbbl), flow at an initial gross rate of 7,800 bopd (net: 3,510 bopd) and generate an NPV10 of $43.9m net to Eland. The re-entry of Gbetiokun-1 is anticipated to cost $6.5m net to Eland and the Company is targeting initial production in H2 2016. In addition to the above, following the recent successful OP-1 and OP-3 workovers and upon the re-opening of the Forcados terminal, which is expected to occur by June 2016, the Company anticipate achieving normalised production rates from the Opuama field of over 9,500 bopd (net: 4,275 bopd).

ITM Power (LON:ITM 14.88p/£31.29m)

ITM Power, the energy storage and clean fuel company, announced the award of a €5m EU grant for the BIG HIT (Building Innovative Green Hydrogen systems in an Isolated Territory) project funded by the Fuel Cells and Hydrogen Joint Undertaking (FCH JU). The FCH JU selected BIG HIT as the only hydrogen project in its Hydrogen Territories tender to receive funding. ITM Power is the electrolyser provider and will receive €2.27m over five years. The Orkney Islands have over 50MW of installed wind, wave and tidal capacity, generating over 46GWhr per year of renewable power, and has been a net exporter of electricity since 2013. Energy used to produce the hydrogen for BIG HIT will be provided by the community-owned wind turbines on Shapinsay and Eday, two of the Orkney islands. At present the Shapinsay and Eday turbines are often ‘curtailed’, losing on average more than 30 percent of their annual output. In addition, their electricity output is limited by grid capacity restrictions in Orkney. Production of hydrogen from this curtailed energy by electrolysis of water gives ‘green’ hydrogen from renewable energy sources with a very low carbon footprint. BIG HIT builds on foundations laid by the Orkney Surf ‘n’ Turf initiative, which will see production of hydrogen on the islands of Eday and Shapinsay using wind and tidal energy. These are both world leading pilot and demonstration projects, which deploy a fully integrated model of hydrogen production, storage, transportation and utilisation for low carbon heat, power and transport. These projects address a number of operational and development challenges including the logistical and regulatory aspects for transport of hydrogen fuel between islands, and the orientation and familiarisation with new hydrogen building and transport technologies. BIG HIT will enable the deployment of 10 electric vans, which will each be fitted with a hydrogen fuel cell range extender. A hydrogen refuelling station will be constructed in or near to Kirkwall at a site to be selected.

LiDCO (LON:LID 8.18p/£15.29m)

LiDCO, the hemodynamic monitoring company, announced it will be launching its new LiDCOunity monitor at the 2016 Annual Congress of Enhanced Recovery and Perioperative Medicine. Interest in Enhanced Recovery programmes in the US has been growing since the late 2000’s. The Duke University Medical Centre Enhanced Recovery Programme started in 2010, and since then many centres around the US have started similar programmes. The Company will use the conference to showcase the US launch of the LiDCOunity product which was recently granted approval by the FDA. The LiDCOunity combines the full suite of LiDCO technology allowing the patient to be monitored across the entire clinical pathway on a single monitor.

Lombard Risk Management (LON:LRM 10.15p/£30.78m)

Lombard Risk Management, a leading provider of integrated collateral management and regulatory reporting solutions for the financial services industry, provided an update on trading for the Company’s financial year ended on 31 March 2016. The Company announced that revenues for the year will be slightly ahead of current market forecasts, primarily as a result of strong revenue growth in the Company’s Regulatory Compliance division. The year ended 31 March 2016 has been one of substantial change for the Company, with changes in the leadership team and a renewed focus on its core offerings of collateral management and regulatory reporting software. These changes have inevitably come at a price and Lombard Risk has incurred some significant non-recurring additional costs. These costs amount to approximately £2.5m, of which approximately £1.7m relate to non-cash items, including further impairment charges and other provisions. Other costs incurred relate to the transition of the executive leadership team; a full rebranding of the Company’s products and corporate presence; and significant investment in hiring new talent for the sales and product development teams in particular. The Company expects to report a year-end cash balance of £3.3m and a statutory loss, stated after the non-recurring items referred to above, in region of £2.1m to £2.3m.

Milestone Group(LON:MSG 0.780p/£5.68m*

Milestone, the provider of digital media and technology solutions announced that its joint venture partner in Nexstar, Black Cactus Holdings Limited, has signed a contract with music and media company Rock Solid Development Ltd to utilise the innovative music publishing platform, Backstage HD. Further to the announcement made on 14 March 2016, the platform provides a one-stop-shop technical solution for musicians, recording artists, independent labels and the music industry. Rock Solid will use the Backstage HD platform to help them manage and develop their stable of artists quickly and cost-effectively. The first artist to launch on the platform from Rock Solid is East London rapper, singer and producer Jammin. Nexstar will receive a revenue share per transaction which includes sales of music, ticket sales and advertising revenue. The company also announced that it has signed an agreement with Axis Stars Limited to work with the Passion Project and utilise the suite of technology solutions available through the Nexstar Joint Venture. Axis Stars and Milestone have agreed to enter into an arrangement where international footballer, Louis Saha will become an Ambassador of the Passion Project and through his Axis Stars vehicle, will market and cross-promote to his contacts, sponsors, supporters and investors the Passion Project. Athletes, celebrities, musicians and actors are well known and trusted brands in their own right and the ignition point to the Passion Project as they bring relevant audiences in scale. The signing of an agreement with Louis Saha is the first of many we expect to complete in the coming months.

ProMetic Lifesciences (TSX:PLI CAD3.02/CAD1,758.08m)*

ProMetic announced that new data including an additional nine patients enrolled in its PBI-4050 phase 2 open label study in patients suffering from type 2 diabetes and metabolic syndrome confirms the efficacy initially reported in the first 11 patients that had completed the treatment period in December, 2015.  In these additional nine patients, administration of PBI-4050 resulted in similar pharmacological activity on the diabetic and metabolic parameters, including the decrease in HbA1c as was shown in the original 11 patients.

TP Group (LON:TPG 3.18p/£13.20m)

TP Group, the specialist technology, engineering and managed solutions group, announced final results for the year ended 31 December 2015. Financial highlights showed revenue was at £20.4m (2014: £21.7m), with operating losses reduced by 41 percent to £2.3m (2014: £3.9m) and adjusted EBITDA losses reduced to £nil (2014: £2.1m). Group cash closed at £7.0m (2014: £9.6m) leaving the company ahead of expectations. The company’s group order book was £14.5m (2014: £17.3m) and there is strong visibility of 2016 revenues.

Trakm8 Holdings (LON:TRAK 266.00p/£86.71m)

Trakm8, the telematics and data provider to the global market place, announced a trading update for its financial year ended 31st March 2016. Revenues were up 44 percent year on year, with strong organic growth with like for like revenues up 28 percent year on year and recurring revenue up c.50 percent to over £8m. Orders received were up 29 percent year on year (like for like basis), with 151,000 units now reporting to our servers. The company also reduced year-end net debt of £0.97m, reflecting strong cash generation and introduced a maiden 2p final dividend per share to be proposed.

Venn Life Sciences (LON:VENN 26.74p/£16.82m)*

Venn Life Sciences, a growing Clinical Research Organisation (CRO) providing drug development, clinical trial management and resourcing solutions to pharmaceutical, biotechnology and medical device clients, announced its audited final results for the year ended 31 December 2015. Financial Highlights showed revenue up 135 percent to €11.47m (2014: €4.88m), EBITDA profit (before exceptional items) of €0.39m (2014: loss of €1.53m) and a loss for the year €0.20m (2014: €1.8m). EBITDA profit attributable to CRO Business €0.8m (2014: loss of €0.96m), EBITDA losses attributable to investment in Innovenn €0.44m (2014: loss of €0.57m) and cash and cash equivalents as at 31 December 2015 of €3.8m (2014: €0.8m). Operational Highlights showed the acquisition of Kinesis Pharma BV, extending service capabilities into drug development, the resource base increased to 196 personnel and the re-location of existing Paris operations into “flagship” location. Post Period End highlights showed a strong rate of business wins and new proposals continues, with €3.4m contract secured in January and revenues of €4.4m booked for Q1 2016 (Q1 2015: €2.0m).

Venture Life Group (LON:VLG 57.80p/£22.46m)

Venture Life Group, the international consumer self-care group focused on developing, manufacturing and commercialising products for the ageing population, announced that it has signed its first new international distribution agreements for the UltraDEX range of fresh breath products since acquiring the range with the Periproducts Limited acquisition which completed on 4 March 2016. The Company has signed exclusive five year distribution agreements with Laboratorios Serra Pamies, S.A in Spain and Shanghai Rifto Medical Co., Ltd in China. Serra Pamies’s self-care division promotes its products to pharmacies and specialists, and UltraDEX will be an important product range for them.  The experience of Serra Pamies within the Spanish oral healthcare sector has been an important factor in Venture Life’s decision to enter into an exclusive distribution agreement with Serra Pamies for the whole of the Spanish market. Shanghai Rifto is a specialist dental sales company selling directly into the dental channel in China and this UltraDEX distribution agreement gives Shanghai Rifto exclusivity in the professional dental sector in this market.  In the OTC oral healthcare market in China, brands are typically marketed initially through the dental channel to gain professional endorsement and recommendation to patients. In due course, and as the brand becomes established, Venture Life intends to appoint an appropriate partner as the distributor for UltraDEX in the OTC pharmacy channel. The UltraDEX products are already approved for distribution in the EU but the timing of the launch of UltraDEX in China is subject to local registration of the products with the Chinese Food and Drug Administration. These agreements reflect the strong interest being seen by Venture Life in the UltraDEX range across Europe and beyond by potential distribution partners since the Acquisition.

Vernalis (LON:VER 48.25p/£212.38m)

Vernalis, a specialty pharmaceutical company with significant expertise in drug development, announced that it has conditionally raised £40m, by way of a non pre-emptive placing for cash of 80,000,000 new Ordinary Shares at the Placing Price of 50 pence per new Ordinary Share, conditional upon approval of Shareholders at the General Meeting. The net proceeds of the Placing, together with the Company’s existing cash resources, are intended to provide sufficient working capital to cover a conservative risk-adjusted roll-out plan for Tuzistra® XR, the forthcoming re-launch of Moxatag® and the future launches of the remaining four US cough cold programmes under development with Tris, whilst enabling increased promotional activity, if deemed appropriate.

Vipera (LON:VIP 3.50p/£9.37m)

Vipera, the specialist provider of mobile financial software services, announced its audited financial results for the year ended 31 December 2015. Revenue was up to €6.8m (2014: €5.9m), net cash at period end of €3.2m (2014: €1.0m) and a 42 percent increase in revenues arising from the Company’s Motif platform, mobile financial services and other digital projects. Vipera’s Card Control product publicly launched at Deutsche Bank, with enlargement of deployment with Government Savings Bank of Thailand and the launch of MyCartaBCC for Iccrea Group in collaboration with KPMG. The company also completed an equity fundraise of €3.7m to provide a strong financial platform to execute on growth strategy.

 

*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.